Dairy News 10 February 2015

GDT delivers pleasant surprise for farmers. PAGE 3 RATE RAGE

Farmers demand fair system PAGE 14

CHECKMATE CHECKPOINT

Champion bull’s reign over PAGE 23 FEBRUARY 10, 2015

ISSUE 328 // www.dairynews.co.nz

WHERE’S OUR CHINA PLAN? “The Danes and Irish overtook us and we moved from 3rd to 5th place in infant formula exports to China.”

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DAIRY NEWS FEBRUARY 10, 2015

NEWS // 3

Pleasant surprise in GDT jump PAM TIPA pamelat@ruralnews.co.nz

Heifer raising tips.

PG.16

Who is whingeing?

PG.21

THE GLOBAL Dairy Trade price jump of 9.4% last week was at the top end or bigger than predictions by economists and part of a continued upward swing.

A price lift was expected on the back of Fonterra’s warnings of 3.3% lower production than last season. But the 19.2% surge in whole milk powder to US$2874/t had banks lifting or holding their forecasts.

ASB rural economist Nathan Penny says the overall GDT result was at the top end of their expectations. The bank is holding its $4.70/kgMS forecast at present. “We need prices to kick on a bit further but at this stage it is well on track for that and it takes away a lot of the downside risk.

We would have had to revise down if things didn’t

ROSIER PICTURE THE FULL GDT results were: ■■ AMF index down 5.4%, average price US$4067/MT

Diet helps cows keep cool.

PG.34

NEWS ������������������������������������������������������3-19 OPINION ��������������������������������������������� 20-21

■■

Butter index up 6.1%, average price US$3783/MT

■■

BMP index down 0.4%, average price US$2436/MT. Cheddar index down 11.1%, average price US$2636/MT

■■

LAC not offered

■■

RenCas index up 7.7%, average price US$8776/MT

■■

SMP index up 6.7%, average price US$2598/MT. SWP index not available, average price not available

■■

WMP index up 19.2%, average price US$2874/MT.

AGRIBUSINESS �����������������������������22-25 MANAGEMENT ������������������������������26-30 ANIMAL HEALTH ��������������������������� 31-34 FENCING & FARM BUILDINGS �����������������������������������������������������������������35-37 MACHINERY & PRODUCTS ��������������������������������������38-42

pick up soon. That possibility is off the table for now.”

In the long run over the next 10 years they see prices stabilising at about $7/kgMS but ASB’s forecast for 2015-16 is $6/kgMS. “We are also more confident of that. This season will still be tough for farmers: milk price is going to be low and production in some areas will be down where it is dry.

They will have to manage through this season but they can be a little more confident of prospects for next season.”

Penny says prices were strong where it matters. “The price of key product, WMP, surged 19.2%.

In addition, SMP (the second key product after WMP) rose 6.7%.

“Elsewhere it was more mixed.

Butter prices continued their resurgence, rising 6.1% to be up over 50% since November 2014.

Meanwhile, AMF continues to give back some of its recent gains, falling 5.4% overnight on top of the 5% fall in the last auction. In addition, there was a fall for cheddar, a rise for casein and BMP was effectively flat.

“Looking by contract, the strength in WMP was across all contracts. Specifically, the increases ranged from about 15% to 22% or $380 to $520 per MT across the five contracts on offer with comparable prices.”

ANZ senior economist Michael Gordon says the direction is not surprising given that Fonterra has given clear warnings that drought will reduce milk production in the first half of the year.

“But the price increase has come on faster than we were anticipating and we will be looking to revise our forecast for this season. It is still going to be on the low side but we are looking at

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Whole milk powder prices jumped 19% in last week’s GDT auction.

[about] $5/kgMS rather than $4.80/kgMS (ANZ’s former forecast).

“It is still well below what we’ve experienced in recent years but there’s at least some mild relief coming in the form of high prices.”

Whole milk powder was where Fonterra was signalling the drop in production most strongly.

“There were some variable results; some of the fat products had some big drops. It is not… a blanket increase in demand. It signals some concerns about supply for some products, particularly whole milk powder which is where New Zealand is the dominant player.”

ANZ has lifted its forecast from $4.35 to $4.50 to $4.70/kgMS. @dairy_news

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DAIRY NEWS FEBRUARY 10, 2015

4 // NEWS

Stop flying blind in China PETER BURKE peterb@ruralnews.co.nz

A NEW Zealand exporter of infant formula to China says there is no overall integrated ‘New Zealand Inc’ plan for that country.

Chris Claridge, managing director of Carrickmore Nutrition, says New Zealand government departments and all exporters, including Fonterra, need to work more cooperatively. Without this, individual companies will get picked off to their detriment and the detriment of the whole country.

Claridge says New Zealand could well learn from the way the Europeans operate in the Chinese market.

“Look at the Danish.

They go in with strong business links, a strong industry and they work co-

operatively. They ‘gang tackle’ China whereas New Zealand’s strategy is complicated by Fonterra’s position. Fonterra being the dominate player doesn’t engage collaboratively. You understand why, because people on the periphery are small, but Fonterra operates its own agenda. Its activities are separate from the New Zealand government in China. So the result is there is no articulation between Fonterra and the New Zealand government in China. There is no China plan.”

Claridge says each government agency involved – NZTE, MPI and MFAT – seems to have a China plan but they are not integrated. The situation is improving, he says, but the absence of Fonterra from the equation remains an issue.

“So in Shanghai for

Chris Claridge wants all New Zealand exporters to work together in China.

instance you have virtually zero communication between Fonterra and the New Zealand government.

You can argue that this is fine, that there shouldn’t be any because Fonterra is a corporate operation and they shouldn’t work with the government. But the concept of NZ Inc doesn’t in fact operate because not

everyone is sitting down together and talking.” It seems they talk only when they absolutely have to.

The biggest problem for New Zealand in China is the Europeans, Claridge says. Following the botulism incident in which Fonterra and the government didn’t fully mitigate the public relations

problem, consumers and distributors started substituting European product for New Zealand product.

“New Zealand lost market share. The Danes and Irish overtook us and we moved from third to fifth place in infant formula exports to China. It was obvious this was going to be a problem because

of the botulism scare and our competitors in the Chinese market saw an opportunity to take advantage of the negative publicity about New Zealand branded products. It was basically a two pronged attack: a regulatory environment with the Chinese registering infant formula production facilities in New Zealand, which constrained production; then an attack by our competitors out of Europe who were able to compete with us on cost – in some cases 30% cheaper than us.”

Claridge says the Chinese market is difficult to operate in because of complex rules, cultural issues and the sheer competitive nature of country.

Despite the machinations of the Chinese market, he believes there is a strong future for small niche companies such as

his. He notes that in New Zealand the Chinese are buying canning plants as part of a strategy of achieving vertical integration and their own supply chain. He says he’s amazed at the lack of knowledge in New Zealand about the dairy industry and the international trends and forces that affect it. He acknowledges Fonterra operates cleverly in the market and employs smart people. He says the forces Fonterra is exposed to at a global level are phenomenal.

Despite this praise, he regards Fonterra as “the best truck drivers in the world” – still largely a commodity based producer adding little in value add, concentrating on commodities and ingredients but not venturing much into high value products as do Tatua and Westland Dairy.

Head office with a difference THE HEAD office of Carrickmore

Nutrition is indistinguishable from the other houses in Pateke Way, Parapapaumu, on the Kapiti Coast.

From the main office room, the view is over a small wetland and the nature reserve of Kapiti Island looms in the background. You can hear the waves hitting the nearby beach. Only three people – Chris Claridge, his wife and another employee – work here. He lives in the world of the virtual office where others who support his operation are far from the head office.

His family already has an interest in the health industry: his father is a medical doctor and his sister has worked in the food safety area at MPI. He has a sci-

ence degree but until the Christchurch earthquake he ran an advertising agency in that city.

“At that time in Christchurch it was a bit difficult so the logic was to find a product or a service that didn’t require a domestic market. It was also logical to find something scalable, that was in demand and where New Zealand had a competitive advantage and something I had some knowledge of. At the start we looked at adult formulas and noticed a lot of the products on the shelves were made offshore which seemed a bit stupid. At that time there was a frenzy of Chinese people in New Zealand buying infant formula and shipping it back to China.”

With a background in brand development and management Claridge and his family decided to target the infant formula market. He assembled a virtual product development team using digital media techniques and in parallel worked with three canning plants in Auckland.

In 2012 the first batch of 7500 cans was launched into the Chinese market at the Shanghai ‘Mother and Baby Show’.

His company’s sales have grown rapidly and last year it exported 750,000 cans of infant formula to China.

His operation is small and so are sales of New Zealand branded infant to China – in total about 10 million cans

are sent to China each year.

Though the firm hasn’t millions to spend on promotion, Claridge uses his advertising skills to do smart and entertaining in-store promotions.

On his visits to China he packs his ukulele and sings and gets local people to join in.

“We have below- and above-theline marketing and I travel throughout China meeting retailers. Above-the-line is media spending including television advertising. I made a commercial being shown on Chinese TV in my living room at home. We are in 3500 stores in China so we travel and meet our sub-distributors and retailers and run training programmes and seminars. So far I have

run about 30 seminars and visited 150 stores.”

Although he buys some of his raw material from Fonterra (he also buys some from Synlait) Claridge does not see Fonterra as a competitor. He says they seemed to have struggled to get their own brand into China and he doesn’t see them as a threat.

In the meantime Carrickmore continues to increase its exports to China – another example of a small, smart company developing a profitable niche in the world’s most competitive high profile food market.

On Twitter follow Chris and his Chinese adventures @claridgechris – Peter Burke

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DAIRY NEWS FEBRUARY 10, 2015

NEWS // 5

Dairy production dips as drought bites PETER BURKE peterb@ruralnews.co.nz

THREE MORE dairy companies – Miraka, Open Country and Westland – are reporting milk flows dipping as dry weather starts to affect grass growth and production, despite reasonable rain in many places in the past week.

Fonterra last month cut its milk volume forecast for the 201415 season by 3.3% to 1532 million kgMS. Miraka chief executive Richard Wyeth says for the first part of the season until December they were consistently tracking above last year, but now production in their milk catchment in the greater Taupo region is starting to dip.

“We were ahead going into December, but the deficit from January onwards will mean we will be down on our total production for the year,” he says.

Wyeth says they are holding to their original payout estimate – the Fonterra price plus ten cents – making the projected payout $4.80.

But he concedes this is under pressure given the market prices they have seen.

panies have already sold half their product.

Open Country is also reporting a slight drop in milk flow for the same reasons as other companies.

Chairman Laurie Margrain says while the season in Waikato,

“We were ahead going into December, but the deficit from January onwards will mean we will be down on our total production for the year.”

“We have seen some lift in whole milk powder prices but this has been reasonably small and the signals from the market are that it’s going to be some time before China comes back – three-four months, and there are other challenges. It will take a bit longer to drag ourselves out of the position we’re now in.”

Wyeth says the farm gate milk price will more likely be down than up especially as most dairy com-

Taranaki and Manawatu has been good, the milk flow is “tapering off” – a pity when farmers are facing a lower payout and need every litre out of their cows to offset difficulties ahead.

He says Open Country is forecasting an end-of-season farmgate milk price of $4.40-$4.80, but he hints it will be nearer the bottom than the top of this range.

They are watching every GTD auction and the New Zealand

dollar, all of which influence the price.

Upheaval in the international dairy market is due a combination of factors and they are watching, he says.

“There has been a significant increase in world milk production, some buildup of stocks in Asia, and the Russian factor. This has coincided with climatic conditions in the northern hemisphere and low grain prices in the USA. It would be a big call to attribute the current market pricing situation to any one of those factors – it’s a combination.”

While the CAP on milk production will be lifted in the European Community on April 1, Margrain doesn’t expect this to unleash a ‘tidal wave’ of milk onto the international market.

He says some production will inevitably hit the market and it may well be in countries to which New Zealand exports.

year, was 1584 million kgMS. Group director cooperative affairs Miles Hurrell says daily milk production was now 6.1% lower than at the same time last season, as farmers appear to be using more traditional practices to manage their farm businesses with the low payout forecast.

“In the first half of the season, excellent pasture conditions

resulted in milk volumes being higher than the previous season.

The situation has changed significantly over this month.

“In some regions where pasture quality has declined markedly since mid-January, we are seeing some farmers drying off cows early. There also appears to be a reduction in feed supplements, as the economics do not

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Co-op pitches low FONTERRA HAS has reduced its milk volume forecast for the 2014-15 season to 1532 million kgMS, reflecting the impact of dry weather on production in recent weeks.

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Richard Wyeth, Miraka

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DAIRY NEWS FEBRUARY 10, 2015

6 // NEWS

No longer the wet coast PETER BURKE peterb@ruralnews.co.nz

Waiting for co-op to say sorry FEDERATED FARMERS dairy chairman Andrew

FOR THE second year in a row the

West Coast is drying out, causing a drop in the milk flow to Westland Milk Products.

Chief executive Rod Quin says though they got rain recently the two day average supply is 6% behind last year. On a season-to-date basis they are ahead – by 3%. Quin says he expects by season end production for 2014-15 will just be slightly ahead of the previous season.

“Southern Westland is in much better shape than the northern part.

While it might rain along the coast a lot of our suppliers are in the Grey Valley in the foothills of the Southern Alps and they often don’t get the same rainfall as those on the coast. In fact many have installed irrigation systems to deal with dry weather.”

Also, Westland soils are free draining, not holding moisture as do soils in other regions. While it is nowhere near a drought, he expects the lower payout may see some

Rod Quin.

farmers reduce stock numbers and cut the use of supplements.

The good news for West Coast farmers is the payout. Westland’s Rod Quin is forecasting $5.00$5.50. He attributes this is partly to the recent improved GTD prices and the lower New Zealand dollar and to the way Westland has

configured its business.

“We are not big whole milk powder producers. We tend to be more into skim milk powder, butter and nutritionals and proteins, which for most of the season have provided better returns than WMP. We were punished heavily last year for not being WMP producers but

the tables have turned somewhat this season.”

While $5.00 will not make every farmer happy, Quin says, it is still better than from other dairy companies. Westland has installed a new drier for next season, to give the company a more flexible product mix.

Hoggard says as shareholder of Fonterra he’s heard “didley squat” about the US cheese licence saga.

He’s also unimpressed by Fonterra’s “lack of contrition”.

Speaking as a shareholder of Fonterra and not in his capacity as a Fed Farmers board member, Hoggard says he and other farmers are disappointed and not amused at the “mistake”.

“Dairy farmers are facing all sorts of challenges right now including the drought and prospect of a low payout,” he told Dairy News.

“This is not what they want to hear. In the big scheme of things the loss is not big and won’t materially impact badly on farmers. But it’s a morale deflater, one of those things you don’t want to hear. You want to hear the co-op is making smart decisions and that everyone is on their game; you don’t want to see dumb little things like this happening.”

Hoggard says people in Fonterra are being paid some “serious money” to get these things right.

“Fonterra [might] have flicked an email out to shareholders saying ‘sorry we stuffed up; this is bad, forgive us and it won’t happen again’ but I haven’t seen anything and that doesn’t impress me.”

Hoggard says Fonterra’s mistake could result from recent restructuring. – Peter Burke

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NEWS // 7

Effluent Tank ns! o ti lu o S Tb outbreak under control AUTHORITIES ARE

working to control a bovine tuberculosis (TB) outbreak in Mangakino.

Several herds run as part of the same business have been affected.

NAIT and LIC data has allowed OSPRI’s TBfree vets to trace stock moved off the infected properties and these animals will be TB tested to avoid the disease spreading.

All neighbours of the infected herds have been told the disease is contained and there is negligible risk of it spreading ‘over the fence’.

Bovine TB is spread through close contact between animals. The disease is not transmitted by gumboots or vehicle tyres.

TBfree Waikato committee chair John Bubb says having bovine TB in a herd can be stressful emotionally and financially.

“Farmers need support in this difficult time. There

are various avenues available to farmers with a TBinfected herd, including their local TBfree committee member, who is likely to have experienced the effects of the disease firsthand, Rural Support Trust and TBfree staff.

“The farmer needs the support of their neighbours and local community. There remains an unfortunate stigma attached to herd TB infections. This can be addressed by keeping neighbours informed of the situation.”

As the number of infected herds has dropped from about 1700 in the mid-1990s to 51 today, the awareness of bovine TB in New Zealand has declined.

“Educating farmers about the risk of TB is vital towards keeping infected herd numbers under control. Nearly 10 million hectares of New Zealand

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is known to contain TBinfected wild animals, with possums being the main source of the disease in these areas,” says Bubb.

Stock movementrelated infections can spread the disease. This can be kept in check by ensuring farmers play their part in controlling

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“You must make wise stock purchasing decisions and ensure all animals are accompanied by a correctly filled out Animal Status Declaration form before they are allowed onto your farm. All animal movements, including farm to farm movements,

must be recorded in the NAIT system to ensure lifetime traceability.

The infected herds are currently subject to a restricted place notice, meaning they cannot be shifted off farm unless going straight to slaughter or issued with an official permit to move.

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DAIRY NEWS FEBRUARY 10, 2015

8 // NEWS

Hoping drought i ANDREW SWALLOW

DESPITE DYING winter

Ryan O’Sullivan’s winter crops are struggling.

feed crops and increasingly crisp pasture, losses due to the central South Island drought could still be ring-fenced to this season, says a dairy farmer representative in the hard

hit region.

However, if steady rain doesn’t arrive soon the damage will spill into 201516 and even beyond.

“If we get real rain before the end of February we should be able to salvage milk production and while the winter feed crops won’t be what they

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could have been, they’ll be okay,” Federated Farmers Dairy South Canterbury chairman Ryan O’Sullivan told Dairy News.

“Milk production will be down and feed costs will be up, but it will not be a disaster.”

That best case scenario would see his 201415 output 10% below budget but with irrigation gone and cows already on 16-hour milking, that could climb to 25-30% if the drought doesn’t break soon.

Meanwhile, a looming shortage of winter feed could see cows go into 2015-16 in poor condition, affecting production and in-calf rates, which in turn would impact in 201617. “I don’t know where the winter feed will come from. You can’t buy it if it’s not for sale.”

Palm kernel is available, apparently without limit, and at 20-23c/kgDM it’s one of the few feeds that isn’t loss making at the current payout forecast, but there’s a limit to how much can be used, he adds. “You need some fresh material to go with it: grass, silage or baleage and that’s in great shortage.”

O’Sullivan’s quick to point out that while their farm is in one of worst hit areas, as an established business of seven years they should be able to “push through”, but new entrants, whether share farming or in other business structures, will be under huge stress due to the pincer of payout and

drought. “They’ve not had that payout from last year to help see them through.”

Cashflow forecasts through to next Christmas show the losses will really start to stack up in the winter and spring, especially if there’s no better payout forecast for 2015/16, he adds.

“If it’s $4.70/kgMS then the $2.80/kgMS or so advance isn’t going to cover anything more than farm working expenses.

If this [GDT] recovery firms and builds, and the forecast’s $6 with a $4 advance, that’s going to be a lot better to survive on.”

O’Sullivan says he’s been fortunate to get 250 heifer calves which are normally grazed on their supporting land around the 340ha, 1250-cow platform, away to irrigated grazing in Central Otago.

Another 90 are still at home, grazing lucerne on riverflats usually conserved as baleage. “There’s not enough to make it worth baling.”

Feed for the calves sent away is certain, thanks to Clutha River water, whereas their home farm’s extraction from the Tengawai River, which is managed as part of the Opuha scheme, was stopped at new year. The farm’s 360,000m3 pond kept the grass growing through January but now it’s all but empty. “There’s about 600mm left in it… We’re keeping that as emergency stock water. Stock water’s OK at the moment but the Tengawai is critically low.”

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IT HAS turned dry in many regions in the past couple of months but at least most of the North Island enjoyed a good spring.

In Southland and South Otago the spring was persistently cold and wet causing below par pasture growth and hampering attempts to silage any surplus that was available.

It was a similarly cool spring along the central South Island’s east but with little rain in the persistent sou’westers. Soil moisture deficits soon became severe on non-irrigated farms and

by December irrigation restrictions were spreading, with only the Alpine schemes, such as the Waitaki-fed Morven-Glenavy and North Otago, or Mid Canterbury’s Rangitata diversion race, unaffected.

MetService records for Timaru Airport show just how sustained the dry in that area has been, with 145mm of rain July-Jan inclusive. That’s just 43% of the total of 335mm for the monthly averages of those seven months.

DAIRY NEWS FEBRUARY 10, 2015

NEWS // 9

t is a single season hit The drought highlights central South Canterbury’s big problem, he says. “The Orari, Opihi and Pareora catchments are some of the most water-short catchments in the whole of Canterbury… It is not inconceivable that Timaru could run out of water in three weeks. That’s a major New Zealand town without water. It would be unprecedented.”

Canterbury’s Water Management Strategy recognises the problem, yet opposition to the most practical solution – bringing water over Burkes Pass to supplement the Opihi and possibly Pareora catchments – remains considerable.

“The Opihi’s going to run dry but only 20 minutes drive to the north there’s 250,000L/sec pouring out to sea [in

the Rangitata River]. The Godley, Cass and Macauley Rivers that feed Lake Tekapo would be no different.”

With climate change predictions of increasingly frequent drought in the South Island’s east but more rain on the Southern Alps, accessing such supplies isn’t so much to grow the region’s economy as to protect what’s already there, he adds.

“The Egyptians would have done it thousands of years ago. Low reliability irrigation is destructive for farming systems and wealth because farmers lack the confidence to invest.”

In their own case the drought has seen three employees who left through “natural attrition” this season not replaced, and plans to buy a new tractor and build another

Drained; O’Sullivan’s on-farm pond provided 28 days of irrigation but is now all but empty.

house shelved.

While O’Sullivan’s take from the Tengawai has been off since New Year, those “downstream of the dam” in the Opuha scheme have been getting 50% of their supply so have managed to keep the

grass green, if not growing to its potential, he says.

However, the current prediction is the lake will run out February 20 at which point releases from the dam will be matched to inflows, and unless there’s rain, the Opihi, which sup-

plies irrigation water to those downstream and delivers much of Timaru’s domestic and industrial water, will run dry. Flows in the Pareora, which supplements Timaru’s supply, are little better.

RESPITE REACHES NORTH OTAGO RAIN SOUTH of Timaru and into North Otago last week brought relief from the drought but how long it lasts remained to be seen, O’Sullivan’s North Otago counterpart in Feds, Lyndon Strang, told Dairy News.

“By the colour of the river I’d say it’s just very rapid run-off,” he said of the Kakanui River which supplies his farm’s irrigation. “We might get six or seven days’ out of it then we’ll be all but shut down again.”

However, for most dairy farms in North Otago that wasn’t likely because they’re supplied by the Alpine-fed Waitaki, as are most of those in South Canterbury south of Timaru, he pointed out.

More of a worry for those farms, as for all in the drought affected area, is winter feed, much of it grown on surrounding dryland, he says.

“The irrigated winter feed crops are great but they are few and far between. A lot of the wintering here is done on the dryland and those crops are looking very sad to say the least.”

Supplement supplies are also down, contractors reporting 50% less made than last year “or worse,” says Strang.

“If you don’t have good winter feed crops you’re going to have to make up the feed with something and you need to be planning that now.”

With little or no cashflow likely come July, and possibly nothing available, buying now could be a good option. He also echoes Dairy NZ’s advice to consider drying off cows at BCS 5.0.

DAIRY NEWS FEBRUARY 10, 2015

10 // NEWS

Volatility poses risks Graeme Wheeler, Reserve Bank governor

THE ECONOMY is performing well but faces challenges arising from the Chinese economy, says Reserve Bank governor Graeme Wheeler.

Volatility in dairy, oil and house prices and the exchange rate also pose a risk to the economy, he told the Canter-

bury Employers Chamber of Commerce in Christchurch.

“The main risks and uncertainties relate to the Chinese economy, and four key prices – dairy prices, oil prices, house prices and the exchange rate.”

But he doesn’t expect

the drop in dairy prices this year to greatly affect farmers’ balance sheets.

An expected $6 billion drop in dairy farmers’ incomes is likely to be cushioned as farmers normally smooth spending through swings in income.

And many farmers had used last year’s record

payout to bolster farm balance sheets, he says.

But if prices do not recover as expected, spending could slow more sharply in 2016; a further risk to farm incomes stems from dry weather in several dairy regions.

Oil prices have fallen 58% since the end of June 2014. If they remain about US$50/barrel, household disposable income would gain by about $600pa/ household. But if the main driver of the fall in oil prices is weakening global demand, New Zealand’s export incomes can expect to continue to be weak.

The bank will monitor the impact of lower fuel prices on downstream prices in the economy, and how much they might reduce households’ expectations of inflation.

Wheeler says that while the New Zealand dollar has eased recently on a TWI basis it remains unjustified in respect of current economic condi-

tions, particularly export prices, and unsustainable given long-term economic fundamentals. “We expect to see a further significant depreciation.”

Annual CPI inflation is expected to be below the bank’s target band and could become negative for some of 2015 as direct and indirect impacts of falling oil prices feed through the economy. The bank then expects inflation to move back towards the middle of the 1-3% target band, albeit more gradually than anticipated.

The bank expects to keep the OCR on hold for some time; interest rate adjustments, up or down, will depend on economic data.

“Some commentators suggest that a cut in interest rates would be appropriate at this stage. With a sizeable positive supply side shock, such as a major fall in the price of oil, a cut in interest rates can be appropriate.”

Setting dairying women on the right path TWO PARTICIPANTS in the Agri-Women’s Devel-

opment Trust’s (AWDT) new pilot scheme say it has given them a greater sense of empowerment and more confidence to run their dairy farms.

Hawke’s Bay dairy farmer Zoe Kuriger and Arohena dairy farmer Cathy Prendergast were among the first on the Pathways Programme, run in two modules, the first last November.

This is run by Dairy Women’s Network and AWDT, funded by DairyNZ and MPI. It was designed specifically for women in dairying.

Kuriger, who with her husband won the 2014 Hawke’s Bay/Wairarapa Sharemilker of the Year and six merit awards, says it was professional development she could do as an individual.

“The awards judges [noted] I was very involved in the business and that my husband and I shared responsibility well.

“Many courses available in the dairy industry, especially leadership, are couples-oriented; I found it an empowering and valuable experience to be able to do Pathways on my own… [with] an amazing group of women with many different life experiences. The power of the group enhanced a well thought-out programme which evolved, building on ideas covered allowing us to enhance our skills.

“Taking time for myself to do something was great; a lot of rural women find this hard to do.”

Prendergast agreed and says she got more out of Pathways by having already done AWDT’s ‘First Steps’ programme.

“It was the perfect precursor to Pathways, because First Steps made you look at where you were at in life and how you got there. Pathways challenges you to look outside yourself and objectively think about how others might see you, which I found enlightening.”

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DAIRY NEWS FEBRUARY 10, 2015

12 // NEWS

Awards to help career prospects JUDGING IS underway for the 2015

New Zealand Dairy Industry Awards.

For 260 entrants in 11 regions contesting the New Zealand Dairy Trainee of the Year competition, judging began last week; New Zealand Sharemilker/ Equity Farmer of the Year and New Zealand Farm Manager of the Year regional competitions judging begins next week.

“It’s a busy time for the awards organisers and a critical time for the entrants,

as the results of the regional competitions can affect the career prospects of the entrants,” says national convener Chris Keeping.

“Essentially if they do well – or are seen to do well – their career in the dairy industry can be put on fast-forward. Farm owners and employers will seek them out and create opportunities for them.”

She says much of this depends on

what the entrants present to the judges about their business and career. The judges spend two hours on the farms of entrants in both the New Zealand Sharemilker/Equity Farmer of the Year and New Zealand Farm Manager of the Year competitions.

“We recommend entrants plan what they will do during the two hours to highlight their skills and what they are doing onfarm and why. It’s also a good idea to

make sure they have no distractions.

“Many entrants find the judging process one of the most rewarding aspects of entering the awards, because the preparation some do helps to identify business opportunities and solidify goals.

The judges also give them a free business appraisal.”

Keeping says judging of entrants in the New Zealand Dairy Trainee of the Year contest is split into two areas, with

a practical section and interview component.

Most regions held entrant information events last month to advise entrants what to expect and how to prepare for the judges visits.

Central Plateau will announce its regional winners on March 2; the Southland Otago region is the last to name its winners on March 28. www.dairyindustryawards.co.nz

Grazier takes up awards challenge KING COUNTRY farmer

Andrea Hanna has been appointed national judging coordinator for the Ballance Farm Environment Awards (BFEA).

Hanna, a keen supporter of the awards programme for 15 years, grazes dairy heifers and breeds rams; she started in her new role Andrea Hanna last week.

“Farmers learn from farmers, so the awards are an excellent vehicle for spreading knowledge on sustainability,” she says.

She was first a judge for the Waikato BFEA in 2000 after she and husband Brian won the region’s Supreme Award in 1999. At the time they were farming a 520ha sheep and beef farm at Mahoenui, south of Piopio.

In 2004 she was appointed BFEA judging coordinator for Waikato. She is also secretary of the New Zealand Farm Environment (NZFE) Trust, which runs the BFEA. NZFE chairman Simon Saunders says the knowledge and experience Hanna got in her role with the Waikato BFEA will serve her well.

“She’s got excellent communication skills, and her understanding of BFEA judging will ensure our judging coordinators get the best training and support available.”

Saunders says NZFE Trust is doing more to help its judging teams do it well.

“The key reason most farmers enter this competition is to get quality feedback from the judges. Andrea and her team will make sure they get that.”

Originally from Canterbury, Andrea and Brian farmed in Northland before buying the Mahoenui farm in 1988. They sold that farm in 2008 and moved to a smaller block at Rangitoto, near Te Kuiti, where they breed rams and graze dairy heifers. Hanna says they run “a simple system” so they can get off-farm for other commitments: Brian is mayor of the Waitomo District.

With ten regions now in the annual competition, the job of national judging coordinator has grown more complex.

“The aim is for good communication between the regions to help the regional judging coordinators do their best.”

Saunders says Hanna’s involvement with the BFEA has helped her build a strong network.

“One challenge will be ensuring the judging teams can provide entrants with the latest information on what it takes to achieve best farming practice in an era where environmental regulations are ever-changing.”

Saunders says Hanna will build on outstanding work by previous national judging coordinator Jamie Strang, “who put a huge amount of time and effort into lifting the quality of BFEA judging.” @dairy_news facebook.com/dairynews

DAIRY NEWS FEBRUARY 10, 2015

NEWS // 13

Plan feed for cows carefully decisions to keep cows in milk while maintaining their condition, advises DairyNZ. In some regions dry conditions are now affecting milking, says general manager extension, Craig McBeth, and farmers are at ‘crunch points’ – having to make calls on feed planning and milking frequency.

“Some farmers have moved to once a day milking or milking every 16 hours as a way of managing their way through very dry conditions in most parts of the country despite the recent rainfall.

“In the last couple of weeks we’ve seen pastures go from green to brown quickly with limited post grazing regrowth.

Soil moisture levels are well below average for this time of year and we’re now seeing that reflected in crisp pastures.”

Parts of Taranaki and Southland have had substantial rain, but other areas need a good soaking and follow-up rain to get soil moisture levels up to support grass growth.

“That’s why we’re keen to help farmers make good decisions as they manage their way through these dry conditions. With a low milk price, these judgement calls become more complex as you delicately balance the profitability of keeping cows milking and using supplementary feed.

“Farmers need to consider that drying off all their cows too soon is also an expensive decision.

“Generally, for the North Island, we know that in dry summers March 20 is the date by which we need substantial rain before drying off all cows to secure pasture and cow condition targets for the next season.”

He says it is good to keep some cows milking until that date to maintain milk income at a reasonable level and to have the option of having cows in milk should grass growth accelerate after good rainfall.

Options include a

combination of selective culling, possibly milking once a day or every 16 hours and buying in or using their own supplementary feed.

McBeth says this still makes economic sense as there is some reasonably priced feed (less than 30

DairyNZ advice and guidance on feed planning and summer management is available on www.dairynz.co.nz and at DairyNZ discus-

Farmers are moving to milking once a day as the dry sets in.

2016

Craig McBeth

cents/kgDM delivered on farm) available for farmers to buy in to keep cows milking profitably.

“This latest rain will give crops like maize and turnips an extra growth boost so we’re advising keeping on growing crops too, rather than feeding it early to cows. This will maximise the benefit of the rain we’ve had. And where substantial rain has fallen, say greater than 50mm, then it is worth applying nitrogen fertiliser.”

McBeth says making the calculations for feed planning is always an individual call. Farmers facing the driest conditions in Canterbury, North Otago and Wairarapa are in a more advanced and challenging situation.

Much more rain is needed to get soil moisture levels back to normal.

“Farmers have to make the calculations and judgement calls now about how much grass growth we can expect in the next two to three weeks.

“They will need to make their own individual decisions about how to balance feed supply and feed demand. Factors to weigh up include costs and how many cows to keep milking and how often.

With a bit of moisture around, they will also need to keep an eye on spore counts to manage the risk of facial eczema.”

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14 // NEWS

Katie Milne, Federated Farmers

Unbalanced rate burden must go FARMERS ARE reiterating their call for councils to end property value-based rating.

Federated Farmers local government spokes-

person Katie Milne says setting rates based on the value of a property is a crude and simplistic tool which is unsustainable.

Milne says a new Local

Government New Zealand (LGNZ) discussion paper shows local body rates must go.

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KEY PRESSURES ON COUNCIL'S ■■

Changing demographic and economic growth resulting in some councils being required to spend heavily on infrastructure to accommodate growth, while others are forced to maintain and renew infrastructure with declining populations and funding bases.

■■

Increasing community and central government expectations.

■■

Increasing impacts from natural hazards and environmental challenges.

they don’t or can’t use. In effect, the current rating system means farmers are subsidising people who live in towns.

“Local government in many cases is suffering a decline in its population from which to draw rates. This problem then gets passed to farmers who find rates a spiralling proportion of their farm costs.”

The discussion paper suggests ways to address current and likely future funding shortfalls among councils.

The paper details the findings of LGNZ’s major funding review, which last year examined issues facing local funding, and considers alternative funding for increasing community demand on services and infrastructure – and incentives to drive economic growth.

LGNZ president Lawrence Yule says the findings, and the demands of central government policy makers, should prompt a fresh look at how local government is funded for the benefit of communities. Revenue now falls short of spending.

“Councils [account for] 10.5% cent of all public expenditure, yet they raise only 8.3% of all public revenue,” says Yule.

The World Bank, referring to this “vertical fiscal gap”, says a growing number of councils face financial challenges at a time when demand for infrastructure and services is greater than ever.

“Local government is an important contributor to economic growth but

the right incentives and resources must be in place to drive this growth,” Yule says.

To help solves this, LGNZ proposes councils partner with central government, with the government considering costs and benefits of decisions for local communities and co-funding costs where policy proposals have significant national and local benefit.

Milne says the discussion paper is timely in its pointing to more equitable and efficient rating systems.

“We like the attention given to expanding the existing revenue system, such as in user charges.

“This is clearly a fairer and more flexible way of at least part funding local government activities.

“There should also be a look at institutions which are rates exempt, yet which use council services.”

“Local bodies need to get a more robust way of deciding their rating and spending.

The long term plan process for councils helps, but is not the full answer.”

Milne says there needs to be a close look at how central government imposes new rate burdens on local government.

“It’s the easiest thing in the world for a government to keep taxes down by shoving the cost down the chain to local councils. But… then they need to help by paying for it out of income tax and GST income.” @dairy_news facebook.com/dairynews

DAIRY NEWS FEBRUARY 10, 2015

NEWS // 15 Ireland is looking at share farming to encourage young people into the industry.

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IRELAND AIMS to build a share

farming dairy career pathway similar to New Zealand’s when 30 years of milk quotas ends in April.

“We would like to develop a career pathway for young trained individuals who choose a career in dairy farming,” Thomas Curran, farm structures specialist with national agricultural research body Teagasc told Dairy News. “[Share farming] is a system that has the potential for these young people to build up business in a tax efficient manner while rewarding their technical efficiency and expertise. In the absence of milk quota shackles it will become possible for this to happen.

“We also have an ageing population of established dairy farmers who are looking to become involved in a collaborative arrangement such as dairy share farming, especially in situations where they do not have an identified successor to take over the farm.”

Initial attempts to establish a formal share farming system in Ireland in the 1970s didn’t take off because few farms had the scale to make share farming viable, says

Curran. Then the European Union’s imposition of milk quota in 1984 effectively made dairy share farming illegal as non-quota holders, such as sharemilkers, were prohibited from supplying processors.

“In those early days you could not get milk quota unless you were born into a dairy farm or leased or purchased land with milk quota attached.

It became a bidding war with only the well-off larger farmers in a position to secure additional milk quota.”

However, share farming templates for cropping, or “tillage” as the Irish call it, and drystock were developed in the 1990s with the cropping model in particular proving popular as a way to secure land longer-term.

Teagasc has now developed a dairy share farm template for use after April 1.

“We began work by basing the document on our own tillage document since the concept is exactly the same: two businesses independent of each other and operating on one farm,” says Curran.

“What we are striving to develop in Teagasc is a suite of collaborative arrangements that farmers can choose from to suit their own personal farming circumstances. Dairy share farming is the new addition to that.”

NEW ZEALAND INSIGHT Curran says he visited New Zealand on a study trip in 2007 and many of the farms visited were share farmed.

“We have always looked with interest on the impact share farming has had on the New Zealand dairy industry.”

The dairy template was developed with a steering committee representing a wide range of stakeholders and the support of the Irish Farm Managers Association. It will be available on www.teagasc.ie from April 1.

Speaking at the launch of the template, Ireland’s agriculture minister Tom Hayes sang the praises of share farming.

“There are many benefits to share farming arrangements on dairy farms, not least that they afford an opportunity for young well educated farmers, particularly those who do not have access to land, to gain valuable employment and experience.

“They can also provide a viable option for dairy farmers who wish to step back a bit from the day to day physical work on the farm, but want to retain a strong interest in the management of the enterprise.

“Share farming is an obvious vehicle for addressing land access issues and for encouraging young people who might otherwise be constrained by land availability to bring their energy, enthusiasm and vitality to the dairy sector.”

Curran says as for any other collaborative business arrangement, a written agreement will be critical to the success of dairy share farming.

“The guideline document will ensure that the essential elements are covered in any agreement. The template ensures that the land, facilities and production rights are detailed….

The split in farm receipts and input costs is documented as well as the ownership of animals. Procedures for dealing with conflict and dissolution are outlined as well as other relevant items.”

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DAIRY NEWS FEBRUARY 10, 2015

16 // NEWS

Heifer raising tips for graziers FIVE NEW focus farms

A study has found most heifers underweigh at 22 months old.

will give graziers knowledge and resources to help grow heifers better, and strengthen their relationship with dairy farmer clients.

An LIC study of 105,000

animals showed 73% were 5% underweight at 22 months old. The Heifer Grazing Project focus farms help to address that statistic and seek to improve the national sixweek in-calf rate. The proj-

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“Heifers below target liveweight will have a lower six-week in-calf rate, a higher not in-calf rate and lower milk production.”

She cites a paper published at last year’s Australasian Dairy Science Symposium.

“Heifers that achieved 90% mature liveweight at calving could produce an extra 2-2.5kgMS/kg of liveweight over an average life of five lactations, compared to being behind target.

“So, for a 50kg improvement to achieve target weight, that would translate to 100-125kgMS over five seasons.”

Over two months, at the end of 2013, Dirks met with 100 farmers, graziers, and rural professionals to explore the dairy farmer/ grazier relationship. This showed a need for exam-

ples of graziers doing well, which led to the focus farms.

“A standout reason farmers gave for heifers not being raised as well as they could was the gap in relationships between parties,” says Dirks.

“Specific answers included not having an agreed contract and having different expectations, like who was responsible for supplying extra feed.”

Dirks says the purpose of the focus farms – in Northland, King Country, North Otago and Manawatu – is two-fold.

“We want to provide farmers growing heifers with better information and allow them to share their experiences with others; until now there has been a knowledge gap.

“The other goal is to strengthen relationships between graziers and dairy farmers. Are expectations being met from both sides, and if not, why not? These focus farms will help us… address some of these questions.”

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Farmers with well-grown heifers use minimum age and minimum weight targets for weaning calves off milk.

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Heifers should be transitioned to an allgrass diet for a couple of weeks or meal should be sent with the stock to prevent reduced growth when relocating heifers to grazing.

■■

Be clear with expectations. Communicate what the expected weights are for the end of the grazing term.

■■

Weighing is the only objective way to assess that heifers are growing well and on target.

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Animal health plans should be specific to the farm the heifer is being grazed on.

Parasite pressure and mineral deficiencies are unique to each farm.

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DAIRY NEWS FEBRUARY 10, 2015

18 // NEWS

Getting it right from the start ARE YOU thinking about New farms must meet industry standards on sustainability, says DairyNZ.

converting more land to dairying?

DairyNZ has released a new online environmental ‘how to’ guide to ensure

any new farm meets industry standards.

‘The online guide, Responsible dairy conversions’ outlines environmental responsibilities

during the conversion, to conform the standards of Sustainable Dairying: Water Accord.

“It is important to get the conversion process right from the start.

Detailed planning will pay off,” says DairyNZ’s environment manager Mike Scarsbrook.

“I recommend a threestep planning process: take advice, talk to your regional council and talk to your prospective dairy company. These actions will stand you in good stead.

“Planning and implementing a dairy conversion is a massive undertaking and the decisions at the beginning will underpin performance.

Responsible environmental stewardship includes an effluent system that complies with regulations… and waterways need to be fenced off from cows.”

Every dairy company can assess new conversions, and requirements to be met before milk supply commences. A company assessor will visit the farm to do a pre-supply check.

And an environmental management plan is needed to meet requirements.

Under the industry’s Water Accord, new dairy farms must adopt good practice at the outset to protect waterways, comply with regional plan rules and hold necessary resource consents.

The online conversions guide covers: ■■ The importance of responsible dairying for the industry ■■ Regional regulatory requirements ■■ Information which may affect the conversion and the suitability of land for dairy use ■■ Incorporating responsible dairying considerations into conversion plans ■■ A template and list of actions for managing a conversion to achieve industry best practice.

A Southland case study in the guide gives insights on the process and on key areas such as effluent and nutrient management, waterways and water use. www.dairynz.co.nz/conversions

Free cow checkups NORTHLAND FARMERS are offered free body condition scoring (BCS) of their cows by DairyNZ certified BCS assessors. The national scheme is in its third year.

“Farmers, researchers and advisers agree that getting cows in the right condition at calving is critical for milk production and reproductive performance – two key drivers of farm profitability,” says DairyNZ developer productivity, Sally Peel.

“Yet every year we see large numbers of cows calving at below target condition and so achieving below potential production and profitability.”

Hence DairyNZ’s BCS initiative to help farmers achieve their cow condition targets by calving. “We have trained advisers in body condition scoring and feed planning to support farmers one-on-one and to develop plans to address below target cows,” says Peel.

DairyNZ offers three free BCS consultations. Advisers will work with farmers to identify cows unlikely to reach BCS 5.0 by calving without some intervention and find workable solutions to get these cows back on track.

“It means farmers can experience the process of BCS assessment and understand the benefits of getting cows to BCS targets. By using a certified assessor they get an assessment accurate and consistent with New Zealand standards.

DAIRY NEWS FEBRUARY 10, 2015

NEWS // 19

Social media helps out PETER BURKE peterb@ruralnews.co.nz

MANY FARMERS are using

social media – notably Twitter – to share information on how best to manage the dry spell.

Federated Farmers Dairy chairman Andrew Hoggard says he’s been on Twitter for two years, the tweets giving him ideas on how to deal with the season.

“I might go and talk to an agronomist about an idea and see whether that would apply to my farm and ask about the pros and cons of it. I find social media useful for seeing what other farmers are doing and asking questions now and again. It also prompts a joke and a laugh with other farmers.”

Hoggard says social media has prompted people to think about

what they are doing and shared ideas are useful.

Farmers are handling the dry spell well, he says. Contrary to what people are saying in the media there is little whingeing and moaning by farmers. They are just getting stuck in and doing what they can in the circumstances. But the lower predicted payout is worrying some dairy farmers.

In Manawatu where Hoggard farms the dry spell has come early, but in the last week the rain has eased the problem.

“We’ve had 30-40mm and it will help. It has greened everything up and if we can get more rain in the next couple of weeks it will help.

“The real worry [is the timing].

Usually at the end of January we are ok and February is the dry month when the grass burns away. This can drag on into March and be chal-

lenging.

“If the dry from the end of January were to continue through February and March things would be pretty bleak. The risk is that this could still happen with the hot dry windy weather coming back.

I remember about two years in the middle of February when it went ridiculously hot and blew quite a bit and the grass just disappeared in front of your face.”

But Hoggard says farmers are coping better than they used to.

“Farmers are more resilient; practice makes perfect,” he jokes.

A neighbour who has collected rainfall data for “donkey’s years” says he believes the current weather pattern resembles that of the dry

1970s. He’s whether to change his farming system or wait and see if the weather pattern returns to the wetter 1980s.

Goal setting workshops to add value DAIRY WOMEN’S Net-

work and DairyNZ are running free goal setting workshops – ‘Know where you are heading’ in nine towns during February and March.

The dairy module will suit all levels of dairying, and is open to DWN members and non-members, men and women.

DWN and DairyNZ developed the workshop using material from DairyNZ’s ‘Mark and Measure’ seminars.

“We aim to build farmer confidence and clarify goals, and to convey the essentials of planning, goal setting and workable action plans,” says DWN Takaka regional convenor Tyler Langford, workshop co-presenter.

“Attendees will get takehome tools for setting meaningful goals in their personal and professional lives.”

DairyNZ business developer and workshop facilitator Lynaire Ryan says the

meetings will be networking opportunities with likeminded people.

“This module has been planned to provide tools and processes for setting meaningful goals and action plans to achieve business and personal dreams, but also allows time for attendees to work on their own plans and embed the process to add value to their businesses and balance to their lives, so it’s a very practical session,” she says. www.dwn.co.nz

Powerlines energise conversions THE RAISING of six heavy power cables across the

Waikato River last week was a milestone in lines company Unison’s work to energise 30 new dairy farms in the Taupo region.

The firm is working with Wairakei Pastoral Ltd and Landcorp to supply what will be, when complete, one of the largest contiguous dairy units in the southern hemisphere.

Chief executive Ken Sutherland says the river crossing was a critical part of the overall project.

“Our crews are building the electrical network and substation to support the additional load these new farms will create.”

Wairakei Pastoral chief executive Chris Parkinson says he is pleased with progress.

“This is a long-term project for us, and we are pleased to have Unison on board and carrying out the vital work required to enable the development.”

Once complete, there will be about 40,000 cows across 25,700ha of land.

Parkinson says the conversions would bring 300-350 jobs into the Central Plateau.

Landcorp, which will farm the land, and Wairakei Pastoral, are keeping watch on the land use change.

“Environmental stewardship drives what we do.

The new farms will exceed environmental standards.”

When the electricity network is complete, farm connections will continue.

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DAIRY NEWS FEBRUARY 10, 2015

20 // OPINION RUMINATING

EDITORIAL

We need a China plan

MILKING IT...

Milking it A TARANAKI farmer is resorting to humourous advertisements in the local paper to locate missing cows; it’s working for him.

Inglewood farmer Colin Boyd, whose cows went mysteriously missing, reckons he’s cracked the case after placing a funny ad in the Taranaki Daily News.

On Saturday he ran an ad saying several “beautiful cows” randomly disappeared from his Surrey Rd farm last year.

‘Lovely cow no. 657’ is home thanks to an ad offering farm animals as a reward. But ‘Hot Lips’ is still missing. Boyd had been told who took the cows and how and when they did it: the information has been passed onto police, he says.

Irish heat detection

Hasn’t he got work to do?

Why co-op’s US rego lapsed

AN IRISH dairy farmer has noticed his cows on heat like to loiter in a footbath between milking and returning to their cubicles (see www.cowsignals. com). Could this be worth investigation and trialling under New Zealand systems? Simply put in a footbath at the exit from the shed and draft off those that stay to cool their claws rather than dashing down to the paddock in hope of a fresh break of grass. It may help weed out those odd cows that get missed by more conventional heat detection methods.

A KANSAS cattle rancher posted a YouTube video showing how he used a camera drone, a feed truck and a herd of cattle to create a ‘cow art’ smiley face.

Derek Klingenberg, famous for the video of his trombone rendition of Lorde’s song Royal to serenade his cows, used his feed truck to move the cows around a field until they formed the shape of a smiley face, a feat that took several minutes.

Klingenberg had to double back at one point when the cows forming one of the eyes finished their snack and started to disperse.

A WRITER to a newspaper has come up with the most plausible reason why Fonterra failed to renew its cheese licences in the US. He is suspicious that the same person who failed to enter shotputter Valarie Adams in the London Olympics in 2012 is now employed in the trade licensing division of Fonterra.

After all, how on earth could the co-op forget to renew its licence?

THE QUESTIONS raised by New Zealand infant formula exporter Chris Claridge should ring alarm bells for dairy farmers.

Everyone seems ‘gung ho’ about China being a market on our doorstep and effectively there for the taking. But Claridge points out this is not necessarily so; he insists our lack of a ‘NZ Inc’ China plan underlines an overall lack of leadership in our primary sector.

And if there was a leader, would everyone play ball? Experience suggests not.

Government departments – notably MPI – were asleep on the job when the China market started to grow and only in the last year or so have they begun to put the necessary resources into that market.

Further alarming is Claridge’s view that though each department directly involved in China – NZTE, MFAT and MPI – may have a China plan, a high level strategic goal is notably absent. This looks like the old ‘she’ll be right’ ‘number eight wire’ approach Kiwis once promoted, and it must be seen for the nonsense it is.

Equally worrying, if Claridge is right, is that Fonterra seems to want to do its own thing and not come under an ‘umbrella’ plan.

Understandably the co-op has specific interests it must pursue, but hold on – it occupies a privileged position by dint of government legislation; this makes it responsible not only to shareholders, but also to New Zealand taxpayers and the nation generally.

Fonterra does a great job for the New Zealand economy, but some of its recent antics have been distinctly ‘un-New Zealand’ like. Its media statements on the inquiry into the botulism scandal and its recent failure to renew cheese licences in the US have appeared with little sign of remorse. ‘Sorry’ has no place in the Fonterra dictionary.

In the global dairy market, especially China, New Zealand is not bullet-proof and the Europeans are ready to pounce. The Danes go in with strong business links, a strong industry and they work co-operatively; they ‘gang tackle’ China.

A lack of cohesion among New Zealand dairy players, large and small, could spell doom for our products in China. So the China strategy should not be driven by one company alone; we need a NZ Inc approach.

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

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

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DAIRY NEWS FEBRUARY 10, 2015

OPINION // 21

No one is moaning or whingeing AS USUAL in summer, some regions are drying out – some are getting extremely dry. The media is running hot with drought stories, from ‘experts’ on social media and in print.

Here’s my rebuttal of some of these experts’ harping about farmers “moaning and whingeing”.

Firstly, I won’t deny that when it gets dry your average farmer starts hoping for rain. But moaning and whingeing? Come on!

I’ve been quoted by media about this: here is how it works. A journalist calls me with a bunch of questions which I answer honestly. So I am not running after the media and badgering them with complaints about the weather. It’s the other way around.

Trust me, when things are dry on farms the last thing I want is to talk to news media. I know these journalists will be waiting to pounce on a ‘moan’ or a ‘whinge’ so they can say “Listen, the farmers are moaning again”. So I try to underplay the severity of the dry, with that in mind.

Then they drag out their old favourite “Now we’re going to have to fork out millions in drought assistance to farmers”.

I’ve been farming for 18 years with never one cent in drought relief; neither have I met anyone my age who’s been paid anything. Perhaps some oldtimers could have got relief in the 1970s or 1960s. The only ones to get help are those stuck for money to buy groceries – those effectively going under. They will get the equivalent of the dole. But those you can count on two hands.

Another form of help is delaying tax payments.

Not skipping them, just delaying. But only if you’re really deep in it. Few farmers apply for this.

A media standout this year is, “Perhaps some regions aren’t suitable for dairy farming”. But wait – arable, sheep and beef farmers are affected

as badly by the dry as are dairy farmers. Frankly, I laugh at the idea that just because farming conditions aren’t perfect, you’d better not attempt something. Which country has the highest average per cow production in the world? Israel. In which country is the world’s largest dairy farm? Saudi Arabia. Both places might be just a tad drier than South Canterbury.

My first farming job was in northern British Columbia, at the start of the Alaska Highway. If you think milking cows on dry soil is hard, try it in 2m of snow, at -30oC. In my travels in Alaska I passed several dairy farms on the outskirts of Anchorage. The rest of the world, by and large, milks cows in conditions far less ideal than in New Zealand. They just do it differently, so as to overcome the weather challenges. We need to do the same – find solutions that work in differing climates.

But, “why don’t farmers invest in more water storage?” Wow, why didn’t we think of that? “Buy some tanks to store the water during winter. Right, I’ll go look on Trade Me for a 660,000,000L tank. Perhaps they’ll do free delivery.

Farmers are keen create more water storage; if we could jump in a digger and do it, most of us would.

Finally there’s the old complaint about farmers stealing water and sucking the rivers dry. Every farmer who takes water will do so by consent. They will have applied to the regional council for that consent, the issue of which is governed by environmental flows required in the rivers, and thus determined by remaining water for irrigation, urban drinking, stock drinking or industrial use.

My regional council levies rates on those who extract water: they must pay 70% of the council’s costs in monitoring the water flows and the science behind it. If someone takes more water than they are allowed to, they will likely end up in the environment court and cop a hefty fine.

I question how drought declarations are misinterpreted when it’s just a case of stating the obvious.

The benefits to farmers are next to none. I could do without all the nega-

tive comments we’re hearing these days. It’s not the farming I’ve known for 18 years.

• Andrew Hoggard is Federated Farmers Dairy chairman.

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DAIRY NEWS FEBRUARY 10, 2015

22 // AGRIBUSINESS

EU quota impacts unknown JOHN DROPPERT

IN JUST under two months’ time, the world’s largest milk producer will see one of its biggest regulatory changes in three decades.

As an aggregate, the European Union produces around 150 billion litres of milk per year, and commands almost a third of global dairy exports (in liquid milk equivalent terms).

Since 1984, milk production has been contained by a quota system that was designed to rein in the ballooning cost of the Common Agricultural Policy (CAP).

From the end of March this year, quotas will disappear, with much speculation around the impact on European milk production, and consequently global dairy markets.

In the decades following its formation, the then-European Economic Community (EEC – now European Union – EU) had an entrenched price support framework based around intervention buying, combined with export subsidies as a means of disposing of the surplus product.

The problem was that in managing the internal market so well, the EEC fostered rapid growth in milk deliveries, which by the late 1970s and early 1980s grew beyond what the framework (and budget) was designed to handle.

Like most market support mechanisms, the quota system is a complex beast.

However, broadly speaking, member states of the EU are each assigned a ‘reference volume’ based on milk fat content, which is then broken down to quota volumes for individual producers.

The quota year runs from April to March of the following year.

If milk deliveries in a member state exceed national quota, those farmers who have overrun are liable for a punitive levy (the superlevy).

In addition to milk deliveries to processors, a much smaller scale set of quota is allocated for milk sales direct from farms.

After an initial four year period, the quota system was renewed, with reference volumes reduced by 2% in 1988 and 1% in 1989.

The system saw few changes in the 1990s (mainly formalisation quota

Is your water system out of shape?

From the end of March this year, quotas will disappear, with much speculation around the impact on European milk production, and consequently global dairy markets.

John Droppert

transfers between producers within a member state) and modest increases to quota volumes were granted in the early 2000s.

By 2006, political support had waned as the CAP more broadly was adjusted towards better market orientation, and plans were being developed to remove the quota system.

The CAP ‘Health Check’ in 2009 confirmed the end of quotas in 2015, laying out an annual increase in volumes of 2% in 2008/09, followed by 1% annually between 2009/10 and 2013/14 to provide a ‘soft landing’.

The final year (2014/15) holds quotas at the 2013/14 level.

The European Commission main-

tains that the considerable expansion of recent years suggests there will be no ‘explosion’ in production after March 31.

This is supported by the deterioration of farmgate margins over the past few months (the result of a period of global dairy oversupply, exacerbated by the Russian import ban) which will make immediate expansion less appealing, and more difficult to finance.

Strong milk production growth over the last 12 months suggests many farmers will also be dealing with a particularly heavy superlevy burden this season.

With milk prices deteriorating, the penalty of €28/100 kg will possibly exceed revenue (around €30/100kg or A$5.90/kg MS and falling) for some over-quota milk, leaving no income for

that milk after the fine is paid.

The significant influence of volatile market and seasonal conditions will continue to drive the year-to-year ebbs and flows of milk output.

Nevertheless, member states with aggressive post-quota expansion intentions (such as Germany, the Netherlands, Ireland and Denmark) are likely to see significant medium term growth – with patterns of plant investment to date weighted towards milk powders.

Much work attempting to quantify the net impact on market balance associated with the removal of quotas has been done, but in essence, nobody knows for certain.

There remains an ongoing push to ‘manage’ the market in the absence of quotas – with plenty of political support amongst the European Parliament and sections of the farming community.

What does appear guaranteed is that the tension between those advocating a protectionist approach and those seeking to give market forces more influence will remain a feature of European politics.

• John Droppert is Industry Analyst with Dairy Australia.

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DAIRY NEWS FEBRUARY 10, 2015

AGRIBUSINESS // 23

Champion bull heads up the ramp LIC’S CHAMPION

bull Howies Checkpoint 508077 is heading to the works after delivering his last semen.

The premature end to the bull’s stint at LIC follows two incidents within 12 months, according to a farmer advisory posted on LIC’s website by chief executive Wayne McNee. McNee says the decision to no longer collect from Checkpoint follows a recent incident which resulted in the bull being deemed too dangerous for staff to handle.

“This was the second incident with Checkpoint in the last 12 months, so in accordance with LIC policy, he will be culled.

We have a responsibility to our staff and we take these

matters seriously.

“Health and safety of all is paramount at LIC, above anything else and regardless of the bull’s ranking.”

Limited frozen supply will remain available through its genetics business Alpha Nominated.

Checkpoint has made his mark on the LIC Premier Sires team since his debut in the 201112 season with a record 318 BW. His 866,480 inseminations make him one of only eight bulls to exceed 800,000 lifetime inseminations in the history of AB, and the only KiwiCross.

In his first full season as a Premier Sire (201213), he achieved 309,392 inseminations, also a record for the breed.

By comparison, Scotts Northsea, the only KiwiCross on LIC’s bull Hall of Fame, achieved 787,000 lifetime inseminations.

Checkpoint has 93,000

daughters in the national herd; 5500 are milked on farms in New Zealand (RAS list 17/01/15).

His genetics have also been exported worldwide, says McNee.

“Checkpoint’s contribution to the industry will continue, with 23 sons in the pipeline as future sires for national herd and as more of his daughters start milking.”

Howies Checkpoint

Lincoln University’s Jeremy Baker (left) and Professor Hong Di with Yili’s Xiaopeng Huang.

Lincoln builds ties with Yili FOOD SAFETY, raising productivity and the environment characterise a partnership between Lincoln University and the Chinese processor Yili. The two signed a memorandum of understanding last year.

Lincoln recently hosted senior management from Yili and its New Zealand subsidiary Oceania Dairy for talks headed by Yili’s Dr Xiaopeng Huang, deputy director of the firm’s innovation centre, and Shane Lodge, quality and compliance manager of Oceania Dairy.

Value chains were high on the list of topics, as were presentations on Lincoln University’s ‘paddock to plate’ research.

“Discussions with key departments in Lincoln were encouraging, [showing we are] in tune regarding preferred outcomes from the MOU,” says Lincoln University business development manager, Dr Samuel Yu. Raising productivity and reducing environmental impact via precision agri-technologies and onfarm best practice, and enhancing brand value via food safety and new high-nutrition products were of particular interest, Yu says.

“These topics are in the hearts and minds of consumers when they purchase foods, not just in China or New Zealand, but all over the world. It’s good to know that both organisations have the same core objectives….

“We’re pleased to be working with a world leading food manufacturer such as Yili, and we see it as recognition of Lincoln University’s global relevance.”

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DAIRY NEWS FEBRUARY 10, 2015

AGRIBUSINESS // 25

Don’t walk away from potential profit TYRAN JONES

THE CHINA Australia Free Trade Agreement was delivered in 2014. What does 2015 hold for the Australian dairy industry?

The China FTA is not the pot of gold, but the opportunity for our exporters to continue apace their innovation path, developing new higher value, sought after dairy products.

The Chinese still do not fully trust their local supply and they want Australian product.

The scale of their market however is beyond our imagination.

The great hope is that product innovation, being a reliable supplier and fairer access to markets will reduce (not eliminate) our exposure to market volatility.

So, how do we work together to ensure our industry has the ability to capture the benefits of product, market and farm innovation to produce more milk for this and other rapidly developing dairy markets?

I could be provocative and suggest that processors embraced farmer representation when it came to lobbying for a meaningful China FTA for dairy, because they could see something tangible that would make them more profitable with little additional effort.

However, the shoe seems to be on the other foot when we start talking about production technologies – including high energy GM ryegrass, and animal health technologies - which might make milk production more efficient and profitable.

They, and some industry organisations, are stepping away from such technologies rather than working with us to design a strategy to build social capital among our consumers and communities to ensure we have access to new tools.

Access to new tools and technologies requires effort on behalf of processors, farmers and our organisations.

It is times like these we need to remind people in leadership roles where ‘their’ money is coming from.

If they are good at marketing and have established strong customer relationships they should be able to manage any technological production challenges within the market.

If we are going to be denied access to new tools, where will our milk production growth come from?

There are several production technologies on the horizon.

It is in our interests to look at the science, to look at the evidence and to take a new look at how these innovations might be applied to Australian dairy production systems to service this increased demand for dairy.

We must be wary of the stereotyped responses and scaremongering, whether it is about animal welfare or market acceptance of production techniques.

Production technologies can be adapted in positive and innovative ways with comprehensive support to generate the best possible outcome for individual farmers and for the industry.

All we need is the will to succeed.

Without this, there will be no new milk and others will dictate what we can and cannot do.

We must have a dialogue with our customers and communities to ensure we have access to these technologies.

We said in 2014, through the process of writing three Free Trade Agreements, that the Australian dairy industry is “open for business”.

We saw overwhelming interest in the Australian Dairy Farm Investment Forum hosted by Dairy Australia.

We cannot truly, hand on heart, say we are open for business if we are shutting down access to science and innovation, new tools and technologies in our dairy production systems.

We cannot say “we want your money” while on the other hand saying “we won’t allow production science, technology and innovation”.

If we shut down access to farm side innovation, in a very short time, global companies will ignore us and Australia will become

Tyran Jones

known as the country where it is too hard to do

business - we will have no access to new technologies, regardless of whether they become common place in the rest of the world’s dairy regions.

Those in industry leadership positions must take up the cause of long term competitive, profitable milk production.

They must advocate on

behalf of farmers, engage in a meaningful way with customers and the community; to develop relationships and trust that the rigour behind our production, regulatory and food safety systems are impeccable.

Every single dairy farmer must also take up this challenge. Without

this, the alternative will be a continuation of the stagnation we have seen over the last decade and a gradual erosion of Australian dairy’s global competitiveness.

The China FTA, along with other trade agreements complete and inthe-pipeline provide tangible prospects, but the

onus is on the industry to truly ‘open the door’ to ensure we embrace the full opportunity.

• Tyran Jones is a director of Australian Dairy Farmers (ADF) and the Australian Dairy Industry Council (ADIC).

He is the former president of the United Dairyfarmers of Victoria (UDV).

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DAIRY NEWS FEBRUARY 10, 2015

26 // MANAGEMENT

How to survive in tight times IN RESPONSE to the low milk price, DairyNZ is pulling together research, data and lessons learned in similar seasons to help farmers prepare for the 2015-16 season.

The ‘Tactics for Tight Times’ campaign includes field days offering ways to survive and thrive in a low payout season.

DairyNZ’s Carolyn Bushell says managing in a low milk price year is nothing new; some farmers do it better than others.

Some farmers operate low-cost farm systems and make a profit with a $5/kgMS farmgate milk price. There are lessons from their management that we can all learn from, Bushell says.

“Over the next few months, DairyNZ is… allowing farmers to share what works for them and options to remain profitable. We want all farmers to build strength into their businesses, rather than maintaining status quo in the hope of a milk price lift next season.”

DairyNZ analysis shows the industry is just within the long-term bounds of trends for average dairy company total payouts. If your farm can’t survive those, look closely at the whole

farm operation and make changes.

First steps - understand your position A focus on cost-effective production will maximise profitability in all seasons, even when the milk price forecast trends down. The first step is to get clarity on the business’s financial position.

Have a budget and projected cashflow, and update it regularly. If you don’t have one, talk to your accountant and/or bank manager, but be closely involved in its development. It is important to understand and ‘own’ your budget.

Take control and communicate your plan

1. Get clarity on your financial position ■■ What is your starting point?

■■ Calculate your break-even milk price - start with total income and subtract farm working expenses, debt servicing, drawings, tax and capital expenditure.

2. Create a plan - focus on what you can control ■■ Assess your options. Step through expenses systematically and question every item. Will it give you a return? If not, can it wait? Spend a dollar to make $1.50, not the other way around. Will cutting costs have

■■

■■

TIGHT TIMES TACTICS ❱❱ Assess the current state of your business. What is your starting point? ❱❱ Understand your options and create a plan. ❱❱ Execute the plan well; keep the basics of good

management in mind. ❱❱ Identify those who can help you succeed and use that support. ❱❱ Communicate with partners, staff, bankers, accountants and other rural professionals.

■■

■■

■■

■■

negative consequences next season?

Focus on cost-effectiveness, rather than just cost reduction, and keep the basics of good management in mind.

Do you use benchmarking tools?

Talk to DairyBase or your accountant. Reports showing past physical or financial data helps identify past trends and where opportunities may exist.

Focus on principles of low cost of production, regardless of farm system or input level.

Maximise the amount of feed eaten from the dairy platform.

Closely match the herd’s feed demand to pasture growth, through feed budgeting and monitoring.

Ensure any purchased feed is eco-

Carolyn Bushell

nomically assessed and aids good pasture management 3. Implement the plan and update it regularly ■■ Identify those who can help you succeed in achieving your goals and utilise that support.

■■ Communicate the plan well with employees and advisory team (banker, accountant, farm consultant, rural suppliers).

■■ Continuously monitor results and make necessary adjustments.

DAIRY NEWS FEBRUARY 10, 2015

MANAGEMENT // 27

Higher yields through drip irrigation IN 2006, Australian dairy farmer Brett Dixon was faced with reduced irrigation allocations for the permanent water right he owned and high costs for the temporary water he had to buy to irrigate his 650ha farm.

He had also noticed nearby tomato farms were no longer irrigating by flooding water down furrows, but were using buried drip irrigation systems.

One had rotated tomato crops out of a drip irrigation paddock and sowed lucerne. “We were impressed with the results he achieved using drip irrigation to grow lucerne,” Dixon says.

Hence Dixon decided to install 20ha of sub-surface drip irrigation on his farm in northern Victoria, in late 2007. He added another 20ha of drip irrigation in 2012 and now permanently grows fodder on this 40ha.

He grew lucerne for the first six years on the original 20ha, and maize silage after that. The second 20ha block was sown with maize for the first year and is now growing lucerne.

As well as greater yield and water use efficiency, there are other benefits.

“The whole system is automatically controlled,” says Dixon. “I set a program on the irrigation controller and the pump starts, and it changes

blocks over after the allocated time.

“The controller also automatically injects fertiliser into the water during the irrigation, so these nutrients go directly to the root zone.”

The drip irrigation pipes, or ‘drip lines’, used on the Dixon farm are the same as those used in many other crops.

Polyethylene pipe, 22mm in diameter on the Dixon farm, are inserted underground at a depth of 25cm. Inside the pipe, every 50cm, there is an emitter which regulates the outward flow of water, in this case to 1L/hr.

The system is designed to deliver the peak water requirement – the amount of water the crop will consume per day at peak growing and evaporation periods. The Dixon system can apply 12mm of irrigation water per day.

Dixon decided to install a Netafim sub-surface drip irrigation system. Netafim pioneered the development of drip irrigation in Israel in the 1960s.

For Dixon, there are three main positives. “The sub-surface drip system has allowed me to achieve higher yields and reduce my water use.

“It also requires less labour to operate. On a busy dairy farm needing lots of feed, and with the cost of water increasing,

these factors have made the decision to install drip irrigation pay off.”

Australian farmer Brett Dixon.

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28 // MANAGEMENT

Waterways planting theme of field day of a field day this week, run by DairyNZ, Tatua and Waikato Regional Council at a Tatua Milk farm in Tatuanui.

All dairy farms must have stock excluded from waterways by May 31, 2017 and a planting plan for stream banks by 2020.

DairyNZ water quality scientist Tom Stephens says the field day is to help farmers get value for money from their planting

and make the most of the environmental benefits.

“It’s important to choose plants suited to the farm’s climate and soil, and plant them at the right time of the year,” says Stephens.

“We’ll be looking at plant options and which are most suitable for Waikato soils and climates, as well as the best time of the year to plant and different techniques.”

At the field day, farmers

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All dairy farms must have stock excluded from waterways by May 31, 2017.

will see what has worked well on the Tatua farm, as well as problems they may encounter and how to fix them.

The council will speak about funding options and how to keep costs down.

DairyNZ and Waikato Regional Council recently released a guide to successfully planting waterways in the Waikato region – ‘Getting riparian plant-

BALLANCE AGRI-NUTRIENTS has

ing right in Waikato’. It will be available at the field day and can be downloaded or ordered from dairynz.co.nz/waterways.

The guide helps farmers get started with the top five species to plant beside Waikato waterways, as well as a planting calendar and a table of plants to suit Waikato conditions, outlining the benefits and tolerances of each plant.

formed a team to help farmers deal with councils in sorting their compliance with environmental regulations and in applying for consents.

The team will provide a direct link between farmers and regional councils, the company says.

Team manager Alastair Taylor comments that, for example, the Sustainable Dairying Water Accord is ‘pressuring’ farmers to manage nutrients on their land.

“Farmers need to navigate through regulations on effluent management, nutrient use and environmental performance. Our new team will provide a direct link between farmers and regional councils to take the hassle out of environmental compliance.

“Regional councils are monitoring farms using the Overseer nutrient management model, which is jointly owned by the fertiliser industry, AgResearch and the Ministry for Primary Industries….

“Throughout New Zealand there is myriad of environmental regulations, by region and within regions. Our specialist team, with local experience and knowledge, helps farmers comply with their local land and water plans.”

The Ballance business extension services team provides nutrient budgets for resource consents, compliance and sale and purchase agreements.

It started in Canterbury and now is also working in the Horizons, Otago and Southland regions.

“In addition to our knowledge of Overseer and modelling farm systems, we also work with the Ballance science and sales teams to give farmers science-related advice,” Taylor says.

The team recently offered all Ballance dairy customers in Canterbury help in obtaining their nitrogen baseline, required under the regional land and water plan. nutrient.budget@ballance.co.nz

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DAIRY NEWS FEBRUARY 10, 2015

MANAGEMENT // 29

Use every drop to stave off drought IRRIGATING FARMERS are being urged to

optimise every drop of water.

Irrigation New Zealand warns the irrigation season may shut down six weeks earlier than usual in some regions, threatening the viability of crops and winter feed supply for stock. Earlier forecasts that Lake Opuha in South Canterbury may sustain irrigation until the end of February are now being revisited.

“The sustained dry conditions have reduced flows in the catchment and increased pressure on our storage prompting us to review the forecast for the lake. River flows and irrigation will suffer when we run out of storage,” says Opuha Water Ltd chief executive Tony McCormick.

Elsewhere in Canterbury and Otago, water restrictions are biting and many farmers say they need to shut down irrigation four-six weeks early given the dry conditions.

This will affect their ability to maintain winter feed crops, sow new pastures and ensure stock are in top condition going into the colder, harsher months.

IrrigationNZ project manager Paul Reese says irrigators should ensure their equipment is operating at its optimal level so whatever water is pumped is applied effectively. Irrigators also need to be aware of what is happening with their water supply and prepare ahead of further water restrictions to ensure domestic and stock

water is still available and that crops can be managed with restricted water supply.

“Scheduling is key, particularly now irrigators are limited in the water they have through seasonal volumes and with water meters in place, so know your soils and how much water your crop uses and apply irrigation accordingly. Groundwater users in particular need to think about their annual volume and where they are at.

“Ensure your irrigator is working as it should to guarantee you’re getting the best from the water you apply. Checking pressure and sprinklers regularly is essential.

“If you’re running out of water re-nozzling might help stretch it out for longer or alternatively if you operate a number of irrigation systems think about shutting off the less efficient ones, long laterals in pivot corners for example. That way you can continue to operate more efficient irrigators such as pivots and linear moves for longer,” says Reese.

IrrigationNZ has a checklist of options for irrigators to assist them make the right choices.

The options may not be available to all farmers as they depend on the equipment and setup of each irrigation system and how farmers react will also depend on their particular water restrictions and land use.

“From surface water river takes there may be a rationing regime in place that reduces the

IN BRIEF STINKBUGS RULED OUT NEW TREATMENT rules for imported vehicles and machinery from the US will help keep the brown marmorated stinkbug out of New Zealand, says the Ministry for Primary Industries.

All new and used cars, trucks, machinery, boats and parts from the US must be heat treated or fumigated with methyl bromide before being shipped to New Zealand.

“In the past, we did not require mandatory treatment prior to shipping from the United States. Instead new vehicles were assessed on arrival by quarantine officers and only those considered high risk were treated on arrival,” says Paul Hallett, MPI biosecurity and environment manager.

water take as certain trigger flows are reached. For example 100L/s to 75L/s when the first threshold hits then from 75L/s to 50L/s with the next. From an irrigation scheme the

roster may change from full flow to reduced flow so your system then has to match it or it could be that the scheme provides full flow but on reduced hours or fewer days.”

Irrigators could be forced to shut early if the rains don’t come.

DAIRY NEWS FEBRUARY 10, 2015

30 // MANAGEMENT

Stay on the ball JAMES THOMAS

THE COUNTRYSIDE

James Thomas

is drying markedly in Waikato, though some areas that got recent rain are holding on.

This may mean the third dry summer in a row for many areas, and this, with the poor payout, is putting pressure on some farmers.

It is too early in the

summer to overreact, but plans must be made to ensure the farm is proactive, not reactive.

Because the economics are not as good as last season it is not worth supplementing poorerproducing cows and keeping cull animals onfarm.

These animals must be identified by herd testing and pregnancy testing to enable a culling guide to be drawn up and imple-

mented when conditions dictate. It will also allow animals to be booked in early to meatworks to avoid lengthy holdups.

Consider also changing milking frequency to either 16-hour or once a day, best done while the farm still has feed.

Some animals may also be dried off if need be, though condition score should not be a limiting factor on farms at the

WHAT TO DO ■■

Make a plan that is updated weekly

■■

Consider some early culling

■■

Ensure that there will be supplement available for when the rain does come

■■

Monitor feed reserves and cow CS

■■

Look at changing milking frequency

■■

Talk to people

■■

Have some time off farm

moment.

Once you have ‘tidied’ the herd, turn your attention to a summer/autumn feed budget, primarily to assess the volume of supplement required. Feeding level of the cows will change on a weekly basis if pasture allocation starts to deplete.

Most important is to keep the cows milking until conditions improve.

Every summer has a dry spell – maybe we are getting this one out of the way early!

Crucially now, keep updating the financial and feed budgets so there are no surprises on the cashflow side of the business.

Attend discussion

groups and field days.

Most importantly, keep talking to friends, family and neighbours, and don’t think that this is your problem alone.

The rural support line is available for farmers under stress. Things will improve; it’s a question of when, not if.

Lastly, make sure that you get off the farm at some point. Even in times of belt-tightening go to a movie, on a picnic, or take to a cycle or walking track.

Getting off farm can help put everything into perspective and give you something to look forward to.

• James Thomas, is a FarmWise consultant.

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hand up for help.

So says Rural Support Trust, reminding rural dwellers of the many organizations ready to help farmers get through this testing season.

Soil moisture levels are now lower than during the 2013-14 dry. The low soil moisture is knocking pasture vitality, though supplementary feed remains plentiful following a good spring.

Farmers are reported to be coping, says Rural Support Trust Neil Bateup.

But the dry soil conditions are exacerbated by lower than usual river flows due to lower than average winter rainfall. Some consented irrigation take restrictions have taken effect, particularly in the Waihou-Piako catchments, and these could widen if rain stays away.

Auckland Council, Waikato Regional Council, DairyNZ, Beef + Lamb NZ, Ministry for Primary Industries, Waikato Rural Support Trust and Federated Farmers met last month to discuss the situation.

Feds says farmers are managing, but those with little drought experience are finding it tough.

Bateup says its early days and hopefully it won’t turn out as bad as last year.

The officials are to meet again within a fortnight to review the situation.

Tel. 0800 787 254

DAIRY NEWS FEBRUARY 10, 2015

ANIMAL HEALTH // 31

Secret behind most productive cow in the world is out GOOD ANIMAL care is behind the world’s most productive cow, DeLaval quotes the cow’s owner as saying.

For seventeen years, Vega, a cow on the island of Öland, Sweden milked 25kg every day – 156 tonnes of milk, 500% more than the average lifetime yield of a dairy cow in even high-producing countries.

And the farm has another cow, Docka, that has milked 70 tonnes, calved six times and shows no signs of stopping, DeLaval says.

“There is no secret to what we have done – animal health and welfare,” says Kerstin Persson, owner of the Arbelunda Sörgård farm.

“They need a nice life, and when

they do, then we do too.”

This farm is taking a holistic view of calf and cow care, ensuring a healthy and happy cow all her life.

Four things contribute, she says.

“She had a beautiful calfhood.

“She was young and well developed as a first calver. She was treated and cared for from the moment of birth.

“All her feeding over the transition periods from pregnancy to delivery and into lactation were excellent, every time.

“She was able to get pregnant quite rapidly after calving. And in order to calf quickly she needed to be fertile and healthy; she had no severe dis-

eases such as mastitis and no lameness.”

“Farms like this are important for the future of the industry,” says DeLaval dairy development director, Charlotte Hallén Sandgren.

“We are committed to sustainable food production, so extending the lifetime of a cow is important. It lets you do more with less and improves animal welfare….

“There’s no point getting your cows older if you don’t take care of them. If you don’t meet their needs then you will have problems getting them older anyway. But if you treat them well, they will have a happier lifetime and produce more.”

DELAVAL CALCULATES that 100 cows will earn an extra $18,600 per year if an extra lactation cycle is added to every cow.

The calculation is based on lower costs due to fewer heifers being raised and higher milk yield from elderly cows. Other studies show that if only the best heifers are bred then the genetic improvement increases these numbers even further.

And the farmer’s life gets better with happy, healthy cows.

“It means we can plan a trip to the cinema without having to worry about a cow that is sick because we simply make sure they’re all healthy.

We win on several fronts,” says Kerstin Persson, owner of Arbelunda

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DAIRY NEWS FEBRUARY 10, 2015

ANIMAL HEALTH // 33

Move early against facial eczema FACIAL ECZEMA (FE)

is a disease which causes lowered production and sometimes death from liver damage, says DairyNZ. Fungal spores produced by the fungus Pithomyces chartarum growing on pasture produce a toxin which when ingested by cattle damage the liver and bile ducts.

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

The first sign of FE is a drop in milk production occurring soon after the intake of toxic spores (subclinical FE). Cows are restless at milking time, seek shade and lick their udder. Another drop in production occurs when physical symptoms (clinical FE) become obvious. Exposed unpigmented or thin skin thickens and peels. Watch white areas, teats, inside the hind legs, and the udder and udder support area.

Not all animals affected with FE show physical symptoms although liver damage has occurred. Milk production of animals with subclinical FE can be depressed by up to 50%. It is estimated for every three in 100 cows showing clinical FE, about 70% of the herd may have

subclinical FE. Badly damaged liver tissue will not regenerate.

Chronic wasting and/or death may occur at the time of damage or months later when the animal is under stress e.g. calving.

The fungus produces spores when grass minimum temperatures are above 12°C for two or three nights and humidity is high (usually January to May). The fungus grows on soft litter at the base of the pasture so hard grazing during danger periods increases the risk of spore intake as does topping which increases the build up of soft litter.

To prevent FE, start control early. Ideally start zinc treatment two to three weeks before the spore growth danger period for maximum protection.

Administer zinc as a drench or in water/ feed supplies, or use zinc bullets as a standby; spray pasture with fungicide.

Map high and low risk areas of the farm through spore counting and check prevention regimes where young stock are being grazed.

FE spores love fresh new grass. Beware of conditions where rain produces fresh growth after a dry period, followed by another period of dry where the grass again dries (burns up).

Cows showing clinical signs of FE can recover if prompt action is taken: Dry off affected cows

now, to reduce pressure on the liver Put zinc cream on white areas of the coat and the udder (if affected) Move affected stock into dense shade. Indoors is best (hay-barn, calfrearing and implement sheds) but make sure there is a good water

supply and supplementary feed available for cows Feed cows at night, so they are not exposed to sunlight and stop hard grazing so cows do not graze down into dead matter where the spores that cause FE live Feeding maize and/or silage can help, but cows

will still tend to graze if they are kept on pasture Make sure the diet is balanced, with good levels of energy and protein.

The first sign of FE is a drop in milk production.

TREATING VERY SICK COWS ■■

■■ ■■

■■

■■

■■

■■

Use a starter drench to boost metabolic function Use vitamin B12 supplementation Seek veterinary advice regarding additional pain relief treatment.

Practical indicators of recovery include liveweight gain and improvement in body condition score (BCS). Be aware that animals can take up to 12 months to fully recover.

Animals with a previous history of clinical FE have a lower chance of recovery than previously unaffected animals.

When deciding to cull cows, act early before body condition score and the severity of the condition cause unnecessary distress and suffering.

If sending cows for processing farmers need to be aware that animals will not be accepted if emaciated or with severe skin damage (sores, weeping wounds etc).

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DAIRY NEWS FEBRUARY 10, 2015

34 // ANIMAL HEALTH Cows tend to protect themselves against heat stress by eating less.

Diet helps cows keep their cool CHOOSING THE right supplementary feed can help turn down the heat in cows’ digestive systems, helping counter heat stress, says animal nutri-

tion company SealesWinslow.

Science extension officer Sarah Morgan points out that feed digestion generates heat in a cow,

but that feeds requiring less energy to digest will also result in less heat generated and more comfortable cows as the average daytime temperatures stay high.

“Fibre produces more heat in the rumen than other carbohydrate feed sources,” she says.

“Feeds that have high oil content also require more energy to digest and reduce the efficiency of nutrient metabolism.

“Low fibre feed sources usually result in less heat from digestion than feeds that are higher in fibre.”

Morgan says cows tend to protect themselves against heat stress by eating less to avoid temperature increases during digestion, but this often comes at the cost of milk production. “The combined effects of higher temperatures and humidity can put a strain on the herd, and this is particularly so for high producing dairy cows. These higher producing cows generate more heat during digestion than lower producing cows.

“The main reason for the drop in milk production in these conditions is that the cows eat less to avoid further temperature rises during digestion; so minimising any environmental effects on dry matter intake is critical to

maintaining productivity in times of heat stress.”

Ready access to shade and plenty of cool, clean, fresh water is the number one thing way to support a herd in keeping temperatures down.

Morgan recommends increasing the energy density of the diet to help compensate for reduced dry matter intake, and providing a good source of protein to help stimulate hunger and avoid temperature increases will help maintain production in herds still being milked.

“Fat, such as a coated or bypass fat, is a good way to increase energy density in the diet and compensate for the difficulties of achieving target intakes through pasture alone.

“The quantity of quality protein over warmer summer months also becomes important, particularly as pasture quality drops.

“Protein in the diet not only supports milk production and milk protein content, but also plays a hand in stimulating intakes or hunger.”

She says the best protein sources at this time of year are feeds higher in bypass protein or rumen undegradable dietary protein, which passes through the rumen and digests in the lower intestine.

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Heat stress occurs when the cow’s ability to cool down is impaired by heat.

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■■

Signs of heat stress in lactating cows include reduced feed intakes, lethargic behaviour and lower milk production.

■■

Provision of shade and a good supply of cool, clean, fresh water can support the herd to keep temperatures down.

■■

Heat production increases following a meal: this is a result of the heat energy from fermentation and heat of nutrient metabolism.

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DAIRY NEWS FEBRUARY 10, 2015

FENCING & FARM BUILDINGS // 35

So you think you need a bigger dairy?

DAIRY INFRASTRUCTURE can have a major

impact on milking efficiency and the comfort of cows and milkers.

Upgrading an existing dairy or installing a new dairy are big, often costly projects, says DairyNZ. A decision to change the dairy should be based on a genuine need for improved infrastructure.

It should be financially viable and support the achievement of the farm’s goals.

Generally a change in the milk harvesting system cannot be assessed in isolation from the rest of the farm business. A major upgrade or a new dairy is not ‘just a shed’ but has

implications for the whole farm system.

The motivation for a big change may include: the current system is working well but is too small to cope with goals, i.e. milking more cows, employing more or less labour; or the current system may not be working well, i.e. the milker is idle or flat-out, the dairy is too cramped, or it takes too long to milk. In this case possibly the extra capacity/efficiency of a new set-up could help pay for the upgrade.

Sometimes the motivation for change may be a combination of both, e.g. milking may be taking too long and extra income

may be needed to cover increasing expenses.

Other reasons for seeking changes include: ■■ A desire to improve the working environment to get benefits such as reduced OSH risks ■■ Improved attitudes to the milking job and farming in general ■■ More time to spend on management tasks or being able to attract and keep high calibre staff to take over the day-to-day tasks.

Be clear about motives for change and keep a focus on the farm goals.

If the primary goal is to increase disposable income there may be other ways to achieve this with-

out a big building project.

Not all of a farmer’s goals will be financially motivated but every decision made on the farm has a financial implication.

The implications of building a new dairy need to be analysed from many different angles so the risks of financial failure are kept to a minimum and financial targets are reached.

Some common general considerations are: ■■ Will the change be an upgrade or a whole new dairy?

Will more cows be required to pay for a new dairy?

If extra cows are required, what will the impact be on the herd, feed, management, labour, infrastructure and debt?

Take into account all costs when doing budgets and plans. These can hugely affect the financial viability of a project, e.g. will the existing infrastructure meet requirements of an expanded herd (effluent, fencing, laneways and water)?

■■

Infrastructure checklist Checking that all necessary elements are included before seeking quotes will restrict those quotes to one only. Sending a single set of plans to all contractors ensures they are all quoting on the same job, allowing meaningful comparisons of all quotes.

The New Zealand Food Safety Authority (NZFSA) and your milk company have strict rules for dairy infrastructure relating to milk quality and milk col-

lection. Don’t start building or renovating before you consult your milk company.

The ‘Infrastructure Checklist’ document is a spreadsheet for making changes to milking infrastructure.

Use it as a guide during the design stage. It lists each item; use ticks and crosses to indicate those items that are okay and those needing fixing or upgrading. @dairy_news facebook.com/dairynews

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DAIRY NEWS FEBRUARY 10, 2015

36 // FENCING & FARM BUILDINGS

Cow houses designed to suit animals, not humans A GUIDE to cow house

design “suits the needs of the dairy system and is an aid to farm profitability,” says its publisher, Aztech Building.

Sales manager Simon Clare says the company’s designs suit animals and the demands of milk production rather than human or construction preferences.

He says in a typical North Island dairy farming scenario, farmers want the ability to stand their cows off in a hybrid scenario, rather than the intensive 365 day/year model.

“It’s intended to

improve the pasture based farming system, using the cow-in-the-paddock model, but in the wet months standing the cows off.

“However, farmers are finding benefits [during hot weather, from housing’s] lower temperatures and shade reducing cow heat stress…, which is a costly inhibitor to profitability, estimated at up to 2L of milk/day/cow during summer.”

Clare says the company works to optimise the design and ventilation of each structure to make conditions more consistent and comfortable for the cows, so they can convert that feed into milk more effectively.

Its clients have many different reasons for wanting dairy housing, and a one-size-fits-all solution does not necessarily maxi-

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Aztech Building says its structure design suits animals.

mise a farmer’s return on investment.

“At the start of the process we ask what the farmer is hoping to achieve,” he says.

“He may want to reduce land costs, increase standoff ability, get more out of cows by taking them out of the heat…. Taking the stormwater component out of the effluent by using the roof to divert it is a massive benefit.”

The company consulted such industry experts as Dr Sue Macky, clinical vet-

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erinarian, dairy cow nutritionist and principal dairy consultant at Dairy Production Systems.

Clare says Macky referred to a lot of mis-

guided perceptions about needing to keep cows warm, when in fact a cow’s optimum ambient temperature is below 15oC. “Something cold to

a human is not cold to a cow,” Clare says.

“The ideal cow environment should be unpleasantly cold to a human. The critical thing is air move-

ment, so in all areas we try to maintain the optimum 2.5-5m3 second.”

Tel. 0800 298 324 www.aztechbuildings. co.nz

Staff-friendly workplace tops design criteria WORK AREAS for the milking

routine must protect milk quality, be safe, easy to clean and efficient to work in, says DairyNZ. A people friendly environment will improve morale, work efficiency and staff retention.

If the bulk milk tank is located inside, consider the ease of access for the tanker driver.

If possible, design the milk room for easy removal of a wall so the bulk milk tank can be replaced as the herd grows. \Large roller doors, window walls, sliding doors

clad with lightweight polycarbonate can all be removed if the need arises.

Site the plant room to minimise noise in the milking area; consider putting the vacuum pump outside the main building to reduce noise.

This room should be lockable, fitted with all necessary safety fittings and a fire extinguisher kept nearby; ventilate it well for efficient vacuum pump cooling.

Consider building an office in the dairy: increased automation and quality assurance mean more

information is collected, analysed and requires storage.

Some dairy designs include a tea room, access to a phone, wash room, toilet, shower, change room and childcare; these facilities are especially important in larger dairies with multiple employees.

Access to these facilities should be possible without walking through the milking area; use an external door.

Single operator dairies should be equipped to alert another person to injury or emergency.

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BECAUSE B ECCOOL A USE COWS BECAUSE UNCOVERED UNCOVEREDMORE FEED-PADS FEED-PMILK ADS PRODUCE NEGATIVELY N E G AT I V E LY OVERLOAD O V E R L OA D Keep your herd cool over summer EFFLUENT E F F Lpermanent U E N T VOLUME Vdairy O L Uhousing.

ME through Cover C Co Cove ove ver y yo your ou urr ffeed-pad eed ee d--p pa ad tto o That’s we separate and se s ep pa ara rawhere te rrainwater te aiin a nw wat atcome er a er nd n din. effluent volume. rreduce re red ed du u uc ce c ee fffflu uent ent vo en v olu lum me e.

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DAIRY NEWS FEBRUARY 10, 2015

38 // MACHINERY & PRODUCTS

Victoria farmer loves cows, blue tractors CHRIS DINGLE

AUSTRALIAN FARMERS Roger and

Amanda Heath knew they would need to buy new machinery when they recently bought the family dairy farm from Roger’s parents Peter and Janice.

Roger and Amanda, with their six children, milk 300 Jerseys and some Illawarras on 260ha with a 22ha run-off leased block for the heifers, at Bookaar near Camperdown, western Victoria.

It is a fourth generation dairy, started by Heath’s great, great grandmother on 40ha and he has been there for 21 years, leaving school at 15 to come home to do the milking and do his farm apprenticeship

on the place.

“We previously had a New Holland TS100 tractor which is still going strong on the farm after 10,000 hours. It was the main tractor and will now be kept for feeding out, raking and baling”, explained Mr Heath.

In April last year they bought a New Holland T5.105 with an MX frontend loader through the Swayn & McCabe dealership at Colac.

“The 112hp is the ideal size for us. We chose this New Holland model because it is a basic tractor and because of the reliability that we got from the old tractor.

“It had to be easy to use; we have one full-time operator, Tyson Osborne, and he is the main operator of the machine.

It runs well with great visibility, it’s hard to fault.

The hydraulics are very quick.”

The recently-released T5.105 has a 3.4L 4-cyl engine which is Tier 4A emission compliant and utilises New Holland’s cooled exhaust gas recirculation system and a diesel particulate filter.

The common rail system for diesel engines was first introduced to farming by New Holland in 2003, and they claim the benefits in comparison with conventional engines include reduced engine noise, better combustion, higher engine power density and lower emissions.

The tractor runs a 12x12 transmission with electrohydraulic power shuttle which makes operating

a front-end loader much easier.

The hydraulics have an open-centre system with tandem gear pumps providing a combined total flow of 99L/min.

Remote levers are within easy reach on the ergonomic CommandArc console.

“This is the first tractor we have had with a front loader, and we should have had one 20 years ago”, says Heath. “It’s amazing how many extra jobs you can find for the loader; it saves time and is very convenient.”

They feed pellets in the bail to the cows in their 20 a-side swingover herringbone shed and meal to the yearlings and calves. “Filling the pellet feeders is easy with the loader; the Quick Hitch

Roger Heath

takes about a minute to drop the forks and put on the bucket.

“It’s halved the time in changing over to the bucket. Mechanically it is a simple quick fix.”

Heath is passionate about his cows, with a big interest in the stud side through their Wanstead Jersey stud, started by his great grandparents. “I just love the cows, always have.” He has been a classifier with the Jersey

Association for 11 years, and gets to see lots of the country.

They’ve had a very ordinary season for hay.

“We made all our own silage of 600 bales; we usually do 1000, and have been buying in hay. We normally work on 1000 bales of silage and 1000 of hay. The rain shut off in early August; we always usually get a spring.”

They need to milk 300 cows for debt

replacement. They run a self-replacing herd and will bring 100 new cows into the shed this year.

They would like to sit at 300 cows comfortably but will need to increase numbers in the next few years, probably up to 340.

As part of their upgrading program automatic cluster removers and stall gates are on the list, as will be a new feed system. www.newholland.co.nz

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DAIRY NEWS FEBRUARY 10, 2015

MACHINERY & PRODUCTS // 39

Ploughman eyes podium TONY HOPKINSON

WAIKATO FARMER

John Guy began competitive ploughing “many moons ago” as a member of the Young Farmers Club.

He has competed in several New Zealand finals, not yet making the winner’s podium. He qualified for the 2015 final at the Manawatu Ploughing Association held in Octo-

ber 2014. The New Zealand finals will be held at Palmerston, East Otago, on April 18-19.

His ploughing recently has been helped by the generosity of New Holland Agriculture and their Morrinsville branch manager Craig Berkers. They have lent Guy the latest New Holland TT4.75 tractor for all his competitive ploughing including the New Zealand finals.

Berkers says they have

done business with Guy for a long time and saw this as a way to support Guy and ploughing and to publicise the tractor.

John Guy with the New Holland TT475 tractor.

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Food delights to spice up field days CENTRAL DISTRICTS Field Days organisers say their event is shaping up the “tastiest yet” with new exhibitors and attractions.

For foodies, the Taste of Central Districts will serve the region’s wines and foods – Pheasant Creek and Ruahine wines, Basecamp venison salamis, Koast Limoncello, Gladstone Vineyard and Southern Grain Spirits.

Southern Grain drinks will include Duckshooter Port and aged whisky.

Food zones will sell whitebait fritters, gourmet burgers, hotdogs, hot donuts, etc. Supporting local business and talent, these food zones will be astir for the three days.

The food innovation and research experts FoodHQ will be on site offering visitors chats with their experts about the science being done in New Zealand. FoodHQ is world-notable for agri-food science and innovation along the food value chain - from idea generation to products on the shelf.

The FoodHQ campus being developed in Palmerston North will offer global customers ‘one-door access’ to the best in New Zealand food innovation.

The collaborative approach creates a faster, easier way for food companies to work with the FoodHQ family.

Mark Ward, programme director at FoodHQ, says: “We’ll be talking to people about our vision and what we’re doing to help grow New Zealand’s agrifood sector. They’ll get to hear from food science experts and get to taste some enjoyable, innovative treats.”

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DAIRY NEWS FEBRUARY 10, 2015

40 // MACHINERY & PRODUCTS

New field days site ideally placed to welcome new visitors MORE EXHIBITORS

committee, and they are confident everything will get done on time.

The new rectangle block at Kirwee is a better shape than the former site in Lincoln and should be easier for exhibitors to work with; entry into the event will also be easier and more logical. The previous site was a triangle, and exhibitors in the far corners were sometimes overlooked.

SIAFD usually attracts about 25,000 visitors over the three days, although

and visitors are expected at this year’s South Island Agricultural field days (SIAFD), March 25-27, on a new site in Kirwee.

SIAFD bought the 40ha site after it outgrew its previous leased site near Lincoln University, after 32 years; the field days have been held near Christchurch every second year since 1951.

Committee chairman Alastair Robinson says while there is still a lot to do, the event has a good

the committee is hoping the larger site and new location will result in even more coming through.

“We have registered 450 exhibitors, which is over 150 more than our previous event. We’re hopeful that we’ll have more people through the gate than previously,” Robinson says.

“There’s been positive feedback from exhibitors and they’re looking forward to the new site.

They’re happy with the layout.”

Farmland marketers doing the rounds at last year’s event.

About 100 tractors and machinery will be on display.

Over 450 exhibitors are registered for the three-day event.

A half-circle centrepivot irrigator will operate at the front of the site. It

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Think Water Leeston, a family-owned water services business, has made a commitment to supply, install and maintain the irrigator for 20 years and will be present at the event.

Committee member Daniel Schat says crops for demonstrations have been drilled and sites allocated.

“We have more room and the shape is a lot more conducive to filling up the space. The half-circle centre-pivot irrigator is

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located at the front, close to the big demonstrating exhibitors,” he says.

The increase in exhibitor numbers this year shows the community is continuing to support the field days and wants to be a part of it, he says. “It’s only a $15 entry fee so it’s very minimal.”

About 100 pieces of machinery, including tractors, headers, mowers and seed drills, are demonstrated.

Tel. 03 423 0537 info@siafd.co.nz.

DAIRY NEWS FEBRUARY 10, 2015

MACHINERY & PRODUCTS // 41

2014’s most beautiful car THE JAGUAR XE has

been named ‘Most Beautiful Car of 2014’ at Festival Automobile International in Paris.

The Jaguar XE was first shown at the Paris Motor Show in October 2014 and will arrive in New Zealand

in the second half of 2015.

The award is decided by a public vote, with 100,000 votes cast in 59 countries. Beating competition from the Mazda MX-5, Mercedes C-Class Estate and Fiat 500X, the Jaguar XE won with 28% of

Dairy hygiene company GEA FIL has joined the scheme.

Jaguar XE

the votes.

This is the XE’s second French award since the Paris Motor Show in October 2014, where it was named ‘Best Production Car’ by Auto Plus magazine and the listeners of French radio station, RTL.

WORKHORSES FOR A NEW GENERATION

Large drums rolled away for recycling A RURAL recycling scheme will now include on-farm collection of large drums.

The new Agrecovery service offers free collection of empty containers 61-1000L from 14 participating brand owners of agrichemical and dairy products (Agrisource, Adama, Bayer, BioAg, Donaghys, Etec Crop Solutions, FIL, Farmguard, Orion Crop Protection, Post-Harvest Solutions, Ravensdown, Synergy, Syngenta and Yara).

More brands are expected to join.

“A solution for larger packaging is a natural next step for Agrecovery,” says Adrienne Wilcock, who represents DairyNZ on the Agrecovery Foundation.

“A solution for larger packaging is a natural next step for Agrecovery.”

“Large scale farmers, spray contractors and dairy farmers especially should take note that their large drums and IBC’s can now be collected for free.”

Agrecovery currently recycles the containers of 60 firms – 1 million kg of plastic since launching in 2007.

“It’s a good way for farmers to divert more waste from farm dumps or burning pits, especially in areas where burning is banned, like Canterbury and Southland,” Willcock says.

“As a dairy farmer myself, I’ll be supporting the brands that offer this solution with Agrecovery.”

Dairy hygiene firm GEA FIL drums can now be recycled via Agrecovery.

In addition to free on-property collection of large drums, smaller FIL containers (60L and under) can be taken to any of the 70 Agrecovery collection sites. They must be empty, triple rinsed and free from dirt and residue inside and out.

Tel. 0800 247 326 www.agrecovery.co.nz

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DAIRY NEWS FEBRUARY 10, 2015

42 // MACHINERY & PRODUCTS

Sun shines on plastic recycler back says its collection rates for used silage wrap are climbing steadily.

Plasback manager Chris Hartshorne says the company is on track to collect 2000 tonnes in the year ending June 2015.

Some regions have seen particularly strong growth, he says.

“In Southland/Otago, Taranaki, Bay of Plenty, Hawkes Bay and Nelson/ Blenheim we have already collected more in the first half of this year than in the whole of last year. Waikato and Canterbury are also tracking well up on last year.”

The $40 fee to collect each bin liner full of waste silage wrap is no higher than when the service started in 2006, he says.

“The more farmers we have on board, the cheaper and more efficient the service we can provide. With more people in the scheme, our collectors can stop at more farms on each pickup run and they can make their runs more

Container scrap – Plasback says collection rates of 20 litre drums from farms, such as these from the Agpro’s corporate customers, are well up on last year.

frequently.

“We are building two new balers to process the wrap more quickly. Collection can slow during summer when the contractors who col-

David James – One of Plasback’s new silage wrap balers has been completed (rear) and the other is under construction.

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lect the liners are tied up with hay and silage making, so we urge our customers to have a bit of patience.”

Plasback also collects 200L Ecolab and Agpro plastic drums and collection rates of these for 2014-2015 are also well

JUST RELEASED in New Zealand, the 2015 Kia Rio has newly styled alloy wheels and changes to the front and rear, says the maker.

The Rio is the most popular Kia model worldwide.

The revised front bumper and Tiger Nose

grille incorporate ‘winglets’ into the fog lamp recesses, while at the rear a new shape bumper is “more contoured and elegant”.

All Rio models now have alloy wheels – base models previously had steel rims and wheel covers – with 15-inch

Pichon offers an extensive range of slurry tanker systems, with capacities ranging from 2,600 up to 30,000L and also a number of axle options.

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up on last year. The service has recovered 1483 large drums during the first six-month period compared to a total of 1688 during the full 2013-2014 year.

Tel. 0508 338 240 chartshorne@agpac.co.nz

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alloys for the LX manual petrol model, 16-inch alloys for the LX petrol auto and LX diesel, and 17-inch alloys for the EX Rio. Daytime running lights are standard on all Rio models and two new colours, Urban Blue and Digital Yellow, complete the exterior upgrade.

The car maker says inside, changes to the dashboard include chrome trim around the air vents and changes to the centre console, incorporating simplified controls to make the audio system more user friendly.

“Supervision cluster instrumentation is now adopted for the Rio range, providing the driver with better information.

“The Kia Rio continues to be one of the best equipped small cars in New Zealand, with reverse warning sensors, in-cabin headlamp adjustment,

air-conditioning, remote locking with in-built car alarm, a height-adjustable driver’s seat, telescopic steering wheel, split folding rear seats, rear luggage cover, auto light control, cruise control and audio controls on a leather wrapped steering wheel, Bluetooth hands-free and an MP3-compatible/radio/ CD audio system with USB and AUX ports all included as part of the standard package.”

The EX model also features LED daytime running and rear combination lamps, climate air conditioning with an auto de-fog system, electric folding door mirrors (incorporating LED indicators), rain sensing wipers, smart cornering lights and automatic projection-type headlights. A proximity key with pushbutton engine start is added to the EX model for the 2015 year.

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