Dairy News 11 June 2013

collaboration is keySIDE 2013 previewPage 40

Putting a shine on returnsSolar power scheme Pages 6-7

Farmers cautious to dive into TAF. Page 3

june 11, 2013 issue 292 // www.dairynews.co.nz

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news // 3

news ��3-21

oPinion ��22-23

agribusiness �� 24-26

management �� 28-32

animal health ��33-37

south island dairy event �� 38-40

machinery & Products ��41-46

New leaders for Feds sharemilkers section. Pg.14

Getting heifers off to a good start. Pg.36-37

Fonterra rules out milk, breakfast schemes merger. Pg.26

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Farmer cautious of TAF tradingmost fonterra farmers are still adopting a wait-and-see attitude to TAF.

The co-op last month reported about 20% of its shareholders offered to sell 75,223,742 eco-nomic rights to wet shares worth $596 million. The high demand means the offer will be scaled. Fonterra will buy 79.7% of the economic rights each farmer shareholder offered to sell.

TAF critics point to the 80% of farmers holding back on TAF.

Federated Farmers Dairy chairman Willy Leferink told Dairy News that most farmers are still waiting for TAF to be fully operational before taking part.

“Some farmers don’t want to be the first to dive in. I can’t wait for TAF to be fully opera-tional. Farmers still believe the share price is too high. The true value of those shares will be known when TAF is fully operational.”

Donna Smit, Whakatane, says it’s important to note that 80% of farmers haven’t taken up the supply offer.

“Perhaps they see their economic rights in Fonterra as being a valuable long term strategic asset for their business and the next generation. Perhaps they understand the cooperative logic and the importance of keeping the milk supply linked to share ownership.”

According to Smit, the sale of $600m of eco-nomic rights on wet shares is not a surprise. She points out $7.92 is a good price based on the cur-rent forecast dividend.

“With the cashflow effects of the drought and the investment opportunities this money cre-ates, I understand why this offer is so attrac-tive,” she told Dairy News. “But Fonterra carries the cost of this $600m windfall to farmers as

the co-op issued these units at $5.50 and now finds itself in the position of buying them back at $7.92.”

Fonterra Shareholders Council chairman Ian Brown says the first supply offer saw farm-ers exercise “some understandable caution”. But they are now ready to use TAF, he says.

“The solid level of demand from shareholders to release some of the economic value of their shares shows they are using TAF to their benefit. Farmers are taking advantage of the greater flexibility it offers them in

making decisions that impact the day-to-day running of their business.

“This also strengthens our cooperative as Fonterra is now able to make better use of capital rather than – as the recent drought would have compelled – distribute it as farmers redeemed their shares.”

But another TAF critic Leonie Guiney claims Brown hasn’t done his maths.

“Fonterra farmers who hold their economic rights will eventually subsidise those who don’t for that amount because of Fonterra’s misman-agement of the IPO and the sentence in the con-stitution that allows farmers to sell up to 33% of their wet shares. So we are not there yet,” she told Dairy News. “The only question is how long it will take before the board comes back to farm-ers looking for constitutional change to relieve pressure on the fund size. Watch this space.”

Fonterra chairman John Wilson believes farmers have taken advantage of the

opportunity to release some of the value of their shareholding, providing more flexibility for their businesses.

“A significant number of farmer sharehold-ers have thought through the potential benefits of using the additional flexibility provided by the changes made to our capital structure last year.

“Some have indicated they will use the offer proceeds to fund further growth of their farm-ing businesses, while others are saying they will relieve some of the cashflow pressure after this year’s drought.”

Wilson says there is greater understanding among farmers of TAF.

sudesh kissunsudeshk@ruralnews�co�nz

“Perhaps they understand the cooperative logic and the importance of keeping the milk supply linked to share ownership.”

Donna Smit says it’s important to note 80% of Fonterra shareholders ignored the supply offer.

@dairy_news facebook.com/dairynews


global dairy prices have fallen for the third auction in a row, amid signs of a quick rebound in New Zealand produc-tion.

The GDT-TWI price index fell 5.3% compared to the last sale two weeks ago. The average win-ning price fell to US$4443 a tonne from US$4549 a tonne. Whole milk powder, the biggest prod-uct by volume, fell 7.1% to US$4643 a tonne, the lowest since the March 5 auction.

The total volume of dairy products sold at the latest auction rose to 24,252 tonnes, the highest since the February 19 auc-tion. The volume shrank to a drought-affected 13,912 tonnes in the early April sale.

Dairy commentators aren’t surprised at the fall. Westpac economist Nathan Penny says the fall is in line with expec-tations. In particular, the increasing volumes on offer, most of which now relate to the new season, drove the price fall, and a strong production rebound this season will

cause prices to ease fur-ther, he predicts.

The bank is forecast-ing a milk payout of $6.50/kgMS for this season, up 30c from its last forecast. However, it is 50c short of Fonterra’s forecast released last month.

Penny says Fonterra has been the preferred supplier in the fast growing Chinese milk powder market. “We think, as a consequence, the impact of drought on New Zealand production has been the primary factor behind the GlobalDairyTrade price spike. This story is now largely playing out in line with the dynamics we described.

“Fonterra’s fore-cast implies that world prices, after coming off their highs, stay at an ele-vated level for [most] of

the season. Fonterra cites weak world production in other producers such as the EU as providing ongo-ing support for prices.

“We agree with Fonter-ra’s view on the outlook for competitors’ produc-tion levels this season,

however we expect supply here to rebound strongly. We have pen-cilled in a 5% rebound in production volumes at this stage, and there is room for more.”

In the same way as drought here pushed prices skyward this season, Penny says increasing local produc-tion next season will dampen prices by more than Fonterra is anticipat-ing at this stage.

Fonterra has announced a farmgate milk price of $7/kgMS for the 2013-14 season – $1.20

more than last season. Fonterra farmers will also get an advance of $5/kgMS for their milk.

Fonterra normally pays farmers in advance 65% of the opening forecast milk price.

However, Fonterra chairman John Wilson says strong global dairy prices and balance sheet allow it to pay 71% of the forecast price in advance.

Dairy farmers, partic-ularly those in the North Island, were hit hard in the drought. DairyNZ estimates the average

North Island farmer has lost $100,000 in farm income and spent an extra $57,000 on supplemen-tary feed to keep cows in milk.

Wilson says Fonterra is aware of cashflow prob-lems facing many farmers and the higher advance will take some pressure off their balance sheets. “We know last season’s milk payout of $5.80/kgMS was one of the lowest in recent years,” he told Dairy News.

4 // news

Prices for Fonterra milk powders have fallen for the third auction in a row.

a collingwood dairy farmer and sustainable farming enthusiast, Sue Brown, will lead Federated Farmers in Golden Bay with the retire-ment of long serving presi-dent Graham Ball.

“Golden Bay is an amaz-ing area to farm, being envel-oped as it is by Kahurangi and Abel Tasman National Parks. It is a privilege to be Federated Farmers provin-cial president in such a special area we are blessed to farm in.”

With partner John Nalder, Brown farms two proper-ties in the Tasman district: the 100ha home farm milk-ing 280 cows and a grazing support block where they crop lucerne, raise young stock and winter cows.

Passionate about sustainable farming, Brown was made a Landcare Ambassador for her role in the Aorere catchment water quality project and she sits on the Nelson-Marlborough Conservation Board. She is also in a group seeking to research giant buttercup control.

“The thing we need to ensure in Golden Bay is that farming in all of its forms, remains a viable, progressive and dynamic evolving business,” she says.

Federated Farmers is engaged in a number of issues in Golden Bay, she says.

“Most farmers will know the outstanding work we do with council policy, but we are also on the national stage seeking much needed reform to the RMA and related water policy.

“What is not helping collaborative working is the way Resource Management Act processes have become adversarial. We need to empower local decision making instead of rewarding lawyers and consultants.

“Another key thing locally will be the subject of council amalgamation. While it is off the off the radar it could re-emerge at any stage and Federated Farmers focus is to ensure rural has a strong voice.

“A strong voice is something Federated Farmers possesses. We proved that with hundreds of millions more for rural broadband and in the traction water storage is now getting right across the political spec-trum.

“It is a voice which gets stronger with more mem-bers. With younger farmers stepping up to run their own farm businesses, growing our membership is another key goal I have.”

New president for Golden Bay

Sue Brown

Drought concerns ease, bringing prices down

“We have pencilled in a 5% rebound in production volumes at this stage, and there is room for more.” – Nathan Penny, Westpac

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news // 5

DairyNZ sets out to educate bureaucratsstaff from Horizons Regional Council have spent time at DairyNZ, apparently learning about the practicality of their poli-cies to make the controversial One Plan work in the short term.

Dairy News noted that at the end of a community meeting in Dannevirke recently to discuss the economic impacts of the One Plan, Horizons staff were in deep discussions with DairyNZ’s Dr Rick Pridmore.

Pridmore had noted during the meeting that while DairyNZ wanted to work with Horizons to try to make

One Plan work as well as possible, they (DairyNZ) were frustrated at the impracticality of the Horizons proposals. These did not reflect farming practices, he said.

“What we are trying to sort out with the council is how much N do we have to take out of the dairy industry to please the council and

the public. Then we can look at the methodology for doing this.”

It’s understood the excursion to DairyNZ ‘s base in the Waikato was intended to show the planners what

would and wouldn’t work.Other sectors have got wind of

the DairyNZ move and are likely to ask Horizons staff to come and spend time with them in the field to get a better appreciation of what theories work and what don’t.

Dairy News is aware the same problem exists with other councils and central government bureau-cracy, where policies are made by

bureaucrats with little understand-ing of their impact.

Peter burkepeterb@ruralnews�co�nz


Fertiliser prices ease as supply grows

Prices for most fertilisers are down with the two main suppliers releasing new but as usual almost identical price lists.

Ballance Agrinutrients announced first, on May 31, cutting $10-$80/t off core nutri-ents in light of increased global supply, and “sluggish” world demand which has seen prices for most of the major nutrients weaken.

“While volatility is always a factor, the immediate outlook is for these prices to remain more favourable for buyers than sellers,” chief executive Larry Bilodeau says.

Increased production capacity for potash, urea and phosphate, due to come “on stream” over the next three years, is easing supply concerns.

“Morocco, for example, expects to produce eight million tonnes more phos-phate, a 30% increase in their current pro-duction.”

New projects in China are also prompt-ing speculation that tariffs protecting local farmers’ supply during periods of high demand may be abolished.

Weather is another factor, delayed spring planting in the United States and Argentina leading to reduced demand for nitrogen.

Bilodeau notes global phosphate prices remain below those a year ago, with

demand slow in key import markets. How-ever, India’s requirements may cause some demand spikes and drive higher prices.

Ravensdown says price changes on products like urea, DAP or ammonium sulphate reflect global trends of lower gas prices and subsequent development of new production facilities. Moves in the US towards self-sufficiency in shale gas could have major long-term implications.

“Just recently, plans for two large ammonia/ urea projects were also com-missioned in the American Midwest which will see urea production of 3500 tonnes per day at each of them,” notes chief executive Greg Campbell.

“This is the first time since the 1990s that new nitrogen fertiliser plants are being built in North America. Many US plants that had been mothballed are being brought back to life.”

Tapping the huge shale gas reserves in the US has created a multibillion-dol-lar industry over the past decade and rev-olutionised the US ammonia market as it reduces reliance on imports from the Ara-bian Gulf, says Campbell.

However, the impact of this extra supply on world, and New Zealand, prices is complex and world demand for urea con-tinues its steady rise, he adds.

“Ravensdown will continue to moni-tor international prices and we are deter-mined to maintain our competitive pricing to bring farmers lowest-cost nutrients on a sustainable basis.”

andrew swallowandrews@ruralnews�co�nz

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6 // news

Solar power plan seeks return from the roofmeridian energy and Westpac have joined forces to produce a ‘pack-age’ to dairy farmers in particular to invest in solar power in their dairy sheds. The deal will officially launched at Fieldays this week.

As a promotion, solar panels have been installed on the roof of the dairy shed at the West-pac Taranaki Agricultural Research Station (TARS) at Hawera where DairyNZ does some research. The aim is to assess the use of solar power and to gather data for farmers visiting the research station.

In essence, Meridian has selected a suitable solar provider/installer, and Westpac is offer-ing a three-year finance package to allow farmers to buy the solar panels. Average cost of an installation is $30,000.

Hamish McEwen, of Meridian, told Dairy News the venture embodies a sus-

tainable solution that makes economic sense to farmers.

The solar system will not supply all the power required by an average dairy shed, McEwen says. “For the average shed we are talking about a 10kW pack-age that will supply roughly a quarter of the power for the shed… offsetting some of the usage.”

The system will work nationwide, the calculations based on ‘New Zea-

land sunlight hours’. McEwen acknowledges New Zealand is known to be cloudy, but says the system will be effective nevertheless.

“We are using TARS as a test case. Solar has been used in New Zea-land for some and we know it works. The real key factor that’s changed

in the last few years is the cost of solar panels have reduced considerably which makes them an economic investment. What we are look at with the TARS pilot project is to see how well it will marry with a dairy operation. It’s really about


THE HEAD of Agribusiness for Westpac David Jones says the package is part of their commit-ment to clean technology and sustainable farming practices. While he won’t give a figure on the interest rates being charged, he says it will be ‘an exceptional deal’ and says it will have a payback benefit to the farmer of about eight years.

He says solar power deal is also available to other farming operations such as sheep and

beef, horticulture and viticulture. “It really comes down to where you have a power bill of over a $1000 a month which would make this 10kw application vi-able,” he says.

Meanwhile Jones has praised dairy farmers for the way they have managed the drought saying that they have reacted a lot quick-er than used to. He says they now plan much better for a number of ‘adverse’ events, be these drought or economic.

Jones says in terms of the drought, some farmers have suf-fered, but he says they under-stand the cyclical nature of their industry and realise that a bad season is often followed by a good one.

He says some farmers may need to look at their stock numbers and also their milking rotations.

Jones describes the dairy sector as strong and well managed.

bank focuses on ‘clean tech’

Hamish McEwen

The solar panels generate DC power which is converted to AC.

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news // 7

Solar power plan seeks return from the roofhow can you optimize it and make it even better,” he says.

McEwen says the power gener-ated by the solar panels is direct cur-rent and with a series of isolators this is quite simply converted to alternating current which is used in the dairy shed. He says Meridian also a system whereby they will ‘buy back’ from the farmer any solar power that’s generated by them and not used. But he says ideally to get the maximum financial benefit, farmers should make the most use possible of the solar power generated.

In order to qualify for the deal farmers must be a Meridian customer and if they are not Westpac customers, they must use that bank to finance the pack-age.

Federated Farmers has welcomed the launch.

Its energy spokesman Anders Cro-foot is a user of solar power at Castle-point Station in the Wairarapa.

It is an effective technology for sup-

plying power to remote areas in a cost effective manner, he says.

“Being an early adopter of solar technology, the Solar Shed initiative by Westpac and Meridian will help to ease the initial cost outlay.

“At Castlepoint Station we use solar to power radio communications and

wireless broadband over 3,700 hectares.

“With my Federated Farmers hat on, I can see dairy farmers looking to use the roof expanse of their milking sheds for solar panels. The same applies to other heavy energy users such as arable farms and large sheep and beef stations like Castle-

point.“If a farm’s electricity bill is over

$1,000 each month then the Solar Shed initiative may suit your business.”

The technology works and the Solar Shed initiative will now bring solar within the reach of many farmers says Crofoot.

David Jones

Solar panels on the roof at TARS, Hawera.


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news // 9

Dairy rate cuts in Southlandsouthland dairy farmers have won a small concession in the region’s rating system which sin-gles out the sector for an extra charge.

Environment South-land’s dairy differen-tial rate (DDR) was to be $1.23m this financial year but late last month, follow-ing hearings, the council cut that by $261,000.

While the reduction is welcome, Southland Federated Farmers Dairy chairman Allan Baird says they won’t rest until the DDR is abolished. “They’ve listened to an extent but we’re still disappointed,” he told Dairy News.

The DDR was intro-duced in 2008-09 as a tool to recoup what the coun-cil says are extra environ-mental monitoring costs caused by dairying in the region. Initially a DDR of about $900,000 was pro-posed for 2008-09. While that was cut to $280,000 in that first year, it has been increasing every year

since, says Baird.Last year it was going

to be $1.2m but coun-cil agreed to draw down reserves against it, reduc-ing the bill to farmers to about $500,000. That leaves this year’s DDR of nearly $1m as the biggest dairy farmers have faced by far, despite the $261,000 concession. “It’s punitive and in no way good policy,” says Baird.

Dairy farms already pay much higher rates than their drystock or crop counterparts owing to the higher capital valuation of their farms, he points out. “And there are additional user charges the dairy industry has to pay as well, for things like effluent con-sents and for groundwater takes.”

The sector also picks up a big chunk of the region’s river management rate, which is targeted at prop-erties close to rivers.

Baird hopes last year’s appointment of a new council chief executive, Rob Phillips, previously operations director for Taranaki Regional Council, will see a change in strat-


egy. “This all goes back to the previous chief execu-tive [Ciaran Keogh] who seemed always to be look-ing for ways to get addi-tional rate revenue in and grow the presence of Envi-ronment Southland.”

However, Phillips has to answer to the current council which backed the

DDR, not to mention Plan Change 13 which made dairy conversion a discre-tionary activity requiring a resource consent, over and above the usual effluent discharge, water and build-ing consents.

With a council election later this year, Baird hopes there might be a change in

attitude at the top table.Federated Farmers

national board member with responsibility for local government issues, Katie Milne, says the core issue is fairness. “It’s not an equitable system to target certain sectors with-out just cause.”

Environment South-

land said its decision to cut the DDR this year was because its Water and Land 2020 & Beyond proj-ect identifies that the whole community con-tributes to water quality issues, one way or another, so dairying should not be the only sector singled out for an extra contribution

to the planning compo-nent of that project.

The council has also resolved to take a fresh look at the way costs are allocated against the DDR next year. This year’s $261,000, which was to have come from the DDR, will now come from antici-pated surplus funds.

new rules for farm vehicles came into force on June 1.Rural Contractors NZ executive director Roger Parton

says the rules ease compliance by farm vehicle owners and simplify vehicle running.

Rural Contractors has worked with Ministry of Trans-port, NZTA and NZ Police to develop them, he says.

“These changes were a long time coming and have resulted in rules that are easy to understand, comply with and enforce. These changes recognise the unique operat-ing characteristics and environment that agricultural vehi-cles require to travel on the road.”

The rules will reduce compliance costs for rural con-tractors and farmers. The changes include: a two-tier system for agricultural vehicles based on a 40km/h speed. Vehicles slower than this must be roadworthy but will not be subject to other rules.

The changes require farm vehicles first registered from June 1, 2013 to show a flashing amber beacon at all times when on-road to alert other road users.

A new licence endorsement allows a greater range of farm vehicles to be driven by the holder of a car licence with proven skills. Other changes improve and simplify the rules on pilot vehicles, work time variation schemes, hazard identification and vehicle visibility.

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10 // news

Farming for the next generation

“Because farms are such valuable assets, it is not simple as handing over the keys one day or just making a will.”

the matter of who will take on the family farm can be a huge source of worry and family ten-sion in rural communities, which is why the Feder-ated Farmers Dairy group, with Lewis’ Barristers & Solicitors and Craigs Investment Partners, is holding a succession plan-ning seminar on June 18.

Most, if not all, farm-ers dream of handing their business over to their chil-dren. But because farms are such valuable assets, it

is not as simple as hand-ing over the keys one day or just making a will. It needs to be discussed and an action plan put in place

to ensure everyone in the family is clear about what is happening.

The difficulty can be working out when the best time for doing this is.

The answer to that, in

all cases, is sooner rather than later. If children have unrealistic expectations or the process is left until health issues leave you

too incapacitated to take part in the discussion, the results can be far from your original dream of a fair and equitable handover to the next generation.

In worst-case scenar-ios families can be torn apart by arguments and disagreements between parents, children and even stepchildren and business partners who have differ-ent ideas about the future of the farm business.

The seminar will be held at the Cambridge Cosmopolitan Club, 88-92

Burns Street, Leamington in Cambridge at 4-6pm.

Speakers will include Matt Hanna of Lewis Law, Barristers & Solicitors; Dave Kilbride, Cambridge Farm Consultant; Roy Johnson of David Stewart & Associates; Tony Hammington of Rabobank; and Geoff Buchan of Craigs

Investment Partners. Topics: What is suc-

cession planning? How to develop a successful succession plan. Why is good governance a nec-essary component of a succession plan? Why is the process more impor-tant than the structure and outcome? Why are the financial numbers

and tax structure second-ary in the process? Align-ing the needs of owner and successor. How to work through an advisory pro-cess to achieve a shared family vision. Why your will is not your succession plan?• James Houghton is Feder-ated Farmers Waikato pro-vincial president

James houghton

Feds Waikato president James Houghton.

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12 // news

CANTERBURY FARM manager Richard Pearse won the 2013 New Zealand Farm Manager of the Year.

He was achieving “exceptional” production in his first year manag-ing on a first year dairy farm con-version, head farm manager judge Tory Pedersen says.

“The clear message the finalists gave us this year was their passion for the industry and their desire to progress. They are also focused on best practice farming and are very conscious of public perceptions.”

Pearse, 30, won $29,200 in prizes and is contract milking 950 cows for Graham and Jane

Thomas at Ashburton. With his veterinarian partner, Susan Ged-des, the couple aims to progress to sharemilking or equity farming and ultimately owning a 1000 cow property.

Manawatu/Rangitikei/Horowhenua representatives Michael and Raewyn Hills were placed second in the farm manager contest winning $12,500 in prizes; Northland’s Niall and Delwyn McKenzie were third, taking home $3650 in prizes.

The 2013 New Zealand Dairy Trainee of the Year title was won by James Warren, Winton.

Passion to Progress

Dairy award ambassadors to Fieldaysdairy industry award winners will this week at Fieldays take up their roles as ambassadors.

The 2013 Sharemilker/Equity Farmers of the Year Don and Jess Moore, Farm Manager of the Year Richard Pearse, and Dairy Trainee of the Year James Warren, will attend the Fieldays opening and spend time with awards sponsors.

National convenor Chris Keep-ing says they will also investigate the farming innovations displayed at Fiel-days, “the huge mecca for New Zea-land’s farming industry”.

“It’s a great opportunity for our winners to meet heaps of people, learn about the latest technology and innovations that may help them on-farm, and share their experiences with

interested people.”Don Moore says he’s looking for-

ward to meeting Fieldays visitors and hopes to pass on a few tips to young farmers trying to gain a foothold in the industry.

Moore (28) says winning the national title has been a “humbling and amazing experience. It was great to have three people analysing your business for free,” he told Dairy News.

The experience of the 2013 dairy industry awards will help them grow as dairy farmers, he says. “This is just the start… we will use this to push for-ward.”

He paid tribute to his wife Jess. The Moores left their five-month son at home with Jess’s parents to attend the final week of the judging and

awards night in Wellington. “This is a team effort and we both put in just as much. I would not be the winner without her input.”

Don’s message to other young farmers in the dairy industry is, one’s destiny in one’s own hands. “Where you end up will be determined by your own efforts. Destiny is in your hands and you get whatever you put in.”

The couple won $43,200 in prizes.Judging panel chairman Brian

Power described the Moores as “infectious”. “They have a great way of coming across and there’s no pre-tence.” The judges also commented on their good relationship with the farm owners.

Don and Jess Moore


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14 // news

Synlait takes China gongcanterbury dairy processor Synlait has won the supreme award at HSBC New Zealand China Trade Association Busi-ness Awards for 2013.

The company beat 38 other competitors in the

biennial awards. It had previously won the DLA Phillips Fox Award for suc-cessful investment with China, inward or outward.

Nearly 600 people attended this year’s awards event in Auck-land, including the Chi-nese Ambassador to New Zealand, Xu Jianguo, and Prime Minister John Key who presented the award to Synlait.

The executive direc-tor of the New Zealand China Trade Associa-

tion, Graham Kearns, says the awards are designed to recognise companies doing business with China including trade, invest-ment and logistics. Synlait was recognised for the way it went to market, having a distribution company in China and also for Chinese investment in Synlait.

“We are thrilled to acknowledge those com-panies with a significant presence in New Zealand that also have profitable and sustained relation-

ships with businesses and government agencies in China,” Kearns said.

“There are plenty of challenges in trading with and investing in China, as we constantly hear in the media.

“But many firms are just getting on with it – after all, many country’s markets have huge differ-ences in language, cultural norms and regulation. All our finalists and entrants show they can manage these barriers.”

Sharemilking a ‘great path’, but mind the detailssharemilking remains one of the best pathways to farm ownership, says Federated Farmers’ sharemilkers section’s new leadership.

But due diligence is crucial for both parties, say Feds sharemilker employ-ers’ head Tony Wilding and sharemilk-ers section chairman Neil Filer.

Wilding, who farms in Tirau, says the sharemilking system has been a fantas-tic pathway to farm ownership for him-self and remains so for many others.

“Yet today I also see more ways to farm ownership,” says Wilding. “Farm owners and sharemilkers need to look to the future instead of lamenting the past. As farmers, we need to evolve our businesses to match the changes in the

wider industry, which is a terrific but challenging one to be in.

“Before sharemilkers or farm owners considering the sharemilking system enter into a business relationship, I spend a lot of time with both sides.

“Getting all the detail in sharemilk-ing contracts is so important these days. It is about due diligence so both are fully aware of where the costs and responsi-bilities lie. Get it right and both parties flourish.”

Filer, a variable order sharemilker on a 700 cow property in Dannevirke, has bought a 280 cow farm up the road, where he is employing a manager. He is passionate about sharemilking and the role it plays in the industry.

“I’ve been through the Share-milker of the Year [contest] and the New Zealand Young Farmer of the Year competitions but it was when I attended a Feder-ated Farmers’ leadership course that my eyes fully opened to what needs doing,” says Filer.

“I got involved because someone had to look out for the sharemilkers in Tara-rua where I farm. I took on that role and have progressed up the ranks.

“The sharemilking system is evolv-ing and we are mindful that pathways to farm ownership will change with it. Yet sharemilking is generally a success because it is a proper business relation-ship.”

Filer wants Federated Farmers to communicate the advantages of share-milking because for the 2013-14 season in a high growth area like Canterbury, he believes there were only two herd-own-ing sharemilking jobs available.

“I also agree with Tony on the sub-ject of due diligence. Checking costs, obligations and assumptions before signing up for a sharemilking job saves grief later.

“I would also advise sharemilkers to talk with their accountant, banker,

previous sharemilkers and employees of the person on whose farm they will be working. Use the Federated Farmers network to its full extent.

“Sharemilking is a business part-nership and the more you know about the business and the personalities, the better it is for all concerned. And, as I always stress to sharemilkers, if you decide to take up the offer, never leave the contract unsigned.”

Feds sharemilkers section chairman Neil Filer (left) with employers section chairman Tony Wilding after their election.


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news // 15

Westland goes into winter milk

west coast cooperative Westland has moved to year-round processing and will collect milk from suppliers on both sides of the main divide this winter.

While late implementation of the move means volumes will be limited, chief exec-utive Rod Quin anticipates much more supply through the traditional off-season in future.

“At this stage we’re expecting to pick up 40,000-60,000 litres/day this year. It will very much depend on the weather,” he told Dairy News.

Through June and July the 2012-13 season advance rate of $5.20/kgMS will be paid, though a 20c increase in that is to be discussed. From August the $4.80/kgMS opening advance rate for the 2013/2014 will apply. “It’s not so much winter milk as year-round supply.”

The move was discussed with share-holders in March but only confirmed as an option early last month. “Unfortunately because of the drought it was too late for some to do anything about it but there’s been interest in supplying winter milk for some time.”

The option has been made possible by more preventative maintenance and other operational changes at Westland’s Hoki-tika plant to make some capacity available all year, and capable of being operated prof-itably with low supply volumes.

Most of the winter milk will be made into casein, anhydrous milk fat and bulk milk powders. Already some sharehold-

ers are looking to adjust calving dates to spread production through the winter so volume next winter is likely to be consid-erably higher, says Quin.

Overall, Westland is expecting an 8-10% increase in supply next season split between a 2-4% increase in production from its West Coast suppliers, includ-ing one or two new farms, and a jump in supply from Canterbury from 10% of intake in the season just gone to 15-20% of intake in 2013-14.

The plant will be operating at capac-ity for much of the season, with a prod-uct mix of fast-throughput commodities such as butter, skimmed milk powder and anhydrous milk fat required to cope with the peak.

At other times the new $25m nutritional formula plant at Hokitika, commissioned in February, will be used to add value to product.

“It’s progressing very well… In the sea-sons ahead we believe it will have a benefit of over 10c/kgMS to shareholders relative to if we were producing standard milk pow-ders.”

The cooperative has consents to build up to three 6t/hour dryers at Rolleston, Canterbury, where it already has offices and a condensing plant which consolidates Canterbury milk prior to railing to Hokitika for processing. Quin says the firm is still “working through the funding options” on whether or not to build further processing capacity at Rolleston so no “fully fledged” proposal has been put to the board yet, let alone been signed off.

“I’m afraid I can’t put a timeline on that either,” Quin says.


conservative forecast

WESTLAND’S OPENING forecast of $6.60-$7.00/kgMS for the 2013/14 season is “conservative” says chief executive Rod Quin.

“At this point it’s a forward view of the market so we have taken a more conservative approach, but there are strong signals that prices are likely to remain higher through into the 2014 season,” he told Dairy News.

Westland’s all-in-one figure was released late last month, the day after Fonterra’s milk-price-only prediction of $7/kgMS, with an advance of $5/kgMS. Fonterra’s dividend forecast will be announced in July.

Quin says Westland’s forecast was calculated with an exchange rate exceeding US$0.80, and any drop in the currency will help.

“But we don’t have an expectation it will dip into the 70s for too long,” Quin says.

Westland Milk has moved to year-round processing.


16 // news

as winter weather sets in, Horizons Regional Council wants grazing stock off stopbanks to ensure these facilities are best able to perform their function.

The council says its reminder applies to farmers and owners of lifestyle blocks as wetter soil conditions combined with heavy animals, or smaller animals that dig, can weaken stopbanks.

Horizons area engineer Paul Joseph says stopbanks exist essentially to protect thousands of people in the region. Though they can be grazed by young cattle (up to 18 months) when the ground is firm in summer, graz-ing by any cattle is prohibited from June 15 to Septem-ber 15.

“As wet weather sets in it is common sense to keep cattle off the stopbanks. Farmers and landowners know this and in most cases are very cooperative.

“We appreciate the efforts being made to exclude stock from stopbanks, but remind people that... stock must be grazed elsewhere to avoid any damage.”

Joseph says it is a statutory offence to damage the stopbanks and landowners can be held liable to pay for any resulting repairs. “The stopbanks protect property and production worth billions of dollars and ensure the safety of many in our community.

“All it takes is one breached section of stopbank to flood hundreds of hectares of farmland.”

Horizons manages and maintains almost 420km of stopbanks, protecting 46,000ha.

Keeping stock off stopbanks

consumer research has revealed 72% of people in Asia see dairy as an important part of a bal-anced diet. However, the research also shows fewer than half the 9000 people surveyed in nine countries are eating dairy daily.

Fonterra group director strategy, Maury Leyland, says results show growing awareness of the impor-tance of dairy nutrition in the region. The research results were released for the 13th Annual World Milk Day.

“With a fast-growing and increasingly affluent population, people across Asia are becoming more focused on their families receiving the right nutri-tion. Fonterra is well-posi-tioned to help meet this demand,” says Leyland.

“Our strategy outlines our focus on the Asian markets, where we see big potential for growth. In New Zealand the aver-age person consumes the equivalent of 245 litres of milk each year, but in

Asia this average is only 30 litres.”

Dairy demand in Asia has increased by 49% over the last 10 years. Fonterra is in 11 markets there edu-cating food companies and consumers about the ben-efits of dairy, and look-ing at ways to make dairy more accessible in daily diets and a core ingredient in commercial kitchens.

“Our high-calcium milk brand, Anlene, is help-ing hundreds of millions of people maintain good bone health with one bil-lion serves sold in 2012; our Anmum brand reaches more than one million mothers-to-be in Asia every year, serving over 300 million glasses,” Ley-

land says.“We’re also making

the most of opportuni-ties in the global foodser-vice industry. In 2013, our dairy ingredients will be used in four billion meals,

12 million cheesecakes, 1.6 billion burgers, 675 mil-lion pizzas, and 30 million smoothies.”

Of those surveyed, Chi-nese and Thai consum-ers were the most aware of the benefits of dairy nutri-tion, with 84% saying they believed it was an impor-tant part of a balanced diet. Recognition was the lowest (60%) in Indone-sia, Taiwan and Vietnam. Chinese consumers are eating the most dairy: 60% eating at least one serving a day, followed by the Phil-ippines (53%).

Asians value dairy but consumption low

FONTERRA IS planning to launch its own infant formula in China later this year. It will begin selling New Zealand-made Anmum infant formula in China during the second half of this year.

The co-op will first sell its infant formula in Beijing, Shanghai and Guangzhou and then expand sales elsewhere if the initial launch is successful.

Fonterra sells Anmum and nutritional milk powders for mothers and infants.

co-oP eyes china launch

Anchor powdered milk from New Zealand on a Sri Lankan supermarket shelf.

“With a fast-growing and increasingly affluent population, people across Asia are becoming more focused on their families receiving the right nutrition. Fonterra is well-positioned to help meet this demand.”

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18 // news

DairyNZ taps into farm water usedairynZ Plans to run a trial on its research farm near Hamilton to see how much water they use and when they use it.

Chief scientist Dr Eric Hillerton told Dairy News

the trial is to discover the farm’s water usage with a view to providing this data to farmers so they can use water more efficiently.

“So we are interested in knowing how much water

we have for cows to drink and do these requirements actually change when we feed cows differently.

“We are interested in the areas where farmers can’t get enough water with regulatory require-ments coming in, and of course we ‘re very inter-ested in the quality of the water we use to farm. For example… farmers have to rinse their milking plant twice and we’re asking, do we have the quality water to do that?”

Water meters are being installed in the dairy sheds and other parts of the farm. Farmers will be encouraged to visit the site, where displays will show their findings.

“It will be good to show dairy farmers and say to them ‘do you know how much water you use to wash down the yard?’ How much do you use to wash down the plant or what-ever? They will be able to

look at the data coming in from the meters which will show water use at any par-ticular time.”

Hillerton says during the recent drought, though dairy farms managed to get enough water for their stock, unless they were on irrigated land there was not enough water to grow pasture. Storing water off dairy shed or outbuilding roofs may be possible. Hil-lerton noted that Israel is particularly savvy in pru-dently using water.

DairyNZ has installed an effluent system to dem-onstrate to farmers what is being done. “Somebody said to me, ‘it’s Rolls Royce effort’. Well it probably is, but farmers can come and see what we can do.”

A farmer Hillerton recently spoke to was con-sidering installing an efflu-ent system like the one at DairyNZ, and he now plans to visit DairyNZ and see what they have done.

in brief

smash conferenceADVenTuReR STeVe Gurney will talk to dairy farmers about resilience at Smaller Milk and Supply Herds (SMASH) Conferences in north-land, Taranaki and Waikato this month.

The nine times Coast to Coast winner will give inside stories from his wins, his latest ad-ventures and crashes.www.smallerherds.co.nz

Water meters are being installed on dairy farms.

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news // 19

Farming in a fish bowl

social media have thrust farmers into customers’ and consumers’ spot-lights, revealing how food is produced and the resources used to produce it.

DairyNZ chief executive Tim Mackle says the public are taking a greater inter-est in what’s happening on farms, bring-ing farmers new challenges.

“We certainly have a job to educate the public about what the practical real-

ities are of food production. There’s work we have to do and it’s no differ-ent from a lot of other industries. We know we have an urban population in New Zealand and so we have to work hard at making sure they understand what we do.”

Mackle says a big risk of social media is things being taken out of context, misrepresented and often picked up by key overseas customers. “We must ensure we are farming using good prac-tices and all following good standards that we agree on. But we also need some

strategies we agree on to counter mis-represented stories.”

Mackle warns farmers they “might have to do more environmentally than is in their milk supply contracts”. For example, water is a big issue and over the last five years the awareness of water quality issues by farmers has increased dramatically.

“For some more than others, but the awareness at least of farmers is certainly there now. As an industry we are rela-tive newbies to the whole sustainability agenda so we have been playing catch-


UP TO 40% of dairy farmers in the North Island will make a loss this past season, according to the chief executive of DairyNZ, Dr Tim Mackle, speaking at a recent DairyNZ Farmers Forum at Woodville.

Mackle says the drought has forced North Island farmers on average to spend about $60,000 on extra feed for their cows.

With milk production down because farmers have had to dry off early, this has cost them on average $100,000.

While the new payout from Fonterra might be good news for next season, it will do nothing to alter the plight of farmers this season, he says.

“The current season payout means these farmers will struggle

to cover the cost of their farm working expenses combined with their interest and rent payment. That’s because when you reduce your milk production you still have to cover the fixed costs on the milk solids you’re producing.”

Mackle says he hopes banks will support farmers to get them through “challenging times for everybody”.

drought casts shadow

up for a while. But we are getting our-selves well organised now and farmers are getting into things they need to be doing and we are trying to work through what has to be done.”

Mackle says the new water accord sets out base level across the coun-try, and what is regarded as good prac-tice. Catchments in some regions will require more attention and work by farmers who must band together and

see how collectively they can improve. Mackle points to efforts of farmers in the Lake Rotorua catchment as an example.

The solution lies in a “community approach being taken whereby farmers can be a part of the solution. So long as they are making a profit they are happy to chip in and help,” he says.

DairyNZ chief executive Tim Mackle says there is greater public scrutiny on farming practices.


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20 // world

Fodder shortage causes concern among farmershigh demand and successive years of low production has created a fodder supply short-age in Australia’s dairying regions, creating head-aches for farmers sourc-ing feed.

Dairy Australia’s feed-

base programme man-ager, John Evans, says while stocks of high qual-ity cereal hay are being held by exporters in WA and SA it will cost much more if sold on the domes-tic market.

Alternative sources of

fodder are available, in particular alternative fibre sources, but some coor-dination will be needed to secure these. Farmers also needed to be wary of the potential for chemi-cal residue contamination of these alternatives, says Evans.

“Cotton trash, rice straw and maize stub-ble from the Murrum-bidgee Irrigation area and Sorghum stubble further north are potential fodder sources but are often seen as waste products and not usually baled or traded so a clear message indicating demand for these fodders will be needed to ensure supply,” he said.

“The best approach to accessing these fodders is likely to be through con-tact with milk compa-nies and traditional fodder suppliers who can source product in a coordinated way.”

Evans says that as these crops were grown for grain and not fodder, farm-

ers needed to ensure they were free from chemical residues including insec-ticides, herbicides and fungicides used in crop growth. Farmers should check with their supplier about the crop history and potential residues, he said.

While these poten-tial fodder sources are low quality they are good sources of effective fibre which can be used to help balance diets based on lush pasture and grains/concentrates.

“When considering alternative feed sources it is also important to ensure there is adequate effective or long fibre in the diet, this fibre promotes chew-ing and saliva production reducing the risk of a drop in rumen pH and acido-sis,” he says.. Other alternative feeds such as palm kernel extract (PKE), grape marc or almond hulls are also useful for making a ration but they have low effective fibre levels.

the world’s cheesemakers and retailers will this Sep-tember square off again in the prestigious cheese compe-tition that runs annually in Somerset, England.

The Global Cheese Awards attract thousands of entries from companies of all sizes, from artisan produc-ers to large creameries and the world’s major manufac-turers. Judging takes place on September 13, by 70 judges, who announce results that day.

Once called Frome Cheese Show, the event was first held in 1861. In 2012 alone, 429 awards were won in 171 cheese classes, 20,000 people experiencing a huge collec-tion of international cheeses.

All the world is watching, says awards chairman Nigel Pooley. “Our awards [allow] cheese makers of any size to go head to head with competitors from across the globe, confident the results are based solely on quality.”

Inquiries are coming from individual producers, dairy cooperatives and industry bodies in Europe, Australia, America and India. “This… is proof that winning on a global stage is, quite simply, good for business,” Pooley says.

The contest’s location in the Somerset Cheddar region gives it huge appeal to British cheese makers.

At judging time there will also take place ‘2020 Vision@The Global Cheese Awards’. Industry experts will talk about challenges and opportunities faced by the global dairy industry. Topics include international trade devel-opment, product innovation, world food trends and the future of farming standards.

With judging over, preparations then turn to the Som-erset’s largest single-day country show, the Frome Agri-cultural and Cheese Show on September 14.

Global cheese contest draws strong interest

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world // 21

UK farmers reject EU’s proposal to curb milk supply

MILK QUOTAS have affected EU dairy export market share over the past ten years, says Dairy Ireland.

EU milk production has remained largely static at less than 160 billion litres of milk produced annually. Yet, global milk production has increased by 130 billion litres since 2000, it says.

A 3% per capita decrease in dairy consumption has been noted within the EU since 2005.

On the flip side, emerging markets have seen a substan-tial growth in dairy product consumption, namely South America (+26%), Africa (+22%) and Asia (+13%).

Tethered by milk quotas, the EU has seen its global dairy export market share reduce by a third since 2000. This loss of market share has been at the expense of significant gains, and market development by New Zealand and the US.

Dairy Ireland says it recog-nises that future exports will be impacted by even greater market globalisation, econo-mies of scale, synergies, and partnerships.

“Given Ireland’s natural grass based milk production advantage, Dairy Ireland is challenging its stakeholders to further explore possibilities to deliver greater product value, and innovation post-2015,” Dairy Ireland says.

Quotas eroding market share

uk dairy farmers are unhappy with calls for controls of milk sup-plies in the EU beyond 2015.

The NFU wants CAP (common agricultural policy) reform negoti-ators to reject proposals from the European Parliament that would see a return to supply controls in the dairy sector once the existing quota system expires in 2015.

The proposal – supported by the European Parliament as part of the on-going CAP reform to maintain supply management in the dairy sector – requires the retention of the milk quota administrative framework, raising doubts about the EU com-mitment to the abolition of quotas in 2015.

The NFU says the system would, in the event of a severe crisis in the dairy market, grant aid to farmers who vol-untarily cut production by at least 5%, compared with the same period

the previous year, and would impose a levy on farmers who have increased their production.

NFU dairy board chairman Mansel Raymond says dairy farmers work with the knowledge that controls on how much milk they produce will end in 2015.

But there are some in Europe who would like the supply of milk within the EU to remain shackled through the back door, he adds.

“Dairy farmers face increasingly volatile market conditions and that’s why there is a need for the continu-ation of effective market safety nets within the CAP.

“But the existing tools, such as intervention, public storage and the direct payments made to dairy farm-ers, are sufficient and we strongly support their continuation. How-ever, there should be no place in a modern market-orientated CAP for

supply management measures that penalise farmers for increasing their production.

“Take a young farmer coming into the industry who has the means to invest and can seize the opportu-nities posed by the growing global demand for dairy products. Under the plans from the Parliament, that same young farmer could face crippling penalties purely because he grew his business and increased production, but was unfortunate enough to do so just as the global market was taking a downturn.

“It’s not right that they would see the milk price fall and receive penal-ties on top, when at the same time, farmers who had decreased their pro-duction would be granted an incen-tive payment. That’s simply not the right way to ensure a modern mar-ket-orientated dairy industry within the EU,” Raymond says.

UK farmers are unhappy with moves by the EU Parliament to control milk supply once CAP expires in 2015.

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Ruminating

EDitORiaL

miLking it...

22 // OPINION

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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.

ABC audited circulation 27,478 as at 31.12.2012 ISSN 1175-463X

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SOUTH ISLAND:Kaye Sutherland ..............Ph 03-337 3828, 021-221 [email protected]

Keeping ahead of the game

THE MOVE by DairyNZ to take a close look at water usage on its dairy farm in the Waikato is timely and shows good scientific leadership in this area.

Water is a hot topic: Government reforms are moving through the regulatory process and a strong Government push is on for more irrigation schemes; many are in various stages of devel-opment. Regional councils are also getting in the act by quite rightly seeking to impose sustainable limits on water takes.

Recent nationwide drought vividly highlighted the economic impacts on farmers of water, or its lack. That 40% of North Island dairy farmers will take a loss this season due to the drought is compelling evidence that something needs to be done.

The catch-cry that there isn’t a water shortage problem in New Zealand, just a water storage problem is not new, but it probably oversimplifies the issue.

Strong competition persists in the primary sector for water – notably dairy versus horticulture and arable farming. Many commercial growers fear they will lose water to dairying, espe-cially when they see good quality water used to wash down dairy sheds when recycled water could suffice. The Government has signaled the need for water to be used ‘efficiently and for its highest value use’. The question arising is, is dairy wash-down highest value use?

DairyNZ is working with farmers on the Smart Water Use on Dairy Farms programme, which puts farmers at the front of the pack in more efficiently using water. Smart water use saves dairy farmers money, is part of good farm management, helps protect the local environment and is good for the industry and New Zealand

This latest initiative by DairyNZ to install water meters is another example of the industry being ahead of the game.

Once DairyNZ has worked out how much water it’s using on its farms, someone may have to go one step further and look at ways to reduce water use in the sector. Recycling may be costly for farmers, but it may be the only answer in some regions where there is strong competition for water. Being proactive and having good research data available is the best way of deal-ing with threats.

Fonterra bashing again?THE GREEN Party wants Fonterra to suspend taking milk from Tarana-ki land where oil and fracking waste has been spread and covered.

“People don’t want to drink milk from cows grazed on pasture with petroleum industry waste beneath it, the Greens say.

Has anyone done any tests to verify this? Or are the Greens indulg-ing in their favourite pastime – Fonterra bashing?

Belching cows in the spotlightBELCHING COWS are in the spotlight as a team of international scientists hope to breed a herd of all-star – and burp-less – cows.

The Evening Telegraph reports the University of Aberdeen is leading the $10 million RominOm-ics project intended to increase the efficiency of ruminant farming while decreasing its environ-mental impact. In study-ing a herd of 25 dairy cows, researchers found some animals produced less methane than others.

The research will extend to 1400 animals to help researchers select which animals will have smaller impact on the environment

Green powerTHE GREENS sound confident of being part of the government after the 2014 elections. Al-ready they are vowing to repeal John Banks’ char-ter schools legislation if elected into power.

Meteria Turei as the next education minis-ter is unthinkable, but politics is the art of the possible.

The big question for the rural sector is who would take over the reins of managing the environment if the Greens do end up in the seats of power? Russell Norman as the next environment minister?

The Crafar curseA SOUTHLAND dairy com-pany called Milkpride has not lived up to its name, copping a fine of $40,000 imposed by Judge Phillip Cooper in the Rotorua Dis-trict Court. The farm had pled guilty to one charge under the Animal Welfare Act of failing to provide proper and sufficient food to 392 cows in 2009 on the Taharua dairy farm near Taupo.

Milkpride had bought the herd a year earlier from one of the failed Crafar companies and entered into a sharemilking agreement with it. While there was no suggestion Milkpride had deliberately underfed the animals, 392 cows were emaciated and in urgent need of attention, the court heard.


OPINION // 23

No cut to biosecurity funding

Primary Industries Minister Nathan Guy syas biosecurity is his number one priority.

IAN PROUDFOOT’S article in the last Dairy News ((May 28) deserves a response, particularly as his claims on biosecu-rity funding cuts are com-pletely wrong.

To make it crystal clear: funding has not been cut for biosecurity.

Appropriations for ‘border biosecurity moni-toring and clearance’ were temporarily higher in last year’s Budget because $5 million in funding was brought forward from 2011-12 to pay for the Joint Border Management System (JBMS), and $1 million for the merger to create the Ministry for Pri-mary Industries was also brought forward.

It is normal practice for costs for major projects to be variable across dif-ferent financial years, and shows why it is misleading to just look at the headline figures.

If Mr Proudfoot had checked with me I could have explained this to him.

Biosecurity is my number one priority as Minister, and overall fund-ing has doubled since 2000. We now have a major programme of work underway to improve what is already a world-class system.

Over the last six months we have recruited 56 new frontline biosecu-rity, 12 of whom gradu-ated in Christchurch last month. A further 30 are being recruited shortly.

We’re also work-ing closely with Austra-lia on our preparedness for foot and mouth dis-ease. A recent Auditor-General report noted that MPI has been successful in responding to incur-sions, and plans are being updated to deal with pests, improve our surveillance and targeting, and hold ongoing regular exercises and simulations.

I also take issue with the claim that the Budget

contains little for the pri-mary sector.

As well as the $80 mil-lion for irrigation, fund-ing is also continuing for the Primary Growth Partnership (PGP). This is a government-indus-try initiative that invests in major programmes of research and innovation.

In just three years, the Government and industry have invested $650 million into these projects. This covers everything from aquaculture, biosecurity, forestry, red meat projects and many more. In total these have the potential to add over $7 billion to the wider economy.

We also have the Sus-tainable Farming Fund which is investing $8.8 million into 42 projects. Some of these projects

include improving nutri-ent management, promot-ing pasture persistence, biological controls for pests, and developing aquaculture.

Other programmes across Government will also have a real impact on the primary industries.

The National Sci-ence Challenge has iden-tified 10 top priorities, and four of them have strong relevance to the primary sector: Our Land and Water, High Value Nutrition, Resilience to Nature’s Challenges, and Science for Technological Innovation.

Over $70 million is being invested into tack-ling these issues over the next four years.

Our reform of the RMA will continue to streamline the process and continue to manage environmen-tal obligations. Change to transport rules for agri-cultural vehicles have also been well received by farmers and contrac-tors.

The Rural Broadband initiative will deliver high speed internet to 252,000 rural households, connect-ing us locally and interna-tionally.

We also have the big-

NAThAN GUygest investment in New Zealand’s roading net-work in history, with $11 billion over 10 years going towards seven major high-way projects. This will get product from the farm gate to the proces-sor and onto markets even quicker.

At the same time, we

have carefully managed Government spending so that we are back into sur-plus next year. This is a huge achievement and most other countries around the world will be envious.

Importantly, this good financial management means that interest rates

are at a 50 year low – more good news for the primary sector.

There is a huge amount happening in the primary industries and I’m proud of how the Government is backing our economic powerhouse.• Nathan Guy is the Minister of Primary Industries

“We now have a major programme of work underway to improve what is already a world class system.”

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24 // AGRIBUSINeSS

Made from dehydrated molasses and filled with nutrients, Crystalyx Dry Cow helps your cows through the entire pre-calving period.

Easy to handle, weather-proof and very ‘lickable’, it’s one of the best ways to get calving, milk fever, lactation and your holiday licked before Spring even arrives.

“It’s too easy. Just put it in the paddock and go away. It speeds up the transition time from dry cow to milker, the cows cycle better. There’s less mastitis and the cows are quieter.”- Mark Newton & Sarah Manders, Tokoroa Dairy Farm.

Lick to turn pasture into production.

For more information call Altum on 0800 784 674 or visit www.altum.co.nz

Take the stress out of winter farm management with Crystalyx Dry Cow - the proven premium molasses block.

Winter Management Licked Calving Licked Milk Fever Licked Lactation Licked Holiday Licked

PAM [email protected]

FONTeRRA BRAND Tip Top’s Boysenberry Ripple ice cream has won the supreme award for a large manu-facturer in this year’s national ice cream awards – the second consecu-tive year it has taken the award.This ice cream was also best in cat-egory for a standard ice cream and judges described it as being a really fresh boysenberry ripple in a flavoured base ice cream. This is the fourth year in a row that this ice cream has won best in category, but is the first time it has won the supreme award.Fonterra’ s Tip Top also won best in categories for standard vanilla ice cream, Cookies & Cream, and the low fat category with Creamy Yoghurt Ice Cream Strawberry.The supreme award for a boutique manufacturer this year was awarded to an entry in the gelato category with Licorice Gelato made by Takapuna

Beach Café and Store, the third con-secutive year it has won that award.This is the 17th year of the New Zea-land Ice Cream Awards. What started off in 1997 with six categories and 61

entries has developed into a compe-tition of 11 categories and 307 entries in 2013. The number of participating entrants in the event run by the New Zealand Ice Cream Manufacturers’ Association has grown to 35, and they range in size from small gelato manu-facturers to those making millions of litres of ice cream per year.

The individual categories which attracted the largest number of entries were premium ice cream with 52 entries, gelato with 43 entries and sorbet with 43 entries. The ‘best of ’ category this year fea-tured Cookies & Cream, with some different variations such as Anzac Cookies, Shortbread, Dutch Cookies and even Pear and Cinnamon Cookies. The judges felt that the “more iconic” flavour of Oreo cookies and cream by Tip Top was the best flavour and tex-ture out of the total 27 entries. The main judging of the New Zealand Ice Cream Awards took place during the second week of May at the Massey University campus, Food Technology Department in Albany, Auckland.Twelve children aged 7-11 years from Pt England School in Glen Innes were chosen to judge the Kids Choice cat-egory. Much Moore Wonders Favou-rite Trio (Orange Choc Chip, Hokey Pokey and Boysenberry) made by Kiwi Ice Cream Company Ltd being chosen as the winner.

Leading ice cream maker wins again

The NATIONAL Fieldays Society’s new headquarters building was formally opened on May 31 by the Speaker of the House and former Minister of Primary Industries, David Carter.

The new building is at the top of the hill adjacent to Gate 2 (main entrance) and overlooks the site.

Planning began 18 months ago and it has taken 12 months to erect. It has been in use for a month. The site houses the Events Centre, Expo and Fieldays.

There were 180 invited guests pres-ent and they were addressed by Fieldays president Lloyd Downing, chief execu-tive Jon Calder, Tony Begbie and then David Carter who cut the ribbon with Downing and declared the building open. “The new site will give visitors a better comprehension of the total area, improved working conditions for the staff as well as freeing up the previous administration area for further devel-opment,” said Downing.

The Fieldays Society has a master plan for the site. See it at Fieldays.www.fieldays.co.nz

TONy hOPKINSON

New building for Fieldays


AGRIBUSINeSS // 25

FONTeRRA FARMeR shareholders have shown interest in an offer to sell the economic rights to their shares, with about 20% taking up the compa-ny’s supply offer.

Fonterra has confirmed that its farmers offered to sell 75,223,742 economic rights of ‘wet’ or milk sup-ply-related shares in this month’s offer, valued at nearly $600 million. The final purchase price for the offer was $7.92. In net terms the offer will not affect the total number of units on issue and the shareholders fund will not increase in size.

Fonterra will purchase the units that arise as a result of the supply offer, using the $475 million raised at the launch of TAF,

and subsequently redeem them for Fonterra shares. Milk production-backed shares (‘wet’ shares) are any shares held by a farmer shareholder which are required to be held in accordance with the share standard for a season. The offer period for the supply offer closed on May 23 with farmer sharehold-ers representing a total of $595,772,037 in offers.

As this amount exceeds the $475 million Fonterra had announced was the maximum to be paid under the supply offer, the co-op has scaled acceptances by 79.73% on a pro-rata basis to achieve the maximum $475 million. The result is that farmer sharehold-ers will sell 59,973,601 eco-nomic rights of wet shares

to the fund pursuant to the supply offer.

The transfer of coop-erative shares by farmer shareholders participating in the supply offer, the cor-responding issue of units in the fund, the acquisi-tion of those units by Fon-terra and the redemption of those units in exchange for co-operative shares all occurred on May 30.

The success of TAF has been highlighted by a dra-matic rise in the unit price since launch late last year;

in addition, the drought has given a value add to the shareholders fund, and having the right to sell shares has given farmers another cashflow option at a vital time – helpful for drought affected farmers.

Council chairman Ian Brown said the offer showed farmers are begin-ning to take advantage of the flexibility TAF offers them.

“The solid level of demand from shareholders to release some of the eco-nomic value of their shares shows they’re using TAF to their benefit; farmers are taking advantage of the greater flexibility it offers them in making decisions that impact the day-to-day running of their busi-nesses.”

The $500 million released into the economy will be a windfall in the rural sector as some busi-ness suffer a downturn from the effects of this summer’s drought.

The cash injection is particularly relevant to the rural sector as money in tight times gets spent among farming opera-tion businesses before it gets spend elsewhere in the economy. However a $500 million cash injection is welcomed by all at any time and this shows that the benefits of TAF are reaching beyond the dairy industry.Francis Wolfgram, BA (Econ), is an independent financial analyst. Contact him at [email protected]

TAF benefits reaching beyond dairy industry

in brief

eNTRIeS OPeNENTRIES AND nominations are now open for the 2013 Lincoln University Foundation South Island Farmer of the Year Competition.

Chairman of the foundation’s board of trust-ees Ben Todhunter says that the competition’s top prize has been raised by $5000 to $20,000.

This is given as a travel grant to allow the winners to go overseas to look at other farming practices, examine new technologies and innovations and enhance their farm business.

In addition, the foundation is offering three new category prizes: human resources manage-ment, use of technology and resource use ef-ficiency. Winners of the category prizes will each receive $5000.

Entries close August 1. Judging will occur dur-ing September/October with the finals night in November.

Todhunter says the increased value of the top prize and the new prize categories are part of the Foundation’s drive to celebrate, share and learn from excellence in farming practice in New Zealand.

Check out our new websiteswww.ruralnews.co.nzwww.dairynews.co.nz

Made from dehydrated molasses and filled with nutrients, Crystalyx Dry Cow helps your cows through the entire pre-calving period.

Easy to handle, weather-proof and very ‘lickable’, it’s one of the best ways to get calving, milk fever, lactation and your holiday licked before Spring even arrives.

“It’s too easy. Just put it in the paddock and go away. It speeds up the transition time from dry cow to milker, the cows cycle better. There’s less mastitis and the cows are quieter.”- Mark Newton & Sarah Manders, Tokoroa Dairy Farm.

Lick to turn pasture into production.

For more information call Altum on 0800 784 674 or visit www.altum.co.nz

Take the stress out of winter farm management with Crystalyx Dry Cow - the proven premium molasses block.

Winter Management Licked Calving Licked Milk Fever Licked Lactation Licked Holiday Licked


26 // AGRIBUSINeSS

Fonterra rules out milk, breakfast schemes merger

FONTeRRA PRe-DICTS 70-80% of New Zealand schools may sign up to the Milk for School

scheme, says managing director corporate affairs Todd Muller.

But it does not plan to merge the scheme with the breakfast in schools programme, Kick Start, because they are distinctly

separate, he told Dairy News.

One is to help the most vulnerable children, the other is to increase milk consumption and make sure dairy is part of chil-dren’s nutrition.

PAM [email protected]

The last week of May was a big week for both schemes: the Government announced $1.9m a year for the Kick Start scheme; and Milk for Schools reached Christchurch during its South Island rollout which started in Invercargill a few weeks ago.

Muller says although Fonterra envisages Milk for Schools will eventually reach 70-80% of schools, “ultimately it is up to the boards of trustees of pri-mary schools to decide if it is a programme they want to be part of. But the feed-back is hugely positive”.

Sixty per cent of Can-terbury schools are signed up, more than that in Southland and Otago, and in Northland it is at least 80%. Fonterra aims to have Milk for Schools through the whole coun-try by the end of term one 2014.

The scheme has two main drivers, says Muller. “It was really important to reverse the declining trend in milk consumption in New Zealand and particu-larly the sharply declining trend in milk consumption by younger people. The younger generation were drinking less milk than their parents’ and grand-parents’ generations. We thought milk should be a regular part of New Zea-landers’ diet, particularly children’s diet, because it is a particular part of what they need to grow up healthy.

“In the feedback we got from the Northland

trial, the teachers saw a noticeable difference in the performance in the class – the kids have more energy, they were more attentive. I appreciate this is qualitative – this was feedback we got directly from them. And we also got milk consumption growing in that region.

“It is a good result for the co-op… and it is a good thing for New Zealand because the young people are getting a good nutri-tional dose of dairy every day.”

Milk for Schools and Kick Start are not likely to ever be merged. “The Kick Start programme is now in its fifth year. We have partnered with Sanitarium to assist children who are most vulnerable and most in need with breakfasts in their school. In a nutshell Sanitarium is providing Weet Bix and we are pro-viding the milk on top.

“But it has worked really well in 600 schools that have taken up this programme. The Govern-ment has looked at the success of the Kick Start breakfast and has decided to… ensure it is available initially for lower decile schools five days a week (now 2 days a week).”

Muller says Fonterra must spend a bit more to support the expansion to five days a week in schools currently using the pro-gramme, but the cost is largely picked up by gov-ernment. More cash may be needed if the pro-gramme expands to other schools.

FONTERRA SAYS there was excitement at Milk for Schools reaching Canterbury particularly given what that community has been through.

Fonterra ambassador Richie McCaw was back in his home town to attend the launch at Burnside Primary School in Christchurch.

Muller says principal Matt Bateman referred to what the Christchurch community had been through and the school’s efforts to rebuild. He said to have access to milk given every day for the school was a tremendous gift to the chil-dren and the wider community.

Muller says there was excitement at reaching the region, which now has 120 schools signed up; among those who attended were farmers and regional and local government leaders.

exCITeMeNT IN CANTeRBURy

Fonterra’s Carly Robinson and Southland farmer Greg Hart celebrate the recent nationwide rollout of Milk for Schools.

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28 // MANAGeMeNT

Cow home reduces workload, ShAUN AND Fiona Kehely had been discuss-ing building a Herd Home on their dairy farm for nearly five years and after two years in the building the first cows used it in early April.

“We did our home-work as we saw the poten-tial it offered to our farm. And when all Herd Homes

users we visited said they increased production by at least 20% because of their Herd Homes it was a factor in us committing to the project,” said Shaun.

They farm at Oropi, 30min south of Tauranga and the farm is 900ha with 430ha for the dairy platform, a 100ha block of native bush, 100ha of plantation pines and the balance a cut-over for-estry block. The Herd

Home and the dairy shed, a 20-aside herringbone, are at 335m above sea level and the highest paddock is 450m. They trade as Oropi Bushlands Ltd in conjunc-tion with Shaun’s parents Grahm and Joan.

“The contour is steep to hilly, the rainfall is 2000mm, well spread and we do get the odd snow-fall,” commented Fiona.

The farm has 35km of races and cows have to

TONy hOPKINSONwalk up to 3.5km to the furthest paddock and the amount of production that walking was costing was another factor in their decision to build a Herd Home.

At present there are 1100 cows on the farm with 450 being winter milked. They are all Frie-sian and Friesian cross cows. During the season they are milked in three herds of 300 cows each with their own manager being responsible for their herd and area of the farm. They have three vats and three supply numbers so herds can be compared. They supply Open Coun-try Cheese.

“By keeping the herds fewer than 300 there was a lot less damage to our steeper paddocks plus it was ideal for our smaller dairy shed,” said Shaun.

They have not reared any replacements for seven years and all are bought in. “The cost of

getting them in calf, some staff were not good at selecting cows, and rear-ing calves at a busy time of the year made the decision to change easy.”

All replacements are bought in the autumn and are generally empty cows, still milking and with high BW and PW. “Before we buy we can see them as milkers and can check for details such as four teats, age, condition and the bonus of not having to train them for the milking shed.”

They use Hereford bulls, having up to 45 on the farm at any one time and have 85% of the main herd calving in three weeks. There is a demand for the calves but even with a premium they are now using Jersey bulls.

“Both of us are get-ting a little older, the cows will be easier to calve and smaller animals to handle,” commented Fiona.

They buy in about 40 big bales of grass silage from Ohakune, 650t of locally grown grass silage and 200t/DM of maize silage. It is the intention now they have a better feeding system to increase the use of PKE. Six hun-dred tonnes of fertiliser are spread annually “and we are not big users of nitrogen.”

Their fertiliser pro-gramme is planned with Brian Thomas of Nutri-Link.

They have two paral-lel Herd Homes each 90m

long x 12.5m wide with feed strips on each side of both sheds. In the middle and length of each shed there is a mounded base of pumice/sand mix from the farm, with stalls and railings. Each shed can feed 300 or sleep 250 for 12 hours or house 200 for 24 hours.

The slatted floors are over effluent holding pits 1.5m deep and reckoned to last 12 months before cleaning.

There are two separate pits on each side.

Shaun has installed a perforated downpipe in each pit that allows the urine to drain out and this is pumped to the dairy shed ponds and irrigated to the farm. He believes that at present about 2000L are separated daily and if cows are brought in wet their body hair retains up to 10L per cow.

When the pits are cleaned the effluent will be spread on paddocks furthest from the shed where there has been fer-tility transfer over the years with the balance to be spread on the forestry conversion block.

Initial results have Shaun and Fiona Kehely.

Herd Homes offers potential to the farm, say the Kehelys.

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MANAGeMeNT // 29

lifts yield

pleased Shaun and Fiona. They have 450 cows in two herds supplying winter milk with each spending 12 hours in the shed

The first day the cows used the shed there was a dip in production but since then there has been a steady increase of 200-500L per skip-a-day col-lection.

The cows are now fully fed, eating fewer supple-ments than last year as all feed is consumed and there is no wastage.

“We are on a 60 day round and we have grass to burn and spending only one hour per day feed-ing out compared to six hours daily under the old method and getting by with two staff instead of the usual four.”

Other initial benefits include a dramatic drop in tractor usage leading to fuel savings reckoned about $2000 monthly, the races are clean with no tractor usage, half the cow

SHAUN KEHELY has had a lifelong interest in horses and horse riding and his wife Fiona decided “if you couldn’t beat them you joined them.”

She now runs Oropi Bushlands Horse Trekking on their farm. It has been running for six summers, with only 12 horses and it specialises in small groups catering for one to six riders.

Treks can be from one to six hours and are available seven days a week.

“The farm has awesome views to White Island in the south to Kati Kati and Coroman-del in the north and we have a 16m waterfall, a 1ha lake with plenty of native birds and native bush,” said Fiona.

She also has a passenger licence so groups can be collected from Tauranga and treks are designed for all levels of horse rid-ing ability.

Tel. 07 543 1113www.oropibushlands.co.nz

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traffic and no muddy pad-docks.

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stock and for wash down water for the dairy shed.Tel. 021 706 848www.herdhomes.co.nz

The 900ha farm runs 1100 cows.


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30 // MANAGeMeNT

Dr Sharon Woodward, DairyNZ

Mixed pasture an answer to NMIxeD PASTURe spe-cies may be another tool

some farmers can use to reduce the amount of nitrogen their cows put on pastures through their urine, says a DairyNZ senior scientist.

Dr Sharon Woodward told a recent Farmers Forum at Woodville about the results of a three-year farmlet study of the value of mixed pasture spe-

cies, done at a DairyNZ research farm in Waikato.

One finding is that mixed pasture species will reduce the amount of N released by a cow when it urinates.

The trial involved growing a mixture peren-nial ryegrass and white clover with other species such as lucerne, chicory, plantain and prairie grass. The latter was quickly ruled out as it didn’t per-form but all the others remained.

“We were looking at it firstly from just a dry matter availability point of view, especially over the summer. We expected when we established those pastures that they would offer big benefits in summer and autumn. The other question was, when you feed mixed pastures to your cows, do you at least maintain milk production at the same level and not experience any losses?”

Woodward says they haven’t seen any decrease in milk production during a couple of the autumn periods and have actually seen a bit of an increase. “On one of the field trials we were running, the cows were on equivalent intakes, so we wouldn’t have expected to see much difference in milk produc-tion because it would only have been a quality issue.

But when we had the cows indoors and they were able to eat ad lib, we did then see differences in intake and in milk production.”

Woodward says the cows on mixed pasture ate a little less (14.6kgDM) than those on conven-tional pasture (15.8kgDM). But despite eating less the cows on the mixed pasture were more efficient and produced more milk.

Pasture performance proved interesting. For example, in summer at the height of the drought the lucerne acted as a ‘shade’ for the ryegrass.

“You could see ryegrass still at a reasonable length and lush green, whereas the ryegrass in the stan-dard pastures was a few cm high and brown and curled up. AgResearch sci-entist Katherine Tozer had been looking at ‘weedyness’. Her research showed that the weed population in mixed pas-tures is kept under better control than in the stan-dard pastures and in our trial the weed populations are very very low,” says Woodward.

But for dairy farmers, the possibility that mixed pasture species result in less nitrogen being con-tained in the urine of cows offers some hope in areas where N leaching looms as an inhibitor to production.

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MANAGeMeNT // 31

BCS link to animal healthThe IMPORTANCe of getting cows up to the rec-ommended body condi-tion scores (BCS) of 5.0 for cows and 5.5 for rising three-year-olds and heif-ers has been proven by research at DairyNZ.

So says Dr Gywn Verkerk, a keynote speaker at a recent DairyNZ Farm-ers Forum at Woodville.

The research involved running three herds of cows at BCS 3.5, 4.5 and 5.5, primarily to look for major correlation between BCS and health. Verkerk

says the effect of BCS on reproduction is well known, but they were looking to see if thinner calving or fatter calving cows were more suscepti-ble to disease and how this related to BCS.

“You could do a big epi-demiology experiment and get all sorts of infor-mation from farms all over the place about diseases. We were more focused on the metabolism of the cow and did some detailed

measurements about the cow and looking at the liver and things like that. So we chose to use a smaller group of cows which meant we couldn’t collect clinical data but it has allowed us to have a much more specific view of what’s going on in the cow.”

The scientists looked at a lot of mineral things. “We looked at the immune functions of the cows and developed some spe-cific tests to look at how well their immune func-

tion was. We looked at a lot of things like white cell counts and a range of proteins that increase when there is inflamma-tion. We did a lot of work with milk samples looking at somatic cell counts and culture for mastitis.”

The scientists looked at things to do with hunger via animal behaviour stud-ies. “The three take-home messages for farmers was the need to carefully mon-itor magnesium levels in

cows especially during dry periods,” Verkerk says. “We also learned that the uterus in cows with higher BCS turns over faster and enables the cow to be ready to mate earlier, and that cows with a very high BCS had a greater risk of developing milk fever, ketosis and fatty liver infil-tration.”

They were surprised at the low magnesium levels during the dry, but she says this backs up DairyNZ’s view that if farmers are transporting

cows they should monitor their magnesium levels. She says if they don’t do this there is the risk of ‘cows tipping over’. “It backs up our view about the need for magnesium supplementation,” she says.

Verkerk says the research was timely given the recent drought and has given scientists a greater insight into what happens with very thin cows.

“I don’t want to give farmers the idea that they get away with 3.5 at

calving. We were con-cerned about these cows, and at the research farm they were watched like hawks…. BCS should not fall below three… you can manage down to that level although it’s not ideal and the cows will produce very little milk.”

Verkerk says cow health and their reproduc-tive ability are optimised if their BCS is about the rec-ommended 4.5 to 5.0.

Gywn Verkerk

Body condition score should never fall below 3,

says DairyNZ.

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32 // MANAGeMeNT

‘Cows on maize produce less N’MAIZe CROPS could help farmers worried about high nitrogen leech-

ing, said Pioneer and Bal-lance representatives speaking at a roadshow seminar organised in Northland by HerdHomes founder Tom Pow.

GAReTh GILLATTRepresentatives of

Pioneer, Ballance, Herd-Homes, ANZ and North-land Regional Council addressed farmers at an on-farm meeting at Ruawai. The topic was high performance, low environmental impact.

Supplement use got a lot of mention, Pioneer forage products manager Jakob Kleinmans saying that stock fed on maize produced very little extra nitrogen due to its low crude protein content compared to other supple-ments or even pasture.

According to the New South Wales department of primary industries, maize contains 8.4% crude protein on average com-pared to 17.2% for rye and 18.4% for lucerne. This means that cows on maize produce much less nitro-gen in their urine or dung while still keeping the same milk volumes, says Kleinmans. “The issue is how much urinary nitro-gen do you have and how can you bring it down?”

One way to do that is to look to supplemen-tary feeds high in carbohy-drates and low in protein, Kleinmanns says. With maize having 673.86% in digestible fibre and 9.58mj/KG dry matter of metabo-lisable energy compared to lucerne’s 61.47% digestible fiber and 9.22mj/kg dry matter ME. “New Zealand pasture is quite high in protein, that’s why maize and pasture works so well together.”

Maize was also twice

as efficient as pasture in water and nitrogen use, says Kleinmans. Its deep roots allows it to pull nitrogen and water from much deeper pasture spe-cies.

While nitrogen require-ments for maize are low, Ballance regional sales representative Neil Crow-son says farmers’ prac-tice of using farm dairy effluent to feed crops can sometimes leave those crops looking for extra nitrogen, especially if that effluent is coming in sludge or solid form.

About 40% of farm dairy effluent is used to fertilise crop paddocks, says Crowson, but the form it comes in will affect how fast plants can take up the nutrients.

While liquid effluent from ponds made nutri-ents available to plants almost immediately, Crowson says that nitro-gen in sludge and solid form takes longer to break down.

When effluent has been mixed with something like sawdust – high in carbon – it can take up to two years to break down fully, which means that only 15-25% of the nitrogen is available to the crop that needs to be fertilized, says Crowson.

With minimum soil pH requirements of 5.6-6.2, and requirement for 15 units of phosphate, four units of potassium and 20 units of magnesium, Crowson says crops often miss out on the required phosphate.

hIGheR yIeLD, LeSS IMPACT ON eNvIRONMeNT

HIGH PRODUCTION dairy operations don’t need to have a big impact on the environment, according to roadshow speakers.

HerdHomes founder Tom Pow underlined that farm dairy effluent is an essential resource which contains almost all the elements needed to guarantee good plant growth.

He points to a study of two 225ha properties with different stocking rates. A pasture-only farm with 3.2 cows/ha produced 1050kgMS/ha/year, its effluent valued at $33/cow or $24,000. The same size property which used a feed input system was able to stock 4 cows/ha, generating 1330kgMS/ha/year and $115,000 of effluent, says Pow.

Jakob Kleinmans


ANIMAL heALTh // 33

MAGNeSIUM DeFICIeNCy in dairy cows has long been recognised as a problem prior to calving and in the early lactation period, says New Zealand animal health company Dom Health.

This season due to the drought, many cows are in lighter condition, and supplement feed supply is reduced going into the winter, the company says.

“To minimise stock losses, this year farmers need to be even more aware of the dramatic increase in magnesium requirements of their cows, and plan their strategy before cows begin to calve.

“Dusting pasture and providing magnesium in licks, supplement and water systems are excellent approaches, but the extreme cold weather and snowy, rainy conditions early this winter can make it difficult for cows to get the dose they need.”

Magnesium in the form of oxide, sulphate and chloride are not easily absorbed so it’s a good idea to monitor cows that may need some special attention. In addition, remember that magnesium deficient cows tend to reduce their food and water intake, so when we are reliant on minimum intakes on a given day, even the best supplementary magnesium strat-egies may not work as well this year.

To ensure the cows that need it get enough magne-sium, the only sure-safe way is to orally drench it, the company says. Two options are: either drench daily with magnesium oxide, or give one 100mL dose of one of its products, More-mag. A single dose of More-mag gives up to 10 days of magnesium in one shot as proven in independent trials, the company says.

“Strategic drenching can save cows lives. The whole herd can be drenched, or for the best bang for your buck, pick out ‘at risk’ cows in the herd. Choose heifers, older cows, cows that had a problem last year, and cows in lower condition score. Also keep an eye on the weather forecast, as cows due to calve in a cold snap, or very treacherous weather conditions, are also particularly susceptible to magnesium deficiency.”

Dom Health offers a ‘paddock pack’ – 4 x 5L plus bonus 2L in a backpack with a 60ml drench gun. The 2L + drench gun suit emergency use in a paddock.Tel. 09 274 7676 [email protected]

Look out for magnesium levels in cows

Cow fertility proves popular with farmersAT LeAST 300 dairy farmers turned out last month in the South Island to hear the results of LIC’s national herd fertil-ity study, described as a “big hit” by Greg McNeil, the co-op’s reproduction solutions manager. He is co-hosting the event with Cognosco, the research arm of Anexa Health Centre Ltd, and DairyNZ.

Soon it will be the turn of North Island farmers to hear it all.

“We had a great turn-out, with plenty of farmer interest so we’re look-ing forward to kicking off the North Island leg next month, to talk with more farmers about the oppor-tunity which exists for many from improving the reproductive performance of their herd.”

Events were held in Can-terbury, West Coast and Southland. The team now plans to visit Whangarei on June 10.

“As we did in the south, this is an open invitation to all to come along and join the discussion, learn more about what drives success-ful reproduction and what they could do to improve

their herd’s performance,” McNeil says.

Tom Brownlie, Cog-nosco scientist, says the presentation will provide farmers, local vets and consultants with the latest research into the repro-ductive performance of New Zealand dairy herds and local statistics.

“The comprehensive

study (funded by DairyNZ) was carried out over many farms and many years with herds across the coun-try and has provided fas-cinating insights of how successful reproduction is achieved on farms of all sizes.

“We’ll be presenting these findings in a practical way that will provide farm-

• 10 June: Whangarei, 11am-1pm, Jordan Valley Farm Conference Room.

• 17 June: Rongotea,11am-1pm, Te Kawau Memorial Recreation Centre; Paihiatua, 7-9pm, Bush Sports Complex.

• 18 June: Hawera, 2-4pm, WTARS Farm Seminar Room; Stratford, 6.30-8.30pm, TET Multi Sports Centre.

• 27 June: Awakeri, 10am-12noon, Awakeri Events Centre; Rotorua, 3-5pm, Alpin Motel and Conference Centre.

• 2 July: Cambridge, 10am-12noon, Prince Albert Tavern; Tokoroa, 2-4pm, Tokoroa Bowling Club.

• 3 July: Huntly, 10am-12noon, Twin Lakes Event Centre; Ngatea, 2-4pm, Ngatea Rugby Club.

ers with information they can take away and apply on their own farms, to help improve their herd’s repro-ductive performance and get more profit from the same sized herd.”

north island venues

Greg McNeil

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FeeD/ANIMAL heALTh // 35

ThIS ARTICLe addresses the question ‘Are higher input systems more or less risky than low input systems?’

The Oxford Dictionary defines risk as a situation involving exposure to danger or loss. Almost everything we do in life carries an element of risk. The risk associated with farming is generally a result of either, a. the cows producing less milk (we will call this production risk), b. the milk being worth little relative to the cost of production (we will call

this market risk), or, c. a combination of the two.a. Production risk

Because pasture comprises at least 85% of the total diet for most New Zealand dairy cows, fluctuations in the quality and quantity of pasture can have a large impact on milk production. It can also impact financial performance because:

■ In a pasture-based system many of the major costs such as land, plant and machinery and labour are fixed regardless of production level.

■ The availability and price of supplements bought on the spot market varies considerably, with the price being highest when pasture supply is lowest and the demand is high.Planning ahead and

strategically adding in low-cost supplementary feeds such as home-grown or contract-bought maize silage can significantly reduce production risk by providing a secure source of low-cost feed.

Hybrid maize, a deep-rooted C4 plant, is much more drought tolerant

and 2-3 times more water-efficient than ryegrass. Maize yields are more reliable than summer ryegrass yields and, providing it is well stacked and covered, maize silage can be stored for several seasons and fed when required.

b. Market riskWe are all too aware

that fluctuations in the payout can dramatically impact on farm income and profitability. Individual farmers can influence the price they receive for their milk, taking advantage of shoulder milk premiums and feeding (and/or breeding) for increased protein yield. However gains are small relative to the large fluctuations in milk price as a result of global market forces.

While many acknowledge that high input systems are more profitable in high payout years, it has been proposed they are less profitable when the payout drops. Data presented by Matthew Newman (senior economist, DairyNZ) at a recent Waikato high input farmer discussion group shows that in fact this is not the case. High input farms (system 4 and 5) were more profitable in the high payout years than the medium input (system 3) and low input farms (system 1 and 2), but had similar profitability in the low payout seasons.

Are higher input systems more or less risky?These high input

farmers have reduced both production and market risk by building profitable systems that carry a buffer of low-cost (often home-grown) feed. They are financially viable in low payout years, but also well poised to take advantage of the potential upside when the payout lifts.

In my experience the most successful high input farms have several things in common: they plan ahead, they grow and feed as much home-grown feed as they can, they control costs, especially expenditure on capital items that will not generate a return, and finally, they keep supplementary feed costs under control by growing their own maize silage (or contracting it on an annual basis) and they are careful how much they spend on high cost feed inputs, particularly in the low payout years. In my experience the most successful high input farms have several things in common:

■ They plan ahead ■ They grow and eat as

much home-grown feed as they can

■ They control costs, especially expenditure on capital items that will not generate a return

■ Finally, they keep supplementary feed costs under control by growing their own maize silage (or contracting it on an annual basis) and they are careful how much they spend on high cost feed inputs, particularly in the low payout years.

• Ian Williams is a Pioneer forage specialist. [email protected]

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While many acknowledge that high input systems are more profitable in high payout years, it has been proposed they are less profitable when the payout drops.

Figure 1: Operating

profit of high, medium and

low input Waikato/

BOP owner-operator

farms*

*Dairybase data presented

by Matthew Newman, senior

economist, DairyNZ.


36 // ANIMAL heALTh

Getting heifer calves off tohAvING TROUBLe with heifers not performing as you’d like when they come into the herd? Then it might be worth looking at how they’re reared as calves, judging by research soon to be published by Massey University.

Heifer calves given a branded additive in their milk grew 10% faster, with less meal, and two years later produced more milk

in their first lactation than replacements reared on a standard milk and meal regime.

Those findings, by Dr Jean Margerison and colleagues, will be published in the world’s highest-rated dairy publication, US Journal of Dairy Science, later this year following a feeding trial with three mobs of 19 calves in 2008, and subsequent evaluation of their milking performance in 2010/11.

All mobs were fed 4-litres/day of whole

milk, with ad-lib meal and straw, and given the probiotic X-Factor to 18 days. From then on there was a control mob on milk and meal, a mob given Queen of Calves with its milk, and a third mob given just the carbohydrate component of Queen of Calves in its milk.

The Queen of Calves mix increased growth rate and cut time to reaching the weaning weight of 90kg by eight days. This saved 9% in milk fed, and produced calves with

ANDReW [email protected]

significantly greater rib girth at 12 weeks. Daily hip width growth was 0.78 mm/day compared to 0.63 mm/day and they ate 16 %

less pellet feed.Two years later, in

their first lactation, they produced 28 kg MS/head more than the control mob, a 12 % increase.

Margerison told Dairy News the carbohydrate-only mob’s growth and weaning was “in between” the control

and the Queen of Calves mobs, but when it came to the first lactation, the Queen of Calves milk production advantage over carbohydrate-only

wasn’t sufficient to be statistically significant.

The carbohydrate which makes up three-quarters of Queen of Calves (see table) was used on its own in the third mob in the trial. “The selection of these plant carbohydrates is very important. They have to have a low amylose to amylo-pectin ratio as only the selection and combination of the correct ones works!”

The carbohydrate, as a non-fat energy source, improves the energy-to-protein ratio of the milk, helping the calf grow faster without the fat deposition associated with offering calves more whole milk. “The important thing is it’s lean growth,” stresses

Margerison.The problem with

feeding higher rates of milk to increase growth is two-fold, she adds.

Firstly, it makes for slower rumen development leading to a greater weaning check and slower growth rate post-weaning; secondly, it increases fat deposition in the udder of the calf which cuts production when the heifer comes into milk.

The extra amino acids in Queen of Calves – methionine, lysine and threonine among them – promote lean growth, while the pre-biotic and probiotic components help gut health and allow the calf to extract more energy from the milk itself.

Queen of Calves

“This will send a strong message to vets who will appreciate the science behind the process, and to farm consultants looking to maximise the on-farm production and profitability for their clients.”

– Stephen Bell-Booth

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ZEA0

600


ANIMAL heALTh // 37

Carbohydrate 156.4g

Protein 14.4g

Fat 1.6g

Fibre 5.8g

Energy 2964 kJ

Ash 6g

Sodium 146mg

Table 1: Content of Queen of Calves per 200g daily serve.

a flying start

Jean Margerison

AT PRESENT Bell-Booth is only recommend-ing Queen of Calves with liquid milk, not powders, but research is underway to see if similar gains can be made with bagged milk.

“The problem with milk powders is that they can be variable and some have not been formulated with growing dairy heifers in mind,” points out Margerison.

Consequently, fat, lactose and protein content varies between brands.

Bell-Booth is looking at formulations of Queen of Calves to go with powdered milk, and vice-versa, she says.

MILK POWDeR WORK

manufacturer Bell-Booth says the peer-review process and imminent publication of the research in the prestigious journal is “the ultimate confirmation” of the calf nutrition programme’s value.

“This will send a strong message to vets who will appreciate the science behind the process, and to farm consultants looking to maximise the on-farm production and profitability for their clients,” says chief executive Stephen Bell-

Booth.The programme,

including X-factor, typically costs $80/calf, while the 28 kgMS extra milk in the first lactation alone is worth $170/heifer, without taking into account the savings in calf feeding, or other advantages of better grown heifers entering the herd.

Margerison says the target should be heifers coming into the herd at 85-90% of their mature weight. “You only need to look at the LIC data

What’s in it?

to see most animals aren’t getting anywhere near that. It’s a major management issue.”

Small heifers struggle to compete for feed in the herd, are more likely to go lame, produce less milk as they still have to grow more, and often don’t get

back in calf. The problems are exacerbated on feed pads, she notes.

“If you can guarantee a well grown calf at the rearing phase you’re off to a good start because it’s in that first year that most heifers fall behind [growth-rate targets].”

C

M

Y

CM

MY

CY

CMY

K

Levucell SC_Grass_Advert_w210xh297_FIELDAYS_Curves_WithBleed.pdf 1 22/05/2013 3:36:30 p.m.


38 // SOUTh ISLAND DAIRy eveNT

Better believe these South Pole trekkers

Keeping our edge in global marketsWheRe WILL the dairy indus-try’s markets be in five years, and what changes will that mean for our dairy farmers?

These are questions Rabobank director of dairy research, New Zealand and Asia, Hayley Moyni-han will address at the South Island Dairy Event (SIDE) at Lincoln Uni-versity on June 24.

Her mid-term predictions from Rabobank will look at expected milk requirements over the next five to 10 years, and what role New Zealand has in that. She will outline current thinking on what the global market is expecting from the New

Zealand dairy industry, and what we will be able to provide in milk volume.

Other topics: how competi-tive we are as exporters now, what the future is likely to hold and how we hold on to our competi-tive advantage, looking in particu-lar at increased competition from European and US producers and exporters. These will be looked at in the context of the cost of produc-tion, and the future expected envi-ronmental requirements for dairy farmers.

And while that may seem far removed from day-to-day activi-

ties on-farm, our future depends on staying ahead of the competition, and making improvements cru-cial to that, hence thinking about the future.

“The reality is that competi-tion will get tougher. Standing still isn’t an option to keep up with or stay ahead of other milk-producing nations. We have natural competi-tive advantages, but the opposition isn’t standing back, and we have to be smart… to remain in the game.”

Dairy farming has evolved in New Zealand to where many easy gains in production growth have now been made. So forward

planning must take into account whether revolution rather than evolution is required on-farm to maintain productivity and prof-itability. It’s possible that more dramatic changes will be needed to investment and farm practice, and all this takes planning.

For farmers, getting market intelligence demands being well informed, and under-standing the wider context of trends. It means being prepared to meet pres-sures here and globally, and getting ready to be an early adapter.

WhAT DOeS dairy farming have in common with being the first New Zealander to reach the South Pole on foot – unsupported?

Plenty, believe it or not, says Jamie Fitzgerald who with Kevin Biggar starred in the television series First Crossings. The pair mounted a successful 52-day expedition to the South Pole in 2007, this after record 5000km row in the 2003 Trans-Atlantic rowing race. Jamie also founded The Big Walk, a 3000km campaign on the Te Araroa trail with The Foundation for Youth Development (FYD) to help New Zealand’s young people in 2009/10.

The adventurers are keynote speakers at the South Island Dairy Event (SIDE) on June 26 at Lincoln Univer-sity. The theme is ‘Take Action’, aimed at preparing farm-ers for the challenges ahead.

Attendees will learn what it means to take action and test boundaries, and will hear inspiring addresses about setting “outrageous goals”, overcoming extreme obsta-cles and “perceiving” to succeed.

Fitzgerald, a motivational speaker and leadership development consultant will also share his perspectives on strategy and the importance of preparation. “It doesn’t matter if it’s a business strategy or preparation for an expe-dition, the key is planning meet your objectives.

“A lot of research says that strategies fail to reach their potential because not everyone in the team understands the purpose, their role and how they contribute.

“Ask questions: do you understand what you are aiming for, how you get there, what role everyone plays in that, how they actually work together, how you measure prog-ress, and what you are learning? If not everyone in the team responds with similar answers, you won’t be rowing together and you won’t be getting the results you are after.”

Their expeditions had a big “sense of purpose”, but Fitzgerald believes ambition can just as easily be applied to any company or sharemilker. “We didn’t know what was around the corner, but we expected difficulties… and we knew we would have to slog it out against the challenges.”

Dairy farmers must also prepare for volatility in their markets and anticipate legislation that will throw up obsta-cles and challenges, requiring “setting a high performance culture to achieve objectives within available resources, using your knowledge, skills, experience and preparation.”

Programme and registration form: www.side.org.nz

Kevin Biggar

Jamie Fitzgerald

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SOUTh ISLAND DAIRy eveNT // 39

Feed conversion rate in today’s cowFARMeRS LOOKING for production efficien-cies and to lessen their environmental impact will appreciate Kevin Macdon-ald and Ina Pinxterhuis talking about ‘Gas guzzlers vs fuel efficient hybrids: feed conversion efficiency in today’s dairy cow’ at the South Island Dairy Event (SIDE) on June 25, at Lin-coln University.

The DairyNZ research-ers will outline the results and implications of a feed conversion efficiency study that followed the liveweight changes in

calves and measured the amount of feed eaten to calculate their feed con-version rate. Some animals ate less for the same live-weight gains, and others proved to be expensive feed guzzlers.

They then followed the progress of the animals rated highest and lowest for feed conversion, and took the same feed intake and liveweight measure-ments during their first lactation. Similar results were produced from this second trial, Macdonald says.

“It was clear there were animals with strong feed efficiency traits that farm-ers would prefer to breed from, and those that ide-

ally would be culled from the herd.”

Feed conversion effi-ciency is not something farmers can observe in their herds; it’s an inher-ent trait that needs to be measured then calculated into a selection value for it to be useful.

The aim of the study was to discover a genetic marker that would identify sires with feed efficiency traits, ultimately creat-ing a breeding value for it and include it in breed-ing worth. Feed conver-sion could then be added

to other existing national dairy breeding evaluations for New Zealand farmers to use in their sire selec-tion process, Macdonald says.

“Farmers have been following this study with interest and are looking forward to being able to use the breeding value, because of the impact it potentially has on improv-ing production and cost efficiencies. However it also offers farmers solu-tions for managing envi-ronmental impact for more nutrient efficient farms.”

Macdonald will be out-lining several implications during his SIDE presen-tation. It could mean the

same number of cows can feed better, or it could mean that farmers lower their stocking rate and reduce nitrate leaching.

“It’s actually under-standing that the most productive cows are not

necessarily the most effi-cient; those able to eat less to convert feed into milk are the ideal animals,” he said.

Programme and reg-istration form: www.side.org.nz Kevin Macdonald

“It was clear there were animals with strong feed efficiency traits that farmers would prefer to breed from.”

Keep up with the latest stories from by following us atGET SOCIAL WITH DAIRYNEWS

facebook.com/dairynews twitter.com/Dairy_News

A calf ready to feed at the trial in Hawera.


40 // SOUTh ISLAND DAIRy eveNT

Be part of the processIF yOU’Re part of the problem, you have to work out how to be part of the solution.

That’s the message dairy farmers will get from Dr Rick Pridmore, Dairy NZ strategy and investment leader for sustainability, at the South Island Dairy Event (SIDE) at Lincoln University on June 24.

Rather than dictate a solution, Pridmore will encourage farmers to look

at ways of working as a collective to have their say, to ensure their community is part of the process.

“No one needs to tell farmers how to farm, they already know that better than anyone. I hope to help farmers to understand better the world they operate in, so they are empowered with knowledge when it comes to contributing to discussions that affect their future.”

That includes understanding what expectations people have of dairying, what the industry approach to these issues is, and how farmers can engage with authorities in a meaningful way, Pridmore says.

“There are ways of taking action that benefit dairying and communities without compromising the environment. The optimum decision is one that takes into account the

environment, society and economics.”

Farmers may see themselves as only a small portion of the New Zealand population, and therefore haven’t considered how powerful the collective voice is when they join with other farmers and their wider community to get their point across. “They do have the power to change things; I want to help them to understand what to do

to build a community’s resolve, and harness the local spirit to make a difference.

“Equipping people with knowledge could mean helping people to know and talk the language – what is meant by nutrient management and water quality values, for instance.

“There are some good examples in New Zealand where communities have put their minds together and worked on a collective

solution. The Hurunui catchment is one such case, where the end solution to a water quality issue was a sophisticated community approach, not the easy solution that ignored the economic viewpoint.”

Pridmore is also keen to discuss the meaning of good management practice.

“It’s often said that good farm practice is a solution to any number of problems, yet there are dozens of interpretations of what that actually means.

“I’d like to look at how we define that, and what we actually do to be consistent across farming in New Zealand.”

Programme and registration form: www.side.org.nz

Lift profits while saving environmentNUTRIeNT LIMIT setting is likely to challenge New Zealand dairy farmers, but they have overcome big challenges in the past and will continue to do so.

DairyNZ principal scientist Dr David Chapman will outline research into solutions to nutrient limit setting in his South Island Dairy Event (SIDE) pre-sentation ‘Boosting the bottom line while holding the environmental footprint’ at Lincoln University on June 24.

While it’s not yet known what nutrient leaching limits will be allocated to specific land uses, Chap-man says farmers, particularly those in “environ-mental hotspot” areas, need to start thinking about their options.

Dairy farmers cannot introduce changes until we understand exactly what the process will mean, and how and when it will impact, Chapman says. But DairyNZ believes farmers will have several options that are sustainable and profitable.

“We’re looking at modifications to a bundle of farm practices that will give farmers the leeway they need to achieve efficiencies over a reasonable time-frame, while increasing productivity and profitabil-ity.”

For some, these may be involve strategic deci-sions that will take some time to implement, but being armed with information will help farmers to see the alternatives, and encourage them to start asking questions and plan.

“The research aims to give clear directions for farmers, whether the changes are big or small, and take the fear factor out of future regulatory changes for nitrogen leaching,” Chapman says.

Research by Chapman’s team includes looking at careful use of nitrogen fertiliser, and whether fertil-iser rates can be reduced while maintaining animal productivity. They are looking at the impact of cow genetic merit, particularly the high BW cow, and studying stocking rates; also whether production can be maintained and nitrogen leaching reduced with lower stocking rates using higher genetic merit cows with a higher per cow pasture intake.

Rick Pridmore

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MAChINeRy & PRODUCTS // 41

Grubby jobs no slur on family’s favourite tractor‘GRUBBy’ JOBS such as spreader towing have been assigned to the Jones family (Pohangina Valley near Ashhurst) Kubota tractor – a 1982-model M7500 (80hp) with four gears, high and low ranges and creep box.

But that’s no slur on the brand, says distributor CB Norwood. In fact, the Jones have a “continuing love affair” with Kubota, as shown by their new arrival – a Kubota M135GX, deliv-ered in April.

Matthew Jones, share-milking on parents Laurie

and Faye’s farm, points out that the M7500 was their first Kubota – “a good, basic reliable tractor, and easy to teach workers how to drive. With very little instruction they can be off.”

The MGX has three ranges of eight gears,

changed at the push of a button. Matthew likes the MGX range’s bigger cab because he often has pas-sengers. He also likes the cab layout, its height and overall comfort.

“You have better vis-ibility being up higher and without the centre pil-

lars. It’s also quieter than previous models and very manoeuvrable; that’s useful for putting hay bales in the shed. The cab monitor is clearly set out. It was easy to use, once I read the book; I set up the

displays to show what I wanted – like speed of the PTO and kph. It can also show the rate of fuel con-sumption.”

So far the main job Matthew has used the new M135GX for is drilling and it was easy for the tractor to handle.

Next season it is lined up to do ploughing, top-ping, rotary hoeing and cutting green grass.

“We chop a load of grass from the run-off across the road and cart it to the cows. They can get one or two loads a day depending on what’s on the platform,” he says.

The engines in the latest Kubota’s are common rail, and have exhaust gas recirculation and a diesel particulate filter that work together to reduce harmful emissions.

All of the Jones’ latest tractors have loaders with

self-levelling. “We have it on all the time and it’s useful for jobs like unload-ing pallets.”

The family also has a four-year-old Kubota MX125, which does the feeding out and carts bales when doing baleage. The new M135GX is approxi-mately the same length and weight, so when they decided to get another

it made sense to get the same type of tractor, but with the extra power and extra features.

Laurie and Matthew ordered the M135GX after seeing it in action at the Kubota Roadshow in Mas-terton. And having bought the tractor they went into a draw and won a new Kubota RTV900XT Camo utility vehicle.

Jones family: (from left) Matthew, Lucas, Faye and Laurie Jones with their new Kubota M135GX and RTV900XT Camo.

The Jones find Kubota tractors reliable.

“We chop a load of grass from the run-off across the road and cart it to the cows. They can get one or two loads a day depending on what’s on the platform.” – Matthew Jones

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AGCO WILL launch six new Valtra tractors at National Fieldays, expanding the brand’s popular A, N and T series.

With new tractors

ranging from 110hp to 215hp it will be one of the widest range of new Valtra tractor offerings at the Fieldays in some time.

The 171hp N163 will be

the star of the stand due to its power-to-cylinder ratio. Producing 163hp as standard and up to 171hp with power boost, from only four cylinders, the N163 will have the high-est HP of a four cylinder tractor in New Zealand. Yet it is nimble and com-fortable, the company says. And it has new soft-ware, transmission and new engine technology “to create a reliable and user-friendly machine that provides optimal perfor-mance in all conditions. Some features include the inclusion of headland GPS software which is sure to be of interest to contrac-tors.”

The 130hp N113 and 160hp N143 have also been released as part of the 3rd generation of the N series and the company says all models have been made more agile and suitable for loader work thanks to a redesigned front end of the chassis which provides a tighter turning angle for front tyres.

A lot of work has gone into the brand’s lower horsepower tractors too with the 101hp A93 being released for the first time in New Zealand. The A93

and A83 will be the first A series Valtra in New Zealand with the easy to use HiTech shuttle gearing.

AGCO’s Valtra product manager, Saviour Man-gion, says it will make using the tractor safe and easy. “The hydraulic hand brake, integrated with the shuttle lever, provides a much safer and more user-friendly experience.”

A hydraulic controlled multidisc clutched two-speed PTO will also be a standard feature on the A3 Series, says Mangion, as will a unique autotraction feature and automated 4WD system.

The company’s 6-cyl-inder higher-horsepower range has been expanded too, with a 170hp T163e and a 215hp T213. The interior has been over-hauled for long hours and it has improved torque and fuel saving capabili-ties.

Also available is the maker’s System 150, an autopilot based on satel-lite positioning technol-ogy capable of steering the tractor with great preci-sion to within a few cen-timeters.www.valtra.com.au

New Valtra models have been made more agile and suitable for loader work.

Six new Valtra models set for Fieldays release

The new Valtra N3 series.

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Smart way of herd recordingABOUT 100 dairy farm-ers now use the CRV Insight-Mobile herd recording mobile app, CRV Ambreed reports. It has been on the market 12 months.

Developed for use on smartphones and iPhones, it was the first herd recording app of its kind made available to dairy farmers, the com-pany says.

“We had anticipated early on that more farmers were starting to use smart-phones. That is why we developed CRV Insight-Mobile for the android and apple platforms,” says CRV Ambreed’s infor-mation product manager

Henk Huurnink.“It did not take long for

farmers to show interest [in]… being able to enter or view data in the field. It is making life easier.”

Huurnink is quoted as saying he has noticed a definite trend in farm-ers taking up use of the app. “Farmers tend to start with our CRV Insight-Web herd recording system before they use the mobile product. They want to familiarise themselves first with our web product before deciding to use the app. We’ve seen a really strong growth in users in the past few months.”

The app is an easy-to-use data entry tool allow-

ing farmers to enter events such as calvings, dry-offs, sales, culls, matings and treatments directly into their phone from the pad-dock or shed. Farmers can also view information such as animal ID, status, parentage, herd test infor-mation and performance graphs. All functions can be performed offline

with data then automat-ically synchronising to herd records in the cloud using the phone’s network or home wireless inter-net. Herd recording also becomes more accurate, as farmers are not required to re-enter data from note-book jottings increasing the risk of error.

CRV Insight-Web

was the first online herd recording system to be released last year, then Insight-Mobile. Their latest tool is PortaBULL, launched this year. It is the first AI app of its kind facilitating electronic entry of matings and quick and easy identification of short returns via mobile. www.crvinsight.co.nz

New Jag packs usual punchThe NeW Jaguar XF Sportbrake packs the marque’s usual punch, says its maker.

“The XF epitomises the Jaguar sporting dynamic with its combination of innovative, seductive design and per-formance. In the XF Sportbrake this is complemented by a no-compromise approach to practicality and versatility,” says Adrian Hallmark, global brand director at Jaguar Cars.

The XF Sportbrake builds on the extensive refresh received by the XF saloon for the 2012 model year, espe-cially a more assertive appearance in line with the flagship XJ model – including striking new lightblade headlamp technology.

The XF Sportbrake is new from the B-pillar backwards, endowing it with a different aesthetic, exemplified by “the tautly-drawn elegance of the side-window line and high-lighted by its polished finish. The conjunction of flowing rear window graphic, rising waist and estate roofline lends the XF Sportbrake a dynamic, broad-shouldered stance”.

Maximising practicality was a design aim, the maker says. The extended roofline affords rear-seat passengers an additional 48mm of headroom and the seats offer a 60:40 split fold function operable by remote-fold levers inside the load-space opening allow the seats to be stowed flat quickly and easily, creating a cargo volume of up to 1675L.

Befitting the XF Sportbrake’s balance between usabil-ity and beauty, it is powered exclusively by Jaguar diesel engines, driving the rear wheels via an eight-speed auto-matic gearbox. The 2.2-litre engine is fitted with Jaguar’s Intelligent Stop-Start system, making it the company’s most efficient powertrain to date, while the 202kW 3.0-litre twin-turbo V6 drives the range-topping Diesel S.

The XF Sportbrake will be launched here next month. Prices start at $95,000 for the 2.2D luxury derivative.

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Hard to walk away from luxury

I’ve JUST had the top spec Mitsubishi 2.2 Diesel Outlander VRX for a week and to be honest there are things I’m going to miss.

It is very easy to get accus-tomed to luxury.

The heated power adjustable leather seats, the electric tailgate, radar cruise and the automatic wipers are just a few of the creature comforts Mitsubishi Outlander VRX.

MARK MACFARLANeone misses when they are gone. The Outlander’s ele-vated driving position, coupled with the strong 112kW (and gutsy 366Nm of torque) and smooth six speed sports mode auto makes this a great vehi-cle for covering the kilo-metres.

This is a state of the art new engine, having a com-pression ratio of just 14.9:1. It means Mitsubishi can make a lighter, smoother power unit with excellent 5.8L/100km fuel economy.

Though almost the same externally as the old model, there is more room inside and it has good sound insulation.

The LS base models will fit five adults and other models have a third row; all are genuinely usable and the seats are easily folded down flat into the luggage area when not in use.

Mitsubishi has dropped the jet fighter front end of the old model in favour of a more rounded generic look but it looks good and smooth edges make it look less like just another people mover.

Inside the VRX models are faux wood trim with piano black and chrome finishes on the instrument panel which is dominated by a colour 7” display unit with a comprehensive range of settings and stats available.

This should be done while parked as there are so many options it will take time to get the set-up you want. My screen was set with half showing the sat nav and the other half with music options, though it can be set any way you wish. When reversing, the screen becomes a rear facing camera with guide lines for parking and audible warnings.

So, great looking, pow-erful and comfortable: what’s the catch? With a retail price of $56,990 plus on road costs, luxury doesn’t come cheap.

But that’s $5000 less than the less powerful top spec Toyota RAV4 diesel, so it does seem to repre-sent good value. Twist an arm at your local dealer and I’m sure “they will work something out”.

Euro boots are hereNORA ITALIA has been in the footwear business since 1896 but has only recently arrived on our shores.

Westlea Trading is importing the Nora Max gum-boot, a tough polyurethane boot with shock absorb-ing, anti-slip and chemical resistant features.

It is relatively lightweight but strong and has a thick treaded sole for comfort and grip. Westlea have got the Nora Max into a few Kiwi milking sheds already and the feedback has been positive. Special mention has been made of the comfort offered by the thick sole and the snug fit, which reduces rubbing and makes walking easier.

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IN hIS first year farming the 52ha at the Stratford demonstration farm in Taranaki, Lynden Mug-geridge struggled to achieve his calf target weights. But help was at hand, says RumenX distributor Agri-feeds.

“I wasn’t happy with their feed-ing product; I wanted a product that I didn’t have to spend time mixing up,” Muggeridge says.

So when he was introduced to RumenX and the logic of feeding milk once per day, he decided to give it a go. “In 2009 I had my first 45 Jersey calves on RumenX and haven’t looked back since.”

During the 26 years the Strat-ford demonstration farm has been

recording their Jersey calf weights, this year’s animals have exceeded target and Muggeridge attributes that to RumenX.

“Every year the calves have a target weight of 180kg at May 1 when they go out to grazing. This year, the calves left with 197kg aver-age weight – that’s 17kg more than target.”

Similarly Muggeridge reports his heifers overreached their target of 360kg and came in with an aver-age weight of 369kg. “These are happy, healthy animals that look good. They have thrived, even through the worst drought in years.”

Muggeridge breeds two pedi-

gree Friesian calves each year and feeds them RumenX. He says the calves have bodied out impres-sively.

Another benefit of RumenX Muggeridge enjoys is the fast rumen development. “The quicker a rumen is built up in a calf, the quicker it will build a good future. Early rumen development in calves means more grass is eaten, which, of course, equates to more milk production and healthy better per-forming animals.”

He now uses less milk and spends less time in the calf shed. “I have more time to do other jobs on the farm and there’s more milk in the vat,” he says.

More milk, better rumen

Right prescription for metabolic treatmentGeT The feeding management right in the transition to calving or risk animal health problems, says animal health com-pany AHD Ltd.

It says often these problems are asso-ciated with complex processes of the ani-mal’s metabolism. Common conditions include grass staggers due to low concen-trations of magnesium in the blood, milk fever when the concentration of calcium in the blood is too low and Ketosis when the cow is expending more energy than is being taken in.

Once a cow is down it may be difficult to determine which of the above condi-tions caused the initial problem, the com-pany says.

“Therefore, a good nutritional transition leading into calving is highly important. Preventing a metabolic disorder is always a better option than curing one.”

The AHD metabolic range includes Minject/Vetmin 4 in 1, Calject/Vetcal, Mag-sulph and Dextron, which are provided as pillow packs supported by Cal-jet and Calvet oral; this is administered orally to give extended protection to help prevent a relapse. Also included in the metabolic range is Acedex, a quickly absorbed energy supplement.

Calject or Vetcal is the correct product to use when the cow has clinical milk fever. Milk fever usually occurs in the 48 hours pre or post calving. Milk fever occurs when

the blood calcium levels drop below the normal blood calcium level of 8-10mg/100 millilitres.

Minject or Vetmin 4 in 1 is to be used when the cow has milk fever with compli-cations. This usually happens 24 hours or more after calving. The complications are caused by imbalances of minerals such as magnesium that are contained in Minject and Vetmin 4 in 1.

Cal- Jet or Calvet oral is an oral calcium or Minject/Vetmin 4 in 1. When used in this way it will increase the length of protec-tion from two to four hours up to 12- 24 hours.

The company says a better strategy is the preventative approach using one of the AHD energy drenches Rite –Start, Resolute, Cow Boost + Protexin and Over the Moon + Protexin which are used as preventatives for metabolic disorders. These energy drenches have a high content of soya bean oil along with calcium and magnesium; they are free flowing under any weather conditions and highly palatable.

Another oral application is the AHD Oral –Mag. “Often underrated or over-looked, Oral –Mag, which contains 25% magnesium pidolate, is easily metabolized. Oral –Mag remains in the body for up to 10 days and can be used in conjunction with other forms of magnesium supplements that offer a limited magnesium uptake.”www.ahdltd.co.nz

Lynden Muggeridge, Taranaki, says there’s less milk wastage and more milk in the vat with RumenX.

7184RN

A Mobile Mixer/Tanker built on a strong galvanized steel frame can carry and mix colostrum, milk powder or any other calf supplements that you want to feed out.

MT MIXER/TANKER

ORDER NOW ON - 0508 688 688

Mixer/Tanker built on aaaa

Mixer/Tanker built on alvanized steel frameand mix colostrum, milk any other calf supplements ant to feed out.

Mix/dispense 320 Litres Per Minute

With Easy Use Dispenser Gun

Mi /di 320Powerful Honda Petrol Motor

P f l H d Simple Click and Clean System

Si l Cli k d Calibrated Floating Level Indicator

C lib d Fl i

Models include:MT800 - 800L tankMT450 - 450L tank

ORDERS AND ENQUIRIES

0800 542 542 www.regiscoatings.co.nz

Cretex™ TR

TROWEL GRADE EPOXY FILLER

Cretex™ SL

SELF LEVELLING EPOXY RESIN

Epotread™ SL250 EPOXY SCREED FOR ERODED FLOORS

Non Toxic, Solvent Free High strength, Rapid cure Chemical Resistant Extremely hard in 6 hours

Non Toxic, Solvent Free Chemical Resistant Self smoothing, easy to spread Covers eroded & pitted floors

Incredible adhesion Rapid cure Chemical resistant Extremely hard in 6 hours

FLOOR REPAIRS MADE SIMPLE



MITSUBIShI WILL dis-play eleven versions of its Triton ute at Fieldays, all powered by the maker’s 2.5L 133kW intercooled turbo diesels (407-356Nm of torque).

Among them will be the manual transmission GL 2WD double cab well-side. Until 30 June, this is priced $11,000 lower than rrp – $29,990 (plus on-road costs). This tows a

3-tonne braked load. Among Mitsubi-

shi’s Fieldays special Tritons will be the leather-equipped GLS manual at $43,490 or $45,500 (auto), the manual GLX-R at $40,500, and the manual GL wellside ($36,500) and cab chassis ($35,000).

Mitsubishi’s latest ASX crossover vehicle raised its off-road capability by several notches in the 2014

range due late this month.

Also on the stand will be the new LS and Sport 4WD models com-bine uprated, Outlander-level 2.2L diesel power and torque with 6-speed auto transmission. Remarkable economy too, at 5.8L/100km, plus a maximum 5-star ANCAP safety rating.

Spec levels on the new models include auto

air, six-inch

touch screen audio system with inte-grated rear view image, Bluetooth, 6 speed auto-matic with sport mode, roof rails, alloys and full size spare wheel. The Sport model adds leather-faced seats, heated front seats, power-operated driver’s seat and super

Plug-in SUV on display at Fieldays

wide HID headlamps. RRPs are LS $41,990, Sport $45,990.

Also on site will be a regular, fully equipped five-seater family Out-lander, with 590-litre boot

space, 4WD and able to tow a 1.6 tonne braked trailer. Its 2-litre MIVEC petrol engine is the latest high-efficiency design, powering a 12kWh lithium ion underfloor battery that

powers two 60kW elec-tric motors – one driving each axle.

This pioneering Out-lander is the world’s first all-wheel-drive SUV plug-in hybrid (PHEV).

Outlander.

Eleven versions of Triton ute will be on display at the Fieldays this week.

www.dairynews.co.nzLATEST STORIES EVERY DAY

• Reduce water loss• Locate leaks with ease• Saves time and labour costs• Positive indication day and night• Easy to install• Stainless steel construction• Designed and manufactured in NZ

Auto Inline Liquid DispenserAuto Inline Liquid Dispenser

Suction Tube

Outlet

Inlet

Particle Filter

Control Valves

QuickReleaseCouplings

Check Valve

PressureRelease

High Visibility Flow Indication

(FlourescenceVisible)

Flow

Mast available in various lengths

No Flow

Water Flow IndicatorWater Flow Indicator

• Reduces labour costs• Easy to install• Operates using water flow• Any pressure from 10 – 210 PSI• Competitively priced• Made from high quality materials• Designed and manufactured in NZ

BenefitsIdeal for:• Animal health remedies• General water treatments• Wash system detergents• Horticultural chemicals • Water driven – no power required

• Non-contact indication – no seals to wear• Designed for minimal maintenance• Available in packs of 2, 3 & 5 unitsSeveral sizes and mast lengths available

Features:

• Zinc• Magnesium• Copper• Salt• Bloat oil• Minerals• Chemicals

Can Handle

Singh’s Engineering Services66-68 Mahana Rd, Hamilton, Ph/Fax 07-849 3108

www.setech.co.nz or your local dairy equipment dealer

Dispenses chemicals andminerals into a water supply

Benefits

Easy Adjustment

Three models available

SEE US AT FIELDAYS SITE H63

Visit the RX Plastics site D83 & D85 for more information.

www.rxplastics.co.nz

•Designed and developed specifically for dairy effluent wash down

•Tested to 7 Bar (700 kPa/100 PSI)

•Ergonomically designed to suit larger hands and wet grip conditions

•Bash guard end protection to resist impact from dropping and general use

•Quicker washdown processes, solids are moved quickly and efficiently

• Increased flow rate, which enables faster movement of solids

High Flow and Velocity

RX Washdown Nozzle

site C32

Tow and FertThe family is now complete!

Launching 2 new additional products to the Tow and Fert range - from the experts in fine particle

fertiliser mixing and application technology!

come visit us @

Multi 1200 - 3pt LinkageMulti 4000 - PTO drivenThe Tow and Fert range

now has 3 very specialist products that caters for

every farmer’s need! The best part about it, is you can now own your

own fine particle application equipment for

only $13,900 + GST!

Metalform (Dannevirke) Ltd : Ph: 06 374 7043 : www.towandfarm.com

: Introducing :

NOW FROMONLY $13,900 + GST

At PGG Wrightson, we’ll help you with the right range of products, competitive prices and expert advice.Talk to the team at PGG Wrightson about your calf rearing requirements today.

NRM Moozlee® Calf Feed 25 kgExtremely palatable and nutritious with highly digestible steam flaked grains. Formulated to give calves a head start. Contains Bovatec®.

NRM Ready Rumen® Calf Feed 25 kgA complete nutritious blend of high protein 20% pellets, barley straw and molasses for hassle free feeding. Contains Bovatec®.

ALLIANCE® Cobalt and Selenium 10 LOral drench for sheep and cattle containing Abamectin, Oxfendazole and Levamisole.

$679

Electrolyte Calf Oral 3.6 kgA fast acting, free flowing formulation of electrolyte salts easily dissolved in water.

Shoof Speedy Drencher 4 L

ShoofSpeedy Feeder Complete 2.5 L

Virukill Liquid 1 LVirukill is a user friendly heavy duty disinfectant ideal for calf rearing.

Also available in 5 L or 20 L.

Minject 4-in-1 500 ml PillowNormally $17.90 ea

$1590

NZAgbiz SupaCalf™ Calf Milk Replacer 20 kgPremium curding Calf Milk Replacer with essential vitamins and minerals. Contains Actigen® for gut health and Deccox™ to help prevent Coccidiosis.

NZAgbiz ancalf™ Calf Milk Replacer with Deccox 20 kgPremium curding Calf Milk Replacer with extra calcium for bone development, Actigen® for gut health and Deccox™ to help prevent Coccidiosis. Also available without Deccox.

NZAgbiz Denkavit Plus Calf Milk Replacer 20 kgPremium curding Calf Milk Replacer containing only essential vitamins and minerals with no extra additives.

NZAgbiz Brown Bag CMR™ Calf Milk Replacer 20 kg Made with quality nutritional milk powders and contains Actigen® to combat Salmonella and E Coli.

Agri-feeds RumenX® Calf Starter Rations 15 kgComes in ready to use pellets. Superior rumen development and early weaning.

ea

Terms and Conditions: Valid for any dates speci� ed or while stocks last. Prices include GST, unless stated otherwise and are subject to change. Some products may not be available in all stores but may be ordered on request. Prices do not include delivery, delivery costs are additional. Images are for illustrative purposes only.

Cydectin® Pour-On5.5 L Promo PackPour-on drench for cattle containing Moxidectin.

$620

CONVERGE® Cobalt and Selenium 10 LOral drench for sheep and cattle containing Abamectin and Levamisole.

$539BUY 1 x 4 L

SHOOF SPEEDY DRENCHER AND 2 x 2.5 L SHOOF

SPEEDY FEEDERSNormally $109.90

FOR ONLY $8250

Valid 1/6/2013 - 31/7/2013 in North Island stores.

Valid 1/7/2013 - 31/8/2013 in South Island stores.

Minject 4-in-1

BUY A BOX OF 15 MINJECT PILLOWS FOR $225 SAVE $43.50

Valid 1/6/2013 - 31/7/2013 in North Island stores.

Valid 1/7/2013 - 31/8/2013 in South Island stores.

Valid 1/6/2013 - 31/7/2013 in North Island stores. Valid 1/7/2013 - 31/8/2013 in South Island stores.

BUY A BOX OF 15

Dairy News 11 June 2013

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Transcript of Dairy News 11 June 2013