Dairy News 22 September 2015

$5 payout a step closer to reality. PAGE 3

VERSATILE CONTRACTORS Getting on with the job PAGE 33

BUDGET REVIEW Banks query overdraft PAGE 8

SEPTEMBER 22, 2015 ISSUE 343 // www.dairynews.co.nz

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J559

$5 payout a step closer to reality. PAGE 3

VERSATILE CONTRACTORS Getting on with the job PAGE 33

BUDGET REVIEW Banks query overdraft PAGE 8

SEPTEMBER 22, 2015 ISSUE 343 // www.dairynews.co.nz

OPENING POKENO TO THE WORLD

Yashili’s $220 million infant formula plant will open its doors to tourists after official launching in November. PAGE 6

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DAIRY NEWS SEPTEMBER 22, 2015

NEWS // 3

$5 payout back on the radar PAM TIPA pamelat@ruralnews.co.nz

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NEWS ������������������������������������������������������3-16 OPINION ����������������������������������������������18-19 AGRIBUSINESS ����������������������������� 20-21 MANAGEMENT �������������������������������22-26 ANIMAL HEALTH �������������������������� 27-30 MILK QUALITY ���������������������������������31-32 MACHINERY & PRODUCTS ��������������������������������������33-38

FARMGATE MILK price forecasts by at least two banks, ASB and BNZ, have now been hiked upwards to $5/kgMS for the 2015-16 season.

This follows last week’s GlobalDairyTrade auction in which the overall index rose 16.5% and whole milk powder rose 20% to US$2495/t.

ASB has raised its forecast milk price by 50c from $4.50/kgMS to $5/kgMS and BNZ by $1.20, from $3.80 to $5/kgMS. All eyes will be on Fonterra this week to see if it revises its forecast milk price of $3.85/kgMS at the release of its annual results on Thursday.

Doug Steel, BNZ economist, says just six weeks ago there was probably a downside risk to the coop’s previous forecast of $3.80/kgMS. This risk squared to neutral, then at the last auction it went to upside and it has now lifted, showing how much things have changed in the past couple of months.

Steel says they had been hoping for a decent increase in last week’s GDT -- maybe in the 5-10% range. But at 16.5% the rise was “encouraging”.

Prices are moving in the right direction and obviously less volume is part of it.

“Potentially there is a change in buyer psychology. When prices were falling rapidly before, there was the tendency [for them] to step back, thinking [they] would get the product cheaper at the next event,” he says.

“Now that prices have clearly turned higher, there seems to be more keenness to buy now and there is an increase in the number of unsatisfied buyers which suggests there are more of them and they are struggling to get product, which is pushing prices higher in the near term.

“We are of the opinion there [will be] some further gains over the course of this current season but certainly we haven’t factored in anything like

Whole milk powder prices have risen to US$2495/t.

Inset: Doug Steel, BNZ economist.

the pace of climbs we have seen in the last three events.”

BNZ is factoring in prices getting to $2700/t to $2800/t for whole milk powder. “They are currently averaging about $2500/t, so we are forecasting a little bit higher but nowhere near the degree of increase we have seen over the last few events.

“We have stressed over the last few months the wide range of possibilities and there are many moving parts out there -- whether it be demand from China, or wobbles in financial markets or indeed just [the state of] the weather. We know there is a very strong El Nino but we don’t know what will be its impact on production.

“When there are so many things in play the market tries to figure out all those things and you see volatility in prices and that’s what we have.”

ASB rural economist Nathan Penny says the bank expected a decent increase at last week’s auction of about 15% for whole milk powder so the 20% was within the range of its forecasts.

“The market is still a bit focused on what Fonterra is doing with its auction volumes. That may explain some of that additional price strength for now,” he says. But he says the market has not yet fully realised the potential extent of a drop in NZ

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milk production which the ASB forecasts could be up to 5% (see sidebar).

Rabobank economist Emma Higgins says the massive jump in GDT prices is extremely pleasing and positive news. “The underlying reasons are largely a decrease in available supply and an increase in interest. The main driver is falling supply which is creating a short term mini-market,” she says. Rabobank predicts NZ production could fall up to 8%.

“We have more buyers in the latest auction and these have been largely spooked by the prospect of further volume reductions, and some are looking to sell their 2016 pipelines at the lowest-possible prices and they are tied to NZ product in some cases.”

However she says the GDT is unlikely to continue rallying at these extreme rates until there is a major shift in the fundamentals and a rebalancing of supply and demand factors.

“That is starting. Farmgate prices are falling elsewhere; we have seen farmers converge on Brussels protesting at the milk price. Once prices start falling that is a huge signal to decrease production and that’s what we need when the world is still awash with milk,” she says.

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DAIRY NEWS SEPTEMBER 22, 2015

4 // NEWS

Southland drowns, losses mount PETER BURKE peterb@ruralnews.co.nz

A COLD wet winter and the low payout

is a disaster for Southland dairy farmers, says DairyNZ. The average loss on the region’s farms will be $360,000; some will lose even more.

DairyNZ’S Richard Kyte told Dairy News the wet winter contributed to poor utilisation of crops, and cows have lower body condition scores than normal at this time of the year.

“The very cold temperatures and continued rain has resulted in poor pasture growth rates so average pasture covers have typically been lower than normal. This was also due to the poor growing conditions last season so we don’t have large amounts of supplements on hand such as silage and baleage,” he says Kyte says feed is short in the region, a problem compounded by drought last season in Otago and North Canterbury; extra supplies of baleage and silage are almost non-existent.

APPEAL FOR FEED FEDERATED FARMERS Southland president Allan Baird is appealing for anyone in the lower South Island with supplements surplus to requirements to tell Feds or their stock and station agents.

He says the situation for Southland dairy farmers is very tight with poor pasture growth rates.

“I’m appealing to anyone – including people on lifestyle blocks – who may have a spare bale or two of silage to let me know. While this may not feed a mob of cows it may when added to other supplements make a difference for some dairy farmers.”

Allan Baird, himself a dairy farmer, has noticed that once people get back to second round on their farms the growth rate is quite low.

After a few fine days the growth picks up but the ongoing cold wet snap is making it tough.

“Obviously we need growth rates to pick up to turn things around. Farmers are struggling to maintain pasture in good condition in the wet weather.

They are using such strategies as standing cows off to try to prevent pugging; overall the difficult conditions are taking their toll on people and animals.”

Kyte says it’s been among the wettest seasons he’s experienced. Though last spring was wet, a patch of fine weather enabled pastures to grow; but not this

where it left off in autumn and Kyte says it’s clear farmers are not holding onto any ‘passenger cows’; delays at the works are not helping.

Farmers are seeking advice on budgets and DairyNZ is advising on possible system changes. Southland farmers

are getting on with the job but there is not a lot to smile about, Kyte says.

Richard Kyte, DairyNZ says the very cold temperatures an continued rain has resulted in poor pasture growth rates.”

season, so all farmers are in a tight situation.

Some farmers are using PKE, but in this wet they need the right infrastructure on their farms to avoid damaging pastures.

“In terms of fertiliser, we have probably reached the point where it is ok to go with nitrogen. But most of what’s going on is being flown by helicopters to avoid damaging pastures.”

The cow cull is carrying on from

Banks forecasting big production drop PAM TIPA pamelat@ruralnews.co.nz

MILK PRICES should keep rising

given the scenario of falling NZ milk production, major banks predicting a drop between 4% and 8% – much higher than Fonterra’s current forecast of a 2-3% fall.

Rabobank is picking a fall of 8%, ASB forecasts 5% and BNZ picks 4%.

ASB rural economist Nathan Penny says the market has been focused on Fonterra’s reduction in volumes on the GDT but will soon turn its focus on production and this is looking particularly weak.

“We’ve now factored in a 5% fall in

production. Historically, that [would be] the largest fall since 1999… On that basis we would expect prices to continue to rise,” Penny says.

Aggressive cow culling by farmers is evidence “both in numbers and what we are hearing around the traps”. “If you look at cow slaughter, the data is running well ahead of last year. With US beef exports we are going to breach the quota for the first time since 2004, I believe, and that is largely down to the dairy cow cull.

“Farmers are likely to cull more once they get through calving and peak milk production so they are continuing to think along the lines of reducing their herd size.”

And spring has been poor, particu-

larly down south, he says.

“In Southland they are struggling with temperatures and grass growth.

The other factor is farmers using supplementary feed sparingly. So adding those things up, they are all effectively bowing to production being pretty weak. El Nino is another risk that hasn’t been factored in.”

Rabobank’s Emma Higgins says supply could fall more – maybe up to 8% -- as farmers cull, cut back the use of supplementary feed and take other measures to reduce costs. “It is a very big decrease: possibly with El Nino factored in as well, NZ production could drop significantly.”

Meanwhile, everyone will be watching the weather later in the season.

BNZ has forecast A 4% production drop for this season, but the El Nino risk and its potential effect on production is a wild card, says economist Doug Steel.

“It is not only the weather risk on that, we know we’ve had a high cow cull; in fact we’ve exported some as well,” he says. “And obviously the economics are not flash: prices are still very low even if they do lift to $5/ kgMS, cashflows are extremely tight onfarm and that doesn’t encourage production -- we’ve got -4% pencilled on the board.

“But all eyes are on the weather particularly in the second half of the season.”

ASB’s Nathan Penny says a number

of production risks have not yet been factored in by the markets, including El Nino.

“That gives us the belief that production will be weak with the possibility of it being even weaker,” he says.

“We don’t see many risks going the other way at the moment. So if that happens, prices will kick on, as markets haven’t yet factored in production being that weak.

“Sentiment and Fonterra’s reduced volumes are the two things the markets have been looking at; they are thinking production but I don’t think they have quite grasped how weak it could be. They are factoring in Fonterra’s forecast of 2-3% weaker but not yet realising it could be 5% or more.”

DAIRY NEWS SEPTEMBER 22, 2015

NEWS // 5

Sodden coasters juggle pasture, stock PETER BURKE peterb@ruralnews.co.nz

PERSISTENTLY

WET

conditions on the West Coast re causing huge problems for dairy farmers there, says DairyNZ consulting officer Ross Bishop.

The consequent risk of pugging and treading is hindering their use of available pasture, he says. And to preserve pasture, farmers are having to feed out more than they prefer because of financial stress.

Low soil temperatures are contributing to the problem, Bishop says.

“Consecutive frosts have helped with pasture utilisation because the ground was harder, but they keep soil temperatures at lower levels. Correspondingly pastures were slower to

respond and it’s fair to say soil temperatures are below what we’d normally expect at this time of year. Probably we’re two or three weeks behind where soil temperatures normally would be to be at this stage of the season.”

Bishop says the further south you go the higher the rainfall. But further north, where soils are lighter, soil temperatures should be on the rise.

“There has been an increase in the use of home-grown pasture and farmers trying to minimise the amount of imported feed added into their system. Those with a reasonable amount of imported feed… are still working their way through to the optimal maximum but the wetter conditions are making it more difficult.”

The wet is hindering fertiliser spreading, Bishop says. “The difficulty is being physically

Y L N

O E

Wet conditions on the West Coast is putting pressure on farmers and cows.

[unable to] get onto paddocks without causing too much soil or pasture damage. There is little point in leaving wheel ruts in paddocks simply to get nitrogen on, so people have been strategic with their nitrogen applications.”

But the low soil temperatures are limiting pasture growth as a response to the nitrogen.

Bishop says the culling of

poor performing cows has continued into spring, especially those that have turned up empty or are extremely late calving.

Farmers who have exhausted options for manipulating feed supply are now looking at the other side of the ledger and are trying to manipulate stock demand, hence culling cows of low cost-effectiveness.

Time for special care of cows THE WET winter in many regions – especially Southland and

the West Coast -- has prompted a DairyNZ expert on animal husbandry to warn farmers to take special care of their cows.

Nita Harding says the biggest concern is that in very wet it’s hard to get animals onto pasture without it being damaged.

Issues arise with the standard practice of grazing cows on pasture for a short time each day, then shifting them somewhere else.

“The main [question] is where are you taking them to stand and is that going to impact on, say, their ability to lie down and rest? If they are standing on concrete, sore feet and legs can occur, so managing where the cows are put and when they are off pasture is important. Sore feet can lead to lameness.

“We know that many farmers have feedpads and some have standoff pads well set up for managing cows off pasture, but if not, cows should be watched closely to make sure they’re getting adequate rest.”

Harding advises that now cows have calved and are being milked, udders and teats must be kept clean to address the risk of mastitis.

Hoof health is at risk in wet conditions so races must be well maintained.

“The surfaces cows are walking on matter more than the distance they are walking. Cows standing in a lot of mud or on poorly maintained races will [risk poor] foot health. The ideal surface is smooth, but not to the point of being slippery and not with great big stones in it. The race should be wide enough to walk along so that cows can spread themselves out to see where to place their feet,” enabling them to avoid uneven patches and stones.

Calves should have shelter and when the weather is fine should get out into the sun. – Peter Burke

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DAIRY NEWS SEPTEMBER 22, 2015

6 // NEWS

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Yashili’s new $220 million plant at Pokeno will host tourist tours.

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ONE OF New Zealand’s largest greenfield dairy projects is set to officially open in early November.

The $220 million infant formula manufacturing and packing plant at Pokeno, north Waikato, is the first plant outside China for Yashili, a big Chinese infant formula trader.

Yashili is keen to put the stateof-the-art plant on the world map; it plans to open the plant to busloads of tourists, to tell them about the business then show them around.

Yashili New Zealand operations manager Terry Norwood says Yahsili is keen on the idea of “dairy tourism”.

“Chinese tourists know the Yashili brand; they will use social media to highlight their factory visits and promote New Zealand,” Norwood told Dairy News.

The plant has started making 25kg bags of base powder and cans of formula; production will rise in the coming weeks, reaching for the plant’s rated 55,000 tonne annual capacity for formula base powder, half of it going into cans.

Norwood says the firm is awaiting final clearance from NZ and Chinese authorities before starting produc-

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Terry Norwood

INDUSTRY VETERAN TERRY NORWOOD is a 40-year dairy industry veteran.

He worked for Kiwi Dairy Co-op and NZ Dairy Group before the formation of Fonterra.

He served as chief executive of Westland Milk and worked for Fonterra in manufacturing roles in Venezuela, Mexico and Chile.

Norwood and a Chinese national were the first two employees hired by Yashili for the project three years ago.

He says it’s been an honour working on a project of this size.

On the current dairy downturn, Norwood believes it is “just a cyclical thing”.

“I really feel for farmers; on top of a low payout they are now getting cold wet spring which is depressing milk supply. It’s just not easy out there.”

tion in earnest. A grand opening on November 6 will be attended by Yashili bosses from China.

Norwood says Yashili is pleased with the new plant, which will employ 125 at peak production.

“New Zealand’s high reputation and quality in manufacturing dairy products was the reason Yashili chose us as the location of its first plant outside China. People trust New Zealand dairy products.”

Work on the plant started three years ago; Pokeno was chosen as the site due to close proximity to the ports of Auckland and Tauranga.

Yashili imports 60-70% of its ingredients for making infant formula powder from Europe; all its products are

exported to China, making contact with ports important.

“A lot of whey protein-based ingredients are imported from Europe because New Zealand has a relatively small output of these sorts of ingredients because of our relatively small cheese industry,” says Norwood.

Imported ingredients are offloaded at the port of Auckland then transferred to Tauranga’s inland port for trucking to the factory. Finished products will be exported from Tauranga and Auckland.

The infant formula will carry Yashili’s Alpha Gold and SuperAlpha brands.

The plant has the capacity to process fresh milk but there are no immediate plans to do this, says Norwood.

The company will buy milk powder from NZ dairy companies to make infant formula.

The project has been a major boost to Pokeno and the national economy.

Norwood says it’s a project of national significance in its size and benefits to the NZ economy.

“The wages we pay, the power, gas and materials we purchase, paying for freight and handling… they all contribute back to the NZ economy.

“In dairy terms this would one of the single biggest added value projects under­taken.”

DAIRY NEWS SEPTEMBER 22, 2015

NEWS // 7

Clamps on Lochinver, Feds back decision FEDERATED FARMERS is welcoming the

Government’s decision to block a Chinese conglomerate’s bid to buy Lochinver Station.

Feds president William Rolleston says it supports positive overseas investment in New Zealand’s farming system, but it must bring benefits to the national economy.

NZ needs foreign investment, but there has to be clearly demonstrated benefit to the local and national economy, he says.

Shanghai Pengxin’s application to buy Lochinver Station is declined because the benefits to NZ are not substantial and identifiable, say ministers Paula Bennett and Louise Upston.

Rolleston says the decision reinforces the importance of changes made to the Overseas Investment Office rules in recent years.

“We now have a more thorough and robust framework for making critical decisions on foreign investment in rural land, and what we’ve seen here is ministers applying this framework as

intended.

“We need foreign investors and those involved in the sale of rural land to work harder to find ways to demonstrate economic benefit, from property they are targeting and for the broader industry.

“This might be introducing new technology to NZ or using their overseas networks to open new markets for other Kiwi businesses,” says Rolleston.

Pure 100 Farm Ltd, a subsidiary of Shanghai Pengxin, China, applied to the Overseas Investment Office (OIO) last year to buy the 13,800ha farm near Taupo for NZ$88 million.

“While we recognise and support the importance of overseas investment, the Overseas Investment Act states it is a privilege for overseas people to own sensitive NZ assets and so requires such investments to meet statutory criteria for consent,” says Associate Finance Minister Paula Bennett says.

The ministers were not satisfied there would have been substantial

benefit to NZ. While the OIO said there was a question of ‘balance’ about benefits of the would-be investment to NZ, it recommended

approving the application.

“We agreed parts of the proposed investment could [have benefitted] NZ but in our judgement of the overall balance of

evidence, the benefits [were not likely to have been] substantial and identifiable,” Land Information Minister Louise Upston says.

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OPTIMISM EXPRESSED by US President Obama on the Trans Pacific Partnership (TPP) deal is not a breakthrough but indicates the negotiation is very much alive, says Stephen Jacobi, executive director, NZ International Business Forum.

Obama said he was optimistic the trade deal could be finalised by the end of the year, despite remaining disputes over key sectors.

Jacobi told Dairy News that because of the Canadian election on October 19 they do not expect a breakthrough until the APEC leaders meet in Manila in mid-November.

“We are aware negotiators are continuing to work on the outstanding issues including motor vehicles and dairy and are still hopeful of a positive outcome for NZ.” Obama told business leaders last Wednesday: “I have confidence we can get it done, and I believe we can get it done this year.

“Trade ministers should be meeting again sometime in the next several weeks; they have the opportunity to close the deal.

“Most chapters have been completed,” he said, adding that the deal would “ensure we have a level playing field for businesses and American workers in the fastest growing region of the world.”

DAIRY NEWS SEPTEMBER 22, 2015

8 // NEWS

Bank pressure leads to farm budget reviews PETER BURKE peterb@ruralnews.co.nz

A FARM accountant says he is getting

more calls for help from dairy farmers forced to review budgets because of the lower payout.

Alastair Flett, agribusiness principal in the national accounting firm Crowe

Horwath, says pressure from banks is the trigger: they want to know how much overdraft their clients need.

Flett says dairy farmers’ budgets must now be more detailed to assure the banks they are realistic. His firm spends much more time on farmers’ budgets so as to get them to ‘own’ their budgets.

“It’s not to produce a budget from figures from the past or wherever. In

the past, things have been buoyant and there hasn’t been [quite the same insistence] on accurate budgets; but now the banks are requiring them.”

Often the focus is not so much on reviewing a budget as on initiating, in effect, a zero-budgeting exercise.

“For example, a sharemilker client in the South Island had a massive $500,000 cashflow deficit to try to

Alastair Flett

manage. They’ve had to look at every item and strategise to change the way they operate.

“They’ve gone back to the owners supporting them but still they have an $80,000 budget deficit. They are working harder and managing the budget better to make sure everything happens.”

Flett says many farmers dislike bud-

HARD TIMES FLUSH OUT COWBOYS ALASTAIR FLETT hopes the present downturn in the dairy sector will prompt a rise in farm efficiency and in the quality of business management, but he doubts it will.

“If there is a long-term downturn, yes it will happen. But if it is only short-term people will revert [to neglecting] financial management at the level required.

“Remember that most dairy

farms are significant assets and dairy farmers are millionaires by default. The problem is they are not cash-rich businesses so they require a lot of hard work.

“Most farmers are very good at hands-on, but paperwork… there are few any good at it. Farmers love farming but they’re not farming because of the paperwork.”

Flett predicts 2% of dairy farmers will go out of business

because of this downturn. Historic debt problems and poor financial planning and management will sink them.

Many farmers are in trouble now because they run their farms as an extension of their lifestyle rather than a business. Some farmers who have inherited a farm are not as sharp financially as they ought to be.

He gives a pungent critique of

how the honey and kiwifruit industries dealt with their problems.

“When the honey industry was hit by the varroa mite, the end result was it got rid of the rogue operators and cowboys out of the industry.

“The same happened in kiwifruit: it made people more conscious of their systems and processes and of not leaving things undone.”

geting; financial management is a weakness in the primary sector. He’d like to say 50% of his clients do cashflow budgets but he admits it’s fewer than that.

Dairy farmers don’t monitor and manage their budgets to the extent they should, given the asset value they are managing. In managing budgets he is often amazed at what he sees and the trends emerging. Careful monitoring allows action before a minor problem becomes a major issue.

“Remember also that farmers are price-takers. They sell product at the gate and co-operatives determine what they will be paid; they can’t influence what they will get on a dollar/kg basis.

So a farmer must be as efficient as possible inside the farmgate, to make the biggest profit before it goes to the processing plant.”

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DAIRY NEWS SEPTEMBER 22, 2015

DAIRYNZ ELECTION // 9

10 vie for DairyNZ board seats The election is NZ-wide by internet, fax, and postal voting using the STV (single transferable vote) voting method.

Voting papers will also be collected at the start of the annual general meeting on Tuesday, October 13, 2015. Votes are weighted by annual milksolids production. Voter packs were posted last week to all dairy farmer levy payers DairyNZ. The estimated number of levy payers on the electoral roll is 14,500 – all dairy farmers in NZ who supply milksolids to a dairy company. At the close of voting the total number of votes will be multiplied by the quantity of milksolids produced by each farmer.

Voting papers must be in the hands of the returning officer by 12 noon on Monday, October 12, 2015.

Elaine Cook, HAMILTON

EVERYONE STANDING for

the DairyNZ board has governance experience, farming experience and wants better returns and more accountability, says Elaine Cook.

“What sets me apart is a focus on making it easier for you and

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WOODVILLE

• 2011 - DairyNZ board member • 2011 - DIA trustee, PrimaryITO DairyIPG • 2011 - 2015 NMAC chairman, OSPRI stakeholders council • Fonterra networker • NZYF national president (2006 – 2008) • 2008 NZ Sharemilker of the Year winners • Bachelor of Natural Resource Management, Massey University.

“As your director I represent the next generation of farmers,” Allomes says. “I am committed to the future of our industry and have the drive and initiative to ensure NZ dairy farmers have the information they need to be world leaders in sustainable pasture-based production systems.”

me that dairy farming isn’t about ratios or percentages or graphs or even cows. Dairy farming is about people.”

The industry is struggling to get the people it needs. If it doesn’t get

Don’t let them all go down

Ben Allomes, AS A current DairyNZ director seeking re-election, Ben Allomes says the success of the industry lies in its people, its ability to adapt to challenges and leverage off its skills. It is vital the levy continues to be invested in collaborative research and effective extension.

DairyNZ is integral to maintaining our global leadership in pasturebased dairying systems, he says.

As a Nuffield scholar this year, Allomes travelled through the US, Canada, Ireland, Lithuania and South America on a research trip. His topic is understanding what motivates farmers to participate in onfarm or industry leadership.

With his wife Nicky, Allomes farms in Woodville, Tararua, with his four children, milking 1350 cows in a mix of 50:50 sharemilking and an equity partnership.

Achievements: • 2015 - Nuffield scholar

every NZ dairy farmer to attract and retain better people,” Cook says. “I have spent my whole life farming, and my proudest professional moment was being named NZ Sharemilker of the Year, but it has become increasingly clear to

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TO PAGE 10

DAIRY NEWS SEPTEMBER 22, 2015

10 // DAIRYNZ ELECTIONS Murray Jamieson,

Elaine Cook

HAMILTON

NOW IS the time farm-

ers need to see the value and outcome of their levies, says Murray Jamieson.

“Now is the time for strong and effective leadership: people who are lateral thinkers; who have a practical understanding of all sectors of the industry; who are innovative, collaborative, have empathy and

who connect with farmers and are not afraid to make hard decisions.

“These are attributes the DairyNZ board needs

to redefine the next two decades of dairying.”

Jamieson has worked his way up through the industry, from wages to 50:50 sharemilker, to equity partner and now farm owner.

“I am an experienced company director and have been privileged to represent the industry at home and overseas,” he says. Jamieson says he and his wife Vicky have gained

a lot from the dairy industry and want to put something back.

Experience: • 30 years farming with high and low input systems • Winner Northland Dairy Industry Awards 2011 • Finalist Ballance Environmental Farming Awards 2011 • Principal rural advisor to Lincoln University • Maori agribusiness stra-

tegic advisor for MPI • Rural advisor to Ministry of Business Innovation and Employment • Engaged by Peruvian Government to review proposed large scale dairy development in Peru • Chair, Northland College farm • Independent director Telford Farming • Kellogg rural leadership alumnus.

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FROM PAGE 9

this sorted, everything else is irrelevant, she says.

“We need people good enough and committed enough to continue what those who farmed before us began and we have continued: the development of the most efficient dairy farms on the planet.

“I will not let anyone at DairyNZ lose sight of this.

I will make sure DairyNZ attacks this problem…. That is my commitment to you.”

Experience: • 2006 NZ Sharemilker of the Year • 30 years dairy farming in Waikato and Southland • 2015 Finalist NZ Dairywoman of the Year • NZ Young Farmers director • Southland Demonstration Farm director • Southland Dairy Hub director • MBIE governance committee for two DairyNZ led research contracts (chair) • Associate director DairyNZ, 2013

Kevin Ferris, TE AWAMUTU

FUTURE PROSPERITY will be achieved by

NZ farmers being lowest cost producers, NZ milk being a preferred product and market price improvement, says Kevin Ferris.

“As the guardian of ‘NZ milk inc’, DairyNZ has an increasingly important role to play in our onfarm management systems and promoting the dairy industry strategy.”

DairyNZ needs to be focused on leadership and innovation as the guardian, provider and promoter of farming systems that reassure our markets and the NZ public, and to drive production and profitability.

“Our success depends on future generations entering the industry; they will only do so by seeing prosperity in dairying.”

Greater coordination is needed between research and education institutions linking to onfarm extension, he says. Engagement with government

and regional councils must ensure the ability to increase productivity from the pasture-based system.

Ferris has dairy farms in Waikato, King Country and Southland. He is a member Fonterra Shareholders Council representing Te Awamutu ward, a DairyNZ nominated and funded director on the board of the Southern Demonstration Farm Ltd and a DairyNZ appointed and funded director on the board of the Southern Dairy Hub general partnership.

If elected he will: • Ensure DairyNZ delivers the best return on levy • Commit to a high standard of governance • Support DairyNZ to help farmers prosper via profitability, production and farmer returns.

Steve Hines, MANGAKINO

IN 1871 eight dairy farmers had the foresight to see benefits for individual farms in pooling resources, hence they formed the Otago Co-op Cheese Company, says Steve Hines.

“Fast-forward to today and DairyNZ is a natural extension of that foresight, focused on ensuring all NZ dairy farmers, current and future, have the necessary tools and solutions for competitiveness, sustainability and ultimate success in a demanding, well informed and continually changing global marketplace.”

As a director, his focus will be ensuring levy money is wisely invested and leveraged for maximum benefit.

TO PAGE 12

How one idea fertilised an industry.

Every year, LIC’s bulls sire approximately three out of four of New Zealand’s AB calves.

That they can do this, is down to something known as Long Last® Liquid semen.

This unique development by LIC keeps the sperm viable for three

days so that it can get to over 8,000 herds around the country.

It also allows a much higher utilisation – with approximately one tenth the sperm dose of conventional frozen straws – while maintaining optimal conception rates.

It means every dairy farmer has access to the top LIC bulls and top LIC genetics, helping to improve their productivity and that of the national herd.

It’s improvement that counts.

DAIRY NEWS SEPTEMBER 22, 2015

12 // DAIRYNZ ELECTIONS Grant Wills, WALTON

GRANT WILLS farms in

Walton, Waikato, with his family and has extensive knowledge of the agriculture industry from his earlier career in research/ consultancy, through the development of the dairy business, to leadership roles in Fonterra, DairyNZ and the community.

“My passion for strong governance in the dairy industry clearly focuses

on enhancing what we have today from an economic, environmental and social perspective, to make our industry resilient for

tomorrow’s wellbeing,” he says.

Education: • Institute of Directors Certificate in Company Direction 2011 • Kellogg Rural Leaders scholar 2009 • BAgSc. Massey University 1979-82 Industry Experience: • DairyNZ associate director 2014. Understands the DairyNZ business • Fonterra Shareholders’

councillor, 2007- present. Former committee chair and leadership team. Presently financial performance committee • Fonterra governance development committee since 2011 • Member NZDCDAP • Dairy environment leaders forum • Australia/NZ Dairy cooperatives forum • Dairy farming since 1988: managing director of

700 cow Waikato dairy farm, equity partner in 700 cow Otago dairy • DairyNZ tight management focus farm 20092010 • Dairy Awards judge • Agricultural engineering advisor, Taranaki/ Manawatu 1982-87.

• Speaking engagements: Agricultural leadership tour programme visits including Kentucky, South Dakota, Germany,

We’ve been whole farm liming since 1996 and the gains that we’ve achieved in regard to both pasture and stock performance more than speak for themselves.

• Piako sharemilker winner and dairy farmer finalist • National Sustainability Road Show organiser 2013.

Community Experience: • Pohlen hospital trustee • Walton BOT chairperson.

Kevin Old, LINCOLN

KEVIN OLD is a third generation dairy farmer at Tatuanui, Waikato. After managing and 50:50 sharemilking he now owns and operates, with staff, a 94ha dairy farm and has interests in family dairy farming operations milking 1450 cows in Waikato.

Experience: • Shareholder director of the Tatua Cooperative Dairy Company • Representative on the Dairy Companies Association of NZ • Representative on the stakeholder group for operational solutions for primary industries • Senior lecturer in farm management research at Lincoln University.

“The NZ dairy industry faces challenges and substantial opportunities over the medium term.

DairyNZ is importantly positioned to assist farmers to meet these challenges and capture these opportunities,” says Old. He says he has sound understanding and experience of governance and has strengths in strategy

How did Dave get more for less?

development, analysis, research and oversight.

He says he understands and interacts well with farmers and has a deep understanding of their requirements. “I am passionate about the NZ dairy industry. I have common sense and a strong sense of ethics. I have the energy, enthusiasm and commitment to make a positive contribution to DairyNZ.” Qualifications and awards: • PhD, governance of agricultural companies • MBA • BMS, major subjects accounting and finance and business policy • Nuffield scholarship • Kellogg Rural Leadership Programme.

Steve Hines FROM PAGE 10

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Industry Achievements: • Waikato BFEA Supreme winner 2013

Priorities: • Creating cohesiveness and collaboration with dairy processors so farms are positioned to meet market needs without duplication of services • Ensuring NZ holds its position as a respected, high quality, safe, sustainable dairy farming nation with long term profitability • Clear communication and engagement with industry participants, wider stakeholders and communities.

Dairying has been Hines’ focus for the last 22 years building Doneve Agriculture to a multi-faceted operator as either owner, 50:50 or lower-order sharemilker on five properties with 10 staff.

Experience includes: • Managing director, Doneve Agriculture • Area manager, Fonterra Milk Supply • Management cadet, Fletcher Steel • Chairperson, Whakamaru School board of trustees • ANZ Young Farmer contest, national committee • Fonterra networker • Chair, sharemilker section Rotorua/Taupo Federated Farmers • Chair, Grand Final ANZ Young Farmer contest • Judge, Dairy Industry Awards

DAIRY NEWS SEPTEMBER 22, 2015

DAIRYNZ ELECTIONS // 13 Michelle Wilson, WAIHI

including: Experience • Owner / director farming businesses in Bay of Plenty and Southland 2002 - 2015 • Chair / trustee Dairy Women’s Network 2010 - 2014 • Executive chair Dairy

Women’s Network 2013 - 2014 • Chair Waiau Health Trust 2011 - 2014 • Trustee Tuatapere Community Medical Trust 2011 - 2014 • Member of DairyNZ human capability leadership team - 2013 • Represented New Zealand dairy industry, APEC Women in Leadership Forum, Beijing, China, 2013 • Finalist in the Institute of Directors’ Aspiring Director Award 2013 • Institute of Directors Certificate in Company

Direction 2011 • Kellogg Rural Leadership graduate 2009 • Sharemilker on dairy farms Hauraki Plains and Waikato 1993 – 2002.

“DairyNZ has a pivotal role to play in supporting NZ dairy farmers through the current period of uncertainty,” Wilson says.

“I will bring excellent analytical and interpersonal skills to the DairyNZ boardroom, and a clear strategic focus to support the delivery of the dairy industry strategy Making Dairy Farming Work for Everyone.”

4. Advocacy and influence.

“It is imperative DairyNZ responds to farmer needs, while constantly working towards addressing challenges such as emission targets, water quality/availability and the impacts of a growing industry, always

with profitability and competitiveness at the forefront,” he says.

Spaans says DairyNZ is guided by the industry strategy which highlights the issues confronting us and the need to influence a wide range of stakeholders in industry, government and the communities.

He says the pace of industry change has seldom slowed throughout his 30 years farming.

“During my seven years on the DairyNZ board I have used my skills, experience and foresight in numerous industry gov-

ernance positions to effectively help lead us into a confident future.”

Current positions: Director • Fonterra • ASB Bank Ltd • Shoof International Ltd. Previous experience: • Director • NZAEL • OSPRI. Chairman • Waikato Innovation Park Ltd, Animal Breeding Services Ltd. Professional • Graduate Diploma in Finance • Chartered Member, NZ Institute of Directors.

MICHELLE WILSON

has been a dairy farmer for the past 24 years, operating, with her husband, large and small herd operations throughout NZ. The former chair, trustee and executive chair of the Dairy Womens Network, she says she has an excellent understanding of the challenges faced by dairy farmers nationwide. She has extensive governance, professional development and management experience in a range of agribusiness and community organisations

Michael Spaans, TE AROHA

THE HIGHS and lows

of our industry have never been more pronounced than today, says Michael Spaans.

“The challenges we all face, be they profitability, the environment or staff management, require us to be more proactive, productive and mindful.”

In today’s environment farmers need from DairyNZ: 1. Solid research 2. Practical, sound advice 3. Useful tools and templates

Greg Maughan, MARTON

FROM A town back-

ground, Greg Maughan at age 13 started working on a dairy farm on weekends and school holidays and progressed through farm management and sharemilking to farm ownership.

Notable activities outside the farmgate include: • The NZ Dairy Industry Awards. He has been a past chair and national judge and over the past five years has run the Dairy Trainee of the Year study tour for 11 regional finalists • The Fonterra Shareholders Council 20042008

• Young Farmers and Federated Farmers to a national level.

“I have wide understanding of the industry from the farm through to governance level and I have the skills and more than enough ‘skin in the game’ to be an effective director of DairyNZ,” Maughan says. “In these challenging times we need to focus on things that will deliver good outcomes for our farm-

ers and the industry.”

These are, he says: • Focus on the people in the industry, especially our younger farmers • A three-way approach to sustainability: financial, generational and environmental • Ensuring the levy is targeted to what can make the biggest impact on farmer profits. This may mean a change in priorities in the current strategic plan • Ensuring the training and education funding our industry provides is providing the people farmers want and need.

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DAIRY NEWS SEPTEMBER 22, 2015

14 // NEWS

UHT dairy products in the pipeline MOVES ARE underway

Brendan Haigh, AgResearch

to develop whole foodbased dairy beverages for Asia.

Maori-owned dairy company Miraka is joining

forces with AgResearch and Plant & Food Research to develop shelf-stable, whole food-based beverages with appeal to highvalue segments of Asian markets.

Miraka chief executive Richard Wyeth sees this as a further step in developing value added products.

“Our strategy has been to add more value to our milk and this project gives

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impetus to Miraka achieving this goal with partners who share the same values.”

AgResearch science team leader Dr Brendan Haigh says they expect to develop new scientific knowledge and technology in manufacturing dairybased UHT milk products containing plant or vegetable materials.

“This knowledge then provides the basis for developing natural shelfstable products that taste great and retain the natural health benefits the dairy and plant material ingredients bring. There is strong consumer interest in whole food-based products providing balanced nutrition with minimal processing.”

The project has gained funding in the recently announced Ministry of Business, Innovation and Employment 2015 science investment round.

New Zealand is well placed to market and profit from innovative products in the hybrid UHT category, Haigh says.

Benefits are expected

onfarm and off-farm in the dairy, arable, and horticulture sectors.

“The project team’s role is to find effective combinations of plantbased ingredients with fresh milk to achieve the stability and functionality required, without adding refined stabilisers, emulsifiers or thickeners. “[But] we need to better understand how these diverse ingredients interact in hybrid solutions, what needs to be done to overcome stability and compatibility issues, then finally how to manufacture these products on a large scale with strong customer appeal.

“Developing new dairy foods with consumer appeal that also deliver the [health] characteristics of plant ingredients is a technical challenge,” says Dr Lee Huffman from Plant & Food Research.

“The strength of this project is the combined expertise of AgResearch and Plant & Food Research along with the processing and market knowledge of Miraka.”

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SOIL TESTS should be the first step for farmers trying to manage budgets while maintaining pasture productivity, says fertiliser co-op Ballance.

Ballance science extension manager Ian Tarbotton says keeping soils fertile is good insurance with pasture an essential feed source, but gut instinct or experience won’t lead to good decisions on what to spend or save.

“Soil tests will show you what you have to work with and they are the best guide to decisions on a fertiliser budget.”

Tarbotton points to three main nutrients for soil fertility: phosphorus, sulphur and potassium; how they behave in soil provides a clue for application decisions.

“Sulphur is mobile in the soil, so usually requires annual applications. Potassium can leach too, notably on coarse textured soils. Phosphorus gets stored in the soil, so depending on reserves it may be possible to defer phosphate fertiliser application. Some nutrients, such as magnesium and calcium, could be supplied directly to stock as a short-term measure.”

Phosphorus is a key driver of production so, if possible, levels should be kept in the optimum range and testing will confirm whether levels need attention.

If sedimentary soil is above the optimum Olsen P range of more than 40, then cutting out phosphate maintenance for a year will not affect production. If the range is more than 30, then half maintenance of phosphate will not lead to noticeable impacts.

DAIRY NEWS SEPTEMBER 22, 2015

NEWS // 15

DWN pares back annual meet Network will curtail its next annual conference because the industry and its members are hurting.

The network had planned to hold its 2016 conference in Wellington for two full days in May, “but this would have required more people from the North Island to fly than if we were to hold it in a central North Island location,” says DWN chief executive Zelda de Villiers.

“And two nights of hotel accommodation and three days away from the farm is a luxury not many of our members can afford in the current climate, so we have instead decided to hold a smaller conference in Hamilton in May 2016.”

Historically, the DWN conference has been the network’s top annual

event, alternating between the North and South Island to suit members nationwide.

“It would be easy to say this is our big annual event and this is the way we like to do it, and if people want to come then they will find a way,” says de Villiers.

“But we know the harsh reality many dairy farmers are facing at the moment, and that’s likely to remain for the foreseeable future.

Dairy Women’s Network prides itself on being a connected and supportive organisation, so we needed to be receptive to what’s going on out there and pare the conference back next year so as not to put any more pressure on an industry already bursting at the seams.”

The shorter two halfday event will make reg-

Finance plan for Hereford bull sales TAINUI GROUP Holdings’ annual Hangawera Sta-

tion Hereford sale, one of the largest of its kind in the North Island, will be held on October 5.

In a first for TGH, a sale will also be held at the Taupo saleyards on October 12.

TGH rural operations manager Ian Mathieson says all the bulls have been tested and there are finance plans available for buyers. From the Hangawera sale the firm will deliver the bulls free anywhere in the country.

“Obviously it’s a tough season for a lot of farmers but we’ve worked hard with our selling agents to make strong finance plans available for buyers.”

PGG Wrightson and RD1 Livestock are agents for the Hangawera Station sale and PGG Wrightson and Central Livestock for Taupo.

Mathieson expects about 150 bulls at the Hangawera Station sale and up to 50 at Taupo.

The Hereford bulls on offer are of mixed age, and the herds consist of 18 to 30 month-olds. All bulls are pure bred, undergo fertility testing, and are double vaccinated and tested for bovine viral diarrhoea and enzootic bovine leukosis prior to being put up for sale.

“We supply a guaranteed animal,” Mathieson says.

“We test all bulls to make sure they’re fertile, fit and ready for the job.”

Mathieson is a station manager, farm developer and Hereford trader. A Hereford bull from his herd won the reserve champion category at the 2012 Beef Expo, Fielding.

istration cheaper and operating costs lower, “and instead of the usual three keynote speakers there will be two, and only half the workshops. This

is the best decision for our members,” says de Villiers.

Thirty trade stand spaces will be available and the event’s quality will not be compromised, she

says.

The 2016 DWN conference will be held at Claudelands Event Centre in Hamilton on May 4 and 5.

Zelda de Villiers.

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DAIRY NEWS SEPTEMBER 22, 2015

16 // WORLD New Australian Prime Minister Malcolm Turnbull and deputy PM Julie Bishop.

Oz farmers welcome ‘formidable team’ AUSTRALIAN FARMERS say Prime Minister

Malcolm Turnbull’s credentials will support the enormous potential of their agriculture sector.

In a statement, the National Farmers Fed-

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eration welcomed Turnbull’s election after a party room coup. Former Prime Minister Tony Abbott lost 54-44 in a leadership poll called by Turnbull.

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3/02/15 4:54 pm

Bishop will make a formidable team.

“Together, their business and international policy credentials will form a strong foundation for the Australian economy, supporting the enormous potential of our agriculture sector,” the NFF says.

“We now live in a world of great opportunity, a global economy signified by endless technology and innovation. Australian agriculture has an important role to play in shaping a new vision for an agile and adaptive economy.

“Australia’s clean, safe and high quality produce is in demand around the world. Our unequalled proximity to a growing Asian middle class, coupled with recent strides in market access and digital infrastructure, position agriculture as a significant growth sector in an otherwise fragile economy.”

The NFF notes that farm output is predicted to rise 8% this financial year, to a record A$57.1 billion.

We have the opportunity to cement a firm economic footing with one of the world’s largest trading nations, it says.

“Building consensus on the China FTA must be a priority, so that rural and regional Australia can capitalise on the enormous potential ahead.”

The NFF pays tribute to Abbott for his commitment to public life and leadership over the past two years.

“He has played an important role in shaping the future of our nation.

We look forward to constructive engagement with the new government on the issues which matter most to Australian farmers. A modern Australia, with a strong rural voice, will enhance our competitiveness on the global stage.”

Meanwhile the junior Coalition partner in Turnbull’s Government, the National Party, has secured responsibility for water policy and support for competition law reform in a new coalition agreement.

The Nationals have

long coveted the water portfolio, which has been held by Liberal members.

It will be brought under the agriculture portfolio.

Currently, the parliamentary secretary for the environment, Bob Baldwin, has responsibility for water policy, including implementation of the Murray-Darling Basin Plan.

Agriculture Minister Barnaby Joyce was the coalition government’s Murray-Darling spokesman before the 2013 election, however his Liberal colleague Simon Birmingham held ultimate responsibility for the basin plan at that time.

The Nationals claim the agreement also includes support for reform of section 46 of the Competition and Consumer Act. The Government is currently considering whether to introduce an ‘effects test’ that would protect small business against the misuse of market power by dominant players, like big supermarkets. The reform was a recommendation of the major Harper review of competition law.

Nationals leader Warren Truss says the coalition agreement also includes a commitment to further reduce mobile phone and television reception black spots.

But when asked how much money would be allocated to achieving that, and for how long, Truss says, “we don’t put dollar figures into an agreement of this nature”. “What we’re doing is talking about the policy direction we intend to take.”

The agreement also contains an unspecified commitment to a “regional jobs recovery programme in areas of high youth unemployment”, and to financially assist stay-at-home parents with children aged up to one year. It’s not clear how much money will be available, or which areas will be targeted.

The two parties have confirmed a same-sex marriage referendum during the next term of government.

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DAIRY NEWS SEPTEMBER 22, 2015

18 // OPINION RUMINATING

EDITORIAL

Better stump up help now

MILKING IT...

Overplaying the China peril?

JOHN MCCARTHY, past president of the ginger group Meat Industry Excellence (MIE) recently gave Winston Peters a run for his money by playing the ‘yellow peril’ card in reference to Silver Fern Farms’ capital raising. ”Will our killing sheets be in Mandarin? Silver Fern Farms and the family silver” was the headline of his media release. He stressed “this is not xenophobia” -a common tactic used by Winston and others who like to play the race card to promote fear.

McCarthy was pushing for the meat industry merger MIE has been on about for a while and he made some valid points about fixing the industry and about protecting regional New Zealand’s economic self-determination. But why use the race card to make the point?

China is a key customer for our primary produce.

If we’re happy to sell to them, let’s refrain from the racial slights.

Too busy to notice

THIS YEAR’S Fonterra board elections are not attracting candidates; farmers whose heads are down while tackling tough times have little appetite for such a contest.

Does this mean the farmers are happy with the way Fonterra is running?

Nominations close at the end of this week.

Sorry tale of teats

MPI IS investigating reports a Te Aroha farm worker cut the teats off about 20 milking cows, after argybargy with his employer.

Gordon Road farm owner David Burgess says it happened almost two years ago, and his calls for action then fell on deaf ears.

Now somebody has complained to MPI after hearing of his plight, hoping the worker will be held accountable.

Burgess says he’s glad the matter’s at last being investigated.

Cartons consigned to history

MILK CARTONS are on the way out, as consumers snub them in favour of plastic bottles.

Goodman Fielder confirms the one-litre cartons have gone.

“This product has been deleted from our range due to low consumer demand,” it says.

Not all consumers are happy with this, especially those uncomfortable with milk in plastic bottles.

THIS SEASON threw up a big challenge for dairy farmers in the low payout, but all hoped the weather might have been kind.

It has been in the Far North, but in the lower North Island, in Southland and on the West Coast, especially, nature has dealt a cruel blow.

Southland’s problem took root a year ago as drought in Otago and Canterbury caused the farmers there to churn through their locally produced supplementary feed. Southland has since suffered wet day after wet day and merciless cold -- a lifestyle anything but pleasant.

West Coasters, well accustomed to rain, have watched it pour down, on and on, except for Karamea in region’s far north. To add to the woes even the whitebait aren’t running.

Southland and West Coast farmers are seriously struggling and stress levels are very high. Some farmers are known to be not coping at all well. The wet weather has forced them to shift stock off pastures to avoid pugging and to spend extra money on supplementary feed -- if they can buy it. Debt levels are rising by the day.

Animal health is also a concern; in very wet weather it’s hard to get animals onto pasture without them damaging it. Issues arise with the standard practice of grazing cows on pasture for a short time each day, then shifting them somewhere else. Long spells on concrete give them sore legs and feet; sore feet can lead to lameness.

To make matters worse, farmers on the West Coast are living in fear of an El Nino summer, and there are concerns that the normal October rains will kick in and compound the problem. Pasture damage will be a genuine threat and fear over the next two to three months.

Unless Southland and the West Coast get a warm dry spell soon the dairy farmers there could be in real trouble. Natural farmer resilience is expected to carry most through it, but a low payout and bad weather sorely tests the resolve of all.

The Government had best ready itself; better to stump up help now to mitigate a problem than deal with a disaster. The farmers’ plight is precarious; they need all the support and help we can give them.

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

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

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DAIRY NEWS SEPTEMBER 22, 2015

OPINION // 19

Time to accept all the offered help CHRIS LEWIS

MANY DAIRY farm-

ers are discussing the virtues of Fonterra’s loan for sharemilkers, and the consensus seems to be to see it as a last resort.

A wise dairy farmer should have done a full cashflow forecast for the season by now. Meet with your farm owner if you are worried about your finances; discuss the issue and let him go away and think about it. To resolve these issues may take a few meetings so be patient.

Some farm owners have put their lower order sharemilkers on wages, some have given top-ups, with agreement to square up at the end of season, and others have gone on contract. In other cases, sharemilkers have walked off-farm.

I milk 1100 plus cows; I can’t do it by myself, so I value and respect my staff as do most farm owners.

Communication is key and seeking help is most important. I’ve had my farm advisor, accountant, banker and dad assist me with advice on budgets and strategy and if required reset our goals to stay in business.

Since Fonterra released its estimated payout for the season, the GDT has risen and the US dollar has dropped, so there is some hope of improvement.

In recent weeks, I’ve attended many meetings discussing the sharemilking situation, the low payout and its effects on financial viability. Waikato Federated Farmers, DairyNZ, Dairy Women’s Network, Fonterra (representing dairy companies) and the federation’s sharemilker executives have discussed what can be done to support sharemilkers.

Sharemilkers need to come forward for help, but not all will. Federated Farmers can help; we can’t solve the financial headache or the big overdraft, but we can help put plans in place.

The support group includes myself, Craig Littin and Ben Moore from Waikato Federated Farmers, Dairy NZ’s Angie Fisher and Wade Bell, Sarah Wood from Fonterra and Melissa Sinton from the Dairy Women’s Network.

Federated Farmers has also teamed up with KPMG to run seminars on financial awareness, starting in Waikato in the first week of October. You can find employment and legal advice on the Federated Farmers website.

The sharemilkers’ and sharemilkers employers’ sections have also been advising members on good communications with all parties. Our territory managers and 0800 team have taken a lot of calls and referred people on to get

Workplace safety is for everyone KATIE MILNE

THE HEALTH and Safety Reform Bill

Chris Lewis, Federated Farmers Waikato president.

the right advice.

The Dairy Women’s Network is offering support, training and coaching in budgeting from October. Fonterra has a support package of loans, deferred payments and bull payment plans.

DairyNZ has dedicated a web page to farm owners and variable order sharemilkers, guiding farmers to organisations offering help. They also running a ‘tight times’ campaign and have a checklist for sharemilkers.

Rural accountants offer free

budgeting and planning sessions around the country. Register on the webpage, www.dairynz.co.nz/ vosm.

Dairy Connect is a mentor programme linking farmers to one another to share experiences and advice. The support farmers who offer their time and experience are a good sounding board for anyone needing confidence in their decisions or a new perspective.

• Chris Lewis is Waikato Federated Farmers provincial president.

got lots of media coverage about what does, and does not, constitute a highrisk industry.

Because most farming falls on the low-risk side, many people seem to have rushed to a judgement that farmers are excluded from these reforms. This is simply not the case.

The reforms are designed to improve the safety of every industry and workplace – including farms.

Also, the bill passed by Parliament is welcomed by Federated Farmers as further help to our members to address the high level of workplace incidents and fatalities on farms.

Farmers know their performance is not good enough. They and Federated Farmers accept there is a problem, and the changes being brought about by the Health & Safety Reform Bill will continue to address this.

Federated Farmers’ focus to date has been on gaining acceptance by the sector of its poor track record and raising awareness of the key risks on New Zealand farms. We find it very effective to discuss the circumstances and causes of safety mishaps in the sector.

And we have teamed up with WorkSafeNZ and industry associations to identify and share best practice safety management.

Most farming activities fall outside the classification of high risk, so such businesses do not need an employee safety representative if they have fewer than 20 employees. But this does not

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This legislation is intended to support all industries to provide a safer environment for all workers. It strengthens the current regulatory framework in a number of ways and will incentivise everyone able to bring influence to bear on farmers over the risks faced by workers.

For farmers, that means a legal obligation to manage the risks within their control for all contractors and staff. The application of legal duties has also been expanded to include any person who holds a governance position in a business -- a partner, trustee or director.

In many cases that will mean farmers’ family members, and farm owners.

All this is backed by much higher maximum fines and strengthened regulatory oversight, whether you’re working in a high-risk industry or not.

These are not small or insignificant implications for farmers, nor are they the only things being done to make farms safer.

• Katie Milne is Federated Farmers board member.

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mean the reform bill will not force further changes on farms.

Its reforms are much broader than that.

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DAIRY NEWS SEPTEMBER 22, 2015

20 // AGRIBUSINESS

Powder plant triples yield PETER BURKE peterb@ruralnews.co.nz

FONTERRA SAYS its $231 million

upgrade to its dairy processing plant at Pahiatua in the Tararua district will give the company more flexibility in the products it can produce at other plants.

A new drier commissioned at the plant enables product at Pahiatua to effectively triple to 3.8 million litres daily.

Fonterra’s managing director of global operations, Robert Spurway, says the Pahiatua plant will keep producing whole milk powder (WMP) while new value add products are made at other plants.

“The milk for this plant comes from the local region. If you were to draw a circle it’s about a 70km radius from Wellington right up the East Coast to Wairoa. This plant has reduced the amount of milk we have to send through

to the Whareroa plant in Taranaki, and most importantly it’s giving us more choices about what we make through the peak of the season at other plants; we haven’t always been able to [do that] in the past.”

Spurway says the Pahiatua plant was built mostly for milk already being supplied to the co-op, but they were under pressure at the peak. Now the increased capacity in the lower North Island will enable Fonterra to optimise the value of farmers’ milk and add the most value year-long.

“On top of that these plants are amongst the most efficient in the world so as well as bringing on extra capacity that meets our strategic requirements we reduce our cost base and become more efficient through these sorts of expansions,” he says.

Spurway says Fonterra is pressing on with plants that produce added value products -- UHT products at Waitoa, mozzarella at Clandeboye, cream cheese

at Te Rapa and sliced cheese at Eltham.

The Pahiatua plant is described by Spurway as close to a replica of its new plant at Darfield, Canterbury. The co-op has learned from building that facility; in fact Pahiatua was built slightly faster and slightly under budget as a result.

“It has slightly different design aspects at the foundation level -- isolators because of earthquake risk in this region relative to Canterbury. But above the ground the design and technology are almost identical to Darfield.

“The people building these plants and, most importantly, commissioning and running them are getting better at it each time. So far this plant start-up has exceeded our expectations.”

The reason for the earthquake strengthening at Pahiatua surprises many people, Spurway says, noting that 18 months ago a big earthquake struck and damaged nearby Ekatahuna.

The new Pahiatua plant is now processing 3.8 million litres of milk per day,

Whole milk powder produced at Fonterra’s Pahiatua plant for Cuba, Sri Lanka and Venezuela.

up from just 1.4 million a few months ago. It operates 24/7 and every hour 15.5 tonnes of WMP are produced for sale in such markets as Cuba, Sri Lanka and Venezuela.

New water recycling technology is making a difference, says Bill Boakes, operations manager.

“The water we are taking out of the milk here is cleaned and used as potable water in the process. That’s the first time it’s been done in a dairy plant in

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A waste water plant treats any water that cannot be recycled. This is then sprayed onto three nearby Fonterra farms where nitrogen and other loadings are monitored.

One hundred and eighty staff now work at Pahiatua, of whom 45 have jobs as a direct result of the upgraded. The new plant took about 800,000 hours to build.

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DAIRY NEWS SEPTEMBER 22, 2015

AGRIBUSINESS // 21

More Brazilians want co-op’s key products LAURA MCQUILLAN

AMID BRAZIL’S polit-

ical and economic turmoil, onerous bureaucracy and almost non-existent market for fresh milk it’s hard to see the appeal for Fonterra.

But the co-op’s managing director for Latin America, Alex Turnbull, believes all those hurdles can be put to its advantage.

After leading Fonterra’s foray into the Brazilian market 20 years ago, Turnbull was redeployed to Sao Paulo in January to oversee operations in Brazil, Argentina, Chile, Columbia, Ecuador, Venezuela, Mexico and the Caribbean.

His return signals Fonterra’s new strategic focus on emerging markets, which saw a ‘realignment’ of its Brazilian joint venture with Nestle last year, producing 200,000 tonnes of yoghurt and drinking yoghurt, fermented milks, and dairy desserts under the Dairy Partners Americas banner.

Since Turnbull first arrived, Brazil’s middleclass consumer market has grown enormously, increasing by 40 million since 2005.

Despite dodging the global financial crisis, the once-booming BRIC state now faces fresh challenges: falling commodity prices have weakened the currency and curtailed growth, the president’s approval ratings have fallen to single digits as a corruption scandal rattles the highest offices, and decades of red tape continue to hinder business.

“It’s going to be a difficult two or three years, that’s for sure,” Turnbull says.

But with a relatively low market share, there’s plenty of room for the co-op to explore new possibilities.

“It’s fair to say Fonterra’s focus on really being good at a few things means that in spite of the difficult economy, we can still do great stuff in growing share and improving competitiveness.”

White gold isn’t part of that strategy: the market is dominated by UHT and milk powder, due largely to the country’s sheer size and travelling distances.

Fresh milk is difficult to find and sells for at least double the per-litre price of UHT. “Is there an opportunity for Fonterra’s fresh milk? Yes, there are opportunities, but only a very small percentage of the market buys it,” Turnbull says.

“If you’re going to be in consumer business in Brazil, you need a big-scale business. UHT is the predominant format and it will continue to dominate.”

Another quirk of the market is a high level of lactose-intolerance, affecting about 43% of the population; but again, Turnbull sees further opportunity, given the successful recent launch of Zerolacto milk

by Fonterra’s Chilean subsidiary, Soprole.

“When you do lactosefree products, you end up with a slightly sweeter product than normal milk, and because Brazilians have a sweet tooth, it’s a

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“It serves a bigger need than just lactose-intolerance [and] people buy it,

which is good, because it has a better return than normal milk.”

Unlike other companies in Brazil “still enjoying the fruits of the last 10 years,” Fonterra is driving

efficiencies while keeping an ear out for growth opportunities in the region, “keeping the businesses running well [and] giving a return our farmers can be proud of.”

Fonterra Latin America managing director Alex Turnbull.

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DAIRY NEWS SEPTEMBER 22, 2015

22 // MANAGEMENT

Field trip has iwi farmers thinking outside the square A FARMING tour demonstrating

practical, hands-on practices and skills proved beneficial for a group from Northland iwi.

The tour highlighted the potential of Maori to develop their farms to support the rural and Maori economies.

Forty people from seven Northland iwi visited farming enterprises in the mid-lower North Island recently to see improvements arising from collaboration and better use of resources.

The genesis for the field trip was in work by Murray Jamieson, a farmer and Maori agribusiness strategic advisor for the Ministry for Primary Industries (MPI).

He was mentoring Northland iwi and at the time of the tour was farming there; he has since relocated to Waikato.

“Like all farmers, it’s easier to adopt new practices once you’ve seen them working in the flesh, so I proposed the objective to MPI who agreed on its merit,” Jamieson says.

“Northland Maori agribusiness iwi and trusts were invited to send three influencers or key decisionmakers; we got maximum attendance -- 40 people plus sponsors.”

The field trip was sponsored by MPI, Pioneer, Beef + Lamb NZ, PGG Wrightson, Silver Fern Farms, ASB and Cervus Equipment. It was intended to help achieve MPI’s Maori agribusiness aim to help Maori to sustainably increase the productivity of their assets.

The first stop on the four-day trip was at Palmerston North to visit an intensive beef finishing feedlot with 5000 steers and heifers on 200ha of sand.

“The animals were fed a combination of maize silage, fodder beet, palm kernel and straw. Two staff are employed fulltime to feed and weigh the animals once a week. The weight gain is about 3kg/day/animal. This was a great start, stimulating a lot of questions; it got the delegates thinking out-

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“Next stop was Waitatapia Station where we were greeted by Hew Dalrymple, Pahia Turia (Ngati Apa) and Mavis Mullins (Atihau) who talked about the due diligence done to enable their purchase of Flock House farm from AgResearch.”

The delegation visited Te Hou (ex Flock House Farm) to see the new centre pivot irrigation enabled by GPS laser leveling to contour the sand

Murray Jamieson (right) representing MPI and Kohe Henare, Te Komiti Trust, inspect fodder beet.

dunes, feedlot and effluent system.

Day two saw the group visit a property which fattens steers on fodder beet over winter to get a higher premium offered by Silver Fern Farms, and then to Otiwiti Station which trains seven-ten young people on the land each year.

“Otiwiti Station is a traditional sheep and beef unit with Romney sheep and Hereford Angus cross cows. They also crop class 6 land for winter grazing, achieving good weight gains. There each visitor had a chance to experience technology that can improve land pro-

ductivity -- operating a self-steer GPS controlled tractor.”

On day three the group travelled to the central North Island, visiting Waituhi Kuratau Farm Trust’s sheep milking operation then touring the Miraka milk processing plant.

The tour ended at the National Fieldays, Hamilton, including attendance at the ASB breakfast to hear rural economist Nathan Penny.

Jamieson says the field trip formula was a success: the participants said they came home with new ideas for better running their tribal land.

DAIRY NEWS SEPTEMBER 22, 2015

MANAGEMENT // 23

Low grass growth hits milk yield THE SOUTHLAND

winter-spring, with prolonged incessant rain, cold wind and low sunshine hours, have depressed grass growth well below normal and made crop planting nearly impossible, comments Elanco, the maker of Rumensin.

The company quotes Bruce Dinnington, Dacre, as saying he has not seen such a tough spring for many years. “It has not really dried out since late May, with only a few brief periods of reasonable weather.”

During a life of farming in Southland he has experienced enough El Nino conditions to know this is probably what the region will face this season – wet, cold conditions in the south and increasingly drier conditions in the east.

“We had a run of them through the 1980s and 90s, and if you were around then to see them you don’t easily forget how hard things can get.”

Those conditions require the flexibility to adjust stocking rates when things get tight, to help reduce the stress such conditions bring, versus having a highly stocked, tightly grazed milking platform that offers few alternatives than to increase the supplementary feed inputs or reduce herd numbers.

Dinnington’s 360ha farm milks 580 Friesians, and he is aiming at a selfcontained stocking platform that also runs all the young stock for the herd.

It is a more traditional, lower intensity option on an area some farmers may choose to stock as high as 1000.

“We

have aimed to move more towards being selfcontained. The costs of wintering cows off in Southland now is getting high -- as much as $35-$38/ head/week -- and it’s getting harder to get good graziers who will do the job right. Being self-contained gives you so many more options, particularly in a year like this.”

The herd is wintered in a tunnel-house wintering shed with concrete feed pad, enabling it to be fully wintered on baleage supplement.

He aims to avoid cropping and the inherent pressure that puts on stocking rate with land out for the better part of the year; instead he opts for grass-grass pasture renewal.

The one compromise he makes to boost the herd’s energy intake is supplementing their diet with grain pellets through the lactation period.

Nineteen years ago Dinnington started adding Rumensin powder to the herd’s grain supplement to help maximise the energy value of the feed.

He then started using liquid Rumensin through the water lines, partly to reduce the risk of bloat.

“Ever since I have come back here and used Rumensin, and now Rumensin Max liquid through the water lines, I have only ever lost one cow, and we have never drenched for bloat.”

Given the high producing nature of his herd, with an average of 580kgMS/ cow/year, he says he needs his herd “running on all cylinders”.

While Rumensin Max may commonly be used for

FARM DETAILS ■■

Farm owner: Bruce Dinnington

■■

Location: Dacre, Southland

■■

Farm size: 360ha

■■

Herd size: 580 Friesians

■■

Average per head production: 565kgMS/ cow/year

■■

System: All grass plus grain pellets, Rumensin Max through water lines. Rumensin used to reduce bloat risk on a predominantly allgrass system, lower ketosis risk and improve feed conversion for milking cows and young stock.

lactating cows, Dinnington puts it through the water lines all year, ensuring dry cows and young stock get it all year.

“I always had the feeling that Rumensin would be beneficial to young

stock too, and that is the case.

“We get better feed to weight conversion, and overall better looking stock by using it.” @rural_news facebook.com/ruralnews

Bruce Dinnington, Southland, says it has been a tough start to spring.

DAIRY NEWS SEPTEMBER 22, 2015

24 // MANAGEMENT

Fertilise wisely for best effect BALA TIKKISETTY

THE SPRING months, as soils warm up, are when the work of fertilising begins.

For farmers, particularly in dairying during the current tough times, a key goal is to get the best bang for buck out of fertiliser while protecting the environment.

Good advice from fertiliser reps, consultants and regional council staff will

help address what can be some pretty technical judgments.

Soils are a dynamic mixture of minerals, organic residues and living micro and macro organisms, all supporting farm production and providing eco-system services.

Due to the risks involved in applying fertiliser, I recommend all farmers have a nutrient budget and a nutrient management plan, and discuss their situation with their

fertiliser rep or consultant.

Waikato region requires farmers have a budget and a plan if their nitrogen (N) use exceeds 60kg/ha/year.

Nutrient budgeting is widely accepted as the appropriate first step in managing nutrient use and it’s also a good starting point for evaluating the environmental impact of farm management practices.

Overseer is a computer decision support model which provides advice on

nutrient management and greenhouse gas emissions.

It predicts what happens to the nutrients brought onto a farm as fertilisers and supplementary feed in the same way a financial budget can track money.

The latest version of Overseer (version 6.2.0) can be downloaded from http://www.overseer.org.nz and fertiliser reps or consultants can run it or help farmers do this.

In Waikato recent soil quality monitoring results

In the current challenging times, farmers are urged to get the best bang for buck out of fertiliser.

reveal that soil compaction and high fertility remain problematic on dairy and some drystock sites. Nutrient budgets should therefore start with soil testing to identify your current nutrient status. The need for fertiliser may be less than expected.

Plants need nitrogen

(N) for healthy leaf growth.

But N is an extremely mobile nutrient. If more nitrogenous fertiliser is applied than plants can take up most of the unused nitrogen ends up leaching down through the soil into groundwater. Sometimes N will also be lost to waterways as runoff and some is always released back into the air as gas.

N leaching can be cut by: ■■ timing fertiliser application to avoid periods when plant uptake of N will be low, such as when soils are saturated, during heavy rain, cold periods and times of low soil temperatures ■■ applying N fertiliser in small split dressings (as many split doses as possible) ■■ irrigating farm dairy effluent to a large enough area to optimise its nutrient value ■■ adjusting fertiliser policy for effluent irrigated areas to account for the nutrient value of effluent ■■ using fenced wetlands as nutrient traps.

Phosphorus (P) behaves differently from N because it binds with the soil and only dissolves slowly in water over time. This

means it doesn’t readily leach to groundwater. But it can damage the health of waterways through soil erosion and surface runoff into water.

Farmers can reduce the amount of P runoff by keeping Olsen P to optimum agronomic levels.

Other tips include: ■■ following the NZ Fertiliser Manufacturers’ Research Association code of practice for nutrient management ■■ applying fertiliser when the grass is growing ■■ leaving a grassed buffer strip between paddock and waterway – the strip filters the phosphorus before the runoff reaches the water ■■ controlling runoff from tracks, races, feed and standoff pads so that it can’t run directly into water.

A clear assessment of fertiliser requirements will improve economic returns from pasture and help avoid contamination of ground and surface water with nutrients, particularly nitrogen and phosphorus.

• Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council. Email bala.tikkisetty@ waikatoregion.govt.nz or tel.

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DAIRY NEWS SEPTEMBER 22, 2015

MANAGEMENT // 25

Bee-friendly plants will keep population buzzing FARM ‘BEE feed’ plant-

ings can help the rural bee population to thrive, say researchers and advisers in the Trees for Bees scheme.

Launched by Federated Farmers in 2009, the scheme is now championing Bee Aware Month, themed ‘Feed the Bees’.

It is aimed at encouraging farmers and rural landholders to help bees eat better by carefully selecting trees and plants to serve multiple purposes on their land.

Trees for Bees is demonstrating this with plantings nationwide on 15 demonstration farms including sheep and beef, arable and vineyards.

Planting advisor Dr Angus McPherson says the results are encouraging given that people worldwide are recognising the problems arising from lack of bee feed.

“Where we’ve planted larger grade specimens we’re getting flowering in their first season, and we’re supplementing smaller grade plants with perennial and herb species to get early flowering.

“We’re seeing bees visiting the plants and we will

collect data on how hives in each area are performing.”

During the month the National Beekeepers Association is encouraging Kiwis to plant bee-friendly and help bees flourish.

Farmers can contribute much to bees’ nutrition by choosing plants good for pollen and nectar as well as serving the purpose of erosion control, riparian protection, shade and shelter or animal fodder, says McPherson.

“We’ve found that on farms where we’ve done bee feed plantings the bees visit the feed plants and there are other planting benefits -- shade, shelter, riparian protection and amenity.”

Low maintenance trees and shrubs make the best bee plants, and Trees for Bees is also looking at getting bee feed from ground cover plantings that control weeds.

“Most people wouldn’t think of an oak or a maple as a bee feed plant, but the quantity of pollen available from one such tree is huge, so they are important in keeping bees well fed and healthy,” says McPherson.

Trees for Bees works with beekeepers and landowners on its demonstration farms to develop onfarm and apiary-based planting designs to ensure hives have enough bee feed.

“Bees pollinate or gather honey for only a few months each summer so it’s vital we have enough natural bee feed to keep hives healthy and vigorous and get the bees through the cru-

cial autumn and spring period.”

Trees for Bees has plant lists and planting guides for farms, public lands and home gardens. See the website: www.treesforbeesnz.org

More ‘bee feed’ plants will help the rural bee population to thrive.

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Safety workshops DAIRY WOMEN’S Network is seeking to shift members’ ‘can do’ attitude to one of ‘can do safely’, by means of free workshops called ‘Step up to Safety’, from late October.

These will be run by DWN members experienced in health and safety and supported by Worksafe NZ and Hazardco. “Participants will take away a 90-day health and safety action plan or actions identified to progress to next steps,” said project manager and farmer wellness specialist Lynda Clark.

Some farmers may have got complacent about safety, thinking they are off the hook following the Government’s recent health and safety legislation announcements, Clark says. But it’s not so.

“While sheep, beef, dairy and deer farming are deemed ‘low-risk’ industries, every industry’s workforce should go home safe at the end of each working day.

“These workshops will take health and safety out of the office and onto the farm and discuss what effective health and safety onfarm looks like.”

Attendees will gain better understanding of the current health and safety legislation and how it affects them, and will understand where their businesses are compliant and where they need more action.

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DAIRY NEWS SEPTEMBER 22, 2015

26 // MANAGEMENT

Line-by-line budget grind PETER BURKE peterb@ruralnews.co.nz

Matthew Newman, DairyNZ.

DAIRY FARMERS must review their budgets line by line says DairyNZ economist Matthew Newman.

Close scrutiny of budgets is crucial so farmers can identify any possible savings, he says.

“Many farmers will be doing that, whereas in the past four or five years they haven’t needed to do it to the same extent.

They must take a hardnose approach and ask ‘what can I do without?

Can I pull back fertiliser and feed and what are the long-term implications of doing that? There are

many things to consider when determining where to make savings.”

Newman says he knows low-producing cows are still being culled -- more than in previous years.

Slow pasture growth in many regions is making farmers conscious of feed levels. If things don’t improve soon dairy farm-

ers may have to feed PKE at a cost they would rather not bear.

“The cow cull brings a small injection of cash but not huge money -- about $1000. And there are some savings in not having to feed those animals.”

Future mating costs are also saved, he points out.

Meanwhile DairyNZ’s general manager for extension, Andrew Reid, reports lots of requests for advice – some on budgeting and on farm systems.

On the budgeting issues they mostly refer the farmers to other rural professionals, but they advise on farm systems.

“Farmers are scrutinising their farm systems and this goes hand in hand with budget advice for the most sustainable system longer term.

“Rather than looking at the next three-six months, people are looking out longer to make sure that if they go through a downturn in another five years they have a resilient farm system that will let them ride it out. This is becoming a topical issue on farms now.”

DairyNZ has comparative budgets on its website for farmers to look at for guidance or to benchmark themselves against others.

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FARMERS ARE being urged to speak courageously about the reality of their financial problems.

While most challenges facing the dairy industry are outside farmers’ control, Dairy Women’s Network (DWN) says farmers can act to minimise harm to their businesses.

DWN will run free ‘Tracking the cash’ workshops nationwide in October, November and December, says project manager Annabel Craw.

“Aside from strengthening the financial skills of dairy farmers… the workshops are to give farmers confidence and knowledge so they can speak courageously with business partners, professional advisors, family members and others. That might mean taking an idea to them or asking for help.

“The workshops will help farmers recognise that the better informed they are about their business situations, and the more robust their decision making processes, the more likely they will be to minimise disruption and build stronger businesses.”

DWN members Fiona Black and Rebecca Warburton will speak at 19 locations. Participants will gain understanding about: proactively tracking the cash in their business financial effects of the current milk price levels on their profitability and financial position in the short and medium term the need to seek up-to-date information on cashflow and how to use this for informed and timely decisions.

In a farm case study, a cashflow review will show a ‘cash track’ and the implications any variances have on cash position and the farm system.

Participants will see how much of the cashflow review process they are currently implementing and will identify ways to adapting this process to their businesses.

Says Craw, “Though the workshops are in late spring-early summer they will show it’s never too late to benefit from looking at how a business is tracking with income and expenses, and reviewing what is going well and what needs to change.

“Financial pressure is insidious,” says presenter Rebecca Warburton. “But by getting numbers out of your head and onto paper the pressure can be contained. www.dwn.co.nz

DAIRY NEWS SEPTEMBER 22, 2015

FEED / ANIMAL HEALTH // 27

       

Feed input drives milk output.

THE CHALLENGING milk payout

will have many farmers scrutinising budgets for ways to reduce spending. Many farmers ask whether they should still feed supplements and how much they can afford to pay for supplements. This article aims to address some of these questions.

Feed input drives milk output Unless you were wasting a lot of supplement or see opportunities to increase pasture harvest, lower supplementary feed inputs usually will result in less milk in the vat. If you

rather than cow maintenance. This could mean you milk fewer cows but produce the same amount of milk. I am tending to see farmers reducing stocking rate slightly then slashing their supplementary feed budget. A 450kg cow producing 400kgMS needs about 5.3tDM/year. Cull 10 cows and you reduce feed demand

Table 1: Value of the milk produced from feeding 1kgDM at a $4.25 payout ($3.85 + 40c dividend) and a range of milksolids response rates.

Milksolids Response Rate (gMS/kgDM feed)

Value of the milk produced (c/kgDM fed)

30

13

50

21

70

30

90

38

110

47

130

55

were feeding a lot of costly supplements, it is possible less feed may mean a more profitable system, but remember that if you decrease production, then fixed costs (such as interest) become higher on a per kgMS basis.

Decreasing stocking rate Many dairy cows have been culled in the past few months. Decreasing stocking rate reduces feed demand.

If you had a high comparative stocking rate it may also mean feed inputs are used more efficiently, with more feed energy going into production

by 53tDM/ha/year. If you reduce supplementary feed input by more than 53tDM, you lift your comparative stocking rate and run the risk of more feed energy being used for maintenance, resulting in less milk in the vat.

Milksolids response rates How much milk you get from a feed, and the value of that milk, determine how much you can afford to pay for supplements.

New Zealand milk production trials have shown an average response to supplements close to 80gMS/kgDM fed, however there is a large range,

with much higher and much lower response rates possible depending on a number of factors. The most important factor of this is how much pasture is available to feed cows. Where cows are drastically underfed on pasture, you are likely to see very high milksolids responses to supplements, while responses are likely to be low if there is plenty of grass.

‘Facts and Figures for NZ Dairy Farmers’ outlines likely milksolids responses based on post-grazing residuals and average pasture cover.

See pages 32 - 33 in http://www.dairynz. co.nz/media/210858/Facts-and-FiguresFor-New-Zealand-Dairy-Farmers.pdf.

The value of the milk produced from feeding 1kgDM at a $4.25 payout ($3.85 + 40c dividend) and a range of milksolids response rates are shown in Table 1. Note: this is not the amount you can afford to pay for supplement, as other factors such as wastage, additional costs (e.g. power and labour) and your desired profit margin must also be considered.

Finally, think ahead It is always easy to think you can get away without supplements when the grass is growing in the spring.

With predictions of a strong likelihood of El Nino in eastern districts this summer, it makes sense to plan to have some supplement on hand for the late summer and autumn.

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

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DAIRY NEWS SEPTEMBER 22, 2015

28 // ANIMAL HEALTH

Non-cycling cow options A COW is labelled a noncycler if it has not had an observed heat before mating starts, says LIC. Non-cyclers reduce herd reproductive performance and farm profitability by dragging down submission and conception rates and achieving

fewer days in milk in the following year than their cycling herd mates.

In most herds, the types of cows that become non-cyclers tend to be the same from year to year.

Non-cycling in cows show up as follows: ■■ young, first and

second calvers, especially if poorly grown ■■ thin cows ■■ late calvers ■■ health issues ■■ breed (Friesians are more susceptible) For cows cycled but not detected, plan to improve heat detection.

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Heifers must reach puberty to cycle and get in calf.

Getting yearling heifers in calf YEARLING HEIFER mating is fast approaching: have you got it sorted?

LIC asks.

No matter what the payout is, the fundamental principles remain the same.

Heifers must reach puberty to cycle and get in calf. Puberty is driven by liveweight in cattle (about 47% of mature liveweight on average); check their weights, enter weights into Minda to see how they are tracking, check growth rates and check to see if they are all cycling.

Heifers take about 10 days longer to cycle once they calve down as 2-year-olds. Mate yearling heifers 7 -10 days ahead of the main herd to help them next year.

Service bulls need to be sound and suitable. A difficult calving or a slow calving pattern as 2-yearolds can set heifers back badly.

Sufficient numbers of high quality

healthy bulls is a must for natural mating of heifers.

■■ Select bulls carefully to be easy calving and fertile ■■ Reject aggressive bulls and monitor bull performance in the heifer mob ■■ Yearling bulls: use 1:20 heifers; 2-year-olds 1:30 ■■ Ensure they are fully BVD tested and vaccinated. Sight the vet certificate.

Underground heifers There may still be time to flush them up, as a group or as poor individuals. Very small heifers are a poor investment. It may be more economic to cut your losses now on the poor performing tail-enders.

Check the feed plan with your grazier Some synchrony programmes can advance reaching puberty, if the line is undergrown. Talk to your vet.

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Keep them growing. They need to catch up before they are 22 months if they are to survive and thrive in the herd Don’t let animal health disasters rob you of pregnancies; create a sound heifer health plan to keep them growing and pregnant.

Replacement heifers Replacement heifers are a big investment, in most cases costing over $1200 to rear through to a milking cow.

It costs the same to rear a high BW animal as a low BW one.

Review your replacement rate and replacement quality; invest the money in the best genetic merit animals.

Rear the number that suits your business needs and future plans. If grazing is limited, it may pay to put the money into fewer higher quality animals.

DAIRY NEWS SEPTEMBER 22, 2015

ANIMAL HEALTH // 29

Bulls in paddocks save little, risks a lot FARMERS THINKING

about cutting artificial insemination (AI) this mating season will save very little now and lose a lot in the long term, says Jeremy Bryant, manager of DairyNZ subsidiary New Zealand Animal Evaluation Ltd. “AI using high breeding worth (BW) bulls is a cost effective way to continuously improve the profitability of your herd and to maximise cow capital value,” says Bryant.

The use of service bulls -- part or whole season -- complicates grazing management and brings hidden costs such as feed and damage to infrastructure. Bulls also introduce risks to staff

safety and animal health.

Farmers deciding to opt out of AI this year will need to consider their strategy for herd replacements in the 2017-18 season. Calves reared from service bulls are highly likely to be genetically inferior, and this will have a detrimental impact on farm profits.

It is estimated that bringing just one year of naturally mated replacement heifers into your herd will cost at least $30,000 in lost profit over ten years. This loss can be reduced by buying surplus heifers from other farmers, but this is likely to be expensive.

“Farmers who need to buy replacement

heifers will be vulnerable to market supply and demand, and could end up paying top dollar for below average genetic merit animals,” says Bryant.

Farmers looking to save cash or gain extra revenue next season could consider other AI options offered by breeding companies.

This could include

more targeted allocation of elite dairy sires to their highest BW cows, while using cheaper beef or short gestation-length sires over low BW/PW cows.

Jeremy Bryant, NZAEL.

Calves must get lots of colostrum.

Calf care for first 24 hours crucial NEWBORN CALVES are vulnerable to cold and

disease, so careful handling, feeding and hygiene are important to get them safely through their first 24 hours, DairyNZ points out.

When bringing calves from the paddock to the shed, make sure the trailer is clean and disinfected.

Handle calves gently – they are babies! Do not overload the transport – all calves must be able to lie down.

Treat the navel with iodine again when you get to the shed.

Colostrum is the first milk a cow produces after calving. Collect colostrum and feed it to every calf in the first six hours of life.

Colostrum is very high in antibodies that protect the calf against disease. Calves easily absorb the antibodies in the first few hours, but after 24 hours they absorb very little. Calves that don’t get enough colostrum in the first 24 hours are more likely to get scours or pneumonia and are twice as likely to die in the first two months.

Around half of calves left with their dam for 24 hours do not get enough colostrum. DairyNZ says don’t starve them – tube feed them.

“Don’t be tempted to starve newborn calves overnight so that they get hungry and will drink. By the morning, their ability to absorb antibodies will have almost gone. If they won’t drink, tube feed them.”

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DAIRY NEWS SEPTEMBER 22, 2015

30 // ANIMAL HEALTH The first two weeks of milking will go better if heifers are trained prior to calving.

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weeks for heifers to get to know the milking area, entry and exit routes, and to establish a quiet, reliable routine.

The first two weeks of milking will go better if heifers are trained prior to calving, starting with walking to the dairy yard and holding them

briefly, then building up to turning on machines and walking them through the dairy. Teat spray at this time.

Using an internal teat sealant on heifers can also familiarise them with the dairy and yards four-six weeks before calving.

Take your time moving animals into the

farm dairy: don’t rush because this minimises injury to udders and teats, and helps cows get comfortable during milking. Encourage the cow by gentle handling.

Don’t rush, a calm cow is a productive cow.

Unexpected noise and movement scare cows, and they will not let down

their milk. Tell staff to follow a calm, consistent routine when handling stock.

Ensure all quarters of all cows are milked out.

Ensure each cow has a milk let-down at each milking, particularly heifers. Use let-down hormone (Oxytocin) if necessary.

Uni sells start-up to US giant MASSEY UNIVERSITY has

sold its 35% stake in New Zealand Veterinary Pathology Ltd (NZVP).

It has begun selling shareholdings of Massey Ventures Ltd, the university’s research commercialisation arm.

The NZVP buyer is IDEXX Laboratories NZ, a subsidiary of IDEXX Laboratories Inc, Maine, US. It makes pet healthcare products, diagnostic tests and information for livestock and poultry, and quality and safety tests for water and milk.

NZVP will now be called the NZ Veterinary Pathology Division of IDEXX Labs. The sale price has not been disclosed.

NZVP was incorporated in 2004

by Brian Linehan, Angus Black, Massey Ventures Ltd and Vet Service Trading Ltd. It started with labs in Hamilton and Palmerston North, later opening a lab at the Auckland Zoo. Massey Ventures (previously Massey Holdings Ltd) has traded since 2003. Its lab on the university’s Manawatu campus has worked with the Institute of Veterinary, Animal and Biomedical Sciences.

Massey University assistant vice-chancellor professor Brigid Heywood says “many positives” arise from the agreement, and will “open up other opportunities which will benefit from IDEXX

Laboratories’ scale and global reach and Massey’s teaching and research strengths”.

Massey Ventures board chair Terry Allen refers to “an exciting landmark event in the development of commercially successful spinouts from a leading New Zealand university”.

Chief executive Mark Cleaver says the “transaction shows we can grow successful companies and create value for the university. Like any venture business it must take a long-term view, and 10 years is a typical timeframe before [it makes any money].”

Massey Ventures holds equity in ten companies.

DAIRY NEWS SEPTEMBER 22, 2015

MILK QUALITY // 31

Passing the cooling proof point MEGAN FOWLIE

PENDING MPI milk

cooling standards are intended to maintain current milk quality, improve milk quality and increase New Zealand’s reputation as a quality milk provider.

But we already have the best milk quality in the world. Is this regulation for regulation sake? Why

Other markets may not have such great genetics, may have veritably poor onfarm practices and may not have too good a track record in health and animal welfare.

Quicker cooling and colder storage halts the growth of bacteria and increases confidence in the delivery of a safer, healthier product. In those markets better milk cool-

“We need to prove we have the world’s best quality milk.” do we need to improve quality or build a better reputation? Well, leaving aside religious claims, great claims require great proof. We need to prove we have the world’s best quality milk.

Well before milk is cooled there are many upstream factors influencing the integrity of milk, eg genetics, seasonality, feed, animal health. In NZ we have great dairy cattle genetics, onfarm practices, open pasture feed regimes and responsible attitudes to health and welfare of animals. Our quality products originate in a large investment in dairy technology, skill and education over time. That’s the way we do things -- the culture – of NZ farming. Much of any culture is invisible: we don’t acknowledge what we do and how we do it because it just seems commonplace.

ing improves milk quality.

For this reason, sensitive consumers in our global markets recognise cooling as a proxy for milk quality and safety.

Well known events in recent years have altered the perception of NZ as consistently producing the world’s highest quality milk.

Directly or indirectly our cooling standards have come under the spotlight.

For now, milk cooling is the gateway to harnessing our deserved reputation for milk quality.

Without sorting milk cooling at a national level we cannot ‘pass go’. But once we do go, how we can go! Once we have passed the basic proof point we can leverage our upstream milk quality factors such as our internationally advanced work in dairy genetics, our continuous improvement in animal

husbandry and onfarm practice, our dedication to animal health and welfare, our commitment to R&D in technology and processes to support dairy systems.

We can challenge our own appetite for downstream value-add and realise the latent value which already exists in our quality milk. With cooler ‘safer’ milk we can start to participate in and create more and greater higher value manufacturing, segregate our milk supply, and use the top-quality milk in a greater range of high value products including personalised foodstuffs,

niche health and medical products.

We can tell the NZ story of how our milk, so distant from other markets, deserves to hold the title as the best quality milk in the world. And we can showcase all the factors that lead to that milk quality and which deserve the world’s attention.

If we address the market constraints of cooling we will find we have a more receptive market and potentially a much broader, higher value range of goods to trade.

• Megan Fowlie is a marketing executive at Tru-Test.

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32 // MILK QUALITY

Easing post-calving heifers into productive life AFTER CALVING, heif-

ers often suffer discomfort with swollen udders (oedema) and may be more difficult to move, handle and milk out.

According to DairyNZ, for young cows calving for the first time the milking routine is a new and different experience.

It takes about two weeks for most heifers to establish a quiet, reliable response to milking.

Milking staff must then be patient and gentle, for best production, lowest milking times and less risk of injury to milkers and ani-

mals. Extra labour may be needed during calving.

Practical ways to prevent mastitis in heifers include: ■■ Using internal teat sealant about four weeks before the planned start of calving ■■ Spraying teats with normal teat disinfectant two-three times per week for the three weeks before calving ■■ Picking up calves twice daily and milking animals within 9-12 hours of calving.

■■ The choice of strategy for an individual herd

■■

■■

■■

■■

■■

■■

will depend on: The gap in performance between incidence of clinical mastitis and industry targets Costs, potential risks and likely benefits of each approach Having the means to safely administer internal teat sealants to heifers pre-calving Opportunities to teatspray regularly before calving Labour available to pick up newly-born calves twice daily and bring animals in for milking.

Herds suffering 16 or

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more cases of clinical mastitis per 100 heifers within the first two weeks of lactation (8/50 heifer calvings) should work to reduce the disease. Talk to your vet.

Using antibiotics in heifers at calving time is a dubious idea because of high costs and the risk of antibiotic residues in milk.

If heifers are tight with

■■

udder oedema prior to calving, milk them out and use saved colostrum for their calves.

If they are very uncomfortable, seek veterinary advice.

Prevention is better than cure, so discuss heifer nutrition with your adviser to ensure diet does not contribute to severe oedema.

DAIRY NEWS SEPTEMBER 22, 2015

MACHINERY & PRODUCTS // 33

Contractors watch drivers set up own tractors MARK DANIEL markd@ruralnews.co.nz

JOSH CARSTON and Dion Richards joined forces two years ago as Carston Contracting, Reporoa.

Working within a 100km of their base they do silage and round baling, cultivation and planting, and round off the quiet end of the year building races and re-contouring land.

Before their new business they had worked for other contractors who ran Fendt tractors, so they knew what they wanted in their own stable, not least because of the brand’s versatility and legendary fuel economy. It’s an impressive stable: three Fendt 936’s, a 930 and a nimble 924, none older than three years.

Versatility is a key: the business employs five full-time operators, each with ‘his own’ tractor set up individually to suit his preferences.

The steplessly variable transmission is a case in point: some operators choose to drive in manual mode, others prefer to use the tractor management system (TMS) to control transmission speed and engine rpm to suit the task in hand.

Carston comments, “there is no right or wrong way -- everyone just jumps on and gets on with the job, but the key point is the transmission is smooth and easy to control”.

Despite the tractors being the largest in the Fendt ranges, the business says they are nimble and adaptable to different jobs; the drivers might be power-harrowing in the morning and powering a set of triple mowers after lunch.

The partners also note that the operators like the comfortable ride provided by the suspended air cabin and the suspended front axle, which results in productive days despite long hours at the height of the season. Visibility also gets a big tick, as does the general layout of the cabin.

All the tractors are fitted with Deutz 7.1L, 6-cylinder engines with SCR/Ad-blue systems to meet Tier 4 emission regulations; they are living up to their reputation for being fuel efficient, records showing consumption of around 35L/ hour when hooked up to a power hungry triple mower combination.

Richards mentions the 160L/min closed centre hydraulic system always has enough flow for the biggest jobs, and its ease of

control which allows prioritising oil flow to preferred circuits, or doing multiple tasks with one touch of a button.

With such a youthful fleet of prime movers, the partners remain undecided about replacement

policy, but see it being around 7000-10,000 hours. They expect to keep growing their business, by running the best tractors and machinery, and developing a reputation for doing a job well and on time.

Contractors Dion Richards (left) and Josh Carston.

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DAIRY NEWS SEPTEMBER 22, 2015

34 // MACHINERY & PRODUCTS

Gas heating gives calves cosy start

Enough milk is heated for 350 calves in 30 minutes.

MARK DANIEL markd@ruralnews.co.nz

GAS HEATING in a

new calf-rearing shed in Canterbury is helping its owners achieve the

animal health and staff environment they deem necessary for their business.

Homelands Farming, at Methven, run by Andrew Fitzgerald and Rebecca Langley, produces calves

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Their recently commissioned calf-rearing shed is designed for best animal welfare, a good working environment and quiet, easy stock handling.

The building can hold 512 calves and is clean, warm and well ventilated.

As part of the rearing process, colostrum delivers vital protective antibodies and is a source of protein. The colostrum fed calves quickly hit target weaning weights and show well developed rumens. The aim is to give each calf a good start to becoming a dairy cow with a long, productive career.

The couple visited a number of rearing units and decided an LGP gas heating system would best produce warm milk for the calves, cheaper and faster than an electric system.

They ordered a system from Longveld, in Waikato, established makers of dairy hot water systems. The design

integrated a standard hot water system with a spiral tube-in-tube heat exchanger with capacity to heat enough milk for 350 calves to 30 deg C in about 30 minutes.

An in-built timer controls automatic milk heating ready for scheduled feeding times, and the system delivers milk to a ‘cart’ at any time during the heating cycle.

The system supplies plenty of water at 45 deg C for equipment cleaning, and a hands-free supply of 80 deg C water for hand washing.

Fitzgerald says the system “has given us the confidence to gently heat large volumes of milk to a constant temperature in a short time, which results in healthy young calves”.

“The capital outlay and running costs compared well with electric solutions, and cleaning and maintenance are a breeze.” www.longveld.co.nz

Pungent gel deters birds A GEL that deters starlings from roosting in tractors – raising a sky-high risk of fires – has been launched by Shoof International.

Tractor fires caused by birds are preventable, yet every year plague farmers and contractors.

Starlings are renowned for building nests in the dark recesses under tractor hoods or in the nooks behind work lights on cab roofs, their nests readily catching fire from hot exhaust pipes or shorting electrical cables. Shoof’s new product Wingo is for applying to the places on tractors or machinery that birds favour as roosting points.

Wingo is a vegetable-based gel oil containing pepper and cinnamon; birds don’t like the feel of the gel on their claws, the astringency of the pepper triggers an alert reaction and the scent of the cinnamon jogs their memories for as much as two years. The gel comes in a standard caulking gun cartridge for applications to favourite spots -- mirror stalks, work lights, hydraulic hoses and along the crest of a tractor’s hood. www.shoofinternational.co.nz

DAIRY NEWS SEPTEMBER 22, 2015

MACHINERY & PRODUCTS // 35

Self-propelled foragers boast versatility, fuel economy MARK DANIEL markd@ruralnews.co.nz

THE CURRENT world

market for self-propelled foragers is about 3000 units annually, of which German specialist Krone

holds about 15% (450 units) with its Big X series.

Its range contains six models 400-1100hp, and the company was keen to fill gaps, particularly in the 500-800hp sector, so it recently launched the X530, X630 and X770 to

The machine easily switches from grass to maize.

give at least one model in each 100hp sector throughout the range.

The smaller X530 uses a 6-cyl, 12.8L Mercedes engine, and the X630 a Mercedes 6-cyl, but ‘cubed out’ to 15.6L. The new X770 uses a Man V8 unit of 16.2L pumping out a lusty 753hp.

The Bix 530 and 630 models have a variable engine output system as they are targeted to working in various crop types. An economy setting allows reduced power output for ‘easy’ crops such as grass, and a return to full power for energyhungry crops like maize.

The improved foragers will have updated cutter heads, which retain 20, 28 or 36 knife configurations, but have a new mounting system that reduces drum wear and better supports the knife sections.

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With a variable engine output system, the forager can work in various crop types.

ment simplifies adjustment between knife and shear bar.

The addition of a new 105-tooth corn cracker is designed to allow chop lengths longer than the 10-20mm norm catered for by the current 123tooth processor. And a new quick-drop changeover system for the processor assembly makes the switch from grass to maize and back easier and quicker.

In operation the tail end of the harvester is raised on the independent suspension, and the operator uses a manually actuated hydraulic pump to lower the whole unit onto a jockey wheel cradle which is then rolled out from under the machine.

Changes to the machines’ crop flow is achieved by a clever hinged flap behind the accelerator/blower drum.

In situations where less

blow is required, such as when a trailer is operating alongside, the flap stays tight against the lower housing, reducing the amount of crop being pushed by the blower, and slashing fuel use. When more blow is required, perhaps when opening out a paddock and filling a truck or trailer running behind, the flap tightens (moves towards the blower), increasing the velocity of the crop

stream.

The X770 gets a few extras also: increased protection around the wing mirrors, a new 10 inch in-cab terminal and a central lubrication system with 50% greater output.

The addition of a folding mechanism for the extended spout assembly for use with 12-row headers should make transport easier and a cutter-head brake is fitted as standard. www.tulloch.co.nz

RELIABLE. ACCURATE. EASY-TO-USE. WE LISTENED. As a result of more than 10,000 hours of farmer centric research, development and testing the Katipo is packed with unique features that make spraying a whole lot easier. > The tank shape eliminates chemical stagnation, settling out and contamination. > A stronger cradle style chassis means both tank and chassis last longer than traditional wrap around designs, and it’s easier to connect to the tractor.

> Compact low centre of gravity design increases stability and makes filling easier. > MixMax agitation system provides best in class agitation and allows you to choose how much you have - Max for Liquid fertilisers. Min for Herbicides

> NZ’s toughest offering of both manual and hydraulic Booms reduce downtime.

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DAIRY NEWS SEPTEMBER 22, 2015

36 // MACHINERY & PRODUCTS

Inventors plough on MARK DANIEL markd@ruralnews.co.nz

A RACE is on to launch the first

ISOBUS controlled plough at Agritechnica, and it appears German company Lemken is leading by a nose.

It said recently it is the first implement manufacturer to offer an ISOBUS plough control system that meets the guidelines of the

Agricultural Industry Electronics Foundation (AEF). This controller allows operators to control their ploughs using a Lemken terminal or an ISOBUS compatible terminal on the tractor.

The Lemken Juwel reversible plough has an electro-hydraulic turnover system and hydraulic tilt adjustment using the TurnControl Pro ISOBUS plough control system which allows tilt, working depth and variable width via GPS control

without the need for any extra devices.

The Agricultural Industry Electronics Foundation (AEF) is the umbrella organisation that has led ISOBUS development over the years.

Products successfully tested by the group are awarded the ‘ISOBUS CERTIFIED’ label which confirms it meets the agreed industry standard. www.lemken.co.nz

Tractor performance depends on ballasting.

Ballaster sharpens up tractors, loaders

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SETTING UP tractors for best perfor-

mance relies in large part on getting the ballasting right, for weight distribution and maximum traction in the paddock, or creating balance and safety using frontloaders.

Loader specialist MX’s recently introduced modular, progressive ballasting system should ensure tractors can be easily set up for differing tasks.

Using four base weights 600-1500kgs, and with provision for two extra weights of 400kgs each, the system offers twelve possible combinations with a weight range of 600-2300kg.

With the ability to be used by tractors with Cat 2, 3 and 4 linkages, and the choice of rear or front mounting, the base units

incorporate MX’s patented quick attach system, with deep arm guides, that allows three point or two point mounting dependent on the frequency of removal.

The design ensures loads are spread throughout the structure and offers impact resistance, and should ensure a long service life. A red removable indicator for sighting in front mounting applications enhances usability.

Optionally the concept offers a Multibox that fastens to the front of the unit, with 168L of closed storage space for tools, medicines, etc. Specific holders take chainsaws and shovels, and there is also a drum holder. www.m-x.co.nz

Faster Milk Cooling At A Lower Power Cost Tyre app

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IN WITH THE NEW OUT WITH THE OLD

HOW? Replacement of the traditional (and old technology) Thermostatic Expansion Valves (TEV’s) with Carel Electronic Expansion Valves (EEV’s) provides outstanding superheat control of your refrigeration plant. This in turn maximises the cooling in the milk vat. By also installing Carel FCP Condenser Fan Speed Controls you can further maximise the plant potential.

✓ Time to cool milk significantly reduced ✓ Improve milk quality due to quicker cool down ✓ Reduce power costs ✓ Suitable for existing or new installations ✓ Pay-back in first year depending on vat design and refrigeration plant condition

Ask your Refrigeration Technician or contact Eurotec for more information.

Phone us on 0800 111 990

Head Office: Auckland: Tel. 09-579 1990 Wellington: Tel. 04-499 3591 | Christchurch: 03-366 0017 Email: sales@eurotec.co.nz | Web: www.eurotec.co.nz

SETTING TYRE pressures correctly, even for a humble farm tractor, is important for reducing compaction, precluding shallow ruts in difficult conditions and cutting fuel consumption.

Tyre manufacturer Michelin has introduced an agricultural tyre pressure calculator app that allows farmers and contractors to get on-the-spot advice for particular jobs or tractor/implement combinations.

Appropriate tyre pressures for a desired load or speed can be calculated in three easy steps.

Firstly the user enters the tractor’s front and rear axle loadings, and the approximate weight of implements. Secondly, he enters the sizes of the Michelin tyres fitted to the tractor from a drop-down menu that lists the full range of Michelin products. Finally, he uses his device’s in-built camera to take a photo of the set-up, which cleverly looks at the image to calculate the precise weight distribution and the length of any overhangs from the wheels. The app then calculates the recommended tyre pressures for each axle.

The application is compatible with iPhone, iPad and iTouch, and Android operating systems. www.itunes.apple.com or www.play.google.com or www.michelin.com

DOLOMITE NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566

DAIRY NEWS SEPTEMBER 22, 2015

MACHINERY & PRODUCTS // 37

Off-road machines deliver full blast MARK DANIEL markd@ruralnews.co.nz

SIDE-BY-SIDE FARM

vehicles are increasingly popular in the utility and recreational markets, and specialist maker Polaris has models showing highperformance pedigree.

The Polaris RZR XP 1000 and 1000 Calavera have engines of 999cc, delivering a hefty 107hp, hitting 80km/h in a tad over five seconds, and maxing out at an eyewatering 123km/h.

To handle such power they have serious offroad equipment such as Walker-Evans anti-bottoming shocks that offer 40cm of suspension travel and, in the case of the XP 1000, run on Maxxis Bighorn 29 inch tyres.

The performance pedigree is confirmed by the brand now holding national champion status in the NZ Off-Road

Champs, and in the sideby-side class in the Australian Rally Championship.

For riders looking to stand out from the crowd, there’s the option of the XP 1000 Calavera model, with an exclusive build of only 206 units numbered 1-206 and only available outside the US market.

The ‘206’ designation is said to represent the number of bones in the human body, and each will surely take some knocks and bumps when these machines are driven in anger.

The Calavera offers stunning graphics and enhanced rider comfort, and sports a stunning orange cab frame and suspension components, white aluminium doors and roof, and black forged HEXLR wheels with 30 inch Mongrel tyres.

As part of a September promotional package each purchase of an XP 1000 or Calavera will net the

owner a free RZR170 sideby-side for riders aged over 12. It seats two, has a full safety frame, a 169cc 4-stroke engine coupled to a PVT transmission and disc brakes front and rear.

Other features: adjust-

able steering column and drivers’ seat, one-piece side nets for safety, a parent-controlled speed limiter, daytime running lights and two safety helmets.

Polaris’ powerful offering – the Calavera.

www.polaris.co.nz

Weeping wall brings joy TONY HOPKINSON

It’s easy really. It’s an upgrade. For free. You pay for an Agrotron M M-Series -Series S tractor, and we’ll evel of spec – for free. give you the next level

CRAIG KUSABS, chief executive of the Maori agri-

business, Tumunui Trust, says a desire to keep things simple prompted him and the trustees to choose an Archway Group weeping wall effluent system.

“We had one at the other farm and while we looked at others we came back to the Archway system for several reasons.”

The trustees had studied an independent cost benefit analysis by Dr Debbie Care, of AgVice. This compared three effluent systems -- weeping walls, mechanical solids separation and pond only. The Archway capital costs were mid-priced but their operating costs were 60-70% lower than the other two methods and after four years theirs was seen as being more cost effective.

They offered a warranty of 20 years and a 50 year warranty on the concrete.

“With the storage of the bunkers and the pond we have the flexibility to spread the solids or water when the weather is OK for the liquid and when cropping land is available for the solids.”

Full utilisation of nutrients helps environmentally and with no mechanical gear there is less to go wrong and the system has a low labour need.

The shed wash water and yard effluent falls to two side-by-side holding bunkers 56m x 6m x 1.5m deep; each side has six months capacity. Once one side is full it is left for a further five-six months and by then almost all liquid is drained off and the solids are removed.

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DAIRY NEWS SEPTEMBER 22, 2015

38 // MACHINERY & PRODUCTS

Thoroughbred ute will cut it in town, country MARK DANIEL markd@ruralnews.co.nz

LARGE PASSENGER

vehicles seem to lost favour in suburbia, giving way to utes as the macho movers and shakers.

With this acceptance, car companies have seen a demand for more car-like creature comforts mixed with rugged exteriors.

The new LS-T D-Max

Isuzu’s new LS-T D-Max.

To celebrate the 153rd Canterbury A&P Show on Wednesday 11 to Friday 13 November 2015, Rural News and STIHL are giving away a STIHL MS 251 Chainsaw and safety pack valued at $1660. Answer the question below and you’ll be in the draw to win!

What anniversary will the Canterbury A&P Show celebrate in 2015?

Enter at www.ruralnews.co.nz/stihl-competition

FORTIMA VA R I A B L E R O U N D B A L E R

Features the EasyFlow Camless Pickup for quiet running and reduced wear and tear saving service and maintenance costs.

MultiCut System – new rotor gives increased throughput and superior quality of cut making bales that are easy to feed out.

Variable Chamber – for high density bales in silage, hay and straw.

www.tulloch.co.nz

0800 88 55 624

DEALERS NATIONWIDE

from Isuzu is worth a look, because the ‘bones’ of the machine have proved themselves capable over the years, especially in the hands of ‘tradies’, known to give their vehicles a hard time.

The 30L turbo, common rail diesel engine pushes out a respectable 130kW at peak torque of 380Nm across a broad rev range, helping the truck hang on during long climbs and negating the need to grab a lower gear to keep momentum.

The five speed transmission is smooth and precise, using control technology that monitors the driver’s habits of acceleration and braking, and altering transmission shift points to suit tier style. The manually controlled sequential shift option allows a sporty driving style and can be used to hold the vehicle in a particular ratio for climbs or descents.

The 2WD version as tested was fitted with safety features such as ABS, electronic brake distribution that detects the load in the rear and adjusts the braking effect to the rear axle, and traction control that allows the machine to take on slippery stuff, although serious off-roaders are more likely to want the 4WD model to ensure they get to their destination.

On ‘urbanisation’, the first impression on opening the doors is the seating arrangements: leather upholstery which looks a little decadent for a ute but will suit the intended market and probably better handle blackcurrant spills by the kids and drools by Dave the dog.

The driver gets the added bonus of 6-way electrical adjustment, although this test driver found the angle of the seat pan from front to back was very limited. The second row also has leather, and although lacking any adjustment it appeared roomy and comfortable, and had the option of being laid flat for large items, or as a perch for old mate Dave.

Creature comforts for trips to the beach or to see

the relatives are by setand-forget climate control air conditioning for an even temperature, and a six speaker entertainment system with DVD Player, USB, I-Pod and Bluetooth connectivity for up to five devices at any one time.

The tailgate mounted rear view camera is a must for hooking up trailers, and getting into tight parking spots, and a touch-screen sat-nav system ensures you end up where you intend.

Ride quality is as good as most utes in the market, and the designers use of an extended wheelbase and wide wheel track has paid off, the vehicle cornering without too much deviation from its course unless distracted by a pothole or poor surface mid-bend.

As with any ute there is a tendency for the rear end to appear a little ‘springy’, but this is improved greatly by a load up to 1007kg or something on the towbar (up to 3500kg in 4WD).

Smart 5-spoke alloys run 255 section tyres to complete the look.

Looks-wise the D-Max is up there with the best, and won’t look out of place either onfarm or outside a favourite coffee shop in town.

The fact that the 2WD rides on the same suspension and wheel equipment won’t let anyone know it’s not 4WD unless they start hunting down badges.

The front aspect is bold: big purposeful headlights which blend into the bumper area that includes driving lamps and a cooling intake grille. Down the flanks, a neat pair of running boards look the part, although they are probably more use to a yummy mummy’s size 6’s in suburbia than to a farmer’s size 11’s in effluent. Above are roof bars that pay homage to the urban intentions, and a racy shark-fin aerial completes the look.

Summing up: a truck that will find a following considering its existing pedigree as a trusty workhorse, and offering street appeal to townies not needing 4WD. @dairy_news facebook.com/dairynews

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