Dairy News 08 November 2016

GDT hike a morale booster. PAGE 3 SLEEK OPERATOR

SILVER BULLET? No need for N PAGE 6

Moves well in confined spaces PAGE 31

NOVEMBER 8, 2016 ISSUE 368 // www.dairynews.co.nz

MISSION COMPLETE “I consider it a privilege to have led an iconic New Zealand company for nearly nine years.

– Paul McGilvary, outgoing Tatua chief executive

PAGE 4

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DAIRY NEWS NOVEMBER 8, 2016

NEWS // 3

GDT hike boosts morale LAST WEEK’S big jump in Global Dairy Trade

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(GDT) prices is hailed a morale booster by farming leaders: the GDT price index rose 11.4%.

Average prices for flagship whole milk powder jumped 19.8% to $US3327/tonne, raising farmers’ hopes of another rise in Fonterra’s farmgate milk price from $5.25/kgMS. US$3000/tonne is generally regarded as the breakeven point for farmers, although adverse currency movements can hinder beneficial price movements.

Rural lenders are now firming on above $6/kgMS milk payout for the season.

DairyNZ’s chief executive, Dr Tim Mackle, says the latest rise in the GDT is positive news for all dairy farmers, especially those in the North Island where a very wet spring has affected pasture growth and utilisation, causing milk production to fall significantly.

“It will be a shot in the arm for them, but I think they will take this increase at face value. Farmers, especially those in the North Island, are enduring a very difficult spring.”

Federated Farmers Dairy chairman Andrew Hoggard says things are looking more positive.

WMP prices need to stay over US$3000/tonne for farmers to get a decent milk payout and make a profit, he says. “Let’s hope the prices

remain steady.”

Hoggard also points out that money won’t start flowing to farmers straight away; it will take several months.

He believes buyers were responding to news that New Zealand and Australian production would be down and that Europe is flat.

ASB senior rural economist Nathan Penny says the latest rise reinforces the bank’s $6/kgMS milk price forecast and there is growing likelihood the milk price will surpass the bank’s already bullish forecast this season.

Prices have lifted a little earlier and higher than the bank had anticipated. ‘’As a result, if NZ production is indeed as weak as we now anticipate, then prices are likely to remain at current levels or lift further. In this respect, we see an increasing probability that this season’s milk price will rise above our current $6/kgMS forecast.”

BNZ has also lifted its milk price forecast from $5.30 to $6/kgMS. It could well end up higher than forecast if

global milk supply continues to contract more than anticipated or lower if production holds up, economist Doug Steel says.

DairyNZ chief executive Dr Tim Mackle says the massive increase in dairy prices will lift farmers’ spirits.

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DAIRYNZ CHIEF executive Dr Tim Mackle says while farmers in the North Island have taken a hit from the weather, in the South Island the dairy season started well, and this will lessen the impact in the overall drop in milk production for the season.

“Recognising some farmers have been particularly badly hit, in general I am still staggered that most farmers are coping well with all the issues they have been facing. Even when milk prices return to more normal or average levels, farmers will still need to run a tight ship, using pasture well and keeping a close eye on

their costs,” he says.

While other dairy farmers worldwide have been hit by the global dairy crisis, Mackle says NZ farmers have suffered the most: they were the first hit by the crisis. The others, especially in Europe, were somewhat buffered by their strong domestic markets and EU subsidies.

But Mackle is concerned that as well as having to farm in difficult times and situations, NZ dairy farmers are constantly hit by negative publicity. This referse to recent video showing a handful of dairy farmers flaunting best-practice

procedures in their ill-treatment of calves.

“There is no getting away from it; having grenades lobbed at them like this and [the public] questioning standard practices and values is upsetting for farmers. My advice is, they shouldn’t let it get to them because they know in their hearts that the vast majority are doing the right thing,” he says.

Mackle says this latest publicity highlights the need for the industry to explain to the wider public what are good, standard onfarm practices.

– Peter Burke

DAIRY NEWS NOVEMBER 8, 2016

4 // NEWS

Mission accomplished SUDESH KISSUN sudeshk@ruralnews.co.nz

TATUA

CHIEF executive Paul McGilvary will step down on January 31, a satisfied man.

McGilvary says his nine-year term as head of the independent processor at Morrinsville has been an enjoyable one; not only has Tatua topped the payout stakes among processors every year, the co-op’s milk supply base has grown from 12 million kgMS to nearly 15.2m kgMS this season.

And importantly, milk quality has been maintained; Tatua suppliers have an average somatic cell count of 130,000 against the industry average of 200,000.

During McGilvary’s tenure, the company has doubled staff numbers from 180 to 370. A new food production facility was added in 2010-11 and a new specialised powders dryer in 2014-15. A $7 million wastewater treatment facility is now under construction.

Tatua also opened two international offices, in Shanghai and the US, to complement its Tatua Japan office.

McGilvary says China now accounts

for almost 20% of Tatua’s sales, as does Japan. The US accounts for about 12%.

It wasn’t all plain sailing though for McGilvary; in 2014 a blackmailer mixed highly concentrated 1080 poison with baby milk formula and posted packs to dairy co-ops and to Federated Farmers, with a letter demanding the country stop using 1080 or he would release poisoned infant milk powder into the Chinese market and one unspecified market.

Those were challenging times for the dairy companies, says McGilvary.

“We had to assure our customers that we had processes in place to ensure the integrity of our products.”

As part of its response to the 1080 incident, Tatua has spent $1 million on a new security system; it includes a perimeter fence around the factory at Tataunui and controlled entry points throughout the factory.

The DIRA regulation review and an end to 50 million litres of milk supplied

by Fonterra was also a challenge, but Tatua suppliers grew their milk supply to offset the loss of DIRA milk.

McGilvary says the co-op has a great working relationship with other dairy

processors; it trades raw milk with other independent processors Open Country Dairy and Miraka.

Under McGilvary’s watch Tatua has grown its specialised added value business -- nutritional ingredients like hydrolysates, lactoferrin and phospholipids. It is a key supplier of dairy peptones to global customers; peptones are used in vaccines and probiotics. It is the only casein and lactalbumin peptone manufacturer fully integrated back to the raw material milk source.

Its food service business includes dairy whip catering, cream, sauce and soft serve ice cream. For consumers, it produces whipping cream and cheese sauce.

McGilvary says while Tatua has focused on growing its specialised added value business, its overall performance is the primary reason for its success.

“As a cooperative Tatua focuses hard on wringing the highest performance possible from its capital investments and it has retained money from payouts to ensure it maintains a strong balance sheet to time sales and capture

Paul McGilvary leaves Tatua Dairy on January 31 next year.

opportunities.

“Customers, farmer suppliers and staff are the heart of Tatua and each of these groups is critical to the company’s performance. I am proud of the relationships we have built and I am sure these will continue to be a strong focus after I leave.”

McGilvary has no immediate plans for the future. He will continue as a director of WEL Networks where he has

served for seven years and will look at other opportunities as they arise.

“I have loved every minute of working at Tatua. I consider it a privilege to have led an iconic New Zealand company for nine years.

“All companies need a change at the top periodically to maintain the dynamism necessary for success to continue.” @dairy_news

facebook.com/dairynews

Self-managing cows NIGEL MALTHUS

Farm owner Alvin Reid (centre) address NZ Grasslands Association delegates while NZGA members Richard Robinson and Dr Jenny Jago look on.

THE POSSIBLE future of dairy farming was displayed in Canterbury recently to attendees of the NZ Grassland Association’s 78th annual conference, held this year in Timaru.

On the first day at least 300 farmers, scientists and industry people on a field trip visited two robotic milking farms in the Pleasant Point and Cave areas.

Riverholme Pastures (135ha), run

by Alvin and Judith Reid, had been a dairy support and young stock grazing unit but was converted to dairying in 2013 with six DeLaval robotic milkers.

It is divided into three large blocks on an open-gates system, so the cows are free to make their own way to the shed at any time day or night. It is a highly automated system with a series of gates at the shed controlling the animals’ access to the robots, and cameras allowing remote monitoring even at night.

Dairy NZ senior scientist Dr Jenny Jago, who led the eight-year ‘greenfield’ project which established the viability of robotic milking under NZ conditions, told the visitors about 20 farms here are milking by robots.

She says robotic milking was originally developed for European indoor cows, so a key challenge for the NZ project was to show that outdoor-

grazing cows could make their own way to the sheds when they needed to.

“Farmers know cows are smart.

But this is the project that really allowed the cow to show she is able to learn and contribute to the way a farm is run.

“All we do is put incentive and guidance in place for the cow and the rest she does herself.”

The field trip also took in the Moa Flat Dairy near Cave, where Alex Ulrich runs 300 cows under an indoor free-stall voluntary milking system, as well as the Ulrich family’s adjacent Rock Farm, primarily run as a dryland lamb and beef finishing unit and supporting Moa Flat.

DAIRY NEWS NOVEMBER 8, 2016

NEWS // 5

Balanced spread of investors needed PETER BURKE peterb@ruralnews.co.nz

A NEWLY published report by KPMG shows that in the last two years China has been the single biggest offshore investor in the New Zealand dairy sector, placing 28% of the $1.3 billion that came into dairy and milk processing from offshore.

The report, prepared by KPMG with the Overseas Investment Office (OIO), shows that between January 2013 and December 2015 about $3.4 billion was invested in a range of NZ agribusinesses by overseas companies and individuals. This represents 13% of the $26.3b invested in total in NZ in industries including real estate, energy and financials.

While China (28%) was the largest investor in dairying, France (13%) and the US (9%) were also in the mix.

The global head of agri for KPMG, Ian Proudfoot, says while China is a dominant investor in the dairy sector, the US, Canada and Europe also invest heavily in other agri related ventures.

He says though China is now the biggest investor, this may not continue.

NZ needs a balanced spread of investors, in particular those who want to create and drive value from their investments here.

Proudfoot acknowledges the concerns NZ has about Chinese investment, notably the influence the state has on investment policy, and

the focus of China on food security.

“Part of the concern people have is the businesses the Chinese are buying. Through Yili they have invested in the Oceania Dairy business in the South Island, but that asset would not have been built without Chinese investment.

And the Yashili development at Pokeno (south of Auckland) would not have happened without the Chinese investing. They are creating jobs and opportunities for us to produce into higher value product streams.”

Proudfoot says NZ needs partners who are well connected to markets and if a Chinese partner can do this, that is positive.

He also notes Kiwi concern about Chinese owned companies in NZ putting pressure on local ones in the Chinese market.

“I don’t see that as a problem although the nature of the Chinese economy is connection and relationship. Good relationships and strong connections facilitate how you can do business in the Chinese market. So maybe the Chinese-owned companies in NZ have an easier track, but I don’t see them making it difficult for others.”

Proudfoot refers to interesting new statistics about the amount of liquid milk being taken into China. Germany is sending 4L of liquid milk for every 1L NZ sends to China.

“What the Chinese are looking for is high quality

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KPMG’s comprehensive report shows that most of the freehold land being bought by overseas

Yashili’s infant formula plant at Pokeno.

investors is in Canterbury, Otago and Southland -49% of land sales.

Proudfoot says the positive story from the research is that offshore entities see NZ as a place worth investing in.

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DAIRY NEWS NOVEMBER 8, 2016

6 // NEWS

Bio-active ‘silver bullet’ for nitrate leaching?

NIGEL MALTHUS

FARM COMPARISON

work will start soon to support scientifically the claim that a biologically active fertiliser system now used on 200 dairy farms reduces environmental impacts and raises profits.

The system has been in development and farm use for 15 years. Even dairy farming critic Fish and Game (Nelson/Marlborough) says it is impressed.

Important results of the farm comparisons will be known in the next few months.

Functional Fertiliser Ltd supplies varieties of crushed lime with the crucial addition of a specially

brewed cocktail of fungi and bacteria. It says the system stimulates clover growth to the point that pasture fixes its own nitrogen, removing the need for nitrogen fertiliser and providing a range of measurable benefits.

Agmardt (Agricultural and Marketing Research and Development Trust) has approved a grant of just under $60,000 to investigate Functional Fertiliser Ltd’s system.

Matched dollar-for-dollar by the company itself, the money will fund an analysis of carbon sequestration on a farm which has been using the system for several years, comparing it with a similar farm using conventional fertiliser. The results of that

are expected by the end of the year.

It will also fund a second phase, the development of a functional fertiliser farm systems management tool for use by farmers and their advisors, due to be completed

by February.

They have also applied to MPI’s Sustainable Farming Fund for a followup study of 20 focus farms around the country over the following three years.

Directors Peter and Coralie Burton have been developing the system for about 15 years, and now supply a loyal customer base of about 200 farms around the country, from two main depots in Taupo and Rolleston.

Their two core prod-

ucts are CalciZest, based on regular lime, and DoloZest, made from Golden Bay dolomite, a high-magnesium form of limestone. The key extra ingredient in both – the ‘Zest’ -- is a carefully chosen mix of brewed live soil bacteria and fungi in a ‘soft carbon’ carrier consisting of naturally aged bark fines.

“Most dairy land has an ongoing requirement for magnesium,” says Peter Burton. “So, typically for dairy operators, DoloZest plus phosphorus and sulphur is applied in autumn, and that looks after the magnesium inputs and ensures good animal health.

“Then in spring we usually do a CalciZest applica-

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tion along with required P, K, and S and that encourages clover growth over the growing season.

“Those two products effectively replace fertiliser nitrogen.”

Burton says simply putting microbes into the soil doesn’t work because the existing mix of microbes is the result of the pre-existing conditions.

“The key thing with DoloZest and CalciZest is that we change soil conditions: we provide more calcium so have an increase in pH; there is an increase in worm activity, and with that an increase in all other beneficial soildwelling fungi and bacteria.

“Biological activity in the soil is stimulated so the nutrient cycling becomes a lot more rapid.

Particularly within pastoral soils there is 500015,000kg/ha of nitrogen within range of the roots, within that top nineten inches. More of that becomes available for plant uptake.”

Burton says clover is “a huge part of the plan” because it fixes nitrogen and is a better and more digestible animal feed.

Claimed benefits include a marked improvement in pas-

Peter Burton

ture growth and physical soil structure, improved drought resistance through deeper rooting and higher humus content, reduced need for regular re-sowing of pasture, and greatly reduced nitrate runoff.

Burton says that under their system, dairy farmers who may face having to de-stock to meet future environmental standards could instead maintain stock levels and even increase production.

He points to a previous study comparing a client farm in the Edgecumbe, Bay of Plenty, area with a nearby conventional farm.

That study concluded that in the 2011-12 season it recorded a $500/ha better profit with a significantly smaller environmental footprint in all respects,

particularly in nitrate-N concentration of water beneath the pasture.

Meanwhile, the system is also getting the nod from Nelson/Marlborough Fish and Game because of the benefit of reduced nitrate runoff to water quality.

Manager Rhys Barrier called it a “potential silver bullet” for some of the environmental issues now facing dairy farming.

“The data I have seen to date on the performance [of the monitor farms] makes me believe it is one of the most exciting mitigation tools out there for dairy farmers currently, and will easily enable them to meet nitrate leaching limits and the like coming through the pipeline in regional plans,” he said.

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DAIRY NEWS NOVEMBER 8, 2016

NEWS // 7

Learn to be passionate like the French PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND dairy

farmers need to have a greater passion for the milk they produce beyond the farmgate, according to KPMG’s head of global agri, Ian Proudfoot.

Speaking at a PGP seminar in Wellington last week, Proudfoot ranged widely over what NZ needs to do to establish a successful and profitable niche in global markets.

He noted that no country can ever be famous for its commodity products.

“You can be a well respected commodity producer, but fame comes from being the Louis Vuitton or the Rolex -- the brands that stand out,” he says. “We are not the Rolex or Louis Vuitton of the food industry – the exception may be Zespri.

We are world famous for rugby, not our food.”

NZ must inject more passion and emotion into its food sector, including getting farmers involved; telling the story about its food and making the link between farmers and consumers is a critical part of this process.

“There is an interesting comparison between NZ and French dairy

farmers. They are largely inefficient, subsidised, probably quite grumpy therefore often staging large protests to the government about things that affect them. But they are passionate about the milk they produce, the cheese it becomes and the experience it delivers and as a consequence they have world famous cheeses.

“Our dairy farmers are highly efficient and passionate about their farms.

But their passion ends once the milk is in the tank and it becomes Fonterra’s or Westland’s or Synlait’s problems,” he says.

Proudfoot says as a consequence NZ has no connection between farmers and consumers and this has to change.

Looking to the future, Proudfoot says NZ has to look at consumer and lifestyle trends and find ways to meet those. For example, he says with people commuting long distances to work, more will eat on trains, so providing high quality nutritious on-thego convenience food is a need.

Three key consumer groups need to be targeted: millennials, the aged and urban consumers.

“Particularly we need

to look at millennial consumers who are now just coming to an age when they are having kids and starting to unlock a whole new range of expectations.

“Most older people are suffering from some chronic health disorder but have the money to buy food to help them.

“Then there is the urban consumer. NZ needs to invest so that it can better align itself with these consumers,” he says.

Proudfoot says there is an urgent need in NZ to close the gap between rural and urban societies.

This is the key to developing an NZ story embraced

by everyone.

“Sadly, there is no pan leadership in the primary sector. We need a vison and an aspirational goal similar to what the Irish have with their Origen Green,” he says. @dairy_news facebook.com/dairynews

Ian Proudfoot, KPMG.

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DAIRY NEWS NOVEMBER 8, 2016

8 // NEWS

Anchor Food whipping up China business

Anchor Food Professionals chief director China chef team Teoh Joo Cheong in the kitchen with whipping cream.

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plant from early next year.

Previously planned to come online in 2018, a new $12 million production line will instead be finished in February 2017, for startup in March.

Fonterra director global foodservice Grant Watson says accelerating the plan to supply China with more UHT is important, given that product demand prompts the building of new plants for foodservice products.

“We build capacity based on secured customer orders. This is a good sign of dairy’s growing popularity in China and our identifying that demand and converting it into sales.”

Fonterra’s recent annual results showed total sales in foodservice had grown 15% on last year.

Fonterra chief operating officer global operations Robert Spurway says the new line will be running by March next year and will bring the site’s total UHT capacity up to 112,000 packs per hour.

“This new line enables us to expand our operations... and keeps us on track to foodservice becoming a $5 billion business by 2023.”

The new line will be at full capacity by April next year, adding 14 full time jobs at the site.

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THE THEME for next year’s Fieldays will be ‘leading change’.

The theme was chosen to promote prosperity in New Zealand’s primary sector, says chief executive Peter Nation.

“To excel and grow in the future, innovation and change is vital. It is an exciting and challenging time for the industry, but with good leadership we have great opportunities.”

The 2017 Fieldays will be held from June 14 to 17 at the Mystery Creek Events Centre.

Nation says NZ is a world leader in agriculture and primary production, and the Fieldays also leads as a place where businesses and individuals come for the latest in agricultural innovations and technology.

“We hope ‘leading change’ is a theme our partners and exhibitors will embrace,” says Nation. “The dairy downturn has been challenging for many, but with visionary leadership and fresh, innovative thinking we can transform the future of primary production in this country.”

Leading change supports the Fieldays pillars of education, internationalisation and innovation, as represented in the venue’s Innovations Centre, Careers and Education Hub and the Business International Centre.

Fieldays is the largest event of its kind in the southern hemisphere. The 2016 event generated $430 million in sales for NZ firms. There were 1507 exhibitor sites and 130,684 visitors.

Check out our websites www.ruralnews.co.nz www.dairynews.co.nz

DAIRY NEWS NOVEMBER 8, 2016

NEWS // 9

Get those ramps built PETER BURKE peterb@ruralnews.co.nz

THE SOONER farm-

ers install walk-on loading ramps for bobby calves the better, says Federated Farmers Dairy chairman Andrew Hoggard.

His comments are prompted by recent videos made by the animal rights group Farmwatch.

Hoggard told Dairy News that farmers must knuckle down and build the ramps (which become mandatory next season), or face ongoing criticism about how bobby calves are loaded onto trucks bound for the processing works.

He says the present controversy is exaggerated because many people, including some media, have not watched all the footage handed to MPI

by Farmwatch. Also, the media are playing this year’s video alongside last year’s, confusing and blurring the issues.

Loading calves onto trucks requires physically handling them and lifting them up onto the tray.

A truck driver needs to be about seven feet tall to do the job properly, Hoggard says.

“To be fair to these truck drivers, I’m not

sure I could have got [the calves] onto the truck any more gently. Last year we saw some pretty callous handling by truck drivers, but this year, while it looked a bit rough, they’d been doing it all day and it didn’t seem like there was malice in it or disregard for the animals. But it highlights the need for loading platforms.”

But Hoggard was unimpressed with video showing a person dragging a calf along the ground.

“That was bad and if I’d seen that on my farm it would have been a disciplinary matter.”

But he says complaints about calves not being handled properly and put in crates behind a quad are not valid; this is normal farming practice, exactly what he does on his farm.

“This needs to be properly explained. We pick the calves up after they have been born because it’s for their welfare. If we left calves on the mothers there would be the impacts on the mothers.

It’s hard, but it is something we have to work our way through and get some better understanding of why these actions happen.”

If farmers were required to do what the animal rights people want,

it would make spring an impossible time of year, instead of just difficult, Hoggard says.

NZ dairy farmers are constantly criticised despite all the good work they and the industry are doing. This contrasts sharply with what happened in Australia when the milk price to dairy

farmers slumped.

“The public were saying they would be willing to pay more for milk to support their farmers, whereas here it’s constant whinging about the price of milk,” Hoggard says.

“It all goes back to the ‘dirty dairy’ campaign which, as an industry, we

denied a little too long. We tried to push back, but had we accepted the challenge a lot sooner things may have been different.”

Hoggard says the industry now needs to move forward.

Andrew Hoggard

You can’t manage, what you can’t measure.

Award for child nutrition FONTERRA’S RESEARCH and development

team has won an innovation award for work in milk lipids and a role in supporting the nutritional value of maternal and paediatric nutritional products.

They received the Innovation in Food and Beverage award at the recent New Zealand Innovation Awards.

Fonterra director group R&D Dr Mark Malone attributes the award to hard work by different teams working together.

“Breast milk is the best source of nutrition for infants. However for mothers who cannot or choose not to breastfeed, the nutritional quality of milk formula is of utmost importance.”

This is the fourth consecutive year the co-op has won an innovation award: last year it won for its milk fingerprinting technology.

The milk lipids research was supported by Transforming the Dairy Value Chain – a Primary Growth Partnership of MPI, Fonterra and DairyNZ.

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DAIRY NEWS NOVEMBER 8, 2016

10 // NEWS

Anchor powers chefs to Culinary Olympics medals SUDESH KISSUN sudeshk@ruralnews.co.nz

SEVEN NEW Zealand

chefs backed by Fonterra scooped three medals at the recent 2016 Culinary

Olympics in Erfurt, Germany.

They won silver in the all-important hot kitchen section with a NZ-focused menu of salmon entrée, lamb loin main course, and South Pacific-inspired

dessert.

They had earlier won two bronze medals in the cold culinary arts section; pastry chef Ganesh Khedekar created a chocolate centrepiece featuring Gollum, a huge draw for

crowds.

Fonterra’s director of global foodservice Grant Watson, with the chefs in Germany, says the silver medal is thoroughly deserved.

“It’s been 28 years

since NZ last competed in the Culinary Olympics here in Germany. What they’ve accomplished is nothing short of amazing. Their hot dishes were exquisite and loved by the 110 guests and judges at

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technician Anita Sarginson; for the cold culinary section they were joined

by Khedekar.

The first Culinary Olympics was contested by four countries in Germany in 1900; it has since grown to 2000 chefs from 40 countries.

Fonterra global category and innovation manager Keith McDonald, who handled logistics for the team in Germany, says the chefs ran on adrenalin and slept little during the contest.

“Every minute was spent perfecting their dishes, so to win silver against other countries’ teams that travel all year from competition to competition is a fantastic achievement. These guys have definitely earned this medal.”

The overall winner for 2016 was Singapore.

MELTDOWN NO BAR TO SUCCESS FOR THE cold culinary section, the New Zealand chefs’ table centrepiece was a food model of the Lord of the Rings character Gollum.

“The judges totally got the NZ theme and where we were coming from,” says Fonterra global category and innovation manager Keith McDonald. “We were marked down because the heat in the room started to melt Gollum a little, but we were judged on the skill that went into it.”

The medal system differs from the first, second and third placing of the sporting olympics.

In the Culinary Olympics, all teams start with 100 points, which are deducted by the judges for various things they perceive as wrong with the dish. As little as half a point might separate gold from silver and silver from bronze.

Fonterra’s director of global foodservice Grant Watson says the standard of competition in the culinary art contest was extremely high.

“For NZ to pick up two bronzes in the first attempt in 28 years is a fantastic result and speaks to their skill and the quality of the food they produced.”

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the dinner.”

Fonterra’s global foodservice business Anchor Food Professionals sponsored the chefs.

Prior to heading to Germany they honed their skills and menu at regional ‘feasts’ up and down the country, and practiced their cold table presentation.

NZChefs’ president and chef de mission to the NZ team, Graham Hawkes, says the chefs “put everything into this competition.

“The food they served to a sold-out service wowed the guests and the judges, and gave them a real taste of NZ.” The chefs competing in the hot kitchen contest were Steve Le Corre, Mark Sycamore, John Kelleher, Darren Wright, Richard Hingston and Corey Hume, helped by kitchen

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DAIRY NEWS NOVEMBER 8, 2016

12 // NEWS

Co-op structure review likely PETER BURKE peterb@ruralnews.co.nz

REVIEWING THE Westland Milk chairman Matt O’Regan is stepping down early next year.

nature of its cooperative structure will be a challenge for Westland Milk

Products (WMP), says the outgoing chairman, Matt O’Regan.

O’Regan, after seven years service, will step down at the end of March 2017, as he has always intended on the appoint-

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ment of a new chief executive.

“It’s just time to go,” he told Dairy News.

His staying until March is for continuity of governance and to allow the new chief executive, Toni Brendish, to establish herself in the company and allow the board time to identify and plan its governance needs.

Westland Milk has so far retained reasonably pure cooperative principles, he says.

“But there are many types of co-op and… all co-ops will be challenged with ‘what does a co-op need to be in the 21st century?’ It’s one issue the future board of Westland is going to have to look at in the very near future.

“Under the new leadership and management team Toni Brendish will put around her they will re-look at the strategy and see what she wants to put in place. The cooperative structure will come into that and will be part of the progression of Westland.”

O’Regan says a highlight of his term as chairman has been seeing in change made by the co-op to diversify into more value-added products; about 30% of Westland’s products are now premium value add.

“Now to get the sales of these products in place; that is a massive task and there is still a long way to go.

“The other highlight for me is that Westland has devised its own farm excellence programme with similar aims to the Water Accord. This is not as prescriptive as the Water Accord on our shareholders, who have to deal with higher volumes of rainwater on their farms.

“Our system has given them some options to work with rather than a whole lot of rules that are not practical for our farmers.”

O’Regan intends to carry on dairy farming and will be a loyal supplier to Westland.

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missioning its new nutritional plant are being blamed for some of the financial woes suffered recently by Westland Milk Products.

The company suffered a $14.5 million net loss after tax for the financial year ended 31 March 2016.

Revenue fell by $51m to $588m, attributed to the weakness of the international dairy market and the continued global oversupply of milk – mainly from Europe.

Chairman Matt O’Regan says the problems were exacerbated by the strong $NZ against the $US. The move into higher value added products required new plant and the returns have not been as good as anticipated.

Delays in commissioning the nutritional plant, and the changing rules in China for nutritional products, made it difficult for Westland Milk to perform to its expectations, O’Regan says. General uncertainty is also a problem.

“There was a lot more competition from milk out of Europe so the nutritional one has been slow; the same with UHT. UHT from Europe especially has filled the gap we were looking to have a share of with our premium product in China and we are currently working on new markets and options for our UHT. “Overall, UHT has been disappointing and there is work to be done there to build the market so we can get the returns we need to benefit from our UHT plant.”

Westland has an office in China and while the results there were disappointing, it would have been worse had they not had a presence there, he says.– Peter Burke

DAIRY NEWS NOVEMBER 8, 2016

WORLD // 13

From Tasmanian farms to China TASMANIA WILL send

fresh milk to China from early next year.

The Chinese owner of the Van Diemen’s Land dairy properties (VDL Farms) will export brand ‘Van Milk’.

VDL Farms was owned

by New Plymouth District Council until March this year, then sold to Chinese businessman Lu Xianfeng’s Moon Lake Investments.

million litres of milk – 10% of VDL’s annual milk production – will be processed under contract

by Lion Dairy in Hobart, Tasmania’s only licensed export pasteurised milk processor with the scale Moon Lake requires.

VAN has been set up as a sister company to Moon Lake to market dairy products, initially fresh milk in 1L and 600ml cartons.

There are plans to include

mercial shipments we have forward sold 15 million yuan of Van Milk,” Shwe says.

“There will be a sophisticated marketing cam-

paign where buyers of Van Milk will have an opportunity to win a visit to Tasmania and see where the milk comes from,” says Shwe.

VDL Farms chief executive David Beca, Moon Lake Chairman Mr Lu Xianfeng and Moon Lake Managing Director Sean Shwe during a farm visit earlier this year.

Milking Robots they work for us.

“This is an exciting venture for our company and potentially for all Tasmanian producers.”

– Sean Shwe

Fresh Tasmanian milk will be packed for the Chinese markets.

yogurt and other products for the Chinese market.

Moon Lake has engaged two freight logistics companies – SRT Logistics (cold freight and storage in Tasmania) and national firm Link Logistics (quality control of the milk during flights to China) to guarantee “chain of custody” and quality of the milk from the cow to the carton to the consumer.

This will get VAN Milk status as a high value product in China.

“We’ve chosen Beijing and Ningbo for initial marketing because Ningbo is Mr Lu’s hometown and he has established networks to sell the product. Also, the city has among China’s highest average incomes and is less saturated with western products than, say, Shanghai.

“Even before we have started com-

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Moon Lake managing director Sean Shwe recently unveiled the Van brand and details of the company’s plans to fly fresh milk direct from Hobart Airport to Ningbo in China.

Three shipments of Van Milk have been sent to China in the past three months for testing, as ruled for export products to the country. Now regular shipments can begin from this, Australia’s biggest dairy property, on Tasmania’s far north-west coast. It has the cleanest air in the world, Moon Lake says.

The company is negotiating with several airlines and airports to initially fly weekly from Hobart to Ningbo, starting in the first quarter of 2017. It hopes to increase the frequency to two-three times per week in 12 months.

This will open Tasmania’s first regular international air freight route to Asia.

“This is an exciting venture for our company and potentially for all Tasmanian producers of fresh, perishable produce such as seafood, fruit and vegetables,” says Shwe.

About 10

DAIRY NEWS NOVEMBER 8, 2016

14 // WORLD

Oz milk price index in the pipeline EMBATTLED AUSTRALIAN dairy co-op

Murray Goulburn’s embattled chairman Philip Tracy is stepping down.

Murray Goulburn says it is willing to work with other processors on a commodity milk price index.

The co-op is facing pressure from politicians

and farmer shareholders for a more transparent milk pricing scheme after it was forced to claw back money paid in advance to suppliers.

The Federal Government says a commodity

Backing the future of dairy We’re committed to supporting the dairy industry and our New Zealand farmers through the highs and lows. Our farmers deserve to be recognised, that’s why we’re proud to sponsor the New Zealand Dairy Industry Awards.

Find out more and apply at westpac.co.nz/nzdia

milk price index is the way forward.

Speaking at MG’s annual meeting last month, outgoing chairman Philip Tracy said the co-op will join other members of the dairy industry to explore ideas for improving Australia’s pricing transparency.

“This includes introducing the proposed commodity milk price index, which should be independently managed and tailored for the benefit of all participants.”

Milk price transparency has attracted intense interest from suppliers, government and other stakeholders this year.

Tracy says the MG board wants a review of the current annualised milk pool process to see if it is fit for purpose.

“This is particularly important given the coop’s reliance on global markets, where we are seeing increased volatility.”

This volatility has resulted in two price stepdowns in the past eight years against a total of three step-downs in the co-op’s 66 year history.

Tracy says as a co-op, MG’s objective is to maximise the farmgate milk price paid to suppliers; it typically announces a forecast full year final milk price and then pays 90-92% of the final price

as the opening milk price.

This supports supplier cashflows and responds to the intense competition for milk in the Australian market, which motivates processors to pay the highest possible opening price.

But this mechanism has proved problematic twice in the past eight years, he says.

“In New Zealand the opening price is traditionally a lower percentage, between 60-70%, of the forecast final farmgate milk price. This reduces the risk of a price reduction during the season. It also means NZ dairy farmers do not have the same level of cashflow at the start of the season.”

He says in Europe, the mechanism is different again: dairy farmers are quoted milk prices monthly. This more accurately reflects monthly market conditions but hinders farmers’ ability to forecast the financial year.

Each of these approaches has advantages and disadvantages, Tracy says. “So MG must take the opportunity to review the best approach, to ensure the business sends the right market signals, while also balancing farmers’ need for cash against what the market is paying.”

This review will require input from suppliers, Tracy says.

QUITTING, SORRY

Westpac New Zealand Limited.

JN14752

THE CHAIRMAN of Australia’s largest milk processor is stepping down.

Murray Goulburn chairman Philip Tracy says he will remain chairman “for as long as is required to effect an orderly transition to a new chairperson”.

Speaking at MG’s annual meeting last month, Tracy again apologised for the financial crisis facing farmer shareholders.

“I want to again express how deeply sorry I am that MG suppliers have had to endure such a heavy burden.

“As your chairman, I am responsible for the stewardship of MG and therefore ultimately accountable for its performance. While as a board we did what we could with the information we had at the time, we know the outcomes of that period have been devastating for suppliers and for that we are deeply sorry.”

Check out the latest news and information at www.dairynews.co.nz

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DAIRY NEWS NOVEMBER 8, 2016

16 // OPINION RUMINATING

EDITORIAL

Will the China bashing stop?

MILKING IT...

Seaweed?

NEW ZEALAND’S methane gas emission woes could be addressed by a knight rising from the seas.

A Canadian researcher at James Cook University in Queensland, Rob Kinley, has found the seaweed species Asparagopsis taxiformis reduced methane by 99% in a laboratory.

The seaweed species has a natural defence against predators in the ocean, and that mechanism has a direct relationship to the bug in the rumen of cows and sheep, says Kinley.

Livestock is one of NZ’s biggest climate change issues: the methane they emit makes up almost a third of the country’s greenhouse gas emissions.

Oz fresh milk warning

COULD AUSTRALIA soon be importing milk from New Zealand? Yes, say some beleaguered Australian dairy farmers; they recently warned a Senate inquiry this could be the outcome of the crisis enveloping their dairy industry.

Voluntary group Farmer Power has joined calls for a A50 cent/L levy on milk to help farmers struggling against the pricing policies of big supermarkets and the clawback schemes of Murray Goulburn and Fonterra.

Farmer Power argues that raising the supermarket price of 1L of milk from $A1 to $A1.50 would return it to 1980s levels.

Paid more to do less

EUROPE IS trying to rein in milk production by its 52,000 dairy farmers by paying them to not produce milk.

Farmers have rushed to get the cash ‘carrot’ -150 million euro (NZ$233 million). Agricultural commissioner Phil Hogan predicts this will cause production to fall at least 2% by late 2016, after four years of continuous increase.

It’s a last resort, said an EU official, after an earlier attempt to rein in the farmers failed. Each farmer who applies will milk 20 tonnes less (average) and will get 2800 euros (NZ$4363) compensation.

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Magic potions

COWS ARE sacred in Madgascar, the fourthlargest island in the world.

A zebu – a type of humped cow – is precious, sacrosanct even, and integral to the Bara tribe’s economy. Their cattle must be protected at all costs, and are traditionally guarded with axes and spears.

The tribe goes to amazing lengths to guard their cattle, using potions to ward off thieves. One, called Too-ja-ka (‘to spread’ in Malagasy), causes cattle to run from approaching thieves.

Another, (Si-ham-ba-laha-fa), results in cattle dying as soon as they reach a thief’s kraal. And there’s even a potion to make cattle and their owners bulletproof.

KPMG’S LATEST research report on foreign direct investment in New Zealand gives perspective to much of the uninformed hype over this issue, in particular the emphasis on China’s role.

The report shows that of the $26.3 billion invested in NZ in the past two years the Chinese have invested $1.3b in dairy and milk processing.

While China is still a big investor it falls well behind the US, Canada, Australia and Europe and only just heads off Singapore.

In land purchases, again the US (40%) heads the list, then comes Europe (14%) then China (13%).

Yes, China is a big investor in NZ, but it is not the biggest.

Perhaps China’s liking for our high profile, and quite sensitive, dairy industry is the cause of the feathers – especially political – getting ruffled.

Have Kiwis an inherent fear of China? This will suddenly switch to the US if Donald Trump by some amazing streak of stupidity gets elected as president.

We have not reacted to British investment after seeing that country doing itself bewildering self-harm by voting for Brexit.

Look at our neighbours Australia. A wave of Chinese investment in agriculture, housing and public infrastructure assets has also caused concern. Last year Canberra reduced the threshold at which purchases by foreign investors of farmland must be cleared by regulators from A$240m to A$15m.

New Hope is one of dozens of Chinese companies that have invested in Australia’s agricultural sector over the past few years.

Chinese companies now own about 1.5m hectares of farmland.

While that is less than 0.5% of Australia’s agricultural land, polls show rising public angst over sales of land to Chinese companies.

In response, authorities have tightened foreign investment rules and this year blocked the proposed A$370m purchase of Kidman & Co by Shanghai Pengxin Group.

The KPMG report shows overseas investors view NZ agribusiness as a good place for their cash. They are not obliged to put it here, they can easily go elsewhere.

They target the dairy industry in particular, well ahead of forestry and wine and, to a lesser extent, sheep and beef.

If NZ is to produce high value niche products, it needs capital but the pool of capital here is insufficient to advance the cause.

Kiwis should be pleased that others can see opportunities for us to refine our base products and make them the Louis Vuitton’s of the food industry.

NZ still finds it hard to get away from producing commodities, sadly still lording that aspiration – a hangover from the days of the ‘number 8 wire’ mentality. Fred Dagg had it right: “we don’t know how lucky we are mate”. Right Trev?

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DAIRY NEWS NOVEMBER 8, 2016

OPINION // 17

Mishmash calf video sly attempt to mislead prosecutions in court.

Farmwatch’s recent video showed three scenes of truck HELPING SOME reporters drivers loading calves: what – and the general public –­ appeared to be a farm worker understand what was going on dragging a calf across a paddock by with the recently released bobby its rear leg, two scenes of farmers calf video made by Farmwatch was in a paddock loading calves into a trailer, a scene of two people on a at times frustrating.

I wasn’t happy with some of the quad driving up a tanker track with coverage, in particular some of my calves in a trailer, and two scenes comments being cut-and-pasted of dead calves waiting for pickup.

I said I considered the loading and put in the wrong context.

In some cases I was trying to of the calves onto trucks to be on explain my views to reporters who the rough side. With mandatory hadn’t even watched the videos. use of loading facilities next So I want to set the record straight. year, these sort of scenes should Some media combined video hopefully be a thing of the past.

The calf being dragged was from last year with video made this year. My comments were made unacceptable handling. If I saw only about the video covertly that on my farm I would give the filmed in August this year and employee in question a severe dressing down, and it’s likely released in October.

I said last year that I was disciplinary action would follow.

About the calves being loaded disgusted by the 2015 scenes that quite rightly ended up with onto calf trailers in the paddock, ANDREW HOGGARD

Find a better cow I WAS disappointed in the photograph (July 12, p30) of a black and white cow used in your calving article.

We started dairy farming 45 years ago and had cows like this one, which came with the farm. After one year of milking them we sent the whole herd to the freezing works and bought good type cows with good udders, correct teat placement, strong loins, sound legs and feet and of good dairy quality.

Cows with the above qualities have lasted the distance; many cows in the herd are 14 years old and more. Looking at this disgraceful cow in your paper, it’s no wonder the NZ lifetime average is only about three lactations and only 370kgMS/cow.

This cow has a very weak central ligament resulting in wide rear and front teat placement. Her front teat placement is extremely wide, with the teats at the side of the udder rather than underneath – ideal for calf rearing but not for milking machines.

The udder is too deep, with the floor of the udder below the hocks.

NZ has almost five million dairy cows; surely there is a better cow somewhere to feature in such an article. I suggest you ask Holstein Friesian NZ for a photo of a 2016 model black and white cow.

Brian Perkins Southland

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those farmers didn’t do anything that I don’t do myself. They carefully placed the calves in the trailers. Any reader who feels differently should let me know.

About the quad towing the trailer, I didn’t see any animal abuse.

WorkSafe might be upset at the two people not wearing helmets but MPI shouldn’t have an issue.

As for the video of the slinks, we all know that despite our best efforts calves will die during calving. None of the calves in the video showed any signs of being euthanised; they had died naturally. It is unfortunately a reality of farming.

If farmers are afraid of putting slinks out for collection, how is that a good thing?

It will result in calves being buried on farms, which is a waste and not the best for the environment.

So while some of the video showed poor and rough handling, the rest was common farm practice. This is an extremely important nuance that has been missed.

To broadly condemn all the video, labelling it all as showing cruelty, would mean condemning the practice of separating calf from mother.

Mashing up video of standard farm practice with examples of cruel or rough behaviour is an attempt to mislead, and portray all farming as cruel. So it is extremely important this nuance is highlighted.

Federated Farmers will always condemn animal cruelty where it occurs.

• Andrew Hoggard is Federated Farmers dairy industry group chairman. @dairy_news facebook.com/dairynews

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DAIRY NEWS NOVEMBER 8, 2016

18 // AGRIBUSINESS

Positive steps amid lowest payout ever FEW FARMERS will be surprised to to cover costs.

The previous 2014-15 season had been know that the 2015-16 season was the somewhat buffered by the $8.40/kgMS most challenging year yet for them.

Figures released at DairyNZ’s annual price of 2013-14.

Nationally, dairy farmers produced meeting in Ashburton last week show the 2015-16 milk price of $3.90/kgMS was the 1.862 billion kgMS, worth $8b in 2015-16.

The industry’s milk prolowest in ten years and it duction benefited the NZ hit farmers who last season economy by $12.2b from were on average operatdairy exports in 2015-16 and ing at a break-even cost of provided around 35,000 $5.25/kgMS. full-time jobs on-farm and DairyNZ board chair a further 14,500 jobs in milk Michael Spaans says processing and wholesaldespite an obvious shorting. fall in farm income, last DairyNZ chief executive season farmers worked to Tim Mackle says 2015-16 cut their costs of produc- Michael Spaans was another busy year for tion.

“Our data shows farmers have become DairyNZ, which spends in the industry more efficient and fine-tuned their farm the $67m levy it gets from farmers, plus management – so much so, that in August extra government and commercial cash.

“Spending farmers’ money in a wide we revised the average farm’s break-even cost down to $5.05/kgMS for 2016-17,” range of programmes is designed to deliver direct benefits for farmers and the Spaans told the meeting.

“This is a rare positive from a period industry as a whole,” says Mackle.

“While each year we focus on supportof low milk prices, and farmers should be immensely proud of it. Farmers’ ability to ing farmers through immediate issues sharpen their pencils and remain focused such as managing the low milk price, is the key to maintaining our industry’s we also maintain our long-term work in research, environmental management international competitiveness.”

The 2015-16 challenges were com- and our workforce.”

This coming year, $16m will be spent pounded by the low milk price in 201415. With no significant retrospective on farm profit, biosecurity and prodpayments from the previous season, uct integrity. Environmental work will many farmers in 2015-16 increased debt receive $12m.

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Hedging decisions risky WITH AN 80% likelihood the Reserve Bank will lower the official cash rate by 25 basis points next month, many rural borrowers are wondering if now is the time to look at fixing rates, says Crowe Horwath spokesman Hayden Dillon.

He cautions that with markets still volatile, it is risky to make hedging decisions based on economists’ advice.

“Even with another cut appearing imminent, the market appears to have little appetite for more,” he says.

“Inevitably talk will begin about when rates may start to go up.

“Many rural borrowers are now looking at an interest rate curve that is still relatively flat, and are thinking now could be the time to take some cover. But there are variables you need to be aware of.”

In this new era of banking, banks are being set higher hurdles by regulators to maintain their stability. Some banks have added extra clauses to lending agreements. Dillon advises

rural borrowers to ask the right questions and fully understand all the relevant clauses before accepting bankers’ fixed rate offers.

“Understand exactly what you are agreeing to before signing for any fixed rate deal. Since the global financial crisis lenders have adjusted clauses in fixed term rates to provide themselves with more flexibility to exit the loan if they are not comfortable with the credit conditions.

“In the event your credit position deteriorates, some contracts will allow the bank to exit the fixed loan, and any costs are borne by the client. So you must fully understand exactly what your agreement with your lender means.”

The global financial crisis also brought in new central bank regulations from the government for banks to comply with.

While these changes have created legitimate additional costs, they should not be used as an opportunity for banks to obtain a few extra points

at the borrower’s expense.

“You need to ensure there is transparency in your pricing. Whatever your credit position, you want to ensure you are getting the best possible outcome for your business.”

There are various ways to do this and Dillon says the best way will depend on the business’ credit position and the type of lending facilities being used.

“Each bank has its own yield curve; this means that even though you may have the same credit margin as your neighbour, each bank has a different cost of funds for the lending so your ‘all up rate’ will be different.”

Given risks such as Brexit, farmers should work on their own hedging strategy, taking into account those risks and their ability to manage them.

“Once you ask yourself ‘what if’ questions to assist in establishing a hedging framework, you will find it easier to act proactively, rather than being reactive to market commentary,” says Dillon.

UK visitors learn Kiwi genetics CRV AMBREED has shown

members of the American Forage & Grassland Council how a hybrid farming system on a client’s Waikato farm is making the most of Kiwi cow genetics.

The group was in New Zealand attending the recent NZ Grassland Association Annual Conference in Timaru.

CRV global product manager grazing Peter van Elzakker hosted 22 council members, led by University of Georgia College of Agricultural and Environmental Sciences associate professor Dennis Hancock, on CRV client John Pouls’ dairy farm north of Te Awamutu. Hancock had met van Elzakker through CRV US. Pouls, a user of CRV Ambreed genetics for 40 years, milks 250 cows on 65ha; the farm uses a Herd Home for feeding the herd and collecting effluent for fertiliser.

Pouls aims to feed about 22kgDM/day; about 60% is fresh grass, and the rest is a mixed ration of grass silage, maize silage and beets delivered to the Herd Home.

In the winter the dry herd stays inside the shelter.

The Herd Home captures the herd’s effluent which is applied to the land as required, so no extra nitrogen and phosphate needs buying.

The farm calves 100 in spring and 100 in autumn. Production per cow is about 600kgMS. “The visit with CRV was to give the American group a balanced view of how and what genetics fit into grazing systems,” van Elzkker says.

“In the US they build their system around the cows and genetics they have there. We are also system-focused, but in New Zealand the cow has to fit into the farmer’s

chosen system. John’s hybrid system is a great example of the average grazing system you will encounter in the US.” Hancock says van Elzakker, through CRV US, had helped educate US farmers about systems such as the Pouls operation.

“There’s been a challenge to the supplement-led system in the southeast over the last seven or eight years, thanks to the volatility in international dairy prices,” Hancock says.

“We are seeing more farmers moving towards hybrid systems like the Pouls operation to reduce costs, because expenses are high in a supplement-driven system. Most of our group is here to get a sense of the Kiwi model.”

The Americans’ travel was organised by AgriTravel managing director Karen Baldwin.

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DAIRY NEWS NOVEMBER 8, 2016

MANAGEMENT // 19

Farmer network key to knowledge transfer PETER BURKE peterb@ruralnews.co.nz

PEER TO peer is the

best way to get farmers to change to new systems and technologies, says an Irish researcher.

Dr Michael Gottstien works for the government research organisation Teagasc and specialises in knowledge transfer.

He says research by his organisation shows that

“Knowledge exchange and getting people to change is a slow arduous process, not something that happens overnight.

Because humans are not programmed to always do what is best or most profitable and we have a diversity of people in the sector.

“Some farmers adopt technologies quickly; in fact some industry leaders are probably ahead of some researchers even in developing technology

you.’ The student replied, ‘no, you don’t have 20 years experience, you have one year of experience which you have repeated 20 times.’ “ Gottstein says many farmers are afraid to do

something new because it might not work, and some situations require spending on infrastructure and technology and a change in their work practices which they are not prepared to make.

Irish Government researcher Dr Michael Gottstien.

“Our scientists are increasingly involved in knowledge transfer; they come along and participate in our knowledge transfer events.” a multi-prong approach to knowledge transfer is required.

He says Teagasc is turning to social media using Youtube, Twitter and Facebook to engage and communicate with farmers. There is no point in just publishing research findings in a newsletter and hoping farmers will pick it up.

Unlike New Zealand (as it once was, this writer insists), Ireland with Teagasc has an integrated organisation which delivers rural education, farm advisory services and research. Gottstein says this system has many distinct advantages.

“Our scientists are increasingly involved in knowledge transfer; they come along and participate in our knowledge transfer events. These teachers who are teaching best-practice to the new generation of farmers are getting them involved in discussion groups.

“And our advisors are in one-on-one contact with them. And we have monthly newsletters, seminars, open days and a better-farm programme where we bring these technologies out onto commercial farms including dairy.”

Gottstien says multiple technologies are commonly used nowadays to convey information. Farming media in Ireland similarly make video clips and tweets as well as publishing in newspapers.

ideas.”

But Gottstien says despite the benefits clearly evident in new ideas and technologies, farmers, like others in society for whatever reason, see no reason to change. For example, people who smoke or are obese know the health risks but still don’t change because they are comfortable with it.

“It’s the same for farmers. If a farmer has a lax grazing regime and is not making the best use of grass, he gets along by feeding concentrate at particular peaks. That might be his comfort zone rather than having to start investing in extra paddocks and fences and then having to decide regularly when to move stock and when fields need fertiliser, as opposed to having a more relaxed stocking rate but not much profit.”

Gottstein says trying to get farmers to adopt new technologies is a worldwide problem for many reasons. The prospect of better returns is not always perceived as a benefit. Lifestyle is sometimes a counter to this; then there is culture, tradition and humans being creatures of habit.

“There is a famous story around here about a farmer who got a NZ student on his farm who used to question what the farmer was doing. One day the farmers said, ‘look I’ve been doing this for 20 years; stop telling me what to do and do what I tell

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DAIRY NEWS NOVEMBER 8, 2016

20 // MANAGEMENT Michael Phillips of Waka Dairies, Dannevirke, with his on-farm culture laboratory.

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from cow to cow.

Some mastitis bacteria ‘go away’ by themselves, shooed-off by the cow’s immune system, but other mastitis pathogens will not respond to an antibiotic, and some are not even bacteria.

Just as the bugs causing the problems vary, likewise treatments are not equal; some are broad spectrum and include large quantities of antibiotic unnecessary for most cases of mastitis; some are better than others at targeting pathogens. Some mastitis cases are painful and require a non-steroid anti-inflammatory drug for cow comfort.

It is essential to decide with your veterinarian how you will respond to cases of mastitis to ensure best results. Cow age, previous treatment history, yield and physical symptoms must be considered, along with on-farm culture results.

Some key points to consider when using onfarm culture are: ■■ Is the cow sick? 95%+ of the time a cow is not sick with mastitis. Cases generally don’t get nastier. If a cow is not sick you have time to measure what you have. If a cow has acute symptoms, take a sample for culture, but consult your vet for treatment advice without delay.

■■ How to take a sample.

Take a clean sample to avoid wasting time and money. A clean sample gives you an indication of how clean you need to be when handling other teat products such as dry cow, teat seal and intra-mammary drugs.

■■ A short video on how to take the sample can be seen at www.farmmedix.com ■■ Identification of bacteria is important information. On-farm culture (or taking a sample to your vet to culture) will identify the bacteria involved in the case, drastically increase your chance of success with treatment, tell you if treatment is necessary and give you information about how this case came about.

■■ Like cliques of people, bugs tend to hang out in rather specific places; if

you find out what bugs you have, your vet can advise you where your problems might lie, to help you prevent mastitis.

■■ Develop treatment protocol. Using the wrong antibiotic increases the likelihood of the case not being resolved. Be sure to discuss protocol with your vet: have him/ her engaged to get best results and make sure you are on the right track.

■■ Get your treatment right to avoid creating problems. The presence of antibiotics doesn’t mean you don’t need to be clean.

Cleanliness is essential when using any dry cow, intra-mammary or injectable remedy.

Never wipe teats with paper towels or rags from the parlour; wear clean gloves and use alcohol swabs.

■■ Know when to stop.

Sometimes antibiotics simply won’t work; some bugs are highly resistant to treatment and, worse, some are tough and highly contagious. Knowing what you have is the key.

Identifying a case of contagious mastitis will ensure you can develop a protocol with your vet for all your treatments, and will help you to prevent spread to other animals. Whilst sometimes this might mean a bit of short term pain, the long term gains are realised quickly once strategies are in place.

■■ Mastitis costs more than just the drugs.

Cows with subclinical mastitis are less likely to get in calf and have lower milk yields and higher SCC than ‘clean cows’.

■■ Strive for excellence. A 100,000 cell count herd has about 20% of cows with subclinical infections.

■■ Adopt contagious cow strategies. When Staph aureus has been cultured from your herd, it is likely there are more cows infected. Ask your vet for more information.

A short video on how to use on-farm culture can be viewed at: www.farmmedix.com • Natasha Maguire is a director of Farmmedix.

DAIRY NEWS NOVEMBER 8, 2016

MANAGEMENT // 21

Fertilising on a budget ANT ROBERTS

THE NEW Zealand farmer can be sure

that in some years his income will be high and in others it will be low -- while costs keep climbing.

Historical information suggests fertiliser is a major expense in most farm budgets but is often treated as a discretionary expense, cut during downturns in the farming economy.

While your families, the bank manager and accountant all need to be looked after, your decision to cut fertiliser spending should be well researched and justified.

The temptation will be great to reduce or forgo fertiliser to help balance the books.

For hoof health and increased immunity…

late your fertiliser policy and understand what the positive or negative consequences will be. Looking on the bright side, because fertiliser represents a large input cost, it deserves time and effort to nut out exactly what your response to the current cost:return relationship for your farm will be.

The infographic attached shows the general mismatch of animal requirements relative to pasture growth (in this case with no irrigation), and shows pasture deficits in winter/early spring and summer. These deficits are greater when soil fertility is sub-optimal because wet, cold and dry soil conditions restrict the ability of soil biological and chemical processes to keep nutrients cycling in soils and plants growing.

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Belt tightening options and advice to get the best from fertiliser spending: 1. Soil and herbage (when pasture is growing well) tests to identify soil fertility levels for major and trace elements. a) dairy: consider ‘whole-farm testing’ to determine areas requiring capital, maintenance and sub maintenance rates of lime and/or fertiliser nutrients. b) mixed livestock: consider dividing the farm into land management units (LMUs) based on slope, aspect and topography factors which affect production. Soil test these LMUs separately to develop a differential fertiliser and lime application plan to maximise the return from your spending.

2. Reducing applications of one nutrient can have a domino effect.

3. Identify planting areas for winter or summer forage crops early.

4. Use nitrogen fertiliser tactically to fill predicted feed gaps when climatic conditions allow.

Fertiliser nutrients are a key input to develop productive, quality feed for your livestock. Most NZ soils do not have a significant ‘natural’ supply of important mineral nutrients to develop and sustain the production of quality pastures in the long term. If you are prepared for some reduction in farm performance to survive, then reducing or ceasing fertiliser application should only be considered a very short term solution. Ideally, you should then catch up when financial conditions improve.

• Dr Ants Roberts is Ravensdown chief scientific officer.

.n

In this case, the wise words of my woodwork teacher at high school, “measure twice and cut once”, spring to mind.

Lessons from the past If we do not learn from history, we are doomed to repeat it. Most NZ soils are inherently deficient in nitrogen (N), phosphorus (P), sulphur (S) and to a lesser extent potassium (K), and some trace elements, e.g. molybdenum (Mo), copper (Cu) and boron (B), for growing pastures and forage crops.

The early settlers discovered that the natural fertility and residual nutrients released from ash and organic matter after they had felled and burned vegetation was soon depleted by farming introduced pastures and crops. Farmers quickly learned that lime and fertiliser greatly improved the success of their crops, but not until the 1920s was much fertiliser applied.

Also, the NZ climate was found very favourable for clover growth, enriching the land. There were few pests and diseases to attack the clover (unfortunately not true today), so pastoral farming began to flourish based on pastures of mixed grasses and clover on which livestock could be grazed year-round.

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DAIRY NEWS NOVEMBER 8, 2016

22 // ANIMAL HEALTH

Fertility on the rise BETTER BREEDING

is shown to be raising the fertility level of Holstein Friesians, say the breeders.

Twenty-five years ago, fertility in black and white herds was declining, says Holstein Friesian NZ. But selective breeding by farmers and scientists has caused the breed’s fertility averages to steadily gain ground relative to other breeds.

The genetic trend of fertility is improving at a 1% better in-calf rate per decade across all breeds, and Holstein Friesian has the steepest rate of improvement, the group says.

Over the three most recent dairy season reports, Holstein Friesian calving intervals are now within 0.2 of a day of the overall dairy cow average, says Bill Montgomerie, former

New Zealand national genetic evaluations system manager.

“Short calving intervals indicate high fertility, and Holstein Friesian’s average is 368.7 days over the three most recent dairy season reports, up against the overall dairy cow average of 368.5 days,” he says.

“The average calving interval of NZ Holstein Friesian cows is virtually the same as the average of all NZ dairy cows.

“As well, the average fertility BV for the 2012born Holstein Friesian cows was +1.1% for calving in the first 42 days of the calving period, while for all the other cows it was +1.6% (referenced against the 2000 genetic base).

“This equals one less cow calving per 200 cows in the first 42 days of the calving period – a very small loss.”

The belief that Holstein Friesians have a female fertility problem is simply not true, says Cherilyn Watson, general manager of Holstein Friesian NZ and World Holstein Friesian Federation council member.

“In the 1990s, the daughters of imported Holstein Friesian sires had poorer fertility than those of local Holstein Friesian sires, but this problem has been addressed,” she says.

“Two things have happened since then.

“Firstly, the poor fertility cows did not breed on, and by the early 2000s effective genetic information on fertility became available, allowing breeders and breeding companies to use sires with satisfactory daughter fertility.

“One need only look at the statistics to realise the

reproductive performance of Holstein Friesians will surpass the average of all other cows in the very near future.” @dairy_news facebook.com/dairynews

Holstein Friesian fertility is on the up.

PHOTO: SHERIDAN STEINER

Manage TB risk this season FARMERS BUYING, selling or leasing bulls this season need to manage their TB risk, warns Ospri, manager of the TBfree scheme.

Dr Gillian Atkinson, area disease manager at Ospri, says that the movement of bulls to sales and between farms carries some disease risk.

The potential impact of TB on a farm business makes it important

to check the animal status declaration (ASD) that registers an animal’s TB status and provides a traceable record for every animal recorded in the NAIT system.

Bulls must be accompanied by an animal status declaration form.

Make sure you send and receive yours and check that the TB section is complete, Ospri says.

This records the last TB test date

and the TB status of the herd. All cattle moving from a movement control area must have been TB tested within 60 days prior to movement.

Bulls being sold or leased as service bulls may be tested as part of the TBfree scheme provided they are aged 12 months or older and have not been tested within the last six months.

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DAIRY NEWS NOVEMBER 8, 2016

ANIMAL HEALTH // 23

Are your heifers reaching the correct weight?

THE FUTURE reproduc-

tive and lactation performance of your herd relies on the optimal management of heifers from birth.

The typical cost of rearing a heifer from birth until first calving at 24 months of age is $13001500, excluding labour costs. Growing heifers well allows them to reach sexual maturity at an earlier age, allowing earlier breeding which results in a younger age at first calving. The cost of rearing a heifer is reduced if her age at first calving is reduced.

It is also critical that heifers calve without difficulty, perform well in the dairy and get back in calf easily during their first lactation.

Australian data collected from a year roundcalving herd showed that the optimal age at first calving was 24-30 months, as these heifers had the highest first lactation production, highest estimated lifetime production and maximum days of productive life. Heifers calving for the first time at age 30 months or older had decreased first lactation production and fewer days of productive life.

With more heifers entering the herd, the overall herd age will be younger. Younger animals tend to be more fertile and have fewer milk quality issues than older cows as they have had less opportunity to develop mammary infections. A younger herd age also allows selective culling of older animals and any excess heifers can be sold locally or globally as an alternative source of income.

What is the correct weight?

The target body weight for a heifer at her first calving is 85% of her mature body weight. This will vary with breed and genetics. For example, if the average ‘ideal’ mature cow in a herd is 600kg, a heifer should be calving at 510kg. And if the average ideal mature body weight is 650kg, then heifers should be calving for the first time at 552kg.

Heavier heifers at first mating are more likely to show sexual activity than lighter heifers. Therefore decisions on first mating should be based on body weight, not on age. In seasonal and split calving herds, heifers at first mating may be 13-15 months of age. This means the youngest animal in the group must be sufficiently grown for her to have the best chance of getting in calf quickly and easily.

The target body weight at first mating is 60% of her mature cow bodyweight. Commonly, smaller heifers are ‘carried over’ to a younger group so they have more time to grow out prior to first mating. This delay means increased age at first calving which significantly reduces profitability as the heifer has taken more time and money to rear.

Long-term benefits After first calving, heavier heifers are more likely to show a heat prior to mating start date and have better first service conception rates than lighter heifers. They also have fewer calving problems and have better transition into the milking herd.

The impact of body weight on lactation performance has also been demonstrated. Research has shown that a 50kg heavier heifer at first calving will produce an extra 1041 litres of milk, 38.5kg butterfat, 42.5kg of protein over the first three lactations. In addition to the positive effects on reproductive and lactation performance, heifers with a heavier body weight at first calving live longer than poorly grown heifers.

This is likely due to their improved fertility and fewer health problems.

How can I help my heifers to achieve this?

An objective assessment of heifer performance can be achieved by monitoring growth between weaning and first calving. This ensures that the average daily gain of heifers can be monitored so that they can achieve their target weights at the critical times of first mating and calving. Small

heifers can be identified early, allowing intervention to reduce the risk of them being carried over to a younger group.

Routine animal husbandry procedures such as vaccination and drenching

can be carried out at the same time as weighing to reduce any additional handling or stress.

It is worth discussing heifer performance with your veterinarian to enable correct analysis

and interpretation of the data and accompanying nutritional advice.

Source: Heifers on Target, Dairy Australia, 2013.

• Gemma Chuck is a vet with Apiam Animal Health Ltd in Victoria.

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DAIRY NEWS NOVEMBER 8, 2016

24 // EFFLUENT & WATER MANAGEMENT

Big bag better way to handle greenwash AN AWARD winning

effluent storage ‘bag’ new in New Zealand is an effective alternative to open ponds or tanks, says distributor TechniPharm.

The 15,000m3 bag (or bladder) was developed

in the Netherlands to comply with regulatory demands for farms to cut greenhouse gases, and to help recover more nutrients and energy from animal waste.

Originally designed for

sludge, the Ecobag in NZ is seen as ideal for holding dairy yard-wash water.

It has been used 60 years in many countries and is certified internationally for farm use, Technipharm says.

A 3D picture of the new Ecobag R System.

A newly commissioned Ecobag system on a Rangiora farm.

The Ecobag recently won an innovation award at the Eurotier animal production exhibition in Hanover, Germany.

Technipharm suggests using it to handle ‘greenwash’, either with the company’s Dungbuster greenwash system or with flood washing.

A Rangiora farm recently commissioned such a system: the new conversion has two Ecobag systems -- a 1000m3 system for collection and re-use of greenwash, and a 3000m3

system for longer term storage and re-injection into the irrigation system.

This 4000m3 Ecobag system was preferred over a 7000m3 open pond system originally recommended, Technipharm says. The bag will increase the farm’s nutrient recovery, increase its N efficiency and reduce its fresh water

use.

Meanwhile another Technipharm development is the Flextank effluent storage system specifically for peat and unstable ground.

This simple ‘roll out’ and pump system allows rapid installation of effluent storage without a lot of extra cost, the company says.

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EFFLUENT SEPARATORS

EFFLUENT MANAGEMENT

DAIRY NEWS NOVEMBER 8, 2016

EFFLUENT & WATER MANAGEMENT // 25

Pontoon deaths show need for pond safety TWO DAIRY farm work-

ers died between 2009 and 2011 while servicing pumps on pontoons floating on farm effluent ponds.

One drowned when the pontoon he was standing on capsized, trapping him underneath. Another was crushed when he was trapped while working on a pontoon which became unstable.

Typically a floating pontoon is not designed for a person to stand on.

Manufacturers usually recommend removing a pontoon from a pond or securely tying it to the side of a pond before servicing is attempted.

But pontoon owners have sometimes found such steps impracticable so have installed walkway access to the pontoon.

Any such modification, to be safe, depends on the pontoon remaining stable when the weight of the walkway structure and farm workers with equipment get aboard.

Such design and modification should be done by a qualified person. The pontoon maker or supplier should be consulted before modification is attempted.

Effluent ponds present a range of hazards to farm

workers, so farmers must act to protect employees and others working around ponds.

Working on a floating pontoon is a serious hazard, because of the capsize risk. A means of rescuing a person who falls into a pond is essential.

Do not work on a floating effluent pontoon.

Instead consider options such as: • Removing the pontoon from the pond for servicing • Securing the pontoon at the side of the pond • Doing the servicing when the pond level is low and capsize is impossible • Fit automatic greasing components to reduce the frequency at which access is required.

A pontoon should have a suitable lifting point for getting it out of a pond, and a lifting device sufficiently heavy, powerful and stable to deal safely with the pontoon’s weight. The lift point design should not require a person to board the pontoon to attach the lifting device.

In some cases it may be impractical to remove a pontoon from a pond for pump and stirrer servicing.

If work on a floating

WORKER SAFETY Ways to ensure the safety of employees working on effluent pumping pontoons or close to effluent ponds: ■■ Fence the perimeter of the pond and display clear signs restricting entry ■■

Ensure at least two staff are present during maintenance

■■

Ensure life jackets or similar buoyancy devices are worn by staff working on floating pontoons

■■

Ensure rescue lines and a life buoy are available around the pond.

pontoon is unavoidable, ensure it is stable, unable to capsize and has safe access.

This would typically require a 1m high handrail (top and mid rails) around the perimeter of the work-

ing area.

Farmers must be fully aware of the safe loading limits and related safety precautions for accessing and maintaining pontoons in service on their property.

Secure the pontoon before servicing is attempted.

DAIRY NEWS NOVEMBER 8, 2016

26 // EFFLUENT & WATER MANAGEMENT

Fail-safe monitor delivers three wins THE VALUE of effluent as a source of nutrients – not just a cost – is clearly a given.

But because nutrient management and environmental compliance must be finely balanced, a fail-safe effluent monitoring and control system is crucial, says agri technology firm Precision Farming, Christchurch, 12 years in the business.

It has this month released an upgraded effliuent monitor/controller with three innovations (detailed below).

The company comments that a true fail-safe monitor, at a minimum, relies on regular signal pulses from a wheel sensor being transmitted from an irrigator back to a pump, continually saying “everything is OK out here, I’m still running, so keep pumping; but if I miss two consecutive pulses or I

‘Traffic lights’ to show paddocks available for effluent application.

Precision Farming’s new 20cm colour touch screen for effluent monitoring.

go quiet, shut the pump down”.

That minimum operation meets compliance standards but is only part way there in terms of bestpractice precision agriculture.

Also needed is accurate understanding of nutrient load, when and where it is applied, and how its nutrient value is captured as part of NPK manage-

ment and reporting. That requires data about flow rate, application depth and concentrations.

The company’s new monitor/controller has the following features: 1. New 20cm colour touch screen on the pump cabinet.

The first innovation solves the often-expressed frustration with making adjustments to settings in

an effluent system at the screen, in the cabinet or in the dairy shed.

Until now, effluent systems have tended to use PLCs which present information on tiny, two-line dot matrix screens with adjustments being made by navigating a complex menu by releatedly punching up/down arrows.

Precision Farming says it has done away with the

manual lost amidst the stuff in the office.

Access to advance settings can be guarded, if required, by a password known only by the farm owner or area manager, while all statistics on irrigator performance remain readily readable all the time across the top of the screen. No more hunting through sub-menus to find irrigation stats buried in a tiny screen.

2. Low-power communications

PLC and replaced it with a modern 20cm colour touch screen. “That’s like changing from a Motorala brick cellphone to an iPhone 7,” it comments.

The clear, daylightreadable screen is intuitive, logical to follow and needs no instruction manual for day-to-day use.

And if a farm worker wants to look something up, the manual is right there in a help menu in the colour screen – no need to go looking for an instruction

Pluck’s Traveling Effluent Irrigators:

Until now, effluent systems have mostly used cellular or UHF/VHF for communications between the irrigator and the pump. Both of these constantly consume battery power at the irrigator.

Precision Farming says its innovation uses a tiny computer able to put itself to sleep, and wake up only long enough to send a split-second burst of data.

Being a computer, this means remote diagnostics, TO PAGE 27

NOW READ IT ONLINE

r Meet even the toughest New Zealand Effluent Enviro Standards r Have the Most Even Rain Cover over wetted width in New Zealand by far r Have a Rain Rate of 5mm or less across total wetted width, not just the centre area. (please see in the independently proved graph)

Applied Depth – No Overlap just 5 mm applied depth!

Test 1

Test 2

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Distance (m)

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❱❱ BREAKING NEWS ❱❱ MACHINERY REVIEWS

Farm owner and agricultural consultant Phill Everest uses Growsmart® Precision VRI to “kill five birds with one stone.” He’s able to improve the sustainability of his dairy operation while reducing its environmental impacts.

Phill sees the benefits in terms of track maintenance and grass growth as well as ensuring the availability of his water. The water he saves under one pivot can be redistributed to irrigate an additional 23ha of his farm.

FieldNET® integrates with Precision VRI to provide complete remote pivot management, with VRI control, monitoring and reporting.

“The first time using the new FieldNET tool for Precision VRI, I found it very easy. It was much simpler and quicker having just the one place to go to control my pivot and manage my Precision plans” Find out how you could benefit from increased water efficiency using Precision VRI with FieldNET by talking to your Zimmatic® dealer or visiting growsmartprecisionvri.co.nz

© 2016 LINDSAY. ALL RIGHTS RESERVED. ZIMMATIC, FIELDNET AND GROWSMART ARE REGISTERED TRADEMARKS OF THE LINDSAY CORPORATION.

READING THE PAPER ONLINE HAS NEVER BEEN EASIER

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

DAIRY NEWS NOVEMBER 8, 2016

EFFLUENT & WATER MANAGEMENT // 27

Students get wet handling water BAY OF Plenty Regional Council wel-

comed 200 primary students to its Hands on Water Expo last month at Redwood Valley Farm near Paengaroa.

The two-day expo allowed students to learn about freshwater ecosystems, processes and conservation, said general manager strategy and science Fiona McTavish.

“This is a great way for students to learn about their role in managing water resources sustainably, and increasing their knowledge of how water is monitored and used. Water quality and quantity are a community matter.”

The council joined DOC, Western Bay of Plenty Council, Tauranga City Council, Rotorua Lakes Council and Enviroschools to coordinate the event.

Activities, run by experts, included measuring water clarity and flow, matauranga Maori, urban water management, riparian planting, freshwater monitoring and discovering where water goes. Students enjoyed a hands-on water experience.

They were bussed free, each school bringing ten students and a teacher. Ten schools participated each day.

“Usually the expo is oversubscribed, that’s why it was two days this year,” said council officer Kerry Gosling. “We know the schools would like to bring more students, which is great, but it would mean we’re here all week.”

Expo visitor numbers are restricted to maintain the biodiversity of the venue environment.

Make the Change!

Save water, Save money

NEW Numedic Hydrofan Washdown Nozzle • • • • • •

Merrivale students with Richard Harris, BoP Regional Council.

NZ Patent Application No. 714037

Fail-safe monitor delivers wins FROM PAGE 26

software updates and setting adjustments can be made remotely over the web, not only at the 240V cabinet by the pump, but also with the unit located on the irrigator.

3. ‘Traffic lights’ to show paddocks available for effluent application.

A recurring challenge of effluent irrigation – especially when using K-lines or a travelling irrigator in specific consented areas – is keeping track of what has been irrigated and where the irrigator can go next.

To solve this problem,

says Precision Farming, its third innovation presents on its website – using a colour coded ‘traffic light’ – clear information about where to apply effluent.

After setting the maximum applied depth at, say, 20mm depending on your soil type, and a stand down period of, say, 16 days, ‘green’ means nothing applied in the last 16 days, ‘orange’ means less than 10mm (50% capacity) applied, and ‘red’ means more than 10mm or 50% applied.

This monitor/controller can be fitted to new irrigators such as Plucks,

Briggs or Cobra, or retrofitted to existing irrigators and pods.

In some circumstances, Precision Farming’s soft-

400 cow farm can save 1.2 million litres per year Powerful fan action that uses less water Three fold power savings – pump, yard & effluent Built to last – stainless steel construction Swivel hosetail 25mm, 32mm or 38mm Tested & proven on Dairy Research farms

ware can also be used to upgrade the software in existing effluent controllers where perhaps they are no longer being sup-

Effluent Pumps, Stirrers, Pontoons & Hydrants Travelling & Stationary Irrigators Power Drenching & Teat Spray Systems

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P: 0800 686 334 | F: 07 347 9975 E: info@numedic.co.nz | W: www.numedic.co.nz

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DAIRY NEWS NOVEMBER 8, 2016

28 // EFFLUENT & WATER MANAGEMENT

Smart system re-uses poo ‘properly, easily’ MARK DANIEL markd@ruralnews.co.nz

ROD AND Sandra McK-

innon milk 365 cows through a 32-point rotary on 120ha (effective) at Oakstone, a few km southwest of Matamata.

Always interested in the environment, they

have a picturesque farm with native bush in the less accessible areas.

Lately they agreed with Waikato Regional Council to “put a bit more back”, creating a 25ha wetland alongside the Mangawhei stream running through the property.

They’ve raised production over the years, and

by-product.

“We decided we wanted to do it properly, and we wanted to make it easy,” Rod McKinnon says.

The system commissioned earlier this year certainly does that, starting with two holding tanks that flood wash the feed pad to keep things clean. Those washings and cleanings from the milking shed into a wedge which acts as a separation dam, before the liquid drains into a Butyl-lined, 2.7 million litre effluent pond.

The hardware that move the effluent centres on a 22kW Yardmaster four-stage self-priming pump, which can work at variable rates and outputs depending on ground or weather conditions.

their deciding to install a feed pad led them to review the effluent management system, until then a typical Kiwi effluent pond.

With local manufacturer Reid and Harrison, Matamata, they set about creating a system to capture and re-use effluent, rather than treating it as a

The Halo dashboard allows the McKinnons to see what’s happening on the farm in real time.

New from Plucks Engineering One of our latest model Pond Stirrers V Only 1.1kW driving a 1.0 M Ø blade V Two year warranty on the new type of motor and planetary gear box V New to the world of agriculture – the latest in five-lip sealed bearings V No greasing required – ever!

V All bearings and seals above the water line

gators.

V Huge 1.0 M Ø blade, moving 44,000 litres per minute V Good range of sizes for any pond type whether lined or earth, clay or concrete—big or small

Best of all, the price is still the same!

Before

After Phone now to find a stockist and installer in your area.

0800 PLUCKS www.plucks.co.nz enquiries@plucks.co.nz

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Farmer Rod McKinnon (right) with Keith Cooke, Reid & Harrison on farm.

In practice that means high flow rates until the flood tanks are filled, and the ability to achieve variable pressures, thus allowing the irrigators to run at constant application rates as they travel over variable terrain.

A shore mounted 7.5kW stirrer keeps things moving in the pond, and two Williams travelling irrigators get the product onto the paddock.

The pump feeds a distribution manifold with six actuator controlled valves, two feeding the flood wash tanks as a first priority, two feeding effluent delivery lines on the lower flatland paddocks, and the other two destined to feed higher ground, typically used for maize production, 70m higher and up to 1.5km away.

That’s the “do it properly” matter sorted; what about “let’s make it easy”?

At the heart of the system is a sophisticated Halo management and monitoring system which controls the pump, stirrer and all the delivery lines via a cloud based system. It allows the McKinnons to see what is happening with the system in real time, change operating parameters and review operating history using a suitable smart device anywhere, from out on the farm or from Egypt, as during their holiday earlier in the year.

The system offers various advantages, not least peace of mind.

They are now realising the nutrient value of the effluent, have all but eliminated the use of mineral fertiliser in their lower paddocks, are sure their farm complies fully with regional guidelines and are future-proofed against likely caps being placed on

nitrogen use.

McKinnon also likes having instant information, including weather, rainfall and ground temperature, as part of the Halo system, and being able to make informed adjustments to make the most of this valuable resource.

He sees the system saving a lot of time: he need not manually switch on pumps or change valves, and he knows he will be instantly alerted to any problems and can remotely monitor the system when he is way from the farm.

What of the future?

The first project will be to extend the effluent delivery line to the higher portion of the farm, then look closer at geo-fencing (virtual perimeter) sensitive areas such as drains or rivers, to get greater control of the travelling irri-

DAIRY NEWS NOVEMBER 8, 2016

EFFLUENT & WATER MANAGEMENT // 29

Dairy effluent solutions!

Manage your pond levels ADEQUATE STORAGE offers flexibility for effluent application to fit around farm activities and irrigation conditions, according to DairyNZ. Storage facilities must be sealed so they do not allow contaminants to leak out; all areas where effluent is stored should be sealed to prevent leachate losses to groundwater.

Farmers should avoid locating effluent storage facilities at sites with high water tables or a risk of flooding.

The use of well installed and guaranteed synthetic (e.g. plastic, rubber or concrete) liners is recommended. Farmers may be asked for a producer statement to confirm the pond and liner will meet the construction and sealing require-

STORAGE CAPACITY YOU NEED enough storage for: ■■ Rainy periods when the soil is too wet to irrigate ■■

Busy periods when farm labour is stretched and you do not want to irrigate

■■

Equipment failures (pumps or irrigator), when you cannot irrigate.

Adequate storage will allow you to keep effluent for use when nutrients are most needed (i.e.

drier months or when putting down a crop).

An empty pond will give the capacity for when you can’t irrigate because of unsuitable conditions, or if you have factored in extra storage for times of year such as calving.

A full pond may overflow or cause odour problems, and may result in financial loss as you lose control of effluent and capital investment tied up in the pond.

The Irrigator everyone wants!

It is vital to manage storage volumes and pond levels throughout the year.

ments of district or regional councils.

It is also vital to manage storage volumes and pond levels throughout the year; an empty pond gives a farm adequate capacity for when the farmer cannot irrigate because of unsuitable conditions, or when extra storage is needed, e.g. at calving.

A full pond may overflow or cause odour problems, and may result in financial loss as a farmer loses control of effluent and the capital investment tied up in the pond.

Seasonal targets Spring: the pond is filling with effluent, particularly during wet

weather, or when the farmers are too busy to manage the effluent system. Small volumes of effluent can be irrigated as soil water deficits allow.

Summer: the pond should be kept as empty as possible.

Autumn: the pond should be maintained at a low level. Try to empty the pond while conditions allow.

Winter: ideally keep the pond empty, or at a low level. Where possible prevent stormwater entering the pond, off unused yard areas, etc. Areas contaminated with dairy effluent cannot be diverted. Consider using the safety escape ladder for pond level marking system.

70%

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DAIRY NEWS NOVEMBER 8, 2016

30 // EFFLUENT & WATER MANAGEMENT

‘Secret weapon’ can save water A FARM dairy effluent system must collect all animal excreta depos-

Hydrofan washdown nozzle.

Pluck’s ADR 500 Effluent Screening Plant COVERED BY N.Z. PATENT APPLICATION No. 591985

r All plant and pumps very low kW starting with 0.4kW r Self cleaning screen r Self cleaning ponds r Effluent is clean enough to be pumped into a pivot system if required r Screens out everything bigger than 1 mm Pluck’s, or your installer of choice, can adapt the ADR 500 and twin pond effluent system to work with your current effluent set up, keeping your upgrade costs down. No need

to rebuild what’s already on your farm

Call us now to find a distributor and installer in your area

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Main South Road, Rakaia 7710, Mid Canterbury

ited in contained areas, plus any other liquid or material coming into contact with it, says system designer Numedic.

Not just the milking shed, but any stand-off areas, feed pads, housing areas and stock underpasses where effluent collects, must be serviced.

The industry’s calculated average is 70L/cow/ day. But Numedic director Catherine Reid says this figure includes an animal manure component of only 10L/cow/day; the other 60L is mostly water from washdown, backing gates and cleaning.

“If we can reduce this volume of water we can lower the cost of electric-

ity used in sourcing the water, using it in the cowshed and pumping it as effluent,” says Reid.

To reduce the volume of effluent needing to be pumped or stored requires finding ways to improve water use efficiency.

One such way, the company says, is its Hydrofan washdown nozzle. In an average size herd of 400 cows the nozzle can save 1.2 million litres of water per year.

“This automatically also means power savings so farmers can keep more money in their pockets,” says Reid.

The ‘secret’ of the Hydrofan nozzle is its patented water jet ori-

fice and angle which improves water efficiency and mostly is faster in yard washing. The nozzle produces a sharp, stable stream with high impact using less water.

Nozzle trials by Northland Regional Council have shown 20-70% in water savings, Reid says.

More trials are now underway on South Island farms jointly with Environment Canterbury.

“The general feedback from users is that the nozzle also achieves the yard washing faster,” Reid says.

Numedic is an accredited designer of farm dairy effluent systems.

Tel. 0800 686 334

Smart application SLURRY TANKER specialist Joskin, with John Deere, recently launched an on-the-go slurry analysis system using near infra-red (NIR) technology to control variable application rates of N, P and K. NIR technology, in JD’s HarvestLab sensor, analyses those key elements and dry matter content as the effluent is pumped from the tank to the injection module.

A tanker mounted electronic control unit combines data from the HarvestLab sensor with readings from the

tanker’s flow meter, before transferring the information via the ISOBUS system to an in-cab JD GreenStar terminal.

In operation the user sets parameters for N, P and K application rates, and the GreenStar terminal will automatically adjust forward speed and flow rates to stay within these guidelines.

The system also allows application rates to be mapped for proof of placement, but also allows subsequent application of fertiliser, lime and trace elements more accurately to specific areas. www.joskin.com

DAIRY NEWS NOVEMBER 8, 2016

MACHINERY & PRODUCTS // 31

Loader extra compact even with a cab MARK DANIEL markd@ruralnews.co.nz

JCB AGRICULTURE has added a new

compact, articulated wheeled loader to its range, useful in confined spaces on chicken, pig or dairy farms, and in nurseries and equestrian centres.

The JCB 403 Agri joins two larger models -- the 0.8m3 JCB 407 and the 1.0m3 JCB 409 -- which have proven the durability and smooth operation of the Rexroth hydrostatic driveline fitted also to the new machine.

The 1498cc Kubota V1505 diesel engine has 26.5kW power and 92Nm torque, teamed with a transmission using two speed ranges to suit different applications. The main characteristics of the low speed range are high torque and precise speed control, essential for digging into materials and for precision

control and placement. Brisk acceleration to 20km/h, or 30km/h as an option, is the strength of the high setting -ideal for moving around yards, or from site to site.

Inching control via the brake pedal allows the operator to use the loader’s hydraulic power to breakout and lift materials without stress or wear to the braking system or transmission.

Once moving, power and torque are applied through heavy duty ZF axles with open, or optional manually operated, diff locks front and rear for machines used in off road situations.

The JCB 403 has a tight turning circle and excellent placement imparted by the articulated chassis design; the oversized articulation joint provides generous oscillation of the front and rear chassis over rough or undulating ground.

A choice of loader arms sees the

JCB 403 Agri.

standard layout provide a good mix of breakout force, lift capacity and a load-over height of 2.6m; an extended version lifts to 2.8m for stacking and loading over high-sided vehicles.

Both designs dissipate stress throughout the chassis and offer true parallel lifting – ideal for handling with pallet forks and reducing spillage from buckets.

The loader arm cylinders are supplied by a 40.5L/min gear pump package with quick response and adjustable constant flow of oil to powered attach-

Apply Gypsum Now

ments such as bucket feeders or bedding dispensers.

While JCB 403 Agri loaders for operation mainly indoors are supplied with an open canopy platform and a ROPS/ FOPS protection frame, a new cab is available -- a first on a compact JCB wheeled loader -- for all-round protection from the elements.

Uniquely, the 403 with cab is no bigger than 2.2m tall and only 1.1m wide, subject to tyre size, allowing access to tight places.

A new control panel to the right

side carries rocker switches, an oddments storage tray and a new joystick controller. The joystick controls the lift arms and attachments, and allows selection of forward-reverse and the high-low transmission speeds – truly a one handed operation.

Daily checks are carried out via a one-piece, rearward hinging hood that gives clear access to either side of the engine bay; all components are protected by a cast rear counterweight. @dairy_news facebook.com/dairynews

The benefits of gypsum in soil treatment are well known, but its value goes well beyond this: • Helps mitigate the flow of nitrates and phosphorus in New Zealand waterways • Can be used to address the issue of sodium from applied effluent • Reduces surface run-off and drainage loss, reduces preferential flow of water run-off in soil • Can be applied by a number of different means to target risk zones • Assists with addressing high soil potassium levels for more about Natural Gypsum and soil stabilisation visit www.gypsum.co.nz Rates vary per farm and soil type. Applications can last for up to three years and can be used as a base layer in standoff (loafing) pads.

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DAIRY NEWS NOVEMBER 8, 2016

32 // MACHINERY & PRODUCTS

Built tough, no kidding The toppers are attached to the tractor by a bolted-up headstock.

MARK DANIEL markd@ruralnews.co.nz

KIDD FARM machinery, made in the UK, has been a go-to supplier of nononsense essentials for British livestock farmers for 50 years.

Its recent appointment of Agrilife, Hamilton, as NZ distributor will now allow Kiwi cockies to experience these machines for themselves.

First items landed are a range of toppers and post drivers.

The toppers are available in 1.5, 1.8, 2.4 and 2.8m working widths, and an inline format; a fully offset 2.4m machine completes the range.

The driveline comprises Comer gearboxes, with shafts throughout, protected by doughnut couplings, and with a deeply cranked blade format which keeps those gearboxes from the working area, and away from any possible impact damage.

Machine life is also said to be extended by the use of swinging blade assemblies which reduce shock loads on the driveline.

Attachment to the tractor is by a bolted-up headstock which allows a

Post driving the easy way POST DRIVER manufac-

degree of offset, and lower link-only couplings which remove the need for a top link, but more importantly impart good contour following.

In use, cutting height is controlled by full length skids adjustable from 60-200mm.

Managing director Ed Tarry says the linkage mounted, hydraulically folding fully offset 2.4 m model is creating lots of interest, not least because it folds behind the tractor for transport, and does not flatten crop prior to cutting.

The Kidd post drivers look suited

to all sectors – farmer and contractor models driving heights from 2.5 to 5.5m.

The entry level model has six port valve blocks and controls such as tilt, rake angle, extend, slew and an optional hydraulic post clamp.

At the higher level, the TWY 300 contractor spec machine, in contrast, has an eight port valve assembly, a telescopic boom, and a unique tripod foot support layout with hydraulic front stabiliser legs. www.agrilife.co.nz

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turer Fencequip, run by the Knudsen family, recently introduced a medium duty driver aimed at farmer customers, but taking its design details, if in a simplified version, from its contractor series.

The rear mounted unit is said to be the first on the market with a subframe, which accommodates two toolboxes.

The driver can be operated with a hydraulic top link angle of up to 54 degrees, and up to 50 degrees of side tilt. This is made possible as the sub-frame pushes the driver further away from the rear of the tractor, thus avoiding the heels, fenders or cab structures.

Supplied as standard with a 4.15m high mast and a 225kg block, the unit has a 270mm diameter top pulley said to allow greater ‘wrap’ of the wire rope lifting the block, thereby extending the service life.

Other details include a 60mm main pin, adjustable legs, and a four bank valve set-up which leaves one segment free for retro fitting of optional accessories like rock spikes, post lifters or side mounts. www.fencequip.net.nz

DAIRY NEWS NOVEMBER 8, 2016

MACHINERY & PRODUCTS // 33

Mix large in less time MARK DANIEL markd@ruralnews.co.nz

MIXER WAGON manu-

facturer Strautmann will extend its range of vertical feed mixers with two new triple auger units.

The new Verti-Mix 3451 and 4502 Triples have the same reliability, fuel efficiency and mixing speed as the rest of the range, but have larger capacities -- up to 34.5 and 45m3, respectively.

The additional auger set-up allows larger volumes to be mixed effectively, and the layout

offers a degree of futureproofing, by the use of extension panels to take the base 3451 capacity from 28.5 to 31.5m3, on to a maximum fill of 34.5 cu metres.

By contrast, the 4501Triple is offered with capacities of 38 to 45m3.

Both machines use the new Vario 2 mixing auger, with a stepped design said to reduce mixing time and consequently labour and tractor hours.

Both machines can be specified with the option of Inodur stainless steel wear strips to prolong machine life, and a range

of options for discharge position and conveyor choices mean the machine can be tailored to individual users’ requirements. www.strautmann.com

The new Verti-Mix comes with larger capabilities.

Master of all trades

% 0.5P.A. FINANCE AVAILABLE*

5 YEAR

†

EXTENDED WARRANTY 5 FAMILY UTILITY TRACTORS

Tail lights, alloy mudguards and mud flaps are standard.

Alloy decks stronger, more stylish ADVANTAGE ALLOY decks from Best Bars are now stronger and more stylish, following an upgrade that has improved quality and enhanced load carrying.

The drop sides and tailgate now have higher extrusion weight and gusseting offering more reinforcement, and the side hinges are full height and stainless. A durable anodised finish helps retain the looks.

Though able to carry heavier loads the tray itself is lighter.

The company says many ute owners specify steel decks because of their perceived strength, but the latest alloy decks are strong enough for construction and other work sites, and can carry heavier loads.

The decks have hinged drop sides for easier loading and unloading, and exterior lash-down rails.

A 63mm alloy headboard tube with cab protector mesh is standard, as are tail light guards, alloy mudguards, mud flaps and rack pegs.

The decks come in five sizes to suit most 1-tonne ute models and variants sold in New Zealand – single, crew and double cabs.

No two farms are alike, and no tractors give you more choice than our 5 Family range. With multiple options and configurations, you can mix and match to meet your exact needs. From an affordable, no-frills workhorse to our full-frame premium model and specialty models for orchards or vineyards, there’s a 5 Family Tractor to fit your farm perfectly.

Stop into your local John Deere dealer today or visit JohnDeere.co.nz/5family

TRACTA57764-DNZ

Lighter tray is able to carry heavier loads.

The 5 Family Utility Tractors

Images used are for illustrative purposes only and may show features not available from all dealers. *Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Valid on new 5 Family Utility Tractors (implements not included) ordered between 01/11/16 and 31/01/17.

Offer is based on 20% deposit, GST back and 36 month term. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 31/01/2017. † All PowerGard Protection Plan™ (Limited Option) for eligible new, in-warranty units, include the underlying basic warranty terms, and now come with the extended engine and powertrain warranty to the maximum of 5 years or 4,000 hour coverage terms. Eligible equipment includes new John Deere 5 Family Tractors, purchased between 01/11/16 and 31/01/17. Contact your dealer for full terms and conditions of the PowerGard Protection Plan. Offer closes 31/01/17.

DAIRY NEWS NOVEMBER 8, 2016

34 // MACHINERY & PRODUCTS SPECIAL PRICE

Entry-level guidance made easy

$ 13,750+GST

RRP $15,325 +GST

RANCHER DELUXE ON TERMINATOR BASE INCLUDES

• Terminator Base 900mm Side Shift • Top Link Ram & Angle Adjustment • 4m 180UB Mast • 4 Bank Valve • 227kg Hammer • Adjustable Legs

SPECIAL PRICE

AG LEADER has been at the forefront of precision agriculture since releasing the world’s first continuous-flow yield monitor in 1992.

The entry level Compass display was released in 2013, proving a good fit for new adopters because of its simplicity and ease of use.

Capable of saving time and money by minimising overlap when spreading or spraying – and so helping reduce fatigue – it has some farmers cutting over-application of inputs by as much as 10%.

The Compass display offers the choice of multiple guidance

T

RRP $17,340 +GS

$ 14,800+GST SERIES 2 ROCK SPIKE SPECIAL INCLUDES

• 4 bank valve hydraulic top link & angle adjustment • Rock Spike kitset incudes 90mm Spike and Rock Spike cap • 4.25m 150uc beam • 270 kg hammer • Adjustable legs

SPECIAL PRICE

RRP $27,540 +GST

$ 23,850+GST Terminator Beam TT Terminator Base • Terminator Base 900mm Side Shift • 4.25m (150UC) Beam • 270kg Hammer • 6 Bank Valve • Hydraulic Hinge • 250mm Mast Shift

THE FIRST official

HOOPER CUTTING EDGE CULTIVATION

SPECIAL PRICE

RRP $36,640 +GST

2500 $ 32,900+GST INCLUDES

• 660mm Blades • 3.1m Width • 2950kg Total Weight • 114kg Per Blade

HOOPER CUTTING EDGE CULTIVATION

Tri Flex Cultivator

Ag Leader says its gadgets can cut over application of inputs by as much as 10%.

effective GPS receiver. A single frequency product designed for general mapping and AutoSwath functions, the system uses Glide technology from NovAtel to enable operators to get 15cm

pass-to-pass accuracy with no subscription fees.

Ag Leader systems can easily be moved between different tractors or implements on individual properties and can be upgraded to either electric

or hydraulic steering with no additional unlocks required.

All products carry a full two-year warranty and nationwide dealer support. www.agleader.com

Driverless vehicle pulling in soon

INCLUDES

Offset Disc harrow

patterns including straight, curves, pivots and SmartPath, a function that allows farmers with smaller paddocks to raise efficiency by following the last pass more accurately.

The operator selects SmartPath and tells the display the implement width; the device then works out a guidance line that ensures maximum efficiency. An 18cm screen offers large screen function yet is compact enough not to obstruct the operator’s view.

Complimenting the Compass display, the GPS 6000 option offers entry-level guidance for those seeking a cost-

E

SPECIAL PRIC

ST

RRP $17,250 +G

$ 15,500+GST INCLUDES • 6m wide • Levelling Wheels standard • Galvanised frame • Overlapping rollers • 2.5m transport width

0800 476 868 sales@fairbrother.co.nz www.kinghitter.com

demonstration of an autonomous driving vehicle on New Zealand roads will take place on November 18, subject to approval from NZ Transport Agency (NZTA).

A joint exercise by the NZ Traffic Institute (Trafinz), Volvo, NZTA and the Ministry of Transport will show the vehicle driving our roads.

Volvo will demonstrate the technology on

10-15km of public road in Tauranga during the national Trafinz transport conference.

Volvo NZ national manager Coby Duggan says the vehicle will self-drive, with driver interaction only required at the halfway point of the trip.

Anders Eugensson, from Volvo’s Swedish headquarters, says the technology can benefit people who commute

See the light A VERSATILE LED workshop floodlight has been added to the Narva range.

This portable, cord-free, lithium battery light uses 20W ‘cob’ LED cluster technology to produce white light of 1800 Lumen output.

It has a tough aluminium body and a protective rubber frame, making it watertight to IP65 and resistant to dust, oil, chemicals and sudden impact, yet it weighs only 1.4kg.

An adjustable nylon handle doubles as a stand, giving 180° range of movement.

Dual output capability allows two hours continuous use at 1800 Lumens, or eight hours use at 400 Lumens.

The light can be operated during charging.

An optional adjustable telescopic stand (up to 1.8m high) is available at extra cost. www.narva.co.nz

daily or drive between cities.

“Our research shows about nine in every ten crashes have a driver error component; but self-driving cars do not get distracted. This technology will greatly reduce the number of collisions on NZ roads and improve efficiency.”

Trafinz vice-president John Goettler says the technology has real applications in NZ, “an ideal

location for the demonstration because of our world-leading regulatory environment, which encourages trialling and demonstrations of new technology such as auton-

omous vehicles.”

He says as the volume of these vehicles grows, transport bosses will need to pay attention to designing smart highways and motorways.

Leading nationwide dairy livestock network.

With more than 100 specialist representatives involved in trading 150,000+ head of dairy livestock annually, PGG Wrightson Dairy Livetock Representatives focus on adding value and developing strong relationships with our clients.

From completing herds to surplus cows; weaners, yearling or in-calf replacement heifers; in-milk cows; pedigree dairy stock; bobby and feeder calves; cull and boner cows and service bulls.

We offer quality advice in all aspects of livestock selling and purchasing, with a clear understanding of animal evaluation records combined with the practical aspects of dairy farming.

There’s only one name you need to remember.

PGG Wrightson.

Freephone 0800 2466 5463

www.agonline.co.nz

Helping grow the country