Dairy News 21 July 2015

New Fonterra Shareholders Council chairman. PAGE 5

VOTE OF CONFIDENCE Turning forestry into dairying PAGE 14-15

JULY 21, 2015 ISSUE 339 // www.dairynews.co.nz

$400 MILLION EXPANSION PLAN

Infant formula, lactoferrin, UHT milk part of three-year plan, says Roger Usmar, general manager Oceania Dairy. PAGE 4

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DAIRY NEWS JULY 21, 2015

NEWS // 3

Chinese rebound offers some hope PAM TIPA pamelat@ruralnews.co.nz

JITTERS OVER the Chinese stock market were Ruataniwha water storage debate.

PG.06-07

Slurry tanker faster than contractors.

PG.42

behind the 10.7% drop in the overall Global Dairy Trade price index last week, giving some hope of a minor bounceback, says one economist.

But it is inevitable Fonterra will need to lower its forecast from its current $5.25/kgMS farmgate milk price, the banks say. Some bank forecasts have dropped below $4/kgMS. ASB is retaining its forecast at $5/kgMS believing there will some recovery from the last two auctions. GDT overall prices have dropped 16.7% since the beginning of July, but ASB sees that based mainly on concerns over China, which may have stabilised.

But ANZ has dropped its forecast to as low $3.75-$4/kgMS and Westpac was revising its forecast to $4.30/kgMS even with some price recovery factored in.

“The industry is resilient but this is certainly going to test that resilience,” David Jones, PPB Advisory NZ agri head and former Westpac agribusiness head, told Dairy News.

“There is an awful lot of stress out there. There

will be broader implications for not just the dairy sector but for the rural sector and the provinces with the amount of spending that is not occurring.”

Westpac chief economist Dominick Stephens told Dairy News Fonterra will “absolutely” have to revise its forecast down. “This is a big change in the price; we suspected the fallout from the Chinese sharemarket and lack of confidence in the economy there would have an effect. It has done.

“A number of products stopped out suggesting there could have been more than 10.7% decline in the overall index.

I think there is more to come at the next auction.”

Westpac lowered its forecast to $4.30/kgMS (previously $5.40/ kgMS) and Stephens says Fonterra “absolutely” will revise down to the low fours. He says even that farmgate price assumes a comeback. “So you have to have a bit of recovery to get that level of payout.”

While strong Government support is coming through now

Agribusiness expert David Jones says the downturn will test the resilience of the dairy industry.

TO PAGE 8

OVERSUPPLY STILL THE MAIN CAUSE OF PRICE DIP Hi-vis barrier keeps cows out.

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OVERSUPPLY IS still the underlying weakness affecting dairy prices, says ASB rural economist Nathan Penny.

While declines at the last two auctions relate to China stockmarket concerns and to a lesser degree Greece, the below US$2000 for WMP is a supply issue.

Prices were at very low levels “where it is very cheap for buyers and very difficult for producers like New Zealand farmers so prices can’t stay at this level for very long.”

He says it is too early in the season but

indications of flat or falling production are needed for prices to rise.

“We are moving to the stage of the season where volumes increase. At this stage if you look at the DCANZ data the [last] season was up 3.6% on the previous season – a very healthy number considering we had a drought and the previous season had a 10% lift on the one prior to that.

“That’s a lot of milk and that’s going to take a while to clear.

“We need more indication with the new season’s production that either the growth will be much lower or of flat or falling growth before markets can see the prospects of supply tightening.

“Not until mid-October will we get a feel for how the new season will go. At this stage we think it will be flat on last year but markets are well supplied and they want to see firmer indications of flat production or a fall before they start to put the price up.” – Pam Tipa

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DAIRY NEWS JULY 21, 2015

4 // NEWS

Independent formula maker getting ready to export

Oceania Dairy’s new general manager Roger Usmar.

CHINESE-OWNED INDEPENDENT proces-

sor Oceania Dairy will be exporting infant formula from its Glenavy plant in South Canterbury by the end of this year.

The premium product will be sold in China

by Oceania’s owner Inner Mongolia Yili Industrial Group (Yili), China’s largest dairy processor.

The first batches from the Glenavy plant are in China for trials by consumers; new general

manager Roger Usmar is heading to China this month to see how the product fares.

Usmar told Dairy News he expects full production of infant formula to start by the end of this year.

Infant formula is part of Oceania’s $400 million expansion plan for the next three years; lactoferrin and UHT milk in cans and sachets are also on the radar.

Oceania, which began production August 14 last

year, is Yili’s first investment outside China.

In its first season of operation, Oceania received and processed 206mL of milk, producing 32,000 tonnes of milk powder, most of which has been exported to China, generating US$90m revenue.

Usmar says Yili is proud of Oceania’s first year performance. “The plant has performed well,” he says.

The $400m expansion

project will triple capacity.

“We will add 130 [ jobs] at the site and handle 630mL of milk from local farm suppliers,” he says.

Yili is also keen to improve staff talent and capability at Glenavy.

“We are sending people for training at Yili sites in China and hopefully one day Oceania can become a net exporter of talent for our owners,” says Usmar.

Listed on the Shanghai stock exchange, Yili’s 2013 revenues topped $11.3b, making it the world’s tenth-largest dairy company.

Of the 206mL of milk processed, 77% of it came from Oceania’s own supplies and 23% through

DIRA. However, this season Oceania expects to generate 82% of its total milk supply from its own supply farmers.

Usmar says 49 supply farmers supplied ODL in the factory’s first season; about 63 farmers will supply it this season. The average herd size for Oceania’s suppliers is 800 vs the industry average of 400.

Usmar says ODL pays its suppliers 10c above Fonterra’s payout and believes securing more milk won’t be a problem.

“We have our own suppliers growing their milk supply and potential suppliers are also showing interest.”

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ROGER USMAR was Fonterra’s Te Rapa site manager when he left the co-op two years ago.

After a stint in Western Australia he returned to the New Zealand dairy industry.

Usmar says there are major differences between Fonterra and Oceania; one is a multi-plant operator making an array of dairy products, while Oceania now mostly makes milk powder.

“The biggest difference is that Oceania has one asset,” he says.

Usmar has extensive NZ dairy industry experience with Fonterra and its legacy companies, and in-depth operational and people management experience. He is excited by the challenge of Yili’s development plans for Oceania. “[Our] $400m expansion will triple capacity and considerably expand Glenavy’s product range by 2017,” says Usmar.

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NEWS // 5

Co-op spirit will win the day - Coull THE NEW chairman of Fonterra Shareholders Council, Duncan Coull, says the cooperative spirit will help farmers through the downturn.

Coull says New Zealand farmers pride themselves in weathering the vagaries of commodity prices.

“I know some farmers are feeling very fragile; this is the time to knuckle down and come together as a co-op and work together,” he told Dairy News.

The Otorohanga farmer, who milks 700 cows on two farms with contract milkers, believes the next 12 months will be hard. “It will be a battle of resilience but we need to come out on top.”

Coull was elected unopposed, succeeding Ian Brown, who decided not to stand for re-election after three years in the role. Coull, who represents Fonterra farmers in Otorohanga, was the council deputy chair for the past 12 months.

“It’s a privilege to be elected to lead the council and I thank councilors for their support. I’m aware of my responsibility to coun-

New Fonterra Shareholders Council chairman Duncan Coull.

cilors and all Fonterra farmers and I’m committed to ensuring their views are represented and their interests are protected through effective monitoring and strong representation.”

He paid tribute to Brown for “a tremendous amount of time, energy and unwavering commitment to the role to the betterment of all our farmers”.

“Ian is one of the council’s strongest advocates and I will strive to build on what he has started. Ian will continue in his council role and represent farmers in South Waikato for the duration of his three-year term.”

Coull says the council must keep acting to earn the respect of Fonterra farmers.

“With the volatility we face in our industry it’s important that farmers understand they have a representative body within Fonterra which, backed by the constitution, works to ensure their views are heard and to protect their interests as owners of the co-op.

“I’m committed to continuing our strong working relationship with the board; honest dialogue at this level enables us to function most effectively as farmer representatives.”

PUMPS

More grass, less feed MORE GRASS and less bought-in feed. That’s New Zealand farmers’ response to dwindling dairy prices.

Federated Farmers says farmers are “going back to basics”. Its dairy chair Andrew Hoggard says farmers are picking up on price signals and doing things differently this year.

This is reflected in the higherthan-usual culling of dairy cows as farmers look to decrease the number of mouths they need to feed, he adds.

“Feeding cows grass on their farm is cheaper than buying in feed

STIRRERS

PONTOONS

so many farmers are going back to basics. This change is evident in the reduced imports of feed such as PKE.” Hoggard says the recent winter weather in the lower North Island and the South Island, and this ‘back to basics’ tactic, suggest milk production is unlikely to increase this season, contrasting with the last couple of seasons.

“With the belt tightening, farmers don’t need or want extra costs.

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“Maybe this could have been possible or more palatable in a good payout year, but it certainly isn’t when things look like they do now.

“I’m pleased farmers have spent a heap of money on environmental stuff during the good years. Now we’re back to basics, thankful for the improvements we have made.”

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DAIRY NEWS JULY 21, 2015

6 // RUATANIWHA WATER STORAGE

No-brainer in the certainty water brings PAM TIPA pamelat@ruralnews.co.nz

THE CERTAINTY water

brings to business and the potential for growth are two key benefits the proposed $275 million Ruataniwha water storage scheme will bring to the drylands of Central Hawkes Bay say farming proponents.

While the numbers don’t look too great for a dairy farmer to sign up to water this year in a low payout, the dam needs to be considered in the longer term, they say. And farmers can look at irrigating a part rather than their whole farm, which will also bring production and financial benefit.

They were responding to recent media comments by about six farmers from the region who say the numbers do not support signing up for the irrigation scheme.

Graham Anderson, of

Anderson Ag, a dairy support and mixed farmer in Central Hawkes Bay, has signed up to water from the scheme. He has experience of irrigation and knows its benefits.

“The biggest thing is it puts [certainty] into the business in terms of reliability of growth given we have more variability with our seasons now,” he says.

“It will not necessarily initially be more profitable but as [Central Hawkes Bay farmers] work more wisely with water we will be more profitable.

“Without doing anything extra and special, in the pastoral sense, it grows the additional feed at the times when you usually run into a deficit.”

This applies not only to summer but early autumn because that affects the following season. They have had prolonged dry periods for the last twothree years when autumn hasn’t “arrived on time,” he says.

“With sensible use of irrigation in our experience you can probably grow 50% more available dry matter with the use of the water and if you convert that back to whatever pastoral business you are in, it will pay the way.

It won’t necessarily make any money but it will pay its way from the extra production at the key times,” he says.

“Then it gives you the other strength of being able to have right numbers of stock when your growth is greater than your demand. You can actually carry extra stock for those other times.”

Anderson’s business is dairy support and cash cropping, and they do dry dryland cropping and irrigated cropping so already now use water. “It certainly brings a lot of options and some of those things haven’t been fully explored in Hawkes Bay,” he says. “In future there will be other uses that

evolve from it once we’ve got more water available.

“My personal take on it is that not every farmer in ‘central’ will want to water his whole farm but if he puts a percentage of his farm into it, that will ensure the rest of his business is pretty predictable. The real strength is that though it will have a cost relative to operating expenses, it would pretty comfortably cover those costs.”

But the farmer puts the certainty into his business rather than just saying ‘it has been a dry year and a bad year’.

“Rather than having farm revenues up or down 20% depending on the season he could actually move that part of the risk, or some of it, out of the business. That’s where I see irrigation has its real place.

“Once we have water and are smarter with it that’s when we get into things which become

The proposed Ruataniwha Dam is expected to boost dairy farming in the region.

more than a cost benefit.”

An example in the cropping side of his business: they grow a cash crop and then put behind that a winter feed crop so they get two lots of crop out of that land.

“Some of those sorts of things come into their own [with irrigation] so you’ve got a good handle on what you are going to produce for the year.”

For dairying, if a farmer knows he can harvest 12 tonnes of grass instead of 8t, his business will be more predictable and productive. Anderson says today it probably doesn’t stack up to pay land values plus water values and get returns on a dairy farm

this year.

“But we’ve got to look more inter-generationally – take more of a long-term overview. Water is widely accepted worldwide as a valuable commodity. I struggle seeing the wastage of it as it disappears out of our rivers, not producing anything and not benefiting anyone on the way.”

Dairy farmer Eliot Cooper, who has signed up for the scheme, says it means he can go from milking 700 cows to 1100 cows and employ two more fulltime people.

“It’s guaranteed production, that’s what it is,” he says. “It’s a no-brainer and anyone who thinks

it doesn’t stack up hasn’t done their homework properly. It’s as simple as that.

“It probably doesn’t stack up if you want to carry on sheep and beef farming but it certainly stacks up for cropping and dairy farming and every other avenue.”

He says a farmer does not need to do whole-farm irrigation but part of the farm. “That would ensure their summer feed,” says Cooper. “The numbers may not work for individual farmers looking at a whole farm changeover to irrigation, but I’m sure if they looked at a section of their farm under irrigation it definitely would work.”

Time to pull the plug – Greens THE GREEN Party is citing a lack of farmer sup-

port as a reason to pull the on the Ruataniwha dam proposal.

Green Party water spokesperson Catherine Delahunty says a media report which talked to six farmers in the region shows that many of the farmers who stand to directly benefit from the dam’s water can’t make a sound business case for their farm with the increased cost.

“With few farmers willing to buy into the

scheme it doesn’t make sense to build this environmentally destructive dam,” she says.

“The financial viability of the proposed dam relies on a mammoth leap of faith by all involved.

With many farmers unconvinced of the financial benefits, it is wrong for the Hawke’s Bay Regional Council to plan to spend $80 million of ratepayer’s money.

“Milk prices are currently at $4.50/kgMS, and it makes the business case for the dam for local dairy

farmers unsustainable. It is clear other producers also doubt the business case.

“We’ve opposed the Ruataniwha dam because of the detrimental effect more intensive farming will have on the catchment and the cost to the local community. These compromises don’t even come with a financial payoff, and the question has to be asked, ‘when will the regional council pull the plug?’ ” Duncan MacLeod, commercial manager,

Hawkes Bay Regional Investment Co, overseeing the project, told Dairy News it would be easy to find six farmers who did not see signing up as economical for their business and there were probably a lot more. But out of 414 farm properties contacted they needed about 140 to sign up to be viable and already the firm has 104 and many more strongly interested. @dairy_news facebook.com/dairynews

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RUATANIWHA WATER STORAGE // 7

Good dairy potential with Ruataniwha water pamelat@ruralnews.co.nz

CENTRAL HAWKES

Bay has good potential for dairy with irrigation, says Duncan MacLeod, commercial manager, Hawkes Bay Regional Investment Company.

The Hawkes Bay Regional Council-controlled company is managing the Ruataniwha water storage scheme through the consent phase.

“A few farms in Central Hawkes Bay are the largest of any in New Zealand so there’s opportunity for some scale,” MacLeod told Dairy News. “There’s plenty of access to grazing land for young stockand it has good potential as a dairying area. It just needs reliable irrigation; it is a dryland environment.”

Land values in Central Hawkes Bay for flat land with some infrastructure are about $20,000/ha.

“That’s a pretty good buy – good flat land in not too remote a location, and as long as the scheme comes about there will be a reliable source of irrigation water.”

MacLeod does not think many existing land owners will convert to dairy, so initially any dairy expansion from the irrigation scheme will be by those already dairying. “Where dairy might play a bigger part is as the scheme comes online and water is available; then it will be an opportunity for conversion by new owners.”

More people interested in irrigated farm systems will come into the community as properties are sold.

That will be a mix of dairy and arable type farming systems, he says.

MacLeod says the expectation of those who would sign up for water use under the Ruataniwha scheme was about one third dairy, one third sheep and beef and one third cropping. “So far we’re staying pretty true to that, so over one third of the water has gone to dairy and

dairy support,” he says.

This year’s payout is no doubt having some impact on farmers’ outlook, he says. But it is just another glitch in the commodity cycle and most people would expect a better medium-to-long term outlook.

For the scheme to go ahead, 40 million m3 water of the total storage of 96m m3 needs to be signed up to a contract. The company already has 20m m3 signed up. They have another 14m m3 in contracts out with farmers but not yet returned.

“Of the people who have said they will take water, we’ve got 34 out of 40, a pretty high result.

But of the 34, in total only 20 have signed and sent it back.”

They have contacted 414 farming properties; some farmers own more than one of those. “In some cases, where people have two farms they are looking to irrigate one of them, certainly in the first instance.”

He is not surprised a reporter can find six farmers who say they can make the numbers work. “Out of 414 you would expect to find a certain percentage who won’t be looking to take water from the scheme. We need about 140 farmers signed up to reach the 40m m3 and currently we have 104. We are looking pretty good I would have thought.”

He points out there is no requirement for farmers to invest capital in the scheme, though people can invest if they want to or have an “arms length” contract.

Strict limits have been imposed on N leaching in the catchment area. But while farming within limits was a “bit scary for everyone”, plan changes would affect the region whether they had a water storage scheme or not, he says.

However farmers wanted to have certainty about the limits so they could see how it affected their businesses.

The deadline for any

appeals to the N limit was last Friday (July 17).

If there were no appeals the investment company

would hope to have full financial details on the scheme finalised about November.

Duncan MacLeod (centre), Hawkes Bay Regional Council at a field day.

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could be facing another wave of job cuts next month.

Last week, the co-op said 523 jobs would go in September from its central procurement, finance, information services, human resources, strategy and legal teams.

And it says that on August 5 it will begin consulting on new business structures with people in administration, ingredients sales, consumer, marketing, R&D, communications, health and safety, food safety and quality, group resilience and risk, property, procurement and change management.

The 523 roles will be disestablished at a one-

off cost of $12m-$15m, making payroll savings of $55m-$60m.

Chief executive Theo Spierings says the news had been unsettling for the people affected but the co-op had to change to remain strongly competitive in today’s global dairy market.

“Reducing the number of roles in our business isn’t about individual competency; it’s about continually improving the way we perform.”

Spierings says the co-op’s leaders are working to increase value right across the organisation.

“The key aims of the review are to ensure the cooperative is best placed to successfully deliver its

Theo Spierings.

strategy, increase focus on generating cashflow, and implement specific, sustainable measures for enhancing efficiency.

“A simple example already identified by our supply chain team is [better use] of export containers leaving our

distribution centres, saving up to $5m a year.”

The review includes measures to improve profitability in Fonterra’s Australian business and extra measures to achieve more value. @dairy_news facebook.com/dairynews

Chinese rebound offers hope

*While stocks last

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FONTERRA STAFF

FROM PAGE 3

in the Chinese economy, only a “brave person” would forecast a lift at the next (GDT) auction, Stephens says.

“Even if auction prices rise, say, starting from September, you’re still looking at a very low payout this year.”

ASB rural economist Nathan Penny told Dairy News last week’s drop was expected. “This related to the fallout from the Chinese market concerns and perhaps to a lesser degree Greek concerns,” he says.

The bank expects some rebound from the losses of those last two auctions.

Efforts to stabilise the Chinese stockmarket and better-than-expected growth numbers out for China last week, could see dairy prices to regain some ground.

“Our $5/kgMS has built in some recovery along with the weakness in the New Zealand dollar. We are currently sitting at around $1800/t for

whole milk powder (WMP) but we see it averaging $2400/t for the season,” Penny says. “For that we need to see a steady recovery -- a bounceback from the two recent and a slow recovery over the season.

“Overall, given where the dollar is getting to, we’re sticking to our $5/ kgMS for this season. We view the dollar heading down to 61c by the start of next year, so that gives the milk price some offset to the weak current auction prices.”

Jones, from PPB Advisory, says both the European and the Chinese situations affected the latest GDT. “You would certainly like to see it come back in the short term for stability within the industry in New Zealand,” he says.

Fonterra will have to bring back its forecast. To be pragmatic, he says, you would be looking at a forecast around $5/kgMS.

Nathan Penny, ASB.

The average price at the July 15 GDT event was US$2082. Whole milk powder declined 13.1% to US$1848, skim milk powder -10.1% to US$1702, anhydrous milk fat -10.6% to US$2621, butter -9.5% to US$2460; butter milk powder -4.4%, cheddar -13.9% to US$2613, and rennet casein -8% to US$5430; lactose rose +1.9% to US$549.

IN BRIEF Nutrient management milestone THE NUTRIENT Management Adviser Certification Programme (NMACP) hit a milestone this month, with the 100th person meeting all of the requirements to graduate as a certified nutrient management adviser.

Launched in late-2013, the NMACP is designed to ensure qualified advisers provide effective and consistent nutrient advice to farmers, with all 100 graduates in the programme demonstrating a high standard

of knowledge and competency in nutrient management.

It was established as part of transforming the dairy value chain, a Primary Growth Partnership (PGP) programme with the Ministry for Primary Industries.

Through the programme, DairyNZ commissioned the Fertiliser Association of New Zealand to develop the NMACP—both are now involved in its ongoing governance.

“Nutrients drive pasture and animal production on a farm,

but losses from land to waterways, particularly of nitrogen and phosphorus, can lead to increased growth of weeds and algae,” says Dr Philip Mladenov, chief executive of the Fertiliser Association of New Zealand.

“The NMACP is helping farmers to get good nutrient management advice so they can plan to efficiently use nutrients for onfarm production − and minimise the potentially harmful losses,” he says.

DAIRY NEWS JULY 21, 2015

NEWS // 9

Farm like dad – Kelly pamelat@ruralnews.co.nz

FARM LIKE dad or the uncles used to farm during a low payout year, advises Chris Kelly, former Landcorp chief executive for 12 years.

Farming costs should be flexible so they can be adjusted, says Kelly, now a director of prominent agri businesses, including Pengxin NZ Farm Management Ltd. “I’ve been around for a long time. I remember when we were at the Dairy Board and we celebrated a $3/kgMS payout,” Kelly told Dairy News.

“The fact is the majority of our products are still exported as commodities

and commodities go up and down in cycles. This is no different. In two or three years it will be back up again.”

But one of his worries – and what has changed in the dairy industry – is that until a few years ago most farmers relied on all grass farming.

“More and more farmers now rely on concentrates to keep their cows cycling, and getting them in calf and good condition scores and all that sort of stuff. So some of their costs which should be variable and which they should be able to withdraw in a low payout year – they haven’t been able to do that; they have a high cost structure.

“In my view the suc-

‘Buy right, control costs’ SPEND ON the right things and control your costs: that’s DairyNZ’s message to farmers struggling to make ends meet as global dairy prices keep tumbling.

DNZ has created a new online resource detailing the financial spending of top performing dairy farms.

This is to help farmers cope with lower milk prices and set the industry up for a speedy recovery.

Economic modelling shows if farmers can curb their loss by up to $1/kgMS this season they could recover from the low milk price three-four years faster.

General manager R&D David McCall urges they spend on the right things and keep good budgetary control of costs.

“This is where we can learn from the best, so we’ve created new online information to help show farmers where to prioritise spending and how to make savings.

“Dairy farmers have asked us for more practical and specific data on which to benchmark themselves; we have listened to that feedback.

“We’ve assembled in-depth budgets from top performing farms with less than $3.50/kgMS cost of production…. Many of these farmers have learnt lessons from past downturns. We’ve ‘bottled’ that experience by creating a new online benchmarking tool that will enable dairy farmers to identify areas for improvement.

“The information will show where and how these guys get the most from their dollar. It is more than just the broad spend but a drill down into the detail.”

DNZ estimates the average NZ farm will lose $150,000-200,000 at the current forecast payout for 2015-16. The average farmer could take a few years to repay this loss. The top 20% farmer would be able to recover much sooner.

This illustrates the importance of challenging your budget to improve your business, says McCall.

“Any savings or efficiencies will mean less money going into debt and consequently interest payments.

“Reviewing your budget on a line-by-line basis is a good first step, especially at the start of the calving period. The logic is to ask the question about each line and the consequences of any action. Do I retain the expense, can I reduce it, can I defer it (say to next year) or can I remove it? Fertiliser, for example, is a big ticket item that can be reduced on many farms.”

cessful dairy farmer in future will firstly remember that the cheapest feed is grass, secondly make their costs as variable as they can so in bad years they can reduce their costs, and thirdly won’t rely entirely on concentrates because in a bad year you lose your shirt.”

Kelly says in the 1-5 system (system one farms are all grass and system 5 are all concentrate) farms in New Zealand used to be systems 1, 2 and 3. They are now around 3 and 4.

“So they have shifted up the curve as we have had higher payouts, more concentrates, more milk,

more money and in a higher payout year more profit. But in a low payout year, you lose money.

“My advice to young dairy farmers is remember how dad, the uncles and those guys used to farm – all grass farming, keeping costs right down in bad years,” Kelly says.

Former Landcorp chief executive, Chris Kelly.

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DAIRY NEWS JULY 21, 2015

10 // NEWS

Oz dairying attracts big-ticket buyers AMY BELLHOUSE

THE LATEST Dairy

Australia National Dairy Farmer Survey (NDFS) shows farmers in many regions investing, or plan-

ning to invest, in their businesses, because of robust business confidence.

And dairy processors have spent tens of millions of dollars on new and upgraded plant.

Investors are also getting into dairying. Gerry Harvey, the Harvey Normans boss and one of Australia’s richest people, is to invest up to A$80m on an intensive dairy operation near Shepparton, Victoria,

indicating greater confidence in dairy’s long term viability.

This follows the news that Beston Global Food Co has bought the remaining assets of United Dairy Power (UDP), concluding

a busy half year for corporate dairy investors, many

Gina Reinhart (second from right) at the November announcement of her joint investment with Chinese partners in the Queensland dairy industry.

previously outside the industry.

External capital will form a large part of Murray Goulburn (MG)’s new capital structure, much in the news recently.

The target date for the unit trust to be listed on the ASX was July 3, listing at A$2.10 per unit. Unitholders will have exposure to MG’s business but will not have voting rights in MG or its operations.

Saputo-controlled Warrnambool Cheese & Butter (WCB) lifted its presence in consumer branded cheese by buying the ‘everyday cheese (EDC) business’ of Kirin-owned Lion Dairy & Drinks (LDD).

The EDC business cuts and wraps cheese made by WCB and sold under ‘everyday cheese’ brands Coon, Mil Lel, Cracker Barrel and Fred Walker and others. Saputo entered the Australian industry in late 2013 when it won a bidding war for control of WCB. United Dairy Power (UDP) was put into administration in late April after its receivership last year. MG bought the Caboolture cheese brand and reportedly will move the cheese cut-and-shred equipment to its Cobram site.

Burra Foods picked up UDP’s milk depot at Poowong. Initially, no buyers were found for the South Australian processing plants at Murray Bridge and Jervois. But these were recently bought by Beston Global Food, Adelaide. It will upgrade the factories, raise production capacity and make new products for Asian markets. The factories are scheduled to reopen in September.

Meat processor Midfield Group, as announced, will build an export milk powder plant at a former McCain potato factory at Penola, in southeast South

Australia. Likely start-up date is July 2016, first with 160m L/year. The company has approval to build another powder plant and to enlarge cold storage at Warrnambool, but building will wait until the Penola facility is operating. The two plants will cost about $130m.

Other wealthy Australians are also buying in at farm level. Pending official approval, Moxey Farms will be bought by the Australian Fresh Milk Holdings consortium (AFMH), made up of Leppington Pastoral Co, New Hope Dairy and Freedom Foods.

The Moxey family will keep running the operation and will buy a strategic stake in AFMH. Growing processor Australian Consolidated Milk (ACM) and Thailand’s Dutch Mill intend to buy farms and lease them to proven dairy farmers unable to afford their own properties.

The joint venture is aimed at broadening ACM’s supply base, while allowing Dutch Mill to source milk from ‘accredited farms’. ACM produces UHT milk at Shepparton via Pactum Dairy Group, a joint venture with Freedom Foods.

European pension fund-backed Ace Farming recently added two farms in northern Victoria to its holdings, and ASX-listed Australian Dairy Farm Group plans to raise up to A$17.7m to buy three more farms in southwest Victoria, doubling its milk production. The company presently owns four farms.

With the major processors opening the 2015-16 season with milk prices at A$5.60/kgMS and flagging a close of about A$6.00/ kgMS for the third consecutive year, there may be more big ticket announcements.

• Amy Bellhouse is industry analyst with Dairy Australia.

Image courtesy of Te Aroha Museum

Prosperity comes from productivity.

Productivity comes from improvement.

Now let’s talk about where improvement comes from.

In 1814 there were two cows and one bull, brought into New Zealand by Samuel Marsden. Today the dairy industry has 4.9 million cows and processes 1.83 billion kilograms of milk solids per year.

increased by 1.3 million kilograms of milk solids. In the last 20 years alone, increases have averaged 93kgMS per cow - with 60% of these gains coming from genetic improvement.

In early days, if you were milking more than three or four cows, you were a full-time farmer. Today, two people can milk 800 to 1,000 cows in a couple of hours.

Once, farmers knew their individual cow’s quirks, characteristics and names. Today, farmers have the smallest details of every one of their hundreds if not thousands of cows at their fingertips.

ELE-01656C-DN

Between 1979 and 2014, production

The story of the New Zealand dairy industry has been one of constant improvement. And at LIC, we’ve been part of that story for over 100 years, helping improve the productivity and prosperity of our farmers. Helping make New Zealand dairying the world leader that it is.

Improvement. It’s in our nature.

It’s in our name.

DAIRY NEWS JULY 21, 2015

12 // NEWS

Farm confidence slips further FARMER CONFIDENCE has moved

further into negative territory, as shown by the Federated Farmers’ newseason July 2015 Farm Confidence Survey.

Pessimists far outnumbered optimists over the economy in general and farm profitability.

For dairy, 44.6% of

William Rolleston

respondents expect economic conditions to worsen, 16.5% expect them to improve and 36.5% expect them to stay the same over the next 12 months. The resultant net 28.1% with a negative outlook is 6.9% more than in the last survey in January.

For their own farm profitability, 70.5% expect

it to worsen over the next 12 months, 20.7% expect it to stay the same and 8.1% expect an improvement.

That results in a net 62.4% with a negative outlook – a 9% improvement on January.

But Federated Farmers president William Rolleston says while initial payout forecasts from

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Pessimism about profitability is reflected in farmers’ spending intentions. A higher proportion of farmers expect to reduce spending to levels not seen since the global financial crisis. The intention to close cheque books is especially strong among dairy farmers.

More farmers expect to increase debt than reduce it. Banks’ support will be important in this challenging period.

The farm labour market remains tight but appears to have eased slightly since January.

Slightly fewer farmers report it is harder to find skilled and motivated staff.

The biggest concern for farmers is commodity and farmgate prices, cited by nearly 37% of farmers.

This was followed by regulation and compliance costs (17%), the weather (13%) and industry specific issues (11%). “A jump in concern about industry specific issues reflects farmer dissatisfaction with the performance of Fonterra and the meat industry,” the report says.

Farmers’ highest priority for the Government is regulation and compliance costs. At least 24% mentioned it generally or raised specific hot topics such as health and safety and the RMA. As with the last survey the overall results mask industry and regional variations, and the report discusses these.

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dairy companies indicates a modest improvement for 2015-16, more recent falls in world commodity prices is causing economists to revise them down.

“Most dairy farmers should be able to cope with one bad season, which 2014-15 most certainly was. The real test is coming this 2015-16 season. If it repeats last season more and more dairy farmers will find themselves under severe pressure,” the Feds report comments.

World dairy prices are in the doldrums. “Fonterra’s initial forecast for 2015-16 is $5.25/kgMS, up $0.85 on its initial forecast the previous season.

However, with the Global Dairy Trade continuing to fall since the opening forecast… the forecast is looking more and more challenging. Most dairy farmers expect their profitability to worsen.”

The higher-thanusual dairy cow cull has increased supply at meat processors and reduced schedule prices, the report says. Production expectations, hit in January by the drought and the low dairy payout, have also eased back further in this survey, although remain positive.

A silver lining has been a 12.5% drop in the New Zealand dollar since April.

This should buffer the weak world prices. They could fall to more of a ‘fair value’, given the 25% fall in world commodity prices since March 2014.

Headline results of the Farm Confidence Survey for all industry groups: ■■ A net 28.2% of respondents expect general economic conditions to worsen in the next 12 months.

■■

42.9% expect their own farm’s profitability to worsen in the next 12 months.

■■

16.1% expect to increase production in the next 12 months.

■■

38.5% expect to reduce on-farm spending in the next 12 months.

■■

25.7% expect to increase their farm debt in the next 12 months.

■■

17.4% found it harder to find skilled and motivated staff in the past six months.

■■

Respondents’ biggest single concern was commodity and farmgate prices, cited by 36.8%.

■■

Respondents’ highest priority for the Government was regulation and compliance costs, cited by 24.4% of respondents.

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DAIRY NEWS JULY 21, 2015

14 // NEWS

Out of the blue come five f SUDESH KISSUN sudeshk@ruralnews.co.nz

MAIN CONTRACTORS

A MAJOR dairy conver-

❱❱ J Swap Ltd

sion, transforming 2500ha of forestry into five farms near Taupo, is on track to start milking on August 1.

Ata Rangi Pastoral Ltd aims to produce 3 million kgMS from the five farms by 2020.

Owned by two Kiwis -- farmer Gerard Donald and financier Brent Cook – Ata Rangi last year bought 5732ha of forestry in Whakamaru. The farms will stretch from Tokoroa to Whakamaru.

About 2400ha will remain in forestry, 500ha will be cropped and grazed and 233ha riparian planted.

Contractors are busy clearing land, removing stumps, cultivating grass, building milking platforms and lining effluent ponds.

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Milk shed nearing completion.

Stephen Veitch

Ata Rangi general manager Stephen Veitch says contractors are working six days a week to ensure the Atiamuri farm starts

production on August 1.

About 1600 cows now grazing off site will move to the farm on August.

Each farm will have

1500 cows – three cows/ ha. Cows will be moved between farms as each farm comes on line, Veitch says.

TRUSTING IN THE LONG TERM THE DEVELOPERS of the Ata Rangi Pastoral project near Taupo are taking a long term view, says general manager Stephen Veitch.

This is that their Kiwi-owned family asset will pay dividends long term.

The low payout is on their minds but they are confident prices will bounce back by the

time the five farms are in full production, he says.

“One of the owners is a dairy farmer and the other a financier; they have researched the industry at length and have looked at supply/demand demographics.

“They are taking the long term view; while we’re developing in a low payout environment we believe in the payout coming

up as we get into production.”

However, Veitch says the owners are reviewing the farm systems and discretionary spending.

“We are forecasting 3 million kgMS with a system 3 and 4; we are reviewing the cost of additional feed going in and whether we pull it back to a system one or two.”

Milk will be supplied to Fonterra on six- and 10-year contracts, allowing the company to stagger the purchase of Fonterra shares over this time.

Sustainability is a major focus for Ata Rangi; main contractor J Swap has used a GPS-guided digger to outline the farm according to three rules: no disturbance of slopes greater than 25 degrees, no discharge of soil or sediment into waterways (a 10m boundary has been set around waterway sites) and there is a setback of 25m from the Waikato River and lakes.

Veitch says Ata Rangi is building a business that is economically and environmentally sustainable.

Transparent communications with local councils and iwi is part of its strategy.

“The project was finalised quickly and we kindof popped out of the blue; so there were a lot of questions from the community, some of whom don’t support forestry conversions.

“We’ve had several meetings with the local iwi -- Raukawa Charitable Trust – and the local regional councils to set the record straight. We

strongly believe economic and environmental sustainability go hand-inhand; you have to be in the black to be green.”

Ata Rangi is transparent about its water use; telemetry will be used to measure surface and groundwater takes.

“By shutting off valves we can only take 30 cumecs (m3/sec) out of the the river and 15 cumecs out of the bore holes; this information will be in the cloud for everyone to see and is part of our transparency policy.”

Each farm will have weeping wall effluent

DAIRY NEWS JULY 21, 2015

NEWS // 15

e farms management; solids will be separated from the liquid before the pond and irrigation on the land.

Gibson Construction is the dairy shed builder and Waikato Milking Systems is providing the milking gear. About 54 machines and 70 people are involved in the conversion.

Veitch says co-owner Gerard Donald has worked with the companies below on projects.

He says J Swap is pro-

viding two out of the six crews. “We find J Swap very helpful; they have a site foreman who is our first point of contact. They have experienced operators and good machinery with few breakdowns.”

This is important because time is tight.

Ata Rangi’s five farmsAtiamuri, Mangakino, Twin Lakes, Tokoroa Downs and Whakamaru will start production over the next 12 months.

ATA RANGI HISTORY ATA RANGI Pastoral Ltd was founded this year by Brent Cook and Gerard Donald.

The company was set up in response to growing demand for quality protein worldwide, particularly in Asia, and the changing tastes of wealthy consumers.

“This has created increased demand for the high quality, safe food New Zealand farming systems are known for. ARPL is a long term project to produce [such] food in a sustainable, innovative and economic manner for the benefit of NZ.” Ata Rangi says its farms signify a new beginning, or ‘dawn sky’, reflecting the transformative nature of land conversion: land in forests since the 1920s will be livestock pastoral farms.

ARPL’s environmental plans are: ■■ Fencing all waterways with a minimum 10m set back ■■

At least 0.5m perimeter earth bund to prevent sediment and nutrient runoff

■■

All nutrient application mapped by GPS

■■

All water usage monitored

■■

Water efficient cowshed design, with green water recycling

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Effluent spread from not more than eight cows/ha, greater than the minimum required.

Contractors are working six days a week on the project.

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DAIRY NEWS JULY 21, 2015

16 // WORLD Australian farmer Cheryl McCartie wants opening milk prices announced earlier.

Earlier milk price call from Oz farmers AUSTRALIAN FARM

leaders have again called for earlier forecasts of seasonal prices, eyeing companies that announced this season’s prices only one week out from the financial year.

United Dairyfarmers of Victoria president Adam Jenkins says the industry wanted profitable growth and would benefit from earlier forecasts of prices.

“We understand the market is volatile and

everyone’s cautious, but we should get earlier notice,” he says.

“It is tricky because anything could happen in a month or so before the opening price, but an indication of a 12-monthly rolling average would be good for our businesses. It would help with planning.

“We’re generally autumn calvers in Victoria and you’re finishing off the last season’s pricing and then you’re not sure what the system looks like heading into the next season. As soon as you get a clearer line of sight you can make on-farm decisions.”

Fonterra last month said its opening average farmgate milk price would be NZ$6.30/kgMS for its Australian suppliers, who don’t own shares in the co-op. In May Fonterra announced an opening forecast price of $5.25/ kgMS for its New Zealand farmer shareholders.

Fonterra is also forecasting an average closing farmgate milk price range of NZ$6-$6.83/kgMS for Australian suppliers this season.

Fonterra competes with Australian dairy co-op Murray Goulburn and foreign-owned processors Lion and Saputo for milk. Unlike NZ, where

Fonterra dominates the market, in Australia MG, the biggest player, is the price setter.

Murray Goulburn last month also announced an opening forecast price of NZ$6.30/kgMS. The MG price for the southern milk region was forecast during its share offer at the start of May and farmers want those earlier predictions to continue.

South Australian Dairy Farmers Association president David Basham says that under their current mode of operation it would be difficult for processors to announce prices earlier, but he supported the call for lead-up predictions.

“Murray Goulburn this year with their capital raising said where they hoped the price would be and it hasn’t changed. Farmers are usually guessing until this point; there should be some predictions about what’s coming.”

McCartie says having earlier notice of likely prices would help farmers.

“The earlier we see those figures the better for everyone’s planning,” she says. “A lot of us are dealing with banks who want to know what’s happening. The more planning we can have, the better it will be.”

BREATHING EASIER AT THE BANK FARMERS SUPPLYING Fonterra’s Wagga Wagga factory in the NSW Riverina have been offered a new pricing agreement aimed at taking the volatility out of milk income.

After years of farmer lobbying, the processer offered a ‘cap and collar’ option, which will put a floor and a ceiling on the farmgate milk price for three years.

About 20 farmers from Wagga Wagga and Finley districts supply the factory that produces Riverina Fresh products for the east coast market.

Euberta farmers Neil and Simone Jolliffe say they’ve sought this certainty since buying their farm seven years ago.

“When we bought the farm we were on A56 cents/L and the following year we dropped to A36c,” Jolliffe says.

“It’s come at a good time for us. We’re looking to grow the business but we didn’t want to grow it and take a big hit like we did in 2009. Now we’ve got an assurance that for the next three years this will be our price.”

Neil Jolliffe estimates this will mean his milk cheque will only fluctuate by about 4 cents/L over the next three years.

Know your cows almost better than you know your children.

Problem. It’s cold, wet and dark and you’ve got a whole bunch of newborn calves. How do you know whose calf is whose with any certainty?

ELE-01699B-DN

Further problem. When you’re seeking genetic gain in your herd, how can you maximise it when there is even the slightest uncertainty in the breeding worth of your replacements?

The solution would seem simple. If you know the genetic make-up of the cows in your herd then it would be a simple matter to match calves to dams. But like all things simple, sometimes it’s easier said than done.

In 2009 we developed our G3 DNA parentage verification programme. Today that programme allows over a thousand farmers to match calves to dams with extremely high accuracy.

At LIC, our business is about improving the genetics of the national herd and figuring out how to verify parentage is an issue that’s very much part of that business.

So records are more accurate, the right calves are kept year on year, and maximum genetic gain is achieved.

Improvement all round.

DAIRY NEWS JULY 21, 2015

18 // WORLD

Hard-nosed grocery firms ganging up on Oz ‘big two’ JO BILLS

AUSTRALIAN SUPERMARKETS have

been in the gun for years for the way they treat suppliers and farmers.

Supermarkets are a key channel to the dairy industry’s main market – Australia.

Dairy Australia figures show that of 60% of production sold at home, 58% of product volume and 52% of drinking milk is sold via the grocery channel.

Farmers may be forgiven for imagining the Coles or Woollies head office bosses smoking expensive cigars and stroking white cats while they crush suppliers and rake in the dollars.

Australia’s major retailers are profitable by global standards: Woolworths’ 2014 earnings margin of 8% is double the average of its international peers (4.2%), and Coles’ margin of 5.3% is also relatively high.

But increasingly these two big players aren’t getting things all their own way. Coles and Woolworths are dominant, but the “80% share” figure usually bandied about is overstated. Analysis from Nielsen and Moody’s released in March put the duopoly share of shopper spending at 60% by value for FY2014.

Duopoly perhaps not, but still hugely influential. Then there’s German interloper Aldi steadily increasing its share to 8%,

nipping at Coles and Woolies with its offering to save shoppers’ money.

Moody’s expects Aldi’s east coast growth to continue at 5-6% in store numbers a year over the next five years -- about double that of Woolworths and Coles who will keep getting higher sales out of existing floor space.

Last month Woolworths chief executive Grant O’Brien quit, and there was news of 1200 job cuts, indicating the pressure on this previously unassailable retailer.

Its shares have dropped 30% in the past 12 months, blamed on lacklustre sales results, particularly in non-supermarket divisions.

In supermarket sales Woolies has lost its edge:

same store sales growth is virtually flat, and rivals Coles and Aldi have outmanoeuvred and outperformed the market leader.

Before O’Brien quit Woolies unveiled a threeyear strategy, including the funding of price cuts aimed at fending off the hard discounter Aldi, Costco chain and the potential new German entrant Lidl. They have also needed to counter Coles’ ‘Down Down’ mantra.

As the dust was settling around Woolworths last month, Coles announced a massive review of its own ranges, including an overhaul of products that rely on discounts to get sales.

Coles says the 24 month review will clear shelf space for new, innovative

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brands. It sounds good, and it doesn’t rest completely on selling things dirt-cheap, but any brand owners not growing sales will urgently focus on performance.

With a history of taking leads from UK supermarket trends, our retailers are watching the struggles of Tesco, Morrisons, Sainsbury’s and Asda as the same German discounters re-shape the sector and go mainstream.

Cash-strapped UK shoppers, after the GFC, at first tried the discounters, warming to the offering.

Attempts at price matching by the big guys have resulted in a loss in sector where profit margin is likely to be permanent.

Moody’s rating agency said in its 2014 report, “Consumers are voting with their feet and are more inclined to do their

primary grocery shopping at discounters than at any time in the past. We don’t anticipate the value or quality perception of the discounters will deteriorate as disposable incomes improve and as a result we believe Aldi and Lidl will continue to gain market share.”

In Australia, both the locals will be looking for ways to stay ahead of the disruption threatened

by Aldi (and potentially Lidl’s) simplified, streamlined business models.

So while the Coles and Woolies dominance has been challenging, will a future with more players be better for suppliers and farmers? Increased competition is good, right? The question is who will it really be good for? Consumers have essentially enjoyed zero food price inflation over

the past five years, as Coles and Woolies have slugged it out on price, egged on by Aldi’s growth.

Enter Lidl, and the imperative to keep prices low to compete with another hard discounter would be even stronger.

At supermarkets, everyday staple items like milk and cheese will remain at the core of value-focussed strategies to protect and increase market share. Growing volumes and unit values for dairy products in this environment will get tougher.

Product and marketing innovation will be needed for the domestic dairy market to continue to be a stable alternative to the export trade.

• Jo Bills is a director of Melbourne-based firm Fresh Agenda. (www.freshagenda.com.au)

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EUROPEAN DAIRY co-op FrieslandCampina has opened a sustainable ‘dairy zone’ in Vietnam where it expects to run 50 dairy farms and produce 7 million kg of product.

An opening ceremony was held on June 24, in Moc Bac municipality in the northern Ha Nam province, on a 66ha property flagged as the co-op’s model dairy zone.

Eight more dairy farms are planned by the end of 2018; two pilot farms are now running. The 50 farms should produce at least 7m kg of fresh milk per year and create 345 jobs, the co-op says.

The main partner, FrieslandCampina Vietnam, will manage and direct investment in the project.

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DAIRY NEWS JULY 21, 2015

WORLD // 21

More money from milk than milk from money BUILDING AN Australian dairy industry that is sustainable and profitable should assure long-term success, says Dairy Australia chair Geoff Akers.

He was speaking at the launch of the ‘Sustainable Farm Profitability 2015’ report in Victoria this month.

The report is a tactical and strategic management guide to enabling dairy farmers to make ‘more money from milk, than milk from money’, Akers says.

Geoff Akers

“It defines what ‘profit’ means and gives advice

on how farmers can make their businesses more

WHAT FARMERS CAN’T CONTROL MACRO EFFECTS farmers mostly cannot control: ■■ Weather: prolonged, severe drought, floods, cyclones, heat waves and bushfires.

■■

Milk and input price volatility, particularly after 2006.

■■

Finance costs and fluctuations in asset values.

■■

Government policy, e.g. Murray Darling basin water policy, and the carbon price.

■■

Economic shocks, especially the global financial crisis effects on farmgate milk prices and land values.

■■

Milk processors’ pricing structures and strategies.

■■

Retail milk pricing and discounting strategies.

successful – as shown by practical examples from data provided by farmers and experts.”

For ten years Australian dairy farmers’ profits have been under pressure.

Except for Tasmania, the industry has not consistently grown.

Yet better-performing dairy farms in all regions have profited, making as much or more money than other farming sectors and many other industries.

Australian dairying goes on in all sorts of climate zones: subtropical Queensland and Northern NSW; temperate, oceanic ‘cold’ Tasmania and Southern Victoria; and the inland river regions of Northern Victoria and southern/central NSW with a more continental weather pattern.

Production systems can range from mostly (>85%) grazed pasture to full confinement/zero grazing. And there is a variety of milk processor pay structures and seasonal price incentives.

As a result, there is no single silver bullet that ensures profitability, says Dairy Australia. But though sustaining farm profits long term may be challenging, it can be done.

Australian Dairy Industry Council chairman Noel Campbell says profit does not depend entirely on expansion and size – especially not if expanding means spending more to increase output.

The report recognises that dairy farms are much more successful when farmers manage well across the board, balancing technical and financial skills so as to allow business to flourish and better mitigate risks.

State politicians and Federal Minister for Agriculture Barnaby Joyce endorsed the industry’s initiative.

Said Joyce, “With volumes and values of global dairy trade expected to grow, driven by increasing demand, our opportunities in overseas markets will depend on doing what we’ve always done well – but more

effectively.

“Dairy producers looking to build their farming and business management skills and identify opportunities to improve their on-farm business operations will find advice and ideas here,” he added.

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DAIRY NEWS JULY 21, 2015

22 // OPINION RUMINATING

EDITORIAL

Stare hard at this opportunity

MILKING IT...

Reports of our death exaggerated

SETTING ASIDE the hype and misinformation broadcast on the nightly news, New Zealand’s live export trade has successfully resumed: after 15 days at sea the MV Nada disembarked its cargo of sheep and cattle, alive and well, into quarantine in Manzanillo, Mexico.

The headlines were typically misleading: animal rights activists and opposition politicians set the bait and the TV news networks swallowed it whole, hysterical about supposed animal cruelty and deaths.

The reality was much different. The 0.3% mortality rate on board at docking was found lower than normal farm attrition rates – 136 sheep and one cattle beast lost.

Says the South Canterbury livestock agent and organiser of the shipment, Peter Walsh, the ship was loaded to well below its capacity of 110,000 sheep and 20,000 cattle, allowing the stock to move around. The sheep arrived at Mexico on average 4kg heavier than when they left NZ.

Rumour mongers stay with it

DEVELOPERS OF a big dairy conversion near Taupo are doing everything by the book – consulting local councils and iwi, sticking strictly to environmental guidelines and transparently communicating with locals.

But as usual some people aren’t convinced.

The developers have faced accusations of removing mountains and even fracking.

This project proves sustainable dairy farming can be done. And it also proves the sceptics will always be there to throw a spanner in the works.

Happy birthday you old bovines TWO RETIRED cows in Waikato have reached extraordinary birthdays.

Blackstar Trace and Bear Blanche have reached 21- an extraordinary age for a cow, says Charbelle Farm owner Dyanne Osborne.

It’s double the normal lifespan, “Almost unheard of,” says Osborne.

“We had a party for them when they were 20 because we didn’t think they would get to 21 but they have.”

Bear Blanche bore 19 calves and Trace 15.

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Super farm?

A CHINESE-RUSSIAN joint venture plans to build a 100,000-cow dairy farm in northern China, but one analyst has serious doubts the project will achieve such scale.

Officials in Heilongjiang province said recently that building had begun, backed by a Russian company, Severny Bur, better known for making mining equipment, and Chinese company Zhongding Dairy Farming.

The location is Mudanjiang, population two million.

Russia’s embargo on dairy products from the West, is forcing companies and officials to look to look elsewhere for dairy supplies.

THE END of the tunnel is still not showing any light for farmers.

Six months ago they were told to expect a bounce-back in global dairy prices about now. But last week’s Global Dairy Trade results show no sign of recovery.

The latest auction was a shocker, the GDT price index dropping 10.7% on the last sale two weeks ago and wholemilk powder prices taking a 12-month-record drop.

Whole milk powder -- accounting for 75% of Fonterra’s farmgate milk price -- fell in price by 13.1% to US$1848/t, its lowest level in six years.

With last year’s Fonterra farmgate milk price standing at $4.40/kgMS or the dividend included $4.60-$4.70 for a fully shared up farmer, farmers now face two consecutive seasons of extremely low milk prices.

Most farmers can’t break even at such a low milk price. Many will pull back on discretionary spending, rightly so.

But as DairyNZ says, farmers can and will use the opportunity to strengthen the industry. Yes, it will be very challenging, but the opportunity to increase the industry’s resilience is there to see; we simply need to farm more efficiently.

Ultimately, this challenge could make us more competitive if we accept it by driving efficiency throughout our businesses.

Now’s the time to budget for next season; the payout may be out of your control but the cost of production onfarm is not.

It’s worth repeating here DairyNZ’s advice to review budgets line by line. Question every line: do I retain the expense, can I reduce it, can I defer it (say to next year) or can I remove it?

Below is an example of the process: • Retain spending that has a direct impact on current profitability, e.g. fertiliser N to fill feed deficits, preventative animal health vaccinations, metabolics and minerals.

• Reduce by trimming costs to live within our means, e.g. doing tasks ourselves (GST, cashbook, relief milking), personal drawings and using bull of the day instead of premium sires.

• Defer spending on the future of the business that will not contribute to a return this year, e.g. capital phosphate, re-grassing, repairs and maintenance (you could DIY) or machinery replacement.

• Eliminate costs that waste cash, thereby producing a long term benefit for your business, e.g. supplement, pasture, supplies, vehicle use/time wastage, and bank and IRD penalties.

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DAIRY NEWS JULY 21, 2015

OPINION // 23

From prosperity to austerity onfarm CHRIS LEWIS

WE’VE GONE from prosperity to austerity in the last 12 months. Though it’s been tough, dairy farmers can take pleasure in telling the public what they have been investing in the environment.

In January-March 2015 Federated Farmers and

bit. The landscape has changed and so have we all. Conversations on the environment have shifted from finger pointing to lets dig in and make things better for the next generation.

Farmers understand the need to balance increases in production and profits with environmental responsibili-

“Conversions on the environment have shifted from finger pointing to lets dig in and make things better for the next generation.”

DairyNZ surveyed dairy farmers nationwide to discover their five-year spend on environmental work.

At least 500 replied and, weighted against national averages, farmers were seen to have spent $1 billion.

The biggest portion was spent on effluent management, then stock exclusion, retiring land and riparian planting.

While participating in the survey I was surprised how much you don’t take your spending into account until you write it down. On our farm it was close to $300,000 in the past five years.

When I fly into Hamilton airport I can see a lot of farms are doing their

ties. The survey shows that NZ dairy farmers’ environmental spending averaged $90,000 each in the past five years. Waikato dairy farmers collectively spent at least $350m. It is encouraging to see their work quantified.

We’ve still got a lot to do, but let’s celebrate this achievement before we get to the next one, because it will take a little longer if the payout remains low.

In Waikato, farmer’s spending may also be supplemented by the Waikato River Authority’s CleanUp Trust Fund, helping pay for big projects such as riparian planting on the Waikato and Waipa rivers.

So far up to $6m has gone annually into these proj-

ects. Farmers may apply for funding for such projects; applications close August 14.

Our community, industry groups like DairyNZ, Federated Farmers, councils and iwi can contribute

to a better Waikato, simply by doing a little each year for ten years. This will result in big gains, as our survey has shown.

• Chris Lewis is Federated Farmers Waikato provincial president.

Chris Lewis, Federated Farmers.

MAKE TODAY YOUR HAYDAY

Clear commitment TIM MACKLE

THIS IS just the start of our industry trying to understand and quantify how much farmers are investing in environmental actions.

We are also collating actions from our Sustainable Milk Plan projects to keep a record of what farmers are doing around the country and the difference their investments are making.

This is the first time we’ve done this kind of survey and it gives us a broad brush indication of what is being done on the ground, based on what the more than 500 farmers who responded have told us.”

“The survey attracted a particularly good response rate from Marlborough-Canterbury dairy farmers of 7.7%. That region’s farmers had spent an average of over $170,000 per farm in in the past five years. Otago-Southland dairy farmers were not far behind with 6.5% responding, and having spent on average over $150,000 per farm.”

“It’s clear there is a significant commitment from New Zealand dairy farmers to farming responsibly and investing in actions that make a difference to managing their farms’ environmental impact.”

• Tim Mackle is chief executive of DairyNZ.

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DAIRY NEWS JULY 21, 2015

24 // AGRIBUSINESS

Cool your milk or lose it MEETING THE stan-

dards of export milk markets will require that from August 1, 2017 we stick to new milk cooling rules imposed by MPI. Here they are.

Milk collected from your farm must be cooled according to new rules or it will likely not be collected; you will then have to dump it.

Research shows that cooling consumes about 30% of the total energy in operating a diary. Meeting the new specification may markedly reduce energy costs.

Under the new specifications raw milk must: • Be cooled to 6oC within two hours of the end of milking or within six hours of starting milking.

• Be cooled to 10oC or below within four hours of

starting milking.

• Be held at or below 6oC until collection or the next milking.

• Not exceed 10oC during subsequent milking.

Some farmers may not have to change their cooling systems. Don’t buy new gear until you have checked your milk temperatures.

First, check the temperature of milk going into your vat, and check vat temperatures at two, four and six hours after completion. This will indicate whether you need to check your primary or secondary cooling systems.

Check that your plate cooler can cool your milk to 3oC above the temperature of the water entering the plate cooler. If not, you may need to check the size and capacity of your plate

cooler.

Primary Cooling Pre-cooling water: there are many ways to chill water, e.g. ice packs or direct chilling, then using it through a split bank cooler. Efficiency varies. Some units have heat recovery which can give fast payback and very cold milk.

Snap/instant chilling: glycol cooling is becoming popular. They are costly but very effective and almost immediately chill the milk to 4-5°C .

They best suit large dairies and if integrated with heat recovery they are a viable option. They consume a lot of power, so most farms would need to upgrade switchboards and transformers for a snap chiller to operate in the shed. Expensive for an existing farm but great for

a new conversion or build.

Cooling towers: best suit South Island farms with low humidity. Water can be cooled to within 5oC of the wet bulb temperature.

Ice banks: these make ice along evaporator coils using night-rate power.

The ice is used to chill water for the pre-cooler.

Though they are more compact than storage for chilled water they can be more expensive to maintain and are not as energy efficient.

Thermal stores: these chill water using off-peak power and use an insulated storage tank to hold a large volume. They use more energy than a direct chill system but are easier to install and need less maintenance.

Double water cooling: cools the stainless drop-

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pers with cooling water, then cool the milk again via the plate cooler. This can work well if your cooling water temp is low enough.

In summary, heat recovery reduces energy costs, generates warm water and utilises aspects of the milk cooling process.

Note: if you are using pre-chilled water in a reticulated system through a secondary plate cooler then the water used will need to meet the same requirements as apply now to your primary cooling water.

This may require some treatment of the water in the system.

need to adjust your chiller.

You could get the refrigeration system to reduce the temperature of your milk prior to the next milking so that when the warmer milk goes into the vat the mass of the cold milk brings down the overall bulk milk temperature and keeps it below the 10oC maximum.

Horizontal vats: have more vat pads than a vertical vat. They use less energy and are a viable option if you need to change vats. Always shop around. Generally the simplest way is the most effective.

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Similarly in glycol systems, the glycol must be food grade quality because the coolant could come in contact with the milk if there was a leak in the secondary plate cooler.

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DAIRY NEWS JULY 21, 2015

AGRIBUSINESS // 25

Land-use change will protect iconic lake AGREEMENT HAS

been reached on reducing by 20% the amount of nitrogen leaching into Lake Taupo through the ground.

Land use change is the key to achieving the new target of 170 tonne/year entering the lake.

The changes – via land purchase and land use changes, using money from a $79.2 million fund -- will not quickly achieve the reduction, says Lake Taupo Protection Trust chairman Clayton Stent.

There will be a lag of decades during which the reductions will be seen.

The agreement is between the trust, its central and local government funders and Ngati Tuwharetoa.

Stent says it is a major milestone in efforts to protect Lake Taupo, and

“all involved are pleased”.

“Getting the nitrogen leaching load down is crucial to ensuring the lake’s health.”

The trust is setting out to change local land use; stock urine is a main source of the nutrient.

The funding arrangements mean on-the-the ground work towards the 170t/ year leachate cut will be finalised by 2018.

“But this is a project that will leave behind a cleaner legacy and protect this national taonga (treasure). We needed to act when we did.”

Waikato Regional Council chair Paula Southgate says the council’s Variation 5 policy, which has facilitated the nitrogen reduction, “has been internationally recognised and has required a major effort by us all to implement”.

FARMING THE CAUSE, N THE EFFECT REGIONAL COUNCIL monitoring in the late 1990’s showed deteriorating water quality in Lake Taupo, and the water was losing its famous clarity.

Farming was seen as the cause and nitrogen emissions the effect.

The council’s Variation 5 policy included caps on nitrogen emissions from farms and limits on wastewater discharges.

All farms in the Taupo catchment now have resource consents to operate within a cap. To maintain water quality, a cut of 20% in the nitrogen from farms and urban areas was needed to restore 2001 levels of water quality and clarity by 2080.

The Lake Taupo Protection Trust was set up in February 2007 to administer a $79.2m fund to do the necessary work. The money is from the Ministry for the Environment (45%), Waikato Regional Council ratepayers outside Taupo (33%) and Taupo District Council ratepayers, including farmers and foresters, (22%).

Tuwharetoa Maori Trust Board is the owner of Lake Taupo. Ngati Tuwharetoa landowners are the largest private landowner in the catchment.

IN BRIEF Uni search begins LINCOLN UNIVERSITY has begun the process of appointing a new vice-chancellor.

A search in New Zealand and internationally is expected to take five-seven months.

Staff, alumni, industry groups and community groups, including Ngai Tahu and Te Taumutu Runanga, will get a say in the skills required to lead the 137-year-old institution.

Meanwhile the university has appointed Dr John Hay interim vice-chancellor.

“Ratepayers’ contributions have been important… and I’m grateful to our central and local government partners, Ngati Tuwharetoa and local landowners for their contributions.”

Taupo mayor David Trewavas says the agree-

ment is “a major achievement for the community of the Taupo district”.

Tawharetoa Maori Trust board chair John Bishara says: “We all need to stay vigilant to… [protect] this very special water body – Lake Taupo.”

Getting nitrogen leaching load down is crucial to ensuring Lake Taupo’s health.

DAIRY NEWS JULY 21, 2015

26 // AGRIBUSINESS

An awful lot of cheese in Brazil THE WORLD’S cheese

business was worth US$216 billion last year, and in four years should be worth US$237b, says market research company Canadean.

It says the global cheese market is growing strongly, driven by countries such as Brazil, where cheese consumption is

expected to triple in the next decade.

However, the top five global brands Kraft, Philadelphia, President, Sargento and Galbani hold only 10% or less market share.

“With rising competition, top [producers] are using unique strategies, such as new product traits

and uses, to differentiate themselves from other brands,” says Dhara Badiani, analyst at Canadean.

The rising populace of Brazil, China and India, with more money to spend, buys more processed foods including cheese.

“Pizza, pasta and sandwiches have become more

popular in many emerging markets in recent years,” says Badiani.

Simultaneously, modern retail stores and fast food chains are driving retail and on-trade sales of cheese.

“Hypermarkets and supermarkets are the leading retail channels for cheese, offering a wide

range including multibrand, private label and specialty products,” Badiani argues.

The report also finds the Brazilian cheese market one of fastest growing globally. Brazilians ate on average only 3.4kg in 2009, but per capita consumption rose to 5.4kg Cheese consumption around the world is rising.

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Brazil, the world’s fifthlargest cheese market by volume, is expected

to be third in 2019. This means in five years, or less, Brazilians’ cheese consumption will match that of the French (1.8b kg).

$1b spend on environment in five years DAIRY FARMERS spent $1 billion – averaging

$90,000 each – during the past five years on environmental management, a Federated Farmers/DairyNZ survey shows.

Five percent of dairy farmers responded to the survey, reporting on spending on, e.g. effluent management, stock exclusion, riparian planting, systems upgrades and new technology, retiring land and developing wetlands.

The biggest spend was on effluent management (70%), then excluding stock from waterways, retiring land from dairy production and riparian planting.

Waikato farmers spent $350m, Canterbury and Southland farmers about $200m in each region. In other prominent dairying regions farmers spent $40m to $80m.

On a per cow basis, farmers in Waikato and OtagoSouthland spent the most – $260/cow; in Canterbury and Bay of Plenty they spent $200/cow.

Regional differences showed in the survey: in Marlborough-Canterbury, where farmers responded well to the survey, they spent $170,000/farm; Otago-Southland dairy farmers (6.5% response) spent on average $150,000/farm.

Taranaki, lower North Island and Northland farms averaged environmental spending of about $50,000.

“It’s encouraging to see the money farmers are putting into protecting and improving the environment,” says Andrew Hoggard, Federated Farmers dairy chairman.

“Farmers understand the need to balance lifting production and profits with environmental responsibilities. The… average spend per farm of $18,000 is equivalent to $90,000 per farm in NZ over the past five years.”

DairyNZ chief executive Tim Mackle says, “Our industry is trying to understand and quantify how much farmers are investing in environmental actions.

We are collating actions from our sustainable milk plan projects to keep a record of what farmers are doing and the difference they are making.”

Hoggard says there are no surprises in the survey results.

“The main investment is going into effluent management, but it was interesting to see that it was about 70% of farmers’ total spending…. Respondents have spent $8 million in the past five years retiring land and developing or preserving wetlands…. This coming directly out farmer’s bank accounts.

“The survey [can show] the NZ public what farmers are doing to protect and enhance their land.”

DAIRY NEWS JULY 21, 2015

28 // MANAGEMENT

Weeks of frost takes toll on p ANDREW SWALLOW

WEEKS OF frost have knocked pasture cover on Lincoln University’s Dairy Farm and the South Canterbury Tactics for Tight Times (TTT) focus farm is no different.

“Our pasture cover’s a bit behind target,” TTT sharemilker Cole Groves told a combined LUDF and TTT focus day in Temuka earlier this month.

“A week of nights at -6 and -7oC didn’t help,” he added, even before the region suffered another string of seriously subzero nights last week.

Adding to the pressure all 900 cows will be back on the 264ha platform by August 14 owing to drought-cut winter crop yields. “But it will make it a lot easier management-wise having them all home,” added Groves.

He’s booked 60t of PKE

for August and September which if not needed will be “pushed forward” into October when he antici-

Ron Pellow

pates “a wee bit of pinch” in spring pasture: 13ha of the platform needs reseeding after a winter greenfeed crop of oats, and 11ha will be going into fodder beet for the first time.

The introduction of beet on the platform for late autumn milking means “regrassing and cropping” is one of the few budget increases this season, up from 5c/ kgMS in 2014-15 to 9c/

kgMS. Overall, farm working expenses are budgeted back 11% at $2.58/ kgMS from $2.90/kgMS last season, with the main savings in animal health, down 7c/kgMS to 15c/ kgMS and young stock and grazing which is back 16c/kgMS to 44c/kgMS. “In the past we’ve reared a lot of calves.

We’re not doing that this year as we ended up spending $10,000 on milk powder last year because we had buggerall mastitis milk,” commented Groves.

Assuming more normal rainfall this season, irrigation is budgeted down 12c/kgMS at 16c/kgMS and 4c/kgMS has been shaved off purchased supplement at 26c/ kgMS. A 50t reduction on a 450t/year three-year grain supply contract has been negotiated but with the grain grower also their heifer grazier Groves is reluctant to try to reduce

Pasture cover on Lincoln University’s dairy farm has taken a hit this winter.

it further. “We signed a contract for a reason,” he commented, pre-empting focus day delegates’ questions on the issue.

Having shunned teatseal at drying off, he admitted mastitis is his “biggest worry” coming

into calving. However, since a bad year for the disease during a wet spring four years ago they’ve got rid of a lot of problem cows, he pointed out.

They’re targeting 390,000kgMS but budgeting on 370,000kgMS, the

same as last season after drought cut output to 351,300kgMS. “If we’d had a normal season we’d have done 380,000kgMS.” Even 351,300kg was better than they were expecting at one point after drought left the

Opuha irrigation scheme dry from mid February.

But rain in late March saved the season though they’d already got rid of culls, dried off and sent away skinny cows, and put the rest of the herd on OAD.

DAIRY NEWS JULY 21, 2015

MANAGEMENT // 29

n pasture cover “April and May really got us off the hook,” Groves told the Temuka meeting.

With 930 cows due to calve this spring they’re looking to sell 50 to ease feed demand and save a

RETAIN, REDUCE, DEFER, REMOVE? LEADING A discussion after the Groves and Lincoln presentations, DairyNZ consulting officer Caleb Strowger asked what is being retained, reduced, deferred or removed from budgets this season.

After an initial silence, looking at ‘retain’, the audience suggested animal health and staff – plus, flippantly, “oxygen and alcohol!” ‘Reduce’ prompted more answers, including replacements, regrassing and feed: “lower cost and quantity,” commented one farmer.

Regrassing reappeared in the ‘defer’ list, alongside capital expenditure and machinery replacements, including vehicles.

‘Remove’ included cow numbers – “we removed ten in one day on fodder beet,” quipped one delegate dryly – herd testing and a couple of the ‘retain’ items from earlier: labour and animal health.

“Get rid of vets from the farm… I’m serious!”

For example, vet metrichecking could be replaced by DIY observation and testing, someone suggested.

Speaking to Dairy News afterwards, SIDDC director Ron Pellow acknowledged a danger that knee-jerk reductions in feed, without appropriate cuts elsewhere, will likely see some farms worse off than if feed had been maintained this season.

“Across New Zealand I don’t think we feed our cows adequately on pasture,” he stressed.

Dairy NZ project leader large business Adrian van Bysterveldt urged extra vigilance on pasture management, particularly coming out of deficits.

“People are great at spotting the beginning of a deficit but the real difficulty is spotting where the deficit is going to end…. If you think it’s going to be gone in a week, then the supplement should have been taken out yesterday.”

Modern high genetic merit cows are much more capable of “bouncing back” when feed quantity and quality is increased after a brief deficit, he added. “But older-style cows, the cows of the 1980s or 1990s, will just go fat on you.”

Another tip Van Bysterveldt shared with Dairy News and farmers after the focus day was to “offer contractors a discounted cash price as they leave the paddock”.

In a season where some farms might struggle or choose not to pay bills on time, those that can pay on the spot should be able to negotiate useful discounts, he explained.

To see where Lincoln University Demonstration Farm is cutting its costs or spending more this season, and how it compared with the half dozen top farms it benchmarks against, go to www.siddc.org.nz and download ‘focus day handout’ from the ‘latest news’ area.

little time and money in the 42-a-side shed. Milking takes two people nine hours per day on average on the long, thin farm with two road crossings.

Despite those and other savings, such as $10,000 of planned capital spending deferred, the budget still ends in a quar-

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DAIRY NEWS JULY 21, 2015

30 // MANAGEMENT

Growing maize under film ONE OF the biggest recent advances

in maize agronomy has been the growing of maize crops under film using the SAMCO System. This allows the production of higher yielding maize crops in cooler regions and can even allow the establishment of successful crops in areas previously considered marginal.

The SAMCO System 3-in-1 maize-planting machine was awarded the Innovation Award for International Distinction at the 2014 National Fieldays.

Developed in Ireland, it plants the maize seed, sprays the soil with a pre-emergent herbicide and covers the planter rows with a degradable film in a single pass.

The degradable and breathable film creates a greenhouse effect by keeping the young maize seedlings in a warm and humid environment for four-six weeks. During this time, plants are protected from late frosts and adverse weather and they grow faster because there is more heat. The film also helps

to conserve soil moisture.

When the maize plant touches the film, the root system develops more rapidly and this helps to sustain the plant in the later growth stages. Eventually the plant breaks through the film and is on its way to producing a high-yielding crop. The SAMCO film itself is naturally broken down by warm temperatures and ultraviolet light, and the residue is eaten by soil microorganisms, meaning eventually it completely disappears.

I’ve observed the SAMCO System in various regions over the past growing season. It offers a number of advantages.

In traditional maize growing areas crops can be planted up to four weeks earlier, allowing earlier harvest and subsequent establishment of pasture or a winter crop. Alternatively growers can plan a longer maturity maize hybrid and achieve higher drymatter yields.

In cooler or higher altitude areas

A greenhouse effect keeps the young maize seedlings in a warm and humid environment.

SAMCO offers the opportunity to grow crops in areas previously considered too cold. It also protects the young plants from late season frosts for foursix weeks.

In drier areas SAMCO retains moisture for successful maize crop establishment. Ventilation holes in the film limit temperature buildup and prevent the young seedlings from overheating.

Research overseas and locally shows

a number of factors that help get the best results out of the SAMCO System.

These include: ■■ Choose a flat paddock, or near flat with consistent contour. Square or rectangular paddocks are ideal.

■■ Spray out existing pasture several weeks prior to planting.

■■ Plough the paddock to bury the trash and work the top to form a fine, even, clod-free seed bed.

Soil test and apply the required fertiliser before final cultivation.

■■ The SAMCO planter works best in a seed bed 75-100mm deep with a maximum clod size of 30mm.

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DAIRY NEWS JULY 21, 2015

MANAGEMENT // 31

‘Never let a good recession go to waste’ USING BOUGHT-IN

supplement to ‘produce milk for milk’s sake’ could be robbing the New Zealand dairy industry of its resilience says DairyNZ primary scientist John Roche.

Roche told a Smaller Milk and Supply Herd conference in Whangarei in late June that some farmers had replaced good pasture management with overuse of their checkbooks to try to get more milk out of cows for longer.

In the 2008-09 season only 15-20% of farmers said they were using supplement year-round or, at the end of the year; but that had jumped to 24-30% by 2013-2014. As a result, Roche says, NZ has gone from being one of the most economical producers to one of the more costly.

This change is likely to test farmers for at least the next 12 months, he says, as the global dairy market goes from its up cycle to its down cycle. “Only when the tide goes out do you see who’s been swimming naked.”

In 2000 European and US trade officials had emptied their warehouses of product, creating a global shortage which NZ farmers quickly took advantage of. Production increased by 20 billion litres by 2013-14 – 9b more than in 1999-2000.

Production increases have come at a cost to NZ; an International Farm Comparison Network study revealed a 300% rise in production cost between 2000 and 2012, making California a more cost-effective dairying location. This amused visiting farmers who came to see an efficient, costeffective industry: “Farmers from all over the world still visit NZ to find out how to farm, but some now leave shaking their heads,” Roche says.

More international farmers learnt lessons from the NZ dairy industry of old, says Roche, especially after 2014 UK studies revealed the aver-

age farmer on pasture required 139 cows to generate 30,000 pounds sterling (NZ$69,0000) a year while farmers operating on a TCR system needed 413 cows.

While top performing TCR farmers managed to out-perform top system one -- three operators by a slim margin – that did not apply to average operators.

“In most cases simple systems work best for most people. While farmers like to think they’re above average not every farmer is, and you must keep your eye on the ball with cashbook systems.”

Roche says the secret is farming on a resilient model which mixes good supplement use, animal husbandry, financial prudence, pasture management and smart labor use.

While day to day supplement management may be a tactical decision to plug short term feed deficits or maintain animal condition, yearly supplement budgeting is a strategic decision, says Roche. He recommends that yearly supplementary feed projections take into account average pasture grown, the land’s stock carrying capacity, current stocking rate and how much financial exposure importing feed into the system is likely to create.

Research into supplementary feeding shows the cost of getting supplement to animals is 1.3-1.6 cents for every cent spent on the actual supplement, meaning farmers can expect returns of about 55gMS/ kgDM eaten.

A supplement budget priced at no more than 3.5% of milk price is safe; Roche recommends no more than 500kgDM/cow of supplementary feed a year.

Referring to calculating pasture covers, Roche suggests farmers could get better return by taking a leaf from drystock farmers’ books.

While farmers most commonly work on cows/ ha, Roche says this doesn’t take into types of cows or nutrient loading; liveweight/ha is a better guide.

Better still, adopt a competitive stocking rate

which takes account of all aspects of a farming operation including youngstock, available pasture and supplement and nitrogen used.

By taking all these steps a farmer can develop a

system which can be replicated in multiple operations, with the farmer in an oversight rather than a day-to-day management role.

While things may look tight for dairy farmers

now, Roche says, recessions often offer opportunities for smart operators.

“Resilience is not how high you can go, it’s how well you can bounce.

Never let a good recession go to waste.”

John Roche, DairyNZ.

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DAIRY NEWS JULY 21, 2015

32 // MANAGEMENT

Getting the banking in order

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erosion is important for environmental and economic reasons.

So it’s timely to look at the issues involved in erosion generally and less-than-ideal land management that can contribute to contamination of waterways.

Some of our rivers, lakes and streams have eroding banks, silted beds, water weed infestation and debatable water quality, often the result of poor land management.

Such practices, in farming, forestry, roading or horticulture, can cause soil erosion and a build-up of contaminants such as bacteria and chemicals which end up washed into watercourses during heavy rain.

Some of the poor farming practises involved include stock wading in water, poor cowshed effluent treatment, overgrazing, inappropriate fertiliser application and pugging.

Poor runoff control on cultivated land, roads and tracks can also contribute to the contamination of water bodies.

Some of the impacts of poor practices can include potentially serious waterborne diseases like giardia and cryptosporidium.

Nitrates and phosphates can also create health disorders for people and stock, and contribute to algal growth. Eroded sediment can hurt water clarity and aquatic life.

However, good management of riparian areas can reduce these types of effects by stabilising the banks and providing a filter for contaminants washing off the land. Effective management of the banks is a key to protecting aquatic life and improving water quality generally.

A well-managed riparian margin, with a carefully selected mix of species, will filter out contaminants such as sediment and nutrients from farm run-off, including soil, animal dung and urine, and

agricultural chemicals.

Shrubs and trees with extensive root systems, which tolerate moist soil conditions and frequent silt deposits, are ideal for stream bank erosion control. They physically hold the stream banks together and some tree roots also protect the streambed, limiting the scouring effect of running water.

Streamside vegetation provides shade which reduces water temperature, improves dissolved oxygen levels, helps aquatic life and reduces the risk of algal blooms.

Suitable plant species beside waterways also provide cover for spawning fish, and food and habitat for nesting and young birds. Such planting helps water plants and invertebrates become numerous, providing a better food supply for fish.

Streamside trees can link areas of native vegetation, extending habitat for native birds.

Besides environmental benefits and generally protecting water quality for stock, riparian planting can also help a farm’s economy in various ways.

Well designed riparian fencing can be used to improve subdivision, help with mustering, and protect animals from drowning or getting stuck in wet areas. The provision of shelter and shade is recognised as an important aspect of animal production and health.

Improved milk grades are documented where dairy sheds no longer draw water from contaminated streams. On sheep and beef properties, stock enjoy better health and gain weight faster when water sources are not contaminated.

• Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council. Tel. 0800 800401 or email bala.tikkisetty@ waikatoregion.govt.nz @dairy_news facebook.com/dairynews

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DAIRY NEWS JULY 21, 2015

34 // ANIMAL HEALTH

Best option to clear TB will reduce h PAM TIPA pamelat@ruralnews.co.nz

A PLAN TO eradicate TB from New Zealand livestock within 10 years will cut the need to test some herds and will reduce the work in some vector areas.

But better science and the introduction of NAIT will enable more targeted testing and vector eradication, says TB Plan governance group chairman and former Landcorp boss Chris Kelly.

He says it is “quite feasible” to eradicate TB from livestock within 10 years. This proven by current progress in TB eradication, is confirmed by an independent scientific review and can be achieved quicker and cheaper than previously thought.

TB eradication is already a world-first “remarkable success

story”: there were 1700 infected herds in the mid 1990s, but in early July the number was only 41, Kelly says. This dropped by two in just one week at the beginning of July.

If approved, the 10 year TB eradication plan for livestock will cost $600 million over 10 years at $60m a year, but it may have to be “loaded” more at the start of the programme. The average $60m a year budget is $20m less than Ospri now has for the current TB programme.

The $600m plan is the favoured option of three the TB Plan governance group has been ‘roadshowing’ to farmers in 36 locations from June 22 to July 31. The other two options are a $70m a year option for faster eradication or a $50m a year “containment option”. But Kelly warns the containment option,

“while seductive”, would “go on forever”— no end date.

All options are now only proposals. After farmer consultation which ends on July 31, a strategic review of the TB plan needs final approval by the Minister for Primary Industries. The current strategy runs out in June 2016, by which time the new strategy must be ready.

The new strategy will be a 10 year plan, in contrast to the current fiveyear plan. While previous plans were enacted by the Animal Health Board, this time the plan has an independent governance group with two independent members.

Kelly, as one of the independent members, told a consultation meeting in Pukekohe the current plan in operation is for proof of concept – getting rid of TB

in certain vectors in certain areas. The new recommended plan is to rid NZ of TB completely.

The objectives of the recommended plan are: (1) Eradicate TB from NZ by 2055; (a) TB freedom in livestock by 2026; (b) TB freedom in possums by 2040. (2) Maintain TB infected herd prevalence at or lower than 0.2%.

Vector kills will first target areas never before targeted or where recent vector-related infections have occurred. Risk based testing of herds will be based on three core variables: herd location, herd history and nature of movements. NAIT will be important in assessing herds’ risk profiles. Disease control and movement control areas will be removed.

Proposed funding arrangements will stay as they are with a levy on milk

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DAIRY NEWS JULY 21, 2015

ANIMAL HEALTH // 35

e herd tests, vector kills solids collected through the DairyNZ levy. This is about 1c/kgMS at present.

However the dairy industry will pick up a greater share of costs, up from about $24.07m now to $26.7m by 2020-21. Current funding proposals would see the dairy cattle slaughter levy remain at $11.50 a head, then increasing by increments from 2017-18 to $14.05 a head by 2020-21.

The funding proposal would see beef slaughter prices reduce in 2016-17 to $6.25 a head and keep reducing. The overall beef contribution reduces from the existing $19m to $10m. A levy of livestock exports – currently “freeriders” -- will be imposed at $11.50/head. The levy on Otago landowners will be revoked as they currently pay through the regional council which passes levies to OPSPRI. The Crown will contribute 40% ($24m) and deer contributes $1m.

The changes in the slaughter costs will allow dairy to fix the amount of milk solids levy they pay and make up the difference, Kelly told the Pukekohe meeting. There were options to consider which could include dairy heifers on the dairy levy but old bulls from a dairy farm on the beef level.

Kelly says the current TB plan, which runs out in June 2016, has been a success story, having achieved 44% of the target to eradicate 2.5ha by 2026. The current infected herd rate was 0.15%, below the target of 0.4% and below the international level of socalled ‘TB free’.

A scientific review by an independent Australian scientist showed it was possible to eradicate TB from NZ with “all the good work we have done over the last five years”.

“By doing things differently basically we can achieve it more quickly and cheaply then in the past because we have developed new techniques and improved the concept.

“The eradication option would kill vectors in regions which previously had not had control or where recent incursions have occurred. We will spend more money in problem areas such as the West Coast and less money in relatively free areas, to get the vector risk areas right down. A core component of the programme is to move to risk based testing. We are going to be selective on where we TB test our animals.

“We now have NAIT and by assessing where a herd is, its history and the nature of the movements, we can accurately predict that a herd location is not in a vector area, and that the herd’s history is clean, and we know the nature of the movements through NAIT will decrease TB testing – not eradicate it just reduce it.”

With cull animals at 15-20% a year, about 60% of a dairy farmer’s herd gets examined over three years. So there will be less TB testing in compliant animals.

“In those areas where we have a red flag or we hear are unsure of movements because of noncom-

pliance with NAIT, not only will your farms be penalised by more testing, there is provision in the plan to do that.

So if you are non NAIT-compliant, particularly exposed through your herd location or your industry, you might have more testing.

“It is a bit of a stick and carrot”.

Eradication can be

The current TB plan, which runs out June next year, has been a success.

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CHRIS KELLY says he has seen too many good proposals for the agricultural sector “wrecked by farmer apathy”.

He is asking farmers to make a submission on the TB proposals by the end of July.

“Any submission is a good submission, even if you just write, we agree with the plan or we don’t agree with the plan. The minister will have to assess all the submissions that come in and if he gets 150 and none are saying ‘we like it’, we’ve got a problem.”

So even if farmers go online and say a few words, that’s good, Kelly says. “I’ve seen more good plans fall through from farmer apathy than anything else.”

Analysis of submissions and responses will be available online around August/September and final proposals will go to the Minister for Primary Industries at the end of September.

The amended plan will be implemented on July 1, 2016.

achieved sooner than we thought, Kelly says.

To sum up the preferred option: livestock infections will reduce dramatically over the next 10 years down to zero, funding shares have changed based on benefits to the relevant industry values and a new approach to vector and disease control will be adopted.

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Shaping the future of animal health

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DAIRY NEWS JULY 21, 2015

36 // ANIMAL HEALTH/BREEDING

TB a ‘terrible thing’ for herd owner PAM TIPA pamelat@ruralnews.co.nz

TB INFECTION in a dairy herd is a “terrible thing” mentally and morale-wise for a farmer, says Chris Kelly, chairman of the TB plan review governance group.

“You will immediately get a 20% reduction in the value of your livestock, if you want to sell your farm it will be a problem, and your neighbours tend to ostracise you – they want to keep away,” Kelly told Dairy News.

Treasury types who have never been on farms

will say it is only 0.1% of all herds so who cares? “My answer is if you are one of those 0.1% you care all right. It is easy for policy people to say you only get 40 herds out of 12,000 a year, and that’s true, but if you are one of those 40 herds it is devastating.”

Kelly told the Pukekohe

TB strategy meeting that he started life as a vet and one of his first jobs in 1970 was to TB test dairy herds in Bay of Plenty.

About 80% of cattle tested positive and some had clinical TB. Many of the rural kids had bovine TB – they had picked it up from drinking infected

milk from the vat before it was pasteurised or from infected pigs that had eaten whey when butter was made.

“It was a terrible disease in those days and we have made enormous strides.”

TB has been in New Zealand herds for about

100 years, and started to be actively managed in the 1950s, but around the 1980s we started to withdraw, Kelly says. We thought we had it licked because we did not understand the devastating effect of possums. At its peak in 1994 there were 1700 herds affected annually.

Farmers have spent $1.2 billion in eradication measures and “you don’t want to waste that money. It has been a great success story for NZ.” Of other countries trying to manage TB, Australia only need eradicate it in livestock because its possums don’t get TB. The UK is hopeless because its possum equivalent is the badger and badgers are riddled with TB. “They just can’t get rid of it.”

“So we are the only country able to get rid of it from the vectors – possums, ferrets, etc – and from the livestock. That’s why the last five years has been proof of concept.

“We will be the only country to eradicate it through vectors as well.

Australia will eradicate but all they need to do is get rid of it in their livestock.”

Kelly says it is unlikely there will be a lot of difference in trade reputation between eradication and our current situation because our main target markets have TB. But from a clean, green point of view there is some advantage.

“But the main advantage is to get rid of TB in New Zealand and never have to spend money on it again.”

Top Holstein-Friesian bull San Ray FM Beamer.

LIC sires notch top awards TWO LIC artificial breeding bulls were named sires of the season by Jersey and Holstein-Friesian breed societies at their annual conferences last month.

South Land Jericho won Jersey New Zealand’s JT Thwaites Sire of the Season award and San Ray FM Beamer won Holstein-Friesian NZ’s Mahoe Trophy.

LIC bull acquisition manager Malcolm Ellis says it is an honour for the co-op’s sires to be recognised by the societies again; LIC sires won both awards last year.

“It’s fantastic that two of our top sires have been recognised… and the breeders are equally pleased.”

Jericho was bred by Mark and Megan Heslop (Bay of Plenty, recently relocated from Cambridge) and Beamer was bred by Ray and Sandra Hocking (Takaka) with Stewart and Kathryn Anderson (Otorohanga).

Jericho is the sixth ranked Jersey bull, with 253 breeding worth (BW) and Beamer is the number oneranked bull in all breeds with 328BW. The bulls are popular with farmers for this coming mating season, Ellis says, both sitting high on the industry’s ranking of active sires (RAS) list for their breeds.

Both bulls are expected to be in the co-op’s Premier Sires teams for 2015, to be confirmed next month. Jericho is also available through the Alpha Nominated frozen service; Beamer has sold out.

Beamer is a second generation winner of the Mahoe Trophy after his sire, Fairmont Mint Edition, won the title in 2009.

DAIRY NEWS JULY 21, 2015

CALVING // 37

Vets offer free service to cows, farmers ONE VET clinic says it is doing its bit to help cash-strapped dairy farmers.

VetSouth says the record low dairy payout is pressuring farmers’ budgets and forcing hard choices on them. But it’s not their cows’ fault, and they shouldn’t have to struggle. So the practice has set out to support cow and farmer welfare with two schemes.

The first scheme, called ‘Keep Calm’, offers all clients a free calving.

VetSouth director Mark Bryan explains: “We calved at least 700 cows last season, and there are probably more cows that could be helped but we don’t see them.

“Farmers’ financial position this coming season is going to make more difficult the choice between a calving or culling the cow. So we thought, why don’t we remove the cost barrier?” They hope that by removing some of

The practice expects that more cows will get appropriate treatment because it’s free, and that in the process farmers and staff will gain more skills.

“Having a vet on a farm is not just to treat what’s in front of you, but also to teach staff to better detect and treat it themselves the next time,” says Sharp.

It’s also to keep an eye on developing animal health risks or production issues; farms that engage more with vets typically have lower animal health costs and fewer disease issues.

“The worst thing farmers can stop investing in is animal health,” says Bryan. The dairy community in the lower South Island has been good to VetSouth, he says, and his team are happy to give something back.

Mark Bryan, VetSouth.

the pain they will ease farmers’ worries and cows’ difficulties.

The first calving on any farm will be free, Bryan says. “We were pleased at how the younger vets got behind us in this. It was great to see them support clients and their colleagues.”

The second scheme is an offer

to examine and treat all sick cows for free.

VetSouth director Vince Sharp says the thought of cows not being treated, or being treated inappropriately, because of the difficult times, didn’t sit well with them. “So we decided we would remove this barrier.”

First calving on each farm will be done free by VetSouth, it says.

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DAIRY NEWS JULY 21, 2015

38 // CALVING

Right recipe for transition feeding ADOPTING A transition feeding programme should be a ‘no-brainer’ for Australian dairy farmers, says a nutrition and animal health specialist.

Dr Steve Little, of Capacity Ag Consulting, says feeding a supplementary diet in the last three weeks before calving will give cows the best chance of a successful transition.

“I recommend every farmer use some form of transition feeding program in the last three weeks,” Little says. “It’s the [biggest] nutritional technology in 25 years.”

But Little acknowl-

edges that a transition feeding program can be challenging. “You need to use an approach that is appropriate for the farm.

There are many details to manage.”

Heavily pregnant cows face many challenges, he says. “Their rumen needs to be adapted to a diet they’re going to get as milking cows – usually grain and other highly digestible feed.

“They suddenly have to be able to mobilise a lot of calcium which is required for colostrum in the milk, and meet the nutritional demands of the calf and

the udder in the last three weeks.”

But there’s no magic formula for success.

“Different feeding approaches can be used in the pre-calving transition period.

The approach depends on the farmer’s feeding approach after calving,” Little says.

Some farmers use anionic salts in water troughs but most favour a supplement usually of energy, protein, minerals, extra magnesium and some sort of anionic supplement, Little says.

“About 70% of farmers in Australia already use some form of transition feeding. Half of those use a

commercial supplement, usually with hay and a controlled amount of pasture.”

Anionic salts, which contain chlorine or sulphur irons, are salty and cows may not like them.

But nowadays the flavours and aromatic additives the stockfeed companies add cause them to go down well.

Little says farmers must ensure forage fed with commercial supplements is appropriate for pre-calving transition cows. “That requires feed testing and analysis.

Some good high production forage suitable for a milking cow isn’t necessarily appropriate for precalving transition cows.”

Cows’ rations need sufficient megajoules of

energy, sufficient protein, the correct mix of calcium, phosphorus, magnesium and the dietary cation anion difference must be low enough.

Transition feeding can help get control over cow health problems, Little says. Good transition feeding would virtually eliminate milk fever and all cow health problems that commonly occur around calving, he says.

“We’re trying to adapt the rumen so that freshly calved cows can cope well with grain and digestible pasture and start milking well after calving; and we try to minimise the amount of body condition they lose after calving.”

Intervene promptly when calves are scouring DAVID ISAAC

NUTRITIONAL SCOURS is one of the two forms of scours in unweaned calves. The other form is pathogenic scours.

Generally nutritional scours can be caused by changes in amount and type of milk fed to calves. This can occur when changing brand of milk replacer or by changing from cow milk to milk replacer.

Also, nutritional upsets in calves could be triggered by stress from exposure to bad weather, vaccinations, dehorning or trucking.

Nutritional scours are not too dissimilar from pathogenic scours due to water loss and dehydration.

Prepare a plan on how and when

to treat calves scouring, making sure everyone working with the calves is aware of it.

As dehydration occurs rapidly in calves, it is important to be observant and intervene promptly.

Severity of scours can be monitored by observing the following: ■■ Frequency and quantity of scours ■■ Mental responsiveness- alert or depressed ■■ Suckling frequency ■■ Sunken eyes ■■ Weakness ■■ Gum condition -- bright or pale.

It is important to isolate the affected calves, keep them warm and keep them on dry bedding.

These calves should be given electrolytes, which replace body

water and provide minerals such as sodium, potassium, chloride and energy. If scouring persists more than a day, contact a vet.

It is always best to prevent nutritional diarrhoea. The key prevention strategy would be to ensure calves get at least 2L of colostrum by suckling or bucket feeding within the first six hours of life and a further 2L within 12 hours.

Secondly, a functional fibre source such as Opticell Plus UF could be mixed into the milk or milk replacer to assist the digestion and to provide the necessary nutrients in the hindgut to ensure firmer stools and re-absorption of water.

• David Isaac is animal health, innovation and research manager at BEC Feed Solutions, Australia.

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Follow-up coming on www.dairynews.co.nz

DAIRY NEWS JULY 21, 2015

CALVING // 39

Better genetics lifts income from calves A SIMPLE change to

herd mating plans could increase income from calves says AgResearch.

The idea arises from a Beef + Lamb NZ dairy beef study, managed by AgResearch, of the effects of using good beef genetics in a dairy beef supply chain.

Early results show clear advantage – and potentially extra profit – for dairy farmers who use proven beef genetics, says the project manager, Doug Lineham.

on the institute’s Tokanui dairy farm.

“NZ dairy farmers traditionally mate cows to high BW AI sires for the first four-six weeks of mating to create herd replacements. The balance of the herd is then usually mated to run or natural mating bulls. The calves from natural mating are usually sold at four days old to rearers or processors.

“The tendency has been to breed tail-end cows to Jersey or cross-

“It’s a win-win for everyone and farmers should talk with their farm advisors or genetic companies about the best option.”

Dairy beef calves sired by a proven beef bull sell for $70 more on average than a mixed or straightbred dairy calf (ie average dairy bobby $50, dairy/beef $120, thus $70 more value based on last season’s figures), Lineham says.

“About 70% of NZ’s beef production originates from the dairy industry. Most dairy beef is produced from sires of unknown genetic merit so the resulting animals are less desirable to rearers and finishers because their potential for growth and meat quality is unknown.

“At the same time there is a shortage of quality table beef for domestic and export markets.”

A successful mating is when a herd gets in-calf in 8-12 weeks, to ensure a farm’s peak production in a similar time pattern the following year, says Dr Vicki Burggraaf, the AgResearch scientist managing the five-year trial

bred cows out of a perception that putting beef over dairy can lead to difficult calvings. But the attributes of proven beef sires are published so farmers can select for such things as easy calving, short gestation, etc.”

The BLNZ scheme is encouraging dairy farmers to consider mating ‘tail end’ cows to proven beef sires to generate extra income and to bolster NZ’s beef industry.

Farmers can choose between artificially breeding tail-end cows to proven AI bulls, or buying or leasing proven beef sires. Semen from proven beef bulls is about 20% cheaper per insemination than high BW dairy semen.

Doug Lineham says increased use of quality proven beef sires will benefit three groups: ■■ Dairy farmers – easy calving, high quality calves worth about $70 more

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Calf rearers/finishers – faster growing, finish earlier, high carcase value Meat processors – improved supply of quality table beef.

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everyone and farmers should talk with their farm advisors or genetics companies about the best option to generate quality dairy/beef calves – and increased income – this spring,” Lineham says.

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DAIRY NEWS JULY 21, 2015

40 // CALVING

Good feeding is top priority for Oz calf breeders

Trevor and Anthea Saunders say their aim is to be in the top 2% of Jersey herds in Australia, and an efficient calfrearing program is an essential part of that.

AUSTRALIAN FARMERS Trevor and Anthea

Saunders are dedicated Jersey breeders.

Anthea controls the calf rearing on their farm in Warragul, Victoria, determined to give them the best possible start. So

optimum feeding becomes a major item. The Saunders use Urban automatic calf feeders in three bays of the calf shed where the different groups, each of 24 calves, are treated individually as sensors read their ear tags.

Now i NZ n

The calves get the first eight hours of colostrum through the mothers, and are then taken to a manual feeder where they get colostrum only. “They are strong enough to be taken off after 24 hours,” Anthea says.

The calf milk replacer in the automatic feeder is critical and the Saunders worked with local vet Grant Nielsen, West Gippsland Vet Service, who oversees the farm’s calf management. They previously had problems with salmonella and E.coli.

“When we were looking at the calf milk replacers we wanted animalderived components, not vegetable, because a calf’s digestive system then works better to get the best possible result.

Probiotics are important too,” she says.

“They are fed milk at the right temperature at the right time, 1.5L at a time.

“We chose the MaxCare Ultimate formulation purely on its specifications – particularly the high protein and fat percentages.

The calves make a better curd and it optimises the nutrient consumption and extraction from the feed.”

Milk powder maker Maxum Animal Nutrition has three formulas in its MaxCare calf milk replacer range: the Ulti-

mate product contains the highest nutrient density on the Australian market (28% protein and 22% fat) plus probiotics, amino acids, vitamins and minerals.

“Calves are fed ad lib up to 10L/day for the first two weeks. The feeder allows them 1.2L per feed every two hours until they reach their quota for the day. From 2-10 weeks they are on 6L/day and then the milk allowance is cut to 2L at three months of age.

“Our calves look better than they did on whole milk. This formulation mixes well for the automatic feeders. There is no point in skimping; we need to get the best growth we can.

“I’ve reared calves for 30 years and I can tell how well they are doing. It’s important for one person to do that. We aim to grow our calves properly so they achieve their genetic potential as milkers.”

They get a feeding history for each calf through the auto feeding system computer.

The calves are on ad lib grain and water from birth, but no hay. “We believe the ‘scratch factor’ is more significant with grain feeding than hay.”

“Later they get about 2kg/day of grain from six weeks to weaning,” Anthea says.

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DAIRY NEWS JULY 21, 2015

MACHINERY & PRODUCTS // 41

Faster, cheaper checks on mastitis MARK DANIEL markd@ruralnews.co.nz

FIGURES FROM

DairyNZ suggest the average New Zealand dairy farm spends around $54,000 annually on the battle against mastitis.

This includes treatment, the value of milk withheld and lost production, so it can be called a ‘silent tax’ on the dairy production sector.

So it was good to see the Farm Medix Company walk off with the National Fieldays Launch NZ Innovation Award and the Innovation Den Award for its Check-Up mastitis diagnostic tool.

Herd testing might give ‘snapshots’ of somatic cell counts on a given day, but these don‘t reveal sub-clinical symptoms, and that a cow might be harbouring more serious and likely contagious pathogens that might pass to others in the herd.

The Check-Up kit requires the initial purchase of an incubator, and includes reference books and a poster to identify the

most common pathogens.

In practice a sample is taken after teat cleaning and the stripping of fore milk. This might be from a suspected quarter, or as a composite sample from the four quarters to get an overall picture of udder health.

The sample is then streaked onto the CheckUp test plate and incubated for 24 hours then compared with the reference charts. The location and colour of any growths will determine the pathogen involved.

If there are no growths it is prudent to re-incubate for a further 24-96 hours to ensure the sample is clear. In a lot of cases the cow will self-heal but the test will enable the user to detect underlying pathogens that lead to chronic problems.

The test kit can detect S.aureus, CNS, Corynebacterium, Strep Uberis, Strep dysgalactiae, Strep agalactiae, Enterococcus, E.coli, Kliebsiella, Serratia, Enterobacter, yeast, prototheca and pseudomonas. By identifying the key pathogen, the correct anti-

biotic can be prescribed for effective treatment and a reduction in resistance often caused by general treatment.

The key benefit of the kit is that results are to hand in 24 hours, as opposed to a vet test that might take 3-14 days depending on where the samples are cultured and analysed.

Other than the incubator, no special equip-

ment is required, and the test eliminates the need for a microscope, so might prove useful to vets who don’t have on-site laboratories but seek to get to the bottom of farmers’ high cell counts quickly.

Price: $620+GST for the start-up kit including the incubator and reference materials; individual tests then cost $22 each, bundled as 10 consumables.

Leon Spurrell (right) and Natasha Maguire with their mastitis diagnostic tool.

www.farmmedix.com

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DAIRY NEWS JULY 21, 2015

42 // MACHINERY & PRODUCTS

Slurry tankers do it sooner than contractors MARK DANIEL markd@ruralnews.co.nz

THE DAIRY industry

now fully realises the benefits of applying effluent (FDE) to land; not least its fertiliser value – the ability to replace N, P and K, and trace elements, rather than rely on artificial fertilisers.

Nevada slurry tankers, from importer Mid-West Machinery, Taranaki, enables timely dealing with FDE, particularly when ground or weather conditions are suitable, rather than when a

protected by a double to travel over paddocks contractor can get to without causing damage. overflow system. Tankers them. of 10,000L and bigger The tanks have internal With models ranging have the maker’s Ezibaffles to prevent from single axle units Load system – a loading surging of part loads, at 6000L up to colossal arm with a triple axle units 200mm pipe for at 34,000L, there rapid loading. should be a Safety is taken care of No need for model to suit all by hydraulic brakes, the operator to enterprises. The hydraulic parking leave the tractor 10,000-13,000L jacks and swivel seat – the arm is models are the raised or lowered most common and hitches on all but the hydraulically, suit the typical entry level machine. and connects tractors on dairy with the pond farms. filling station to Centred on a and steel implosion rings speed turnaround and fully galvanised tank for ensure clean and safe to prevent pressure or a long service life, and a operation. vacuum related issues. heavy duty chassis with Safety is taken care Filling is via a heavy large flotation tyres, of by hydraulic brakes, duty vacuum pump, the units are designed

MAX Tanks TM

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hydraulic parking jacks and swivel hitches on all but the entry level machine, and optional sprung drawbars and axles as required.

Spreading is carried out by pressurising the tank and opening the hydraulically actuated discharge valve; spread

width is up to 12m. Basic spreading is effected by a splash plate; an optional side discharge nozzle spreads to inaccessible areas.

A trailing shoe applicator, which fits to the rear of the tanker, offers a more controlled spread, minimising

odours and getting the cows back onto treated pasture more quickly Options such as steering axles, accessory couplers and extension pipes make for a big variety of applications.

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DAIRY NEWS JULY 21, 2015

MACHINERY & PRODUCTS // 43

Synthetic pond liner with good pedigree WITH PRESSURE on farmers to tidy up their act in effluent handling, Viking Containment’s timing in introducing a new liner for storage ponds or lagoons couldn’t have been better.

Geotough EPDM, a synthetic rubber membrane, has superior resistance to UV, ozone and weathering, a 50 year performance history and a 20 year warranty.

The product has

excellent lay-flat and elongation properties that give it flexibility for laying over difficult substrates. It also passes J-tear tests (ASTM D-624) for easy fixing around protrusions.

The product is made in the US by Carlisle Syntec, who led the development of single ply EPDM in the 1960s; they have since done 200,000 installations adding up to a staggering 1.1 billion m2 of membrane.

Tornado fertiliser spreader.

Fert spreader designed to perform, endure MARK DANIEL markd@ruralnews.co.nz

THE RECENT cold snap makes it hard to imagine spring is just around the corner, but Tornado fertiliser spreaders from Agriquip should make a breeze of spreading for the new campaign.

Based on a heavy duty, hot dipped galvanised steel frame, the Tornado 1300 looks like it’s built to last, and that the designers have put some thought into how it’s put together.

Any components likely to contact the fertiliser – spreader discs, vanes, guards and hopper shutters – are manufactured from stainless steel; the one piece hopper is made from polyethylene and is quickly removed for access to the guts of the unit to do cleaning or maintenance.

Adjustments are easy: spreaders vanes are adjusted by a single wingnut, and the shutter opening by a threaded nylon rod. Shutter actuation is controlled from the tractor seat by hydraulic rams.

With a hopper capacity of 1300L, one tonne can be loaded easily with little risk of spillage. Spread width, dependent on material, is up to 36m.

The drive to the central and lateral oil-filled gearboxes is by 540rpm PTO, the standard specification includes a galvanised mesh in the upper hopper to remove lumps and foreign objects, and agitators keep fertiliser moving in the lower part. www.agriquip.co.nz

Viking Containment can provide a list of approved installation contractors.

Geotough EPDM has superior resistance to UV, ozone and weathering.

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DAIRY NEWS JULY 21, 2015

44 // MACHINERY & PRODUCTS

High-vis barrier keeps them out IT’S SOMETIMES claimed

the best ideas are the simplest ones, and an entry in the Innovation Awards at Fieldays backed this thought.

Owners of CeeMee Ltd, Neil McKinley and Dell Wilkins, from Ngakuru, southwest of Rotorua, are dairy farmers who identified a need for temporary barriers onfarm.

Their Click hi-vis barrier should prove useful in agriculture and anywhere else there is a need, eg keep- ing the public off a pristine lawn or out of a high hazard area in a car workshop.

Available in four sizes and widths from 5.8-7.8m, in green, blue, yellow, orange, pink and red, or maybe a mix of all, there is a combination for any application.

The heavy duty plastic construction closes up tight for

transport, has moulded allweather handles at each end of the tape and a loop for a padlock to stop unauthorised people removing the barrier. www.ceemee.co.nz The High-vis banner keeps cows out and closes up tight for transport.

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Engine maker plans factory GERMAN ENGINE maker Deutz says it plans to spend Euro 26 million ($NS43m) on building a 13,500m2 production hall at its Cologne-Porz headquarters.

Destined for the production of crankshafts and camshafts, the plant will comprise a Euro 15m building with the latest energy saving technologies, and manufacturing technology costing Euro 11m.

The existing production site at Cologne-Deutz will be vacated in stages,

and 130 pieces of manufacturing hardware will be relocated at the new site between March and December 2016.

Chairman Dr Hemut Leube commented, “Our decision to build a new facility represents an investment in our future business because we are safeguarding our ability to innovate and compete. The centre will become an integrated site for large scale production runs, and ultimately create around 140 jobs.”

DAIRY NEWS JULY 21, 2015

MACHINERY & PRODUCTS // 45

Milk chiller will ensure compliance FARMERS PLANNING

to meet new milk cooling regulations from 2017 are offered a new means of doing so.

The Packo Ice Builder, used on European dairy farms for 50 years, is now sold here. Two machines are on trials on two farms, and several have been sold, says the distributor Dairy Cooling Solutions, a division of Eurotec.

Sales and marketing director Chris Farmer says Packo is considered a pioneer in milk cooling and is the world’s oldest milk cooling tank maker. Units have been sold for over 20 years in Australia; and more than 1500 operate there.

New Zealand milk is highly regarded for its quality and safety, despite our temperature rules for raw milk being less stringent than our major trading partners.

In NZ milk temperature must drop to 7˚C within three hours of milking and remain at 7˚C until collection, similar to the US. In China it must get to 4˚C within two hours of milking, and the same in Russia. In Australia milk temperature must be 5˚C within 3.5 hours of starting milking. In the EU, 8˚C after milking and 6˚C

degrees if not collected daily.

The new MPI regulations require farmers to hold milk at 6oC or cooler until the tanker collects.

The new rule takes effect from mid 2016 for new farm dairies and mid 2017 for existing dairies.

Farmer says Dairy Cooling Solutions will sell the Packo Ice Builders via contractors, ensuring full back-up service.

He says a one-size-fitsall approach will not work for milk cooling.

“Each farm is different, with different herd sizes and different energy consumption, some have pre-cooling whilst others don’t. We will talk to farmers and contractors and engineer solutions to fit each farm.”

The Packo Ice Builder is claimed perfect for farms where access to water for pre-cooling is a problem; it is possible to cool all the milk without any bore water. ”It has a large instant cooling capacity: ice is melted down at the moment of use. It has maximum cooling speed, there is no risk of product freezing and most importantly it saves energy, reduces peak demand and shifts energy consumption.”

HOW THE PACKO WORKS THE PACKO Ice Builder builds up an ice reserve during off-peak production periods with which it can cool a large amount of ice water to zero degrees.

The unit is made of stainless steel plate (AISI 304). Foam insulation 50mm thick is injected between the interior and exterior housing.

Ice water runs through a plate heat exchanger for snap chilling, or the heat exchanger in the PACKO DIB tank if an Ice Water Milk Cooling Tank is integrated (this provides the most efficient cooling solution). Rapid cooling, without the risk of freezing, is ensured.

Options include an extra ice water pump(s) for instant cooling and a time clock for the use of cheaper night-rate electricity.

A unit can be integrated into an existing cooling system, or can be offered as part of a new system.

European-made Packo Ice Builder is now available in New Zealand.

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CONTACT YOUR LOCAL MF DEALER FOR A REAL DEAL MASSEYFERGUSON.CO.NZ | FREECALL 0800 825 872

MASSEY FERGUSON®, MF®, the triple-triangle logo® is a worldwide brand of AGCO. © 2015

DAIRY NEWS JULY 21, 2015

46 // MACHINERY & PRODUCTS

When will it all stop?

AS FARMERS and con-

tractors seek more efficiencies we see average power climbing and implements getting wider, longer or heavier; but the biggest change in ten years is the increase in tractor speeds.

It used to be the norm for the ‘old faithful’ Ford 4000 to rattle along at 30km/h, but everything off the shelf now runs at 40km/h, contractors favour 50km/h for road work, and some manufacturers in the last three

years have introduced – subject to local regulations – 60km/h rockets.

Inevitably then, some regulatory body was bound to study the other side of the equation, and the need to regulate to bring these machines to a safe controlled standstill.

Step forward the good old EU. New EU braking regulations will be in 2016, including new, higher requirements for tractors’ braking performance, compatibility, safety stan-

TORNADO 1300

One tonne Urea capacity Twin disc spreader

dards and stability. And because most of NZ’s tractors are from Europe, these systems are likely to be part and parcel of the

vehicles arriving here.

Requirements for compatibility between tractor and towed vehicle will ensure braking distances are shortened, and the systems are optimised for the towing and the towed vehicles.

From 2016 anti-lock braking (ABS) will be mandatory on all tractors capable of 60km/h or more. And there is a move to apply this, by 2020, to tractors capable of 40-60km/h. Big spending

06 759 8402 FOR YOUR NEAREST DEALER www.agriquip.co.nz

sales@agriquip.co.nz

WED V E NH SPE

S ER

VERSATILE HAS a good pedigree in building tractors. Having built the first equal-wheel 4WD (D100) in 1966, the company has gone on to build machines for broadacre farmers in North America and Canada, gaining a reputation for big, strong and simple.

More importantly they have always met the main requirement for a heavy tractor: getting power to the ground.

A casualty of the CNH merger of the late 1090’s, it changed hands a few times, the name disappearing then re-emerging

Stu Mawley, Te Mata Contracting.

ION

HIG

B i G PA C K L ARGE SQUARE BALER

With a KRONE large square baler you purchase experience and competence in baler design.

• Better top fill, in a wide range of conditions (VFS system) • Perfectly shaped highest density bales • NEW High Speed version – up to 20% higher throughput • Longevity and durability – built to last

www.tulloch.co.nz

0800 88 55 624

embrace the technology, and sell its benefits to customers.

For some years we’ve seen more and more European style tipping trailers being sold – humble 5 tonnes up to large tandem axle units 12t and bigger.

Likewise feed wagons: as dairy operations get larger, so do feed wagons; note the number of 16m3 units on the field days circuit.

They shouldn’t be on the road behind tractors

weighing 5-7t without proper braking systems, because the ‘tail wagging the dog’ problem is likely.

And let’s not forget the Kiwi favourite, the Quick Hitch: a lump of folded angle iron with a central pin, carried 1m behind the recommended towing point of the tractor, the axle, to move heavy trailers.

Get real, it’s time we embraced proper manufacturer rated pick-up hitches to do the job.

Back in a paddock near you

1300litre/1600kg capacity Polyethylene hopper Stainless spinners Highly accurate spreading Hydraulic remote control shutters Hot dipped galvanised frame

PHONE:

and engineering changes are needed to meet the tougher rules.

A major challenge lies in the fitting ABS to the hydraulic braking systems fitted to most tractors now available, because ABS currently suits only pneumatic systems.

Uprated tractors for the Euro market will likely find their way to NZ with the technology already on board. The NZ tractor and machinery importers and dealers will need to

DEALERS NATIONWIDE

in 2008, owned by Rostelmash.

Recently resurgent in New Zealand, the firm’s new 320hp FWA row-crop tractors punch out some very good stats. From industry powerhouse Cummins, the 6-cylinder QSC 8.6 packs a punch – 322hp max power and 1383 Nm torque, and complies with emission regulations at Tier 3 levels.

Mated to a Caterpillar sourced full powershift transmission it offers 16 forward and 9 reverse speeds, making it easy for this tractor to get moving and up to operating speed.

Heavy duty back end specs allow the machine to take 15 tonnes operating weight, 3-point linkage capacity is 9000kg, and hydraulic flow from the closed centre/load sensing system is up to 205L/min.

The operator is well looked after: the HQ Cab allows 35% more forward visibility through 7m2 of glass, and a semi-active air ride seat with swivel should add up to a comfortable day or night working.

Hawkes Bay contractor Stu Mawley, of Te Mata Contractors, is one such person.

Having run two 250hp Versatiles for the past four and a half years, clocking up an impressive 8500 hours on each, he knew the two new recently arrived 320’s would be up to the task.

Te Mata Contractors specialises in row crop work, planting and general cultivation, and at many times of the year operating 24/7, so reliability and

economy are key drivers in the firm’s tractor choice.

These points were uppermost in mind when the 250’s came up for replacement, Mawley says.

“The simplicity of the Versatile, and in particular easy servicing that can be largely done in-house, was a clincher.

“The 320’s will be our front line tractors doing specialised work pulling disc harrows, deep rippers, rotary hoes and power harrows.

They are used by multiple drivers, and run non-stop much of the season, so servicing is paramount.

“Versatile has put a lot of thought into the new models. Daily checks are all done at ground level using easily read sight glasses, and there’s a onepiece hood for access.”

Commenting on the latest models, Brett Maber, tractor sales manager for importer Power Farming, said “Versatile has spent many millions on R&D for their new models, addressing issues largely in styling.

They’ve always had a reputation for hard work and a long life with over-engineered components, and that doesn’t change. It’s based on a 50 year history in some very tough conditions.

“And now we’re seeing lots more sophistication and style that will appeal to NZ farmers and result in a lot more interest and ultimately sales.” www.powerfarming. co.nz @dairy_news facebook.com/dairynews

For Accelerated Rumen Development in Calves

QUARTERLY MAILER New Zealand – Winter 2015

Over 57 Years of GENUINE SUPPORT

Dedicated support at your fingertips

AR D SU PR EM E AW

,0 00 UN DE R $1 40

Affordable genuine parts for your older machinery

New European merchandise range

BEST

CONTROLS

BEST

INNOVATION

BEST

SERVICEABILITY

BEST

HYDRAULICS

INTRODUCING THE

10+ RANGE

GENUINE MASSEY FERGUSON PARTS TO SUIT YOUR TRUSTY OLDER MACHINERY, AGED 10 YEARS PLUS. We realise these machines still mean the world to you and you still need Genuine parts at competitive prices with genuine peace of mind, so talk to your Dealer today about the growing range and remember to always keep it GENUINE!!

10+ MEANS • • • •

Competitive Pricing Genuine Quality Perfect Fit 12 Months Warranty

Throughout the following pages, we highlight the first of many Genuine Massey Ferguson parts to be included in the 10+ Range.

Make sure you are subscribed to The Genuine Choice Mailer for all future additions to the range.

TE20 SERIES GENUINE PARTS ENGINE OIL FILTER - $9.76 PART NUMBER: 894976M92

WATER PUMP ASSEMBLY - $78.89 PART NUMBER: 1885489M92

THERMOSTAT - $12.70

FAN - $127.19

PART NUMBER: 629004M1

FUEL FILTER - $9.40

FUEL LIFT PUMP - $56.34

DYNAMO - $245.56

DISTRIBUTOR CAP - $48.99

PART NUMBER: 1850450M2

PART NUMBER: 1446165M91

PART NUMBER: 897104M92

STEERING WHEEL - $39.20

TEA20 “SUE” MODEL 1:32 - $69.65

PART NUMBER: 180576M1

FAN BELT - $22.29

PART NUMBER: 3638250M91

PART NUMBER: X993040292100

PART NUMBER: 1884857M91

PART NUMBER: 829937M1

On January 4 1958, driving 28hp TE20 tractors, Edmund Hillary’s team became the first overland explorers to reach the South Pole since Captain Scott’s expedition in 1912.

One of the actual Ferguson TE20’s (named ‘Sue’ by the team) used on Hillary’s remarkable expedition now resides in the Massey Ferguson Technology Centre in Beauvais, France.

In 2014, 56 years since Hillary’s journey and 56 years since the birth of the Massey Ferguson brand, a Massey Ferguson MF5600 series tractor made a similar trek across the ice.

Find out how the journey unfolded by visiting www.antarcticatwo.com

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

MF4200 SERIES GENUINE PARTS

THERMOSTAT - $19.84

PART NUMBER: 1447384M1

TOP RADIATOR HOSE - $26.95 Part Number: 3807508M1

BOTTOM RADIATOR HOSE - $23.81

WATER PUMP - $ 130.08 PART NUMBER: 4222002M91

Part Number: 3807509M1

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270. Also suits MF200 series, MF300 series, MF3000 series, MF3600 series, MF6100 series, MF8100 series.

Suits MF4225, 4235, 4240, 4245, 4255.

Also suits MF5355, MF6200 series

Suits MF4225, 4235, 4240, 4245, 4255.

Also suits MF375, MF390, MF6100 series.

RADIATOR - $ 1,085.00

RADIATOR CAP - $11.24

TOP GASKET SET - $290.95

PART NUMBER: 3808158M3

Suits MF4225, 4235, 4240, 4245, 4255.

PART NUMBER: 180224M92

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270. Also suits MF200 series, MF300 series, MF3000 series, MF3600 series, MF5300 series MF6100, MF6200 series, MF8100 series

PART NUMBER: 4224621M91

Suits MF4225, 4325 Also suits MF275, MF290.

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

BOTTOM GASKET SET - $57.20

ALTERNATOR (120 AMP) - $589.42

FUEL LIFT PUMP - $73.08

Suits MF4225, 4235.

Also suits MF275, MF290.

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270.

Suits MF4225, 4235, 4240, 4245, 4255, 4260. Also suits 6200 series.

12� CLUTCH COVER ASSY - $659.08

CLUTCH LEVER KIT - $125.98

FLYWHEEL ASSY - $528.55

Suits MF4225, MF4235, MF4240.

Also suits MF362. MF365, MF375, MF375, MF382, MF390.

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270. Also suits MF200 series, MF300 series.

Suits MF4225, MF4235, MF4240.

Also suits MF275, MF290.

AIR FILTER (OUTER) - $52.45

BRAKE MASTER CYL REPAIR KIT - $106.26

PART NUMBER: 3809345M91

AIR FILTER (INNER) - $48.32

Part Number: 3901567M91

Suits MF4225, MF4235, MF4240.

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270.

Also suits MF5340, MF5355.

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270.

Also suits MF6200 series, MF8200 series.

TOOLBOX - $53.81

GRAMMER SEAT - $1,265.00 (MECHANICAL SUSPENSION)

PART NUMBER: 4224292Z91

PART NUMBER: 3701014M92

Part Number: 3901462M2

PART NUMBER: 3909794M1

PART NUMBER: 3900546M91

PART NUMBER: 4224451M91

PART NUMBER: 3819666M91

HEAD LAMP - $47.61

Part Number: 3901463M2

FRONT GRILLE - $377.39 PART NUMBER: 3805876M91

PART NUMBER: 1696186M94

PART NUMBER: 4272511M91

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270. Also suits MF5340, MF5355, MF6245, MF6255, MF6565, MF6570, MF6290, MF8260.

Suits MF4225, 4235, 4240, 4245, 4255, 4260, 4270. Also suits MF200 series, MF300 series, MF5400 series, MF6100 series, MF6200 series, MF8100 series, MF8200 series

Suits various makes & models

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

MF6200 SERIES GENUINE PARTS

PISTON ASSY - $161.35

CYLINDER LINER - $113.27

PISTON RING KIT - $54.49

PART NUMBER: 4222129M1

PART NUMBER: 4222136M91

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF4200 series, MF6100 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF4200 series, MF6100 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF4200 series, MF6100 series.

CYLINDER HEAD GASKET - $52.27

OIL SEAL (TIMING COVER) - $16.60

WATER PUMP - $457.39

Suits MF6235, 6245, 6255, 6265.

Also suits MF4200 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290. Also suits MF275, MF290, MF3600 series, MF4200 series, MF6100 series.

Suits MF6235, 6245, 6255, 6265.

PART NUMBER: 4222134M91

PART NUMBER: 4224501M1

PART NUMBER: 4226213M1

PART NUMBER: 4225392M91

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

WATER PUMP REPAIR KIT - $285.20

ALTERNATOR (70AMP) - $419.96

STEERING PUMP - $985.26

Suits MF6235, 6245, 6255, 6265.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF6100 series

SEAL KIT - STEERING CYLINDER - $77.56

STEERING BALL JOINT - $115.40 EA

AIR COND MOTOR - $328.50

Suits MF6235, 6245, 6255.

Also suits MF275, MF290, MF362, MF390, MF4200 series.

Suits MF6235, 6245, 6255.

Also suits MF200 series, MF300 series, MF4200 series, MF6100 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF3600 series, MF8100 series, MF8200 series.

PART NUMBER: 4224675M91

PART NUMBER: 3484327M92

THROTTLE CABLE - $43.99

PART NUMBER: 3933142M91

Part Number: 3764027M2 - (RH) Part Number: 3764028M2 - (LH)

PART NUMBER: 3382280M1

PART NUMBER: 3310831M91

PART NUMBER: 3778639M1

PART NUMBER: 3617651M91

BRAKE DISC - $232.30

WIPER MOTOR (REAR) - $232.30

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF6100 series, MF8100 series, MF8200 series

Suits MF6235, 6245, 6255.

Also suits MF6100 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF6100 series, MF8100 series, MF8200 series, MF8400 series.

WIPER MOTOR (FRONT) - $184.30

WIPER BLADE - $17.92

REPAIR KIT - CLUTCH MASTER CYLINDER - $185.15

PART NUMBER: 3777698M92

PART NUMBER: 3713195M1

PART NUMBER: 3715610M2

PART NUMBER: 1642034M91

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF6100 series, MF8100 series, MF8200 series, MF8400 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF4200 series, MF6100 series, MF8100 series, MF8200 series, MF8400 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF2600 series, MF3000 series, MF3600 series, MF6100 series, MF8100 series, MF8200 series

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

FUEL TANK CAP - $20.89

HYDRAULIC PUMP ASSY - $938.00

PTO SHAFT - 540/1000 RPM - $562.72

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF3600 series, MF6100 series, MF8100 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF8200 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF5400 series, MF6100 series, MF6400 series, MF8100 series.

PART NUMBER: 3041489M4

PART NUMBER: 3799411M2

PART NUMBER: 3382074M10

TOP LINK (HOOK END) - CAT 2 - $297.56

TOP LINK (BALL END) - CAT 2 - $244.66 PART NUMBER: 3615054M3

PART NUMBER: 3813361M1

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF5400 series (early models), MF6100 series, MF6400 series (early models).

Suits MF6235, 6245, 6255, 6265, 6270, 6290 Also suits MF5400 series (early models), MF6100 series, MF6400 series (early models).

Suits MF6235, 6245, 6255, 6265, 6270, 6290. Also suits MF200 series, MF300 series, MF400 series, MF4200 series, MF8100 series, MF8200 series, MF8400 series.

STRUT (REAR WINDOW) - $37.94

DOOR HANDLE ASSY - $88.20

MIRROR - EXTERIOR (EXCLUDES ARM) - $61.69

PART NUMBER: 3615052M4

Part Number: 3902140M1

Part Number: 3902356M91

IGNITION KEY - $5.03

PART NUMBER: 3806614M91

STRUT (DOOR) - $31.48 Part Number: 3902121M4

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF6100 series, MF8100 series, MF8200 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF400 series, MF6100 series, MF8100 series, MF8200 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF300 series, MF4200 series, MF6100 series, MF8100 series, MF8400 series.

FRONT LENS - $27.80

REAR LIGHT LENS - $37.89

TAIL PIPE (EXHAUST) - $91.91

PART NUMBER: 3105050M1

PART NUMBER: 3383014M7

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF6100 series, MF8100 series.

Suits MF6235, 6245, 6255, 6265, 6270, 6290.

Also suits MF4200 series, MF6100 series.

PART NUMBER: 3105505M1

Suits MF6235, 6245, 6255, 6265, 6270, 6290. Also suits 6100 series, 8200 series, 8400 series.

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

CHECK OUT THE CURRENT

MIGHTY MASSEY FERGUSON TRACTOR RANGE...

MF5600 SERIES

85 – 120 HP

As seen in the Antarctica 2 expedition.

For more info visit www.antarcticatwo.com

ASED! E L E R T S JU MF GC1700 SERIES

MF400 SERIES

MF2600 SERIES

MF4600 SERIES

MF4700 SERIES

MF6600 SERIES

MF7600 SERIES

MF8600 SERIES

MF8700 SERIES

22.5 – 24.5 HP

80 – 100 HP

140 - 235 HP H

80 OR 100 HP

74 – 82 HP

320 – 370 HP

CONTACT YOUR NEAREST MASSEY FERGUSON DEALER FOR MORE INFORMATION

38 – 74 HP

120 - 140 HP

270 – 370 HP

DEDICATED SUPPORT AT YOUR FINGERTIPS

PARTS BOOKS TO GOTM features: -

Easily find parts with exploded view drawings Create a Parts List Send Parts Lists to an e-mail of your choice Supports off-line book viewing Multi-language support Access Parts Catalogues on the go All Models included (Old & New)

PARTS BOOKS TO GOTM is supported on all current ios and selected android devices.

Simply download from the App Store and contact your local Dealer for your personal log in.

WIN AN IPAD AIR. Simply download Books To Go from the app store and contact your MF dealer for a personal log in to automatically enter.

3 TO GIVE AWAY!

ONE DRAWN EACH MONTH DURING JUNE, JULY & AUGUST

Meet Glenn Jackson Meet Glenn Jackson from the small town of Taumarunui, in the King Country, New Zealand. Glenn is in partnership with his father, Colin, and together they run a Silage & Hay Baling Contracting business, and it’s fair to say they are very passionate about their Massey gear.

During the off season Glenn heads overseas, often to Western Australia to work the harvest, but this year he is escaping the NZ winter months and working the wheat harvest in Dalhart, Texas USA. Unfortunately Glenn isn’t operating Massey gear in Dalhart, but he is very much looking forward to being reunited with his beloved Massey’s when he returns to New Zealand in spring.

We asked Glenn to give us some feedback on the new Books To Go App, and here is what he told us.

What do you like most about the new Books To Go App? “Being able to access parts information anytime and anywhere.

I’m an ex-diesel mechanic so I do like to do some of the smaller jobs on my machinery, but to have all the parts books in front of me and being able to talk to our local Dealer over the phone is a great help. It makes for a very simple process. Of course our Dealer always checks to ensure we haven’t missed any serial number breaks and variants in specification levels or things like that.”

“I really enjoy not having to carry around parts books anymore.

Because we are contractors we work in many different locations, so with the new Books To Go app, all I need is my iPad and I’m away.”

Do you use the pick list function with the ability to send orders directly to your Dealer?

“Yes, I use this every time. It’s so easy to just add all the items I need to a nice simple shopping cart and

then within seconds I can export the list to my Dealer by e-mail. If the parts are in stock at the Dealership it’s an extremely quick turnaround and if they need to come from the master warehouse in Melbourne, I have them the next morning. It really makes for a simple process and that service is fantastic.”

Do you use “offline books”?

“Yes, this is one of the best features of the App. Because we are often working in remote locations without internet access, I can download all the required books for my tractor models to my device, meaning that I can still use the app without internet coverage while I’m in the back blocks in the middle of nowhere. Then my simple e-mail list of parts sits in my e-mail outbox until I get in a reception area and then it is sent to my Dealer.”

All models are included. Even the older tractors. Is this a bonus for you?

“I have eight Massey Ferguson tractors in total, ranging from early

machines such as the trusty MF35, MF135 and MF168, all the way through to the MF6290, 3x MF7400’s, and the tractor I call “The Beast”, which is a big MF8160. All these models are included in the App, so it’s a must for anyone who owns Massey Ferguson, Fendt, Valtra or Challenger tractors or any Hay and Harvesting products for that matter as well.”

How has the Books To Go App added value to your business?

“I’d have to say it’s all about those time critical moments. This App has saved me so much time over the past six months and helped us build a more efficient operation. Less downtime when repairs are required along with better communication and interpretation methods have really made the parts ordering process so simple for me. Also, we often need to identify parts afterhours, so with this handy App I can work out exactly what I need and send it through to my Dealer afterhours, so I’m free to do other jobs during the critical working hours of the day.”

THERE’S NO TIME FOR DOWNTIME THIS SEASON!!

Your local Massey Ferguson Dealer has a range of quality spare parts to suit your Balers & Hay Tools this season. No matter what age or condition your machinery is in, contact them today for a competitive quote.

GENUINE AGCO HAY PARTS GIVE YOU: Consistent O.E.M Quality Competitive Pricing

A LITTLE PREVENTATIVE MAINTENANCE IN THE OFF SEASON WILL REDUCE DOWN TIME IN THE HEAT OF THE SEASON.

Technical Knowledge & Support 12 Months Warranty Genuine Peace of Mind

Announcing the winners of the summer sporting membership promotion as advertised in the last edition of The Genuine Choice.

Merv York from Longwarry, VIC David Kiepe from Westbrooke, QLD Cranbourne Turf Club, Cranbourne, VIC

WINNERS!

Congratulations to the winners! We hope you enjoy your AFL and NRL memberships and thank you to everyone across Austrailia and New Zealand who participated in this exciting promotion.

MF35 SERIES GENUINE PARTS

RADIATOR CAP - $11.74

WATER PUMP REPAIR KIT - $ 139.77

TOP GASKET SET - $69.68

OIL SEAL - CRANKSHAFT REAR MAIN - $11.24

ENGINE PRESSURE GAUGE - $50.59

GAUGE - WATER TEMPERATURE - $32.65

HYDRAULIC FILTER - $32.65

OIL PUMP ASSEMBLY - $109.35

FUEL LIFT PUMP ASSY - $68.11

PART NUMBER: 3475308M1

PART NUMBER: 731774M91

PART NUMBER: 1853097M91

PART NUMBER: 4222562Z91

PART NUMBER: 881396M91

PART NUMBER: 825208M1

PART NUMBER: 521451M1

PTO CLUTCH DISC - 9” DUAL CLUTCH - $87.25

PART NUMBER: 3637359M91

HUB BEARING KIT - $45.82 PART NUMBER: 1810416M91

PART NUMBER: 4222094M91

DECAL KIT - $51.11

PART NUMBER: 3406970M91

PART NUMBER: 3620411M91

All pricing listed on this page is RRP including GST and is correct at the time of printing, but AGCO Australia reserves the right to make price changes without notification. All images, part numbers and model applications are intended as a guide only so please ensure you check for the correct application against your model and serial number with your dealer prior to ordering.

MASSEY MERCHANDISE Direct from Europe

Check out the new range of European Massey Ferguson toys, clothing and merchandise. Talk to your dealer about the current offer and place an order today.

ALL MASSEY FERGUSON MERCHANDISE ORDERS DURING JUNE, JULY & AUGUST GO INTO THE DRAW TO WIN THEIR MONEY BACK!* WE WILL DRAW 1 PRIZE EACH MONTH (TOTAL OF 3 PRIZES).

*Maximum prize value is $500 inc gst, based on the original invoice value. Competition valid for orders $100 and over from the European Massey Ferguson Merchandise range purchased between 1st June 2015 - 31st August 2015.

www.masseyferguson.co.nz | Freecall: 0800 825 872

MASSEY FERGUSON®, MF®, the triple-triangle logo® is a worldwide brand of AGCO. © 2015

EHT FO TSER EHT TUO KCEHC DEALER FOR MORE INFORMATION CONTACT YOUR NEAREST MASSEY FERGUSON

MIGHTY MASSEY REIGNS SUPREME!!

NOSUGREF YESSAM YTHGIM Don’t just take our word for it, the MF7615 has been independently voted the best value for money tractor in the 2015 Farm Trader Tractor Shoot Out. With a wide range of specifications, choice in transmission and unbeatable pricing, look no further than the MF7600 Series.

...EGNAR ROTCART

It is not often you get all four judges to agree on the Top Tractor Shoot Out winner within the first five minutes of deliberation talks. The Massey Ferguson 7615 Dyna-6 was a clear winner, despite the calibre PH 073 –CASE-IH, 072 of the highly competitive line-up of entrants from the brands John Deere, New Holland, Class and Deutz-Fahr. There are a number of reasons the judges unanimously decided on the MF7615 as the Top 120 – 140 HP 140 – 235 HP 320 – 370 HP and Tractor Shoot Out 2015 for the best under $140,000 MF6600 SERIESwinner. They were looking MF7600 SERIES value for money tractor MF8600 SERIES all things considered, they were convinced this is it.

SEIRES 0078FM

The Massey Ferguson 7615 Dyna-6 is a good looking, well designed tractor, with many features. There is no doubt that it stood out from the crowd in terms of individual customisation, particularly of transmission and hydraulic settings all combined in a comfortable, well refined cab.

SUMMARY FROM THE JUDGES AFTER THEIR REVIEW ON THE 7615 DYNA-6; 80 – 100 HP

74 – 82 HP

• WellMF4600 laid out SERIES cab.

• • • • • • •

80 – 125 HP

MF4700 SERIES

MF5400 SERIES

Plenty of of controls.

SEindividual IRES 0062customisation FM SEIRES 004FM Four PH 4speed 7 – 83 PTO. PH 001 RO 08 Transmission can be controlled from four different locations Daily servicing has been well thought out.

The engine held on very well over a wide PTO speed band and never really felt like it was going to drop off the power.

22.5 – 243.5 HP 80 OR 100 HP Transmission can be driven through all 24 speeds without MF GC1700 SERIES MF400 SERIES using the clutch.

SEIREto S 0have 045Felectric M SEIaREjoystick S 0074FM Only tractor spools including PH 521 – 08 PH 28 – 47 with gear and direction changes as standard.

SEIRES 0071CG FM

PH 5.342 – 5.22

38 – 74 HP

MF2600 SERIES

SEIRES 0064FM

PH 001 – 08

FOR THE FULL STORY VISIT WWW.TRADEFARMMACHINERY.COM.AU

SEIRES 0068FM

SEIRES 0067FM

PH 073 – 023

SEIRES 0066FM

PH 532 – 041

WA R D SUPREME A

PH 041 – 021

TRACTOR RANGE...

MIGHTY MASSEY FERGUSON 270 – 370 HP

MF8700 SERIES 0 ,0 0 0 UNDER $14

CHECK OUT THE REST OF THE BEST

CONTROLS

BEST

INNOVATION

NOSUGREF YBEST ESSAM TSERAENBEST RUOY TCATNOC NOITAMROFNI EEQUIPPED ROM ROF RELAEDBEST HYDRAULICS DYNO

BEST

SERVICEABILITY

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www.masseyferguson.co.nz | Freecall: 0800 825 872

MF7615 DYNA-6 | 150 HP

CLOSEST TO RATED POWER

278 528 0080 :llaceerF | zn.oc.nosugrefyessam.www MASSEY FERGUSON®, MF®, the triple-triangle logo® is a worldwide brand of AGCO. © 2015

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Every effort has been made to ensure that the information contained in this publication is as accurate and current as possible. However, inaccuracies, errors or omissions may occur and details of the specifications may be changed at any time without notice. Therefore, all specifications should be confirmed with your Massey Ferguson Dealer or Distributor prior to any purchase. Finance and loaders deals at participating dealerships only. Please check with your local Massey Ferguson dealer for details. is a worldwide brand of AGCO.

www.masseyferguson.co.nz

MASSEY FERGUSON速, MF速, the triple-triangle logo速 is a worldwide brand of AGCO. 息 2015