Dairy News 11 May 2021

Fonterra unveils capital structure plan. PAGE 3 DIGITAL DAIRY Connecting farmers online PAGE 24

Turn to page 1 MAY 11, 2021 ISSUE 470 // www.dairynews.co.nz

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Fonterra unveils capital structure plan. PAGE 3 DIGITAL DAIRY

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Connecting farmers online PAGE 24

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MAY 11, 2021 ISSUE 470 // www.dairynews.co.nz

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Taranaki farmer John Wyatt is the first person to win New Zealand Dairy Industry Awards regional titles in all three catergories.

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DAIRY NEWS MAY 11, 2021

NEWS // 3

Have your say!

“For farmers this is not only about their individual farming business but the continuation of Fonterra as an inter-generational co-operative in the future.” – James Barron

SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA FARMER share­

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holders are being urged to have their say about how the co-operative’s new capital structure should look.

Fonterra Shareholders Coun­ cil chairman James Barron says the next few months will be crucial for the co-op’s 10,500 farmers.

“Therefore, it is important for them to turn up at meetings and have their say about the co-oper­ ative’s capital structure,” he told Dairy News.

“For farmers this is not only about their individual farming business but the continuation of Fonterra as an inter-generational co-operative in the future,” he says.

Barron says the council has been briefed on all the options on the table.

Over the next few months, coun­ cillors will accompany the Fonterra board and management as they seek feedback from farmer shareholders.

Barron says the council has a dual role: to help farmer sharehold­ ers understand the options on the table, and ensure farmer perspective back to the board.

To help farmers, the council will engage external advisers who will provide their views on the proposal.

Post consultation, the council will work with the board to make any variations needed to get the final proposal over the line at the co-op’s annual meeting.

Barron says the review process could be unsettling for some farm­ ers but he urges them to be part of

Fonterra chairman Peter McBride.

the discussions.

Fonterra chairman Peter McBride says the co-op is providing options so that all farmer shareholders can have a discussion and decide the best option.

“We are not saying here’s our capital structure proposal, take it or leave it,” he says.

“It’s about understanding the hearts and minds of our sharehold­ ers; it’s not the mind that just mat­ ters, it has to be the heart.”

The co-op last reviewed its cap­ ital structure 10 years ago when

Trading Among Farmers was intro­ duced. Back then milk supply was growing rapidly in New Zealand. It now needs to be prepared for flat or potentially declining milk supply as a result of factors such as cli­ mate change impacts, regulatory changes, and alternative land uses, says McBride. ”Our co-op’s financial perfor­ mance will always be the main deter­ minant of our share of New Zealand milk.

“But we also know that a more flexible capital structure, that caters

for the diversity and different aspi­ rations within our co-op, would sup­ port a sustainable future milk supply.

This is critical for us to deliver our strategy, which prioritises New Zea­ land milk.”

Fonterra warns that declining milk volumes or more flexibility for farmers’ shareholding require­ ments could cause the Fonterra Shareholders Fund size to grow significantly. That would mean the thresholds that were put in place to help protect farmer ownership and control could be exceeded within the next few seasons.

“To stay within the Fund size thresholds, our co-op would need to take action – such as buying back shares or units or increasing the thresholds to allow a greater degree of external investment. We don’t think either of these are ideal out­ comes.

“Buy-backs create an uncertain demand on our capital, potentially impacting our ability to invest in strategy and growth. Under the sce­ narios that we’ve modelled, buybacks could cost shareholders up to $1.2 billion over the next ten sea­ sons,” McBride says.

DAIRY NEWS MAY 11, 2021

4 // NEWS

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

FONTERRA’S BOARD

and management get on the road from this week to discuss capital struc­ ture options with farmer shareholders.

This week, the annual Fonterra network confer­ ence in Auckland will hear from the co-operative’s board and management.

Over the coming months, farmers will have the chance to share their views through a series of meetings and webinars.

Fonterra says if the appetite for change remains, the board will do further work to refine the preferred option or options and have a second round of consultation.

Any changes to the co-op’s capital structure require 75% approval from voting farmers. A farmer

Ensuring Fonterra has a sustainable milk supply going forward is one of the key reasons for its capital structure review.

vote will take place around the co-op’s annual meet­ ing in November.

If the preferred out­ come is to buy back the Fonterra Sharehold­ ers Fund, it would also require the approval of 75% of votes from voting unit holders.

Fonterra chairman Peter McBride says it has been talking to the Gov­ ernment about the pro­ posed changes. As some

aspects of Fonterra’s cur­ rent capital structure are reflected in the Dairy Industry Restructuring Act 2001 (DIRA), changes to legislation by Parliament will be needed.

McBride notes that DIRA enabled Fonterra to be formed so that an effi­ cient co-operative of scale could lead New Zealand into global markets.

The value Fonterra creates is returned to

regional New Zealand, where it plays a strong role helping to sustain local communities and enhance their wellbeing, he says.

McBride says Fonter­ ra’s board has spent a sig­ nificant amount of time looking at a wide range of options, including stay­ ing with the current struc­ ture.

It has a preferred option: a “Reduced Share

Standard with either No Fund or a Capped Fund”, which has unanimous support among the board and management.

McBride says the board believes the best option for the co-op is to move to a structure that reduces the number of shares a farmer would be required to have and either removes the Fund or caps it from growing further, to protect farmer ownership and control.

Under this option, the minimum requirement for farmer owners would be one share for every four kgMS supplied to the co-op, compared with the current requirement of one share for every kgMS supplied.

At the other end of the scale, farmers could hold shares up to a maximum of four times their milk supply.

But farmers will be encouraged to share their views on these and other features, adds McBride.

“This would make it

easier for new farmers to join the co-op and give more flexibility to existing farmers who may want to free up capital or who are working through suc­ cession.

“A key outcome of this change is that shares would be bought and sold between farmers in a farmer-only market.

“I want to be clear that these changes could impact the price at which shares in our co-op are traded, and there may not be as much liquidity in the market. Ultimately the price for farmers’ shares would be determined by the performance of the co-op and trading between farmers.

“We believe this is a more sustainable proposi­ tion over the longer term than the alternatives we are confronted with.”

McBride says this is the board’s current think­ ing, but they are open minded about adjusting that direction based on farmer feedback on any of

the options.

“We want to hear from as many of our farm­ ers as possible. I strongly encourage all farmers to consider the information provided and participate in the consultation pro­ cess that started today and continues over the coming months.”

Some of the alternative structures the board con­ sidered include: ■■ dual share structures, which would move from the current single co-operative share to a compulsory supply share and a sepa­ rate non-compulsory investment share ■■ unshared supply struc­ tures ■■ a traditional nominal share structure ■■ a split co-operative model McBride says the coop’s capital structure needs to be addressed urgently.

He notes there is a real sense of optimism in the co-op with its improving financial performance and how it is travelling gen­ erally.

“But the issues raised through this review need to be addressed early.

Waiting for the prob­ lem to be at our feet will limit our options and likely increase the cost of addressing them, at the expense of future oppor­ tunities for us,” says McBride. @dairy_news facebook.com/dairynews

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FONTERRA HAS temporarily capped the size of the Fonterra Shareholders’ Fund by suspending shares in the Fonterra Shareholders’ Market (FSM) from being exchanged into units.

This temporary cap came into effect when a trading halt on Fonterra shares was lifted. It will remain throughout the consultation process.

Fonterra says the decision to cap the fund size wasn’t made lightly.

“It was clear from the outset that consultation for this review would be more challenging than last time because both shares and units in the Fund are traded securities and we need to comply with continuous disclosure rules.

“As we progressed the review and started looking into options that included buying back the Fund, we identified a risk that, if we started consulting on options for change without temporarily capping the

Fund, the Fund size could have grown significantly and taken the option of buying back the Fund off the table before farmers had a chance to consider it.”

Some of the options have the potential to see differences emerge between the price at which a share trades in the FSM compared to what a unit in the Fund trades at, with units trading at a higher price than shares.

If the temporary cap was not in place, anyone holding dry shares would be able to exchange them into units in the Fund. This could more than double the size of the Fund and make options that include buying back the Fund unaffordable in the context of our current balance sheet targets.

The co-op says the temporary cap was a necessary step to keep all of options for change open while shareholders have a free and frank conversation as owners.

DAIRY NEWS MAY 11, 2021

NEWS // 5

Muller keen to help farmers combat mental health SUDESH KISSUN sudeshk@ruralnews.co.nz

FORMER OPPOSITION Leader Todd

Muller believes talk­ ing about his brush with mental illness could help dairy farmers facing simi­ lar issues.

At the recent DairyNZ Farmers Forum, Muller opened up about his 53 days as leader of the National Party. He resigned as leader and took stress leave from Parliament.

He told about 400 farmers that the dairy sector has faced criticism for a long time.

“This is the same sector that people acknowledged was keep­ ing the country afloat over the past year or so,” he says.

“There needs to be a great commitment to sup­

port these people in times of challenge. That’s why I’m standing here.

“I hope sharing my journey can assist you in any way to have hard conversations with your neighbours.”

Muller says he wasn’t an expert in mental health issues but was someone who had lived the expe­ rience.

“I was one of those younger guys in school that talked too much and wanted to be Prime Min­ ister one day,” he says.

“I was obsessed with politics and it ended up biting me a bit.”

Muller’s stint as oppo­ sition leader hadn’t started well and the first few days were taken up by media frenzy around a red hat in his office.

Five days into the job, while being driven back to Tauranga, he suffered the first panic attack.

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Over a third of New Zealanders have experienced mental distress, and of those people, 19% have reported being discriminated against.

Former National leader Todd Muller and his wife Michelle.

He started talking to himself in the back of the car. Reaching home, Muller says he burst into tears and hugged his wife.

“Now I had experi­ ence hugging my wife but never bursting into tears,” he says.

A few days later the panic attack happened again. Muller says on the farm it can be extremely

challenging for the farm­ er’s partner.

He points out that it’s important to seek help outside the family: to have a conversation with some­ one other than the wife or partner. In his case it took a conversation with some­ one other than his wife for “honesty to be put on the table”.

Muller says part of the

reason he’s publicly dis­ cussing his experience is because his teenager kids are okay with him shar­ ing it.

“Their mates thought it was cool I was sharing it...15 years ago having a mental breakdown pub­ licly would have been the end of my career,” he

50% of mental distress discrimination occurs in the workplace.

This e-learning package builds on the first series of the Mental Health Foundation’s Open Minds resources. It focuses on helping people managers in both outdoor and indoor workplaces understand why opening the conversation about mental health in the workplace, supporting employees with mental distress through the tough times and creating mentally-healthy workplace cultures hold both financial and workplace culture incentives.

says.

“My kids’ mates were comfortable around con­ versations on mental health. When we were kids there’s no way we could have a conversation like this.”

Muller, a former Fon­ terra executive, pledged to help farmers in any way

he can. He understands how it feels to be alone.

“I felt desperately alone and I have a loving wife and loving family, when I was opposition leader, I could not have been more alone.

“Just alone by yourself on the back of the farm, I know how you feel.”

INDUSTRY BACKS RECYCLING SCHEME JESSICA MARSHALL jessica@ruralnews.co.nz

AN ON-FARM plastic recycling ini­ tiative, Plasback, seems to be gaining momentum as the agricultural indus­ try moves to reduce its environmen­ tal impact.

Two New Zealand silage wrap importers, Nutritech and Tulloch Farm Machines, have joined the

scheme. The Plasback scheme is a voluntary, user-pays system which collects silage wrap and some chemi­ cal drums direct from the farm gate.

“Last year, the Ministry for the Environment decided that all farm plastics sold in this country will have to be covered by an accredited prod­ uct stewardship scheme,” says Plas­ back manager Chris Hartshorne.

“This means everyone in the farm plastics supply chain – from manufac­

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turers through to consumers – will be responsible for recycling leftover plas­ tic products and packaging.”

The company says that joining the Plasback scheme is a step dairy farm­ ers can take to meet the criteria for production under Fonterra’s new Cooperative Difference framework.

Under the scheme, from 1 June, up to 10 cents of a farm’s milk payment will be determined by its sustainabil­ ity measures and milk quality.

Fonterra Farm Source group direc­ tor Richard Allen says Fonterra farm­ ers are among the world’s most responsible and that is something to be proud of.

“The Co-operative Difference pay­ ment is another way we can recognise farmers and grow the value of New Zealand milk by responding to the worldwide demand for sustainablyproduced dairy,” Allen says.

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ence payment is made up of 7 cents/kg of milk solids for achievement in four sustainability focus areas. Once they have achieved this, farmers can gain another 3 cents/kgMS for milk that meets Fonterra’s excellence standard.

The four sustainability criteria cover the environment, co-op and prosperity, animal wellbeing, and people and community. @dairy_news facebook.com/dairynews

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DAIRY NEWS MAY 11, 2021

6 // NEWS

Bumper price rises cemented downslope.

“Still, the key takeaway for farmers is that pow­ ders are maintaining their value.

“It’s ultimately the WMP price that’s most material for the farm­ gate milk price farm­

SUDESH KISSUN sudeshk@ruralnews.co.nz

WITH JUST one more

ers can expect to receive, accounting for more than 60% of the overall prod­ uct mix.”

Keall says the WMP story last auction was “more of the same” – prices lifted further from their already-heady

Global Dairy Trade (GDT) auction left for the 202021 season, bumper dairy price gains recorded in March remain intact.

Nathan Penny, Westpac Last week’s GDT saw the overall price index fall tations.

ASB economist Nat a modest 0.7%.

Keall says the modest The key category, movement in WMP price whole milk powder masked some more dra­ (WMP), rose a touch, up matic price swings in 0.7%. the underlying products, Westpac senior agri mostly milk fat. economist Nathan Penny Keall believes there says the result continues are a few drivers behind the sideways trend of the lower butter prices. last few auctions.

Butter has enjoyed “Both overall and a strong run, with WMP prices have prices averaging around recorded movements in US$5,200 since the begin­ either direction of less ning of the year, com­ than 1% over the last three auctions,” he notes. pared with an average closer to the US$4,000 “Accordingly, these results have cemented the mark over the auction his­ tory. bumper gains from early

by PMH Sam Vivian-Greer with Zanda Award patron and “A bit of reversion to March.” founder, Shane McManaway. the mean at this action The auction was also coincided with higher vol­ mixed by product. the alphabet.

ThreeFour letters have umes on offer, particularly out of the seven products es, and build the words in the grid for near-term contracts,” posted price falls.

Nota­ d, you will be able to solve the he says. bly, milk fat prices fell “This supply response for the second successive The award, which JESSICA MARSHALL auction, with butter prices saw the market somewhat is presented annually, 9 10 jessica@ruralnews.co.nz VALUES saturated, with volumes sliding overLETTER 12%. recognises young sold failing to meet offer Heading the other professionals in the 13 1 2 3 4 5 6 7 8 9 10 volumes.” way, butter milk powder sector from Australia and SAM VIVIAN-GREER, I S 13 (BMP) 6 Keall says the ongo­ prices jumped New Zealand. a farm consultant at 11 12 13 14 15 16 17 18 19 20 ing easing in restrictions over 14% while skim milk Normally, the Award BakerAg in Wairarapa, F 3 overseas could mean powder also lifted 2.0%. would crown one winner has been named the demand for retail butter from across Australasia winner of the 2021 New 3 Penny 7 says the result was largely in line with expec­ and cream may be on the Zealand Zanda McDonald but due to Covid-19 16 related travel restrictions, Award. an Australian and New The award was 16 8 Zealand winner have presented in a dawn been crowned for 2021. ceremony at Whangara “It’s a huge honour, Farms, north of Gisborne,

by PMH last month.

16 8 and I’m just blown away,”

heights and prices were higher across the contract curve, with the exception of a tiny dip in the Sep­ tember contract.

Most importantly, prices for longer-dated contracts (including the November contract) are

still trading at a premium over the nearer dates, sug­ gesting demand remains resilient well into next season.

Keall says he sees fur­ ther upside in their $7.50/ kgMS forecast for 2021/22.

Penny agrees that the

result means that global dairy prices remain on the front foot heading into the new dairy season.

“Recall that we lifted our 2021/22 milk price fore­ cast to $8.00/kgMS fol­ lowing the previous dairy auction,” he says.

18 (December 19)

© Pam Hutton 2019 | www.puzzlebeetle.co.nz

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says Vivian-Greer of his win.

“I’m really looking forward to spending time with top ag leaders in New Zealand and Australia, finding out more about how they tick, and how I can apply those learnings to my own career, and the ag sector,” he says.

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professional person with a strong passion for agriculture who is having a positive influence on the sector.

“The judging team was really impressed with his dedication to his role, his leadership and spirit,” says McManaway.

“We’re excited to see what the future holds for Sam, and look forward to helping him carve out his path through the opportunities provided

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by the Award,” he says.

As the winner of the award, Vivian-Greer will receive a professional development package which includes an allexpenses paid transTasman mentoring trip to high-performing farms and businesses in Australia and New Zealand. It also includes $10,000 to go towards further education and networking opportunities.

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DAIRY NEWS MAY 11, 2021

NEWS // 7

No stranger to winning awards A HAT-TRICK, a trifecta, a three-peat, whatever you want to call it, Fonterra farmer John Wyatt has become the first person to ever accomplish it in the New Zealand Dairy Indus­ try Awards (NZDIA).

In March, Wyatt was named the 2021 Taranaki Share Farmer of the Year, the latest step in his pro­ gression through the ranks of the dairy indus­ try and a history making moment.

It’s historic because

“It was a bit of a learn­ ing curve milking those first cows but I got the hang of it pretty quickly and there was always something different to do each day.”

By 2010, he had learnt enough to take on a man­ ager’s role at a 300-cow farm at Pahiatua, while for the last four years John and his wife Kristina have been contract milk­ ing for Mike Hammond on his 106ha, 315-cow Auroa property.

“I have always been keen on farming. I enjoy being outside and working with animals, so I knew that was where my future lay.” claiming the title meant that Wyatt became the first person to win all three NZDIA categories – he was the 2009 Hawke’s Bay/Wairarapa Dairy Trainee of the Year and the 2015 Manawatū Farm Manager of the Year.

“It was at the back of my mind when I entered,” says Wyatt. “But I had no idea that no one had ever done it before, so it’s pretty cool.”

John grew up on a sheep and beef farm near Dannevirke and was often helping the neighbours with shearing and docking.

“I have always been keen on farming. I enjoy being outside and working with animals, so I knew that was where my future lay.”

But in 2007, he left home and gave up sheep and beef in favour of dairying.

“I realised that dairy farming offered a better progression path to farm ownership and more opportunities than sheep and beef, so I gave it a go.

I enjoyed it so I have just kept doing it.”

His first job was as a farm assistant on a 440cow farm near Dannev­ irke.

I have always been keen on farming. I enjoy being outside and work­ ing with animals, so I knew that was where my future lay.

Wyatt reckons one of the keys to his success is that he’s always keen to learn.

“I want to know as much as I can about what I’m doing so having that knowledge is important.

That’s why I did a diploma through Primary ITO and I think that has really helped my career.”

Away from the farm Wyatt and Kristina enjoy staying active, but with one-and-a-half-year-old son Caleb to also care for, finding time can be tricky.

“I play squash and Kris­ tina plays hockey. We both enjoy mountain biking together as well, although it’s a bit more difficult now that we have a family.

We’re not far from the beach at Opunake and there are some great walk­ ing trails on the mountain which is less than 30 min­ utes away. There’s lots of outdoors stuff close to us so we try to get out when we can.”

They are now in the process of buying the herd they currently contract milk to start a 50:50 share­ milking partnership.

“We’re really excited about that. It’s great to be staying on the same farm.

The plan for the next few years is to pay off some debt and then hopefully be in a position to buy a farm of our own.

“Kristina and I work really well as a team. I

enjoy the satisfaction of a job well-done and want to set a good example and create a future for my family.”

The regional winners

now progress to another judging round with the overall New Zealand win­ ners announced at the National Awards Dinner on Saturday in Hamilton.

John Wyatt, wife Kristina and son Caleb on their farm.

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DAIRY NEWS MAY 11, 2021

8 // NEWS

Mega farmer pinged for effluent breaches LARGE FARM opera­

tions and professional spreading companies should be setting exam­ ples of best practice, says Waikato Regional Council regional compliance man­ ager Patrick Lynch.

He made the com­

ments as after a Taupō farming operation, a com­ pany director and an effluent spreading com­ pany were convicted and fined a total of $194,250 for unlawfully discharging animal effluent into the environment from three

large dairy farming oper­ ations.

“We look to larger farm operations and professional spreading companies to lead the industry and set exam­ ples of best practise,” says Lynch.

“Clearly, this is not the case here. It is fair to say that both the regulator and the wider dairy indus­ try are very disappointed with the breaches uncov­ ered across this substan­ tial farming enterprise.”

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imposed recently by Judge Jeff Smith in Tokoroa District Court and fol­ lows the repeated unlaw­ ful discharge of effluent between November 2019 and March 2020.

Gardon Limited ran an 1150 cow dairy opera­ tion at Oruanui, north of Taupō that employed a number of staff. However, the farm was managed by company director Gerard Logan Donald.

A monitoring inspec­ tion carried out by coun­ cil staff in November 2019 found an effluent irriga­ tion hydrant had been discharging dairy shed effluent over a prolonged period of time which was ponding near the hydrant.

As well, a travelling irriga­ tor operating earlier the same day had been overirrigating effluent onto already wet soils, result­ ing in further ponding of effluent in breach of Waikato Regional Plan rules.

An abatement notice was issued to the com­ pany requiring it to cease any further unlawful dis­ charges of effluent. At a follow up inspection by council staff on 2 March 2020, a buried pipe carry­ ing dairy shed effluent to a sump was found to have had an inspection hole cut in it. This had not been resealed, resulting in the pipe discharging effluent over a prolonged period of time, causing efflu­ ent ponding in a paddock below the pipe, again in breach of Waikato Regional Plan rules and in contravention of the abatement notice.

The company was con­ victed of two charges of unlawfully discharging a contaminant into the environment and a fur­ ther charge of contraven­ ing an abatement notice and was fined a total of $101,250.

Donald is also a direc­ tor and shareholder of another company which

owns two adjacent dairy farms. He was employed through his company, Gardon Limited, as the general manager respon­ sible for the overall man­ agement of these two farms.

Council staff inspected the first of these farms, which milks around 1,750 cows, on 7 Novem­ ber 2019 and found the unlined effluent stor­ age pond designed to take effluent from the feed pad was overflow­ ing, with effluent flowing down through a stormwa­ ter retention pond into a sink hole in the ground.

A follow up inspection on 21 November 2019 found that effluent was still flowing into the sink hole, despite directions from council staff to clean the effluent away and prevent further discharges.

Donald was convicted on a charge of unlawfully discharging a contaminant into the environment and fined $35,000.

Also on 26 Novem­ ber 2019, contracting company The Effluent Pumping Systems Lim­ ited (EPSL) was at this farm pumping out one of the farm effluent storage ponds using a large por­ table pump and tractor mounted irrigator. Coun­ cil staff found that EPSL staff had over-applied effluent over a large area causing significant pond­ ing and runoff of effluent.

EPSL was convicted of one charge of unlawfully discharging a contaminant into the environment and fined $30,000.

Council staff also inspected the second Gardon farm, which milked 1,600 cows, on 21 November 2019. They found the effluent sumps at two stock underpasses under State Highway 1 and Tram Road were overflowing into unsealed catchpits, in breach of Waikato Regional Plan rules.

DAIRY NEWS MAY 11, 2021

NEWS // 9

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Farmers weighing up drought options peterb@ruralnews.co.nz

DAIRY FARMERS in the Hawkes Bay

are once again being hit by drought with Matt Wade of Federated Farmers saying it’s worse than last year.

He told Dairy News they have had a much drier summer and with winter just about upon them the drought is now really starting to bite.

Wade, who farms near Takapau in Cen­ tral Hawkes Bay, says he’s been getting rid of surplus stock and reducing cow num­ bers going into next season.

“I am having to buy in extra supple­ ment to get us through the winter. Based on what happened last year, I set aside some reserves of feed, but these are being eaten into now and I am having to buy additional feed. The cost of supplement is way above what I budgeted for,” he says.

The difference this year over last year however is that there is supplement avail­ able albeit at a cost. Last year it was scarce.

But as the days and weeks tick by, dairy farmers are becoming increasingly con­ cerned coming into winter. Dairy News is aware that on some farms, supplements make up to 80% of the feed intake for cows.

Farmers speak of the fact that rainfall has been pitiful, that groundwater hasn’t been recharged and that streams have been reduced to a mere trickle due to the lack of rain.

The other concern for farmers is obtaining killing space for their cull cows at processing works.

“I was talking to my stock agent and he said space was quite tight for cattle, just with the whole of the East Coast being under quite a bit of pressure coming into winter,” says Wade.

He says paddocks planted in new grass are struggling to come away and a couple of recent frosts haven’t helped the situa­ tion. But he says the soil temperatures are still high enough that if rain comes the pasture could come away.

“But if we don’t get any significant rain by the end of May – we are in trouble,” he says.

Last year it was dairy farmers in North­ ern Hawkes Bay who were the worst hit, but this the biggest problem is in the south around Tikokino and down into Central and Southern Hawkes Bay into the Tararua district.

The situation is being closely mon­ itored by MPI and the Rural Advisory Group and last week the Government extended its assistance programme in the region until the end of June. This basically consists of offering advice around feed planning.

Wade says the message to farmers is to plan ahead, look at their options and make timely decisions around getting rid of sur­ plus stock and finding grazing outside the region for younger stock.

“It’s all about setting up for the next season,” he says.

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DAIRY NEWS MAY 11, 2021

10 // NEWS

Aerial inspection proves farmers well prepared for winter grazing PETER BURKE peterb@ruralnews.co.nz

ENVIRONMENT SOUTHLAND says it’s

had good support from the farming community for its fly-over of farms in the region checking there is compliance for the upcoming winter grazing season.

Winter grazing has been in the spotlight in recent years with bad examples of this being highlighted in the media resulting in a major move to get farmers to adopt better management prac­ tices when managing stock grazing crops.

Fiona Young, Environ­ ment Southland’s land and water services man­ ager, says last year the regional council over­ flew farms and they were encouraged to do it again by the farming commu­ nity. She says they rec­ ognise that it is a really positive way to reinforce what needs to happen or to highlight poten­ tial problems before they happen.

“That early interven­ tion is important and I think that farmers really appreciate that. We are trying to identify any problems in terms of when stock that are put on those crops and any issues that could likely lead to a breach of the current rules. There are rules around management practices, such as those in relation to buffer zones and critical source areas, so we are strongly encour­ aging farmers to take note

Southland Regional Council has carried out two surveillance flights over Oreti and Mataura areas.

Inset: Tony Finch, DairyNZ.

of that,” she says.

Young says they are also looking at winter grazing from a risk man­ agement point of view and looking at where winter crops are now being grown and if they may pose a problem later on in winter.

This year there have been two flights which have taken in the Oreti and Mataura areas. Young says from the council’s

perspective, they feel pos­ itive that people have taken heed of what they need to do when setting up their paddocks.

“Last year we noticed a real step up with the flights and that has con­ tinued this year. There are still a small number of farms we have concerns about and we have made contact with these indi­ vidual to provide them with some good advice,” she says.

Young says winter grazing is an impor­ tant topic from a regula­ tory point of view and it’s really important from a community point of view.

She says they are just working collaboratively with all parties to get the good outcomes required.

GREAT COLLABORATION DAIRYNZ’S TONY Finch says the results of the fly-overs are very pleasing and he says it’s great that farmers are recognising the issues, doing a better job and are focused on the season ahead.

“What we are seeing is good management practice being implemented on farms,” he says.

Finch says the upsurge in compliance is due in part to the collaboration between Beef+Lamb NZ, DairyNZ and Environment Southland. He says in all his time with DairyNZ he’s never seen such a high level of collaboration between the groups that he’s seeing now.

“There has been absolute consistency in the messaging. We are all singing from the same hymn sheet and in terms

of messaging, we have all been involved in bringing the research and tools together. As a consequence, there is very little if any mixed messaging. It’s all been about what good management practice looks like for winter grazing,” he says.

But he points out that it is still early days and there no reason to be complacent about the good news so far.

Meanwhile MPI, MFE, councils and industry groups have launched an on-line tool aimed at helping farmers better manage winter grazing.

According to Agriculture Minister, Damien O’Connor the module is part of a range of practical support measures being rolled out to help farmers achieve immediate improvements in intensive winter

grazing practices to benefit freshwater quality and animal welfare.

“The module contains a template that farmers can use to develop a plan to manage their intensive winter grazing activities, if they don’t already have one.

“Farmers with existing plans need to update them to reflect the expectations set in this module,” says Damien O’Connor.

Finch says there are number of tools available for farmers which will provide recommendations and guidelines. He says both Beef+Lamb NZ and DairyNZ have options available for farmers.

“We just want farmers to pick the module that suits them best and do it,” he says.

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DAIRY NEWS MAY 11, 2021

12 // WORLD NEWS

Oz reforms in tatters THE AUSTRALIAN

dairy industry has dropped an ambitious plan to form a single ‘whole-of-industry’ body.

The plan for the single body was developed in response to a key recom­ mendation of the Aus­ tralian Dairy Plan which called for transforma­ tional change to industry

structures and advocacy arrangements.

The restructure pro­ posal has been dogged by controversy since it was launched last year with some groups attacking the plan to include processors in the organisation and others attacking the pro­ posed governance struc­ tures.

The proposal had been developed by a Joint Transition Team, led by Victorian farmer Shir­ ley Harlock, as a separate part of the overall Austra­ lian Dairy Plan.

But the key three reform organisations – Australian Dairy Farmers, Australian Dairy Products Federation and Dairy Aus­

tralia – have decided not to proceed with the pro­ posal after many months of industry consultation.

Instead the three organisations have been given primary responsi­ bility for driving through different aspects of the reform sought by people across the industry.

Australian Dairy Farm­

Australian Dairy Farmers president Terry Richardson says dairy organisational reform is an industry priority.

CHANGES ARE HAPPENING TO THE WAY MILKING MACHINE TESTING WILL BE COMPLETED Global food manufacturing has undergone massive changes in recent years with global population growth creating a greater reliance on imported food sources for some countries. With this greater reliance comes increased scrutiny from these markets and compliance is critical to maintain relationships and markets open for NZ exports.

There is now a greater focus on animal health and wellbeing. A key on-farm component of this is the milking plant and making sure that it is not creating cow discomfort or harm.

NZ was a pioneer with the development of the ‘Milking Machine Test’ to assess the function of the milking machine to the accepted industry standards. As time has moved on the adoption of an ISO testing standard internationally has evolved, creating a gap between the NZ Milking Machine Test and International ISO Tests.

The NZ Milking & Pumping Trade Association (MPTA), who manage the Milking Machine Tester’s education and assessor training in NZ, have been working to align NZ milking machine tests with the ISO platform and from 1st March 2022 all milking machine tests must be completed to the new MPTA ISO Milking Machine Testing Standards.

Why the change? ➤ To align New Zealand milking machine testing methods with international testing.standards. ➤ For MPTA to maintain the single point authority as Regulator of milking systems performance and the Accreditation Body for Registered Milking Machine Testers throughout New Zealand.

➤ To protect our industry and the NZ dairy export market for the future by using the same test as those international markets we are trading in. ➤ To anticipate the development of test equipment capable of automating the testing process, which will no doubt be developed in ISO format.

How does this affect the Farm Dairy? ➤ Some additional test ports may be required to be fitted in some dairy sheds. ➤ These fittings will need to be in place for all milking machine tests completed from 1st March 2022.

➤ Your Milking Machine Dealer or Technician will be able to advise what test ports are required and at what cost, and will be able to fit the test ports in place.

If you have any questions please contact: MPTA President, Gary Reilly gary.reilly@onfarmagri.com or Vice-President Craig Burrows cburrows@dairymaster.co.nz

ers president Terry Richardson says dairy organisational reform is an industry priority and is necessary to achieve a more profitable, confident and united industry and

is unable to address the priority of a stronger and more unified industry voice, as it cannot accom­ modate the requirement for independent represen­ tation, he adds.

“Reform aims to deliver a stronger and more unified industry voice with an ability to champion common issues, as well as represent diverse views across the dairy supply chain.” to fully realise the ben­ efits offered by the Dairy Plan.

“Reform aims to deliver a stronger and more unified indus­ try voice with an abil­ ity to champion common issues, as well as repre­ sent diverse views across the dairy supply chain.

“It also works to strengthen advocacy and streamline execution of whole-of-industry strate­ gic priorities.”

Dairy Australia Chair James Mann conceded that the proposal to create a single, whole of industry body was always consid­ ered to be ambitious.

After extensive con­ sultation, it is clear that restrictions prevent the use of levies for agri-polit­ ical activity and that an all-in-one industry model

“It would also compro­ mise government invest­ ment in R&D. “Other models that combine advocacy with levy funded industry ser­ vices cannot progress at this time for the same reasons.”

Australian Dairy Prod­ ucts Federation pres­ ident Grant Crothers believes the reform has identified a priority need for a ‘whole of industry’ voice that can represent common issues to both dairy farmers and proces­ sors.

The revival of an appropriately resourced and well-funded Austra­ lian Dairy Industry Coun­ cil would be an interim measure ahead of any other proposal, he says. @dairy_news facebook.com/dairynews

NEXT STEPS AUSTRALIAN DAIRY Farmers will lead a working group comprising the six state dairy farming organisations to consider how to optimise policy and advocacy development at a national and state level, together with funding arrangements. Former Meat & Livestock Australia Managing Director David Palmer will continue to provide support in this area.

Dairy Australia will commit to greater resourcing for strategic policy development and enhanced transparency for RD&E priority setting.

Australian Dairy Products Federation will facilitate and promote opportunities for collaboration and co-investment by processors on whole of supply chain interests.

DAIRY NEWS MAY 11, 2021

WORLD NEWS // 13

A total of 7,986 Arla Foods farms across seven European countries have concluded a Climate Check.

European co-op claims lowest carbon footprint ONE OF Europe’s largest dairy co-oper­ atives, Arla Foods claims that its farmers are among the most climate efficient dairy in the world.

The co-op says its Climate Checks pro­ gramme, which is one of the world’s larg­ est externally validated set of climate data from seven European countries also pro­ vides its farmers a clear blueprint of what will drive further reductions of green­ house gas emissions on their farms over the next decade.

Arla farmers have been working steadily towards sustainable farming and implementing green opportunities on their farms, such as circular farming prac­ tices, renewable energy and biodiversity and now also Climate Checks.

A total of 7,986 farms across seven European countries have concluded a Cli­ mate Check using Arla’s new standardised tool for identifying carbon footprint and the data shows that they are among the most climate efficient in the world.

“We have made a major investment in developing and implementing a solid model for measuring climate impact on a dairy farm,” says Arla Foods chairman Jan Toft Nørgaard.

“The unique data set that Arla farm­ ers have now created clearly shows which activities will accelerate our reductions over the next decade.

“We will use this to decarbonise our farms at a faster pace and share our find­ ings with stakeholders to help drive an effective transition for the whole indus­ try. There’s a huge amount of value in this for all of us,” he says.

The data has revealed five universal levers to a lower carbon footprint for dairy on all types of Arla farms. They are: ■■ Better feed efficiency to improve milk yield ■■ Precision feeding to reduce surplus protein in feed rations ■■ A healthy and long life for the cow to improve milk yield ■■ Precise fertiliser management to

reduce nitrogen surplus from feed production ■■ Better land use management to ensure better crop yields The areas targeted by the five big levers are explaining the majority of the differences between the individual farms’ carbon footprints. The five levers apply to all Arla farms in the UK, Sweden, Den­ mark, Germany, the Netherlands, Belgium and Luxembourg regardless of size, geog­ raphy, breed or landscape conditions.

“The data shows that all types of farms can achieve tangible results if precision farming is increased in these five areas.

This helps us significantly going forward both to lower our CO2e footprint and for future investments on farms to help meet our ambitious climate goals,” says Nørgaard.

Arla farmers assessed and submitted data to 203 questions about their herd, feed production, energy usage. Their data has been verified by an external climate advisor, who has also helped create the farmer’s action plan for further climate reductions based on the individual data.

The data confirms that Arla farmers are among the most climate-efficient dairy farmers in the world with 1.15kg of CO2e per kilo of milk including peat lands.

“We are proud of where we’ve got to, but we are determined to go a lot further.

For us, the number is not a final result but a baseline from where we need to improve.

“The Climate Checks is a tool to guide our next steps, to accumulate more insight and transparently measure our progress going forward,” says Nørgaard.

As the next round kicks off in June, Arla farmers will get access to a new digital tool that enables them to follow their own pro­ gression and to benchmark against data from other Arla farms.

The data shows that the best perform­ ing Arla farmers are able to produce a kilo of raw milk with a farm level footprint well below 0.9kg of CO2e.

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DAIRY NEWS MAY 11, 2021

14 // MARKETS & TRENDS

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Milk price set to remain at elevated levels DAIRY COMMODITY prices have shaken

off the past year’s uncer­ tainty, entering 2021 with a strong price trajectory.

Whole milk powder (WMP) prices (in USD terms) have lifted almost 30% higher for the first four months of the year, compared to the 2020 average.

But it’s not just WMP

prices on an upwards track. Other commodities are on a similar course, with skim milk powder (SMP) prices smashing past the USD 3,000 bar­ rier that seemed impen­ etrable for the last six years, reaching highs not experienced since 2014.

Butter and anhydrous milkfat (AMF) have expe­ rienced an even steeper

price resurgence, lifting over 35% each for the year so far.

One of the driving forces has been a weaker US dollar against a broad range of currencies, help­ ing to push USD priced commodities – including dairy – higher.

However, it’s not all beer and skittles just yet. Year-to-date, the

New Zealand dollar has climbed 10% higher than the 2020 average, with the stronger kiwi dollar taking some of the shine off export returns at a localised level. Driving these price gains is a com­ plex cocktail comprising broader issues as the fall­ out from Covid-19 lingers on one year later: Chinese demand for

New Zealand dairy has been particularly vora­ cious, with characteristics unique to the local dairy industry lighting a fuse under commodity prices.

Shipping delays world­ wide, port congestion, and other freight issues disrupting the finely bal­ anced supply chain have added tension to buying activity.

Geopolitical stances and freight challenges have heightened food security concerns. Global milk supply has been underwhelming in the face of robust demand – particularly in Europe.

Government interven­ tion across various chan­ nels has played a role in the elevation of dairy – and other food and feed commodity prices – across the globe.

Vaccination rollouts are beginning to lift con­ sumer confidence, with some signs of life return­ ing to the foodservice sector.

Demand in the driving seat With the new milk season almost upon New Zealand dairy farmers, considerations for the

anticipated, but concur­ rently, economic growth is diverging across coun­ tries and sectors – very much influenced by policy settings and the extent of pandemic disruptions.

Key to our pricing assumptions is the expec­ tation that the impact of widespread vaccination programmes should be felt by mid-year, helping to kick-start foodservice channels and providing a boost to global dairy demand.

While the economic improvements may not be uniform across all coun­ tries, we assume dairy demand will improve in key dairy foodservice mar­ kets like the EU and the US as restrictions on res­ taurants and cafes are lifted while we move

Government intervention across various channels has played a role in the elevation of dairy – and other food and feed commodity prices – across the globe.

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next season’s budgets are well underway. Cur­ rent supply and demand dynamics suggest that commodity prices are likely to remain at ele­ vated levels for the open­ ing months of the 2021/22 season (beginning 1 June 2021). World mar­ kets remain supportive of strong dairy commod­ ity prices, with economic growth improving around the globe, foodservice channels beginning to reopen, and high feed grain prices ensuring produc­ ers’ margins remain tight globally, helping to keep milk production growth in check.

In this price rally, Rabobank anticipates demand to remain in the driving seat, with the strength of the upper range of Fonterra’s fore­ cast Farmgate Milk Prices dependent on Chinese import demand In contrast to this time last year, most global economies will grow across the course of this year and into the next.

The IMF has recently pro­ jected global growth at 6% through 2021 before mod­ erating at 4.4% in 2022.

The overall speed of the economic recov­ ery has been faster than the IMF had previously

through the end of the year.

Chinese demand doing some heavy lifting Chinese import demand firmly remains the most significant con­ sideration for our farm­ gate milk price forecast.

China is the pri­ mary destination for New Zealand dairy prod­ ucts, receiving close to 40% of total dairy ship­ ments in 2020. Further­ more, Fonterra’s Farmgate Milk Price calculation is largely weighted towards the prices of commodities achieved via the Global Dairy Trade platform – on which North Asia (which includes China) buys the vast majority of the products available.

As such, a key factor to the strength of the new season forecasts hinges on the strength of Chi­ nese import demand. Sev­ eral complex factors are underpinning current Chinese demand. First, the Chinese dairy mar­ kets recovered quickly from the initial impact of Covid-19 – particularly for the white milk category.

Strong white milk demand has led to a tight supply of milk for manufactur­ ing, incentivising proces­ sors to import more dairy ingredients.

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DAIRY NEWS MAY 11, 2021

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In addition, rising Chi­ nese farmgate milk prices are making imports attractive (for now). The uptick in raw milk prices during the second half of 2020 followed a cycli­ cal upturn that began in 2019 – and the milk price momentum has extended into early 2021.

Cyclically higher local milk prices emerged in 2019 due to years of modest supply growth, stemming from low milk prices between 2015 and 2018, as well as restric­ tions from implemen­ tation of an amended environmental protection law between 2016 and 2018. This tightened the local supply and demand balance of the Chi­ nese market and finally started to drive the need to incentivise investment into expansion of local dairy farms in order to grow milk pools. Finally, feed prices in China are at multi-year highs.

Surging demand for more feed grain to rebuild the hog herd has been a major cause. High prices have been further fuelled by the impacts of a struc­ tural deficit in supply resulting from a decline in corn plantings and corn reserve depletion over the last several years.

As feed costs have lifted, so too has the milk price in China, with both the average and corporate farm milk price following a similar trend and setting new records. Milk prices soared to historical highs in February 2021, leaping 12% YOY compared to the prior period (see figure 1).

Despite higher feed costs, margins for large dairy farms (responsible for approximately 50% of milk supply in China) remain very profitable – and so the milk has con­ tinued to flow. Rabobank anticipates milk produc­ tion in China to remain in growth mode over 2021 at a rate of just over 6% YOY, with imported Ocea­ nia dairy heifers for ongo­ ing dairy farm expansions lending a helping hand (see figure 2).

Ambitious plans to bolster the Chinese dairy herd could remain a theme for the coming three to five years (that is, barring prolonged adverse price downturns). There are multiple planned proj­ ects across China to add an estimated 1.6m cows to the herd over the coming years. One avenue of herd growth has recently

been capped. In a recent announcement by the New Zealand government, livestock sea exports from New Zealand will be banned by 2023.

While livestock sea exports from New Zea­ land will continue in the short term, Australia now stands to gain market share from New Zea­ land’s exit of this indus­ try. Besides the cyclical upturn of milk prices, China’s dairy expan­ sion is also fuelled by a subtle shift in food secu­ rity awareness as a result of geopolitical uncertain­ ties that China has been facing in the last few years. This has prompted the Chinese government to move self-sufficiency decidedly higher on its food security agenda.

While this has been pri­ marily for food grains, there has been a spill­ over effect into cate­ gories of slightly lower strategic priority, such as dairy. There could be some future implications for New Zealand dairy exports.

Assuming that these projects go as planned, this could reduce China’s import requirements in response to the additional production capacity in the initial years, before pro­ duction growth becomes more constrained again by resource availability, at which point, import requirements would start to grow again as demand catches up. Rising Chinese WMP prices have lifted in tandem with increasing raw milk costs required for local dairy produc­ tion. In contrast, Ocea­ nia WMP has remained competitively priced – supported further by a weaker USD exchange rate. However, a portion of the price discount for dairy imports has been shaved to approximately 10% compared to local WMP, with a sharp jump in Oceania.

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MARKETS & TRENDS // 15

DAIRY NEWS MAY 11, 2021

16 // OPINION RUMINATING

EDITORIAL

Looking out for one another

MILKING IT...

Bare-breasted milk protest

Floating farm sinking?

Rock and a hard place

Less-gassy bulls

THE AUSTRALIAN dairy industry came under another attack last week – this time from bare-breasted People for the Ethical Treatment of Animals (PETA) activists.

A group of topless PETA supporters descended on Sydney’s iconic Hyde Park last week to protest the dairy industry…by flashing.

They claim that in the Australian dairy industry, “mother cows are repeatedly forcibly impregnated and separated from their babies so that humans can drink their milk”. This use of emotive language and deliberately comparing cows to humans is a common tactic used by these activists to excite the ignorant.

For what it’s worth, the flashers stood bare-chested, with anti-dairy messages painted onto their bodies and signs reading, “Wean Yourself”, “Dairy Is Cruel”, and “Not Your Mum? Not Your Milk!”

TWO YEARS ago, it was launched as the world’s first floating platform housing a herd of cows and a dairy, and generated headlines around the world.

But the “floating farm” in Rotterdam is back in the news for all the wrong reasons.

Concerns about animal welfare have again been raised after two cows on the farm in Rotterdam’s harbour fell into the water.

A local animal rights group says that it had tried and failed to get a majority in the city council to withdraw the farm’s operating permit, calling the project “madness”.

The floating farm is promoted as sustainable, recycling the animals’ waste on site, and giving an example of urban farming that could produce more food within cities of the future.

But calls for the farm to be closed are growing louder after a second cow fell into the water and had to be rescued recently.

APPEASE THE Chinese and protect your export trade, like dairy products, or infuriate them and face sanctions.

That’s the dilemma facing the NZ Government as the treatment of Uyghur Muslims in China comes under scrutiny by our politicians. The ACT Party intends to put a motion to Parliament this week to debate the treatment of the Muslims.

The ACT Party says many of the recent reports from Xinjiang amount to genocide. But Labour and National aren’t keen on using the ‘G’ word and sending Beijing into a fit of rage.

Trade Minister Damien O’Connor says the Chinese Government “clearly” would not like it if Parliament declared the treatment as genocide.

A conundrum then as the NZ Government is already facing criticism from our Five Eyes partners for appearing soft on China.

Notice though, those same partners have dragged their feet when it comes to trade deals with us.

THERE MAY soon be another tool available to cut your climate footprint – select less-gassy bulls out of a catalogue.

The quantity of the greenhouse gas methane breathed out by young bulls is currently being measured by machines.

It’s hoped the least-gassy males will sire less-gassy daughters, which could significantly reduce farming emissions.

Experts estimate that by breeding lower-methane bulls and cows with each other throughout a 10-year programme, they could reduce an individual cow’s methane emissions by up to 10%.

Breeding companies LIC and CRV Ambreed have paired up to achieve the goal. From this month, the two groups will monitor the methane emitted by 300 bulls, to be kept in special testing pens with seven to nine others. To measure methane, bulls need to regularly stick their heads into a monitoring machine.

Solutions won’t come as quickly as James Shaw might like, but they are being worked on.

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ISSN 1175-463X

THERE WAS pin drop silence when former National Party leader Todd Muller recently addressed over 400 farmers at the DairyNZ Farmers Forum in Hamilton.

Muller recalled the hours and days before he capitulated as Opposition Leader after only 53 days in the job.

The Bay of Plenty MP hopes that by telling his story pub­ licly, he’ll be able to help farmers buckling under the stress of running their businesses.

Dairy farmers are very good at looking after environmen­ tal and animal health, but they don’t always worry about their own health.

The farming industry is often very isolated: farmers oper­ ate with a lot of variables – weather, politics, regulations and finance to name a few.

It is easy for things to get on top quickly – if something goes wrong it can be pretty dire.

The industry was jolted when DairyNZ’s The View from the Cowshed report released in August last year revealed that 62% of farmers stated that they or someone on their farm had expe­ rienced mental health issues over the last year.

Another report is due out soon and no doubt mental health will feature strongly.

Sadly the statistics are not surprising as mental health has been a recurring issue in rural communities for some time, but that needs to change.

With high profile leaders like Todd Muller raising awareness about mental health and how to deal with it, there is hope.

Muller stressed that it is good to talk to someone outside your immediate family about what you are going through. And also to look out for your family, mates and neighbours.

It’s not that hard. As well as talking about calving percent­ ages and grass growth we need to ask each other how we are – and importantly, take time to listen to the answer.

Dairy farmers are used to facing challenges. However if there’s one thing farmers do well, it’s pulling together as a community and helping each other out. Working together and supporting each other is in their DNA. Be aware and recog­ nise problems can occur not only with farmers but with their family members as well.

The farming industry has an unenviable record of deaths related to mental health issues, but it doesn’t have to be this way.

As farmers, you might not be able to change things like the weather, but the industry can change the level of support on offer and the way we talk about mental health issues in rural communities.

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DAIRY NEWS MAY 11, 2021

OPINION // 17

GameChanger

European farmers fear that a ban on glyphosate would see their crops taken over by deep-rooted weeds.

Tim Newton Ecklin, Victoria

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GLYPHOSATE USE in Europe has resulted in reassessments, reviews and bans in some countries, caus­ ing a backlash by farmers. The con­ troversial herbicide is touted by NZ Professor of Toxicology Ian Shaw as a victim of its own success.

It’s successful because it is the most widely used herbicide in the world, it is versatile, and its use can benefit the environment.

Conversely, its use has ignited heated debate around the globe, with many having their own slant on its safety, often resulting from conflict­ ing reports and limited understand­ ing of the science behind its use.

As the renewal of the EU authori­ sation of glyphosate looms, European farmers fear that a ban on glyphosate would see their crops taken over by deep-rooted weeds and suffer qual­ ity losses, alongside a reduction in farm productivity. Environmental­ ists are concerned about an increase in carbon emissions and a detriment to soil health and erosion.

The prospect of a ban on glypho­ sate is placing enormous pressure on European farmers. They would face substantial weed pressure, as weeds

‘‘

MARK ROSS

cushion the force of pounding rain­ drops. Without crop residue, soil par­ ticles become more easily dislodged, being moved or ‘splashed’ away.

Soil degradation starts after rain­ fall, with run off entering nearby streams, gullies and rivers. The sed­ iment in the water turns it brown and is eventually released into the sea, affecting sea life. Soil degrada­ tion from erosion is very expensive for Europeans, costing up to 14 bil­ lion euros annually.

Farmers need the best tools and technological solutions to grow enough crops, using fewer natu­ ral resources to produce sufficient high-quality food, respect the envi­ ronment, safeguard consumers and support themselves. Allowing them to use the right tools at the right time for the right crops will assist them do this.

Helping farmers build a stronger and more resilient agricultural econ­ omy, requires an open and trans­ parent dialogue and collaboration between scientists, academia, inno­ vators, politicians, regulators, NGOs and all along the food value chain from farmers to consumers.

• Mark Ross is chief executive of Agcarm, the industry association for companies which manufacture and distribute crop protection and animal health products.

‘‘

Lessons from Euro glyphosate review compete with crops for light, water and nutrients. An even greater pres­ sure exists with climate change and the need for farming practices to become more sustainable. Taking this vital tool away from farmers would lead to more mechanical weeding, more time spent ploughing, and more money spent on fuel alongside the environmental impacts.

Farmers concede that minimal glyphosate use is possible, but an outright ban will be catastrophic because it would entail more till­ age to manage weeds – leading to soil degradation. If glyphosate is not available, farmers would need to use three to four other herbicides in its place, leading to more tillage and more resources to manage weeds.

The other complication and con­ tradiction to current environmental goals is the contribution that tillage makes to climate change.

Plants absorb carbon dioxide from the atmosphere through photosyn­ thesis and pass carbon to the ground when dead roots and leaves decom­ pose. Tillage releases this carbon from the soil to the atmosphere, con­ tributing to global warming.

Tillage fractures the soil, disrupt­ ing soil structure, accelerating sur­ face runoff and soil erosion. It also reduces crop residue, which helps

‘‘

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DAIRY NEWS MAY 11, 2021

18 // AGRIBUSINESS

CEO fined for NAIT breach THE CHIEF executive of a large

Waikato farm business has copped a $3,600 fine for moving 820 unregis­ tered animals to meat processors.

Chief executive of Lochiel Farm­ lands Limited, Kim Phillip Robinson, was responsible for the registration of the animals under the National Animal Identification and Tracing (NAIT) scheme.

The farm manages about 3,000 cattle as dry stock with its main oper­ ations being as a breeder and finisher of stock.

He was sentenced last week at the Pukekohe District Court today.

Ministry of Primary Industries regional manager animal welfare and NAIT compliance, Brendon Mikkelsen, says the NAIT system is critical to our ability to respond quickly in the event

ABOUT NAIT The National Animal Identification and Tracing (NAIT) programme records: The location and movement of individual animals (for example to another farm or to slaughter)

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■■

Contact details for the person in charge of an animal

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In 2019, amendments to penalties in the NAIT Act increased the maximum penalty to $100,000, reflecting the importance of compliance.

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NAIT helps to protect:

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stock from disease and harm

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farmers’ livelihoods

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New Zealand’s reputation and economy.

of biosecurity outbreaks.

“It allows us to track and trace ani­

mals that might be moving between farms or to meat processors so we can

quickly understand and deal with bios­ ecurity threats which can have a devas­ tating impact on the rural communities and the wider economy.

“Despite previously being reminded of his obligations and being registered as the person in charge of the NAIT animals since 2012 at Lochiel Farm­ lands Limited, Mr Robinson failed to play his part to protect New Zealand’s biosecurity.”

Robinson’s offending came to light through an analysis of the NAIT data­ base.

He moved 820 unregistered NAIT animals off Lochiel Farmlands Lim­ ited to four meat processing facilities between February and early Novem­ ber 2019.

“Most people in charge of animals understand what is at stake and ensure

they’ve registered NAIT animals. For those who don’t, our message is that non-compliance will be found and dealt with,” says Mikkelsen.

“Whenever farmers are moving their animals to other locations, it’s partic­ ularly important that they remember their NAIT responsibilities.

“We encourage people to talk to their farm advisors, or make contact with OSPRI or their industry organ­ isations for support.

“MPI has processes in place that will alert NAIT officers if NAIT animals have not been registered – or if they have been moved without this being recorded in the NAIT system. MPI uti­ lises this system every day, not just on moving day,” Mikkelsen says.

Robinson was also ordered to pay court costs of $130.

Tech boost for winner THE WINNER of the 2021 Ahuwhenua trophy,

announced this week, will be getting valuable new insights into their dairy herd’s health, effi­ ciency and productivity.

Silver Sponsor Allflex Livestock Intelligence is including an animal monitoring system in their prize package.

The prize, valued at $84,000, includes 450 Allflex cow collars. These sense and transmit essential data on individual cows, including reli­ able heat detection, rumination monitoring and early alerts for signs of animal health issues or distress.

Allflex says it has been a long-time sup­ porter of the Ahuwhenua Trophy for Excel­ lence in Maori Agriculture, which focuses on dairy, sheep and beef, and horticulture in a three-year cycle.

The award’s heritage goes back to 1933 when it was launched by Sir Apirana Ngata and then Governor General, Lord Bledisloe.

General manager Jared Briggs says Allflex’s move of sponsor support from the cash contri­ bution made previously to the Animal Moni­ toring system aligned more closely to what the

Ahuwhenua awards were all about.

“We are keen to show our support for excel­ lence in a more meaningful way and felt the Animal Monitoring system will provide the win­ ning farm with a great platform to take their operation to an even higher level,” Briggs says.

Briggs, and Allflex national sales manager Austin Heffernan, attended the announcement of the three finalists – all located in the North Island – for the 2021 Ahuwhenua Trophy at Par­ liament’s Grand Hall in March.

Pouarua Farms is a single milking platform running 4,600 cows on nine farms covering 2,200 hectares on the Hauraki Plains.

The Tataiwhetu Trust runs 432 kiwi cross cows in an organic farming operation at a prop­ erty in the Rūātoki Valley south of Whakatāne.

Tunapahore B2A Incorporation runs 385 cows on 376 hectares (milking platform 132 hectares) at Hawai and Torere on the North Island’s East Coast near Opotiki.

Briggs says the finalists are three widely con­ trasting operations but share a desire to show­ case excellence while sustainably developing their land and environment.

“Each of these would be a worthy recipient of the Ahuwhenua Trophy for Maori Dairy Farm of the Year.”

The animal monitoring system is scalable to any opera­ tion, large or small.

Briggs says the heat detection function offers much greater accuracy while reducing labour inputs and eliminating the need for patches and tail paint. By tracing rumination, the system also gives early notice of a cow’s response to nutrition changes, while also raising an early red flag for animal health issues such as masti­ tis or lameness, he explains.

“We are looking forward to working with the winner to help them implement their animal monitoring system and enjoy its many benefits.”

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DAIRY NEWS MAY 11, 2021

MANAGEMENT // 19

SimplyCow app for animal recording FINNISH SOFTWARE

company Mtech Digital Solutions has launched the SimplyCow mobile application, said to be an easy-to-use tool that allows herd management and animal recording without extensive soft­ ware systems.

The app can for used in the cowshed or pas­ ture to immediately record animal events, then transfer the data to the dairy farm manage­ ment system, where more extensive observations and analysis of the herd are made.

It is cloud-based, so

it can be used without a network connection.

Any data collected will be stored in the cloud data­ base when the device is reconnected to the inter­ net. SimplyCow can then be connected to an exist­ ing herd recording soft­ ware via an interface. The app can be used to store information on areas such as for animal breeding, milk production devel­ opment and monitoring animal health.

The biggest bene­ fits are said to be animal event recording, task list creation and the possibil­ ity to monitor milk yields,

making it easy to have all such information in one place. With the task lists function, users can schedule recurring rou­ tines such as vaccina­ tions or parasite treatments, while the milk record­ ing area of the app stores milk yields and related milk sample data.

By recording insem­ ination and mating information, users, particularly those run­ ning pedigree cattle, can keep track of infor­ mation on sires’ dams and progeny.

SimplyCow is cloud-based, so it can be used without a network connection.

DIACK NEW RAVENSDOWN CEO RAVENSDOWN

HAS

appointed Garry Diack as its new chief executive, replacing Greg Campbell who has held the position at the farmer-owned cooperative for the past eight years.

Diack joins Ravensdown from his position as chief executive and executive director of Tait Com­ munications in July.

He has over 30 years’ experi­ ence of improving corporate per­ formance, effective governance and driving growth.

Ravensdown chair John Hen­ derson said Diack’s experience across many industries, his rural connections and his groundedyet-innovative approach, made him a compelling proposition for the board.

“The board is excited that its

Garry Diack

search for someone that offers strategic continuity and deliber­ ate evolution has been successful.

“There’s no doubt that our purpose of enabling smarter farming for a better New Zealand has never been more important and Garry is passionate about that direction.”

A firm believer in the power of co-operative business models, Christchurch-based Diack is looking forward to helping take Ravensdown forward in a chang­ ing landscape.

“Large parts of my career have been devoted to helping harness the power of New Zea­

land agriculture to punch above its weight in domestic and inter­ national markets.

“I have been fortunate to have had the opportunity of advis­ ing the likes of CRT, Silver Fern Farms and the predecessors to Fonterra. Through these expe­ riences and a directorship of the Ashburton Trading Society, I have witnessed Ravensdown forge true value-based relation­ ships with its farmers and I am privileged to be given the oppor­ tunity to play my part in the chal­ lenges of tomorrow’s farming,” said Diack.

“I know that Ravensdown has invested in tools and technology that have potential to be win-wins for the environment and farm profitability,” he says.

LIC committed to upskilling THE FARMER co-operative says it is committed to educating and upskilling the next generation of lead­ ers in the agricultural industry.

“One of the ways we do this is through our PhD programme, which helps fund staff members postgraduate degree studies.”

LIC’s PhD programme began in 2010 and four staff members have been funded through the programme: One of the biggest champions of this programme is LIC molecular genetics scientist, Chad Harland, who completed his PhD in animal genomics in Belgium before bringing his wealth of knowledge back to LIC in Hamilton.

Harland started at LIC in 2008 as a laboratory technician. His PhD study involved five years work­ ing on his PhD in Belgium and returning yearly to New Zealand to share his knowledge. Harland has now returned permanently and is working within LIC’s Research and Development team where he is utilising his studies.

“While I was picking stuff up fairly quickly, it was useful to have a chance to get a formal qualification and go into depth. When the PhD opportunity came along, it was a chance to take something that was potentially relevant to the company and dive into it as deep as possible, and do so with one of the world leaders in the field.”

Harland says the PhD was great for several reasons.

“For one, I had full funding to do a PhD on a topic that was interesting, supported by the company and so there was not really any worries about funding and there was no worries about having a job. It was a really nice set up, I knew there was a job waiting for me”.

For Harland, coming back into a research position that is flexible and focuses on areas he is interested in is very important. This includes returning and seeing his research and work in practice, having direct and measurable impact on people and on the business and the dairy industry. The new genotyping and sequenc­ ing platforms for the LIC’s Genemark is what Harland spent most of the last year working on.

LIC is seeking expressions of interest for a PhD opportunity available to those who have completed honours or masters degrees and are skilled in genet­ ics and computer science with a background in quan­ titative, population or statistical genetics.

The successful applicant will be offered a threeyear scholarship by LIC and Massey University, focus­ ing on the identification and spread of de novo and high impact rare variants in New Zealand dairy cattle.

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DAIRY NEWS MAY 11, 2021

20 // MANAGEMENT

Cost of getting soil fertility wrong ALTHOUGH MANY

people on the planet are willing to pay more for New Zealand pro­ duce, productive land to grow that food and fibre is becoming unavailable here in our own backyard.

Both the current gov­ ernment and previous governments aimed to double export dollars from the primary sector.

In answer, ingenious farmers and growers have had to become more effi­ cient with their inputs to do more with less land.

The Ministry for the Envi­ ronment’s (MfE) report entitled Our Land shows export values of the pri­ mary sector doubled while available highly produc­ tive land halved between 2002 and 2019.

This was an impres­ sive achievement, but not without impacts. Hit­ ting the political ambition

whilst reducing land use and environmental issues is going to require farmers to become even more effi­ cient in the use of nutri­ ents like nitrogen and phosphorus.

Phosphorus is essen­ tial for all plants and is

independently accredited laboratory so farmers and growers can track their soil’s supply of plantavailable phosphate.

In any given paddock or farm, this informa­ tion will never be static as phosphate is extracted

Compared to mineral sources of phosphate, organic sources such as manures or bone meals present ethical, cultural and supply issues as well as challenges of odour, P content variability and spreading imprecision. the second most abun­ dant mineral in the body.

A key indicator of soil fer­ tility is how much phos­ phate is available to the plant – most commonly measured by the OlsenP test.

A sample is sent to an

from the soil by each plant. Clover is an exam­ ple of a particularly phos­ phate-hungry plant, but especially important because it can fix nitrogen from the air, reducing the need for N fertilisers such as urea.

The Fertiliser Associa­ tion has collated many of these farmers’ and grow­ ers’ results. Based on this extensive data, the national median OlsenP value for dairy farms across all soil types is below 35, well within the target range. This is based on more than 270,000 records over five years.

While there will be dif­ ferences in methodol­ ogy, this is a lot less than the figure for dairy farms mentioned in the MfE report.

Reaching the top of the target band for Olsen-P does not mean stopping the use of P fertiliser alto­ gether. Annual P inputs are required to maintain the target band OlsenP by replacing the nutri­ ent removed by the food produced and shipped off farm.

Between 2002 and

Clover is an example of a particularly phosphate-hungry plant, but especially important because it can fix nitrogen from the air, reducing the need for N fertilisers such as urea.

2019, phosphate fertiliser use declined by nearly a third, which shows how efficient farmers can be.

Compared to mineral sources of phosphate, organic sources such as manures or bone meals present ethical, cultural and supply issues as well as challenges of odour, P content variability and spreading imprecision.

Overstating Olsen-P levels for farms is an issue of opportunity cost both financially and environ­ mentally. As the saying goes, “it’s easier to be green when you’re in the black.” So accuracy mat­ ters here – not just for policy purposes, but for planning what can end up being one of farming’s largest investments.

A national median con­ ceals variation across regions, soil types, farms and even across differ­ ent paddocks. The key is identifying this local vari­ ability through more pre­ cise testing and applying

the right amount of the right nutrient at the right time and place. The cooperative nature of the sector helps here as there is little interest in selling the business owners more than they need.

The prize of nutrient use efficiency is worth fighting for, but the battle is a local one and fre­ quently relies on emerg­ ing technology. There have been technical break­ throughs in the past five years such as aerial scan­ ning of hill country farms that reduces the need for physical sampling. Com­ puter-controlled aerial spreading also shows promise as a way of put­ ting the P where it’s needed instead of where it is not.

The stakes are high from an environmen­ tal and economic stand­ point. The ability of some farms to experiment with different tactics such as regenerative agricul­ tural practices has often

been hard-earned by a solid investment across decades in building an optimum Olsen-P level.

Every bit of food grown for home or over­ seas depends on the top 25cm of Aotearoa’s pro­ ductive soil, so efforts to quantify and assess this precious resource are wel­ comed.

Many of society’s land use choices such as urban sprawl, population growth and dairy conversion rates are well beyond the co-operative’s mandate.

However, when it comes to essential nutrients and fertilisers, we have the expertise and technology that can help with their more efficient use.

“Nutrient efficiency” may not be the catchi­ est of buzzwords, but it’s what New Zealand needs if it stands a fight­ ing chance of meeting its financial and environmen­ tal ambitions.

• Article courtesy of Ravensdown

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DAIRY NEWS MAY 11, 2021

MANAGEMENT // 21

Major progress for farm management graduate FARMING IS in Matt

Walker’s blood.

Having grown up on a farm, he realised from a young age that he wanted to continue the family tra­ dition of working on the land.

Studying at Lincoln was a no-brainer for Matt, as he knew it would put him in the best position to “move up the ladder in the farming industry”.

His success has been phenomenal. Only a few

aged to use the skills and tools he had picked up during his time at Lin­ coln.

“The big takeaway from this job was learn­ ing how to feed stock and budget properly.”

Just 18 months later, he moved into a Stock Managers’ position, and then took on his first Farm Managers’ role two years after that.

“I have been fortu­ nate to work for some

“Working and living in a positive, fun environment is the key to learning more, moving forward and getting the most out of every day.” short years after com­ pleting the Diploma in Farm Management, he’s now General Manager of Alpine Pastures in Cen­ tral Otago, managing four properties and 10 fulltime staff members. “I use the knowledge and skills I learned at Lincoln every day,” he says. “To put it simply, I wouldn’t be doing this job if I hadn’t gone to Lincoln.”

The Diploma in Farm Management offered Matt a good foundation of the­ oretical knowledge, which he was able to put into context during field trips.

“Once I left uni, I was able to apply these skills in the real world. They gave me a real point of difference against other applicants when applying for jobs.”

Studying a small course with a group of likeminded people also proved very powerful.

“There was always someone to talk to and bounce ideas off,” he says. “My classmates are now spread throughout the country and overseas.

Everywhere you travel, you bump into people you know, which allows your network to keep growing.”

After leaving univer­ sity, Matt began his career journey as an experienced shepherd at a breeding and finishing operation in North Canterbury, where he was strongly encour­

very knowledgeable and encouraging people who aided in my progression,” he says. “In December last year, six years after I finished my diploma, my role developed from Farm Manager at Lindis Cross­ ing Station to General Manager of Alpine Pas­ tures Central Otago.”

One of the most rewarding parts of his current position is offer­ ing new opportunities to staff and supporting them to develop their skills.

“Working and living in a positive, fun environ­ ment is the key to learn­ ing more, moving forward and getting the most out of every day.”

Matt says he relishes the challenge of manag­ ing finishing properties, as the environment is always changing.

“You need to keep your finger on the pulse to manage stock flows, fine-tune the system of feed demand and supply, and capitalise on opportu­ nities as they arise. At the end of the day, this allows us to grow stock to their full potential and meet – or ideally, exceed – our annual targets.”

He has also developed a major passion for build­ ing efficiencies in the business by implement­ ing new technology, which helps to place the organ­ isation at the forefront of farming in New Zealand.

“My challenge moving forward is to continually evolve our practises on farm to meet consumer

demands, creating a prof­ itable, sustaining farming business that we can be proud of.”

Matt Walker

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DAIRY NEWS MAY 11, 2021

22 // ANIMAL HEALTH

Stable rumen pH key to health CHRIS BALEMI

ALL FEED manage­ memt and supplementa­ tion in dairy cattle should be targeted at maintain­ ing healthy rumen per­ formance. Healthy rumen function is key to the suc­ cess of every milestone the cow must achieve throughout the season.

Some of the key chal­ lenges the cow will face throughout each season are as follows: the lead up to calving and transition to lactation, successful calving, metabolic health, immunity to disease, hoof health, reproduction, and heat stress management.

The health and effi­ ciency of the rumen directly impacts how well the cow performs through each of these of these challenges.

A cow with subopti­ mum rumen performance will be at higher risk to problems such as, met­ abolic diseases, uterine infections, mastitis, lame­ ness, reproductive issues, and even spontaneous abortion.

The rumen, along with the reticulum and the omasum are the fore stomachs of ruminant animals. These compart­ ments are designed to mix, regurgitate and then ferment and digest fibrous materials such as grass and silages, and more recently, grain-based con­ centrates.

Along with nutrients that are absorbed directly across the ruminal wall,

The health and efficiency of the rumen directly impacts how well the cow performs.

the massive number of bacteria created during the process of rumina­ tion are a major nutri­ ent source for ruminants.

The bacteria is digested further down the gastro­ intestinal tract, supply­ ing the majority of the animals’ daily protein requirements.

The process of rumina­ tion is very energy inten­ sive. Bacteria require large amounts of energy in the form of nonstructural carbohydrates derived

mainly from plants and more recently grains in the diet. These non-struc­ tural carbohydrates are in the form of soluble sugars, which are mostly a combination of fructose (plant sugars) and starch; these sugars are naturally formed within the plant during photosynthesis.

Optimum rumen fer­ mentation is a finely tuned process. Insuffi­ cient energy in the diet and the rumen microbes will struggle and milk pro­

duction and body con­ dition will suffer. Excess energy, and the rumen microbes will start pro­ ducing excess lactic acid and the finely balanced pH levels in the rumen will drop below the opti­ mum level. Ideal rumen pH is very similar to opti­ mum soil pH, in that the requirement is for a slightly acidic environ­ ment between 6.0 – 6.2 pH. It is thought that subacute ruminal acidosis (SARA) may start taking

effect once pH drops below 6.0, with the prob­ lem becoming progres­ sively worse as the pH reduces.

Many diets target­ ing high production will be formulated to deliver a high level of non-struc­ tural carbohydrate, and chances are that there will be some degree of SARA within most of these herds. The problem is that cows suffering the sub-acute form of acidosis are often not easily identi­

fied and can still be highly productive.

The issues normally arise with an increased prevalence of animal health diseases, most notably increased lame­ ness. SARA can also sup­ press immunity and increase fertility issues.

When the rumen becomes acid, pathogenic bacteria can become more domi­ nant in the harsher rumen environment. These bac­ teria produce endotoxins that weaken the body’s

defenses against disease, can even enter the uterus, as well as interfere with healthy hoof develop­ ment.

Recently endotoxins have also been identified as a contributing factor in the proliferation of a class of bacteria commonly called Treponema. High fecal levels of this patho­ genic bacteria have been linked to the prevalence of Bovine Digital Derma­ titis which is increasingly being identified as a lead­

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DAIRY NEWS MAY 11, 2021

ANIMAL HEALTH // 23

and yield ponent of saliva produc­ tion. They are stimulated to produce saliva during both feeding and rumina­ tion. While sodium bicar­ bonate is a very effective buffer it is also highly sol­ uble and moves through the rumen very quickly, thus the pH shift may not be sustained.

Another problem is that the pH drop asso­ ciated with the onset of SARA often occurs hours after the last feed intake.

SARA becomes an issue when the sugars and starches ferment in the rumen, not always when the feed is consumed.

Feeding excessive levels of sodium bicarbonate also increases the carbon dioxide levels in the rumen which stimulates increased rumen flow and can lead to poorer diges­ tion of feed.

Rumen buffers that more gradually buffer pH in the rumen over many hours, have been shown to work more effectively at maintaining the pH within the optimum range for much longer periods of time. The most suc­ cessful of these buffers is made up of the skele­ tal remains of an ancient seaweed called Lithothamnium calcareum.

Massive beds of this fossilized seaweed are found off the coasts of Ireland, and also the Brit­ tany coast of France.

The fossilized seaweed is removed and then ground into a material that can then be added to cattle feeds as an effective rumen buffer.

This material once ingested, will stay in the rumen much longer than sodium bicarbonate giving buffering protection for many hours following feed intake. Rather than neutralizing acids, these materials act by absorb­ ing the excess hydrogen ions onto their negatively charged microscopic lat­ ticework type structure.

The fossilized seaweed, being largely insoluble, will stay in the rumen for an extended period of time. These products have been shown to effectively buffer rumen pH for up to eight hours post feeding.

You could say as farm­ ers you are not farm­ ing cows, you are actually

farming rumens. If you manage the rumen health and performance of your herd correctly your cows will be more productive and much healthier.

• Chris Balemi is managing director of Agvance Marketing. This article first appeared in Getting the Basics Right 2021 issue.

Fossilised seaweed is removed and then ground into a material that can then be added to cattle feeds as an effective rumen buffer.

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ing cause of lameness in herds.

A recent study carried out in Ireland on a herd of 144 cows clearly illus­ trates how common subacute ruminal acidosis can be on an all-grass diet.

This trial herd was fed a solely pasture diet, pri­ marily made up of peren­ nial ryegrass, these cows had been in milk between 80 – 150 days. Testing showed that eleven per­ cent of these cows as being seriously affected with sub-acute ruminal acidosis (SARA) with a pH level below 5.5, 42% of the cows were at a marginal pH level of 5.6 – 5.8, the balance of the herd were considered to be at lower risk with a pH’s measur­ ing above 5.8.

Farmers must bear in mind that modern highly digestible ryegrasses have been hybridized in order to produce high levels of sugar and starch, high ME. While these levels of energy are ideal for push­ ing production, without ample fiber or an effec­ tive rumen buffer, these grasses will be rocket fuel for rumen bacteria, pH can drop quickly during grazing and rumination of these grasses.

Obviously one of the best ways to minimise the effects of this grass is to add more fiber, however this is not always prac­ tical, and it can also be a relatively costly exer­ cise. While some fiber is great, it can lack nutrients and drag down the energy level. Too much can also make the rumen work harder than necessary, burning valuable energy in the process of break­ ing down the lower nutri­ ent fiber. The challenge here is not to reduce the energy, but to control its effects. Under these cir­ cumstances, an obvious addition to the diet is an effective rumen buffer.

The traditional buffer salt used has always been sodium bicarbonate; this salt is very soluble and shifts pH rapidly. Sodium bicarbonate has the disad­ vantage of losing the abil­ ity to effectively modify pH once the rumen gets much below 6.0. Rumi­ nants naturally produce large quantities of sodium bicarbonate as a key com­

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DAIRY NEWS MAY 11, 2021

24 // MOVING DAY

‘Sustainabiity, good team helps build better farmers’ DAIRY WOMAN of

the Year for 2019, Trish Rankin, says sustainable practices and picking the best team have helped her become a better farmer.

“Every year I’ve got more and more involved not just in our own farm­ ing business but all these other passions, too – the environment, DairyNZ and helping develop waste reduction projects, work­ ing with AgRecovery,” says Rankin.

“As I’ve found more gaps where I can help solve a problem, I’ve been happily developing them all.”

Rankin believes that

part of looking after the land means striving towards a circular econ­ omy.

As part of this, she’s developed a framework she calls the Porahita 10 (porahita meaning cir­ cular in te reo Māori) – involving 10 things farmers need to enact if a circular economy is to be viable. One of those Rankin refers to is ‘regen­ erate’, which includes questioning what busi­ nesses farmers can support that act as envi­ ronmental stewards for New Zealand.

“For example, with 100% renewable energy

Trish Rankin believes that part of looking after the land means striving towards a circular economy.

generation, that’s a reason why we use Meridian,” she says.

“What does it look like to be a better farmer? It looks like making a deci­

sion to support a com­ pany generating 100% renewable energy, with

the flow-on effect that it’s good for other people and the planet as well.”

And being a better farmer also includes having the best possible team around you.

“It’s pretty simple really, if you don’t give me good service then we don’t use you,” she says.

“I want you to buy in to helping me be a good farmer.”

“I think that’s genu­ inely what Meridian does, rather than just sending me a bill,” says Trish.

“They’ve got a really good relationship with farmers through the Dairy Awards, and they’re

always at the end of the phone when we need them.

“It’s the familiarity with someone who knows your business, your goals, and sits down and talks through what you want. It makes a difference.”

Meridian is already powering over 11,000 farms, and farmers like Rankin. But they are always keen to be on more farmers’ teams and help them work toward more sustainable prac­ tices.

The company is offer­ ing a $400 ‘moving credit’ for anyone switching to them around moving day.

DIGITAL CONNECTION UNITES FARMERS DAIRY FARMING can be rather iso­ lating at times, particularly in South­ land, so farmer Tangaroa Walker turned online to build a like-minded community.

His online training and educational platform, Farm4Life, is now connect­ ing farmers all over Aotearoa and the world with a sense of humour and eagerness to lift the level of knowl­ edge in the industry.

First entering the industry as a bright-eyed 14-year old, he now runs a successful 500-cow farm. While he personally had a lot of support from the Southland community, Walker realised there was an opportunity to build connections wider than just his immediate friends and help others into the world of dairy.

Turning to digital channels, includ­

Tangaroa Walker

ing Facebook, his videos now have attracted millions of views and his humble, engaging and charismatic

personality has attracted a wide audi­ ence.

However, being on a farm in Southland, one of his biggest strug­ gles was trying to get good internet connectivity.

“I was driving down the road to upload my video content every night and it was bloody frustrating,” says Walker. While good connectivity was needed to run his on-farm business, including managing health and safety, it was essential to be able to maintain Farm4Life online.

Using the power of social media, Walker put out a request for telcos to get his connectivity fixed. Farmside came to the rescue and set up a Rural Wireless Broadband connection with an external aerial.

“They got my internet set up within

a couple of days. Living rurally means mobile coverage can be a challenge at times, so I was stoked that Farmside was able to help out. It’s been gamechanging for me in running Farm4Life and means I can focus on building the community and sharing advice with other farmers - instead of wasting time finding a signal.”

Farmside is a rural wireless broad­ band provider, and part of the Voda­ fone network, based in Timaru with a fully New Zealand call centre with specialists ready to help with connec­ tivity challenges.

Jason Sharp, general manager for Farmside, says the company is com­ mitted to helping farmers to do what they do best by taking care of the con­ nectivity side of things.

“Farmers are busy people. Tanga­

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roa might be a dairy farmer and a con­ tent creator, primarily, but really he is also a part-time builder, plumber, electrician, engineer, truck driver, vet, accountant, employer, employee and primary ITO trainee. This all takes time and we wanted to take care of his internet connectivity, so he can focus on helping other Kiwi farmers to be the best they can.

“We work with the Rural Con­ nectivity Group and other providers such as satellite to offer rural Kiwis the ability to be connected. Vodafone is also investing hundreds of millions of dollars into building and upgrading cell sites around Aotearoa to respond to the increased use of technology during Covid-19 and beyond.”

• Check out Walker’s videos on www. farm4life.co.nz.

DAIRY NEWS MAY 11, 2021

MOVING DAY // 25

Ready for the big move MARC AND Nia

Jones are getting ready to move farm on 1 June to a new sharemilking opportunity at a 370-hect­ are farm at Mamaku.

“We’ve got our new NAIT number and pur­ chased the herd. There’s about 570 cows, 70 heif­ ers and around 100 calves.

The animals are already on-farm so that means less hassle with moving,” says Marc Jones.

The couple and their young and their young family were contract milk­ ing 950 cows at nearby Tokoroa when they heard about the new opportu­ nity.

They and their team of three staff expect to be very busy in the coming season.

“We’re also PICA (person in charge of ani­ mals) delegates for the owner’s Tirau farm and nearby grazing block where our young stock are going to.

So, we’ll be involved with managing three NAIT locations,” says Marc.

The Jones are well versed on their NAIT

obligations and register their animals using the farm management system MINDA. “Nia and I share the duties with the tag­ ging and registration of our animals. For rais­ ing heifers, we manually record the tag num­ bers and use WhatsApp to match the calving birth tag with a secondary tag identifier.

“For the bull calves, it’s more involved and we use a Gallagher tag reader. The tag reader scans the tag numbers on the animals and then provides a file which you can upload into NAIT. At calving, we keep on top of our NAIT account each day, it’s just easier to manage and less time con­ suming having to go back and do it.”

For tag manage­ ment, the couple rely on a Protrack drafting gate.

When the herd come in for milking, they can be checked for missing tags.

Animal traceabil­ ity is important to the Jones’ even though the logistics of doing it can be challenging

sometimes. While cur­ rent technology is not always keeping pace with today’s on-farm reg­ ulations, the need for traceability is an abiding memory for Marc.

“I believe traceabil­ ity comes from a good place. Growing up in Wales and working on farms as a youngster, I

still remember the foot and mouth (FMD) out­ break and I would never want to see it again, it was devastating.

“You would think the risk of this awful disease of M.bovis coming to your farm or community are convincing enough rea­ sons to ensure your ani­ mals are traceable.

“I do also believe in the value of being able to trace where pro­ duce has originated from and that prov­ enance story, which customers and over­ seas markets are increas­ ingly asking about,” says Marc. @dairy_news facebook.com/dairynews

Marc and Nia Jones.

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MOVING FARM or herd? Disease management agency OSPRI is ready to help with your NAIT and TB management obligations.

The ‘moving day’ period is generally the busiest time of the year for stock relocating with around two million animals moving nationwide.

This situation heightens the risk of disease spread so it is essential farmers moving herds or farm are ready and prepared.

Moving farmers are required to register a new NAIT number for their new location and record a movement for animals in the NAIT online system.

Dairy farmers and sharemilkers should also review their tag management when moving farms.

Any unused dairy participant code NAIT tags will need to be reassigned to the new location.

“The OSPRI Contact Centre can reassign these tags to a new NAIT location number because the par­ ticipant code printed on the tags refers to a herd, not a location,” says head of traceability Kevin Forward.

“However, if your tags have a NAIT location number printed on them, they cannot be re-assigned.

So, if you have stockpiled NAIT tags, you will be unable to use them at your new location. ”If taking over an existing NAIT number, farmers can use tags that have been left by an outgoing man­ ager when they become the registered PICA (person in charge of animals) at that NAIT location.

“When farmers manage their NAIT tags and reg­ ister their animals properly, it is easier to trace ani­ mals, and where they’ve been.

This way you are supporting national biose­ curity and the effectiveness of a potential disease response,” says Forward.

DAIRY NEWS MAY 11, 2021

26 // MACHINERY & PRODUCTS

BRP to deliver electric models in five years MARK DANIEL

Shift fuel easily Offering a 200-litre capacity, the poly-tuff tank incorporates four pockets to allow easy installation or removal from the vehicle.

markd@ruralnews.co.nz

BRP, MAKER of the

well-known Can Am brand of UTVs, has announced a five-year plan that will see the company offering elec­ tric models in each of its product lines by the end of 2026.

To achieve this, BRP plans to invest CA$300M in product development, specialised equipment, infrastructure, production tooling and facilities.

After developing and evaluating several concepts, BRP has made the decision to develop its Rotax modular electric powerpack technology, which will be incorporated in all its product lines to give customers an electric option.

The plan includes expanding its Rotax elec­ tric power unit develop­ ment infrastructure in Gunskirchen, Austria and creating the Electric Vehi­

BRP announces five-year plan to offer electric models in each of its product lines.

cle Development Centre, at the home base of Val­ court, Quebec, Canada.

This facility will feature state-of-the-art equip­ ment, including several sophisticated test benches and dynamometers, plus an ultramodern robotised manufacturing cell for electric batteries.

In early 2019, BRP acquired assets of Alta

Motors, an electric motor­ cycle manufacturer, is cur­ rently expanding its R&D team and developing elec­ tric drivelines with the involvement of engineers and specialists in Quebec, Austria, Finland and the United States.

“We have always known that electrification was not a question of if but a question of when,”

said José Boisjoli, Presi­ dent and chief executive officer as he released the new five-year plan.

“Today, we’re very excited to unveil more details of our plan to deliver market-shap­ ing products that will enhance the consumer experience by offering new electric options,” he added.

DESIGNED TO fit wide-bod­ ied utes with familiar names like Ranger, Hilux, BT-50, Triton, Navara, Dmax and Amarok, Silvan’s new diesel transfer unit should prove useful for delivering fuel to outlying areas of a property or tractors or harvesters work­ ing away from home.

Offering a 200-litre capacity, the poly-tuff tank incorporates four pock­ ets to allow easy installation or removal from the vehicle, while an integral baffle is designed to stop “surge” during sudden movements or when the tank is partially empty.

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DAIRY NEWS MAY 11, 2021

MACHINERY & PRODUCTS // 27

Pasture management made easy MARK DANIEL markd@ruralnews.co.nz

THOSE LOOKING

to use direct seeding to establish, rejuvenate or repair grass paddocks or plant catch crops might want to take a closer look at the recently introduced Erth Engineering Agri­ seeder.

Marketed by Ag and Civil Machinery Direct Ltd, a division of Waikato Tractors in Hamilton, the three metre, 24-row model features a galvan­ ised, heavy-duty, link­ age-mounted frame that weighs in around 1500kg.

This carries three inde­ pendent sections, each carrying eight coulters, mounted to the frame using 40mm heavy-duty torsional rubbers that help absorb shock loads, while also allowing more travel and flexibility.

Angled and scalloped single disc assembly combining to create a 7mm wide band, where the crumbled soil creates a micro-climate offering the seed moisture and the seedling protection as it emerges.

Offering a row spacing of 125mm (5 inches), the coulter arms have 4.5mm Forge de Niaux boron steel soil engaging tips, followed by an angled

and scalloped single disc assembly, both combin­ ing to create a 7mm wide band, where the crum­ bled soil creates a microclimate offering the seed

moisture and the seedling protection as it emerges.

Sales manager at Waikato Tractors, Ben Peters says, “by direct drilling into a firm seed­

bed, seeds are positioned in the fertile areas of the upper levels of the soil profile, moisture is retained and stones and trash are left undisturbed,

while the turnaround back to grazing is also reduced.”

As part of the standard equipment, an Autocon­ tour system acts a sec­ ondary suspension, with the benefit of offering better ground following in undulating terrain. Each coulter block is pushed downwards using individ­ ual hydraulic cylinders.

Each of the cylinders is connected, so the down­ ward pressure is equalised over the full width of the machine, despite undulat­ ing ground. The system is also said to improve machine reliability, by reducing loads on the frame mounting points and bearing assemblies throughout the machine.

Seed distribution is taken care of using a Kverneland-sourced system, with seed meter­ ing via a land wheel drive and fan-based pneu­

matic distribution, with seeds passing down indi­ vidual pipes to the coult­ ers. The system features a 400-litre plastic hopper, accessed via a galvanised ladder to a loading plat­ form with a safety rail.

Fan speed and seeding information is displayed on a simple readout on the side of the seed hopper, while at the rear of the machine a full width flat roller is fitted for load distribution and consolidation post-seed­ ing.

A range of options includes weight frames for difficult ground con­ ditions, front and rear harrows for conven­ tional tillage situations or improved seed covering in very dry conditions and a second hopper for use with double-entry coult­ ers for fertiliser applica­ tion at the same time as seeding.

DAIRY NEWS MAY 11, 2021

28 // MACHINERY & PRODUCTS

Honda to quit Oz ATV market MARK DANIEL markd@ruralnews.co.nz

CONFIRMING A move signalled over a year ago, in response to a direc­ tive by the Australian fed­ eral government that all quad bikes must be fitted with operator protection devices, Honda will stop selling quad bikes in Aus­ tralia on October 10.

Instead, the motor­ cycle and vehicle manu­ facturer says it will focus on developing its market for side-by-sides/UTV’s in Australia, after failing to convince the federal authorities to overturn its decision to force manu­ facturers to fit OPD’s on new or used units from October 11th.

Honda is one of sev­ eral manufacturers that disagree with the man­

datory requirement to fit protection devices.

Director of Honda Aus­ tralia Motorcycle and Power Equipment, Peter Singleton, says “safety standards must be evi­ dence-based, in both criteria and testing meth­ ods, to internationally accepted standards.

“Honda has provided research to show the neg­ ative outcomes of the government’s proposal but unfortunately it was rejected”.

While Honda is said to be disappointed with the outcome of the negotiations, it has confirmed that it will continue to support its current quad bike (ATV) users through the transition.

Honda has always been and continues to be a strong advocate for

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rider safety, supporting all of the known and proven safety measures recommended by experts and coronial inquests, including the mandating of safety helmet use for all ATV and side-by-side riders, rider training and the prohibition of riders under the age of 16 from riding adult size vehicles.

“This will continue to be a strong focus for Honda right across our operations from rider training to marketing, dealer networks and after-sales support,” said Singleton In 2019, the federal government agreed on a suite of new safety standards for quad bikes, as recommended by the Australian Competition and Consumer

Honda is one of several manufacturers that disagree with the mandatory requirement in Australia to fit protection devices.

Commission (ACCC), who investigated ATVrelated deaths on farms in

the past 20 years. ACCC chairman Rod Sims has made it clear in recent

LET THERE BE LIGHT WITH SHORTENING days mean­ ing the need for good lighting is even more important out on the farm, auto­ motive lighting specialist, it might be time to upgrade your illumination.

NARVA says its Explora range suits farmers and contractors who spend time on or off-road and need more powerful lighting in a compact design.

Designed for SUV’s, utes and small trucks, the 175mm diameter lights have a slim profile that will fit within almost any bull bar, while the 350mm light bar comes with a number plate bracket, meaning installation is easy on any vehicle.

On the performance front, a pair

weeks the commission is determined to push ahead with the compulsory

fitting of rollover protection devices on quads.

NARVA says its Explora range suits farmers and contractors.

of Explora 175 lights put out 3,800 lumens of 5,000k light, for 1 lux at 535 metres – in simple terms, meaning from 535 metres away, there is enough light to read a newspaper.

The light bars are equally impressive; with the number plate mounted 350mm bar pushing out 6,000 lumens and the 560mm double row bar an enormous 18,000 lumens.

This above average performance is achieved using “Optic Drive Tech­ nology”, utilising a specially designed reflector, to produce 20% more light output compared to more traditional free-form L.E.D driving lights and light bars of a similar size.

POWER CUTS – CAN YOU AFFORD THE RISK?

INDUSTRIAL GENERATOR

• Direct PTO driven (no gear boxes or belts) • Heavy duty construction (including drive shaft) • Dials facing cab (one person operator)

Ask about our range of

SILENT DIESEL GENERATORS

Sized for: • Cow sheds • Pump sheds • House standby

• Designed and assembled locally for rugged conditions!

• Three sizes to suit all sheds: 37.5KVA, 62.5KVA and 93.75KVA

TRAILER OPTIONS AVAILABLE

• Silent diesel available by pre-order only

0800 10 7006 www.corkillsystems.co.nz

SKP1660 FW

FOR A LIMITED TIME ONLY

Nine New Zealanders are diagnosed with breast cancer every day, a third of which live outside the main centres. Working in partnership with Breast Cancer Foundation New Zealand, Skellerup has created Pink Band gumboots to raise money and show our support for those affected by the disease, particularly in rural communities.

Five dollars from every pair of boots sold will go directly to the foundation.

Designed and hand-crafted in exactly the same way as the traditional Red Band, these limited-edition gumboots feature pink detailing and a pink ribbon printed on the calf. Sizes range from 3-9 for Women/Youths, and 4-13 for Men.

Pink Bands are available in store and online exclusively from Farm Source, Farmlands and PGG Wrightson.

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Weight: Feed volume: Feed weight – wheat/lupins: Feed weight – barley/pellets: Feed weight – oats: Cattle/calves (paddock): Cattle/calves (feedlot): Dimensions at cattle height:

265kg 1000 litres 770kg 650kg 520kg 40-50 30-35 3465x1200x1325

Note: On-farm towing only

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