Dairy News 9 August 2022 by Rural News Group

Weaker NZ$, less milk to keep prices up. PAGE 3 BORN TO FARM

SUPERIOR GENETICS

Creating better value chain PAGE 31

Happy to milk cows PAGE 20

AUGUST 9, 2022 ISSUE 500 // www.dairynews.co.nz

DCANZ CHIEF BOWS OUT Malcolm Bailey says many people fail to see that the financial benefits of dairying are shared right across the country. PAGE 4-5 IT TIME TO IS

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DAIRY NEWS AUGUST 9, 2022

NEWS // 3

Less milk, weak $NZ to prop up prices SUDESH KISSUN sudeshk@ruralnews.co.nz

Regulations are ‘disruptive’. PG.09

Soil fungus to tackle emissions. PG.21

A baler like no other. PG.26

NEWS ��3-16 AGRIBUSINESS ��17 OPINION ��18-19 MANAGEMENT �� 20-22 ANIMAL HEALTH �� 23-24 MACHINERY & PRODUCTS ��25-27 MATING �� 28-35

DAIRY PRICES are falling on the back of weakening global demand for milk products but so is milk supply. Combined with a weakening New Zealand dollar, this means the impact of plummeting prices on the farmgate milk price is likely to be minimal. Last week’s Global Dairy Trade (GDT) auction saw prices for flagship whole milk powder drop 10 auctions in a row. Over that time, WMP prices have plunged 30%, while overall prices are down 27%. Westpac senior agri economist Nathan Penny says the falls continue to highlight weakening global dairy demand. He says Fonterra has increased the amount of product on offer on the auction platform, despite no real change in the level of its milk collections. “This move suggests that previously contracted sales have now fallen through as buyers have either been able to point to lower prices elsewhere (for instance, in the US or the EU) or simply that they don’t have the consumer demand to justify the earlier sales contracts. “That’s seen product pushed back into the marketplace.” However, at the same time, the global dairy production outlook is very weak. Penny points out that in the three key dairy exporting regions – the EU, the US and New Zealand –

Whole milk powder prices have fallen 30% since March.

2022 dairy production is expected to fall compared to 2021. “The fact that all three regions are likely to post production falls is rare. “Costs of production have spiked and this has been compounded by poor weather (hot and dry in the Northern Hemisphere and now too wet in the Southern Hemisphere). “All up, very weak global pro-

duction should support global dairy prices over the season.” Another positive is the expected rebound in the Chinese economy as Covid restrictions ease and economic stimulus takes hold. “Indeed, Chinese consumer spending growth is already on a firm footing, and as that continues to strengthen, we expect that it will lead to a recovery in dairy demand

over the coming months,” notes Penny. Westpac is sticking to its forecast milk price of $9.25/kgMS. While there are downward risks to the forecast, the added support of a weak NZD/USD means Penny still expects a healthy milk price this season. Despite the plunging dairy prices, ASB is sticking with its ambitious $10/kgMS forecast milk price for the season. However, ASB economic and research team member Chandna Bedi concedes that the $10 milk price for next season hinges on stronger prices over the spring and summer months. ”And we will need signs of improvement at coming auctions to support this forecast. “But on a more encouraging note, prices are still historically high, and a milk price within Fonterra’s appropriately wide (but high) forecast range for next season is very achievable.” Bedi also points out that we are in the middle of winter and have not panicked about the recent run of soft prices. “Prices eased over winter last season as well and then moved higher given the extremely tight global milk supply. “And we continue to think global dairy demand is likely to remain relatively inelastic, and keep prices well supported. “Likewise, we think global dairy supply will remain extremely constrained,” says Bedi.

DAIRY NEWS AUGUST 9, 2022

4 // NEWS

DCANZ chief bows out after The man who has led the Dairy Companies Association of New Zealand (DCANZ) for the past 14 years leaves his role next week. Farmer, company director and agricultural trade specialist Malcolm Bailey has made a huge contribution to the dairy sector and New Zealand in general over nearly four decades, as Peter Burke reports. MALCOLM BAILEY

says one of the difficult things he’s had to overcome in his tenure with DCANZ is getting traction in the media to point out all the initiatives and works that have been done by the industry in the face of public criticism. Bailey says individual farmers and the industry itself have invested massively to minimise the environmental footprint of dairying and there have been some real success stories that have not been recognised. “Yes, people can still say nitrate levels on farm

are still too high, but the pathway of progress has been something to be proud of,” he told Dairy News. “It’s a bit of a race with no end because you are setting your goals to be even better and I just reflect on the fact that every economic activity has some sort of environmental footprint. In my view, there is a lot of misinformation out there about what is the true state of the industry,” he says. Bailey says people tend forget that the primary sector is the engine room of the NZ economy and

that significant money for health, education and other services comes from agricultural exports. He says a lot of people fail to see that the financial benefits of the dairy sector are shared right across the country. “You sometimes read a report about the average NZ water quality which paints a negative picture. Well, NZ water is actually outstandingly high in world terms. Sure it’s not at a level across NZ that we are happy with, so that’s why we continue to invest in improvement. But remember we are start-

Malcolm Bailey says, DCANZ, which represents the 13 milk processing companies, has added much value to the dairy industry.

ing from a base that most countries in the world would think was a pretty good place to start,” he says.

“

The DCANZ executive committee thanked Bailey for his tireless commitment to advancing the best interests of the New

Zealand dairy industry over the last 14 years. In a statement, DCANZ says Bailey’s tenure as the chairman

has spanned: multiple trade negotiations of significance to the New Zealand dairy industry; the establishment of the New

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NEWS // 5

a 14-year stint Zealand Government and Industry Agreement on Biosecurity Readiness and Response (GIA), the New Zealand Dairy Tomorrow Industry Strategy; and the

He Waka Eke Noa primary sector climate change partnership; and periods of major changes in dairy markets, including the global financial crisis and

Covid-19 pandemic. DCANZ and its members have benefited considerably from his vast experience, knowledge, and leadership.

WHAT NOW?

The leading role Bailey has played in New Zealand’s primary sector over a long number of years was recognised in 2021, when he was the recipient

of the Primary Industries Outstanding Contribution Award. He will be replaced by University of Waikato academic Matt Bolger.

About the man MALCOLM BAILEY grew up on a mainly dairy farm near the township of Fielding in the lower North Island. He still farms there today, with his son doing much of the onfarm work while he focuses on his numerous other roles. After completing a bachelor of ag economics, Bailey left the family farm for the Wellington bureaucracy, taking a job in the economic section of the Reserve Bank in 1980. His role was to crunch some of the balance of payments numbers and it was there that he experienced the power of one Robert D. Muldoon whose interventionist policies was one of the reasons the young Bailey eventually went back to the family farm. “As far as I was concerned he was a lying crook who took the NZ economy in completely the wrong direction, but the Reserve Bank could do nothing, despite a lot of the officials hating what was going on but couldn’t speak out publicly. “In some ways it was a pity because when I told the bank I was leaving they said they had plans for me including secondment to the OECD in Paris,” he says.

We have got companies doing their special thing and not undercutting each other. Companies have found their sweet spot in these different markets and they are going for it. Looking back we have created something to be proud of,” he says. A feature of DCANZ has been to work closely with other primary sector advocacy groups such as the Meat Industry Association (MIA) where the two organisations cooperated on the M. bovis outbreak, animal welfare and other biosecurity issues, and in the recent NZ/ EU FTA negotiations. Advocacy for greater international trade liberalisation and opposition to countries which employ protectionist policies and subsidise their farmers has been a key focus for DCANZ. Bailey has long been an outspoken critic of protectionist policies in his role as Special Agricultural Trade Envoy and as chair of DCANZ. He’s been a strong critic of the EU’s policies and doesn’t accept the arguments they put up in the recent NZ/EU FTA negotiations. “I can’t understand how the EU can argue the sensitivity in the dairy sector when they are

Back on the farm and into the dairy industry, Bailey entered farmer politics, which eventually led to him becoming president of Federated Farmers between 1996 and 1999. Immediately after that he was appointed NZ’s Special Agricultural Trade Envoy which saw him take part in what turned out to be the abortive WTO Doha trade round in 2001. When Fonterra was founded in 2001 Bailey was elected to the Shareholders Council. Three years later he was on the Fonterra board. It was this that led to his appointment 15 years ago as the chair of DCANZ. In between time he also spent time of the board of the Westpac bank. Bailey says, DCANZ, which represents the 13 milk processing companies, has added much value to the dairy industry and to the wider NZ agri sector. He says DCANZ has embraced competition and that is evidenced by the fact that it has 13 members, including one representing sheep milk and another goat milk. “The organisation has enabled us to unlock a lot of value and see investment in further processing.

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the world’s largest dairy exporter. For them to say they can’t liberalise their market beyond the tiny amount they have given us doesn’t add up at all. Even though we have had a number of good FTAs signed we still only have access to 13% to 15% of the world market for dairy products. The rest is essentially closed to us by high tariff barriers, so it is a very protected market. In actual fact, dairy is one of the worst sectors of all in terms of protectionisms,” he says. Bailey says overall the dairy sector in NZ is in good shape in terms of competitiveness. He says in world terms it is very strong but is facing challenges on the home front. These include the realisation that there is unlikely to be any new land available for dairying and that this may even decrease in some catchments as the sector tries to meet new environmental regulations. But he says the good news is that, even with milk production slightly down at times, the sector continues to increase its export revenue and add value to the raw product. “Intensification in processing has driven more value,” he says.

AGED 64, Malcolm Bailey says farewell after a stellar career in the dairy industry but his knowledge, innovation and drive will not be lost to the wider primary sector. He’s got no plans for politics; his focus will be on the many innovative technology companies he’s involved with. He says countries such as the US which have strong economic engines are at the leading edge in the technology space. He says NZ also has the potential to do that and says his economic background is helpful when it comes to crunching numbers and seeing whether a venture is profitable. One of the companies he’s involved with is Greentech Robotics, based in Palmerston North, which is in the final stages of having one of its products, WeedSpider, operating on farms in the US. It’s set to be the world’s first truly autonomous weeding robot capable of identifying and eliminating weeds in a variety of crops, without a human lifting a finger. Bailey says the idea was developed to help commercial vegetable growers who worldwide are facing labour shortages. The robot drives up and down the rows of plants, identifying and removing the weeds. The company has other products in the pipeline. He says throughout his life he’s been prepared to put some resource into developing new businesses and helping to create new jobs. The next phase of his life will be in the technology sector.

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6 // NEWS

Fonterra opposes milk price panel changes SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA SAYS

additional measures are not required to reduce the co-operative’s discretion

in setting the milk price. In a submission to the Ministry for Primary Industries (MPI), the cooperative says it will add significant additional annual cost for no clear benefit.

“Instead, we propose that consideration of additional measures as significant as this should be deferred to the next Dairy Industry Restructuring Act (DIRA) review.” MPI is proposing

changes to the milk price panel as part of its intention to amend DIRA to accommodate the cooperative’s revised capital structure, approved by farmer shareholders last year.

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Fonterra chairman Peter McBride says the independence of the milk price panel is already assured.

MPI is proposing to increase the number of ministerial nominees to the milk price panel from one to two. It also proposes an independent chair. However, Fonterra chairman Peter McBride told Dairy News that the co-operative believes the independence of the panel is already assured. “While we do not oppose increasing the number of ministerial nominees to two, we believe that the independence of the panel is already assured through its current composition,” he says. McBride says the co-op has concerns about the proposal to prescribe a maximum of seven panel members in the context of the proposal to make the chair an additional independent member. “We propose that any of the five independent members of the panel should be eligible to be appointed as the chair.” The submissions will go through a parliamentary select committee before Parliament will vote on the DIRA amendments. The Government has indicated that it intends to pass the amendments. McBride says changes to the capital structure are critical to the future of the co-op. The co-op’s strategy is focused on New Zealand milk. He says Fonterra’s

ability to meet strategic targets depends on the co-op maintaining access to a sustainable New Zealand milk supply in an environment where they are seeing total milk supply in New Zealand as likely to decline, and flat at best, due to environmental pressures, new regulations and alternative land uses. “Flexible shareholding will help our co-op maintain a sustainable milk supply. “It is intended to make it easier for new and young farmers to join our co-op, and for existing farmers to remain in our co-op.” McBride says farmers leave the co-op for different reasons, but one of the most influential ones is the high level of compulsory investment that’s required to be part of the co-op, in part driven by the different costs of capital between farmers and investors in a public market.” He says a flexible shareholding structure will make it easier for farmers to join and stay with the co-op by helping to “level the playing field with other domestic processors, many of whom see milk as a cost to be minimised, rather than aiming to maximise the long-term sustainable value created by and for New Zealand farmers and therefore to the New Zealand economy as a whole”.

DAIRY NEWS AUGUST 9, 2022

NEWS // 7

Fert co-ops post solid results SUDESH KISSUN sudeshk@ruralnews.co.nz

THE TWO major fertiliser co-operatives have posted solid annual results despite volatile global supply and pricing challenges. Ravensdown posted an overall group profit of $95 million, and an underlying profit of $68m in the core fertiliser business, before taxation and rebate. Chairman Bruce Wills says it’s “one of our best ever results”. Total fertiliser sold was slightly up at 1.22 million tonnes, and revenue at $922m was up $210m on last year, reflecting the rising-price environment that dominated the year. Despite the solid profit, Ravensdown is paying farmer shareholders $5/tonnes less in

rebate compared to $30/ tonnes paid out last year. Chief executive Garry Diack says the volatility of the market is not going away. “And we need the capacity to capitalise on procurement pricing opportunities, and we need to continue investment in technological support to reduce New Zealand’s fertiliser footprint,” he says. “The need for a capital buffer for the increasing risk a cooperative structure faces compels a conservative approach to shareholder rebate for 2022. “Given this year’s performance and next year’s challenges, a shareholder rebate of $25 per tonne has been declared,” he says. Diack noted that rapidly rising international prices makes fertiliser

Despite volatile global supply and pricing challenges, fertiliser co-operatives have posted solid results.

hard to budget for farmers. To help them, Ravensdown says it focused on product margins and yielded a group margin percentage lower than last year. “Our fundamental belief is that this cash

is better in use on-farm than in our hands, and our margin-based pricing approach has proven this to be the case this year. “Consistent with our cooperative values we have positioned the balance sheet for another challenging year in 2023

with $347m of stock in store – providing confidence to customers for spring.” Ravensdown Shipping Services proved its worth, providing a $26m boost to the group’s bottom-line performance. Ballance Agri Nutri-

ents will pay its farmer shareholders $30/tonne in rebate this year, equating to an aggregate total of $37m returned to farmers and growers. Chairman Duncan Coull says the Ballance board has elected to retain $56m “to future proof the cooperative as we transition to a low emissions carbon-neutral future for locally manufactured nutrients”. “Investing in reducing our manufacturing emissions, and maintaining our assets is how we can continue to provide a reliable source of nutrients for current and future generations of kiwi farmers and growers,” says Coull. Chief executive Mark Wynne says its strategy to focus on local manufacture is paying dividends. “In Kapuni we have a

favourable long-term gas supply contract. “This enabled the supply and manufacture of competitively priced urea, about 30% of our total volume sold. In other parts of the world, the rapid energy price increases forced the closure of fertiliser factories, creating supply pressures, however our contractual arrangements have enabled some of the lowest priced urea in the world over the last six months,” says Wynne. “Our long-standing and trusted relationships with our global suppliers helped to mitigate ongoing supply disruptions and the unpredictable price of raw material, product and freight, however, by far the biggest advantage we had, was our strategy to focus on local manufacture.”

DAIRY NEWS AUGUST 9, 2022

8 // NEWS

All you need to know about beating FMD PETER BURKE peterb@ruralnews.co.nz

DAIRYNZ HAS set up a dedicated website to provide farmers with everything they need to know about foot and mouth disease (FMD). This follows the outbreak in nearby Indonesia and fears that it could spread to NZ where it could have devastating effects. Dr Liz Shackleton, DairyNZ’s biosecurity manager, says that while the overall risk of the disease spreading to NZ is considered low at this stage, they are taking the threat seriously and says

people can’t be too careful in their biosecurity practices to make sure the disease is not established here. She says they have put together a significant package of information to help farmers develop biosecurity plans and to be aware of the signs of FMD. “We are getting them to look at their biosecurity practices and a key one is keeping their NAIT records up to date,” Shackelton told Dairy News. “They should tag and register and keep those movements recorded within 48 hours. And with the borders now fully

Farmers are being urged to keep an eye out for the unusual in their herd.

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reopened it’s really important to keep any overseas workers or visitors away from the farm and stock for that one week standdown period, and also ensuring that they have robust biosecurity plans in place. “This includes making sure that no meat or animal products are fed out to pigs and/or other FMD susceptible stock,” she says. Shackleton say they are urging farmers to keep an eye out for the unusual and if they think their stock are displaying any symptoms of FMD – such as a high fever, lesions around the mouth or lameness – to call their vet or the

“We are getting them to look at their biosecurity practices and a key one is keeping their NAIT records up to date.” MPI pest and disease hotline. “We are conscious that it’s a really busy time out there for farmers at the moment with calves on the ground and million others jobs to do. “That is why we have put together the dedicated website so they can go to one place and get all the information they need and hopefully save them time.” According to Shackleton many farmers are aware of the risks of FMD. She says, for a start, some

NZ vets worked in the UK when there was an outbreak of the disease there in 2001. There were also lessons in NZ from the recent M. bovis outbreak and from Covid that can be applied to an FMD outbreak. Shackleton says when DairyNZ staff sit down and talk to farmers they are able to point to these other events, which helps them frame their own onfarm biosecurity plan. “But one again a key issue to emerge is the importance of NAIT and

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good traceability,” she says. As expected, DairyNZ is working closely with Beef+Lamb and MPI to ensure coordination of messaging and action plans. Shackleton says the strong partnerships between industry and the Government is vital to dealing with FMD or another biosecurity risk. But she adds, while DairyNZ’s focus at the moment is on helping dairy farmers deal with the risk of FMD at a very busy time of the year, biosecurity goes well beyond the border – everyone in the community must play their part to ensure FMD doesn’t reach our shores.

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DAIRY NEWS AUGUST 9, 2022

NEWS // 9

Regulations are ‘disruptive’ PETER BURKE peterb@ruralnews.co.nz

A FARMING leader claims that government regulations are suffocating innovation on farm. Whanganui Federated Farmers president Mike Cranstone says so much of regulations that are in place or coming are disruptive to farmers. He says the Government should be trying to harness the innovation of farmers rather than stifling this with a host of regulations. Cranstone and his wife Cath breed Ezicare yearling bulls primarily for the dairy industry but also for the meat industry. He says the aim of breeding such animals is to add value to the dairy industry. His family have farmed out

Whanganui Federated Farmers president Mike Cranstone says so much of regulations that are in place or coming are disruptive to farmers.

at Fordell since 1905 and over the years the various generations have built the farm up to its present state of 1,450 hectares. He says one of the problems is that the dairy industry produces

about a million bobby calves a year and there has been some outcry on the slaughter of these animals, which are essentially a by-product of the dairy industry. “The problem is there

isn’t the capacity on NZ farmers to cope with this number of animals now or in the future. So we need to look for other options,” he says. One of those options says Cranstone is

exporting live animals. But any hope of doing that seems likely to fall on deaf ears, with live exports by sea set to be completely banned by next April. This ban has attracted much

controversy with some people in the farming sector saying it will cost NZ upwards of half a billion dollars in export earnings and others saying the ban should have been in place years ago.

Cranstone is one of those people who has exported live animals in the past and sees no reason that it shouldn’t continue. “The live export people have gold plated systems and so there is an opportunity to not only offer livestock overseas for breeding but also for meat. We see Wagyu animals being air freighted to Japan for the meat trade and I think we under appreciate what value there is in some overseas markets for other live animals,” he says. Cranstone says he’s worried that a lot of the blanket regulation coming out of government will deny the country the opportunity to solve some of the social issues around farming especially in relation to bobby calves.

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NEWS // 11

Economy, regulatory changes affecting farmer confidence PAM TIPA

THE OVERALL econ-

omy and the “septic” farmer mood around regulatory changes are likely behind a massive drop in farmer confidence, says Federated Farmers president Andrew Hoggard. In the July survey of 1,200 farmers, a net 47.8% of them considered current economic conditions to be bad, down 55.6 points from January when a net 7.8% considered conditions to be good. Hoggard says while the fall in farmer confidence reflects concerns about inflation and interest rates, the government race to push through regulatory change is also a major factor. “The frustration around all the regulation, the uncertainty, the hectic pace and nature of it, I think that is driving the mood as well. “The Government needs to slow down and work out what they can achieve, not what they

Federated Farmers president Andrew Hoggard says the mood among farmers towards government regulations is ‘septic’.

want to achieve,” he told Dairy News. “They’ve got to be able to bring people along with them, people have to have confidence the right people are being listened to, that concerns are being taken into account and that it is not all driven by one minister’s wishes.” Hoggard says he is seeing the mood around all the regulatory processes is getting increasingly “septic” and people are “over it”.

He is picking up there are implications for farmer mental health. “People are frustrated, questioning why they are slogging away in the mud and the rain.” “But some of the feeling is maybe unwarranted,” he says. “Some of the farmers are thinking the entire country is against them when I know the entire country is not against them. They actually have a lot of support out there and it’s just the bureaucracy in Wel-

lington may be partially against them and a lot of politicians may be against them, but not the country as a whole.” Asked if there’s one thing the Government could do now for farmers to help lift the mood, he says a clear signal around the regulatory process that they are listening. “That they are going to slow down on some of this stuff, that not everything has to be done before the end of the year so they don’t have to do

anything in election year. And stop and work on the stuff that’s already been done and get that fixed first before embarking on anything new. “We have seen with the Essential Freshwater package that was released two or three years ago with that nitrogen reporting date that’s had to be pushed back because stuff wasn’t ready. “That’s another example of how that whole package of stuff was rushed, wasn’t thought through properly, didn’t go through a decent process and as a result, I can’t think of a single part of it that has stood the test of time. “It has all been a complete and utter failure. The winter grazing regulations only lasted three days, the stock exclusion rules not much longer than that before they had to go back to the drawing board. “When you look at what has happened with the nitrogen reporting,

HIGH MILK PRICE A BUFFER

that’s another failure and I think we have got coming up supposedly all the regional councils have to have new plans in place for 2024 which I can’t see happening as well.” But aside from regulation, inflation and interest rates are weighing heavily on farmers’ minds. “If they have to go harder and harder on the cash rate to reduce inflation then it will pump up interest rates and that could see that (farmer) margins getting squished,

so it might not look so rosy profitability wise. “This is forward looking, so people have got that in their mind.” The survey in January was at a low point even then, he says. But confidence has plummeted again because “we knew inflation would be high but I don’t think we’d hit that 6-7% number then”. “That extra increase in inflation is probably driving a hell of a lot of concern.”

Notice of Election - DairyNZ Board of Directors - DairyNZ Directors Remuneration Invitation for 2022 candidate nominations – three positions available In October, an election will take place for two farmer-elected directors for the Board of DairyNZ Incorporated and a second election for one member of DairyNZ’s Directors’ Remuneration Committee. Current levy-paying dairy farmers are invited to nominate candidates to fill these three positions. All farmers paying a levy on milksolids to DairyNZ are eligible to stand for election. An information pack outlining desired criteria and nomination requirements for the position can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12 noon on Monday 5 September 2022. Elections

THE HIGH milk price certainly gives a buffer, says Andrew Hoggard. “If the milk price wasn’t where it is at we’d be really screwed because fertiliser prices have doubled, fuel’s up, energy is up, feed, grain, that is up – for a dairy farmer a lot of the costs are up, so the milk price has to be up otherwise people just wouldn’t be doing it.” In Europe they are earning the same milk price but their

costs are higher again, “so it is pretty bleak in other parts of the world as well”. In the confidence survey a net 80.9% of respondents expect general economic conditions to worsen over the next 12 months, up 16.9 points on the January survey. Despite the slide in confidence, farmers’ profitability expectations haven’t taken as big a hit as might have been indicated. A net 55% of respondents

said they are currently making a profit – six points down on the January survey. Looking out over the next 12 months, a net 53.1% of respondents expect their profitability to decline, up 11.9 points on the January 2022 survey when a net 41.2% expected it to decline. “What’s also worrying is that for the first time in our survey’s history we’ve recorded a net negative score for production expectations. A

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net 0.5% of farmers who answered our questions expect their production to decline over the next 12 months, down 2.3 points on the January result.” A net 54.6% of respondents expect their spending to increase over the next 12 months, slightly up on January, “but this will be due to inflation of input prices rather than spending on more goods and services,” Hoggard says.

If more than the required nominations are received, an election will be carried out by internet voting using the STV (single transferable vote) voting method. Votes will be weighted by annual milksolids production. Voting credentials will be emailed to all registered DairyNZ levy payers on 19 September 2022, with voting closing at 12 noon on Monday, 17 October 2022. The DairyNZ Annual General Meeting will be held on Tuesday, 18 October 2022. Election results will be announced at the meeting. For further details contact the Returning Officer below. Anthony Morton Returning Officer – DairyNZ Incorporated 0800 666 935 iro@electionz.com

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DAIRY NEWS AUGUST 9, 2022

12 // NEWS

Synlait unveils new leadership model SUDESH KISSUN sudeshk@ruralnews.co.nz

CANTERBURY MILK

processor Synlait says it is continuing on its road to recovery, announcing a refreshed strategy and a revamped leadership team structure. Details of the refreshed strategy will be released next month when its full year results are announced. In a statement to the New Zealand stock exchange, the company says the refreshed strategy will focus on its core business opportunities: advanced nutrition, ingredients, consumer (includ-

ing fully-owned subsidiary Dairyworks) and food service. A new expanded leadership team has been announced with Rob Stowell retained as chief financial officer. Tim Carter, chief executive of Dairyworks, also becomes director of consumer. Nigel Macdonald, director of operations, Suzan Horst, director of quality, regulatory and laboratory and Boyd Williams, director of people and culture are confirmed in new roles. Five roles remain unfilled – director of ingredients, director of advanced nutrition, Presi-

Synlait chief executive Grant Watson.

dent China and director of foodservice, director of on-farm excellence and business sustainability and director of strategy, Innovation and corporate affairs. The revamps means some executive roles,

director legal, risk and governance, director strategy and business transformation, director sustainability, brand, beverages and cream, and director nutritionals and ingredients roles – have been disestablished.

Two new roles, head of legal, risk and governance and head of information services, have been created and will report to CFO Stowell. Synlait says it is working with staff who have been impacted.

It says the new role of director of on-farm excellence and business sustainability, elevates milk supply to the executive leadership team. “The role will concentrate on the critical importance of milk supply, on-farm excellence, and sustainability to ensure Synlait’s milk pool remains highly competitive, while continuing to accelerate the company towards its sustainability targets on and off farm.” Synlait says executive leadership team appointments will be announced to the market as they are made. The new roles come into effect September 1.

In April, the listed milk company, 39% owned by China-based Bright Dairy, reported a net profit of $27.9 million for the six months ending January 31, 2022. This was a whopping 338% more than the same period last year, which admittedly was a disastrous result for the company. Last September Synlait reported a $28.5 million loss for FY2021, its first loss after nine years of profitability. Synlait’s woes began in December 2020 when key customer and stakeholder a2 Milk suddenly reduced its demand for infant formula.

FONTERRA REVAMPS MANAGEMENT TEAM FONTERRA HAS completed a

revamp of its executive management team with the appointment of Emma Parsons in the new role of managing director strategy and optimisation. Parson, who started in the role last week, is one of two new appointments to the executive team. Last month the co-operative appointed Komal MistryMehta as its chief innovation and brand officer. Fonterra chief executive Miles Hurrell says since announcing its refreshed strategy in September 2021, the co-op has been working through how to adapt its organisational structure to accelerate progress towards its long-term aspirations.

“Our ambitions are to grow the value we derive from our New Zealand milk through our sustainability credentials, innovation, and nutrition science. “To enable this, we have established two new Fonterra Management Team (FMT) roles to increase the coop’s focus on innovation and strategic implementation,” says Hurrell. Parson’s newly developed role will have ownership and oversee the implementation of Fonterra’s strategy and plans to achieve Fonterra’s long term aspirations. It will also bring a new level of focus on demand choices, and portfolio and asset management using analytics to inform decision making.

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Hurrell says he’s excited to have Parsons joining the Fonterra management team given her understanding and passion for the co-op. “Emma has a strong track record of delivering results. We’ve seen this most recently in her role as GM Capital Strategy where she led the development of the new capital structure for the co-operative, which received overwhelming support. “Emma is incredibly passionate about Fonterra and has had a long career with us, which began working at the local factory in her summer holidays and has spanned many different parts of the co-operative.” Prior to her role as general manager

capital strategy, she was chief executive of Agrigate, a JV between Fonterra and LIC before the GM responsible dairying and roles in Brazil and Argentina where she developed the co-operative’s export relationships and supply chain integration across Latin America. Emma has an MBA with first class honours from Massey University, a Bachelor of Science and Bachelor of Commerce from Victoria University of Wellington. The co-operative has also combined its Asia Pacific and Americas, Middle East and African (AMENA) business units. The consolidated business unit will

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be led by Judith Swales. The chief executive of AMENA business, Kelvin Wickham has decided to step down after 34 years with the co-op. “Kelvin and his wife are keen to stay in Europe and I wish them all the best for their next great adventure,” says Hurrell. “We’ve worked closely together for a number of years and I will miss his friendship, guidance, and support. “I thank Kelvin for his extensive contribution to the co-op. He has been with Fonterra for over 34 years, holding multiple roles across many markets, and has been a tremendous advocate for Fonterra.”

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DAIRY NEWS AUGUST 9, 2022

NEWS // 13

Fonterra closing Brightwater milk plant FONTERRA IS closing its Brightwater site in Nelson in April next year, with 30 staff set to lose their jobs. However, Fonterra chief operating officer Fraser Whineray says the workers are highly skilled and is confident they’ll be able to secure new roles. Whineray says the priority right now is supporting them. “It’s no doubt tough news for some of the Brightwater team and we’ll be working with them in the coming months on their future options, including redeployment opportunities within the co-op.” The small aging plant at Brightwater will continue as a milk collection site as Fonterra moves its milk transfer activities there from Tuamarina. Brightwater processes only about 0.25% of the co-operative’s overall milk supply into whole milk powder. Whineray says the move to close the milk processing plant, which will instead see the

milk being processed at Fonterra’s Darfield site, is in line with Fonterra’s long-term strategy. “We know milk supply is declining over time, flat at best, so we need to make sure we’re getting the most out of every drop of milk and optimising our plants to match both consumer demand and available milk supply. “Part of our long-term strategy is to direct more milk into our Foodservice and Consumer business, less into Ingredients, and in some cases, to divert product away from the Global Dairy Trade auctions. “This, along with forecast capital and maintenance costs, means we’ve made the tough decision to close our milk powder plant at Brightwater. “We’re continually working to ensure our assets across the country are as efficient as they can be, changing

product mixes, and moving more milk into value-add products.”

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WESTPAC NZ is trialling sustainability linked loans for agribusiness. The move was announced among a raft of sustainability initiatives including interest-free loans to help customers make their homes warmer, healthier and more energy efficient, a new Responsible Banking and Investment Position, and signing up to the UN-convened Net-Zero Banking Alliance. The new agribusiness loan is being piloted with three farms – two dairy and one sheep and beef farm. Westpac NZ chief executive Catherine McGrath says the loan, which requires the customer meet all parts of the Sustainable Agriculture Finance Initiative (SAFI), is the first of its kind. “This guidance includes prac-

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A greener investment? tices to reduce emissions, improve long-term resilience and deliver more sustainable outcomes in terms of water, waste, pollution and ecosystems,” McGrath says. Once farmers commit to meet the guidance, they have two years to achieve that goal and will be supported with discounted loan pricing. McGrath says it’s important the bank takes an innovative approach to lending to help its customers achieve their sustainability goals, while remaining productive. Westpac NZ head of agribusiness Tim Henshaw says the reason the bank has aligned with SAFI is because the SAFI standards are in line with international standards for green lending. “This opens up further avenues for wholesale funding of the finance sector in New Zealand as growing pools of domestic and offshore investors want to, or are only allowed to, invest in green assets,”

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Henshaw says. He says those investors could use instruments like green bonds to fund the Sustainable Agribusiness Loan. “This deepens the flow of green capital into New Zealand and we hope the rest of the market heads this way (using SAFI) to ensure New Zealand has access to all available funding pools. “Our loan has been designed to complement many of the existing farm compliance and assurance programmes, to minimise workload and reporting duplication,” Henshaw says. “The type of outcome required for a participating farmer will vary, depending on which part of the country they are in, and the type and scale of the farming they are undertaking,” he says. The bank is aiming to roll out the loan more widely in 2023. @dairy_news facebook.com/dairynews

DAIRY NEWS AUGUST 9, 2022

14 // NEWS

Genetics focus boosts herd GINA McKENZIE

A STRONG focus

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Fernside dairy farmer Julie Bradshaw with four of her cows being selected for the LIC breeding programme. Julie is participating

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Julie Bradshaw says working with LIC over the last 20 years has paid off.

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Ministry for Primary Industries (MPI) for the project, with support from MPI’s Sustainable Food and Fibre Futures fund along with Environment Canterbury, Ballance, and DairyNZ. The four cows have been selected for the breeding profile based on their DNA profiles. In the next mating season these cows will be mated to

started when we did because it has enabled us to have the best herd we can, which is based on science and facts. “With possible reductions in animal numbers in the future you want to be as accurate as possible. If you are relying on your own calving records, they are generally only about 65 to 70 per cent accurate compared

“LIC have looked at their mothers and analysed their production during the selection process. Once they have calved, if it is a bull calf then they will genetically test it to determine if it meets the criteria for LIC’s breeding programme.” bulls specifically selected by LIC for genetic traits which will complement cows’ traits. The aim is to improve the overall genetic profile of the herd. “LIC have looked at their mothers and analysed their production during the selection process. Once they have calved, if it is a bull calf then they will genetically test it to determine if it meets the criteria for LIC’s breeding programme. “DNA testing the calves shows which genes it has inherited from its parents and then they can analyse how well it will perform in the future.” Over the last 20 years, since Julie first became interested in genetics, technology has become far more precise than when she did the first DNA tests on her herd, and this is providing economic benefits to her farming operation. “The rate of change with science and technology is amazing. DNA testing is a vital part of our farming operation now and I am glad we

to DNA testing. Calving data is never perfect because you are under a lot of stress when you are calving. “If you use your own records, you are keeping animals that you think are going to be great, when you haven’t got the animal you think you have in terms of its value to the herd. DNA testing sorts out your mistakes and you avoid spending time and money on a calf that is not going to produce anything once it joins the milking herd.” Bradshaw’s production worth (PW) and breeding worth (BW) herd sit in the top five per cent of Canterbury herds and just under the top five per cent of all herds nationally, which she says proves that her investment in genetics has enabled her to refine her herd to ensure that she has the best cows. She says working with LIC over the last 20 years has paid off. “We have all our DNA data for the herd, and it really is the best it has ever been.” @dairy_news facebook.com/dairynews

DAIRY NEWS AUGUST 9, 2022

WORLD NEWS // 15

AUTOMATIC DRAFTING, MADE EASY Dutch farmers protesting against the Government’s nitrogen proposals.

Dutch farmers face ‘a major uncertainty’

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EUROPEAN DAIRY co-operative

FrieslandCampina has put on hold a cash payment to farmer members due to uncertainty over the impact the Dutch Government’s nitrogen proposals. Chief executive Hein Schumacher says the Dutch Government’s target for reducing nitrogen pollution in some areas by up to 70% by 2030 is “a major uncertainty”. “For this reason, we are exercising extra caution in terms of our outlook for the rest of the year, and we have decided to forego the interim pro forma supplementary cash payment to our member dairy farmers.” Dutch farmers have been taking to the streets in the Netherlands to protest, calling the targets unrealistic. They claim livestock nationwide would have to be reduced by 30% to reduce nitrogen pollution. FrieslandCampina is owned by almost 16,000 farmers based in Netherlands, Belgium and Germany. Last month, the co-operative announced its half-year results for 2022. Revenue rose to $10.7 billion, compared to $9b the previous year. Operating profit jumped from $210m to over $500m. The co-op attributed this increase primarily due to price increases, higher commodity dairy prices and the recovery of European out-ofhome markets. Volume in the retail channel was under pressure. Volumes of the Professional business and the Ingredi-

FrieslandCampina chief executive Hein Schumacher.

ents business group increased. But it warned that market developments in the second half of 2022 will be uncertain due to the war in Ukraine, the corona pandemic, rising costs and possible impact of the Dutch Cabinet’s nitrogen proposals on members and the company. Schumacher says the end of all uncertainties is not yet in sight. “We are still faced with inflationrelated challenges and the associated price increases, mounting raw material shortages, declining consumer confidence and the corona pandemic, which has yet to completely pass. “We are also still confronted with major uncertainty concerning the impact of the Dutch Cabinet’s announced nitrogen proposals on our members and our company.” He thanked farmers and employ-

ees for all their hard work over the past months. “The resilience they display in this respect every day gives me every confidence that FrieslandCampina will also be able to successfully cope with present and future challenges.” The milk supplied by member dairy farmers in the first half of 2022 decreased by 4.6 percent to 4.8 billion kilos in comparison to the first half of 2021 (5.0 billion kilos) due to a decline in the number of members, lower quality of grass silage and higher feed costs. Milk price over the first half of 2022 increased by 37.8% to 51.33 Euros for every 100kg of milk. This increase was in part due to an increase in commodity dairy prices resulting from increased market demand. The organic milk price was 57.31 Euros per 100kg of milk.

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DAIRY NEWS AUGUST 9, 2022

16 // WORLD NEWS

Mental health boost for Aussie farmers ANIMAL HEALTH company Zoetis is helping raise awareness of mental health in rural communities across Australia. It has partnered with Beyond Blue, an organisation that provides advice

and service to the community, to reduce the stigma associated with mental health. Over the past six years, Zoetis has raised A$600,000 for the Beyond Blue Support Ser-

vice by donating $5 from each sale of the company’s livestock, pig and poultry vaccines and drenches. In 2022, Zoetis aims to once again reach its $100,000 fundraising target by the end of

the year. Zoetis senior vice president and cluster lead for Australia and New Zealand, Lance Williams says it works closely with rural Australia through interactions with the country’s

People in rural Australia are known for their resilience in times of crisis, but even the most resilient need extra support at times.

“It’s important to make looking after ourselves a priority and set goals for sleep, exercise and ’me‘ time.”

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farming community, agricultural stores, veterinarians and their families. “We are proud to once again be supporting Beyond Blue and the important work they do,” says Williams. The money raised goes directly to the Beyond Blue Support Service to continue helping people living in remote areas. To date, thanks to Zoetis’s donation, over 12,000 people have been able to get the support they need through the service. “Together we have made strong progress in supporting the mental health and wellbeing of those who live in rural Australia, and we are passionate about helping again this year.” Derek Schoen, a farmer for more than 36 years, is a beef, grain and hay producer in Corowa, New South Wales. Schoen, a board member of Beyond Blue, says the farming community has endured many challenges over the years. “Through droughts, floods, bushfires and the on-going Covid-19 related issues, rural Australia and country people are stoic and display considerable courage, however the impact on mental health has been significant for many,” says Schoen.

“The good news is that most of us will be able to cope very well with challenges as they arise - we will use our normal resources, our strengths, networks and the support that we have around us from family, friends and loved ones. “People in rural Australia are known for their resilience in times of crisis, but even the most resilient among us need extra support at times. We want everyone to know that support is available and encourage people to seek advice. Asking for support is a sign of strength – not weakness.” Beyond Blue chief community officer Patrice O’Brien says the journey to better mental health can start with small actions. “It’s important to make looking after ourselves a priority and set goals for sleep, exercise and ’me‘ time. Maintaining social connections, keeping in touch with friends and family, and being part of a community provides a supportive network. Also, understanding which tools and strategies work well for you in tough times and reaching out for that extra support when you need it are really important.”

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AGRIBUSINESS // 17

NZYF’s new chair spells out her 12-month plan THE NEW chair of New

Zealand Young Farmers Jessie Waite says her key focus over the 12-month tenure will be to continue the organisation’s growth. “We’ve recently launched some key projects to make the future of the organisation sustainable with the NZYF Community, and to benefit our members with the new digital platform,” says Waite. “I am really looking forward to hitting those targets and goals and also being part of other projects that are going to see our members thrive.” An OSPRI regional partner in Taranaki, Waite has been an NZYF member for nine years and is proud to be elected chair, after having her sights set on being a board member for several years prior. “The biggest benefit of

“My experience is in on-farm, grassroots members and my focus is on delivering for the membership to ensure the long-term success of our organisation.”

NZ Young Farmers elected directors from left to right; Nicola Blowey, Sammy Bills, chair Jessie Waite, Chloe Belfield and independent director Malcom Nitschke.

being an NZYF member is the friends and connections you make right across the country which has been a huge highlight for me. “People are the heart of this organisation and its legacy, our members, both former and present, have made New Zealand

Young Farmers what it is today and I feel beyond privileged to represent them.” Waite, 30, replaces Kent Weir who ended his 12-month term as chair at the annual meeting recently. “It’s going to be exciting, but also quite chal-

lenging which I think is a good balance,” she says. South Waikato Young Farmer Chloe Belfield and Mackenzie Young Farmer Nicola Blowey have also officially taken their seats as board members. They were two of four NZYF members vying for the two positions, elected

annually on a three-year term. Blowey, 28, is a former dairy farmer, currently working as a DairyNZ extension officer. Originally from the United Kingdom, she landed in NZ in 2016 and brings membership experience from other Young Farmer organisations across the globe, including the UK, Canada and Europe. “My experience is in on-farm, grassroots members and my focus is on delivering for the membership to ensure the long-term success of our

organisation,” she says. She has held executive positions at club and regional level and also sat on the national committee as the Aorangi delegate. “It has been a real privilege to be a part of the team during this difficult period for our region and see Aorangi emerging now, stronger than ever with a new motivated team of people.” Belfield, 24, has been a member since the age of 17. She works for Fonterra as a business improvement lead and has also

started her own business, Jones Agri Fencing. “Young Farmers has provided me with a lot at a young age, and within an organisation that equally shares my passion for our rural communities and sector,” she says. She has held a number of roles at club, district and regional level, most recently as the Otago Southland chairwoman which she said have all helped to build her confidence, leadership, and governance capabilities. “The NZ Young Farmers board is a great place and environment to continue to give back to an organisation which has given me so much, whilst continuing to develop my capabilities within our rural sector to benefit our rural communities and for the next generation of farmers.”

RABOBANK ON THE HUNT FOR GRADUATES APPLICATIONS FOR the 2023 intake of the Rabobank New Zealand Graduate Programme are now open. The 18 month-long programme offers university graduates with an interest in agriculture the opportunity to begin their careers with the global specialist agribusiness bank. Up to ten graduates from around

the country will be selected for the programme, which will provide them with employment experience and career development support across various divisions of the bank, including operations, country banking, risk, products and deposits and human resources. Applications close on Sunday.

August 14. The new intake of graduates will start the programme early next year. Rabobank New Zealand chief executive Todd Charteris says the bank officially launched its graduate programme late last year and the first intake of graduates had now been with the bank six months. “With the

bank’s sole focus on food and agribusiness, we’re acutely aware of the need to attract more talented young people into roles across the sector, and our graduate programme is one of the ways we’re helping support this objective,” he says. “Graduates on the programme will be provided with support to grow in

their chosen areas of interest, as well as the chance to be part of Rabobank’s inclusive and flexible work culture. “They’ll also spend time in a number of our offices across New Zealand and gain valuable customer-facing experience that will help them to better understand Rabobank’s unique approach to servicing our clients.”

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DAIRY NEWS AUGUST 9, 2022

18 // OPINION RUMINATING

EDITORIAL

Slow down!

MILKING IT... Doco maker wrong

Three Waters in trouble?

Too close for comfort

$1m remains unpaid

A DOCUMENTARY maker who wrongly claims in his film that cows in New Zealand live only one quarter of their 20 year natural lifespan is rightly facing a backlash from farmers. One farmer on social media calls the claim “bull”. “Plenty of cows in our herd over 10 yrs,” wrote the cranky cocky. A Fairleigh farmer agrees, saying it’s the same in their herd with plenty of older cows. Another farmer opined that this would be the case right across the dairy sector, giving two good reasons: “Two things that help the longevity of livestock are farmers’ passion for their animals and modern technology.”

YET ANOTHER sign has emerged that the Government’s controversial Three Waters reform could be in trouble. The Labour Party used its supporters’ mailing list to ask for help and to back its Three Waters proposals as submissions closed last month. National called the move “desperate”, saying it shows Labour is worried the committee will be overwhelmed by submissions against the controversial scheme. Days before submissions closed, Labour’s Campaigns Team sent an email to people on its mailing list – usually reserved for Labour Party fundraising and events – asking them to make a submission to Parliament’s Finance and Expenditure Committee on the Water Services Entities Bill, the main legislation that will give effect to Three Waters reforms. Was Labour worried about a likely avalanche of submissions against the proposals?

ONE VET believes the threat of foot-and-mouth entering New Zealand is much higher than what authorities tell the public. Dr Ross Ainsworth, who has lived in Indonesia for the past decade, claims that infected and unvaccinated cows wander close to tourist areas in Bali. The disease has been detected on the island just as tourists start to return to Bali after the pandemic. He has worked in the Australian beef industry for 40 years and is concerned Bali’s lack of vaccine doses and the way cattle wander in tourist areas there will heighten the risk of footand-mouth making its way to Australia and possibly New Zealand.

GROUP of New Zealand farmers who collectively sold $1 million worth of cattle to a live export company in March are still waiting to be paid. Media reports say farmers from around New Zealand sold cattle to Waikato-based Genetic Development (NZ) Exports Limited Partnership (GDEX LP). The 12,300 head of cattle were destined for China at the end of April this year, however the shipment failed after the livestock carrier, MV Al Kuwait, built in 2016, broke down enroute to New Zealand to collect the animals. A second, smaller ship was sent but could only fit 4,998 cattle on board, so farmers were given the choice to either sell the animals at a reduced rate or take them back to their own farm. According to GDEX LP, around 40 farmers are collectively owed $1 million and the combined total direct costs and losses to the exporter are well over $5 million.

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THE LATEST Federated Farmers survey of farmer confidence paints a worrying picture. Of the 1,200 surveyed, 47% consider current economic conditions to be bad — down 55.6 points since January when a net 7.8% considered conditions to be good. A net 80% expect general economic conditions to get worse — up 16.9 points for the same period. The survey conducted last month showed production expectations have dropped into negative territory for the first time since its inception in 2009. The message from farmers to the Government is clear, ‘slow down on new regulations’. The ACT Party rightly points out that the Labour Government has been a non-stop shop of on-farm compliance. They have set off an avalanche of regulations: freshwater reforms, winter grazing rules, Zero Carbon Act, limiting migrant workers, Significant Natural Areas, taxes on utes…the list goes on. There’s no doubt that farmers have taken a hammering from this government. This is reflected by the top concerns in the survey being climate change policy and the ETS, regulation and compliance costs, input costs, debt and interest rates, and biosecurity amid concerns about foot-and-mouth disease. Federated Farmers national president Andrew Hoggard says the frustration around all the regulation, the uncertainty, the hectic pace and nature of it, is driving the mood as well. He wants the Government to slow down and work out what they can achieve, not what they want to achieve. The Government needs to bring people along with them. They must listen to the concerns and ensure that the regulatory push is not all driven by one minister’s wishes. The survey did have some positives. Despite the slide in confidence, farmers’ profitability expectations haven’t taken as big a hit as might have been predicted. A net 55% of respondents said they are currently making a profit – six points down on the January survey. Looking out over the next 12 months, a net 53.1% of respondents expect their profitability to decline, up 11.9% on the January 2022 survey when a net 41.2% expected it to decline. This is perhaps to be expected given the squeeze from higher input costs and high commodity prices retreating. But what’s worrying is that for the first time in the survey’s history it has recorded a net negative score for production expectations. The Government can do its bit to help right now: a clear signal around the regulatory process, to show that they are listening, would be a good start.

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DAIRY NEWS AUGUST 9, 2022

OPINION // 19

Solution sitting along the river’s edge? GRAY BALDWIN

FARMERS ARE facing many more risks than ever before. Rapidly rising costs for one, but the biggest long-term risk, without a doubt, is climate change. Arguing about whether it is human induced or not achieves nothing. It is happening under our noses and furthermore, politicians have decided on our behalf that responding to it is important. In the Waikato we’re getting supercharged rainfall events in winter, and come summer, it’s desertdry. The question is, how can we future-proof our businesses as this worsens? Insurance companies have long offered ‘business interruption’ or ‘business continuity’ cover to keep farmers operating or paying wages in the case of major disasters, earthquakes or storms. Expanding traditional business continuity insurance to include climate change events will be welcomed. Pricing this risk will be a challenge for underwriters, but assuming climate change significantly raises the cost of food, farmers should be able to afford the increasing premiums that will come with worsening climate change. This of course shouldn’t leave us sitting on our backsides doing

nothing for the climate crisis. We know that international regulators won’t be wowed by per unit efficiency arguments where NZ is “top of the charts”. They will demand a reduction in total emissions. So our co-operatives, industry bodies and SOE’s should continue to breed cows that burp less, encourage the uptake of hydrogen powered tractors and develop methane reducing feed additives. In the meantime, we farmers are stuck with focusing on mitigation rather than reduction with regards to our emissions. One of the simplest ways to do this is the expansion of riparian areas along waterways with native plants. Natives look great, encourage bird and marine life (biodiversity), keep waterways clean and provide a permanent carbon sink. Short rotation pine trees planted purely for carbon sinks will eventually fall over and rot, releasing their carbon back into the atmosphere. The government should be courageous and lift the carbon credit value of natives to equivalence with radiata, they might be surprised at farmer response. • Gray Baldwin is a life-long South Waikato farmer with more than a decade of senior governance experience with Farmlands, LIC, Ballance Agri-Nutrients and Trinity

Lands. He is currently running for the FMG board of directors.

Gray Baldwin

REAR THEM WITH CERTAINTY With all of the complexities and busyness that come with calving, you want to be as prepared as you can, as soon as you can. Your local Technical Sales Rep and store team are there for you to bounce ideas off and to provide seasonal tips, calf rearing insights and to make sure you’ve got the right mix of products in time for the months ahead. We’ve also locked in pricing between now and the end of October on a wide range of products, from metabolics to feeding supplies.

Visit nzfarmsource.co.nz/calving for more info or to shop online One of the simplest ways to reduce emissions is more riparian planting along waterways with native plants.

DAIRY NEWS AUGUST 9, 2022

20 // MANAGEMENT

A solid herd to build on YOU’D BE hard pressed to pick dairy farmer Hayley Hoogendyk as someone who grew up in the sunny beach town of Mount Maunganui, and not rural Manawatu, where she has farmed for the last 10 seasons. She not only looks as comfortable on-farm as someone born and bred to the job, but she has also acclimatised to the cooler weather the Manawatu experiences year-round – so much so that visits home in the summertime can be a challenge.

“I just can’t stand the heat anymore,” she says. Based at Kai■ ranga, just outside of Palmerston North, ■ Hoogendyk is a farm ■ manager for Craig and Raewyne Passey ■ of Aron-Amy Holstein Friesians. Milking 500 ■ cows on 180ha effec- ■ tive, she has worked for them since 2017. Hoogendyk attended Massey University, graduating with a degree in business. She worked as an events man-

Farm facts Owners: Craig & Raewyne Passey trading as CG & RM Passey Ltd Manager: Hayley Hoogendyk Location: Kairanga Farm size: 180 hectares effective Cows: 500 cows (348 registered Holstein Friesian) Production: 500 kgMS/cow Stud name: SuperSolid (Five registered Holstein Friesian)

ager for the student association before she was made redundant due to the removal of funding for

OWN STUD HAYLEY HOOGENDYK has her own stud, SuperSolid, the beginnings of which were established during her first job as farm assistant. “There was a friendly cow in the herd that I really loved, Apples, and I bought her,” she says. “I just went from there, and I have been breeding for the last few years, buying contract cows from different sales.” She bought two cows from the Waiau sale in October 2020, and one more from Waiau in October 2021. “They have all been outstanding,” she says. “Waiau Gaunt AlanaOC S1F GP83, who is contracted to LIC, has been amazing in particular; she did 605 kgMS in 301 days last season as a heifer, plus she’s super friendly.” Hoogendyk says she’s not actively trying to grow her own cow numbers, but rather, increase cow quality. “I’m trying to get a handful of top animals that will form the nucleus of my future herd,” she says. “I’ve done some embryo work and I have two yearling contract cows coming

through. A bull I’ve been impressed with in my own stud is Westcoast Alcove; I have a yearling and two calves by him.” SuperSolid has a number of contract mating agreements: three out of eight cows are contract cows, both yearlings are contract mated, and three of four calves are in the HFNZ/CRV Genetic Leaders Superior Female Programme. Hoogendyk is now focused on continuing to build the nucleus of her herd, and if the opportunity to grow her cow numbers arises, she’ll consider it – with the view to eventually going 50/50 sharemilking. “I’d also like to do more embryo work, so if I go 50/50 sharemilking, I will have a number of embryos stored to use in the herd,” she says. While Hoogendyk doesn’t currently show any of her animals, she may consider it in the future as she’s “seeing some lovely cows coming through”. And while she might have found herself some way from where she grew up, Hayley is happy calling Manawatu home. “It’s a great dairy farming area.”

As an animal lover, Hayley Hoogendyk has loved dairy farming from the start.

the role. Bored without a job, Hoogendyk went milking with a friend and, after applying for a relief milking position, the farmer offered her a fulltime farm assistant position. “I told him I knew nothing about farming, but he said, ‘You’re not stupid, and you’re not on drugs’,” she laughs. “I thought that was funny at the time, but I now know that he kind of had a point! I started as a farm assistant in 2011 and never left.” As an animal lover, Hoogendyk has loved dairy farming from the start. She shrugged off the odd comment that she was unsuited to farming, due to her slight frame;

it hasn’t been a problem, she grins. Hoogendyk spent 18 months in the farm assistant role before moving into a 2IC position for the next two years. The farm manager at that property went sharemilking so she took over their position, before moving to the Passeys’ in 2017. The Aron-Amy herd is purebred Holstein Friesian with the exception of the yearlings, which are mated to crossbreed bulls. “We have a handful of F12/J4, but the majority are F15/16,” Hoogendyk says. “The Holstein Friesian breed in general is easy to work with, has good staying power throughout the season, and excellent sale-

ability of surplus calves.” Hoogendyk says because the farm is a pasture-based system 2-3, the traits they breed for are strong udders, capacity and good muzzles, to ensure cows can efficiently eat a grass-based diet without high inputs. “A good rump angle and fat and protein milk components are also important to us – and friendly is a bonus!” she says. “To be able to look out into the paddock and say, I really like the look of that cow, is awesome.” LIC semen is used on the herd. “I like the progeny of the bull Meander SB Arrow-ET S2F, and we also have a lot of cows by Fairmont Mint-Edition

and San Ray FM BeamerET S2F, and they are all stand out cows,” Hoogendyk says. “We never have any issues.” The herd is milked twice a day, and instead of moving to once-a-day before Christmas, milking times are adjusted instead: cows go through the shed at 5am and 11.30am. “This means the cows are off duty during the hottest parts of the day,”she says. “It works so well. We don’t lose any production and we are done by 2pm, which is great for both the cows, and team wellbeing.” The farm sends 500 kgMS/cow to the factory annually.

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MANAGEMENT // 21

Soil fungus could help reduce emissions A NATURALLY occur-

ring soil fungus is shaping as a new hero to improve nitrogen use on farm. The fungi that can be applied to soil as either a prill or seed coating is part of a major new research programme launched last month. N-Vision NZ, led by co-operative Ravensdown and co-funded by the Government’s Sustainable Food and Fibres Future (SFFF) initiative, aims to help farmers reduce nitrogen loss. One of the projects in the $22 million, sevenyear initiative will harness the power of natural strains of soil fungi to increase the efficiency of nitrogen use by plants. Ravensdown general manager of innovation and strategy Mike Manning says Lincoln University researchers have discovered natural strains of fungi that reduce the activity of specific microbes, which are involved with nitrogen cycling and losses. “These nitrogen losses can occur as nitrate leaching through the soil which has potential detrimental effect on waterways, and as nitrous oxide, a potent greenhouse gas emission. “Although it occurs naturally in pastural soils at a relatively low level, the fungi can be applied to soil as either a prill or seed coating. “Doing so increases

the level of the fungi and therefore alters the nitrogen cycle to reduce nitrogen losses. “Research to date indicates this has a strong potential to mitigate both greenhouse gas emissions and reduce nitrogen loss to waterways,” he says. N-Vision NZ includes two other research projects that aim to reduce the environmental impact of New Zealand’s grazed pasture systems: one that will develop an accurate gauge of the nitrogen already in the soil and, therefore enabling farmers to apply more precise quantities of nitrogen fertiliser for optimum plant growth; and another that will research nitrification inhibitors, which have the potential to significantly lower nitrous oxide emissions and nitrogen leaching from grazed pasture systems. N-Vision NZ will apply leading-edge science and technology to create tools that farmers can use on farm. Importantly farmers will have options to maintain profitability while minimising the environmental impact of their land use. The Government’s $7.3m contribution to N-Vision supports Ravensdown’s $11m cash contribution, plus in-kind funding. Lincoln University and Plant & Food Research are research partners for N-Vision.

Agriculture Minister Damien O’Connor says the research programme focuses on three technology streams. N-Retain is a new nitrification inhibitor technology that will look at new ways to block the biological processes in the soil that lead to nitrous oxide emissions and nitrate leaching. N-Test is a new soil test to inform nitrogen fertiliser decisions on pastoral farms, that will help capitalise on the nitrogen already in soil organic matter. This could mean less nitrogen fertiliser needs to be applied. The third product, N-Bio Boost, is a fungal bio-inoculant to increase nitrogen use efficiency. O’Connor says the ag sector needs innovative tools and technologies to help farmers reduce nitrogen fertiliser use on pastoral farms while maintaining production and profitability. O’Connor said the products and technologies developed through the N-Vision NZ programme will be made widely available under commercial terms. “This will ensure that the environmental and economic benefits extend to the whole of New Zealand and not just Ravensdown’s customers,” O’Connor says.

From left, Dr Hossein Alizadeh and Professor John Hampton, Lincoln University and Mike Manning, Ravensdown at the research site.

A naturally occurring soil fungus is shaping as a new hero to improve nitrogen use on farm.

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DAIRY NEWS AUGUST 9, 2022

22 // MANAGEMENT

Elite genetics captured early THE NEXT genera-

tion of high-BW Holstein Friesian heifers earmarked to breed genetically-elite calves has been announced. The 2022 Discovery Project team comprises 28 heifers from 11 Holstein Friesian New Zealand (HFNZ) breeders: Southland’s Meander Holsteins (Robert and Anne Marie Bruin) had 11 heifers chosen for the 2022 team, while three heifers were chosen from Poplar Partnership (John and Karen McErlean), Payne Farms Ltd (Brad Payne) and MJ Dickson, among others. A joint venture between Holstein Friesian NZ and LIC, the Discovery Project uses advanced breeding technologies such as genomic testing, embryo transfer (ET) and TVR (trans-vaginal recovery) to select the best heifers of potential

bull-dam standard early on in their lives, allowing all breeders the opportunity to have their pedigree Holstein Friesian bulls recognised by the industry. Each year, HFNZ members are invited to nominate their high-BW heifer calves for the Discovery Project. Just over 140 nominations were received for the 2022 team, and in March 2022 the Discovery Project Committee selected 73 heifers to be genomically tested. Of that group, 28 were selected to be part of the team, which will take part in this year’s TVR programme. Any heifer calves born within the Discovery Project are free from any breeding restriction with LIC and can be nominated and screened in the hope they will be eligible to re-populate the

Discovery Project sire Tronnoco MH Samba-ET S2F.

programme. The Discovery Project, which aims to contribute to the AI industry and the Holstein Friesian breed, has seen great success since its inception in 2004. Between 2013-2020, Discovery Project teams

delivered a total of 73 sires into LIC’s Sire Proving Programme, with 17 of these sires going on to graduate into LIC teams. This year, LIC has purchased six bulls from the 2020 Discovery Project team to join its Sire

Proving Scheme for the 2022/23 season. The Discovery Project has also shown success with contract mating, with a number of Discovery Project heifers from previous years’ teams still being contract mated

today. Two 2014 team members, Hillsview Mega Pea S3F and Tronnoco B Sulana-ET, have been consecutively contract mated from 2016-2022, as has MAH HDF Starstruck-ET S3F, from the 2015 team.

From the 2017 team, five cows have been contracted mated consecutively from 2018-2022: Tanglewood L RaineET S3F, MAH SB Snow White-ET S2F, Meander Beam Ash-ET S2F, Meander Inca Avril-ET S2F and Meander Lance Grace-ET. HFNZ Discovery Project chair Wayne Taylor says genomic testing tools has allowed new genetics to be identified and captured earlier than ever before, and animals that would have been overlooked 10-15 years ago are now being selected based on their genomic merit, rather than BW alone. “This demonstrates the opportunities within the Discovery Project to present exceptional cow families that have the potential to contribute a great deal to the Holstein Friesian breed,” Taylor says.

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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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DAIRY NEWS AUGUST 9, 2022

Make sure your feed is FeedSafe NZ accredited

ANIMAL HEALTH // 23

Stock truckers to help MPI boost NAIT compliance

Do you know if your f Find out at the

NZFMA Fielda

SUDESH KISSUN sudeshk@ruralnews.co.nz

CURRENT COMPLIANCE with tagging and

registering of National Animal Identification and Tracing (NAIT) animals sits at around 93%. And the Ministry for Primary Industries is working with farmers and animal transporters to raise compliance. MPI’s national manager of animal welfare and NAIT compliance Gray Harrison has thanked the trucking industry for its support. “We’re working in whatever way we can to continue to drive that figure up and we appreciate the support of the trucking industry to achieve that,” says Harrison. “Truck drivers have a lot of interaction with farmers so it’s great

MPI says it is working with farmers and animal transporters to raise compliance.

they’re helping to carry this important message. The simple act of asking for a declaration gives people in charge of animals a good reminder of their legal requirement to ensure all NAIT animals are tagged and registered before they come on the truck.” Last month MPI reminded farmers that transport companies are checking that all cattle and deer are tagged and registered under the NAIT

scheme. Under the NAIT scheme all cattle or deer must be fitted with a NAIT tag and registered in the NAIT system by the time the animal is 180 days old, or before the animal is moved off farm. Harrison says transporting an untagged animal is an offence and transporters could be liable unless the truck driver has a declaration from the supplier stating the animals are tagged

and registered. “Under recently changed rules, livestock transporters can request a declaration as an alternative to physically checking for tags. “This recognises that checking individual cattle for NAIT tags early in the

morning when it is dark, ahead of a busy schedule of other stops, is easier said than done.” Transporting New Zealand, which represents about 1,200 road transport companies that operate about 14,000 heavy trucks, is putting its sup-

communities if we were unable to track and trace animals.” Penalties in the NAIT Act recently increased tenfold to $100,000 for an individual, and up to $200,000 for a body corporate. Harrison says while incurring one of these penalties could hurt the bottom line for individuals, the inability to trace animals can have far reaching and serious consequences for everyone. “The NAIT tag and registration system is only as effective as the information entered in. If you are unsure about what you need to do, reach out. There is plenty of support available,” says Harrison.

port behind MPI to ensure NAIT compliance. “We’ve encouraged all livestock transport operators to ensure they carry, or have access to, a completed NAIT Declaration to Livestock Transporter form when transporting cattle or deer in New Zealand,” says Transporting New Zealand general manager industry Dom Kalasih. Harrison is reminding farmers that the NAIT scheme is a critical part of New Zealand’s ability to respond quickly to biosecurity threats. “We take non-compliance seriously because of the potentially devastating effect these threats can have on industry and

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NAIT OBLIGATIONS DURING CALVING During calving season, you must: ■ Fit all calves with a NAIT tag before they reach 180 days old (the tag should be in the central or inner part of the right ear, between the 2 veins) ■ Register any fitted NAIT tags within 7 days of tagging ■ Tag and register all calves before their first movement. So if you are sending them off your location, make sure you meet your NAIT obligations. If you’re buying calves If you’re buying calves, confirm with the seller: ■ That they have completed an Animal Status Declaration (ASD) form ■ That the calves are tagged and registered in NAIT ■ What the calves’ TB status is Do you know if your feed is FeedSafe accredited? Find out at the NZFMA Fieldays stand feedsafe-15x11.pdf

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The NAIT number of the calves. Remember to record receipt of animals in NAIT within 48 hours. If you’re selling calves Before you send your calves off-farm, make sure they’re tagged correctly and registered in NAIT. Using NAIT tags in numerical order will make them easier to enter into the system. Using secondary identification, such as birth tags, may also be helpful. It’s an offence not to tag and register your calves, unless they are exempt from tagging. For example, bobby calves (under 30 days old) going directly to slaughter from the property they were born on are exempt. If they move to another property before slaughter, you must tag and register them.

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DAIRY NEWS AUGUST 9, 2022

24 // ANIMAL HEALTH

Care for calves at all times SUCCESSFUL CALF

rearing starts as soon as the calf is born. DairyNZ urges farmers to ensure that all calves are cared for at all times,

including in the paddock and on their way to the calf sheds. It is also important that farmers look after themselves during calving.

“When moving cows and calves, stay safe and don’t turn your back on a newly calved cow. “Even cows that are usually placid can become

aggressive after calving. Keep the calf between you and the cow and don’t take any dogs or children into the calving paddock. “When lifting calves,

Calves that had a difficult birth or that are born in poor weather are more likely to have trouble standing and suckling.

Calving 2022

Support lifetime traceability • • •

•

Ensure all Calves are fitted with a NAIT tag before they reach 180 days of age. Register any fitted NAIT tags within 7 days of tagging. All calves must be tagged and registered before their first movement. So, if you are sending them off your location, make sure you meet your NAIT obligations. Calves must be NAIT tagged correctly.

For more information go to OSPRI.co.nz or 0800

842 463 NAIT is an OSPRI programme

Failure to comply with NAIT obligations may result in fines or prosecution issued by the Ministry for Primary Industries. For more information about your obligations as a PICA, please visit our website ospri.co.nz.

bend your knees and keep your back straight: get assistance if needed.” Record all births and make sure you know the recording procedures for your farm prior to calving. Record: ■ date ■ cow (dam) tag number ■ sex of the calf ■ alive or dead ■ calf identity/number ■ assisted or unassisted calving. Check the system used on your farm for matching cows and calves. If in doubt, checking the breeding information can help; is the cow due? When was the mating date? Does the breed match the bull/sire? LIC also offers parentage/DNA testing. Temporary identification tags can be used for newborn calves in the paddock, e.g. elastic neckbands with tags. Once back in the shed, proper tags can be put on in an environment that is clean and dry. If tagging in the paddock, ensure that the calf’s ear is clean, dry and disinfected. Calves that had a difficult birth or that are born in poor weather are

more likely to have trouble standing and suckling. Identify high risk calves as soon as possible, record their numbers, and bring them to the calf shed to get warm and have a good feed of colostrum. To prevent navel infection, spray navels of newborn calves in the paddock and on arrival at the shed. Completely spray or dip the navel with iodine. Don’t use teat spray as the glycerine in teat spray can keep navels soft and moist. Good practice is to pick up newborn calves from the paddock twice daily to bring them to a warm, clean environment and ensure they get enough gold colostrum in the first hours of life. The trailer used for picking up calves should be cleaned and disinfected regularly. To make transport safer for calves, AstroTurf or another easily cleaned, non-slip material can be used in the bottom of the trailer. Don’t overload the trailer – there should be enough room so that all calves can lie down comfortably. Make two trips if there is not enough room.

GOLD COLOSTRUM PROVIDING THE right amount of the best colostrum early in life is the right thing to do for your calves. Gold colostrum provides energy and health benefits for all calves and is part of world leading animal care. Calves are born with a non-developed immune system and must absorb antibodies from colostrum until their own immune system becomes functional. At 24 hours old, the calf gut “closes” and becomes unable to absorb antibodies. Calves that fail to absorb enough antibodies in the first 24 hours are said to have suffered Failure of Passive Transfer (FPT). Giving your newborn calves the correct amount of high-quality colostrum will help ensure: ■ Less scours and disease ■

Reduced death rates

■

Better growth rates

■

Improved lifetime productivity and fertility.

DAIRY NEWS AUGUST 9, 2022

MACHINERY & PRODUCTS // 25

Small bales in demand MARK DANIEL markd@ruralnews.co.nz

WHILE ROUND or large square bales have the dominant shares in the rural landscape, small square bales still play an important part, especially in the equine sector, but also where the large packages are not easily managed. Massey Ferguson continues to service this demand, calling on many decades of experience with conventional small balers like the MF 124 or 128 that were

extremely popular in the 1970’s. More recently, they have built on that experience and combined componentry, to create a simple machine that offers high capacity and bale density boosted by around 20%. The MF 1800 Series in-line baler range, built at the AGGO Groups, Hesston factory in Kansas has recently been joined by the latest model, the MF 1842S,

The MF 1842S is described as a premium, super heavy-duty machine.

which is described as a premium, super heavyduty machine. Configured to produce “standard”, 14” x 18” bales, the new model fol-

lows on from the MF 1840, which has earnt itself a reputation for perfor-

mance, reliability and low costs of ownership, says the company.

The MF 1842S employs heavy duty, highcapacity components, brought over from the MF 185 large square baler

and other high capacity models sold in North America. Highlights of the new design include a 22% larger flywheel, with bigger bearing assemblies to deal with the extra weight and forces created. Working at 100rpm, the plunger stroke is also 24% longer, resulting in increased compression due to the extra torque generated by the larger diameter fly wheel. In addition, a new 34kg counterbalance, mounted on the connecting rod, evens out

the peak loads imposed on the tractor and helps maintain a consistent plunger speed. To complement the high-speed plunger, a new pick-up reel has been sourced from the MF 185 big square baler and is said to run about 37% faster than its predecessor. Additionally, a new pre-forming chamber, enlarged by 75% over existing designs, is said to increase the baler’s capability to produce square bales of a consistent size and density. @dairy_news facebook.com/dairynews

FOLDING FRONT MOWER CUTTER-BAR FIRST PREVIEWED at Agritechnica 2019, Krone has release further details of its folding front mower cutter-bar. Described as a world first for a disc mower, the maximum working width of the EasyCut F400CV Fold is 4.04, said to be suitable to complement mounted/trailed rear mower or a butterfly combination set-up. The novel layout sees a hydraulic slewing gearbox folding the two outer discs into the space between the tractor wheels to reduce the width of the mower to under 3m for transport. The driveline remains connected and the discs stay in the cutting position. In the paddock, the discs fold back to the working position, are hydraulically locked and the side guards are lowered. Easily folded from the tractor seat, Krone says the wider working width eliminates the risk of the tractor running on previously cut grass, but also provides a large degree of overlap

Krone folding cutbar.

with rear mounted mowers, so eliminates uncut strips of grass, particularly on turns or curves.

In other Krone news, the Krone EasyCut TC Connect is a new development aimed at broadacre Austral-

ian and American farms, allowing two trailed mowers to be coupled to the same tractor, knocking down 13.08m

of crop in a single pass. Developed for use with the company’s EasyCut TC 400 and TC 500, when the TC 400 is matched to the company’s F320 CV/CR front mower, the working width of the combination is 10.3m. This increases to 10.7m with a F360 CV/CR and 11.1m with the F400 CV Fold. Suitable for Controlled Traffic Farming (CTF), the cutting width of the EasyCut TC500/F 320 CV/CR is 12.2m. Wider widths are also available, namely 12.6m with an F 360 CV/CR and 13.08m (40cm overlap each side) with an F 400 CV Fold. Said to be particularly beneficial in sensitive crops, such as alfalfa, Krone says Australian and American farmers often operate the front mounted EasyCut F 400 CV Fold together with two EasyCut TC 400 rear mowers, producing three identical swaths for uniform wilting. Each model can also operate as a solo machine. – Mark Daniel

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DAIRY NEWS AUGUST 9, 2022

26 // MACHINERY & PRODUCTS

A baler like no other MARK DANIEL markd@ruralnews.co.nz

WHILE BALER-WRAPPER combinations have

become the backbone of baled silage production, one machine stands out from the rest in the layout of the machine. The Kuhn i-Bio+ takes the

form of what appears to be a standalone baler, but once the bale is formed, it metamorphoses, by lifting the top half of the “bale chamber”, allow-

The Kuhn i-Bio+ stands out from the rest in the layout of the machine.

‘Built To Last Longer’

ing a wrapping system to secure the package. Originally from the Kverneland baler portfolio that was acquired by Kuhn, the Bio is now celebrating 20 years in production since its release in 2002. With compact dimensions of only 4.5m long, 2.75m wide and 2.25m high, with a tare weight of 3,700kg, the has found success with those farming in areas with small paddock sizes, wet or hilly areas and limited access. The compact combination features a 2.3m wide pendulum pick-up unit with five tine bars and cam-track technology to maximise crop pick-up and transfer to the integral rotor system. Options include the Opticut chopping system with a choice of 14 or 23 knife layouts, with the former offering a theoretical chop length of 70mm and the latter 45cm. Individual knives are protected with spring release mechanisms, while blockages are taken care of by the rotor disengage system and a drop floor design that clears problems quickly.

The bale chamber features 18 rollers that deliver bales of 122cm wide by 125cm diameter. Once a bale is formed, the upper portion of the machine tilts upwards, leaving the bale sitting on the bottom six rollers that act as a wrapping table. Removing the need for any type of bale transfer as required by conventional combinations, twin 70mm wrapping satellites move around the wrapping track at around 50rpm, to deposit six layers of film on the bale in around 20 seconds. After wrapping, a low discharge height allows the wrapped bale to be placed back on the ground with no damage. The i-BIO+ is fully ISOBUS compatible through the tractor terminal or, operated via a separate CCI 800 control unit. The machine can be used with conventional net binding or filmon-film bale binding and wrapping to eliminate the need for separate netting. Switching between film and net binding is said to be quick and simple as the two systems are separate.

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DAIRY NEWS AUGUST 9, 2022

MACHINERY & PRODUCTS // 27

New tractors set for 2023 debut MARK DANIEL markd@ruralnews.co.nz

AG MACHINERY maker John Deere has released details of the new 5M models set to hit the New Zealand market next year. The latest range will include 5075M, 5095M, 5105M, 5120M and 5130M models, equipped with a range of specifications tailored to the local market. Key upgrades will include the addition of a new 130-horsepower tractor and the use of the JD FT4 PowerTech engines throughout the range. At the engine level, the PowrQuad PLUS and Powr8 transmissions are available as an option on the 5095M, 5105M, 5120M cab versions and included as standard on the new 130-horsepower 5130M. John Deere Australia and New Zealand production system manager, Stephanie Gersekowski says PowrQuad PLUS

Key upgrades to John Deere’s new 5M models include addition of a new 130-horsepower tractor and the use of the JD FT4 PowerTech engines throughout the range.

and Powr8 transmissions make it easy for operators to find the right speed with clutchless, pushbutton shifting between gears, allowing them to focus on their work. “In addition, these additional transmission options would not only make the tractors easier to use, but also more efficient,” she says.

At the business end of the tractor, rear hitch-lift capacity on 5M Tractors equipped with PowrQuad PLUS and Powr8 transmissions has also been increased to 3,565 kg, compared to the previous 2,699kg available on Powr Reverser models, allowing the tractors to handle larger implements The enhanced horse-

power of the 5M line-up should also provide flexibility for operators to use an extended range of 1,000 rpm implements such as mower-conditioners, while models with the PowrReverser, PowrQuad PLUS and Powr8 provide a 1,000 rpm PTO speed in addition to the 540 and 540E options. On the operational

front, the company suggests that alongside the increased horsepower, the 5M Series will be the smartest tractor on the

market in its category, with a built-in display on the dash integrated with AutoTrac guidance. “AutoTrac provides

operators with straightline guidance to help reduce implement overlap and cutdown passes through the field, to save on fuel and decrease fatigue,” Ms Gersekowski said. “No other utility tractor on the market offers this level of integrated guidance on a mid-spec utility tractor, meaning the 5M provides unmatched productivity potential.” The entry-level guidance system is a costeffective solution that can be easily upgraded later by plugging in a premium display for mapping and prescription-based applications. The redefined MY23 5M Tractors are available to order from late 2022.

BATTERY-POWERED TRACTOR FOR OZ THE FIRST battery-powered tractor from John Deere will arrive in Australian farms by 2026. The announcement, made at the recent Hort. Connections event in Brisbane, is described as a “monumental shift” in the company’s production. John Deere Australia and New Zealand production system manager Steph Gersekowski says that in less

than four years, horticulture farmers will be able to leverage this intelligent and efficient equipment across their farms, creating what can genuinely be described as a significant step-change for high-value crop production. Deere acquired majority ownership of high-density and high-durability battery manufacturer Kreisel Electric earlier

this year, a move that has no doubt helped accelerate Deere’s “electrification journey”. It is understood that a battery electric utility tractor will soon commence trials on Australian farms, while John Deere will also bring electric batteries and chargers to market to facilitate the new technology.

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*The 2.99% p.a. interest rate offer is only available on all new Kuhn models purchased on or before 31 August 2022. Any approved loans must be drawn down before 31 October 2022. The 2.99% p.a. interest rate offer requires a 30% deposit (of the GST exclusive price) at the time of purchase and is available for term loans of 24 months. GST can be financed as part of the initial loan amount. Finance is provided by UDC Finance Limited. UDC Finance Limited lending criteria, fees, standard terms and conditions apply to any loan. Fees and rates are available on request.

DAIRY NEWS AUGUST 9, 2022

28 // MATING

Reducing the impact of negative energy balance for mating SAMANTHA TENNENT & MAT O’SULLIVAN

A NEGATIVE energy

balance (NEB) is when the energy demands for lactation, maintenance and activity are not met by dietary intake and the cow is forced to mobilise its fat and muscle to provide energy to meet the deficit. All cows enter into a state of NEB for six to eight weeks after they have calved and some condition loss is inevitable. It’s important to minimise the body condition score (BCS) loss to a maximum of 1.0 otherwise it will significantly impact health, production and reproduction of the cow. And if too many cows within the herd lose large amounts of condition there can be substantial collective impacts. Cows need to stop losing condition and be in a state of positive energy balance before mating starts. So how can you minimise condition losses and support the herd before mating starts? Use the transition period In the window from three weeks pre until about three weeks postcalving identify any at-risk animals and manage them accordingly: Allocate feed according to BCS. Cows at or above target BCS should

be fed 90% of their daily energy requirements for two to three weeks before calving. And cows that are below target BCS should be fed 100% of their daily energy requirements. After calving the aim is to reduce their BCS loss and the biggest driver in this period is the nutritional management as a springer and the management of how energy is spent relative to intake. Typically, it takes around 10-20 days post-calving for a cow’s appetite to return to optimal – this is the period of steepest condition loss. Cows that are below BCS are at direct risk of infectious disease, such as metritis and mastitis, and cows that are above are more at risk of metaboloic diseases, such as milk fever and ketosis which weaken the immune system also putting them at risk of metritis and mastitis. Use strategies like once-a-day (OAD) milking for several weeks or if milking twice daily identify thin cows and separate them from the main herd and/or preferentially feed them. Greater losses than 1.0 BCS indicate poor feed-

Cows need to stop losing condition and be in a state of positive energy balance before mating starts. Left: Samantha Tennent.

ing from six weeks postcalving, ill health or a cow that was greater than BCS 5.5 at calving. Get ready for mating After the post-calving BCS loss, cows should begin to gain BCS which

is affected by their genetics and nutrition. Early calving cows should be gaining BCS before planned start of mating but research does show cows that are producing high levels of milk pro-

duction gain less BCS than lower yielding cows during milking. Managing pasture quality and strategic use of supplements in the premate/mating period is crucial to ensure energy intakes are at or exceeding maintenance and milk energy demands. If cow BCS and pasture residuals are on target adding supplements to the diet will not improve reproduc-

tion. But if supplements are needed, ensure they are good-quality and free from spoilage. The decision on supplement type should be based on the cost/benefit of the predicted milksolids response as research suggests there is no reproductive benefit of feeding high-starch supplements, such as grains, compared with high-fibre feeds, for example PKE or pasture silage.

But the majority of outcomes are relative to BCS at calving and productivity losses can be mitigated by achieving targets, BCS 5.0 for mixed age cows and 5.5 for first and second calvers. So whether or not the cows hit them this season there is a great opportunity to improve for next season. • Samantha Tennent is general manager of WelFarm Ltd and Mat O’Sullivan, Veterinary Centre Oamaru

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What’s your replacement hiding? A BVD status test can reveal all. BVD (Bovine Viral Diarrhoea) is estimated to cost dairy farmers around $70,000 a year for the average sized herd. It’s often called ‘the hidden disease’ - affecting reproduction rates, growth rates and lowering milk production and general herd health. Some farmers simply don’t know their herd is infected until it’s too late. The good news is LIC’s BVD Status Pack can conveniently and cost-effectively determine your herds’ BVD status, through three bulk milk tests and one test on individual herd test milk samples. This way, you can monitor your herd throughout the season, as well as record a lifetime BVD status against individual animals, giving you the chance to swiftly remove any infected animals from the herd saving you from becoming another statistic.

Talk to your Agri Manager today and order a BVD Status Pack before the start of mating.

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DAIRY NEWS AUGUST 9, 2022

30 // MATING

Herd testing can help boost production SOME DAIRY farmers

could be missing out on up to 160 kgMS of production because they are not herd testing. That’s according to CRV herd testing manager Mark Redgate. While the number of cows being herd tested jumped by 1.2% last season, many farmers may still not realise its value. Redgate wants to change that. For some dairy farmers, herd testing can be another job to add to the list. They may not see the upsides. More specifically, they may not see how the expense of herd testing could make them enough money to justify the financial and labour costs of getting it done. Redgate says he understands the rationale. “I wouldn’t spend money on things that don’t improve my profit. But making money is the result of making enough of the right decisions,” he says. “That’s what herd testing is all about – giving farmers the kind of information from which they can make better moneymaking calls. “The other thing to remember is that some key information and insights are hidden. You can’t know what’s really going on with an individual animal without this kind of testing.” 160 kgMS is a stat Redgate likes to talk about with farmers. 160 kgMS per year is the production difference between the top 20% of a farmer’s cows and the bottom

CRV herd testing manager Mark Redgate says many farmers may still not realise the value of herd testing.

20%. That represents a big gap in revenue between these two groups of animals. It makes financial sense to know which cows are in the top 20%. You breed from these animals to increase the productivity of your herd, points out Redgate. Knowing which cows are in the bottom 20% can also be profitable. The worst performers can be culled or bred for dairy beef, while animals with genetic potential can be inseminated with sexed semen or targeted with specific traits to boost the productivity potential of their progeny. Redgate says when he talks about identifying the top and bottom performers, many farmers feel confident they know their cows. There’s no denying farmers observe their animals every day. They watch their cows’ behaviour and can see who the best producers are, he says. But he adds that unfortunately, looks can be deceiving. “Take the cow with high milk volume. Her

quantities suggest she’s a good money earner, but farmers are not paid strictly by volume; they’re paid on milk fat and milk protein, neither of which can be discerned with the naked eye. “But a test of 30ml of milk from that cow will reveal the exact composition of her milk and the true profitability of that animal. “Farmers are often surprised at how best and worst performers are reordered after a herd test. “The same is true for animal health. We’ve tested herds and discovered cows that they were carrying mastitis but were asymptomatic. That means these cows weren’t going down sick themselves but were happily spreading mastitis throughout the herd. “There’s no way to detect that visually. But we can spot a dangerous somatic cell count from that 30ml test of milk. “By capturing your herd test results in myHERD, you can interpret and link the data to help you make better decisions.”

ADD TO YOUR ‘TO DO’ LIST MARK REDGATE says he understands that farmers are constantly battling an endless list of things to do. “They’ve got cows that are empty, and animals struggling with eczema. “The idea of spending money on a herd test seems more trouble than it’s worth, especially if that test might lead to the culling of animals. But this is precisely where a herd

test shines. “In a herd’s bottom 20%, there are animals that will continually drain resources and cost farmers money. “But there are also animals in that lower 20 with the genetic potential to be among a farmer’s best performers. Based on milking stats alone, they look the same. So which ones are which? Herd testing will tell us.

DAIRY NEWS AUGUST 9, 2022

MATING // 31

Superior genetics deliver benefits DAIRY FARMERS are being encouraged to consider using genetically superior beef bulls across their herds this spring to help create greater value along the value chain. This is based on a recent report summarising the findings of the Beef + Lamb New Zealand Genetics’ Dairy Beef Progeny Test (DBPT). Written by farm consultant Bob Thomson, the report summarises the findings of a whole-farm modelling process, where the progeny of the highest ranked beef bulls from the DBPT were compared with the progeny of average bulls. These showed a 15 per cent growth advantage at 400 and 600-days compared to the average bulls. This would improve gross margin returns by between $211 and $261/ ha and improve feed conversion efficiency by 9 per cent. This in turn would reduce greenhouse gas emissions. The modelling demonstrated that when the top 10-15 per cent of DBPT bulls for marbling (intramuscular fat) were compared with the average DBPT bulls there was a 27 per cent improvement. This correlated with an increase in the strike rate with beef quality supply programmes, although with a price premium of 30c/kg CW, this increased the gross margin by up to another $51/ha.

The modelling also compared one and two winter finishing policies and highlighted clear advantages and disadvantages to both. The ranking of DBPT bulls did not change between the two policies. Compared to the twowinter, the one-winter system occupied one third less land area with 15 per cent more feed conversion efficiencies. The disadvantage was in lighter carcase weights (160-220kg CW) when processed between November and February. These weights were outside targeted beef grading and associated payment schedules. Building a connection between dairy farmer and finisher The report noted a disconnect between dairy farmers and beef finishers and the advantages for both parties to address this. Working with a dairy farmer who is investing in superior beef genetics gives the finisher the opportunity to benefit from significantly improved growth rates and carcase attributes. The report states that this disconnect has come about because finishers tend to prefer to buy dairy-beef spring-born weaners in autumn rather than rear them over summer. In drought years, when this is most apparent, there is little differ-

ence in the price between autumn and spring calves. Dairy farmers producing high quality calves often felt frustrated with variable and inconsistent demand from beef finishers irrespective of

whether they are four to five-day old weaners or 100kg weaners. “Once the calves leave the dairy farm the connection back to their genetic merit is usually lost.

Dairy farmers producing high quality calves often felt frustrated with variable and inconsistent demand from beef finishers.

With calving here, Better herd’s now ismanage the timeyour to think ofin-calf ratesfuture and subsequently the your herd. profitability of your farm.

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DAIRY NEWS AUGUST 9, 2022

32 // MATING

Sexed semen: why its finally time FOR THE longest time,

sexed semen was talked about, but not really implemented in mainstream dairy farms. This is rapidly changing. Artificial breeding allowed us to choose which males created offspring. Sexed semen with genomic testing now gives us control over which females contribute to our future herd. It’s a truly powerful combination. The ability to quickly create more efficient, profitable cows from your top performers means that it’s an exciting time to be farming. You have far more control in matching market demand to future herd genetics, in a way that optimises your future operation. With all the pressures coming onto farm production, why wouldn’t we want the best possible animals in our future herd, as quickly as possible? Industry and technology changes Things happen gradually, then suddenly. In the

20 years that sexed semen has been available, understanding of reproductive science across the industry has come a long way. Many small steps have been taken. More farms have the fundamentals under control and are running a tight ship. At the same time, emerging opportunities and pressures to farm more profitably have helped create the environment for greater uptake of sexed semen. More specifically, nutrition and management has improved steadily. Close scrutiny of health and fertility going into repro has become standard. Reproduction programmes have become better measured and improvement made. Reported conception rates of sexed semen have also improved, tipping the scales further. While sexed semen does cost you more per straw, the investment is increasingly justified for more and more farms. Heat detection matters

Sexed semen with genomic testing now gives farmers control over which females contribute to our future herd.

Timing matters. Inseminating a cow when she isn’t in heat is a total waste of a straw. Mistakenly inseminating pregnant cows later in mating can put pregnancies at risk. Farmers have been rightly wary to use higher value straws where heat detection has been a bit marginal; they know there’s longer odds of a payoff. Breeding at the optimal time is the pinnacle of your whole repro effort, reflected in your conception rate. Even if you’ve done absolutely everything else right, you must accurately call heats to

maintain higher conception rates. This is especially important where efficacy of the sexed product still sits lower than standard product. Genetic gain and more optimal use of beef straws With sexed semen creating better replacements more efficiently, capacity becomes available for increased use of beef genetics. This can reduce costs of repro and increase value of progeny. Farmers are accessing benefits from short gestation (increased days in milk), greater calving ease and higher growth

rates with traits that processors can pay more for over time. It’s really not as simple as just choosing the lowest price straws for breeding. Avoid overspending Beyond the initial cost of the straws, overuse of sexed semen beyond your elite group produces lower merit females that you don’t need as replacements, while costing the opportunity to use beef genetics potentially. Nine months after overspending on sexed semen, you may then face additional costs with feed, labour and facilities. Overcrowding car-

ries additional health risks. You will also want to avoid culling productive older cows in favour of first-lactation cows that are still growing, by better matching replacements to your ideal cull rate. Getting the use of sexed semen right will help you achieve those goals. Getting it wrong will only cost you money. Putting it all together With the fundamentals under control, sexed semen is a powerful tool for improving your herd and optimising profitability. Pairing low-cost accurate heat detection with

sexed semen means you can invest with confidence. For a fraction of the price of a straw, accurate and clinically-proven electronic heat detection is available that pinpoints optimal timing of heat without having to train staff in new systems and software. Because return heats are also covered, these are a similar outlay to patches and become cheaper over longer mating programmes. Changes in reproductive technologies can seem overwhelming. Do your homework and get to grips with how they can help. Be clear on your goals before you go `all in’ and run up excess costs. It’s understandable why uptake of sexed semen is currently strong. Setting excitement aside; with thorough evaluation of proof, you can work with your advisors to make sound investments that help deliver the results that you’re after. • Article supplied by Farm Shed Labs.

BENEFITS TO SYNCHRONISED MATING JESSICA MARSHALL jessica@ruralnews.co.nz

A RECENT study has confirmed

numerous benefits for dairy farmers to synchronising mating of heifers. The two-year study, which veterinarian Richard Nortje says is the first of its kind in New Zealand, was commissioned by AgriHealth.

Comparing bull mating with synchronised mating following a DIB Co-Synch program, the study aimed to compare in-calf rates between the two groups. “In terms of our trial set up, we had about 1450 heifers across five farms,” says Nortje. He says the heifers were weighed within a month of the planned start of mating and the first DIB Co-Synch

visit. The animals were then randomly allocated to either the synchrony group or the control group. The study found a number of benefits, including higher in-calf rates, with more heifers from the synchronised group pregnant at the end of mating than in the control group. “In terms of results, the key benefits of the synchrony was that there was on average 11 days more in milk

compared to bull mating,” says Nortje. He says there was a 55% average conception rate to the synchrony heat. Nortje says there were 3% more pregnant heifers, 11 days more in milk resulting in 13kg more milk solids per heifer. Something else the study wanted to look at, according to Nortje, was whether there were any additional benefits to calving earlier.

For this part of the study, researchers measured premating heats and normal fertility outcomes during the heifers’ first lactation. “There were no further flow on benefits from the synchrony group,” says Nortje. In other words, he says, all the benefits of synchronised mating were captured during the first mating period. @dairy_news facebook.com/dairynews

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DAIRY NEWS AUGUST 9, 2022

34 // MATING

Achieving BCS targets BODY CONDITION

scoring (BCS) is the assessment of the amount of fat covering the bones of a dairy cow, regardless of her body size. It involves assessing the amount of fat covering specific locations on the cow, such as around the head of the tail and over the backbone, to determine how thin or fat the animal is. A cow’s BCS provides a reasonably accurate measure of her energy reserves, and BCS targets at key stages of lactation

A cow’s BCS provides a reasonably accurate measure of her energy reserves.

have been identified to optimise dairy production systems. These targets are

based on research studies undertaken in New Zealand and internationally over the last 30 years.

Achieving target BCS at key critical times of the year is important to optimise milk production,

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reproduction, cow health and welfare. Although there are significant physical differences between the common New Zealand dairy breeds, the same guidelines for BCS assessment can be applied to all breeds. What can we use BCS for? Managing body condition score is all about managing the herd’s nutrition and lactation programme. Condition scoring at critical times throughout the year lets farmers know if they need to consider changing herd nutrition or shortening lactation of some cows. Condition scoring information contributes to key decisions, such as: Determining future feed requirement (and

feedback on historical strategy) Determining which cows to dry-off and when Explaining reproductive performance (condition at mating or BCS lost post-calving) Once there is a system in place to measure body condition, then feed budgets, milking frequency and drying-off plans can be developed to achieve body condition targets while milksolids production targets are also met. Body condition score targets BCS at calving Mature cows should calve at a BCS of 5 Heifer & rising 3 year old should calve at a BCS of 5.5. There should be no more than 15% of the herd above or below these

targets. BCS at mating The average loss in BCS after calving should not be more than 1.0. And there should be a maximum of 15% of cows below BCS 4.0 and early calving cows should be gaining BCS before the planned start of mating. When to BCS the herd Regular condition scoring allows farmers to monitor nutritional trends and provide sufficient warning to take action. The most important time to body condition score cows is during summer and autumn. This allows individual groups of cows to be managed differently to ensure BCS targets at calving are met. • Article courtesy of WelFarm NZ

WHO SHOULD SCORE THE HERD? THE BODY Condition Score Assessor Certification Programme has been designed to help standardise condition scoring across New Zealand. Farmers can use a Certified BCS Assessor to score their herd with the confidence that their chosen assessor is consistently scoring to the NZ BCS system. It is a requirement that any BCS data being entered into the WelFarm programme has come from a Certified BCS Assessor. How to improve? There are three effective strate-

gies for BCS gain prior to the next calving: ■ Changing from twice-a-day to once-a-day milking. ■

Providing supplementary feeds to milking cows and dry cows.

■

Drying off cows early.

■

An effective strategy to achieve calving BCS generally involves a mix of all three.

Your veterinarian and farm advisory network can help determine what steps you could take to help your cows reach their BCS targets.

The extra eyes and brains you’ve always wished you had around the farm. Receive accurate, timely updates on your cows’ reproductive status. Reduce instances of silent heats and heat detection fatigue.

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Work smarter Now even inexperienced staff can make informed decisions using data collected around the clock, 24/7.

Better health management Receive alerts about changes in behaviour that signal a potential health concern, often before the cow presents with any visual signs of illness.

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Using Estrotect™ Breeding Indicators, identify when cows are ready to breed when the breeding patch or equivalent area rubs off. Make easy yes or no decisions with Estrotect Breeding Indicator.

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Available in 5 colours $112.50 (excl GST) per 50 pack

BREED >

Order Estrotect through our website or contact your local CRV field consultant to receive a sample

BETTER COWS

BETTER LIFE

0800 262 733 | CRV4all.co.nz