Dairy News 26 October 2021

Fonterra ready for peak milk. PAGE 3

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OCTOBER 26, 2021 ISSUE 482 // www.dairynews.co.nz

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– Wayne McNee, outgoing CEO of LIC PAGE 6

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DAIRY NEWS OCTOBER 26, 2021

NEWS // 3

Ready for peak milk SUDESH KISSUN sudeshk@ruralnews.co.nz

Growing maize under film. PG.13

Breeding – a family affair. PG.20

FONTERRA’S THIRD peak milk in the Covid era has arrived and all parts of the business remain in a high level of preparedness.

With around 80 million litres of milk being processed daily from last week, chief operating officer Fraser Whineray says procedures and precautions are in place to keep operating and processing milk.

The co-op’s global incident team has been activated: headed from Auckland by chief executive Miles Hurrell, Mark Cronin, Helen Moore and Whineray. A technical response team, comprising key staff from all over the world, is working with them.

Whineray told Dairy News that he was pleased with the way things are going.

“We are making sure all parts of our business are prepared – right from our 1600 tanker drivers to lab technicians who test the milk to our manufacturing staff,” he says.

“All this has to work in harmonious choreography.”

More strict procedures are enforced in the North Island, with all staff working at a level

above what is mandated by the Government, with shift bubbles, full PPE gear and temperature testing.

There is no contact among staff and seating in cafeterias is limited. Access to manufacturing sites is limited to essential workers.

“Even I cannot go to a site unless it is absolutely necessary; we are allowing only essential workers on site,” says Whineray.

Fonterra is also prepared to deal with any Covid outbreak among factory staff.

Since the first Covid-19 outbreak last year the teams have been refining their business continuity plans and have held practice runs of what to do if there is an infected person on site.

It has deep clean kits on each plant and select cleaning crews have been identified. Cleaning trials that take a few hours have been undertaken, with the plant ready to be up and running again shortly after that.

Whineray says saliva testing provisions are in place to rapidly test staff if necessary.

He says the peak

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FONTERRA SAYS it is watching closely the Government’s move on mandatory vaccinations for workers.

“We are staying close to it,” chief operating Officer Fraser Whineray told Dairy News.

While Whineray says not all Fonterra workers are vaccinated, it has been working hard to provide opportunity for staff to get the jabs.

The co-operative recently ran vaccination centres at 17 sites and about 7500 staff got their jabs, he says.

Some workers also received their jabs at other vaccination centres over the months.

Whineray says Fonterra has been working closely with the NZ Dairy Workers Union on its Covid response.

milk period is crucial and Fonterra is well prepared to process all milk arriving at the factories.

Whineray says it’s hard to say when the cooperative will hit peak milk however it would be different for each region, depending on temperature and rainfall.

Once peak milk begins to subsidise in the coming weeks, more options open for the co-op, including moving milk around factories in each region.

Right now all plants are processing to capacity.

Fonterra chief operating officer Fraser Whineray.

DAIRY NEWS OCTOBER 26, 2021

4 // NEWS

$40b injected into economy SUDESH KISSUN sudeshk@ruralnews.co.nz

THE DAIRY industry’s

total economic contribution to New Zealand’s economy topped $40 billion last season.

DairyNZ chairman Jim van der Poel revealed this at the industry-good body’s annual general meeting last week.

He told the online AGM that he is proud of farmers’ contribution to the economic wellbeing of the country.

The contribution was helped by a high milk price paid by all processors to their suppliers.

Van der Poel noted the role dairy still plays in New Zealand’s economy as Covid-19 continues to affect communities.

“Every Kiwi is benefiting from dairy’s contribution to our country.

“Covid-19 has also affected farmers beyond the farm gate, exacerbating staff shortages. DairyNZ has been strongly advocating

for immigration policy changes to help address this issue.

“We were pleased to see that thousands of dairy workers can now apply for residency, following some hard work by DairyNZ, Federated Farmers and farmers to push the urgency of migrant workers being able to settle in New Zealand.”

Van der Poel noted that the last season was a challenging one for many farmers.

He also shared the good news that perception of dairy farmers among New Zealanders was improving.

DairyNZ’s Vision is Clear campaign profiled 60 farmers over the last three years, showing what they have done for the environment.

Some 1.7 million Kiwis saw the campaign and an estimated 63% of Kiwis who have seen the campaign feel positively towards dairy farmers, said van der Poel.

“When the campaign started in 2018, only 43%

DairyNZ chair Jim van der Poel says every Kiwi is benefiting from dairy’s contribution to our country.

of New Zealanders felt that way,” he says. “We have seen a big change in only three years.”

The chair also touched on the success of the

Mycoplasma bovis eradication campaign.

“As a result of hard work by farmers and partner organisations, we are also winning the M. bovis

battle,” he says.

By October 2021 only two farms in New Zealand had active M. bovis – down from 34 two years ago.

“We know that M. bovis has created a significant amount of stress for farmers, and we have been focused on working with programme partners to improve biosecurity and farmer support,” he says.

In his brief report, DairyNZ chief executive Tim Mackle touched on a few highlights, including a DairyNZ-commissioned AgResearch report released in January that found New Zealand dairy farmers have the world’s lowest carbon footprint – at half the emissions of other international producers.

“We shared this story widely with media and politicians, ultimately reaching an estimated 3.4 million people. This position is a great starting point but also a challenge for us going forward as we navigate how to reduce our emissions even further,” said Mackle.

Major projects being run by DairyNZ include a genomic selection research programme on

developing higher yielding pastures with a lower environmental footprint.

Mackle says this has the potential to improve yields by between $400 million to $1.3 billion annually by 2040.

Researchers are also making good progress in using genetics to predict cow fertility through puberty timing.

This could enable farmers to breed more fertile herds and deliver environmental benefits, through fewer stock on farms, he says.

More farmers are adopting flexible milking to create a better lifestyle or to manage staff shortages. This shift is also proving to have animal health benefits.

DairyNZ has been trialling cows being milked three times in two days as opposed to being milked twice a day.

Mackle says one trial herd showed a 5% drop in milksolids production compared to milking twice a day but cows were in much better condition.

FINALLY, A DEAL IS HERE! NEWS THAT NZ and the UK have agreed ‘in principle’ to the terms of free trade agreement (FTA) will come as welcome news to the dairy sector.

The announcement was made at Parliament last week by Prime Minister Jacinda Ardern and Trade and Export Growth Minister Damien O’Connor. The agreement ‘in principle’ means the deal has been done,

with just the final text to be worked through in the coming months.

Ardern says it’s one of NZ best deals ever and is secured at a crucial time in the Covid recovery. She says it will serve our economy and exporters well.

The deal comes just a week after O’Connor met with the UK’s Trade Secretary Anne-Marie Trevelyan in

Italy and the word from those discussions was that announcement on an FTA was imminent Speaking from MIQ following his recent trip to Europe, O’Connor says he’s proud of what NZ has achieved in the negotiations with 97% of tariffs being eliminated on our products entering the UK. “There will be a transition period

for our butter, cheese, beef and sheep meat producers during which time they will enjoy significant tariff-free transitional quotas.

“This provides great opportunity to grow our trade through these periods. For instance, 7000 tonnes of butter, and 24,000 tonnes of cheese can flow to the UK market tariff-free at commencement. That will grow

to 15,000 for butter, and 48,000 for cheese by Year 5, after which point trade will be free,” he says.

In return NZ will fully liberalise tariffs on UK goods entering our country.

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DAIRY NEWS OCTOBER 26, 2021

NEWS // 5

Is China moving away from infant formula?

SUDESH KISSUN sudeshk@ruralnews.co.nz

ARE CHINA’S dairy market dynamics changing? Yes, according to China market expert Jane Li. Li says China’s infant formula market is on the decline and a new market, with hundreds of millions of more potential customers, is emerging.

And New Zealand is in the box seat to cash in, she says.

An aging population in China means demand for milk nutritional products is increasing.

She says this creates the potential of New Zealand farmers to build the “Tesla of Milk” in the coming years.

Li says New Zealand dairy farmers seeking better returns from the Chinese market must act now.

To help convey the situation on the ground in China, Li and her partner Simon Page are organising a series

of online presentations. Li and Page opened 100 retail stores in their last China venture.

They are keen to tell farmers why milk nutrition in China is the most exciting opportunity for NZ dairy and how farmers can be part of it.

“It is a presentation to farmers, open to all, but specifically for dairy farmers, whether cow, goat or sheep,” says Li. “It is about what we see as a new era of growth emerging in the China market and the opportunity that we see for NZ to really capitalise if we act now.”

China’s birth rate is dropping and the Chinese Government Jane Li claims breastfeeding rates in China have tripled in recent years, signalling an has been pushing breastfeeding. end to the infant formula boom of the last Li claims breastfeeding rates two decades. in China have tripled in recent At the same time Chinese aged over years. This is also signalling an end to the infant formula boom of the last two 50 are seeking better milk nutritional products to stay healthy and live longer. decades.

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Li thinks it is past due to move beyond discussions around “value-added” because it tends to lead us to focus solely on products, and instead start talking more about the types of companies that we need to build in order to compete in China and the world.

“Tesla is often cited as a model for disruption, some might say too often, but I think it is a great company to use in discussions around how to be more competitive because much of what they have done can be applied to almost any industry, including even NZ dairy.

“For instance, they make premium, highly innovative products, but they have also innovated their business model across the entire supply chain as the only direct-to-consumer car manufacturer.

“They represent the ultimate in ‘value-chain thinking’ and we believe it is that type of thinking that can help NZ dairy win in highly competitive but highly valuable markets like China.”

Li says while there have been government initiatives around fostering productivity and unlocking “addedvalue”, from a commercial standpoint, it doesn’t often make sense.

“Instead of more discussion on cooperation across the industry we need more action and we think that now is the time to take action to start building those ‘Tesla of Milk’ type companies.

“NZ dairy has reached peak milk. If you are a NZ dairy farmer and wonder about where our future returns will come from, then please register for our presentation at RoadmapToChina. co.nz. We would love to hear from you.” @dairy_news facebook.com/dairynews

DAIRY NEWS OCTOBER 26, 2021

6 // NEWS

McNee proud of success at LIC SUDESH KISSUN sudeshk@ruralnews.co.nz

DEPARTING LIC chief

executive Wayne McNee says the farmer co-operative is in a great shape.

Speaking to Dairy News after taking part in his last annual general meeting for LIC shareholders this month, McNee says the company has a great bunch of people, passionate about serving the dairy sector.

“It is and will always remain a very important part of the New Zealand dairy industry,” he says.

“LIC is a great company, the DNA of the New Zealand dairy industry.”

McNee joined LIC after his role as the first

Director General of the Ministry for Primary Industries (MPI).

He led the merger of the Ministry of Agriculture and Forestry, Ministry of Fisheries and the New Zealand Food Safety Authority.

“I wanted to move to the private sector after 18 years in the state sector.

“I wanted to work in the dairy industry as in my view it is the engine room of the New Zealand economy – it was then, it is now, and it will be for many years to come.

“While other sectors come and go, the dairy industry leads the way.”

McNee is proud of the contribution he has made to LIC and the contribution the co-op makes to

While other sectors come and go, the dairy industry leads the way, says outgoing LIC chief executive Wayne McNee.

the New Zealand dairy industry.

“LIC has transformed over the last 10 years into a modern, progressive cooperative.”

He lists the ongoing

investment LIC makes into R&D and the benefits that brings the sector – over 6% of revenue, the highest percentage of any established company in the New Zealand food

and fiber sectors. “Being a co-operative helps LIC have a long term focus – investing in science, which may not pay back for a decade, or may never even pay back – like our

research into genomics, low methane emitting cows, and heat tolerant cows.”

McNee says LIC has also invested in its people, with a significant investment in leadership development and skills training across LIC. “I leave LIC with a strong balance sheet and a company in great shape.”

McNee says he loved working with farmers, many of whom are straight shooters.

“Farmers don’t hold back: they tell you as they see it,” he says. “When we had software issues, they made their views known and I appreciate and valued their feedback.”

He also thanked LIC directors who he has

worked with over the years, especially chairman Murray King who led the board during McNee’s tenure.

“We haven’t always agreed on everything, but that is as it should be. The directors are appointed by the shareholders to set strategy, and management’s job is to deliver that strategy and to be held to account for that delivery.”

McNee insists that he’s not retiring. After taking a three-month break, mostly looking after his two young daughters as his wife is a full-time worker, McNee says he will look at new opportunities. @dairy_news facebook.com/dairynews

LEADERS IN SUSTAINABILITY WAYNE MCNEE says LIC is wellplaced to play a leading role in helping farmers meet sustainability goals.

He told Dairy News that the focus on sustainability provides a massive opportunity to add value to dairying.

McNee, who served on the Sustainability Business Council (SBC) board, was instrumental in the release of LIC’s first sustainability report.

LIC is part of the Climate Leaders Coalition, The Aotearoa Circle and the SBC. When joining SBC, members are required to introduce annual three reporting practices, which outline progress on environmental, social,

governance and economic issues.

McNee says the report meets those requirements from a business perspective, but it’s also an opportunity to demonstrate how LIC is responding to sustainability challenges facing farmers and the New Zealand dairy industry “As a farmer-owned co-operative and world leader in pasture based dairy genetics and herd management, we have a critical role to play in helping New Zealand’s dairy farmers meet their sustainability goals,” he says.

McNee says LIC exists to deliver superior genetics and technological innovation to help shareholders sus-

tainably farm a profitable animal.

“So sustainability is baked into our purpose.

“While many industries only recently began responding to climate challenges, LIC and its farmer shareholders began work over 30 years ago to improve genetic gain within the herd using genomics.”

The LIC Sustainability Report has information about its environmental, social and economic performance for the year ended 31 May 2021. McNee says LIC has made great progress on its sustainability journey, especially over the last four years.

Some of these are: ■ Record milk production in NZ

in 2019-20, without increasing cow numbers. An increased focus on efficiency means that cows around the country are better at converting grass into milk.

■ 1.87% reduction in LIC’s CO2 emissions change FY21 compared to FY20.

■ Launched indexes to rank artificial breeding bulls on their environmental efficiency.

■ LIC is working on a world leading methane research programme, investigating the link between methane emissions from bulls and their genetics.

Measuring LIC performance from a social perspective is a new feature

of the reporting.

Organisational Health Index (OHI) is a McKinsey tool which measures the impact of organisation practices and culture on performance against international benchmarks.

LIC is in the upper end of the second quartile of all tested companies by McKinsey worldwide.

The economic section of the Sustainability Report explains LIC is delivering value to farmer shareholders by investing in initiatives to help them breed the most profitable and sustainable animal.

McNee says LIC is committed to open and transparent reporting on sustainability.

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DAIRY NEWS OCTOBER 26, 2021

NEWS // 7

Another record milk price forecast!

SUDESH KISSUN sudeshk@ruralnews.co.nz

A NEW record milk price for this season has been forecast as dairy products fetch higher prices on the back of strong demand and softening supply.

ASB has responded to last week’s Global Dairy Trade (GDT) price rise by bumping up its forecast milk price for 202122 season by 55c to $8.75/ kgMS. If this forecast comes to pass, it will smash the previous record milk price of $8.40/kgMS set eight seasons ago.

ASB economist Nat Keall says GDT events over the first half of spring have shown no sign of demand softening.

And with supply continuing to look tight, ASB is comfortable making a sizeable upward revision, he adds.

He says Fonterra should also be around 80%+ hedged by this point in the season.

This means the cooperative could wind up with an effective exchange rate just north of the US$0.69 mark – a favourable exchange rate considering where NZ commodity prices are.

Keall cautions that there’s still a lot of uncertainty – commodity markets have been particularly volatile over 2021 thus far.

“Still, the trends over the beginning of spring suggest that the possibility a record farmgate milk price for the season is very much live,” he says.

Last week’s GDT results saw price increase

across all six products.

Benchmark whole milk powder (WMP) prices lifted by 1.5% cementing global dairy prices at very healthy levels. WMP prices have lifted a combined 6.7% over September and October, and now sit 25% above year ago levels. Taking a longerterm perspective, prices are around 20% above their five-year average.

But Keall points out that it’s not the headline moves that are key.

“The real story is that forward contracts point to prices maintaining momentum well into the latter half of the season.

“The GDT contract curve developed a sharpish downward slope over the winter, but spring developments have seen the curve flatten over the past few quarters with prices stabilising in a healthy US$3,700-3,900/ MT range.

“There will be further movement here as we head into summer, but the implication is that buyers expect supply to remain tight moving into the latter half of the season.

“On that note, it looks increasingly likely production will undershoot the expectations most of us held earlier in the year.”

Milk production in key dairy producing markets, including New Zealand, is down.

With steady demand, this is putting upward pressure on prices.

Westpac senior agri economist Nathan Penny expects ongoing weakness in global dairy production to continue to underpin global dairy prices.

New Zealand dairy

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production over August was down 4.2% compared to August 2020.

“In addition, anecdotes suggest that this production weakness has continued through September and into

October,” he says.

Westpac is forecasting a milk price of $8.50/ kgMS. “All up, the solid result and outlook reinforces our 2021-22 farmgate milk price forecast,” he says.

Lower milk production in New Zealand and steady global demand are helping keep dairy prices buoyant.

DAIRY NEWS OCTOBER 26, 2021

8 // NEWS

Winter grazing plan runs hot JESSICA MARSHALL jessica@ruralnews.co.nz

WINTER GRAZING

farm plans have proved more popular than ever in 2021.

An estimated 80% of dairy farmers had winter grazing plans as the season got underway in June and over 1200 farmers have completed the Beef + Lamb New Zealand (B+LNZ) Winter Grazing Module.

DairyNZ farm performance general manager Sharon Morrell says DairyNZ’s annual winter grazing consultation with

150 Southland and South Otago farmers highlighted the prep and good management practices in place this past season.

“Around 80% of dairy farmers had a plan last winter,” Morrell says. “But there was also a clear desire of farmers to go the extra mile.

“Plans help farmers think through and implement practices and contingencies that deliver good outcomes through winter,” she told Dairy News.

She says farmers can use an industry plan, through DairyNZ or B+LNZ, or a plan from

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the Ministry for Primary Industries (MPI).

“Planning for winter and wet weather is important to deliver good outcomes, especially when adverse weather arrives.

“We are all looking to continue lifting winter grazing performance, and using a wintering checklist and practical plan helps farmers, graziers and their teams do that,” Morrell says.

She says the sector is committed to collaboratively delivering winter grazing that protects animals and the environment. “This motivation is really evident this season and farmers are taking action and adopting new practices.

“Farmers are focused on delivering and encouraging others, and we are largely seeing good practices. Farmers are also expecting a team effort and to see assistance delivered for any farmers

DairyNZ says conversations with farmers have identified changes to reduce soil run-off, as well as smart ideas to graze strategically so drier parts of a paddock are available in wet weather.

who need it.”

Conversations with farmers have identified changes to reduce soil run-off, as well as smart ideas to graze strategically so drier parts of a paddock are available in wet weather.

Also identified was a need for farm decision makers to close the loop with the team managing

paddocks to help with day to day management.

“A farmer’s main priority is the cows and where they can lie. Farmers have been sharing with us detailed descriptions of what cows need and what the team looks for, so cows can rest in drier areas,” says Morrell.

“The feedback we’re getting from farmers is

they appreciate the practical farmer-led approach and we’ll continue to work across the sector, with regional councils and farmers on achieving positive outcomes across animal welfare, the environment and sustainable farming business.”

Morrell says she encourages farmers to review the past winter.

“Now is a good time to reflect on what went well and can be improved for next season. Look back over the last two winters – what were the wins and what needs improvement?”

Plan paddock selection and cultivation with those lessons in mind – think about how the system, including your team, coped this season, she says.

Having a written plan is a good start.

“It takes farmers through the key planning and actions prior to winter,” she says.

“When the plan is in place, the next step is ensuring it’s discussed with the team – farm teams need to know what the plan is and continue reviewing it each and every weather event throughout winter. It’s a live resource to keep working with throughout the winter.”

RABOBANK LAUNCHES COMMUNITY FUND RABOBANK HAS

launched a new community fund to invest in the vitality of rural communities in New Zealand.

The Rabo Community Fund is based on the international Rabo Foundation, the banking cooperative’s social fund, which has operated for more than 45 years investing in farmers’ self suf-

ficiency in a range of countries around the world.

The fund comes from an annual contribution from Rabobank New Zealand and Australia and has been launched with an initial $2.12 million, which will be invested in a range of initiatives designed to benefit rural and regional communities around New

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Zealand and Australia identified by the bank’s local Client Councils.

Rabobank New Zealand chief executive Todd Charteris says the bank is “very excited” by the fund.

“It’s not that we haven’t been doing this up until this point, but it actually dedicates a set amount and allows more transparency around that,” Charteris told Dairy News.

He says the four New Zealand Client Councils, which are made up of farming representatives from Rabobank’s client base, have been a useful tool since they were started a little over a decade ago.

“We set up our Client Council network a little over a decade ago and over this period we’ve worked alongside them to develop a number of initiatives related to rural community challenges,” Charteris says.

He says the Client

Councils have been helpful in the advice they give in decision making processes over the years.

“I get feedback and direction on issues that our clients are facing or opportunities that they seek, both from a business perspective but also from a community perspective.

“Now that we’ve actually got a dedicated fund, it just gives more certainty to some of those initiatives that we’re working with and we work on those together,” he says.

Charteris says the three initiatives that have been earmarked for funding – Financial Skills Workshops, Growing Future Farmers, and Surfing for Farmers – have already received funding in the past.

“We’ve been working on them for some time, it’s about how the new fund builds on that and a number of other initiatives that are already in play.”

The fund, like the bank itself, will operate under a cooperative structure where Client Councils identify and implement the initiatives being funded, while a five-person committee of Rabobank staff will oversee the performance and activities of the fund.

“We are a global cooperative, it’s important for us that we live and demonstrate those values and behaviours in our rural communities and engage with clients, making sure that what’s important for them should be and is important to us as an organisation,” says Charteris.

He says the fund is not intended as a grants program for individual farmers, but will be used to address wider challenges in agriculture and rural communities such as industry capacity, labour and skills shortages, and rural health.

– Jessica Marshall @dairy_news facebook.com/dairynews

DAIRY NEWS OCTOBER 26, 2021

NEWS // 9

Mark Laurence, DairyNZ’s lower North Island leader says lack of sunshine in some regions is hindering grass growth.

Rain flattens milk production PETER BURKE peterb@ruralnews.co.nz

IT’S BAD but it’s not terrible.

That’s how Mark Laurence, DairyNZ’s lower North Island leader, is describing the wet weather which has plagued dairy farmers in western regions of the country.

The wet and cooler weather in western regions is said to be a key reason why overall milk production across the country for August was down by just over 4%. But Laurence says while conditions are not good, the weather is not as bad as it was in the 2017-18 season.

He says the wet is right across the lower North Island, but says that Taranaki may be over the worst of it, while the Manawatu is still suffering.

“We have all been through years that are lot worse than this one.

What’s different about this year is that we have had three really good winters and springs in a row and we’re having to remember what a wet spring looks like,” he says.

Laurence says the word on milk production from farmers he’s spoken to is that it’s pretty static but this has

been generated by brought in feed.

He says for many August was not too bad but as balance day arrived everything was at tipping point.

“The expected warmth that would normally kick in hasn’t happened.

Essentially it’s about a lack of sunshine,” he says.

This lack of sun has meant that while covers in some cases may look reasonable, the quality of the grass is poor.

Laurence says this has resulted in farmers putting cows into paddocks where they thought there was “x amount” of feed, however the grass was not producing the level of nutrition that might have been expected.

“My feeling is that a week of sunshine would see the place explode,” he says.

But in the meantime farmers are feeding supplements out for two reasons, says Laurence – they want to retain milk production, but they are also conscious of the need to keep cows in good condition for mating which has already started in some areas.

“The two go hand in hand. By maintaining the milk production farmers are also making sure that the

cows are cycling and the results of a good mating will become apparent in the following year and will finally have an impact on the farm in about a years’ time,” he says.

The wet weather is not only affecting pasture quality.

Laurence says there is barely enough grass available to feed the cows and not enough to generate silage which would normally be cut at around this time of the year. The wet has also delayed crop sowing, which means they may be late and potentially lower yielding. He adds that wet ground has made it difficult to get machines onto the land to sow and harvest crops.

“Normally I would have expected cropping work to begin in early October, but with the delay because of the rain the whole season is being compressed.

“There is good advice out there to say you are now three or four weeks late then maybe you need a different variety of whatever crop, be it turnips or maize or something else, but there is only so much of that around. It’s all about a balancing act,” he says.

ALWAYS MIX CORRECTLY It’s a fact that 30% of the teat spray used daily on NZ dairy farms may not be mixed correctly.

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CHALLENGES LOOM AT A recent DairyNZ discussion group at Otaki in the Horowhenua, the small gathering of farmers all highlighted concerns about the lack of good quality staff for being available for the sector.

Some talked about it being one of the slowest starts to a season they have seen in a long time but all had kept their production up and their cows in good condition. There was also talk about the challenges of complying with the new environmental reforms.

This is backed up by DairyNZ lower North Island leader Mark Laurence who says he’s noticing a decrease in cow numbers with some farmers either selling their farms or reverting back to running beef. The challenge of carrying on and dealing with the compliance issues is simply too hard for some farmers.

On top of this Laurence says dairy farmers are starting to see rapid price hikes for some of their key consumables on farm.

“Feed, fertiliser and the cost of labour are going up. Every-

thing is affected by inflation, including fuel and power, and people are working out how to cope with this phenomenon. But staffing is a big issue for farmers and I know of people who are traditionally good operators now having trouble getting staff,” he says.

Laurence says farmers are just hanging in there at the moment. The main reason is the good payout. But he says if there was to be a substantial drop in this there could be real problems.

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DAIRY NEWS OCTOBER 26, 2021

10 // NEWS

New bottle sets milestone NEW ZEALAND’S

second largest fresh milk trader says its milk bottles will now be made of 30% recycled plastic.

Meadow Fresh claims this is a first for New Zealand mainstream, highvolume milk.

From last week, all Meadow Fresh one- and

two-litre bottles will be made of 30% rHDPE; this will reduce the amount of virgin plastic (plastic that has never been used before) originating from Meadow Fresh bottles by 250 tonnes annually.

With current global best practice for foodgrade HDPE recycling

enabling resource reuse of about 25% of recycled content, this step sets Meadow Fresh apart from other mainstream dairy brands in New Zealand, it claims.

Goodman Fielder New Zealand chief executive Bernard Duignan, says the move is an important

milestone for the business.

“We are thrilled to introduce a solution that provides consumers a choice to make a better impact on the planet… without impacting their wallets.”

The company says it is “designing for recycling”,

and a key feature of the new Meadow Fresh bottle is that it doesn’t contain white resin – allowing it to be recycled into new plastic bottles and other food packaging.

Professor Johan Verbeek, director at the Plastics Centre of Excellence and member of the Uni-

1961 - 2021

YEARS

INTRODUCING EZFEED

versity of Auckland’s Faculty of Engineering, believes the move is good for consumers and the planet.

“It is fantastic to see how the New Zealand industry is responding to their responsibility towards a circular economy for plastics.

“Designing packaging to fit with our current infrastructure is critical for improving recycling. The decision to remove white pigment is a very wise decision and certainly a big step in the right direction. This is certainly a

great example for other brand owners to show that including significantly more recycled content in the products is achievable,” says Verbeek.

Hustler’s brand new Silage Wagon Range ... which has silage feeding sorted!

ODH names farmer envoy

REASONS WHY

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TE AROHA farmer Gavin Fisher is the official

INDUSTRY

1 100% Roller Chains » With EzFeed gone are the days of troublesome link chains and

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3 TwinFeed » The first silage wagon to feature left or right hand feed discharge

1st

1st 1st

conveyor belts which require constant adjustment, fine-tuning and are often slipping or breaking disrupting your feeding program. EzFeed is the first wagon on the market to run a 100% roller-chain design to overcome this. And the Chains are covered to prevent feed material building up in chains, sprockets and driver ensuring longer life, less wear or stretch boards can take a beating from your front-loader without turning to splinters or dinging up your nice new EzFeed silage wagon. Another industry first from Hustler. for more feeding versatility. And with 5 positions for the discharge floor allows for easy setup when feeding into troughs. Coming soon is an electric in-cab controller option for on the fly feed direction change and hydraulic side-shift

4 Simple operation » As the name suggests EzFeed makes feeding silage easier

than ever before. As standard only one set of hydraulics is all it takes to connect and power the whole machine and our clever adjustable load-sensing hydraulics takes care of the rest making EzFeed the ideal wagon for lowskilled staff

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100% ROLLER CHAINS Say good-bye to troublesome link chains and conveyor belts!

EzFeed utilises 12,000lb roller chains on all floors, combined with the toughest bars on the market to reduce maintenance and downtime. We’ve also covered the main chains to prevent feed material from getting in sprockets or chains for even longer life.

For more information contact your local Hustler rep 0800 487 853 or visit hustlerequipment.com/ezfeed

TWIN FEED The first silage wagon to feature left or right hand feed discharge for more feeding versatility.

And with 5 positions for the discharge floor allows for easy setup when feeding into troughs.

farmer ambassador for Organic Dairy Hub (ODH).

Fisher has been a key figure in creating a shift towards organic farming in the dairy industry, paving the way for other organic dairy farmers after becoming one of the first farmers to supply Fonterra with organic milk.

ODH is New Zealand’s only farmer-owned organic co-operative. Its chief executive Clay Fulcher says with over 20 years of organic farming experience, Fisher is an expert in organic and regenerative farming.

“His role as ambassador gives us the opportunity to educate and advise our other farmers on best practices in these areas – with no cost to them.

“We expect that our farmers will see a vast difference through the rest of this farming season,” says Fulcher.

Fisher says he’s excited to get to work.

“ODH farmers are a passionate bunch. We believe we have a responsibility to our consumers to deliver what they want.”

DAIRY NEWS OCTOBER 26, 2021

NEWS // 11

Chefs help Fonterra carve out $3b global business DESPITE COVID

impacting restaurants, Fonterra’s food service business has reached a milestone to become a $3 billion annual revenue business.

Anchor Food Professionals (AFP), has 55 chefs working alongside global customers in their kitchens to match their needs with the co-op’s dairy innovation expertise.

For example, in China, over the past 12 months the AFP team has introduced more than 100 new applications for the beverage and dining channel and demonstrated 170 new applications for bakery customers.

The co-op hopes innovation and new products are key to future growth and will help it build relationships with up to 40,000 new customers over the next five years and up to 70,000 new customers in the next 10 years.

Fonterra’s director global foodservice Paul Harvey says the AFP team delivers solution in the kitchen of customers.

INNOVATIVE, TOP QUALITY PRODUCTS FONTERRA CHIEF executive Miles Hurrell says the success is down to the co-op’s strong connection to customers who value its sustainably produced, high-quality, nutritious milk and innovative products.

“It’s really pleasing to see this milestone be reached despite the impact of Covid-19 on restaurants and other out-of-home eating.

“Our people have worked hard to find new ways of working with customers and new product applications to suit the pandemic environment, and we can see this has been

Fonterra’s director global foodservice Paul Harvey says the Anchor Food Professionals team delivers solution in the kitchen of customers.

“To offer solutions we need to know what the problem is, and in many cases the issues are in the kitchen, and that’s where we are spending much more time with our customers who want our help,” says Harvey.

“We now have 55 chefs

around the world who go into kitchens like this where they also help their customers design new innovative products to address their problems.”

All new products require an intimate understanding of the science behind the application in

order to deliver the right functionality and performance for customers’ requirements. Fonterra’s Research and Development Centre (FRDC) in Palmerston North plays a pivotal role in bringing these products to life.

“Our FRDC team

works closely with our chefs in our application centres and with our incountry sales and marketing people around the world, where they refine some of these innovations for a customer’s specific need – often in response to new food trends,” says Harvey.

In Greater China, Fonterra plans to continue building on its success in the foodservice channel by expanding deeper into the larger cities. In South East Asia, it is applying what it has learnt from its

a success.”

Foodservice is a high value channel for Fonterra farmers’ milk and a key part of its long-term strategy.

The co-operative is aiming to increase milk solids into foodservice by approximately 50% by 2030 and grow its presence across further markets including Greater China, South East Asia and the USA. Hurrell says to support the coop’s growth to 2030, it intends to invest about $1 billion in moving milk into higher value products and increase R&D budget by 50%​.

Greater China business to customers in the region.

“In South East Asia, dairy is seen as a premium food and it also has a strong link to the growth in the consumption of western foods,” says Harvey.

“We are making the most of this growing demand in the region and in particular we are doubling down on Indonesia and Malaysia where the evolution of bakeries will see us expanding our reach into more cities.

“We are also devel-

oping new products that work well in recipes chefs can use in the growing number of on-line bakery stores. In other markets like the USA, where tariff barriers make it more difficult to maximise value from our foodservice channel, we partner with our IP, like we have with one of America’s dairy co-operatives, Land O’Lakes,” Harvey says.

Fonterra’s Foodservice business started forming in 2013 with the Anchor Food Professionals brand introduced in 2014.

NOMINATIONS OPEN FOR COUNCIL ELECTION SEVEN OF the 25 Fonterra Co-operative Council members have decided to retire from the council this year.

They are Luke Beehre (Northern Northland ward), Dean Adams (Cen-

tral Northland), Noel Caskey (Central Taranaki), Robert Ervine (Central Districts West), Sue Brown (Tasman), Michelle Pye (South Canterbury) and Simon Hopcroft (Western Southland).

Three other retiring councillors – Mike Montgomerie (Waipa), Don Hammond (Northern Bay of Plenty) and Mark Slee (Central Canterbury) – are re-contesting their seats.

Nominations from Fonterra farmers wishing to contest in the 10 wards close on Thursday, October 28.

Meanwhile two members of the Directors’ Remuneration Committee

are retiring by rotation. Stephen Silcock has indicated he will re-stand this year; David Gasquoine is retiring. Nominations for these positions also close on Thursday.

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DAIRY NEWS OCTOBER 26, 2021

12 // NEWS

Weather sinks milk production some dairy farms dropping out of the system and being converted to other uses such as horticulture, beef, dairy support and even lifestyle blocks.

It goes on to say that farmers appear to be easing back stocking rates and using less artifi-

PETER BURKE peterb@ruralnews.co.nz

THE WEATHER is play-

ing a role in the performance of the dairy industry this year, according to the ANZ Bank’s latest Agri Focus report.

The report, compiled

by ANZ agricultural economist Susan Kilsby, states that overall milk supply is expected to be compromised up until the peak of the season due to unfavourable weather.

The report says farmers, particularly those in western regions, have had persistent rainfall and cooler temperatures which has slowed pasture production, reduced cover levels and caused more pugging of pastures than usual. Dairy News recently reported exactly that happening on the West Coast of the South Island. The same situation has prevailed in the lower North Island.

The report says this has forced farmers to

cial fertiliser as the pressure comes on fron new environmental reforms.

It does say this will be partly offset by better cow genetics that will increase per cow production and the application of better farm management practices.

The report also says it

seems it’s becoming much harder to increase milk production. And its final prediction is that overall milk production is on the decline and will fall steadily over the next decade, making a one percent per annum fall in production highly probably.

MARKETS BALANCED

Susan Kilsby, ANZ says overall milk supply is expected to be compromised up until the peak of the season due to unfavourable weather.

resort to using more supplementary feed to keep cows in good condition until the weather improves. Mating season is foremost in their minds, notes the report.

The ANZ report says all this means that milk production for August

was down by 4.2% on last year when the weather was more favourable.

Again, the report says not too much can be read into the August figure given that production in this month is often variable. But since August, the poor weather has

continued in western regions, which may not bode well.

In regard to total-season milk production, Kilsby and her economic team is predicting that this will be down by one percent on last season.

They say this is due to

ON THE market side, the ANZ report says international global markets are relatively stable at present with demand slightly subdued. It says dairy commodity prices have improved in the past few months and supply and demand appear to be relatively balanced.

On a positive note the report suggests if the markets remain in balance, prices shouldn’t stray too far from current levels which it says bodes well for the milk price. That being the case, ANZ is forecasting the farm gate milk price to be $8.20/ kgMS for the season.

The quantity of whole milk powder (WMP) traded on the GDT typically peaks near October, says the report, but this year this is likely to extend further out. Interestingly

there has less been demand on the GDT from North Asian buyers – namely China – while demand from South East Asia has been better.

This leads onto the overall global economy and the report says the recovery is slowing. It singles out China, where it says economic growth rates are being revised down.

There is also a comment in the report which says the NZ$ is likely to strengthen and that this will curb returns at the farm gate.

The overall tenor of the report could be interpreted as quietly optimistic. What it doesn’t say much about is the potential for farm costs such as fertiliser, fuel and other essentials to rise due to rising freight costs, not to mention the potential for interest rates to also rise.

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DAIRY NEWS OCTOBER 26, 2021

WORLD NEWS // 13

Growing maize under biodegradable plastic has been underway for a while in the UK.

Starting maize under film has tangible benefits – research

ALWAYS MIX FRESH Iodine and Chlorhexidine should always be mixed and applied fresh each day for maximum benefit.

Mixing enough for a week may suit users but best protection comes from mixing fresh each day.

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MARK DANIEL markd@ruralnews.co.nz

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WHILE STARTING forage maize

under biodegradable plastic has been about for a while in the UK, particularly in marginal areas of the north and west, new research is showing that the practice can have major affects on both maize quality and financials.

Trials run by crop production specialists Hutchinsons in 2020 showed that profit margins could increase by up to $5,800 per hectare from improved crop quality and increased milk output.

The results showed a 4.4 tonne per hectare increase in total dry matter over a “conventionally” grown crop, with those results backed up over in Ireland, where Teagasc reported a 3 tonne per hectare increase in DM per hectare and a 6-10% starch advantage over conventionally grown crops.

Jim Clark, an agronomist at Hutchinsons, suggested that farmers should not get too hung up on fresh weight tonnages, but focus on overall feed value including dry matter and starch levels.

“Increasingly, growers in the UK use film at planting as an insurance policy, as it almost guarantees a half decent crop, regardless of weather or location,” says Clark.

“Starting plants off under film is akin to planting seedlings in a glasshouse – ideal for accelerating germination, better early growth and the ability to bring forward harvesting dates, which often take place during the onset of bad weather.”

Alongside an increase in quality and overall yield, the practice is also said to offer reduced soil erosion and protection against bird strike.

Alongside an increase in quality and overall yield, the practice is also said to offer: reduced soil erosion, protection against bird strike on emerging seedlings, a more consistent crop and the opportunity, from earlier harvest, to plant another crop before heading into winter.

The agronomist suggests that a discussion is needed to understand which varieties are best suited to the technique, alongside the timing of planting that, in most cases, can be brought forwards by two to three weeks.

The same applies to soil temperature, with the target for conventional planting normally around 10 degrees C, whereas crops germinated under film can be planted at around 8 degrees, as the film creates a greenhouse effect.

Clark points out that good seedbed preparation is essential, with any maize crop not favouring compacted ground. Noting that

maize is a “hungry” crop, he recommends a ph of 6.3 to 6.5, 10 to 15kg/ha of nitrogen in the seedbed at planting and a typical P and K requirement of 55kg and 175kg per ha respectively.

Growing under film also requires a good pre-emergence spray for weed control, so with most sprays being pendimethalinbased and effective for 3-5 weeks, there also needs be enough moisture under the film.

In practice, the film typically lasts about seven weeks before the maize starts to push through, at which point a post-emergence spray is needed to target late germinating weeds.

Starting maize off under film obviously has increased costs over conventional planting – typically $505 per hectare, made up of film at $451 and increased contractor costs.

The total cost of growing a crop (seed, film, sprays and fertil-

iser) is typically around $1,135, to which contractor costs (plough, subsoil, cultivate, drill, spray, fertiliser application and harvest) typically adds $943 per hectare, to give a total cost of $2,080 per hectare.

In contrast, outputs of 16, 18 and 20 tonnes per acre fresh weight, with maize valued at GBP35/tonne delivers gross margins of 314, 486 and 659 respectively. Looking at the costs benefits of maize under film, Pioneer P 7326 delivered 11.63 tonnes DM/ ha with an ME of 11.1.

The film grown crop of the same variety yielded 16.03 tonnes DM/ha and an ME value of 11.7. In terms of milk output, it was calculated that the open field crop would deliver 24,336 litres/ha, while the filmgrown crop would yield 35,381 l/ha.

With the average milk price for the 2020 season at $0.54 cents per litre, this delivers gross returns of $13,268 and $19,266 respectively. (*at time of writing 1GBP equals NZ$1.945)

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DAIRY NEWS OCTOBER 26, 2021

14 // AGRIBUSINESS

Genetics company seeks $3m NEW ZEALAND dairy

genetics company Tropical Dairy Group Limited (TDG) is trying to raise $3 million from investors.

TDG is the holding company and 100% owner of both Thermo Regulatory Genetics Limited and Dairy Solutionz (NZ) Limited, founded in 2018 and 2009 respectively.

The Ohaupo-based company started breeding tropical dairy genetics in 2008, and has fourteen private investors – many of them New Zealand dairy farmers.

Now, TDG invites wholesale investors to come aboard, allowing access through a nominee investment vehicle with a minimum investment amount of $10,000.

The private fund raising offer is being hosted

by Catalist – a new stock exchange designed for small to medium enterprises (SMEs).

The raise comes ahead of an intended public list-

SLICK GENE

Tropical Dairy Group chair Tim Heeley says New Zealanders have a great opportunity to invest in a world-first genetic solution.

ing in early 2022 on the Catalist Public Market.

Focused on developing heat-tolerant cattle in tropical climates, TDG’s genetics are sold into markets throughout Asia, the US and South America, said to improve animal welfare and help people in the world’s hottest areas boost food and protein security.

Chair Tim Heeley says this is a great opportunity for New Zealanders to invest in a world-first genetic solution, originating from the Waikato.

“TDG is a technologydriven, growth business.

Being a pioneering genetics company with a global perspective, coupled with a presence anchored in New Zealand, makes

us a unique investment opportunity,” he says.

“We are predicting good interest from dairy farmers as well as the wider New Zealand ag community.

“The investment should also appeal to people looking to fund solutions to global food insecurity issues linked to climate change.”

Colin Magee, Catalist’s chief executive says he is delighted to welcome Tropical Dairy Group to the exchange.

“It’s great to see TDG taking the next step in their growth journey by listing on a Catalist Private Market and we’re pleased we can help facilitate both capital raising and generating liquid-

ity for their investors,” he says.

“We hope this initial offer will help with their goal of a public listing on our licensed stock exchange early next year – it’d mean anyone in New Zealand, not just wholesale investors, could buy shares in this unique investment opportunity.”

TDG ANNOUNCED earlier this year it has bred the world’s first team of Jersey bulls that all carry the dominant “Slick” gene – meaning daughters of these bulls are certain to exhibit heat tolerant traits.

Cows with the Slick gene cope better in tropical climates, mitigating heat stress and improving milk production for countries with some of the world’s greatest deficits of protein.

To date, the Slick gene has been bred into Holsteins, Crossbreeds and Jerseys, leading to the TDG herd said to be the largest and most diverse slick-breeding herd in the world.

Following TDG’s planned 2022 public offering, investors will have the opportunity to trade TDG’s shares every six months in a secondary market on the Catalist exchange.

FarmIQ, AgResearch join forces TWO AGRICULTURAL software

providers are joining forces to create more value for pastoral farmers.

FarmIQ Systems and state-owned AgResearch have formed a strategic partnership after FarmIQ acquired decision-support tool Farmax from the SOE. AgResearch will now become a shareholder in FarmIQ Systems and a preferred provider of science and research going forward.

FarmIQ chief executive Will Noble said the partnership was long overdue as both organisations have shared the same vision for the agriculture sector since its inception from the Primary Growth Partnership in 2010.

“If we want to become the leading decision support platform of choice for all pastoral farmers in New Zealand, then having AgResearch as a shareholder and the Farmax product to our whanau, brings with it strong

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industry credibility and a vast amount of science to our software –it’s incredibly exciting for our farming customers and the industry as a whole”.

AgResearch director of technology and digital services Greg Rossiter says the decision was made as part of the CRI’s commitment to providing the agricultural industry with quality science and software-based decision support tools.

Going forward FarmIQ will invest

the capital and provide the infrastructure to take Farmax to the next level, which was not considered AgResearch’s core business.

“The partnership delivers our scientists opportunities to collaborate and strengthen relationships with key partners and FarmIQ shareholders,” says Rossiter.

Gavin McEwen, chief executive of Farmax views the partnership as having plenty of benefits for Farmax’s

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own customers “the business will continue to provide its standalone products and services to our valued customers”.

“Our goal is to unlock tangible benefits to all by improving interoperability and integration between both applications to make things easier, quicker and more accurate for customers.” @dairy_news facebook.com/dairynews

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To the dairy farmers of New Zealand wanting better returns from the China market…

Beyond “Value-Add”: A Roadmap to Building the “Tesla of Milk” You are invited to an online presentation by globally recognised China market experts Jane Li and Simon Page.

In this exclusive presentation, you will hear from the experts: •

Why China is still the brightest market for NZ milk and how a new era of growth is currently unfolding.

•

Why the decline of the China infant formula market is great news and how NZ dairy can capitalise – if we act quickly.

•

The two Chinese government initiatives that will encourage increased demand for milk nutrition over the next 10 years.

•

Which milk segments are showing the best growth outlook (hint – don’t jump on the plant milk bandwagon just yet.)

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Why the traditional NZ approach is outdated and the opportunity to build the “Tesla of Milk” from NZ in the next 3 years.

Plus •

How Li & Page opened 100 retail stores in their last China venture – and why that was only just scratching the surface.

•

Why the China milk nutrition story is such an exciting opportunity and how NZ dairy farmers can directly be a part of it.

Register your place now at RoadmapToChina.co.nz About the presenters Jane Li and Simon Page have spent a decade in the China infant and milk nutrition market specialising in direct-toconsumer business and retail. They have consulted for Goldman Sachs, Kantar Futures, Coleman, and various investment management firms across Europe and Asia-Pacific. The pair are regular contributors to local and international media and have been quoted in Financial Times, South China Morning Post, NZ Herald, Stuff, Newsroom, Business Desk, Rural News Group and NBR.

DAIRY NEWS OCTOBER 26, 2021

16 // OPINION RUMINATING

EDITORIAL

Is rural NZ still on their minds?

MILKING IT...

Control freak

Retail bully

Selective help

THE INSTINCT of the current Government to centralise control of everything is going to come a gutser when it comes to water reform.

The three waters reform has been pushed out of the daily headlines by a resurgent Covid-19, but Nanaia Mahuta’s asset grab hasn’t gone away. Luckily, three waters is meeting widespread opposition, not just from farm lobbies but also from many of the local government bodies who currently own and manage water assets – on behalf of ratepayers.

Milking It would like to think this pushback will stop Mahuta in her tracks, but she has signalled that Labour may just ram it through anyway. Their command-and-control style hasn’t worked with housing, poverty or with preparing NZ for Delta, so why would anyone believe it will work for water reform?

SHOULD NEW Zealand ice cream, cheese and yoghurt producers be worried?

Foodstuffs North Island, operators of Pak n Save and New World stores, has decided not to stock most of the frozen products from New Zealand fishing company, Sealord. Instead it is devoting more freezer space to overseas products.

What is stopping them from issuing a similar ultimatum to Tip Top, Goodman Fielder or Fonterra and opt for cheaper products from Australia and beyond?

The interesting thing is that Foodstuffs is making this bold move as the Commerce Commission carries out a market study, with allegations of anti-competitive behaviour by the supermarket chains. Watch this space.

THE GOVERNMENT is finally waking up to the fact that more health workers are urgently needed in the country.

To this end they are guaranteeing 300 spots a month for the health and disability sector.

The question now is whether the Government realises that vets are also urgently needed around the country.

Vet recruiters have been desperately seeking two – yes just two – MIQ spaces per week for trained overseas vets.

Not a big request but the Government is turning a blind eye to a sector that ensures the welfare of animals in this country. Makes you wonder where their priorities are. Not animal welfare apparently.

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Potty training for cows IT SEEMS potty training can help cows reduce emissions.

Researchers described this idea on September 13 in the online edition of Current Biology. Researchers in Germany described how a small herd of cows in Germany learned an impressive trick. The cattle use a small, fenced-in area with artificial turf flooring as a bathroom stall to pee.

Each calf got 45 minutes of what the team calls “MooLoo training” per day, says Current Biology.

“At first, the calves were enclosed inside the bathroom stall. Every time the animals peed, they got a treat. That helped the calves make the connection between using the bathroom and getting a reward. Later, the researchers put the calves in a hallway leading to the stall. Whenever the animals visited the little cows’ room, they got a treat. When the calves peed in the hallway, the team spritzed them with water.”

HEARTLAND NEW Zealand is the engine room of our economy.

It’s where our food is produced and processed and where hard working people live long distances away from even small towns and certainly big cities. It’s a place where facilities such as broadband and fancy coffee bars are nothing like what they are in the main centres.

In this era of Covid-19, health facilities are not always easy to access and it can take in some cases a day just to see the doctor or dentists, driving on winding gravel roads – no Covidshot buses in this part of the world.

At Prime Minister Jacinda Arden’s daily briefings we are constantly told about the need to get vaccinated and that there are places in the cities and suburbs that are waiting to give you the jab.

What is constantly missing from the Beehive is a mention of the essential workers out in the country and the need for them to get vaccinated.

When Covid arrived about 18 months ago, much was made about agriculture being an essential industry that would be the economic driver given that international tourism was on the wane.

No one disputes the need for city people to get vaccinated, but just a reminder to our mates in Wellington that unless there is a very high vaccination rate in rural NZ, the economy could come crashing down.

Dairy farms are desperately short of staff, so are the meat processing plants, orchards and commercial growing operations, and should Covid hit rural NZ badly, there is no backup.

Rural NZ seems to be left to its own devices to sort out the issue. Rural GPs are overworked and health resources overall are sparse.

A shout-out to the industry-good organisations, Maori iwi led groups and others who have stood up and got things in motion to get locals vaccinated. Maori are a vital part of the rural workforce and need to be encouraged and helped to get vaccinated.

The last thing they need is a small bunch of idiotic antivaxxers preaching pseudo-science and quackery on social media.

It’s time perhaps for the boys and girls at the Beehive to give a shout-out to rural NZ, which supplies the milk for their lattes and the salads and hamburgers for their lunches.

- Peter Burke

Publisher: General Manager: Editor: Machinery Editor:

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Dairy News is published by Rural News Group Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Rural News Group Limited.

WAIKATO SALES REPRESENTATIVE: Lisa Wise .......................................................Ph 027-369 9218 lisaw@ruralnews.co.nz WELLINGTON SALES REPRESENTATIVE: Ron Mackay ................................................... Ph 021-453 914 ronm@ruralnews.co.nz

DAIRY NEWS OCTOBER 26, 2021

OPINION // 17

Proud of another strong result LIC chairman Murray King spoke at the farmer co-operative’s virtual annual general meeting this month. The following is an excerpt from his speech, outlining LIC’s annual result.

WE’RE PROUD to pres-

ent another strong result for the fourth consecutive year. This result is in line with our market guidance and is a credit to our shareholders for their support of significant initiatives in the last five years to transform LIC into a modern, progressive co-op.

These initiatives have delivered the benefits we said they would, including focused investment in the business and a better return for our farmers.

There are some specific numbers I would like to cover: • Total revenue was $249 million, an increase of 3.4% from $240.9 million last year. This is from continuing operations only, so excludes the sale of LICA. • Net profit after tax was $22.9 million, up 31% from 17.5 million last year.

• Underlying earnings of $22.3 million, this is down 1.9% from $22.7 million last year after a one-off tax benefit.

• Total assets equal

$382 million, a 0.5% increase from $379.9 million last year.

• Dividend $17.8 million or 12.51 c per share, representing 80% of underlying earnings.

• Expected underlying earnings for 2021–22 are $19-25 million.

We’ve seen good growth across core business areas this year but particularly in our premium genetics range where young, genomically-selected bulls are used to fast track genetic gain and deliver more value on-farm through increased productivity and efficiency, including improved environmental efficiency.

That value combined with a solid dividend makes this result a winwin for our farmers. It also means we can continue our work to invest in products, services and technology that drive long term and sustainable customer value.

LIC’s premium genetics range accounted for almost half of the co-

ALWAYS MIX SAFE No more running out of teat spray in the middle of milking.

No more busy staff trying to measure chemicals when everyone is under pressure.

LIC chairman Murray King says the co-op saw good growth across core business areas this year.

op’s total artificial breeding (AB) inseminations (41.3% or 1.79 of 4.3 million semen straws), more than double three years ago. This is predominantly from the Forward Pack and A2/A2 bull teams – 1.6 million straws combined. It also includes sexed semen, which experienced significant growth with triple the number of straws sold on the previous year (110,125 vs.

33,804).

The number of dairy cows mated to sexed semen is set to double

this year (to around 200,000 up from 110,125 last year) as farmers look to capitalise on the technology.

To meet the increasing demand, LIC now houses the world’s biggest fresh sexed semen sorting facility in partnership with Sexing Technologies at our Hamilton headquarters.

This growth will have a significant impact onfarm this spring and deliver a huge amount of value to our farmers, with more high quality heifer

replacements and fewer bobby calves.

We’re expecting this to be even greater next year.

Meanwhile, the number of traditionally daughter proven bulls used for AB continued to decline, now down 40% from three years ago (1.2M straws in 20-21 vs. 2.02M in 17-18).

This shift reflects farmers’ growing confidence in LIC’s proprietary genomic work and a willingness to adopt new tools and solutions to help meet sustainability goals.

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DAIRY NEWS OCTOBER 26, 2021

18 // MANAGEMENT

Fonterra celebrates eight years of Living Water partnership Fonterra recently reached the milestone of eight years since it started working with the Department of Conservation (DOC) through the Living Water partnership, which helps identify and trial game-changing and scalable solutions that show dairying and freshwater can thrive together.

Launched in 2013, the 10-year partnership with DOC was built with a focus on driving change and finding solutions to improve freshwater ecosystems and increase biodiversity in agricultural landscapes. The co-operative has been working together with communities, farmers, scientists, and mana whenua in five selected catchments, reaching a total coverage of 35,000ha of land (that’s a bigger area of land than the entire nation of Malta).

The five catchments include: Wairua River, Northland; Pukorokoro-Miranda, Hauraki; Lakes Areare, Ruatuna and Rotomanuka, Waikato; Ararira River, Canterbury; and Awarua–Waituna Lagoon, Southland.

TO CELEBRATE, here

are eight milestones from the past eight years from the latest progress update: 72% of Fonterra farmers in these catchments are engaged in Living Water Living Water has now developed Farm Environment Plans for 72% of Fonterra farmers across the five catchments, an increase from 68% in 2020. That compares to 53% of farmers with FEPs nationally.

The Farm Environment Plans include actions to improve freshwater quality that are specifically tailored to the needs of the catchment the farm is located in.

48% of Fonterra farmers are implementing further improvement actions These steps demonstrated by Fonterra farmers go above and beyond current regulation to improve water quality. Farmers’ actions include riparian planting, installing sediment traps and treatment devices, improving fish habitat, and protecting and enhancing wetlands.

36 trials are currently underway or completed Living Water is tri-

Nga Kaitiaki O Nga Wai Maori completing a fish survey in the Wairua catchment.

Woodchip bioreactor to reduce nitrates being trialled for the Ararira River in Canterbury.

alling various tools and approaches that can be scaled up to help improve freshwater across Aotearoa. These include on-farm tools, catchment-based solutions, and addressing implementation barriers including funding, consenting, capability and waterway management.

An on-farm example is a woodchip bioreactor to reduce nitrates that’s being trialled for the Ararira River in Canterbury.

If successful, in-stream tools like this could be used in key areas around the country.

64 broader projects are underway or completed

Catchment scale projects, like the Waituna physiographics project (physiographics is a sophisticated mapping tool), have shown where to place interventions within catchments to enable them to be most effective. The locations of the peak run-off control structures being trialled in Waituna were directed by the results of the physiographics project, as well as identifying the most suitable locations to construct large-scale wetlands. In PūkorokoroMiranda, the Catchment Condition Survey and CAPTure tool helped provide similar informa-

tion, allowing the Western Firth Catchment Group to work together on planting steep banks where erosion has been causing sediment in a main waterway.

Nine successful solutions have been scaled to other sites or used by others.

Our trials have allowed the partnership to explore how to lower the cost of implementing different tools and solutions and how to achieve environmental outcomes at a catchment-wide scale.

52 partnerships are currently in place Over the past eight years, the Living Water collaboration has assisted

the development of 52 strong partnerships across Aotearoa.

Partnerships are important because no single organisation or sector has all the skills, knowledge or influence to improve freshwater: it requires more than just on-farm action. By partnering Fonterra is making it easier for farmers, iwi and communities to accelerate freshwater improvement.

One example is the partnership between DOC and the Department of Corrections through ‘Good to Grow’, which helps to rehabilitate offenders by giving them the opportunity to connect with land. Some of

the work includes removing pest plants, improving amenity blocks, and creating walking tracks in the Waikato Peak Lakes area.

That work is helping the local Ngāti Apakura iwi to plant its Pā harakeke/Rongoā (traditional Maori medicine) garden and Nature Education Trail at Lake Ruatuna.

10 projects are directly building iwi and hapū capacity and capability as kaitiaki Ten of the projects are directly building iwi and hapū capacity and capability as kaitiaki (guardians) for freshwater. One of these is the work with Ngā Kaitiaki O Ngā Wai Māori for the Wairua River, Northland, who,

for two years volunteered alongside Living Water staff doing the monthly water quality monitoring run to learn the methodology. They’re now paid to carry out the monitoring and undertake a twiceyearly fish survey within the catchment – creating employment opportunities Nearly 2,000 social media followers Project updates, lessons learned, and news are all shared across the Living Water social media accounts. Living Water now has 1973 followers to date, with an increase of over 400 followers in the last year alone. @dairy_news facebook.com/dairynews

DAIRY NEWS OCTOBER 26, 2021

MANAGEMENT // 19

Maize silage quality myths – are they fact or fiction?

MAIZE SILAGE is an

essential part of many dairy farm systems.

Research shows that yield is king, and for on-farm growers, the most profitable hybrid is almost always the highest yielding one.

However, for some farmers, there is an increasing focus on increasing the quality of their maize silage.

There are varied ideas as to how to achieve higher quality maize silage. It is important that we separate fact from fiction. This article looks to do just that.

Lower populations mean higher quality maize silage – fact or fiction?

Fiction. The thought behind this is that a lower population results in bigger cobs. Plants with bigger cobs must produce

higher quality maize silage than plants with smaller cobs. The first part of the statement is true. If you want big cobs, plant less seed. But if you plant less seed, you will also get bigger plants which have more fibre. Graph 1 summarises a New Zealand maize silage population trial. It clearly shows that as population went up, feed quality didn’t change.

Increasing plant population increased maize silage yield. More yield means lower cost feed.

Cob to stover ratio is all you need to worry about – fact or fiction?

Fiction. The most important drivers of maize silage quality are starch and sugar content and fibre digestibility. The more starch and sugar, the higher the energy value and the higher the fibre digestibility, the more the cow can consume. The cob is a mix of husk leaves, grain and cob core. The cob to stover ratio doesn’t take into account how much starch is in the cob or how digestible the maize plant is.

Hybrid choice affects silage quality – fact or fiction?

Fact. The work by the Pioneer research team in NZ shows distinct genetic differences in quality between hybrids. Simply

Many smaller cobs produce more energy per hectare than fewer large cobs.

put, some hybrids produce more grain (and therefore more starch) and have higher fibre digestibility than others.

Farmers wanting high quality silage can choose hybrids that have high ratings for starch and sugar and whole plant digestibility. Pioneer uses quality data collected from

Graph 1 Impact of population on maize silage quality

New Zealand maize silage trial plots to generate the ratings in their maize seed catalogue. Not every company has such a rigorous trialling programme in place.

There is no difference in starch availability between dent (soft starch) and flinty (hard starch) endosperm hybrids at silage making time – fact or fiction?

Fact. From time to time a company tries to sell their hybrid on the basis that starch from their hybrid is more digestible. Don’t believe them. A large number of independent trials have shown there is no difference in the digestibility or milk production potential of hybrids with differing endosperm types (hard or soft starch) at silage harvest time.

Cob size matters – fact or fiction?

Fiction. Cob size

has very little impact on maize silage quality. Desperate salespeople (who usually lack yield and quality data) will often produce cobs from the hybrid they are trying to sell to show that their cob is bigger (and therefore better) than the hybrid they are comparing it against. More important than cob size is the total energy harvested per hectare because that is the milk production potential. Many smaller cobs produce more energy per hectare than fewer large cobs Milky silage makes more milk – fact or fiction?

Fiction. Harvesting maize too early (e.g., below 32%) when the cob is milky results in significantly lower silage yields and slightly lower feed quality. Really wet silage can be difficult to ensile well and there is an increased chance of

run-off from the stack. As a plant matures toward black layer, the plant continues to lay down starch and this results in an increase in feed value.

The ideal harvest window for maize silage is somewhere between 32 and 38% dry matter.

Farmers can manage their maize to increase the quality of their maize silage – fact or fiction?

Fact. While hybrid and environment have a huge influence on maize silage quality, management of the crop can also play a part in influencing silage quality. Farmers can influence silage quality by ensuring the crop does not run out of water or nutrients, controlling weeds, harvesting at the optimal time and ensuring the crop is well ensiled.

• Ian Williams is a Pioneer forage specialist, iwilliams@ genetic.co.nz

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DAIRY NEWS OCTOBER 26, 2021

20 // ANIMAL HEALTH

Breeding is a family business GETTING COWS in calf

has become part of the family business for CRV artificial breeding technician Joanne Polglaze from Kaikohe in Northland.

She took on a career artificially inseminating cows after her husband David and son Matt were already working as technicians.

As breeding season gets underway around New Zealand, Joanne has been named CRV Technician of the Year for the Northland Region, inseminating over 3500 cows in the 2020 spring mating season.

Joanne completed her technician training with CRV in 2015, after watching David and Matt working as technicians and thinking to herself that she really wanted to try it out.

Now there is healthy

Joanne Polglaze, Kaikohe has been named CRV Technician of the Year for the Northland Region.

competition between the three of them.

“Competition is good.

We do compare notes throughout the season.

You’re always asking, how did your run go today?

How many cows did you do?” says Joanne.

“Other people would look sideways at us and think, ‘oh my goodness’.”

Joanne says she loves the challenge of working

with cows and her nonreturn rate of 74%, well above the regional and national average, suggests she is also very good at it.

David was her mentor after she did her initial

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do that. By day two of the training course, I was calling my son Matt and saying it was too hard. He said, ‘come on mum you can do it’.”

Joanne says Matt was thrilled when she was awarded technician of the year.

“For all of us when we go into the shed our priority is the cows and keeping things calm.

Cows are intelligent they can pick up your energy and they know. You need to be calm and quiet with them.”

They are not skills that everyone has but she urged anyone wanting to try out the role to give it a go. ing to work with as it training with CRV. The “It’s definitely become requires different thawing couple spent a season a bit of a family career for and straw handling proinseminating large herds cedures to avoid tempera- us,” says Joanne. of cows in South CanterIn New Zealand, proture fluctuations. bury, and another season “There has been a real fessionally trained AB on the Central Plateau which Joanne says helped trend towards using sexed technicians do the majority of inseminations. They semen, which helps to her advance her skills. are responsible for the reduce bobby calf numThe couple live on handling and inseminabers because farmers can their own farm in Kaition of semen. breed heifers, but you do kohe, where they have CRV has more than have to be slightly more contract milkers mancareful in your handling of 200 technicians across the aging their split calvFact 1. The overuse it,ofsosoluble P fertiliser is by far the largest country. we’ve been making ing herd, which reaches a Fact Once youinhave Olsen P levels are than AB more technician must a thi sure we have our practicesthatAn peak of2. about 280 cows understand animal anatright,” says Joanne. milk each season. environment. ensure correct While the job is now While they normally Fact 3. If you want to build up your soilomy P into an environmenta placement of semen in second nature to her, manage their own artifiin sustained fashion for says plants. the cow’s reproductive Joanne learning the cialabreeding runs, Joanne tract. The jobto demands skills needed to successsays they have been workFact 4. There is nothing to lose and everything gain. RPR-b skilful handling to ensure fully inseminate a cow ing together at the start (sulphur 90) is far more efficient than the excess sulphate in s the safety and well-being were harder than she iniof this season before the Fact 5. Following above P run-off and both the animal and tially thought.will greatlyofreduce Northland farms start to 1-4 the inseminator.

“I remember watchbreed their herds with of money! huge amounts thosein early more sexed Sexed ing David @dairy_news Fact 6. Itsemen. is nonsensical toingive to pressure to install expen days and thinking I could semen is more challengfacebook.com/dairynews

Cnr Robinson & McNally Sts, Ashburton Ph 307 9049 • Email admin@rainer.co.nz www.rainer.co.nz

DAIRY NEWS OCTOBER 26, 2021

ANIMAL HEALTH / PASTURE // 21

Crust-free effluent helps boost grass growth THREE YEARS ago a crusty effluent pond was

giving South Auckland farmer Adrian Raaymaker headaches.

Irrigating effluent onto paddocks wasn’t easy: irrigation systems got constantly clogged with sludge.

Effluent that Adrian managed to irrigate would remain on pasture for days and his 250 cows were hesitant to eat grass. The odour from the effluent pond was also becoming a matter of concern.

On a visit to the National Fieldays, Adrian saw an advertisement for BioMagic, from BioWorks Environmental Solutions. After a phone call, a technician arrived at his farm with 5 litres of BioMagic.

“He had a look at the pond and said we’ll trial the product: it worked and within days the crusts were gone,” Adrian told Dairy News.

“Now we put five litres of the stuff every month into the pond and there are no issues.”

The company says Biomagic is non-toxic and works with nature by promoting aerobic bacteria, enabling fast waste breakdown without any odour.

Adrian says the biggest benefit for him is that he doesn’t need to put fertiliser on the irrigated paddocks. Nutrients available in effluent help grass grow and animals can feed on the pasture days after spraying.

Adrian milks his cows on a system-1 farm: grass is the main feed and there is little boughtin feed. The herd does about 100,000kgMS every year.

He says good grass growth is the key to the farm.

“With liquid effluent providing nutrients to grass, there is no need to put any fertiliser on.”

Adrian says it’s very easy for effluent ponds to crust over, with a high level of suspended solids, drastically reducing pump-out volume. ​He says bad odours emanating from the pond and when spraying can lead to long delay before animals can feed on sprayed pasture. ​He says farmers need to get on top of it by treating their effluent pond monthly.

“This will allow farmers to irrigate most of the effluent, rich in nutrients, back into paddocks.

“It’s a no brainer, really.”

Treated effluent ready to be irrigated onto pasture.

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DAIRY NEWS OCTOBER 26, 2021

22 // MACHINERY & PRODUCTS

Stallion’s foray into fertiliser MARK DANIEL markd@ruralnews.co.nz

KNOWN THROUGHOUT

New Zealand for its innovative and robust calf feeding solutions, Stallion Plastics has never shied away from experimenting with the latest technologies, with the aim to make life easier and improve a user’s bottom line.

Designing, manufacturing and distributing agricultural products since 1984, Stallion’s introduction of a new product line sees it move in a different yet complementary direction, with a development likely to save farmers time and money.

Fert-500 is the compa-

Fert-500 is the company’s first trailed fertiliser applicator.

ny’s first trailed fertiliser applicator, designed to apply nutrients carried in suspension as a foliar application, recognising that reducing fertiliser inputs and improving utilisation will be a key

consideration for all NZ farmers looking to control overheads and meet environmental obligations.

Built on a durable and

robust galvanised steel frame with a suspended tandem axle layout, the Fert-500, as its name suggests, has a 500-litre spray tank, made from UV stabilised polyethylene.

As well as being ideal

for applying nitrogen post-grazing, the unit can also be used pregrazing for the application of lime flour or magnesium, carried in suspension. Offering a coverage of 3-5ha depending on application rate, the typical mixing time is between 5 and 7 minutes, while spreading width is 10 to 12 metres.

Carrying a two-year guarantee, the Fert-500 offers a recirculation function and a self-cleaning tank, with power provided by a Honda single cylinder engine, housed in a protected binnacle alongside all key controls. www.stallion.co.nz. @dairy_news

TYRE PRESSURE APP TYRE MANUFACTURER Mitas has upgraded its

tyre pressure app, adding new features.

It is designed to allow farmers to calculate and set the correct tyre pressure for agricultural equipment, depending on speed and loads during a range of operations, helping to increase machine productivity, reduce tyre wear and drive down costs.

Mitas suggests that maintaining accurate tyre pressures can reduce operational costs by over 20%, the result of better traction, less soil compaction, and reduced fuel consumption.

Mitas App users will also receive notifications with important information and updates so farm managers can stay on top of the latest news affecting their business, alongside helping to locate the nearest Mitas dealer The app, available in six languages – English, German, French, Italian, Spanish and Czech – is free for both Android and iOS devices. And can be downloaded free from the App Store or Google Play.

facebook.com/dairynews

Kubota Corp expands KVERNELAND GROUP, part of the Kubota Corporation, has acquired 80% of Italian company ROC, best known for its mergers/swathers.

Like other machines in the marketplace, the layout sees a conventional tine-based pick-up reel that lifts the crop onto grouper belts for central, left, right or split delivery.

If required, the machine can make further passes to move “grouped” swathes together to feed high powered self-propelled forage harvesters or large square balers.

The concept is said to be finding favour with increasing numbers of large-scale farmers and contractors, who wish to merge large areas of grass quickly, but also treat them more gently and avoid leaf shatter. This is important in crops like Lucerne or alfalfa, both traditionally grown in drier areas and with crude protein levels of up to 20%, making them valuable crops.

Compared to tine-based swathing or raking solutions that move crops laterally across the ground to

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KG 680 PLUG IN ELECTRIC

680KG TOWING CAPACITY

Offer ends 31/12/21 or while stocks last. Offer only available at participating Polaris Dealers. Not valid with any other offer. Excludes fleet clients. +Finance offer is only available on selected models. GST registered customers only. 24-month term contract.

20% Deposit required. Deposit may include Trade (Trade conditions apply). Fees and conditions apply (normal lending criteria applies) Finance is provided by Polaris Finance, a program operated by De Lage Landen Limited Company No 135515

MY21 CLEARANCE. STOCK IS LIMITED. 0800 440 290 | www.polarisnewzealand.com |

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DAIRY NEWS OCTOBER 26, 2021

MACHINERY & PRODUCTS // 23

Ez-Feed makes feeding a breeze MARK DANIEL markd@ruralnews.co.nz

SINCE HUSTLER Equipment took over Robertson Engineering in 2016, it has developed and improved well established products, incorporating the latest manufacturing and material technologies.

The last to see the designers’ pen and the engineers’ input is the SF Range of silage wagons, that now makes way for the EZ-Feed series. Recently launched in 11 and 13 cubic metre models, with bigger capacities due in the not too distant future, the EZ takes some detail from the well-known Combi series to cut a clean fresh look with the Hustler green and white colour scheme.

Featuring walking beam and tandem axle running gear, the units are designed for those feeding clamp silages, with the company drawing attention to the fact that EZ-Feed is the first wagon in NZ to feature 100% roller drive chains throughout.

This sees twin 12,000lb rated roller chains and box section bars used in the bed floor, beater/ elevator and discharge conveyor. Chains and sprockets

EZ-Feed takes some detail from the well-known Combi series to cut a clean fresh look with the Hustler green and white colour scheme.

are covered to prevent any build up of feed material, said to offer an extended service life.

The driveline features a sealed reduction gearbox powering the bed floor, alongside a directly driven elevator and discharge conveyor. All drives feature sealed bearings with

trash shields, with a centralised greasing point for the axles and any hard to reach nipples.

The Twin Feed discharge conveyor allows left or right-side discharge for greater versatility, with five positions for the discharge floor to allow easy set up for feeding into troughs, via the one

metre wide conveyor.

As standard, the machine only requires one double-acting remote valve from the tractor hydraulics, with an on-board load sensing system taking care of the load on the elevator and discharge conveyor to ensure there are no blockages.

Sure to win praise from users, the upper edge of the bin is fitted with rotationally moulded “greed boards” that help increase capacity and stop spills and are said to be virtually indestructible. They also remove the potential for splinters or large pieces of wood entering the ration, a problem often seen if wooden items are damaged by the loader.

Supplied “scales -ready”, the Hustler Feedlink weighing and feed management system connects wirelessly with a mobile phone or tablet in the cab to monitor weights of materials being loaded, and programmed to set discharge weights for different mobs of animals.

Several neat features improve the operability of the machine, including full-length, heavy-duty steel mudguards, the auto-release, removeable tailgate that protects against loads inadvertently being pushed rearwards, a swivel eye drawbar and a substantial parking jack. Options include the weigh system, an access ladder, improved lighting and extremity markers, hydraulic brakes, crash bar protection for the discharge conveyor and oversize tyres. www.hustlerequipment.com

Now offering a

3 YEAR WARRANTY* across the entire SIP range

*Conditions Apply

‘There’s Nothing As Smart As A SIP’

North Island - Gerry Clare 021 245 4471 Canterbury - Jethro Boakes 021 513 368 Southland/Otago - Scott Malcolm 021 228 4590

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