Dairy News 14 April 2015

Farmer takes on Otago Regional Council. PAGE 5

SEE THE HERD Morrinsville invaded by cows PAGE 7

A FAMILY AFFAIR Champion cheese maker PAGE 8-9 APRIL 14, 2015 ISSUE 332 // www.dairynews.co.nz

FARMERS MULL SUPPLY 0PTIONS Farmers threaten to switch supply over Fonterra’s poor half-year results. PAGE 3

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DAIRY NEWS APRIL 14, 2015

NEWS // 3

Angry Fonterra farmers mull supply options SUDESH KISSUN sudeshk@ruralnews.co.nz

Change is coming, be prepared.

PG.04

Taking Kiwi farming to Oz. PG.33

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FONTERRA CHAIRMAN John Wilson says farmers are rightly disappointed with its half-year results, with some threatening at recent farmer meetings to leave the co-op.

But Wilson says “accounting treatments, rather than performance issues” are behind its decision to cut dividend payout by 5c/kgMS. The move has angered farmers, many of whom are facing a bleak 2014-15 season with a $4.70/kgMS milk price.

The co-op board and management held 40 meetings throughout the country recently to explain why its half-year revenues were down 14% to $9.7 billion and net profit after tax down 16% to $183 million. Wilson and chief executive Theo Spierings attended meetings in Te Awamutu, Rongotai, Carterton, Hawera and Invercargill; average turnout was 160 at each meeting.

Wilson told Dairy News the meetings generated “real good discussion”. ”They asked questions I would have asked myself,” he says.

“We explained the accounting treatment that occurred due to rapid drops in commodity prices during the half year.”

Wilson says some farmers talked about leaving the co-op.

“Of course the issue came up at meetings; it’s a very competitive environment but not a level playing field because Fonterra has to operate under DIRA,” he says.

Farmers also questioned why the co-op failed to pay a higher dividend when the milk payout is low, as Fonterra’s consumer business milk is a raw ingredient and a lower milk price means lower production cost.

But Wilson says the milk pools in three key offshore consumer business markets, Brazil, Chile and Australia, the local milk price is not linked to global prices.

He says Fonterra also incurred a 12c/kgMS loss on inventories. At the end of the last financial year the co-op was left with a high inventory of powder products; milk powder prices plummeted late last year, shaving off $182 million in value.

Waikato University agribusiness professor Jacqueline Rowarth says the Fonterra half-year result

was poor.

Rowarth, a Fonterra shareholder, attended a meeting in Waikato; the meetings in the region were packed, she says.

“There was standing room only and in at least one place – people couldn’t get in, farmers had huge concerns about the dividend in particular and the payout in general.”

Rowarth says she is also hearing talk about farmers mulling supply options.

“Word is 500 queued up for Open Country Dairy – and that OCD is deciding about an extra processing plant,” she says.

Currently it isn’t taking on new suppliers, similar to other independent processors, Miraka and Synlait.

But Rowarth says farmers are indicating that they would like to switch.

“That would give them share money from Fonterra to invest in their own farms (or not carry debt) – but the problem is selling shares to people who want to increase supply in a dismal payout and dividend year. “ Rowarth says farmers remain baffled with the drop in dividend when milk payout is low.

“Farmers understood the explanation last year of why the dividend was low. They don’t understand why it isn’t higher this year based on the same logic.

“The big problem is that Fonterra has so many expansions and deals going on, that the company is being drained financially and shareholders are feeling that the returns will not be seen in their lifetime.

“As many are not farming the land for their chil-

John Wilson says farmers are rightly disappointed with Fonterra’s half year results.

dren to take over, as their children are seeing easier and better money in ‘not faming’, they are thinking for the shorter term and their own sleep at night.

“All this is very complex and very difficult for Fonterra management and directors to make reassuring statements about the future because it is uncertain.”

Pukeatua farmer James Houghton says switching supply has crossed his mind.

“Miraka is offering us milk price plus 10 cents; I have $1.5 million tied up in Fonterra shares and not generating any returns,” he says.

“So economically, it makes sense to leave Fonterra.

“Fonterra talked about changing behaviours six months ago but they have come out with a disappointing result.”

TIME TO CHANGE TACTIC AGRIBUSINESS PROFESSOR Jacqueline Rowarth says Fonterra must ensure the official cash rate is high on the Government’s agenda.

Fonterra must also push for the DIRA provision - allowing new processors to have Fonterra milk

for three years while they set up their companies and pick the eyes out of the local suppliers - to be reviewed, she says.

“I’d also be wondering about costs within Fonterra which include the bonus structure.”

Rowarth also questions

the effectiveness of the Fonterra Shareholders Council.

“The council, though comprising well-meaning people, has been unable to show that it has had any effect in being the link between the board and the farmers,” she says.

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DAIRY NEWS APRIL 14, 2015

4 // NEWS

Change is coming, be prepared SUDESH KISSUN sudeshk@ruralnews.co.nz

FARMERS IN Waikato region need to be aware that change is coming: those farming well and minimising environmental impacts will be in a good place, says former Federated Farmers regional president James Houghton.

Houghton is urging farmers to put their ‘numbers’ through Overseer and work with professionals to understand how their businesses are impacting the environment.

“Hopefully farmers will

look at changing behaviour and farming systems where required for better environmental outcomes without impacting the bottom line,” he told Dairy News at a ‘drop-in’ session at Tokoroa for the Waikato regional Collaborative Stakeholder Group (CSG). “Sometimes these environmental outcomes come on the profitable side.”

Set up two years ago to address water quality issues in the Waikato and Waipa rivers, the CSG is made up of farming community, environmental lobbyists and local government officials. It will, by November next year, rec-

ommend a plan change to the regional council and iwi to better protect the rivers.

This plan change will set targets and limits for land-based activities to help meet the water goals: contaminants from point sources (such as factories) and non-point discharges (such as farmland) will be considered by the CSG. The Waikato region has about 2500 dairy farmers.

Houghton admits some farmers will see the CSG process as “interference in their business”. But we all live together in the community and have to work together, he says.

“It’s not about us and

them but getting everyone on board. A lot of urban sewerage systems contribute to water pollution; it’s not farmers blaming towns. The ideal scenario will be coming up with recommendations that… everyone can live with.”

Houghton says out of the CSG process can come targets; these targets will grow into limits. “The process is to identify a pathway forward and sell that story to everyone in the community so they change their behaviour so we all live in the community and work together.”

Houghton’s successor as Feds Waikato chairman, Chris Lewis, recently

called for a discussion on cow numbers and new conversions in the region; Houghton agrees there needs to be a discussion.

“In a catchment like this every new conversion adds pressure on the system; we are still waiting on the science but we can see that if we keep converting we are putting more load on the rivers.”

But Houghton says agriculture is not solely responsible for affecting water quality. “It’s the whole community that affects water quality.

“We agree that the more conversions in the upper catchment the more impact it’s going to have

James Houghton at the Collaborative Stakeholder Group ‘drop-in’ session in Tokoroa.

down river. But if all existing dairy farms dropped their numbers (nitrate leaching) and got good systems, perhaps there [would be] capacity for a few more cows.”

Houghton says the science behind water quality issues is still being worked on; the DNA of water E-coli is being established to identify where E-coli is coming from.

‘Grandparenting’ of water is being done to

understand the age of water through the catchment. Some of the catchments have had dairying introduced only 10 years ago, Houghton adds.

“They might have an impact not now but 40 or 60 years down the track. Science is needed to get an understanding all throughout the catchment, then we’ll know what’s happening now and what will happen in future.”

A BALANCING ACT ON HIS Puketua farm, James Houghton is looking at autumn calving; at the same time he’s thinking about a wintering barn to offset the impact on environment.

“The move to autumn calving will have a greater impact on environment, according to numbers on Overseer,” he says.

“If I’m going to do that with economic side, I have to offset that by putting a Herd Home shelter which will have a lesser impact on the environment.

“So often we focus on the dollar; we need to shift the focus within farming commmunities so we start looking at the environmental side too.”

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DAIRY NEWS APRIL 14, 2015

NEWS // 5

Council u-turn leaves farmer fuming Otago farmer Robert Borst has spent $150,000 on consultants and legal advice in his negotiations with Otago Regional Council.

PAM TIPA pamelat@ruralnews.co.nz

A LAST-MINUTE turnaround

decision by the Otago Regional Council was the last straw for Oamaru dairy farmer Robert Borst.

The decision could put him out of business, he says. Hence his frustration that boiled over in a dumping of cow manure outside the council’s Dunedin office.

Borst had spent four years and up to $150,000 on consultants and legal advice on negotiations with the council over consents after a special sensitive zoning was imposed on his Five Forks farm.

As a goodwill gesture he had already voluntarily reduced stocking rates by 20% and nitrogen leaching by up to 25%. He has carried extra interest payments imposed by the bank because his valuation dropped 60% temporarily because of uncertainty over the consents.

He had spent money on consultants, advisers and reports. He was doing his best to put together a comprehensive consent application despite being told at various stages by the council it wasn’t clear what was needed because they hadn’t considered such as application before.

Borst had endured being told by a council head scientist who came to carry out significant water tests there was not future for dairying on the sensitive land. He felt this was predetermining his consent. He had tried to cooperate with everchanging decisions and criteria for the application.

But when he finally submitted the consent and two weeks later was told the council had changed its mind and that the consent would have to be a notified application, he had had enough.

The Borsts had been told if they could show considerable progress in N leaching, that would justify a non-notified process. They had done that at considerable cost and effort.

A notified process would cost tens of thousands more, take years and possibly put him and his wife Sylvia out of business as they continued to struggle with doubled interest rates.

That is when Borst dumped a load of manure outside the Otago Regional Council Dunedin offices out of “sheer frustration”. “We are at the end of our tether,” Borst

told Dairy News. “I am not proud of what we did. It wasn’t premeditated; it was just something out of sheer frustration and an accumulation of emotions.

“We don’t know where to go.

We haven’t got the luxury of going through a notified process. We are under financial pressure because of the high interest rates and we’ve got to deal with the drought and the low payout.

“We deal with those things as farmers all the time – but when the whole underlying value of your property is under threat, you can only survive that for so long. And there’s no certainty that the consent would be granted at the end of it.

“It is hard to make management decisions, not knowing if we are going to be here next year or not.”

Borst says he is a born-andbred dairy farmer. He worked up to ownership from starting out as a farm worker. His operation (3000 cows on three dairy units) is a family farm with himself and Sylvia as partners.

“We’ve spent somewhere between $150,000-$200,000 on consultants, legal advice, etc to date,” he says. “It has been a lonely battle as well because we are basically fighting on our own.”

To do a water study required for the consent will cost at least tens of thousands and take 12-18 months.

“Submitting a public submission, hearings, professional support – we are probably talking about hundreds of thousands and no guarantee we would get a consent at the end of it anyway.

“We already reduced nitrogen leaching as a goodwill gesture at the start of this consultation. We acknowledged we are in a sensitive zone and started to reduce our N footprint.

“But we can’t keep reducing stocking rate and stay economic, so it’s a balancing point. How far do you keep going? Until you have no business?”

He has been communicating with Federated Farmers Otago president Richard Strowger and national president William Rolleston throughout the process but has not had any recent feedback.

Since his dumping protest he has had support from the farming community and other businesses.

He has had 60-70 text messages from farmers, businesses and strangers around New Zealand.

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DAIRY NEWS APRIL 14, 2015

6 // NEWS

Fresh milk exports to China ‘exploding’ SUDESH KISSUN

NEW PRODUCTION LINE

sudeshk@ruralnews.co.nz

DEMAND FOR New Zealand fresh

milk in China is “exploding”, says independent processor Green Valley Dairy.

However, limited air cargo space is hampering New Zealand’s ability to supply fresh milk, which fetches a premimum price in China.

The South Auckland company processes fresh milk for six companies, supplying six major Chinese cities with 120 million people.

The exporters include Agribusiness New Zealand, a company run by former Federated Farmers chief executive Conor English. The six companies export about 10 tonnes of fresh milk every week.

Green Valley Dairy chief executive Corrie den Haring would not say how much each company is exporting, saying it was commercially sensitive information. But demand is growing in “triple digits”.

GREEN VALLEY Dairy is building a new production line and doubling capacity to meet demand.

The line will raise processing capability from 120,000L/day to at over 200,000L/day.

Corrie den Haring says it has enough milk, from its own farms and farmer suppliers; milk is also bought from Fonterra under DIRA regulations.

The company gets no more than 30 million L/year from its

He says the fresh milk export business will remain a small part of Green Valley’s business, which includes supplying fresh milk to the domestic market and third-party processing of butter and cream. “In relative terms, this will always remain a small portion, unlikely any more than 10%. Logistically

own supply base; it is entitled to get up to 50 m L from Fonterra.

Den Haring is a proponent of a flatter milk supply curve, compared to New Zealand’s seasonal supply which he describes as “dumb”.

“I’m not telling Fonterra how to run its business but with a consistent supply base they may find they have a less volatile market internationally as well,” he says.

it is not capable of being more than that; there is not enough air [cargo] space available to send 60 tonnes a day – not enough aeroplanes.”

But den Haring says enquiries come in every day despite the product being expensive in China.

Imported fresh milk attracts pre-

Two of the NZ fresh milk brands landing in China every week.

mium pricing in China: to air freight 1kg of product to China costs $2-$3; other costs are for the base product and import requirements.

While Green Valley Dairy is processing only conventional milk for export to China, it is also looking at organic milk.

Den Haring says it is working with other parties on organic milk, which offers a value proposition out of New Zealand.

“We believe organics will play a part…. more and more Chinese consumers demand to know what products they are consuming; there’s a shift towards greater affinity with the items they consider important – product safety, knowing where it comes from and exclusivity.

“If you are just selling ordinary milk from New Zealand, it could be from any farm, any tanker, any supplier; when you link it back to an organic base, it becomes a little more special and has uniqueness attached to it.” This will help justify the pricing of the end product.

Green Valley is also discussing packaging and branding of organic milk to make it uniquely NZ. Den Haring says the recent 1080 threat hasn’t affected its business with exporters to China. “It’s interesting to watch and talk to our customers; while a number of consumers were aware of the issue they did not see it as unusual, problematic or risky.”

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DAIRY NEWS APRIL 14, 2015

NEWS // 7

Glass cows graze the streets of Morrinsville FIFTEEN FIBREGLASS ‘cows’ have

invaded Morrinsville in a show of street art that will be permanent and, hopefully, a signature icon for the town.

Morrinsville Street Art was launched last month at the town’s art gallery, the project sponsored by local businesses, says spokeswoman Nicki Robb Local businesses are buying the cows, each of them painted by local and national artists. Fifteen more are in progress, to graze the pavements from

August.

“Artists from around the country submitted their portfolios in the hope of getting an opportunity to put paint

to glass,” Robb says.

“Designed together by the business and artist, each cow is unique and eye catching.”

The cows, made by

One of the glass cows outside the Power Farming office in Morrinsville.

Matcraft Marine, Hamilton, will withstand tough conditions; they have a

THE NEW COW CAPITAL? MATAMATA HAS Hobbits, Paeroa has the giant L&P bottle, now how to give Morrinsville an ‘identity’.

It was always going to cows. This Waikato dairy-heartland town has many businesses supplying the rural economy. Then there’s the cows!

The Chamber of Commerce championed loyal local Nicki Robb’s

street-art cow idea.

Local businesses got behind it and along came the first 15 “painted ladies”.

Each sponsoring business teamed up with an artist who has decorated their cow in a distinct theme to encapsulate what they do. Each cow is unique and each is a ‘hit’, says Robb.

high gloss finish coat that withstands graffiti. Each carries a plaque naming the sponsor, artist and the cow.

Mat Bailey, of Matcraft Marine, made the mould, and his company produces two-three cows every week. The mould was sponsored by accountants CooperAitken.

The cows are about 4mm thick with reinforcing around ears and horns.

“We sought advice

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from Resene about how the cows should be painted – what products to use to suit our harsh UV light,” Robb says.

“Resene supplied the paint and the anti graffiti finish which was applied by local business Greenville Auto Partners for a professional finish and seal.”

The sponsors can repaint their cows “to freshen up the herd”.

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app will be set up for people to read about the cows, artists and sponsors.

“It will also have an art trail so they can find the ‘herd’ for themselves.”

Matamata Piako District Council helped place the cows in the streets, considering visibility for traffic and pedestrians; walkways will remain clear of cows.

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DAIRY NEWS APRIL 14, 2015

8 // NEWS

A family affair for prize-winning c SUDESH KISSUN sudeshk@ruralnews.co.nz

TO DESCRIBE the Meyer cheese business as a family affair would be an understatement.

On a 150ha farm 12km west of Hamilton the Meyer family have been churning out awardwinning Meyer cheeses for at least 25 years.

Founders Ben and Fieke Meyer are retired and live on the farm, now run by daughter Sophia and her husband Bert; they milk 415 cross-bred cows. Elder son Geert is the cheesemaker while younger son Miel is the general manager of the cheese business.

The cows are milked every morning and the milk is immediately piped

20m to the cheese plant.

Here it is pasteurised before being processed into cheese by the afternoon. Most cheeses are ready for eating within four weeks, while vintage Meyer Gouda can take up to three years to age.

The Meyer children spent their childhood in the Netherlands immersed in cheesemaking alongside

KIWIS TAKE IT ALL MEYER GOUDA sells the bulk of its cheeses in New Zealand.

The biggest customers are specialty food shops which buy whole wheels; supermarket operators Progressive (Countdown) and Foodstuffs (Pak’nSave and New World) also stock Meyer Gouda cheeses.

The company is also looking at resuming exports to Australia;

it stopped exporting after failing keep up with demand.

“A couple of years ago we exported to Australia; it went so well we had to stop,” says Miel Meyer. “The order for 30 wheels a month turned into 30 wheels every second week.”

He wants to send 20 wheels of Meyer Gouda to Australia from next month.

their parents, who brought their cheesemaking traditions to New Zealand in 1984.

Last month, Meyer Gouda Cheese won the hotly contested Milk Test NZ Champion Cheesemaker Award, for second time in the awards history; and it won the Crossroads Wines Champion Flavoured Cheese Award for its Meyer Smoked Gouda.

The company also took home three gold medals in the flavoured cheeses category for its Smoked Gouda, Cracked Pepper, and Italian Herb cheeses.

The gold medals didn’t stop there: also awarded were Maasdam in the European-style category and Fenugreek Gouda in the Dutch-style category.

This is the second time Miel has received the

Top cheese: Geert Meyer (left) and Miel Meyer with their award-winning cheese.

Champion Cheesemaker Award, the first being 2011 as the youngest person to ever receive the honour.

Miel attributes the success to his parents; they have laid a solid foundation for him and his siblings. He also points out that Geert, as the cheesemaker,

is responsible for consistency in cheese quality and Bert and Sophia run the farm efficiently. This year Meyer won nine medals out of 11 entries; last year it won 10 medals out 11 entries, most being gold.

“For us those medals are worth more than the

big wins we have had,” Miel told Dairy News.

He attributes the consistency in quality to the business having its own milk supply. “We get the milk from the same cows every day; that’s consistency – not getting milk from Thames one day and Taupo the next.

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DAIRY NEWS APRIL 14, 2015

NEWS // 9

g cheesemakers It’s the same farm, same animals. If we bought the milk from Fonterra, the milk would come from a different farm each day.”

Ben, an electronics engineer and Fieke, a school teacher, got their passion for cheesemaking back in Holland in 1976 on Ben’s father’s dairy farm.

After emigrating to New Zealand, they discovered the climate great for dairy and cheesemaking. Ben started making cheese in Hautapu but soon realised the quality of milk supplied by Fonterra (then known as NZ Dairy Group) differed day-today.

He knew buying a farm was the only option.

Four years after buying the farm Ben won the supreme champion award in Wellington.

Miel says for his dad the key was being in control of milk quality on the farm. “He could interact with the sharemilker of the day about milk quality; the best way to do that is talking to your farmer not the guy you pay for milk and not Fonterra.”

Today, the farm produces 9000L during the peak season; 30% is bought by Meyer and the rest is sold to Fonterra.

Miel says having its own milk supply offers Meyer “flexibility to [manufacture] with whatever volume we like; if we want to make a batch of cheese with 3000L of milk, we can do that. We will tell Bert and he will have that ready for us.

“The next day we will process 5000L; that’s the convenience of having the milk supply on site and there’s a pipe from the cowshed to the cheese factory where the milk comes through; so it makes those decisions easy.”

Meyer’s cheese business is seasonal, based on the farm’s milk supply. “We are not forced to make cheese on public holidays and weekends; it’s easy for staff as well.

“Gouda is a hard, aged cheese; it ages and stores well so we have to make enough cheese in the summer, during the flush from September to March, and forecast what

Freshly made cheese in brine.

MILK QUALITY CRUCIAL MIEL MEYER says milk quality is extremely important to the business.

“We get the same milk every day; there are seasonal changes in the milk solids component so it changes gradually as the year goes by.

“Those small changes are easy to notice for the cheese maker “Imagine getting milk from the wetlands one day, the highlands the next day, from different parts of the country with drought in one area and wet in another; the milk would be very different.

“To make the same cheese two days in a row from milk that’s come from different parts of the country is hard.

“We see a difference when it’s sunny one day and the milk comes through; then if it rains the next day the milk is different.”

we can sell during winter.

“It’s a seasonal business; right now we are taking most of the milk as they are slowly drying off; in the flush we take 30% and the rest goes to Fonterra.

“That’s a good set-up; we are lucky that we are not forced to take all the

milk because that would be a big problem for us; we can only deal with 5000L/day.”

This year Meyer hopes to produce 50 tonnes of cheese; next year it hopes to make 60 tonnes. @dairy_news facebook.com/dairynews

A family affair; Miel Mayer (left) with sister Sophia and brother-in-law Bert.

DAIRY NEWS APRIL 14, 2015

10 // NEWS

More organic milk needed to quench global thirst SUDESH KISSUN sudeshk@ruralnews.co.nz

SHORTAGE OF organic

milk is hampering growth of the domestic organic sector, says Green Valley Dairy chief executive Corrie den Haring.

He says global demand is booming, and the market is short of organic butters, specialist milk powders and cream.

Green Valley owns organic dairy farms but needs more milk; it is backing the move by farmers to launch Organic Dairy Hub, a milk wholesaler.

“We have been working with Organic Dairy hub for the last two years and we

will be probably their number-one processor,” he told Dairy News. “The aim is to get enough organic and have enough available to continue to grow the market in years to come.”

OHD Cooperative will compete with Fonterra for New Zealand’s fledgling organic milk supply; next season OHD will have about 1 million kgMS from around a dozen farms, some not currently supplying Fonterra organic.

ODH will be an organic milk wholesaler only, supplying milk to local processors, and will have toll manufacturing arrangements with global marketers.

Den Haring says ODH

is a good model and mirrors organisations operating in other countries.

“You have a farmer, a milk purchaser and you have processors; the wholesaler will sell milk to a number of processors, delinking it from the New Zealand model where a co-op or individual farmer is contracted to the processor.

“If you are a big enough business, the NZ model works for you but not if you have a small business operating at the vagaries of customer demand.”

De Haring says ODH will have multiple outlets for the milk it buys from farmers. “It means over time you they can put

Corrie den Haring

some peak milk into long life products and have a base where it’s being sold and converted on a daily basis.”

He says ODH is the most positive development in the organic sector since Organic Dairy Ltd folded in Okato, Taranaki five years ago.

“It is an alternative

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mechanism that has the strong capability of being a leading force in organics and other areas.”

OHD project manager Bill Quinn says farmers won’t be involved in processing milk; they will “stick to their knitting, which is milk production on-farm”.

“The old milking stool has three legs: suppliers, processors and marketers; each is a skill and discipline in its own right.

The hub will coordinate between them; we have

marketers who want products like organic butter and we will link them with processors who can do that; we’ve got the milk.”

Quinn believes Fonterra has not been sincere with its organic suppliers in recent years, cancelling contracts to satisfy its organic growth strategy.

Fonterra’s organic milk suppliers has dropped to 73 from 127 three years ago. This has left milk suppliers and processors frustrated, he says.

Fonterra recently

announced a 45c/kgMS hike in its organic milk premium; its organic suppliers will now get $1.50/ kgMS above the conventional milk price. The co-op is also seeking an extra 600,000kgMS next season.

Quinn says Fonterra lifts its game only when another player enters the organic market. He says farmers needed an alternative market to Fonterra and this led to OHD’s formation over the last three seasons.

NEW WHOLESALER TO BE DIFFERENT THE COLLAPSE of New Zealand Organic Dairy Farmers Cooperative in Taranaki five years ago will still be fresh on farmers’ minds, says Organic Dairy Hub project manager Bill Quinn.

Quinn, helping farmers launch a new organic milk wholesaler, says there is a degree of caution to any business plan. “The Okato failure is still very much in the minds of the farmers and the wider industry.”

The NZODFC set up Organic Dairy Ltd in Okato to make cheese for export; the company folded in 2010 owing $15 million to creditors.

About 30 jobs were lost.

However, Quinn says ODH will be different. It will be selling milk only to processors; farmers will be sure of payment and receive the

market rate for milk.

“Not being a processor of milk we are doing all of our business in New Zealand, Bill Quinn under local currency and laws.

“We will be forward selling a raw ingredient therefore we will be paid 100% of the negotiated price on the following month and can pay the farmer that price.

“Farmers will be signing contracts at the beginning of the season and will know what will be paid throughout the season.”

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DAIRY NEWS APRIL 14, 2015

NEWS // 11

No rapid response to quota removal ANALYSTS HERE do not believe there will be a rapid production response to the abolition of milk quota in Europe.

That’s despite signs the ‘superlevy’ for 12 member states may have forced farmers to put the brakes on production in the three months leading up to the April 1 end of the thirtyyear-old regime.

Exceeding annual quota incurs a superlevy of €28 per 100kg of liquid milk over the limit nationally, the equivalent of about NZ$5/kgMS. A dozen of the European Union’s 28 member states are expected to breach their national quotas for the year ending March 31, triggering penalties for any of their farmers exceeding the limits. Leading the likely fines table are Germany (€300m), Poland (€160m) and Netherlands (€140m).

Farmers in Ireland, Austria, Denmark, Lithuania, Estonia, Italy, Belgium, Spain and Cyprus are also likely to be pinged, taking the penalty tally to €750m.

However, superlevy fines for the final year of quota may not impact farmers as much as in previous years, says UK industry body Dairy Co, thanks to a European Commission ruling that member states may choose to stagger superlevy payments to ease cashflow pressure.

Dairy Co notes that in January EU production eased 0.1% compared to January 2014, the first year-on-year monthly fall since June 2013. How much of that was due to producers cutting production in the face of falling farmgate prices – down nearly 20% year-on-year – or cutting feed inputs with the superlevy looming, is unclear. Feed wheat prices are down nearly 30% yearon-year, easing the milk price impact on margins.

Germany, France, Netherlands and Denmark recorded 1-2% falls in milk output in January, while Ireland’s was down 15%.

ASB rural economist Nathan Penny doesn’t believe that trend will be reversed overnight. “We won’t see the impact of quota coming off in the next few months but we will see it in the next few years,” he told Dairy News.

The EU has been gradually increasing member states’ quota in recent years to phase out the system anyway, so it is not the constraint it once was and prices are more important these days, he adds. “With whole milk powder at US$2500/t it’s just not profitable for them, particularly as European producers are some of the most costly.”

Westpac’s Michael Gordon also plays down the impact of the April 1 quota removal on the market.

“It should have come

SHACKLES ARE OFF, SAYS IRISH MINISTER IRELAND’S MINISTER for Agriculture, Food and Marine, Simon Coveney, says milk quota’s abolition is “the most fundamental change to Irish agriculture in a generation”.

“Since 1984 the industry has operated within a quota environment but now the shackles are off and the sector can start to realise its full potential,” he told a Teagasc conference to mark the occasion.

But Teagasc director Professor Gerry Boyle says expansion will not be for all. “In my view, we must clearly advise farmers that it is a case of ‘better before bigger’, efficiency before expansion, or ‘skill before scale’.”

Nonetheless, Teagasc predicts the quota’s abolition could create 15,000 extra jobs nationally within five years with every extra job in dairy and allied sectors leading to another in the wider economy.

Upgrading processing and onfarm infrastructure has already created construction jobs and milk collection businesses will need to expand considerably to cope with a target 50% increase in output, it says.

as a surprise to no-one.

There is uncertainty as to how European farmers will respond to it but it is more of a long-term issue.

The immediate pressure for now and next season is the milk price which is very low and that means the Europeans don’t have the incentive to crank up production…. The higher

Nathan Penny

cost producers are losing money at these prices.”

A big unknown is how many extra cows and heifers were mated in Europe’s summer last year, when margins were still good, in anticipation of quota’s abolition.

The European Dairy Farmers Association told Dairy News it doubted anyone in Europe would be able to answer that

question and Dairy Co wasn’t able to answer it either.

But Dairy Co’s senior analyst Luke Crossman did say that for British farmers removal of quota is an “opportunity for growth and a chance to displace imports”.

Processors would look to expand and a reduction

in imports would be welcomed.

“Key to farmer’s successes in the future will be remaining competitive on the world stage and reducing the risks associated with price volatility.

Britain is a net importer of dairy and 2003 was the last time it reached its quota limit.

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DAIRY NEWS APRIL 14, 2015

12 // NEWS

Fonterra blamed for rise and fall ANDREW SWALLOW

FEBRUARY’S PRODUCTION data released

by DCANZ last week shows Fonterra’s drought impact warning was over-the-top and explains why markets have corrected so sharply, say analysts.

“The DCANZ produc-

tion figures for February confirmed production is slowing but not nearly as fast as the market had thought it might, or Fonterra had said it would,” ASB rural economist Nathan Penny told Dairy News.

“That’s a big part of the story of why prices rose so quickly on the back of the

Fonterra’s January 29 forecast of a 3.3% fall in 201415 production compared to the 1584 million kgMS it collected in 2013-14, “reflecting the impact of dry weather on production in recent weeks”.

Penny says such a reduction was possible if the dry had continued across a wide area into Feb-

drought declaration, and have now fallen.”

Penny’s comments come in the wake of a 10.8% dive in the Global Dairy Trade index at the April 1 auction, the biggest fall in four years. It followed an 8.8% drop on March 17 wiping out February’s index gains of 9.4 and 10.1%.

Those gains followed

Global demand for dairy remains soft, says an analyst.

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ruary and March but it was “overly pessimistic”, he believes.

That’s echoed by Westpac senior economist Michael Gordon.

“As time has gone on it’s proved too aggressive…

Fonterra’s now saying there will be a 2% fall in production but even that’s looking too big which is why we’ve seen these ugly [price] numbers.”

Gordon says the question now is whether the market is simply taking out the “drought premium” or whether there is something more to it. “Over the next couple of auctions we’ll be able to tell.”

At US$2746/t, the April 1 average winning price was only 9% above December’s nadir of US$2513/t, the lowest price since August 2009.

Penny says global demand for dairy remains “pretty soft” with China seemingly still able to draw on inventory and experiencing weaker domestic demand due to a slowing economy.

“We see that [Chinese] demand picking up as we get further into the year as they are reducing interest rates and removing some housing market restrictions. Lower oil prices

should also help in China so we expect to see a lift later in the year but it will take time for that momentum to come back.”

As a result Penny says he doesn’t expect “too much to happen” at this week’s April 15 auction.

A positive in the market is growing US consumption thanks to initiatives to increase sales of liquid milk and positive publicity on the health benefits of saturated fat in butter.

“Their dairy consumption per capita has risen for the first time in several years,” he points out.

That’s mopping up more US production, reducing exports, though production is still growing thanks to the buoyant domestic market and low feed – mainly corn – prices.

“But there’s still a lot of extra milk coming onto the global market from ourselves and the EU. Demand will catch up because it’s still growing but 10% growth [in New Zealand output in 2013-14] was just too fast.”

South American production has responded to the lower prices faster but reduced exports from those countries alone will not reverse the price trend, Penny adds.

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ASB SHAVED 10c/kg off its prediction for this season’s payout following the April 1 auction, to $4.60/kgMS, and has $6.20/kgMS on the board for next season.

“That still has time on its side but the risks are on the downside at the moment,” rural economist Nathan Penny says. A fall in the New Zealand dollar against the greenback would help, but ASB isn’t expecting much movement.

Thanks to last season’s high payout most farms “aren’t under the pump yet, but they definitely will be if we have two low seasons in a row,” adds Penny.

Westpac last week said its $4.90/kgMS 2014-15 forecast, and $6.10/kgMS for next season, were under review. “It’s really not looking likely it will be over Fonterra’s $4.70/kgMS forecast now,” senior economist Michael Gordon told Dairy News. “If they had any good news I think they would have delivered it.”

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DAIRY NEWS APRIL 14, 2015

NEWS // 15

Oz supermarket milk label just ‘smoke and mirrors’ QUEENSLAND FARMERS are deriding

as “smoke and mirrors” the claims made by supermarket chain Woolworths that its Farmers Own milk brand, now on sale in 194 stores in the south of the state, are benefiting farmers and consumers.

The milk will be sourced directly from two farms in the Sunshine Coast hinterland.

It follows the launch of the Farmers’ Own brand in NSW, with milk from Manning Valley dairy farmers; in Western Australia, sourced from Margaret River; and in Victoria, sourced from the Otways region.

Woolworths head of trade - chilled, Paul Turner, says the product has “proven to be great for farmers and for Woolworths, but most importantly customers have shown they love it”.

“Local varieties [of Farmers’ Own] in other states have been extremely popular and we know it’ll be just as popular here in southern Queensland.

“At this stage, the milk will be available as far north as Rockhampton.

We’re looking for a local farmer and processor in Far North Queensland to serve our customers in that area. The whole idea of Farmers’ Own milk is to support local farmers

Tony Woodcock

so we are working hard to cover the whole state.”

Queensland dairy farmer John Cochrane chairs the Premium Milk group which collectively bargains on behalf of dairy farmers to supply Parmalat.

“We approached Woolworths and would have liked them to have taken milk from all the Premium group and given some sort of margin to 200 people,” he told ABC Radio.

“We all understand this is a smoke and mirrors thing. The real problem is the price of milk. On January 26, 2011, milk went from A$1.28/L to $1, not because of oversupply or

poor quality or customer rejection, but because they could do it.

“Now, A28 cents/L [times] 2 billion L of milk in Australia [took] A$560 million out of the industry in one day.”

He said Woolworths uses the “divide and conquer rule” but this does not benefit the dairy industry in any state.

Dairy farmer Lucas Kennedy, Conondale, one of the two Queensland farmers to supply the Farmers’ Own brand in Queensland, said the relationship “gives farmers end-to-end transparency from shed to shelf, a long term contract and a closer

Woolworths has launched its milk label in Queensland, irking local dairy farmers.

relationship with their customers”.

Kennedy told ABC Radio the deal gave him more negotiating power

when setting a price, which is locked in for three years. He could not disclose how much he is paid per litre, but said

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DAIRY NEWS APRIL 14, 2015

16 // NEWS

Chinese farm operator bags double awards SHANGHAI PENGXIN’S subsidiary Milk New

Zealand Holdings won two prizes at the recent BNZ New Zealand Chinese Business Awards.

The operator of 16 North Island dairy farms

formerly owned by the Crafar family won the Emerging Business Award and the overall Supreme Business Award.

Accepting the awards, the managing director of Milk New Zealand Hold-

ings and representative of Shanghai Pengxin Group, Terry Lee, said prior to November 2012 Milk New Zealand Holdings did not have any operations in New Zealand and “growth had taken place

very quickly over the last two year”.

In November 2012 the company bought the 16 farms from the liquidator, and six months later it reached agreement with the Maori owned dairy

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processor Miraka to produce UHT milk for export to China.

Last year Milk New Zealand became a majority shareholder in 13 dairy farms owned by Purata (formerly Synlait) Farms; in July 2014 Milk New Zealand Holdings applied to the Overseas Investment Office to buy Lochinver Station in the central North Island.

Lee says in November 2014 Chinese President President Xi and New Zealand Prime Minister John Key “witnessed our three way agreement with Miraka and Mengniu to work together to accelerate the expansion of the UHT plant”.

“Today, our own branded Theland and Mengniu’s Milk Deluxe, Global Selection are supplying Chinese consumers with high quality UHT milk.” Lee says it was gratifying to win the awards but the real wins are taking place on the company’s farms.

“We understand the affection New Zealanders hold for their land and have always emphasised that we see our role is as guardians of the land, committed to developing productive and profitable operations which are economically, environ-

mentally and socially sustainable.”

Some examples of those initiatives include ■■ The first farming company to introduce a long term incentive scheme enabling 12 people from Purata Farms to hold shares in the company.

Since the settlement of North Island farms: ■■ Sixty houses have been renovated, and four additional houses built for farm staff.

■■ Around 1500 gateways have been installed for health and safety reasons.

■■ Two new farm dairies have been built.

■■ Water reticulation has improved with 900 additional water troughs.

■■ 300km of fencing has been erected to protect riparian and sensitive areas of land.

■■ Extensive regrassing – around 800ha -- is contributing to animal health and productivity.

■■ LEAN manufacturing (a method of eliminating waste) is in place on the South Island farms, the first use of this in farmingr. Milk New Zealand Holdings are active proponents of the approach.

IN BRIEF Tactics for tight times DAIRYNZ IS running a second series of onfarm Tactics for Tight Times events from April to June to support farmers through the low milk price season.

The first events, February and March, emphasised the linking of careful budgeting with farm goals, DairyNZ’s Carolyn Bushell says.

Bushell says dairy farmers are business managers, so clarity of purpose and a plan to achieve goals is crucial.

“The difference between those who will get through volatile times and those who won’t is the existence of a cashflow budget for the next 18 months, linked to a plan,” she says.

DAIRY NEWS APRIL 14, 2015

NEWS // 17

Farmers face the music over work law breaches NINETEEN DAIRY

farm employers face ‘enforcement action’ for 71 breaches of employment law discovered during a

three month investigation

by MBIE. Some of the employers may be taken to the Employment Relations

Authority.

Labour inspectors visited 29 dairy farms in nine regions. At least 50% of the farms were targeted

due to likely non-compliance.

The level of non-compliance discovered was “extremely high”, says

Snared farmers not necessarily dodgy IT’S PROBABLY unfair to sug-

gest that dairy farmers caught out

by MBIE during its crackdown on employment conditions are deliberately disadvantaging workers, says Rose Powell, director of Fourth Monkey Ltd, HR and business advisory services.

But employment law is not optional and ultimately it protects businesses and employees, says Powell.

The breaches uncovered by the MBIE investigation suggest that in the dairy industry, customary practices and tradition have often determined the approach to employment and record keeping, Powell says.

“Employers must get the essentials right and in this technological age it can be relatively easy to keep electronic employee records.”

The ‘must dos’ to be compliant are: ■■ Retain for six years all records of employee wages, times worked, holiday and leave, and make them available to employees, their unions and labour inspectors if requested ■■ Pay workers in cash – not in ‘kind’— by cheque or currency, or credit transfer to their agreed bank account ■■ Ensure your people are entitled to work in New Zealand.

■■

■■

■■

Agree in writing the terms of employment, the reasons for any fixed term and why the employment will end, the wages and agreed hours of work (these can be flexible) Understand the Holidays Act: casual workers can be paid 8% of wages as they go, as holiday pay; seasonal or fixed-term employees are paid 8% at the end of the term.

Sick pay and bereavement leave applies to all workers (except contractors) after six month’s employment, as does parental leave (depending on hours worked). – Pam Tipa

Natalie Gardiner, MBIE labour inspectorate central regional manager.

Many farmers still do not keep accurate time and wage records that comply with legislation.

Most breaches related to poor record keeping but several farms were breaching minimum wage rules.

Nine serious cases may end up with the Employment Relations Authority.

“The ministry takes seriously the exploitation of workers and is [cracking down on it],” says Gardiner. “Breaches will be subject to compliance action and potential penalties of up to $10,000 for individuals and $20,000 for companies.”

DairyNZ spokesman Mark Paine says the industry must lift its performance. “These latest

Some dairy farmers have been found breaching employment rules.

findings point to a number of farmers still not meeting the minimum requirements… disappointing because we’ve been doing a lot of work with our farmers in this area.

“Employment conditions on dairy farms are critical to attracting and retaining talented people.

Many farmers are making

progress. But… we still have a way to go before minimum standards are achieved in the entire sector.”

DairyNZ is working with Federated Farmers and others to develop a quality workplace, holding training workshops and developing online farmer advice and resources.

DAIRY NEWS APRIL 14, 2015

18 // NEWS

Dairy outlook, science to feature at forums PAM TIPA pamelat@ruralnews.co.nz

THE LATEST outlook for dairy farming and a selection of ‘Hot Science’ topics will feature at the DairyNZ’s regional farmer forums which kick off in April.

Either DairyNZ chief executive Tim Mackle or the general manager R&D David McCall will describe the industry’s challenges and opportunities.

Rabobank’s director of dairy research New Zealand and Asia, Hayley Moynihan, will discuss the global environment and the implications for the New Zealand industry and farmers’ businesses.

She will look at how farmers globally are reacting to the tough market and discuss how market changes, particularly in Europe and the US, will impact this country.

Moynihan will also present an economic outlook for China.

DairyNZ developer Dana Carver will lead a session on farmer wellbeing and

the importance of managing stress and avoiding burnout.

In the ‘Hot Science’ sessions different topics are being tailored to each forum.

In Kerikeri and Balclutha, Managing for Tight Times will see DairyNZ senior scientist Kevin Macdonald and farms systems specialist Chris Glassey emphasise how with a lower milk price and dry conditions, farmers need to rely on the basic principles of science established in recent decades. They will outline appropriate body condition score, adequate calf feeding and production at high levels.

Does feeding grain to cows lead to better in-calf rates? In Stratford and Balclutha, DairyNZ team leader- reproduction Chris Burke will explain the results of a field trial last spring and whether they support an earlier experiment showing that cows fed on maize or grain barley in early lactation cycled earlier and had better in-calf rates.

Also, in Stratford and Balclutha, the popularity of wintering barns will be

FORUM DETAILS ■ Northland, April 21, Kerikeri, The Centre ■ Taranaki, April 23, Stratford War Memorial Hall ■ Otago/Southland, April 29, Balclutha, Cross Recreation Centre.

discussed by DairyNZ project manager people and business, Geoff Taylor.

He will look at the latest research and examine the issues in investing in one of these structures.

Senior scientist Pierre Beukes will speak at Kerikeri and Balclutha on reducing footprint while maintaining profit, analysing lessons learnt a threeseason trial comparing a low nitrogeninput farm with a control farm.

In Kerikeri and Balclutha, DairyNZ scientist Cathal Wims will examine how much gain has been achieved from perennial ryegrass breeding over the years and look at the connection between sowing rate and pasture performance.

Tim Mackle

A session in Stratford by DairyNZ forage value manager Cameron Ludemann will discuss the DairyNZ Forage Value Index and its development, including the incorporation of pasture quality and persistence traits into the evaluation.

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DAIRY NEWS APRIL 14, 2015

WORLD // 19

Prices will rise once stocks go AFTER AN encourag-

ing rise, then fall, in dairy product prices in the first quarter of this year, milk producers and manufacturers are again looking for the upside as planning for next season is either well underway or done for most.

The market is still out of balance: available product supply overhangs expected short-term demand from importers, such that exporter stocks of product are relatively high and, according to our numbers, still building.

The uncertainty of what lies ahead weighs on dairy product buyers. Why commit to bigger orders now when prices could be lower later, and there is already plenty on hand?

That’s commodity-trading 101.

Why so? The US industry is expected to keep growing. Milk prices might be falling but feed (mostly corn and soybeans) is cheap and plentiful.

Europe has meanwhile entered its quota-free era with competitive producers threatening expansion of production at a time when the Eurozone economy – and the affordability of discretionary dairy spending – is getting weaker.

With a smaller cheese export market arising from the ongoing spat with Russia, much of the threatened growth in supply will head into milk powder production.

These pressures aren’t new and have been building for some time. So it is the outlook for the demand side of the market that matters most if it is to recover quickly.

Several things have upset global import demand in the past year.

The hangover from the crash in prices that started a year ago created an abundance of cheap product, allowing price-sensitive buyers in SE Asia, the Middle East and North Africa to stock up, after being shut out in 2013 by the surge in prices. They are still working through those stocks, and now they aren’t buying as much.

But it’s probably the shrinkage of orders from well-stocked Chinese

buyers since the middle of last year that has created the greatest worry, especially for the managers of Fonterra’s GDT platform, which is triggered to fall if buyers don’t show up in the virtual trading room.

The belief was that China is structurally short and would be forced to keep buying higher volumes of imported ingredients into the medium term.

So, when will China run low on stocks and come back to the market with gusto? There are no easy answers to this question.

China is one of the least transparent regions in respect of its own production, product mix and retail demand, let alone insight on what stocks it holds.

This is a far cry from the nirvana in the US where all of this is gleefully reported to the USDA and published freely.

The stock of milk powder in the Chinese industry is driven by significant local powder production from domestic milk supply (which meets about 80% of dairy requirements), powder imports and consumption growth in a range of drinks and applications.

The only hard data that exists on these three is the volume of imports, because it comes from the governments of countries supplying China. The rest has to be bravely assumed, which we’ve had a crack at.

Various in-country studies have been done in recent years to create some anchor points for these variables, sufficient to allow us to create an index of powder stocks over time.

To cut short a long and technical story, the stocks barometer shows the Chinese market is still munching and guzzling through a large stockpile of WMP. This is the reverse of that in South East Asia and Middle East/North Africa: China seems to be working through a mountain of high-priced stocks built when the market was at its peak, which it is probably ‘shandying’ back into its market.

Many variables affect this situation. Local milk production is reported to have posted a decent recovery in 2014 (resulting in more local powder) but it has been weakened by

the recent slump in farmgate milk prices with an oversupply of product.

Meanwhile the retail market is a little more sensitive to prices these days, now that the days of double-digit economic growth have passed.

The chart (right) shows our stocks index at the end of February 2015. The esti-

mated ‘threshold’ line is important. It shows China is likely to be currently holding reserves well above a likely threshold for re-entry to the market, and is still building based on early 2015 shipments.

Buyers won’t come storming back to the market until those stocks get uncomfortably low

again.

The market will get better: developing world markets are growing faster than production from the New Zealand, EU and US industries can muster.

Once stocks are depleted, expect a turn.

• Steve Spencer is a director of Fresh-agenda, a food and agribusiness consulting firm.

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DAIRY NEWS APRIL 14, 2015

20 // WORLD

Oz ‘downplaying agri-food sector’ THE NETHERLANDS

is the second largest exporter of food in the world – exporting AS$70 billion each year from a landmass of 42 square kilometres and a population of 17 million people.

The vital ingredient for success is a close collaboration between the “golden triangle” Government, private industry and universities and research institutes, according to Dr Aalt Dijkhuizen.

Dijkhuizen, who spoke at the Dairy Leaders lunch in Melbourne recently, is the President of the Dutch Topsector Agri & Food, a collaboration and innovation network between government, private industry and universities and research institutes.

More recently, he established the Holland Centre in Shanghai to support Dutch agri-food companies doing business in China.

“The Australian R&D

community and academic institutions are world class but I am not sure Australia currently has the necessary alignment of all major stakeholders involved outside of the ‘cooperative research centre’ model, which is limited by its domestic focus and short term nature,” he said.

“Successful partnerships need to be at a very senior level, selective and international and intended to last long term.”

Dijkhuizen said Australia did not give its agrifood sector the merit it deserved in terms of its place in the economy’s future development.

The Australian Government needs to invest or it could miss out on the opportunities in Asia.

“Increasing wealth in formerly poorer countries will mean a strong increase in the global demand for safely produced high-quality protein,” Dijkhuizen said.

Aalt Dijkhuizen

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“Based on overseas experience I believe Australia could accelerate food security and export outcomes with improved cooperation at the highest level among government, private industry and knowledge institutes, which would be best encouraged through more government support for R&D and collaboration.

“This partnership culture is not as evident in Australia as I have seen in other countries.

“While this culture is immensely beneficial, it doesn’t happen automatically and there is a strong role needed from government to stimulate policies and projects in which all three partners benefit.

“A new high-level innovation model could bring unprecedented opportunities and commercial benefits - even more so if the government supports R&D and additional international collaboration,” he said.

Dijkhuizen said the Topsector policy works

because the top sectors get more attention and grow faster than other parts of the economy.

“That combination of government, private industry and science, we call it the golden triangle.

“You will see in many countries they don’t work together at all. You don’t have to agree but you share and discuss your ambitions and targets together.

“You need to build mutual trust, at the end of the day you have to trust each other. With the golden triangle, scientists have more funding than ever.”

Dijkhuizen said finance was a crucial part of the production chain and Rabobank has invested in Holland’s agri-food sector for decades. “Rabobank has been very committed to invest and it needs to be committed funding to make progress. Finance people need to understand the dynamics in your business, otherwise you get finance under wrong conditions.”

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13/03/14 10:45 am

DAIRY NEWS APRIL 14, 2015

22 // OPINION RUMINATING

EDITORIAL

The heat is on, time to act

MILKING IT...

Change for the Green sake of change? deception

Lewis to cream the south

Second opinion?

FONTERRA HAS wisely decided to stall the expensive rebrand of RD1 to Farm Source.

The proposed new shareholder loyalty programme will go ahead as planned, but rebranding of the stores and milk tankers and other such changes to the ‘paint job’ are on hold until the payout recovers.

At the recent South Island field days the new Farm Source brand had replaced the RD1 nameplate, but compared to the bright orange and green livery of RD1, the new branding was almost invisible.

INCREDIBLY POPULAR Lewis Road Creamery chocolate milk will be available in the South Island this winter.

South Island retailers will get their stocks thanks to the construction of a second milk processing plant.

The company has had swags of requests from South Island retailers wanting the chocolate milk, which caused a buying frenzy in North Island supermarkets at the end of 2014.

The World Health Organisation recently declared that glyphosate was “probably carcinogenic”, causing a bit of a fuss given the ubiquity of Round Up and its clones.

But did this eager offshoot of the United Nations properly assess the threat of glyphosate before setting the cat among the pigeons? No new studies were done, rather 17 experts were asked to review publicly-available studies about glyphosate then issue their assessment of the risk.

The same process apparently led this august body to declare night shifts and hairdressing as “probably carcinogenic” and coffee as “possibly carcinogenic”.

ENVIRONMENTAL LOBBYISTS will go to any length to push for fewer cows in New Zealand.

Recently there was a flurry of media releases and comments from the Greens and other enviro watchdogs after a Federated Farmers executive raised the issue of a moratorium on dairy conversions in Waikato.

Feds Waikato president Chris Lewis says he suggested some reasons for and against it – “then boom, we have a big headline, misinterpretations and misrepresentations!”

Get a life, greenies.

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THE HEAT was certainly on the last round of Fonterra farmer meetings, as almost 2000 farmers turned up to hear the co-op explain its dismal half-year results.

No doubt Fonterra is facing a supplier crisis of confidence; it risks haemorrhaging milk to independent processors.

The half-year results make poor reading: profit and revenue are down on last year and the co-op has sliced its dividend payout by 5c. It’s a small drop but this is a difficult year for many farmers: after a record 2013-14 season many are struggling to stay afloat on a $4.70/kgMS forecast milk payout.

We hear that farmers have been blunt at the meetings – putting Fonterra on notice to shape up the business or risk losing suppliers.

With the forecast payout at $4.70, Fonterra’s production costs would have been much lower than last year and its margins higher.

This had left farmers expecting an increase in the forecast dividend.

There had been no warning and farmers had invested heavily in Fonterra’s value-added business, counting on that to ease the misery of a season to forget.

Fonterra has been forced to drop its dividend forecast by 5c/ kgMS. It blames higher milk prices in some overseas milk pools for squeezed margins. In Australia, Chile and Brazil milk prices are influenced by in-market dynamics rather than global prices.

Farmers are right to put Fonterra on notice; there should be some serious soul-searching going on there now.

For its part, Fonterra admits the results are below farmers’ expectations; they blame it on the tough conditions in the dairy industry. It is asking farmers to remain cautious in their budgeting, given the volatility still buffeting international commodity prices.

But farmers are understandably disappointed with the co-op.

The Fonterra Shareholders Council is worried that suppliers may leave the co-op in droves. Certainly the risk of losing milk will worry the co-op, and angry long-term loyal suppliers will be an even bigger worry. They probably won’t leave, but they’re mighty disappointed and want answers.

The half-year result was the tipping point for farmer-shareholders agitating to know how comparatively tiny milk processors which don’t require suppliers to buy shares could match or better Fonterra’s milk price in a tough global market year.

The council urged farmers to voice their concerns to the board and management; they did so at the 40 meetings last month.

The ball is now in the Fonterra board and management court.

They must salvage farmer confidence, and quickly.

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DAIRY NEWS APRIL 14, 2015

LETTERS/OPINION // 23

Dutch way or Kiwi way GETTING TO have our say (and heard) at farmer level is not easy, but your article regarding another Dutchmans approach to New Zealand dairy farming (Dairy News March 24)has to be responded to, whether it gets read or not.

Here Wayne McNee, one of the few whom I have read as saying what we all think – the Dutch way is the Dutch way, that doesn’t mean it’s the Kiwi way.

Why do we constantly have to read about how the dutch do it better and that is going to be good for our production, environment and the animals, oh and reputation. Rubbish.

Actually, if anyone has ever been to Holland, then they will notice like I did for years and years of doing business there, that it is small, wet, over populated and expensive. They are extremely efficient at having a whole lot of people and cows packed into small spaces and that is no good for either. Cow barning is not a natural state for Kiwi dairy cows and they run their rumen production machine better on space, weather and green pastures. Just because we have a Dutch CEO (of Fonterra, and a string of them in the business) doesn’t factor that we should run things the Dutch way, especially when it comes to housing cows.

The expense of cow barning and filling up with supplementary feed is hugely expensive and the environmental carbon footprints of producing and carrying that supplement far outweigh the costs of good effluent and pasture management. As a small herd farmer, surrounded by coastal and river water (google map our farm) we have done the best production this year, ever.

This is our first farm, in our first year, with less cows and half the PKE supplement

(of previous year) and with great cow condition. We have looked at barns and the expense doesn’t work – it’s a luxury and for whom? – the herd home builders. Barning in Holland is because they have too. We don’t, won’t and I get offended at how often we are having to read about it from “experts” of overseas.

Don’t get me wrong, I don’t mind the experts (I’m not one when it comes to my short 5yr dairy farming experience), but having spent my career (previous) in European pharmaceuticals in marketing and sales I do know that when it comes to what we do with the amount of milk we produce, we could be doing it much better! niche better.

What happened to the niche marketing from the green pasture dairy herds of New Zealand? What happened to organic?

Now a renewed strategy by Fonterra who have lost 5-10 years of groundwork because the executives/experts didn’t think it was a flyer back then. It’s like saying now that we need to produce more because the dairy demand is increasing - that’s like saying we need more oil because the demand is more – no actually we need to niche our products, sell better, market into better products and make more money from our milksolid. We are not responsible for the world’s demand for milk powder, we are instead responsible for feeding our own, and making our MS into better value products before they leave our shores.

So, keep feeding our cows green grass in a way that only we can offer them in New Zealand, on green paddocks outside! and leave the Dutch “experts” do it their more expensive way in their own country, and if our Dutch CEO would focus more on what our country needs to do with high value niche markets and products

and less on what his own country is doing, then we can truly back our own farmers better, in what we are doing that is niche, high value, globally desirable, grass, cost and environmentally efficient.

Deborah Rhodes (nee Sharplin) Golden Bay

Despicable act THE THREAT to add toxins to the food supply, should we not also be investigating other acts of ecoterrorism such as: Importing thousands of tonnes of genetically engineered (GE) animal feed when most people in export markets do not want

GE food, nor the high levels of herbicides associated with them, and new agricultural practices.

Development of crops genetically engineered to withstand herbicides banned by our biggest importer and associated with deaths and illness in the dairy herd.

Continued certification of pesticides and their additives untested for safety, including pesticides toxic to honey bees, banned by the Environmental Protection Agency in USA, thus threatening the honey export industry and agriculture generally.

Farming groups fighting local councils on the right to exercise precautions against the threats of GE crops – crops that to date have no other purpose than to allow more toxic pesticides to be sprayed on them.

Frank Rowson Matamata

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DAIRY NEWS APRIL 14, 2015

24 // AGRIBUSINESS

Innovation Park companies Website makeover show buoyancy RURAL NEWS Group, publishers

COMPANIES IN the Waikato Innovation Park, most of them farmingrelated, are reporting healthy financial growth, the park operator says.

A recent survey of 34 tenant companies is said to have shown the respondents’ collective turnover is up 18% from one year ago. The park says 79% of firms surveyed reported some financial growth, averaging 33%.

Thirty-three of the 34 park companies who responded to the annual survey collectively reported gross turnover of $188 million. Last year it was $160 m.

“Eleven of our companies have turnover greater than $3 million – one more than reported reaching this level last year,” says the park chief executive, Stuart Gordon. “56% have turnover between $250,000 and $3 million, up from 48% last year. Only three of our companies have turnover of less than $250,000, which is an 8% drop from last year’s survey results.

“The companies… are doing well.

Revenues are growing [generally]… with the same number or fewer staff.”

In January 2013, surveyed companies

Stuart Gordon

employed 1213 staff. Now they employ 1183 staff, 421 of them working at the park. 60% have fewer than 10 full time employees, down from 62% one year ago.

“Finding the right staff is difficult for many of our companies: 1:5 companies (21%) identify staff recruitment as a major challenge,” says Gordon.

While the Waikato Innovation Park companies are growing their

revenues, slightly less of that turnover is reportedly coming from exports.

Seventy-nine percent of the survey respondents are actively exporting, which is down slightly from 83% this same time last year.

“Of those companies exporting, the United States has gained ground as a trading destination. Fifteen percent of our exporters are doing business in the States, which is up from 8% last year,” says Gordon.

“Surprisingly, China now only represents 6% of our exporters’ total markets, which is down from 9% last year.”

Twenty-three percent of Innovation Park exporters trade with Australia, which has grown from 14% one year ago. Europe has also grown from 19% to 25%.

“A delightful surprise in the results was that over 75% of respondents are actively engaged in research and development of new products or services. This is up significantly from 58% just one year ago,” says Gordon. @dairy_news facebook.com/dairynews

of Rural News, Dairy News and New Zealand Winegrower, has a new-look website featuring more regular news updates and encouraging greater online interaction with our readers.

Developed over several months with the help of external developer Jeremy Warne, the redesign has a more modern look which will be familiar to many readers of online news, says Rural News online editor Emily Gordon.

Changes to the site include a single home page that combines stories from the company’s three major publications Rural News, Dairy News and New Zealand Winegrower, Gordon says.

“In its previous version, the publications each operated as individual sub-sites, with little crossover between them. However, while the new site has maintained this division to some extent, visitors can now also choose to access the latest content in one central place, making

browsing easier.

“Other improvements include the addition of sections not previously available online such as sidebars dedicated to the Rural News ‘Hound’, and the Dairy News ‘Milking It’ columns.”

The new site also has an events calendar for the rural community. The calendar is located on each page of the site down the right side, informing about upcoming conferences, field days and other events nationwide.

People wishing to list their rural events on the website can email details to webproducer@ruralnews.co.nz.

For advertisers, there are some improvements too, with several more ad spaces now available and a single location in which to download mediakits.

To check out the new site go to www.ruralnewsgroup.co.nz.

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DAIRY NEWS APRIL 14, 2015

AGRIBUSINESS // 25

‘Benchmark’ farm wins environment award A WAIRARAPA farm

said to set the benchmark for performance in all facets of farming, has won the 2015 Greater Wellington Ballance Farm Environment Awards (BFEA).

Leo and Rebecca Vollebregt milk 580 cows south-east of Featherston, working to create “an attractive, productive and profitable farm that everyone enjoys working on”.

The BFEA judges say the Vollebregts are leaders “setting the bar for performance in all aspects of their business”. The farm is efficient, well-structured and impeccably tidy, with excellent profitability.

The 289ha farm includes a 154ha effective home block divided

by Pahautea Road and partially bounded by the Ruamahanga River stop banks.

The main milking platform is supported by four runoff blocks (totalling 118ha) located within 17km of the home farm.

Contract milker Emma Moffitt and her two staff milk two herds through a 40-aside herringbone dairy; they produced 203,000kgMS last season.

Seven years ago the Vollebregts decided to switch to once-a-day milking.

While per cow production has decreased slightly, per hectare production has risen, the calving period has shortened and the empty rate has reduced markedly.

The judges say the farm is achieving top production at a lower cost. The Vollebregts are good at growing grass for high production and “great care is taken not to damage the pasture”.

The couple have excellent knowledge of soil types and requirements, the judges say. Land has been improved as it’s brought into the operation.

About 60% is artificially drained and the milking platform is irrigated via K-Line, with soil moisture sensors installed.

Pockets of native bush have been fenced to regenerate, and a lagoon next to one bush area is fenced.

Riverbanks were fenced and planted 14 years ago.

The farm has excellent infrastructure, weed and effluent management and pasture renewal, the

judges say. And it has an “impeccable capital structure well-planned and executed, allowing financial choices for themselves and family”.

Leo Vollebregt oversees the farm and looks after the young stock and runoffs. Rebecca works as a

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Dairy shed sensor firm eyes prize is a finalist in two categories of the New Zealand Hi-Tech Awards.

The Hamilton firm, soon to be renamed LIC Automation, makes sensor technology systems for dairy sheds, for real-time milk analysis.

Its CellSense system is a finalist for the Endace Innovative Hi-Tech Hardware Product award, and its YieldSense system is up for the NZTE Innovative Agritech Product award.

CellSense meters measure somatic cell counts for early detection of mastitis. It is the only fully automated in-shed in-line somatic cell count sensor in the world, the company says.

YieldSense is a combined full-flow milk meter and milk component measuring device that measures the milk from each cow during milking. The sensor analyses yield, fat, protein, lactose, conductivity and plant wash.

Both systems integrate with LIC’s Protrack automation systems, so the farmer will be alerted to any cows seen by the sensor systems as needing closer inspection or treatment, and such cows will be automatically drafted at the end of milking.

DAL chief executive Gustavo Garza says, “the sensors are highly regarded by farmers in New Zealand, and demand from farmers overseas is increasing. Sensor technology has the potential to revolutionise herd testing and LIC is proud to be at the forefront of this technology.”

The winners will be announced in Wellington on May 15.

nurse in Carterton.

The Vollebregts, who have six children aged 17 to 25, are active in the community. He chairs the Wairarapa Water Users Group.

A BFEA field day will be held on the Vollebregt farm on April 22.

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DAIRY NEWS APRIL 14, 2015

26 // AGRIBUSINESS

Small herd bloggers aiming big LOUISE HANLON

JUST BEFORE Christmas, Smaller Milk and Supply Herds (SMASH) initiated a novel way for

farmers to share their experiences and knowledge – blogging.

Farmers gain much from going to events and talking with other farmers, or chewing the fat over the

farmers.

For the four new farmer bloggers, Noldy Rust, John van der Goes, Brian Frost and Trent Guy, the process has

fence with the neighbour, but sometimes they don’t have time to get off the farm. Reading the blogs and sharing comments online opens up a new way of connecting with other

put them on a steep learning curve. As Rust says, “It

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can be hard work sitting down each month and creating a new blog entry, but it’s rewarding when you see the finished product on-line, and realise there are a lot of people getting benefit from reading it”.

To date the blogs have covered topics as diverse as growing tall fescue, the trials of combating mastitis, dealing with effluent council compliance and getting cows in calf.

But it is not all about the technicalities of running a farm; it also gives people the chance to share the ups and downs of farming life, from coping with the weather to fitting in a well-deserved break over Christmas.

There is the chance to learn from other people’s successes, and failures, and the bloggers have an honest and open approach to sharing both, as can be seen in the following snippet from Trent Guy’s latest blog entry: “Unfortunately after my little Christmas getaway I came back to a rapidly rising SCC and after stripping the herd and pulling eight clinical mastitis cows out we still saw little change in the bulk SCC. “So we needed a plan.

We talked to our local

vets and we decided do a machine check, bring our next herd test forward and then look at the high SCC cows. The plan was implemented and LIC was called to see if it could be done ASAP. Fortunately they could do one in three days, which luckily for me happened to be when my father was coming to visit… yeah, free labour! A machine check was done, revealing that the shed was running perfectly.

“So the three days rocked around quickly and we got the herd test out of the way. Then the waiting game.

“So we got the results and they weren’t too flash: there were 30 cows in the millionaires club – not a club we want to have cows in. We then decided to pull the top 60 cows out on SCC and run them as a separate herd, thus hopefully reducing any spread to otherwise healthy cows and to monitor the 60 cows and take further action as needed.”

The SMASH team hopes the blog readership will continue to rise, and more bloggers will sign up.

Find the SMASH blog at https://smallerherds. wordpress.com/ • Louise Hanlon is a SMASH committee member.

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DAIRY NEWS APRIL 14, 2015

28 // AGRIBUSINESS

Career-minded awards finalists heading for big night out THE FINALISTS for the 2015 New

Zealand Dairy Industry Awards have been confirmed.

After 11 regional competitions, the 33 finalists will head to a black-tie event at Sky City, Auckland on May 2 where the cream of the crop will be announced.

National convenor Chris Keeping says the regional competitions have again surprised, the finalists having emerged to contest the New Zealand Sharemilker/Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year competitions.

“We’ve had some amazing and entertaining regional awards dinners across the country, capped off with 500 people attending the Southland/Otago regional final in Gore late last month,” Mrs Keeping says.

“Our voluntary judges have picked fantastic winners who are doing excellent work driving efficiency and environmental performance on farms all

over New Zealand. Most are also active in their communities.”

She says the 11 finalists contesting the sharemilker/ equity farmer contest include seven traditional 50% sharemilkers, one lower order sharemilker and two in equity partnerships – both equity farm managing.

“It highlights the changing nature of positions available and types of farm structures being developed to enable people to invest in the industry and to grow equity.”

Keeping says the farm manager finalists are diverse and represent the range and type of people being attracted to the dairy industry.

“We’ve got a 56-year-old who has been dairy farming for 32 years and in stark contrast to that we have a former professional rugby player just beginning his career in dairying. Both have entered the contest to develop their

Ruth Hone became the first woman to win the Dairy Trainee of the Year title in 2014.

skills and enhance their reputation.”

Three of the farm manager finalists have previously won places in a regional dairy trainee competition.

“It’s heartening to see we have two female finalists among the six farm managers and five contract milkers contesting the final.”

There is a sole woman contesting the dairy trainee contest, up against 10 men and following history – as Ruth Hone became the first woman to claim the New Zealand Dairy Trainee of the Year title in 2014. www.dairyindustryawards.co.nz

Cream of the crop 2015 New Zealand Sharemilker/Equity Farmer of the Year finalists: ■■

Northland, Brad and Lesley Roberts 25% sharemilking 900 cows, Kamo

■■

Taranaki, Rob and Mel Van den Brand 50% sharemilking 210 cows, Manaia

■■

Auckland/Hauraki, Evan and Jan Billington 50% sharemilking 680 cows, Ngatea

■■

Hawkes Bay/Wairarapa, Matt and Tracey Honeysett equity farm managing 1200 cows, Kahutara

■■

Waikato Aaron, Price 50% sharemilking 250 cows, Morrinsville

■■

■■

Bay of Plenty, Grant and Karley Thomson 50% sharemilking 420 cows, Opotiki

West Coast/Top of the South, Kelvin and Heather McKay equity farm managing 285 cows, Greymouth

■■

Central Plateau, Johan and Theona Blom 50% sharemilking 270 cows, Ngakuru

Canterbury/North Otago, Justin and Melissa Slattery 50% sharemilking 550 cows, Culverden

■■

Southland/Otago, Jono and Kelly Bavin 50% sharemilking 500 cows, Tussock Creek.

■■

■■

2015 New Zealand Farm Manager of the Year finalists: ■■

Northland, Karla Frost farm manager 250 cows, Dargaville

■■

Taranaki, Lance Chadwick farm manager 350 cows, Toko

■■

Auckland/Hauraki, James Foote contract milking 425 cows, Miranda

■■

■■

Waikato, Paul and Kate Manion contract milking 485 cows, Cambridge

Hawkes Bay/Wairarapa, Rowan Gilvary farm manager 900 cows, Featherston

■■

Bay of Plenty, Jodie Mexted farm manager 530 cows, Whakatane

West Coast/Top of the South, Thomas and Hannah Oats contract milking 350 cows, Reefton

■■

Central Plateau, Nathan and Elri Levin contract milking 650 cows, Tokoroa

Canterbury/North Otago, Mark Cudmore farm manager 586 cows, Cheviot

■■

Southland/Otago, Nick Templer and Anieka Venekamp, contract milking 650 cows, Balfour.

■■

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■■

Manawatu, John Wyatt farm manager 460 cows, Kairanga

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Northland, Mike Jensen 2IC 500 cows, Waipapa

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Taranaki, Michael McCombs assistant manager, 220 cows, Patea

■■

Auckland/Hauraki, Royce King 2IC 530 cows, Paeroa

■■

Hawkes Bay/Wairarapa, Grace Stephenson 2IC 205 cows, Dannevirke

■■

Waikato, Brett Steeghs farm assistant 420 cows, Horahora

■■

■■

Bay of Plenty, Jeff White 2IC 620 cows, Pongakawa

West Coast/Top of the South, Danny Mitchell farm assistant, 400 cows, Koromiko

■■

Canterbury/North Otago, James Davidson farm assistant, 1400 cows, Darfield.

■■

Southland/Otago, Jeremy Anderson 2IC 940 cows, Otautau

■■

Central Plateau, Gerard van der Mark 2IC 900 cows, Mangakino

■■

Manawatu, Blake Moore 2IC 750 cows, Opiki

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DAIRY NEWS APRIL 14, 2015

MANAGEMENT // 29

Little to lose by retiring land GARETH GILLATT

RETIRING LAND as

a wetland or conservation area returns more than it costs, according to Hikurangi dairy farmer Steve Brown.

One of the volunteer farmers in the 10 year Fonterra-DOC $20 million Living Water scheme to improve the natural habitat of five key New Zealand waterways, Brown has set aside a quarter acre of his farm to be used as a monitored wetland.

Steve and his partner milk 440 cows on a 180ha which has a 50:50 mix of rolling hills and river flats on Northland’s productive Hikurangi River flats.

Their farm is part of the Hikurangi catchment 55,000ha feeding the Northern Wairoa River, the main tributary of the Kaipara Harbour. This is a key river in the Living Water scheme.

Brown says a Fonterra sustainable dairy advisor approached him about setting aside land for a wetland. “George learned about a piece of land I had fenced off while he worked for the Northland Regional Council. He asked me if I might be willing to do it again.”

The couple already have a piece of fenced wetland

on their property, a small block of swampland they let revert to native bush not long after they bought the property 10 years ago.

When they took over the property Brown noticed a grove of kahikatea and swamp miro in the corner of a paddock which seemed constantly wet. They fenced it and let it revert to a natural wetland state which took little work besides time with the scrub bar to prevent kikuyu growth from overwhelming native shrubs. “It was an outof-the-way corner and production from it was next to nothing so we just fenced it up without a second thought.”

Stakeholders plan to use the new wetland to catch nutrients and sediment running from nearby hills which Brown says will be monitored.

With the land opposite the wetland being subdivided into lifestyle blocks, Brown says it is easier for him than them to break off an area for wetland, though he says wetlands don’t need to take up much room.

Having a wet corner that backed onto the road also played a big part; the public can see the wetland at work and researchers can get to it easily.

Stakeholders had some

physical work to do on the new wetland: excavation needed for three pools took a contractor most of a day.

The area will be planted

with swamp plants before the onset of winter. Ongoing planting work might be necessary as the wetland is next to flood banks and is prone to flooding.

Hikurangi farmer Steve Brown says there’s a lot to gain by retiring wetlands.

Working to lift water quality STEVE BROWN’S farm in the Hikurangi Catchment is one of many farms helping improve water quality via the Living Water scheme.

Fonterra and DOC started the 10-year scheme last year to improve water quality and grow the numbers and variety of native species.

Partners include local dairy farmers, Nga Kaitiaki O Nga Wai Maori, the Integrated Kaipara Harbour Management Group, Whangarei District Council and Northland Regional Council.

The Hikurangi Catchment, which covers about 55,000ha, is a catchment of the Wairua River that flows, eventually, into the Kaipara Harbour. Within the catchment is a 13,140ha floodplain of which 5670ha is part of a swamp drainage scheme.

The Living Water scheme is in place in four other catchments in important dairying regions nationwide.

These are Pakorokoro/Miranda at Takapa Moana, Firth of Thames; three Waikato peat lakes – Areare, Ruatuna and Rotomanuka; Te Waihora/Lake Ellesmere, Canterbury; and Awarua-Waituna, Southland.

Working in partnership:

DAIRY NEWS APRIL 14, 2015

30 // MANAGMENT Running an efficient farm is the recipe for Paul Lambert’s success in Tasmania.

Tassie farmer enjoys turning land into farms SUDESH KISSUN sudeshk@ruralnews.co.nz

TASMANIAN DAIRY

farmer Paul Lambert’s secret to success is to make farms efficient.

A former winner of the

Tasmanian Dairy Business of the Year award, Lambert loves clearing plantation land to return it to production, especially when it is written off as having little or no potential.

Lambert told the recent

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He and his wife Nadine run a 700cow farm at Merseylea, in central north Tasmania. The 180ha irrigated land has four irrigation pivots Paul Lambert and he milks cows on a 50-bail rotary platform.

“I have for many years tried to run an efficient farm,” Lambert told Dairy News.

“We probably learnt our skills in profitable dairy farming back in the 1990’s and then expanded from 200 cows to 2400 from 1995 to 2009.

“In 2010 we sold two farms to corporate farmers and now milk 700 on the home farm; we also own a 20% share in a dairy farm where I help with management.”

A Nuffield scholarship in 2011-12 took Lambert away for nearly seven months to study robotic milking and on-farm energy production.

His father Ted has schooled him to run things well and to irrigate

as much ground as possible. His father also helps in selecting the right cows.

Lambert says this has resulted in a clean, highperforming herd that produces efficiently under its feeding regime of irrigated grass and 500 tonnes of grain per cow.

Grain costs about A$320 $350/tonne, he says.

“A lot of dairies are using more and getting good results. This season we will use about half a tonne per cow; the state average would be just over a tonne.”

Pasture growth has also been good, most of the state getting good autumn rains. Things are looking great, he says.

Lambert supplies Murray Goulburn and is looking at a closing price of A$6/kgMS this season.

Tasmania’s dairy industry is booming and the state has been producing close to 1 billion litres of milk every year. Production there could double during the next 10 years, Lambert says.

The government relies heavily on irrigation to better manage water use.

The state is said to have 14% of the country’s water on only 3% of the land mass.

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DAIRY NEWS APRIL 14, 2015

MANAGEMENT // 33

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John and Karen Hunt, Kiwi farmers now farming in Western Australia.

Making NZ grass system work on the ‘western side’ AUSSIE DAIRY farmers have long

been interested in how their transTasman neighbours produce milk.

But dairy farming in New Zealand is not without its challenges, and Kiwi couple John and Karen Hunt believe the strengths of New Zealand’s low input, pasture farming can work in South Australia’s lower south-east.

The Hunts now farm in Western Australia.

“There are a lot of similarities between the lower south-east and New Zealand,” Hunt says.

“The climate is similar, rainfall is comparatively high compared to other dairying regions and importantly, the region – particularly around Mount Gambier – can really grow grass.

“And… you can know with a high degree of confidence what you’re going to grow in any given year, thanks to its irrigation capacity.”

The Hunts were sharemilkers from age 21-35 in the central North Island.

“When we first started out, a herd of 180-200 cows was profitable and the goal of farm ownership seemed achievable, but the goalposts quickly changed as land prices began to climb radically about 20 years ago,” Hunt says.

At their peak, land prices in some dairying regions hit $50,000 $60,000/ha and cow prices $2000$2500, “so to get into your first farm you needed a lot of equity”.

Demand drove price increases for land across NZ and farmers began buying neighbouring properties.

Hunt says rising land values often prevented farmers from repaying loan principal so instead they made their money out of equity growth.

The Hunts quit farming and worked for five years in allied agricultural industries. “After working offfarm until we were in our early 40s, we realised we did want to be farming so we travelled to the South Island looking for opportunities.”

The couple worked closely with, and managed a farm for, Chris Procter in the South Island before taking up

an opportunity to travel to Mount Gambier, in South Australia’s lower south-east for a farm inspection and potential equity partnership arrangement.

Procter had previously earmarked the region for its capacity to replicate New Zealand dairying practices, with added benefits of irrigation and lower land prices.

Opportunity knocked for the Hunts in the form of a dairy investment partnership with the Nixon, McKellar and Procter Families, shortly after the Hunts decided to reenter dairy farming.

“From there, it took only about three months from inspecting Oamaru Farm, south of Mount Gambier, to becoming operations managers in the farm business before committing to an equity partnership agreement in 2010.”

The couple spent three years at the farm converting it from a previously high-input system typical of many farms in the region, to a grassbased, low-input, seasonal production system as was the style in New Zealand.

The conversion focused on an intensive re-pasturing and fertiliser program which saw the couple milking 450 cows for an annual milk production of 198,000kgMS – and climbing.

Cows were fed 300-700kg grain/ cow using 220kg/250 units nitrogen/ ha/year depending on grass growth and demand on the grass-based system.

Now, seven years on, they have moved on from Oamaru to become equity partners at Lancaster, Allendale East, and co-investors in Fern Leaf Dairy, with Mr Hunt’s brother Greg and sister-in-law Lisa Hunt.

The farms run separately, with the couple’s son Daniel taking primary interest in the 240-cow herd at Fern Leaf, and Hunt overseeing the operation.

The Hunts focus on milk solids.

“We get paid on milk solids so that’s exactly what we chase – as in New Zealand.”

The family aim to grow their overall business from the first year pro-

duction levels of 1550kgMS/ha past the current level of 1800kgMS/ha to 2000kgMS/ha in the next couple of years. They will do this via improved pasture and fertiliser programs under irrigation, and herd improvement.

Lancaster Dairy runs a 550-head cross-bred Jersey herd and has been the focus of the couple’s pursuit to combine the best of New Zealand and Australian dairy farming practices, since its purchase four years ago.

“We’ve carried the New Zealand philosophies over to the south-east of SA and they’ve worked well. We have stringent, proven guidelines and we don’t deviate too much; but first and foremost we don’t try to convince anyone that our way is better,” Hunt says.

“And we’ve probably got a name around here as ‘crazy Kiwis’ because we do things quite a bit differently. However, I’m always keen to explain to other farmers what we are doing, why we are doing it and the results we are achieving– then it’s up to them to decide if there’s anything to be learned from a system like ours.

“Run conscientiously, low input systems average out to be consistently more profitable than the alternative.

“While it’s hard not to get drawn into the high input method and the seemingly big profits on offer in an ‘out-of-the-box year’, we only need recall some of the bad seasons and it’s those systems that ultimately suffer the most.

“We have found that low input farming earns its value in below years, due to the innate flexibility within the system, particularly in grain inputs and seasonal irrigation options.

“We have a range of 350-700kg of inputs depending on the season and market opportunities so grain is used mainly to fill the gaps.

“Ours is a system that allows us to cut back when we need to, or ramp up if growth rates are slower or the market favours it.”

The duo do weekly whole-offarm walks where they can monitor aspects such as grass growth, making sure it meets the demand of their herd throughout the seasons.

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DAIRY NEWS APRIL 14, 2015

34 // MANAGEMENT

Nitrogen dollars dissolving in thin air The economic cost of nitrogen loss through volatalisation is high, according to field trials.

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MILLIONS OF dollars of nitrogen is vanishing into thin air, causing losses to farmers and to New Zealand in wasted imports, says fertiliser company Ballance AgriNutrients.

This conclusion arises from field trials done by Ballance to measure ammonia losses from standard urea and urea treated with a nitrogen stabiliser. These losses occur when the nitrogen in the urea volatilises into ammonia.

While farmers try to avoid the loss by applying urea when wet weather is forecast, research by Landcare Research and Ballance has shown that 5-10mm of rain is needed within eight hours of application to reduce ammonia loss, a finding consistent with research in New Zealand in the 1980s.

Ballance science manager Aaron Stafford says nitrogen loss through volatilisation is well-known, but the economic cost is not.

“Around 500,000 tonnes of urea is sold in New Zealand each year and if you use the rule of thumb that 10% of available nitrogen will be lost from volatilisation, that’s the equivalent of 23,000 tonnes of nitrogen not doing its job in the soil to generate a return for farmers.

“Urea fertiliser contains 46% nitrogen, so at $600/t for urea, this means $30 million of nitrogen is lost on average each year as ammonia.”

The losses are financial and environmental, with volatilised nitrogen re-depos-

ited from the atmosphere, not necessarily on the farm from which the nitrogen was lost.

“Farmers have no ability to control where this volatilised nitrogen is re-deposited.

“It could end up in rivers, lakes or forests, which is less than ideal environmentally.”

Field trials in Waikato, Manawatu, Canterbury and Otago were done during two successive springs. They showed ammonia losses from urea of 11-23%, with an average of 15% -- again consistent with previous independent work.

Treating urea with Agrotain nitrogen stabiliser (SustaiN) reduced these losses by an average of 68%.

Stafford says the results are consistent with previous research which gave an average 45% reduction in ammonia losses with SustaiN urea over standard urea.

“The data also shows that volatilisation is not a summer-only phenomenon. It can happen at all temperatures.”

He says a product like SustaiN is sold at a premium over standard urea, but that premium is recovered in reduced nitrogen loss, better pasture response and reduced reliance on immediate rain to minimise volatilisation.

The co-op now offers SustaiN in place of urea in a wider range of mixes and blends, extending the benefits to applications which include other nutrients.

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DAIRY NEWS APRIL 14, 2015

MANAGEMENT // 35

More tools in the box ANTS ROBERTS

THERE’S BEEN noise

in the market recently about urea coatings that can reduce volatilisation –­ the process where nitrogen is lost to the atmosphere rather than available to the plant.

The trouble with all this averaging and aggregating up is that farmers may think they need a urea coating when their farm conditions would actually make it unnecessary.

Basically, there is more than one way to skin the N-loss cat.

With the current state of dairy payouts, everyone wants the same thing: the amount of N you get to keep for your plants relative to your conditions in your part of the country.

Under all except the most extreme conditions, e.g. hot, dry and windy and applying high rates

of N, the losses in pastoral farming are expected to average 10-15% (or less) of the N applied as urea.

Any claim of coated products reducing N loss by, say, 50% can be misleading because that does not mean half of the total applied nitrogen. Rather, the claims mean half of the 10-15% which of course equals 5-7.5%.

How much N does this mean is being saved for plant growth? If you apply 65kg urea/ha (30kg N/ha) and lose 10% to volatilisation, you are losing 3kg N/ha and with the urea coating you will reduce this to 1.5kg N/ ha (at 50% reduction of volatilisation).

At times, the premium for a coated product can be 8-10% more than standard urea.

As a famous psychologist once said: “When the only tool you have is a hammer, every prob-

lem looks like a nail.” If a fertiliser company with a urea coating tells you it’s the only solution to volatilisation, they should also inform you of the several other ways volatilisation can be tackled.

There are at least five other simple steps you could consider to help

reduce volatilisation: ■■ Apply lower rates each application e.g. 30-50kg N/ha (volatilisation rates increase with higher rates of N application) ■■ Apply when it’s raining or about to rain or use at least 10mm of irrigation straight after appli-

cation Apply to pastures with some leaf cover ■■ Avoid hot, dry and windy conditions ■■ If applying to soil, incorporate so it is just below the surface.

• Ants Roberts is chief scientific officer at Ravensdown.

■■

Ants Roberts, Ravensdown

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GO ON-LINE to see the impact of genetic improvement on farm profit and team averages, says NZ Animal Evaluation Ltd (NZAEL), a wholly-owned subsidiary of DairyNZ, This is made possible through a new online bull team builder, developed by Instead of flicking through catalogues to compare bulls; farmers will have all the information now available in one place, says NZAEL manager Dr Jeremy Bryant.

“They will be able to visit the DairyNZ website and select bulls which meet their specific needs without compromising Breeding Worth (BW). Preferred traits might include enhanced BW, productivity, fertility, long-life, calving ease, conformation or temperament,” he says.

Once the most suitable sires have been chosen, farmers will be able to benchmark their teams against the Ranking of Active Sires (RAS) average, to see how their bull team stacks up across a range of traits.

Hauraki Plains farmers Heather and Stewart Fowlie have tested the team builder and appreciate its user-friendliness.

“I really love the programme. It enables me to move bulls in and out easily and see the effect of my decisions on team average breeding values and BW. If I want to strengthen udder traits in the herd, and also want to select say three bulls from the top five indexed bulls, it certainly is a quick way of choosing those traits without compromising overall team BW. It’s very easy to navigate and I think we will use it a lot,” says Heather.

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DAIRY NEWS APRIL 14, 2015

36 // ANIMAL HEALTH/FEED

Limited pasture requires precision m STEPHEN COOKE

WESTERN AUSTRALIAN dairy farmers Ruth

and Ian McGregor can only rely on pasture for five months of the season on their Chapman Hill farm, near Busselton, so each blade grown must be maximised.

The precision displayed when estimating feed budgets is also applied to all aspects of the family farm, including mastitis prevention and heat detection.

The couple milk 300 Holsteins on a 132ha effective milking platform, with a further 140ha leased runoff block. The first-generation farmers have been on this farm for eight years.

With fresh pasture available for five-six months of the year, the McGregors have fine-tuned their feed budget to ensure

their herd’s milk supply is consistent.

“Milk in the vat is the ultimate goal. You have to maximise milk in the vat every single day, and that requires appropriate feed reserves,” Ruth said.

The break has always arrived on their farm but an early arrival or a late finish can provide an extra three-four weeks grazing, which makes a big difference in production and expenditure.

The McGregors aim for 1050kgMS/ha from their effective milking platform, or about 600kgMS/cow.

In a good year, this can lift to 1100kgMS/ha, and in a poor year this can drop to 1000kgMS/ha.

Cows are fed homemade silage and some purchased hay and grain, from December until at least the end of May. Depending on the timing of the break,

they will start grazing from early June until the third week.

The McGregors produce all their own silage from their dairy platform and their run-off block.

Some hay is purchased and used in winter with fresh pasture.

A feed budget is produced in November when pastures are finishing off to ascertain how much grain must be purchased each month and in what type, to balance available feeds for the coming year.

Cows are fed 2.7-3.0 tonnes of grain each year, a “pretty standard” ration of 65%-70% wheat/barley, 11% canola meal and lupins.

Ian has built up a good relationship with a local feed supplier and submits his order in good time.

“If the growers know in advance, they can hold it back, or decide otherwise.”

Beau, Ruth, Ian and River McGregor.

They produce all their own silage and would ideally like to produce 100t more than they do to feed to young stock, but in the trade-off between quality and bulk quality is always retained.

“It’s always a really tight period at the end of the season. We’re desperate for cows to get on grass, and there’s always uncertainty with the break.

“There is a transition period of four to six weeks

when grass comes in and it would be good to transition with silage rather than hay, but it’s hard to do.”

In producing their own round-bale silage the McGregors are always reviewing latest ryegrass varieties. They have increased their use of inoculant and use shorter chop lengths to improve silage preservation.

All silage is tested through feed labs and they aim for a minimum of

10ME. The McGregors have noticed a variation in results from different feed laboratories – and they’re not alone – and advised farmers to be wary when having their own feed tested.

Their simple feed-out system, placing the round bales on the ground, belies the precision in estimating how much is laid out.

The WA Department of Agriculture has measured

their waste at 2% - the average for WA was 2.5%. Their attention to detail ensures the correct amount is distributed each day.

“We monitor the vat every day and the ration every week, and reassess it and tweak it if need be. If your feed budget is right, and you feed good quality silage, there should be minimal waste.

“We’re measuring this stuff all the time – how heavy the bales are, the

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DAIRY NEWS APRIL 14, 2015

ANIMAL HEALTH/FEED // 37

n management feed results, calibrating feed, calibrating rations at the mill – to maximise the efficiencies of feed that’s available.”

They use the programme Rumin8 to assist them and say it’s invaluable. “You get good at measuring, good at recording,” Ruth said.

“Frank Tyndall from Maffra gives me the discipline to record what’s been fed to the herd every 10 days. He prepares graphs and if they show a sudden jolt, I’m doing something wrong and I need to make some adjustments – fast!” Ruth said this process enables them to do the best with what they have.

The McGregors sow later-maturing annual pastures in their dryland system, including some Italian varieties, over-sowing as much as they can.

About one-quarter is renovated each year, depending on the budget.

Leaf emergence rates vary year to year, and can also vary across the season, with variations of 8-15 days to leaf. “I aim to be 2½ to 3 leaf, early in season closer to 3, later in season 2½.

The ideal is to have cows in 2.8 to 2.9 so we monitor leaf emergence rate closely.

“We prepare a pasture budget at the beginning of the week, which shows which paddock is to be grazed and for how long. We need to get it right every time.

“Grass is huge for us; with such a short grazing season, you have to nail it,” Ruth said. “The trick is getting it absolutely right every day of the year. That’s what maximises the vat every day.”

Calving Although they would prefer to calve twice a year, the McGregors calve in three batches because of some declined success with fertility.

The main calving is in autumn for about nine weeks – usually from March 1 to May 15; with a second calving lasting five weeks from the last week of August to September 30; and the third calving running four weeks from December 10 through to January.

Ruth said the three calvings have evolved but it has proved beneficial as WA

processors want a flat milk supply.

“We would get to the point where we would have 50 cows in the herd not in calf at the end of spring mating, so we’d have to have another go. It requires a bit more effort and is less labour efficient, but it’s nice for cash flow.”

Breeding Management The McGregors made a subtle but effective change to their heat detection practices 12 months ago.

“We have spent more time in the last 12 months on heat detection,” Ian said. “It comes back to hours spent with cows.

All aids are good, but you can’t beat time spent with cows.”

The McGregors and their staff now spend 10 minutes in the morning and a further 10 minutes at night observing cows.

“We made observation a specific job, rather than just checking for heat on top of other jobs. It means you concentrate a bit more.”

More cows are now being presented for AI in a timely manner and the submission and conception rates have both improved as a result.

They now have threeweek submission rates better than 90%, and an average conception rate of 42% for everything mated.

The conception rate has improved from 27% from staff and 35% from Ian. Mastitis The McGregors train their staff thoroughly in mastitis.

Ruth said 90% of WA would have bulk milk cell counts (BMCC) less than 250,000, but the McGregors aim to keep their BMCC under 150,000 year-long to remain in their processor’s Grade 1 band.

They regularly feature in the Dairy Australia Milk Quality Awards for top 5% in the country, and have also been placed in the top 100 in the country.

“You can’t affort to sit on your laurels with mastitis,” Ruth said. “It’s a moving target, it’s multifactored, so you have to be onto so many things.”

Staff training focuses on early detection, spray technique and mastitis indicators in the dairy, with incentives for staff to keep BMCC low.

“There is a lot of inhouse training, procedures and systems in place, and we work with staff until we’re confident they fully understand.”

Ruth said 50% of mastitis control involves a good spray technique. The highest infection rates on the farm occur at calving so

cows are dried off routinely with both Dry Cow and Teatseal; calving paddocks are kept clean; cows are moved regularly; herd testing is conducted; and subclinical milk is fed to calves.

A mastitis focus report is issued twice a year and this is constantly reviewed by the team.

Ruth McGregor says the trick is to get pasture budget right every time.

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DAIRY NEWS APRIL 14, 2015

38 // ANIMAL HEALTH

Dystocia costing Oz dairy $44 million GEMMA CHUCK

DYSTOCIA, OR

difficulty in giving birth, is a common problem encountered in dairy herds.

Dystocia can result in reproductive problems such as retained foetal membranes, uterine infections and increased calving intervals, which subsequently contribute to poor herd performance.

The long-term impact on calves born to dams suffering dystocia has been shown by research in the United States.

Calves with an assisted birth had decreased milk production later in life compared to those born with a normal, unassisted delivery.

Why does dystocia happen?

There are numerous reason for dystocia, the most common being:

The calf is too big and /or the dam is too small This is due to a small or disproportionate pelvic area (birth canal).

It occurs more commonly in heifers and is often related to inadequate nutrition during the pre-pubertal and post-pubertal phases of growth.

Heifers should be managed appropriately so that they calve at about 85% of their mature

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body weight with a body condition of 4.5-5.5 (1-8 scale).

Appropriate sire selection using Australian Breeding Values (ABVs) or calving ease bulls will help minimise over-sized calves in heifers.

Excessive body condition score Over-conditioned heifers and cows are at an increased risk of dystocia as fat deposited around the birth canal reduces the space within the pelvis.

Animals calving in body condition score >5.5 (1–8 scale) are at an increased risk of dystocia.

Torsion of the uterus (twisted uterus) This is often associated with oversized calves.

There may be from 180∞ to 720∞ twist at the level of the vagina, which prevents foetal fluids and membranes from passing through the vagina and vulva.

Consequently stage 1 labour will appear prolonged with no progression to stage 2.

If left undetected the cow can become sick over several days due to metritis as a result of the death of the calf.

A distinct ‘corkscrew’ effect in the vagina can be felt which may be clockwise or

Calves can be presented in many ways at birth. The various presentations, positions and postures mean that safe delivery of the calf can be very challenging.

anticlockwise.

Prompt veterinary attention is required to untwist the uterus and enable delivery of the calf.

Sometimes a caesarean section is required if the twist is greater than 360∞.

Weak or absent uterine contractions This can happen in instances of milk fever (hypocalcaemia).

Calcium is required for the contraction of muscles within the body, including the uterus.

Uterine muscle contractions are essential for the calf to be delivered normally. Cows may show other signs of hypocalcaemia such as inability to stand and bloat.

The cow cannot progress from stage 1 labour even though the cervix may be fully dilated.

The prolonged birth often results in a dead calf.

Prompt treatment for milk fever is required and, if the calf is alive and there

are no other reasons for dystocia, a natural delivery may follow.

Abnormal delivery position of the foetus The normal delivery position of a calf just prior to delivery is shown in the diagram. The front feet should be presented first, followed by the head and neck, shoulders, hips and hind legs.

The calf should be orientated with its spine upwards at all times. A malpresentation refers to when the calf is coming hind legs first.

A malposture refers to when the head and legs of the calf are situated in abnormal positions relative to the ‘normal’ delivery position (for example head flexed to the side); and a malposition refers to the position of the calf relative to the dam, for example it is upside down or on its side.

Difficult deliveries can be a combination of these and can be very

challenging to resolve.

It is difficult to estimate how much dystocia costs the Australian dairy industry.

Some reports suggest an annual cost of A$44 million.

Fertility is a major contributor to this, along with cow losses, labour and veterinary costs. No more than 3% of adult dairy cows and 6% of heifers should require assistance at calving.

Accurate calving records allow on-farm monitoring of these events. Veterinary advice should be sought if the level of dystocia is higher than this.

• Dr Gemma Chuck is a dairy vet working at The Vet Group in south west Victoria.

She has a special interest in calf rearing and is currently undertaking her PhD in this area at The University of Melbourne. @dairy_news facebook.com/dairynews

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Start the season in a healthy place.

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DAIRY NEWS APRIL 14, 2015

40 // ANIMAL HEALTH

Fine-tuning dry cow therapy lowers SCC DairyNZ senior scientist Jane Lacy-Hulbert outlines seven ways to fine-tune your dry cow approach and get the most out of your time and money.

NATIONAL AVERAGE

somatic cell count (SCC) levels have dropped a lot

Jane Lacy-Hulbert

over the past few years.

The dairy industry is likely to achieve a national

average bulk milk SCC of 150,000 cells/ml by 2016. Here are ways to

THE NEW INNOVATION IN DRY COW THERAPY.

contribute to this.

■■ Choose the right approach for your herd Antibiotic dry cow treatment (DCT) and internal teat sealants (ITS) are effective tools – DCT for treating infections in high SCC cows, and DCT or ITS for preventing new infections in low SCC cows.

Take time with your vet in your milk quality review to look at mastitis treatment records, SCC history and the mastitis risk of your wintering/calving system.

For information and recommendations on drying off and deciding your dry cow management strategy, visit dairynz. co.nz/dryingoff.

■■ Know the bacteria Knowledge of the bacteria responsible for clinical cases in spring, or high SCC cows in autumn, is invaluable for more costeffective decisions about dry cow treatments. Discuss with your vet the right cows to sample and refer to DairyNZ’s Healthy Udder guide for sampling procedures.

■■ Revisit your treatment plan In recent years, many farmers have successfully trialled combination treatments (where a cow received both DCT and ITS). With a lower milk price, farmers may be rethinking this approach.

Support your spending with other preventative measures (see tips 5, 6 and 7).

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Consider which DCT products for high SCC cows Talk to your vet about cost-effective solutions for older, higher SCC cows. The difference in cure rates between different product brands is marginal. Cows with a high SCC don’t necessarily need the more expensive treatment.

■■ Support your investment decisions using trained staff Spend time and effort on training your team to administer DCT and ITS with correct hygienic technique. Refer to DairyNZ’s Healthy Udder for stepby-step instructions and ask your vet for training.

Poor technique risks of dead cows.

■■ Teat spray springers before calving Teat spraying springers two to three times a week reduces the risk of new mastitis cases at calving. This simple technique is good for protected and unprotected animals.

Where practical, it may provide a low-cost way to extend the benefit of some dry cow products.

■■ Milk cows soon after calving Bringing cows that have just calved into milk within 12 hours greatly reduces the level of clinical mastitis.

Although tested on heifers, this solution should work well for mature animals also.

• This article was first published in Inside Dairy April 2015.

■■

DAIRY NEWS APRIL 14, 2015

MATING MANAGEMENT // 41

Acting now can reduce facial eczema long-term HOT, MUGGY con-

ditions this year were a pointed reminder to dairy farmers to breed animals more tolerant of facial eczema (FE) and more resistant to the disease long-term, says CRV Ambreed.

The company’s genetic development strategist Phil Beatson says R&D in the past four years by its staff and AgResearch allow identification of FEtolerant bulls.

Sires now entering CRV Ambreed’s progeny test programme are challenged for FE tolerance, and targeted genetics are available to help farmers beat the disease longterm.

Beatson says the firm’s genetics for dairy cattle will typically breed off-

Phil Beatson, CRV Ambreed

spring that are 25% less reactive to a FE challenge than an average bull.

“It isn’t an overnight fix though. A dose of facial eczema tolerant genetics this season will help minimise the loss of milk pro-

duction in the progeny in years to come,” Beatson said. “Farmers need to consider the genetic option to combat facial eczema, and they need to get on the bus now and stay on that bus.”

Cattle in many parts of the North Island and upper South Island were hit by FE this year. Higher humidity increased the number of toxic spores in pastures and resulted in a spike in the number of FE

Workshops on online app for herd control

cases.

Clinical cases of FE are easy to spot; skin loss and lethargy are clear signs.

In extreme cases FE may cause an animal’s skin to fall off and even kill it. But invisible subclinical symptoms cost the dairy industry more through the loss of milk production.

FE tolerance is a heritable trait and the right breeding programme can reduce the severity of the disease CRV Ambreed says.

Sheep farmers have shown the dairy industry how the disease can be addressed long-term: sheep today are up to six times more tolerant to a FE than sheep were 30 years ago. @dairy_news

HERD IMPROVEMENT company CRV Ambreed is running free workshops on how to make the most of its online herd recording app.

CRV Insight helps farmers improve their herd recording and data management by making herd information more accessible ‘in the paddock’.

CRV Ambreed information product manager Henk Huurnink says CRV Insight is easy to use, convenience and makes data management easier.

But many farmers are not yet using the app to its full capability, he says, hence the company’s invitation to workshops in 15 locations.

The workshops will cover CRV Insight features, customising and viewing reports, making data entry easy, and using CRV Insight on smartphones.

Huurnink says CRV Insight Mobile especially suits smartphones, no surprise considering a recent DairyNZ report that 60% of farmers now use smartphones and want technical information while away from their offices. “[It enables clients to] manage their herd at a touch of a button and makes recording and accessing information easier. Our team is continuously innovating to in products and services farmers need to get on with their job with as much ease and efficiency as possible.”

Tel. 0800 262 733 www.crv4all.co.nz

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Stuart Tracy, of Waratah Bay in Victoria, Australia, photographed with his two MEDALLION daughters.

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DAIRY NEWS APRIL 14, 2015

42 // MATING MANAGEMENT

Higher-value bobbies are more money in the bank GETTING A premium

on calves he would otherwise send away on the bobby calf truck is a seasonal bonus enjoyed

by Waikato sharemilker Markus Ruegger, according to Firstlight Wagyu.

For the past four years Markus has been putting Wagyu bulls over the Kiwi-cross heifers he grazes off the farm at Matawai in the Gisborne region.

He was encouraged to try the different

genetics by his grazier who had run Angus cattle and crossed them with Wagyu. Ruegger was also keen to seek out a breed that would be an easy calving option, and deliver higher value calves.

“The reality is that when you put a Jersey bull over a Kiwi-cross heifer, you are not going to get a calf worth very much from it; usually it will be the lowest grade weight,” he says.

Ruegger is said to

have decided that using Firstlight Wagyu bulls met his requirement for value add, easy calving and secure purchase contracts once the calves have reached four days old.

“Our options for mating are relatively limited. We can’t go down there to do AI on the heifers, so the Wagyu arrangement has provided a way to earn more from those calves without compromising our in-calf rate or having

any calving difficulties you sometimes get from beef breeds.”

He has achieved 85-90% calving rates within three weeks in the 60-65 heifers he puts to the Wagyu bulls every year and calving issues have only been typical of those with Jersey bulls.

Ruegger’s wife Esther rears the calves every year from their 310 head herd, and she has not experienced any issues with the Wagyu-cross calves, and appreciates

the regular collection at 4-6 days that is part of the contract with Firstlight Wagyu.

“They learn to drink quickly and like any calf need that colostrum at the start to get going well.”

Typically the premium on the four day calves is up to three times what they would get as bobby calves, and this has been underpinned by the strong demand for Wagyu beef in Firstlight’s overseas markets.

Te Poi sharemilker Markus Ruegger.

Firstlight director Gerard Hickey says market demand for grass fed Wagyu is gaining momentum every year for a brand that has been

best beef they have ever tasted. It is easy to market a product that is as good as this,” Hickey says.

He seeks more dairy

“Our options for mating are relatively limited.”

– Markus Ruegger

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establishing itself for ten years. “We now have sales… staff in the United Arab Emirates, California and the UK.” Firstlight Wagyu quality, antibiotic free and grass fed has a following among high income earners in the US. Premium Bristol Farms supermarkets throughout the Los Angeles county are enjoying strong demand for the beef.

“Not a week goes by when we don’t have buyers or consumers tell us that this is the

farmers to add to the supply chain by making Wagyu an option for their non-replacement calves.

“We are keen to talk to dairy farmers of spring and autumn calving herds who want to generate more cashflow this season.”

Typically payments will be up to three times what is paid for Kiwicross bobbie calves, with guaranteed collection at four days and payment at 21 days. @dairy_news facebook.com/dairynews

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DAIRY NEWS APRIL 14, 2015

MATING MANAGEMENT // 43

Oz genetics reverses transTasman flow AUSTRALIAN DAIRY

genetics is coming to New Zealand, with Genetics Australia Cooperative Ltd (GAC) teaming up with Kiwi genetics company Genetic Enterprises (GE) to distribute the Australian products here.

The alliance gives access to leading Australian dairy sires and reverses the trend of Australia importing dairy genetics from New Zealand, says Genetics Australia’s export manager, Rob Derksen.

“This is an opportunity for New Zealand dairy farmers, particularly those interested in introducing genetics tried and tested in an environment that relies on a grazing diet, but able also respond to feed supplement when challenged,” says Derksen.

“New Zealand genetics have been available in Australia for several years and it is apparent that dairying is changing in New Zealand and we feel the time is right to offer New Zealand farmers some top Australian genetics.”

Genetics Australia is a farmer owned cooperative

that claims to utilise the best genetics worldwide in “a blend of the best international sires combined with leading Australian cow families to produce bulls which breed efficient, profitable milk producers that can perform on grass,” says Derksen.

He says Australian developed genetics was ideal to satisfy the growing global demand for dairy genetics capable of producing a medium size, functional cow suitable for long term, efficient milk production.

“Genetics Australia has focused on the ‘Australian cow’ for 50 years under diverse and often harsh dairy conditions and it is not surprising that Australian proven bulls dominate the local Australian top bull lists.”

Genetic Enterprises managing director Allen Donald says he was keen to include the best Australian genetics in their product range. Genetics Australia bulls will feature in the 2015 semen catalogue, available now.

“There will be a lot of interest in the Austra-

JerseyGenome makes headway A JOINT venture between Jersey New Zealand and

CRV Ambreed to promote female heifers into an elite breeding programme is helping farmers achieve greater genetic gains in herds, the partners say.

Since its beginnings in 2008, JerseyGenome has been showcasing elite Jersey females that have been selected to be mated to high genetic merit bulls.

The quality of females entering and performing in the programme is showing improvement year on year across the six traits and breeding indexes that are considered for the programme.

JerseyGenome combines modern day science in the form of genomic selection with the breeding skills of the Jersey New Zealand members and CRV Ambreed’s breeding team. The top 1% of registered females in New Zealand are considered for the programme. Once identified, these high genetic females are mated with selected sires to create elite progeny.

Jersey New Zealand general manager Warwick Dows says the ultimate end goal is to produce sires that enhance the Jersey breed and prepare dairy farmers for any challenges and industry-related pressures they might face in the future.

“Trends are showing JerseyGenome is heading in the right direction and we are incredibly proud of the success of the programme to date,” says Dowse.

CRV Ambreed’s breeding programme manager, Aaron Parker, said the benefits of being part of the JerseyGenome go further than supporting the overall development and future of the Jersey breed in New Zealand.

lian Holstein and Jersey, particularly from farmers wanting a strong, functional cow able to push milk yields. And the Aussie Red breed offers an option for cross breeding.

“The Aussie Red was developed 30 years ago by blending the strengths

of Scandinavian genetics over the Australian Illawarra Shorthorn. This Aussie Red breed is ideal for cross breeding farmers to use in a three-way cross breeding strategy with Holstein and Jersey that blends the strength of all three breeds and maxi-

Demand for Australian Jerseys is at an all-time high. Raceway is a former Australian Number 1 genomic Jersey expected to rank high when the 2015 ABVs are released.

mizes heterosis,” he says.

“The alliance between Genetics Australia and Genetic Enterprises will also provide an opportunity to Identify high young Australian bulls suited to grazing, based on their genomic profiles.”

Don’t miss a heat!

Heat detection is a key factor for a successful mating period.

Getting this right can increase your in calf rate and benefit your overall herd profitability.

CowScout™ is a new generation in heat detection. It is a stand-alone system which gathers and records, using the CowScout™ neck tag, activity which indicates an animal is likely on heat. As an added bonus, the CowScout™ neck tag also monitors and records eating/grazing time, which can be used to monitor metabolic and other health issues of the cows.

Data is collected and stored in 2 hour blocks, with 24 hours of data being stored in the tag itself. When the CowScout™ tag is within range of the antenna, data is constantly transmitted in real-time, resulting in alerts being immediately emailed to designated people.

How can CowScout™ benefit your herd?

• Utilising CowScout™ will help detect the optimal insemination time allowing for increased conception rates through accurate AI timing • CowScout™ can increase 3 week submission rates in split or seasonal herds • Early detection of cows with fertility problems • Decrease the cost of labour and time spent on detecting heats, with real time alerts • Alerts on animals with decreased eating times signalling health problems sooner than visually noticed • CowScout™ is a completely portable system that can move with you and your herd.

Find out how CowScout™ could benefit your herd call 0800 GEA FARM (0800 432 327) to speak to your local GEA representative.

DAIRY NEWS APRIL 14, 2015

44 // MATING MANAGEMENT

Tag keeps better track of cows AUSTRALIAN FARMER Mark Billing

does not consider himself a technology nerd, but is certainly an early adopter of techniques and equipment to improve his herd management.

“We employ technology that enables us to measure – so that we can manage,” says Billing, from Larpent in Victoria’s western district, Billing is a fourth generation dairy farmer on Craiglands since his great grandparents walked 40 Jerseys from Ashburton in Melbourne in 1923.

He and Samantha are currently milking 450 Holstein Friesians in a closed herd on the 240ha home farm with a 100ha leased property over the road for

the dry cows and heifers.

Twenty-one years ago they built a 44-unit Westfalia rotary and 12 months later as their cows were calving they fitted electronic cow ID neckbands to facilitate differential feed for production feeding - well ahead of most dairy farmers here. At that stage they were herd testing every three or four weeks.

In 2006 they had the first installation on a rotary anywhere in the world of WestfaliaSurge Dematron 70 milk meters to facilitate removal of the clusters and measure the milk quantity very precisely.

At the moment they feed an average of 1.8 tonne per cow per year on

grain concentrate, pellets and crushed wheat, based on production worked out by their GEA DairyPlan herd management system.

The cows are all autumn calving and milking is all year round; as Billing says “we drag the late cows through”.

In May 2014 GEA Farm Technologies approached Billing to trial their new CowScout activity monitoring system within an existing pasture-based operation.

The CowScout tag, fitted to the collar, works with an accelerometer to gather and record the animal’s activity which determines when an animal is on heat. The CowScout tag also monitors and records eating or grazing

time which creates alerts if the animal isn’t doing well health-wise.

“We were given 100 collars and we put the tags on as the cows calved,” Billing says. “Activity monitoring started pretty much from day one.”

The data collected is stored in 2-hour blocks and 24 hours of data is stored in the tag itself.

The data is then constantly transmitted to the farm database when it is in range of the antenna at the milking shed. Because it is a wireless system, transmitting data via a radio technology, the cows don’t have to go through antennas to download the data.

The antenna has a range of up to 500m.

“Because we get real-

Australian farmer Mark Billing with a cow fitted with CowScout tag.

time alerts, high activity cows can be recorded in the software before they come in for milking,” he said.

The monitoring of eating activity as well as heat activity allows farmers to better monitor herd health. Real-time alerts can be sent to a smart phone or laptop or tablet to notify immediately if a cow is on heat, has lowered her eating pattern or if there is a system problem.

“Compared with our current system, this is far and away better,” Billing

says. “It gives you real time data. We very early picked up on a heifer with a displaced abomasum because its eating behaviour had changed from eight hours a day to four hours.

“Our springer paddock is close enough to the antenna that we can monitor real time changes. We even detected a change in the way a sorghum paddock was grazed. The sorghum had sprung up to chest height, whereas the previous brassica was below knee level.

“We calved down 450

this year. We are looking at 8500 to 9000 litres per cow this season.”

GEA’s CowScout will enable farmers to increase in-calf rates through accurate and timely detection, and provides early detection of fertility problems.

Importantly metabolic disorders, especially in fresh calvers can be detected early on through the eating monitoring.

This can mean faster recovery time, reduced treatment costs and less risk of reduced milk production.

How do I get the best fertility results for my farm?

A farmer’s herd is their source of income and their livelihood. But how can they achieve better fertility?

Fertility is a cornerstone of a high performing herd. At CRV Ambreed, we help farmers by offering the right advice, support, services and smart solutions to achieve the best fertility results and a high performing herd.

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DAIRY NEWS APRIL 14, 2015

MACHINERY & PRODUCTS // 45

Feeder more stable, grips better on bale MARK DANIEL The articulated Ropa fodder beet harvester was a highlight of the machinery demonstrations at SIAFD.

Smooth start to field days ORGANISERS OF the 2015 South

Island Agricultural Field Days (SIAFD) are pleased with how smoothly the threeday event ran last month at its new site near Kirwee.

Organising committee chairman Alastair Robinson says turnout was greater than expected. “We aimed to have more than 25,000 and our preliminary entry receipts show we had 27,655, not including exhibitors or children.”

Robinson is pleased with how well the field days came together, considering all its infrastructure had to be developed in the short time between site takeover in November and the opening.

Best site awards recognised exhibitors’ many efforts.

The large site award went to Lely Center Ashburton, which featured robotic milking; Isuzu Utes NZ and Cochranes won second and third prizes, respectively.

Small site awards went to Tyremax LP, AdvanceQuip NZ and RD Petroleum.

Machinery demonstrations, always a major draw at SIAFD, were again very popular with the crowds.

Origin Agroup won the best demo award the range they exhibited throughout the event and for their professional commentary.

The Agri-Innovation awards were another highlight, enabling entrants to demonstrate their inventions and technological innovations. There were three categories.

Patrick Roskam (17) won the top award for the best farm tool or farm aid invention with his Gudgeon Pro 5-in-1 gate hanger; best New Zealand-made invention went to Coolsense for its VariCool fast cooling system for milk; and the award for the best imported machine went to the Shelbourne Powerspread muck spreader exhibited by Toplink Machinery.

The next SIAFD at Kirwee will be on March 29-31, 2017. info@siafd.co.nz

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WITH THE paint still wet on Rob-

ertson Manufacturing’s Little Ripper bale feeder, the company exhibited the machine for the first time at the South Island Field Days, taking the runner-up prize for New Zealandmade farm machinery.

Popular with livestock farmers, bale feeders have had to contend with greater bale weights as the baler manufacturers have striven to increase bale densities. This has resulted in bales exceeding 750kg at times, placing a great deal of strain on the machines and resulting in cases of instability in less-than-ideal conditions.

To address this problem the Little Ripper has two key components in its design.

Firstly, the S-type discharge elevator transfers loads back through the centre of the machine, rather than using a traditional layout in which

Little Ripper bale feeder.

the elevator is just an extension of the bale handling cradle. This greatly improves machine stability.

Secondly, a re-think of the bale transfer system has the bale lifted off the ground, transported and ultimately placed on the discharge table.

By taking a conventional layout of two bale spikes to lift the bale, and by adding a lateral grab mechanism, the

bale is held securely in place during the transport phase; then when required the bale is gently placed on the unload cradle, unlike other systems which effectively throw the bale into the unload position. This is particularly useful with any misshapen bales, which can be prone to trying to climb off the elevator.

Tel. 03 303 7228 www.robfarm.co.nz

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DAIRY NEWS APRIL 14, 2015

46 //  MACHINERY & PRODUCTS

Fixed pods, lines suit irrigation where labour is scarce MARK DANIEL markd@ruralnews.co.nz

MOST PEOPLE familiar with RX

Plastics’ K-Line have seen it revolutionise irrigation, particularly in the South Island. Its simple, robust design lends itself to easy set-up and movement by quad or truck.

As farms have become more intensive and labour scarcer and more expensive, RX has seen the need for an evolution of the K-line – a permanent system with the performance of conventional fixed irrigation but adaptable to awkward terrain or odd-shaped areas impossible with normal layouts.

This adds the benefit of bringing dead areas into production and increasing farm stocking rates.

Working with a concept originated

by Grafton Irrigation, RX Plastics set about developing the G-Set. How does the system work? First, work out the area to be irrigated and

install a 63mm polythene main using a tractor-drawn mole plough. Then the G-Set, comprising the pod (moulded sprinkler body) and a ribbed ground anchor, are attached to the ring main by a tapping saddle.

A patented sliding fitting allows for any variations in depth of the G-Set in relation to ground level, while the ribbed profile of the base of the unit ensures good holding and stability in all soil types.

Once installed, the sprinkler portion is high enough above ground to achieve good spray performance, and to prevent animals stepping on it, but also low enough to prevent dairy cows and beefies from using it as a rubbing post. This should ensure the system has a long, productive lifespan.

In operation, the system is set to deliver low pressure water to each pod in sequence through the day. By running in this manner, rather than trying to run the whole system at once, pressure is maintained, water droplet size is

constant and spread patterns are more uniform. This results in maximum utilisation of available water. If all the units were run at once, water pressure at the first and last pod on the ring main would be different, so volumes applied would differ greatly.

The sequence is controlled by either a custom built Baccara timer or a Q-Tech controller with the added features of a tailored adjustment or update via a radio link to the farm office, saving time and labour maintaining the system.

With at least 2000 units now operating in New Zealand, the G-Set is proving a winner with farms with limited labour, or topography and paddock layout not suited to a conventional fixed system. The lower cost of installation also makes it attractive to all types of enterprises. www.rxplastics.co.nz

The G-Set comprises the pod (above) and a ribbed ground anchor (left).

DAIRY NEWS APRIL 14, 2015

MACHINERY & PRODUCTS // 47

Xero extends Fieldays role NATIONAL FIELDAYS

is sticking with Xero as its exclusive premier feature partner this year.

The theme is ‘Growing our capability in agriculture’, and Xero says it aligns itself with Fieldays to grow and influence New Zealand’s position as a global leader in agriculture, with innovation and education as the keys.

Fieldays chief executive Jon Calder says he applauds Xero’s support.

“New Zealand’s continued success as a leading agribusiness nation globally rests on our ability to collaborate and grow our capability.

“Xero… embodies and exemplifies these traits [with] beautifully designed software built on a platform that encourages collaboration and integration, allowing capability to expand and grow.

“Xero’s story is one of true Kiwi spirit, determination and that No.8 wire mentality that ensures we never give up and continually seek new ways to innovate and drive efficiency.”

Xero rural lead Ben Richmond says the company is excited and proud to be a Fieldays partner.

“This year’s theme… aligns with our goal of working

The National Fieldays 2015 theme is ‘Growing our capability in agriculture’.

with New Zealand businesses and farmers and their accounting partners to lift the rural sector’s accounting capability.”

Richmond says Xero will show Fieldays visitors how its online accounting can help lift capability for better business decisionmaking.

A new way of life...

David McConnell Lely Farmer Waikato

Xero is sticking as National Fieldays’ premier feature partner.

LELY FARM MANAGEMENT SUPPORT (FMS) SETS THE BAR FOR ROBOTIC MILKING SYSTEMS IN NZ Lely is the global pioneer of the milking robot, and have just recently installed their 20,000th robot worldwide. The Lely Astronaut A4 robotic milking system improves the quality of life for the farmer, while at the same time ensuring optimum yield for the dairy farm and welfare for animals.

With each installation, Lely have developed themselves to be able to advise and support their customers in a successful transition to automated milking.

Lely's Farm Management Support (FMS) is a service where Lely customers are guided through the whole process of implementing an automated milking system, including continual support after installation to assist customers with optimising farm productivity. Dairy farming is in their blood and they keep their knowledge fine-tuned at the Lely Academy and also through their worldwide networks both inside & outside of Lely.

• • • •

BOOST TO INNOVATION NATIONAL FIELDAYS has launched ‘Fieldays Innovation Accelerator’ with its new sponsor Callaghan Innovation, aiming to “accelerate the rise of Kiwi inventions to the global stage”.

This is intended as a ‘stepping stone’ by which previous years’ exhibitors in the Innovation Centre can continue at Fieldays without the cost of a full exhibition site.

The ‘accelerator’ is a “logical evolution for Fieldays Innovation as the incubator and catalyst for agritech innovation,” says chief executive Jon Calder.

“Fieldays must continue to evolve and adapt…. In this way Fieldays is much more than a trade show. Our mission is to advance agriculture [by fostering] technology and innovation.”

Other Fieldays partners and sponsors include Vodafone, SODA Inc, Locus Research, James and Wells and Tru-Test.

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DAIRY NEWS APRIL 14, 2015

48 // MACHINERY & PRODUCTS

Better way to spread manure

David Williams, general manager Toplink Machinery with the SIAFD award for imported machinery.

LAUNCHED AT the

South Island Agricultural Field Days, the Shelbourne Powerspread caught the eyes of the Innovation Competition judges who

awarded it first place in the imported machine category.

It is sure to catch the eye of anyone wanting to move solid or liquid

manures efficiently.

Built in the UK and imported by Toplink Machinery, the Powerspread is available from 7.5 to 15 tonnes capacity. Comprising a tank through which runs a central rotor with paddles, it takes material fed via a water-tight guillotine style door onto a 1.4m wide overshot discharge impellor.

A simple reversible driveline consisting of two main chains ensures minimal maintenance.

Depending on the consistency of the

material a uniform spread pattern of up to 26m can be achieved, and in the event of a blockage the impellor can be lowered away from the main body to clear obstructions.

Targeted at contractors or large scale farmers, the Powerspread Pro 2300 holds about 10.5m3. All up it weighs 11.5 tonnes and can easily be pulled by a tractor of 140hp.

Its low loading height ensures it can be filled easily by tractor frontloaders or telehandlers. www.toplink.co.nz

The Shelbourne Spreader can despatch both iquid and solid manure.

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Fencing duel is back A FENCING contest not seen since the 1980s reap-

peared at the recent South Island Agricultural Field Days.

New Zealand Fencing Competitions ran the event in which eight two-man teams from South Island contracting firms took part.

The competitors had to erect a railed corner and hang a steel gate, 45m of netting with an electric top wire and two horizontal assemblies. A Strainrite irrigator crossing was installed separately.

Once the first team had finished, time penalities were imposed at one point per minute, so a playoff takes place between times and meeting the judges’ specifications.

Winners: ■■ 1st Ben Haugh from Ben Haugh Fencing and Nathan Monk from Monk Fencing ■■ 2nd Tony Brady and James Ewing from Tony Brady Fencing ■■ 3rd Nick Terry and Chris Scurr from Custom Fencing.

The competition was sponsored by Wiremark, FCANZ, Cyclone, Steel and Tube/Hurricane, Strainrite, Goldpine, Stockade and Husqvarna.

DAIRY NEWS APRIL 14, 2015

MACHINERY & PRODUCTS // 49

Coolserve general manager Allan Steele with the premier prize certificate.

Milk cooler a clever on-farm solution to impending change MARK DANIEL markd@ruralnews.co.nz

IN AN attempt to beef up milk cooling temperature standards MPI has proposed changes that will affect new dairy installations from June 1, 2016 and existing plant from 2018.

Current regulations require that milk is no warmer than 18˚C at the completion of milking, and is cooled to 7˚C or below, within three hours of completion.

The new regulations, largely based on the US Food and Drug Administration grade A pasteurised milk ordinance, has several requirements: Within four hours from the start of milking the milk must be cooled to 10˚C or below Within six hours from the start and two hours of completion, the target temperature is 6˚C Once cooled, the milk must be held at 6˚C or below until collection or the next milking cycle Once cooled, stored milk temperature must not exceed 10˚C as the product of subsequent milkings is added.

Currently most systems rely on the tried and tested method of cold water plate coolers and simple refrigeration plant to achieve required temperatures. And therein lies a potential problem.

With median temperatures of NZ bore water around 19-20˚C, it is only feasible to get milk temperatures down to around 16-18˚C, which obviously meets current, but not future, requirements. So to achieve the 10˚C threshold a secondary cooling element must be introduced. In its simplest form this is likely to be a body of cold water chilled by a refrigeration plant, probably using off-peak electricity and held in an insulated vessel.

The temperature will need to be sub 7˚C to allow it to be passed through a second plate cooler and bring into the vat at the 10˚C threshold. This type of system will require large volumes of water, possibly problematic for future installations, and from a thermodynamic perspective very inefficient.

The alternative to plate cooling based systems is to go the route of secondary or ‘snap chill’ layouts that use modern refrigeration systems to get milk to the required temperature quickly, and hold it there for the duration. These could achieve economies by saving power and large quantities of hot water via their heat exchanger properties.

One such system was showcased at the recent South Island Agricultural Fieldays at Kirwee, and indeed it won the premier prize for NZ innovation and manufacture.

The Coolsense VariCool features a standalone unit built onto a sub-

stantial chassis, and containing all the system components. This lends itself to easy installation, usually less than one day.

The heart of the unit uses a variable output compressor supplied by Danfoss that can change the flow of the glycol based chilling unit from 3800 to 13,000L/hour to meet demand.

This ability to increase or decrease flow rates results in significant energy savings over 30% when compared to fixed speed compressor systems. The ability to adjust the compressor load to the system requirements results in temperatures being held to target more precisely, and increasing the energy saving efficiency of the plant.

Also, the system is highly automated, allowing it to look after a number of tanks at one time, and keep them all at the required temperature.

After installation the company takes control of monitoring remotely, and alerts the operator to any anomalies, so protecting a valuable asset – the vat of milk.

While initial installation costs may look a little high, the peace of mind achieved by opting for a onestep system must have its benefits.

Considering the potential for energy savings up to $14,000 per annum over conventional systems, plus the ability to generate up to 500L/hour of water at 70˚C, it might be worth looking at. www.coolsense.co.nz

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Contact your local GEA Farm Technologies Service Partner or call 0800 GEA Farm (0800 432 327) to talk to your local GEA Representative.

DAIRY NEWS APRIL 14, 2015

50 // MACHINERY & PRODUCTS

Put the zing back in your paddocks MARK DANIEL markd@ruralnews.co.nz

GRASS HARROWS

with seed boxes have been around for some years and have largely been seen as an easy, low cost option for sowing small seeds into cultivated ground.

Einbock, from Pram, northwest Austria, dates back to 1934 and has led the development of this type of machine.

As well as sowing into cultivated ground,

Einbock machines can be used for pasture rejuvenation. Whether in spring to stimulate growth, or in autumn to extend the growing season by some weeks, such a machine can unlock a pasture’s full potential.

Available as a standalone weeder, called Grassmanager, or more commonly supplied with a pneumatic seed box and called Pneumaticstar, the Einbock machines are available in standard or professional variants.

With working widths to 12m, there should be a model to suit all operations. For the New Zealand market the importer has settled on 6m units in two versions. The Pneumaticstar model has 8mm diameter tines and a 300L seed hopper; the PRO model has a more aggressive 10mm tine and 500L seed capacity.

The company claims to fit 25% more tines than any of its competitors, and the facility for

independent adjustment of the tine angle and the downward pressure exerted on the machine’s sections.

By adjusting these two areas the sward can be given a gentle rejuvenation, or a more aggressive ‘de-thatch’ to remove moss, dead grass and creeping weeds trying to stage a takeover.

Part of the process is getting the tines to vibrate effectively, hence the need for a good forward speed, but care is taken to ensure The Einbock machine can also be used for pasture rejuvenation.

Chris Murdoch...

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that the tines are attached to the carrier by a separate tang, which enables vibration without risking a ‘lock up’ should the tine coil spring become fully closed.

Used in conjunction with the seed box, pastures can be oversown and improved during rejuvenation.

Points worth considering are the 6m working width that ensures high outputs, and the relatively light weight that means units

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can be run behind smaller tractors for safety on difficult terrain.

Also worth a closer look is the distributor plate area of the machine

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