Payout trimmed as prices slide. PAGE 3 THREE-WAY BATTLE
CURTAINS FOR CARGOS End of production line. PAGE 22
Katie Milne vying for top job. PAGE 13
MAY 17, 2022 ISSUE 494 // www.dairynews.co.nz
TIME TO BID ADIEU Federated Farmers leader Chris Lewis to step down after 17 years of advocating for farmers . PAGE 5
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DAIRY NEWS MAY 17, 2022
NEWS // 3
Payout trimmed as prices tumble SUDESH KISSUN sudeshk@ruralnews.co.nz
Double whammy for goat farmers. PG.06
Jersey cow fetches $55,000. PG.14
Kuhn mowers go wide. PG.23
NEWS ������������������������������������������������������3-14 AGRIBUSINESS ������������������������������������ 15 OPINION ���������������������������������������������� 16-17 MANAGEMENT ��������������������������������18-19 ANIMAL HEALTH ���������������������������������20 SOUTH ISLAND DAIRY EVENT ���� 21 MACHINERY & PRODUCTS ���������������������������������������22-23
A RECORD milk payout for this
season remains on the cards – but breaking the $10/kgMS ceiling will be a stretch. Recent decreases in global milk prices seen on the Global Dairy Trade (GDT) have prompted processors and analysts to peg back their forecasts for the season, which ends in two weeks. Open Country Dairy, the country’s second largest processor, has shaved 30c off its May period payout – for milk supplied between February and May. ANZ has also taken 30c off its forecast farmgate milk price for the season to $9.30/kgMS. Open Country’s new range for the May period is $10.05 to $10.35/ kgMS. Last month, it was forecasting a range of $10.35 to $10.65/kgMS. In the previous settlement period, it paid suppliers $10.06/ kgMS – its highest ever payout for a settlement period. Dairy News understands Open Country’s average payout for the season is likely to be closer to $9.60/kgMS. Open Country chief executive Steve Koekemoer says recent GDT results reflect prices have reached tipping point. Whole milk powder prices have fallen almost 14% in the last four auctions. The price fall was not only limited to WMP, butter and cheddar prices have also plunged.
Open Country Dairy still expects to pay farmer suppliers over $10/kgMS for the May settlement period.
Koekemoer believes that China’s COVID lockdowns continue to impact short-term demand and create uncertainty. He says the impact is being magnified by other factors – such as the Sri Lanka crisis, Ukraine war and markets adjusting to where they expect pricing to land. “Our pricing expectation, however, was for some softening as opposed to the over 15% price reduction in WMP over the past month,” Koekemoer says. “Fortunately, we are at the end of the season where volumes are lower and the impact on milk price is somewhat reduced for the current season. We have reviewed the financial impact on balance of the season and have adjusted our forecast to suit.” Koekemoer says OCD’s adjusted price range for May settlement period is still an extremely strong
result for the season. “We should not lose sight of that,” he told suppliers. He expects milk supply to remain constrained across all large export regions over the next year. “Ongoing high global feed costs, a hotter than expected summer in the EU and drought conditions in the US will impact supply. “Many farmers, especially those overseas that are more reliant on external feed costs, will most likely see a larger reduction in supply as they reduce the high-cost inputs.” Koekemoer says the key will be managing through the volatility, disruption and timing of the demand side. He believes the long-term outlook is still very positive and “we should expect ongoing pricing to stay above historical values”. ANZ agricultural economist
Susan Kilsby expects prices to remain at elevated levels. However, she expects prices to fall further in the coming months but that low global milk supplies “will put a floor under the prices later in the year.” Kilsby says dairy prices have dropped sharply as demand across Asia has eroded by the wider economic implications of lockdowns in China. “We have revised down our farmgate milk price to $9.30/kgMS.” This puts ANZ’s forecast in the middle of Fonterra’s new forecast range of $9.10 to $9.50/kgMS. The co-op took 30c off its range midpoint due to a number of recent events which have resulted in shortterm impacts on global demand for dairy products – in particular, the lockdowns in China due to COVID19, the economic crisis in Sri Lanka and the Russia-Ukraine conflict.
DAIRY NEWS MAY 17, 2022
4 // NEWS
New season milk price forecast up in the air SUDESH KISSUN sudeshk@ruralnews.co.nz
SUCCESSIVE DROPS
in global dairy prices mean the next season’s opening milk price forecast is being trimmed back. ANZ has decided to slash 80c off its opening forecast for the new season starting June 1. The bank’s new forecast farmgate milk price is $8.50/kgMS, down from $9.30. ANZ’s agri economist Susan Kilsby says global risks are elevated and this is driving uncertainty. “The Ukraine situation is adding pressure to what
is already an overheated commodity market.” Kilsby expects dairy prices to fall for the next six months before stabilising. “There is considerable uncertainty about how supply constraints and waning demand will balance out in terms of price movements.” But Westpac is sticking to its 2022-23 forecast of $9.25/kgMS. “We still expect this dip in Chinese demand will prove temporary as this Omicron wave will eventually pass and Covid restrictions will thus ease,” says senior agri economist Nathan Penny. “Moreover, we have
Westpac senior agri economist Nathan Penny expects the dip in dairy prices to be temporary as the Chinese Omicron wave will eventually pass and Covid restrictions will thus ease.
already incorporated a moderation in prices into our forecast and the recent fall in the New Zealand dollar is also offsetting some of the global
dairy price fall.” ASB is also sticking to its forecast of $9.20/kgMS. The bank’s economist Nat Keall says its views is that the dairy market funda-
mentals still look pretty favourable to prices. Keall notes that local production here in NZ is down 5% year-to-date as of the end of March, while
global production looks likely to be flat at best this season. “Meanwhile, we expect demand in China to remain relatively robust despite the lockdown uncertainties, with security of food supply expected to be politically important ahead of this year’s party congress,” he says. “Notably, the both the contract curve and the futures market have a considerable upward slope at this point, implying that while buyers are well supplied in the nearterm, the present glut of WMP is expected to subside and competition for product will ramp up
again later in the year.” A more favourable exchange rate is also likely to help offset some of the recent trimming in prices. Keall says dairy prices aren’t going to stay this high forever, but for now, he’s confident of strong farmgate milk prices for this season and the next. “We retain both our forecasts for the current and upcoming season, with the shape of Northern Hemisphere production over the coming months looming as the next big pivot point.” Fonterra is yet to announce its opening forecast milk price for the new season.
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DAIRY NEWS MAY 17, 2022
NEWS // 5
Fed’s stalwart to step down SUDESH KISSUN sudeshk@ruralnews.co.nz
OUTSPOKEN FEDERATED Farmers leader
Chris Lewis is stepping down from the farmer lobby after 17 years of service. The Waikato farmer, a national board member and spokesman on immigration and labour issues for the past two years, will leave at Fed’s annual meeting in Auckland in early July. He is one of two highprofile Feds leaders to call it quits. National board member and spokesman on water and biodiversity Chris Allen is also stepping down. Lewis, a former chair of the Feds dairy section, says he signalled his intention to resign a month ago to national board. He has also offered to stay on as the spokesman on immigration and labour to help the new board member to transition into the new role. “These subjects are quite technical and I’ve offered to stay on and help out with the transition,” Lewis told Dairy News. “You just can’t expect the new person to get into the role, pick it up and run.” Lewis says stepping down a year before his
three-year term ends should also help the incoming board members. “Both Chris Allen and I thought the right thing is to stand down and let two new people in this year,” he says. “Next year, there will be a lot more elections: many years ago, we had six new people come into the national board and it took them almost a year to get their feet under the table,” Lewis says. Federated Farmers will hold its board elections next year when president,
eldest child was just nine months old. He says he developed a mantra of three F’s- family, farm and Feds in that order. “And along the way came the fourth F- fun.” Lewis says his stint with Feds has had both good times and not so good times. “We’ve had some challenging issues to deal with along the journey,” he told Dairy News. “Farmers are very tough masters; they are quick to let you Chris Lewis says he signalled his intention to resign a month ago to the Feds national board. know whether you have done a good or a bad job.” dency takes it to a whole STAYING RELEVANT Lewis says he decided new level. “I actually enjoy farm- before last Christmas to resign from Feds. CHRIS LEWIS believes he is leaving Lewis points out that a lot of ining, that’s my passion I an organisation, which is ready to dustry organisations like RSA clubs “I decided that I had have seen the role played serve farmers for another 100 years. and sport clubs have struggled in by Andrew (Hoggard) and run out of diesel in my He says Federated Farmers has recent times. tank. It’s time to look for Katie (immediate past continually made changes: a gov“The issue for Feds is how we resome fresh challenges.” president Katie Milne): ernance review is underway at the main relevant to our members and Lewis says he will they were off farm all the moment. they still keep paying us their subs always remain a big suptime. “We’ve done a lot of work on our “I think under this Labour Gov“I enjoy being with my porter of Feds. finances, our membership structure ernment every farmer, whether a He points out that wife and kids and decided and there are quite few projects member or not, has got a massive leaders and staff who have not to play second fiddle to make sure we’re still around for amount out of value out of the left the organisation are to them and pursue the another 100 years.” organisation,” he says. still in touch. top job.” Some have entered Lewis recalls being public service and others offered a Kellogg Rural says while being on the Asked why he didn’t Andrew Hoggard will step have gone into local and Leadership programme national board is time stay on and gun for the down at the end of his regional politics. when he joined Feds: his national presidency, Lewis consuming, the presithree-year term.
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DAIRY NEWS MAY 17, 2022
6 // NEWS
Double whammy for dairy goat farmers SUDESH KISSUN sudeshk@ruralnews.co.nz
DAIRY GOAT farmers are facing a double whammy: a sharp drop in milk payout and reduced quota to supply the country’s sole processor. One New Zealand Dairy Goat Co-operative (DGC) shareholder told Dairy News that the situation is “extremely dire”. The farmer, who wished to remain anonymous, believes many goat farmers won’t be able to ride the difficult times out. DGC has slashed the milk quota for its 70 sup-
pliers by 20% in response to a slump in sales of goat milk infant formula over the past three years. DGC’s biggest market, China, has been changing. Updated regulations governing the manufacture of infant formula in China has increased trust in domestically-produced products. This, along with a falling birth rate, have led to a drop in demand for imported infant formula. Covid-19 had only accelerated changes that had been taking place over the last two-to-three years. Sales of infant formula through the ‘Daigou’ channel – cross border trading by visitors and
The Dairy Goat Co-operative says shareholder suppliers supported a board recommendation to reduce milk supplied to the co-op in the 2021-22 season, with the potential to do so in the 2022-23 season as part of its response strategy.
international students from China – have also dried up over the past three years. This has left DGC with
a large inventory, leaving the farmer co-op no choice but to reduce milk supply quota. Poor sales have also impacted the payout, with one farmer claiming that the payout is down more than 30% this season.
“Unfortunately, not only have we lost 30 % in payout but we have also had our milk quotas reduced by 20% for this season and probably next season,” the farmer told Dairy News. “The true slump in
payout is more likely over 40% for this season and possibly could be the same for next season or even worse. “It has been indicated that next season will be much of the same as this season. That is, only being
able to send 80% of our quota on a low payout. “The future of dairy goat farmers is extremely dire and unfortunately many won’t be able to ride the difficult times out.” Dairy News understands that DGC directors received flak from farmers during a recent round of shareholder meetings. One large dairy goat farm in the Waikato was sold recently. The former owner has put 641 Saanen breed milking goats up for sale on Trade Me. When contacted by Dairy News, the goat owner said the payout had “crashed through the roof” after infant formula sales dropped in China. “It’s not a good story to tell.”
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DAIRY GOAT Co-operative chief executive David Hemara confirmed that, as it has done for many sectors of the economy, Covid-19 has created some challenging market and saleschannel conditions, which DGC is responding to. Hemara confirmed that in 2021, DGC shareholder suppliers supported a board recommendation to reduce milk supplied to the co-op in
the 2021-22 season, with the potential to do so in the 2022-23 season as part of its response strategy. “The DGC board of directors are all farmers themselves and are acutely aware of the challenges and stresses that reduced milk supply can create on farm,” Hemara told Dairy News. “They also know that acting decisively is in the best interests
of the co-op and its shareholder suppliers. “We expect that as we navigate this period, the payout will, in the short to medium term, be less than the very strong historical levels which have been achieved by the co-op. “We are confident of the role New Zealand dairy goat milk will continue to play in feeding the world.”
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inspection of the winter grazing season in Southland will start next month. Environment Southland acting compliance manager, Donna Ferguson, says the flights were an opportunity to see if the high levels of preparation observed during February and March cultivation flights are being followed by continued good practice. “Many landowners have undertaken a lot of work and planning to improve intensive winter grazing practices in the region and we hope to see it come to fruition during the next few months,” says Ferguson. “Environment Southland is col-
laborating with farmers and other agencies to improve wintering practices but will take compliance action, where necessary,” she says. Flights are planned for the start of each winter month and will follow paths guided by known areas of concern and incidents reported, as well as locations noted during the cultivation flights. Roadside assessments, which were introduced earlier this year, will also continue through the winter months. The compliance team will follow up on any issues identified during the aerial and roadside assessments. Anyone who sees something
they’re concerned about environmentally should get in touch with Environment Southland directly, it says. “We will then be able to assess the issues raised, provide advice and follow up with the landowner if necessary,” Ferguson says. “Providing advice and education is a high priority for the compliance team because our past experience has shown that the best outcomes come from working with others.” The compliance team will be accompanied by staff from the Ministry of Primary Industries, Covid-19 protocols allowing, to inspect the animal welfare side of winter grazing.
DAIRY NEWS MAY 17, 2022
NEWS // 7
Co-op rolls out e-commerce website The myNZMP store gives NZMP customers a personalised online buying experience.
SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA INGREDIENTS business has
launched a new global e-commerce website for customers. The myNZMP platform is a business-to-business platform where customers can find product information, gain insights that can help guide their purchasing decisions and manage and track their orders. It also offers NZMP customers a personalised online buying experience through myNZMP Store. Fonterra general manager digital transformation Francis Reid says the aim is the make Fonterra
“the easiest company in the world to do business with”. Reid says since myNZMP Store’s pilot launch, in September 2020 with a small group of customers, it has evolved month-on-month. Customer and employee feedback has helped to shape the platform. To date over US$170 million worth of product has been sold via myNZMP Store. “myNZMP is poised for significant growth,” he told Dairy News. “It will become a significant enabler of our Ingredients business over the next decade, helping to deepen relationships with customers, which is key to achieving our long-
term ambitions Reid says Fonterra’s Global Dairy Trade generates contracts and myNZMP is the next step to buy products online. “myNZMP Store offers a complementary service to GDT events, giving
customers the chance to buy dairy ingredients outside of set auction times,” he explains. “The goal is to give NZMP customers a seamless online to offline experience – being able to buy quickly online when
they want to, and access data and insights, but also the ability to tap into advanced ingredients support from NZMP’s experienced sales network when they need it.” Reid believes no business can ignore the
trend towards digital and e-commerce, and Fonterra is no exception. “Our customers want more convenience, more flexibility and more information to empower their businesses – and our Ingredients business,
NZMP, has delivered on that with myNZMP.” Reid says Fonterra’s long-term strategy aims to focus on higher-value ingredients targeting physical and mental wellness and immunity, with provenance and sustainability credentials offering a point of difference. He adds that myNZMP also frees up his sales teams to work with customers on unlocking the most value possible from advanced products. Reid says the focus for now is on rolling out myNZMP Store to as many customers as possible, with the support of NZMP sales teams around the globe.
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DAIRY NEWS MAY 17, 2022
8 // NEWS
Who dares wins: fighting M.bovis MARK DANIEL markd@ruralnews.co.nz
IN A move that reminded
everyone of the SAS motto, ‘Who dares wins’, Prime Minister Jacinda Ardern , Agriculture Minister Damien O’Connor and industry leaders met at MilkTest NZ’s Hamilton facility to announce a significant milestone in the efforts to eradicate Mycoplasma bovis. On the fourth anniversary of the launch of the plan to eradicate the disease that causes untreatable mastitis, swollen joints and lameness, resulting in lost production, alongside pneumonia and ear infections in calves, the Minister for Primary Industries (MPI) announced that only one infected property remained. M. Bovis was first seen in New Zealand in 2017, but likely arrived in the country at least a year earlier. Over the next four
years, a total of 271 confirmed properties were cleared, with around 176,325 cattle culled. To date, the eradication programme has cost the taxpayer around $600m, with $220.3 million paid in compensation for 2,741 claims, and 10 active claims still being assessed. O’Connor noted that in 2017, when the industry became aware of the incursion, he spoke with Irish counterparts who had already experienced the problem for many years. He recalls that many European countries said it was a problem they just had to live with, but Irish experts said, “If you have the chance to eradicate it, go for it”. Realising that leaving the disease to its own devices, like the European model, would have a major impact financially and in terms of animal welfare, MPI and key industry players such as DairyNZ and Beef + Lamb NZ formed the Myco-
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Prime Minister Jacinda Ardern takes questions from the media during her visit to Waikato recently.
plasma eradication programme. O’Connor says the make-up of the NZ dairy industry relies on a number of different parties, including producers, milk companies, manufacturers, exporters and retailers. “The way forward was with the agreement of the whole industry, so after reasoned debate, analysis and commitment, we went for it.” Whilst the programme
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has caused much division within the industry, particularly at the producer level, NZ has become the first country in the world that has succeeded in nearly eradicating the disease. Both Ardern and O’Connor acknowledged that it had been tough for those farmers who had lost their herds and, in many cases, a lifetime of genetics, but said their collective actions had preserved our productive sectors that underpin the prosperity of all New Zealanders. O’Connor accepted there had been some logistical problems in the early days of the programme and it is likely some cases of the disease will still emerge. With that in mind, he said it was time to consider the future framework for an ongoing M. bovis eradication programme. MPI is working towards a transition of the programme to an agency under the National Pest Management Plan (NPMP) that
will open for consultations in the second half of 2022, with implementation in 2023. “We are aiming to move from delimiting/ controlling the last few pockets of the disease, to provisional absence,” says O’Connor. “This will be followed by significant surveillance testing of herds around the country to provide the
assurance that there are no undetected pockets of the disease.” He went on to note that NZ had world-class bulk milk and beef herd testing strategies developed over the last four years, which will continue to be used as crucial tools to fight the disease. The National Beef Surveillance programme tested over 385,500 animals in 2021, with no infected properties found. By contrast, the Bulk Tank Milk screening initiative conducted 99,000 ELISA tests in 2021 with 179 detections and three confirmed infected properties. Dairy NZ chairman Jim van der Poel says the decision to eradicate M. bovis was a big ask, but the right call. “The programme, at times, has been challenging for the farmers involved and it’s important for us to acknowl-
PREPARING FOR INCURSIONS DAMIEN O’CONNOR also announced a bolstering of New Zealand’s biosecurity measures as part of the upcoming budget. This includes $42.9m to bolster the country’s readiness for possible future pests or diseases, alongside $68m over the coming year to continue M. bovis eradication momentum. It is unclear if this latter amount is new funding, or part of that set aside to fight the disease, which saw an initial commitment back in 2018 to spend up to $870m. O’Connor noted that with NZ primary sector revenue heading towards $50.8bn in the year ending June 2022, it is vital to ensure the sector is protected by a strong
biosecurity system. “We need to ensure that the system can meet the challenges presented by increased cargo freight and pests such as the Brown Marmorated Stink Bug. “Much of the work is conducted offshore, before arrival at our physical borders, domestically, as it crosses those borders and through our trade. “As much risk as possible is managed offshore, enabling trade to flow, with all goods, craft and passengers that do cross the border screened for risk, alongside many activities within NZ to eradicate pests and reduce their harm, “ O’Connor said.
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edge that. “The programme means we are on a clear pathway forwards and offers a good example of an industry and government working together to get the best result. It is also important that we protect those sacrifices and investments made, so all farmers should continue to manage their herds well, particularly through the use of the National Animal Tracing System (NAIT).” Leigh Colman Shaw of the M. bovis programme confirmed that NAIT compliance monitoring was still a key component to ensure the health and traceability of the national herds, noting there were 18 prosecutions, 1,824 infringement notices and 2,432 written warnings issued in 2019, while in 2022, so far those numbers are one, 527 and 489 respectively.
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DAIRY NEWS MAY 17, 2022
NEWS // 9
ENSURE THEY REACH THEIR PEAK POTENTIAL Attendees at the Lincoln University Demonstration Dairy Farm field day.
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Battle of wearables IT WAS the battle of the wearables at the
recent Lincoln University Demonstration Dairy Farm Focus Day with presentations of three different electronic monitoring and management systems. Attendees heard of the capabilities and benefits of Allflex’s cow collars, Senztag’s cow manager ear tags, and Halter’s collarbased farm management system. Of the three, the Allflex collars and cow manager tags aim to monitor animals’ behaviour and vital signs for early warning of problems or changes such as heat onset. Halter’s collars go a step further, using audio, haptic and electric cues to control the cows’ behaviour and movements. Stephanie Voice, Allflex national training coordinator, said the three main reasons for monitoring were heat detection, health issues, and nutrition. She said the Allflex collars were like Fitbits for cows, with multiple accelerometers which every minute of the day monitor force, movement, and position. They can tell the difference between a range of behaviors such as eating, ruminating, and heavy breathing. “It tells us when an animal is ready to be bred. It tells us if she needs help urgently and it tells us if she is declining slowly in health. And from a nutritional point of view, it gives us information about our feeding efficiency, our operational efficiency. “It can, if we want it to, send us alerts to say that our cows are running down the road towards Springston, and we should go get them back.” For heat detection, she explained that every animal had her own baseline but a drop in rumination and peak in activity would show when she was ready to be bred. “Typically the biggest improvement that we have in the first year is in threeweek in-calf rates.” Jared Bekhuis, general manager of Senztag, the company which markets the cow manager system, said the founder started with collars 35 years ago but changed to an ear-tag sensor model in order to directly measure the animal’s ear temperature. The tags have dual sensors which monitor blood flow through the ear. Bekhuis said the tags detect various behaviors - eating, detected by specific movements of the head and jaw; rumi-
nating, which in cows, sheep and deer is accompanied by a particular type of fluttering of the ear; and activity, whether inactive, normal, or highly active, which could denote bulling. The data is presented to the farmer in modules including fertility, health, nutrition and a KPI indicator. “We’ve seen an increase of six-week incalf can carry by about 8% and decrease in empty rate of 5% on average.” Bekhuis said rumination is the big indicator of cow health but Cow Manager adds the ability to correlate rumination changes against ear temperature, comparing it not just with the herd’s average temperature but also against the cow’s own historic data. “We do know what mastitis looks like, we do know what milk fever looks like, we do know what ketosis looks like. Ketosis is very, very easy to pick up due to the pattern that that cow dictates.” With the nutrition module, Bekhuis said the system can monitor whole herd behaviour so that when, say, 10% show a reduction in eating, it correctly identifies that feed has run out, rather than throwing up a lot of individual health alerts. For Halter, the big selling point is the time saved by managing break-feeding with virtual fences, with cows’ movements being controlled by solar-powered collars though sound and vibration, and electric shock as a last resort. Business development executive Theo Beaumont said unlimited solar power was “the secret to everything” because instead of taking “little sips” of data Halter provides about three million data points per day per cow, and it allows GPS to run 24/7. It also allows the product to be as updateable as a smartphone, he said. “If we add an algorithm to our heat model, for example, instead of waiting two years, three years for us to build another piece of hardware and you have to buy it all over again, we hit a button in our Auckland office and all of the collars out the field will just remotely update.” Halter provided leased hardware, with the software being consistently upgraded with new features, he said. Beaumont said the collars work essentially by weaning cows off the cues they usually get on farm – such as a worker arriving on a quad bike to say it’s time to move – and introduces them instead to the cues the collar gives them. It takes only about two to five days for them to learn, he said.
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DAIRY NEWS MAY 17, 2022
10 // NEWS
Seeking better outcomes for farmers and NZ JIM VAN DER POEL
DAIRYNZ IS fighting
for an emissions pricing solution that’s fair and
ensures you can continue running profitable and sustainable businesses. We’re using your feedback now to strengthen two alternative emissions
pricing options developed by the Primary Sector Climate Action Partnership (He Waka Eke Noa). Government has legislated it will put agricul-
ture into the Emissions Trading Scheme if we don’t come up with a better alternative. So, doing nothing is not an option and we fought
hard with our industry partners for the opportunity to come up with a better solution. All 10 primary sector organisations in the
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13-member partnership, including DairyNZ, Beef + Lamb NZ, Dairy Companies Association of NZ, Federated Farmers, Horticulture NZ and Irrigation NZ, are speaking up for our own members and seeking a solution that works for everyone. Following your feedback, we’re doing everything we can to drive down the administration costs of the He Waka Eke Noa options, as far as practically possible. It’s vital you can continue running successful businesses while we work as a whole sector to reduce emissions, alongside all sectors and Kiwis. There will be ongoing discussion and debate on this subject because there’s a lot at stake. Agriculture going into the ETS would not bring positive outcomes for farmers or New Zealand. The ETS would be a broad-based tax on farmers going up every year and would not reduce emissions. We believe the options we’re streamlining now, thanks to your feedback, are effective, credible, fair and scientifically robust. DairyNZ represents farmers with the world’s lowest carbon footprint – that’s down to the hard work of our farmers over many years. Now, we want to remain internationally competitive – as our biggest customers like Mars, Nestle and McDonalds increasingly seek sustainability assurances. Strong farmer feedback Your feedback from the DairyNZ and B+LNZ
roadshow is resoundingly clear – 99% don’t want agricultural emissions priced through the ETS. You want a system that is cost-effective, fair and recognises the actions you’re taking to reduce emissions behind the farm gate. We’ve heard you want control over your farm emissions and farm management. You’ve expressed a strong preference for the farm-level levy option, so you’re recognised and incentivised for on-farm actions. We’ve also discussed starting with the processor hybrid levy and transitioning to a farm-level levy as soon as possible. You want transparency over where the money is going and proof of an effective plan to deliver technology to farmers. We’ve heard you support the recognition of a wider range of on-farm vegetation not eligible in the NZ ETS. What happens next We’ll keep working to make sure the partnership’s recommendation to government, due May 31, reflects what you’ve told us. And we’ll keep sharing dairy farmers’ voice when the Government releases their final proposed agricultural emissions pricing design for public consultation in August. That’s another opportunity for you to have a say. It’s vital we have a system that works. That’s why we’re working so hard to get this right. • Jim van der Poel is DairyNZ chair
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DAIRY NEWS MAY 17, 2022
12 // NEWS
Former DairyNZ regional leader joins ag consultancy firm DAIRY PROFESSIONAL Rob Brazen-
dale has joined Perrin Ag as the consultancy firm looks to strengthen its support of farmers and growers. Brazendale was DairyNZ’s regional leader for the Lower North Island before he took up the new role. With 30 years of experience in the dairy sector, Brazendale will be based in Palmerston North and work with farmers around the country. Brazendale says he’s in a unique position to help farmers more than ever. “I’ve been in agriculture a long time and my work has been varied: farm advisory work, farm management research, rural banking, and dairy
farm systems development. “I also run a lamb and beef finishing operation in the Manawatu. So, I have a good understanding of farming, from milking cows and shearing sheep to the regulatory process in Wellington. “I enjoy working oneon-one with farmers, but I’m more useful in a role where I can help shape the policies that affect farmers throughout the country. That’s what I’m looking to do with Perrin Ag.” Brazendale says the Government wants to implement changes for the good of the environment and the country. “I know some of the people at that level – I’ve worked with them before
“I have a good understanding of farming, from milking cows and shearing sheep to the regulatory process in Wellington.”
Rob Brazendale.
– and they really are toiling with good intentions. “The challenge they face is understanding how their policies impact the wider farming system. “Here’s an example.
When a government ecologist looks at a freshwater situation, they’re seeing the issue almost exclusively through that ecological lens, which makes sense.
“What they often don’t see are the domino effects their proposed changes could have beyond the immediate freshwater issue. That’s what frustrates farmers – when
well-meaning policies are unworkable or make farming less competitive. “Part of my job is to bridge the gap between these worlds – to bring the on-farm perspective into the policy-making room, and vice versa. If that can be done, the environment can be respected, and farming can be sustain its profitability. New Zealand needs both.” Perrin Ag managing director Lee Matheson values Brazendale’s successful track record in
senior leadership, along with his exceptional technical knowledge and communication skills. “He will be instrumental in helping us grow our business in the Rangitikei, Manawatu and Hawke’s Bay, so farmers and growers in those regions can reach their full potential,” he says. “He will also be an asset to our firm as a mentor to our growing team of rural professionals and as someone with strong banking and industry connections.”
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DAIRY NEWS MAY 17, 2022
NEWS // 13
Katie Milne eyes WFO presidency SUDESH KISSUN sudeshk@ruralnews.co.nz
WEST COAST dairy
farmer Katie Milne is vying for the presidency of the World Farmers’ Organisation (WFO) Milne, the first woman to serve as Federated Farmers national president, is in a three-way battle for the job. She has been a member of the WFO board for the past four years and serves as its treasurer. Milne told Dairy News that, over the years, some farmers from all over the world had suggested that she should run for the presidency. The WFO, made up over 70 national farmer organisations, will chose its new president at the general assembly in
Budapest, Hungary next month. If successful, Milne will be the first elected president from New Zealand and the second woman chosen for the role. The first woman elected to the WFO presidency, Zambia’s Evelyn Nguleka, passed away in 2017. Then-president of Federated Farmers, Dr William Rolleston, was appointed interim president until new election. Milne announced her candidacy from the milking shed at Rotomanu where she milks 200 cows. “I have decided to throw my hat in the ring for the presidency of the WFO,” she says. “It’s a pretty big job, pretty important job at the moment given all the pressures on farming
– whether it’s livestock farming, the supply chain or fertiliser prices. “I thought, I’ll put my hat in the ring and offer some more options for farmers around the world.” Since stepping down as Feds president, Milne has served on a range of farming-related boards and national and regional advisory committees. She serves on the board of Crown entity Predator Free 2050 – which is tasked with the ambitious task of eradicating possums, stoats and rats by 2050 – and the Todd Foundation. She also chairs Predator Free South Westland. Milne received the Dairy Woman of the Year Award in 2015. She says the WFO’s role is to be the farmers’ voice and advocate on
their behalf at high levels. She hopes to bat for the livestock sector which she claims is taking a hiding from those who advocate for plant-based proteins. “All farming types have a place in the world: working against livestock farming can endanger food security.” Milne, who will attend the general assembly next month, will be up against current vice president and French farming leader Arnold Puech D’Alissac and French Canadian farmer Marcel Groleau.
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Katie Milne is aiming to be the first New Zealander elected to the top position.
DAIRY NEWS MAY 17, 2022
14 // NEWS
China lockdowns hit dairy demand PETER BURKE peterb@ruralnews.co.nz
COVID RESTRICTIONS in China are
likely to slightly dampen milk powder imports into that country, according to Stefan Vogel, Rabobank research general manager for Australia and New Zealand. He says the spread of the Omicron variant and
China’s “dynamic zeroCovid” policy were also bringing strong headwinds to consumption in the country’s food service sector and this was playing out in reduced dairy demand. Vogel says current strict lockdowns in many major cities in China – as the country tries to eradicate the spread of Covid – are not only affecting its local citizens, but also
having flow-on impacts on trading partners, including NZ. He says these include logistics, corn plantings and dairy demand. “Dairy demand in food service is slowing in China while, according to our calculations, dairy products in China produced from imported Oceania whole milk powder (WMP) are now more expensive than
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those from locally-produced dairy for the first time in eight years,” he says. Vogel says the alreadystressed global container logistics situation is becoming more complicated due to massive delays around the Shanghai Port. He says it looks likely that the massive ongoing Covid lockdowns in China will add to continued container logistics issues and keep container freight prices well above historic levels for 2022 and also likely to remain elevated well into 2023. Meanwhile in NZ, Rabobank is expecting a wide range of milk price forecasts for the coming season. In a recent report the bank says global dairy commodity prices present a mixed bag as demand weakens. They say the ‘fog of war’ is clouding forecasts and there is more risk than usual at this time of the dairy cycle. The report notes an overall drop in milk production of 2% against this time last season, but says the world-wide trend in milk production at present is ‘underwhelming’ and that this may benefit NZ in the short term. The report also notes that global vegetable oil prices are rising due to the Ukraine war and various protectionist moves such as Indonesia’s ban on palm oil exports. @dairy_news
JERSEY COW FETCHES $55,000! A THREE-YEAR-OLD Waikato Jersey is claiming to be New Zealand’s highest priced dairy cow, toppling a record that stood for 50 years. Two weeks ago, retiring Tauwharebased breeders Dick and Faye Post offered their herd of 265 cows and 85 in-calf heifers in a dispersal sale conducted via online platform bidr®. One of the cows sold for $55,000, purchased by an Otago farmer. PGG Wrightson national dairy genetics co-ordinator Andrew Reyland offered the herd, which the Posts established in 1960. He said it was one of the most productive in the country. “This herd consistently averaged more than 400 kgMS per annum of milk solids, equating to more than 1,900 kgMS/ha. “Much of this performance has gone under the radar for many years. These are good solid cows with a proven shifting ability from surplus females sold over the years,” says Reyland. “Dick and Faye have always been deeply committed, using nominated sires to breed big-capacity Jerseys with functional udders as well as good structure and fertility,” he said. As well as the $55,000 cow, the
Otago purchaser also bought the recordbreaker’s dam for $23,100. Meanwhile a half-sister, from the same dam, fetched $23,400. Reyland said they share special characteristics. “This line had slightly different genetics, which made them more interesting to buyers. “Sired by an A2 bull who transmits high components, the record breaker has excellent production indexes on her maternal line and recorded an udder score of 8-8,” he says. In total the Post’s in-calf heifers averaged $3,347, while the cows averaged $3,240 and 131 unique buyers tuned in to bidr over the sale’s three day duration. Farmers purchasing the cows ranged from Kaitaia to Invercargill. Reyland says Dick and Faye Post’s was one of several successful recent dairy clearing or dispersal sales around the country. “An excellent payout has put the dairy scene in good heart, rewarding vendors well, and establishing stern competition for sought after genetics,” he says. Prior to the new record New Zealand’s long established highest price dairy cow was a Holstein Friesian.
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DAIRY NEWS MAY 17, 2022
AGRIBUSINESS // 15
Rising up to the challenges The New Zealand dairy industry is facing one of its biggest challenges in years with a labour shortage, rising on-farm costs, unpredictable and damaging adverse weather events and global markets hit by geopolitical crisis and Covid. In a special series our reporter Peter Burke talks to some key players in the dairy sector to get their views on what the dairy sector may have to do to retain its competitiveness. DR DANNY Donaghy
is professor of dairy systems at Massey University and a specialist in pasture agronomy and physiology. He’s originally from Australia where he completed his PhD at the University of New England in New South Wales, with a focus as on grazing and harvest management, and how to manage forages within diverse farming systems and climate change. Before coming to Massey in 2012 he was Dairy Centre Leader with the Tasmanian Institute of Agriculture, with responsibility for leading and managing Tasmania’s dairy research, development and extension. Donaghy says Covid has exposed a number of issues that have been ticking away in the background and have helped create the perfect storm the dairy industry is facing. He says there are a multiplicity of issues besides Covid such as the war in Ukraine, adverse weather events, climate change, market and price volatility and the shortage of labour on the farm.
At Massey’s No. 1 dairy farm, once-a-day milking is now in its 8th season with little drop in production. Inset: Danny Donaghy.
Putting on his plant scientist hat, Donaghy says there’s a need for exploring greater resilience at the paddock level, looking at species other than ryegrass and white clover and also looking at water use. He points to the concept of ‘deficit irrigation’ which
was looked at in Tasmania and is now used widely in horticulture. He says it’s a system that will not work in all regions. Essentially it is about applying just enough water to keep a plant growing, but not wasting any water and using it wisely. “It is certainly something we could look at,” he says. Donaghy says another area that could be looked
at more closely is once a day (OAD) milking. He notes that at Massey’s No. 1 dairy farm, OAD is now in its 8th season with little drop in production. “We believe we have got a system where you can start identifying animals before switching to OAD and work out the animals that will suit or not suit a OAD system. One of the problems going OAD is that
it doesn’t suit every cow, but the secret is to identify those cows beforehand and you trade them off as perfectly good twice a day cows . The option then is to buy-in cows based on the OAD index and then your own OAD cows as well,” he says. Donaghy says using the index system takes the worry out of losing production when moving to OAD.
DIVERSIFICATION MAY HELP ANOTHER VIABLE option for dairy farmers is diversification. For example, some Māori dairy farmers in the Eastern Bay of Plenty and in other parts of the North Island have taken to planting small acreages of land in crops such as kiwifruit and citrus. This is seen by them as providing an alternative income source to dairy and also offering employment opportunities to whānau. Donaghy says the NZ dairy industry has become quite specialised over the decades as have some other countries. But he says in other parts of the world the industry has worked alongside horticulture to the mutual benefit of both sectors. “In Tasmania the dairy worked hand in hand with horticulture, grew contract potatoes, peas, pyrethrum and poppies and basically used that as part of their pasture renovation programme. Some grew crops for large commercial entities such as McCains,” he says. Donaghy says this option could be explored more in NZ, depending on the location of the dairy farms. He says for those that don’t want contractual horticultural deals, there are pastoral options as well. The concept of ‘new generation beef’ is one venture being trialled by Massey University. It is about creating a new class of beef using bobby calves that would ordinarily be sent to slaughter. Part of this is following the line of Argentina which slaughters some of its beef animal after 12 or 18 months – thus avoiding retaining larger animals for a second winter. Integrating trees into the farming system is another option. Dr Donaghy points to a concept of ‘hydraulic lift’ whereby deep rooted trees bring water nearer the surface. He says pasture can ‘steal’ some of this water. Donaghy says research work is being done on different species such as kānuka and mānuka, and on potential gains from woodlots or other plantings. He also says, with new animal welfare codes, trees will provide much needed shade for animals. Donaghy says there are many options available to farmers. The emphasis has to be on increasing the diversity in some way and, as a result, increasing resilience.
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DAIRY NEWS MAY 17, 2022
16 // OPINION RUMINATING
EDITORIAL
Alarm bells
MILKING IT... Load of bull! GREENPEACE BOSS and former Green Party leader Russell Norman claims there are about ten million beef and dairy cattle in New Zealand and that each one produces the same faecal load as about 14 people. So, that’s equivalent to 140 million people. ‘It’s just too much faeces and urine for the rivers, lakes and groundwater to handle,’ Rusty laments. However, as one Twitter user pointed out: the daily output of E. coli from a human is estimated at more than 11,000 more than that of a cow. Also, dairy cattle are fenced from waterways and most of their effluent goes back on pasture. Something for Russell to ponder!
Caught in space
Cannon fodder?
CALIFORNIA COW burps are now officially detectable from space. Satellites caught the belched cow methane in February, according to data analysed by Montreal-based environmental data firm GHGSat Inc. The satellite was able to pinpoint the location of the methane source, a feedlot in the agricultural Joaquin Valley, near Bakersfield, California. GHGSat said that if the single feedlot in question sustained the methane output detected by its satellite for an entire year, it would result in 5,116 tonnes of methane emissions— enough to power more than 15,000 homes if the gas were captured.
THE RECENT highprofile Mycoplasma bovis announcement from the Government in Hamilton featured Prime Minister Jacinda Ardern and Agriculture Minister Damien O’Connor. Also in tow were DairyNZ chair Jim van der Poel and Beef + Lamb chair Andrew Morrison. One farming leader noted how the mainstream media coverage showed no farming leaders at the event, which highlighted how close the country has come to eradicating the disease since it entered NZ about four years ago. He also noted that both farming leaders featured at the launch of the eradication plan four years ago. Have farmers become fodder for the cannon like the young Russian conscripts in Ukraine?
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Fake and cheap FIRST THEY demanded plant-based ‘milk’, now they want it priced cheaper than real milk. Actor and longtime animal rights activist James Cromwell superglued his hand to a Starbucks counter in New York City recently to protest the coffee chain’s extra charges for vegan milk. The “glue-in” protest was organized by People for the Ethical Treatment of Animals (PETA) which live-streamed on social media. What started as demanding cheaper price for fake milk, turned into a rally cry against dairy farming. The Oscar-nominated actor was posted up on the Midtown Manhattan Starbucks counter for at least a good 35 minutes, leading chants and railing against the living conditions for dairy cows, and the environmental consequences of dairy farming. Police officers eventually arrived and shut down the store.
THE FAIR Pay Agreements (FPAs) bill proposed by Government is causing alarm in the farming sector. That’s why farmer organisations are joining forces with Business New Zealand and business groups to launch a national campaign against it. Federated Farmers is calling FPAs “an unnecessary, inflexible, one-size-fits-all legislation”. Dairy farmers, in particular, feel there’s nothing fair about FPAs. They see it as a straitjacket that lock employers and employees into a national set of pay and conditions rules. FPAs might suit a minority but remove all ability of businesses and staff to agree on terms that suit their own needs and local conditions. The Government says FPAs are part of its wider work programme focused on lifting the wages of those on low to medium incomes. The threshold for initiating an FPA is 10% of workers or 1000 workers in the identified group – whichever is less. Once an FPA is agreed, all employers and employees across an entire industry or occupation are locked into the conditions of that FPA. Feds rightly point out that there’s little or no collective bargaining in the agriculture sector, yet workers’ pay is well above the minimum wage, above the living wage and, in most areas, above the median wage. The 2022 Federated Farmers-Rabobank Farm Remuneration report shows 13.5% average growth in pay packages for farm workers over the last two years. Average reported hours worked fall below the International Labour Organisation recommended maximum standard working time of 48 hours per week (for full-timers – dairy 47.2 hours, sheep/beef 44.8 and arable 46.2). Feds claims this is off the back of farm and business owners’ negotiating with their staff about what will work to retain those workers in a competitive marketplace and keep the business profitable. Farmers admit their industry isn’t perfect but it’s working hard to get it right with a slew of programmes. They are unhappy with FPAs claiming these will reduce flexibility, raise costs and destroy productivity. All food sector stakeholders are being urged to back BusinessNZ in opposing the proposed regulation. Collective bargaining is currently almost unknown in the farm sector – except in ancillary occupations like dairy process workers and drivers. Not being bogged down in collective bargaining has helped contribute to NZ farming’s great economic success. That could soon be in jeopardy.
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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 MAY 17, 2022
OPINION // 17
HWEN – farmers are rightly nervous, confused, angry CAMPBELL STEWART
AS CONSULTATION
by He Waka Eke Noa (HWEN) has rounded up, there are still a vast number of farmers who are nervous, confused, and angry about what the future for managing agricultural emissions in New Zealand might look like, and for good reason. The fast pace of lawmaking in New Zealand in recent years is unsettling; Not only for the rural community trying to get their heads around what it all means for them, but for a range of sectors, including participants in New Zealand’s Emissions Trading Scheme. While farmers are grappling with HWEN’s two options for managing agricultural emissions – an on-farm levy or a processor levy – the alternative of a blanket inclusion of agriculture in the ETS, which is the option if HWEN cannot convince the Government to adopt its suggested approach, is a particularly frightening prospect. In its current form the ETS isn’t working well for participants, particularly foresters. Adding complexity and workload for officials by including agriculture would be a disaster. There are already huge delays in every part of the process, such as the time it takes for the administrator, Te Uru Rākau (The New Zealand Forestry Service), to deal with registrations, emissions returns and amendments to returns. We have had the ETS in New Zealand for 13 years, yet many of the rules surrounding forestry remain untested and the recent reforms have done little to clarify problem areas. Te Uru Rākau seems reticent to meaningfully engage on difficult issues and will not entertain anything but the most restrictive, and usually unworkable in practice, interpretation of poorly drafted rules. This often
leaves participants frustrated and lacking resolution or clarity on how the ETS affects them In addition to that mess, if agriculture was to enter the ETS farmers are worried that the carbon price could be inflated by institutional investors wanting a slice of the action. It’s a valid concern, as it’s not just emitters and foresters who participate in the market. The result of this is that even substantial improvements made on farms to reduce emissions may not benefit those farmers if the carbon price keeps climbing. Farmers feel like the goal posts are constantly shifting and as they deal with the day-to-day running of their businesses, unravelling what a range of new regulations will mean for them is an overwhelming prospect that leaves them paying on two fronts. They pay to become compliant with whatever the eventual outcome is, and the complexity of the regulatory framework means they’ll pay for advice to navigate its many ambiguities. These costs are significant, and at front of mind. The current anomalies within the ETS are many and at times they have proven to be completely destructive. We have seen clients make simple administrative errors, like doing something out of order. The regulator can see that there are no environmental consequences of the error but are of the view that the rules leave no room for discretion. It seems we’ve legislated away common sense. We’ve seen examples of participants getting ahead of themselves and planting an ‘offsetting forest’ before the off-setting application has been approved. The result? The planting is ineligible as offsetting forest land because the offsetting trees are already in the ground. In another case, a large area of offsetting planting
Farmers feel like the goal posts are constantly shifting and as they deal with the day-to-day running of their businesses, unravelling what a range of new regulations will mean for them is an overwhelming prospect that leaves them paying on two fronts.
was not accepted because a tiny area (around 1.5ha) was not planted by the contractor because of power lines. Other minor mapping anomalies have seen whole offsetting applications be declined, with regulators claiming no discretion to permit an application to be amended. To be fair, the recent reforms, yet to come into force, have sought to address this, but the regime remains needlessly complex. Practitioners have also discovered that once filed, a voluntary emissions return can’t be amended or corrected – only Te Uru Rākau has the power to do that. A participant realised they’d made a mistake moments after submitting their return and tried to withdraw it. They were not allowed to do so, and they were fined tens of thousands of dollars for filing an incorrect return. We have seen landowners forced to battle at every turn in a process where there is no certainty and little common sense. Forestry consultants and lawyers have battled to have cutover land, or land that is unstocked but earmarked for forestry, recognised as forest land, based on the plain words in the Climate Change Response Act. They have also been bogged down with paperwork trying to transfer participation in the scheme following death or change of a land-owning trustee. From the outside looking in, Te Uru Rākau is struggling to appropriately resource for their substantial workload, and
with steady competition from the private sector, experienced staff are hard to retain. Participants still regularly experience delays more than 18 months to have their matters progressed. One consultant likened the process to having the IRD
scrutinise every detail of every New Zealander’s tax return. Things need to change. Recent moves, like proposing further amendments to overseas investment criteria for forestry and seeking consultation around excluding permanent planting of exotic forests from the ETS, are further evidence of the ‘legislate first, consider consequences later’ approach we seem to be taking as a country. It’s no wonder farmers are nervous, confused, and angry. • Campbell Stewart is a partner at law firm Tompkins Wake and a specialist in overseas investment, property, and the ETS.
Campbell Stewart.
Director: OSPRI OSPRI is the lead biosecurity agency for New Zealand’s animal industries, jointly owned by DairyNZ, Beef+Lamb NZ and Deer Industry NZ. Currently, OSPRI’s operations include managing the National Animal Identification and Tracing (NAIT) and TBfree programmes, which are jointly funded by OSPRI’s owners and the Ministry for Primary Industries. OSPRI is seeking an additional Director, to broaden and deepen the Board’s skills and experience. Applicants should bring:
• Understanding of te ao Ma-ori and Ma-ori organisations relevant to animal biosecurity operations.
As a primary attribute: • Governance experience, with time at Chair or Committee Chair level
The appointment will take effect from the Annual Meeting in November 2022, for an initial term of 3 years.
In addition to: • Demonstrated understanding of and connection to key primary industry sectors, throughout the value chain
The OSPRI Shareholders’ Council is responsible for recommending Board appointees to shareholders.
• Relevant and up-to-date knowledge of the regulatory environment related to biosecurity • Strategic understanding and leadership relevant to organisation change, people and performance management and culture change • Technology and innovation awareness, relevant to biosecurity and information systems
Further information is available from the Stakeholders’ Council Chair – Dr James Buwalda E james@innovationstrategy.co.nz T 021 678318 Applications should be submitted by 8 June 2022.
DAIRY NEWS MAY 17, 2022
18 // MANAGEMENT
Top chef, gourmet cheese It was third time lucky for Smaller Milk and Supply Herds (SMASH) in staging a field day in the Manawatu with previous attempts being thwarted by Covid. About thirty people turned up at the dairy farm of Aly and Ian Passey in the beautiful Pohangina Valley, about 20km north east of Palmerston North. Peter Burke reports on the event. IT WAS unlike other
SMASH events where normally somatic cell counts, pasture covers and mastitis are discussed. Instead, organisers decided to celebrate the achievements of the dairy industry by staging a friendly, interesting networking event outside the Passey’s wool shed.
The so-called star of the day was celebrity chef Annabelle White – an extrovert of the highest order. She kept the audience entertained with an unstoppable patter of advice while cooking a steak and salad from the Passey’s farm and cheese from Cartwheel Creamery based just a few kilo-
metres down the valley. It was a fun event with free cheese tasting, free ice cream and lunch, which saw people relishing the opportunity to meet and network with friends. Anna Kalma, who runs a small dairy farm near Morrinsville, and AnneMarie Case-Miller were the main organisers of the
Anne-Marie Case-Miller. SMASH organising committee member, hands out cheese at the field day.
event. SMASH is funded by farmer levies via DairyNZ and holds about 20 such events each year around the country. “Today was about celebrating dairy and it is little bit different in the sense that we are not dialling down into the technical stuff we normally do,” Kalma told Dairy News. “This was more about making people feel good about the dairy industry and seeing something created from the paddock to the plate.” While SMASH would suggest ‘small’, Kalma says the size of one’s farm does not stop those with larger farms attending the field days. One of the ‘large farmers’ at the event was James Stewart who runs two dairy
THE CARTWHEEL CONNECTION THE JOURNEY for Jill and Adrian Walcroft to become cheesemakers began in 1996 when Adrian went on a cheese making course just before their wedding. But at the time both were working as scientists and decided to put the cheese venture on hold. Finally in 2011 they started setting up their operation on their small block in the Pohangina Valley and produced their first cheese for sale in 2014. Jill Walcroft says there was a certain attraction in running their own business and interacting with people as opposed to writing science
papers. An early decision the couple made was to not produce their own milk, rather to source cow and goat milk from locals and just focus on making cheese. “We built our own plant from scratch and that was a very big undertaking, buying the right equipment at the right price. “We discovered that while NZ is good at making stainless equipment, they only make larger items, so in the end we purchased some from Germany,” she says. They have a small number of local suppliers, including the Passeys, and they all sup-
ply larger dairy companies as well. The Walcrofts collect the milk they need in a special 400 litre vat. The amount of milk they collect depends on the demand for their cheese and this has been something of a roller coaster due to Covid. But on average they produce about 400 tonnes of cheese annually. They produce a wide range of artisan style cheeses including camembert, blue mould, traditional tome, soft washed rind, feta style and haloumi style. In the short time they have been operating, the Walcrofts have won
a number of awards for their cheeses. For example, in 2019 they scooped up three gold medals for soft cheeses and silver medals for their blue cheeses. “We sell our cheeses at farmers markets, some big shows and events and also to restaurants and some retail outlets. We also sell online and this is an outlet we plan to grow,” says Jill. As for the SMASH event, Jill Walcroft says it was great to connect with the community and showcase their product. She says it was pleasing to see the interest shown in what they are doing.
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farms with 800 cows and produces about 360,000 kgMS on the outskirts of Palmerston North. But he had a special reason for being at the event. He is one of the suppliers to cheesemakers Cartwheel Creamery whose products were centre stage on the day. “I guess I’ve have always liked that provenance story,” Stewart says. “There is something pretty cool about selling something from the farm to the consumer. Initially I had the idea of making our own brand of cheese and so I approached Jill at the Creamery. But in the end I realised I was too busy and didn’t want to be a cheese salesman either, so I ended up just supplying the milk and
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DAIRY NEWS MAY 17, 2022
MANAGEMENT // 19
headline SMASH event KEY SUPPLIER IAN PASSEY is the fourth generation farmer on his dairy farm in the Pohangina Valley. Although brought up on the farm, he initially had no intention of going back on the land. It wasn’t until he was studying for an Ag science degree at Massey University and spending holidays working on a dairy farm that he decided to become a dairy farmer. The other motivation was that his parents had bought some extra land and were expanding their operation. He worked his way up through the sharemilker process until he and wife bought the farm. The property is unusual in that it has some steep country on which sheep are grazed and about 15 hectares of bush has been retired. The milking platform is about 90ha and the Passeys run 200 cows. They are in the middle of a big
SMASH organiser Anne Kalma.
plies Cartwheel Creamery is small, but says it is very satisfying being a part of the boutique enterprise.
seeing this turned into quality cheese,” he says. Stewart says the amount of milk he sup-
Ian Passey
change, converting to once a day milking (OAD). “This wasn’t a planned decision. I usually start the season on OAD to ease the pressure during calving, but this year we had a particularly cold wet spring and feed was short so I carried on with OAD. Then we had a staff shortage.
In the end I decided to go completely OAD for this and future seasons,” he says. Passey says he’s done his research and is happy with his decision to go OAD. He acknowledges the drop in production, but his goal is to get this back over time. The Passeys and Walcrofts
have known each other for some time through the local community and it was this friendship that led them to supplying some of their milk to Cartwheel Creamery. “I was always interested in cheese. I like it and thought that it would be nice to have some of my milk made into cheese, for the fun of it, so became a supplier to them,” says Ian Passey. The SMASH events have always appealed to Passey. He says he enjoys the events and this one was quite special, having other people around celebrating the success of the dairy industry. “There’s a lot going on in the world at the moment and it’s great just getting people together and celebrating dairy and reminding ourselves we are doing a good job.”
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DAIRY NEWS MAY 17, 2022
20 // ANIMAL HEALTH
Make sure your feed is FeedSafe NZ accredited
Do you know if your f Nutritional strategies can Find out at the help mitigate heat stress a number of nutritional strategies that can be used in order to mitigate the effects of heat stress. HEAT STRESS in dairy It is a well-known fact cattle is probably the that cows generate heat most overlooked seain order to create the sonal problem here in New Zealand. Production energy to produce milk, and during the summer drops rapidly as the heat increases, and most farm- this will be out in the paddock in the heat of the ers simply accept this as sun. Heat stress in cows a normal seasonal issue that they are powerless to occurs when they are proDo you know if your feed is FeedSafe accredited? ducing address. Find out at the NZFMA Fieldays stand more heat than they are able to get rid of The truth is, there are
CHRIS BALEMI
feedsafe-15x11.pdf
1
20/04/21
5:09 PM
NZFMA Fieldays stand number AG 7C
through sweating, respiration, or air regulation. An overabundance of heat in cows can lead to higher levels of stress, which will affect milk production, fertility, as well as increase the risk of other diseases such as lameness, and can also impair immune function. Untreated heat stress can be fatal, which is why it’s vital to understand the signs of heat stress, and
Do you know if your feed is FeedSafe NZ accredited?
NZFMA Fielda
Heat stress in cows occurs when they are producing more heat than they are able to get rid of through sweating, respiration, or air regulation.
the best ways in which to prevent it. Watch for changes in behaviour, such as seeking shade, panting, drooling, and standing in water or next to troughs, as signs that your cows may be experiencing heat stress. When cows are suffering heat stress, feed intake
is reduced. This will be accompanied by increased panting and drooling culminating in less saliva reaching the rumen, this decreases rumination by disrupting rumen pH. A healthy rumen is needed for milk yield as well as animal health. It is therefore impor-
tant that ruminant animals during periods of high humidity are provided with sufficient nutrients in order to counteract heat stress and maintain strong immunity. By providing your herd with an easily digestible, nutrient-packed
animal tonic that can be blended easily into their feed or added into their water, you ensure that they have the correct balance in place to mitigate the effects of this summer heat stress. • Chris Balemi is managing director, Agvance Nutrition Ltd
DAIRY NEWS MAY 17, 2022
SOUTH ISLAND DAIRY EVENT // 21
Dynamic SIDE on the cards SOUTH ISLAND Dairy Event (SIDE) 2022 chair Anna Wakelin is promising a dynamic two-day affair. “As farmers we are operating in a dynamic world and we always need to change and improve to stay on top of our game,” she says. “To help farmers remain dynamic, SIDE 2022 is hosting a range of exciting speakers from different professions who have innovative solutions to tough farming challenges. “SIDE will also give farmers the opportunity to take part in a wide range of practical workshops, and to discover the latest dairy technology and research.” SIDE will be held on 8-9 June in Oamaru. It is run by farmers, for farmers. Former Rocket Lab engineer Craig Piggott
BRIGHTSIDE AS PART of SIDE 2022, a separate BrightSIDE event for young farmers and farm team staff who want to progress their careers is also being held on 8 June 2022 at Oamaru. BrightSIDE will include workshops on: ■ how to keep yourself healthy ■
new technology to make managing farms easier
■
career progression opportunities in dairy
■
developing good financial habits.
BrightSIDE registration is $100 per person and includes a free hoodie, goodie bag, morning tea, lunch, drinks and nibbles.
will share how he found solutions to help his dairy farmer parents reduce their working hours. This search led him to launch Halter, a technology company which has developed a farming system that allows farmers to easily move and manage their herd through software. Piggot is the winner of the 2020 New Zealand Hi-Tech Young Achiever
award. Founders of vodka brand 42 Below, Geoff Ross and Justine Ross, will share how they swapped life in Auckland for an Otago high country sheep farm. Their property, Lake Hawea Station, was the first farm in New Zealand to have its carbon footprint certified. It is also ‘carbon positive’ and
Halter founder Craig Piggott will share how he found solutions to help his dairy farmer parents reduce their working hours.
they will explain how this offers them a unique marketing advantage. Dr Tom Mulholland will talk about strategies farmers can use to maintain their physical and mental health in times of stress. Mulholland spent 25 years in emergency medicine and eight years travelling around New Zealand with his pop-up
medical clinic. His focus
is educating Kiwis on how to avoid preventable diseases and he has developed a wellness app to help people monitor and manage their health. “SIDE is a great opportunity for farmers to get off-farm and network with other farmers. “With exhibition space already sold out, we encourage farmers to register soon to avoid missing out on SIDE this year,” says Wakelin. Farmers can also join four of 14 practical workshops on a wide range
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of workshops which provide practical solutions to farming challenges and help farmers taking advantage of a rapidly changing farming environment. Farmers can join four out of 13 workshops. Workshops options include: What does good winter grazing look like? Join DairyNZ environment and water quality specialist Justin Julia Jones Kitto to hear about the latest changes to wintering regulations. The workshop will visit two local properties in North Otago to see how different farm topography and soil affect wintering management. The session will provide advice on good wintering practices, and an opportunity to discuss successful wintering strategies with local farmers. Reproduction – findings from Waimate Vet Ryan Luckman and local farmer Ben Smith will share advice on how to lift reproduction. Ryan will also share insights on data from local farms, including 45 farms using cow collars. Milk Futures – the highs and lows Stuart Davidson and Julia Jones
from NZX will discuss how milk futures work, and how they can help you to build business resilience. You will also hear from a farmer on their experience and advice, from using milk futures. Greenhouse gases on farm – more than just hot air Ravensdown’s chief scientific officer Dr Ants Roberts and senior farm environmental consultant Nicole Wheadon will discuss the challenge of knowing and reducing your greenhouse gas (GHG) emissions. They will cover knowing your GHG numbers and practical strategies to help reduce emissions. Farmers are landlords too – managing on farm housing Rural tenancy specialist and dairy farmer Rebecca Smith will discuss landlord requirements under new laws, and how property management services can help farmers meet their obligations and manage rental properties. The pros and cons of cow collars and tags Join a farmer panel session and hear from cow technology providers. The session will cover: ■ the benefits of cow collars and tags ■ their suitability for New Zea-
land farming systems. the technology available, its cost and durability. Building the workforce we want – how do we find and keep great people This workshop will be led by Jane Muir, lead advisor for people at DairyNZ, and David Browne, director of legal and human resource services at Business South. They will share insights into: ■ what has the biggest impact on attracting workers ■ why we might need to change our jobs ■ how Workplace 360 can help improve your working environment ■ how to develop good working relationships. Other workshops Other workshops you can attend cover these topics: ■ flexible milking ■ getting into or out of farming – progressing through the dairy sector or transitioning out of it ■ how technology can help you get on top of paperwork ■ how plantain can help achieve your environmental goals ■ the benefits of farm planting ■ opportunities and options for non-replacement calves. • To find out more about SIDE, and register, visit www.side.org.nz
of topics from wintering to milk futures, reproduction, plantain and reducing greenhouse gas emissions. SIDE 2022 is being held for the first time at the heritage town of Oamaru. The event will be held at the historic Oamaru Opera House and the Brydone Hotel. SIDE 2022 is supported by DairyNZ, Ravensdown and Fonterra. To find out more and register for SIDE 2022, visit www.side.org.nz.
Dairynz.co.nz
0800 4 324 7969
DAIRY NEWS MAY 17, 2022
22 // MACHINERY & PRODUCTS
Claas axes Cargos loader wagon production to forage harvesters, primarily for harvesting maize. Alongside an upgrade to the existing 5,000 square metre assembly hall, further upgrades costing €40 million will help improve production logistics and assembly optimisation over the next few years. The company also reports there is an ongoing plan to expand, modernise and professionalise its mower,
MARK DANIEL markd@ruralnews.co.nz
GERMAN TRACTOR
and machinery manufacturer Claas is to stop production of its Cargos self-loading forage wagons in response to a global trend towards what the company describes as technological harvesting technology and more reliance on self-propelled forage harvesters. The company reports that although global sales of such wagons are on the decline, the format still fulfils a niche market in some regions. Produced at the company’s Bad Salgau
It’s end of the line for Cargos loader wagons.
facility, Cargos’ demise will free up assembly space to make the
increasingly popular Orbis 900 row-independent headers that are fitted
India boosts fert subsidy INDIA PLANS to double its bud-
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tedder, swather and baler ranges, also manufactured at Bad Salgau. Parts and service support for existing Cargos operating around the globe will continue well into the future. Industry sources suggest the move will allow existing manufacturers the opportunity to achieve a higher market share, while at the same time commenting that although sales have been in decline for many years, at present, the market remains relatively static.
geted 2021-22 fertiliser subsidies to a record of more than 1.55 trillion rupees (US$20.64 billion) for the fiscal year ended March 31, to avoid potential shortages amid a sharp increase in global prices of chemicals, fertiliser and fuels. India, a large-scale importer of urea, is also a major buyer of diammonium phosphate (DAP) needed to power a huge agriculture sector which employs about 60% of the country’s workforce and accounts for 15% of the US$2.7 trillion economy. For many years India has capped the price of urea at 5,360 rupees (US$71.36) per tonne, while global market prices have surged to around $990/tonne. India imports about 30% of the estimated 35 million tonnes of urea it consumes annu-
ally. According to government data, urea prices surged by an annual 144% in October to US$690/tonne, while DAP prices rose by 84.3% on delivered basis to US$682/tonne. India does not control prices of DAP but raises the subsidy to keep an indirect check on retail prices. Subsidies are delivered via the government providing financial support to companies such as National Fertilizer Ltd, Madras Fertiliser Ltd, Rashtriya Chemical & Fertilisers Ltd, Chamabal Fertilisers & Chemicals Ltd that all sell fertilisers at below-market rates. Globally, fertiliser prices have risen about 200% over the past year following record price rises for source ingredients coal and natural gas, alongside new export restrictions on fertilisers by China and Russia.
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Government sources suggest that India imports an average 60% of the 10-12 million tonnes of its annual DAP consumption, with around 40% of this volume coming from China. Large volumes are already being delayed because of the export restrictions, so the government is enhancing the subsidy to fertiliser importers. One source says, “We have asked some NPK manufacturers to switch to production of DAP,” adding the fertiliser ministry has also augmented supplies to the districts with low stocks on a priority basis. However, farmers in India have complained about difficulties in getting DAP, noting that demand rises during October and November, the peak season for planting wintersown cereal crops like wheat.
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DAIRY NEWS MAY 17, 2022
MACHINERY & PRODUCTS // 23
Kuhn going wider with new mower MARK DANIEL markd@ruralnews.co.nz
SAID TO be the widest mower produced to date by Kuhn, the recently announced FC 13460RA, when used in conjunction with a FC3125DF or FC 3525DF front mower unit, offers a variable working width of 12.4 to 13.4 metres. The belt grouper system fitted to the rear unit can be used to form a swath of 1.8 to 3m width, making it ideal for cutting ahead of the largest forage harvesters or large square balers. Sitting above the existing FC9330RA (9.3m), the machine tips the scales at the relatively light 7.5 tonnes, which the company suggests helps reduce the draught power requirement, reduces wear and, most impor-
The belt grouper system fitted to the rear unit can be used to form a swath of 1.8 to 3m width, making it ideal for cutting ahead of the largest forage harvesters or large square balers. tantly given the current price rises, reduces fuel use. Featuring a substantial frame with rear wheel equipment, any machine adjustments can be controlled via the tractor’s ISOBUS system or by using Kuhn’s own CCI control units. In use, the
Kuhn’s latest mower.
frame suspension system exerts a constant pressure on the cutter-bars, allowing it to adapt quickly to ground undulations, while at the same time delivering an even cut across the full working width.
The telescopic axle also helps to increase clearance, making it easier to form a wider, more evenly formed swath, with benefits of increased drying times and easier pick up for the harvester.
Featuring Kuhn’s zero maintenance, Opti-Disc Elite cutter-bar, the unit incorporates the Fast-Fit knife change system, with each disc carrying triple 5-inch knives, said to be quick to change, and with
an extended working life. Requiring around 250hp for efficient operation, the FC13460 folds to a 3-metre transport width and a transport height of just under 4-metres. Available from early 2023,
the company suggests that the unit will be well suited to any 12-metre controlled traffic farming (CTF) operations. www.kuhn.co.nz @dairy_news facebook.com/dairynews
SPECIAL REPORTS
EFFLUENT & WATER
Water and effluent can be both a valuable resource and a headache, depending on how they are managed. This special report will examine the latest technology available for efficient water and effluent management. To be in this special report contact your advertising representative now to promote your products and/or service to all NZ dairy farmers and sharemilkers. Contact your closest Sales Representative
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1 JUNE 7 JUNE
IMPRESSIVE BUILD QUALITY
“We purchased BvL because of their build quality. The BvL makes a far more consistent mix compared to our previous machines; there are no dead spots around the doors that don’t get mixed. ” - Paul Scheres, Waikato
ACCURATE FEED QUANTITIES
“Previously, the cows that went after the pre-calving pellets over indulged, and other cows weren’t getting any. With the mixer wagon we know that every cow is getting their required portion every time.” - Stu Russell, Canterbury
INCREASE IN PRODUCTION
Key benefits of using a BvL Mixer Wagon There are many great reasons to choose a BvL Mixer Wagon - here’s some of the stand out benefits: • The exact dosing systems ensure even mixing and consistent product flow of feed to your cows. • The anti-spill ring on the BvL Mixer Wagon prevents wastage and mess, while also increasing strength of the top bin. • Asymmetrical positioning of mixing wedges means optimum flow of material, and faster mixing time. • Maintenance is simple with the oil levels easily viewable.
“The first season with the BvL Mixer Wagon saw a lift in production of 28%. We went from 99,000MS to 128,000 without spending any more on feed compared to in-shed feeding.” - Tony & Lucas Allcock, Waikato
‘BvL: Built To Last Longer’ North Island - Gerry Clare 021 245 4471 | South Island - Jethro Boakes 021 513 368