Dairy News 12 December 2023

Co-ops lift milk price by 25c. PAGE 4

EVOLVING GENETICS Change of guard Page 20 UNDER CONTROL Fert spraying kept in check Page 22

DECEMBER 12, 2023 ISSUE 533 // www.dairynews.co.nz

AVALANCHE OF LAWS SET TO GO The days of farmers facing an avalanche of regulations will be a thing of the past, says National’s new Northland MP Grant McCallum.

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DAIRY NEWS DECEMBER 12, 2023

NEWS // 3

Patterson vows to work for rural NZ LIVE ANIMAL EXPORTS WORTH $500M

SUDESH KISSUN sudeshk@ruralnews.co.nz

Synlait search for new chair. PG.13

SIDE 2024 heading to Lincoln. PG15

Robots help sustainability drive. PG.21

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NEW MINISTER for Rural Communities Mark Patterson says rural communities often get marginalised behind urban issues and he intends to change that.

Patterson, who is also an associate Agriculture Minister, told Dairy News that he was determined to get cracking in his new role.

This week, Patterson will be visiting Gisborne to get a first-hand look at recovery efforts in the area following devastation caused by Cyclone Gabrielle earlier this year.

“It will give me a chance to see first-hand where things are sitting in terms of recovery,” he says.

“We will see what their needs are and what more can be done to help them.”

Patterson, an Otago sheep and beef farmer, is serving his second stint as a NZ First MP. He served in Parliament six years ago. He was given a portfolio outside Cabinet as part of the coalition deal.

He says he’s honoured to be given the role, given he has lived in rural communities all his life.

“I’m passionate about them and understand the issues they face.

Rural communities often get marginalised behind urban issues. We are going to change that by working for rural communities and farmers.”

Patterson believes the large number of farmers in Parliament

MINISTER FOR Rural Communities Mark Patterson says live exports of animals is a $500m trade that the country cannot afford to do without.

Patterson says the new Government will be working to overturn the ban placed by the former Labour Government.

“We will tidy up legislation so that animal welfare and safety of staff are paramount,” he says.

Live cattle exports earn about $320 million annually for farmers and exporters. NZ cattle exports have helped China build their dairy herd, with nearly 135,000 cattle exported in 2021.

However, in April this year, Labour banned livestock exports after an independent review said they could damage New Zealand’s reputation regarding animal welfare. The reversal of the livestock exports ban is part of the coalition deal between National and NZ First. ACT also supports lifting the ban.

Dairy News understands new legislation around reversing the ban could be tabled in Parliament by the middle of next year.

New Minister for Rural Communities Mark Patterson.

and holding associate agriculture roles outside Cabinet make for a strong voice for rural communities.

The farmer MPs will work as

a team in their delegated areas of responsibility.

They will be led by Agriculture and Trade Minister Todd McClay, a

National MP. Other farmers holding associate agricultural roles are former Feds president Andrew Hoggard and National’s Nicola Grigg.

DAIRY NEWS DECEMBER 12, 2023

4 // NEWS

Days of over-regulating over!

SUDESH KISSUN sudeshk@ruralnews.co.nz

THE DAYS OF farmers

facing an avalanche of regulations around how they farm will be a thing of the past, says National’s new Northland MP Grant McCallum.

The sheep, beef and dairy farmer told Dairy News that the new coalition Government will work with farmers.

“We will give them a challenge, then we’ll sit down with them and work together to find solutions. The days of ramming through legislation without proper consultation are over.”

McCallum says farmers were under enormous

but unwanted pressure from the last government.

“The volume of change and the way the previous government went about it was appalling. We will bring the farming sector into the tent and work through issues with them.”

He points to work being done in water catchments in some parts of the country, where farmers work together with other stakeholders within the catchment and successfully work through issues.

“This what farmers want; we are pretty innovative and very good at things we do.”

McCallum, a first-time MP, thanked the people

New Northland MP Grant McCallum says the new Government will work with farmers rather just making regulations.

of Northland for putting their faith in him.

He says the electorate covers both farming and

urban communities and he will be working for

everyone.

McCallum has a farm at Maungaturoto running 5000 ewes, 500 dairy cows and 300 bulls. He has lived in Northland since the late 1970s and has contributed to local organisations and community groups since then.

“I love Northland and, as its local MP, I’ll be laser-focused on issues that matter, like the cost of living,” he says.

“National also backs farmers. As a farmer myself, I understand the significant contribution farmers make to the economy and to Kiwis, both here in Northland and across the country.

“With National, I look forward to advocating for farmers and farming

communities to reduce their regulatory burden and costs and let them get on with doing what they do best – leading the world in innovative farming practices that help to drive New Zealand forward.”

Grant serves as chair of the Kauri Museum at Matakohe and has been a member of the Bluegreens executive since 2001. In the past, he has served as vice president of the Northern branch of Federated Farmers and on the boards of several Northland sporting organisations.

Grant holds a Bachelor of Commerce in Agriculture from Lincoln University.

IS CHINA-LED RECOVERY ON? IMPROVED DEMAND from China

has helped push the forecast farmgate milk for the season by 25c.

But Fonterra cautions that it’s still early in the season and things could change.

Last week Fonterra narrowed its forecast milk price range to $7-$8/ kgMS, with a new mid-point of $7.50/ kgMS. Fonterra chief executive Miles Hurrell says the revised forecast reflects recent strengthening in demand for reference commodity products from key importing regions, including improvement in demand from China during the first quarter.

“Global Dairy Trade prices have lifted, and our sales book is also well contracted for this time of year, giving us confidence to increase our

forecast Farmgate Milk Price.

“It’s still early in the year, with potential for further volatility in commodity prices, so we will continue to watch market dynamics closely and provide updates as needed,” says Hurrell.

China, Fonterra’s biggest market, has been struggling since harsh Covid lockdowns. While Chinese growth forecasts have recently been revised higher, output next year still looks likely to remain below the historical trend, says ASB economist Nat Keall.

He notes that since bouncing off their August lows, dairy prices have struggled to maintain momentum.

The overall Global Dairy Trade (GDT) index is currently around 17% off its lowest point but has essentially flatlined over the last four auctions.

STRONG PERFORMANCE FONTERRA ALSO reported strong earnings for the first quarter due to improved performance in all three of its sales channels and lifted the midpoint of its forecast earnings for the year up 5c/share, with the range moving from 45-60 cents per share to 50-65 cents per share.

Fonterra’s profit after tax is up 85% on this time last year to $392 million, equivalent to 24 cents per share. EBIT is up 63% to $575 million.

These earnings are from continuing operations and exclude the performance and impact of selling DPA Brazil*.

Chief executive Miles Hurrell says higher margins across the Co-op’s Ingredients, Foodservice and Consumer channels have driven the lift in earnings, with gross margin up from 15.5% this time last year to 21.4%.

“Our Foodservice and Consumer channel performance is due to improved margins as well as the co-op allocating more milk to these higher returning channels.

“We’ve also seen continued strong performance in New Zealand Ingredients, but lower margins in Australia Ingredients.

“Looking ahead, we expect these higher margins to continue throughout the first half of the year, before tightening across all three sales channels in the second half of the year.

“In short, the season is shaping up more constructively than we once feared, but prices remain cyclically low compared with where they averaged the last two or three seasons,” he says.

“It’s worth noting too that whole milk powder (WMP) offer volumes were reduced by close to 20% in last week’s auction compared with the last one, so the gains probably aren’t reflective of much increase in underlying demand.

“The WMP contract curve also shows that recent moves in prices have been predominantly concentrated in the front-end rather than among the latter dated contracts.

That suggests buyers’ expectations for the longer-run demand and supply balance haven’t really changed.”

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DAIRY NEWS DECEMBER 12, 2023

NEWS // 5

Ignore Scope 3 target at your own peril – farmer SUDESH KISSUN sudeshk@ruralnews.co.nz

FARMERS MUST follow directives

from their processors on sustainability or risk losing markets for their products, says Waikato Federated Farmers executive Richard Myers.

He says dairy farmers are interlinked with their processors and cannot ignore the sustainability targets they set.

Myers was reacting to comments

by Canterbury farmer and former Feds

dairy chair Willy Leferink (Dairy News November 28th issue), who believes that farmers should be wary that milk processors don’t take over management of dairy farms under the guise of scope 3 emissions target.

Leferink, who has a sharemilker on his 200ha Canterbury farm and supplies Synlait, says if applied correctly, scope 3 targets might deliver some easy wins, like tidying up particularly those farmers who drag the chain on sustainability.

However, he warns that if reducing emissions intensity on farm becomes

a box ticking exercise, then it won’t mean anything. Fonterra recently announced that they plan to reduce their on-farm emissions intensity 30% by 2030. It’s a co-op wide target.

But Myers points out that sustainability isn’t a debate about farmers running their own farms.

“Farmers need to understand why we need to reduce our greenhouse gas emission,” he told Dairy News.

“For Fonterra, dairy farmers have been set a target of 30% reduction of GHG emissions by 2030. Farmers must focus on what their customers

ask for, when they buy our products, their specifications.

“They pay us our returns for the products we produce. We want to continue to retain our high value customers like Nestle, Mars, Starbucks, Yum Brands.” Myers says banks are now also asking that farmers address these climate issues.

“We have legal and reporting obligations from Government to go down this track and We want to be leaders in sustainability.

“Dairy farmers are interlinked with their processors which means we must

listen to their directives: we must be customer led.”

Myers, a Fonterra supplier, says the co-operative board and management are in complete agreement on Scope 3, so it is over to farmers to act.

“It is going to be harder for some farmers than others, so there needs to be support for them.

“Some of the less efficient farmers may drop out but that doesn’t mean we change the objectives. It is important that our leading farmers set the standards and DairyNZ help the others to learn and adopt best practice.”

CHANGE IN GOVT SET TO BOOST FARM SALES JESSICA MARSHALL jessica@ruralnews.co.nz

RECENT DATA from the Real Estate Institute of New Zealand (REINZ) shows October was another month in which there were fewer farm sales than at the same time in 2022.

Overall, there were 156 farm sales in the three months ended October 2023, down 20% on the 195 farm sales completed in the three months ended October 2022.

In the year to October 2023, 34.5% fewer dairy farms and 8.6% fewer dairy support farms were sold compared to October 2022.

For the three months ended October 2023, the

median sales price per hectare for dairy farms was $32,690 (15 properties), compared to $32,690 (15 properties) for the three months ended September 2023, and $47,565 (24 properties) for the three months ended October 2022.

The median price per hectare for dairy farms has decreased 31.3% over the past 12 months. The median dairy farm size for the three months ended October 2023 was 118 hectares.

Three regions recorded an increase in the number of farm sales for the three months ended October 2023 compared to the three months ended October 2022, with the most notable being Waikato

Uncertainty surrounding product prices, particularly for the dairy and pastoral farming sectors, is weighing heavily on buyers’ decisions.

(+6 sales) and Auckland (+5 sales).

Canterbury ( -15 sales) and Bay of Plenty ( -9 sales) recorded the largest decreases in sales.

REINZ rural spokesperson Shane O’Brien says these latest statistics represent a continuing trend throughout 2023 with a decrease

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in the volume of sales across all categories across most of the country. “An increase in sales is noted in both the Auckland and Waikato regions but a drop in the volume of sales compared to the same time last year was evident in Canterbury and Southland,” O’Brien says.

He says much of the decrease in volume can be offset by a late Spring with many properties coming to the market later than normal due to the wet winter while some vendors could be choosing to wait for some direction from the recent general election before going to market.

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“There appears to be no shortage of listings across New Zealand this spring, giving buyers a healthy selection,” O’Brien says.

“Many buyers however are being cautious around environmental compliance and future land uses.”

O’Brien says uncertainty surrounding product prices, particularly for the dairy and pastoral farming sectors, is weighing heavily on buyers’ decisions.

However, he says, the recent confirmation of the three-way coalition between National, ACT and NZ First and the promise of a ‘farmerfriendly’ government should impact market sentiment.

“Strong recent sales

in the Waikato in the dairy support sector are an encouraging sign, but there are still some headwinds facing the horticulture and forestry sectors that have slowed sales this quarter,” he explains.

O’Brien says that the median sale price paid across New Zealand has increased slightly in the last quarter and is up on the same time 12 months earlier.

“While this is an encouraging sign, market vendors do need to be mindful that with an abundance of listings and a cautious pool of buyers, any offers when presented may need to be carefully considered as buyers take into account the changing dynamics of the market.”

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DAIRY NEWS DECEMBER 12, 2023

6 // NEWS

Co-op showcases goodness of NZ milk to Chinese resellers PURCHASING ABOUT a

third of global contracted volume on the GDT auction platform, Fonterra’s authorised resellers in China are an important part of the co-operative’s ingredients business.

During the last week of November, Casey Thomas, vice president of New Zealand Milk Products (NZMP) Greater China, led representatives of 16 authorised resellers around a dairy farm, manufacturing site and Fonterra’s headquarters in Auckland, showcasing what makes New Zealand milk special.

“We really wanted to bring them to New Zealand and show them the journey from the farm to the factory, spend some

time at head office and for them to see where the magic starts that enables their businesses in China,” says Thomas who looks after the co-operative’s ingredients business in China.

Fonterra has built solid relationships over the years with the resellers, one of whom had purchased whole milk powder at all but one GDT event since the platform was established in 2008.

“This particular reseller had attended 343 out of 344 GDT events,” Thomas remarked.

Some of the biggest resellers have been working with Fonterra for more than 20 years. They play a key role in devel-

A team of 16 authorised China resellers of NZMP ingredients toured the dairy industry here recently.

oping new sales channels and pipelines to create value for the co-op and bring some stability to the volatile dairy com-

modities market.

“Our authorised resellers are our critical partners.

“They work alongside

our sales team to provide high quality services to our customers, support market insights and compliance, and expand

our customer base,” says Thomas.

Fonterra’s main ingredients sold in China are whole milk powder, skim

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milk powder, cheese, probiotics and protein.

The ingredients are used to create in various products in China including drinking milk, infant formula, cheese powder and medical nutrition products.

“There are also some interesting applications like cheese powder, cheese lollipops and Chinese pastries like pork floss roll,” Thomas says.

China has long been a key market for Fonterra and the favourable margins in the ingredients channel, especially the cheese and protein portfolios, contributed to the co-op’s strong 2023 financial result. @dairy_news facebook.com/dairynews

DAIRY NEWS DECEMBER 12, 2023

NEWS // 7

Things are looking pretty good!

PETER BURKE peterb@ruralnews.co.nz

DAIRYNZ’S GENERAL

manager of farm performance, Sarah Speight says while things are looking pretty good on farm, there is still concern about what the future might hold financially.

For example, she says while the forecast farmgate milk price is reasonably positive now, many farmers are worried about what might happen should this drop to $6/kgMS in June next year. She says that would be the time when interest rates would be reviewed and that, coupled with ongoing rises in the cost of fuel and other inputs, would really put the squeeze on some people.

Overall, Speight says the situation on farm is pretty good in terms of grass growth and crops.

The exception to this she says is the East Coast and Hawke’s Bay which were badly hit by Cyclone Gabrielle and where farmers are still repairing pasture and infrastruc-

The situation on farm is pretty good in terms of grass growth.

Sarah Speight, DairyNZ

ture on their farms.

“But in other parts of the country silage making is taking place and sup-

plement levels are nearing normal. Remember that last year was hard in terms of making supple-

ment,” she says.

In recent weeks rain has made this a challenge, but Speight says they have been told by NIWA that the weather will be dry for the next four weeks so ‘wait for the dry’ is the message.

But she warns farmers to leave sufficient grass behind so that pastures can recover if the dry conditions continue for

too long.

One thing that Speight says she’s noticed this season is that several farmers are using deferred grazing as a means of conserving pasture – something she says was common practice many years ago but is suddenly becoming fashionable again.

“In terms of milk production, most people are

playing catch-up because the early season production was lower than usual, except for Southland and Canterbury.

Overall the South Island has done well, and after a slow start the North Island is now approaching normal,” she says.

Finally, Speight says with all the uncertainty that is still about, people are stressed and scratchy

and mental health is something DairyNZ has on its radar to deal with.

Other issues such as education and the need for better infrastructure is high on the needs list for farmers and their families. For many it’s a waiting and hoping game to see how much the new Government can do to sort things out in a reasonable time frame.

FARMERS UPBEAT BUT FOR HOW LONG? DAIRY FARMERS are seemingly more upbeat than they were three months ago but how long this positivity remains seems to depend on what the new Government does in the coming months.

So says Sarah Speight, DairyNZ’s general manager of farm perfor-

mance. She says the election of the new Government is playing a big part in the positive mood of farmers, along with the stabilisation of world dairy prices. But at the same time, she says farmers are particularly worried about the way that the new freshwater regulations are being imple-

mented by regional councils around the country.

She says the limit setting process that is coming through from councils is a big worry – especially in places such as Southland, Canterbury, Manawatū, and Waikato.

“Some of these things are unwork-

able for farmers. There is a real hope that the incoming Government with its strong agricultural understanding around the caucus table will help with that and sort it out. But while farmers are positive they are wary about how much the new Government can get done in a reasonable

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timeframe,” she says.

Speight says she’s not sure that some of the councils know what the limit settings are going to mean for farmers and that is a worry. She says Northland, Southland and Otago are high on the radar for DairyNZ. – Peter Burke

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DAIRY NEWS DECEMBER 12, 2023

NEWS // 9

Planting to improve stream water quality – DairyNZ DAIRYNZ’S COLLABORATIVE approach to

improving waterway health will see extensive planting take place in the Pokaiwhenua catchment, south Waikato this summer.

The joint DairyNZ, Raukawa Charitable Trust and Pokaiwhenua Catchment Group work will see more than 15,000 plants put in around Tokoroa’s Whakauru Stream. This work aims to improve water quality so native species can thrive in and around the Whakauru Stream – a tributary of the Pokaiwhenua Stream.

Monitoring shows good existing numbers of native eels (tuna), freshwater crayfish (kōura) and many more species.

DairyNZ general manager sustainable dairy Dr David Burger says partnering with organisations that have similar goals is a key step towards ongoing environmental progress.

“We look forward to moving forward with iwi and farmers to improve waterway health in the Pokaiwhenua environment, and we hope to identify further partnership opportunities as we continue to focus on environmental improvements at a catchment level.”

“Catchment work is widely recognised as the way forward in improving the environment, as it achieves better results than a national one-sizefits-all approach,” Dr Burger says.

Community and iwi planting days are also planned, along with weed and pest control initiatives. Information boards will be put up to showcase the area’s history, plant and animal life, and a footpath will ensure the community can easily access the area.

This work is part of a three-year DairyNZ Sustainable Catchments programme that is trialling practical tools and interventions on-farm, such as

DairyNZ general manager sustainable dairy Dr David Burger.

Monitoring shows good existing numbers of freshwater crayfish in the Whakauru Stream.

constructed wetlands, to increase awareness and understanding of ways to improve water quality.

The programme is funded by the Ministry for the Environment’s Jobs for Nature programme and is focused on priority catchments – Pokaiwhenua, Waimea (Southland), and the South Canterbury region – where monitoring has shown there are higher N concentrations and lower ecosystem health scores than other catchments.

Current work across all three areas includes

catchment assessments and designing monitoring programmes to track water quality and hauora (health) change over time. This will be followed by on-farm and catchment activity to test and demonstrate mitigations with proven science to improve waterway health.

“There are opportunities for improvement in each catchment,” Dr Burger says. “Each catchment has committed landowners who are passionate about improving water quality, and our

The end of the Pokaiwhenua stream just before it enters the Waikato river at HoraHora Domain.

Sustainable Catchments work will help accelerate the momentum of current restoration activities.

“We will work closely to support local landowners and catchment groups, which already

have water quality improvement initiatives underway.”

The Raukawa Chari-

table Trust/DairyNZ collaboration through the Sustainable Catchments programme represents a combined western science and Mātauranga Raukawa/Māori approach to grow understanding of how to improve catchment ecological health.

The Pōkaiwhenua work also showcases the progress that can be made through partnerships.

Raukawa Charitable Trust chief executive Maria Te Kanawa says her organisation is committed to its responsibilities as kaitiaki of the South Waikato region.

“We have a key role to play in the revitalisation and restoration of the wider Pōkaiwhenua catchment. We are pleased to be partnering with DairyNZ and local farmers as we collectively work towards healthier waterways in this catchment – and ensure the long-term needs of the community and the environment are met.”

The Pokaiwhenua work is expected to be completed by June 2025.

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DAIRY NEWS DECEMBER 12, 2023

NEWS // 11

Bank optimistic on milk price THE CHINA EFFECT SPREADS

PETER BURKE peterb@ruralnews.co.nz

THE SLOWDOWN in China is mirrored in many other Southeast Asian countries.

Some have been building up stocks of milk powder and are effectively following the Chinese buying pattern. But with prices stabilising, many are coming back into the market.

Globally and locally milk production is down or certainly not on a fast upward trajectory. Kilsby says this trend is helping to balance out supply and demand and put some strength back into the market.

In NZ, Kilsby says there is more

AN IMPROVEMENT in

global markets and a weak New Zealand dollar are behind the ANZ Bank’s optimistic prediction of a $7.70/kgMS farmgate milk price for this season.

The ANZ forecast is near the top end of Fonterra’s forecast range of $6.50 to $8/kgMS and a mid-point of $7.25/kgMS. But ANZ agriculture economist Susan Kilsby told Dairy News that slightly better news from China is a factor, although she is quick to add that the economic situation there is still mixed, and that economic growth is weaker than normal.

“I think the biggest challenge in China now in terms of demand is that consumer confidence is low. The middle class

ANZ agriculture economist Susan Kilsby says slightly better news from China is keeping dairy prices up.

have been hit quite hard by those extended Covid lockdowns and also the partial collapse of their housing market, which has left people less secure than they would normally be,” she says.

As a result, Kilsby says these people who prob-

ably own a home, have a car and educate their children well, are being more cautious about their spending, but interestingly their savings rates are very high. She says they are saving rather than spending, which is having some effect on

demand for products in that market.

Another factor in play is that there is said to be a rise in local Chinese dairy production, although no one is certain about the accuracy of figures being made available.

She says Chinese dairy farmers, like their counterparts worldwide, are facing challenges such as lower prices and poor profitability. As a result of all of this, Kilsby believes that China will continue to import milk powder at the current prices because this is cheaper than producing the same product locally.

“The Chinese government is constantly trying

confidence in the dairy sector due to the election of the new government with its promises to reform the rules and regulations affecting farmers. She says there is a hope that the promises of more pragmatic and practical regulation will materialise.

“Most people are hoping for a pause to get things such as freshwater plans sorted and that is providing a bit of confidence at the moment,” she says.

But at the same time Kilsby says farmers understand the direction of travel will see new regulations over time.

to put measures in place to improve confidence and economic growth and that will help.

So, we are thinking in terms of that demand side there will be some improvement by next season, but not a significant improvement through the rest of our current milk production season. We expect to see some improvement but not back to those strong

10% plus growth in GDP that they were achieving.”

Kilsby says ANZ doesn’t expect the growth to come back to the high levels seen in China in the last decade or so because they have some structural changes which will take time to sort out.

There is also the problem in China of a decreasing population – a hangover from the ‘one child policy’ some years ago.

FENCE DONATION SPREADS 100KM MORE THAN 300 farmers received free fencing materials at a charity event put on by the Rapid Relief Team in Wellsford two weeks ago.

About 100km of donated fencing was distributed to farmers impacted by cyclones and floods.

“It was great to see the smiles on the faces of the farmers and their families,” said Danny Blampied, NZ director for RRT. “These people have been through some hard times in 2023, so it was great to be able to cheer them up and give them a reason to be hopeful.”

The RRT has staged five Farmers Community Connect events in NZ in the past few months, providing more than 1300 farmers with fencing materials. Each donated pack is worth $1,500.

The FCC events have provided free food and coffee for the community to come along and celebrate their local farmers. The RRT has also organised up to 20 agencies to be on hand to provide support and advice to farmers and their families.

“It was great to see people from Wellsford and surrounds turning out for these events,” Blampied said.

The RRT is the charitable arm of the Plymouth Brethren Christian Church. It was established in NZ in 2014 and has about 14,500 volunteers around the world.

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RURAL NEWS

DAIRY NEWS DECEMBER 12, 2023

NEWS // 13

Synlait searching for new chair SUDESH KISSUN sudeshk@ruralnews.co.nz

THE SEARCH for a new chair for troubled Canterbury milk processor Synlait is progressing, says acting chair Paul McGilvary.

Speaking at the listed milk company’s annual meeting this month, McGilvary says candidates are being considered by the board’s nominations committee, comprising Ruth Richardson, Paul Washer and himself.

McGilvary told shareholders that he will keep the role of caretaker chair until they can find an independent director who can become chair.

“We are absolutely determined to find a strong chair with the necessary experience and skills to lead us through this very challenging time and back into growth again,” he says.

“We will not sacrifice quality for speed.”

McGilvary says once the chair-elect is appointed, he will decide the optimal time for that person to take the chairmanship. McGilvary will return to his role as independent director once the new chair takes office.

“I will remain in this role to provide necessary leadership and stability until then.”

For 12 months ending July 31, 2023, Synlait reported a net loss of $4.3 million. Total group revenue was down 3% to $1.6 billion, and debt was up

Synlait recently launched Joyhana UHT whipped cream in China.

Synlait’s interim chair Paul McGilvary

21% to $413.5m.

McGilvary described the performance as “simply unacceptable”.

“Synlait’s performance, being blunt with you, was simply unacceptable. Suffice to say, the board and management are more than disappointed with the results, and we are determined to do better.”

He says as interim chair he will be focusing on four areas: strengthening the balance sheet to reduce debt, strengthening operational performance, working with management to build key customer and farmer supply relationships, and retaining and motivating executives and staff.

On reducing debt, McGilvary noted that Synlait was working on several options to reduce

MAJORITY SHAREHOLDER SUPPORT ‘STEADFAST’

debt profile, including the sale of Temuka-based butter and cheese maker Dairyworks. This is a priority, and the sale process is “well advanced”. The company has also agreed with its banking syndicate to reduce debt by $130m

by March next year.

Synlait is “looking hard” at its bond maturing in December 2024.

“Plans for this are also being developed at pace,” he says.

The company is also holding its capital expenditure this year to an absolute minimum.

McGilvary noted that despite the need to reduce debt and strengthen its balance sheet, Synlait was in better shape today that it was two years ago.

“We also delivered some significant wins

SYNLAIT’S MAJORITY shareholder Bright Dairy of China has thrown its support behind the Canterbury milk processor as it recovers from several years of poor run.

Speaking at Synlait’s annual meeting this month, Bright’s leading representative on the board Julia Zhu said that Bright’s support for Synlait remains steadfast.

She says Bright Dairy regards itself not only as a shareholder “but a significant stakeholder, deeply invested in the history and future

in 2023,” he says. These include the launch of Joyhana UHT whipping cream in China and ramping up production at its Pokeno site for its advanced nutrition business. Synlait also completed regulatory approvals from China for manufacture and export of infant nutrition products.

success of Synlait”.

“We place tremendous value on the stability and sustainability of Synlait’s operations and its continued development,” she says.

“Our hope is to see Synlait deliver increased returns to all shareholders and stakeholders, not just in financial terms but in broader ways that reflect the share value and aspirations.”

Bright Dairy owns 39% in Synlait and has four board seats. Zhu says Bright directors on Synlait board

Touching on Synlait’s frosty relationship with a key shareholder and customer, a2 Milk, McGilvary says while the relationship had been challenging at times, “there’s an inherent logic in both companies working together”.

“I, in taking this role, am very determined to support that to the great-

est extent I can.”

On sustainability, McGilvary says one of Synlait’s key competitive difference in the global market is not only its advanced nutrition technology but also its leading position on sustainability. Synlait is the only processor in NZ to have the B Corp certification, which it first

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have established a good working relationship with other board members.

Commenting on Synlait’s performance, she noted that the business environment was evolving.

“As the third largest player in China’s dairy industry, Bright Dairy views its investment in Synlait as a vital gateway to resources and capabilities in advances dairy related nutrition, not only for infants and children but extending to adults and elder demographics.”

received in June 2020.

He says holding B Corp certification demonstrates that the company has been audited to the very highest standards of social, environmental performance including public transparency and legal accountability. “It is the global gold standard for sustainability.”

DAIRY NEWS DECEMBER 12, 2023

14 // WORLD NEWS

Oz supermarket giant obtains green light to buy milk plants AUSTRALIAN SUPERMARKET giant Coles

has been given the green light by the competition watchdog to buy two milk processing plants.

The decision by the Australian Competition and Consumer Commission (ACCC) has infuriated farmers, who worry that Coles will drive down the raw milk price paid to farmers.

Australian Dairy Farmers (ADF) president Rick Gladigau claims the decision will be a key turning point that the industry and ACCC will look back upon and regret.

ADF is concerned with the long-term ramifications, he adds.

“We hope that in 10 years’ time we are not saying ‘we told you so’, like we have said about the impact of $1 litre milk that Coles started in 2011.

“We cannot see how this deal will result in anything but increasing Coles’ already substantial market power, reducing market competition and market transparency, and increasing risk to farmers.

“We are especially disappointed in the missed opportunity to impose additional safeguards or undertakings on Coles.

“The ACCC has said that safeguards are already in place as Coles purchases of raw milk from farmers were covered by the mandatory

LEVEL PLAYING FIELD The ACCC also looked closely at concerns that the acquisition would strengthen Coles’ position in the dairy supply chain, and that it would give Coles the incentive and ability to adversely affect other processors.

“While we found that Coles may have an incentive to consolidate some of its milk volumes in the eastern states, this was unlikely to lead to a substantial lessening of competition,” ACCC deputy chair Mick Keogh says.

“Coles will likely continue to face financial incentives to stock and support branded milk from other processors, due to the higher retail margins it earns on these products.”

In addition, the ACCC found that Coles’ commercial incentives to consolidate its milk supply would exist with or without the transaction due to the significant excess capacity at the Laverton and Erskine Park facilities.

The ACCC acknowledges that some stakeholders asked that conditions be imposed on Coles so its relationships with processors and farmers are effectively covered by existing industry behavioural codes.

Dairy Code of Conduct – yet we know processors have been lobbying the ACCC and government to have the code reviewed and watered down.

“The ACCC further stated that Coles’ interactions with processors are also covered by the voluntary Food and Grocery Code of Conduct – yet we know the ACCC themselves recommended in the Perishable Agricultural Goods Inquiry that the voluntary Food and Grocery Code should be made mandatory for retailers and wholesalers.”

Coles plans to buy two plants: at Erskine Park, New South Wales and

Laverton, Victoria from Canadian dairy giant Saputo.

Coles and Saputo both currently get raw milk from dairy farmers in Victoria and NSW. Coles has its milk processed at the Erskine Park and Laverton plants by Saputo.

After the acquisition, Saputo will have its raw milk processed by Coles at these facilities under similar arrangements.

In July this year, the ACCC called for submissions after identifying its preliminary concerns that the proposed acquisition may increase Coles’ bargaining position in the dairy supply chain.

Concerns were also

raised that the acquisition may change Saputo’s incentives and result in it exiting the raw milk market in NSW, which would reduce the number of buyers of raw milk.

“We acknowledge the strong concerns raised by some dairy industry participants about Coles’ acquisition of milk processing facilities,” ACCC deputy chair Mick Keogh says.

“We explored the industry’s concerns very closely through discussions with farmers and their representative bodies, and conducted a detailed

ADF president Rick Gladigau (inset) says farmers are unhappy with Coles getting the clearance to buy two milk plants.

review of Saputo and

Coles’ internal documents and their incentives.

“After careful consideration, we concluded that, compared with the current state of competition where the majority of the capacity at these facilities is already contracted to Coles, the acquisition is unlikely to result in a substantial lessening of competition in breach of section 50 of the Competition and Consumer Act.”

BOOSTING DAIRY SOIL HEALTH THE VICTORIAN state government in Australia and its dairy sector have jointly launched a new innovative research programme to improve soil health.

The A$7 million DairySoil project was launched by state Minister for Agriculture Ros Spence last week to coincide with World Soil Day celebrations.

The DairySoil project will introduce cutting-edge farming practices to help reduce industry’s use of synthetic fertiliser, decrease greenhouse gas emissions, and increase productivity and resilience to climate change. It will use state-of-art sensors to mea-

An A$7 million programme to boost dairy soil health has been launched in Victoria.

sure, map, retain and recover the moisture and nutrient levels needed to produce reliable and sustainable soil.

In partnership with Dairy Australia and the Gardiner Foundation DairySoil is spearheading the initiative as part A$42.5 million DairyFeedbase23-28

program. The DairyFeedbase 23-28 project is supporting transformational programs across soils, forages and animal nutrition over the next five years.

From researching soil health and pasture composition changes, to measuring and reducing

methane emissions, the DairyFeedbase program will aim to increase the profitability and productivity of dairy farms while minimising their impact on the environment.

The projects will also link to other national research underway and make the most of Victoria’s world-class facilities at Agriculture Victoria’s Ellinbank and Hamilton SmartFarms and the AgriBio Centre for AgriBiosciences in Bundoora.

Dairy Australia managing director David Nation says the DairySoil program is the cornerstone investment in soil research for Dairy Australia and the DairyFeed base program.

“It recognises the important role soil health plays in farm profitably and sustainability. The outcome will help farmers get more from their soil,” says Nation.

Spence noted that healthy soil is crucial to growing the sustainability of Victoria’s A$2.5 billion dairy industry and this pioneering soil research will boost industry efficiency in improving and maintaining nutritious and healthy soil.

“It’s so important we continue to bring new research to Victorian farmers, helping to improve productivity and the resilience of our thriving agriculture industry.”

DAIRY NEWS DECEMBER 12, 2023

AGRIBUSINESS // 15

Numedic buys Cobra irrigators NUMEDIC LTD has acquired a major part of Waikato Milking Systems’ effluent and environmental business, including the well-known Cobra range of travelling rain gun irrigators.

The company says customers have been asking for a travelling rain gun for many years.

As farms got bigger, it became clear to the Numedic team that a larger capacity travelling irrigator was needed to spread effluent efficiently

on medium to larger scale operations.

“I really liked the Cobra K2 product since the first time I sold it and commissioned it”, says Marina Millar, Numedic’s director.

“It’s very efficient, the performance is unmatched, it is easy to operate, and you can see that it is a well-engineered product.”

Waikato Milking Systems’ new owners, Italian giant Interpump Group, decided to sell the Cobra back

to a company that specialises in effluent irrigation.

“We know dairy effluent and are Green Tick authorised to design effluent systems. The Cobra range of products fills a gap in our range,” says Millar.

With its longer jet length and higher pressure at the gun, capable of achieving over 100 metres irrigation width, the King Cobra K2 Travelling Raingun can achieve extremely low depths

often required on high-risk soil areas.

A six-speed gearbox coupled with its longer distance rain gun and a range of nozzle sizes allows the irrigator be set up to achieve the optimum performance for the farm.

It can travel more slowly, distributing a greater volume of effluent at the required application rate, and minimising the need for regular labour input.

“Aside from helping to ensure com-

pliance, which is critical these days, the King Cobra K2 is a patented product that has been progressively improved over the years and this development and improvement is ongoing – a true Kiwi ingenuity story,” says Millar.

Cobra irrigators are sold through a wide dealer network throughout the country. www.numedic.co.nz @dairy_news facebook.com/dairynews

SIDE 2024 heading to Lincoln

The 2024 SIDE organising committee.

THE SOUTH Island Dairy Event

(SIDE) is returning to Lincoln University next year.

The event, a cornerstone of New Zealand’s dairy industry, will celebrate its 25th anniversary on June 25-26. It will be chaired by Jonathon Hoets, an equity partner of Kairoa Dairies Limited, a 790-cow farm in Mid Canterbury, for the Rylib Group.

SIDE is gathering of dairy farmers, rural professionals and industry partners, that offers a platform for

networking, knowledge sharing, and showcasing the latest advancements in the dairy sector. The 2024 theme for the two-day conference is “Excelling through Change”.

SIDE’s rich history dates to its first event in 1999, and over the years, it has grown to become an invaluable resource for the dairy industry. The decision to return to Lincoln University, the site of the first SIDE event, for its 25th edition reflects the event’s commitment to its heritage and the

valuable relationship between the university and the dairy community.

Governance Group chair, Andrew Slater, is excited about bringing the event back to Lincoln. “SIDE has a special place in our hearts, and we are thrilled to celebrate our 25th event at the very place where it all began. Lincoln University has been a steadfast partner in advancing the dairy industry, and what better location to commemorate this milestone.” www.side.org.nz.

SPECIAL REPORTS

MILK COOLING Milk cooling affects milk quality. The quicker the milk is cooled after milking, the better the quality when it is collected from the farm.

The Ministry for Primary Industries has introduced new milk cooling standards. The new rules now apply to all converted farms.

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

Auckland

Stephen Pollard............ Ph 021 963 166

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DAIRY NEWS DECEMBER 12, 2023

16 // OPINION RUMINATING

EDITORIAL

Great expectations

MILKING IT...

Upbeat mood DAIRY FARMERS are seemingly more upbeat than they were three months ago and there’s a good reason – the change in Government.

It seems the farmer-friendly Coalition – National, ACT and NZ First - is playing a big part in the positive mood of farmers; stabilisation of world dairy prices is also helping.

Issues causing concern for farmers include new freshwater regulations are being implemented by regional councils around the country and limit setting process. Some of these are unworkable for farmers.

They’d be hoping and waiting for some concrete steps by the Coalition in the coming months to allay fears in the rural sector.

There is a real hope that the incoming government with its strong agricultural understanding around the caucus table will help with that and sort it out.

Greenpeace is wrong!

GREENPEACE’S CRITICISM of the appointment of farmers’ champion Andrew Hoggard as Associate Minister of Agriculture and of the Environment is baffling.

They claim that Federated Farmers has long been the attack dog in the dairy industry’s predatory delay of climate action and water protection and blames farmers for badly polluted rivers, dangerous levels of nitrate contamination in rural drinking water and high levels of climate pollution.

Greenpeace conveniently forgets that farmers have planted thousands of kilometres of fencing on their farms and reduced nitrate leaching.

They also conveniently forget that sewage from urban centres have been washing up on our beaches and making them unfit for swimming.

Farmers, along with their milk processors, are already working to reduce their greenhouse gas emissions profile. That’s what make them the leaders in the global dairy community when it comes to sustainability.

Hope for Bovaer ON TACKLING methane emissions, global animal health giant DSM will be hoping for a more sympathetic reception from the new Government when it comes to Bovaer, its feed additive that reduces methane emissions in livestock.

While DSM recently received approval from the Environmental Protection Authority that Bovaer can be used as a feed additive, it’s registration still hasn’t been confirmed.

At the same time Bovaer has been registered and sold by DSM in many countries including Australia.

The previous Government has come under criticism from farming leaders for the delay in approving Bovaer.

According to the EPA, DSM applied in 2021 to import or manufacture a substance (Bovaer) containing 10-25% of 3-nitrooxypropanol (3-NOP) – a chemical that is new to New Zealand.

DSM says 3-NOP can reduce methane emissions from ruminant animals, including cows, sheep and goats, by 30%.

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Banking on emissions WESTPAC IS the latest bank to tell its farmer clients to meet the climate targets it has set.

The bank has set a target of lowering emissions per unit of meat or milk by 9% across its sheep and beef lending and 10% for dairy.

The bank has used the same intensity-style target Fonterra used to set its Scope three emissions target. Buit Westpac hasn’t set an outright reduction goal, saying it wanted to work with farmers on improving practices.

Fonterra warned farmers that banks were also linking loans to emissions profiles of farms.

AS THE new National-led coalition begins its term in office, there are high expectations that the promises and rhetoric of the election campaign will quickly be transformed into actions. National and ACT made a strong bid for the rural vote and were duly rewarded. NZ First was also there.

Promises of fewer and better regulations were made and this was music to the ears of rural people who felt that Labour was not listening to many of their concerns – especially around environmental matters.

It is not surprising that farmers voted for National as it has its genesis in the farmer supported Reform Party which was formed in 1909 and later merged with the Liberal Party in 1936 to become the National Party.

Its farmer representation in parliament was initially strong but over the years has waxed and waned. But in this, the 6th National government, farmer representation in caucus is strong and supported by farmers in the coalition partners.

There are high expectations among farmers that there will be a paradigm shift in their favour, although wise heads are aware that environmental and other regulations to support the quality of exports will not disappear. So, what will, and can happen, and in what timeframe will the National-led coalition deliver the changes that farmers are hoping for?

Already there are strong noises from Agriculture Minister Todd McClay that the mess and confusion around freshwater plans are in his sights and will get the once over and be sorted out quickly. Other regulations said to be impractical and unworkable on-farm will also get a quick doing over.

Dairy farmer morale has lifted, but it is still fragile following the election of the new government. How long it stays positive may depend on how quickly and well National and its coalition partners live up to their election promises and meet the expectations of their rural constituents.

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DAIRY NEWS DECEMBER 12, 2023

OPINION // 17

Business as usual, with key discussions ahead PETER SCOTT

IT WILL take some time before we get any specific detail about how the policy changes signaled by the new Government will impact us here in Canterbury.

Until we have new legislation in front of us that tells us to go in a different direction, Canterbury Regional Council (Environment Canter-

meetings where I must ask you, my fellow ratepayers, to pick up the tab for government decisions when we’re all already contributing to Treasury’s tax take.

But it seems like this comes with the job of being a regional government Chair. Like other councils across the country, we’re feeling the pinch of rising costs driven by inflation, and are facing challenging

How much money we’ll need, and what services we should deliver, can only be determined with the community. bury) must press ahead with business as usual for environmental regulation, public transport, and all our other core services.

But rest assured I’m not standing by and waiting. We are the largest regional council in the country, and I am committed to ensuring that Canterbury is front of mind for the Government when decisions are being made around the Cabinet table.

Over the past week I have been in touch with our new Ministers to highlight the opportunities that Canterbury offers them. With our expertise, we can help ensure their priorities for the environment, transport, infrastructure, regional development, and biosecurity achieve our aspirations for the region.

I’ve also explained to Ministers that, although we’re well positioned to respond to any changes that might come our way during their tenure, our community and ratepayers have to foot the bill every time government changes policy. This ultimately results in extra work for us to deliver with no additional funding, meaning we have to cover those costs ourselves.

Frankly, I’m tired of fronting community

times in delivering our growing legal obligations and your ambitions for the region.

To meet the demands placed on us from government mandates, growing community expectations and the impacts of climate change, we’ll reluctantly be proposing a significant rate rise as part of our long-term budget planning process.

This isn’t something that we take lightly and neither I nor my fellow Councillors are completely comfortable in having to do this. However, with the regulations we’re currently operating under, and the information we have in front of us, we’re left with little choice.

How much money we’ll need, and what services we should deliver, can only be determined with the community. We will be asking you to help us answer these questions as part of a formal consultation process early next year.

Finding answers to these challenges will be difficult. I know there will be different views within the community and in our Chamber about the best approach. The important thing is that everyone takes time to get involved in the conversation to make sure they’re heard

- much like what I am hoping to achieve with the Government.

• Peter Scott is chair Canterbury Regional Council (Environment Canterbury)

Canterbury Regional Council chair Peter Scott.

DAIRY NEWS DECEMBER 12, 2023

18 // MANAGEMENT

Wee issue to reduce N loss urinate 10-12 times per day with an average urination volume of two litres per event and an average equivalent urinary nitrogen application rate estimated to be approximately 600kg of N/ha.

“Our research has shown that the nitrogen load of an individual urination event is closely connected with daily urination frequency, the time of day and the volume of the urination event,” says AgResearch senior scientist Brendon Welten.

“This means that urination frequency and volume per event directly affects the amount of nitrogen deposited in urine patches on the pasture. Therefore, cows that urinate more frequently per day coupled with a lower volume per urina-

IT’S A wee issue but with a big environmental impact, and a new awardwinning technology developed by AgResearch may help farmers to address it.

Scientists at the research institute have developed what they call acoustic urine sensors to tackle the problem of nitrogen loss from the urine of cattle, which affects water quality and leads to emissions of nitrous oxide, a potent greenhouse gas.

The device attaches to the rear leg of dairy cattle to enable recording and identification of distinct sound patterns in “urination events”, including timing and volume. Data from the recordings is analysed using technologies that include machine learning.

Dairy cows typically

AgResearch senior scientist Brendon Welten holding a urine sensor.

tion event tend to excrete lower amounts of nitrogen per urination event and so represent a lower risk to the environment.”

This knowledge has led to AgResearch developing the concept of an environmental nitrogen herd test to identify

2024 Edna Calendar

and manage cows based on urinary-nitrogen loss potential.

The concept is similar to routine herd testing for milk quality and production; with a service provider deploying the urine sensor technology on a dairy farm to pro-

vide an accurate estimate of an individual cow’s urination frequency and volume per event. This informs the urinary nitrogen loss potential of individual cows in the dairy herd.

“Once farmers have this farm-specific urinary

nitrogen loss information of their dairy herd, this could be used in a decision support tool like Overseer to allow potential immediate benefits in reducing farm nitrogen loss relative to using a default model value.

“Furthermore, farmers can then use it to make farm management decisions, such as breeding and culling, to move their dairy herd towards lower nitrogen loss potential and thereby provides the opportunity to achieve sustained reductions (year on year) in farm nitrogen leaching loss.”

Last month, the research behind the sensor development was recognised when AgResearch’s Cattle Urine Sensor team won the Science and Technology Award at the 2023 Kudos Awards in Hamilton.

“It’s fantastic to have that recognition given over five years of development,” Welten says.

“The benefits of these sensors are that they are lightweight, simple to use and low-cost. Their use can be easily scaled up and requires no capital investment in farm infrastructure, with minimal effect on daily farm management practices.

“Our current research is assessing farm-level benefits of this concept on farm nitrogen loss using case-study dairy farms linked with modelling funded by the Ministry for Primary Industries. We are looking forward to the potential large-scale adoption of this concept in the future by New Zealand dairy farmers as a new tool to mitigate farm nitrogen loss.”

EDNA CALENDAR 2024 LIMITED COPIES AVAILABLE

“We’re going fishing and I’ve got Edna driving the boat up and down to charge its battery.”

“Help! – someone just

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ALL FARMERS

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DAIRY NEWS DECEMBER 12, 2023

MANAGEMENT // 19

NZ-designed testing method unlocks healthy soil A STUDY arising from a

partnership with Ravensdown, AgResearch and Ngāi Tahu Farming, has created a benchmark approach to testing the health of soils.

The study, funded by the Our Land and Water National Science Challenge, assessed the quality of soil at Ngāi Tahu Farming sites in Canterbury against a new suite of metrics designed by AgResearch and Ravensdown.

Dr Ants Roberts, Ravensdown’s chief scientist, and an author of the study, says the new, holistic testing approach provided a greater in-depth analysis of soil health compared with just testing for

nutrients at the different sites.

“We developed a suite of tests with AgResearch that gives a more comprehensive assessment of the soil, allows effective long-term monitoring, and can be easily rolled out on-farm.

“The results give Ngāi Tahu Farming a clear and functional picture of soil health at each site that hasn’t previously been available.”

The study tested samples from five different sites, including forestry and irrigated dairy pasture that had been converted from forestry only a few years prior.

The tests evaluated soil fertility, organic matter, soil physical con-

Dr Ants Roberts, Ravensdown.

dition, and biological activity.

The study found that a wider range of indicators can help to better understand and manage soils across all pasture systems, to help ensure well-functioning and pro-

ductive soil.

Roberts says soil health can be difficult to gauge because of the differences across soils, and range of factors that contribute to healthy soil.

“Good soil is the lifeblood of any agricultural

practice, but all soils are different. Understanding where to start and what to measure can be difficult.

“You might test phosphorus availability and find that it’s low, but you won’t know that the soil is also compacted, which means nutrients aren’t the full answer to plant production.”

Roberts says the new approach avoids that problem, and Ngāi Tahu Farming’s sites offered the perfect case study to test it.

“Comparing results from the different sites meant we could confirm the method was able to identify the needs of different soils and catch any complexities.

“The results can help Ngāi Tahu Farming develop, model, and implement strategies to improve the soil while avoiding possible adverse effects.”

Dr Nicole Schon, a Scientist in Soil Biology at AgResearch and an author of the study, says the research expertise of AgResearch, combined with Ravensdown’s knowledge of soil fertility and landscapes, led to the innovative testing methodology.

“The tests used in the study give us more fulsome insights into soil health by broadening the way we assess soil wellbeing.

“The wellbeing of soil is important because soils

underpin our farming systems. Accurate measuring and monitoring of soils will remain critical to supporting efficient farming methods.”

The collaborative effort looked to evaluate the potential impact of Ngāi Tahu Farming’s current agricultural practices on soil fertility and health and ensure longterm land productivity for future generations.

Ngāi Tahu Farming general manager Matthew Keen says the study has provided the company with an in-depth assessment and allowed further insight into improving environmental outcomes and enhancing soil health at its North Canterbury sites.

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by Massey University showed that half of those affected were still experiencing symptoms a staggering 8 months after diagnosis.

Leptospirosis is contracted most commonly through exposure to the urine of infected animals, either through direct contact or via contaminated water. The bacteria enter through cuts or grazes on our skin, or through the mucous membranes of our eyes, nose and mouth. There are different types of lepto, with cows often showing no clinical signs. This means that working with dairy cows can pose a significant risk for contracting lepto, so preventing exposure is vital.

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fortunate to have highly effective cattle vaccines, which have reduced the rate of human infections dramatically. Unfortunately, in recent years we have seen cases of lepto in farmers and staff (including teat sealing technicians) working on vaccinated farms, many of which are thought to be due to a newly discovered strain of lepto within our dairy herds. This new strain, known as Pacifica,

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effluent spraying, cover up any cuts, and avoid eating, drinking or smoking/vaping in the pit.

Rats and mice can carry other strains of lepto, so good pest control and avoiding possible contact with rodent urine is also important. Because lepto survives well in water, care should be taken around surface water and flooding after rain events - effluent ponds and spreaders can also be a risk.

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DAIRY NEWS DECEMBER 12, 2023

20 // ANIMAL HEALTH

Plan now as El Nino summer lifts facial eczema risk THE ANTICIPATED El Niño summer is expected to heighten the risk of facial eczema (FE) and SealesWinslow consultant Nutritionist Paul Sharp says getting a preventative plan ready now will help protect animal health and bottom lines.

Sharp says that while farmers are aware of the crucial role zinc plays in combating FE, their investment could be wasted if it’s not delivered in the right dose, at the right time, alongside other preventative measures. FE reportedly costs individual farmers more than $100,000 a year in lost milk production.

“Beyond immediate zinc costs, the hidden

cost of incorrect timing and dosage can significantly impact farm profitability, not to mention the devastating effects on animal health,” says Sharp.

“Reduced milk production and weight loss in affected animals can be costly and compromise their welfare, which highlights the need for farmers to get a robust strategy in place now as summer arrives early in some areas.”

During El Niño events, New Zealand experiences warmer conditions with higher humidity towards the end of the year, which can create an environment conducive to the growth of the fungus

SealesWinslow consultant nutritionist Paul Sharp

Pithomyces chartarum.

This fungus produces spores responsible for causing FE in livestock.

“The ideal conditions for FE spores to increase are when humidity is high and overnight tem-

peratures are above 12 degrees Celsius for three consecutive nights, which is typically from December through to May. But we’ve already seen these conditions in some regions.

“It can take up to 3 weeks after the start of zinc treatment before enough reserves are built up in the cow’s liver for supplementation to be effective. So, start now!

Do not get caught out with high spore counts and not enough zinc reserves built up by the cow.”

Sharp says effective mitigation begins with managing pasture quality, staying vigilant for signs of FE, and implementing a carefully designed zinc programme for your herd well in advance.

Good pasture management is crucial. Pasture with more dead matter in the base tends to have higher spore counts, as

this helps to trap moisture and provides ideal growing conditions for the fungus.

Sharp notes that good pasture management can complement zinc supplementation in the control of FE. “Carefully managed pre- and post-grazing helps reduce the toxicity of pasture as dead matter levels are low, minimising the potential for high spore counts.”

Many cows will not show external symptoms of FE, but rather suffer internal liver damage. Nevertheless, Paul encourages farmers to watch for initial signs there could be a FE problem.

“This includes reduced cow dry matter intake which leads to a drop in milk production and weight loss,” he says.

“Animals may also be irritated and seek shade due to photosensitivity.

This can present as reddening and flaking skin on hairless areas and white skin areas exposed to the sun i.e. skin along the back, under front legs, udder, teats and around the eyes, ears, and nose.”

Sharp’s advice for farmers is to implement a zinc programme now zinc can be offered to animals in various ways. It can be dispensed in water, given in boluses, or mixed into feed.

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will continue to evolve, says outgoing New Zealand Animal Evaluation Ltd (NZAEL) chair Mark Townshend.

The Ngatea-based dairy farmer says any changes need to be robust enough to be fit for purpose in the long term – and should consider what is best for dairy farmers.

Townshend stepped down as NZAEL chair end of last month, after three years in the role.

NZAEL is a DairyNZ subsidiary and the industry good organisation Mark Townshend responsible for ensuring New Zealand’s rates of genetic gain are internationally competitive.

DairyNZ chair Jim van der Poel says Townshend’s leadership, hard work and commitment has been greatly appreciated.

“Mark has extensive farming and dairy cattle breeding experience, along with dairy sector governance skills, which have enabled him to provide invaluable guidance and support to the NZAEL board in his capacity as chair.

We thank him for his exceptional service and wish him all the best for the future.”

During his tenure as chair, Townshend has also engaged with sector

experts and partners to successfully progress the development of NZAEL’s Breeding Worth (BW) to include genomics for bulls. This is expected to be available to the sector in mid-2024.

Other achievements during his time with NZAEL include updating the animal evaluation model and several traits that make up BW. Townshend is stepping down due to his other commitments and interests in New Zealand and internationally – and to spend more time with his family.

He will continue to support the sector as a strong voice for farmers in animal genetics.

The process for appointing a new chair will be worked through over the next 6-12 months, while an independent working group also reviews best practice in genetic gain across the sector.

DairyNZ board will manage the chair appointment process.

NZAEL board member and Analytica Laboratories executive director Steve Howse will be the acting chair until a formal appointment has been made. Howse is an experienced director in the commercial science, agribusiness, technology and education sectors, says DairyNZ.

DAIRY NEWS DECEMBER 12, 2023

FARM DAIRIES // 21

Robots help sustainability drive IAN & CARMEN Comins, Kihikihi, set up their farming operation in 2018, starting with 80 cows and working on increasing to 110, saw many attractive benefits to putting in robots, starting with just one robot they put another in 2020.

Now looking to the future with their business and a focus on sustainability as they set their goal to reduce the amount of antibiotics used with a goal of decreasing overall bulk SCC. They researched a company called AHV (Animal Health Vision) – which is an innovative animal health company.

Working in partnership with AHV they are seeing huge benefits by reducing

their penicillin use.

They liked the idea of strengthening an animal’s immune system rather than treating with penicillin right away.

They are developing a more natural approach to their herd’s health and focussing on why a cow is run down and therefore getting mastitis.

They believe it is better for the health of the cow, and the milk they supply, to have this approach.

During the last few years, the Comins have learnt to manually separate the cows with higher SCC, and with the right course of action, have seen positive changes within a couple of days.

This has led them to better understand what can cause their SCC to

Ian and Carmen Comins, Kihikihi

change.

They can do this with help from the Lely management platform system to identify those cows

that show the first indication of infection and have been monitoring the progress of the cows treated with the AHV

products.

Comins have used the use of technology to help provide valuable information such as:

Report # 10 – Health report This report combines available sensors on the farm to identify the cows ■

that need attention on first response. These health attentions give the Comins insight into the animal number, group, lactation, days production, sick chance, and sensor reason like – milk temp / SCC indication / activity, value and severity.]

■ Another example is Report #23 Milking Udder Health Analyse The Udder health report provides information of attention cows with suspected udder health problems. This list combines milk sensor information, (milk yield, conductivity, colour and optional cell count).

These are just two of the reports that assist the Comins in identifying the animals that need their care and attention.

COW AND FARMER FRIENDLY COWS BENEFIT from robotic milking. They are more relaxed, healthier, and reward farmers with more milk.

According to Lely, this is because the system fits much better with their needs while freeing up farmers’ time to give true attention to cows. It is simply the best system for milking cows.

The cow is the most decisive factor in the performance of any milking system.

Understanding cows and treating each cow in the best way is what the Astronaut is all about, Lely says.

It says the Astronaut offers the easiest access and the most cowfriendly box to make sure a cow likes to visit the robot.

“The brushes ensure the best pre-treatment and stimulation, while the milking process is tailored to each quarter.

The management system automatically arranges ideal milking intervals.

This ensures good udder health and milk yield.

“Vital cow and milk data is offered as valuable information to allow farmers to take action at the earliest possible stages.

From I-flow to the most accurate hybrid arm

Lely Astronaut A5 milking cows on a NZ farm.

HYBRID ARM THE HYBRID arm of the Astronaut A5 combines the advantages of electrically driven movements with the softness and the power of air.

A huge pneumatic cylinder carries the weight of the arm using virtually no air while electrical components move the arm with great accuracy.

The air in the system balances the heavy load of the arm and buffers cow kicks, protecting the electrical system.

Cow-friendly ■ More rest through quiet operation.

■

Easier milking through accurate and swift attachment.

Energy-friendly ■ Very little energy usage when the arm is in position.

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No air use while moving.

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Faster into position through the most accurate drive.

User-friendly Easy first milking due to the new control panel and accuracy of the arm.

■

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More comfort through quiet operation.

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Less and easier maintenance due to better accessibility.

from all sensors close to the udder to adaptive pulsating the Astronaut uses every split second to reduce box time and to optimise its output.

“A quick view during milking for the cow’s info or fast and easy first milkings make the Lely Astronaut easier to use and understand than ever before.

Lely has focused on meeting users’ demands with significant changes to the control panel

and functionalities. The system offers step-bystep simple instructions with carefully considered menus and clear icons.”

Maximising benefits and minimizing costs Reducing labour by eliminating repetitive tasks, making farmers more flexible with their time and increasing milk yields and cow health are the recognized and proven benefits of automating the milking process.

Lely now offers these benefits at a steady total cost per litre that is as low as possible.

Lely says with the new hybrid robot arm, it has managed to reduce energy consumption by as much as 20%.

The system’s water consumption has also been lowered, compared to the volumes used by conventional milking systems. @dairy_news facebook.com/dairynews

DAIRY NEWS DECEMBER 12, 2023

22 // MACHINERY & PRODUCTS

Fifty years later, the Jaguar remains popular for farmers and contractors around the world.

50 years of Jaguar forage harvesters Amazone fertiliser spreader

MARK DANIEL markd@ruralnews.co.nz

ANYONE WITH a little grey hair, or in my case, very little hair, will remember the early 1970s, when they likely saw their first self-propelled forage harvester.

Back then, the name Jaguar was associated with expensive sports cars, but following the launch of the Claas 60 SF in 1973, it became the byword for harvesters.

Fifty years later, the Jaguar remains popular for farmers and contractors around the world thanks to its outstanding kernel processing technology, its drive systems that protect the soil, and

its extremely low full-cost profile.

Like a tractor and a combine harvester, the self-propelled forage harvester is today a key machine for many farmers and contractors, with the Jaguars being called on to chop the staples of grass and maize, but also alternative crops, such as elephant grass and sugar cane straw in Thailand to lavender in the south of France.

Back in the 1970s, the increasing cultivation of maize and the trend towards self-propelled machines brought about a gradual changeover from trailed to self-propelled forage harvesters, a development which occurred almost simultaneously

in North America and Europe.

Claas entered the segment in 1973, after two distributors had previously produced the first prototypes on their own initiative. Sales of the 120hp model, whose development drew on assemblies from the trailed Jaguar 60-cylinder forager and the combine harvester models of the time, ran to 33 units in the first year and grew to 500 machines by the time production ended in 1976.

In 1975, the Jaguar 80 SF arrived, offering 213hp and the choice of three and four row maize heads, a discharge blower and automatic steering.

At the same time, the

FERTILISER SPREADERS WITH CURVE CONTROL

successor to the Jaguar 60 SF, 70 SF, had a larger chopping cylinder and a choice of a 150 or 175 hp engine and could harvest maize with a sustained throughput of 75t per hour.

1983 saw the launch of the new Jaguar 600 series whose principal new features were the metal detector, the corn-cracker and the crop accelerator, complemented by Mercedes-Benz engines and a new cab, adopted from the Dominator combine harvesters. Likewise, a new control lever enabled multiple functions to be controlled without needing to reposition the right hand. The 300hp available meant that it was possible to use 6-row maize headers, while a new multiple-knife chopping cylinder with knives arranged in an offset “V” pattern was available for harvesting whole crop silage or ground ear maize. In 1988, the Jaguar 695 Mega with its output of 354hp became the new flagship model of the series.

1994 saw the all-new Jaguar 800 model series, with its 481hp, making the 880 the world’s most powerful forage harvester

AMAZONE’S CURVECONTROL won a silver medal winner at Agritechnica 2023.

It adjusts the lateral distribution to the various cornering speeds and corrects the movement of the spread pattern in centrifugal fertiliser spreaders when driving around bends, resulting in more uniform crops and also helps prevent over-fertilisation inside the bend and fertiliser placement beyond the field boundary.

While curve compensation has already been implemented by Amazone in its crop sprayers, the geometry of the sprayer boom being located tight behind the physical pivot point of the machine means only the application rate within the boom needs adjustment to compensate for curves.

In the case of a fertiliser spreader, the typical throwing distance is up to twice the working width and the application area can be many metres behind the spreader, depending on the type of fertiliser, while the spread fan is kidneyshaped area. This demands a detailed knowledge of the way that the spreading unit works with various fertilisers, along with a corresponding complex implementation of a control algorithm.

Modern centrifugal fertiliser

spreaders have the disadvantage that over- and under-fertilised areas inside of the working width occur when negotiating bends as a result of different speeds.

This effect is amplified by the combination of forward speed and swivelling of the spread pattern caused by the steering angle. This means that significant over-fertilisation arises in some areas because of these multiple overlaps, whereas gaps occur in other areas.

In addition, the swivelling of the spread fan at the edge of the field causes fertiliser to be applied beyond the field boundary.

CurveControl prevents these effects, which are undesirable from an ecological and economic point of view, and thereby minimises the risk of nutrients leaching into the ground water. Furthermore, incorrect application beyond the field boundary when negotiating bends is prevented by the system.

In addition, CurveControl can further improve the environmentally friendly use of mineral fertiliser in combination with existing solutions such as ArgusTwin, WindControl and GPS part-width section control.

– Mark Daniel

TO PAGE 23

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DAIRY NEWS DECEMBER 12, 2023

MACHINERY & PRODUCTS // 23

Large square balers go high tech MARK DANIEL markd@ruralnews.co.nz

A NEW option for New Holland’s BigBaler range offers the potential for greater productivity, bale quality, fuel efficiency and operator comfort by automating key baler and tractor functions.

Manually operating a Big Baler demands a continuous operator focus, particularly around steering adjustment to follow the swath, plus observation of swath density and crop flow to prevent overloads and blockages, while continuously adjusting tractor speed to match conditions.

In addition, to produce consistent bales, the driver must observe the bale fill indicator and correct the tractor steering accordingly, while also monitoring bale slice numbers and weights.

By proactively automating tractor steering according to the swath path, and speed adjustment with regards to swath volume, the IntelliSense™ bale automation relieves the driver of these demands. At the heart of the system, a LiDAR (light detection and ranging) sensor, mounted at the front of the tractor cab roof, emits a laser pulse ahead of the tractor which is reflected

off the swath. From here, the system will automatically adjust the steering to follow the swath, alongside forward speed according to the baler’s plunger load sensors, ensuring even filling of the chamber.

Able work in daylight, at night and dusty conditions, the system is said to deliver bale quality, fuel savings and increased operator comfort for long working days. The swath cross-section measured by the LiDAR is also used to govern tractor speed control, reducing it when necessary to avoid overloads, and increasing it in thin swath areas, significantly increasing productivity.

IntelliSense™ offers two assisted baling modes which can be used combined or independent from each other. Feed rate mode regulates the maximum speed and the number of slices per bale, with a lower number equating to thicker slices and a higher throughput. The Swath Guidance mode uses the tractor’s SmartSteer technology, allowing hands-free driving whenever a swath is detected ahead of the tractor. This ensures the swath enters the centre of the pick-up, adjusting as necessary according to the plunger load cells to ensure a perfect bale

shape.

IntelliSense™ is available on all PLUS models from end of 2023 onwards and all HD models from year 2020. It can work with all New Holland T7 LWB, T7 HD and T8

AutoCommand tractors equipped with Class 3 ISOBUS unlocked for steering and speed control. Differential GPS provides a sufficient signal, without the need for RTK accuracy.

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The unique solution of four brass shear pins protects the cutter bar gears from impact and subsequential damage. This effective but simple solution enables the mower to be repaired easily and cost-effectively in the field, often by the tractor driver.

The advanced suspension system ensures that the ground pressure is consistent across the entire cutterbar, resulting in a precise and clean cut.

The SIP SILVERCUT range of mowers come standard with a full Two-Year Warranty, plus an additional third year of warranty subject to regular dealer servicing, resulting in worry free operation.

50 yrs of Jaguar FROM PAGE 22

at the time. Capable of harvesting eight rows of maize with a single header for the first time, one year later, the RU 450 joined the product portfolio as the first row-independent, Claas maize header with a working width of 4.5m In 2001, Jaguar 900 become the first model to break the 600hp ‘sound barrier’, quickly followed in 2003 by the Speedstar, that in addition to a new high of 623hp, also become the first forage harvester to be approved for travel at 40 km/h on the road.

By 2008, the new 900 model series pushed the limits of performance higher and even featured a twinengine system capable of delivering up to 830hp in the 980 model. Updates included a new V-MAX chopping cylinder with its paddle-type knives and the optional auto fill automatic camera and control system. From 2012, an optional NIR sensor enabled continuous measurement of the dry matter content and other constituents in addition to accurate area-specific yield documentation. In 2015, Claas acquired the Shredlage chopped maize processing technology, which was developed in the USA.

SCOTT MALCOLM SIP PRODUCT SPECIALIST 021 228 4590 www.webbline.co.nz

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