Dairy News 8 June 2021 by Rural News Group

Organic milk price drop. PAGE 5 BOARD ROLE Helping farmers grow PAGE 12

Turn to page 1 JUNE 8, 2021 ISSUE 472 // www.dairynews.co.nz

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Organic milk price drop. PAGE 5

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BOARD ROLE Helping farmers grow PAGE 12

JUNE 8, 2021 ISSUE 472 // www.dairynews.co.nz

LONG ROAD TO RECOVERY Swathes of farmland in dairying heartland of Ashburton will take years to recover. PAGE 3-4

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DAIRY NEWS JUNE 8, 2021

CANTERBURY FLOOD // 3

Drying out after a red alert flood NIGEL MALTHUS

CANTERBURY IS drying out Managing workplace risks. PG.15

Reducing winter grazing woes. PG.19

SIDE heads to Ashburton. PG.22

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after a rare red alert weather bomb dumped up to half a metre of rain across the province in only three days and caused “devastating” damage to swaths of farmland, especially in the dairying heartland of Ashburton. Some of the damage will be permanent, says Mid-Canterbury Federated Farmers president David Clark. Clark said there were two levels of impact: farms all over the region faced silting and water damage and poor utilisation of feed because it is so wet; but then there were the farms adjacent to the rivers which burst their banks. “They’ve got all the problems that the other farmers face, but then they’ve got, in many cases, devastating on-farm damage. “Some of the damage on these farms will be permanent and some of it will take years to heal,” he said. “We’ve got sections of river berm that have completely disappeared. Currently we have active rivers running through farmland that need to be put back into their fairways.” Clark said fences and culverts were washed out and laneways damaged. There was a lot of scouring, or shingle and willows from the rivers deposited into paddocks. Some farms have lost a good portion of their winter feed. Clark met the Prime Minister Jacinda Ardern, Agriculture Minister

Some damage on farms will be permanent and some of it will take years to heal.

Damien O’Connor and Acting Minister for Emergency Management Kris Faafoi during their fact-finding tour of the damage. He called the meeting “constructive”. “We have certainly impressed upon the government the need for them to assist district councils and the regional council in repairing roads and rivers. “We would also hope that there could be some assistance given to removing trees and rocks that came out of the river berms and help to remove them from farms.” Agriculture Minister Damien O’Connor has declared it an adverse event, unlocking funding of $500,000 for flood recovery measures. “The money will be used for recovery grants, to enable the region’s three Rural Support Trusts to provide extra help to farmers,

and for other flood assistance where needed. “We will continue to assess whether further support is required as the full extent of the flooding becomes clearer.” O’Connor said there was widespread flooding and significant damage to property and the road network. “It’s putting further pressure on farmers who have been battling drought and we’re committed to helping them get through.” Other recovery measures being considered include an Enhanced Taskforce Green work programme to assist with clean-up and recovery, Rural Assistance Payments to help farmers with essential living costs, and flexibility through the Income Equalisation Scheme. MPI is working closely with Civil Defence Emergency Management

staff, industry groups and others to help with the recovery effort, including the animal welfare response. “Support is available for farmers who are short of livestock feed, or who have had baleage and fodder crops washed away or damaged by floodwaters,” said O’Connor. Speaking to media at Christchurch Airport after inspecting the damage by helicopter, Prime Minister Jacinda Ardern said there was a big cleanup job ahead. “From that aerial view you just get a sense of the scale. It is quite devastating in some areas and there’s a lot of work for us to do. “You could see that winter feed has been affected, you could see that from the air. You could see how for some farms they’ll be completely cut off from even accessing their feed. You can see damage to fencing and the impact on transport links.”

DAIRY NEWS JUNE 8, 2021

4 // CANTERBURY FLOOD

Close call for Mt Somers Station NIGEL MALTHUS

MID-CANTERBURY FARMERS David and

Kate Acland own Mt Somers Station, near the Ashburton River gorge and the epicentre of the heaviest falls. They lost several kilometres of fencing where the river burst its banks but say others downstream were worse hit and faced months of clean-up and thousands of dollars in repairs. Speaking after a couple of days of sun, David Acland was upbeat about the recovery of their own farm, where they run a 1,300-cow dairy operation, 200 head of beef cattle, 13,000 sheep and 3,000 deer. He said they were lucky with where they were growing winter feed and positioned their silage pits. “Stock-wise, we’re back into our normal routine. We’ve got some sodden pastures where we’re just having to re-jig our grazing rotation but other than that, we’re pretty good. “The water’s starting to subside where it burst through the river and once that’s gone down further, hopefully we’ll be able to reform our floodbanks and then let that area dry out.” He already had the

The floods caused serious issues for farmers who are still milking. PHOTO: ECAN MEDIA TEAM

SOME MILK DUMPED – FONTERRA Mt Somers Station lost several kilometres of fencing where the river burst its banks but the property fared better than many others in the region. PHOTO: MT SOMERS STATION

insurance process underway for fencing, stock water systems and other infrastructure. The dairy shed needed some electronics repaired but he was already winding down milking and the herd was now dried off. North Canterbury farmer Caroline Amyes said her district appeared to have dodged a bullet, compared with the worsthit areas of Mid Canterbury. “The indication so far is that it hasn’t been a huge loss of stock. Everyone has been very proactive in managing their stock, ensuring that they’re moving animals regularly and keeping on them to make sure that

“There’s a huge amount of fencing and roading damage, lots of bridges washed out. It’s key to get that infrastructure up and running as quickly as possible.” they’re not inundated with floodwater.” “There’s a huge amount of fencing and roading damage, lots of bridges washed out. It’s key to get that infrastructure up and running as quickly as possible.” North Canterbury Feds dairy chair Karl Dean said most dairy farmers had tried to dry off their herds before the weather hit. Trucking companies

were also busy on Friday and Saturday, trying to get stock moved in advance of the traditional moving day of June 1. “Obviously we all knew it wasn’t going to be feasible to get trucks into paddocks and into wintering blocks,” he said. However, Dean said there hadn’t been a “huge” movement of 50:50 share milkers and their herds. That was becoming less common

year by year. Instead, it was the movement of people at management level, such as contract milkers. He knew of some who’d been able to make the swap on the Friday before the rain hit. “So hopefully there’s been a bit of that leniency throughout the sector.” Dean farms near Lake Ellesmere at the bottom of the Selwyn catchment. Unlike the Ashburton catchment, the impact didn’t appear too bad, he said. “I believe it hasn’t broken out anywhere it doesn’t normally break out. A lot of people were at least prepared for this which is the main thing.”

A NUMBER of farmers were forced to dump milk, says Farm Source regional head Charles Fergusson. The feedback from Fonterra suppliers was that the flooding brought a “really tough” situation for some but others were surprised their farms fared as well as they did, he said. Worst affected were farms along the Ashburton River. “We had some challenges earlier on farms on North Canterbury as well, so we had farmers evacuated out of their houses up there on Sunday night. “There were a number of farms out there who we asked to dispose of milk. One of the reasons is that we just weren’t happy sending tankers out in those conditions with uncertainty over roads and also the state of the tanker tracks.” Fonterra also had to briefly evacuate the Clandeboye factory when a local creek burst its banks. Fergusson said a lot of farmers would have wanted to push the season further but they dried off early to beat the weather. However, Fonterra had a couple of hundred suppliers still milking as well as 60 to 100 true winter milkers. “I think we our transport team do an incredible job as long as they’ve got a route to factory so we we’re working quite closely with the authorities regarding roading to see if we are able to get around.” – Nigel Malthus

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DAIRY NEWS JUNE 8, 2021

NEWS // 5

Organic milk price drops SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA’S SMALL

group of organic farmers are facing a drop in milk price after a record $10.26/kgMS payout last year. The co-operative’s 70 organic suppliers have been told to expect a $9 payout for the 202021 season that has just ended. In an email, Fonterra chief executive Miles Hurrell told farmers that globally, consumer demand for natural, healthy, sustainable products continues to drive growth in organic dairy.

“However, despite the increasing demand, organic milk supply globally remains in surplus and this is negatively impacting global prices,” he says. In addition, Covid-19 continues to impact some Fonterra customers. Hurrell says while Fonterra can still get products to these customers, the disruption they are experiencing in their supply chains means the cooperative is seeing less demand from them for organic ingredients. “This is particularly the case for our Australian based customers that export to China. “As they put their

Fonterra says organic milk supply globally remains in surplus and this is negatively impacting global prices.

energy into keeping their businesses running, they also have a reduced appetite to drive new product development.” Hurrell says these supply and demand

dynamics are flowing through to its opening 2021-22 forecast organic milk price – $8.10 - $9.10/kgMS range, with a midpoint of $8.60/kgMS.

Fonterra’s organic payout for 2020-21 has narrowed to $8.90 - $9.10/ kgMS, with a midpoint of $9/kgMS. It had opened the 2020-21 season with a $8.50 - $9/kgMS range.

All of Fonterra’s organic ingredients and consumer products are made in the North Island from North Island supply. Its key sales regions are the US, Australia, South Korea, New Zealand, China & SEA, India, South America & Taiwan. Fonterra’s $10.19/kgMS payout for organic milk last year is a record price for cow milk in New Zealand. Last month, Fonterra announced an opening forecast farmgate conventional milk price range of $7.25 - $8.75/ kgMS, with a midpoint of $8/kgMS – a record opening forecast. Hurrell says

that the improving global economic environment and strong demand for dairy, relative to supply, are sitting behind the coop’s $8 midpoint. Global demand for dairy, especially New Zealand dairy, is continuing to grow. China is leading the charge as its economy continues to recover strongly. Hurrell says, prompted by Covid19, people are seeking the health benefits of milk and customers want to secure their supply of New Zealand dairy products and ingredients. @dairy_news facebook.com/dairynews

CHECK YOUR INSURANCE COVER FARMERS AFFECTED by Canterbury flooding are being urged to check what business interruption (BI) cover they have in place. The suggestion comes from the Insurance & Financial Services Ombudsman (IFSO), Karen Stevens. “In stressful times such as this, we can immediately see what’s obvious – loss and damage to property and land,” says Stevens. “But the other costs that lie behind what we physically see can be huge. Other than damage to property, farmers should check the actual loss to the running of their business, as well as running and extra costs to keep property, including stock, safe and well fed.” Stevens recommends checking business interruption policies to see what cover there is, and when it comes into play. “For example –

Canterbury farmers impacted by the recent flood are being urged to check their insurance cover. PHOTO: ECAN MEDIA TEAM

there almost always needs to be physical damage to a farm building before the BI cover will kick in. Is there a stand-down period before you can claim? Is there BI cover if you can’t get to the milking shed? What happens if the milk company cannot collect my milk, or I can’t get stock to

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the processing plant? What happens if I have to dump milk?” Sometimes there is extra cover with farm buildings or contents polices for extra costs incurred – such as bringing in feed, hiring a generator, transporting stock to another farm, or taking them elsewhere for milking.

As well as contacting the insurance company, Stevens says farmers can check their contract with the milk company – or even call them to check expectations. Regional Councils can also be an essential information source. “Floods can impact the ability to

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manage environmental risk, so check the relevant Regional Council website for any announcements regarding their expectations, and also call them with any concerns about spills, waste and dumping of milk.” Claims for Resource Management Act (RMA) breaches are not an easy fix. There are other aspects to an ongoing business that can cause interruption. “Aside from the damage to buildings, check there is cover for fencing, bridges and culverts. These items are not always automatically included, as there may be special terms or limits in cover,” she says. Stevens has a last word of advice. “Essentially, do the homework on the ongoing costs of how your business will be affected. Do it now and you could save time and cost further down the track.”

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DAIRY NEWS JUNE 8, 2021

6 // NEWS

Methane fix ‘coming soon’ PETER BURKE peterb@ruralnews.co.nz

FARMERS CAN expect good science-based viable tools to deal with their greenhouse gas emissions within the next five years. That was one of the messages from last week’s conference on agricultural greenhouse emissions, attended by more than 320 people, with additional participants from 15 countries and NZ joining in via Zoom. Most of the participants were policy or science people and just a few actual farmers. Dr Harry Clark, the director of the NZ Agricultural Green House Gas Research Centre, says the mood of the conference was one of optimism that solutions were being developed. He says one of the most promising

Dr Harry Clark

options is nitrate inhibitors, which is being trialled overseas now and proving very effective. But

he says, in the end, dealing with greenhouse gas emissions (GHG) will likely involve a combi-

nation of tools and solutions. He says there were two key messages from the conference. “Firstly, NZ has to be active in its approach to climate change and has to take action along with the rest of the world to reduce GHG’s. It isn’t a choice to us because we are a major exporter and our customers are saying that we have to do that. “The phrase used by one person was ‘customers are controlling the playing field’ and the customers are saying we want you to reduce your GHG emissions. So I think the message was – we have to do this,” he says. But Clark says on the other side of that message was, we are actually seeing the development of technology now that will help farmers achieve what they are being asked to

achieve. “So from politicians and industry the message is that we have to take action, and then from the science side we got some positive messages that here are some technologies that are coming on,” he says. Clark says one of the

highlights from an NZ perspective was a talk from a senior Irish agricultural official, Dr Dale Crammond, who pointed out that his country is in exactly the same situation as us. He says Crammond noted that what they are doing mirrored the sorts

of things we are doing, but points out that they have got bigger problems than us because they have got stricter targets dictated by the EU. “The nice message was – you (NZ) are not alone,” he says. @dairy_news facebook.com/dairynews

Award nominees JESSICA MARSHALL jessica@ruralnews.co.nz

DAIRY COMPANIES Association of New Zealand (DCANZ) chairman Malcolm Bailey has been nominated for the Outstanding Contribution Award at the Primary Industry Awards. Bailey also chairs the Red Meat Profit Partnership (RMPP). He was a director on Fonterra’s board from 2004 until 2016 when he retired from the position. Also in the running for the Outstanding Contribution Award are farm investment manager Tony Cleland from FarmRight and Richard Lucas, a senior lecturer at Lincoln University. Other notable nominations include NIG Nutritionals who were nominated for the Producer Award.

NIG Nutritionals are an Aucklandbased company specialising in goat milk. Recently, they signed a deal to manufacture and commercialise products overseas. Bevin Harris, science leader at LIC, has been nominated for the Science & Research Award. Harris leads a group that uses analytical and learning models to interrogate and interpret data from the on-farm automated data capture of animals and the environment. Nominees for the Emerging Leader Award category are Angus Dowson from Ballance Agri Nutrients, Emma Boase from Horticulture New Zealand, and Coadette Low from Rathkeale College. Ballance Agri Nutrients is also jointly nominated with Hiringa Energy for the Innovation & Collaboration Award for their Hydrogen project.

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NEWS // 7

$8 milk price still on the cards despite GDT blip But McIntyre says a lot of water needs to pass under the bridge before that milk price is realised. “That’s the nature of commodities,” he says. Last week’s Global Dairy Trade recorded a 0.9% drop in the price index and a 0.5% drop in the whole milk powder (WMP) price. Jarden notes that there have been small movement in prices either way over the past five auctions. “After the 21% jump in WMP prices in March, we were bracing for a period of volatility. That’s not the case.” Jarden thinks if WMP price remains above US$4,000/metric tonne

SUDESH KISSUN sudeshk@ruralnews.co.nz

AN $8 forecast farmgate

milk price for this season remains on the cards despite a fourth straight dip in global dairy prices. Global demand for dairy remains strong and on the supply side, last week’s devastating floods in Canterbury could peg back New Zealand milk production which had seen big increases in March and April. The head of derivatives at investment firm Jarden, Mike McIntyre, told Dairy News that the “general view is that an $8 milk price is how things look at this stage”.

He says unexpected events like the recent Canterbury floods could come into play. While he didn’t expect it to dent milk production this season, parts of the region would be impacted. “There was a view offshore that New Zealand would ramp up production as prices rise,” he says. “We are mostly a pasture-based system and unlike the US, EU and even Australia, we cannot use supplement feed to raise production. “And, also environmental regulations around nitrates mean it will be difficult for our farmers to increase production without raising the ire of

Mike McIntyre, head of derivatives at investment firm Jarden.

and the exchange rate hovers between US72-75c,

an $8 payout is on the cards.

regional councils.” Westpac senior agri economist Nathan Penny agrees that the Canterbury floods pose minimal risk for the new season’s production outlook. “Notably, many farmers have lost winter feed during the floods, with feed stores already low given earlier dry conditions. “While this may not necessarily impact production levels from the spring, any additional adverse weather events certainly will.” Penny expects a 2% lift in nationwide production this season. He believes the very strong milk price likely to drive production higher, even with com-

pliance and regulatory constraints acting in the opposite direction. Penny says risks to its 2021/22 farmgate milk price of $8/kgMS remained balanced. Fonterra has announced a Farmgate Milk Price range for the 2021/22 season of $7.25 $8.75/kgMS, with a midpoint of $8/kgMS. Synlait has also come out with an $8 forecast. Chief executive John Penno says commodity prices have continued to outperform expectations, predominantly due to strong Chinese demand, combined with a relatively stable exchange rate. @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 8, 2021

8 // NEWS

An attractive option for trainees JESSICA MARSHALL jessica@ruralnews.co.nz

THE PERCEPTION of

dairy as a career path is changing, according to a mid-Canterbury training provider. Agri Training project manager Trina Moore says a lot of its graduates find work on dairy farms. “Trainees see the opportunities in dairy, not just the amount of jobs available, but the lifestyle, how quickly one can progress from an assistant to a 2IC and then a manager,” Moore told Dairy News. “Career progression and good salary are a reality.” On average, salaries in the industry start at between $47,000 and $50,000 per year, plus accommodation. “A lot of our graduates find work on dairy

farms and while it may not be their first passion, we are finding many have been surprised about how much they love it,” Moore says Agri Training trains Kiwi ready for work in the primary industries, and partners with industry recruiters to place them in employment. Last month, Minister of Immigration Kris Faafoi asked industries to prove they are providing training, wages and conditions suitable for attracting New Zealanders; something Agri Training has been doing since Covid-19 struck New Zealand, says Moore. “We knew farmers couldn’t wait for the border restrictions to lift, so we began our programme last year just after Covid-19 hit.” Having completed their fourth 13-day resi-

Trainees see the opportunities in dairy, not just the amount of jobs but the chances of progression.

dential rural retrain programme, Agri Training has produced 78 graduates with 92% in employment. According to Moore, Agri Training works with partners New Zealand Dairy Careers and Agstaff to help place trainees in work. “It’s a win-win. People are provided with the basic skills needed to move into the indus-

try, and business owners and farm managers have people ready to roll up their sleeves and get stuck in.” Dorie dairy farmer Joseph Koorey knows the difficulty in finding staff. “Agri Training and New Zealand Dairy Careers have helped us to get the right people in after we struggled to find staff.

“They show the trainees the reality of farming and they get to know them to make sure they have the potential to work on farm.” According to Koorey, it’s not only the ability to manage the lifestyle, but it’s also about working as a team. “We have a bit of banter on farm, so it is important that we get it

right for the team culture.” Koorey agrees with others in the industry who welcome Agri Training’s live-in training, which helps to build skills and teams, as well as their approach to screening candidates and ongoing pastoral care that both candidates and employers can fall back on. According to Anthony

Martin, New Zealand Dairy Careers business development manager, the dairy industry is evolving. “In the past, farmers have relied on word of mouth to find staff. Hiring has become more difficult. “People show up for a few weeks and then think it’s not for them, leaving the farmer a person down and wasted time spent on training.” The training is equipping people with transferable skills across the industry while helping match the right people to the right jobs. Agri Training teaches trainees everything from pasture management to stock handling and health to operating on farm machinery/vehicles confidently, while providing an overview on business within the primary industries.

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NEWS // 9

ENSURE THEY REACH THEIR PEAK POTENTIAL The essential building blocks for optimal health including vitamin B12 in one convenient injection. World Milk Day was celebrated around the world on June 1.

World Milk Day toasts Kiwi farmers farmers continue to play a key role in a post-Covid economy as a sustainable producer of milk for the world. DairyNZ chief executive Dr Tim Mackle says our communities and regional economies see real benefits from dairy, particularly with current increased global demand for dairy product. He made the comments on June 1 – set aside by the Food and Agricultural Organisation as World Milk Day. “We should be really proud of our dairy farmers for sustaining our country’s success through more environmentally efficient products, while supporting our communities and the New Zealand economy,” says Mackle. “Our analysis has shown this past season’s increase in milk price delivered an additional $2.1 billion within our communities alone. The total increase in revenue for the country therefore sits at around $3.28 billion. “Our findings have shown these flow-on effects have meant the total economic contribution from dairy was around $42 billion this

CELEBRATING SUSTAINABILITY WORLD MILK Day was established by the Food and Agriculture Organisation of the United Nations (FAO) in 2001 to celebrate and increase public awareness of the important contributions of the dairy sector to sustainability, economic development, livelihoods, and nutrition. This year’s World Milk Day social media campaign focuses on sustainability to showcase dairy’s commitment to innovation in reducing the sector’s environmental footprint. The three-day Enjoy Dairy Rally also focuses on three additional themes in the lead up to World Milk Day: nutrition, community, and enjoyment.

season.” Mackle says for every $1 increase in milk price, around another $1.80 flows into other sectors within the economy. Flow-on spending pays wages and injects cash into other sectors, including farm purchases, pharmaceutical products, construction, electricity and voluntary household expenditure. “Dairy farmers achieve all this while being the most emissions efficient producers globally,” says Mackle. “We are committed to remaining a sustainable producer of dairy product and, to do that, we have a wide range of work underway to enhance the environment, including

reducing emissions and improving water quality, while maintaining profitability.” Farmers nationwide have fenced waterways, 100% of stock crossing points have bridges and culverts, while thousands of farmers are carrying out extensive planting alongside waterways. In 2019 the dairy sector accounted for more than 5% of GDP in seven regions – and more than 10% in four of those. In dollar terms, this equates to dairy contributing more than $100 million to GDP in most regions – including nearly $2 billion in Canterbury and $2.5 billion in Waikato. The sector delivers nearly $21 billion in export value.

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DAIRY NEWS JUNE 8, 2021

10 // NEWS

Is sheep milking more kind on environment? PETER BURKE peterb@ruralnews.co.nz

FINDINGS FROM an AgResearch study shows that dairy sheep appear to have lower nitrogen leaching per hectare than their bovine counterparts. Dr Diana Selbie has been leading an MBIEfunded project looking at the environmental footprint of dairy sheep to provide hard data to back up claims that this industry is more environmentally friendly. She says the industry is small but fast growing and is in need of evidence to support their green reputation in international markets.

“Not only has no environmental work been done on dairy sheep in NZ but not much work done on sheep at all, in terms of grazing systems. So we were starting with not much at all,” she says. Selbie says one of the land use options proposed for nitrogen sensitive catchments could be dairy sheep. Similarities in farming systems between dairy cows and dairy sheep means existing knowledge can be applied. The environmental study into the sheep dairy industry was part of a wider project. “Environmental effects were a small part of a

Diana Selbie (inset) says one of the land use options proposed for nitrogen sensitive catchments could be dairy sheep.

wider programme looking at other topics such as lamb rearing, and human nutritional aspects of sheep milk such as digestion. We decided right at the start to focus on the nitrogen questions. So our

idea was to provide some baseline information like what kind of nitrogen leaching might we expect under grazing dairy sheep in NZ,” she says. To that end the team decided to focus on two

contrasting areas – Taupo in the North Island where the soil is light and the climate is summer dry, and South Otago, where the soils are heavier and the climate wetter. The South Otago trial was different in that it compared ‘non lactating sheep’ to cows, for twelve months, whereas Taupo provided

N leaching data between lactating dairy sheep for two years. Dr Selbie says in an ideal world the trials would have been longer. The project wasn’t without its challenges in that it took place over two years when there was a major drought. The key finding was that N leaching ranged

from between ten to fifty percent lower from dairy sheep than what might be expected from dairy cows. The range is due to the variability in soil type, climate, nitrogen use, and the ‘edge effect’. “Sheep have a smaller bladder and when they urinate it is in smaller amounts and with lower nitrogen concentrations. What that means is that nitrogen is spread around more by the sheep compared to a cow. Also, what we call the ‘edge effect’ means that because there is a smaller urine patch, the pasture roots can access more of that nitrogen in the smaller patch than they can from the bigger patch, which means that they are getting a greater spread effect,” she says.

THE GHG SIDE WHILE THERE is some comparative data on N leaching, there is virtually nothing at all when it comes to GHG emissions for dairy sheep and Diana Selbie says a lot more work needs to be done in this area. Their findings in this study are preliminary calculations for dairy sheep, compared to more comprehensive past work done on cows. “Greenhouse gas emissions from the dairy sheep systems were lower generally, on a per hectare basis, than for dairy cows. “Any benefit was lost however, in fully-housed dairy sheep systems due to greenhouse gases generated through storage of manure and effluent.” Selbie says the focus up until now has been N leaching; miss-

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ing out in the research has been greenhouse gases and other contaminants. She would like to see future research broadened to consider ‘life cycle assessment’ or LCA, which looks at the cradle-tograve footprint of a product, taking into account factors within the farm gate like imported feed, and beyond the farm gate including processing, distribution, retail and consumption waste. Selbie’s colleagues are keen to examine E.coli measurements from dairy sheep and hints that sheep may be higher than dairy cows. She says the critical next step for the dairy sheep industry is to look to have an Overseer module developed for them as currently only workarounds are possible.

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DAIRY NEWS JUNE 8, 2021

12 // NEWS

Rankin gets board role THE 2019 DAIRY Woman of the Year, Trish Rankin, is joining AGMARDT as an associate board member. Rankin, a Taranaki farmer, is also a trustee on the Dairy Women’s Network Trust and has recently ended three years as a member of the NZ Dairy Enviro Leaders Steering Committee for DairyNZ. She also owns and operates a consultation and facilitation business Porohita, supporting farmers and rural commuTrish Rankin nities. Part of the team facili“I am excited to join tating Venture Taranaki’s ‘2050 Transition to a Low team AGMARDT, an organisation that is about Emission Economy Project’ and having been a cli- optimism and enabling innovative growth and mate change ambassador for four years, Rankin has learning and development in our agricultural sector,” also facilitated ‘regenersays Rankin, who received ative ag’ workshops and funding to PM designed workshops on NZFMA-horizontal.pdfAGMARDT 1 29/04/21 12:03 attend the 2020 internaimproving farm waste.

tional annual agribusiness seminar at Harvard Business School. “Being part of a wellrun board, learning how to make governance decisions, learning about the ‘why’ of what AGMARDT is tasked to do, helping shape a better future is

a fantastic opportunity,” she says. As associate director, Rankin will attend board meetings and develop her own governance development programme in conjunction with the board during her 18-month term.

AGMARDT chairman Richard Green says they are thrilled with this appointment. “The associate board member position exists to give emerging agribusiness leaders the opportunity to observe and experience governance in action within an innovative agribusiness environment. “Trish is a proven rural leader, a successful and award-winning dairy farmer with strong executive and governance experience and a real passion for continued professional development to support her drive to help shape a positive future for New Zealand’s food and fibres sector. “Developing people with good leadership and governance skills is paramount given the importance of agribusiness to the New Zealand economy,” says Green.

OPEN DAYS ON FEEDING CALVES A SERIES of open days will run in the North Island

this month on controlling feed intake of calves and heifers. Organised by Advantage Feeders, five open days are planned – on farms in Cambridge, Rotorua, Fielding, Stratford and Waipu. The open day will consist of two presentations and a demonstration. Dairy farm consultants from Headlands Consultancy, Ron Mulder and Liam Bawden, will discuss heifer nutrition, what it takes to grow great replacements and how this will benefit your bottom line. Gerard Roney, founder of Advantage Feeders, will show the benefits of the controlled system and demonstrate how it works. The presentations will be followed with a catered lunch. Advantage Feeders says it has been helping farmers around the world overcome feeding challenges for almost 15 years and has now developed a model for the New Zealand dairy farmer. It harnesses the innovative and break-down free feed intake control system with easy manoeuvrability in wet and trying conditions, the company says. To register, visit the Advantage Feeder website.

Do you know if your feed is FeedSafe accredited? Find out at the NZFMA Fieldays stand NZFMA Fieldays stand number AG 7C

DAIRY NEWS JUNE 8, 2021

NEWS // 13

Australian supermarket giant Coles is directly buying milk from farmers at a higher price than offered by processors like Fonterra.

Aussie retailer boosts direct milk buying model SUDESH KISSUN sudeshk@ruralnews.co.nz

THE BATTLE for milk in Australia has

just got tougher for processors like Fonterra. Giant food retailer Coles is chasing more direct suppliers and ramping up the pressure on milk processors by announcing three-year minimum price contracts to secure the supply. Australian media reports say Coles will pay farmers a full season price of about A$7.19/kgMS, which puts them ahead of most processors, including Fonterra. Fonterra, which collects and processes milk in Victoria and Tasmania, recently came out with an opening price of A$6.55/kgMS. In Australia, milk supply agreements for the new season must be signed before June 30. A Fonterra spokesperson told Dairy News that while it couldn’t comment on what Coles is doing, in terms of its own milk supply, it has come out early with an opening price. “Coming out early with an opening price for the new season means our team has been able to get a head start and are out talking to farmers and getting agreements signed ahead of the 30 June deadline. “The response from our farmer partners on our price announcement has been really positive; they appreciate the early signal which helps them plan for the season ahead.” Fonterra has been facing strong competition in Australia from other processors like Saputo. In its latest Global Dairy Update, Fonterra says its season-to-date collection to April 2021 is down 1.1% compared to last year. Farmers seeking a better milk price have been dropping processors and signing directly with Coles. Coles launched its direct-sourcing model in Victoria and New South Wales

in 2019. The model was extended to South Australia and Western Australia in 2020. Under the model, Coles offers a farmgate price to farmers, and pays dairy processors to process and bottle the milk. Under a processing agreement, Bega Dairy & Drinks will process and bottle milk sourced from Tasmanian farmers at their plant in Hobart to produce Coles Brand fresh white milk. It is now recruiting farmers to supply milk for Coles branded cheese. Coles says it has over 60 Australian dairy farms supplying milk under direct contracting arrangements. By sourcing directly for Coles Brand Cheese it expects to lift this number to around 100 Australian farms across the country supplying around 400 million litres of milk every year. Dairy farmer Peter Delahunty from Alvie in Western Victoria said that his three-year supply contract with Coles, signed in July 2020, was a game-changer for his dairy farm. “Having direct access to the Coles Dairy Team was important to my business as it gives true meaning to ‘working as a team’,” he says. “The financial certainty of a threeyear price and the day-to-day support of my farm has been the best I have experienced in my 46-year farming career.” Charlotte Rhodes, Coles general manager for dairy, says the success of direct sourcing for Coles Brand milk and positive feedback from dairy farmers had prompted the expansion of the model to Coles Brand Australian cheese. “Every time we have been to market looking to buy milk directly from farmers the response has been very positive, and we really value the relationships we have been able to build with our dairy farmer suppliers,” she said. “Extending our direct-sourcing model is part of our commitment to investing in a sustainable future for the Australian dairy sector, and our farmers have told us that it has made a real difference for their businesses.”

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DAIRY NEWS JUNE 8, 2021

14 // NEWS

Wellbeing events eye young farmers A NEW initiative is being funded by the Ministry for Primary Industries (MPI) to help improve the wellbeing of young people in rural communities. NZ Young Farmers has been allocated $40,000 to organise events in seven regional areas featuring guest speakers, activities, and skill-building sessions. “It’s important we continue our efforts to give people the skills to look after their wellbeing, manage stress and to recognise and openly talk about mental health,” says MPI’s director of rural communities and farming support Nick Story. NZ Young Farmers has a network of 70 clubs, which provide an opportunity for young people to make friends, network, upskill and socialise. One of the wellbeing events being held is a six-

by young Taranaki dairy farmer Kane Brisco, who’s well-known for founding the Farm Fit bootcamp. Other events are planned for Kaihu, Opuawhanga, Waiharara, Hamilton, Gisborne, Pahiatua, Lincoln, Timaru, and Gore. “The mental and physical wellbeing of young people is a big focus of our organisation and essential for the ongoing viability of many rural communities,”

says NZ Young Farmers chief executive Lynda Coppersmith. “This programme will increase awareness of the wellbeing support and resources available, and give young people the confidence to access them.” Provisional figures released by the Chief Coroner show 654 people died in New Zealand from suicide in 2019-20, and almost one third (205 people) were under the

age of 30. The events will harness the resources and expertise of existing wellbeing support providers, such as Farmstrong, Rural Support Trusts, and the award-winning Good Yarn workshops. MPI was allocated $1.1 million last year to deliver extra wellbeing support services over three years to complement those provided by Rural Support Trusts.

Kate Stewart and Robyn Engels have organised the Longburn bootcamp.

week bootcamp at Longburn in the Manawatū starting June 8. “Winter is a great time for a bootcamp to help build farmers’ fit-

ness ahead of calving and lambing, which is a busy time on-farm. It also gives us an opportunity to share wellbeing tips, such as nutritional advice,

to help our rural community get through,” said NZ Young Farmers member Kate Stewart. The training programme is being overseen

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more milk to new-born calves. Chris Collier, Probiotic Revolution, says this is based on research that shows that calves grown faster in the first few weeks of their life lay down better tissue in the developing udder, and milk better as heifers. In a University of Illinois study, by initially growing calves faster, heifer milk and protein production increased by 10%. Collier says Probiotic Revolution uses specific probiotics in Calf Xtreme that helps avoid nutritional scours and other health issues at the high rates of milk. Consequently calves just grow faster and with the product spilling into the rumen of calves, farmers are amazed at how much meal, hay or grass they eat after a couple of weeks, says Collier. He says that one farmer who fed his calves 8 litres once a day, ran his heifers while out grazing with calves from

two other family farms. They all had the same genetic base but at each weighing, the 100 Calf Xtreme calves were a month ahead in liveweights compared with the other calves. There were no empties in these 100 calves, but 10 empties in the 150 calves not reared on the product. Sick calves are also a nightmare and farmers know that when a calf is checked at a young age it does not perform well as a heifer. “In times of stress or a disease challenge such as rotavirus we just double the dose rate of Calf Xtreme,” says Collier. Crypto is more challenging and in addition to quadrupling the dose rate other control measures are needed. For coccidiosis a coccidiostat is needed. Collier claims around 70,000 calves were reared on Probiotic Revolution’s products last year and demand is expected to increase this year.

DAIRY NEWS JUNE 8, 2021

AGRIBUSINESS // 15

Protect people from others’ mistakes

“Growing up, I learned biggest risks from my SAM HODSELL, the a lot from seeing the mea- point of view,” says Sam. 2021 Otago-Southland “Employing extra staff sures my dad put in place FMG Young Farmer of means more of the workon farm. the Year, says it’s critical “We have a health and load is shared. We talk to identify and manage with people about how safety plan, training regworkplace risks on their they are feeling, and if ister and incident report. farm – but he and his We used online templates they are tired, I will say go family are also actively putting tangible measures provided by farming industry organisations to in place to help protect draw those up and it was people if someone does pretty straightforward. make a mistake. We sat down as a team “For instance, we’ve and identified our risks recently purchased and had big red buoys screwed and talked about how we could manage, minimise onto all our irrigation or eliminate them. pipes,” says Sam, who “Identifying and man50/50 sharemilks with his partner Jenna for his par- aging risk is also ongoing. For instance, one of ents Craig and Gaewyn our critical risks is workon the 250 hectare family farm at Taramoa in South- ing with large animals. We provide training for land. our people, to make sure “That was learning they have the skills to from a near miss and we safely do all aspects of wanted to make sure the their work. With livepipes were highly visistock that includes trainble and they certainly are by PMH ing people to work in safe now. We have also benways around animals and efited from productivity how to read an anigains due to Three saving time the alphabet. letters also have mal’s behaviour. Howlooking for lost pipes.” nes, and build the words in the grid ever, we recognise that it Sam sourced the d, you will be able to solve the takes a long time to pick buoys from New Zealand that up.” CeeMee company, which Fatigue has also been sells innovative farming 9 safety 10 solutions. identified The HodLETTER VALUES as a critical risk sells are now also looking on farm and over the past 13 1 2 3 4 5 6 7 8 9 10 at installing rolloverI crush two years, Sam and Jenna S on quad bikes. have increased their staff 13 protection 6 11 12 13 14 15 16 17 18 19 20 numbers to help address “My parents have F 3 been very aware that – with resulting benalways efits. about health and safety,” 3 7 “Fatigue is one of the says Sam.

home and get some rest. I know if I’m feeling tired or under the weather, I don’t do the best job and there’s a risk of taking shortcuts. I don’t want anyone working if they are feeling like that.”

Sam Hodsell 50/50 sharemilks with his partner Jenna for his parents Craig and Gaewyn on the 250 hectare family farm at Taramoa in Southland.

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DAIRY NEWS JUNE 8, 2021

16 // OPINION RUMINATING

EDITORIAL

Farmers need help

MILKING IT... Surrounded by fools

Knife to the heart

IF YOU ever needed proof that we’re surrounded by idiots, an event that occurred during the weekend of the Canterbury floods provided it. While Cantabs were bracing for 1-in-100 year rain, floods and all the ensuing damage, risk to life and limb and general havoc, a group of lycrawearing, entitled Aucklanders were wrapped up in their own – far more important - little drama. The government had promised them a cycleway on the Harbour Bridge and then reneged on that promise (sounds familiar). “But we want it!” they cried, angrily stamping their feet and ringing their bicycle bells. So the cycle babies, now demanding that two lanes of the bridge be given over to bikes, barged through a rather feeble police road block and rode en-masse onto the busy bridge, posting smug photos to their social media accounts as they went. Meanwhile, in Canterbury…

TVNZ’S RECENT ‘Q&A’ programme had a lively discussion on methane emissions and how dairy farmers are doing their bit to reduce the sector’s emissions. Judging by comments on twitter, it is clear farmers feel ambushed by TVNZ: the ‘expert’ panel included Maori activist Mike Smith with an antifarming agenda; and there were no farmers in the audience, with most questions thrown to the panel coming from left-leaning environmentalists. While DairyNZ chief executive Tim Mackle did a sterling job as the sole crusader for the dairy sector, his comments drew a negative reaction from the biased audience when saying that farmers are hard working families that care for the environment. Kind of like a knife to the heart, is how one farmer described it on twitter.

Milk is healthy PROMOTERS OF ‘healthy’ plant-based ‘milk’ take note! Regular consumption of cow milk is not associated with increased levels of cholesterol, according to new research. A study published in the International Journal of Obesity looked at large population studies with nearly two million participants and found that people who regularly drank high amounts of milk had lower levels of both good and bad cholesterol, although their BMI levels were higher than non-milk drinkers. Further analysis of other large studies also suggests that those who regularly consumed milk had a 14% lower risk of coronary heart disease. The team of researchers took a genetic approach to milk consumption by looking at a variation in the lactase gene associated with digestion of milk sugars known as lactose. The study identified that having the genetic variation where people can digest lactose was a good way for identifying people who consumed higher levels of milk.

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Nestle’s admission IT IS the biggest dairy company in the world but Nestle is under pressure after admitting that more than 60% of its biggest selling products are not exactly healthy. In an internal presentation for its top executives – seen and reported on by the Financial Times – the world’s largest food company said the majority of its popular products don’t meet “a recognised definition of health”. The Times reported that the assessment applied to about half of Nestle’s overall portfolio – or about half of its near €85bn annual revenue. Reports point to predictable areas like confectionery, ice cream and pizzas as the problems for Nestle, leading some analysts to suggest an overhaul of the group’s product portfolio and even an exit from mainstream confectionery.

IT TOOK Methven farmers Laurence and Philly Rooney a few days before they could access their flood-ravaged farm. And when they finally reached their farm, they found that the Ashburton River had carved a new path through the property where five generations have lived and worked. Their winter feed and fences were gone. Now the clean up began. This is one of the many heartbreaking stories coming out of Canterbury where floods wreaked havoc over a week ago. Receding floodwaters revealed piled-up debris, damage to farm tracks and fences, and waterlogged winter feed, buildings and machinery. The message from DairyNZ to Canterbury farmers is: look out for each other and access support agencies for any assistance. Good advance warning did enable many farmers to be prepared. But the floods arrived as many farmers were shifting machinery and stock – on Moving Day, June 1. Some farms remain waterlogged and the focus now is to help these farmers through the recovery phase. The initial focus will be on livestock welfare, reviewing and securing necessary winter feed, and repairing on-farm infrastructure. Farmers are being asked to review their feed supply and how they can manage that, if there is a shortage. DairyNZ and primary sector organisations are working with farmers to support them through the recovery. It acknowledges that there will be challenges for some farmers, particularly around feed availability, animal care and damage to farms. For affected farms, stress will be an issue that may increase over the coming week. Affected farmers should be encouraged to talk to friends and family and the Rural Support Trust or DairyNZ if they need any assistance. Prime Minister Jacinda Ardern flew over the flood-ravaged areas last week. Her chopper landed on the farm of Federated Farmers executive Chris Allen to have a first-hand look at damage. The Government has allocated $500,000 as its first show of support for farmers. The money will be used for recovery grants, to enable the region’s three Rural Support Trusts to provide extra help to farmers, and for other flood assistance where needed. The Government is continuing to assess whether further support is required as the full extent of the flooding becomes clearer. It acknowledges that 400mm of rain has fallen on parts of the region. No doubt, the $500,000 from the Government is a drop in the ocean – more assistance will be required, and quickly.

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DAIRY NEWS JUNE 8, 2021

GameChanger

OPINION // 17

Farmers are central to our economy, and that’s never been clearer than during the pandemic.

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animal protein, so do concerns about animal welfare and how to find more sustainable and productive ways to raise healthy animals. Land use Land is simultaneously a source and a sink of CO₂. Land degradation in agriculture systems can be addressed through sustainable land management, with an ecological and socioeconomic focus, with co-benefits for climate change adaptation. Climate-related risks pose a threat to economies around the world. Extreme events— fires, freezes, floods, high winds—are occurring with unprecedented frequency and already reshaping the world’s socioeconomic outlook. Identifying what matters most Our success depends on understanding and responding to the changing world in which we operate. We need to identify the environmental, social, economic and governance issues that are perceived as being most important to our stakeholders to establish a broad view of current sustainability issues. Engaging stakeholders Many of our stakeholders have promoted a shift towards greater environmental efficiencies in the agricultural sectors, and accordingly regulatory requirements for greenhouse gas emissions, fuel use and resource efficiency will intensify in the future. Climate risk is expected to have a significant impact on agriculture, as increased severe weather events will affect farmer livelihood and food security. Additionally, stakeholders mentioned the transition towards sustainable farming practices to reduce environmental impact. The agricultural industries should focus on research and development partnerships to keep pace with innovation so that digital technology can be leveraged to help guarantee food security. In the farming scenario, arguably the person who is in the most appropriate position to determine what their best practicable option is has to be the farmer. • Andy Loader is co-chairman of Primary Land Users Group (P.L.U.G)

‘‘

Q: What does sustainability mean? A: Achieving economic, social, and environmental performance in today’s dynamic business climate requires a sustainability strategy that is executed with discipline year after year. This starts with farmers reducing their emissions, preserving agricultural soils, and ensuring the welfare of farm animals, which are the areas where they are the ones that have the most opportunity to make the biggest impact. Within our farm operations, protecting the health and safety of any employees and managing our farming operations to reduce our environmental impact are key priorities. Together, these actions establish us as trusted partners to both the communities we serve and the customers we supply. Q: How does our purpose and vision strengthen our commitment to sustainability? A: As the world’s population rapidly grows towards 10 billion people by 2050, feeding that population in a sustainable way is a challenge and opportunity for our industry. Our purpose is to deliver “farm-focused solutions to sustainably feed our world” and our vision is to be a “trusted partner to both the communities we serve and the customers we supply”. Together, these statements reinforce our commitment to innovation and the evolution of agriculture solutions to help us produce more with less environmental impact. Today, perhaps more than ever, we need to share our values around sustainability which will allow us to protect and grow the global food supply. Living our purpose will help us promote our industry as one that creates an environment allows innovation and creativity in production whilst still addressing the most pressing environmental challenges. Q: How has COVID-19 shaped our thinking on sustainability? A: Farmers are central to our economy, and that’s never been

clearer than during the pandemic. Farmers around the world have been united in their shared commitment to protecting each other’s health and safety whilst also maintaining the world’s security of food supply to help in preventing the global health crisis from becoming a global hunger crisis. The pandemic has underlined the important role agriculture plays in society and the role that farmers play as employers, manufacturers and as important members of our communities. Farmers have a large role to play in sustainability, and their sustainability strategies will be the launch pad for focused creativity and innovation leading to the security of food supply in the years to come. Q: Where does agriculture have the greatest opportunity to reduce the impacts of climate change? A: Fundamentally, agriculture can be a tremendous force for good when it comes to climate change. Agricultural soils play a crucial role in both food security and climate change. Globally, soils can sequester a significant amount of carbon from the atmosphere if paired with the right farming solutions and practices. By developing the products and solutions for reducing global carbon emissions farmers are doing their part to mitigate climate change and to advance agriculture through sustainable best practice options. Urbanisation Fifty five percent of the world’s population currently lives in cities and this number is expected to keep growing to 68% by 2050. Concomitant with the increasing urbanisation is an increasing risk of labour shortages in rural areas. Changing consumer preferences Consumers continue to seek transparency in food production. Alongside this increasing demand for transparency there has also been a move throughout the developed world, to a much greater use of plant protein as opposed to the current levels of animal protein. Increasing focus on animal welfare As human standards of living rise around the globe, driving demand for

Tim Newton Ecklin, Victoria

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ANDY LOADER

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DAIRY NEWS JUNE 8, 2021

18 // MANAGEMENT

An eye on the future FONTERRA RECENTLY announced a

forecast milk price range for the coming season of $7.25 to $8.75 per kgMS, with a midpoint of $8.00 per kgMS. This makes the prospect of producing a lot of milk very tempting. In many cases, taking advantage of one of the few times when milk price reaches this kind of height simply makes sense. Those of us who have been around for a while can remember the last time that the milk price went high. While some farmers were able to capitialise on the high milk price by producing more milk economically, many farmers fed more feed, produced more milk, but made no extra money. What was the difference between those who made money and those who didn’t? There were three

main things that the more profitable farmers did that the others failed to do. They: Kept feed costs under control. There is a huge temptation to spend more money when you have more money. We tend to think that more is best. The farmers who made a lot of money during the last high payout were the ones who didn’t give into temptation of feeding a lot of high-cost feed (e.g. expensive meals or high cost protein feeds). They stuck to feeding low priced energy feeds like maize silage and PKE (which was a lot cheaper at the time than it is now). Cows can produce their body weight in milk solids in systems that feed pasture, maize silage and PKE, and farmers can keep their feed costs

They achieve post grazing residuals of between 1,500 and 1,700 kgDM/ha. ■■ They maintain an average pasture cover of between 2,100 and 2,400 kgDM/ha. ■■ They use supplements to make sure they don’t over graze or pug pastures. ■■ They fill feed deficits with the cheapest form of energy and keep cows in milk. Maize silage is still one the best feeds to have on hand in high payout years simply because if you need it, it is there to be used. Likewise, if for whatever reason you don’t need it, it can stay in the stack for when you do need it. • Ian Williams is a Pioneer forage specialist. Contact him at iwilliams@genetics.co.nz ■■

under control. Many farmers grew more maize silage on farm or a run-off. Farmers buying in feed kept costs under control by planning and contracting feed requirements early. They made sure they were not exposed to high spot prices that inevitably come when milk price rises. Farmers buying in maize silage placed early contracts with contract growers to ensure they had the feed they needed at a price which was agreeable to both parties.

The last time the milk price was this high, many farmers fed cows more feed, produced more milk but made no more money.

Didn’t give into temptation with other costs. Farmers who made high profits during the high payout tended to keep other costs under control. Animal health costs often soar when the payout is high. This is because the people who sell these inputs can be even more aggressive during high payout years, promising that product X, Y or Z will give cows the lift they need to produce

extra milk. While these products may work and production increases, they still may not be economic to feed. Likewise, more of a good thing doesn’t necessarily mean more profit. This is especially true for minerals. A recent AgFirst Waikato newsletter says, “We have seen many situations where the in-shed feeding mix is formulated to meet cow mineral requirements, but the farmer is adding addi-

tional minerals in some other form (e.g. through the feed-out wagon or pasture dusting). This adds cost and, in a few cases, can increase the risk of animal health issues.” Didn’t forget grass Some farmers feeding supplements take their eyes off good pasture management. Good pasture managers tend to make more profit by making sure that:

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MANAGEMENT // 19

Reducing winter grazing risks A SOUTHLAND farmer

believes careful planning is the key to mitigating potential risks of grazing livestock on fodder crops during the winter. Ewen and Diane Mathieson farm 860 cows and replacement stock at Longwood, west of Riverton. Ewen has 40 years of farming experience, including 12 years dairying. He uses winter grazing, where livestock progressively graze areas planted with fodder crops. Successful winter grazing is all about understanding the farm’s soils, planning ahead and managing crops well to keep the cows in top shape. “Winter grazing is a means of putting weight on the animals at a time of year when we aren’t growing a lot of feed. This is done by storing feed through the summer months and using it in the winter to get through. “Every farm has different challenges and opportunities. They are all unique, especially when it comes to rainfall, soil types and topography.” Develop an adverse weather plan Farmers need to have plans in place for extreme weather events and have enough feed to get them through. It is also very important to have good plans in place to transition on and off the various crops, he says. “If the weather is not good, more feed needs to be fed to help manage animals through the conditions. “We shift most mobs twice a day, this allows us to monitor animals closely and see any issues as they arise. We also use back fences to keep cows

off areas they have grazed. “This allows us to give animals access to these areas if conditions mean they cannot find a dry area to rest. We keep water sources with them so they have access to water all the time.” Paddock selection Successful cropping involves many factors, from selection of suitable paddocks and establishing the crops, to good grazing management. The Mathiesons carry out soil tests to assess overall nutrient trends. “Through this practice we have been able to greatly reduce the use of some nutrients as soil levels mean we don’t need to use so much,” he says. “It’s a consideration to choose paddocks away from waterways. If you don’t need to use paddocks around waterways, don’t. “If you do use paddocks adjacent to waterways you need a good five metre buffer to minimise any risk. “Create buffer areas around waterways or any area where there is runoff so you get some filtration. Be very strategic with your baleage placement.” Graze paddocks strategically To minimise soil erosion and run-off into waterways, paddocks should be grazed strategically. “The greater the slope, the greater the risk. There should be at least a five metre buffer for any slope. Grazing downhill can help slow down soil sediment loss. “If the gradient is too steep for grazing downhill, leave a buffer of 10 to 15 metres at the

bottom and graze across the slope, and then graze buffer areas when conditions are suitable. “It’s important to identify critical source areas. We are fencing these off more and more. “Critical source areas that have been cropped can be left until the end of winter before they’re grazed, when the weather is fine. They should be grazed last.” Grazing plan The Mathiesons are trialling a few different crops for grazing this year. “We have multi-species crops which are different from the conventional brassica type. We have a couple of paddocks with a larger percentage of baleage and are comparing the different systems to work out what will give the best outcomes for animals and soils. “We go through a paddock plan and a feeding plan with our team so everyone is aware of what we are trying to achieve. Our actions this year are documented to inform next year’s plan. “What we do today will effectively influence how we operate in the future.” Planning for the future “In the future, where we can reduce livestock numbers we will, while we won’t do anything detrimental to profit. We will be quite strategic about creating as much value as we can out of the animals we have on farm. This means we can run the farm with a lighter footprint so there is less impact on the environment. “As we move forward, we will have potentially phased out quite a bit of fodder beet and maybe not grow any at all, but

Ewen and Diane Mathieson say winter grazing is a means of putting weight on the animals at a time of year when they aren’t growing a lot of feed.

that will require quite a bit of change in our system. “As weather events become more adverse with climate change, we have to keep thinking about what the mitigations could be. We may create standoff pads, areas where animals can go and stand.

“The important thing to remember is, don’t be afraid to seek advice if you have concerns or there are things you don’t understand.” Assistance available for farmers Extra monitoring and a range of practical support is being rolled out to help farmers achieve imme-

diate improvements in intensive winter grazing practices. There are two hotlines for people who have concerns with winter grazing practices. 0800 FARMING is supported by industry and provides an opportunity for the community to give feedback. People can also call MPI’s

animal welfare hotline on 0800 00 83 33. DairyNZ and B+LNZ will be running a range of workshops around the country to support farmers this winter and industry groups have developed a joint checklist for those that can’t get to an event. @dairy_news facebook.com/dairynews

DAIRY NEWS JUNE 8, 2021

20 // ANIMAL HEALTH

Vets ready to help Fonterra farmers earn more cash THIS SEASON, up to 10 cents of

Fonterra suppliers’ milk payments will be determined by the farm’s sustainability credentials and milk quality. Four focus areas unlock the initial seven cents, which include having and implementing an Animal Wellbeing Plan that is developed with a veterinarian. Veterinary clinics are required to design a plan to capture the relevant information and create plans to improve and if the requisites change in the future they will need to adjust that plan accordingly. Vet clinics that are members of the WelFarm programme have it covered. “Our local vets are full of knowledge and experience,” Samantha Tennent, general manager of WelFarm Ltd says. “They’re one of the most trusted professionals in a farmer’s support network and given the current climate, with processors asking for more information and the consumer’s heightened

interest in how food is being produced, they are an asset to help guide and support our farmers.” WelFarm is a web-based platform that dairy veterinary clinics use to capture herd related data surrounding health and welfare. And now it has a Wellbeing Plan template that meets the Co-operative Difference requirements for animals. Farmers are able to signup for all or part of the WelFarm programme. “We want to keep it simple for farmers and their vets, we’ve highlighted the areas that they must complete and we’ve added some commentary to help them navigate as they are discussing the plan with farmers,” Tennent says. Wellbeing plans must cover topics under the five domains: nutrition, health, environment, behaviour, and mental state. The focus for animal welfare internationally has shifted from simply aiming to reduce negative experiences, to recognising the importance

Four focus areas unlock the initial 7c/kgMS payment, which include having and implementing an animal wellbeing plan developed with a veterinarian.

of increasing positive experiences. Cows need to live what is considered a good life and of course there is a close relationship between well-cared for cows and good milk production. “Farmers want to achieve the best results they can, and it’s important that the practices we use on farms are aligned with the expectations of our customers, consumers and communities. “Having that assurance, and being able to identify areas of opportunity

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are valuable benefits. But there’s also opportunities for farmers to utilise the information to their advantage. “If we have to do something, let’s get the most out of it, imagine if a farmer was able to prevent a cow’s death or a couple of lameness cases from regular monitoring and being proactive.” The full WelFarm programme goes above and beyond the minimum requirements but it can be utilised at various levels to suit the farmer and how they wish to utilise the informa-

tion with their veterinarian. And using a dedicated programme provides peace of mind knowing if Fonterra modifies their requirements in the future, WelFarm is an easy channel to ensure vets keep up to date. Reviewing plans annually provides opportunities to reflect and determine if efforts are paying off, and WelFarm reporting can support those reviews. It is not limited to vets too, anyone in the farmer’s support network can help them understand what their reporting is showing about their animal health and welfare management, where the opportunities lie and look at the trends as they’re trying to improve. “We know we have good farmers here in New Zealand. We know they are efficient, they’re striving to be sustainable and they have pride in how they care for our herds. “We want to continue our access to markets and have a competitive advantage.”

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DAIRY NEWS JUNE 8, 2021

ANIMAL HEALTH // 21

Global recognition for genetic work approach which has identified a number of genetic variants impacting the health and wellbeing of New Zealand dairy cows has been published in the prestigious scientific journal, Nature Genetics. Scientists from LIC have leveraged the herd improvement co-operative’s extensive animal database to pinpoint genes responsible for major losses in production, some of which were found to be due to previously unknown genetic disorders in dairy cows. The newly discovered genetic variants impact animal health and milk production to the tune of up to $10 million in lost production each year across the national dairy herd. LIC chief scientist Richard Spelman says these discoveries reinforce the importance of continued investment in gene discovery and genetic analysis technology to help farmers breed healthier, more efficient dairy herds. “By supporting farmers to identify and minimise the number of animals that are susceptible to particular ‘negative’ genes, we can breed cows that are more resilient, speed up the rate of genetic gain and help ensure the sustainability of New Zealand’s pastoral industries for years to come.” From Spring this year, all farmers using LIC’s GeneMark DNA parentage testing service will have their calves screened for six genetic variants that have a significant impact on animal health and milk production and be notified if any of them are affected. This information will be provided free of charge alongside parentage results so farmers can make an informed decision on whether to retain these animals in their herd. Although affected animals are rare, around 0.5% of calves born will be affected by one of these variants, Spelman

highlights the value this knowledge will deliver to farmers. “We’re excited to transform our investment in research and development into a simple convenient service for our farmer shareholders, one that could save millions in lost production. “Knowing what calves have these genetic variations will help ensure farmers rear only the healthiest, highest performing animals,” Spelman said. Traditionally the discovery of variants which cause genetic disorders has relied on farmers notifying LIC of affected animals before scientists can attempt to find the genetic cause. Spelman says LIC is now able to take a more proactive approach which will allow them to discover rare disorders that might not have obvious physical signs. “Our approach starts with identifying significant drops in milk production or liveweight which may give a clue the animal is impacted by some underlying genetic disorder. If further investigation confirms this is the case, we can leverage diagnostic tests to manage the variant frequency in the population.” Spelman says the publication of LIC’s research by Nature Genetics reinforces the farmer-owned co-op as a world leader in pastoral dairy genetics. “Nature Genetics publishes the very highest quality research in genetics globally, in animal and human research alike. We were delighted to hear they had accepted our research paper on the production variant discoveries, further validating the cutting edge genetic discovery work our R&D team is carrying out.” The discoveries were made possible by genetic mapping studies on LIC’s large DNA sequencing and animal production datasets, as well as funding received from MBIE’s Endeavour fund. “Our Next Genera-

tion Genomic Selection programme has enabled a detailed understanding of the effects of the variants identified and will enhance future discovery,

as data and methods continue to develop to identify new variants at lower frequencies in New Zealand dairy animals.” LIC is one of the big-

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LIC Chief Scientist Richard Spelman says these discoveries reinforce the importance of continued investment in gene discovery and genetic analysis technology.

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DAIRY NEWS JUNE 8, 2021

22 // SOUTH ISLAND DAIRY EVENT

Connect, discover and grow ANDREW SLATER

THE WORLD is an everchanging place and the dairy sector plays a key part in this.

The level and speed of change we are facing is unprecedented, and the days of holding back, pushing back and putting our heads in the sand are gone.

Our farming businesses have to evolve if we want to keep up with the changing climate and continue to survive and prosper. These challenges are

fundamental to the SIDE 2021 mission statement: “To equip farmers with knowledge, understanding, tools and motivation to lead an ever-evolving dairy sector with pride,

confidence and resilience”, and the theme for the 2021 SIDE conference, EVOLVE. The committee and I are proud to bring the event back to Canterbury

The Barenbrug NZ site at the 2019 SIDE gave farmers a chance to show off their putting skills.

in a revitalised format, at a fantastic new venue. I am fortunate to have a committed, passionate and extremely enthusiastic committee that has worked tirelessly to bring you this event. We’ve chosen speakers and workshops that will be thought-provoking, and crafted a format that encourages networking, conversations and a good few laughs along the way. We have constructed the event around four pillars: environment, business, people, and cows and grass. Our workshops are designed around three outcomes: connect (where we have come from), discover (new learning) and grow (take-home practical tools). SIDE2021 has a strong focus on interaction, with a lot more time allocated for ques-

tions and answers. BrightSIDE focuses on exposing the next generation of dairy farmers and business owners to SIDE and giving them some powerful tools and motivation to kickstart and grow their careers in this awesome industry. Our inspirational keynote speakers will set the scene for our workshop presenters to share their knowledge and leave you buzzing after every workshop. It is so exciting to have SIDE 2021 back in Canterbury, and I am thoroughly looking forward to spending two days with like-minded delegates and fellow farmers, learning how we can connect, discover, grow and ultimately EVOLVE, leading the world in what we do best! • Andrew Slater is chairman of the 2021 event committee.

FOR FARMERS, BY FARMERS THE FIRST farmer-led South Island Dairy Event was in 1999. Since then SIDE has alternated between Canterbury and Southland, with two events in Dunedin. After two years in the lower South Island, the SIDE team is excited to have the event back in Canterbury at the Ashburton Event Centre. Although SIDE is by farmers for farmers, it could not function without the valued partnership of DairyNZ, and ongoing support from gold sponsors ASB, Ravensdown, and Fonterra, and an array of silver sponsors.

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DAIRY NEWS JUNE 8, 2021

SIDE // 23

This year’s SIDE will give farmers the opportunity to see and hear leading research, technologies and farming systems.

SIDE heading to Ashburton FOR THE first time in its 23-year his- note speakers for the event, including psytory, the two-day South Island Dairy Event chiatrist and author Dr Ceri Evans, along with entrepreneur and inventor Logan (SIDE) is heading to Ashburton. Dairy farmers are being encouraged to Williams.” Evans will discuss how to be high perattend this year’s SIDE event, at Ashburton’s Events Centre, to take advantage of a forming under pressure, drawing from range of practical workshops offering solu- his work with sports teams including the All Blacks and the use of his red/blue tions they can apply on-farm. SIDE chairman Andrew Slater says it mind model. Williams will be sharing his journey to becoming an internationaims to support farmally acclaimed ing businesses to navserial inventor, igate their changing entrepreneur environment, someand scientist, thing highlighted by while providing the event’s theme ■■ June 22 -23 insights around ‘Evolve’. ■■ Ashbu rton Event Cen tr e upcoming sci“The sector has ■■ Registe r online at side ence and techcome a long way . org.nz nology. and our farmers ■■ Event run by farmer s, fo r A range of have a lot to be farmers. practical, innoproud of. But the ■■ Three keynote sp vative farmerand 16 worksho eakers level of change we ps ■■ This ye focused workshops are facing now is ar’s theme is ‘Evolve’ will offer farmers unprecedented, so take-home skills we need to focus around a variety of on the future and topics include cost keeping up with the changing control, getting calves off to a great start climate,” says Slater. “Gone are the days of sitting behind and preparing for a successful winter. The event also features BrightSIDE, your farm gate and continuing to do what you have always done. So much is chang- which farm assistants and 2IC’s are ing, so we’re all having to evolve, or we encouraged to attend. It includes workshops to boost career progression and risk being left behind.” This year’s SIDE will give farmers provides the opportunity to network with the opportunity to see and hear leading hundreds of dairy leaders who attend the research, technologies and farming sys- SIDE conference. Farmers are encouraged to register tems, to build a successful future and drive now for the event. For more information sector progression, says Slater. “We are lucky to have inspirational key- and to register, go to side.org.nz.

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DAIRY NEWS JUNE 8, 2021

24 // MACHINERY & PRODUCTS

Made in New Zealand

Creating believers

Made in New Zealand is a feature that looks at the wealth of design and manufacturing ability we have in New Zealand, making productive and cost-effective products for the agricultural sector. This week we take a closer look at FIL, catching up with GEA Farm Technologies NZ chief executive officer, Campbell Parker. Q- When was the company founded, by whom and why (was it to solve a problem or market a product)? The company was founded in 1978 at Mount Maunganui by Dave Hancox and Arthur Jordan, who manufactured and sold a coldwater dairy detergent called 30M, that offered farmers a lower cost approach to dairy hygiene. FIL experienced rapid growth from the mid 1990s supporting the expanding dairy industry of New Zealand, before being acquired by the GEA Group in 2010. We still maintain strong local leadership, deci-

sion making and local manufacturing, while our connection to GEA delivers advantages of global insight, support and the technology to develop new products. Q- Where are you located, is it single or multiple sites and how many people are employed? Our head office is in Mount Maunganui, where we have 18 on-site staff including a six-person management team, complemented by 19 area managers across the country. Q- What are your key products and which markets do they serve? The business started

with 20 products, centred around animal remedies and cleaning products for milking sheds. Today, we offer 55 products for dairy shed hygiene, teat care, tail paint, animal health and water quality. Our products are sold throughout NZ and exported to 11 countries, where we have become industry experts trusted by dairy farmers globally. Q- Are your products unique? If so, what are the four key benefits? If not unique, what are the four unique selling points? We offer the only teat care products on the market containing mānuka honey, while we

also manuBusinesses facture NZ’s MADE IN NZ A LOOK AT first and HOME-GROWN COMPANIES only chlorine dioxide teat spray range approved for goats. Our people are our key point of difference; with highly trained team of area managers offering unmatched service onfarm. Their role includes training on chemical safety, mixing & dilution rates, proper teat spray application & plant wash procedures. We also undertake plant health checks to ensure equipment is working properly & chemical is being effec-

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FIL head office in Mt Maunganui.

tively distributed. Bulk milk testing helps uncover specific pathogens present in the herd & develop a comprehensive udder health programme based on facts. Our business is not just about selling a drum of chemicals; for us it’s about taking the time to really understand our farmers, then to develop tailored solutions to optimise their farm’s performance. The fact that we are NZ-based and can develop products to suit local conditions, using our own in-house chemist, is a huge advantage. Q- Looking at an everevolving market, what changes have you made recently, or what will you have to do in future? We continue to develop new products to meet the changing needs, like Di-oxishield, our unique two-component teat spray specifically formulated to improve the performance of dairy goats. We have made a considerable investment in the replacement of process vessels and pipelines at our manufacturing site to comply with the latest Hazardous Substance, Seismic and Worksafe regulations.

We are working closely with industry partners to add value, such as diagnostics for pathogens to help farmers understand the cause of mastitis or working specifically with the Goat Co-op to create a new product. Q- What has been the company’s greatest success since its formation? Our success has been built around always striving to remain relevant to farmers, a continued focus on quality and innovation and of course, strong brand recognition with our bright yellow drums. Q- In contrast, what has been the biggest “Oh Bugger” moment or the steepest learning curve? At 11.06am on the 5th October 2007, two incompatible substances were mixed causing a large explosion and fire at our previous production site in Mount Maunganui, blowing FIL workers to the ground and causing significant damage to the building. Thankfully, there were no serious injuries to staff, but we moved quickly to review and change that product’s formulation to remove the contributory chemical, while also making sure we had a much greater ongoing focus on Health &

Safety practices. Q- If you were approached by someone looking to start a business, what would be your three key pieces of advice? My best advice would be to employ good people, adapt to the constantly changing needs of the industry and go beyond just offering a product, by delivering the best levels of service and support in the industry. It is also important to have staff on the ground who can identify gaps in the market and potential opportunities and always strive for quality and excellence. Q- Where do you see the company in the next three, five and ten years. What changes do you foresee to keep relevant and grow your business? We will continue to focus on mastitis prevention and reducing antibiotic usage to help farmers improve farm profitability. We will utilise the expertise and knowledge of our GEA dairy sector colleagues from around the world to bring best practice and techniques to New Zealand farmers as our industry continues to evolve. At the same time, we will continue growing our market share and creating more ‘FIL believers’.

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DAIRY NEWS JUNE 8, 2021

MACHINERY & PRODUCTS // 25

A price saving proposition MARK DANIEL markd@ruralnews.co.nz

A BIT like Vegemite, the first impression raised when you encounter a Mahindra Pik Up is love or hate – with one motoring journalist saying it had looks “only a mother could love.” Getting past that first impression, that goes on to reveal that the interior is never going to win any prizes for style, it looks like the mechanicals are very well sorted, which is reassuring if you’re considering dipping your toe in the budget end of the burgeoning ute market. Mahindra’s own mHawk 2.2 litre, four-cylinder turbo diesel pumps out a relatively modest 103kW/320Nm, that combines with a six-speed manual gearbox to push it along quite cheerfully. While manual transmissions appear to be a disappearing breed, this one changes as slickly as any top end brand, while the ratios are progressive and keep things in the “sweet spot “of around 1,800rpm at legal road speeds. For those looking to explore beyond the tar seal, the 4WD versions are fitted with a Borg Warner electrically-shifted transfer case that made it very

capable when we ventured into some soggy Waikato paddocks in late April. Offered in single cab 2WD or 4WD or as a double cab 4WD, all with rear low-level trays, the company can also supply a single cab with a much deeper well-side body, offering acres of spaces for an extra $1,000. Out on the open road, the Pik Up drives with very good manners, with precise, wellweighted steering, along with a torquey motor that hangs on well down below 1,500rpm before the gearbox needs to be stirred. The independent suspension at each corner travels well over any road imperfections and makes for a comfortable ride on more serious off-road terrain. On the safety front, whilst not up there with the latest suites, the mix includes dual airbags, crash protection zones, ESP and ABS. Tech is taken care of with the likes of central locking a noisy alarm and reverse camera on the S10 version. Payload for the rear tray is rated up to 1,035kg, combined with rear towing capacity of 2,500kg, brought to a stop by a front-end disc and rear drum set-up.

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1.99% FINANCE ˜

CONTACT YOUR LOCAL MASSEY FERGUSON DEALER TODAY *Images are for illustrative purposes. All offers end 30th June 2021, while stocks last. Finance with an interest rate of ^0% p.a., º0.99% p.a., ~1.99% p.a. available on Hire Purchase agreement based on minimum 30% deposit, the GST component repaid after 4 months and monthly repayments in arrears over a 36 month term. Fees and lending conditions apply to approved GST number holders who use the equipment for business purposes. Finance is approved by AGCO Finance Limited. GST number 88-831-861. Contact your local Massey Ferguson for full details.

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Ph 0800 542 542 www.regiscoatings.co.nz

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MASSEYFERGUSON.CO.NZ | FREECALL 0800 825 872

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DAIRY NEWS JUNE 8, 2021

26 // MACHINERY & PRODUCTS

The Major Swift Roller Mower is designed for fine turf applications including parklands, sports grounds and roadway maintenance, engineered to deliver a superior finish.

Major deal for AgriQuip MARK DANIEL markd@ruralnews.co.nz

NEW

PLYMOUTH-BASED

AgriQuip has been appointed as the exclusive importer and distributor of the Major Equipment brand, with the aim of distributing a selection of products from the company’s range of grass-

cutting equipment. Mark Hamilton of AgriQuip says, “Major has a trusted reputation around the world for high quality, durable machines, particularly in the design and engineering of their grass-cutting ranges. Our customers are always looking for hard-working machinery to suit New Zealand conditions and the Major products fit the bill.”

AgriQuip will stock the Major Cyclone Mower, a hybrid machine combining the best features of batwing and flail mowers, available in 2m to 6.3m working widths. The rotary cutter delivers the same shredding capabilities as a flail mower, but with only half the fuel consumption and power requirements. The Cyclone is said to be ideal for grassland maintenance, crop stub-

ble shredding and orchard floor management, as well as scrubland control and land clearance. The Major Swift Roller Mower is designed for fine turf applications including parklands, sports grounds and roadway maintenance, engineered to deliver a superior finish. A geardriven driveline eliminates the issues associated with belt-driven machines,

while full-width rollers follow ground contours offering precise height control and eliminating scalping. Available in linkage mounted or trailed configurations, the Swift Roller Mowers are available in working widths from 1.9m to 7.3m. www.agriquip.co.nz @dairy_news facebook.com/dairynews

Hansen’s new Easy Fit ID range of compression fittings.

EASY FIT ID GOES WITH THE FLOW HANSEN PRODUCTS has released

the new Easy Fit ID range of compression fittings. Designed to fit LDPE and HDPE poly water pipe from 15 to 40mm diameter and 15 to 50mm sizes respectively, the fittings can also be used for MDPE in sections from 15 to 110mm, using a conversion kit. High pressure rated to 16 bar /235psi for the 15 to 50mm sizes, the fittings are manufactured in New Zealand using high-quality, ‘virgin’ polypropylene, that is said to offer exceptional resistance to

weather, termite, fungi and bacteria. The construction of the fittings sees high-quality threads for dependable high-pressure connections, a pre-lubricated seal assembly that aids insertion and prevents leaks and easy-grip locking nuts to establish a secure connection. Fully compatible with the wider range of Hansen products, the fittings are approved by the Water Research Council for use with potable (drinking) water. Visit Fieldays Site E10 www.hansenproducts.com

WELL INSULATED.

GOOD CALL. At FMG, we know that over a quarter of all our milk claims are due to chiller failure. It’s this kind of specialised rural knowledge that allows us to pass on valuable advice to farmers. Advice like recommending dairy farmers insulate their milk vats to protect them from heat gain and reduce stress on the chiller system during early summer. We also advise things like checking milk is entering the vat at the required temperature, or that you alter milking times where you can. At the end of the day, if we can help you avoid loss through chiller failure it reduces stress, lost production and downtime. So why not get in touch with FMG to see how we can help you make some good calls on your farm. Call us on 0800 366 466, or go to fmg.co.nz

We’re here for the good of the country. FMG0915DNFP_W

Together, Creating the Be Soil and Feed o

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