Dairy News 20 February 2024 by Rural News Group

Synlait’s financial woes mount. PAGE 3

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FEBRUARY 20, 2024 ISSUE 536 // www.dairynews.co.nz

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FIXED MILK PRICE “Hedge small amounts at regular intervals, so farmers don’t have all their milk in one basket.” – Kylie Filbee-Cronin,

Baker Tilly Staples Rodway, Taranaki

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NEWS // 3

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Synlait’s share price has plummeted from $3.48 a year ago to 68c last week.

Synlait’s woes mounting SUDESH KISSUN sudeshk@ruralnews.co.nz

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NEWS �� 3-11 OPINION ��12-13 AGRIBUSINESS �� 14 MANAGEMENT �� 15-16 ANIMAL HEALTH �� 17 MILK COOLIING ��18-19 MACHINERY & PRODUCTS ��20-21

SYNLAIT MILK’S financial woes

are mounting with farmer suppliers expressing concern about the state of the Canterbury milk processor. The listed company has signalled that its half-year results, due March 25, could be a net loss in the range of $17 million to $21 million. Synlait recorded a $4.8 million net profit after tax for the same period last year. The market announcement did little to calm investor nerves: Synlait’s share price plummeted to 68c last week, valuing the company at just $149 million. One year ago, Synlait shares were trading at $3.48. Ashburton-based Synlait supplier and former Federated Farmers dairy chair Willy Leferink told Dairy News that he was concerned with the company’s situation. Leferink says other farmers had “similar worries”. Another worry was the lower

advance rate Synlait was paying its farmer suppliers, compared to Fonterra. “They are also $1 lower in the advance compared to Fonterra which creates quite a bit of cash flow stress,” says Leferink. According to Synlait’s 2023 annual results, it collected 84 million kgMS from contracted farmer suppliers last season. Synlait has factories in Dunsandel and Pokeno and collects milk in Canterbury and Waikato. Synlait says its half-year results are being impacted by increased financing and operational costs, ingredient margin reductions and advanced nutrition margin reductions. “The range is based on Synlait’s initial consolidated result, which is subject to further review and may be subject to further adjustments as the company prepares its half-year 2024 financial statements for release. “The HY24 result remains subject to review procedures by Synlait’s auditor, and the range excludes

any additional adjustments, including accruals, provisions, and impairments, which are still being assessed,” it says. The company is also signalling that its full-year results will be either broadly flat or down on the 2023 financial results – a net loss of $4.3m. “In September 2023, Synlait stated its earnings before interest, taxes, depreciation, and amortisation (EBITDA) performance was expected to improve in FY24, compared to FY23. Synlait’s expectation is now that the FY24 EBITDA result is expected to be broadly flat or down on FY23. “The board and management are actively working on the need to deleverage Synlait’s balance sheet as a priority. The company will provide an update when it releases its HY24 result in March.” Synlait is 39% owned by China’s Bright Dairy. A 19% stake is owned by a2 Milk Company, which is involved in a dispute with Synlait after trying to cancel an exclusive

deal on manufacture and supply of A2 infant formula. The two parties failed to resolve the dispute during a binding arbitration process and have proceeded to arbitration. Sources say Synlait’s falling share price could open the door for Bright Dairy to launch a takeover bid. Meanwhile, Synlait has lifted its forecast base milk price for the 2023-24 season by 25c to $7.50/ kgMS. It says dairy commodity prices have continued to improve since its previous announcement, underpinning the forecast increase. “While global demand remains subdued, global milk production has tightened, increasing dairy commodity prices. The revised forecast milk price will bring some relief to Synlait farmer suppliers operating under tough economic market conditions,” it says. Fonterra last week lifted its forecast milk price for the season by 30c to a new range of $7.30 to $8.30/kgMS, with a new mid-point of $7.80/kgMS.

DAIRY NEWS FEBRUARY 20, 2024

4 // NEWS

Don’t put all your milk in one basket SUDESH KISSUN sudeshk@ruralnews.co.nz

DON’T HAVE all your milk in one basket when it comes to hedging the milk price. That’s the advice from Kylie Filbee-Cronin, a director in business advisory services and agriculture specialist at Baker Tilly Staples Rodway Taranaki. With elevated farm input prices and interest rates, farmers are fighting to keep their businesses profitable. Filbee-Cronin believes that those who fix prices now can go into next year’s budget with real certainty about their costs – something it’s been tricky to do in today’s economic environment. She also sees some good milk price offers coming up. “Hedge small amounts at regular intervals, so farmers don’t have all their milk in one basket is the way to go,” she told Dairy News. However, she also warns farmers to be aware of the costs of entering into different kinds of hedging contracts - as there are many different options available. Weighing up the use of Fixed Milk Price or other hedging tools depends on

Kylie Filbee-Cronin, Baker Tilly Staples Rodway Taranaki, believes that farmers who fix milk prices now can go into next year’s budget with real certainty about their costs.

FACTORS AT PLAY KYLIE FILBEE-CRONIN, Baker Tilly Staples Rodway Taranaki, says farmers looking at hedging prices next season will have to consider several factors. She says farmers will be looking at how much of the current season product milk companies have already sold so that they can decide on whether the Global Dairy Trade (GDT) auction result is going to have a significant impact on the current season forecast or next season. “They’ll also be watching the Reserve Bank’s OCR announcement to understand whether there is any likely reduction coming on their interest costs. “They may even be looking at who is

taking part in the GDT auctions, as there is plenty of speculation around when other foreign markets may increase their purchasing volume to help drive the prices to more favourable positions.” Kylie Filbee-Cronin compares milk price hedging to locking interest rates on debt. “For similar reasons as those not wanting to lock in interest rates on all their debt at a single point in time when the market is so volatile and unknown. You don’t want to risk locking in all your main revenue stream at a price that may turn out to be unfavourable. However, not hedging any could leave you open to significant risk,” she says.

each farmer’s situation. “Those with minimal debt can handle the volatility of the industry quite well, so for them it may not be worth the cost. But for those with high levels of debt, they need to protect their bottom line as much as possible, so some form of hedging is a great way to minimise their risk,” she says. “The most important question I ask is whether that hedged price is going to cover their costs – meaning is it at or above their ‘break-even milk price’. If not, it would

be rare to lock in such a price. “However, if the market was indicating prices dropping even further then sometimes hedging at that point might be the right decision. Farmers should also consider the costs involved of hedging their milk price and the timing of those costs. Do they have sufficient cashflows to fund any upfront costs? Tax should also be considered, as in some products you will be paying tax on the income earlier than if you had not hedged.” All major processors, including Fonterra and Open Country Dairy, offer their own versions of fixed milk prices to their farmer suppliers each season but the amounts, prices, and timing of payments differ. Alternatively, there are milk hedging products accessible on the NZX and via Rabobank. Filbee-Cronin points out that milk processors offer as much as they have been able to sell at a point in time on the milk futures market, so this is dependent on the buyers and whether they are wanting to lock in their costs at the current market rates or not. “In short, this is quite variable.” The uptake in recent

years among farmers has been “fairly significant”. Filbee-Cronin points out that there is a significant rise in the use of both Fixed Milk Price and hedging tools on the NZX market, and not just at the corporate farming level. However there certainly are still many farmers in a comfortable enough position to “ride the waves” of milk price. “We are seeing banks responding favourably to clients who use milk hedging tools, as it provides them with a level of comfort in the client’s ability to service their debt, so this is likely a driver the rising use of milk hedging tools.” However, there are potential downsides to hedging milk prices. Filbee-Cronin says this depends highly on the type of hedging product that farmers use. She urges farmers to refer to a guide on their company website which shows the pros and cons of different products and to speak to their professional advisor. “Downsides can include being stuck with a fixed price, or if they don’t want to be stuck with this and want flexibility (such as a put option), it comes at a higher cost per kg of milksolids to use.”

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NEWS // 5

Dairy, lamb on the same page PETER BURKE peterb@ruralnews.co.nz

FONTERRA CHIEF

executive Miles Hurrell was delighted to throw his support behind the national lamb day celebration held at Parliament last week. He was among politicians, diplomats, officials, and ag industry leaders who attended a special BBQ in Wellington last week. Hurrell told Dairy News that he was delighted to be at the event and support the meat industry which he says is very much a partner with the dairy industry in earning export dollars for NZ on the international market. “We are all trying to sell the same story around the good way we treat our animals and land here in NZ and taking that story to the international market. So, we are saying the same

Agriculture Minister Todd McClay (left) and Fonterra chief executive Miles Hurrell at national lamb day celebrations in Parliament last week.

messages and in no way are we competing. Let’s

face it, our products go into the same restau-

rants,” he says. Hurrell says National

OPTIMISM IN THE AIR DESPITE WEATHER WOES FEDERATED FARMERS board member and Horowhenua dairy farmer, Richard McIntyre says it’s one of the driest summers his region has experienced for some time. He says while it’s not time to call it drought, the grass is not growing much at present. He says it’s the same in other parts of the country including the Wairarapa. But despite the imponderable weather, McIntyre says farmers are more optimistic now than they were. “The GDT going upwards has helped and the news of another

increase in the milk price has reduced some of the stress that dairy farmers have been under and there is wave of optimism that things will get better,” he says. McIntyre says one of the reasons that farmers have been stressed is their concern over government regulation from the previous administration. He says famers felt they were bashing their heads against a brick wall trying to get Labour to listen. Farmers, he says, are looking for sensible and cost-effective

solutions and are hopeful the new government will deliver on the promises they have made and fix things. McIntyre says while dairy farmers aren’t facing the challenges that their sheep and beef colleagues are going through, he says some dairy farmers are struggling to make ends meet with the high input costs and higher interest rates. “A lot of promises have been made but we now need to see some appropriate action to set things right,” he says.

Lamb Day is a very special day. He says people talk a lot about the international markets because most of our produce goes overseas, but he says we should also recognise the important part it plays here in NZ. “So, this is a very good day,” he says. The same day the country was celebrating the lamb industry, Fonterra lifted its forecast farmgate milk price by another 30c/kgMS. But while Hurrell acknowledged that things were picking up in the dairy industry, there was

still a long way to go until the end of the season. But he added the signs of life are looking good. “China has come off its lows but still has not rebounded to the levels we’d like to see. But overall, the China relationship is in a good state and our food service business up there is going very well,” he says. Back home, Hurrell says the country is drying out as the El Nino weather pattern starts to take effect. But he says the occasional bits of rain have helped and milk production is still fine.

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The BBQ was to celebrate national lamb day – an event to commemorate the sending of the first refrigerated lamb carcasses to the UK but also to raise awareness of the importance of the sheep industry to the NZ economy. It was hosted by agriculture minister Todd McClay, but was very much a bipartisan political event with representatives from the various political parties in a friendly jovial mood and many, including McClay serving up some delicious lamb sausages and kebabs to guests.

DAIRY NEWS FEBRUARY 20, 2024

6 // NEWS

Good farm records helping keep M. bovis at bay FULFILLING OBLIGATIONS

SUDESH KISSUN sudeshk@ruralnews.co.nz

GOOD RECORDS on

cattle movement has helped the Ministry for Primary Industries (MPI) clear another farm impacted by Mycoplasma bovis. This was done without having to depopulate the whole herd. According to MPI’s latest update, of the 282 properties confirmed with M. bovis, all but one, in the South Island, have been cleared. It says the number of active confirmed properties has decreased by one: very good records on cattle movements helped MPI, it says. “In many cases, especially in the initial years of the eradication effort, the M. bovis Programme was chasing infection that had been established for some time. Now, we are in the tail of the epidemic curve with significant background and network surveillance under way,” MPI says. “We are finding infection earlier than before and the investigation into this farm indicates M. bovis had been introduced recently and was identified before it spread

Very good records on cattle movements helped MPI tackle Mycoplasma bovis.

NAIT data is continuing to improve, indicating more farmers are fulfilling their obligations. Keeping accurate NAIT records means fulfilling 5 key obligations under the NAIT Act: ■ Registering as a Person in Charge of Animals (“PICA”): If you are the main person in day-to-day charge of NAIT animals you must register as a PICA in the NAIT Information System. ■

Registering your NAIT location: If you have NAIT animals on a property you manage you must register the location in the NAIT Information System.

■

Tagging and registering your animals: You must apply NAIT ear tags to your NAIT animals within 180 days of birth, or before the animals are moved to a different location, whichever comes first.

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Keep NAIT up to date: Declare any animals that are missing or dead in the NAIT Information System and keep your NAIT information up to date.

to all groups of cattle on the farm. “The completeness of the records, combined with the early detection of the infection, two rounds of negative results from on-farm testing of the dairy herd, and the regular non-detect results being received from the background Bulk Tank Milk screening programme has enabled the Programme to avoid the need to depopulate the whole herd.” The remaining cattle on the cleared property

will continue to be subject to on-farm testing over the next few weeks, as it is a neighbour of the remaining active confirmed property. The dairy herd, like others nationwide, will also continue to be screened as part of the bulk tank milk background surveillance. MPI says if any risk of infection becomes apparent, the programme will take steps to contain it, as with any other farm. “This outcome is not always possible, and the standard of the avail-

able records played a key role. Not only was the infection confirmed to be isolated to the management group, but the high quality of the animal movement records also reduced the need for manual tracing, which can be time intensive. “In contrast, cases with poor records require a more cautious approach to be taken, with a higher impact and disruption to farmers. At best, this means testing more farms than would otherwise be necessary, and at

worst, infection spreads unchecked resulting in increased disruption and stress for farmers, delays in reaching eradication and significant increase in time and cost.” MPI says that it’s important that farmers recognise M. bovis still poses a risk and that they play a critical role in supporting the eradication effort. The best thing farmers can do to protect the progress made is to ensure good NAIT records are maintained along with other records

about movements of cattle within the property, it says. “New Zealand cattle farming is unique with a high number of animal movements. In a single day, there can be thousands of cattle movements between properties. As the highest risk of M. bovis spread between farms is from the movement of infected animals, we rely on farm records and the NAIT system to help us to identify where the disease may have spread to, and

where it came from.” To complement the tracing work undertaken, the Bulk Tank Milk and Beef and Drystock National Surveillance screening programmes are continuing to run in the background each day. These give us crucial information about the presence of M. bovis in New Zealand and will continue for several years. Farmers play a critical role in building useful animal traceability, says MPI.

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DAIRY NEWS FEBRUARY 20, 2024

NEWS // 7

DCANZ rejects Canadian proposals NEW ZEALAND dairy

processors are rejecting new Canadian proposals for the administration of its dairy tariff rate quotas (TRQs) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Dairy Companies Association of NZ executive director, Kimberly Crewther, says that rather than bringing the Canadian system in line with CPTPP commitments, the proposal will take an already restrictive import regime further backwards. DCANZ had hoped that Canada would move swiftly to bring its system into compliance with its CPTPP obligations following a successful legal challenge by New Zealand in 2023. Instead, it is frustrated by Canada’s persistence in seeking to avoid agreed dairy market access being utilised. “Canada has proposed to use a new and complex formula to allocate import quota in a way that will continue to put the majority of quota access in the hands of domestic processors, who have little interest in

importing from CPTPP countries, and not in the hands of distributors and other importers including retailers who do want to import,” says Crewther. “This proposal is entirely inconsistent with last year’s legal ruling that Canada must allow importers the opportunity to fully utilise the quotas”. New Zealand dairy exporters are estimated to have lost $120 million in trade opportunities due to Canada’s breach of its commitments during the first three years of CPTPP. These losses continue to grow in the absence of Canadian quota administration that provides importers the opportunity to fully utilise the available volumes. “We see time and again Canada looking to ‘defend’ its supply management system at the expense of the legitimate economic interests of its trading partners and in contravention of its legal commitments. It is very far from the treatment you would expect from a trusted international partner and con-

trasts with the way that other New Zealand FTA partners like the UK and China have implemented their commitments”, says Crewther. Canada’s approach is not only negatively impacting New Zealand exporters and Canadian importers, it also ultimately results in higher

Kimberly Crewther, DCANZ.

food prices for Canadian consumers. DCANZ will be looking for the New Zealand government to ensure Canada fully complies with the legal ruling. Quota administration is not the only area where Canada’s protectionism is distorting export opportunities for New Zealand

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Chinese dairy habits evolve RECENT RESEARCH has provided new insights into

Chinese dairy consumption. The research, part of the Riddet Institute’s NZ Milk Means More research programme, surveyed 1,000 Chinese milk consumers aged between 45 and 75 residing in the mega-cities of Beijing, Shanghai, and Guangzhou along with the two smaller provincial cities of Chengdu and Shenyang. Dr Ao Chen, who was responsible for the project, says traditionally, milk has not been a staple in the Chinese diet. “However, over the past two to three decades, there has been a significant increase in its consumption,” Chen told Dairy News. He says that, initially, a lack of cold chain distribution and home refrigeration led to the popularity of UHT milk across the country, but the growing interest in imported milk – often in a powdered format – has boosted powdered milk consumption in the city of Guangzhou. “The consumption of pasteurised milk, on the other hand, has largely depended on the development of domestic dairy manufacturers in various regions.” Chen says successful examples of this include Sanyuan Foods Co. Ltd in Beijing and Bright Dairy & Food Co. in Shanghai, the latter of which is a significant shareholder of Kiwi dairy company Synlait. “Consuming dairy requires a changed mindset, and new ideas and exotic foods and drinks tend to be adopted first in the big cities where people are more open-minded and affluent,” Chen says. – Jessica Marshall

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8 // NEWS

Dairy in a better shape to tackle looming wave of change PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND is set to

ride a wave of change in the coming year, but the dairy sector is in better shape than the red meat sector, says Rabobank senior agricultural analyst Emma Higgins. Higgins says the dairy sector looks more balanced, due in part to less milk being produced in the coming 12 months by major milk producing nations and production matching demand, not flooding the market.

“The data shows that there are fewer hooves on the ground and milk yields are down, all of which will be to the advantage of NZ and help prices at the farmgate,” she told Dairy News. A key factor for NZ is what is happening in China. Higgins notes that milk inventories in China, that have been high in recent times, are now declining along with the local milk supply. She says this will set the scene for China to come back more positively into the market – especially in regard to

whole milk powder. “While this is good news, there are still some challenges ahead, with consumer data still showing us that sentiment is still weak and is not necessarily likely to change so much,” she says. Higgins says the present situation is seen as a win for NZ, given the challenges that have existed in the Chinese market and still do for meat products. But as in previous years there is still uncertainty. Higgins points to factors outside the control of NZ such as the

Rabobank senior agricultural analyst Emma Higgins says dairy supply and demand looks more balanced.

Ukraine war and the attacks on shipping in the Red Sea. She says this

could lead to another global supply chain shock, as occurred sev-

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key trading partners such as the US, the EU, UK, Korea and Indonesia. At the same time, NZ will have to tread a fine path with China – our biggest export market. “Maintaining good relations with China is crucial for our farmgate prices,” says Higgins. She says NZ must walk a fine line between standing up for its own values while constructively engaging with such a huge market, which gives us preferential access and can pay a premium for our products.

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eral years ago. However, Higgins believes that the recent high farm input costs will likely see a reversal this year, resulting in more affordable fertilisers and agrichemicals. “All this depends on what happens in the Middle East,” she says. The other factor out of NZ’s control is the possibility of some global political instability. Almost half of the world’s population is set to go to the polls in 2024. Higgins says these elections are taking place in country’s which are some of NZ’s

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NEWS // 9

Next generation of DNA testing THE BENEFITS

HERD IMPROVEMENT

co-operative LIC is combining its DNA parentage testing and genomic evaluation services into one convenient service to help farmers identify their highest genetic merit animals. Available to farmers from June this year, GeneMark Genomics will replace the co-op’s existing DNA parentage testing and genomic evaluation services. Every eligible sample for female animals sent to LIC’s GeneMark lab will receive parent verification and a confirmed genomic evaluation (GEv). LIC chief executive David Chin says the new service will offer significant value to dairy farmers and the wider sector, marking an exciting milestone in the

LIC’s new service – GeneMark Genomics – will be available to farmers from June this year.

co-op’s genomic journey. “GeneMark Genomics will allow farmers to

take the guesswork out of matching calves to their parents, while also

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genomic evaluation gives a more reliable indication of an animal’s performance based on which genes it has received from its parents. Combining this service with DNA parentage into one solution is a win-win for farmers.” Chin says this new solution is very costeffective and is backed by the co-op’s strong investment in genomics to provide farmers

with reliable genomic evaluations. “Over the last 30 years we have invested more than $80 million into genomics to support the profitability and efficiency of the New Zealand dairy sector well into the future. “We’re excited to be offering yet another tool for farmers to improve their herds and breed better cows faster,” says Chin.

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DAIRY NEWS FEBRUARY 20, 2024

NEWS // 11

Feeding maize silage this summer SINCE THE mid-nine-

ties maize silage use on dairy farms has steadily increased, with some farmers now feeding as much as 2 tDM/cow within a season. Initially, maize silage was mainly fed in autumn to increase lactation length, achieve body condition score (BCS) and pasture cover targets. The next progression was to carry maize silage over to the following season to support higher stocking rates, earlier calving and to feed cows better in early lactation. Finally, with greater summer pasture growth rate variability, more farmers are now carrying stored maize silage to fill early summer feed deficits prior to the next maize harvest. So, how do you get the best bang for your buck when feeding cows maize silage in summer?

Feeding rates Ideally, start feeding maize silage before you experience your summer feed pinch. Feeding 2-3 kgDM/cow for a longer period will help maintain a longer grazing rotation (>30 days), prevent over grazing and maintain your average pasture cover for longer. It will also reduce the likelihood of having to supplement with additional protein. During mid-late lactation cows require 14-16% crude protein in their diet. So, feeding 2-3 kgDM/cow of maize

More farmers are now carrying stored maize silage to fill early summer feed deficits prior to the next maize harvest. Table 1: Typical amount of each mineral supplement to supply with maize silage*.

Maize fed 3.5 kgDM/cow

Limeflour

Causmag

AgSalt

Dicalcium

60g

40g

15g

20g

*Laboratory testing to determine the mineral content of all feeds in the diet (including pasture) is the most accurate way to determine actual cow mineral requirements.

silage with a mix of pasture, grass silage and/ or other summer crops is likely to provide sufficient protein to meet cow requirements. If you intend to feed more than 3 kgDM/cow, calculate the crude protein content of the diet

using DairyNZ Feed Checker (or an equivalent feed program). You may be able to manipulate the quantities of other feeds to meet minimum protein requirements. For more information on protein requirements in summer, check out

Episode 3 of Pioneer’s Feed for thought Podcast Podcast - Pioneer Mineral supplementation Maize silage has low concentrations of magnesium, calcium, sodium, and phosphorus. If maize silage makes up 25% of

SOMETIMES

IT’S HARD TO BE HUMBLE. PROUD TO BE GENERAL INSURANCE COMPANY OF THE YEAR. AND A FEW OTHER THINGS. Not wanting to crow about it, but we’re pretty stoked to be named General Insurance Company of the Year by ANZIIF. Mostly because the award recognises how well we look after our clients. And at the end of the day, that’s what we’re here for. We’re also proud of the specialist advice we’ve gathered over the years to pass onto dairy farmers. Take a look at fmg.co.nz/advice/dairy for tips on everything from avoiding milk contamination to staying on top of cyber security. When you add to that the customer satisfaction awards we’ve recently been given from Canstar and Consumer, we’d have to humbly admit that we must be doing something right. We’re here for the good of the country.

the summer diet or more, deficiencies in these macro minerals become more likely. However, these deficiencies are relatively easy and inexpensive to rectify (Table 1). Minimising wastage Good feed-out management of maize silage is always important as losses can range from 5-40%. This difference between good and poor feed management will significantly impact your economic response to feeding maize silage. So, how do you minimise maize silage wastage? At the stack Keep the face as tight as possible by only shaving or chipping enough feed for the day. Clean up any loose material left on the ground when you’ve finished removing feed from the face. Don’t hit the face with

too much force as this can allow air to penetrate the stack and cause secondary fermentation. Try to remove feed from across the entire face of the stack each day. If birds are a problem, cover the face with shade cloth. When feeding out Don’t overfill bins. Feed silage on mature grass along fence lines or in piles. Don’t feed out more than 8 hours in advance unless your maize silage has been treated with an inoculant containing Lactobacillusbuchneri. If you would like more information on your summer feed plan, get in touch with one of our Farm Systems specialists (visit pioneer.nz). • Wade Bell is Genetic Technologies farm systems manager. Contact him at wbell@genetic.co.nz

DAIRY NEWS FEBRUARY 20, 2024

12 // OPINION RUMINATING

EDITORIAL

Time for rural banking inquiry

MILKING IT... Rural health boost

Heifer numbers down Cheesed off by price

A THIRD medical school is a step closer to fruition and that’s good news for the rural sector. The Coalition Government should be commended for signing a memorandum of understanding with the University of Waikato last week. Despite some parties’ opposition to the project, stats also tell us many GPs are planning to retire in the next 10 years, which will particularly impact provincial and rural communities already experiencing New Zealand’s biggest doctor shortages. The Government has made it clear to the critics- the proposed third medical school will have a focus on primary care. The needs of rural areas will be taken into consideration and the Government envisages a fouryear graduate entry programme, instead of the existing six-year programs.

US MILK production is facing a new challenge- a sharp decline in the number of dairy heifers available to replace older cows exiting the dairy herd. Reports says this could limit any meaningful growth in domestic milk production over the next few years. The number of dairy replacement heifers has fallen almost 15% over the last six years to reach a 20-year low, data US Department of Agriculture’s most recent “Cattle” report showed. While the global demand outlook for US dairy products remains murky due to export market uncertainties, any potential growth opportunities may be stymied by an inability to expand US milk production. According to a new report from CoBank’s Knowledge Exchange, the rising cost of rearing dairy heifer calves has far outpaced increases in heifer values over the last several years. That imbalance has prompted dairy farmers to reduce their heifer replacement inventories, in large part by breeding more dairy heifers and cows to beef bulls.

INFLATION IS forcing European consumers to move away from cheese. The Good Food Institute Europe 2023 report further confirms this trend, noting a 21% increase in plant-based “cheese” sales from 2020 to 2022. This shift may prompt European cheesemakers to explore new markets. Later in the year, dairy industry analysts at Kite found the sector to be facing a “perfect storm of weak demand caused by inflationary price increases.” Dairy has been caught up in the inflation wave that has hit Europe since mid-2021, with prices for shoppers rising along with most other food items. It means experts are predicting dairy producers will look to China for sales in the coming years as cheese consumption flatlines in established markets. And although domestic Chinese cheese production is rising, it is not likely to be enough to meet local demand, Rabobank predicted, meaning dairy-exporting powerhouses such as New Zealand, the U.S., the Netherlands and Ireland could have an opening.

Head Office: Lower Ground Floor, 29 Northcroft St, Takapuna, Auckland 0622 Phone 09-307 0399. Postal Address: PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: Inkwise NZ Ltd Contacts: Editorial: sudeshk@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News on-line: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz • Printed by Inkwise • Distributed by Reachmedia

Cows meta to Zuckerberg MARK ZUCKERBERG’S multimillion-dollar housing project on Hawaii is attracting a lot of interest. The property, known as Koolau Ranch, will, according to planning documents, include a 5,000-square-foot underground shelter, have its own energy and food supplies. But Zuckerberg’s activities there extend far beyond mere refuge. In a recent Instagram post, the billionaire divulged his newest venture: cattle farming. “Started raising cattle at Ko’olau Ranch on Kauai, and my goal is to create some of the highest-quality beef in the world,” Zuckerberg announced. “The cattle are wagyu and angus, and they’ll grow up eating macadamia meal and drinking beer that we grow and produce here on the ranch.” Zuckerberg is determined to keep the entire process “local and vertically integrated.” “Each cow eats 5,000-10,000 pounds of food each year, so that’s a lot of acres of macadamia trees. Of all my projects, this is the most delicious.”

A RECENT survey revealed that farmers are feeling excessive and undue pressure from their banks. The Federated Farmers’ Banking Survey also unveiled that farmer satisfaction with their bank is at a record low. While the new farmer-friendly Coalition Government has done a few good things for the agriculture sector as part of its 100-day plan, farmers are eagerly waiting for more, and on top of the list is an independent inquiry into rural banking. According to Federated Farmers, of the farmers surveyed, 25.8% felt they’d come under ‘undue pressure’ from their bank over the previous six months, up 2% from May to a new record high. Although 55.6% remain satisfied or very satisfied with their banking relationship, this was down 0.7% from the last survey in May - a record low since the survey began in May 2015. Richard McIntyre, Federated Farmers domestic commerce and competition spokesperson, says the results add weight to the call for an independent inquiry into rural banking. Many farmers commented in the survey that their dissatisfaction was due to interest rates being too high - and much higher than those for residential borrowers. The average mortgage interest rate in the survey was 8.26%, up from 7.84% in May 2023, and a big jump from its lowest point of 3.79% in May 2021. Meanwhile, the average overdraft interest rate increased from 10.07% in May to 10.52% in November, up from a record low of 6.28% two years earlier. Farmers claim that the banks seem to be charging far higher interest rates for farm lending than for home loans. Farmers deserve to know why farm lending rates are so much higher than the rate on offer for things like urban home loans. Only an independent rural banking inquiry will provide them an answer.

Publisher: Brian Hight ...................... Ph 09-307 0399 General Manager: Adam Fricker ................... Ph 021-842 226 Editor: Sudesh Kissun ................ Ph 021-963 177 Machinery Editor: Mark Daniel...................... Ph 021-906 723 markd@ruralnews.co.nz Reporters: Peter Burke.....................Ph 021-224 2184 peterb@ruralnews.co.nz

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

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

DAIRY NEWS FEBRUARY 20, 2024

OPINION // 13

Be proud of what you do SHEEP AND beef farmer and National’s MP for Wairarapa, Mike Butterick recently delivered his maiden speech in Parliament. Here are parts of what he said. I’M FORTUNATE to have

lived my dream, lived my passion—not everyone can say that. I’ve got an opportunity to give back to the community I’ve spent my life in. I’m a product of it. I’ve been shaped by those that are in it. Our provincial communities aren’t complicated. They have strong values, they work hard, they have a strong sense of community, and they know how to have fun and enjoy each other’s company. Things are not right when I talk to a local dairy farmer about how they don’t want to say what they do for a living when they go out, about their kids getting bullied at school because their parents are farming—it’s not OK. When I talk to local sheep and beef farmers about their despair when contemplating their legislative fatigue, it’s not OK. Why don’t we talk about the 25,000 kilometres of waterways fenced off, the over 36,000 culverts or bridges over waterway crossings by the dairy industry alone, the hundreds of thousands of dollars spent on effluent systems per family farm, this country’s 5000th Queen Elizabeth the Second National Trust covenant that was registered in the Wairarapa in 2022, the community catchment groups, the millions of trees planted, or the 2.8 million hectares of woody vegetation that’s already on our farmland? Understand that the rural community, despite all the rhetoric, are environmentalists. The relationship between the farming business, the family, and the environment is a reciprocal one. I acknowledge those efforts being made to protect and enhance the environment. The rural community has likely spent

more on the environment than those that criticise them, those that flush the dunny without a thought about where it goes, in their plastic clothes, standing on their plastic carpet, that ignore their own impacts on the environment, and would rather point the finger. As Benjamin Franklin said, “Don’t throw stones at your neighbours, if your own windows are made of glass”. We as primary producers may not always get it right, but we are certainly trying. My message is simple: if, individually, we don’t all make the choices that will inevitably come with a price tag, collectively nothing will change. Our rural people are unique. They’re the only sector that I know of that live in their business. They look out the window or walk out the door and it’s there. Passion is what motivates the rural sector to do what they do, and it’s the avalanche of previous rushed legislation that’s eroding away the passion. That’s not a great outcome. Understand that provincial New Zealand is interconnected. The rural or farming community is greater than what is traditionally articulated in the statistics. The mechanics, the stock agents, the accountants, the freezing workers, the truck drivers, the shearers, the loggers, and others are all part of the sector and contribute to the local economy. The rural-urban divide in provincial New Zealand is a myth. We know each other and we respect each other. The message to the farming community and all those that contribute to it is that this Government supports you, this Government has your back, and you should be proud to be a part of the food and fibre sectors that earn 82 percent

of this country’s export income—export income that pays the wages of our teachers, our nurses, and our policemen. Be proud of what you

do and what you contribute to your communities, to your environment, and to the economy. @dairy_news facebook.com/dairynews

National’s new Wairarapa MP Mike Butterick.

IT STARTS WITH GRASS GREAT NZ DAIRY STARTS WITH THE RIGHT inputs. YOUR EXPERTISE, ONGOING LOCAL SUPPORT, CERTIFIED SEED, AND YOUR FARM INSIGHTS REPORT FINDINGS.

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DAIRY NEWS FEBRUARY 20, 2024

14 // AGRIBUSINESS

Science supports NZ’s reputation PETER BURKE peterb@ruralnews.co.nz

FARMERS, SCIENTISTS, rural profession-

als and policy makers from around the country last week converged on Massey University in Palmerston North for the 36th annual workshop of the Farmed Landscape Research Centre. This event is a must for those seeking the latest scientific advances in the agri sector, and while the presentations are often quite technical, they are generally presented in a way that resonates with farmers. The director of the Centre, Prof Chris Anderson, who describes himself as a soil chemist, says the workshop had plenty of content of interest to dairy farmers. This year’s theme was opportuni-

“There was heaps of information in the workshops for dairy farmers and we are going to see this intersect of all these different land uses and how the science can support them.” ties for improved farm and catchment outcomes and there were more than sixty presentations over the three days on topics related to this theme. These included assessing soil carbon stock, optimising trace element provision, ways to improve the quality of soils, Overseer and

Professor Chris Anderson, Massey University.

opportunities for solutions at catchment scale. Professor Anderson says he was delighted with the programme and the quality of the speakers who gave presentations. He says they had some very good fundamental science on show, looking at

water and soil and relating this back to the catchment. “It’s science that is going to underpin the ongoing profitability and sustainability of our farms in NZ,” he says. Anderson says while there wasn’t a specific

focus on dairy, the fact is that dairy needs quality soil and water, so the presentations were clearly relevant to the dairy sector. He says NZ’s catchments are full of different land uses and it will be science that will ultimately drive land use.

“There was heaps of information in the workshops for dairy farmers and we are going to see this intersect of all these different land uses and how the science can support them,” he says. The other focus at the workshop was regenera-

tive farming practices and what Massey University is doing in this space to explore what this means. Professor Anderson says the idea of diverse pastures is coming through quite strongly. “We are bringing land use changes into this as well and consequently we are trying to really profile what is going to be the best land use for our productivity and our international reputation for NZ’s economy. This was one of the threads we tried to pull together on the first day,” he says. Anderson says it’s important that NZ retains its reputation as a producer of high-quality food and to continue to reassure consumer that we are closely monitoring our systems. The key to this he says is to have high quality science to support our claims.

SPECIAL REPORTS

EFFLUENT & WATER

Water and effluent can be both a valuable resource and a headache, depending on how they are managed. This special report will examine the latest technology available for efficient water and effluent management. To be in this special report contact your advertising representative now to promote your products and/or service to all NZ dairy farmers and sharemilkers. Contact your closest Sales Representative

Auckland

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

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Lisa Wise ................... Ph 027-369 9218

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Ron Mackay ................ Ph 021-453 914

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Kaye Sutherland ........ Ph 021-221 1994

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DAIRY NEWS FEBRUARY 20, 2024

MANAGEMENT // 15

A winning shift to the West Coast LOUISE HANLON

PAUL CLEMENT admits

to being a “one-eyed Cantabrian”, but he has no regrets about buying his Awatuna farm on the West Coast. It has turned out to be a successful shift for him, his wife Abby, who is a GP, and their young family. “I think the goal was always to own a farm,” says Clement. “When you have kids life changes quite quickly and getting away from the large-scale Canterbury systems was our motivation for coming here. Working there was awesome and gave me a lot of experience, but the higher I got the more I was doing day-to-day stuff that I wasn’t enjoying as much.” Although the Clements knew they would like to own a farm, they weren’t sure how to make their dream a reality. Smaller herd farming on the West Coast turned out to be the solution. “We looked at a few opportunities, sharemilking, equity partnerships, but I wasn’t 100 percent sure that that was the right thing for me. We had ruled out farm ownership because we didn’t think we had the equity to do it. By chance, we happened upon a Property Brokers seminar; it really opened our eyes to the opportunity on the West Coast. I couldn’t believe the price of land, and they are good farms

Paul and Abby Clement have no regrets buying a dairy farm on the West Coast.

INCOME FROM SURPLUS CALVES PAUL CLEMENT is also interested to hear what Bob Thomson from AgFirst has to say about the options for generating an income from surplus calves. Thomson has led a long career as an agribusiness consultant in the sheep and beef industry. In recent years he has investigated the potential for rearing beef-sired dairy calves, from both a beef and dairy farming perspective. Clement, like most farmers, is still reliant on selling surplus calves as bobbies and can’t see a profitable alternative. “We rear about 60-70% of our calves,” says Clement. “We are a Jersey herd and there is no money in bobbies for us, so that is a challenge. We are looking at how we can maximise our returns via other avenues. We are rearing

as well. The only hesitation when we started to look over here was that it was too good to be true. Whatever we were wor-

as many replacements as we can, that gives us the option to do some intense culling over the next few years. “We also rear Jersey bull calves, about 60, some for us and the rest go over to Canterbury for breeding. I think there are still opportunities for waste calves, bobbies are more of a disposal method for us, it is quite a costly exercise.” SMASH is looking forward to returning to the West Coast, where they get an enthusiastic response from the locals, and focusing on strategies particularly suited to its farming systems. As Clement puts it, “I have been told that farming in Canterbury is a science and farming on the West Coast is an art”.

ried about hasn’t come to fruition.” The Clements are now settled into their third season on their 123ha

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(eff) self-contained farm, milking 200 Jersey cows in a System 2/3 (they are all grass with a small amount of meal through

the shed). Smaller milk and Supply Herds (SMASH) is going to hold a field day on there on the 28th February to explore Clement’s operation, where he has experimented with a range of flexible milking options, and cover off pasture renewal and surplus calf policies from a West Coast perspective. “It was never our intention to do flexible milking,” says Clement, “but I realised within the first year that the cows’ production on the West Coast was nothing like what I was used to, so it was a no-brainer. The first year was a baptism by fire. “We had crappy weather, that was posi-

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tive from the perspective that it showed us the extremes of the West Coast and our farm; the negative was that it wasn’t so good for production. We were at a level where you couldn’t justify milking the cows twice a day. “We have tried all the flexible milking regimes. The first year I went 3-in2, second year 10-in-7, this year OAD, and we have seen benefits every time. The current system of going TAD to Christmas/New Year, and then dropping to OAD seems like the winner, but I have to keep in mind that we are having a pretty good season compared to the last two.” Clement is looking

forward to benefitting from Simon Moloney’s expertise at his field day. Moloney is a highly respected agronomist with 35 years’ experience, including an eleven-year stint designing and maintaining Pāmu’s forage systems nationwide. He is going to talk about pasture renewal strategies for the West Coast. “I have tried to lift the amount of regrassing that we are doing,” says Clement. “I am targeting at least 10% but if I can afford it, and the weather and feed situation is right, it would be nicer to be closer to 15%. Historically, the farm has not had a lot of regrassing, some of the pastures are quite outdated. There is also a massive weed burden on the West Coast, and I am keen to lift the clovers. I haven’t had a lot of success yet. ‘‘I have tried a lot of different things but it is just not that simple. It is so different from anywhere else in New Zealand, but even within the West Coast there are microclimates everywhere, in comparison with Canterbury where what you are doing is pretty much the same as someone two or three hours down the road. Here my farm is so different from someone ten minutes up the road – different climate, different soil type; as a result how you farm is quite different. That is the challenge for a lot of things, not just pasture.”

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DAIRY NEWS FEBRUARY 20, 2024

16 // MANAGEMENT

Associate director role ‘broadens knowledge’ WHAKATANE DAIRY

farmer Bridie Virbickas says her stint as an associate director on the DairyNZ board was very helpful. It’s an opportunity she is grateful for, following her previous governance training and courses. “The DairyNZ board was incredibly welcoming, and they genuinely appreciate the unique perspectives and insights I brought to the table,” says Virbickas. “It helped expand the knowledge I had gained through training, while showing how a board operates, and the unique perspectives and knowledge that both farmer and independent

directors bring to meetings. “I strongly encourage others with an interest and some governance experience or training to apply. It is a great opportunity to apply your knowledge and explore the opportunities available to you.” Her comments come as DairyNZ invites farmers to apply for associate director opportunity DairyNZ chairman Jim van der Poel encourages farmers with an interest in leadership and governance to apply. “This opportunity allows farmers to actively contribute to important conversations on the board, while bring-

Whakatane farmer Bridie Virbickas says her stint as an associate director on the DairyNZ board was very helpful.

ing fresh perspectives and thinking to our discussions, and helping make a positive impact on the

sector,” says van der Poel. “Being an associate director for a sector organisation is a unique

opportunity, where you are encouraged to actively engage with our sitting directors, while

gaining from their expertise in a governance setting and seeing what we work across.

“Since starting the associate directors programme, we have seen many of those farmers gain other board roles, either at DairyNZ or other key organisations, and it is exciting to see what this opportunity can lead to.” DairyNZ says it has an important role in representing New Zealand dairy farmers, and supporting them through a range of research, development, advocacy and extension activities. Since associate director roles were introduced in 2013, 13 dairy farmers have contributed to board discussions, alongside the eight sitting directors.

SPECIAL REPORTS

FARM BIKES & ATVs Reliable transport is essential for the efficient operation of any dairy farm and the March 5 issue of Dairy News will take a special look at the latest technology in farm bikes and ATVs. 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

Waikato

Lisa Wise ................... Ph 027-369 9218

Wellington

Ron Mackay ................ Ph 021-453 914

Christchurch

Kaye Sutherland ........ Ph 021-221 1994

FEATURE:

5 MARCH

BOOKING DEADLINE: 21 FEBRUARY MATERIAL REQUIRED: 27 FEBRUARY

DAIRY NEWS FEBRUARY 20, 2024

ANIMAL HEALTH // 17

FE spore counts climb AS NEW Zealand swelters in record hot and humid conditions, dairy farmers need to be more vigilant than usual against facial eczema (FE) as spore counts start to climb. According to reports from Gribbles Veterinary, national spore counts that cause the devastating disease almost doubled in the five days between 29 January to 2 February 2024. While they have trended downwards over the last week, CRV national sales and marketing manager and vet, Julia Baynes, says the record high temperatures and humidity of this season is creating a perfect breeding ground for the fungus responsible for FE. “A hot and humid season like this year

can lead to spore numbers increasing to toxic levels very quickly,” says Baynes. “A small amount of rain or dew and just two nights of grass temperatures of 12-13°C can cause spore counts to spike. “I’m not surprised to see the numbers starting to climb sharply.” Baynes is encouraging farmers to be proactive about preventing and managing FE by having a prevention plan in place, including zinc supplementation and testing. “The critical question is always when to start zinc treatment,” says Baynes. “The answer varies from farm to farm, so farmers should be doing their own regular spore counting by getting grass samples tested weekly to gauge when counts are on the rise.”

Farmers can also spray fungicide on pasture to reduce the spore load or feed alternative crops. “This all needs careful planning to ensure the best protection,” says Baynes. “Spore counts can vary from farm to farm and even paddock to paddock. It’s also important farmers monitor the effectiveness of their zinc supplementation.” As well as Gribbles Veterinary running the national facial eczema spore monitoring programme, a number of other veterinary clinics also provide this information. Baynes says herd testing can also help identify anomalies in milk production. Facial eczema is more than just a skin disease in livestock; it causes liver damage in both symp-

CRV national sales and marketing manager and vet, Julia Baynes, says high temperatures and humidity are creating a perfect breeding ground for the fungus responsible for facial eczema.

tomatic and seemingly healthy animals and can decimate production. “FE can be a silent destroyer. For every one

NUTRITION BEATS THE HEAT, LIFTS MILK YIELD AS SCORCHING summer temperatures persist, what dairy farmers feed their cows can help beat the heat and protect milk production. Last year was already one of New Zealand’s hottest years on record. NIWA’s latest outlook says the El Niño weather pattern, which has brought temperatures in their high thirties and marine heat waves across New Zealand, will continue until at least March. SealesWinslow nutrition and quality manager Paul Drew says dairy farmers traditionally deal with a decline in pasture quality during the summer and understand the importance of keeping their herds cool, both for animal health and milk production. However, this season is proving extra tough with temperatures 1-2 degrees higher than usual. “New Zealand dairy farmers are pretty used to the summer dry and managing heat stress in their herds, but this El Niño weather pattern is proving an added challenge,” says Paul. “Most farmers take steps to minimise the effects of the heat by milking later in the afternoon, giving cows good access to water and shade, limiting the distance they walk to the dairy shed and using sprinklers in their yards. But getting cows’ nutrition right can also help.” Pasture takes a natural decline in summer and its fibre levels

Paul Drew, SealesWinslow.

increase meaning cows have to chew it more and they eat less. Weight gain and production can take a hit. Paul says there are some simple cost-effective things farmers can do to help their herds beat the heat and maintain production. Putting cows on faster grazing rounds, topping paddocks, and using fertiliser can address the effects of pasture change. Highenergy supplements and molasses can also help compensate for reduced dry matter intake during periods of hot weather. “Levucell, a live yeast that improves the rumen environment of cows, can also alleviate heat stress, improving feed use and maintaining milk production,” says Paul. Cows use two strategies to offset the effect of heat, explains Paul. They increase the amount of panting and drooling, which helps

to disperse heat from their bodies, and they reduce activities that generate heat, notably feeding and rumination. “Along with the usual heat management strategies, providing cows with energy-dense feed that is easily digestible, a rumen modifier to fire up the rumen, and offering free access to salt will all help maintain a herd’s feed intake, keeping them cooler and keeping milk in the vat,” says Paul. Predicting your herd’s response to feed to help you make the best choice can be tough. SealesWinslow has recently launched a free decision-making tool called Ruminix³. It helps calculate the return on investment for different feed combinations, based on a farm’s unique system, so farmers can choose the best feed options for their budget and their herds. Using the tool, SealesWinslow says it has demonstrated farmers could generate up to 30% more income simply by using the right supplementary feed. As the hot weather continues to bite, Paul says farmers need all the help they can get to make the right decisions. “Hot and humid weather can make life uncomfortable for dairy cows but managing their diet efficiently can certainly minimise any health issues and keep milk in the vat for longer,” says Paul.

animal showing clinical signs of FE, nine others are suffering from liver damage,” says Baynes. “It cannot be cured. Farm-

ers can only manage the symptoms and the liver damage can be irreversible.” The impact of FE on a herd and its implications for animal health, welfare, and farmers’ bottom lines are significant. A 2019 study run by VetEnt showed FE can cost farmers 0.14-0.35kg milk solids per cow per day, with one farmer in the study losing $125,000 in milk production. To help farmers tackle the challenges of FE, CRV offers support in the form of herd testing and its FE tolerant sires, which add genetics to farmers’ toolboxes in the fight against the disease. CRV’s FE-tolerant sires are the result of a decade-long programme that involved challenging bulls with the FE toxin to identify those most

resistant to the disease. Farmers are urged to consider using these sires as part of their mating programme this coming season to start building their herds’ resilience to FE. Julia says concerns have been growing internationally about how sustainable it is for farmers to continue to rely predominantly on zinc. “It’s imperative farmers proactively look for alternatives now. One effective way to do that is through breeding animals resistant to the disease,” says Julia. “Adopting FE-tolerant sires is another way farmers can fortify their herds against this disease, reducing the impact on their bottom lines and ensuring the well-being and longevity of their animals.”

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DAIRY NEWS FEBRUARY 20, 2024

18 // MILK COOLING

Free service helps Fonterra farmers reach the summit AS A strong dairy cooperative, Fonterra understands the importance of providing comprehensive assistance to farmers, including a range of services at no extra cost. One of the most valuable of these is the coop’s milk quality service. Working with farmers nationwide to support on milk quality, sustainable dairy practices, animal wellbeing and food safety, the milk quality managers can identify opportunities for improvement and share knowledge from what works on other farms. It’s a service that has reaped benefits for Tokoroa farmer Chris Luxford. Chris milks 500 cows on 200 hectares south of Tokoroa. He’s been with the co-op for 40 years, starting his farming career in 1984. Despite “four companies chasing me” Chris is a keen advocate of Fonterra’s Co-operative model. “Fonterra sets the milk price based on a reliable model, so a strong Fonterra is good for all New Zealand dairy farmers.” The co-op’s value isn’t just in the returns and long-term security though, but also things like tailored support from the Farm Source milk

“Fonterra sets the milk price based on a reliable model, so a strong Fonterra is good for all New Zealand dairy farmers.” quality team, according to Chris. First a bit of background. The farm’s somatic cell count (SCC) had been a little bit of an issue for Chris and his team. “It was the only milk quality issue we had. Although it wasn’t serious, we just couldn’t get it below 150,000. Even with a new cow shed, our cell counts went up by more than 30,000. We just couldn’t work out what was going wrong, and we started to get a bit frustrated because nothing we did would seem to change anything.” It was then that his key Farm Source contact Vicki Wallace put Chris in touch with the milk quality team. The specialist team met with Chris on the farm, made observations during milking and provided a range of recommendations.

Tokoroa farmer Chris Luxford has reaped benefits from advice given by Fonterra milk quality managers.

“They just observed a few things and then we discussed improvements. Within a couple of days, we had a written report to confirm what we had talked about. “We were already taking standard dry cow therapy steps but one of the things the team and our vet suggested was changing to short acting DCT and teat sealing all cows.” The results were, in Chris’ words, phenomenal, with the farm’s average SCC dropping dramatically from 195,000 one season down

ADVICE AT NO EXTRA COST ADVICE ON milk quality is just one of the services the co-op offers farmers for no extra cost. Others include: ■ Support on farming sustainably with tailored Farm Environment Plans and Farm Insights Reports, which outline what efficiency-boosting opportunities exist on farm. ■

A suite of digital tools which can make farm management simper and save farmers’ time.

■

A dedicated and skilled on-farm support field team including Sustainable Dairying Advisors and Farmer Support Advisors, who can help farmers with

compliance requirements. ■

A range of financial tools to help farmers manage their shareholding portfolio.

to 110,000 the next. So dramatic in fact that Chris has now reached Te Tihi status

under The Co-operative Difference, the top of the mountain. “It’s been a real win-

win for us,” he says. “Not only with the financial incentive but it’s given our team a real morale

boost and has become a real source of pride for them. “It has also saved a lot of time on-farm. For every case of mastitis you get, there’s a lot involved in running a separate mob – so it simplifies management.” And Chris’ advice for other farmers who may have been in the same boat is to “go for it because it might be worth a few bob.” “It’s a free service and you don’t have to implement what they suggest if you don’t want to. You’ve got nothing to lose and maybe a lot to gain.” Fonterra’s general manager on-farm excellence (milk) Chris Appleby says high quality milk is central to the coop’s success. “Dairy is who we are and what we do best and our farmers are known for producing some of the finest milk in the world. “Farmers like Chris take great pride in this so it’s important that we continue to support him, and all of our farmers, when it comes to protecting this reputation. “We also know that lowering SCC for some farms can be an effective way to improve productivity with no additional inputs, helping to reduce emissions intensity.”

DAIRY NEWS FEBRUARY 20, 2024

MILK COOLING // 19

Correct cluster handling CORRECT CLUSTER

attachment and removal is crucial during milking. It ensures that the milk is of good quality, prevents harm to the teats, and reduces the risk of mastitis. Attaching the milking cups correctly helps with efficient milking, less tiredness and injuries for the milkers, and calmer behaviour from the cows. It’s important to remove the clusters properly to avoid over milking, causing teat damage or liner issues. Keeping the milking machine in good condition is important for smooth cluster removal. Attaching clusters is a major part of the milking routine. Having a consistent routine across all milkers is important. Clusters which are not attached correctly can lead to teat end damage,

CLUSTER REMOVAL MILKING MACHINE function must be maintained to ensure cluster removal is easy for the milker, and causes no cow discomfort or teat damage. The benefits of correct cup removal include: ■ Cows are milked out but not over-milked with correct timing of removal.

Attaching the milking cups correctly helps with efficient milking, less tiredness and injuries for the milkers, and calmer behaviour from the cows.

cup slipping, and mastitis. The benefits of correct cup attachment include: ■ Increased milking efficiency. ■ Reduced milker fatigue

■

and injury. Improved cow behaviour – cows will be calmer and more acceptant of the clusters.

Attachment of clusters is given surprisingly little attention considering it has a major role in the milking routine. Most milkers develop

■

Milk quality maintained

■

Increased milk efficiency

■

Reduced animal health issues through ensuring teat damage does not occur.

their own method without any direction. This can lead to poor cupping techniques and issues with repetitive strain injury. The aim is to find ways to change clusters consistently and reliably without unnecessary physical strain and avoid the problems of muscle/ tendon overuse. Two cupping techniques are explained here and switching between

methods during milking is recommended to relieve muscle strain. Each method works on rotaries or herringbones, although there are some refinements depending on the dairy type. Round-the-circle method This method is (or should be) taught to all new milkers as a simple, easy-to-learn, reasonably quick method that avoids

problems. It is not the fastest method but it is reliable and easier on the milker because there is much less chance of getting kicked. Once the clusters are attached, check the cluster alignment with the udder. The clusters should sit squarely under the udder. In herringbones where the clusters are attached from between the back legs, the long milk tube and pulse rubber should be in line with the cow’s backbone. Many new dairies, both rotary and herringbone, come with cluster alignment components. All milkers should know how to remove clusters correctly - clusters which are left on too long result in over-milking, liner creep and teat end damage. • Article, DairyNZ

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DAIRY NEWS FEBRUARY 20, 2024

20 // MACHINERY & PRODUCTS

Loyal to local machinery brand It’s easy to see that Paul Smith has a bit of a thing going with the Giltrap brand.

MARK DANIEL markd@ruralnews.co.nz

WHEN IT comes to favourite car brands, Kiwis tend to fall into the Holden or Ford camps. In Paul Smith’s case it’s the latter, but when the subject turns to the farm machinery he prefers, it’s a case of designed and manufactured on this side of the ditch by Otorohangabased Giltrap Engineering. Paul started his farming career as a general farm worker, progressing through equity partnerships for several years, then buying his current property in 2014/2015 in a partnership with a South Waikato veterinarian. Located at Whakamaru, south of Tokoroa, the farm runs to 113ha (105ha effective) carrying 330 dairy cows, with another eighty or so followers currently being grazed at Piopio on the western side of the Waikato. A grass operation, cropping includes 15ha maize for silage production, with any excess

growth of grass taken as baleage in chopped round bales. It’s easy to see that Paul has a bit of a thing going with the Giltrap brand with a machinery shed that includes a tip trailer, log splitter and the latest arrival, his fourth Giltrap feed wagon – a RF13 model. Replacing an existing RF13 with eight seasons under, or

more correctly, over its belts, the quality of the general construction and the care that Paul lavishes on his investments had the local salesman from Giltrap Agrizone (GAZ) in Taupo, doubting the machine’s real age. The latest addition, like its predecessor, offers thirteen cubic metres capacity with the bin carried on a double chas-

sis that in Paul’s case includes the optional wireless weighing system. Material is moved forwards using four floor chains, running over the 35mm thick tongue and grooved pine floor, to the beater system, that in this case uses an optional 1200mm wide chain and slat discharge conveyor. This was chosen over a belt conveyor fitted to

the old machine that Paul traded, as he felt that the belt set-up required more fine tuning during the season to maintain proper belt tracking. Standard equipment on the RF 13 includes tandem axles, for ground contouring, reduced ground compaction and operator comfort, ladder access, mudguards/walkways for cleanliness and

safe operation, stainless steel side panels for corrosion and wear resistance and a centralised greasing system. On the farm, the RF13 is used to feed the grass and maize silage, alongside the chopped baleage, handling all fodders with ease. Paul comments, “I’ve always been a fan of the Giltrap products, given

that they are locally manufactured, very dependable with minimal maintenance costs and any advice only a phone call away. I also admit that I quite like the colour, which is great match to the Case IH tractors we run on the farm.” Interestingly, Paul says he would have been more than happy to keep his existing wagon for a few more seasons but was offered a demonstration by GAZ of a competitive brand feeder. “Greig Singer from GAZ offered me a demo, that in reality, failed to impress me, but eventually we went through and exercise to swap like for like, that ended up with a changeover figure I would have been crazy not to accept and certainly confirmed the low cost of ownership of a Giltrap wagon. Would I buy another? Ask me that in eight or nine-years’ time, but as they say, once you’ve gone purple, you’ll never turn turtle, or once you buy from Otorohanga, you’ll sleep peacefully for a lot longer.”

INVESTING IN ECO-FRIENDLY BALE STORAGE THROUGH ITS investment arm CNH Ventures, CNH is supporting the development of the first viable compostable net wrap for bales in agriculture. The investment in the Canadian start-up Nature’s Net Wrap aims to accelerate their mission to eliminate waste from the process of collecting and storing baled crops. During harvesting operations based around large round bales, once a bale is formed it is generally held with a coating of net wrap and an outer layer of stretched plastic, which at the point of use is removed and eventually ends up getting burnt or placed in landfills. Farmers and contractors are limited in the reuse or recycling of plastic wraps or nets, negatively impacting their environmental footprint. Shifting to compostable net wraps has the potential to significantly benefit farmers and the environment. It will help reduce landfill use, haulage and disposal costs, eliminate soil contamination, improve animal safety, and reduce the risk of water contamination, likely resulting in a reduction of around 2.5 million tons of plastic waste each year. With high growth in this market is propelled by the general demand for chemical- and plastic-free solutions, the innovation uses biopolymer material made from renewable resources. It is said to hold up structurally and can naturally break down in the earth’s soil or alternatively be composted. CNH’s investment is supporting the testing and validation of the solution, with one of the company’s New Holland balers being used to produce all the bales in the testing phase. An initial product launch is expected later in the year. – Mark Daniel

CNH is supporting the development of the first viable compostable net wrap for bales in agriculture.

DAIRY NEWS FEBRUARY 20, 2024

MACHINERY & PRODUCTS // 21

Right dose, right place in any conditions The spreader makes it possible to precisely deliver the right dose of fertiliser in the right place. MARK DANIEL markd@ruralnews.co.nz

THE NEW AERO 32.1 mounted, pneumatic fertiliser spreader offers working widths of 24, 27, 28, or 30 metres, to complete KUHN’s range of pneumatic fertiliser spreaders. Fitted with a boom equipped with 24 diffusers (20 for the 24m version) that are divided into four sections, the AERO 32.1 fertiliser spreader makes it possible to precisely deliver the right dose of fertiliser in the right place. Each section is fed by a switchable, hydraulically driven metering unit that can be adjusted individually, making it possible to modulate up to four fertiliser application rates or to shut-off individual boom sections in a single pass. The AERO 32.1 also incorporates two weighing cells that measure the quantity of fertiliser remaining in the hopper and, if necessary, the operator can adjust the application rate by altering the speed of the metering units without a calibration test. Fine, light, or compound fertilisers, such as urea and bulk type mixtures are typically difficult to distribute over larger spreading widths with

centrifugal spreaders, but the AERO 32.1 offers precise application, right up to paddock boundaries, delivering significant savings. With cultivation windows appearing to get shorter each season, the AERO 32.1 boom style system makes it possible to apply fertiliser in any weather conditions, even on the windiest days. The ballistic qualities of individual fertilisers or seeds no longer matter and operators do not need to keep checking spreading tables. Similarly, the optional fine metering roller can spread a variety of material, including slug pellets, micro-granules, or even small seeds for broadcasting cover crops. Hydraulically controlled booms fold at the rear of the hopper and well within the dimensions needed for transport. The machine and booms can be managed via the CCI 800 or 1200 terminal or any other ISOBUS terminal already available. The use of a CCI A3 joystick is an optional extra. Following the release to Northern European markets in 2024, availability in New Zealand, although yet to be confirmed, is expected to be in the latter part of 2025

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