SOUTHERN DAIRY HUB February 2019 FIELD DAY...SDH Fundamental aims: ... SDH has leased the farm to...

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SOUTHERN DAIRY HUB February 2019 FIELD DAY

20th February 2019

Lunch kindly supplied by

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Contents

Visitor Health and Safety Requirements .............................................................................................................................. 3

Biosecurity Requirements for Southern Dairy Hub (SDH) Farm Visits ................................................................................. 4

Mission and Strategic Direction of the Southern Dairy Hub ................................................................................................ 5

Southern Dairy Hub Farm Systems Proposal 2018-2021 ..................................................................................................... 7

Farm Systems Map ............................................................................................................................................................. 10

Environmental Update ....................................................................................................................................................... 11

Dietary N intake and effect on blood, urine, faecal and milk nitrogen ............................................................................. 14

Winter 2018 effect of crop type on N indicators in mixed aged cows and rising 1-year old replacements ...................... 17

Soil Mineral N as in indicator of fertiliser N requirements for crops ................................................................................. 20

Farm Systems Summary Season to date ............................................................................................................................ 22

Winter crop feeding plan ................................................................................................................................................... 23

Good practice crop feeding and management for improved environmental and animal care outcomes ........................ 25

Southern Demonstration and Research Farm Ltd - Financials - First Quarter ending 31st August, 2018 ......................... 27

Hub Weekly Farm Update: 14/2/2019 ............................................................................................................................... 31

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Entry onto property by permission and

appointment only.

Contact either:

Business Manager Guy Michaels 027 564 5595 or

Farm Manager Charlie McGregor 027 207 6012

All visitors required to sign in and out accepting farm rules

A farm map will be provided showing any general hazards on the

farm; the manager will instruct you of any new hazards

Visitor Health and Safety Requirements

General Rules

• Communication – sign in and out

• Children on farm – must be under constant adult supervision and only with express

permission of manager

• Reporting – Please notify manager immediately any accidents or near miss

events/hazards

• Drive to the conditions – Max speed of 30km/hr

• Farm bikes – trained operators only, helmet with strap done up at all times, never operate

if under 16 years’ old

• Vehicles – no one to operate farm vehicles without manager’s permission

• Water ponds/troughs – Keep a close eye on children around water sources – do not drink

from farm taps, troughs, water ways

• In emergency – Please report back to farm manager at Assembly point in front of cowshed

• Fire extinguishers – found in farm houses, dairy shed, vehicles, and woolshed

• No smoking in cowshed, buildings, or vehicles

• Firearms – only with approval of farm manager, must hold current licence

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Biosecurity Requirements for Southern Dairy Hub (SDH) Farm

Visits

All visitors must comply with the Biosecurity Requirements when visiting the SDH

• All footwear must be disinfected with materials supplied, upon arrival at and departure

from the SDH farm site. Protective footwear may be borrowed from the SDH upon

request, and must be cleaned thoroughly before its return. People wearing inappropriate

(or no) footwear will not be allowed onto the SDH premises.

• All visitors are expected to wear clean protective clothing, including wet weather gear if

necessary when on the farm(s).

• No farm visits will be allowed, under any circumstances, from anyone within five days of

their arrival in New Zealand from Central or South America, any part of Asia or any part of

Africa. Further restrictions may be applied at any time, dependent upon international

disease status.

• On farm, visiting vehicles must be parked in designated visitor parking areas. Approved

vehicles may only access the farm after washing the undercarriage. This may be repeated

prior to departure but this is up to the operator concerned.

• SDH retains the right at any time to refuse access to any person or persons deemed not

to be complying with these requirements.

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Mission and Strategic Direction of the Southern Dairy Hub

Farmers in the Southland region took the initiative to establish the Southern Dairy Development

Trust (SDDT) and its fully owned registered trading company, the Southland Demonstration

Farm (SDF) in 2007.

The Charitable Trust Deed outlines that the purpose of the trust is for “the promotion of dairy

farming in Southland and West Otago, and to assist, support and encourage existing dairy

farmers and those interested in joining the dairy industry for general educational purposes”.

Following the expiry of the lease on the Southland Demonstration Farm at Wallacetown in 2016

SDDT and SDF approached DairyNZ and AgResearch seeking agreement to establish a

dedicated Southern Dairy Hub (SDH) to facilitate dairying research and extension in the region.

The anticipated benefits are predominantly associated with the ability for farmers, researchers

and the industry body DairyNZ to work together to create new solutions for the Southland/Otago

and New Zealand Dairy industries.

AgResearch, DairyNZ and SDDT have recognised the current scale and growth potential for dairying in Southland. However, there are significant local issues faced by farmers dealing with wet soils, cold winters, and unique environmental issues. The region will require new levels of research and development activity and resourcing to provide solutions that reflect the area’s unique climate and soil conditions. Failing to find solutions to address environmental concerns within the context of long-term sustainable farm systems will impact on the ability of the dairy industry to grow in the region.

SDH Vision:

• To be an internationally recognised, innovative and leading centre of excellence for

dairy farming, comparative research, and extension

SDH Mission:

• Providing economic, social, and environmentally sustainable solutions for the southern

South Island dairy farmers and community

SDH Fundamental aims:

• To improve the performance and protect the viability of existing dairy farms in the

southern South Island.

• To help develop and test new options for dairying in the southern South Island. To

support the responsible and sustainable growth of dairying in the southern South Island.

• To promote the Dairy Industry Strategy.

SDH has leased the farm to the Operating Company (SDRF) for dairy farming and the conduct

of research related to dairy farming.

The Research Advisory Committee and SDH, together with representatives from the Southern

dairy community are currently collating the issues facing farmers in the region, prioritising these

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and finalising the research questions that will be addressed with the farm systems comparisons

commencing June 2018. Once established these systems will run for a minimum of 3 years.

Southern Dairy Hub Research Advisory Committee (RAC)

Who is the research advisory committee?

➢ Dean Alexander – Dairy Farmer (Central Southland) – SDDT/dairy industry ➢ Adam McCall – Dairy Farmer (West Otago) – SDDT/dairy industry ➢ Bruce Thorrold (Chair) – Strategy and Investment Leader DairyNZ ➢ Dawn Dalley – Senior Scientist Feed & Farm Systems DairyNZ ➢ Robyn Dynes – Science Impact Leader Farm Systems & Environment AgResearch ➢ Ross Monaghan – Senior Scientist AgResearch ➢ Mark Robinson – Head of Fonterra Farmsource – Southland & Otago

Research undertaken on the farm will focus on systems based comparative research and trials that

align with the dairy industry strategy as promulgated by DairyNZ (this will set the priority for

research on farm but research outside of this may also be conducted). All parties have the

common goal of ensuring that research is conducted on the farm to support the growth and

development of the Southern dairy industry.

The role of the RAC is to:

a) Review all proposed research to be conducted on the farm, and provide recommendations

to the SDRF board on research trials and activities that can be undertaken on the farm.

b) Actively plan research for the farm, working with SDH to construct a research programme which meets an appropriate standard of science quality, is achievable within the available resources and delivers to the goals of the SDH;

c) Take an active role in linking research opportunities for the farm;

d) Consider the needs of the southern South Island dairy industry;

e) Understand and recognise the relationship between providers and the funders of research and development;

f) Inform the SDRF Board of the risks to the farm, SDRF and SDH arising from actual or proposed research including reputational risks; and risks associated with third parties seeking to have the Company or SDH endorse or support their use of the results or outcomes of scientific research conducted on the farm;

g) Consider commercial imperatives as part of its decision-making;

Submissions for research ideas and priority issues can be sent to the SDH business manager Guy

Michaels - [email protected]

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Southern Dairy Hub Farm Systems Proposal 2018-2021

Background

The Research Advisory Committee (RAC) has held a series of meetings and workshops to discuss

farm systems options for implementation from 1 June 2018 for the next 3 lactation seasons. A

brainstorming session was used to identify issues facing dairy farmers in Southland and Otago.

These issues were collated into 13 themes from which the top 3 were identified.

The top 4 issues were:

1. Fodder beet

2. Nutrient loss reduction

3. Wintering

There is a desire to understand crop vs off-paddock wintering and the impact of infrastructure

on whole system performance, profitability and achieving environmental regulation. Realistically,

however, it will be a 2-3 year timeline before this could be considered on the SDH farm due to the

current lack of infrastructure and the tight budget situation.

The proposed systems have been designed to better understand crop-based wintering in relation

to consequences for environmental impact and profit with the view that the best crop system would

be used as the base farm in the next phase of farm systems comparisons (2021 onwards), that

might include off paddock infrastructure.

Several mitigations to reduce the environmental impact were considered in the pre- experimental

modelling and farmlet design that is described below.

The RAC opted to only consider system changes where there is high confidence in reducing the

environmental impact. There were two emerging mitigations – namely plantain and catch crops -

that have not been considered in the farm systems designs. An additional option within the fodder

beet systems to reduce the environmental impact is lifting the fodder beet in autumn.

In developing the systems, consideration was given to the following factors:

1. Currently SDH is a first year conversion with 80% new pastures and some areas that need drainage, ripping etc to improve performance i.e. pastures are still developing

2. Some leniency in N fertiliser in Year 1 (within defined boundaries) for all systems 3. The staph aureus infection in the herd may require more aggressive culling in the next

couple of years to avoid ongoing issues 4. Young herd with potential for increasing milk production 5. Production must be sufficient for the farm to have credibility with southern farmers 6. Assumed good management practice implementation on all farmlets with respect to grazing

management, reproductive management, calf rearing, fertiliser use etc. 7. Feed to be purchased for mature cattle rather than stock sent out to grazing and

concentrate preferred to silage because of quality and consistency of the product

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As the farm develops the expectation is that performance will improve in all systems – Targets

below:

Table 1: Targets set year by year

2018-19 2019-20 2020-21

MS/cow 450 465 480

MS/ha 1350 1395 1440

N fertiliser on base

farm (kg N/ha)

Up to 250 200 180

Total supplement to

milkers (kg/cow)

7-800 7-800 7-800

The Process

The Standard kale system was set up as the base model in Farmax Dairy. The results of this were

used to generate the key input parameters for the Standard fodder beet system.

Further management changes were considered (reduced N fertiliser, less supplementary feed,

reduced stocking rate, dry off date) for each to generate the parameters of the two reduced impact

systems.

During the modelling process we identified several physical aspects of the farm and a constraint of

OVERSEER that could impede model results being achieved. These are:

1. The pasture growth of the farm (we may have been optimistic on the time to reach potential yield given the early stage of farm conversion).

2. Choice of in-shed supplement and amount that can be consumed during milking 3. The uncertainties associated with N leaching estimates for autumn-grazed fodder beet

crops.

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System Performance and Input Parameters

Table 2: System performance and input parameters

Crop Type

Kale (wintering) + grain as lactation

supplement

Fodder beet (wintering) + fodder

beet as lactation supplement

N In

pu

t

Standard

Environmental

Impact System

≥1300 kg MS/ha (milking platform)

≥ 250 days in milk

Up to 250 kg N/ha for 2018-19

Up to 700 kg/cow lactation

supplement (home grown first, use

driven off pasture deficit)

23% replacement rate

No N applied after 10th April or if soil

temperature <5 °C in spring

≥1300 kg MS/ha (milking platform)

≥ 250 days in milk

Up to 250 kg N/ha for 2018-19

Up to 700 kg/cow lactation

supplement (home grown first, use

driven off pasture deficit)

23 % replacement rate

No N applied after 10th April or if

soil temperature <5 °C in spring

Reduced

Environmental

Impact System

30% lower N leaching

≥ 250 days in milk

23% replacement rate

N applications – Sep, Dec, Feb, Mar

Up to 75 kg N/ha for 2018-19

30% lower N leaching

≥ 250 days in milk

23% replacement rate

N applications – Sep, Dec, Feb,

Mar

Up to 75 kg N/ha for 2018-19

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Farm Systems Map

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Environmental Update

1. Measurement of N leaching losses from autumn- and winter-grazed crops

Autumn- and winter-grazed fodder beet (FB) crops are key to the FB farmlets at the Southern Dairy

Hub. Kale is included in the 2 remaining farmlets, although only as a winter feed supply. To increase

knowledge of the actual environmental impacts of these grazed forage crops, N leaching losses were

being measured in selected treatments during 2018 to provide:

• Quantitative N leaching data for the crops, soils and climate of SDH.

• N leaching comparisons between:

o autumn-grazed v lifted FB

o winter-grazed v lifted FB

o winter-grazed kale

o selected pastures on the milking platform.

Preliminary results to date summarising yields and imposed grazing pressures are shown in Table

3.

Soil mineral N levels and amounts of N leached to date are shown in Figure 1. Due to a relatively

dry winter, drainage totals were initially less than normal; however, a wet November increased

drainage to near typical (May-Dec = 407 mm; July-Sept = 380 mm). Concentrations of N in Leachate

for the autumn grazed fodder beet have peaked and are now declining while those for the winter

grazed fodder beet and kale are yet to peak (as at January 31st). This indicates that there is still

winter deposited urine in the soil profile available to be leached.

Table 3: Crop yields, N contents and stock grazing pressures for the autumn- and winter-

grazed fodder beet and winter-grazed kale crop treatments.

May

grazed

FB

July

grazed

FB

July grazed

Kale

Crop yield (t/ha) 24.4 20.4 15.7

Crop N (kg/ha) 288 199 286

N lost per cow wintered (kg

N/cow)

2.1 2.4

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Figure 1. N leaching (bars) and soil mineral N contents () in crop and pasture treatments.

Leaching results to date; bar depicts the LSD value comparing the amount of N leached from

the grazed fodder beet treatments only.

Summary

• There was little difference in N leaching between lifted and grazed fodder beet treatments.

• N losses from autumn-harvested fodder beet treatments were relatively large, and higher than

the winter-harvested fodder beet.

• Urine N deposited on winter-grazed fodder crops can take until the following winter to fully

leach down the profile – measurements to therefore continue during 2019.

• The dry summer of 2017/2018 may have increased N mineralisation over the late summer-

autumn period and potentially N leaching losses across all treatments.

• There was a slight reduction in N leached with winter-grazed fodder beet over winter grazed

Kale.

• Measured N losses from the pasture sites are similar to modelled.

Future plans

The trial will be repeated in 2019 with 4 treatments: May-grazed fodder beet; May-lifted fodder beet;

July-grazed fodder beet; July-grazed kale.

Grazed Lifted Grazed Lifted Kale Pasture

N leached (

kg/h

a)

0

20

40

60

80

100

120

Soil

Min

N (

kg/h

a)

0

20

40

60

80

100

May harvested fodder beet

July harvested fodder beet

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Figures below show AgResearch installing 348 ceramic cups in their measurement plots for winter

2019. LIFB Paddock 52 has 48 plots of winter crop planted within the trial area to allow

measurements of N leaching to be determined from fodder beet and kale treatments on the same

soil type:

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Dietary N intake and effect on blood, urine, faecal and milk nitrogen

Purpose

To estimate farm system differences in N intake and partitioning throughout the year

Approach

One week per month all paddocks grazed by each herd are plated pre- and post-grazing to

estimate per cow pasture intake. At the same time a pre-graze pasture sample is collected from

each paddock for quality analysis and any supplements being fed at the time are also analysed.

Coinciding with this monitoring activity, four times per year samples of blood, urine, faeces and

milk are collected from 20 monitor cows in each herd during or immediately after each milking on

one day. The first of these samplings occurred mid-January and the next is scheduled for March.

A similar monitoring process is adopted during winter when the cows are grazing winter crops.

Results

We are still waiting on the results of the blood, urine, milk and faeces for the January samples so at

this stage can only report on the pasture quality results since August 2018.

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Figure 2: Monthly pasture dry matter % for the 4 farm systems

Figure 3: Monthly pasture crude protein % for the 4 farm systems

10

12

14

16

18

20

22

24

26

Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19

DM

%

LI FB LI Kale Std FB Std Kale

10

12

14

16

18

20

22

24

Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19

Cru

de

pro

tein

%

LI FB LI Kale Std FB Std Kale

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Figure 4: Monthly pasture metabolizable energy (ME) for the 4 farm systems

Preliminary findings

• No consistent differences or trends measure in pasture quality between the farm systems

• In general average crude protein levels are low, despite high clover content in many pastures

• High quality pasture was on offer through spring but since November there has been a wide

range in the results between paddocks

• High variability in pasture nutritive value within and between months is most likely driven by:

o Cultivar effects

o New grass vs old pasture

o Previous grazing management

o Soil type and landscape features

o Effluent vs non effluent areas

• Spring 2018 sown pastures are currently higher in crude protein and ME and lower in dry

matter than older pastures

• A larger dataset is required to investigate the impact of farm system management, cultivar and

other factors on pasture quality.

10.0

10.5

11.0

11.5

12.0

12.5

13.0

Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19

ME

MJ/

kg D

M

LI FB LI Kale Std FB Std Kale

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Winter 2018 effect of crop type on N indicators in mixed aged cows

and rising 1-year old replacements

Purpose

To investigate the effect of crop type on nitrogen intake and blood nitrogen parameters

Approach

Monthly during the winter the dry matter yield of each crop paddock was determined and samples

of crop and supplement were collected for quality analysis. Cows were transitioned onto their diets

according to recommended industry good management practice.

Cows were offered the following amounts of crop and supplement (kg DM/cow/day)

Table 4: Winter feed allocation, estimated crop utilisation and DMI for each treatment

Kale Fodder beet Baleage PKE Estimated

crop

utilisation

Estimated DMI

kg/day

Kale cows 8.5 3.0 2.7 82% 12.7

Fodder

beet cows

10.9 3.0 - 91% 12.9

Kale R1’s 4.8 3.3 - 77% 7.0

Fodder

beet R1’s

5.0 3.3 - 70% 6.8

In mid-July blood samples were collected from 20 monitor cows in each farmlet for mineral, urea

and glucose determination. Blood samples were collected from a subset of R1’s for the same

analysis.

Results

Table 5: Average crop and supplement quality parameters

DM% Crude Protein ME P Ca Mg

Baleage 35.2 14.7 9.9 0.34 0.61 0.20

Kale 12.7 16.7 12.2 0.28 1.18 0.16

Fodder beet leaf 11.3 24.5 11.2 0.33 0.72 0.48

Fodder beet root 15.1 11.4 14.4 0.13 0.15 0.15

PKE 89.7 16.5 11.3 0.58 0.38 0.27

• The kale crops averaged 12.3 T DM/ha with a range of 10.5 to 13.4 T DM/ha

• The fodder beet crops averaged 20.7 T DM/ha with a range of 17.8 to 24.6 T DM/ha

• Fodder beet crops averaged 79% root and 21% leaf from June to August.

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Table 6: Estimated crude protein, phosphorus (P), calcium (Ca) and magnesium (Mg) intake

of the mixed age cows and rising 1yr-old heifers during winter 2018

Estimated

crude

protein

intake

kg/cow

(diet CP%)

Estimated MEI

(diet ME

MJ/kg DM)

Estimated Diet

P%

(requirement

0.3-0.35%)

Estimated

diet Ca%

(requirement

0.6-0.8%)

Estimated

diet Mg%

(requirement

0.22-0.28%)

Kale cows 2.05

(16.2)

145

(11.4)

0.36 0.88 0.19

Fodder beet

cows

1.85

(14.3)

165

(12.8)

0.21 0.35 0.21

Kale R1’s 1.10

(15.7)

74

(10.2)

0.31 0.91 0.18

Fodder beet

R1’s

0.79

(11.6)

73

(10.7)

0.25 0.43 0.20

• The FB diet for the R1’s was deficient in crude protein for good growth and we observed a

lower growth rate in this group of animals over the winter period (Figure 1)

• The kale diet for the cows had more surplus crude protein than the fodder beet diet

• Fodder beet diets were deficient in P and Ca for both classes of livestock

• All diets were below the recommended dietary range for Mg content.

Figure 1: Growth rate of R1’s wintered on fodder beet or kale during winter 2018

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Figure 2: Blood metabolites pre and mid-winter for R1’s wintered on fodder beet or kale

Figure 3: Blood metabolites pre and mid-winter for cows wintered on fodder beet or kale

Trends in blood minerals were similar for mixed age cows and R1’s

• Blood phosphorus and urea decreased on both kale and fodder beet diets but the decline

was greater for cows wintered on fodder beet and for P the decline was larger in the R1’s

on fodder beet. The cows received P supplementation on the baleage but none was

provided to the R1’s

• There were small differences in blood Ca and Mg which reflected differences in mineral

intake

• Blood glucose concentration was significantly higher in animals fed fodder beet

• AST levels were lower mid-winter than prior to crop feeding

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Soil Mineral N as in indicator of fertiliser N requirements for crops

Purpose

To investigate the range in soil mineral N content in winter crop paddocks at SDH and utilise this

information to inform fertiliser N requirements.

Background

Soil mineral N content provides an indication of the mineralised N pool in the soil that is available

for plant growth. Ryegrass/white clover pastures accumulate a large amount of N in the soil

through biological N fixation by clover and through the return of dung and urine N during the

grazing process. This N becomes available for plant growth during the cultivation phase of crop

establishment and therefore should be taken into consideration when determining the fertiliser N

requirements of the crop, especially for kale.

The appropriate fertiliser N rate will depend on soil N supply and potential crop yield, and will differ

from site to site. However, under excess N supply, kale may accumulate large amounts of N

beyond those required to reach maximum yield. This may have negative impacts on animal

production, and can increase N losses when kale crops are grazed.

Recent research conducted by Plant and Food research has demonstrated no yield benefits from

applying more than 100 kg N/ha to fodder beet crops and there was no relationship with soil

mineral N concentration. Higher rates of N fertiliser did increase the N content of the bulb but did

not increase yield.

Approach

Wintering cropping at SDH occurs within the milking platform areas of each farm system. To

minimise the proportion of the farm out for crop in spring each year we have adopted a 2-year crop

rotation so that each year half there is an even split of first and second year crop paddocks.

Soil samples for mineral N analysis were collected from all the 2019 crop paddocks in October and

this information was used to determine the fertiliser N requirements for each crop paddock.

Results

• Up to a 4-fold range in soil mineral N content was observed between paddocks (Table 7)

• 1st year kale paddocks, with the exception of 103, received a single side dressing of 50 kg

N/ha in early February

• 2nd year kale paddocks will receive 2 side dressings of 69 kg N/ha – one in early February

and the other mid-March

• All fodder beet paddocks received a single side dressing of 55 kg N/ha in early February.

• Mineral N content lower in lifted FB paddocks compared with those that were grazed

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Table 7. 2019 Crop paddock soil mineral N values and planned side dressings of N fertiliser

2019 crop Pdk history

2018 crop Comments

Pdk No

Mineral N

kg N/ha 1st side

dressing (Jan)

kg N/ha 2nd side

dressing (March)

Fodder beet

ex pasture 52 159 55

Fodder beet

ex pasture 48 124 55

Fodder beet

ex pasture 50 157 55

Fodder beet

ex crop fodder beet

grazed by R1's

6 80 55

Fodder beet

ex crop fodder beet

grazed by cows

22 90 55

Fodder beet

ex crop kale 3rd year crop 98 49 55

Fodder beet

ex crop fodder beet

most of crop lifted

35 45 55

Kale ex pasture 47 156 50

Kale ex pasture 57 149 50

Kale ex pasture 65 180 50

Kale ex pasture 103 97 69 69

Kale ex crop fodder beet

most of crop lifted

9 37 69 69

Kale ex crop fodder beet

most of crop lifted

8 36 69 69

Kale ex crop fodder beet

grazed by cows

7 79 69 69

Kale ex crop fodder beet

grazed by cows

5 84 69 69

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Farm Systems Summary Season to date

Mating programme

• Synchrony programme with R2’s from the 1st November – 3 days AI followed by bulls until

20th December

o 8% not in calf

• Planned start of mating 8th November for mixed age cows

• 6 weeks of AI until the 20 December

• Bulls run with all herds from 21st December till 10th January

• 1 week of AI with short gestation semen from 10th to 17th January

• First scan on the 25th January

Table 8. Season to date summary of key metrics for the farm systems

Std Kale LI Kale Std FB LI FB

Intended stocking rate (effective area)

3.1 2.6 3.1 2.6

Actual stocking rate (effective area) 3.0 2.7 2.9 2.7

Actual stocking rate (total area) 2.6 2.3 2.5 2.2

Production

Milk solids (kg/cow; 5 Feb) 322 326 314 322

Milk solids (kg/ha; 5 Feb) 1007 889 898 851

Supplements

Supplements fed (kg/cow) 166 157 97 115

Supplements made (kg/cow; 5 Feb) 169 148 212 242

Nitrogen inputs

N fertiliser (kg/ha) 140 51 123 53

Reproduction

Cows in herd at PSM (8 Nov) 194 173 190 164

Cows scanned 189 170 188 158

3 week submission rate (%) 91 95 91 88

Confirmed in calf (number; 25th Jan) 144 136 150 114

6 week ICR (% of cows at scanning) 76 80 80 72

6 week ICR (% of cows at PSM) 74 79 79 70

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Winter crop feeding plan

Timeline for the next 2 months

• Start yield assessments on all crop paddocks in mid-March

• Complete autumn and winter feed budgets including:

o Finalising order of crop paddock grazing to streamline establishment of new grass

and crops next spring

o Identifying any potential deficits in the budget due to poorer crop yields

o Identifying paddocks/areas within fodder beet paddocks for lifting for autumn and

spring feeding

o Identifying 1st year crop paddocks for 2020

▪ Soil test in the autumn

▪ Manage grazing to set them up as springer paddocks for spring 2019

• Finalise paddock feeding plan including bale placements

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Good practice crop feeding and management for improved

environmental and animal care outcomes

1. Winter crop establishment – things you can still do a. Paddock access

i. If a paddock is renowned for getting particularly muddy therefore difficult to walk through, fence off an access strip along the length of the paddock to allow staff to easily access gateways and break fences.

b. Selecting grazing direction i. Aim to graze towards CSA’s or water bodies to protect them from overland flow. If this

is not possible leave a buffer strip to minimise any overland flow (see above for buffer sizes).

ii. Graze from top of slope to bottom if possible to reduce overland flow by maintaining soil structure and allowing water to soak into the soil

c. Set out baleage i. Place bales away from waterways and critical source areas ii. To reduce the need to drive heavy equipment on wet soils, place bales strategically

throughout the paddock prior to winter, and use ring feeders when feeding the baleage

2. Strategic grazing management of the crop a. Transitioning

i. Ensure that cows are transitioned onto crop effectively. This requires that all cows have access to the crop, that enough time is allowed so that the microbes in the rumen can adapt to the new crop, and that enough supplement is offered during this transition time to meet cow intake requirements.

b. Cow feeding i. Ensure that stock has access to enough feed to maintain or if required increase body

condition score

c. Cow condition i. Cows in good body condition are better able to withstand cold as the fat layer beneath

the skin acts as an insulating layer. Cow condition must be planned for prior to winter.

d. Cow lying time i. Ensure cows get a minimum of eight hours lying time per day. ii. Correct lying times reduce the risk of lameness and stress, which leads to better

animal welfare and body condition score. iii. On a winter break fed paddock this means cows need access to enough dry area to lie

down and meet their lying time requirements.

e. Cold Stress i. In cold and wet weather allow for decreased utilisation of crop and increased cow

demand for energy. A combination of strong wind, rain, and snow is the trigger to provide shelter and/or increase feed allowance.

f. Utilisation and back fencing

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i. Reduce trampling wastage by moving the fence once or twice a day rather than offering a few days feed at a time

ii. Offer long feeding faces rather than blocks. All cows should be able to access fresh feed at the same time

iii. Back fence to reduce excessive movement of animals and damage to soils

g. Managing CSA’s i. Fence off CSAs and leave ungrazed or graze quickly in dry conditions and the end of

the paddock grazing.

h. Water access and movable troughs i. Ensure animals always have access to water troughs ii. Place portable water troughs at the front of the feeding face

i. Catch crops

i. Where possible investigate options to use catch crops, such as oats, triticale and rye corn to minimise soil/nutrient losses during fallow periods.

j. Calving cows on crop i. Cows should not calve on the crop paddock. Ensure that cows are drafted off the crop

paddock at least two weeks prior to their expected calving date. ii. Ensure that cows calve on a suitable surface and have enough area and that their pre-

calving mineral requirements are met.

Southern Wintering 2020 events coming your way in March/April

• Whether we like it or not, the spotlight is on farming and our fellow NZ’ers and global customers are only a mouse click away.

• It is the responsibility of all of us to demonstrate to the world that we care for our animals and the environment.

• Wintering is an important part of our industry and we all need to be aware of our obligations and

ensure we are adopting good management practices when wintering cows on crop or pasture.

Dates and venues for the events will be advertised soon so please encourage everyone

involved with wintering cows in the south to get along. Sessions will be split so there will

be something for everyone including: decision makers, graziers, farm staff, technical

advisors etc.

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Southern Demonstration and Research Farm Ltd - Financials - Second Quarter ending 30th

November, 2018

Year ending May 31 2018/19 Budget

2018/19 Actual YTD

2018/19 Budget YTD

Variance % Variance Notes

(Act—budg)

Milk production (kgMS) 310,000 114,440 130,200 -15,760

-12%

Production has been reforecast from 310,000kgMS to 287,000kgMS to 31st May, 2019. However Budget YTD is based on original 310,000kgMS

260ha 1192 /ha 440 /ha 501/ha -61 -12%

Peak Cow Nos and Prod. 740 716 740 -24 -3%

Staff 5 5 5 0 0%

Income Milksolid Payout $/kgMS $6.10 $6.06 $6.10 0

0%

In line with Fonterra's payout re-forecast down to $6.15 per kgMS SDRF has updated the original and YTD budget to reflect this, less the discount for farms on a share up over time contract ($6.15 - .5c =$6.10 kgMS)

Dividend /share $0.00/share $0.00/share $0.00/share 0

Milksolid Revenue $1,891,000 $693,759 $794,220 -100,461

-13%

Actual YTD Milk Income is $6.06 per kgMS (this reflects the accrued income for 2017/18 being higher then actuals from June - November 2018. Can also be affected by fat and protein % differences and timing of supply in capacity adjustment months Budget YTD was 130,200 kgMS @ $6.10 YTD, Actual YTD was 114,440 kgMS which equates to $6.06 per kgMS - This amount is full Accrued amount to date

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Dividend/Rebates/Other $0 $17,753 $0 4394

Surplus dairy stock $107,014 $80,886 $59014 21,872

37% Timing of 17/18 stock sold due to available culling space

DairyNZ Levy -$11,160 -$4,120 -$4,687 567 -12% Impact of actual lower production

Stock Purchases 13,600 13,600 0 13,600

Breeding bulls purchased after a change in policy from original AB only

Gross Farm Revenue $2,000,454 $801,879 $848,547 -46,668 -5%

Expenses

Cow Costs

Animal Health $74,352 $41,110 $39,776

-1,344 -3%

Breeding Expenses

$61,752 $38,362 $41,301 2,939

7% Lower due to less AI / use of bulls at end of mating

Replacements $13,330 $6,652 $6,350

-302 -5%

$7,000 Forecast Saving, rearing completed no further costs required

Winter grazing

$77,400 $62,996 $59,800

-3,196

-5%

Cropping costs YTD and Baleage made at run off more cultivation costs for 2nd yr. crops / more baleage / baleage earlier than budgeted

Feed Feed/Concentrates Purchased $169,000 $58,122 $80,750

22,628 28%

Baleage to be made at the Run Off and moved to dairy platform

Nitrogen

$71,600 $22,727 $45,300 22,573

50%

Urea use planned as per decision rules, last round of N delayed till end of ryegrass seeding period in January

Fertiliser, Lime & Spreading $73,500 $46,712 $33,700 -13,012 -39%

Pasture Renewal $20,600 $1,377 $20,600 19,223 93% Work completed, timing of invoices

Freight $4,992 $298 $2,496 2,198 88%

Farm Working

$17,395 $16,083 $11,237

-4,846

-43%

Rubbish bin hire and empty fees, baleage wrap to recycling centre over winter period, consumables tea,

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coffee etc. Protective equipment and health and Safety

Staff Employment (net of housing)

$275,873 $205,610 $150,283

-55,327

-37%

High labour costs this season with temporary staff to cover replacement permanent positions as well as support the intensive periods and staff living off farm, travel and accommodation allowances. Forecast for season end is going to be higher than originally budgeted

Land Electricity Farm & Run Off

$40,004 $17,135 $10,268

-6,867

-67%

Costs above budget due to higher electricity than budgeted - Longer shed running hours due to new farmlet systems

Administration $40,301 $25,282 $23,392 -1,890 -8%

Rates & Insurance $39,254 $5,537 $9,313 3,776 14%

Repairs & Maintenance

$49,856 $27,846 $16,536 -11,310

-68%

Repairs to calf shed at start of the season, R&M Fencing and yards, spreading effluent.

Shed Expenses

$25,658 $26,406 $14,053 -12,353

-88% Timing of shed Chemical and teat spray purchased

Vehicle Expenses

$50,956 $30,683 $18,048 -12,635

-70%

Higher fuel costs YTD both Diesel and Petrol, and lease costs of Silage wagon (not budgeted)

Weed & Pest $1,600 $343 $1,000 657 66%

Farm Working Expenses $1,107,423 $633,283 $584,203 -49,080 -8%

FWE/kgMS YTD $3.57 $5.53 $4.48 -1.05 -23%

Depreciation $30,000 $20,437 $15,000 -5,437 -36%

Total Operating Expenses $1,137,423 $653,720 $599,203 -54,517 -9%

Higher FWE than budgeted, mainly in due to labour, this has been underestimated due to the set up and

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operational management of the farmlets, temporary staff has been required to support the permanent team with day to day running of the farmlets.

Dairy Operating Profit $863,031 $148,159 $249,344 -101,185 -41%

DOP/ha $3,319 $569 $959 -389 -41%

Operating Surplus $893,031 $168,596 264,344 95,748

-36%

We remove expenses related to research and demonstration into non-operational to reflect normal farm expenses only. For example, the costs for extra herd testing required by research. We show the cost of 4 herd tests only under farm.

Operating Surplus per ha $4,396 $648 $1,017 -368 -36%

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Hub Weekly Farm Update: 14/2/2019

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Table 1: Farmlet feed wedges and general information

*If you are struggling to few the tables and wedges please visit www.southerndairyhub.co.nz to download the pdf

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General Farm Information

Table 2: Key Numbers 14th Feb 2018

Kale Fodder beet

Soil Temp (oC) 16

Rainfall (mm) 14.2

Milker Intake Target

(kg DM/cow)

16.5

Av. Kg MS/cow/day 1.45 1.48

Average milk fat (%) 4.96 5.05

Average milk prot (%) 4.07 4.12

Average SCC (cells/ml) 166 164

Animal Summary Std Kale

Pink

LI Kale

Blue

Std FB

Green

LI FB

Yellow

Milkers - TAD 179 160 166 147

Milkers - OAD 9 7 19 9

Other/Penos 1 4 3 2

Key Decisions: this week • Feed wedges are in better alignment with the target line this week after taking out some

additional paddocks at the top of the wedge for conservation. Potentially 1x Std FB paddock to be conserved this week.

• The x1 Std Kale farmlet paddock that was being prepared for resowing was drilled on Tuesday evening. Sowing rates were 20 kg/ha Platform AR37, 3 kg/ha Legacy large white clover and 2 kg/ha Quartz medium white clover. All seed was superstrike treated.

• We are seeking additional advice on the fodder beet crops after we noticed the appearance of leaf yellowing and damage in several 1st year crop paddocks this week. These crops were looking much better than the 2nd year crop paddocks until the last week. Given the challenging start for some paddocks we are looking at options to maximise the chances of good yields. We are discussing whether a fungicide application would be beneficial for fodder beet paddocks that will be carried through for spring feeding.

• The next round of N fertiliser across the whole farm will commence the last week of March to help extend the rotation length out to around 35 days.

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Figure 1: Leaf damage emerging in a first-year fodder beet paddock

General Notes: • The round length will continue to be held around 30 days for the next 2 weeks and

paddocks dropped for conservation as required if covers exceed the herd target pre-graze mass.

• 25 kg N/ha will start being applied to all paddocks during the last week of February with the plan to move the LI farmlets out to a 35-day rotation

• 24-hour grazing has continued, and cows are being put back into paddocks to clean up if residuals are not achieved. We are in the process of developing pasture mass trigger points for each farmlet for the farm team to use in decision making around whether there is sufficient feed to return herds to paddocks (especially for night feeds where they can’t easily be monitored) or whether they need to be moved on.

• Some post-graze topping has been implemented this week. In the last 2 weeks the amount of mowing (topping or conservation) has varied across the farmlets as outlined in Table 3 below.

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Table 4: Area mown in the last 2 weeks

Std Kale LI Kale Std FB LI FB

Area Conserved 8.7 14.5 14.5 11.6

Area Topped - 8.7 2.9 5.8

Total area mown 8.7 23.2 17.4 17.4

Total % farm mown 14 37 26 28

• With mown paddocks often being 2-3 days slower returning to pre-graze covers and the % of the farm mown in the last 2 weeks, there will be no topping on the LI farmlets this week.

• Weed control continues to be a major focus for the farm team – just when we think we are on top of one weed another one pops up suggesting we have a well-stocked weed seedbed on the farm!!

• The farm are currently implementing Max-T to increase milking efficiency https://www.dairynz.co.nz/milking/rotary/maxt-rotary/ and are working on protocols for successful implementation. With lighter conditioned OAD cows in each herd it is important that these are considered when the platform speed is being set.

Animal Health

• The x6 calves that were on the platform receiving preferential treatment have been returned to the support block.

• One calf mob was weighed yesterday, and the rest are being done today so those results will be reported next week. Calves in the action group in MINDA weights continue to receive 2 kg calf meal/day.

• X2 mastitis cases were detected this week

• X1 animal has been dried off after damaging muscles when she slipped in the yard.

People Management and Visitors • A Farmtune session with Lynsey Stratford is scheduled for next week

https://www.dairynz.co.nz/business/farmtune/ . This programme looks to identify inefficiencies and waste in the systems and processes on the farm and develop practices to address these.

• The farmer reference group met and discussed setting up for autumn and winter including rotation lengths, body condition score targets and average pasture cover targets for dry off and spring.

• Nicole and Caitlin hosted dairy farmers on a UDV tour of NZ

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Figure 2: The dairy farmers from Victoria Australia discussing why the water in the trough was a cloudy colour

• Guy hosted students from the USA as part of a group called 'Meeker Citizens of the World Ambassadors 2019’.

Research on-farm

• All calves have been weighed this week as part of the cumulative effects project.