Dairy News 2 February 2021 by Rural News Group

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FEBRUARY 2, 2021 ISSUE 463 // www.dairynews.co.nz

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FEBRUARY 2, 2021 ISSUE 463 // www.dairynews.co.nz

FROM FARM TO BEEHIVE “There is a growing disquiet in social circles, and farmers are saying when will we actually have a representative that understands farming.” – Ruawai farmer and new ACT MP Mark Cameron PAGE 4

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DAIRY NEWS FEBRUARY 2, 2021

NEWS // 3

Capital structure review underway SUDESH KISSUN sudeshk@ruralnews.co.nz

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NEWS ��3-11 AGRIBUSINESS �� 12 OPINION �� 14-15 MANAGEMENT �� 16-17 ANIMAL HEALTH ��18 CROPPING & CULTIVATION ��19-20 MACHINERY & PRODUCTS �� 21

NEARLY TEN years after Fonter-

ra’s last capital structure review, farmer shareholders have again started deliberating on the future shape of their co-operative. An online survey, sent out last week by new chairman Peter McBride, signalled the start of the farmer consultation process. The survey, with nine main questions, is to gauge the mood of farmers. The first question is how farmers feel about a potential change to the co-op’s capital structure. Last week’s email, with the online survey, to farmer shareholders from McBride is the first opportunity for the 10,000 Fonterra shareholders to engage in the process. The co-op’s board and management have been discussing potential capital structure changes behind closed doors for the past few months. McBride says the board has been leading a review of its capital structure “to ensure it best supports our strategy and long-term vision for our co-op”. “We have spent the past few months reviewing potential options, including staying with our current structure. “Every option has its own merits, but also involves some form of trade-off.” He says the board is seeking feed-

Fonterra chairman Peter McBride with Whakatane farmer Gerard van Beek at the co-op’s annual meeting in November.

back on “the structural principles” that are most important to farmers. After the farmer survey, the board will further develop options and continue consultations. A preferred option will then emerge and put before shareholders for further consultation before a vote. Fonterra’s last capital structure review ran into trouble when a plan for a partial public listing was rejected by farmers, who feared they would lose control. Following another round of consultations, Fonterra farmers agreed in 2012 to set up Trading Among Farmers (TAF), which allows outside investors to buy units and qualify for dividends. But these investors

have no ownership or voting rights in the co-op. Meanwhile McBride has also outlined the board’s other priorities for 2021. These include continuing to navigate the challenges presented by Covid-19 and delivering a strong milk price and forecast earnings. “We are also focused on implementing our strategy, while clearly defining our longer-term strategic aspirations, and completing our portfolio review work through the asset divestment processes we have previously announced,” he says. Fonterra is forecasting a milk payout of $6.70 to $7.30/kgMS following a strong rise in products sold by the co-op on Global Dairy Trade

(GDT) platform. Last month Fonterra chief executive Miles Hurrell said New Zealand dairy farmers deserve credit for premium prices fetched around the world for their milk. He says New Zealand butter and skim milk powder are attracting premiums of $500/tonne more than European products right now and it’s all down to the sustainability credential of NZ milk. “Our pasture-based systems, our high standards on animal welfare and our sustainability stories are starting to be recognised around the world,” Hurrell said. @dairy_news facebook.com/dairynews

DAIRY NEWS FEBRUARY 2, 2021

4 // NEWS

From cow shed to the Beehive SUDESH KISSUN sudeshk@ruralnews.co.nz

NORTHLAND FARMER Mark Cam-

eron is living a “chaotic” lifestyle and loving every minute of it. On most Mondays, he packs his suits and ties, drives to Auckland Airport and catches a flight to Wellington. By the end of the week, he’s back in his jeans and gumboots and on the 300-cow Ruawai farm that he runs with partner Jodie Booth. Cameron is an ACT MP, one of the 10 voted into Parliament at the last general election. The party won 7.6% of the popular vote, its best results since it was founded. Listed 8th on the ACT List, he is the party spokesman on primary industries, regional economic development and biosecurity. For him, there isn’t much difference between the halls of power at the Beehive to the farm. “It’s a funny world… they are at diametrically opposite ends but talk about the same stuff,” he told Dairy News. “I sit in the caucus talking about the societal damage that’s happening with arbitral compliance like around freshwater reforms and I come home and live it. “David (Act leader David Seymour) and the caucus celebrate this… they say you have a different kind of oratory and I

ACT MP and Ruawai farmer Mark Cameron and his partner Jodie Booth.

say, yeah, I grew up in the country. “I love what I do but I think about the guy up the hill because he’s bloody good at it and he’s not getting acknowledgement either...so it’s more than me.” The 48-year old fatherof-three says he’s had a life-long interest in politics, both local and international. He lists former Act leader Rodney Hide as an inspiration. “I have known about ACT since the Rodney Hide days. I loved the way he articulated his point of view. He was a very clever politician and very well

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DEGREE OF HUBRIS MARK CAMERON says he personally thinks Fonterra’s decisions to invest in Chinese dairy farms and Beingmate weren’t “necessarily wise”. “There was a degree of hubris at one point,” he told Dairy News. “But I think they learnt very quickly and rightly have sold off assets.” Cameron, a Fonterra supplier since its inception, believes the coop must look at market diversifica-

engaged with the public sector.” Cameron believes that both the major parties are out of touch with the

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tion, particularly the Americas and the Indian sub-continent. “It’s not my job to lecture to a private enterprise. I have a little mortgage on this farm and that’s mine. “But I think Fonterra must look beyond China. I’m not saying they are not doing this.” He thinks Fonterra has done a good job, apart from two years where it reported financial losses recently.

offering “a counter narrative” to Labour’s agenda. Cameron says politicians have no idea when it comes to the builder, the farmer or the fisherman in regional NZ. “A lot of blue-collared industries are at odds with beltway politics.” Cameron points out that the Government may want to do the right thing around the environment, climate change and freshwater but often the Government’s methodology is wrong – they aren’t engaging with the farmers at the farmgate. “Their intentions are often very honourable but

the application of public policy to a farmer, Fonterra or to a milk supplier is all too often at odds at what happens at the farm level.” Cameron says during his farming career he buried four farming colleagues who committed suicide. He isn’t blaming the Government but says politicians’ failure to understand farming is harming those involved in the primary sector. “There is a growing disquiet in social circles, and farmers are saying that when will have actually we have a representative that understands farming. “Because they are at odds with what we do, who we are. NZ farmers identify by who they are and what they do. “The more you disable that rather than enable that and have the wrong discourse with the industry, you actually turn off what you are trying to achieve.” Cameron says about a year ago he raised farming concerns with party leader David Seymour who encouraged him to stand on the party ticket. “I said to him that a typical NZ party of old had gone cold on rural issues and we could have something to offer here. He said to me ‘well bloody stand’. “You never know how the cookie will crumble but it’s a privilege to be given the job of speaking on behalf of the rural community.”

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DAIRY NEWS FEBRUARY 2, 2021

NEWS // 5

Payout on the rise SUDESH KISSUN sudeshk@ruralnews.co.nz

FARMGATE MILK

prices offered by processors continue to soar on the back of strong global demand for dairy products. Canterbury processor Synlait last week lifted its 2020-21 forecast payout by 80c to $7.20/kgMS. Synlait’s national milk supply manager David Williams says the decision is driven by the strong increase in dairy commodity prices over recent months. The company believes commodity prices will remain around current levels for the remainder of the milk season. “Despite the wider

global uncertainty, dairy commodity prices have remained robust and a higher forecast base milk price will be welcomed by our Synlait farmer suppliers. “We are grateful for their continued support.” The stage is also set for another rise in Fonterra’s forecast milk payout following a fifth straight jump in Global Dairy Trade (GDT) prices last month The last GDT auction pushed flagship whole milk powder prices to a four-year high; prices for skim milk powder, butter and anhydrous milk fat also jumped sharply. Westpac responded by lifting its forecast milk price for the season to $7.50/kgMS. Fonter-

ra’s last price review in December settled on a price range of $6.70 to $7.30/kgMS. Westpac senior agri economist Nathan Penny says the lift in its forecast payout comes on the back of surging global dairy prices, particularly at the start of this year. “Since early November, overall dairy prices have jumped 17.2%, with over half of the lift occurring since the start of the year,” Penny says. ASB economist Nat Keall says increasingly the risks skewed towards a higher farmgate milk price than its current $7/kgMS forecast. “Indeed, a farmgate price towards the upper end of Fonterra’s forecast range is very much pos-

Synlait has lifted its forecast payout by 80c.

sibility. We’ll be closely examining the next auction with a view towards adjusting our forecast,” Keall says. Fonterra chief executive Miles Hurrell says the co-op was monitoring every GDT event. “We have first-hand knowledge; we know what we have on our books, what we’ve sold and at what prices,” he says. “’We have the most accurate data which we use to make our decisions on the farmgate milk payout.” Under DIRA, Fonterra

OCD HAPPY WITH OUTLOOK THE COUNTRY’S second largest milk processor says the “short to medium” outlook for dairy prices look good. Open Country Dairy chief executive Steve Koekemoer says it is great to see the recovery continue with prices rising again at the latest GDT auction. “It supports our updated forecast. Our position has not changed, the short to medium term looks good and with NZ now starting to move towards our tail end of the

is required to update its forecast milk payout in

season, I expect buyers to stock up where they can. “It is certainly looking positive for the dairy sector with overall demand being strong but recent currency movements require us to act cautiously going forward.” The weakening USD will negate some of the price benefits farmers have been receiving. “Although, not an immediate concern for most, it is something that we will keep a close eye on over the coming months,” says Koekemoer.

early March and Hurrell says the co-op could come

out before then if warranted.

LIC POSTS SOLID HALF-YEAR RESULTS JESSICA MARSHALL jessica@ruralnews.co.nz

FARMER COOPERATIVE LIC has

delivered a solid half-year result with revenue up 4% to $170 million. LIC reported $60 million in earnings before interest, tax, depreciation and amortisation. The company’s net profit was up 10.4%, sitting at $33.4 million compared to $30.3 million in

the same period last year. Board chair Murray King says the cooperative is balancing profit with focused R&D and technology investment for the long term. “We are investing in the areas where LIC has unique capability to maximise the value LIC’s customers generate from their livestock and their produce, providing technology and services to make farmers’ lives easier,” King says.

He says this includes investment in key areas like genetics and research and development. King says the highlight of the result was farmers’ growing confidence in LIC’s genomic selection with around 1.4 million inseminations from genomic sires this year, up from 400,000 in 2017. “Genomic science and genomic sequencing technology is generating markedly increased productivity and

health traits for dairy cows and better returns for dairy farmers. “LIC is now a world leader in pastoral dairy genomic science thanks to the foresight of LIC’s board and shareholders.” He says the cooperative has invested $78 million into genomic science over the last 30 years to speed up genetic gain in dairy herds. King says the half-year result is pleasing considering the disruption of

the second Covid-19 lockdown and he paid tribute to the cooperative’s management and staff. “Our people have had to overcome significant challenges to ensure business continuity and uninterrupted service for LIC’s 10,000 New Zealand customers and their dedication, resilience and effort is very much appreciated.” @dairy_news facebook.com/dairynews

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6 // NEWS

Govt must take note – Bennett JESSICA MARSHALL jessica@ruralnews.co.nz

NATIONAL’S AGRICULURE spokesman David

Bennett says the Government should take note of new research confirming the New Zealand dairy industry’s low carbon emission profile. The research, commis-

sioned by DairyNZ and produced by state-owned AgResearch, shows NZ dairy farmers have the world’s lowest carbon footprint – at half the emissions of other international producers. The report says NZ retains its outstanding position in low-emission dairy milk production, with an on-farm carbon

footprint 46% less than the average of 18 countries studied. The research analysed 55% of global milk production, including major milk producing countries and was peer-reviewed by an international specialist in Ireland. Bennett says the research needs to be part of future govern-

ment policy and decision making. “The Government should celebrate, rather than decry, the excellent work our dairy farmers do, and work with them to maintain this world leadership,” Bennett says. “I congratulate our dairy farmers for their excellence and expect this to be recognised in future

Government policy decisions.” DairyNZ chief executive Dr Tim Mackle says the research plays a key part in understanding how New Zealand dairy farms stack up and informs how farmers can be even more efficient. “New Zealand’s dairy sector is committed to remaining the most effi-

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knowledge, practices and technology,” he says. The research compares carbon dioxide equivalent (CO2e) emissions per kilogram of milk (fat and protein corrected milk). Dr Andre Mazzetto, who co-led the research, says New Zealand is known internationally for its low carbon footprint and the research supports this. “There is still potential to improve and achieve lower emissions as other countries also advance their dairy sectors.”

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cient producer of low emissions milk in the world. Our focus as a sector is sustaining our success as consumers and communities increasingly seek sustainably produced food,” says Mackle. “New Zealand dairy farmers’ hard work and investment over decades has contributed to this world-leading status. Our grass-based, outdoor grazing system is unique globally and is critical to our success.” “We need Government support as we adopt new

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mary and business sectors for the signing last week of a revamped free trade deal with China. The signing took place in the virtual setting with Trade Minister Damien O’Connor in Wellington and China’s Minister of Commerce, Wang Wentao, participating from Beijing. O’Connor says the signing modernises the existing free trade agreement (FTA) and ensures it will remain fit for purpose for another decade. He says the upgraded agreement comes at a time of considerable global economic disruption due to Covid-19. “China is one of New Zealand’s most important relationships. Signing this agreement builds on the significant benefits both countries have enjoyed as a result of our existing FTA,” says O’Connor. He says the key outcomes of the upgrade include new rules that will make exporting to China easier and reduce compliance costs for New Zealand exports, and achieve a better deal for our services exporters through expanded market access and most-favoured nation commitments. “Our agreement is modern and deepens our relationship further to ensure that NZ exporters have the best possible access to the China market,” he says. O’Connor says existing conditions for dairy exports have been maintained, with all safeguard tariffs to be eliminated within one year for most products, and three years for milk powder. “This means that by 1 January, 2024, all New Zealand dairy exports to China will be tariff free,” he says. Dairy Companies Association (DCANZ) chairman Malcolm Bailey has welcomed the signing, saying it’s a good effort on the part of past and previous governments to get the FTA upgraded. Unfortunately he says it just preserves the status quo in terms of dairy exports to China. He says they were hoping that the so-called safeguards or longer term tariffs might have been removed. – Peter Burke

DAIRY NEWS FEBRUARY 2, 2021

NEWS // 7

All eyes on weather PETER BURKE peterb@ruralnews.co.nz

THE NEXT few weeks

could determine the fate of the current season in the Lower North Island, says DairyNZ’s lead consulting officer for the region, Rob Brazendale. At present the overall situation is good due to the rains in early January. Brazendale says clover growth in particular is spectacular. But he says the outlook for the coming weeks is for hotter, drier conditions and pasture growth will likely slow down. “People are starting to utilise turnip crops and others supplements. In the case of turnips, they struggled to take when it was so wet in November and I suspect they are a bit patchy. “Maize is much the

Pasture is growing very well but looming hotter weather could change things, says DairyNZ’s Rob Brazendale (inset).

same, with the crops that were sown early doing well but those sown later getting caught by the November rains and are patchy. In fact, quite a bit of maize has had to be re-

sown,” he says. Brazendale says while many farmers did make a lot of silage, the quality of grass was poor due to the rain and is not up to the normal high stan-

dard. It was so wet he says that some farmers were unable to harvest the grass they had on their farms. As the result of the wet November, Brazen-

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dale says milk production in that month crashed, in some cases by up to 20%. But he says the better weather in December saw things pick up and farmers were able to regain some of the production they lost. “But it is still at a lower level than most farmers would like,” he says. Brazendale says as present things are humming along on farms in the lower North Island, but says the caveat is the weather in the coming months. He says if there is a dry spell dairy farmers may have to dip into their reserves of silage and other supplements. It’s a wait and see situation and a lot depends on what happens in the next six weeks he says.

FARM MEDIX SPLITTING AWARD WINNING animal health company Farm Medix is splitting into two businesses. The company’s two founding directors Natasha Maguire and Leon Spurrell will head each business unit. In a joint statement Maguire and Spurrell said the split was amicable. “In the last few years, we have successfully created solutions that solve many issues regarding animal health and milk production,” the statement says. “The division of Farm Medix creates two strong value engines that are now ready to pursue their own distinctive strategic directions.” Farm Medix sells a range of products for mastitis diagnostics, water purification, antibiotic reduction, milk quality forensics and hoof health. The company has won many science, innovation and business awards. In 2019 it won the Kudos food and agricultural science award. The statement says that each portfolio is developed and ready for each to go down its own strategic path. Maguire’s company will take the Farm Medix name, and the other yet to be named, will be run by Spurrell. “The split, once finalised will mean the critical research and development work already undertaken successfully by both directors can be commercialised and scaled to assist farmers around the world.”

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DAIRY NEWS FEBRUARY 2, 2021

8 // NEWS

Border exemption for PhD student AN INTERNATIONAL

PhD student, working on animal health issues in the dairy sector, has been granted a border exemption to enter New Zealand and continue studying. Massey University says it is excited to welcome back Shashi Ekanayake, a final year doctorate student from the School of Veterinary Science, who returned after nearly a year in home country, Sri Lanka. Ekanayake’s PhD project is on dairy cattle lameness, reproduction and milk production in New Zealand and Sri Lanka, and as such her research took her back to her home country right before the pandemic began. Originally Ekanayake was set to be in Sri Lanka for six-months researching for her thesis however, COVID-19 and its consequences kept her there

“I am so thrilled to be back in New Zealand after such a long time away and I am excited to finish my studies here.” much longer. “While I was working overseas, I had to interrupt my data collection due to the COVID-19 outbreak and the restrictions imposed in Sri Lanka.” As a result of local curfews Ekanyake was unable to collect data for nearly two months before completing her collection in early August. She then had another five-month wait to receive a border exemption to return to New Zealand. She says returning to New Zealand to continue her studies was crucial to finishing her PhD which is set to fill an important gap in research regarding cattle lameness.

“There is very limited research from New Zealand and Sri Lanka although it is one of the main issues in dairy cows, at the completion of my PhD we will have much more insight into this. “Since I am in my final year of PhD, direct supervision was necessary especially to help with my data analysis and thesis writing not to mention having the support of Massey staff and other students around.” Ekanyake says New Zealand was her dream country in which to study and she was aware of Massey University as one of the best veterinary schools in the world.

Massey University PhD student Shashi Ekanayake researching for her thesis on a dairy farm in Sri Lanka.

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DAIRY NEWS FEBRUARY 2, 2021

NEWS // 9

Taking the heat off cows and people PETER BURKE peterb@ruralnews.co.nz

AS THE hot weather

starts to kick in around the country, DairyNZ has put out a special plea to farmers to protect themselves from the heat and also to ensure that their cows are kept cool. Jacqueline McGowan, who’s an expert in heat stress, says the ways of

Jacqueline McGowen

mitigating the effects of heat are similar for both cows and people – the difference being that cows prefer temperatures below 20 degrees Celsius whereas humans can cope with it being a little warmer – up to 24 degrees. She says the first sign that a cow is suffering from heat stress is when it starts to breathe more. She says if the cow breathes less than seven times in ten seconds, it is okay, but over ten times, it’s in trouble. “Unlike humans they can’t sweat all that much and so for evaporative cooling they breath more. They will stand up more, sometimes gather in groups with their heads down, drink more and they will eat less. That reduces the metabolic heat that they are producing, but the consequence of that is that they reduce their milk production,” she says. McGowan says over the last few decades science has enabled researchers to realise that cows actually feel warm at cooler temperatures than was previously thought. She says a NZ scientist did some research in 2008, which established the temperature humidity index (THI) that shows cows like to access shade

“Milking is enjoyable, relaxed and easy on both the cows and milkers.“

HUMAN FACTORS JACQUELINE MCGOWAN, DairyNZ, says obviously more is known about the needs of people in hot weather. She says a key message to managers is to be respectful in the way that people work and try to accommodate their needs. “There needs to be clean drinking water in the shed. Some employers are very good to their staff and have snacks and drinks there in a fridge for them. Sunscreen should be available and everyone should wear a hat,” she says. Working in the sun can make people tired and irritable says Jacqueline McGowan and having good communication with staff to work out what best suits them and how this can be fitted into the daily

that comes at around 64 THI – the equivalent of around to 20 to 21 degrees depending on the humidity. “A lot of this is related to the biology of the cow. They are really big animals which means they are producing a lot of heat and have less skin relative to their size to get rid of the heat. “They are also ruminants, so that process of digesting grass produces a lot of heat and then on

routine of the business. She says planning the day to avoid doing some tasks in the heat of the day is an obvious option. “Accommodating individuals needs can also make for a positive and good work environment. For example, people with young families like to be home in the early evening while some others are happy to take time off during the day and work in the evening,” she says. Jacqueline McGowan says the objective should be to devise a system people enjoy and not just work longer in summer because there are more daylight hours. She says if farmers want more information on this subject they should go to the DairyNZ web site.

top of that, like humans, when they are lactating, which means they are running much hotter, they have more metabolic heat to get rid of,” she says. For cows, seeking shade is their preferred way of keeping cool, but McGowan says on many dairy farms, shade is not as available as it used to be. She notes the advent of pivot irrigators, farmers fencing off bush areas and wetlands have reduced the number of trees in

paddocks where cows can seek relief from the hot sun. “Those farmers that don’t have trees in paddocks will often move their cows to a covered feed pad or maybe a small area of bush. “They can also take them to the dairy shed and turn on the sprinklers and that will cool them down fast and last for several hours. But the fact is cows prefer shade,” she says.

Dave Davis - WAIKATO 44 a-side iXPRESS4+ Herringbone Parlour Milking 330 Friesian Cross cows in just over an hour, Dave says milking should be an enjoyable experience for both operators and cows - with a balance between getting cows milked efficiently and back to pasture quicker, while not overloading his staff. To achieve this, Dave’s iXPRESS4+ parlour features iNTELARM+ swing over arms and the new iCR+ intelligent cluster removers. Proving an invaluable duo, with a-symmetrical cup alignment and optimum milk-out of each and every cow. Need straight-forward milking performance like Dave? Call us to book your on-farm consult today – 0800 GEA FARM. gea.com Driving dairy efficiencies? We can help.

DAIRY NEWS FEBRUARY 2, 2021

10 // NEWS

Kiwi research on infant milk powder colour goes global A WINTEC science student Rehana Ponnal has had research published in the International Dairy Journal late last year, a big accomplishment for an undergraduate student. Done while Rehana was on a work placement at Fonterra, the research tested the effectiveness of using a colorimeter to measure the colour of baby milk powder. Rehana worked on the research with a number of other scientists, and the journal entry, published in September last year, gives positive results of their findings. As a result of the research, Fonterra is procuring a colorimeter to continue their testing. “Colour is measured because it’s an important aspect of a product. It’s the first thing you perceive. If milk powder was brown for instance, you wouldn’t buy it,” she says. Using a colorimeter to measure the colour of the milk powder addresses consistency issues that arise out of using more

JOB SEARCH DESPITE BEING an amazing student with loads of enthusiasm and excellent academic records, Rehana is finding it difficult to gain employment. “It is quite disappointing. It’s hard finding a job. As an international student on a temporary work visa, it’s even harder to find work. “I’m looking all over New Zealand and I am willing to move anywhere. I’m particularly interested in research, product development and technology roles, in the food, dairy and beverage industry.” Rehana remains positive and proud of her achievements as she reflects on her recent studies and success. “I made a lot of friends and I’m really happy that I studied this course. I had so much support from friends and tutors at Wintec. I can’t thank the team at Fonterra enough, specifically Jackie who supported me during my research internship.”

subjective measures like colour charts. “Using a colour chart relies on people’s perception of colour. The colorimeter on the other hand gives a reading for a certain colour based on the data of that colour – using this method, something is either that colour, or it’s

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not. There’s no reliance on individual perception, which can be problematic.” Rehana adds that “there are so many things that affect colour reporting, including how long you keep the sample for, even the colour on the charts can be inconsistent

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Wintec science student Rehana Ponnal’s research has been published in the International Dairy Journal.

for a multitude of reasons.” Using the colorimeter would not only be more reliable but more efficient as a measurement tool. “The current process takes longer as several people’s opinions are required to confirm the colour of a sample. With a colorimeter, you just insert the sample and it gives an instant read-

ing. It’s more reliable and more financially beneficial as there’s less time wasted.” Jackie Wood, a Senior Research Scientist at Fonterra who Rehana completed her internship with, echoes Rehana’s words. “At Fonterra we are constantly looking for ways to measure our products in the most reli-

able and cost-effective way. “During her internship, Rehana carried out measurements on different infant formulas, milk powders and butter to provide information for these products. She also looked at the cost effectiveness of the using the instrument compared to the current way we access colour of our product.

“It’s an important part of what we do so that we can guarantee the safety and quality of our final products in a time efficient and cost-effective way.” Wood says working with Rehana was great, describing her as a very knowledgeable person and worked well independently. Wood adds that “research carried out by scientific staff at Fonterra is often published in journals, but it is rarer for research carried out by students to be published.” After completing an Engineering degree in Biomedical Science, Rehana moved to New Zealand in 2017 as an international student to fulfil her passion of studying food science. Rhys Jones, one of Rehana’s tutors in her Applied Science degree, says Rehana was their “top graduating Bachelor of Technology student in 2019 and was an excellent student.”

DWN ROPES IN NEW PARTNER DAIRY WOMEN’S Network has roped in New Zealand-owned milk replacer supplier AgriVantage as a network partner. AgriVantage supports farmers throughout New Zealand to grow strong, healthy and productive animals. With both organisations providing the industry with the resources to raise happy and healthy calves the partnership was a natural progression, says Dairy Women’s Network chief executive Jules Benton. The partnership means farmers and Dairy Women’s Network members around the country will have access to AgriVantage’s inhouse team of rearing and nutrition specialists through national workshops and regional events. “Along with providing the best technical advice, we focus on helping farmers to optimise the development and production capacity of their stock,” says AgriVantage South Island business manager Cheryl Farrar.

Jules Benton

“We work with those who aim to improve their production capacity and we understand the value that women bring to farming busi-

nesses, so we are proud to partner with the Dairy Women’s Network to help make calf rearing both easier and more profitable.”

DAIRY NEWS FEBRUARY 2, 2021

NEWS // 11

How does Fonterra’s strategy stack up? This is the fifth of five articles by Simon Couper aiming to demonstrate dairy industry strategies in NZ and provide a perspective for viewing Fonterra’s strategy. WHEN I first discussed writing these series of articles with a journalist I was told that, given that Fonterra had recently signed off on a new strategy, the news had moved on to capital structure. So I immediately asked what the new strategy was. Beyond “Value over volume” and rebalancing the balance sheet, the journalist offered no further insight. “Value over volume” is a slogan, not a strategy. Selling assets is not a strategy, it is a tactic for getting the ship off the rocks. The purpose of this article is to identify the key elements successful strategies most often contain. So what is a strategy and why is it important? A strategy is a framework for how we make business decisions. Every decision within an organisation should fit in or be guided by the strategy. A good strategy should determine what its long run goals are and scrupulously prioritise its capital of natural resources, intellectual ability and financial assets to achieve it. If a strategy is unfocused, an organisation runs the risk of going in too many directions, suffering confusion and loss of its competitive advantage. But how is strategy formed? There are two main schools of thought. Micheal Porter theory of the five forces suggests strategy is formed by analysing aspects of the market in which a firm operates. The second school of thought suggests that firms find their core competencies or competitive advantage over time through trial and error. It is not clear to me as to how Fonterra has formed its strategy. What should we see in a good strategy? In my view there are two key drivers. The strategic positions and processes a firm takes to gain competitive advantage, and secondly the vision, values and culture that drives it. In other words, what do we do best and what is the heart and soul that drives our success? Firstly, if the best strategies really are simple then perhaps we need to look no further than our competi-

tors. They have achieved success and their strategic approach is simple to observe. If you have read the first four articles in this series (see www. ruralnewsgroup.co.nz/dairy-news/dairyopinion) you will see the distinct strategic positions that Open Country Dairy (OCD), Tatua and a2 Milk take. OCD’s core strategic advantage of being operationally excellent makes it a cost leader. OCD complements this with an aggregated approach to selling its products to the world. Tatua’s core strategic advantage is its value adding technical specification which empowers it to lead with customer intimacy. Tatua complements this by adapting its product to the needs of its customer. a2’s core strategic advantage is its hold of patents and clever supplier agreements that make it a differentiated product leader. In my view, this clarity and focus is a necessary step an organisation must demonstrate in order to remain competitive. The many directions Fonterra has taken have all been embarked upon with good intent, but what was the strategic framework that bound them and what is the strategic framework that binds them now? The vision or mission put forward for an organisation should galvanise its constituent parts. Fonterra has “Our co-operative empowering people to create goodness for generations. You, me, us together. Tatou, tatou.” The stated purpose has been generated with good intent and no doubt a lot of time was spent in consultation, but as neither “dairy” or “farmers” features in it, I am left wondering if this purpose would equally suit the local honey bee cooperative. Don’t get me started on the phrase “good together”. Shouldn’t our purpose speak of our core strategic advantage or our owners and suppliers? The resilience and fortitude of Fonterra suppliers surely leads the world, particularly given we receive little more than a milk price in an unsubsidised industry.

Have we lost the essence of what delivered such a great industry? Have we lost the desire to control the destiny of an intergenerational farmer owned cooperative? Should we not be striving to be our Customers’ first choice for quality foodservice, ingredients and commodities? As we go forward, any vagueness or lack of commitment to specific goals will most likely result in similar outcomes to what we have seen in the past. Since starting this series of articles two important developments have affected the dairy industry. Firstly, the DIRA was adjusted to allow Fonterra future discretion in whether or not to take back supply that has left. Secondly, a2 milk company’s share price has halved. To me these developments demonstrate how size does not guarantee security if performance is not achieved and shareholders want to leave. We must recognise that legislation on its own will not save our cooperative. New stainless steel is most likely being built not because some farmers are unhappy, but because capital sees an opportunity to capture a better return than what Fonterra can offer. I have written this series on dairy industry strategy because when I look into Fonterra I see excellence but also confusion of direction and purpose. This confusion has lead to less than optimal performance. To me the recent review of the shareholders council was akin to waiting at the bottom of the cliff to club the messenger. As owners of the business we must instead focus on where we are going and how we are going to get there. “Less than 150 years ago he built a farm and milked his few cows. A very ordinary man with no apparently remarkable attributes other than a fierce determination and a burning desire for independence. The structure that rose from these humble beginnings is surely less important in the long run than the philosophy of life he passed on to those who have followed him.” (Yerex, 1989) • Simon Couper is a Waipu dairy farmer and former chairman of Fonterra Shareholders Council.

Straight-forward performance For an affordable herringbone parlour, configured to suit your farming system, choose GEA‘s re-engineered iXPRESS4+. If you’re looking to build new or retrofit an existing shed, you’re probably looking for an efficient and comfortable shed that provides low-fuss performance day-in, day-out. Designed and manufactured in NZ, with the iXPRESS4+ you can milk more cows, with fewer operators, in less time! With perfectly a-symmetrical cluster alignment, plus a clean and thorough milkout, it’s completely unbeatable in its class and totally affordable! Need straight-forward performance like this? We can help, call 0800 GEA FARM. gea.com Driving dairy efficiencies? We can help.

DAIRY NEWS FEBRUARY 2, 2021

12 // AGRIBUSINESS

Fleet tracking helps operation save time and money MARK DANIEL markd@ruralnews.co.nz

HERBERTS TRANSPORT IS a rural trans-

port company, established in 1918, that operates a mixed fleet of around 50 vehicles, including livestock, bulk trucks, spreaders, whey trucks and trailers. Alongside carting products for Fonterra, they also carry gravel, cement, and coal, operate vacuum trucks and a fleet of modern tractors, slurry spreaders and muck spreaders. As a business that supports the dairy and the overall agriculture industry, like many farmers they have a similar focus on increased efficiency,

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in order to keep up with demand and support overall productivity. This led the company to look

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Having a full overview of where all the vehicles in his fleet are means better communication with farming customers for Scott Hutton.

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eliminate time consuming manual processes, and better serve their rural customers. Extensive research led to the installation of Teletrac Navman’s GPS-based fleet tracking system, which alongside streamlining operations, has also delivered large cost and time savings. Having a full overview of where all the vehicles in his fleet are, and what they’re doing, translates into better communication with farming customers, less admin time and a well-maintained fleet for managing director Scott Hutton. “Through the app on my phone, I can quickly check the status of all divisions of vehicles through the easy-to-use overview,” says Hutton. “So, if a farmer asks

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about our ETA, I can easily check the truck location on the app and let them know”, he says. This saves time for both the farmers, who can better manage exactly when they need to meet contractors at the gate with other tasks, and Herberts Transport. Servicing rural areas also means operators need to be on top of Road User Charges (RUC) to ensure you don’t get caught without a licence or lose out on rebates – the latter having a significant impact on a company’s bottom line. Herbert Transport is using electronic RUC monitoring for both diesel fleet vehicles and independent trailers, as it automates RUC licencing and rebates, and calcu-

lates each distance travelled on private roads to provide correct rebates. Previously, managing the RUC on independent trailers was impractical and time-consuming, only needing one broken wire or a driver with multiple trailers to manually enter the wrong RUC details, and it would affect the RUC data, causing headaches down the line. Combined with the auto purchasing technology, the system saves Scott Hutton’s team at least a couple of hours a week in administration time. “When submitting the rebates for private roads, all the info is there. We just click on a button to submit and that means more time saved,” says Hutton.

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DAIRY NEWS FEBRUARY 2, 2021

14 // OPINION RUMINATING

EDITORIAL

Credit is due

MILKING IT... A lesion for Aussies

Shareholder revolt

THE RECENT signing of a revamped free trade agreement (FTA) between New Zealand and China has been noticed across the ditch. Some Aussie commentators have been quick to point out warm trade relations between the two countries and the tumultuous trade ties they endure with one of the world’s biggest market. “New Zealand and China sign Free Trade Agreement upgrade, unlike Australia who sets fire to our trading relationship!” said one. China has slapped tariffs on Aussie wine, grain and beef and there are fears dairy could be next. Maybe the Aussies should take a leaf out of our trade relations book.

ONE OF the world’s largest dairy companies is facing a minor shareholder revolt. French dairy giant Danone shareholder Bluebell Capital Partners criticised the company’s “disappointing” stock price and called for the board to start searching for a new CEO to replace its current chairman and chief executive, Emmanuel Faber. It claims since Faber took over in 2014, Danone has delivered total shareholder returns of 21% compared with 56% for the Stoxx Europe 600 Food & Beverage, 97% for Nestlé and 101% for Unilever. Sounds familiar? Fonterra was in a similar position three years ago, with depressed unit prices and poor returns from investments. It took a change in Fonterra’s leadership to steady the ship. Could Danone be heading the same way?

Tractor power

Name fight

REMEMBER SHANE Ardern driving his tractor up the Beehive steps in Wellington 17 years ago? Well, Indian farmers have delivered their message in almost similar fashion; last week thousands of farmers and their tractors converged on the historic Red Fort in New Delhi. They are demanding that the Government repeal recent farming laws that would minimise the government’s role in agriculture and open more space for private investors More than 60 percent of India’s 1.3 billion people still depend primarily on agriculture for their livelihood, though the sector accounts for only about 15 percent of the country’s economic output. NZ food exporters would love an open Indian market but don’t hold your breath because it seems ‘farmer power’ could force the Indian Government to buckle soon.

EUROPEAN PLANTBASED milk brands are spearheading a campaign to overturn new proposed EU rules that could have dire consequences for vegan food companies. A ruling by the European Court of Justice in 2017 has already banned vegan food producers trading in the EU from using terms such as “oat milk” and “soya yoghurt” on packaging. But if new rules known as Amendment 171 are approved, producers will not be able to use terms or imagery on packaging which refer to or evoke dairy products. If interpreted broadly, the amendment could prevent them from including claims or denominations such as “dairy”, “creamy”, “yoghurt-style dessert” or “does not contain milk”. They would also be unable to use packaging designs that call to mind dairy products, such as yoghurt pots or milk cartons. Even simply showing climate impact by comparing the carbon footprint of their products with dairy equivalents could become illegal.

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IT’S OFFICIAL! New Zealand dairy farmers have the world’s lowest carbon footprint – at nearly half the emissions of other international producers. AgResearch analysis released last week confirmed New Zealand retained first position in low-emission dairy milk production, with an on-farm carbon footprint of 46 % less than the average of 18 countries studied. The report’s release came on the eve of the Climate Change Commission releasing its draft advice for public consultation. As public consultation on the commission’s report is now open, it’s imperative that the Government takes into account the AgResearch report when it makes decisions on climate change. The Government should celebrate, rather than decry, the excellent work our dairy farmers do, and work with them to maintain this world leadership. Its new policies must reflect the work farmers are already doing. The research analysed 55% of global milk production, including major milk-producing countries. New Zealand was the most efficient producer at 0.74kg CO2e/ kg FPCM (fat and protein corrected milk). The average was 1.37kg CO2e/kg FPCM. New Zealand was followed by Uruguay at 0.85kg CO2e/kg FPCM, Portugal at 0.86, Denmark at 0.9 and Sweden at 1. Peru clocked in as the highest emissions producer among the countries studied, at 3.29 kg CO2e/kg FPCM. The research has played a key part in understanding how New Zealand dairy farms stacked up, and informed how Kiwi farmers could be even more efficient. DairyNZ says New Zealand’s dairy sector is committed to remaining the most efficient producer of low emissions milk in the world. The sector’s focus is sustaining success as consumers and communities increasingly seek sustainably produced food. There is a huge amount of work underway to support farmers to reduce emissions. NZ dairy farmers’ hard work and investment over decades has contributed to this world-leading status. Our grass-based, outdoor grazing system is unique globally and is critical to our success. For NZ dairy farmers, pasture-based farming and genetic improvement are key components to their low carbon footprint. They agree that more can be done and that they must continue to adapt and adopt new technology and knowledge. Our global competitors are never far behind, plus farmers know it is the right thing to do for our environment, our consumers and humanity as a whole. It’s time the Government starts recognising the efforts farmers are putting in behind the farmgate when it comes to climate change.

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DAIRY NEWS FEBRUARY 2, 2021

OPINION // 15

NZ’s trade challenges Agriculture and Trade Minister Damien O’Connor recently spoke at the Auckland Trade and Economic Policy School, emphasising the importance of trade in the Covid era. Here are excerpts from his speech: WE ARE a global exporter, based at the bottom of the world. Imports and exports are our lifeblood – essential to our quality of life and our wellbeing. Prior to the pandemic, about half of all New Zealand jobs came from the tradeable sector. Firms in the tradeable sector are 54% more productive; they employ more New Zealanders when they start exporting; and

accelerate New Zealand’s economic recovery, and lay the foundations for a better future. Global Headwinds But make no mistake, New Zealand faces a very challenging global trade landscape today. Even before the COVID-19 pandemic, New Zealand faced significant headwinds in global trade. The World Trade Organisation, and its system of trade rules

chandise trade. New Zealand GDP contracted by 2.0%in the June 2020 year. This was a much better economic performance than many expected back in February and March. Indeed, since June we’ve seen

our economic performance continue to outstrip expectations, with measures such as the Treasury’s New Zealand Activity Index showing economic activity levels in October higher than the same time last year.

However, given recent second waves of COVID19 in many parts of the world, Treasury now expects the global impacts of COVID-19 to weigh on us for longer, and is forecasting a contraction of 0.5% in 2021.

which puts small countries like ours on an even footing with global powers, has been under growing pressure on a number of fronts. Protectionism and strategic competition, most notably between China and the US, has threatened the stability of international trade. The escalating tariff disputes between the US and China caused trade to fall sharply, with global ramifications. As a small, export-oriented economy, it is hard to overstate the importance to New Zealand of a trading system underpinned by rules rather than economic influence – or an economic ‘might is right’ attitude. The COVID-19 Pandemic COVID-19 has unfortunately exacerbated many of the international challenges that we already faced. COVID-19 responses around the globe have disappointingly been accompanied by a sharp increase in trade distortions – most commonly increases in subsidies. These make it harder for New Zealand to compete fairly. We have seen the effect of these distortions in global trade flows. Initial estimates for the second quarter of 2020 – when the virus and lockdowns spread around the world – indicated a year‑on‑year drop of around 18.5% in the volume of global mer-

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And just as we have seen exports lead us through the worst of this crisis, it’s my intention that exports will lead our recovery from it. they pay more compared to firms in the non-tradeable sector. The pandemic has also brought into stark relief just how essential imports are to New Zealand’s economic success and wellbeing. Imports of COVID-19 testing kits and PPE; and imports as inputs in to our own production processes are critical. New Zealand businesses operate as part of complex international supply chains, and the risk that a loss of air connectivity posed to our people, and our economy, during COVID-19 underscores how vital trade is to New Zealand. But throughout this pandemic, our trade has held up remarkably well. Merchandise exports have largely kept pace with, or exceeded, last year’s, which is incredible during one of the biggest recessions the global economy has seen. And just as we have seen exports lead us through the worst of this crisis, it’s my intention that exports will lead our recovery from it. Our successful response to COVID-19 provides New Zealand with a unique opportunity to position ourselves globally as a safe and secure place to trade with, to invest in, and eventually, to visit again. That’s why we’ve developed our Trade Recovery Strategy and our Trade for All Agenda, to seize this opportunity,

Agriculture and Trade Minister Damien O’Connor.

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DAIRY NEWS FEBRUARY 2, 2021

16 //â&#x20AC;&#x201A; MANAGEMENT

Gong for cattle handling skills A TARANAKI teenager has been recognised for his cattle handling skills, ability with a pair of clippers and all-round talent, at a competitive dairy cattle event in Southland. Neko McDonald, 16, was awarded the Paramount Cup at the National All Dairy Breeds Youth Camp in Wyndham, Southland this month. The award recognises the top performing Holstein Friesian New Zealand youth member at the camp. The four-day event attracted 18 participants from across New Zealand who were all given their own heifer calves to look after for the camp which they had to feed, groom, teach to lead on a halter and get show ring ready. Neko, a year 11 student at Francis Douglas Memorial College in Taranaki, says the highlight of the event was being able to meet like-minded young people and seeing what can be achieved with stock in a short period of time.

â&#x20AC;&#x153;It was quite amazing. You get the heifers on the first day and they are towing you around and canâ&#x20AC;&#x2122;t lead and then to see where you get them at the end of the camp is quite amazing.â&#x20AC;? Neko lives on a dry stock property but says he developed a passion for breeding and showing dairy cows. He says he learned a lot over the four-day camp. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not the biggest fan of clipping but Iâ&#x20AC;&#x2122;m slowly getting better. I also liked learning more about leading and being shown how to lead properly. It really made sense once you saw it.â&#x20AC;? Neko says in the future he would like to have his own stud and eventually his own business as a stock agent. At times the camp, held at 4 The Girls Dairies, owned by Niels Modde and Jodie-Lee Templeman, resembled a hair dressing salon as camp members shampooed their heifers and used electric clippers to

prepare and trim their coat. Clipping a heiferâ&#x20AC;&#x2122;s coat and holding her head correctly in the show ring can help enhance the animalâ&#x20AC;&#x2122;s appearance and minimise its flaws. Participants were also schooled in using social media to promote their own animals and their studs and spent time completing team building exercises and learning about animal health.

Neko McDonald was the top performing Holstein Friesian New Zealand youth member at the camp.

ART OF CLIPPING OTHER AWARDS given at the camp included the Dennis Terry Memorial Trophy which went to Dylan Beardmore and the Best Presented Heifer trophy which went to Brad Seager. Brad was also the winner of the 2020 Holstein Friesian Black and White Youth Photo competition with his heifer Westell Alcove Lacey. It was Dylanâ&#x20AC;&#x2122;s second time at the camp, and he won the trophy for most

improved clipping. The 17-year-old is currently working on his parentâ&#x20AC;&#x2122;s dairy Taranaki farm where they milk 600 Holstein Friesians and a second herd of 300 cross bred cows. He is also studying at the Primary ITO. â&#x20AC;&#x153;It was nice to win the award for the clipping. There is an art to it, and it takes time and practice to perfect it. Iâ&#x20AC;&#x2122;m not perfect yet, but I try.â&#x20AC;? Dylan said he enjoyed preparing his heifer and having a good animal to show off. Heifers used at the camp were provided by Owen and Cathy Copinga from Rivendell Stud and 4 The Girls Dairies.

Brad Seager won the Best Presented Heifer trophy.

â&#x20AC;&#x153;We got a good idea of the type of animals at Rivendell. I would definitely recommend the camp to other young people to improve your skills and meet other people in

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DAIRY NEWS FEBRUARY 2, 2021

MANAGEMENT // 17

Failing to plan is planning to fail SEEMS basic human nature that when things are tough, we become very focused on surviving. We concentrate on doing the essential things that will enable us to get through the pressure or difficulty we are facing. Likewise, when things are going well, we often kick back and relax. Many of the disciplines that enable us to get through a tough time go out the door and we let things slip. Farmers are no different. Good farmers keep doing the things that make them successful in both tough times and good times. They take control of the things they can control and try and set themselves up so that they are not too affected when things don’t go as expected. It is the same for maize growers. High quality, high yielding maize is made by a series of good decisions. It is not something that happens by accident. While most of the yield affecting decisions will have already been made by now (e.g., hybrid choice, plant-

ing date, nutrient input etc.), there are still a few things most farmers can do to ensure they maximise yield and make the best quality maize silage. These are as follows: Get in the queue Contact your contractor and let them know when your maize is likely to be ready. This enables the contractor to plan their work schedule and put you in their work queue. If the crops in your region get affected by lack of moisture, disease, or frost, it is likely everyone will want their maize silage harvested at the same time. Better planned farmers usually get their maize silage harvested on time. Poorly planned farmers usually have to wait. Get the person harvesting and stacking your maize to come out and look at where you are planning to stack it. They can look at site access, closeness to drains, sheds and fences and assess any potential health and safety hazards (e.g., overhead powerlines). You may need to drop some fences to

ensure safe and efficient access to your stack site. Clean up your storage area. Clear away and dump any rubbish. Bait for rats at least three weeks prior to the maize being stacked to ensure you have dramatically reduced their numbers. Make sure the fences around the storage area are stock proof. Ensure you have enough tyres Check that the number of tyres you

have available will be enough to fully cover the stack. Remember that the aim is to have tyres touching across the whole stack. Buy an inoculant that works Order your inoculant, making sure you buy a product which has been proven to work. Look for products that have been trialed by independent organisations (e.g., universities), with label claims around the number of bac-

teria in the product and after sales service you can trust. There are a lot of unproven silage additives in the marketplace that are simply a waste of money. Harvest at the right time. Contact the merchant company who sold you maize seed and ask them to check your crop. They should be able to give you a reasonable idea of an approximate harvest date simply by looking at the plant’s stage of growth. The aim is to harvest somewhere between 32 - 38% DM. Any earlier than this will mean there is likely to be some yield loss due to less starch. Usually drier crops are more difficult to stack and therefore ensile however it should be noted that some very high grain maize silages can be drier and yet still easy to compact. Crops which are badly affected by disease, drought or frost are likely to be ready earlier than those which are healthy and green all the way to the base of the plant. Crops in hotter regions are also more likely to be ready sooner than those in cooler regions. • Ian Williams is a Pioneer forage specialist. Contact him at iwilliams@genetic.co,nz

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DAIRY NEWS FEBRUARY 2, 2021

18 // ANIMAL HEALTH

Too busy to herd test in October CAMBRIDGE DAIRY

farmer and breeder Brad Payne would herd test ten times a year, but he works as an LIC AB Technician during October so reluctantly sacrifices data he’d get during that month of the year. And while he accepts that herd testing four times a year is standard practice, Brad admits he’s no ordinary farmer and does things “a bit differently.” He copes fine with his nine, as opposed to 10, herd tests annually, he says. “For me, it’s all about data and the insights it provides,” Brad says. “Herd testing is crucial to any farmer, without a herd test you have nothing to go on. “Just look at any business, like banks for example: Now they do budgets and audits on their financial positions all the time. It’s just a way of doing basic checks and balances and making sure nothing is amiss. “Farmers are no different – to me the herd test is a basic, regular, audit. I need to see the profitability and health status of each cow. Each cow is a profit centre; some profit centres will perform and make me money, but

Four herd tests provide information on:

Brad Payne’s first several herd tests of the season sorts out the herd’s best new milkers and influences mating decisions.

I need to identify and weed-out the ones that don’t.” Given the state of his herd, it’s hard to argue with Brad’s strategy of constant measuring and monitoring: His herd’s breeding worth and production worth (BW & PW) are ranked in the top-2% and top-1% respectively of the national milking herd (i.e. all herd-testing herds that milk a minimum of 50 tagged cows). A system four farm, Brad’s 750-strong milking herd is 25% Jersey,

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25% Friesian, and 50% KiwiCross cows. Even in a low payout or drought year, Brad’s advice to fellow farmers is to avoid cutting the herd test from the budget; rather, it should be thought of as a nondiscretionary investment, he says. “During a low payout if you’re saying no to even a single herd test, well that’s a year’s worth of figures you’ve lost. I know that all people don’t sell or do the breeding thing, but if I was that sort of farmer who was without

a single test, I’d have no idea of what’s going on.” While parentage information is useful, it’s not enough, Brad says. “Her parentage might be good, but she could perform a long way from what the parent average is, because that’s nature. Parentage information, even genomic information, reduces risk – but I still put a lot of emphasis on the first herd test.” As a breeder, Brad uses his herd test information late-June and September to identify young cows for embryo transfer work. “If

the genomics says they’re good and the early herd test information says they’re good, I’m happy. The herd test serves as good confirmation of decisions we make.” Because the farm also does all-AB, it consistently has surplus heifer calves, and herd test information provides Brad with information on, for example, month-old calves. “So when I’m in a position to sell some, I’m always selling off my bottom-end,” he says. The January herd test samples double as a test

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for Johne’s disease information, data that feeds in to the farm’s 10-year Johne’s control plan. As a commercial farmer, Brad says herd testing is crucial in monitoring somatic cell counts, helps dictate mating decisions, helps decide on culls as possible feed pinches emerge, and heavily influences which surplus cows to sell (should there be a high number of replacement stock). But the herd test is also a way of knowing which cows are delivering

‘honest’ milk. “The milk docket gives you your herd average, but the herd test tells you who your really good cows are, and who aren’t.” At the end of the season, herd test information is used for dry off decisions, with daysin-milk and production worth balanced against the health and wellbeing status of the cow, and individuals picked out for targeted dry cow treatment. @dairy_news facebook.com/dairynews

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DAIRY NEWS FEBRUARY 2, 2021

CULTIVATION & CROPPING // 19

Growing a leafy vegetable for cows could reduce N leaching INCORPORATING CERTAIN varieties of

plantain into a cow’s diet has been shown to reduce the nitrogen concentration in their urine, which can leach through soil into groundwater. To test the benefits in local pastures, DairyNZ has been leading the Tararua Plantain Project in the lower North Island, where farmers have been growing the leafy herb for their cows. The Ministry for Primary Industries is also involved as a key contributor. Tararua dairy farmers Blair Castles, Mark Diamond and Brad McNaughton are already using plantain in their pastures. As System 2 and System 3 farmers and members of the project’s monitoring group, they’re keen for others to learn from their results.

BLAIR CASTLES DANNEVIRKE DAIRY

farmer Blair Castles is a farmer on a mission. He says when he found out DairyNZ was suggesting using plantain to reduce nitrogen (N) leaching, he was keen to get on board. He’s just one of several farmers in the area who are tackling the issue head-on – and sharing their findings with other farmers. “I like what DairyNZ is trying to achieve and I’m keen to show other farmers what plantain is like in a sward,” says Blair. “To reach the Horizons Regional Council targets, we have to reduce N leaching on our farm by eight to nine kg/ha. All of us in the region need to get on board and do our best to be compliant.” Blair has been using plantain, along with chicory, for about six years. He’s looking at taking out chicory and lifting the rate of plantain. At present, chicory is 10% of his sward; plantain’s about the same. “It wasn’t difficult to establish but it’s been very effective. “We wanted to use more herbs in our ‘fruit

DairyNZ catchment engagement leader Adam Duker and local dairy farmers Mark Diamond, Blair Castles and Brad McNaughton.

salad’ pasture of ryegrass and clovers. We’ve achieved this and the cows like it. Depending on the trials, we could increase plantain in the future. We’ll do anything we can to be compliant with the council regulations.” Blair plants plantain in autumn, after the summer turnip crop has been lifted. He has a 15% regrassing programme underway, so it’s early days in terms of results with plantain. “When I first started using it, I had some concerns around bloat on plantain, which doesn’t happen with chicory. We had to monitor it but so far, we haven’t had any problems. As a precautionary measure we add bloat oil to the drinking water, which covers the clover as well, and this seems to be working well.” He plants kale in winter and will also add fodder beet to the mix this year. “We used to grow swedes for our main winter crop, but this year we’re changing to fodder beet on the runoffs and a bit on the milking platform as well.”

Blair tries to keep his use of urea low: about four tonnes per year on the 100ha milking platform. He says this seems to be an effective ratio, so it’s not necessary to pump more on. “Farmers in the area are being proactive and we have council support, so working with the scientists has to be a good thing – I’m all for it. The One Plan limit-setting process can be quite overwhelming for farmers, but when you’ve got DairyNZ scientists doing this research it’s not so daunting. I’m very happy to help and be part of it.”

BRAD MCNAUGTON BLAIR’S NEIGHBOUR

Brad McNaughton has already done a few farm trials of his own and is including chicory and plantain in his pastures. About four years ago he started using ‘Rocket Fuel’ – a mix of plantain and chicory with white and red clovers. “Plantain did well, so we’re now including it in our regular regrassing programme,” says Brad. “We’re regrassing about 12% of the pasture a year, incorporating 2kg plantain with 25kg rye-

grass and 4kg clover. “Plantain has deep roots and is drought-tolerant, which is good for us because we’re not irrigated and it can get very dry here in the summer. I’m waiting to see how we go in autumn and whether the cows find plantain less palatable.” Brad says the monitoring group meets every three months, or before drilling, to gauge what everyone’s doing and share information about the trial. “Next season we’ll sow in spring. I find you have to be exact with sowing plantain. We spray out with a herbicide after the turnips are lifted and direct drill the seed. “I learned farming through DairyNZ discussion groups and talking to others, but it will be a big step to plant 30% plantain. To some extent, it will come down to cost. Herbs are just another species in the paddock but if the trials are successful, we’ll aim to gradually increase plantain in our pastures until we reach 30%.”

MARK DIAMOND

MARK HAS been using

plantain for three years.

In a 10ha trial, he’s using about 2kg plantain/ha as part of a mixed sward with ryegrass and clover, which he sows after the summer turnip crop has been lifted.

“Plantain is easy to grow and is part of our ongoing regrassing plan. It’s easier to manage than chicory and the cows love it.”

DRAINAGE AND SOIL AERATION PAY BIG DIVIDENDS Don’t put good fertiliser on compacted soil which can’t absorb it. If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?

Mark says farmers know they must make changes but, because every property is different, there’s no ‘one size fits all’ solution. “We all live in houses of different shapes and sizes with different coloured roofs. Farms are much the same. Brad’s property is completely different to mine, even though we share a boundary fence. It’s definitely a hard one. Some farms have higher rainfall than others, and there are different options available to help reduce leaching, like off-paddock infrastructure and changes to farm systems – but these all come at a cost.” Mark is also trying a few other things, like using gibberellic acid and liquid urea, to strategically-reduce N losses and increase pasture growth at times when growth rates are typically low. • This story first appeared in Getting the Basics Right 2021 edition.

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DAIRY NEWS FEBRUARY 2, 2021

20 // CULTIVATION & CROPPING

Reducing phosphorus leaching in soil PHOSPHORUS (P) IS

critical for healthy plants to grow in New Zealand’s naturally P deficient soil, says Hamilton-based Soil Scientist Dr Gordon Rajendram. However, the shifting

“P losses to the environment, from either of these sources, can also affect farm profits.” of P from farmland soils to local bodies of water has become a serious

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P loss comes from many sources but the contribution from fertiliser can be easiest to address. The two pathways of P loss have been identified as overland flow and leaching through the soil profile. “P losses to the environment, from either of these sources, can also affect farm profits, so it’s smart business sense to minimise them where you can,” says Rajendram. The article also recognised that reducing P loss within farm systems independent analysis identifies the use of low water-soluble fertilisers to be one of the least cost mitigations to achieve this. Rajendram says his own 2012 paper on P loss concluded that peat soils will lose more P than other soils. “This is shown in my paper when I separate the four different soil types used for agronomic advice (ash, sedimentary, peat and pumice). It only needs 0.1kg of P in one hectare with 400mm of drainage to cause eutrophication.” Losses in an AgResearch study showed on two peat farms losses

were 5kg and 46 kg/ ha/ year, and were directly related to P retention ability of the soils. There are other soil types around NZ with low phosphate retention ability which will be losing P readily. “The issue lies in the fact that highly soluble P fertilisers are still being sold to peat soils in Waikato and Hauraki Gulf. And farmers are unaware of this issue,” says Gordon. Using a lower watersoluble P fertiliser can reduce the loss of P into waterways. However, it is important to remember that fertiliser itself is only one facet of a good fertiliser management system. Ensuring that it is applied at the right time, place and rate is equally important. Rajendram worked at AgResearch, Ruakura Research Centre, Hamilton for 22 years. He has developed two field calibrated soil tests (N & S) which are used for agronomic advice in New Zealand. He now consults to farmers and fertiliser companies. @dairy_news facebook.com/dairynews

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MACHINERY & PRODUCTS // 21

Tuatara built for rough terrain MARK DANIEL markd@ruralnews.co.nz

THEY SAY beauty is in the eye of the beholder. However, while the Tuatara UTV won’t ever win a pageant, it certainly looks the part, much like a military vehicle and something that would be driven by Arnold Schwarzenegger. Having come across the vehicle on a trip to China, Geoff Hill and partner Qingnei Pang established Tuatara Machinery Limited in 2017, with the aim of customising the UTV to specifically suit New Zealand conditions and beyond. Fast forward, the Tuatara of today, named after an ancient lizard that can live for up to 100 years, is aimed at farmers, foresters, hunters, contractors and utility workers who

need a vehicle to deal with extreme terrain. Featuring an all-steel construction, this UTV is often compared with the iconic Willys Jeep or Land Rover Defender. Hill admits that the overall design has followed a simplistic approach, meaning that maintenance and repairs are easily accomplished in the field or at a local garage, with parts readily available and competitively priced. At the heart of the machine, a 3-cylinder, water-cooled Chery petrol engine with Bosch EFI pushes out 69hp through a manual 5-speed gearbox, with selectable two or four-wheel drive modes. Additionally, independent front and rear axle diff-locks make sure the vehicle can cope with the toughest conditions. Offering the ability

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The Tuatara UTV is for someone who needs a vehicle to deal with extreme terrain.

care of by independent single-wishbone with McPherson struts up front, with independent double A-arms and dual coil springs at the rear, combining to offer ground clearance of 310mm.

Bringing things to a safe stop falls to servo-assisted disc brakes on each corner of the machine. Weighing in at around 1000kg, so substantially

tray is 500kg, while the tow-bar is rated to 1000kg capacity. Hill says the development of the Tuatara is in direct response to customers who were find-

ing ATV-derived UTVs just weren’t up to the job in extreme conditions. “Hopefully, we can deliver toughness with the all-steel construction, with just a small amount of plastic in the cabin interior. We also deliver durability with oversized components, an electro-phosphate primer and the twin-pack exterior paint finish,” say Hill. Departing from the more conventional CVT-type transmission usually used in most machines of this type, it uses a 5-speed manual transmission that Hill says is easy to use, offers engine braking via the gears on downhill sections, while a low bottom

gear allows stock to be followed at walking pace at engine tick-over. In the operator station, a substantial ROPS structure combines with retractable lap belts to keep up to three personnel safe, while a fold down windscreen helps protect against the elements. Standard equipment includes LED headlights, fog lights and a roof-mounted lightbar, roof rack and snorkel air intake, Bluetooth radio and a front-mounted 1360kg electric winch. An electric hoist system is used to tip the rear load tray, while a front mounted carrying tray also offers up to 150kg capacity. Warranty on the Tuatara is 12 months/800 hours/8000 kilometres, or whichever arrives first. www.tuataratv.com

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