Dairy News 24 February 2015

Irrigation running out or gone in South Island. PAGE 7 OFFROADER WITH ATTITUDE Sporty side by side PAGE 38

THE PERFECT FARM Fish & Game’s ideal PAGE 11 FEBRUARY 24, 2015 ISSUE 329 // www.dairynews.co.nz

THE NEXT GENERATION Landcorp’s new dairy chief . PAGE 5

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DAIRY NEWS FEBRUARY 24, 2015

NEWS // 3

Prices back on track PAM TIPA pamelat@ruralnews.co.nz

ALL EYES ARE on Fonterra this week to see if it

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lifts its $4.70/kgMS forecast after the Global Dairy Trade (GDT) prices last week surged 10.1%.

Banks are already lifting their forecasts: ASB is up 30c to $5/kgMS and BNZ up 10c to $4.80/kgMS. The latest GDT lift is on top of a 9.4% rise at the previous auction, the key product whole milk powder up 13.7% this time, on top of a combined lift in the last two auctions of 35%.

Fonterra is due to announce its updated forecast under DIRA regulation during a visit to Northland this week.

BNZ senior economist Doug Steel says the bank has lifted its forecast to $4.80/kgMS for 2014-15 on the back of the last two auctions. Big gains have come a bit earlier than anticipated.

“We were expecting prices to be higher this year but they’re certainly coming in a rush in two auctions,” he told Dairy News. “It’s to do with the dry in New Zealand, but also slowing production growth around the world is a big part of it.”

BNZ’s forecast for the coming season is about $6/kgMS. “It’s early days for that one. It’s due to the vagaries of the commodity and currency mar-

kets so we’ll continue to assess that one.”

They are still conscious of the challenges for the milk supply globally through 2015 with the European quota coming off and low grain prices encouraging production in the northern hemisphere, Steel says.

Last week’s GDT prompted ASB to lift its farmgate forecast 30c to $5/kgMS for the 2014-15 season and to lift next season’s forecast by 50c to $6.50/ kgMS. ASB rural economist Nathan Penny says dairy

prices are “back on the horse”. But while the results were impressive they came at a cost, including the drought declaration in Canterbury and rapid slowing of milk production.

“Generally, farmers have begun to respond to lower global farmgate milk prices (and in the case of NZ, prompted further by dry conditions) by slowing their production,” Penny says in his weekly update. “Moreover, what the recent auction results highlight is that global dairy markets remain sensitive to changes in NZ milk supply.”

MANY FORCES IN PLAY SEVERAL FACTORS will come into play when the milk price forecast is revised this week, says Fonterra chairman John Wilson.

“As we said in December when we announced the $4.70 figure, this required whole milk powder prices to move up to about $3500/tonne by autumn,”

he told Federated Farmers Dairy section’s annual conference in Taupo.

“We can see that movement now but there are other factors such as the exchange rate volatility which the board will take into account as part of its review.”

Wilson says they will look at supply and

demand for milk products internationally. Factors include the drought in New Zealand and Australia and production dropping in Europe because of lower milk prices. “[Our new forecast] will be based on all that analysis and taking this through to the end of our financial year.” – Peter Burke

Lochinver Station deal in limbo PETER BURKE peterb@ruralnews.co.nz

Morrinsville farmer puts his faith in robots. PG.32-33

NEWS ������������������������������������������������������3-15 OPINION ���������������������������������������������� 16-17 AGRIBUSINESS ����������������������������� 18-22 MANAGEMENT ������������������������������ 23-26 ANIMAL HEALTH �������������������������� 27-30 FARM DAIRIES & EQUIPMENT �������������������������������� 31-33 MACHINERY & PRODUCTS ��������������������������������������34-38

THE FUTURE ownership of Lochinver Station near Taupo remains in limbo.

The Chinese company Shanghai Pengxin lodged a bid to buy the station last July, seeking approval from the New Zealand Overseas Investment Office (OIO).

But Shanghai Pengxin chief executive Gary Romano says though they have talked to the OIO they still do not know when a decision may be made.

“The sale and purchase agreement is conditional on regulatory approval in China and New Zealand and until that happens we can’t settle.”

Romano agrees July-February is a long time.

The proposed purchase of Lochinver by Shanghai Pengxin has been controversial. There is speculation that part of Lochinver could be converted to dairy farming because it backs on to another farm

Shanghai Pengxin bought from the receiver of the Alan Crafar farm business.

Romano observes, “This is a separate process from that of the purchase of station. Firstly you have to purchase the farm and to do this you need OIO approval. If we get this we still need to apply for consents and even if we get these there will probably be conditions that may apply.

“So is there is a valid concern… and a valid process to deal with that concern. The RMA process is set up to balance economic growth and environmental protection and stakeholders get a say in the process.”

Lochinver, owned by the Stevenson family, runs 19,000 breeding ewes, 1323 mixed age breeding cows, grazes 2300 dairy cows over winter and can hold 14,500 dairy heifers in quarantine.

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DAIRY NEWS FEBRUARY 24, 2015

4 // NEWS

Watch prices rise later – Australia chief SUDESH KISSUN sudeshk@ruralnews.co.nz

DAIRY AUSTRALIA chief executive

Ian Halliday is predicting further recovery in dairy prices later this year.

Speaking at the Australian Dairy Conference in Launceston, Tasmania, last week, Halliday said prices to Australian farmers are expected to improve soon.

He pointed to a drop in milk output in key markets like New Zealand

and Europe. ‘’New Zealand pulled back full year forecasts by 3.5 % compared to the prior year. It’s been pretty dry over there.

“Europe was up about 5% last year; it’s down 2% this year. When world prices go towards record levels, every region… around the world chases that record price. New Zealand was up 9% last year, US was up 3% and Europe 5%.”

Australia finished last season only 0.4% up. Halliday puts this down to a tough start to the 2013-14 season.

This year’s national milk volume in

Ian Halliday

Australia will be up 2%. “We’re running at 2.6% after a strong start but it’s been tapering off this summer.”

At the same time consumption in the domestic market remains steady and solid “in line with population growth which is still a good outcome because in many developing counties dairy is under pressure, particularly milk consumption; it’s under pressure from other beverages.”

Halliday says the national dairy consumption is in line with population growth.

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for UHT milk processor

SHANGHAI PENGXIN chief executive Gary

Romano has complimented Miraka, the Maori-owned dairy factory near Taupo, for producing UHT milk for Shanghai Pengxin to sell in China.

Ramano told Dairy News the arrangement is working well; the first product is being sold via the internet in China.

Miraka last year signed with Shanghai Pengxin and the Chinese dairy company Mengniu to produce branded UHT milk for the China market. Some of that milk comes from Shangahi Pengxin’s farms in the central North Island.

The UHT milk is packed into 250ml consumer packs. Miraka can make 240 million such packs annually.

“From a marketing perspective we are happy,” Romano says. “Mengniu is also taking product off that factory and although we have no sales data from them, they are pretty enthusiastic and think it will be successful.

“Miraka has been quite flexible… when you’re doing a new market launch there will be ups and downs. I’ve found their staff supportive and focused and good to work with.”

The UHT plant cost Miraka $27 million.

– Peter Burke

DAIRY NEWS FEBRUARY 24, 2015

NEWS // 5

Clear vision for renewal PETER BURKE peterb@ruralnews.co.nz

DAIRY FARMING sys-

tems on Landcorp properties will in ten years be quite different from those of today, says the general manager of its dairy operations.

Mark Julian is seen as an up-and-coming business leader; in 2013 he was named Young Business Executive of the Year. Last October he was appointed to run Landcorp’s dairy operations – 59 farms nationwide.

He told Dairy News key changes will include addressing environmental issues and devising systems to recruit and retain good people to run the business.

Currently any decision on farm systems changes is run through the Overseer model, and proposed changes to any business case also get Overseer treatment to show the effect on the business’s nutrient footprint.

“All the business plans we put together have a section on sustainable management – the nutrient budget, where things are heading and options for mitigating loss. On any farm we’re looking at key sensitivities about the environment, for example, erosion control and sensitive waterways, to set goals.”

Julian’s role is to look at what the dairy industry as a whole is doing and what research projects are underway, such as Pastoral

Mark Julian runs Landcorp’s dairy operations.

21 with its focus on ways of improving environmental outcomes on farms. He’s been in a group review-

DOING WHAT HE LOVES – ONLY BIGGER MARK JULIAN is arguably New Zealand’s biggest farmer, controlling 59 dairy farms running 55,000 cows that produce 20 million kgMS per year.

He grew up on a dairy farm at Okato, Taranaki, and knows what farm life is about.

He completed Bachelor of Applied Science, with a major in agriculture, at Massey University then spent another year studying dairy production and farm management. In his final year he won the William Gerrish Memorial Prize in Farm Management.

After university Julian worked as consulting officer for DairyNZ in the

central plateau area where many of Landcorps dairy farms are located.

He joined Landcorp about six years ago as a business manager in Wellington, spent two years on the West Coast as a farm business manager, then returned to Wellington in 2011 as a senior business manager before his present role.

He admits to a passion for dairying. “I like cows and love farming; it’s what I have grown up with.

During the few times I haven’t been directly involved in farming I’ve always wanted to get back to it. It’s where I’ve spent my career and it’s a fantastic place.”

ing these projects, sparking an idea he’s keen to implement at Landcorp – a ‘future focus farm’.

“This would look at how we get profitable systems with half the nitrogen leaching…. It may involve taking risks so we would bring in some of the best people in the industry, not just from Landcorp.

“The aim would be to define environmentally sustainable farming systems [and the resulting] stocking rates, inputs and infrastructure.”

The idea is embryonic; no concrete plans are in place but it fits the industry leadership role Landcorp by its nature assumes.

“A lot of the things

we’ll be doing will have flow-on effects for the industry. But they’ll be for our business too because we’re big. We can do trials on one of our 59 dairy farms… that may have implications and benefits for our other farms.

They may also have flowon effects for the wider industry.”

Julian says Landcorp is now engaging more with stakeholders including iwi, commercial farmers and the wider community.

“We’re trying to open up our business. For example, if we go with a focus farm we’d build online capacity so people can see what we’re doing and hold field days and that sort of thing.”

Related to the present

and the future is Landcorp’s emphasis on the environment.

They note the Maori concept of kaitiakitanga.

One Landcorp goal is to “rejuvenate” the environment, not just manage within the limits of the law.

This philosophy is embedded in the company’s environmental plans.

Good quality data is crucial to good environmental management and making a profit. Landcorp is renowned for collecting a lot of data from milking sheds, paddocks and beyond. This can be shared by all in the company.

The business is constantly evaluating new systems for dairying. Though cow houses may have a place, they must stack up investment-wise. Julian notes recent research Mat-

thew Newman, DairyNZ, on the costs and benefits of these structures.

Farmers must be clear why they would invest in cow houses.

“I’ve seen farms in Waikato with herd homes.

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DAIRY NEWS FEBRUARY 24, 2015

6 // NEWS

North Island dry in patches DAIRYNZ’S GENERAL

manager extension Craig McBeth says North Island is “definitely getting dry and it’s starting to bite harder with every week that goes by”.

“It’s the nature of a drought that you just

don’t know when it’s going to come right, and that makes it harder to endure.”

The dry is particularly patchy with some farms having caught heavy showers while near neighbours missed out, he notes.

damage but if you overgraze and perhaps have black beetle stress as well the plants won’t recover, or not for a long time.”

Late last week the pasture growth forecast for this week in Waikato was just 2kgDM/ha/day, com-

Where rains have missed, avoiding overgrazing is crucial to ensure pasture has the potential to recover strongly when it does rain.

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DairyNZ’s Tactics for Tight Times onfarm workshops starting this week will include tips on managing the dry, says McBeth.

“It was designed in light of the falling payout but we’re factoring in messages due to the dry summer….

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However, diets have to be worked out farm by farm depending on livestock demand and what’s available, and at what price. “You can’t give a generic recipe for this stuff.”

on so we’ll be talking about what to do about that.”

‘SMALL’ DAIRY farms lack the level of help offered to small-to-medium enterprises (SME’s) in the cities, and they should be getting it, says DairyNZ. Strategy and investment leader for sustainability Dr Rick Pridmore told Federated Farmers Dairy section’s annual conference in Taupo last week the help is especially needed by farmers running smaller operations – cow numbers up to 400.

He says larger farming operations are better off in being likely to have more resources to meet the growing mountain of paperwork being thrust on farmers.

For many these demands are “frightening”.

He discovered the extent of the problem while involved in a business council in Hamilton where he mentored SMEs. Business councils are government

funded and have resources to offer city businesses. But no such thing exists for rural businesses, Pridmore says.

“In Hamilton they‘ll give you pamphlets and training courses, and you’ll get a mentor, but if you’re a dairy farmer how do you deal with that paperwork? Dairy farmers need the same help as any SME. “No doubt distance is a tyranny: it’s very hard to work out where to go for help if you live in a rural area. When I was setting up my business I didn’t know how to register for health and safety and ACC. But there are ways around this with more on-line tools being made available.”

Pridmore says farmers have many more issues to deal with than do city businesses and though some government agencies offer assistance, there is no independent organisation dairy farmers can readily go to for help. And he stresses that those designing help programmes should not assume that what works for a large business will automatically work for a SME.

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DAIRY NEWS FEBRUARY 24, 2015

NEWS // 7

ANDREW SWALLOW

IRRIGATION IS running out, if not already gone, for an increasing number of South Island dairy farms as the drought tightens its stranglehold.

South Canterbury’s Opuha scheme will be shut down tomorrow (Wednesday Feb 25) following two months of mostly 50% restriction, and seasonal limits on some water take consents elsewhere mean pumps must be turned off even though there’s water in the well.

“We need rain, and we need it yesterday,” Federated Farmers Dairy North Canterbury chairman Vaughan Beazer told Dairy News.

Many cull cows have gone already and more and more farms are reducing milking frequency, though as yet he’s not heard of any total dry-offs.

“I know of one farm that’s been feeding 100% supplement. You can only do that for so long on a low payout.”

However, others with reliable irrigation are still milking well off grass, though even they may have concerns about winter feed and/or condition of calves and heifers elsewhere on dryland.

“If we get rain in the next two weeks the dryland winter crops will have half their normal yield. If not, I don’t know what we’ll feed the cows over winter.”

Beazer’s South Canterbury counterpart, Ryan O’Sullivan, says winter feed “is the big issue looming.” “It’s too early to panic but you’ve got to be having that conversation with your grazier to try to see what the deficit is and how you’re going to fill it. I’d suggest there’s going to be a lot of PKE used.”

Hopefully Fonterra and Federated Farmers would be able to work with PKE suppliers to ensure availability and prevent prices becoming unreasonable. “If it spikes to $350/t it’s not an option.”

O’Sullivan also says he’s not aware of any complete dry-offs yet but a few dryland farms have set mid March as the deadline.

“The season is not over yet and there’s still time to get a good rain to turn it around. You can probably wait three to five weeks [from last week] depending on where you are and if it happens it will majorly alleviate the situation. If it doesn’t the extent of the overall disaster will be two-fold.”

O’Sullivan says Primary Industries Minister Nathan Guy’s Feb 12 declaration that the drought is a mediumscale adverse event is a welcome acknowledgement but “practically doesn’t make a lot of difference.”

However, it could help smooth renegotiation of credit facilities, he adds. “It will help the banks’ people in Wellington recognise this is a major event and an unusual oneoff.”

Fellow Fairlie basin dairyman Kieran Guiney echoes O’Sullivan’s comments. “For us it’s a token gesture. It’s great that they’ve recognised rural folk are suffering, not just farmers but lifestylers and gardeners and other people too, but financially it means nothing.”

Guiney says their two dryland farms have been on oncea-day since early this month and will dry off completely on March 10 if there’s no substantial rain. Their two irrigated properties, which had water cut off on January 15, would follow two to three weeks later.

Cows on the dryland are already down to 2kgDM/head/ day of grass, with 5kg of PKE and 4kg of silage. “We’re just keeping them ticking over until we can increase the grass again and reduce the supplement.

“If we get a good 20mm in a couple of days it would be just wonderful.

“Winter feed crops are probably 30-40% behind, the kale especially, but the fodder beet’s been really great.”

Ryan O’Sullivan says there will be a lot of PKE used.

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DAIRY NEWS FEBRUARY 24, 2015

8 // NEWS

GET THIS DOWN YA, MATE THE CONFERENCE focused on environmental and business matters. One speaker was Fish and Game’s Bryce Johnson who received a surprise gift from Andrew Hoggard – a couple of bottles of his home brew with his own label and made from water that services Hoggard’s dairy farm near Feilding.

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Trash out environment before talking irrigation PETER BURKE peterb@ruralnews.co.nz

THE CHAIRMAN of Federated Farmers Dairy section says any business case for irrigation projects should be preceded by a discussion on environmental issues.

Andrew Hoggard told farmers at the section’s annual meeting that affected communities in particular catchments need to decide what attributes they want for their waterways under the national objectives framework. These would then set out what nitrogen leaching limits would apply to farmland, and any limitations that may apply to farming practices arising from the need to control sediment and phosphorous levels in waterways.

“Once that is worked through then you’re able to have the discussion on more irrigation simply as a business proposition,” Hoggard said. “In some irrigation proposals around the country we’re having a business case and an environmental case [presented] at the same time. I’m all for multi-tasking where it’s efficient, but in this case I don’t think it is.”

Hoggard says questions have been raised about why the Government is funding irrigation projects, and the answer lies in whether people see irrigation infrastructure in the same light as roads, power generation and distribution, telecommunications, urban water supplies and sewerage systems.

Irrigation projects have benefits well beyond the area they serve and provide economic benefits to the whole country, he says.

“Look at many of the examples already out there – where the economic benefits to districts with irrigation has resulted in more productivity for farmers, which has then translated to more business in those rural towns. This then flows through to more businesses in the cities.

“We’re a small country and all very much interconnected. Poor traffic flow in Auckland results in delays getting my products to the ports for export, creates costs for Fonterra’s head office, etc. By improving transportation in Auckland, there is a benefit to me on the farm, and the reverse is just as true.”

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DAIRY NEWS FEBRUARY 24, 2015

NEWS // 9

Have you heard of Safer Farms yet?

ANDREW SWALLOW

Katy Sanson demonstrates the Worksafe Toolkit.

IF YOU haven’t heard of

the Safer Farms campaign yet, you probably soon will, and not just in this article.

The campaign is a new six-year Worksafe New Zealand project funded by ACC that aims to cut the farm death and serious injury toll 25% by 2020.

“This is a significant step forward, we hope, in preventing people from harm and death on farms throughout the country,” Worksafe board member Paula Rose told a group of industry representatives in Timaru last week, one of a series of 16 campaign launches nationwide.

“It’s not an enforcement programme; not regulation; not telling you what to do or getting people before the courts.

That hasn’t worked in the past and it’s not going to work in the future,” she added.

Worksafe’s engagement advisor, Katy Sanson, expanded on that.

“Safer Farms [promotes] clear practical solutions that are going to be long lasting.”

An advertising campaign is underway and a dedicated website, saferfarms.org.nz, went live earlier this month.

Its front page spells out why farm safety is important with stats such as “220,000 work days are

FEDS PRESIDENT, DAIRYNZ PRESENT FEDERATED FARMERS president William Rolleston and a DairyNZ representative were at the Timaru launch.

“I totally agree the accident and injury rate has to come down,” Rolleston told Dairy News. “We need to think about health and safety first and foremost on farms, so we support this campaign.”

Worksafe’s 25% target reduction in serious injuries and deaths by 2020 is achievable, he believes.

DairyNZ regional leader Virginia

lost annually due to farm related injuries”, and has links to ‘Make a Plan’ and ‘Read the Guides’.

To date there are 13 guides on the website, including ones for farm dairies, cattle handling, tractors, two-wheelers and quads. Sanson says

Serra said Worksafe’s challenge will be to convince farmers there’s been a change of emphasis from enforcement to more education and engagement, she added. “It may take a bit of time for people to realise they’re here to help.”

Worksafe’s Katy Sanson (see main story) told Dairy News that where farmers invited Worksafe out to help put together a plan, it couldn’t “turn a blind eye” to serious safety issues observed but infringement notices and fines are “right at the end of the process”.

there will eventually be 47. Those with slow or no internet access can request hard copies of relevant guides and other information by calling 0800 030040.

The ‘Make a Plan’ area promises it “usually takes 10 minutes” and that any

information provided will be kept secure.

At the launch Sanson showed a hard-copy Safer Farms Toolkit pack. “The first thing in it is the self assessment table which will tell you where you are on the spectrum [of farm safety]. If you’ve

‘not started’, you need only read along the table to find out what ‘good’ looks like.”

Between the ‘not started’ column on the table’s left and ‘good practice’ to the far right, are ‘underway’ and ‘getting there’ columns.

Following the self assessment table in the hard copy Toolkit provided at the launch were 17 information or work sheets such as ‘Legal Duties’, ‘Hazard Register’, ‘Accident/Near Miss Report’, as well as guides to safe use of quads, tractors, and two-wheel bikes.

Sanson stressed the need to document safety activities, from formal hazard identification and risk assessment through to records such as “when you had a talk about health and safety over smoko”. “Good farming practice includes having good farm safety systems.”

Many organisations were involved in compiling and proofing the toolkit material. “We’ve done a lot of work with Dairy NZ and Rosie the [cartoon] cow is going to be talking about health and safety. Kids can go online and play health and safety games.”

Sanson stressed the toolkit is a live document and will evolve with new legislation and changes to what’s considered best

practice.

Questioned about private companies that prepare health and safety plans for farm clients, she said her “greatest fear” is that it ends up a dusty doc-

ument on a shelf.

“A farm safety plan is not something you do and put away. It’s a constant, ongoing thing looking at the risks and how you are going to do better.”

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DAIRY NEWS FEBRUARY 24, 2015

10 // NEWS

Better engage now in environmental talks PETER BURKE peterb@ruralnews.co.nz

DAIRY FARMERS

would be wise to get active in their communities’ consultation processes for setting environmental

limits, says a Waikato academic.

Associate professor Graeme Doole, working in environmental economics at Waikato University, says community groups’ inputs are crucial to the process of limit setting and farm-

ers need to be involved in such talks from the start.

“We have many community groups and iwi and we are using a [talks] process to develop the limits.

[Farmers should] engage and talk with industry groups such as Beef +

Lamb NZ and DairyNZ. Find the best way to be involved because if your voice is not heard, then when they come to setting limits your voice won’t be heard.

“The greater the investment [farmers] can have Cow house reduce nitrogen leaching by 15-20%.

in that process the better.”

Doole told the Fertiliser and Lime Research Centre workshop at Massey University of the need for dairy farmers to focus on profit and to do their sums properly when considering changing their farming systems so they can farm within limits.

His comments mirrored those of Matthew Newman, DairyNZ, on the benefits of cow houses as means of reducing nitrogen leaching. Doole says cow houses (costing $750$1000 per cow) usually show a reduction in nitrogen leaching of 15-20% if they are well managed.

But houses that cost

$4000-$5000 per cow often must be debt funded and force the farmer to intensify more, which effectively erodes any benefit this system has in decreasing nitrogen leaching.

Doole says a “nitrogen fixation” in New Zealand is tending to drive environmental imperatives. This arose out of the “dirty dairying” campaign

by Fish and Game which focused almost exclusively on the nitrogen problem.

“We are finding that to meet water quality limits we have to reduce our loadings of nitrogen. But also, and perhaps more importantly, in some areas

the problems of phosphorous sediment and E.coli is an indicator of microbial losses.

“So we have a multidimensional problem. It’s not just a nitrogen problem though in some cases nitrogen is important.

But at the same time we have three other problems which aren’t getting as much attention as they deserve.”

Doole says it would be good to see people stop hammering our farming systems and look at mitigation options such as riparian planting and the development of wetlands. @dairy_news facebook.com/dairynews

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DAIRY NEWS FEBRUARY 24, 2015

NEWS // 11

Fish and Game find the perfect dairy farm PETER BURKE peterb@ruralnews.co.nz

FEDERATED FARMERS dairy section held its

annual conference in the central plateau this year with an emphasis on the environment and the business of farming.

On the day before the actual conference began, many delegates went on a tour organised by the federation. This included a visit to Landcorp’s Rangtiakei station to see a new dairy development.

But interestingly they invited friends/ enemies Fish and Game to speak at their conference and also take the delegates to what they regard as a ‘model’ dairy farm. This was the farm of Mike and Lisa Parnwell’s farm near Reporoa and is in the Upper Waikato catchment. It was chance for delegates to hear at first hand the Fish and Game message.

John Meikle of Fish and Game waxed lyrical about the farm and the way it met the standards of an ideal dairy farm.

“Not all dairy farms have streams or waterfowl areas. In this particular case the back part of the farm borders a significant spawning stream for trout and also a significant habitat for both games birds and other indigenous species of bird,” he says.

“Mike (the farmer) has taken the step of taking quite a wide riparian area in this case 15m where the stock is excluded and grass has gown long and so no nutrients from the farm go into the stream.”

Meikle also praised the riparian area being right

dairy farming.

Parnwell has been on his farm for 10 seasons.

He initially share-milked on the property and now leases it from the previous owners estate. He runs

Fish and Game is something only time will tell.

ian planting which has enhanced the farm.

As for the delegates – they were impressed with the Parnwell’s farm, just whether it will enhance farmers’ relationship with

240 cows on 102ha effective and uses a cow house for feeding and for providing shade and shelter depending on the season.

He says it was natural to carry out the ripar-

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He also praised farmer Mike Parnwell for his low stocking rate which he says puts less nutrient stress on the property Meilke says Fish and Game are not anti-dairying but they want smart

Events look at survival tactics SEVENTY DAIRY farmers from 30 farms have agreed to share knowledge and host events as part of DairyNZ’s ‘Tactics for Tight Times’ campaign to help farmers survive the present tough season and build resilience.

Chief executive Tim Mackle says the declaration of drought on the east coast of the South Island highlights the need for extra support for farmers.

“The milk price hit a six-year low in December, and dry conditions are forcing many farmers to make tough decisions, especially as they look to next season.

“A dry summer and the low milk price [mean] judgement calls become more complex as farmers balance the profitability of keeping cows milking, keeping condition on them and using supplementary feed.”

DairyNZ is looking to research, data and lessons learned from similar seasons to help farmers decide about animal health and wellbeing, pasture cover, feed, production, stock health and financial management.

The first round of events on the host farms will be in late February and March, giving an economic outlook for dairy and advising on survival tactics tailored to farmers’ regions. dairynz.co.nz/tactics.

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DAIRY NEWS FEBRUARY 24, 2015

12 // NEWS

Price volatility – get used to it PRICE VOLATILITY in the dairy

industry may be the new normal, says Lincoln University farm management and agribusiness lecturer Bruce Greig.

He expects prices to fluctuate widely from year to year.

The milk price farmers in New Zealand receive is a result of the demand and supply conditions of milk in the international market, he says. As a commodity market it naturally fluctuates.

Dairy farmers may just have to get

used to it and change to cope.

A recent Federated Farmers’ survey found dairy price drops, which are down 46% from their peak last February, had led to increased pessimism among farmers.

Many were worried about cash-flow, and would have to cut spending and increase debt for the first time for several years.

Greig says farmers need to implement resilient systems which are sus-

tainably profitable at high and low milk prices. “The traditional all-grass New Zealand system might be better at low prices, but might also fail to capture the full benefit of high prices when they occur,” he says.

Farmers themselves play a key role.

“Farmer capability is more a determinant of profitability rather than the system itself.

“All systems can be profitable under different conditions, and it is a ques-

tion about how you manage the risks,” he says. ‘’Therefore your choice of farm system, and therefore cost of production, determines your farm sustainability.”

He says the low payout this year is unfortunately accompanied by drought conditions which lowers production and can increase costs.

As for farmers’ other concerns he said few can avoid debt.

“In fact it makes sense to borrow capital when the return from the investment in land is greater than the interest rate.

“But you must be able to service that debt from cashflow, which is where the risk emerges with low payouts.”

He is not as pessimistic as the farmers appear to be though.

“Farmers, however, are resilient themselves and will weather the storm until conditions improve,’’ he says.

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New managers at CRV CRV AMBREED has appointed two new senior manag-

ers – Mathew Macfie, sales and marketing manager; and Andrew Singers information management and information technology manager.

Macfie joined CRV Ambreed after ten years with Gallagher, most recently as international business development manager. At CRV Ambreed Macfie leads 50-60 part-time and full-time staff.

Singers joined CRV Ambreed from Ruralco Holdings Ltd, Sydney, where he was chief information officer. He also worked for RD1, most recently as group information technology manager, leading the development of business and farm IT strategies.

At CRV Ambreed he will oversee the IT framework and business systems.

Visionaries join award trust A FORMER Federated Farmers president and a

Young Farmer Competition winner have joined the New Zealand Farm Environment (NZFE) Trust.

NZFE chairman Simon Saunders says it’s a privilege to welcome Warwick Catto and Bruce Wills to the board.

Warwick Catto is science strategy manager for Ballance Agri-Nutrients – the main sponsor of the Ballance Farm Environment Awards (BFEA).

Catto won the Young Farmer of the Year competition in 1995 and chaired the competition’s organising committee from 1996 to 2000. He has been on the BFEA national winner judging panel since the programme began in 2011.

Saunders says Catto’s scientific knowledge and experience in science extension work make him a valuable addition to the NZFE board.

The other new trustee, Bruce Wills, is a former president of Federated Farmers.

The Hawke’s Bay sheep and beef farmer is a longtime champion of environmental sustainability and an enthusiastic supporter of the Ballance Farm Environment Awards.

DAIRY NEWS FEBRUARY 24, 2015

NEWS // 13

Lots of supply and demand pamelat@ruralnews.co.nz

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Fonterra chairman John Wilson says China has boosted its own production this year.

margin over their feed costs.

“So we don’t see them decreasing their milk production any time soon.

Ultimately the real world will hit them but for the next 6-12 months… production is expected to increase at 3-4%.”

Europe has had a good production season and visiting there in June and July Wilson had never seen it looking so good. Farmers were confident because quota was coming off and they were happy to pay the levy because of high prices and cheap cost of production. At that stage production was up 4.3%.

Russia since has put dairy bans in place and Europe has followed the global milk price down.

“I am told it is the biggest monthon-month drop ever experienced in the farmgate milk price in Europe as paid by key cooperatives Arla and Friesland Campina, so it’s starting to have a big impact. [Farmers] are not going to be producing milk over the next three months. They can’t afford to pay that levy for the extra milk they are producing.” However they do forecast about 2% growth in Europe.

Australia had a good production season last year but over the last six weeks the dry has started to impact milk production.

New Zealand’s updated forecast is 3.3% down on last year with a significant drop over autumn.

“A lot depends on what happens with rain, but even with that a lot of cows have already been dropped out of the system, and not a lot of supplement is being fed because economics don’t support it so ultimately a lot of our milk powder and butter will be sold.”

Wilson says Fonterra’s response to the global situation is to stay on strategy. “Regardless of what is happening we will stay on strategy. Commodity is not a dirty word. You have to be the best ingredients seller to the world. So it is critical that we use our curve really well.

“In our curve we’ve seen a wider and higher peak. That peak was 14 days four years ago, now it is 50-60 days. It has a big impact on our processing assets… so we will continue to invest to ensure we can process milk off our farms.

“Importantly, look at the last 10 years: if you break up the ingredients part of our business – the milk price plus the ingredients part of our valueadd returns to you – in the first five years it was $3.88, and the last five year $6.80.” This was achieved by making sure the co-op was efficient.

“The driver is to… invest alongside our milk curve with the most efficient assets.” Wilson explains this is why Fonterra is investing $800 million in its processing capacity and $220m in its food service plant.

Meanwhile the drop in oil prices will have a positive impact for consumers particularly in South East Asia and China.

“But the reality is a lot of our key dairy markets are big oil producers: Venezuela, Algeria and Iran are significant buyers of whole milk powder and fat.”

These countries run big gov-

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ALL EYES ON PUTIN ON THE demand side for dairy there is more geopolitical uncertainly than for some time, Wilson says.

He noted, talking recently to leaders in Europe, that “all eyes are on Mr Putin. There are concerns about what is happening in and around Russia. That is creating a real atmosphere of risk.”

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ON TOP of good production out of Europe and the US, China itself has also had a good production season this year, Fonterra chairman John Wilson says.

China is a big importer of whole milk powder but it became an even more significant importer when its own milk production took a big hit last year, Wilson says.

“It was predominantly through disease and also through the drive to consolidate their sector, so a lot of the smaller farms have been dropped out,” Wilson told the Northland Dairy Development Trust annual conference.

Official figures say China’s milk production was down about 6% last season but the key co-ops were down over 20%.

“They had a good production season in the latter half of 2014. The reason we have talked about inventories not going down in China is that they have produced a lot more milk so manufacturers have been using whole milk.”

They have also been working through the over-purchase of whole milk powder during the earlier six months of the year. “We see that starting to correct and potentially it could correct rapidly over the next couple of months from what we are seeing in production data in China. Our sentiment is that their production is starting to come off – starting to respond to lower prices.”

While production growth is expected to continue in China, consumption will also grow – at 4% per annum, and that is a pessimistic view, says Wilson. So it is still a critical market.

But, Wilson says, “unfortunately we have Uncle Sam”. “The US has a heavily supported dairy sector: the 2015 Farm Bill, approved last April, puts in place another big support mechanism for their farmers; it actually protects their margin. So no matter what happens they can buy very cheap insurance to protect their

2-WHEEL

ernment buying programmes so they will be watched closely.

Another issue is supply chains in the Middle East and North Africa which are bound up with risks imposed by ISIS and ebola.

“For a truck driver to jump on a truck in the Middle East at the moment is somewhat challenging.”

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DAIRY NEWS FEBRUARY 24, 2015

14 // NEWS

Fonterra Dutch plant comes to life FONTERRA HAS commissioned its first wholly owned and operated ingredients plant in Europe.

The plant, in Heerenveen, in the north of the Netherlands, produces whey and lactose specialty ingredients

Theo Spierings

that will be used in high-value paediatric, maternal, and sports nutrition products by Fonterra and its global customers; it’s built on a 25ha site that has been developed in partnership with Dutch cheese manufacturer A-ware Food Group.

Fonterra chief executive Theo Spierings says the plant forms part of the co-op’s fully integrated global supply chain from the farmgate direct to global consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe.

“The commissioning of our new plant in Heerenveen further strengthens our ability to deliver high quality, advanced dairy nutrition that meets the needs of our priority markets and global customers.

“Fonterra has substantial intellectual property in the manufacture of functional whey protein ingredients and had been

looking for some time for a source of high quality whey to enable us to commercialise these innovations.

“Our partnership with A-ware Food Group fits well with our strategic priorities aimed at increasing the volume and value of our ingredients and branded products,” says Spierings.

Fonterra regional director for ingredients in Europe, Middle East, Africa, Russia and CIS (EMEA) Hans Huistra says the plant’s location and capacity will enable Fonterra to better serve its European and global customer base, delivering a secure, reliable source of high quality ingredient products.

The new plant will produce 5,000 metric tonnes of whey protein and 25,000 metric tonnes of lactose annually.

It will operate around the clock: 24 hours a day, 365 days a year. About 50 new employees currently work for Fonterra at the site.

A-ware Food Group’s adjacent cheese plant was also recently commissioned on schedule

low rate of application

FONTERRA’S OFFER to acquire 20% of leading Chinese infant formula manufacturer, Beingmate is now open.

Launched through the Shenzhen Stock Exchange, the offer is open until March 13: the result will be announced on March 18.

Last August, Fonterra and Beingmate announced they intended to form a global partnership to help

meet China’s growing demand for infant formula. The partnership will create a fully integrated global supply chain from the farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe. It is intended to increase the volume and value of Fonterra’s ingredients and branded products exported to China.

Battle for the top cheeses

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THE BATTLE is on to find New Zealand’s best cheese, with a finale at The Langham Hotel, Auckland, on March 15.

The event, with expert judges, will have at least 400 entries, three new cheese companies, a new cheese type, new international judges and this year yoghurt and butter categories.

Now in its twelfth year, the New Zealand Champions of Cheese Awards offers the contestants the hope of 23 champion titles.

The new yoghurt and butter categories acknowledge the importance of these products alongside cheese in stores.

Would-be cheesemakers will be recognised with the first Primary ITO ‘Aspiring Cheesemaker’ Award.

“The stage is set for new players, new classes and new awards,” says the awards organiser, Tony Goode. “It’s exciting to be able to showcase our cheese industry to some of the world’s most influential cheese critics,” Chief judge will be Russell Smith, noted as an Australasian cheese judge and educator.

Thalassa (Lassa) Skinner, from the US, founder and co-owner of Culture magazine, will also judge.

“Culture is keeping a close eye on New Zealand’s cheese scene, know-

ing there’s a burgeoning industry here with strong specialty food appreciation. We’re eager to share this with food lovers globally.”

Smith will lead 31 expert assessors, including experienced New Zealand’s dairy connoisseurs.

The judges will pick champions in 23 categories then choose the two best overall cheeses to be named supreme winner of the Puhoi Valley Champion Artisan Award for small artisan producers, and the Countdown Champion of Champions Award for larger producers.

“A sign of how home cheesemaking is advancing is the progression of previous award winners to become fully fledged professionals, like Cartwheel Creamery,” Goode says.

“Cheesemakers in this category generally start with more simple fresh cheeses, but this year there are aged varieties with more complex flavours that require more skill.”

Meanwhile the New World Champion Favourite Cheese Award is selected by public votes via the New World website.

One March 16 the public can attend the MindFood CheeseFest at The Langham, 5.00-8:30pm. www.eventfinder.co.nz

DAIRY NEWS FEBRUARY 24, 2015

WORLD // 15

Australia clampdown on foreign buyers AUSTRALIAN FARMERS are welcoming a

sharper watch on foreign investment in farming.

The NFF has long called for more oversight by the Australian Foreign Investment Review Board and a transparent register of foreign ownership of farm land.

Now the Federal Government says it will lower the screening threshold from $252 million to $15 million from March 1. It will apply to the cumulative value of farm land owned by a foreign investor, including any purposed purchase.

And a foreign ownership register of farm land will strengthen reporting requirements and more clearly disclose foreign investment in farming.

National Farmers’ Federation (NFF) president Brent Finlay describes the register as “a welcome step in progressing policy agenda, delivering on a measure the NFF has long

called for”.

“Foreign investment in Australian agriculture is welcome; it is essential for our continued growth and future prosperity. We are open for business.

“However, proper scrutiny of investment proposals and a transparent register form the necessary architecture for successful and sustained investment, and ensure that investment is in Australia’s best interest.”

The lower screening threshold will require that any foreign deal on farm land of $15 million or more must have Foreign Investment Review Board approval.

“The Government must ensure the Australian Taxation Office is properly resourced to deliver the long-promised register.”

Work will begin in July to collect information, and the public must be told when this information will be accessible, Finlay says.

“There are still some key issues to iron out, such as foreign investment in infrastructure, agricultural supply chains and water.

These are key components of a successful model and

co-op Arla Foods is lifting the organic premium it pays farmers.

From March 1 the co-op will pay an extra 3c/kgMS to farmers in Sweden, Denmark, UK and Central Europe.

Arla says it must drive and develop the organic dairy market. Recently its board decided that its organic premium should remain, based on the balance of organic raw milk supply and the demand for organic dairy products.

“We aim to drive and develop the organic dairy market in Europe,” says vice chief executive Povl Krogsgaard. “It’s a good business for all our farmers when we sell more organic products, and with our growing sales of organic products in Europe and beyond we foresee a need for more organic milk….

So we’re increasing the organic premium.”

He notes the global retail and industry markets are under pressure, cutting the earnings of Arla farmers, conventional and organic.

“This underlines the increasing need to earn as much as possible on value-added products in consumer markets.”

The co-op plans to recruit more organic suppliers soon, though the higher organic premium is likely to increase production by current suppliers.

Minister Barnaby Joyce says from July 1 the Australian Tax Office (ATO) will collect information on all new foreign investment in farm land regardless of value.

Barnaby Joyce

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must be addressed. We want foreign investment that serves Australian interests and we commend the government for taking this step.”

Federal Agriculture

Join the fun at your Local Round, starting soon.

It’s the inaugural Fert & Feathers Darts Tourney and it’s open to all Farmlands shareholders.

You don’t need to be a darts whizz to register and have some fun with your family and mates – and who knows, you could be winging your way to the UK, home of world darts, on the trip of a lifetime!

Registration is easy. Pop into your local store, give them a call now or register online at www.farmlands.co.nz/fertandfeathers

Local Round dates: 23rd March – 12th April 2015

For a full list of terms and conditions visit www.farmlands.co.nz/fertandfeathers

FML0219 Press NZFW.indd 1

17/02/15 9:50 am

DAIRY NEWS FEBRUARY 24, 2015

16 // OPINION RUMINATING

EDITORIAL

Tapping into the great talent pool

MILKING IT...

Miracles do happen

A UK farmer is hailing a ‘miracle’ after a cow at his nursery with no bulls gave birth to a calf.

Harriet the cow has lived a celibate life since she moved to the nursery.

But the owner was surprised to see the Dexter cow suddenly go into labour and give birth.

Valentine’s Day 300kg deliveries

A VALENTINE’S Day special consignment flew into the Indian city of Kolkata – 36 thoroughbred young German Bulls.

They will inseminate cows that will give birth to higher-producing cows in the state.

The German Bulls were imported by the National Dairy Development Board for a state breeding programme. Each weighs about 300kg.

US battle over benefits of milk

Media in firing line, rightly so

MILK PROCESSORS in the US are hitting back at critics via a social media campaign.

The Milk Processors Education Programme organisers say they can no longer tolerate headlines such as ‘Milk can kill you’.

Milk brands, their employers and others in the industry will post messages and direct people to a website for more information on milk.

THE PRESIDENT of Feds Manawatu-Rangitikei, James Stewart, told his regional council that farmers get insufficient recognition for cleaning up the region’s waterways.

He charged that the media is not on the farmers’ side. His comments are timely food for thought for the mainstream media.

MUCH IS said about the need for succession planning and leadership in New Zealand’s primary industries. The baby boomer bosses are gradually slipping out of the top jobs and into semiretirement to take on directorships and ultimately exit the industry. So where is the talent pool from which to recruit the next echelon?

This week we can see one example of how this will play out, in the emergence of a young Landcorp executive, Mark Julian, who runs the company’s big holding of dairy farms. It’s a huge role: he is responsible for the production of some 20 million kilograms of milk solids per year. It’s pretty impressive.

Just managing the staff for 59 dairy farms is a massive task in itself, but there’s more. Landcorp farms, in common with many Maori farms, are in marginal farming areas. These are places where many commercial farmers would never go, yet Landcorp is there developing land.

Landcorp’s very existence is often criticised. “Why does the government farm?” the uninformed critics wail. Fact is they’re farming tough country, and thanks to this business NZ Inc is getting a good return off marginal land, because it has smart young people such as Mark Julian at the wheel.

People who think strategically and practically, and bring into their businesses other talented young people, are doing New Zealand proud.

Another example is Richard Wyeth, the young chief executive of the Maori-owned dairy company Miraka in the central North Island. This start-up company is already achieving goals ahead of time by its strategy.

People like Julian and Wyeth show that we have emerging talent in the leadership ranks of the primary sector. There are many others in science, agribusiness and technology.

The main thing is that New Zealand keeps encouraging young people to choose careers in the primary sector where the opportunities are limitless.

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.

POST TO: LETTER TO THE EDITOR PO BOX 331100, TAKAPUNA, AUCKLAND 0740 OR EMAIL: dairynews@ruralnews.co.nz

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DAIRY NEWS FEBRUARY 24, 2015

OPINION // 17

Where is the consistency?

STEPHEN CRAWFORD

AS A farmer I have been increasingly concerned by the lack of consistency between council treatment of urban and rural users when it comes to the actions taken under the Resource Management Act (RMA).

We have all seen farmers prosecuted in the Environment Court for breaches under the RMA, for matters such as effluent discharges that “may enter water”.

These are the critical few words found in the RMA that most prosecutions are based on – “…and may enter water”. That means the contaminant didn’t necessarily enter water or cause pollution; it just

is one example. It has been issued consent by the ORC to intermittently discharge 9150m3/day of untreated wastewater mixed with stormwater to the Tokomairiro River.

This discharge permit expires on December 31, 2017. But don’t worry, part of the consent approval includes a diagram for a sign to be erected saying ‘Danger.

Keep Out. No Swimming’.

Other New Zealand towns also have consent to discharge untreated or partially treated waste to land “in a manner that may enter water”. Interesting that

People living in urban New Zealand have been ‘sold’ a story comprising limited science and based on a successful, catchy slogan – ‘dirty dairying’. That has given rise to the misconception that most pollution is from farms. “may” have been able to enter water – and that’s a big difference.

Of course it’s not always that simple. In some cases, contaminants from farms do in fact enter water. That cannot be condoned and depending on the circumstances, the Environment Court may be the appropriate course of action.

Last spring, the Otago Regional Council (ORC) boss Peter Bodeker said in the news media that recent dairy inspections in Otago were not good enough and that an unacceptable number of breaches had been found.

TVOne’s 7 Sharp recently depicted some popular swimming beaches as unsafe for swimming because of overflow sewage systems some city councils’ use – there is no “may” about that.

So let’s compare these on-farm breaches of the RMA to those in the urban sector.

Last November, media reported that in Cromwell 3500L of untreated waste had entered Lake Dunstan. In response, the ORC determined that no action was required.

Over recent months and years, Queenstown Lakes District Council has had numerous untreated spills into the lake, with not a single prosecution.

Apart from a major tourist destination’s image being tarnished by the sight of untreated sewage flowing on streets and into the lake, that waste is entering water and is bad for the environment.

If Queenstown was a farm, there would be a huge public outcry for it to be shut down until major improvements could bring it up to appropriate standards.

Other towns around the country have consent to pollute on a daily basis. Milton

RIVER NUTRIENT THREATS LESS THAN FEARED? NEW REPORTS on algal growth in the Waikato and Waipa Rivers show a reduction in P and a sign that the threat of increased nitrogen alone causing algal growth may be less than previously feared.

These come as the ‘Healthy Rivers: Plan for Change’ project gives impetus to a regional plan change to better protect water quality in the rivers.

The reports focus on nitrogen (N) and phosphorus (P) that can stimulate algal growth.

N and P enters the rivers from factories, wastewater treatment plants and farms.

The first report dealt with a council study of nutrients in the Waikato and Waipa rivers, the second was a council-commissioned NIWA study of the Waikato River.

Some 61% of N and 45% of P in the rivers was likely to come from farms, said the report, based on data on nutrients in the two rivers from 2003-12.

Overall, P was found about 12% lower than in earlier years.

Downstream from Hamilton, this P improvement was prob-

ably due to reductions in discharges from the city’s wastewater plant, says council water scientist Bill Vant. Reductions at sites up-river may be due to better dairy effluent management and erosion prevention measures.

The second report, by NIWA for the council, suggests that the threat of increased nitrogen alone causing algal growth in the rivers may be less than previously feared under current conditions, Vant says.

Council monitoring had shown an increase in average concentrations of N in the Waikato River in recent years, raising fears of more algal growth.

However, P – which also supports algal growth - had decreased at several locations, suggesting this had helped reduce algae concentrations.

Overall, says Vant, despite recent algal blooms, during the study period algae was down recently at five of 10 Waikato River monitoring sites and had not increased at any.

The report on NIWA’s study

says recent testing of water samples showed algal growth often responded to experimental addition of N and P, and occasionally to just P. “But there was little or no response to the addition of N alone,” the report says.

This may indicate that waterways now don’t need more N to produce algae and that recent reductions in P in the river had contributed to reducing algae.

The report said zooplankton in the river could “graze” on algae, so helping reduce further the impacts of N and P on algal growth. But Vant stressed this North American zooplankton couldn’t be counted on to stay in our waterways.

“This new information will be assessed by… experts assisting the Healthy Rivers process,” says the council’s science and strategy director Tracey May. “The data [will help us decide] how to best go about establishing the need for limits on… farming, to help protect and restore the health of the Waikato River.”

Stephen Crawford

those towns have these discharge consents approved by councils, when this is the same standard for which farmers are being prosecuted.

For many coastal towns the solution is simple, just put waste out to sea in a longer and ever extending pipeline. Well at least it doesn’t get to freshwater that way, although as we’ve seen recently, the impact on many of our beaches is not something to be proud of.

There is one rule for council discharges, and a completely different rule for farmers and I’m convinced the environment doesn’t notice the difference.

People living in urban New Zealand have been ‘sold’ a story comprising limited science and based on a successful, catchy slogan – ‘dirty dairying’. That has given rise to the misconception that most pollution is from farms.

Regional councils nationwide continue to turn a blind eye to blatant urban pollution, both within discharge consent parameters and through unconsented spills into our lakes and rivers.

Farmers don’t expect any special treatment. We have a huge responsibility in looking after our environment. But nor do we expect to be targeted and singled out by regional councils.

All we ask is that in the interests of our environment we have a more level playing field. Currently what we have is anything but.

• Stephen Crawford is Federated Farmers Otago Dairy chairman.

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DAIRY NEWS FEBRUARY 24, 2015

18 // AGRIBUSINESS

7.4% growth is China’s new norm SUDESH KISSUN sudeshk@ruralnews.co.nz

THE NEW Zealand China Coun-

cil is backing the findings of a report that affirms our future lies with China despite an economic slowdown there.

The report this month by PricewaterhouseCoopers (PwC) forecasts China among the fastest-growing economies to 2050 and says New Zealand’s trade deal offers more promise.

Council chief executive Patrick English says China’s slowdown is inevitable: in 2004 when China had a US$1.7 trillion economy, 12% growth was necessary, but now its $10 trillion economy requires its present 7.4%.

“They’re calling it the ‘new normal’,” English told Dairy News.

The Chinese economy still has problems – excesses in infrastructure and production, government tackling corruption, environment problems and social disparities.

“These are things they’re focussing on rather than just economic growth,” says English.

Asked if sending most of our dairy

exports to China was risky, he says there and return.”

PwC economics director Chris is always an element of risk when you have most of your trade in one market. Money says New Zealand’s future truly But this is not as New Zealand experi- lies with China and its forecasts reinenced its trade with Britain up to the force the importance of New Zealand’s focus on Pacific Rim trade deals.

1970s.

“Currently, China is equal with the “China represents over 20% of our total merchandise trade (and is the sec- US in purchasing power (US$17 billion ond-largest source of tourists and the each) but by 2050, China’s GDP in purlargest source of students) but the bal- chasing power parity (PPP) terms will treble to US$60 ance is spread between Australia, US, billion, 25% rest of Asia, Europe – a reasonably balhigher anced spread but most of the growth than the in recent years has come out of China US, and and Asia. more “Of more concern is the type of than growth, predominantly in four catethree gories (dairy, forestry and meat) and times most of the growth has come from an the increase in volume as opposed to value; this is where we need greater change.

“But if you are a company selling a product or a service and you see a reduction in demand from traditional markets such as Europe and the US, and growing demand from China, then you’re going to sell where you get the best value Patrick English

combined GDP (in PPP terms) of the EU. “Trade between the fastest growing countries presents opportunities for New Zealand as a [trans-shipment] point for goods and services by air and sea… between South America and China, Indonesia and India.”

India has the potential to sustain its higher growth rate for longer and become a US$10 trillion economy by about 2020 in purchasing power terms, or about 2035 at market exchange rates.

But this relies on India sustaining progress on infrastructure investment, institutional reforms and boosting education levels among all its people.

“The importance of New Zealand’s free trade discussions with India are underlined by this forecast about it being the fastest growing of our largest trading partners and set to become the second-largest economy in the world by 2050,” says Money.

The report predicts the potential GDP growth, to 2050, of 32 large economies representing 84% of total global GDP. It says world economic growth should average 3% per annum from 2014-50, doubling in size by 2037 and

$18,607

tripling by 2050.

But a global slowdown is likely after 2020, as the rate of expansion in China and other big economies moderates and as working age population growth slows in many big economies.

REPORT PROJECTIONS ■■

China will be the largest economy by 2030, but its growth rate is likely to revert to the global average in the long run

■■

India could challenge US for second place by 2050

■■

Indonesia, Mexico and Nigeria could push UK and France out of top 10

■■

Philippines, Vietnam and Malaysia are set to be notable risers

■■

Colombia and Poland will grow more strongly to 2050 than Brazil and Russia.

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DAIRY NEWS FEBRUARY 24, 2015

20 // AGRIBUSINESS

Breeding values set to change LIVEWEIGHT BREEDING values for dairy cattle are to improve as a result of data analyses by NZ Animal Evaluation Ltd (NZAEL), a subsidiary of DairyNZ. Changes to these breeding values and the flow-on effects for the overall measure of cow and sire genetic merit Breeding Worth (BW) were implemented February 16, focused on the conversion of liveweight information into a mature weight equivalent.

“Historically this conversion has been done within the liveweight

animal evaluation model, but over time the information has become heavily weighted towards data for two-yearolds which skews the calculation,” says NZAEL manager Jeremy Bryant.

The new method converts all weights to a mature equivalent before the data enters the liveweight animal evaluation model.

“The aim of the NZAEL research was to improve the accuracy of genetic prediction for liveweight, which then leads to a more accurate BW for dairy farm-

ers,” says Bryant.

The year-long research has been reviewed by the standing advisory committee of NZAEL which includes leading geneticists from New Zealand, and approved by the NZAEL Board.

The effect will be seen in all animals, the firm says, especially when comparing breeds. The liveweight breeding values for Jersey and crossbred animals generally decrease, and those for Holstein Friesians increase.

The routine updates of economic

values in BW also came into effect on February 16.

“NZAEL updates economic values every year, in order to keep aligned with market signals,” says Bryant.

This year, moderate changes are seen in the value assigned to fat and protein yield. These come from a combination of a falling milk price, as well as slight changes to the calculation of milk volume penalties and flow-on effects for fat and protein yield.

The combined effect of the live-

weight changes and economic value update mean that, on average, the BW of herds will reduce.

“Farmers with predominantly Jersey dairy cattle will see a slight increase in herd BW and farmers with predominantly Holstein Friesian dairy cattle should notice a decrease in herd BW. Crossbred herds will be intermediate between the two breeds,” says Bryant. dairynz.co.nz/evchanges @dairy_news facebook.com/dairynews

Land use experience for students THREE MASSEY University science and agriculture students have worked the summer at Horizons Regional Council and on farms as a result of winning council sustainable land use initiative (SLUI) scholarships.

The scholarships are available to students of soil fertility, soil mapping and farm management. In nine years the council has granted $150,000 to

Three scholarship students worked for Horizons on farms and soils over summer.

students.

Council spokesman Malcolm Todd says the scholarship encourages students in particular skills and provides real life experience.

“SLUI aims to control hill country erosion, in a partnership between Horizons, central government and farmers. When SLUI was introduced in 2006, we identified we had a skill short-

age… and have set the application criteria for scholarships accordingly.

“Students need a soil science background and need to understand the practical side of running a farm and be able to relate to farmers. Those who meet these criteria can receive a scholarship and a lucky few also get opportunity to work for Horizons full-time over summer.”

This summer three students, Josie Winters, Courtney Mitchell and Natalie Hiyslop, have spent three months creating soil health plans, auditing SLUI farms and updating data in Horizons geographic information system.

Applications for SLUI scholarships open every February.

This year’s round closes on April 13. www.horizons.govt.nz

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DAIRY NEWS FEBRUARY 24, 2015

AGRIBUSINESS // 21

Good recruitment lifts whole operation KERRY RYAN

RECENTLY I’VE been

involved in projects supporting staff selection, some prompted by client frustration at modest response to promotion of roles.

The process is a challenge for those in the staff market so here are some reminders about what’s needed to attract the best and reliably evaluate their capabilities, attitudes and personalities.

Regardless of the role, jobs need to be advertised effectively and applications processed in a timeand cost-efficient way. The interview process must be a robust investigation so the appointee matches the demands of the role and the dynamics of the

existing team.

The starting point is to define the role and the attributes required. This ensures selections are made against predetermined criteria and reduces the risk of standards being compromised when there is a shortage of candidates.

The next step is to convert this to an advertisement that communicates opportunity and motivates readers to action. This should highlight key selling points such as career pathways, a positive team environment or benefits like location, work life balance and reward packages.

Writing advertisements is still an area where many struggle. A quick review of roles being advertised online at present confirms most ads are relatively introverted. Many focus

heavily on the employer’s wish list and fail to promote the benefits offered.

To be effective, advertisements must be written with the reader in mind.

I’ve helped to write ads for roles across the dairy world. Regardless of an operation’s location or requirements it’s always possible to find a selling point: it’s simply a matter of assessing what top people will be looking for.

The trend to online advertising has been a real positive: it’s timeand cost-effective and can attract applications within hours of placement.

Screening and shortlisting candidates is the next vital ingredient.

Quality time needs to be allowed to get an insight into each applicant. Ideally this should be done with

The starting point is to define the role.

access to the applicant’s CV. Inviting electronic expressions of interest achieves this and has the added benefit of confirming people’s computer and communication skills.

Screening should also include a brief discussion of reward expectations.

Getting comment on this from all applicants provides a valuable read of market expectations for subsequent salary setting.

Interviews need to be as much about ‘experiencing’ as ‘interrogating’ applicants. They should be interactive so candidates demonstrate their capabilities, attitudes and aspirations rather than just tell you about them. Personality profiles are also valuable to confirm likely work styles and behaviour patterns to ensure any

appointment will complement the current team.

Reference checking before and after an interview helps get the shortlist right and saves waste of time for all. I recommend validating the credibility of referees before listening to their views.

Questions need to be planned, searching and effective. They should always include an opportunity for the referee to volunteer comment on an applicant’s professional or personal attributes that may not have already been identified as strengths or

weaknesses during the interview process.

My online resource centre has examples of formats, advertising and interview checklists, and audio presentations on how to telephone screen, interview and reference check.

Finally, it’s important not to compromise standards; better to delay making an appointment and re-advertise when candidates don’t meet expectations. If necessary make a temporary appointment to cover the short term and create

time to review and repackage the position to get the right applicant. Sometimes it’s just a matter of patience.

Experience has taught me that success in managing people is 80% driven by successful selection.

It can be time consuming and frustrating. However it is well worth the effort to future-proof the business and develop opportunity for everyone to move up a level -- including the employers.

• Kerry Ryan, Tauranga, is an agribusiness consultant. www.kerryryan.co.nz

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DAIRY NEWS FEBRUARY 24, 2015

22 // AGRIBUSINESS

Sow pastures early in dry autumn NEW RESEARCH confirms it’s better to sow treated pasture seed early in dry autumns instead of waiting for rain before planting, says seed supplier Agriseeds.

Benefits include faster pasture establishment, higher DM yield and potentially better pasture persistence, and it’s easier to get a contractor. It all helps get a head start on feed recovery after drought, says the company’s agronomist Will Henson.

“Last year many farmers did not sow while it was dry. When the rain came in April, it kept raining on and off for three weeks; contractors were working 24 hours a day but couldn’t keep up.”

Questions arise about early sowing, the company says, e.g. how well do seed and endophyte survive in hot, dry soil? And is there possibility of poor establishment?

In a replicated trial near Cambridge last autumn, Trojan peren-

nial ryegrass with NEA2 endophyte was sown on three dates: February 20, March 20 and April 27. All seed was treated to protect it from insects and disease.

The first sowing was in dry conditions, and seed sat in the soil with no sign of germination until 45mm of rainfall on April 4, 43 days later.

“We deliberately chose dark peat soil for this trial, because it is known to reach high temperatures in late summer and early autumn,”

Benefits of sowing early include faster establishment and higher yield.

Henson says.

At the seed sowing depth, the soil temperature at 10am on February 20 was 49.1°C. On March 20 it was 41.7°C and on April 27 it was 27.0°C. Seed sowed early established quicker and grew more, Agriseeds says. The February and March sowings grew 2t DM/ha more than the April sowing (5.8t versus 3.8t), measured over five grazings from May to October.

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Southern hub urges farmers to listen FARMERS ARE being invited to Southern Dairy Hub information meetings to hear about the proposal and its possible benefits.

Southern Dairy Development Trust (SDDT) chair Matthew Richards says it has until April 30 to raise the funds needed to go ahead.

The Southern Dairy Hub, the first of its kind in New Zealand, would bring together skills, knowledge and expertise in science, research and demonstration, specific to the conditions of the southern South Island.

“We’re looking for a central Southland location for the hub, which we envisage will be home to 800 cows, split into four herds,” says Richards.

“Our number-one priority is to inform farmers about the new hub concept, how it differs from the current demonstration farm model, and to gain their support so it can proceed.”

The trust is also asking farmers and businesses to donate cash.

“The benefits of having a place where comparative research results can provide farmers with information for decision making is worth more than the donation we are asking. The proposal will not proceed without sufficient southern dairy farmer support.

“Research late last year reinforced that farmers support the hub concept and it confirmed the types of research farmers want, such as how dairy farmers manage within tighter environmental constraints.”

The hub would cost $26.5 million to develop, and if SDDT can raise funds using the existing demonstration farm, saved cash surpluses and farmer and business contributions, then industry partners DairyNZ and AgResearch would take part.

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DAIRY NEWS FEBRUARY 24, 2015

MANAGEMENT // 23

Careful strategy keeps cows in milk MANY FARMERS are

now facing hefty onfarm challenges. While the low milksolids payout is influencing cashflow and profitability, dry conditions are starting to limit pasture growth and milk flows in many key dairy regions.

There is no ideal ‘recipe’ for this autumn, but consider the following key management principles.

Feed out grass silage and summer crops first

summer crops now not only keeps cows in milk but also protects pasture cover; this is increasingly important to ensure the persistence of modern pasture species. If you are feeding silage, always ensure you have at least 100kgDM/cow on hand to feed when it does rain.

Reduce demand onfarm by selling genuine culls Most farms have about 10% genuine culls which will leave the farm before winter. These need to

After a reasonable spring, most farmers still have good quantities of supplementary feed on hand. Feeding silage and

go now. For a 400-cow farm, culling 40 cows will release about 600kgDM – an extra 1.7kgDM – for every cow remaining.

This feed can be used to increase intakes and, hopefully, milk production.

With the meat schedule remaining high, culls are returning good prices at the works.

Protect pasture covers by feeding silages vs concentrates Many pasture scientists

acknowledge that summer over-grazing can reduce the productive life of pasture to the same degree as winter pugging. Ensuring pasture isn’t over-grazed protects the plant itself and keeps the plant in a better state to respond quickly to moisture once the rains come.

Cows eating silages (e.g. grass and maize silage) or summer forage crops (e.g. brassicas or forage sorghum) tend to leave behind more pas-

ture than those eating concentrates (e.g. PKE, meal, and grain). Feeding grass silage and maize silage on a feed pad, standoff pad or sacrifice area enables farmers to drastically reduce the pressure on pastures, protecting cover levels and reducing pasture damage.

Keep cows in milk Even in a low payout year, drying off milking cows too early doesn’t make sense (Table 1).

Table 1 shows that even

Table 1. Economics of milking on rather than drying off cows

Current production level

Total energy required above maintenance

Supplement needed (above maintenance)

Cost of supplement

Other costs (feedout, shed, etc) costs

Net benefit at various payouts

Total return

(kgMS/cow/day)

(MIME/cow/day)

(kgDM/cow/day)

($/cow/day)

($/cow/day)

($/cow/day)

($/herd/day)

0.7

56

5.2

1.81

0.31

1.02

409.63

0.8

64

5.9

2.07

0.36

1.17

468.15

0.9

72

6.7

2.33

0.40

1.32

526.67

1.0

80

7.4

2.59

0.44

1.46

585.19

1.1

88

8.1

2.85

0.49

1.61

643.70

1.2

96

8.9

3.11

0.53

1.76

702.22

1.3

104

9.6

3.37

0.58

1.90

760.74

Assumptions: 1. Cows will be fed maintenance even if they are dried off. 2. Farm labour costs are fixed. 3. Post grazing pasture residuals have dropped to below 1500 kgDM/ha. 4. No extra capital will be required to run the system. 5. Protein is not limiting. 6. Other costs (feed-out, shed, etc) are $0.06 c/kgDM.

at a $4.50/kgMS payout, with cows producing as little as 0.7kgMS/cow/day, feeding maize silage (35c/ kgDM eaten, 10.8 MJME/ kgDM) generates a return of about $1.00/cow/day.

For a 400-cow herd it is worth about $400/day to keep cows in milk.

Watch body condition score (BCS) Achieving BCS targets of 5.5 for your first and second calvers and 5.0 for the rest of the cows in the herd is highly profitable even at a $4.50/kgMS payout.

There is no better farm system feed than maize silage to enable you to do this because it will keep cows in milk while protecting body condition and pasture cover levels.

Careful and strategic management will ensure you make the most of a challenging autumn.

Tel. 0800 746 633

• Ian Williams is a Pioneer forage specialist. iwilliams@genetic.co.nz

DAIRY NEWS FEBRUARY 24, 2015

24 // MANAGEMENT

Big rewards in h Less than a quarter of dairy heifers in New Zealand join the production at target weight. Beef+Lamb and Dairy NZ held a focus day in Northland to look at solutions. Pam Tipa reports.

IT IS costing dairy farm-

Grazier John Taylor and consultant Gareth Baynham with R2 heifers – all over target weight.

ers an “awful lot of money” to have poorly grown heifers, says AgFirst consultant Gareth Baynham.

‘Manage the tail’ is the key message he gave to farmers at the conclusion of a joint DairyNZ and Beef + Lamb NZ field day at a heifer grazing

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focus farm in Te Arai, near Wellsford, Northland.

“Dairy farmers are getting big losses from the light animals,” he says.

And there are plenty of them. An LIC analysis of heifer weights in the national database showed only 23% of animals were within 5% of their liveweight targets, based on genetics.

Baynham showed modelling of a typical Northland farm with 280 average

“It’s not about which industry you are part of, it is just about treating people fairly. “ cows and 70 replacement heifers: having 5% of heifers below liveweight targets at 22 months would cost the farm $6050 per annum; if 25% of heifers were below liveweight it could cost the farm up to $42,763.

The focus farm of graziers John and Geraldine Taylor is one of several in a national initiative to improve the way dairy heifers are grown in New Zealand.

DairyNZ’s Sarah Dirks says good gains have been made through the 6-week in-calf programme but not as much as the industry was hoping to see, so DairyNZ decided to focus on productivity, looking at heat detection, cow condition and heifers. As there are two sides to the story

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in a grazing relationship, it was a good move that BLNZ came on board with the heifer project as well.

Dirks says it is clear tensions can arise in the relationship between stock owners and graziers.

There were perceptions on both sides that things were not particularly fair: graziers don’t feel they get paid well and they are given poor stock; the farmers say they pass the graziers good stock but they get them back in what is perceived to be poor condition.

A number of graziers gave stories about stock

Sarah Dirks

not turning up or stock turning up underfed or small or skinny. A Northland farmer told Dirks he was given underfed stock which he turned them around, looking great but the dairy farmer phoned to say he had found cheaper grazing somewhere else.

“That’s not fair: it’s not about which industry you are part of, it is just about treating people fairly. If we can improve communication and define expectations up front that’s a huge success for us.”

The industry target of 30% of average adult liveweight (500 kg) at 6 months (150kg) requires being on track to achieve puberty by mating, Dirks says. The 60% (330kg) at 15 months requires having two or three cycles

DAIRY NEWS FEBRUARY 24, 2015

MANAGEMENT // 25

n hitting heifer targets before mating so you can improve conception rate leading into mating. The 90% (450kg) target at 22 months requires milk production, reproduction and lifetime productivity. Mature live weight is reached at 6-8 year of age.

Most of the growing is in the first two years.

“Dairy farmers and graziers aren’t having conversations about what the target weights are which will depend on breed,”

Dirks says.

BLNZ, LIC and DairyNZ are leading a steering group on the heifer grazing. The group is talking with Federated Farmers which has reviewed their contracts and will draft new, more specific contracts this year. Checklists and questionnaires are in progress to make sure the right questions are asked when a grazier relationship starts, more field days on

focus farms are being held, and technical experts are coming together to create an industry-agreed body of knowledge on heifers.

For instance, little information is available on feeding levels for heifers, Dirks says. A contractor will put together fair pricing guidelines and the website is being updated to make information more accessible and reliable.

Jair MandriazaMunoz, of LIC, says anal-

ysis showed at 6 months 50% of animals were 5% below target weight. At 15 months – the all-important date for getting pregnant – 60% of heifers were 5% below target. At 22 months, 73% were 5% below target.

Three out of four heifers in New Zealand enter the herd 5% below target liveweight at calving.

That affects their performance, production, “everything”.

Heifers at the Te Arai focus farm in Northland.

Happy to pay for good grazing DARGAVILLE DAIRY farmer Bob Franklin is happy to fork out money for top heifer grazing if he gets a product worth $20,000 more over its lifetime.

He has been dairy farming for four years after switching from sheep and beef and is still building his dairy herd, he told the field day at the Northland heifer grazing focus farm of John and Geraldine Taylor.

Last year Franklin sent undersized heifers to the Taylor’s farm which did an excellent job of them, he says.

R2 heifers observed at the February 12 field day were the second lot sent to the Taylor farm. The mob averages 430kg -- about 80kg above target -- and all were pregnant except two needing retesting.

Franklin says he put these heifers somewhere else initially but then switched them to the Taylors who are now getting the same great results for him as last year.

Grazier John Taylor bought the 139ha farm in 1967 and ran a breeding ewe operation for 15 years. They then diversified into cattle and started with 50 head of dairy grazers.

They now run 190 head with 30 plus weaners and 157 R2 heifers; sheep numbers are 700 ewes.

They do some private grazing but now mostly work through the New Zealand Grazing Company.

Calves are oral drenched and the heifers are getting Cydectin every eight weeks based on dung samples.

Winter is a critical period, particularly in Northland.

The heifers are run in their ownership mobs with their own rotation. Taylor allocates 3 heifers/ha for yearling heifers (750-800kgLW/ha).

Heifers are shifted at least daily through winter – twice a day in wet weather with 50 heifers allocated 0.4ha a day on a 40 day rotation. Through autumn they are shifted every second day. The farm relies on balage – it is not geared up to feed PKE – made in January because gear and labour is available.

“This land is pretty responsive…. The worst thing is the wind; that might be helping us with lower spore counts.

“Calves are on a two day shift… To get growth rate you’ve got to move them before they need to be moved and you just keep going. September is our worst month because the lambs are starting to eat – the land is so cold its takes a while to come on.”

Heifer grazing is sensitive to feed deficits: heifers need to gow at 0.6-0.7kgLW/head/day to reach their 22 months liveweight. Any periods lower than this creates risks of missing liveweight targets.

Some pros of working via New Zealand Grazing Company, rather than private arrangements, include dealing with one person, secure paying, regular weighing, and a dung and FE testing regime, calves must be 100kg at trucking to the grazier, and extra payments for winter, drought and animal health costs.

However Taylor thought the $500/head plus grazing feeds refund penalty for death was steep when it was not the grazier’s fault.

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DAIRY NEWS FEBRUARY 24, 2015

26 // MANAGEMENT Peat soils need precise application of fertiliser.

Peat soils need extra attention BALA TIKKISETTY

PEAT SOILS, in their

natural state, have high organic matter content, and low nutrient

levels and water table fluctuations, so they behave differently from mineral soils in nutrient transformations and cycling.

There are different

types of peat soils, such as bog peat and swamp peat. Bog peats have low nutrients with usually 35-50% carbon content, whereas swamp peats have higher mineral content – 15-40% carbon.

Farm management gets tough if different types of peat soil are side by side or layered on top of each other.

To protect productivity, ground water and waterways, farmers with peat soils must pay particular attention to management of nutrients and soil moisture.

outside the target area.

The precise placement of fertiliser depends on a number of factors.

It requires careful integration of operator skills, sound equipment and appropriate formulation of fertiliser.

It is recommended farmers follow the Spreadmark Code of Practice for fertiliser application, a programme governed by the Fertiliser Quality Council.

Another factor to bear in mind is that, while drainage and cultivation of peat are necessary to establish productive

Fertiliser should be uniformly and evenly applied with none outside the target area.

Peat soils typically have a low anion storage capacity. This means the leaching of nutrients to ground water will be significant in peat soils.

Increased leaching of nutrients can occur when water tables are near the ground surface. Those low nutrient levels, and the tendency of peat soils to ‘lose’ nutrients to waterways easily, means that nutrient management on peat soils involves the use of a suite of practices to protect the environment and maintain productivity.

Implementing correct farm management practices, including the use of the right type of fertiliser, applying it at the right time and in the right amounts, is critical to minimising nutrient losses to water and optimising nutrient use for pasture production.

Applying fertiliser correctly to peat soils will maintain good pasture for longer periods, reducing the need for frequent cultivation and pasture renewal. Lime is also required to increase the soil pH to an optimum level for pasture and crop species. Soil and herbage tests will determine what nutrients peat soils need.

Fertiliser should be uniformly and evenly applied with none

pasture, they lead to irreversible shrinkage of the peat resulting in continued subsidence of the land surface.

Shrinkage is a result of consolidation following water removal and particle breakdown during cultivation, and also as a result of oxidation of the carbon in the soil due to exposure to air. Shrinkage is estimated at about 200mm/ year after the initial cultivation, reducing to around 20mm/y as the peat becomes more consolidated. This makes drainage progressively more difficult to manage and can ultimately lead to the complete oxidation of the peat soil.

These factors mean that farming of peat soils can lead to damage to nearby wetlands and peat lakes, so extra care is needed. Waikato’s peat lakes, with their unique ecosystems, are the largest remaining collection of such unique habitats in the country and have attracted international attention.

• Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council. Tel.0800 800 401 or bala.tikkisetty@ waikatoregion.govt.nz @dairy_news facebook.com/dairynews

DAIRY NEWS FEBRUARY 24, 2015

ANIMAL HEALTH // 27

LIC partners with cow health firm LIC SAYS its new partnership with a fat, protein, lactose and somatic cell counts global cow health company is growing the during milking.

“The SCR Heatime system will add to business and providing New Zealand farmour range of herd improvement and animal ers more choice.

The co-op is partnering with the cow management solutions.”

LIC and SCR already see monitoring and milking intelfour markets for DAL meters. ligence company SCR. SCR’s Heatime will be availUnder a distribution agreeable to New Zealand dairy ment, SCR, recently acquired farmers from LIC, with its

by Allflex Group, will distribProtrack farm automation ute the LIC’s DAL milking systems. sensors internationally and Heatime collects and LIC will in New Zealand disanalyses critical data points, tribute SCR’s cow reproducfrom activity to rumination, tion and health monitoring Wayne McNee on each cow, delivering heat, system Heatime.

LIC chief executive Wayne McNee says health and nutrition insight. the partnership is part of the co-op’s stratShane McManaway, general manager egy to grow the business overseas and pro- Allflex Australasia, said the linking of vide New Zealand dairy farmers with more “three world leaders in their respective choice. fields… provides synergies and opportu“SCR is a world-leading provider of nities not seen before”. cow intelligence systems… [improving] Yariv Avisar, chief executive SCR, says farm efficiency worldwide. This agreement the partnership will support growth in both aligns with… our focus on key international global businesses. markets that will add value for sharehold“It is our vision to secure dairy farmers in New Zealand. ing’s future by monitoring every cow. We “DAL sensors are highly regarded in are delighted to work with LIC and their New Zealand for measuring milk volume, New Zealand farmers.”

Top jersey bull leaves his robust legacy around world CRV AMBREED’S

highest ranked Jersey bull died this month.

Pukeroa TGM Manzello produced 467 daughters in 173 herds in New Zealand alone.

He died from a progressive illness.

Pukeroa TGM Manzello’s breeders, Alan and Vivian LockwoodGeck, say “The thought of how many cows will not be inseminated by him over the next four to five years is a huge shame. He won’t be easy to replace in the shortterm.”

Manzello in February 2013 hit the top of the RAS list. He has maintained a top spot on the list ever since, the company says.

Jersey New Zealand general manager War-

Manzello

wick Dowse says he was a star result from Jersey New Zealand and CRV Ambreed’s joint venture JerseyGenes.

“He will make a significant impact in New Zealand and abroad with sons coming into AI and daughters becoming the next generation of brood cows,” says Dowse.

In his first three years as a proven bull, CRV Ambreed sold 250,000 doses, which CRV Global grazing product manager Peter van Elzakker says is extraordinary for a Jersey sire. He has also been sold in Australia, USA, South Africa, UK, Ireland, Switzerland, France, Denmark, Chile,

Columbia and Argentina.

“Manzello was frequently selected by farmers to improve the overall productivity, longevity and fertility of their herds. His daughters are well-liked and demonstrate good conformation and great shed traits,” said van Elzakker.

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DAIRY NEWS FEBRUARY 24, 2015

28 // ANIMAL HEALTH

Mastitis is a complex disease.

Always be vigilant and practise good hygiene PHIL FLEMING

MASTITIS IS INFLAMMATION of a

cow’s mammary glands and udder tissue. It usually occurs as an immune response to bacterial invasion of the teat canal by various bacteria present onfarm, and can also occur as a result of chemical, mechanical or thermal injury to the cow’s udder.

Milk-secreting tissues and various ducts throughout the udder can be damaged by bacterial toxins, and sometimes permanent damage to the udder occurs. Severe acute cases can be fatal, but even in cows that recover there may be consequences for the rest of the lactation and subsequent lactations.

The illness is, in most respects, a complex disease affected by a variety of factors: it can be present in a herd subclinically where few, if any, symptoms are

present in most cows.

Practices such as close attention to milking hygiene, the culling of chronically infected cows and effective dairy cow nutrition to promote good cow health are essential to help control herd mastitis levels.

Mastitis treatment and control is one of the largest animal health costs to the dairy industry and markedly affects cow welfare.

Losses can arise from: ■■ Milk thrown away due to contamination by medication or being unfit to drink.

■■ A reduction in yields due to illness and any permanent damage to udder tissue.

■■ The extra labour required to tend to mastitis cows.

■■ The costs of veterinary care and antibiotics.

■■ The cost of reduced longevity due to premature culling.

■■ Grading due to high bulk somatic cell count

(SCC) in the milk.

Most mastitis problems are either calving related environmental problems, characterised by a high number of clinical cases in the spring, and/or contagious, which usually result in a rising cell count later in the season.

The contagious form of bacteria is Staph aureus which is easily transmitted from cow to cow via milkers’ hands and liners, so as the season progresses the number of infected cows goes up.

Some good tips for keeping this form of bacteria at bay: ■■ Spraying every teat, every day and every milking.

■■ Wear milking gloves.

■■ Avoid hosing down around cows when cups are off.

■■ Where possible milk your high cell-count cows last.

Keeping the herd cell count low in the autumn can present challenges because as production

volume drops, cells become less diluted and cell count rises. There is no benefit to treating high cell-count cows in late lactation so along with low producers they should be dried-off early and treated with dry cow therapy.

Many of the chronically infected mastitis cows cannot be fixed so I recommend culling cows which have had three or more clinical cases during the season as well as cows which have had high SCC over two consecutive seasons using dry cow therapy.

Mastitis is a complex issue and every situation is slightly different on any given farm. So how you treat it can depend on a number of variables.

But the key message is to remain vigilant in detecting cases and carry out good dairy hygiene practices at all times of the year.

• This first appeared in the 2015 edition of Getting the Basics Right.

DAIRY NEWS FEBRUARY 24, 2015

ANIMALHEALTH // 29

Teat spraying essential for udder health TO AVOID the cost,

hassle and cow discomfort of mastitis in your herd, here are some preventative measures.

Teat spraying kills bugs and helps to heal cracked and dry teats. It is important to choose the right type of teat spray for the environment; chlorhexidine is a good all-round maintenance teat spray and iodine is useful in more challenging environments.

Once the teat spray type is chosen it is important to ensure the dilution rates are measured accurately.

(See tables).

Mixing teat spray is not complicated but if it isn’t done in the correct order and mixed well it will not be as effective.

How to mix: Teat spray should always be mixed by adding the product, including teat conditioner emollient, to the water.

■■ Measure and add water to bucket ■■ Measure teat spray in a large jug (recommend 5L jug) and add to water

Before - cow had deep cracks on her rear teats.

After - the cracks had healed significantly and the teats were left soft.

DURING EARLY LACTATION – HIGH RISK

MID LACTATION – MILD RISK

Iodine

Chlorhexidine

Teat Spray

1L

1.5L

Teat Conditioner

1L

1.25L

Teat Conditioner

0.5L

1L

Water

8L

7.25L

Water

8.5L

8L

Teat Spray

Iodine

Chlorhexidine

1L

1L

Measure teat conditioner in large jug and add to mixture ■■ Stir mixture to combine ■■ Spraying correctly is possibly the most important step as missing teats means the whole process is ineffective.

How to spray correctly: ■■ Ensure spray nozzle is under cow ■■ Spray in a circular motion ■■ Ensure coverage of all 4 teats, from the base to the tip For severely cracked and chapped teats using an additional salve or cream can help these heal quickly.

By following these simple steps teat condition can become supple and smooth, not allowing the introduction of harmful bacteria and therefore decreasing the opportunity for mastitis.

These pictures show the improvements made by following this process.

• This first appeared in the 2015 edition of Getting the Basics Right.

■■

1080 drop knocks stoats in Otago A 1080 poison drop in the Blue Mountains, Otago,

has knocked rodent and stoat numbers down to “undetectable levels”, says OSPRI, which runs the TBfree scheme.

OSPRI teamed up with DOC in the Blue Mountains, as part of the Battle for our Birds campaign.

Stoat numbers “fell dramatically: monitoring by tracking tunnels showed stoats at undetectable levels (0%) compared to 38% in November last year prior to the aerial pest kill operation”.

Tracking results also showed rats and mice had dropped to 0% in the treatment area from rates of 10% and 30%, respectively, says Brent Rohloff, OSPRI’s southern South Island programme manager.

The Blue Mountains is a TB risk area, where infected wild animals have been found.

“The Blue Mountains operation shows we have the skills and capability to stamp out TB in wild animals and [support] biodiversity gains,” says Rohloff.

DOC spokeswoman Ros Cole said the TBfree operation was welcomed at a time when DOC was busy with other Battle for our Birds pest control work in the South Island.

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DAIRY NEWS FEBRUARY 24, 2015

FARM DAIRIES & EQUIPMENT // 31

Hot water cylinders resist rust HOT WATER cylinder maker Superheat Ltd, Christchurch, says its stainless steel barrels are less likely to corrode.

It makes cylinders of 180-1500L capacity, ideal for replacement or new water heating in dairy sheds. It can make large high pressure cylinders for automated milking.

The company’s cylinders are made with either copper or stainless steel barrels; the exterior cases are plastic, stainless steel or galvanised steel.

“Each material has

particularly electrical elements and copper and stainless steel in hot water cylinders.

“Hard waters with high calcium levels can be aggressive to the cylinder elements.

“Superheat uses a low watt-density incoloy grade element suitable for most water conditions, but for very hard water the company offers a higher grade element with much largerdiameter legs to further reduce the watt density and prolong the element life.

Trevor Edwards with a range of his hot water cylinders.

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Plastic and stainless steel are more resistant to corrosion and are often preferred to galvanised casings. different characteristics, e.g. stainless steel is more resistant to corrosion caused by nitrates in water. Copper better resists corrosion caused by high chloride concentrations in water; it has higher resistance than stainless steel so is better for some applications,” says managine director, Trevor Edwards.

Plastic and stainless steel are more resistant to corrosion and are often preferred to galvanised casings.

The company says dairy hot water cylinders are often used where water does not conform to New Zealand drinking water standards.

“Some regions may have water safe to drink but ‘plumbosolvent’ which means it can corrode plumbing fittings,

“Other factors that can affect element and cylinder life are the pH and electrical conductivity of the water and contaminants such as nitrates and chlorides.”

The cylinders can be specified with solar, heat pump and gas power to reduce operating costs and connected load.

Semi automated dairy sheds require smarter equipment so Superheat can make dairy cylinders with automatic filling systems, comprising a level sensor and solenoid valve.

These can be integrated into a system to control cylinder filling.

Superheat also makes domestic hot water cylinders including includes solar and mains pressure wetback cylinders.

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DAIRY NEWS FEBRUARY 24, 2015

32 // FARM DAIRIES & EQUIPMENT

Banking on robots to set new r SUDESH KISSUN sudeshk@ruralnews.co.nz

MORRINSVILLE FARMER Mark Hexter

has a good reason to be feeling excited: three robotic milking machines will arrive on his farm next month from Lely, in the

Netherlands.

He expects that by late April the cows on his family’s 78ha eff farm will be milked around the clock by the robots.

“I’m excited about the change, a little nervous at the same time because it is a big step,” he told Dairy News. “We’re launching

into robotics towards the end of the season; if the cows drop off milk at least we can dry them off and wait until next season.”

The investment is a big one for Hexter, who leases the farm from his parents: the robots, new races, fencing and other works will cost around

$900,000.

New races and fencing will only cover half the farm. “We’ll see how it goes; we might split the paddocks a different way as well.”

Hexter says a record 2013-14 season prompted his decision to embrace robotics this year. “We

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had a very good season; we have no debt and I was able to save money and that’s the main reason we decided to go ahead this year.”

His first option was to look at a bigger farm for the robots, but at $4 million this was out of question.

Hexter’s sister, who helps on the farm, leaves at the end of next season; he hopes to break the cows into robotic milking by then and manage the farm on his own.

He started looking at robotics five years ago; labour was another reason

for looking at the switch.

“It’s hard getting labour and if we can get 20% more profit from the same land you can’t get much better than that.”

He doesn’t expect production to lift 20% in the first year of robotic milking.

“We’re doing 500kgMS/ cow at the factory; hopefully we can get it to 600kg one day.”

Robotics will also allow year-round milking; this season he is milking 190 cows, compared to 230 last season. With robots he hopes to get to 200 cows during the first year.

Mark Hexter in his milking shed.

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“Milking year-round means we get to keep our good cows instead of putting them in the works because they’re empty.

It’s a good way to keep our good cows and the price for winter milk has also gone up.”

The robots will solve a labour dilemma Hexter faces on the farm.

With enough work for only 1.5 people, including him, he found it hard to pay two full time staff. “Especially, with a payout like this year, paying someone $50,000 to do nothing is ridiculous.”

DAIRY NEWS FEBRUARY 24, 2015

FARM DAIRIES & EQUIPMENT // 33

w record He has no plans to add a barn; a feed pad may be a better option.

“A barn would be for protecting cows during summer; it’s getting hotter and hotter here. But there’s no rush; one thing at a time.

“A covered feed is what I might look at one day. If you put maize down and it rains the cows don’t want to eat it; that’s why I am keen to put a roof over it.”

Animal health issues will also be kept at bay by the robots. Lameness is now a major issue, as cows rush in to get milked.

With robots, they can

stroll, he says.

He chose Lely because it is a reliable company and the people are ‘switched on’. “Their robots weigh each cow every day and we can see if they’re being fed right; this will save us the cost of herd tests and vets’ charges.”

Last season’s 100,000kgMS was the best since Hexter’s family bought the farm 13 years ago. He hopes the Lely robots will help him better the record every season. www.lely.co.nz @dairy_news facebook.com/dairynews

NOW READ IT ONLINE READING THE PAPER ONLINE HAS NEVER BEEN EASIER ■ BREAKING NEWS ■ MACHINERY REVIEWS ■ MARKETS & TRENDS ■ MANAGEMENT STORIES ■ COMPETITIONS ■ AND MUCH MORE...

All the latest stories and more at www.dairynews.co.nz

Mark Hexter and Lely’s Philip Mitchell.

DAIRY NEWS FEBRUARY 24, 2015

34 // MACHINERY & PRODUCTS

Feed mixer helps lift production CANTERBURY SHAREMILKERS

Steven (‘Sars’) and Ange Hyde are raising their cows to a new level, comments Webbline, whose BvL feed mixer the Hydes bought last winter.

The Hydes are into their second year of 50/50 sharemilking 1200 cows on a 300ha property for Nigel and Jane Reith at Ealing.

Last season, the Reiths could see the need to fine tune their operation so they bought a stand-off feed pad.

“With this facility

being built we could see the benefit of a mixer to maximise production,” Sars says. “We tried a couple of brands and settled on the BvL V-Mix 27.

The feed pad and mixer save us pasture and minimise wastage, especially on the shoulders of the season.”

The farm operates two centre pivots, has 100ha under a Rotorainer and 30ha using K-Line sprinkler.

The BvL is an exceptional machine, he says.

“It’s easy to drive. I mostly run it on my John Deere

Sars Hyde feeding in the paddock with his BvL 27.

6920. However when needed I run it on a John Deere 6330 (100hp) and it handles it at a pinch, so I have tractor flexibility.

“At 27m3 we have excellent capacity: on a milker’s mix we can get up to 11 tonnes mixed with total accuracy.

“We chose BvL because of its build quality, mixing capacity and consistency.

The asymmetrical bin design of the BvL facilitates fast mixing. Using a figure-eight mixing pattern it achieves a consistent mix in a short time.

“In the spring we were

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feeding the milkers a mix of silage, straw and fodder beet and found that the beet chops up very well also”.

Sars says the farm increased to 30,000kgMS solids in the spring, building up to October.

“It was a result of knowing the farm and cows better, the calving pattern and the mixer. I would equate that extra milk to a third of each, so in short I can attribute at least 10,000kgMS of spring production to the BvL and this was only by feeding in the paddock; we

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didn’t have the feed pad finished then.”

Webbline Sales manager Glen Malcolm says the Hydes’ experience is not uncommon.

“Sars is running a low cost system and has proven that the BVL Mixer dovetails nicely into that low cost operation. Even with the lower forecast payout, we are still selling, leasing and hiring BVL Mixers as farmers are looking for ways to get more out of their cows.

“We have run the figures with many of our clients on the economics

of running a mixer on a $4.70/kgMS payout and it still stacks up.”

Webbline Agriculture specialises in forage harvesting and feeding equipment, seeking to provide clients with help in planning for the right equipment to do the job, Malcolm says.

“It’s not always the cost of the machine that is most important, but that what a client buys will provide the greatest benefits to his operation.”

Tel. 0800 932 254 www.webbline.co.nz

DAIRY NEWS FEBRUARY 24, 2015

MACHINERY & PRODUCTS // 35

Polaris workhorse gets heavy duty upgrade POLARIS IS adding

more grunt to its range of farm vehicles.

Notably, its 2015 Ranger 1000 diesel HD, built specifically for the New Zealand and Australian markets, has some “heavy duty upgrades” – electronic power steering, engine braking and 4-wheel descent control (4WDC) for hilly terrain.

This new model, built on the Ranger XP platform, also has updated styling, a new 1028cc diesel engine, a “massive” 110 amp alternator and a new ROPS cab frame.

Other features are dual A-arm front suspension, new flip-up seat storage, new lockand-ride cab accessories, 37.6L fuel tank, easier serviceability and a quieter ride due to engine repositioning rearward.

The Ranger 1000 diesel HD also has new intake openings on the pillars behind the driver and passenger, improving airflow to the engine and clutch.

The new 1028cc Kohler diesel is a 3-cyl overheadcam liquid cooled unit with indirect injection “that delivers smooth power and reduced combustion noise,” the maker says. It has a cast iron crankcase

for durability and an aluminum cylinder head for weight reduction.

Alternator output is double that of the outgoing model.

“Full pressure lubrication provides superior protection and engine life. The automotive overhead camshaft design also reduces mechanical drivetrain noise and with the engine being repositioned rearward in the chassis this new model is expected to be harder working and smoother riding”.

The Polaris 2015 Ranger 1000 has a new 1028cc diesel engine.

The Ranger 1000 diesel HD has classleading 907kg towing capacity, 680kg payload capacity and a rear dump box (gas-assist dumping) that can carry 454kg and a full-sized pallet.

For New Zealand, the Ranger 1000 Diesel will come as an ‘HD’ (heavy duty) spec model with an upgraded rear driveshaft, grease fittings, HD sway bar and driveshaft spline sealing – ideal for dairy farms.

The company says

the HD spec is a direct result of recent visits

by Polaris Industries USA management and engineers to New Zealand, “during which they spent hours with dealers and end users researching the usage of quads and side x sides in

New Zealand conditions”.

The 2015 Ranger 1000 diesel HD will be available in New Zealand from early March. Price: $21,398 incl. GST. www.polaris.co.nz @dairy_news facebook.com/dairynews

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DAIRY NEWS FEBRUARY 24, 2015

36 // MACHINERY & PRODUCTS

Land Rover’s Discovery Sport first in range

Land Rover’s new Discovery Sport is the perfect vehicle for New Zealand, the company claims.

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• Four wheel units – This pull-type frame is equipped with 4 hydraulic wheel lifts.

• High capacity fertiliser attachment with FertiDriveVM – for easy and rapid adjustment.

• Easy adjustments and operating – All planter functions operate from the tractor cab using a function selector.

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A NEW Land Rover -- Discovery Sport – is the first of the company’s new Discovery vehicle range. The compact SUV seats seven in an optional ‘5+2’ arrangement.

Says Land Rover, “The Discovery Sport 2015 combines performance, safety and efficiency in a body shell of steel and aluminum. It offers a choice of 4-cylinder powertrains, 9-speed automatic transmission and standard all-wheel drive.”

Innovations include autonomous emergency braking and a new touchscreen infotainment system.

“It’s a perfect vehicle for New Zealand,” says Helen Sunley, national sales manager. “It’s capable and luxurious, and its specifications and price give it an edge in the compact premium SUV market.”

Designed and engineered at the Land Rover Development Centre in the UK, the SUV will be made at Halewood, Liverpool.

Optional features include Black Pack -- a gloss-black grille, door mirror caps, front fender vents, hood and tailgate lettering and a choice of 19- or 20-inch alloy wheel designs. A contrast roof in Santorini Black or Corris Grey extends to the base of the A-pillars Seven alloy wheel designs, including Aero Viper, are available in silver or gloss black, depending on wheel design.

Front and rear undershields, and stainless-steel side steps, point to the vehicle’s back-country capability.

An optional panoramic roof with a dark tint and solar protection makes the cabin feel more spacious. A powerretracting shade gives extra sun shielding.

The maker says the SUV combines off-road capability and on-road dynamics.

Interior packaging and safety innovations make it an ideal family vehicle, and lightweight materials and an efficient powertrain reduce fuel costs and environmental impact.

Land Rover Terrain Response makes it go well in “challenging” conditions. Terrain Response tailors the vehicle’s steering, throttle response, gearbox, centre-coupling and braking and stability systems to the demands of the terrain. It has four settings: general, grass/gravel/snow for slippery conditions on- and off-road, mud and ruts, and sand, plus optional ‘dynamic mode’.

The Discovery Sport will sell in New Zealand for $78,500. @dairy_news

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DAIRY NEWS FEBRUARY 24, 2015

MACHINERY & PRODUCTS // 37

No such thing as a generic towbar NO SUCH thing as a ‘generic’ towbar exists, says towbar maker Best Bars Ltd. A good towbar is one designed to suit the vehicle it’s fitted to.

“That means anyone who buys a new towbar online from an unknown original, without knowing what vehicle it was made for, could be putting themselves, and others on the road, in danger,” the company says.

“A towbar fitted to a vehicle that it was not designed for could be a recipe

for disaster. If it has to be adapted to fit the vehicle or does not have the correct fittings it could lead to failure during towing.

“Never fit a second-hand towbar, either, even if it is designed for the right vehicle, as there may be hidden corrosion or metal fatigue.”

Have a towbar fitted by a reputable vehicle dealer or spe-

Industry reports bouyant tractor sales WAIKATO FARMERS led the way in tractor buying in New Zealand during 2014, and tractor sales approached record highs.

A total of 4061 tractors were bought January-December, including 3419 at least 40hp, the most common measure for farm tractors. In 2013 sales of 40hp and bigger were 3065.

Ian Massicks, president of the Tractor and Machinery Association (TAMA) which gathers sales data, says record dairy payouts last year and good growing conditions got farmers spending.

“The July-September sales figures were the highest in a decade,” says Massicks. “They then continued steadily for the remainder of the year though stopping short of the 2005 record when 3515 tractors of at least 40hp were purchased.

“2014 was a healthy year for tractor sales and we expect 2015 to be a good year too, though with some reduction due to forecast lower dairy payouts.”

Of the 684 tractors bought in Waikato, 614 were over 40hp, followed by Southland with 418 over 40hp from a total of 430. Otago farmers bought the next-highest number – 249 40hp-plus from 291 sales.

This January’s purchases nationwide were 210 – at least 161 of them 4hp or bigger. Waikato again led the way with 25 purchases: 23 of them were at least 40hp, followed by Southland with 20, 19 of them 40hp or over.

Massicks says farmers prefer to buy from New Zealand machinery dealers rather than risk buying online from overseas suppliers.

standards, including building them to NZS5467.

Best Bars says its towbar designs are tested on a special rig – independently calibrated and certified – which duplicates the forces exerted on a towbar, not just in a normal vehicle life cycle, but for far longer than most people will ever use it. www.bestbars.co.nz. @dairy_news facebook.com/dairynews

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Distributor Mimico the machine is more productive than either an excavator or a dozer.

“Unlike most excavators, this 92hp, 15,700kg model has a six-way power-tilt blade with float, tilt, lift and angle options.”

Designed for heavy dozing, the ED160 has a rugged undercarriage and curved track pads for best traction and higher flotation.

The machine also has a 0.5m3 bucket and a zero tail swing radius making it suitable for digging, even in tight spaces.

cialist fitter – one that carries labels saying ‘Genuine/Approved Accessory’

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DAIRY NEWS FEBRUARY 24, 2015

38 // MACHINERY & PRODUCTS

CF Moto launches its sporty Z8S side by side ”

NEW PLAYERS in the NZ off-road market, CFMoto, have launched their feature packed, sports side by side vehicle, the Z8S. The 800cc sports side by side (SSV) is part of a growing range of off-road vehicles offered by the global powersports manufacturer who have been producing feature packed, value for money vehicles for 20 years.

CFMoto New Zealand general manager, Dale Schmidtchen believes the Z8S will be well received

by Kiwi’s given its competitive retail price of $12,490 ex GST. “When you compare the cost of a Japanese 500 ATV which sells for close to $14,999, with a CFMoto Z8S side by side for $12,490 ex GST including a two year warranty, it’s a no brainer – the safety and versatility of a SSV should win every time,”

Schmidtchen says.

The new Z8S will complement CFMoto’s Z8 EX model already offered in New Zealand for $15,065 ex GST ride away.

“The main point of difference between the Z8EX and the Z8S is the narrower wheel track which make it more trailer friendly,” Schmidtchen says.

“The Z8S also offers $2,600 worth of accessories such as alloy wheels, tow pack, roof kit, independent front and rear suspension and selectable 2WD-4WD modes.

“We hope Kiwi’s will respond well to the value for

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money this model offers and expect it will be a good seller for us in 2015.”

Call the team today or see us at Site 093 to discuss your Central Districts Field Days requirements

Paint adds a rubbery coating PLASTI DIP is an ingenious way to cover almost any

surface with a synthetic rubber coating that protects, insulates and revitalises.

The multi-purpose air-dry, coating can easily be applied by spraying, brushing or dipping and, because it remains flexible and stretchy, it doesn’t become brittle or crack. And it’s removable.

Now there’s a new paint finish in the range that mimics a real life chameleon – it changes colour when viewed from different angles or in a different light.

The new Chameleon finishes are part of the Plasti Dip Enhancers range of easy-to-use paints that can give workplace items and give them a new lease of life.

Plasti Dip adheres to most hard surfaces. The Americans refer to it as ‘like duct tape in a can’ because of the myriad of uses.

The Plasti Dip range is available from leading hardware outlets and automotive accessory retailers throughout New Zealand. See www.plastidip.co.nz or check out facebook.com/PlastiDipNZ.

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