Dairy News 22 June 2021 by Rural News Group

Anger over Govt’s pay directive. PAGE 3 MCNEE TO SIGN OFF

LIC boss leaving in November PAGE 14

JUNE 22, 2021 ISSUE 473 // www.dairynews.co.nz

TIME TO TRY OUT SUPERIOR PASTURES Modern cocksfoot and fescues do better in extreme summers than ryegrass, says Whangarei Heads farmer Murray Jagger . PAGE 5

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DAIRY NEWS JUNE 22, 2021

NEWS // 3

Govt’s farm pay rate directive irks farmers “We have a long hard road ahead and I am going to keep the pressure on the Government till they start to listen and recognise they are creating all the issues we are currently having.”

SUDESH KISSUN sudeshk@ruralnews.co.nz

EV policy to hit farmer pockets. PG.13

Being green and profitable. PG.21

Treating effluent while sun shines. PG.27

NEWS ��3-16 AGRIBUSINESS ��17 OPINION ��18-19 MANAGEMENT �� 20-21 ANIMAL HEALTH �� 22 MACHINERY & PRODUCTS �� 24 EFFLUENT & WATER �� 25-31

A GOVERNMENT directive for farmers to pay new overseas workers higher rates has been slammed. While farmers welcome the Government’s decision to issue border class exemptions for another 200 dairy workers, the increase in pay levels is causing anger. Farmers employing these extra workers must pay them $92,000 per annum or 1.75 times the current median wage for an assistant dairy farm manager. Those employed as herd manager must be paid $79,500/year which is 1.5 times the current median wage for dairy herd manager roles. Federated Farmers Southland sharemilker chair Jason Herrick told Dairy News that increases in pay levels is his biggest issue. “Setting those levels for junior staff and senior staff creates a whole new set of problems with current staff,” Herrick says. “Now they will feel hard done by, so to make things smooth sailing we now have to increase the wages of our current staff to be seen to be dealing with pay equality. “With the current payout that’s all very well and good, but is the current Government guaranteeing the payout to stay there? “If not, what happens when payout drops to $5, which is where most farms expenses are sitting?” Herrick believes this is just

Southland sharemilker Jason Herrick says the Government is again giving farmers “the middle finger”.

another move by the Government to continue giving farmers “the middle finger”. “Most businesses will fail in the future if we see payouts drop and current pay levels keep heading in that direction, just to encourage us to employ New Zealanders that just are not there to work on farms. “We have a long hard road ahead and I am going to keep the pressure on the Government till they start to listen and recognise they are creating all the issues we are currently having.”

Agriculture Minister Damien O’Connor says it is clear from conversations with the dairy sector that it is facing workforce pressures. “These border exceptions will go a long way towards relieving those pressures,” he says. The exceptions will allow up to 150 dairy farm workers in management roles on farms and up to 50 workers in dairy assistant roles, along with their partners and dependent children. At the same time O’Connor has told sector leaders to ensure there is

a strong incentive for New Zealanders to take up entry level roles and develop careers in dairying. “The Government and food and fibres sector have been working hard to mitigate worker shortages by training and upskilling New Zealanders, but we know that takes time. This announcement recognises the immediate need for additional expertise to come through our borders. “Dairy managers have specialist skills developed over many years, which we can’t replicate overnight. With the new dairy season kicking off, migrant dairy farm workers will supplement the domestic workforce and provide critical support.” Herrick says the extra 200 workers is a token gesture from the Government. It won’t even make a small dent in the situations vacant market, he says. “We need over 1,000 in Southland alone to start getting close to relieving any sort of pressure.”

DAIRY NEWS JUNE 22, 2021

4 // NEWS

Primary exports soaring – report PETER BURKE peterb@ruralnews.co.nz

REVENUE FROM primary exports is predicted to reach a record high of

$49.6 billion in the next 12 months – all being equal. The latest Ministry of Primary Industries (MPI) Situation and Outlook Report for Primary Industries says this is likely

to rise to $53.1 billion by 2025, but in the present Covid-19 environment the word ‘depends’ should also be highlighted. Released last week at the National Fieldays

in Hamilton, the report notes that export returns in the 2021-21 season have suffered as a result of the pandemic with the traditional big ticket earners of export dollars - dairy and meat - down on the previous year. Only horticulture and forestry made any appreciable gains with consumer demand for wine and fruit strengthening and demand by China for logs the same. For dairy the 2020-21 season was the first full season to be hit by the pandemic and it’s not surprising that revenue from dairy took a bit of tumble on the previous season being down by 5.4% to $19 billion in the year ending June 2021. It has been a hard season with disruptions to supply chains and considerable global commodity price volatility. But there are good trends with dairy commodity prices lifting in recent months. On the home front, favourable weather in most dairy regions in the

country saw good pasture growth and overall milk production in New Zealand for the 20/21 season is expected increase by 1.9% on the previous year to a record high of 1,933 million kgMS. The report describes these results as outstanding given that cow numbers continued to decline – now 4.83 million. In line with this trend MPI believes there will be a small ongoing decrease in the amount of land used for dairy farming. It says there have been next to no dairy conversions in the past two years and some dairy land is going into horticulture – avocados and kiwifruit – and

The latest Ministry of Primary Industries (MPI) Situation and Outlook Report for Primary Industries predicts that primary exports could reach a record high of $49.6 billion in the next 12 months.

some into lifestyle blocks. But despite these factors, MPI is forecasting milk solids production for the coming season to rise marginally due to better cow genetics and better farm management practices. In essence, efficiencies on farm are showing up in the statistics. Although there have been some negative perceptions about China this country remains the primary destination for our dairy products – taking

close to 40% of these. What’s more the strength or otherwise of the Chinese market virtually dictates the farmgate milk price. Increased demand by China for our dairy products, says the report, is driven by several factors including their consumers seeking healthy products of which dairy is one. There are also other internal factors in China which have led to that country taking more of our exports. But MPI warns that the long term goal of China is greater self-sufficiency in food and over time that may impact on our trade there. Overall the report paints a positive outlook for the future, but in a Covid environment certainty is not a word one would use.

PRAISE FOR DAIRY THE DIRECTOR-general of MPI has praised the dairy industry saying its performance in the past year has been tremendous. Speaking to Dairy News from the Fieldays, Ray Smith noted the sector produced more milk per cow than it did previously and that was outstanding given that livestock numbers are down. “Dairy has come though this amazingly well and you will see that growth continuing,” he says. Smith says the past 18

months have been challenging and stressful for everyone involved in the primary sector – both in government agencies and the private sector. He says Covid has thrown up a whole new set of challenges especially around labour and logistics. His main observation at Fieldays was that people were happy to get away from their day to day business and there was a good vibe amongst farmers and sector leaders.

“We gave a presentation on our programme – Fit for a Better World – and this was well attended and people came away happy that we as a sector had a plan to lift growth, sustainability and attract more NZers to work in the primary sector. Everyone was positive about the fact that we were working to lift all sectors and not trade anyone down,” he says. Smith says people realised that in these difficult times they were not alone.

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DAIRY NEWS JUNE 22, 2021

NEWS // 5

Time to experiment alternative pastures DOWN THE WRONG RABBIT HOLE?

SUDESH KISSUN sudeshk@ruralnews.co.nz

MURRAY JAGGER says for the last 40-50 years as farmers, they have complained about lack of perennial ryegrass resistance. “Plant breeders have bred aggressive, high yielding and late flowering perennial ryegrass plants and farmers have responded to that by increasing the farm stocking rates to eat the more aggressive plant. “But the perennial ryegrass plant is still a perennial ryegrass plant with the same root structure and growth characteristics. It is also still not resistant to survival [challenges], so we inflict it with an endophyte which makes it resistant

NORTHLAND FARMER Murray Jagger

to some insects but still not resilient in some environments. “So, have we been going down the wrong rabbit hole for 40 years trying to make perennial ryegrass more resistant when we should have been focused on pasture plants that are resilient and regenerative?” He says all this time farmers have had resilient pastures in the tool box but only now we are seeing the true productive, environmental and economic value of them. According to Jagger, there should be a greater focus on current cocksfoot and fescue pastures.

says it’s time to focus on alternative pastures that can deliver better milk and beef yield. The days of relying of perennial ryegrass should be a thing of the past. Instead he suggests new cultivars of tall fescue and cocksfoot, as supplementing natural sub-tropical pasture kikuyu for Murray Jagger wants farmers to unlearn old more extreme summers in systems on pasture management. Northland and Waikato. Jagger spoke at the ryegrass production in the extra pressure on plant best rest and survivabilseem to be farmers’ best rainfall between 650– recent Northland Dairy population during times ity is achieved from these same environment. option. 1100mm per annum. Development Trust of climatic stress, it can Jagger says they also “These modern variet- resilient pastures.” Summer cropping, in (NDDT) field day in Darbe mitigated by focused have an animal grazing Jagger also points out ies have root structures shed meal feeding, Italgaville about his expepreference over perennial farm management.” that the positive effects by PMH and mass to mitigate the ian ryegrass sowing and rience with alternative There are also environryegrass pastures mainly of personal wellbeing of mulching are all practices seasonality effect we are resilient pasture species. mental benefits. due to the increased palthose farming in areas of experiencing and have used for a sustainable On his 550ha farm at Each number in the grid represents a letter of the alphabet. Three letters have There is also an added atability of the modern climatic pressures should the ability to be resilient system. However, perenWhangarei Heads, Murray already been given. Start by filling in these ones, and build the words in the grid value of an increase in the varieties. not be underestimated. through dry summers.” nial ryegrass pastures and his wife Helen run from there. When you have completed the grid, you will be able to solve the “This increase in palat- ratio of clover present in Resilient pastures have Jagger wants farmers have limited persistence 650 cows on 220ha dairy coded message. ability converts directly to the cocksfoot and fescue the ability to produce to “unlearn old systems”. and are no longer a focus platform. The remaining increased milk production pasture because of the valuable feed in times of Farmers who have tried 330ha is used for beef and as more resilient pasture 1 2 3 3 4 5 6 7 2 8 9 LETTER climatic stress and reduce and weight gain,” he says. slower establishment of old 10 varieties and have VALUES varieties are grown on dairy support. the sward. This increase an increase experienced the1 negative farm. 10 “The identification 4 11 4 12 5 13 2 3 the 4 pressures 5 6 on both 7 8 9 “Although 10 in legume effect creates in palatability leads to farm staff and livestock. management traits need Jagger notes that and selection of new culI S 14tivars4 of tall 5 fescue and 4 15 Northland 15 8 and 1 some 16 2 13to try 6 again. Modern cocksfoot and 11 12 13 14 15 16 17 18 19 20 fescue F resilient pastures “Farm management Waikato regions are not cocksfoot have been 7 3 7 17 3 8 3 also exceed energy and practices must adapt to always conducive for ryegame changers toward 16the replacement 7 2 8 of peren8 18 grass 7 to persist 10 without 2 8 3be more 7 vigilant, dynamic dry matter production compared with perennial and fluid to ensure the seedling recruitment. nial ryegrass in our farmThe P&Pd Multi-Height Service Platform is a 13He says while 2 16 there are ing system7 and I would height adjustable, brake-wheeled a number of management suggest the future with 8 17 16 2 15 7 2 13 15 7 16 8 work platform that allows an operator tools and varying herb, a changing climate,” he (vet, AB technician, milker...) to work safely plant and crop varieties says. 9 10 11 19 with an animal, elevated to its height, from available to make pastures Jagger’s farm is a by PMH the milking shed pit floor.” 7kikuyu 12 dominant 20 7 summer 3 16 resilient 4 11 the11modern 7 16 8 more cocksfoot and fescues dry farm with varying

Grey Power CodeWord No. 18 (December 19)

a greater natural nitrogen fixing effect reducing reliance on application of manufactured nitrogen. “Not only do we achieve an environmental improvement of meeting our N targets through greater legumes in the sward, we have a positive effect on soil degradation and movement,” says Jagger. “Due to the root structures and mass the cocksfoot and fescue pastures have the ability to hold soil structure together and source moisture. “Soil cracking and exposure only happens in extreme conditions. This in turn allows the plants to compete for open space and slow down the invasion of unwanted species and slows down the reversion of kikuyu back into the paddock. “This trait in particular follows one of the same principles that regenerative agriculture is focused on, but it is achieved through a conventional grazing system.”

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Grey Power CodeWord No. 18 (December 19) 16

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DAIRY NEWS JUNE 22, 2021

6 // NEWS

50 extra vets not enough JESSICA MARSHALL jessica@ruralnews.co.nz

THE GOVERNMENT’S

recent announcement that they will grant another 50 vets entry to New Zealand will not meet the country’s needs, says one recruitment expert. On 9 June, Agriculture Minister Damien O’Connor announced border class exceptions would be granted to 50 experienced vets. Julie South, talent acquisition consultant with VetStaff, says that while the announcement is a good start, she is uncertain how it will alleviate the shortfall, because all veterinary sectors are currently at critical levels. “Right now, no one seems to know where these 50 vets will be allo-

cated. It could be a lolly scramble with the various sectors fighting to get what they need,” South told Dairy News. She estimates that a further 50 to 75 vets are needed to fill the shortage once the vets already allocated exemptions are in New Zealand. “However, they need to be the right kind of vets willing to go to where the vacancies are.” She says New Zealand requires experienced dairy, production and companion animal veterinarians. Another concern is whether the vets entering the country are able to fill vacancies in certain areas of the country and understand what New Zealand is like as a country. “We need to make sure we’re letting in the right vets for the right vacancies in the right loca-

IN BRIEF DairyNZ man to head vets

“We need to make sure we’re letting in the right vets for the right vacancies in the right locations.”

Julie South, VetStaff, estimates that a further 50 to 75 vets are needed to fill the shortage.

tions.” South says one reason there is a shortage is because New Zealand has never trained enough vets. “Vets are on the current long-term skill shortage list. The current shortage is only partly due to the effects of Covid19. There is a continuing need for vets to be able to come here to work. Letting in 50 vets in a piecemeal fashion like this isn’t getting on top of the problem.”

South has requested an immigration classification change for vets. She wants veterinarians to have their own classification status like doctors, nurses, and other human healthcare workers. “If veterinarians had their own classification – like their human medical counterparts have had all along – not only would it be more efficient, but it would allow positions to be filled as and where they become vacant.” She says that while overseas vets are willing to come to New Zealand, many of them also want to work in Australia and don’t mind which country they end up in. She says that because

the Australia government has made it easy for vets to enter the country, that’s where they are opting to go. “For those who don’t mind – because they’ve never been here, they therefore don’t realise there is a difference between the two countries… but to them it doesn’t matter. And I can’t blame them. If your dream is to emigrate down under or do your OE down under, of course you’re going to go to the country that makes it easy and welcomes you the most.” She says that although the Australian-bound vets are in the minority, the numbers are increasing.

DAIRYNZ REGIONAL leader in Bay of Plenty Andrew Reid is moving on to a new role. He takes over as Vetora Bay of Plenty veterinary club’s new chief executive in August. Reid says helping farmers look after the health and well-being of their animals is more important than ever. “Animals are at the heart of New Zealand’s food production. But how we care for them is coming under the spotlight more than ever,” he says. “One of our biggest challenges is making sure we continue to be global leaders in animal care, and tell our story to non-farming communities and to our customers around the world. Maintaining our license to operate depends on it.” Reid believes vets play a key role in the success of New Zealand’s agricultural industry, and not just in terms of animal health and productivity. “Vets are regarded by the farming community as trusted advisors and partners. The nature of their work means many go above and beyond to support their farming clients in ways that are not always recognised. You can’t put a price on the value that delivers to farmers and their businesses.” Attracting and retaining both large and companion animal vets has been an ongoing issue for the industry, but one Reid believes presents an opportunity for Vetora BOP. “Vetora BOP has a legacy of caring for animals, families and farmers that dates back more than 75 years. At its heart are sound values focussing on community and people,” Reid says.

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DAIRY NEWS JUNE 22, 2021

NEWS // 7

Banks cashing in on sustainability ANOTHER BANK is offering farmers low-cost ‘green loans’ to help them tackle environmental impacts. ASB announced, at the opening of National Fieldays last week, that its new rural sustainability loan will offer a ‘marketleading’ 2.25% annual variable rate for ‘sustainable farming improvements’. In March, BNZ revealed it was offering a loan discount to dairy investor Southern Pastures, if the company meets water and biodiversity targets on its farms. The New Zealand first $50m sustainabilitylinked loan is a pilot, but BNZ says it will roll it out more widely if successful. ASB says it will loan for conservation and biodiversity restoration, and projects to drive the switch to renewable energy, prevent pollution and waste, cut emissions, as well as promote

healthy soil, ecosystems, waterways and animal welfare. General manager for business banking Tim Deane claims ASB’s Rural Sustainability Loan will help future-proof two of New Zealand’s greatest assets: our farmers and our land. “Farmers tell us climate change and regulatory pressure are big issues keeping them up at night. That’s why we’re digging in and doing more for those who want to go beyond compliance basics and drive change that makes a deeper difference for their farm and ultimately the environment,” Deane says. He adds that the bank’s farming customers have already invested more than $120 million to plant native trees, install environmentally-friendly effluent systems and fence off waterways. “Our goal is for our

FIELDAYS RETURNS AFTER A hiatus of two years, National Fieldays opened to a grey foggy day in the Waikato, last Wednesday. It’s likely that the mood would have been buoyant given this year’s dairy payout and a strong prediction for the new season just underway. Whether that turns into business being written might be a different matter, given that many machinery distributors are reporting a market that is already ahead of last season by up to 20%, leading to issues of limited supply before the end of the year. In many cases, these supply issues were predicted earlier in the year, with strong marketing campaigns bringing orders forward. Fieldays chief executive Peter Nation emphasised the importance of the event in terms of rural folk reconnecting after been through the isolation created by Covid. He also noted that the event had seen a large number of new exhibitors taking part and pushing overall numbers to beyond 1000. “It’s great to be back – 2020 was a difficult year for us, as our revenue stream literally dried up overnight, so it’s been fingers and everything else crossed for the last few months,” National told Dairy News. “Set up has been difficult over the last few days with the heavy rain we’ve received over the last few days. But our visitors don’t normally flinch over a little mud.” Visitors saw a new site layout, with a few open spaces brought about by around 4% or previous exhibiters pulling out. However, newbies like McDonalds and ANZCO where at Mystery Creek for the first time. “It’s hard not to be impressed by some of the large investments being made by our exhibitors,” Nation added. “Some increasing the size of their sites and also making use of substantial audiovisual displays.” – Mark Daniel

new sustainability loans to back $100 million in green upgrades over the next five years, so New Zealand can continue to lead the world in efficient and profitable farming and command a premium

for Kiwi products.” Deane says applications for loans are now open and the variable rate will be available for up to five years from when the customer makes their first draw down.

The National Fieldays returned to Mystery Creek last week after a lapse of two years.

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DAIRY NEWS JUNE 22, 2021

8 // NEWS

$8 milk price safe despite GDT dip SUDESH KISSUN sudeshk@ruralnews.co.nz

DAIRY PRICES have

continued their recent downhill run, but the forecast milk price isn’t

under threat. Westpac senior agri economist Nathan Penny believes farmers can continue to expect a healthy 2021-22 farmgate milk price of $8.00/kgMS. He says the recent

downward trend in prices reflects two factors. Firstly, New Zealand milk production has ended 2020-21 on a high. April production was up a whopping 11.6% on the same month last year.

“As a result, we expect production to end the season a solid 2.5% ahead of the 2019/20 season,” Penny told Dairy News. The second factor, he says, is an element of cashing in at very high

New Zealand’s milk supply last season ended on a high.

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prices in recent months. Penny points out that the quantity sold over the last three months is around 17% higher than the same three months a year ago. Similarly, over the same period, Fonterra has offered WMP contract 6 – product for delivery in 6 months’ time – in another attempt to make the most of the current very high prices. “The last time Fonterra offered contract 6 was back in 2018,” he explains. “The second factor bodes well for the new season’s farmgate milk price. Indeed, Fonterra has presold more than it would

normally have at this stage of the season, and it has done so at very high prices.” Last week’s Global Dairy Trade (GDT) price index dropped 1.3%, the fifth consecutive fall – though for whole milk powder it was the third consecutive drop. WMP prices fell 1.8% to just under US$4000/MT for the first time since February. Butter and skim powder prices each fell 1.7%. Anhydrous milk fat prices headed the other way, rising 0.6%, while cheddar and lactose prices also gained.

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THE COUNTRY’S second largest dairy processor collected just short of 2 billion litres of milk from its suppliers. Open Country Dairy chief executive Steve Koekemoer says the record collection included an incredible recovery towards the end of the season, which ended May 31. “The whole Open Country team has done an outstanding job to get all the milk processed into high quality ingredients and to sell and export them to our global customers,” he says. Koekemoer notes that the 2020-21 season had been a difficult one for the industry due to the supply chain constraints for shipping and getting product to market. And he doesn’t see this situation easing any time soon. “We continue to manage it proactively to ensure we keep product moving and customers supplied. “Our plans for the next peak are already well defined, which gives me confidence that we will get through anything that is thrown at us.” OCD’s four processing sites performed extremely well throughout the season; the plants are now undergoing winter maintenance. Koekemoer says OCD successfully commissioned its new air heater at the Horotiu site. “The upgraded heater is delivering a far better performance than its predecessor and hasn’t missed a beat since start up.” Koekemoer says OCD has received a number of requests from farmers to expand capacity at sites to accommodate growth and new supply. “We are currently reviewing options, as we understand our farmers’ need to grow and for us to grow with them.”

DAIRY NEWS JUNE 22, 2021

NEWS // 9

ENSURE THEY REACH THEIR PEAK POTENTIAL

Agribusiness leaders are facing fatigue and vulnerability and it’s not only from Covid-19, according to the KPMG Agribusiness Agenda.

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Covid, looming regulations hit agri leaders’ morale - report sudeshk@ruralnews.co.nz

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paints a picture of low morale among sector leaders. The report, released last week at the National Fieldays, says there is a fundamental pressure on leaders, and it was clear from conversations that industry morale has fallen significantly over the last year. KPMG global head of agribusiness Ian Proudfoot told Dairy News that leaders are facing fatigue and vulnerability and it’s not only from Covid-19. He says local issues are also causing angst for leaders interviewed for the report. The pace of regulatory change, especially since Labour’s landslide election victory, is worrying. Proudfoot says it’s clear that issues like water, decarbonisation, and immigration policies are causing fatigue. Even labourfriendly policies like creating extra public holidays aren’t going down well with the sector leaders. Proudfoot says the report has been the “hardest one” KPMG has written in the past 12 years. “We could sense anger during our conversations, particularly in relation to the labour shortages the sector faces. “At times it felt as though we were talking to leaders who were primarily focused on finding the strength to fight another day rather than the energised leaders of previous years.” The report states that practical labour and shipping challenges that Covid-19 has created are consuming most executive time and effort. The speed at which things are changing is unprecedented and very often means that the appropriate decision in the morning needs to be revised in the afternoon.

The pace of regulatory change means each new rule brings new compliance and reporting requirements and often requires changes to core systems. “Change is good for our country; however, the point was made that it is the breadth of change that is stretching many organisations,” says Proudfoot. “In addition to this, the Climate Change Commission’s final advice on farming has also presented pressure for the sector to do its part, or even to do the heavy lifting for New Zealand.” For these reasons, it is the first time in writing the Agenda that there are tangible concerns over the ability of New Zealand organisations to engage in the great big, beautiful tomorrow that is emerging rapidly across the global agri-food sector, he adds. “Can we connect to a world of opportunity? There is a global food renaissance happening right now and we strongly believe that the ability to connect and participate in the future of food at scale, remains available to New Zealand organisations. “However, the people that can make this happen, executive teams across the industry, are the same group of people that are currently under significant pressure dealing with the day to day challenges of their businesses.” Proudfoot says that while the report recognises that the industry is currently operating under extreme pressure, it also illustrates that there remains great potential to become highly involved in shaping the global food renaissance in many ways. “New Zealand is in a good position but it’s not going to be good forever. Our organisations need to act now and leverage our current reputation to secure a place at the table before our invitation to join the global food renaissance expires,” he says.

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DAIRY NEWS JUNE 22, 2021

10 // NEWS

Dairy curdled by restricted access PETER BURKE peterb@ruralnews.co.nz

TRADE AND Agricul-

ture Minister Damien

O’Connor’s visit to the UK and Europe to progress free trade agreements is incredibly important to the New Zealand dairy industry.

Dairy Companies Association of NZ chief executive, Kimberly Crewther says the dairy industry wants ambitious and comprehensive free trade

agreements (FTAs). she says that means the elimination of all tariffs on dairy exports to put them on a similar footing to the bilateral trade agreements

between the UK and the EU. O’Connor’s ten day trip to Europe sees him meeting top EU officials including Trade ComKimberly Crewther

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“What we are seeing is the EU cutting off these opportunities for third country producers via FTAs.” missioner Valdis Dombrovskis and Agricultural Commissioner Janusz Wojciechowski. He is also scheduled to hold talks with some of the European parliamentarians who are involved in the FTA talks. In France, he meets with the French trade minister Franck Riester. On the UK leg of the trip, O’Connor has talks with Trade Minister Liz Truss and then with other agricultural leaders – including representatives of the National Farmers Union. O’Connor says that while the negotiations are going well with both the EU and UK, they are at a point where some direct political discussions are necessary to help get through a couple of tricky issues. “Agriculture is clearly sensitive for us especially geographical (GIs) indicators. There are plenty of issues around the fringes and while our trade negotiators have been doing an exceptional job to get us to where we are, we just have to try and maintain the momentum and get though the difficult issues,” he told Dairy News. The issue of GIs is a major concern to the dairy industry. Crewther says the EU is effectively endeavouring to stop NZ from using the names of certain brands of cheese such as Gouda, which is a city in the Netherlands. “This would risk significant commercial losses for NZ dairy industry, whilst requiring us to adopt a fraught and inconsistent European style IP framework,” she says.

“DCANZ does not oppose GIs as an intellectual property concept. It is, however, extremely concerned that the EU’s GIs frameworks are being misused to clawback and monopolise the use of cheese names that have commonly used in global cheese markets for many years.” Crewther says the EU has extended GIs protection to a number of cheeses that have previously featured in global trade – facilitating agreements such as Gruyere and parmesan. She adds that such protection has already diminished cheese market opportunities for exporters to the EU market. “What we are seeing is the EU cutting off these opportunities for third country producers via FTAs. At stake are not only current commercial opportunities for NZ’s $2 billion dollar cheese industry, but also future opportunities,” Crewther explains. “We have a shared food heritage with Europe, as a result of our shared ancestry. The FTA should not take away the opportunities New Zealanders have had to benefit commercially from food names that we have used for decades.” Crewther adds that one of the problems with an expanded EU is getting approval for an FTA from the 27-member countries. She says, in recent times, the mandating or approval of FTAs with the EU has become increasingly complex and final ratification of trade agreements have taken longer than they did in the past.

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DAIRY NEWS JUNE 22, 2021

NEWS // 13

Govt’s electric car policy set to hit farmers in the pocket MARK DANIEL markd@ruralnews.co.nz

AT A time when New Zealand’s rural sector is already carrying a large can to keep the country’s finances in the black, it looks like that can will get a little heavier. The Government’s recently released Clean Car Discount Package is designed to encourage the uptake of electric vehicles with cash rebates of up to $8,625 for those purchasing “pure” electric vehicles (EVs). While the idea of everyone driving around in EVs is laudable, from January 2022 the sting in the tail will be a penalty

Farmers and tradies needing larger vehicles for their day-to-day work will be hit the hardest.

of around $3,000 on the purchase price of utes, which will be used to sub-

sidise the “go green” initiative. This means that farm-

ers, rural supply companies and an army of tradies who need these

larger vehicles for their day-to-day work, will be subsidising urban dwell-

ers to help them buy a low emission runabout or town car. The penalty may increase even further in January 2023 when the Government’s Clean Car Standards come into play – aimed at penalising manufacturers of vehicles with higher CO₂ emissions, meaning a further hike in purchase prices. David Crawford, chief executive of the Motor Industry Association, says the problem for users of such vehicles is there are currently no alternatives available. He says while there is talk of electric utes being available by 2030, even hybrid utes are not likely before the middle of the decade.

In the same vein, DairyNZ chief executive Tim Mackle is suggesting that because of the fact that vehicles of this type are essential for farmers and rural professionals, rather than a “nice to have” purchase, they should be exempt from the scheme until other greener options are readily available. Some industry observers are suggesting that the financial implications of the government initiative might result in some users holding on to and running older, dirtier vehicles, while trade-in prices for these vehicles is likely to take a hit. @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 22, 2021

14 // NEWS

LIC chief executive Wayne McNee will step down in November.

LIC boss to step down LIC CHIEF executive Wayne McNee will

leave the farmer-owned co-operative in November after eight years in the role. LIC chair Murray King says McNee advised the board of his intention to stand down. King says McNee has led the organisation through a period of significant growth and development across all areas of the business while delivering strong shareholder returns. “Over the past year, Wayne and his leadership team led LIC through the challenges of Covid-19 and the co-op is on track to deliver record results for the fourth consecutive year.” McNee joined LIC after a stint as Ministry for Primary Industries director-general. He is proud of what LIC has achieved over the past eight years.

“In particular the transformation of the business into a modern progressive co-operative, with significant improvements to the way LIC operates, major investment in digital capability and delivery, and working closely with the board to implement a share structure that is fit for purpose. “I am proud to be leaving LIC in great shape for the future, which is critical given its role as the DNA of the New Zealand dairy sector. LIC is a unique agri-technology company which adds huge value to the New Zealand economy, and is increasingly playing a role helping farmers deal with the environmental challenges they face,” McNee said. King says the board will commence a search for a replacement immediately and expects a good talent pool of both internal and external candidates.

WESTPAC WITHDRAWS FROM DAIRY AWARDS ONE OF New Zealand dairy awards’ key national sponsors, Westpac is pulling out this month. A NZ Dairy Industry Awards (NZDIA) statement says Westpac NZ has decided to not continue as a national sponsor after a 10-year association. NZDIA general manager Robin Congdon says Westpac NZ leaving is a bit like losing a family member. “The NZDIA is a family of volunteers and sponsors with a deep, connected history,” he said. “Westpac have worked closely on regional committees as treasurers or judges, and are part of the National judging teams, which has created longlasting deep relationships with the rising stars of the dairy industry. “We would like to sincerely thank Westpac for their dedication and support over the years and will be sad to see them go at the end of June.”

Westpac NZ sponsorship lead Todd Johnstone thanked the Awards organisers for their 15 years of support and wished them all the best for the future. “New Zealand has the best dairy farmers in the world. These awards play an important role in showcasing the hard graft, leadership and innovation of those farmers and we’re proud to have played a part in their ongoing success,” Johnstone said. “We’re always looking for ways to support rural communities and will continue our strong presence through our sponsorship of the rescue helicopters and the NZ Rural Games.” The Awards are comprised of 11 regional programmes which consist of several regional events and two rounds of judging, each culminating in a regional awards dinner. Winners from each region then go on to the National Awards.

DAIRY NEWS JUNE 22, 2021

NEWS // 15

$8-plus milk price gaining traction SUDESH KISSUN sudeshk@ruralnews.co.nz

RABOBANK HAS

joined the group of milk processors and banks forecasting a milk price of $8-plus for the new season. Last month, Fonterra announced its opening 2021-22 milk price forecast of $7.25 to $8.75/ kgMS with a midpoint of $8/kgMS, a record opening forecast. Synlait has come out with an $8 opening milk price. Westpac is also backing an $8 milk price while ASB is predicting $8.20/kgMS. RaboResearch senior analyst Emma Higgins says Chinese dairy import demand remains strong and global dairy supply growth is stuck in neutral. “China continues to drive global trade, and its healthy appetite for dairy imports over recent months has acted as the primary pillar of price support in the year to date. “Import demand in China has been boosted by the ongoing recovery of its food service and retail channels — with demand in these channels now nearly back to pre-pandemic levels — and this thirst for dairy imports has helped keep farmgate milk prices on a higher trajectory journey for many farmers around the world.” Rabobank’s Dairy Quarterly report says

dairy prices have been further assisted by modest supply growth across the major export regions during the first half of the year. “The recent European spring flush has largely been lackluster, and while milk flows in New Zealand, the US and South America have been more positive, the recent spike in some feed prices is a further factor which has constrained global milk production growth,” Higgins said. She expects to see feed prices remain firm well into 2022. As a result, milk supply growth for the ‘Big 7’ dairy exporters (the US, the EU, New Zealand, Australia, Uruguay, Brazil and Argentina) will expand by just 1.3% in the second half of 2021. Despite the upward revision in its New Zealand milk price forecast, Higgins said the bank was still expecting to see lower Chinese import demand in the second half of the year. “China’s milk production growth continues to push ahead and there is now an increasing risk that this growth will outpace consumption growth, adding further pressure on inventory levels. This, in turn, could change China’s buying pattern and have negative implications for dairy commodity prices,” she says “We do anticipate weaker demand from China will have an impact

on commodity prices over the course of the season, however, we expect the timing of the softer demand will be past New Zealand’s production and sales peak.” There are other issues

on the horizon including shipping woes caused by Covid-19. The report says ongoing global shipping issues and further waves of new Covid-19 variants have the potential to disrupt global

dairy markets and shape as additional watch factors in the second half of 2021. The report says the new season kicked off on June 1 amongst generally positive settings for farmers.

Emma Higgins

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DAIRY NEWS JUNE 22, 2021

16 // WORLD NEWS

Farmers to power own plant EUROPEAN DAIRY co-

operative Arla says renewable electricity produced by its farmer owners could soon be used to operate its milk plants. Arla says it is closing the loop on the renewable electricity produced on-farm in a move that reduces the carbon footprint of Arla’s milk, secures farmers a better price for their power and gives the cooperative direct access to more green electricity certificates. Many of Arla’s cooperative farmers generate green electricity for their own farms and for the public grid. As Arla is looking to increase its share of renewable energy in its operations, the company will now keep the farmers’ green electricity in the dairy value chain and

provide a better profit for the farmer. “Arla farmers can help their own company to accelerate the transition to renewable energy while the company can maximise the value of their investments in renewable energy,” says Hanne Sondergaard, Arla’s head of sustainability. “This demonstrates how we in our co-operative’s micro food system can work together to increase the sustainability of our value chain to the benefit of our owners, our business and the environment.” Technically, the loop is created via the Guarantees of Origin (GO), an EU instrument that proves to a final customer that a quantity of electricity originated from a specific renewable energy source.

Arla hopes to be a carbon net zero dairy co-operative in 2050.

Until now, the farmers’ only option has been to sell their GO as a commodity for resale, either through a utilities company or a trader. Now though, by selling their GO directly to Arla, the other parties are left out of the transaction and the farmers are rewarded with the full market value that

Arla would pay for GOs on the open market. Generating ‘circularity within its own value chain’ is a move welcomed by Arla’s chairman, Jan Toft Norgaard. “With this opportunity, the green energy that our owners produce can be counted as part of our collective actions to make

dairy products more sustainable. “The full profit for the GOs that we are able to secure the farmers with this move has no extra cost for the cooperative and is a positive contribution to the business case for Arla farmers who consider investing in renewable energy.”

In Arla’s operations, emissions have been lowered 24% since 2015 and the share of renewable energy used in operations is currently 35%. A continuous increase is part of the ambition to reduce total emission by 30% from 2015 to 2030 and to be a carbon net zero dairy cooperative in 2050.

According to Arla’s Climate Check data, 24% of the co-operative members currently produce renewable electricity from wind turbines and solar panels on their farms. As it’s mandatory for farmers in Germany and Luxembourg to pass over their GOs for the green electricity to the government if their electricity production is subsidised, the share of owners who can choose to sell them to Arla is currently 14%. The co-op estimates that around a fifth of the company’s total electricity usage in its operations can potentially be covered by farmer-produced GOs. Arla, the world’s ninth largest dairy company, is owned by 9,700 farmers living in seven European countries. @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 22, 2021

AGRIBUSINESS // 17

Taranaki/Manawatu 2021 Young Farmer of the Year Jake Jarman says a farm that makes health and safety a priority is a productive and profitable farm.

Getting home safely is the main thing TARANAKI/MANAWATU 2021

Young Farmer of the Year Jake Jarman sees real value in good health and safety practices. “In my experience, a farm that makes health and safety a priority is a productive and profitable farm,” he says. Jake’s own health and safety focus began with a solid grounding on his family’s dairy farm and continued through his studies at Lincoln and Massey universities and practical farm placements. “Mum and Dad were keen for us to be out on farm with them from an early age, but we were very well supervised,” says Jake, who now works for ANZ in Ashburton as a relationship associate. “There were always strictly ‘no go’ areas and very clear expectations around behaviour. As we got older and started using farm bikes and equipment, they made sure we understood how to use everything safely. “There were very strict rules around the bikes. Never use them on uneven surfaces and be very aware of wet or muddy ground. The approach was always, if in doubt, get off and walk – check over the next rise, check for things like creeks, before you get back on. “There were also strong rules around speed and wearing seat belts in all vehicles, and if you were taking something like a tractor on the road, use flashing lights and be very visi-

ble and always have the forks pointing down.” There was training about towing or lifting heavy loads and checking guards and behaviour around things like PTO shafts, he says. “It was very much sequential learning, learning as we went but with very good supervision.” Jake believes all parts of a farm’s structure can play a role in good health and safety. From young staff through to roles like his, as consultants or advisors. “Sometimes you get so bogged down with the day-to-day graft that it is hard to see where small improvements can make a big difference. If we stop seeing health and safety as compliance and look at it as productive farming with thriving staff, we might see an improvement in our pretty miserable track record of injuries and deaths on farm.” Jake has a Bachelor of Agricommerce at Lincoln University and then a Masters in Agricultural Science, through Massey University – completing his studies in Hamilton with the support of a DairyNZ post-graduate scholarship. He then spent time working part-time for Dairy Trust Taranaki and on the family farm before joining ANZ in February 2021. Those experiences continued his health and safety learning. As part of his degree, he also had to do practical work on farm. One was a family farm business in Oamaru and the other a large Land-

corp farm in Te Anau. “They both had very good health and safety processes, but it was interesting to see the different approaches. In Oamaru, we had regular health and safety meetings and toolbox meetings and would discuss risks and how to manage them, anything new and near misses – what had happened and how that risk should be managed. We’d have lunch once a week at the manager’s house to complete our health and safety meeting. In my first week I was told I was running the meeting. That was a great way to break the ice and get to feel part of the team.” At the Landcorp farm, the health and safety processes were standard operating procedures that applied across all their farms. He picked up a lot of my specific knowledge around health and safety there. “There were similarities to my parents’ approach though. There were deer on the farm and I’d never worked with them before. My first two weeks were basically spent shadowing the manager and learning from him, and his 30 years’ experience, to understand the behaviours of the deer in the sheds and paddocks and how to work safely with them. That was awesome.” Jake won his FMG Young Farmer regional title at his first attempt, and also enjoyed a clean sweep in the competition, winning the most points in all four contest strainers. @dairy_news facebook.com/dairynews

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DAIRY NEWS JUNE 22, 2021

18 // OPINION RUMINATING

EDITORIAL

A good deal takes time

MILKING IT... Learn from the Aussies

Don’t throw stones

IT SEEMS the Australian Government has realised how serious the labour shortage issue is for its agriculture sector. A new agriculture-specific visa will be established between Australia and the United Kingdom, allowing people to work on farms in either country. Australian media reports say there will be no age restrictions on the visa although it is not clear yet how long the visas will be valid for or when it comes into place. Aussie farmers have been lobbying for a specific visa to recruit more people to milk cows and harvest crops. However, despite NZ farmers lobbying hard for extra overseas workers, the NZ Government has only given border exemptions in dribs and drabs. Time they took a leaf out of the Aussie book.

THE DEBATE over whether it’s okay to drive a petrol guzzling ute polluting our environment with carbon dioxide is getting personal. Unionist Richard Reid tweeted a photo of National MP Chris Penk’s ute, painted in National livery, with the question, ‘does he need this…didn’t know that Penk was a hardworking tradesman’. The response came thick and fast. One tweet stated: “I’ll see Chris Penk’s nice, tidy ute, and raise you Marja Lubeck’s ancient camper van!” with a photo of an old campervan in Labour livery with the MP’s photo on it. Those who live in glass houses should not throw stones.

No thanks! AUCKLAND YOGHURT maker The Collective claims it is the first New Zealand dairy yoghurt brand to offer a plantbased range. Last year, the company managed to successfully commission a new factory at their West Auckland facilities – expanding its capability to produce non-dairy products for all of New Zealand and Australia. The first yoghurts to launch from the new factory, last October, were plant-based layered yoghurts. According to the company, the yoghurt is made using “sustainably sourced New Zealand oats, coconut and rice and is packaged in postconsumer 100% recycled plastic (#1), that can be recycled again and again within New Zealand”. Oh, so very woke, but it all sounds yuck!

Name it and milk it UNIVERSITY RESEARCHERS in the UK believe that a cow will produce more milk if you gave it a name. Newcastle University in England researchers have found a trend during a study of cow names in the UK. No matter how large the dairy farm or the size of the herd, cows with names produced more milk than unnamed cows. Scientific American summed it up: “Dairy farmers who reported calling their cows by name got 2,105 gallons out of their cows compared with 2,000 gallons in a tenmonth cycle.” That’s nearly 5% more and cow by cow, that can add up. The researchers have a theory — giving a cow a name and using it is a way to show kindness. It helps if you talk to her more and consider her more of an individual. The cow becomes less stressed and more likely to produce more milk.

WHEN TRADE and Agriculture Minister Damien O’Connor arrives back in the country in a few days’ time, don’t expect him to be waving around a piece of paper saying NZ has nailed free trade agreements(FTAs) with the UK and EU. The road to Europe to get any sort of reasonable trade agreement has never been harder. For me, it is somewhat of a re-run of what happened in the late 1970s and early 80s when I regularly travelled the London-Brussels to Paris route – often taking in Dublin and Bonn – with then Trade Minister Brian Talboys and Prime Minister Rob Muldoon. Forty years ago, the EU and the UK were putting the screws on our trade to placate their powerful farming lobbies. Today it is no different. The same old protectionist arguments are being rolled out against NZ, but in many ways it’s now worse. Back in 1980, there were just nine members of the EU – today there are 27. Add the fact that today the UK – supposedly our strongest advocate in Brussels – is no longer there. Also remember that English is not the first language of any of the EU 27. Sure, there are strong cultural ties with many. But when it comes to trade, all the nice narrative about free trade and global liberalisation goes out the window as politicians pander to powerful lobby groups such as their farmers. The problem of course is exacerbated by the fact that the Covid pandemic has prevented the face-to-face meetings, which 40-plus years ago played a part in the deal making. For example, Muldoon and the late Margaret Thatcher (former UK PM) got on very well and this no doubt helped NZ’s cause. To call Damien O’Connor’s trip ‘mission impossible’ is not an exaggeration. In just 10 days he has to try and do what his predecessors did over many years. One good thing is that NZ is blessed with some super smart trade negotiators from the Ministry of Foreign Affairs and Trade (MFAT). They are a good match for their counterparts in the UK and Europe. Yes there will be FTAs, but like all good red wine and cheese, hopefully it will be worth the wait! – Peter Burke

GOT SOMETHING ON YOUR MIND? GOT SOMETHING on your mind about the latest issues affecting our dairy industry? Put your pen to paper or your fingers to your keyboard, and let our readers know what you think. Contact us by either post or email. Don’t forget to put your name and address. Note: Letters may be edited. POST TO: LETTER TO THE EDITOR PO BOX 331100, TAKAPUNA, AUCKLAND 0740 OR EMAIL: dairynews@ruralnews.co.nz

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DAIRY NEWS JUNE 22, 2021

OPINION // 19

UK Prime Minister Boris Johnson and his Australian counterpart Scott Morrison have agreed in principle to a free trade deal.

All locked up and without a plan to unlock TODD MULLER

AUSTRALIA AND the UK have

want access to significant numbers of UK skilled people to help the recovery of their businesses from Covid-19. Our businesses want UK investment and global perspectives to help fund their growth. Our young people want to travel to the UK and ensure those OE years are a part of their lived experience. Bi-lateral trade deals are a moment in time for governments to showcase how much they value strengthening integration between two peoples and nations. They are litmus tests on how they see the future. In Boris Johnson and Scott Morrison, with their respective ‘I love Australia’ and ‘Global Britain’ mantra’s express a contagious enthusiasm for what is possible. For them, connect-

just concluded a free trade deal. According to multiple news sources, it includes a substantial revamp of visa requirements to make it easier for professionals and young travellers to work and live in both countries, recognises a raft of qualifications, welcomes investment, especially in green technology and phase out tariffs and quotas. This is a good result for trade libTodd Muller eralisation, but frankly it should have Minister should be promoting our been us. agricultural sectors sustainability creBoth New Zealand and Australia dentials with gusto, this government started their negotiations last June, holds it up to the light, not but Australia seemed to want it to celebrate but to find flaws more. There has been an urgency to critique, regulate and tax. from Australia that has been lack- Bi-lateral trade deals are a moment in time for The Government even ing with NZ. frames climate change not Dan Tehan, Australia’s Trade governments to showcase as an exciting opportunity Minister, flew to the UK in April how much they value to embrace innovation and to negotiate with his counterpart amplify our strengths, but to face to face to ensure Scott Mor- strengthening integration close down whole sectors, rison could conclude this deal off between two peoples and destock and plant trees. the back of his G7 invitation. nations. Worse still is the ‘life and Damien O’Connor arrived in death’ catastrophizing lanLondon last week to begin his equivalent face to face meetings. He ing their countries with each other guage used to frame it from the very deserves to feel uncomfortable sit- and the world is critical and Aus- top. Bringing this ‘hunker down’ and ting watching the formal announce- tralia and UK appear set on coming ment of the Australian deal – it’s not out of Covid with a ‘go get ‘em’ atti- defensive attitude to a negotiating tude creating a pervasive domestic table is bad for NZ exporters and I good enough. fear it will pervade the UK/NZ FTA Now the really tough test goes momentum. New Zealand, by contrast, seems deal. on O’Connor and (Prime MinisThe urgency, the enthusiasm, the ter Jacinda) Ardern to match if not locked in perpetual hand wringing and self-flagellation. We are locked passion for NZ exporters needs to be better the Australian deal. Our NZ exporters want no con- up, seemingly without a plan to front of centre – starting now! straints in exporting their goods and unlock; closed to migration of any • Todd Muller is National’s spokesman services to the UK, accepting that substance, afraid of foreign invest- on trade and export growth. there will probably be a transition ment. @dairy_news At the very time our Trade period of some sort. Our employers facebook.com/dairynews

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DAIRY NEWS JUNE 22, 2021

20 // MANAGEMENT

Genetics to help meet climate change targets? GENETIC WILL play a

key role in helping dairy farmers meet climate change targets at a herd level, while maintaining the highest quality milk production, says CRV managing director James Smallwood. His comments come following the release of the Climate Change Commission’s final report, which sets out a plan for New Zealand to reduce its emissions and become carbon neutral by 2050. “Genetics has been identified as a means of building a long-term solution to climate change,” says Smallwood. “As an industry, if cow numbers are reduced farmers will need to

improve efficiency per cow to ensure farming remains sustainable, both environmentally and economically. “With technologies such as genomic testing, we can work with farmers to identify superior animals in their herds. By combining this technology with precision breeding tools, such as sexed semen from elite bulls, farmers have an opportunity to accelerate their herd’s genetic gain in animal efficiency.” Access to quality data is crucial for making smart herd management and breeding decisions. Farmers can use the data captured on farm

from herd testing, DNA testing and herd recording to identify the elite animals that possess traits they want in future dairy herds. Herd management tools like CRV’s myHERD mean all this data can be captured in one place and used to help breed efficient, more sustainable cows, says Smallwood. He believes meeting the targets recommended in the report will be a big job for both farmers and industry and says they will need support and access to new tools in order to achieve them. “The industry requires ongoing investment in research, such as the current methane genetic

CRV managing director James Smallwood says genetics has been identified as a means of building a long-term solution to climate change.

trials. Farmers need tools to be able to accurately measure, report and reduce the environmental

footprint of their herd.” CRV’s grass-fed genetics breeding programme in New Zealand, com-

bined with the company’s global presence and years of investment overseas and locally, means the company is well-positioned to help develop tools and solutions, he says. CRV Netherlands has been investing in individual feed intake collection for several years and is making excellent progress in terms of giving famers real tools to breed a herd that produces more milk with less feed. “Consumers are demanding more information about the provenance of their food. From greenhouse gas emissions and carbon footprint to animal welfare, the spotlight is on New Zealand as

a food producing nation. “CRV has led the way in developing genetic solutions for breeding animals that are polled (hornless) and more tolerant to facial eczema and more efficient. We were also first to market with our sexed semen offering, which enables farmers to breed heifers from their best cows. “There is no doubt these new targets are challenging, but they also present our dairy industry with an opportunity to step up and further strengthen our global competitive advantage. CRV is committed to working with farmers to do just that,” says Smallwood.

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DAIRY NEWS JUNE 22, 2021

MANAGEMENT // 21

Being green and profitable A major, three-year research project is underway in Taranaki to see what can be done to practically reduce the environmental footprint of dairy farmers and, above all, ensure that farms remain profitable. Reporter PETER BURKE looks at the initiative and how it’s progressing. THE PROJECT is led by Dairy Trust Taranaki in conjunction with Mark Laurence – DairyNZ’s regional leader in the province. He heard about the trust working on a project called ‘Future Farming’, which was designed to see what farming might look like in the future with greenhouse gas and nitrate restrictions, as well as new animal welfare requirements, and still be profitable. “At the same time, DairyNZ had come up with a programme called Step Change. In conversa-

tion with the trust, I said one of the things I’d love to do is get some farmers and work with them, at an in-depth level and see what some of the practical things are they can do to make changes?” Laurence told Dairy News. “We have a whole lot of theory and then you have a lot of science. But there are 1500 to 1600 farms in Taranaki going to have to make changes. So, the question was how do we build the knowledge and make those changes in a way that every farmer is capable of implementing? We got funding and

THE FARMERS

Mark Laurence, DairyNZ

the project is now oneyear-old.” There are two distinct parts – Gibson Farm is one of two properties owned by the Trust and located right beside the Fonterra factory at Hawera. Gibson Farm has divided itself in half but, rather and a line down the middle, the split is based on alternative paddocks to

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get a better balance. Half is called the ‘future farm’ and the other is a ‘control block’. Each trial block runs about 130 cows. “The future farm is allocated 70 units of N, limited PKE and is doing things like deferred grazing, introduced plantain and chicory so there is a diverse pasture type and a lower stocking rate,” Laurence explains.

“Conversely, the standard farm uses PKE, is allocated 190 units of N and the stocking rate is higher.” The first year of the trial saw the environmental targets achieved, but at a significant financial impact. This was in part due to the fantastic summer offsetting predicted gains for the lower stock farmlet.

AS PART of his contribution, Mark Laurence has selected four farms in the province representing different climatic conditions and soil types. There is a coastal farm, one at a high altitude, another at medium altitude and the final one has a different class of land to the others. He says it’s really important to remember the project’s key focus is profit – rather than milk solids. Laurence has spent many hours with the partner farmers, whom he says are future focused and pretty switched-on people and run successful commercial operations. “What we are talking about is how do we make changes to a farm system that can evolve to the future, but also stay profitable?” he adds. “At the Gibson Farm, you can get highly-technical and do a complete change in farm systems. But to ask a farmer running a commercial operations to do a change in farm systems is unreasonable. Not only that; it’s highly unlikely that it would be effective. So, what we are saying is, taking your farm systems, how can we tweak it to make the improvements we need within how you are already operating?” Laurence says for farmers who use lots of nitrogen, the challenge is how to reduce that and still grow sufficient grass to maintain production.

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DAIRY NEWS JUNE 22, 2021

22 // ANIMAL HEALTH

Jersey bulls breed heat tolerant cows A NEW Zealand company says it has bred the world’s first team of bulls that all carry a dominant gene certain to breed heat tolerant cows. These cows cope better in tropical climates, ensuring milk production for countries with some of the world’s greatest deficits of protein. Thermo Regulatory Genetics has bred a team of four homozygous Jersey bulls who all have the “Slick” gene, named because cattle who inherit the gene have short hair and appear shiny and wet. Their lack of hair keeps them up to 1°C cooler than other cattle. This is enough to make them perform significantly better in hot and humid temperatures, making them ideal for dairy operations in tropical countries. ‘Homozygous’ means

all daughters born to the bulls are guaranteed to have the Slick gene. Thermo chief executive Derek Fairweather says these world-first genetics are one part of a complex puzzle that can help provide greater food security, particularly protein security, in some of the globe’s hottest and poorest populations. “We started in 2008 breeding Slick genetics into dairy cows, after our team had done a fair amount of travel around the tropics. In these regions we saw a lot of very average cows, providing very average returns for local farmers,” he explains. “We came away from those trips wanting to develop better genetics for the tropics because we understood that the added financial returns gained from better-pro-

ducing cows could literally mean the difference for a farmer sending his child to school or not.” Fairweather says as climate change takes hold, many of the popular breeds being used in the tropics (some parts of NZ can be classed as tropical in summer) produce less as temperatures rise. Many farmers had bred Holstein Friesian cows, but the company’s research found Jerseys performed better in the high temperatures. “So, we’ve selected top Jersey bulls, introduced the Slick gene and now have the world’s first team of four homozygous bulls.” Thermo Regulatory Genetics has signed a strategic alliance with the University of Florida, led by Dr Pete Hansen, with the university team leading research in the space

Thermo Regulatory Genetics chief executive Derek Fairweather.

of heat tolerant genetics. “Our research on Holsteins with the Slick gene has shown cows with the gene don’t suffer the drop in milk yield during heat stress that other cows do,” says Hansen. “We’ve also found that Slick cows have lower body temperatures in hot conditions. Our colleagues in Puerto Rico

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have shown that calving intervals are around two months shorter than nonSlick cows.” Thermo Regulatory Genetics is in its fifth year of selling genetics and has thousands of daughters in the tropics. The Philippines is currently the oldest recurring market, now milking second lactation daughters, but Fair-

weather says all countries near the equator were a target for cattle with the gene. He adds that the company is now going back to farmers in the tropics to gather data from cows bred there over the last five years. It plans to continue to improve and refine the genetics by applying traditional breeding methodology. This includes the use of genomic testing to assess genetic potential and select the most economically important traits for milk producers. “We are a science and data driven company so it’s not about promoting one breed,” Fairweather says. “We’re continuing to gather data so we can understand which daughters of the bulls are really performing so we can build a proven superior

animal, specifically for the tropics.” The company is also breeding polled genetics (cattle that don’t grow horns) to reduce the risk of infection from dehorning in humid environments; cows that specifically produce A2 milk, for countries like Pakistan which only allows A2 genetics to be imported. Fairweather says the next frontier would be adding traits such as resistance to ticks. “There’s 250 million dairy cows in the tropics so there is real potential and opportunity in developing the right cow for that climate.” Fairweather emphasises this has all been achieved through a natural breeding program. “We are and will not pursue gene editing, as that triggers complex and unnecessary issues.”

DAIRY NEWS JUNE 22, 2021

24 // MACHINERY & PRODUCTS

Telehandler with lots to offer MARK DANIEL markd@ruralnews.co.nz

THE CASE IH Farmlift 742 telehan-

dler has a lot to offer. A lifting capacity of 4200kg complemented by a 7.1m reach, with power delivered by an FPT 4-cylinder engine that provides 129hp at rated speed, 146hp at peak power, alongside maximum torque of 591Nm at 1500rpm. The standard 6x3 Autoshift transmission is fully automated through the forward speeds and can also be operated as a semi-automatic through forward gears 2-3-4, with a memory shuttle feature where the power shuttle selects the last-used forward and reverse gear after changing direction. A joystick-mounted de-clutch button allows a smooth transition

The Case IH Farmlift 742 Telehandler comes with all the bells and whistles.

between ratios, or to bring the machine to a stop, while electronic modulation ensures smooth changes and linear pick up when different ratios are selected. Running gear is taken care of with HD axles, with a limited slip differential

(LSD) on the front axle, and the option of a similar set-up at the rear. Inboard wet-disc brakes offer good stopping power, are protected from external elements and simple to service. For safety, a parking brake is stan-

dard on all models. A dedicated hydraulic system delivers 140l/min output via a variable piston pump layout, incorporating load sensing system to automatically adjusts oil flows at lower engine speeds. Selectable three-way steering, making work easier even in tighter surroundings, with automatic steering alignment ensuring front and rear wheels are aligned during steering mode selection. With a 3m wheelbase said to offer good stability, the 742 offers a tight outside turning radius of 3.91m. Daily servicing checks, engine oil dipstick, water coolant filler, air filter and radiators are easy and convenient, while the engine hood can be easily raised if greater access is required. Refilling the lockable fuel and SCR tanks can be undertaken from ground

level, while a 500-hour service interval allows for long working periods. For maximum operator comfort, the 742 is fitted with a comfortable mechanical suspension seat or can be optioned with an upgrade to air suspension, while the backlit joystick is integrated into the right-hand side armrest for driver convenience. Options include an electronically controlled pump for automated greasing of the chassis, axles, boom pivot points and cylinders; alongside a hydraulically operated lubrication pump sited on the boom headstock that greases all boom movement points, instigated by movement of the tilt ram cylinder. An optional quick coupling/uncoupling system option is said to make changing attachments as simple as possible.

Classy new home for CLAAS VISITORS TO last week’s National Fieldays were able to check out the new home for CLAAS Harvest Centre, Waikato and the parts, training and demonstration hub for the network’s five other branches in the North Island. The facility includes a six-bay service workshop, a 1,000 square metre parts warehouse

and a 700 square metre showroom, administration and training centre. The centre also houses a hightech remote diagnostics facility that enables technicians to monitor the location, operating performance and potential service requirements of any CLAAS, JCB or AMAZONE machinery fitted with telematics in New Zealand.

Located on a threehectare site adjacent to Hamilton Airport, the area also includes a 6,500 square metre ‘hard stand’ area, alongside a product demonstration and training area. The site hosts more than 35 sales, administration, parts and service staff under the leadership of branch manager, Stephen Harrison. Landpower chief exec-

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DAIRY NEWS JUNE 22, 2021

EFFLUENT & WATER // 25

Time to put your foot forward ALISON WORTH

THE GOVERNMENT’S

recent decision to delay Intensive Winter Grazing (IWG) rules until May 2022, following pressure from farming and industry groups, has provided farmers with a year-long opportunity to demonstrate how best practice management on-farm can influence future environmental policy. If you practice IWG on your farm, now is the time to put your best foot forward. Shine your Red Bands and prepare your paddocks like you would a cricket pitch, because farms all around the country could be host to some impromptu spectators this winter. While the thought of environmental groups and activists surreptitiously snapping photos may cause all sorts of unpleasant feelings. However, if you’re doing everything right (and more) and following the rules then swipe left on those feelings. Keep your hands firmly on the wheel and focus on controlling what you can control and not worrying about what you can’t control. Ministry for the Environment (MfE) have published a helpful document on the 2021-22 Intensive Winter Grazing Module.

Farmers guide ■■

Identify Critical Source Areas* (CSAs) and keep stock out of them

■■

Keep baleage and water troughs away from CSAs

■■

Have a 5-meter (at least) buffer strip next to waterways

■■

Graze down the slope and back fence

■■

Plan how you will manage adverse weather events this season.

■■

Replant land left bare after IWG as soon as is practicable.

■■

Minimise negative impacts on cultural values by minimising sediment, nutrient and pathogen losses.

■■

Plan for next season to make improvements and meet regulatory requirements.

■■

Plan for next year to ensure you are not planting land for IWG that is too steep.

■■

Maintain good animal health and welfare

This includes a step-bystep process, some good guidelines and recommendations and a paperbased template to include with your farm environment plan (FEP) and/or resource consent application. What is unhelpful is that the template calls for information many farms manage in a digital format – such as a farm map, stock movements and nutrient losses. Print more copies off? Fill in the same information

about your farm for the 50th time? Really? If you’re a FarmIQ farmer, then you can swipe left on that timewasting nonsense. If you’re not (yet), then put your sunnies on because this is where FarmIQ can put the shine on your Red Bands. By recording stock and land activities, and events as well as using the interactive map to its fullest potential you can manage, measure, report, record and provide all the

Farmers are in the spotlight this winter for intensive grazing practices.

evidence and proof potential regulators need to give your IWG practice the stamp of approval. We’ve prepared a guide of where and how in FarmIQ you can address MfE’s Intensive Winter Grazing top ten actions for success. (see sidebar) Be kind to yourself this winter, do your best to show the Government that our IWG practice this season is the stuff of good future policy that serves everyone well. Help your neighbour if you see they’re struggling to manage IWG on their farm and remember, you can only control what you can control. • Alison Worth is environment lead at FarmIQ

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DAIRY NEWS JUNE 22, 2021

26 // EFFLUENT & WATER

Keeping an eye out for water-logged paddocks NIGEL MALTHUS

SURFACE PONDING water is the factor

that has the most effect on cows’ lying time – and hence animal welfare – in winter grazing paddocks, says DairyNZ senior scientist Dawn Dalley. Dalley spoke at the recent Lincoln Univer-

sity Demonstration Dairy Farm (LUDF) autumn focus day, on the two main topics of providing a comfortable lying surface for winter-grazing cows, and having a contingency plan for adverse weather events. The advice was timely as it was followed by the one-in-100 years rain bomb which has soaked

the entire Canterbury province and caused widespread flooding, disruption and infrastructure damage. Dalley said a simple ruler or a gumboot test – assessing how quickly water or mud fills a footprint in the paddock – were both good indicators of paddock wetness and therefore how likely it was DairyNZ senior scientist Dawn Dalley says a trial carried out in Southland last winter used tracking devices to look at cows’ lying behavior and found significant decrease in lying time in response to rain.

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that cows could lie down to rest. For the sake of the animals’ welfare, eight hours a day lying is the recommended minimum, preferably closer to ten. Dalley said a trial carried out in Southland last winter used tracking devices to look at cows’ lying behavior and found significant decrease in lying time in response to rain – even when it was not heavy rain. The times cows spent lying down were both fewer and shorter. After a couple of days drying out, the lying times bounced back up to levels even higher than they were before the rain. “So that to us indicated that those cows were tired and so when they had better lying conditions, they were choosing to lie rather than grazing,” said Dalley. A lot of interacting factors were looked at, but it was really the surface water that had the biggest impact on lying time.

Dalley said intensive winter grazing rules recommended in the National Environmental Standards have been deferred for 12 months to give the industry the opportunity to demonstrate that it can do things better. Those rules would require no pugging greater than 20cm, and no more than 5cm over 50% of the paddock. Dalley said that would be very challenging for Southland farmers with their heavier soils, but there was no room for complacency in Canterbury. “I can tell you I have seen cows at [Lincoln University dairy research farm] Ashley Dene which were probably not achieving their lying times because of the soil surfaces, so we do need to take this seriously. “If we do not do things better this coming winter, we will be regulated,” she said. Meanwhile, recom-

mendations from the task force put together following the activism around Southland wintering practises two years ago included making sure no cow gives birth on mud; providing a nutritionally balanced diet and a good transition plan to avoid acidosis for those on fodder beet; and continuous access to fresh clean water. While many Canterbury farmers sent cows away for grazing then brought them back for calving, those who kept them on winter crops should pull them off at least two weeks before their due calving dates. Dalley said all farmers this year need to have a winter grazing plan around how they’re going to graze their crop paddocks, identify critical source areas and implement good management practices. For those with stock on undulating country, there were also requirements around grazing on slopes.

A lot of good planning resources were available, with recently-released winter grazing modules from DairyNZ, MPI and Beef+Lamb NZ, she said. “What we need to be doing for this winter is making sure that you complete your winter grazing plan for all of your crop paddocks. “If your animals are going out to a grazier, so they’re not going to be under your control, we really recommend that you work with your grazier to make sure that you’re comfortable with what they’ve got planned.” It was also important to have a contingency plan for those adverse weather events. “We’ve been lucky in Canterbury the last few years, we haven’t had a significant snow event, but there will be one that will come and there’s likely to be periods where we’ll have those cold southerly coming through.” Dalley warned that the dairy industry will be under increased scrutiny this winter. “Those that have issues with the way our cows are being managed have already indicated that they will be out there looking for those shots that will end up in mainstream in on social media. So it’s up to all of us to be making sure that we’ve got our plan, we’ve got our plan B and that we’re implementing those good management practices.”

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DAIRY NEWS JUNE 22, 2021

EFFLUENT & WATER // 27

Treating effluent while the sun shines HANDLING THE chal-

lenges of effluent management could become easier with a new product that allows dairy farmers to treat their effluent systems as a routine part of weekly milking shed maintenance. The product comes in a liquid form and can be added to the effluent system through the existing drain in the dairy yard, says Richard Kettle of AHD Nutrition Division. The core microbial technology is known as a photoautotroph, he says. “In ‘farmer’ terms, this product has bacteria that activate and do their work when the sun is shining. Particularly effective in an effluent pond system where there is large reflective surfaces and sunlight. “Biostack also holds onto micronutrients like nitrogen and phosphorus during dormancy. This means that when you pump effluent on the paddock or emerging crops you are taking the micro-

nutrients to the plant, fostering additional growth.” The bacteria have a shelf life of three years when unopened; once the containers are opened it must be used within a six month period. Kettle says Biostack users would notice a reduction in odour within two weeks of using the product and there will be little to no crusting on the pond surface. He says the product has the ability to break down both surface and bottom solids and effluent is easier to pump. Kettle says farmers will notice an improvement in paddock performance after irrigation. “Local experience has shown that some effluent ponds are under capacity and have massive sludge build up, even to the extent of a crusted top layer. “A different approach with Biostack will be required in this instance. The product has shown to work under these heavier burdens, but the time-

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frame is longer. The photoautotroph bacteria will work incredibly well when it is utilised in a functioning manure pond system.” Biostack comes in two formulations, BiostackSL for sludge breakdown and non lactating period pond maintenance and BiostackAP for ongoing pond maintenance.

10 days after adding Biostack, the sludge has lifted from the base of the pond and the odour has noticeably reduced.

A common effluent pond which appears to look ok, but has high odour.

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DAIRY NEWS JUNE 22, 2021

28 // EFFLUENT & WATER

Stopbank responsibilities BAY OF Plenty Regional Council is reminding rural landowners of their responsibility to protect the region’s stopbanks this winter. Over the wetter winter months stopbanks can be damaged by stock and over grazing and landowners can be held liable for any damage. Rivers and drainage asset manager Kirsty Brown says most farmers and lifestyle block owners know and follow the rules, but it only takes one person to put the wider community at risk. Stopbanks are compacted earth banks built next to rivers to help contain water and protect communities in flooding events. “At regional council we manage over 350km of stopbanks and they are only as strong as their

Stopbanks are compacted earth banks built next to rivers to help contain water and protect communities in flooding events.

weakest link so it is essential every landowner plays their part,” Brown says. “While light grazing of sheep and cows is allowed on stopbanks in the dryer months, over winter it’s best to keep all stock off them as much as possible to prevent damage. Pigs, horses and bulls should

never be on stopbanks.” She adds that when stopbanks become wet, stock can churn up the ground which can create serious issues. Good grass cover helps to hold together the soil structure underneath – so weakening that top layer can have catastrophic effects on

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surrounding properties.” “Vehicles can also damage stopbanks, especially when the ground is wet, so please make sure you aren’t driving trucks, tractors or other machinery on them.” The council is also reminding people who live near stopbanks of

the new flood protection and drainage bylaws that came into effect earlier this year. The bylaws apply to stopbanks and other flood defences and water controls like drains. They require landowners to apply for permission if they are intending to

build or demolish any structure, undertake earthworks or do any plantings in the vicinity of a Regional Council managed flood defence or drain. Bylaw conditions differ across the region so Brown is asking anyone living near one of the

region’s flood defences to go onto the council website for full details. “We need to protect stopbanks so they protect us in times of flooding. If in doubt please check out our website to make sure you know the rules for stopbanks and drains in your area.”

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

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DAIRY NEWS JUNE 22, 2021

EFFLUENT & WATER // 29

Riparian fencing fund allows farm wetlands restoration HAWKE’S BAY dairy farmer Ivan Knauf says he’s

Hawke’s Bay farmer Ivan Knauf.

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thrilled to be able to fence a significant 90-hectare wetland surrounded by native bush on his farm. Over two years, the Hāpara Takatū project will establish 195 kilometres of new riparian fencing to exclude all classes of stock from vulnerable waterways across the region; reducing erosion, enabling riparian plantings to grow and creating jobs. All thanks to a $4.2 million Jobs for Nature partnership between the Ministry for the Environment and Hawkes Bay Regional Council. Knauf’s wetland fencing is one of 70 projects across Hawke’s Bay, funded by the Jobs for Nature Hāpara Takatū project. The QEII National Trust and Fonterra also made financial contributions to fencing off Knauf’s wetland. It is claimed the project will generate more jobs in the region, with fencing contractors expanding their workforce. Knauf has established four kilometres of fencing around the wetland to keep out feral deer and other animals from feeding on native plants and trees. “This fencing is a crucial first step to restore the wetland and improve freshwater quality,” he says. “The next step is to manage willow trees, blackberries and other weeds to allow the native bush to flourish, and native birdlife to return.” Secretary for the Environment, Vicky Robertson, says it’s wonderful to see landowners across Hawke’s Bay getting involved in the project. Hawke’s Bay Regional Council ecologist Keiko Hashiba says the wetland on Knauf’s land is a critical biodiversity area for indigenous wetland flora and fauna who have lost the majority of their habitats across the region. “Ten percent of Hawke’s Bay used to be covered in wetlands – around ten times the size of Napier. There is only 4% of the original extent left, and most of the wetlands we have today are very small and isolated. “The restoration of this wetland will mean it will become a vital habitat for threatened species, a better functioning ‘kidney’ for filtering contaminants from the land, a water reservoir and carbon storage for our region.” The council’s catchment team leader Warwick Hesketh says that, in most cases, fencing waterways is the single most effective thing farmers can do to protect water quality and restore sensitive freshwater ecosystems. “To us, this is about partnering with our community, not just to fence off waterways for water quality benefits,” he says. “But also enhancing biodiversity, recreation, mahinga kai – those things that are so important to us as New Zealanders.”

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DAIRY NEWS JUNE 22, 2021

30 // EFFLUENT & WATER

All water is connected! UNDERSTANDING THE types of water fea-

tures on your farm will help in making decisions to reduce the amount of contaminants reaching waterways. A low point could be a lake, dam, river or the mouth of the river where it enters the ocean. A catchment also includes groundwater, storm water, wastewater, and waterrelated infrastructure. It is important to note that groundwater and surface water are also connected and may interact. Surface water can reach ground water when it filters through soils to recharge groundwater. Groundwater can reach surface water when solid rock layers prevent water infiltration downwards.

This creates shallow groundwater flows which can reach the surfaces as a spring. Groundwater can also reach surface water if the elevation of the groundwater next to a surface water body is higher than the water level in the stream. This means that nutrients in groundwater have the potential to enter surface water and vice versa. How different water bodies react to excess nutrients, sediment and bacteria The amount of nutrients, sediments and bacteria reaching a water body will depend on catchment features. These include land use and practices, rainfall amounts and patterns, soil types and slope, and vegeta-

The amount of nutrients, sediments and bacteria reaching a water body will depend on catchment features.

tion cover that intercept rainfall. Different types of water bodies react differently to excess nutrients, sediments and bacteria.

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Once in a water body the responses to nutrients (and sediments) differ between lakes and rivers. Rivers

In a river, the flow determines the effect of excess nutrients on plant growth. The flow regime includes the volume of water, how fast the water is moving and when it flows. Rainfall is unevenly distributed across catchments and through seasons, so river flow is dynamic. High flows

During high flows, like floods, river water is often fast moving. These flows flush out sediments and nuisance plant growth. The load may end up washed out to sea, deposited onto land or transferred into the next catchment. However, in catchments with lakes and estuaries, high flows can deposit surplus nutrients in these waterbodies that can cause issues at other times of the year. Low flows During low flows, rivers water is often slow moving – such as in dry summer periods or periods of demand for irrigation. The lower flow speed reduces the ability for the river to transport sediment and phosphorus, which can settle on the stream bed. Problems that can occur under low flow include sediment build up and nuisance plant growth because flows cannot flush the channel. The lower water volume

also concentrates nutrients, which poses greater environmental risk. During low flows, nitrogen enriched groundwater can become the dominant source of flow in rivers increasing nitrogen concentrations. Low flows can also reduce habitat availability and increase temperature and oxygen stress on aquatic life. Lakes Lakes are especially vulnerable because rivers deposit nutrients or sediment loads in them where they accumulate over time. Shallow lakes Shallow lakes are sensitive to excess nutrients and sediments because wind and waves tend to stir up sediment more readily. This reduces clarity and shades out high value plants on the lake bottom, therefore resulting in loss of aquatic habitat for main species and a decline in water quality. • Article- DairyNZ

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