Young vets reluctant to perform inductions Page 7

keeP Pasture dry & safeSurface flooding solutionPage 42

calving in the rainWeather plays havoc Page 11July 26, 2011 issue 251 www.dairynews.co.nz

“Theo Spierings has an in-built respect for the cooperative structure.” – Henry van der Heyden Pages 3-4

taking the co-oP road

Dairy News // july 26, 2011 3

News .......................................................... 3-21

Opinion .................................................... 22-23

Agribusiness ...........................................24-25

Management ......................................... 26-30

Animal Health ......................................... 31-35

Calving .....................................................36-41

Machinery & Products ......................... 42-46

Fonterra eyes more farms in China.

Raw milk regulations review pleases co-op.

Page 5

Page 15

Averting the growing risk of mastitis. Page 35

news

Fonterra future as a co-op ‘secure’FONTerra’s FUTUre as a farmer-owned cooperative is secure with the appointment of Theo Spierings as its chief ex-ecutive, says commentator Alan Robb.

The Fonterra board’s deci-sion to choose a champion of the cooperative model recognises farmers’ desire for total control and ownership.

According to Robb, the choice of the Dutch dairy executive, aged 46, will increase awareness of the advantages of Fonterra re-maining a co-op.

The board and management erred when they pushed for a partial float of the co-op, a move soundly rejected by farmer shareholders, he says.

“It would be good to think the board had recognised a major mistake had been made trying to partially float Fonterra,” he told Dairy News. “Those executives who argued for the float should now be looking elsewhere for a career change.”

Robb predicts Fonterra, under Spierings’ leadership, will look

to work closely with other dairy co-ops around the world, “rather than forming alliances with in-vestor-owned companies.”

New Zealand Cooperatives Association chairman Chris Knowles agrees Spierings’ knowledge of co-ops will help Fonterra.

Knowles says Spierings will “clearly understand the tensions of farmer ownership and member funding”. And he expects Fonter-ra to remain a co-op despite its restricted ability to raise capital for growth.

“We’re aware the coopera-tive’s existing capital structure has limitations arising, in part, from the annual rise and fall in member shareholdings.

“While we’re not privy to the current detailed thinking of the management team, we assume this problem continues to need to be addressed and that Theo Spierings is well able to do so. He will doubtless want to make his own mark on the cooperative.”

Knowles says Fonterra farm-ers are fortunate to have someone

of his calibre to lead their co-op.Fonterra chairman Henry van

der Heyden says the appointment was done by the board without any input from shareholders.

“Appointing the chief ex-ecutive is a key decision of the board and we don’t take sound-ings from anyone,’ he told Dairy News.

Farmers have welcomed Spierings’ appointment.

Federated Farmers dairy chairman Willy Leferink says it’s a great choice. “Theo Spier-

ings understands the psyche and drivers of farmers and the advan-tages of the cooperative owner-ship model.”

Fonterra Shareholders Coun-cil chairman Simon Couper be-lieves the appointment of the right person is a vital step for the cooperative, and that Spierings’ vast experience at the helm of a dairy cooperative should ensure “he comes to grips quickly with the unique model and values that have been instrumental in driving us forward over the past decade.”

FONTerra CHairMaN Henry van der Heyden says New Zealand business is ask-ing why a local wasn’t appointed to lead the co-op.

Van der Heyden says the appointment of Dutchman Theo Spierings is not a reflection on the calibre of candidates inside and out-side Fonterra. The short list included both.

The board’s main criterion was to pick

the best person globally, irrespective of na-tionality, says van der Heyden.

“I would love to see a New Zealander at the helm of the country’s largest company one day,” he told Dairy News. “It was not meant to be this time; maybe next time, only time will tell.”

Van der Heyden, a key man in the ap-pointment of all three chief executives at

Fonterra since its inception in 2001, says the calibre of candidates is improving.

Fonterra at first hired a global recruit-ment firm to search for potential candi-dates. About 30 names were screened be-fore the possibles were approached.

Van der Heyden says there was a lot of interest from external and internal candidates.

‘Local CeO next time... maybe’

Theo Spierings

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news

FONTerra CHair-MaN Henry van der Hey-den says incoming chief executive Theo Spierings respects the cooperative structure.

“He is well recog-

nised by his peers for his people leadership, deliv-ery of results and strong strategic skills,” says van der Heyden.

Spierings brings 25 years knowledge of the

global dairy industry including managing dairy businesses in Asia, Latin America, Africa, the Middle East and Europe.

“Most importantly, Spierings has an in-built

respect for the coop-erative structure and for farmers and their com-mitment to cooperative principles.”

Spierings says the new role is a great opportuni-ty to work in the industry he loved: “I’m honoured to be invited to lead Fonterra into its second decade.”

He notes the Fonterra board, outgoing chief executive Andrew Ferrier and his team have estab-lished a strong founda-tion. Now the challenge is to build an even more successful global dairy cooperative, he says.

“A huge amount has been achieved in the past 10 years since Fonterra was established. Trading Among Farmers – the newly approved capital structure – is a good example

“But what makes Fonterra unique is its combination of low-cost pasture-based farm-ing and its status as the world’s largest milk processor.”

With the coopera-

tive already performing strongly, Spierings’ challenge is to add an-other layer of value to the business.

“I’m used to working for farmers and I know they demand results. Being entrepreneurs themselves, they expect continuously improved performance of their co-operative and through-out the value chain.

”I’m acutely aware of Fonterra’s importance to the New Zealand econ-omy and look forward to leading an organisa-tion with the potential for positive impact in its home country.

“I thrive on the prospect of contributing to Fonterra’s continued success, which I know is of great importance to its farmers and employ-ees, and to every New Zealander.”

Spierings is a Bachelor of Arts in food tech-nology/biotechnology and Master of Business Administration. He is married and has three children.

‘New CEO respects Fonterra structure’

FONTerra CHieF executive Andrew Ferrier will hand over to Theo Spierings on September 26.

One of Ferrier’s final tasks will be announcing the 2010-11 financial results, a record year for the co-op.

“In September all members of the cooperative and all staff will want to say a big thank you to Andrew Ferrier for the great job he has done dur-ing the past eight years,” says chairman Henry van der Heyden. “After that we will reach out to wel-come Theo Spierings.”

Handing over

sPieriNGs Has ten years experience at senior execu-tive level in Royal Friesland Foods/FrieslandCampina.

In 2004 he was elected to the board of management of Royal Friesland Foods with full responsibility for Friesland International, with businesses in Asia, Af-rica, Latin America and the Middle East.

In 2006 he led the development of ‘Vision 2015’, a 10-year corporate strategy for Royal Friesland Foods, covering the company’s entire business – branded con-sumer products, cheese and ingredients.

Early in 2007, with revenues at least $8.2 billion, he became acting chief executive of Royal Friesland Foods to lead the company through a merger with Campina, when Luc Dalhaus became ill. Having chaired FrieslandCampina’s merger team, in 2009 Spierings left the company as previously agreed by the parties to the merger that they would appoint an inde-pendent chief executive to head the newly formed en-tity. Spierings now owns and runs a company engaged in corporate strategy, and mergers and acquisitions, in fast-moving consumer goods.

Global experience

Henry van der Heyden

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news

Co-op eyes more farms in ChinaPeter Burke

FONTerra is build-ing a third dairy farm in China as part of a strategy to create a hub of farms at a site near the capital Bejing.

The new farm in Yutian County, Hebei Province, is near Fon-terra’s other two farms in the same area.

The 40 ha, free-stall farm will cost about $70 million and will produce 28 m L of milk annually. It will support the co-op’s strategy of sustain-ably supplying fresh milk, and is expected to raise Fonterra’s overall annual fresh milk pro-duction in China to about 90 m L.

The farm will house 3200 cows indoors start-ing in November 2012.

Fonterra’s chief oper-ating officer for interna-tional farming ventures, Peter Moore, told Dairy News from Shanghai the co-op is aiming for a hub of five farms not more than 150km apart.

“It gives you some scale you can work to. You can probably reduce operating costs and it also means you’re work-ing with one rather than multiple local govern-ments,” he says.

Moore, in China for meetings with staff and other Fonterra executives, says a lot was learned from the original pilot dairy farm set up in 2007 in Hangu. Its success prompted Fonterra about

one year ago to sign to build another farm due to start this November.

“Based on the pilot farm we learned a lot of valuable lessons,” Moore says. “The second farm was a significant improvement on the first one. We made lots of changes in the technol-ogy and layout, and the

third farm will almost be a blueprint of that one with one or two minor refinements.”

Moore says improve-ments in the new farm will include better cow flow from the free stalls to the milking parlor. Ex-tra land has been leased to give more room to manage waste water.

“Because we’re milk-ing cows three times a day we’ll have a different type of milking parlor. It’ll be more of a US design parlor, although a New Zealand company will be installing it.

“One of the biggest improvements relates to cow comfort where a special type of sand makes it more comfort-able for the cows. We’ll also be reducing walking distances from shed to parlor, which may sound strange for an indoor farm but reducing the

distance cows have to walk is important.”

Moore says the design resembles high-perfor-mance farms seen in the US or Europe. The advantage of developing a model type farm is the cost savings.

“We’re building to high Fonterra stan-dards… to ensure… the very best possible

farming operation. The farm will be managed and audited to Fonterra’s standards of excellence for milk production and will train and employ about 100 local staff.”

Construction of the second farm at Yutian is on track, Moore says. Some of the cows are there and milking should begin in November, about when building will start on the latest farm.

Fonterra ventures are strongly supported by lo-cal county and provincial officials pleased to have its investment in their region.

At the signing cer-emony for the new farm the mayor of Yutian County said Fonterra’s two farms there are help-ing build the county’s reputation as a key national agriculture dem-onstration zone.

“We welcome the investment in the area

and will support them in any way we can to ensure they have the right environment for their operations,” he said.

Moore says Fonterra plans to develop more farms in China as ‘be-hind border’ operations to complement dairy exports to that country. An appointment has been made to a new post of

overall manager of Fon-terra’s dairying farming operations in China. The appointee is an expatriate New Zealander experi-enced in managing large scale farming.

Meanwhile Philip

Turner, president of Fonterra China, says the demand for milk there is expected to triple during the next ten years, chiefly for liquid and fresh milk

products. “Our future in China is underpinned by our ability to grow high-quality local milk pro-duction for our customers and by playing a strong

role in the development of the local dairy indus-try,” he says.

China is New Zea-land’s single biggest market for dairy exports.

Fonterra’s dairy farm in Hebei Province.

“We’re building to high Fonterra standards… to ensure… the very best possible farming operation.”

Peter Moore

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Young vets reject inductionsPeter Burke

sOMe yOUNG vets are refusing to induce cows.

Dairy News has learned some so oppose the practice that they are telling farmers who want inductions to take their business elsewhere.

One vet described this as a ‘Gen Y’ issue, with young vets unhappy with the ethics of the practice.

But it’s not confined to young vets. Older vets are also known to be re-luctant to induce because they oppose the idea of abortions and in some cases do it only because it is still legal. Inductions as a ‘management tool’ on farm are past their use-by date, the vets say.

The comments coin-cide with DairyNZ, vets, dairy companies and farmers saying they are on track to reduce the number of inductions this season as part of a plan to phase out the practice.

The industry has a tar-get of no more than 8% of cows in any one herd being induced. DairyNZ says it is doing all it can to assist farmers and vets to meet this target.

The practice is seen to tarnish the image of dairy farming. Politi-cians say it may turn consumers away from our products here and overseas because animal welfare issues are high on consumers’ agenda.

DairyNZ says feed-back shows dairy farmers are working towards meeting the target. It says farmers and vets are positive about DairyNZ website content about induction.

Strict rules now gov-ern inductions. Farmers must contact their vet at least 60 days before they want to induce, and cows must be tested to ensure they are at the correct stage of pregnancy.

Condition score must be no less than 4.5,

ideally 5.0. Only cows 3-8 years of age may be induced. Overall health guidelines are stringent.

New Zealand Veteri-nary Association spokes-man Wayne Ricketts says they first planned to reduce the number of inductions to 2% by 2010. This did not work out and

a new industry group set new targets. The target last year was 14%, this year 8% and next year 4%.

He points out cows have been induced for about 34 years, and now about 30% of New Zealand dairy farms use inductions as a ‘manage-

ment tool’ to get cows to produce milk earlier than normal.

Rickets says while calving is not yet in full swing, anecdotal evi-dence suggests to him the 8% target is likely to be met, though a few farm-ers may find the target hard to meet.

Young vets are reportedly unhappy inducing cows.

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Dairy News // july 26, 20118

the key commodities (see table). But commentators say Fonterra’s forecast of $6.75/kgMS for 2011-12 isn’t in danger – yet.

“Our view is there’s no immediate implication for the payout forecast but if the trends continue [there might be],” BNZ senior economist Craig Ebert told Dairy News.

“It’s more likely to be an issue for the following season than this one, given Fonterra hedges its foreign exchange... They may well have taken cover 6-12 months ago, or even longer,” he adds.

Converted to New Zealand dollars at spot exchange rates, last week’s Global Dairy Trade all-products weighted average of $US3796 was the lowest since August last year when prices dipped to levels not seen since October 2009 (see table above).

In October 2009 Global Dairy Trade’s weighted average was on the rise at $US3022/t, the equivalent of $NZ4139/t at the spot exchange rate. Fonterra was forecasting a milk price of $5.10/kgMS at the time, up from its opening $4.55/kgMS forecast for the 2009-10 season.

Fonterra chairman Henry van der Heyden last week told Dairy News Fonterra is “not quite” at the point of calling a board review of this season’s forecast in light of the currency and market multiplier effect.

“If prices continue to fall, there will come a

time when we will review the forecast payout but no decision has been made on that yet.

“Although the season has ended our financial year ends on July 31 so let’s finish that before we relook at the forecast payout for this season.”

Van der Heyden blames increased US and EU supply for the easing market. Demand is still robust but the situation is finely balanced.

Rabobank senior dairy analyst Hayley Moynihan says last week’s fall was in line with expectation.

“At these slightly

lower prices we’re starting to see buyers re-enter the market who were driven out at the higher values.”

But having bought aggressively early in the year, China is “not so active now” and probably won’t be until the fourth quarter of the year, she predicts.

“Their import pattern tends to follow the New Zealand production season.”

Following the high-growth autumn – a factor in markets easing – and the so-far mild winter, markets are expecting strong milk flow from New Zealand in the spring.

US and EU supply is also up but higher grain prices are slowing US supply growth and EU production has passed its seasonal peak.

“The market’s just not quite as tight as it was,” Moynihan says.• Dairy America joins Global Dairy Trade: See page 9.

news

The highs and lows of GDT in $NZ

Date gDT result (US$)

gDT NZ$ equivalent*

2/7/08 4395 $5803

1/7/09 1829 $2833

1/12/9 3669 $5124

2/3/10 3259 $4658

1/6/10 3880 $5696

3/8/10 3080 $4200

1/9/10 3562 $5090

16/11/10 3522 $4560

1/3/11 4826 $6406

19/7/11 3796 $4492

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Dairy News // july 26, 2011 9

news

GDT ropes in US processorandreW sWalloW

aN aMeriCaN dairy marketing giant is joining Fonterra’s online auction, GlobalDairyTrade.

DairyAmerica (DA) is the US’s largest sup-plier of non-fat dry milk, skimmed milk powder (SMP), whole milk powder and buttermilk powder, marketing all of these products produced by its four member coop-eratives.

It says a “significant” proportion of its export business will be through GDT from October, rath-er than distributor and reseller arrangements.

The announcement “marks a ‘coming of age’ for DA’s export busi-ness, and is a recogni-tion that exports are an increasingly important growth opportunity for our member companies, which represent approxi-mately 45% of all non-fat dry milk and skim milk powder produced in the USA,” says DA chief executive Rich Lewis.

Market rules under which all parties will participate on GDT were published last week as a result of consultation with industry participants and interested stakehold-ers that began in early March.

“These rules lay the foundation for other new sellers to join GDT and we expect this will happen over the next year,” says GDT general manager Paul Grave.

GDT began in July 2008 as a monthly, single-seller auction for whole milk powder. It has grown to offer seven

product categories twice monthly, currently selling about 650,000t/year with 350 registered bidders across 67 countries.

Grave says the addi-tion of the single-largest American provider of milk powder will trans-form Global Dairy Trade into a multi-seller, multi-product, platform trusted by buyers and sellers to efficiently and transpar-ently discover a fair, market-clearing price.

“For Fonterra it adds an extra level of credibil-ity to the GDT platform so it’s not just Fonterra using it and it’s a truly global marketplace.”

SMP product will be DairyAmerica’s first offering; other products will be added over time. Grave says the volume to be offered hasn’t been announced, but given DA’s total exports aver-age 176,000t/year, it isn’t going to double GDT volume.

“I expect they will start small and build the volume up. Fonterra was only offering 170,000t/year at the start.”

Lewis says GDT’s platform provides DA with “the opportunity to establish our export busi-ness independently and have access to worldwide bidding demand on our first day of business.”

“We are confident [this] announcement is good for our customers and members. We have watched GDT buyer par-ticipation grow. We have increasingly understood the independence of the GDT trading manager, and we have participated in developing the market rules.”

“For Fonterra it adds an extra level of credibility to the GDT platform so it’s not just Fonterra using it and it’s a truly global marketplace.”

DA was established in 1995 as a federated marketing company and currently represents four major US producer-

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Dairy News // july 26, 2011 11

news

aarON was born on a dairy farm in Taranaki and after gain-ing a degree in applied science from Massey University began his career in the dairy industry.

Kate, from Taupo, met Aaron at Massey University where she obtained a degree in marketing and sport management. She was

the marketing executive for the Taranaki Rugby Union before the demands of a young family put an end to that. She had never set foot on a dairy farm until she met Aaron. She would like to return to event management, which she enjoys.

Knowledge and strategic deci-

sion making is a key to their suc-cess. They aim to own a farm and are working out how they will do this.

Their win in the New Zealand Dairy Awards contest has made them many contacts they see as likely to help them achieve their objective.

Ownership within reach

Rain fails to dampen calvingPeter Burke

FOr aarON and Kate Murdoch, farming north of Patea, South Taranaki, the rain and thunder-storms of a week or so ago were unwelcome, but could have been worse. They got about 150 mm; farmers in the north of the region got nearly double that.

Murdochs, the Ta-ranaki Sharemilkers of the Year, are in a 50:50 contract, running 320 Friesian-cross cows on their farm from which, on an exceptionally fine day, they can see Mt Taranaki.

The rain came as short, squally, heavy showers, sometimes with thunder and lightning.

The good news, says Aaron, was that calv-ing had not then started, though as soon as the storm abated and sun came out, so did the first calves

“It’s probably good it happened now rather than in two weeks when we’re really into calv-ing. You’ve got to expect the weather to be like that. It’s winter. But then we do get fine days so you’ve got to take the good with the bad.”

Kate says the problem was the unpredictability of the weather.

“You’d start off and it would be fine and then

the wind would start gusting and then the thunder and lightning and then the torrential rain.

“It was a bit demoral-ising trying to get the set-up for calving finished and doing those last bits and pieces.

“The storm put a spanner in the works and stopped us doing some of the jobs we wanted to get done.”

For Aaron one such job was fixing the con-crete race, supposed to have been done 10 days before, “but the weather put paid to that” in a season he describes as “weird”.

“The weather of the past week or so gave us a false sense of security. When you first walked out the door the weather wasn’t too bad but by the time you’d milked the cows and were getting ready to shift them, the rain and thunder would start.”

While the rain has disrupted his plans to get everything ready for calving, overall the sea-son has been great. His pasture covers are about

2500kgDM/ha– up 200 on last year.

The grass hasn’t stopped growing, he says.

“It’s been awesome. Autumn was probably the

best growing time we’ve had and it saved us in respect of our production. We grew a lot of grass and we probably didn’t have the cow numbers to

take full advantage of it.”Kate says the extra

grass has precluded the use of precious supple-ments.

They have also con-served these for later in the season by keeping their heifers off farm for an extra couple of months. This was cheaper than buying in hay.

Aaron says he was once told by a “knowl-edgeable farmer” that in a season in which you don’t make much

silage or hay you prob-ably won’t need it come winter. True so far, Aaron says.

Murdoch’s have done a lot to lift production on the farm.

In their first year they took production from 96,000kgMS to 116,000kgMS.

Last season it slipped slightly as they adjusted their calving time, but they hope to increase production again this season.

Kate Murdoch and Flynn tend to calves.

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Dairy News // july 26, 201112

news

Heavy rain in many parts of the country left paddocks flooded.

Storms make life difficult on farmsPeter Burke

HeaVy raiN and storms recently lashing many regions took some of the glint off what was shaping up as an exceptional season. Although not causing a crisis, the rain dumps and storms hampered farmers’ calving preparations or onset.

In Southland the snow, hail, wind and rain made conditions un-pleasant for farmers preparing for August 1 calving.

DairyNZ consulting officer for Eastern Southland, Nathan Nel-son, says ten days of bad weather required farmers to ensure their cows were getting sufficient feed to counter the cold.

“The snow lasted for two-three days around Invercargill, but in the more elevated parts of the region the snow stayed around.

“Farmers would typically expect to get this sort of weather in winter, but for a shorter period. But by and large it has not had a major impact.”

Nelson says a particular problem was the ‘chill fac-tor’ – very high some of the time due to rainfall with wind and low tem-peratures. Farm-ers watched stock closely, in some cases increasing feed allowances up to 2kgDM/cow/day to cover the higher energy de-mands.

But overall the autumn and the feed situation had been good. “Farmers have planted crops and have supplements available to feed stock adequately.”

Waikato has endured extremely wet with a lot of water in low-lying areas, says DNZ regional team

leader Duncan Smeaton. “For some areas in the Hauraki

Plains this is now their third, fourth or fifth event of low lying water and it has damaged pasture in some iso-lated spots…. The soil has become very, very wet so pastures are quite prone to pugging damage.”

Farmers have managed their

way through this latest spell of wet weather by standing off cows either on concrete pads or dairy shed yards, Smeaton says. Gener-ally they’ve been able to minimise damage but their pasture utilisation

hasn’t been good.“On the posi-

tive side, pasture growth rates have been good all win-ter: in the order of 30-40kgDM/day, actually greater than what the ani-mals require per ha per day.”

Calving has be-gun in some parts of the Waikato; recent storm calf

losses would have been higher than normal, but not significantly affect-ing the calving rate for the whole season, Smeaton says.

“The guys who have prepared for this sort of event, thought about how to respond and taken action in time have come through reasonably well. It’s the people who don’t react in time – who turn up to their pad-docks in the morning… and find

their cows in a sea of mud – who are in trouble. These are the ones likely to lose animals.”

The hard work of getting cows to stand-off areas involves extra time but this is the way it has to be managed, Smeaton says. Farm-ers on volcanic ash soils can graze their paddocks because of the free

draining nature of the soils, where-as those on heavier soils are still having to stand cows off.

Torrential rain in Manawatu made it very difficult for dairy farmers, especially those in the lower catchment of the Manawatu River. Huge volumes of water in the Manawatu River forced Hori-zons Regional Council to open the Motua floodgates and allow the ex-cess water through a huge floodway normally grazed by dairy cows.

Farmers were warned to move their stock but one week later there is still water in the floodway.

Federated Farmers Manawatu dairy section chair Robert Ervine was caught up in the floods. About 150mm of rain fell over five days and a third of his farm near the Manawatu River was under water, he says. He and other farmers had to move stock to higher ground and to stand-offs to minimise damage to pasture.

The heavy rain has affected grass growth and some pastures are damaged because of pugging. Ervine says he was lucky he wasn’t calving otherwise it would be a ma-jor problem.

“On the positive side, pasture growth rates have been good all winter: in the order of 30-40kgDM/day, actually greater than what the animals require per ha per day.”

– Duncan Smeaton

Duncan Smeaton

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Dairy News // july 26, 2011 13

news

Richard Reynolds

Paddocks too wet to grazeTHe wesT Coast was another area hit recently by heavy rain, adding to a longstanding problem, says Federated Farmers West Coast dairy chair-man Richard Reynolds.

Reynolds, running 360 cows at Barrytown, north of Greymouth, says the region has lacked sunshine since May.

“We had quite a wet May, then a wet June, and July has been wet as well. It’s the length of cloudy or rain days that we’ve had that is probably more of an issue for us than the past week’s stormy weather.”

The problem for Reyn-olds and other farmers on the Coast has been the rain preventing ‘fine weather work’ in prepa-ration for August calving. It’s also limited their ability to graze paddocks

sodden by the rain. The situation is alright

at the moment, he says, because a lot of people still have stock away grazing or on crops. But pugging is now starting to be a problem and cows are being held on stand-off pads, “some spending 22 hours a day on them”.

“Although with the help of supplements, cows can get their re-quirements in two hours, it’s essential farmers have good, well maintained stand-offs so cows can lie down on them. That’s probably where the pres-sure is coming right now, more perhaps than on the paddocks. Standoffs must be up to standard.”

Reynolds is using palm kernel, baleage and autumn saved grass to keep his herd going until calving.

“We’re just trying to plan our grazing around the soil conditions so when we get a chance we are getting in there and grazing our wetter coun-try as quickly as we can, then holding our cows on our drier country,” he says. Surprisingly cow condition is pretty good,

although some animals are not as good as their owners would like.

The West Coast is noted for its high rainfall, but Reynolds concedes this is already a very wet winter by Coast standards. And while the latest dump of rain has caused its share of prob-

lems, he says they are not in crisis mode.

“Most of us have a few tricks up our sleeves on wet weather manage-ment. But if it carried on for another month without some drying weather it could get a bit more interesting. But then that’s the coast.”

in brief

water concernsTHE FERTIlISER industry forsees a challenge in New Zealand grappling with achieving agricul-tural economic growth while managing fresh wa-ter resources.

Fert Research technical director Philip Mlade-nov says this “isn’t surprising given the diversity of interests involved in managing fresh water, and the urgency with which we must address is-sues about allocation and quality.”

In Fertiliser Matters july issue, he says find-ing mutually acceptable answers is imperative given “agriculture is the driving force of the New Zealand economy, and there will be 2 billion more mouths to feed on the planet by 2050.”

“If agriculture is to continue to contribute to the country’s economic growth, and to meeting the world demand for more food, as a country we need to be more efficient in the way we use wa-ter, and substantially increase our uptake of ex-isting and new technologies to improve nutrient use efficiency on farms.”

He sees the Government’s national policy statement for managing fresh water as a “practi-cal and necessary” first “high level” step, and one which needs to be followed up with measures giving regional councils the technical tools.

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Dairy News // july 26, 201114

news

andreW sWalloW

a sUrGe in dairy farm sales in the far south has helped continue the recovery in rural real estate, at least in terms of turnover, if not in value, during the normally quiet winter period.

“There’s still a bit more activity in Otago and Southland,” Real Estate Institute of New Zealand rural spokesman Brian Peacocke told Dairy News.

“Though a lot is dairy support; and the [dairy] sea-son starts that bit later down there.”

Southland accounted for 16 of 58 dairy farms sold in the three months to June nationwide, only a slight decrease on Mar-May’s 60 sales, and comfortably up on last June’s three-month figure of 31 sales.

In 2009 the three-month total to June was 55 dairy farms sold.

With 30 grazing, 11 finishing and three “special” properties also completing in Southland during the three months to the end of June this year, the region’s tally topped the total farm turnover table, Canterbury coasting in second on 57 sales, and Otago third with 48.

The southern weighting of dairy farm turnover is a factor in the median price per hectare for dairy farms dipping to $30,828/ha compared with $32,609/ha for the corresponding three month period a year previ-ously, says Peacocke.

“Buyers are still attracted by Southland’s prices per hectare being lower than the rest of the country.”

That is balanced by the colder climate and possible difficulties of finding staff in the far south, he adds.

Recent interest in the south has been coming “more from the investment side” with AgInvest subsidiary MyFarm and New Zealand Superannuation fund’s Farm Right subsidiary “adding momentum” to the market.

Nationwide the 13 dairy farms that sold in June av-eraged just $24,081/ha but with an average of $35kgMS produced, it suggests there were one or two large, low output per hectare properties in there. Average size of those 13 farms was 192ha, ranging from a 27ha one in Waikato to a 541ha property on the West Coast.

Peacocke says there’s a “noticeable increase in en-quiry” for the spring, and an increase in the number of appraisals being done for sellers.

“The overall increase in activity by buyers and sell-ers is being matched by a reinvigoration of interest in rural lending in the banking sector.”

Improved cashflow in most sectors and a positive payout forecast are also adding to confidence.

Otago saw the strongest increase in overall farm sales between May and June, followed by Canterbury and Manawatu/Wanganui. Two regions recorded a fall in sales volume between May and June, although these falls were minor.

In the year to June 30 a total of 960 farms sold, a whisker up on the 931 recorded for the year ended June 2010.

Peacocke says the increase in sales in the three months to June continues a turnaround that started in April.

South farm sales rise

wrC eyes better water qualityClOSE COllABORATION between all stakehold-ers will be the key to successfully addressing land and water quality issues, says Waikato Re-gional Council’s land and water quality subcom-mittee chairman Norm Barker.

Barker says declining water quality in water-ways is a major issue for the council and other stakeholders including iwi, farmers, the agricul-ture industry and local councils.

“How we best address this issue is one of our most important challenges in the years ahead and it’s crucial we all work together collabora-tively to get the best outcome for our region,” says Barker.

He says farming is a core component of the regional economy but also has an impact on wa-terways.

“To get the best from our region socially, eco-nomically, environmentally and culturally, we need to protect the natural resources such as water that underpin activities like agriculture and tourism, and which help maintain our repu-tation in international markets,” says Barker.

in brief

Southland dairy land has been leading a recovery in interest, says REINZ.

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Dairy News // july 26, 2011 15

news

FONTerra is welcom-ing the announcement by Agriculture Minister Da-vid Carter of a review of the regulations that force it to supply raw milk to competitors.

The co-op complains about having to supply raw milk to competitors which have their own suppliers, and which then use the milk to make products that compete with Fonterra in overseas markets.

Fonterra chairman Henry van der Heyden told Dairy News the co-op will tell the Govern-ment: “We shouldn’t have to supply raw milk to competitors who have their own milk supply. These competitors export

products that compete with our products.”

The regulations form a key part of the decade-old dairy industry regula-tory regime, says Carter.

“The Government’s goal is to promote fair and efficient dairy mar-kets in New Zealand and after 10 years it’s timely to revisit the raw milk regulations.”

The review of the raw milk rules covers such issues as how much regulated milk indepen-dent processors should have access to, and for how long, and the total volume of regulated milk that should be made available each year.

It does not cover the farm gate milk price, or

the design of a regula-tory regime for Fonterra’s Trading Among Farmers proposal, both of which are being progressed separately.

“I encourage all indus-

try players to take part in this important consulta-tion process,” Carter says. “The raw milk regulations are a key part of ensuring a fair and ef-ficient dairy industry.”

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FONTerra sHareHOLDers Council Chair-man Simon Couper says the review of raw milk regulations will be well received by farmers.

It’s an opportunity to amend aspects of the cur-rent raw milk regulations, he says.

“Review of the raw milk prices has been a long time coming and given the noises they have been making, farmers want to be heavily involved in the review process, says Couper.

“This has been a contentious issue for many years and we expect our farmers to take this op-portunity to be heard and influence a much needed change in policy.”

Under the current system Fonterra is obliged to sell up to 600 million litres of milk a year to com-petitors at a regulated price.

This has been an irritant with many in the dairy industry claiming the system lends itself to abuse at the hands of foreign-backed processors, says Couper.

“We’re not seeking to insulate ourselves from competitive pressures. Our intent is to stop the abuse of the system by producers.”

‘long overdue’

Dairy News // july 26, 201116

news

Hefty penalties for effluent breachesFOUr Bay of Plenty dairy farmers were among busi-nesses fined this month for breaching effluent manage-ment rules. They were sentenced in the Environment Court in Tauranga.

Bay of Plenty Regional Council water management group manager Eddie Grogan says the prosecutions showed some farmers in the region are still not doing

the necessary checks.All four dairy farmers had been poorly managing

their effluent systems, including ponds and irrigators.The fines totaled $118,000, reflecting recent in-

crease in penalties available to the Environment Court after an amendment to the Resource Management Act.

And Grogan says the cases are notable for the courts order that each farmer must develop contingency plans for effluent disposal. The plans must address equip-ment maintenance, staff training, monitoring of efflu-ent systems and appropriate storage.

The penalties reflected the severity of the situation, Grogan says.

“We’re pleased these cases received enforcement orders and significant fines and hope this will deter others. This is a timely reminder for farmers to check their systems will correctly manage effluent even on the busiest, wettest days.”

The regional council seeks to help farmers to re-main compliant 365 days a year. Several free tools are available to help them do so.

A Massey University pond storage calculator helps calculate risk, ensuring effluent systems have the right storage capacity so that effluent irrigation only occurs during the right soil moisture conditions. This ensures nutrients are used effectively, good for the environ-ment and farmers’ productivity, says Grogan.

“In many cases however, the right systems may be in place but it all comes down to farm operators. Farm-ers need to do regular maintenance on their equipment, and fully train staff in its operation.”

Grogan says it is crucial new farm workers are aware of all the requirements to remain compliant.

“A simple checklist has been created to ensure new workers go through the right induction and farmers can be confident they will not risk compliance.”

Some farmers in the Bay of Plenty are still breaching effluent management rules.

inflation rise worries FedsFARMERS ARE expressing concern the highest inflation levels for 21 years will add upside pres-sure on the New Zealand dollar.

“Certainly, farmers will be concerned at the 1% increase to the Consumers Price Index (CPI) for the june 2011 quarter,” says Federated Farm-ers president Bruce Wills.

“Inflation is a major business concern because it affects the confidence to invest.” 

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Dairy News // july 26, 2011 19

andreW sWalloW

CaLL yOUr bull sup-plier now to give him or her adequate warning you’ll want a vet-signed certificate showing the animals you buy this spring are BVD-free.

That is one of the immediate messages at vet seminars being run across the country by the BVD steering commit-tee, with the support of Intervet. The aim is to get vets to take a consistent approach to tackling the disease estimated to cause the dairy industry at least $127 million each year.

About 370 vets will have attended the seminars by the time they finish this week. That’s over a third of the large animal vets practising in New Zealand.

“Most practices have sent somebody,” LIC research vet and BVD steering committee mem-ber Hinrich Voges told Dairy News.

All attendees leave armed with a BVD Management Toolkit file, detailing a four-step process to tackling the debilitating disease on ei-ther dairy or beef farms: define, assess, action,

monitor.Step 1: Define means

you must test your herd. For dairy farms a bulk milk test gives an overall view very cheaply, an S/P ratio result of over 0.75 indicating recent

exposure to the virus; under 0.75 meaning the herd has probably been virus free for the past few years.

While the low result is good news in that production losses are minimal, it also means the herd is vulnerable to infection, and should be protected.

Step 2: Assess means evaluating where the infection is coming from if pres-ent, or the risk of it being reintroduced in the case of a low S/P result.

Risk factors include introduc-tion of infected

or non-tested animals (calves, cows or bulls), proximity to infected herds, vaccination or lack of it, and off farm grazing of replacements and cows, particularly in early pregnancy as this can lead to infection of the foetus, which will be-come a ‘PI’ – persistent infector.

Such animals never

news

‘Buy BVD-free certified bulls’overcome the disease, and while they are usu-ally sickly and/or low producers, some do make it into the herd and sur-vive to old age, shedding “vast amounts of virus through every orifice,” points out Voges.

Consequently a herd with PI present will always have a high S/P ratio and persistent loss of production through mastitis, lameness and other ailments which the BVD virus renders cows susceptible to.

“Diarrhoea is just one facet of the disease. In fact it’s almost a misno-mer. It suppresses the entire immune system,” explains Voges.

Step 3: Action in-

volves eliminating risk factors as far as possible.

Step 4: Monitor shows how effective those mea-sures are.

“It’s really important you don’t just vaccinate and think that’s going to solve all your prob-lems,” stresses Eltham, Taranaki, vet Andrew Weir who is doing a PhD study of the economic impact of BVD in New Zealand herds.

More on BVD in Dairy News’ sister paper Rural News next week.

Hinrich Voges

LawF here to stay

Vet manual: a more systematic approach to tackling BVD.

Peter Burke

a DeCisiON is expected in the next few weeks on the role of the Land and Water Forum (LAWF), which made its final report to the Govern-ment in April.

Discussions have since taken place between LAWF chair Alastair Bisley, government officials and the two cabinet ministers responsible – David Carter and Nick Smith – on what role it may play in the devel-opment of freshwater management policy.

Already the Government has picked up some recommendations made by LAWF.

Smith and Carter in May re-leased a National Policy Statement on Freshwater, an irrigation accel-eration fund, extra funding to clean up waterways, and gave indications of help to fund water infrastructure schemes.

Though it’s over to the Govern-ment to decide what recommenda-tions it may select from the options offered by LAWF, there is a strong support for retaining the forum, now running nearly two years.

A total of 58 stakeholders, in-cluding farming groups, envi-ronmental organisations, iwi and industry, are involved in LAWF. Its success was attributed to the fo-rum’s suitability for honest, rational discussion of difficult issues over freshwater management.

Dairy News understands those involved want the forum to remain and that it will, with a new role de-fined by ministers. This will ensure that freshwater management poli-cies offer some form of ‘buy-in’ for key stakeholders rather than allow-ing a return to the ‘bad old days’.

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Dairy News // july 26, 201120

world

Us Dairy farmers are welcoming a proposal to end government buying of excess dairy products and storing them for future sale or donation, say-ing it will boost exports.

National Milk Producers Fed-eration president Jerry Kozak says the elimination of the dairy product price support programme is a good thing.

Kozak says the programme acts as a government-funded buyer of last resort for a limited list of commodi-ties, including cheddar cheese, butter and nonfat dry milk powder. Unfor-tunately, this program also acts as a disincentive to exports, he says.

“Once this program is eliminated,

markets during periods of surplus will clear more quickly.

“Product manufacturers will no longer have the in-centive to make dairy foods intended only for the government, and will have incen-tive to sell those prod-ucts on the world mar-ket.

“The price sup-port programme has hindered our ability to fully develop and capitalise on foreign markets, as was the case in 2009, when US dairy ex-ports dropped and government price

support purchases surged.”Under a proposal put forward by

a congressional agriculture commit-tee ranking member Collin Peterson, the price support pro-gramme and income loss protection for farmers will be re-moved.

Peterson’s pro-posal includes in-surance to protect farmers’ profit mar-gins and the dairy

market stabilisation programme (DMSP), a plan to discourage farm-ers from boosting milk production or

expanding their farms. He says it’s time to act before another crisis hits the dairy industry.

“If we have another dairy crisis like we had in 2009, we could lose half our dairies. The discussion draft allows us to keep the ball moving while continuing dialogue with the dairy industry.

“Current dairy programmes aren’t working; they’re not keeping up with the challenges facing today’s dairy industry.”

But his proposal hasn’t gone down well with US processors and market-ers.

International Dairy Foods As-sociation president Connie Tipton

says the draft legislation will take the dairy industry in the wrong direc-tion.

“Instead of encouraging job growth and reducing regulation on an already overregulated industry, the discussion draft would impose new and intrusive government man-dates on dairy markets at the cost of a growing dairy export business and the jobs that have come with it.”

But Kozak is rejecting Tipton’s claim. He says any revenue collected from the proposed DMSP is not a tax on consumers.

“It’s a user fee paid by farmers which will, only as needed, be used to help stimulate demand.”

US dairymen cheer new milk plan

World’s biggest automated farm

Jerry Kozak

a rUssiaN farm is to buy 16 new voluntary milking systems (VMS) from DeLaval and is poised to become the world’s largest automated dairy.

The Rakhimovo Farm,

located in the Russian Federation’s Republic of Tatarstan, has signed an agreement with DeLaval to double its VMS capa-bility. The farm already operates 16 VMS.

Owner Farit Rakhi-mov says after two years milking with the 16 VMS it has time for further investments.

“The benefits have been clear since the first installation, in production and quality, and therefore securing a return on our initial investment,” he says.

The VMS helps dairy farm managers improve productivity and profit-ability.

DeLaval director for automatic milking sys-tems Jonas Hällman says the company is delighted with the new order, and that “cooperation with the Rakhimovo Farm continues to develop with this additional invest-ment”.

“This is further

evidence that we help our customers achieve excel-lent results regardless of the herd size.”

Rakhimov sees DeLaval as the leader in large scale automation technology.

“Our continuing partnership is advanta-geous for us and DeL-aval, where we have an

excellent exchange of technological expertise and feedback from our operations.”

The Rakhimovo Farm has 2500 cows. It is man-aged by DeLaval’s Feed First and Smart Selec-tion Gate systems. Two people – only one in the barn – supervise the huge robotic complex.

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world

UK FarMers are seeing red over a report showing their April farm gate milk prices were the lowest among the 27 EU states.

National Farmers Union president Peter Kendall says the UK lan-guishing at the bottom of the European milk price league table is a disgrace.

“It’s plain wrong that British dairy farm-

ers are paid the lowest prices in Europe,” he says. “They’re receiving around 8c/L below the EU average which is a disgrace. Something has to change.”

Figures from the EU Commission’s directorate for agricul-ture and rural develop-ment showed that in April the average UK farm gate price stood at 49c/L, lowest price of any nation in the EU-27.

The UK price was a 10% improvement on domestic farmgate milk prices in April 2010 but is still way below the 71c/ L being paid to Greek producers in April this year.

Dairy farmers in eight of the EU 15 member states were getting well above 57c/L while among the whole EU 27 those in Cyprus and Malta were

being paid 76c/L.UK farmers have

been struggling under lower farm gate prices with many farmers being forced out of the industry.

Kendall says volume production is finally turning a corner and, despite declining farmer numbers, average yields and efficiency are im-proving.

UK producers want to expand their businesses, but market signals tell

UK farmers lowest paid in EUthem to do the opposite, he says.

“The dairy indus-try urgently needs fair terms and conditions of trade and that’s why the NFU is backing calls for a voluntary ‘code of practice’. As part of our campaign, we have been lobbying MPs and dairy

processors to push for the introduction of fairer contracts. We believe these will deliver negoti-ating strength and price transparency to dairy farmers.

“A rising popula-tion here in the UK will mean some eight million more consumers on our

doorstep within the next 15 years.

“That should be great news, but unless we can find a way for our dairy farmers to get a fair re-turn on their investment, it’s difficult to see how they’ll be in a position to rise to the challenge.”

Kendall admits the

industry needs to produce more milk but points out for farmers, the really critical first step is sus-tainable terms of supply.”

NFU dairy board chairman Mansel Raymond says the position the UK milk price now occupies in the EU league table is

scandalous. “Equitable transmis-

sion of price and margin in the supply chain is not happening. Farmers are anxious to expand as we head to the end of milk quotas. There is no excuse for procrastination or failure to pass on price rises to farmers.”

“They’re receiving around 8c/L below the EU average which is a disgrace. Something has to change.” – Peter Kendall

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Dairy News // july 26, 201122

opinionrUMiNaTiNG

MiLKiNG iT...

editorial

THE GENERAL election looms and already the political par-ties are promoting policies they hope will appeal on Novem-ber 26.

The Greens want to save the eels, ACT wants to save the rich, National are happy the way things are and Labour leader Phil Goff is certainly not making a bid for the rural vote.

His remark the “Feds are National in gumboots” was pretty blunt. One has to feel sorry for Labour’s agriculture spokes-man Damien O’Connor who must be trembling at the thought of what his leader might say in his next speech.

Labour’s capital gains tax (GCT) is causing as much specu-lation and confusion for the experts as for ordinary Kiwis.

The idea of a CGT was raised in 1989 then dropped. Last year the Tax Working Group (TWG) again looked at the idea as a means of widening the tax base, but again it failed to find favour with a majority of the group.

The experts will tell you that in theory a CGT is not all bad and that most other countries have it. Apparently our Treasury has been in favour of it – a point picked up by Labour. The argument that cash investments are taxed and the sale of a investment property is not raises equity issues which will ap-peal to many.

But the experts say the devil is in the detail and no inde-pendent sources we’ve spoken to will either openly endorse or reject the idea.

Some offer the theory that it will lower land prices, oth-ers say people will hold on to farms longer. It seems to come down to exactly what exemptions are contained in the final law and these are many and varied.

In essence CGT is a tax on wealth and that may be fine. The worry would be if it were to encourage behaviour that might have a detrimental impact on New Zealand’s economic growth for short-term gain.

For example, if land prices where to rise, it would make farm ownership for bright young people even more difficult.

Twenty years ago young people could see a pathway to farm ownership via the sharemilking system. This door is gradually closing and one hopes a CGT, if implemented would not make this goal even more unattainable. – Peter Burke.

Do we need this tax?

WINNING a new pair of Skellerup Red Band boots has just become easy. The best letter to the Editor published in Dairy News each issue will receive a pair of boots. So, put your pen to paper and let your views and comments be known through the most widely read farming publication. And you may end up bagging the Skellerup Red Band boots.Send to: Letter to the Editor PO Box 3855, Auckland 1140. Email: dairynews@ruralnews.co.nz

write and win!

springing out of reachFONTERRA’S INCOMING chief executive Theo Spierings is enjoying a campervan holiday in The Netherlands.

Attempts to contact the Dutch appointee for a comment proved futile, Fonterra telling Dairy News he was on the road.

Spierings’ decision to slip away for a holiday was well timed given the news of his appointment. Coinci-dence?

waiting and eatingAuSTRAlIA’S TEMPORARy ban on live cattle exports to Indonesia has affected the animals.

A Queensland grazier says his cattle are too heavy to be sent to Indonesia because of the ban.

The Federal Government has lifted the ban but port operators in north Queensland do not expect shipments to resume until September.

Ray Heslin from Inverleigh station in the state’s Gulf Country region, says one third of his cattle now exceed the 350kg weight limit imposed by Indonesia.

His remaining stock will also grow too heavy for export if he has to wait until September for the trade to resume, he says.

“We’ve got to be gone before then because they start losing weight. It’s been two good seasons up here so cattle are a bit heavier than in a normal year.”

Heslin says he will be forced to sell what is left to abattoirs in Queensland’s south-east if he cannot export to Indonesia.

The suspension in live trade was imposed last month after animals were shown on ABC’s Four Corners programme be-ing mistreated in Indonesian abattoirs.

Milk lowers blood pressureMIlK MAy after all be good for preventing and treating high blood pressure.

A uS study published recently in Circulation: Journal of the American Heart Association, says partly replacing refined carbohydrate with foods high in soy or milk protein may help prevent and treat high blood pressure.

In the study, 352 adults with high-nor-mal blood pressure or mild hypertension were assigned to take 40 grams of soy protein, milk protein or a refined carbo-hydrate supplement, every day for eight weeks.

The supplements had a similar sodium, potassium and calcium content and were taken twice daily in water or juice.

Cheeky advert AuSTRAlIA’S DAIRy industry has backed the science behind a cheeky advertising campaign touting milk as a tonic for PMS.

The uS campaign, pitching the benefits of milk to bumbling blokes fearing their female partners, has come under fire from critics who’ve labelled the strategy sexist. The campaign’s Everything I Do Is Wrong website is described as ‘your Home for PMS Management’. It includes a picture of a worried man holding several milk cartons with the headline “I apologise for letting you misin-terpret what I was saying”. Furious accusations of sexism followed the launch.

The campaign has piqued the interest of Australia’s dairy industry. Dairy Australia nutrition media manager Glenys Zucco says the scientific research behind the marketing strategy is legitimate, with several studies having linked milk and calcium with reducing PMS. “The campaign is evidence-based,” she says.

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Dairy News // july 26, 2011 23

opinion

Why Govt is right to make you pay – CarterDespite opposition from farmers, Agriculture Minister David Carter is pushing ahead with a Government/Industry Agreement (GIA) on biosecurity. At the recent New Zealand Biosecurity Institute Conference, he explained the benefits of GIAs:

THe GOVerNMeNT/iNDUsTry Agreement initia-tive (GIA) is intended to achieve better biosecurity for New Zealand through industry and government shar-ing knowledge, decisions and costs in dealing with in-cursions of harmful pests and diseases.

In discussion with industry, the Government has agreed to meet a minimum cost share of 50% for any priority readiness and response programmes… to demonstrate [our] willingness to work in partnership with industry to ensure New Zealand has the best bios-ecurity system possible.

GIAs recognise that by working together we can harness greater capability and capacity than either par-ty can, by working alone. While not a formal govern-ment/industry agreement, the response to the kiwifruit disease Psa was a good example of this.

One of the three fronts of biosecurity is border se-curity. While some like to talk about restricting im-ports to guard against biosecurity risk, this is not an option for a country that argues so passionately around the world for freer trade access, unless a biosecurity risk is obvious.

And it’s worth noting, much of what we export could not be produced without imported products that we accept into New Zealand, which are then available to New Zealanders without the additional cost of im-port tariffs.

The Biosecurity Amendment Bill will allow the Government to change the way that it operates and manages risk at the border to ensure harmful organ-isms are kept out of New Zealand, while facilitating trade. These changes to the way MAF works at the border will strengthen security and improve efficiency.

Changes are also being made to the way established pests are managed in New Zealand.

The changes to the Biosecurity Act will improve New Zealand’s pest management system by increasing cooperation, sharing costs and encouraging alignment amongst all parties involved.

One important change being made is the ‘good neighbour’ rule.

To ensure the Crown is paying its fair share towards pest control, the Crown will now be required to comply with regional pest management plans.

Biosecurity must be a collaborative effort: everyone has a role to play in keeping out unwanted pests and diseases, and containing or eradicating those that es-tablish here.

Everyone should share the cost of keeping our borders safe, says Agriculture Minister David Carter.

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Dairy News // july 26, 201124

agribusiness

Formula for more profit from milkTHe Dairy sector is missing out on the lucrative infant formula business, according to a research company.

Coriolis Ltd, which has researched the opportunities for New Zealand dairy compa-nies to move into infant formula production, says formula manufacturers are capturing most of the value of our milk.

Coriolis director Tim Morris says the baby food/infant nutrition mar-ket worldwide is achiev-ing strong growth driven by increasing demand, particularly in the Asia Pacific region.

In this region alone, sales of infant formula have grown 15% per year for the last five years.

Morris says what might be surprising to some is that most infant formulas sold in the Asia Pacific region contain

New Zealand milk powder.

“But, sadly, it’s the formula manufacturers who are capturing most of the value of our milk.

“Infant formula deliv-ered to the back door of a supermarket is worth ten times our milk powder exports at the border.

“We blither on inces-santly about the need to add value to our exports. Infant formula is a clear, no-brainer oppor-tunity to add value.”

Morris says the new product development spray dryer at Waikato Innovation Park will be a great step on the path to realising this opportunity.

Construction of the $11 million spray dryer facility will commence this month. It will open in May 2012 and is the third building on the 17ha Waikato Innovation

Park campus in Hamilton.

The spray dryer

is the Waikato compo-nent of the Ministry of Economic Development-sponsored New Zea-land Food Innovation Network. Waikato Innovation Park’s parent company, Innovation Waikato Ltd, has formed a subsidiary – New Zealand Food Innovation Waikato Ltd – to own and operate the dryer.

Waikato Innovation Park chief executive Derek Fairweather says the spray dryer will ini-

tially be set up to allow companies to research, develop and manufacture new milk powders. How-ever, the medium-term strategy is to expand the plant’s capability to manufacture infant formula, he says.

Waikato Innovation Park has received interest from dairy companies within New Zealand and overseas around using the pilot plant mainly for development purposes.

Fairweather says several offshore compa-nies have also expressed interested in producing market development runs of infant formula.

Each of these prospec-tive spray dryer users has the potential to develop export markets worth hundreds of millions of dollars to New Zealand, he says.

Agriculture Minister David Carter turned the first sod this month in preparation for construct-ing of the spray dryer. Carter says New Zealand must continually seek in-novative food and bever-age sector opportunities.

“The New Zealand Food Innovation Net-work and this develop-ment for the Waikato Innovation Park are important steps in mak-

ing this happen.”Waikato Innovation

Park chairman Michael Spaans believes the dryer is one solution that can help the dairy industry move further up the product value chain. With annual dairy ex-ports sitting at just over $12 billion, dairy is one of the country’s largest export earners, he says.

“The majority of our dairy exports are ingredi-ents such as milk powder, butter and cheese. New Zealand dominates the world’s dairy commodi-ties markets; that’s our core strength and we will keep doing this well.

Agriculture Minister David Carter and Waikato Innovation Park chairman Michael Spaans at sod turning for the new dryer. Artist’s impression (left) of the new dryer.

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agribusiness

Licence to tackle aTV mishapsa New ATV farm licence is be-ing launched to help reduce ac-cidents, which now number 35 daily on New Zealand farms.

Riders’ attitudes must be changed by training on how to ride ATVs safely, say the licence scheme organisers FarmSafe and Agriculture ITO (AgITO).

FarmSafe national manager Grant Hadfield says both organi-sations are committed to reduc-ing accidents and changing atti-tudes.

The licence is gained through on-the-job training including safe riding practices, and tuition on how to identify and minimise potential hazards so that safe rid-ing decisions are made.

Participants will also be taught industry guidelines and their responsibilities, and practi-

cable ways to minimise risk in-jury.

Hadfield referred to the De-partment of Labour’s recent ATV safety campaign, saying the licence scheme is timely.

AgITO chief executive Kevin

Bryant says his organisation is doing all it can to ensure people stay safe.

“Quad bikes are a major source of injury and death on farms, often because of lack of experience and training.

“By gaining the quad bike farm licence, farm owners, man-agers and staff will be able to prove safe riding competence and show an understanding of Department of Labour guide-lines.”

ATV crashes waste time and raise staffing expenses, ACC levies and insurance premiums, Bryant says.

“There are clear benefits for employers and their staff to un-dertake this training and gain the licence.”

The licence uses NZQA ap-proved unit standards and the training and assessment is flex-ible to suit participants’ riding experience. Experienced riders already holding applicable unit standards can have them recog-nised as part of a course.

CRT revenues top $1 billionFarMer OwNeD co-op CRT’s turn-over has surpassed $1 billion for the first time. It has reported a 36% in-crease in turnover to $1092 million in the year to March 31, 2011, with oper-ating surplus up 66% at $8.4 million.

A $6 million distribution will be made to shareholders, split 75% as share capital, 25% as cash, which, with rebates, brings total benefits for the year to $31.5 million. The bonus rebate will be based on sharehold-ers’ purchases as follows: bulk fuel 4.50%, retail 1.20%, seed 1.20%, Ballance fertiliser 0.45%, CRT card 0.45%.

Chairman Don McFarlane says it is a fitting milestone on the 25th an-niversary of the CRT brand.

“When a group of progressive South Island farmers formed this co-operative nearly 50 years ago to re-duce their input costs, they struggled to find suppliers and measured sales

in the thousands of dollars,” says Mc-Farlane.

“They would be heartened to see their dream has now grown into a bil-lion dollar company offering a full range of services to 25,000 share-holders.”

The cooperative has four main revenue streams: farm supplies, CRT card operations, fuel distribution, and finance, livestock and real estate.

The latter services are commis-sion based, hence the bulk of turnover is in the other three trading areas, and reasonably evenly spread across them.

Farm supplies and CRT Card busi-ness continued strong growth of re-cent years, and fuel distribution made an important contribution. CRT as-sumed responsibility for the Chal-lenge service station brand and fuel supply during the year, making the co-op one of the largest independent

fuel distributors in New Zealand.Total assets are up a third at $200

million. Chief executive Brent Esler says

the growth was helped by factors in-cluding the Challenge fuel business, acquisition of South Canterbury-based Annett Grain and Seed in May 2010, and the February purchase of Westland Milk Products’ Hokitika farm supplies business.

Esler says trading has continued strongly since balance date and first quarter turnover (i.e. to June 30) is up

27% on the same period last year.During the year CRT secured

the exclusive rights to the Gulf Oil brand for New Zealand, followed by confirmation of Australia and Pacific Islands distribution after balance date.

In New Zealand the Gulf brand will supplement CRT’s fuel business, and provide product for distribution through CRT’s 31 stores.

The wider market for Gulf is large and has potential to add substantial value for CRT shareholders, as the

CRT Fuel business has done, says Esler.

CRT and many shareholders were hit by the September 2010 earth-quake; the co-op’s new feed mill at Rolleston suffered major damage and disruption. The February 2011 quakes had little effect on the com-pany.

The September 2010 storms dis-rupted trading, and CRT staff helped in the rural recovery operations.

CRT’s annual meeting is in Alex-andra, August 9.

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Dairy News // july 26, 2011 27

management

Timely tune-up for dairy irrigatorsandreW sWalloW

HOw weLL do you know the soils across your farm?

It’s an important consideration for the management of any property, but particularly one that’s irrigated, as dairy farmers attending Irrigation New Zealand’s workshops around the country have been finding out.

“Soil is the basis of irrigation. It’s what drives profitability,” says Ian McIndoe, Aqualinc, who is one of the workshop speakers.

Soil survey maps give an idea, but more detailed knowl-edge is needed for farm manage-ment. Hiring a pedologist (few and far between these days, notes McIndoe), using electro-magnetic scanning, or digging holes for do-it-yourself texture analysis are the op-tions.

McIndoe takes workshop del-egates through how to texture test soil, then demonstrates how software such as Plant and Food Research’s Soil Profile Builder shows the field capacity, or “full point”, above which any extra rain or irrigation will run or drain off, and the stress point (or “refill point”) at which plant growth becomes limited by moisture avail-ability, for any given soil texture.

Stone content should be calculated by digging out a known volume of

soil, sifting out stones, and measur-ing their volume by displacement of water.

“Clays hold a lot of water, up to 40% (i.e. 40mm of water per 100mm of soil depth) but because a lot of it’s held in very small, tightly bound par-ticles, plants can’t get that water out.

That can be misleading. The soil may appear wet but that water may not be available to the plants.”

Sands hold very little water but nearly all of what is there is plant available. Silt loams have the highest available water capacity (AWC).

“These are probably the best soils you can irrigate. They hold a lot of water and most of it is available to the plant.”

Crop type and root depth are other key determinants of how much water can be accessed, or, in the case of ir-rigation, how to schedule applications

to avoid soil moisture deficits greater than the stress point, and yield being lost.

When irrigating, infiltration rate of water needs to be taken into ac-count to try to make sure what is applied is absorbed by the soil, and doesn’t disappear down cracks or run off.

“Water prefers to run down the macropores but if you put it on more

gently it has more time to get into those micropores.”

Even fairly gentle slopes reduce infiltration, so if possible applica-tions should be slower.

Similarly, stock compaction of the surface reduces infiltration.

“The solution is to aerate it, open up that topsoil a bit,” says McIndoe.

When to irrigate may be deter-mined by soil moisture sensor, bal-

iMPeNDiNG MaNDaTOry water metering for takes of over 20 L/sec-ond should be seen as “an opportu-nity, not an inconvenience,” says Ir-rigation New Zealand’s Phil Reese.

“You’ve got to do it anyway so you might as well just get on with it,” he told delegates at a workshop in Hinds.

“There are two ways to deal with it. Wait for the regulations to tell us how to farm or we can actually get proactive.”

Having a meter will help irrigator op-erators realise some-thing is wrong with their system much sooner than without, hence making for more efficient water use, and provide data with which to prove the job is being done right.

“When we get bad press we don’t have a lot of data to answer them

with at the moment,” he points out.

Rees also highlights the financial impact of not getting irrigation right. Based on every mm of water producing 15kgDM/ha of ryegrass, and each 15kgDM of grass producing 1kgMS,

valued at $6.50/kgMS, as little as 30mm of water stress during a sea-son equates to $195/ha of lost reve-

nue. Multiplied across a 132ha farm, that’s $25,740/ha/year.

“A decent soil moisture moni-toring system will cost you about $10,000. You can make that money up very fast.”

Even at Lincoln University’s demonstration farm, where “you would hope they were pretty much onto it with their irrigation sched-uling”, installation of soil moisture sensors and flowmeters paid for it-self within six months, he notes.

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ance sheet calculation, or preferably both, because balance sheets will tend to “drift” from the reality as time goes on, unless there’s sufficient rain to bring ground back to field ca-pacity and “recalibrate” the balance sheet.

Most soil moisture sensors mea-sure total water content of soil, not how hard it is for the plant to get that water out, so users need to be aware of soil type, in particular clay content and how much water may be held which is unavailable to the plant, warns McIndoe.

Those using twin-pronged dielec-tric probes should make sure probes do not get bent on stones as the dis-tance between the probes will affect results.

“And don’t get confused between accuracy and precision. A meter might give a reading to four decimal places but its accuracy may still be rubbish.”

As a rule “you get what you pay for” with meters, he says, and hav-ing one or two high quality meters in suitable reference points on the farm, then using a cheaper hand-held meter elsewhere, can be a compromise.

Phil Reese

Chester Nercuit (left) and Gary Brown get some hands-on practice assessing soil texture.

Dairy News // july 26, 201128

management

Dairy farm tackles feed shortagesMary Witsey

THe sOUTHLaND Demonstration Farm at Wallace-town is moving to improve sustainability and lift on-farm performance by introducing supplements to its milking platform.

The board has this season decided to install a grain feeder and use palm kernel, at a rate of 180kg/cow, after a system review revealed annual periods of feed shortages.

This decision was controversial, causing debate amongst farmers at a recent farm focus day. But chair-man Abe de Wolde stresses it’s not a suggestion grass fed systems are inefficient, or that the current pasture management is not up to scratch, but rather that pasture production fluctuations make management difficult.

“A grass fed system could work at a lower stocking rate, but at the production levels we are aspiring to we need to do this. It’s a tool in our arsenal to keep our operations efficient.”

While last year’s snow storms created a feed short-age, the decision to intro-duce supplements is based around information dat-ing back to the farm’s first season in 2007-08.

Research shows across every season there were periods when the cows were not being fed enough to reach production totals. Others factors taken into consideration are the need to protect the cows body condition score, to balance supply and demand and to improve profitability and sustainability.

He suggests farming is a journey and this is a new direction other farmers will watch with interest.

“As a demonstration farm we feel we have to scope the horizon for the whole of the Southland dairy indus-try; we’re supposed to be leaders.

“We don’t feel we present the [good news]. We’re on a journey with the industry and hopefully we’ll be able to learn together.”

The emphasis is now on fine tuning stock manage-ment, which includes good calf rearing, better transi-tioning of cows through calving and early lactation and maintaining cow condition.

“It’s a holistic thing and I think it’s the way to go into the future; we’re quite excited about it.

“Stock management is something neglected by the New Zealand dairy industry. We can grow large amounts of quality grass, but we need to be efficient.

“There has been a tendency in the industry to use cows as pasture harvesters; that needs to change if the sector is to become more efficient.”

Palm kernel will be fed because of difficulties in securing grain for the coming season and because of price.

De Wolde warns care will be needed to ensure wastefulness or inefficiencies don’t occur within the system. “This shift doesn’t take anything away from proper pasture management.”

The aim is to use supplements at a rate which en-sures the residuals remain between 1450 and 1600 kgDM.

Farm supervisor Sharn Roskam says the change has been rigorously researched by the board.

“It’s about being sustainable within the business, around our animals,staff and the environment.”

And she says it’s about ensuring supply and demand.“It’ll be nice to have a buffer in our system for ad-

verse events.”

• The295hapropertywasleasedbySouthland DemonstrationFarmLtdinJune2007.

• Milkingplatform:260ha,withafurther 35ha/yearofbrassicasandfodderbeatfor winterfeed.Thefarmwinters800cows.

• Targetedannualproduction:300,000kg/MS.

• TotalkgMSsupplied:275,450(2010-11).

AveragekgMS/cow:364.AveragekgMS/ha 1052(milkingplatform).

The decision to introduce supplement at the Southland Demonstration Farm has not gone down well.

Abe de Wolde

Fact file

Dairy News // july 26, 2011 29

management

Maize and pasture means more milkMaNy FarMers are chasing production this season and suppliers are already reporting high demand for supplemen-tary feeds.

Feeding supplements will almost always increase production, but they will only increase profit if you get the fun-damentals right. These include maximising pasture harvest, growing or buying supplements at the right price, minimis-ing wastage and maxi-mising milk response rate.

Getting the right amount of feed per cow is a key driver of profitabil-ity. Moderate decreases in pasture growth rates can create massive feed deficits and in the past season I have seen a number of farms who no longer have enough feed for the number of cows they are running. Take some time now to analyse your system and check you have enough feed on hand or have contracts in place to buy it.

It is important to choose supplements that will help you achieve your farming goals. There are a number of reasons why I am pas-sionate about maize si-

lage as the supplement of choice for New Zealand dairy farm systems; these include:Fed strategically, it drives milk yield and milk protein produc-tion.

Many farmers are al-ready using maize silage to extend lactation length and to fill feed deficits throughout the season. Recent information pub-lished by DairyNZ shows that starch based supple-ments such as maize silage or grain drive milk protein and volume, in-creasing the size of your milk cheque.It fits into pasture-based dairy systems.

Some supplements are like icing on a cake – nice to have, but not essential. For a growing number of successful dairy farms maize silage and pasture together are the cake. Maize silage is

helping farmers optimise the return from their dairy farm investment by:

Lifting total drymatter yields. Maize is a reliable crop that produces high yields of cost-effective drymatter. It can be used to increase the amount of drymatter harvested on farm, run-offs and other dairy support land.

Improving pasture persistence. Growing maize silage as part of a pasture renewal programme can help im-prove pasture persistence by reducing the level of weeds, insect pests and carryover ryegrass seed. Feeding maize silage to dairy cows results in pasture substitution. This decreases grazing pres-sure and can be used to manipulate farm pasture cover levels reducing overgrazing.

Removing nutrients from effluent paddocks. As dairy farms intensify and more supplements are brought onto farms, nutrient concentration in effluent paddocks is an increasing problem. Research has shown that maize silage can ‘mine’ this nutrient, produc-ing high yields of low cost drymatter without the need for any extra

fertiliser. It is environmentally sustainable.

The evidence is clear. Growing and feeding maize silage can mitigate many of the environmen-tal concerns associated with the intensification of dairy farming. The maize plant has a deep rooting structure which allows it to utilise nutrients that have dropped below the root-zone of pasture spe-cies. Maize is a highly efficient user of water and nitrogen. Feeding maize silage reduces uri-nary nitrogen levels and subsequently nitrogen leaching. It also reduces the risk of phosphorus run-off into waterways.

If you need help analysing your system or fine-tuning the amount and type of supplements you feed, call 0800 PIONEER (0800 746 633) to request a free, no-obligation Pioneer forage specialist visit.

1Adapted from: Supplements – the facts to help improve your bottom line, Dairy NZ Technical Series July 2011.• Ian Williams is a Pioneer forage special-ist. Contact: iwilliams@genetic.co.nz

Percent of extra milksolids

Metabolisable energy

(MJMe/kgDM)

Feeding system

estimated milk revenue

@ $6.50/kgMsFat Protein

PKE 75 25 11.0 Feed-pad $415Grass silage 70 30 10.5 Feed-pad $375Maize silage 45 55 10.5 Feed-pad $445Barley 25 75 12.0 In-shed $675Maize grain or wheat 20 80 13.0 In-shed $800

Table: Estimated milk revenue from 1 tonne DM of different supplements (at a grazing residual of 1,550 kgDM/ha)1.

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Dairy News // july 26, 201130

management

Merits of OAD milkingONCe-a-Day MiLKiNG for a short time during ear-ly lactation may provide labour, lifestyle and animal health benefits, easing the pressures seasonal calving puts on staff and cow management.

OAD milking during this time reduces the work-load of milking and can help get systems in place to manage springers and colostrum cows, calves, animal recording, adverse weather events and labour short-ages. Some questions arise about farm productivity and profitability, including the long-term effects of this strategy on milk production.

Will OAD milking in early lactation affect total lactation yield?

Milking cows OAD for as little as three weeks dur-ing early lactation has long-term negative effects on MS production. DairyNZ research results indicate that milking cows OAD for three weeks, either immedi-ately after they calve or from week 5 post-calving, re-duces daily MS yields by about 20% immediately, and by about 6-8% when cows are subsequently switched to twice-a-day (TAD) milking.

These combined negative effects reduce total-lac-tation MS production by about 8%, compared with milking TAD for the whole season. This loss occurs irrespective of whether herd production levels are high or low (500 vs. 330 kg MS/cow/year).

Further, the loss in total MS production increases to 12% when cows are milked OAD for six weeks post-calving

When OAD milking is continued for 10 weeks post-calving, total MS yield per year is about 20% lower than TAD milking for the entire season

Use of OAD milking during early lactation will, therefore, lead to losses in total milk revenue per cow.

Milking OAD decreases the udder’s ability to ex-tract nutrients from the blood for milk production, re-duces the activity of cells that produce milk and milk components (fat, protein, lactose), and ultimately de-creases the number of cells that produce milk by pro-moting cell death.

The number of mammary cells and milk synthesis activity within mammary cells remains reduced even after cows change from OAD to TAD milking.

These effects indicate why milking OAD for a short time during early lactation reduces a cow’s potential to produce milk throughout lactation.

Will OAD milking improve cow BCS and energy status in early lactation?

Milking cows OAD during early lactation does not affect BCS loss during the first four weeks post-calv-ing. Physiological mechanisms ensure that body tissue is mobilised following calving to support milk produc-tion, and nutrition and management do not alter BCS loss until 5-6 weeks post-calving.

Cows milked OAD lost 0.55 BCS units during the first five weeks post-calving, whereas cows milked TAD lost 0.7 BCS units. By late lactation, the differ-ences in BCS from short-term OAD milking are neg-ligible.

Milking OAD during early lactation does, however, improve cow energy status relative to TAD milking. This is probably because the reduction in feed intake by cows being milked OAD is not as great as the re-duction in milk production.

A recent DairyNZ experiment indicates that cow energy balance post-calving is improved (based upon blood metabolite and hormone profiles) during and af-ter a short period (3-6 weeks) of OAD milking. Fur-ther, gene expression profiles in the same study indi-cate that more body fat production genes are switched on in cows milked OAD post-calving.

Key messages• Milking once a day (OAD) for a short time during

early lactation can reduce a cow’s potential to produce milk throughout lactation.

• The total production loss depends upon the duration of OAD and is due to both immediate and long-term reductions in daily milksolids (MS) yields.

• OAD milking post-calving improves cow energy status, but there is little improvement in body condition score (BCS) until after 5-6 weeks in milk.

• Milking cows OAD during a temporary feed shortage in early lactation decreases MS yield by more than the feed restriction on its own.

• Although OAD milking reduces potential MS production, it allows farmers more time to focus on other important management issues (i.e. springers and colostrum cows, labour short-ages, difficult weather conditions and feed allocation).

• Article sourced from DairyNZ Technical Series July 2011

Once-a-day milking in early lactation eases the pressure on staff and cows.

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Dairy News // july 26, 2011 31

animal health

Colostrum vital for calvesgWyneth verkerk, dairynZ senior scientist

UNLiKe HUMaN babies, young ru-minants (calves, lambs and kids) are born without any antibodies. They rely on colostrum for their early im-munity, and have a brief but critical window for colostrum feeding to give effective disease protection.

Calves with insufficient colos-trum are more likely to be unthrifty, more prone to infection when disease outbreaks occur, and more likely to develop secondary problems such as pneumonia.

Antibodies are proteins too large to cross from gut to bloodstream in adults; but newborn ruminants have microscopic holes in the gut wall that antibodies can pass through. Their ability to absorb antibodies decreases as these pores close; 90% have closed by 12 hours old. By then the calf’s stomach is secreting acid and diges-tive enzymes which denature anti-bodies and also limit their absorption

So if calves don’t get enough co-lostrum in the first 12 hours of life, they miss out on essential disease

protection. Instead they must activate their own immune system early, and that takes 3-4 weeks to become fully functional.

Best quality colostrum (“gold co-lostrum”) comes from a cow’s first milking after calving. Gold colos-

trum has 21% total solids – more than double that in normal milk – and the solids content of day 3 colostrum is 13%.

Protein accounts for more than half of total solids. ‘Gold colostrum’ has 11% protein, of which nearly half is antibodies. Antibody concen-trations fall rapidly, they are almost gone by the second day after calving. So save the ‘gold colostrum’ for new-borns.

Colostrum quality varies between cows. Older cows produce more an-tibodies than heifers. Induced cows and cows in poor body condition pro-duce less colostrums; their first milk

is not ‘gold colostrum’. While it has to be withheld from supply, it is not good enough to feed to newborns and should be used for older calves. Previous treatment with dry cow antibiotics will not affect colostrum quality provided the withholding

period has been met; but mastitis colostrum and milk, and milk from cows being treated with antibiotics within the milk-withholding period, should not be fed to calves.

The amount of antibody for spe-cific diseases can be boosted by im-munising the cow. This is the basis of vaccines to manage rotavirus; giv-ing the vaccine several weeks before calving boosts the amount of specific antibodies against the virus in colos-trum.

Experimental work in the United States has shown that disease pro-tection is maximised when calves receive 6% of their bodyweight as co-

lostrum within the first 6 hours, and a total amount of 12% of their body-weight within the first 12 hours of life. This means a 30 kg calf should get at least 1.5 L at its first feed, and an overall total of 3.6 L by 12 hours of age.

Some calves will not drink this amount voluntarily. Leaving them until the day after pick-up, in the hope that hunger will make them easier to feed, is not a solution,

it is too late then for absorption. Tube feeding calves with ‘gold co-lostrum’ soon after pick-up is the best way to ensure they get enough.

Though labour-intensive, this practice will greatly improve many calves’ start in life. New Zealand studies show 33-50% of calves are not well protected, either they do not get enough colostrum or they get it too late. Leaving newborn

Calves rely on colostrum for immunity.

To page 32

Calves with insufficient colostrum are more likely to be unthrifty, more prone to infection.”

Dairy News // july 26, 201132

animal health

calves on cows is not insurance against prob-lems; in one study, 33% of calves left with their dams had not suckled after 6 hours, and 20%

had not suckled after 18 hours

While this may seem surprising, many dairy cows have poor mother-ing ability.

Calves become sepa-

Colostrum vital for new-born calvesFrom page 31 rated within a herd or by

walking under electric tapes, and cold, wet weather causes hypother-mia, making calves slow to find a drink after birth.

Even with good practice, some calves do not manage to absorb sufficient antibodies.

This may be due to poor curd formation in the calf’s stomach which reduces antibody absorp-tion.

Adding rennet to colostrum (2 tsp of rennet to 1 L of colostrum) will assist clot formation, but add it just before feeding or the milk will clot in the calf feeder.

Colostrum uptake can be measured directly by testing serum for antibodies, but this is expensive so indirect tests are more common. Most often the protein γ-glutamyl transferase (GGT) is measured in serum. It is secreted in colostrum and absorbed alongside antibodies.

Total serum protein can also be measured with a refractometer. These are tools used to investigate disease outbreaks.

Provided good sys-tems for frequent calf pick-up and tube feeding are in place, routine test-ing should not be needed; but where calves fail to thrive, or there is higher than expected disease in-cidence, the effectiveness of newborn calf manage-ment should be assessed.

Purchase contracts for calves sold for rearing often include testing GGT levels in a sample of calves as evidence of good colostrum feeding management.

A dairy cow produces 16-20 L of colostrum, but

only 4-6 L are needed to supply the calf with antibodies. Provided ‘gold colostrum’ is saved for newborn calves, the rest can be sold; however, colostrum is still a valu-able feed even after.

Colostrum fats are more easily digested, colostrum is energy rich (40-50% more en-ergy than the equivalent amount of whole milk) and antibodies provide some protection by acting locally in the gut, e.g. in a rotavirus outbreak. This means the potential income from colostrum sales should be care-fully weighed against the potential benefits on calf rearing and good growth rates.

Getting calves off to a good start will help to ensure well grown heifers coming into the herd in two years’ time.

Colostrum stores well, though any containing blood should be fed fresh. It will keep for a week in cold weather or stored in a refrigerator.

For medium-term storage it can be fer-mented using yoghurt as a starter (1 L of yoghurt, or one packet of yoghurt starter/20 L colostrum, and stir twice daily).

Do not put mastitis colostrum or colostrum containing antibiotics into yoghurt mixes; the antibiotics kill the starter culture.

The yoghurt mix can be diluted before feeding at a rate of 2 L colos-trum/1 L of hot water. Use the culture to start the next batch. For long-term storage, colostrum should be frozen. Allow it to thaw slowly; micro-waving it will denature the antibodies.

in brief

Calves with insufficient colostrum are more prone to infection.

REMOVING THE horns of cattle is a necessary farm practice to prevent the risk of injuries to stockpersons and other animals.

Disbudding of young calves before the horn bud develops and becomes fixed to the skull is preferable to amputation dehorning as it is con-sidered to be less painful

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Dairy News // july 26, 2011 33

animal health

More supplements and better profitsDebate persists on the benefits or otherwise of supplementary feeds in New Zealand, with the general result being confusion about what to do. Decisions on when to feed supplement and make money are not complicated provided you stick to the following key principles:

• Cost of milk production ($/kgMS) is the primary driver of profitability in New Zealand dairy farming. The rule of thumb based on DairyNZ research results is that the maximum price that can be paid for a supplement is 0.45% of the MS price/MJ ME. In other words, when milk price is: $7.50/kgMS, the maximum price paid for supplements should be (0.45 x 7.50) = 3.4c/MJ ME. This means:

An 11 MJ ME supplement should be purchased for less than $375/tonne DM

An 12 MJ ME supplement should be purchased for less than $410/tonne DM.

$5.50/kgMS, the maximum price paid for supplements should be (0.45*5.50) = 2.5c/MJ ME. This means:

An 11 MJ ME supplement should be purchased for less than $275/tonne DM

An 12 MJ ME supplement should be purchased for less than $300/tone.

• Spring, autumn and winter pastures tend to be excellent feeds for dairy cows.

They are highly digestible (75-85%) when proper grazing management is employed. They have sufficient high quality protein to allow cows to produce up to 2.5 kgMS/day and they have ad-equate levels of fibre. Therefore, when you have sufficient pasture, you do not need to supplement.

• Sufficient pasture is defined as the amount of pasture required to main-tain the appropriate grazing rotation for the time of the year and the correct post-grazing residual – even, consistent, grazing height (3.5-4cm = 7-8 clicks on the rising plate meter for ryegrass clover pastures).

The key to achieving these residuals is to get the quality and amount offered right, i.e. pre-grazing cover. When cows are offered more than 3000 kg DM/ha (winter plate meter formula) it is hard for cows to achieve the target residual without compromising production. This

is not an issue for high stocked farms.• If you have sufficient pasture and

you offer cows a supplement, they will waste pasture (substitution). This will reduce pasture utilisation and quality, and ultimately profitability.

• If you do not have sufficient pas-ture, cows will produce more milk if you offer them the correct supplement.

• The first limiting nutrient for a grazing cow is energy.

Energy can be provided by carbo-hydrate (fibre, starch, sugar), fat, or protein. However, if two feeds have the same amount of ME, the supplement with more soluble sugars and starch (SSS) will generally produce more milk protein and less milk fat than the fibre-based supplement.

Therefore, when purchasing a supple-ment you need to firstly find the least expensive (per MJ ME), high quality (greater than 10.5 MJ ME/kg DM) form of energy that you can store and feed out with minimal waste and, secondly, con-sider the milkfat and protein response from the supplement.

• The MS response on many New Zealand dairy farms is less than the po-tential response due to wastage of sup-plement and pasture.

This will not improve by changing the supplement being fed. The potential response to energy supplements when used properly is on average 7.5-8.0g MS/MJ ME. This means that there is a large amount of physical wastage of supplement and pasture – supplements are being fed to dairy cows that do not need them.

• Supplements (of any type) are un-likely to reduce empty rates if you have sufficient pasture.

• Grazing cows do not require sup-plementary fibre.

• Avoid unnecessary expenditure on depreciating assets.

Do your homework before purchasing supplementary feed.

Your local distributor:

Freephone: 0800 300 315www.agrifert.co.nz

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Dairy News // july 26, 201134

animal health

Balancing BCS with cow intakeaT THis time of year farmers face the task of balancing cow condition with feed.

The aim should be to get 85% of cows to body condition score (BCS) 5.0. The greatest return from extra feed is increasing the BCS of the lightest cows as shown in the table below. Month before calving

A month out from calving (or when a springer mob is formed) the priority needs to be building aver-age pasture cover (APC). Two years of trials at DairyNZ shows a loss of about 0.2 BCS units and 4kgMS/cow for cows fed 50% of their energy re-quirements each day during the last month before calving. A similar re-striction (in kgDM terms) after calv-ing cost 30kgMS/cow.Strategies when average pasture cover is below target

When APC is below target break down the problem to manageable bits:

• Face your situation – walk the farm, confirm the size of any deficit and develop a plan on how to fill the deficit for the next two weeks

• Share your plan, seek advice• Monitor actual pasture cover

weekly and adjust plan weekly or fortnightly.

Where cover is below target there are a number of options, providing animal welfare is not compromised. These are summarised below:

• Do not speed up the rotation• Prioritise intake to the most vul-

nerable stock: colostrum; milkers; springers then dry cows

• Feed supplements to build cover

• Apply nitrogen• Minimise pugging damage to

protect future growth. Do not speed up rotation

If the actual APC on the farm is below the target, the quickest way to get back on track is to hold the rota-tion length and not speed up, as per the rotation planner until APC is back on target.

If average pasture cover is below target or there is insufficient feed for the milkers there are three options:

1. Supplement the dry cows2. Supplement the milkers to

achieve a consistent, even grazing residual. In early spring (this is 7 clicks on the rising plate meter for ryegrass/clover pastures or 1500kg DM/ha using the formula “clicks” x 140 +500)

3. Dry cow intake is reduced to al-low more feed to be allocated to the milkers.

Ideally, option 3 should not occur (except where there are unexpected weather events that result in pasture being below target or where previous management has not set the farm up well for spring). DairyNZ does not encourage systems that consistently need to underfeed cows as the target cover at calving is not achieved.

However, should pasture cover be below target then the damage must be minimised by recognising and priori-

tising the most vulnerable stock.Prioritise feeding

If cows have to be restricted due to APC being short of target, restrict

cows at the start of calving to mini-mize the impact. Where option three has to be taken, the allocation order needs to be reversed with the order of importance being:

1. Colostrum cows2. Milking cows3. Springers4. Dry cows.The longer the period of under-

feeding, the greater the loss in milk production.

The aim is to feed the colostrum cows and milkers at least 12kg DM/cow for Friesians and 10kg DM/cow for Jerseys grazing to 1500kg DM/ha.

However, when the farm does not have the resources to feed to these levels the milkers can graze lower. Milkers must be offered a minimum of 10kg DM/cow for Friesians and 8kg DM/ cow Jerseys.

These feeding levels will reduce subsequent milk production and pas-ture re-growth.

The extent of the carry-over effect on milk production from underfeed-ing depends on the length of time cows are restricted and grazed lower than 1500kg DM/ha.

The longer the period of under-feeding, the greater the loss. The dry cows and springers then get the bal-ance of area.

However, these stock must be fed at least 5kg DM/cow. Where the minimum feeding levels given above cannot be met, supplement must be purchased or stocking rate reduced.

If possible, get late calvers and any dry stock off the farm. Review cow numbers and cull any cows just making up the numbers.

However, do not reduce numbers so you limit the potential production

for the season.For more information refer to

DairyNZ Farmfact 1-36 – ‘Strate-gies to manage a low pasture cover at calving’.Use supplements to build cover

Use supplements to build pasture cover, not just for milk in the vat. Cost out whether there are supple-ments available that are profitable to feed at the milk price predicted for the season. Sort a system to feed sup-plements that minimises waste and is practical.Apply nitrogen

Apply nitrogen to boost growth providing the soil temperature is greater than 7°C and the soil isn’t saturated. If low soil temperatures/high leaching apply sulphate sulphur.Minimise pugging to protect future growth

Stand off, use an appropriate stand-off area to avoid pugging and over grazing (less than 1100kg DM/ha for dry cows and 1500kg DM/ha for milkers). Avoid effluent run-off into waterways.

Once a day milking is an option to save time and improve cows’ energy status in the spring but it comes at a cost as it reduces the potential milk production for the season.

BCS Change MS responsekgMS $5.50/kgMS

Repro benefits (over two seasons)

Total $/BCS

From3.0-4.0 18.0 $99 $40 $139

From3.5-4.5 12.5 $69 $40 $109

RuleofThumb 15.0 $83 $40 $123

Reproduction and milksolids benefits associated with body condition score for a 500 kg Lwt cow.

Aim to get APC at calving to minimum of 2100 kg DM/ha.

The aim should be to get 85% of cows to body condition score (BCS) 5.0.

Balancing cow condition with feed is crucial.

AN EARLY MAINTENANCE CHECKCould get your cows back to milking sooner

Early check: Metricheck™

Simple cure: Metricure®

1

2

Available only under Veterinary Authorisation. ACVM Registration No: A7394. ®Registered trademark. Intervet/Schering-Plough Animal Health Limited, 33 Whakatiki Street, Upper Hutt. www.intervet.co.nz. Phone: 0800 800 543. MET-246-2011.

THE METRICURE MAINTENANCE PLAN: For top performance

Endometritis can prevent up to 10% of your herd getting back in calf early. Here’s a plan to make sure it doesn‘t hold you back this season.

B GET UNDER THE HOOD: Using your dipstick

Your vet can check your cows with Metricheck.

• Metrichecking gives a rapid, on-the-spot check for endometritis.

• If any pus is detected (Metricheck positive), target treatment to those cows.

• Any pus is bad pus.

C CLEAN AND SERVICE: Get them up and running

Your vet can treat any cases of endometritis with Metricure, the proven, simple way to ensure your cows get back in calf earlier – and get back to milking sooner.

D CALL YOUR VET

Call your vet now to put together an early ‘check and treat’ endometritis plan for your farm.

A VISUAL CHECK: For leaks and wear

Look for all cows likely to be At Risk of endometritis who will have had:

• Assisted calvings

• Induced calvings

• Dead calves/stillbirths

• Twins

• Retained foetal membranes.

R+R_

2270

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Dairy News // july 26, 2011 35

animal health

MasTiTis risK ‘skyrockets’ during wet weather, says Dairy Australia, in a bulletin that makes help-ful suggestions on warding off this costly disease during winter.

Each case of mastitis costs $A250 and is time-consuming, it says.

Mastitis risk has changed during the past five years because of the use of feed pads, stand-off areas and bare paddocks; all have increased the exposure of teats to bacteria.

When conditions get wet, the risk of mastitis skyrockets and many old routines don’t work. Con-sider these four key steps:

Wash and dry all teats before cups-on. On wet or muddy days every teat must be washed and dried with one paper towel per cow.

Strip cows every day to detect, treat and isolate clinical cases.

When cups come off, cover 100% of skin on every teat with disinfectant.

Keep teats clean for an hour after the cows leave the shed. Set up feeding and other routines so cows don’t lie down soon after milking.

Assess whether you have an underlying prob-lem with teat condition, machine function, or other opportunities for bacteria to spread. Seek profes-sional advice. Cultures are needed to determine the bacteria involved.

Dry cow treatment is your best chance to re-move infections and reduce mastitis risk at calv-ing, Dairy Australia says.

Talk to your vet about using blanket antibiotic dry cow therapy and teat sealant.

Costly disease

Avert growing risk of mastitisLarGer HerDs, higher stocking rates, heavy traf-fic areas on laneways and around troughs, and the use of calving pads are helping cause more envi-ronmental mastitis (Strep-tococcus uberis bacteria), says Dairy Australia.

The organisation’s Countdown Downunder project leader, Dr John Penry, says mastitis caused by Strep. uberis had been increasing in

Australia and New Zea-land to the point where 60-70% of mastitis infec-tions where a pathogen can be cultured in the lab are caused by the bacteria. “Strep. uberis is found in cattle manure and can survive for up to two weeks in fresh dung or contaminated mud and straw,” says Penry.

The management of dairy herds has changed

markedly in recent years, increasing cows’ expo-sure to Strep. uberis. “Farms are running larger herds on bigger farms and using higher stocking rates, resulting in heavy traffic areas such as laneways, gate-ways and around water troughs. Management changes also now include calving pads and loafing areas on some farms. “Transition manage-ment now means we can have cows dripping milk before calving. The teat canal is open when the cow lies down to calve and can be exposed to mud and manure.”

The key to control-ling Strep. uberis is to minimise environmental exposure and control cow-to-cow transmission.

Penry says Strep. uberis needs to be controlled at three stages of lactation: drying off, during the transition period and during lactation. At drying off cows should be treated with an antibiotic dry-cow therapy to remove existing infection and prevent infections early in the dry period before the teat canal seals.

During the second stage – transition and

calving – the aim is to minimise the exposure of susceptible cows to faecal material and maximise cow immunity.

Most infections occur within the first few weeks of calving when a cow’s natural defences are low and the udder has been in contact with mud and manure during

calving. “It’s important to ensure cows are milked as close to calving as possible and to monitor closely for signs of clinical mastitis,” says Penry.

During the third stage – lactation – the aim should be to minimise teat-end damage and reduce the incidence of

bacteria on the teat skin. Important practices

for preventing the spread of infection include put-ting cups on clean, dry teats; taking cups off carefully; disinfecting after milking; and keep milking machines well maintained.www.dairyaustralia.com.au/strep-uberis

The risk of mastitis is growing, says Dairy Australia.

AN EARLY MAINTENANCE CHECKCould get your cows back to milking sooner

Early check: Metricheck™

Simple cure: Metricure®

1

2

Available only under Veterinary Authorisation. ACVM Registration No: A7394. ®Registered trademark. Intervet/Schering-Plough Animal Health Limited, 33 Whakatiki Street, Upper Hutt. www.intervet.co.nz. Phone: 0800 800 543. MET-246-2011.

THE METRICURE MAINTENANCE PLAN: For top performance

Endometritis can prevent up to 10% of your herd getting back in calf early. Here’s a plan to make sure it doesn‘t hold you back this season.

B GET UNDER THE HOOD: Using your dipstick

Your vet can check your cows with Metricheck.

• Metrichecking gives a rapid, on-the-spot check for endometritis.

• If any pus is detected (Metricheck positive), target treatment to those cows.

• Any pus is bad pus.

C CLEAN AND SERVICE: Get them up and running

Your vet can treat any cases of endometritis with Metricure, the proven, simple way to ensure your cows get back in calf earlier – and get back to milking sooner.

D CALL YOUR VET

Call your vet now to put together an early ‘check and treat’ endometritis plan for your farm.

A VISUAL CHECK: For leaks and wear

Look for all cows likely to be At Risk of endometritis who will have had:

• Assisted calvings

• Induced calvings

• Dead calves/stillbirths

• Twins

• Retained foetal membranes.

R+R_

2270

3_D

N

NU

M55

97

superior dairy technologyAsk your dealer for a Numedic EVENSPREAD. Visit www.numedic.co.nz or call 0800 686 334 for more info

Choice of irrigator for AgResearch’s Tokonui Research Farm

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Dairy News // july 26, 201136

calving

Labour, milk savings in calf schemetony hoPkinson

as THe value of milk rises and the costs of calf rearing also rise, farm-ers are looking for ways to economise while still rearing quality replace-ments.

Agrifeeds, well known throughout New Zealand for its molasses range of products, is promoting RumenX, the next-generation in calf feeds for superior rumen development that is also a customised programme de-signed to help farmers save money while still achieving the goal of rear-ing top quality replacement stock.

RumenX comes with a customised calf rearing system that allows for earlier weaning off milk at 32 days of age meaning less labour is required while still achieving top results.

RumenX is an extruded grain based pelletised meal designed to ac-celerate and enhance rumen papillae development in calves, starting from day 4 of age. The extrusion process takes quality ingredients and makes

the starch and protein components of the feed more digestible than the original ingredients. It is these extru-sion processes that presents the nu-trients in a form the young calf can break down to begin the rumen devel-opment from such a young age.

The bacteria present in the rumen slowly break down the starch utilis-ing the energy to produce increased volumes of Volatile Fatty Acids, nec-essary for accelerated papillae and rumen wall development, quicker than with conventional forages

As a result of the improved rumen development and improved feed con-version efficiency, milk or CMR in-takes are reduced to once-a-day feed-ing earlier at 19 days of age and are able to be weaned off milk at day 32, but only when they are consuming the recommended dry matter from both Rumenx and meal. Rumenx reared calves consume less milk (84 L vs. 220 L) and as a consequence of less milk in the diet farmers are re-porting reduced incidences of scours and achieving similar growth rates to

calves reared under traditional rear-ing regimes.

Improved rumen papillae devel-opment means calves are better pre-pared to digest and absorb nutrients from other feeds and pasture later in life. These are life time benefits so when Rumenx reared calves enter the herd they are better prepared to extract more nutrients and therefore produce more milk solids.

Horowhenua farmer Jared Whit-field raised 150 calves last season on the RumenX programme.

“I used it because the programme made sense and the animal’s rumen capacity is noticeably more which has led to faster growth rates.”

He was interested in the labour and milk savings.

At a recent weighing his 150 head averaged 15 kg/head more than at the same time 12 months previously so will easily achieve the live weights he wants before they enter the milking herd. tel. 0800 42 47 43www.agrifeeds.co.nz

wHy wOULD a dairy farmer ex-change tried-and-tested dairy-cup rubber liners for a silicone variety?

New silicone liner supplier Moo-Tube cites four reasons to make the switch: durability, cost efficiency, animal health and quality.

Its liners are made, tested and certified in Germany.

“Though 90% of the mar-ket is for rubberware, we

have a solution that gives farmers a better product, lasts 3-4 times longer and is comfortable on your pocket,” MooTube says.

Silicone liners should excite farmers, even though changing is “hard and tiring.”

Silicone liners offer important advantages, the company says. They resist splitting, tearing and discolouring and have low ab-sorption.

“Silicone is resistant to tem-perature changes, will not melt in summer or crack and split in winter. Because of this it will hold on to fittings better than rubber.

“Silicone’s durability ensures less wastage from bursting and dislodging from fittings.”

MooTube says life expectan-cy of silicon tubes and liners is greater than that of rubber.

“Silicone liners, during tests and practice experiences,

have proven to have at least 3 times longer lifespan than rubber.”

Silicone will not develop cracks so there is no place for bacteria.email paul@mootube.co.nz

German silicone liners ‘won’t split, crack’

The promotion finishes 30 September 2011. Go to www.crt.co.nz to see the full terms and conditions.

Qualifying products• RelianceCalfMilkReplacer• RelianceWheyCalfPowder• RelianceStartmix*• RelianceCalf2000*• RelianceCalf16%*

Here’s how it works. For every tonne of Reliance calf-rearing qualifying products you purchase you’ll be automatically entered into the draw to win one of two Suzuki KingQuad 300 farmbikes.Therewillbetwoprizedraws–onefrompurchasesmadeatCRTFarmCentres inCRT’sSouthCanterbury,OtagoandSouthlandregions,theotherfrom purchasesmadeatCRTFarmCentresinCRT’sCanterbury,NorthCanterbury andTasman/WestCoastregions. For more inFormation get into your local crt Farmcentre,

or contact a reliance Feed expert near you on 0800 278 583.

r e l i a n c e F e e d s a r e a p r o d u c t o F c r t c o - o p e r at i v e

Give them a head start this season with the Reliance range of quality calf rearing products.

REV up your calf rearingwith Reliance

* These products contain the GutBoostasystem which improves digestionand keepscalves healthy.

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Dairy News // july 26, 2011 37

calving

Thumbs up for fibre-based feed

Northland farmer Lance Oliver says calves rumen developed to digest grass at an early stage forage better.

iF a cow is going to be reared and milked off grass all its life, it stands to reason the best supple-ment from day one is a fibre-based one, says a Reporoa-based feed firm.

Fibre-Fresh’s Fresh-start Calf Development programme is based on two such feeds and while the programme has gained the thumbs up from several rearers who tried it in the autumn, the firm is investing in work at Massey to try to quantify the benefits.

Massey’s research is looking at rumen devel-opment, growth, and per-formance of heifer calves in their first lactation.

“We think we pro-duce bigger calves and ultimately heifers when they enter the herd,” says managing director Michael Bell.

Weight differences at weaning compared with grain-based meals will be minimal, but it is that transition from meal to grass, and growth beyond, where grazing animals started on the firm’s feeds pull ahead, he adds.

“We’re not saying [grain-based] meal doesn’t produce a good calf; it does; but it doesn’t set them up to eat grass... that’s why they suffer a weaning check.”

The difference is in rumen development. A calf raised on the Fresh-start programme will have up to 50% more ru-men surface area at seven weeks old than one raised on meal alone, says the firm.

The two feeds in the programme, Fiber-Start and FiberGain, are lucerne-based, with “captured” maize and oats added.

The capturing process entails harvest-ing doughy-ripe grain, cracking it, then ferment-ing with the fibre before vacuum packing to preserve the product.

FiberStart is for use from zero to eight weeks and contains 16% captured oats, while FiberGain is for calves from five weeks onwards, containing 46% captured maize.

During weeks five to eight, an ad lib 50/50 mix of FiberStart and Fiber-

Gain is recommended.“FiberStart should

be offered ad lib from day one. We get calves ruminating within 7 to 10 days,” Bell told Dairy News.

According to the company, switching to the Fiber Fresh calf rear-ing system has provided a Northland farm with increased profits, consid-erable time savings and calves a lot more resilient to drought.

Lance and Stephanie Oliver used the Fiber Fresh calf rearing system for the first time in 2009 for both their autumn and spring Friesian calves.

Along with a notice-ably improved transi-tion onto grass with no weaning check, Lance claims the superior ru-men development Fiber Fresh provided enabled his calves to cope well with the prolonged drought over the 2009-10 summer.

The Olivers and their equity partners, Lance’s parents Harvey and Delwyn, milk 480 cows in Umawera, 50km south of Kaitaia.

While dry summers are common in that area, the 2009-10 summer was particularly severe.

“We had a massive drought that year,” says Oliver.

“Our first two crops of Fiber Fresh calves had to endure pretty much six months of virtually no rain, and they came through it much better than any other calves I’ve had.

‘I’m sure it was because their rumens were developed to digest grass at an earlier age so they were able to forage better than ever before. There wasn’t really any green feed for them to eat for several months so they were just eating seed head and rough dry grass but they did really well on it.”

Prior to using Fiber Fresh, Oliver says his calves would ‘crumble’ when he weaned them off milk.

They also had green runny scours, which suggested they were not digesting the grass properly.

In comparison, Fiber Fresh-reared calves have

never had green scours and take to grass quicker with no weaning check. Oliver finds the calves are now a lot cleaner

around the tail.Apart from the health

benefits, Fiber Fresh is also benefitting Oli-ver’s bottom line.

Dairy News // july 26, 201138

calving

Treat bobby calves wellDUriNG CaLViNG season the onus is on farmers to be aware of their obligations under the Animal Welfare Act and follow best practice guidelines for the man-agement of calves.

The treatment of bobby calves is some-thing authorities look out for when visiting farms during this time of the season.

The bobby calf best practice guidelines de-veloped in 2007 spell out

the requirements under the Animal Welfare Act 1999. Here are some practical considerations for you to reinforce on your farm.

How do I know if my calves are fit for trans-port?

Calves must be a min-imum of four days old be-fore being presented for slaughter. In addition to being a minimum of four days old before transport, the following signs will

indicate if a calf is fit for transport:

• Healthy – no visible disease (e.g. scours), de-formity, injury, blindness or disability. Eyes bright, not dull or shrunken. Ears are upright.

• Strong – able to bear weight on all four limbs. Able to rise from a lying position unassisted and move freely around the pen.

• Hooves – firm hooves on which the soles show wear (indicat-ing that they have been mobile), not round and soft hooves.

• Navel – dry and withered, not pink/red, raw or fleshy.

• Fed – at least half the day’s ration of colostrum (or colostrums substitute) is given not more than two hours before pick-up.

Essentials for bobby calf collection pens

• Bobby calf pens should provide a dry and draught-free environment sheltered from prevailing winds.

• If floor is slatted, make sure there are no under floor draughts (e.g. use a wind break material or timber to board up gaps).

• Make sure the pen is safe – no sharp edges, any gaps in flooring/walls/ramps are smaller than the size of a new-born’s hoof.

• Ensure temporary

coverings/windbreaks (e.g. tarpaulins) are well secured.

• Make sure calves have access to clean fresh drinking water.

• Make it easy for the truck driver

• Do not present calves unfit for transport. Calves should be individually assessed for fitness to transport. Unfit animals must be withheld until fit or humanely destroyed.

• Where possible, as-sist the truck driver with loading the animals. Not only does this make the job easier, it enables you to ensure the animals are loaded correctly.

• Make sure there is easy access for the truck. A solid base with no overhanging objects is preferred, as this makes it quicker/easier to load the calves.

• If you have a raised pen (not a roadside crate), ensure it is available for the truck driver to use. Raised pens should be 70-100 cm off the ground.

• If holding calves in a large pen, provide a means of controlling animal movement, e.g. boards or a moveable gate, so that animals are easier to catch.

Other things for you to consider:

• Any unfit or un-wanted calves must be destroyed humanely.

Soil Matters

Peter Burton

“The marked reduction in calcium/magnesium related metabolic disorders in animals during spring as well as a steady improvement in overall animal health, as a result of a single application of dolomite, are the major reasons for the steady increase in demand for dolomite.” To read more visit www.dolomite.co.nz or call 0800 436 566

Phone: 06-329 2772, Fax: 06-329 2782PO Box 67, Bunnythorpe. Email: brent.smith.trailers@inspire.net.nzwebsite: www.brentsmithtrailers.co.nzFREEphone: 0800-509 777 BS10

■ Hot dip galvanised frame & crate

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The new company on the block that wants to provide every farmer the chance to have silicone liners and tubing for their dairy farming requirements. Pull the udder one!Wow! Why would you want to make changes to a round wheel? The MooTube™ wheel goes faster lasts a lot longer with their new generation silcone.Why now? MooTube™ is a New Zealand company. They have a senior NZ partner called Wayne Kevey who co-authored research papers on silicone liners over 20 years ago highlighting the benefits.

They first needed to get across the following hurdles:• Is MooTube™ silicone going to excite the consumer? Hell yes – the cows love it!• Is the new silware going to have a big impact on your business? Heck yes!

Is this company ground breaking and doing something fresh?

Heck yes! Silicone liners x 4 under $70. That’s ground-breaking all right!

For sales and agency opportunities please contact: Paul@mootube.co.nz. Ph 021-383 950

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Dairy News // july 26, 201140

calving

‘Better to feed milk replacers’aT a $7.15/kgMS payout, the eco-nomics of feeding cow milk to calves doesn’t stack up, says Viterra chief nutritionist Alun Faulkner.

Since milk has become an ex-pensive commodity, dairy farmers should ensure every drop ends up going to market, he says.

Though dairy farmers have tradi-tionally fed milk from vats to calves, it would be economically unwise to do this given the proposed payout. Better economies arise from feed-ing calf milk replacers (CMRs) such as NRM Power Whey, rather than whole milk, to maximise money in the bank, Faulkner says.

“A 20kg bag of NRM Power Whey mixed at 125g/L would pro-duce 160 L of liquid milk. Each 20kg bag costs about $68.00/bag ex-cluding GST. Therefore NRM Power Whey would cost 42c/L.”

Since 1 L of milk contains 8.53% solids, at a payout of $7.15/kgMS, milk is worth 61c/L.

“This is a difference of 19c/L. If

a dairy farmer is rearing 100 calves for 6 weeks and feeding 4/L/calf/day, this equates to a saving of $3192 in milk feeding costs.”

Faulkner also says not only is there a cost saving, but whey-based CMRs will encourage early intake of hard feeds. They have been suc-

cessfully fed to calves for seven years in New Zealand and for 10-15 years in Europe.

The products are scientifically formulated in Holland to strict quali-ty standards that meet the nutritional requirements of a young calf up until weaning, Faulkner says.

FeeDiNG CaLVes milk has just got easier with a new calfateria from McKee Plastics.

This is the only open mobile feed-er that can transport milk in its open bays, the company says.

Made from high impact, UV-resistant polyethylene plas-tic, the calfaterias are avail-able with 30, 40, 50 and 60 teats, and with 550 L and 750 L tanks. “Fully open-yet-closed milk troughs make cleaning and hygiene a breeze,” says McKee Plastics.

“Interconnecting milk bays en-sure continuous flow throughout the whole feeder or just a portion.”

Operation is easy, in three steps:• Mix milk in calfateria tank – no

double handling.• Transport mobile unit to desired

location. Release valves, letting milk fill bays. Feeder will self-level as re-quired.

• Cleaning – simple with mainte-nance kit supplied.

The calfaterias come in varied calibrated capacity options, self lev-elling feeding capabilities and high and low towing capacity.

They are available in tandem or single axle galvanised trailers.tel. 0800 625 826www.mckeeplastics.co.nz

Calf feeding easy

Feeding milk replacers is a cheaper option, says Alun Faulkner, Viterra.

The game is up. Your replacements bench is a good indicator as to how well you’ll fi nish the game. On the farm the heifers you bring into the herd each season will have an immediate impact on your bottom line – for better or for worse.

Farmers who have weaned and reared their calves on the freshstart® calf development program report better quality animals from weaning right through to herd replacements. The new milkers are introduced at the peak of their game and contribute strongly to your milk returns from day one. Additionally, indicative evidence suggests these heifers carry superior genes which can be passed on from generation to generation (Phenotypic Plasticity).

The freshstart® calf development program is based on the simple premise that you cannot prepare a calf for grass (fi bre) by feeding a non-fi bre product. It’s a common sense approach to stimulating full stomach development in animals (ruminants) that spend a lifetime consuming pasture.

Better still, the freshstart® calf development program is not expensive. In fact, it is about the same cost as any meal based programme.

So get your profi ts over the advantage line. Check your big-game strategy online at www.fresh-start.co.nz and come away a winner with a strong replacements bench.

www.fi ber-fresh.com

Have you thought about the quality of your replacements?

© IC

ON

707

5 FI

B

STAGE ONE STAGE TWO

For information on the freshstart® calf development program visit us online at www.fresh-start.co.nz or call 0800 545 545.

Dairy News // july 26, 2011 41

calving

Calves must get the best start before they become successful milking cows.

Good start leads to greater milk yieldiT is no secret that well-grown heifers make much more successful milking cows. And growing them well starts from the day they are born.

To set a dairy cow up for a long, productive life you must give her the best possible start. Extra effort now will pay dividends throughout her milking life. The first few hours are crucial.Calves need to be fed high quality colostrum

• All calves, including bobby calves, must receive adequate fresh colostrum within the first 24 hours of life and should be fed colostrum, or a colostrum substitute, for at least the first four days of life.

• To get enough antibodies, calves should receive at least 12% of their liveweight in good quality colostrums within the first 12 hours of life, preferably in the one feed (that is 3.5 L for a 30 kg calf).Handle calves gently and with care at all times

• Always handle calves gently and with care. Do not allow anyone to throw, hit or drag a calf at any time.

• Electric prodders must not be used on calves.

Calves should be provided with shelter

• All calves, including bobby calves, must be protected from ex-tremes of weather, especially wind, rain and cold at all times.

• Calves that are not with their dams must be provided with shelter so that they can stay warm and dry. They should be moved to a shel-tered enclosure as soon as practical after birth.

• Keep calves in a safe and shel-tered enclosure at all times. There should be minimal risk of injury to either animal or human, e.g. from slipping or striking sharp objects. Make regular health checks.

• Calves must be checked twice

daily for signs of ill-health and be given treatment if any fall ill.Ensure good routine hygiene practices.

• Scrub all feeding equipment well with hot water and detergent.

Biosecurity plan for the calf shed

• Calves are vulnerable to disease and need regular health checks, including navels.

• The isolation or sick bay area should be well separated from other pens with separate access to reduce

cross-contamination.Calf shed recording systems

• Have a system to track individ-ual calves that need extra checks, and sick calves being treated.

• Record all treatments.Euthanasia policy

• Most farms have a few calves that are not viable. These need to be destroyed humanely.

• Obtain advice if you are uncer-tain about this management area. In the first few days and weeks, re-placements have to be well looked after.Calves need to be fed well to achieve weaning weights

• Feed calves well to rapidly achieve weaning weight with a well developed rumen.

• Calves should be fed at the same times each day to minimise stress.

• As well as milk, or milk re-placer, always have hay and meal available as this helps speed the maturity of the rumen and allows earlier weaning.

Calves should have access to

fresh water• Always ensure your calves

have access to large quantities of clean water.

Calves should be provided with shelter.

• Calf pens must be fit for pur-pose and well maintained.

• Bedding areas must be com-fortable, clean and dry, with ad-equate ventilation to ensure that ammonia gas does not build up.

• Exposed concrete, bare earth and mud are not acceptable.Make regular health checks

• Calves must be checked twice daily for signs of ill-health and treatment given if any fall ill. Re-move sick calves promptly to a sick bay.

• Check that:- Noses are clear of discharges,

and are moist and cool.- Calves are alert and have re-

sponsive ears, with no infection around the ear tag.

- Navels are clear of infection.- Mouths are clear of ulcers.- Calves have shiny, supple

coats. If a calf’s pinched skin is slow to return to normal it may be dehydrated.Calves need electrolytes

- You vaccinate, treat for para-sites and provide access to shelter.

Ensure good routine hygiene practices

• Scrub all feeding equipment well with hot water and detergent.

• Spray pens weekly with a broad spectrum disinfectant.

• Frequently clean and disinfect pens where sick calves are treated.

• Calves of the same age should stay in the same pen. However, small or unthrifty calves may be better off with a younger group.Disbudding

• Disbudding is easier at around three weeks old, before the horn bud attaches to the bone of the skull.• Source: DairyNZ

All calves, including bobby calves, must receive adequate fresh colostrum within the first 24 hours of life...

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Dairy News // july 26, 201142

machinery & products

a FasT, inexpensive ro-tary drain digger/cleaner – Vortex from Fieldmas-ter – deals with surface flooding and ponding on paddocks.

Winter rain and sea-sonal storms can damage pasture causing grass to ‘sour’ and die off, requiring resowing, the company points out.

The Vortex prevents waterlogging or helps solve the problem where it has occurred.

The machine mounts on tractor 3-point link-age. It has a high-speed 6-blade rotor designed for 540 rpm rotation, for cutting channels to drains or streams. Minimum power requirement is 40 hp.

Operating features include a safety clutch,

adjustable discharge chute and depth control shoe.

The concave shape of the formed drain is cattle friendly and retains its shape longer than a U-trench dug by an excavator, Fieldmaster says.The machine has lots

of on-farm uses – gut-ters on farm track edges, leading stormwater away from dairy sheds and other buildings, handling overflow drainage from ponds, and even making planting beds for hedge-rows and raised gardens. tel. 0800 500 275

Fast way to prevent ponding

Low levels of calcium can affect milksolids production, mating outcomes and growth rates of young stock. Supplementing your herd with Calcimate™ will keep them performing at their peak and improve your bottom line.

Cows absorb an average of 70% of calcium in Calcimate™ compared with only 30% of calcium in your pasture.

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Dairy News // july 26, 2011 43

machinery & products

waTer TaNK level is monitored by a device that ‘talks’ wirelessly to a display inside your house.

It also continuously updates capacity time to empty and the trend of tank water-level changes.

“Never run low on water again,” says Ken Child (pictured right), of Smart Water, which exhibited at National Fieldays.

“It will learn your normal household water usage trends and alert you if your water usage increases beyond reason-able levels.”tel. 0800 40 14 14www.smartwatertech.co.nz

watch tank level from your sofa

Kickback for power ‘farmers’neil keating

POwer ‘FarMiNG’ – not to be confused with the Morrinsville tractor and machinery company – is how a Ramarama, Auckland, firm describes its offering of solar elec-tricity (PV) generation for any grid-connected building owner.

As sure as your building’s roof points to the sky, it can be used to generate power and very likely cash too, says David Keppel, managing director of What Power Crisis.

“We call it ‘power farming’ – you farm

power on your property. This reduces spending on mains power and gener-ates cash from selling Meridian Energy any power not needed.”

There are two keys to this: Meridian’s willing-ness to pay a good price for household-generated power, and a ’grid con-nect’ inverter made by Enasolar Ltd, Christ-church.

Formerly, excess pow-er from PV set-ups had to be stored in expensive batteries. Now the excess goes up the power line – no batteries needed.

Says Keppel, “With prices low for PV mod-ules, and this NZ made

inverter, there’s never been better value in grid-connected solar power.

“An entry-level system can have as few as five PV modules, then later be expanded to 14 modules.

“With built-in AC and DC switchgear saving about $300, and an upgrade path to a 3kW model (with 21 PV modules) we can provide a New Zealand-made system that’s cheaper to buy and install, and technically better than imported systems.”

A web statistics package built into the Enasolar inverter allows a customer with broad-band to monitor their system on a home PC, or externally via a laptop or smartphone. This option is free with the Enasolar 2kW-GT.

The inverter comes with a 5-year warranty. It must be installed by a registered electrician.

View the company’s live system at www.whatpowercrisis.homeip.net:81/tel. 0508 942 876

Starter packa GriD connect starter pack from What Power Cri-sis costs $9995+GST, including the NZ-made Ena-solar 2.0 inverter, ten 190W PV modules, flat tin roof mounts and DC cabling.

This system will generate about 2700kWH an-nually in Auckland under ideal conditions. (Each module has output of about 257kWh annually in Auckland.) Up to 14 Panels can be installed in total.

a LarGer 55-panel 3-phase system, using a Ger-man 3-phase inverter, DC cabling and flat tin roof mounts costs $49,995 + GST. This system will gen-erate about the load required for an average house, or 14,500kWh annually in Auckland

The company charges $195 for a site suitability audit, deductible from any system purchased. The audit includes roof angle and shading losses to more accurately estimate energy generating potential.

Farm business pack

If your roof points upward, generate power.

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Dairy News // july 26, 201144

machinery & products

Drencher gong

Light, food-grade tanks suit hot, coldHOT Or cold water, or milk products, are equal-ly capable of storage in a range of lightweight stainless steel tanks made in New Zealand.

The food-grade tanks, warranted for 25 years,

are so light even a 3000 L model can be carried by two men. This makes installation and washing easy and simple, says the distributor, Rushton Farmer, of Auckland.

Food/beverage indus-

try uses so far include yoghurt, fruit juice and bottled spring water.

Other industries are using them for hot water storage in manufacturing and component testing. They are also used by

many householders to store rainwater.

The tanks are lighter and stronger than plastic tanks of equivalent capacity.

Construction is by welding – no rivets or

silicone, no plastic parts, no weak points, no risk of splitting. Elegant corrugations ensure wall strength and a nicely textured appearance.

Each tank has one in-let, two or three outlets and an overflow. Outlet positions are standard but may be altered to suit.

For water-only uses several tanks can be ganged togather by stain-less steel bellows-type flexible tube.

Four sizes are avail-able: 500L (850mm dia x 1120), 1000L (850 dia x 2020), 1000L (1050 dia x 1500), 3000L (1420 dia x

2160), and 5000L (1700 dia x 2460).

Prices (including GST): 500L $1050, 1000L $1495, 3000L $2895, 5000L $3995.

Freight is extra, nor-mally quoted to a buyer’s nearest main town. tel. 021 230 1863rushtonfarmer@or-con.net.nz

aGriTeCH COMPaNy Simcro has won another prize for its Optiline drencher.

The drencher took a Silver IDEA award in the medical and scientific category of the 2011 Industrial Design Excellence Awards (IDEA) awards announced July 1 by the Industrial Design Society of America.

Simcro was the only New Zealand company to win an award in this category. Out of 524 finalists, 27 won gold awards, 68 silver and 96 bronze.

“The IDEA programme is considered by many as the ‘Oscars’ of design competitions because the judg-ing process is rigorous and judged by the experts in their field,” said IDSA’s chief executive Clive Roux. The judges cited Simcro for its commitment to design excellence.

The competition for places in 2011 was the most intense in the history of the awards. Three additional judges had to be drafted. www.simcro.com

Contact your local rural supplies merchant or phone 0800 266 258

Serious about Fencing!More electric fence options, it just gets easier!

Multi WireTread-In Posts* Unique angled clip prevents

unintentional tape detachment

* Unique foot wedge design provides superior holding performance

* Heavy duty, UV resistant polymer

Dairy News // july 26, 2011 45

machinery & products

a PiGTaiL post from Strainrite Fencing is reckoned to lessen the work of erecting break fencing.

The Supalight pigtail has a 6mm galvanised spring steel shaft and is much lighter than the company’s 7mm Gold

Foot pigtails. “It works for some of

the higher volume users,” says general manager Brian Collins.

“If they’re carrying a lot of posts, they’re a bit lighter to carry around the farm.

“ It’s targeted at that

end of the market; there seems to be demand for a lightweight post.”

And they’re cheaper too, says Collins. “We’re supplying them to retailers at a competitive price.”

Made at Upper Hutt, the pigtail suits easy

ground; it is not designed for ‘bony’ country where it’s harder to get posts into the ground.

“It’s about matching

the product to the country you’re working in.”tel. 0800 266 258www.strainrite.co.nz

Less yakka in break fencing

BeLL-BOOTH LTD’s Queen of Calves has been ‘in lights’ at a recent American Dairy Science Association conference in New Orleans.

Massey University animal scientist Jean Margerison pre-sented research showing the calf feed product increased milk production 12% in con-trolled studies on 40 animals.

On-farm survey data involv-ing 6900 cows over two lacta-tion cycles showed that farms using the product increased milk production by as much as 18%.

Queen of Calves is a pro-biotic made from marine and land plant extracts. It enhanc-es the nutritional value of milk by increasing its energy con-version, reducing the risk of fat deposition and promoting calf growth during the early milk feeding phase.

The company says Queen of Calves can produce an extra 49kg MS/heifer in the first lac-tation and $367 extra revenue per calf.

It costs $60 more than tradi-tional feeding methods.

Margerison, a specialist in

dairy nutrition and lactation physiology, led the Massey re-search team. She did five years research, studying 120 calves for three years of rearing and two lactations.

Her studies compared calves raised on a diet of whole milk with unlimited access to hard feed and straw, with those raised on an identical diet, plus Queen of Calves added to the milk every day from day 19 un-til weaning.

Queen of Calves was found to increase daily growth rates by at least 10%, reduced time

to weaning by about 8 days and produced significantly bigger calves at 12 weeks of age.

Calves reared on it required 9% less whole milk to reach target weight and required 16% less pellet feed to achieve target weight.

Margerison says farmers using Queen of Calves can rear heifers to higher levels of mature weight at mating and entry to the dairy herd, which can reduce herd management costs by reducing the likeli-hood of lameness and improv-ing the chances of conception.

Probiotic pushed to US dairy scientists

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Dairy News // july 26, 201146

motoring

Global ute less prone to trailer swayTHe sway and snaking that can happen to a ve-hicle/trailer combo is less likely in the new global Ford Ranger ute, says the company.

Trailer sway – a trailer swinging from side to side – can quickly escalate and become dif-ficult to counter, risking serious accident, Ford points out.

The company’s ‘trailer sway control’ (TSC) is part of the ‘electronic stability program’ system that comes standard in the Ranger. It uses infor-mation from the sensors on yaw, acceleration and

steering angle. The result is greater driver confi-dence.

TSC in the Ranger will help the driver if snaking occurs, says Matt Bridger, stability control engineer, product development, Ford Aus-tralia.

“For the inexperi-enced, towing can be a daunting experience. You have to adapt your driv-ing technique and pay at-tention to your speed, but even then weather or the actions of other road us-ers can lead to trouble.”

This is where TSC comes in.

But though technology provides an added layer of security, it cannot substitute for drivers displaying caution when towing. Excessive speed, poorly distributed loads and improperly inflated tyres can all influence the trailer stability.

Weather conditions such as slick roads and crosswinds are also fac-tors.

“Once the trailer starts to sway, it can quickly escalate and – unless the appropriate actions are taken – cause a loss of control,” Bridger says. “If you are driving

above a certain speed, the swaying can increase.

“The ESC system monitors these param-eters anyway, so it makes sense that we should use this information to look out for and react to trailer sway as well,” Bridger says.

TSC continuously monitors the yaw rate of the vehicle and compares this to the steering angle.

If swaying is detected without appropriate driver input, the vehicle is designed to react ac-cordingly to correct the instability.

“If it detects a situa-tion where it needs to in-tervene, TSC is designed to make brake and engine interventions based upon the sway severity and lat-eral movements caused.”

For moderate sway,

the front brakes will engage in a left-right alternating pattern to generate a yaw movement in the vehicle that counteracts the trailer sway. For more severe sway, engine torque is reduced to zero and brake pressures are applied to all four wheels in order to reduce the vehicle’s speed below the trailer’s critical speed.

top tips for safer towing• Check tyre pressures and lights on both the trailer and the towing vehicle.

• Make sure your trailer’s load is correctly balanced and secured.

• Reduce your vehicle speed to suit the driving conditions.

• Take extra care when changing lanes and negotiating sharp bends.

Trailer Sway Control from Ford is no substitute for driver care, but can still help.

safety award for HyundaiTwO weeKs after launching in New Zealand the Hyundai Elantra has gained a 5-star safety rating.

The Elantra, a compact sedan now Hyundai’s best-selling car globally, gained the highest safety rating by the Australasian New Car Assessment Pro-gramme (ANCAP). It recommends car buyers con-sider only those vehicles with a 5-star rating.

Hyundai New Zealand chief operating officer Tom Ruddenklau says the rating reflects Hyundai’s commitment to advanced safety technology.

“Hyundai has made safety a priority, but the new Elantra takes safety further,” he says. “It is also the only compact vehicle in the segment with ‘vehicle stability management’, which helps drivers remain in control during critical situations.”

The car’s safety features include ‘electronic sta-bility programme’, six airbags including side cur-tain, anti-skid braking, three point retractable seat-belts for all occupants, plus pretensioners and load limiters on the front seat belts.

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The 2011 Chainless combines subtle refinement with the original

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