Dairy News 27 October 2015

HANDLE WITH EASETelehandler with powerPAGE 31

LIC SELECTION

Candace Kinser

voted in PAGE 16

Be prepared for drought. PAGE 5

OCTOBER 27, 2015 ISSUE 345 // www.dairynews.co.nz

REMIT TO REVAMP

BOARDFormer Fonterra directors

Colin Armer and Greg Gent want shareholders to vote on their resolution. PAGE 3

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Board unlikely to back downsizing remitFONTERRA’S BOARD will tell shareholders this week whether it supports a contentious res-olution to reduce the size of the board.

Judging by an email sent out to 10,500 share-holders last week, the board is unlikely to support the resolution, moved by former directors Colin Armer and Greg Gent.

Fonterra chairman John Wilson last week told shareholders in an email that the co-op plans to start the governance and representation consulta-tion with farmers in the last week of January and hold the final vote at a special meeting in May.

Wilson told Dairy News he had nothing to add to his email to farmers. “The board will give its views when voting papers are sent out to farm-ers,” he said.

Voting for Fonterra’s three board seats begins October 30; voting papers with notice of the annual meeting will be sent to farmers later this week.

Armer and Gent will table a resolution at the meeting to reduce the number of elected direc-tors from nine to six and the number of appointed directors from four to three to give a total of nine directors.

They believe a smaller board is essential to improve the governance and performance of the cooperative. The proposal requires 50% support by the shareholders council and at least 75% of share-holder votes in favour.

Gent, a former deputy chairman of Fonterra, and Armer recently held a teleconference with

members of the shareholders council.Armer told Dairy News that he and Gent appre-

ciated the council hearing their views. “But we haven’t heard from the board,” Armer said.

He says Fonterra’s constitution belongs to its shareholders and they are entitled to tweak it.

Armer expects the resolution to be tabled at the annual meeting in Waitoa on November 25.

“We will let the shareholders decide on the res-olution,” he says.

Armer and Gent were also critical of the board’s communication with farmers on the issue. They say farmers have not been told a governance review is underway with a view to a special share-holders meeting mid-way through next year.

“This will be a surprise to them,” says Gent. “The governance review was promised at the annual meeting in 2012 in reaction to another

proposal dealing with governance put forward by another shareholder.

“That review sank without trace, so farmers will no doubt be sceptical about another promised governance review. It was a high priority then and three years is more than long enough for them to get recommendations out to shareholders.”

In his email to farmers, Wilson denied the board was at loggerheads with Armer and Gent.

“We have all been in agreement that we need to look at our governance and representation. After 14 years, it is time to look at what would be best for the co-op in today’s world, and that process is well underway.

“But your board considers that a shareholders’ discussion needs to be part of that process; discus-sion is an important part of our co-op. We learned that in 2007.

“At that time the board presented you with just one option on capital structure – the first proposal. We put this out there in isolation and then had to pull it.

“It unsettled the shareholder base and was not the right process to handle such an important deci-sion and your board subsequently acknowledged that. We must not repeat that mistake.”

Wilson says there was a need to respect each other’s points of view.

FONTERRA'S PLAN❱❱ Start�the�governance�and�repre-

sentation�consultation�with�farmers�in�the�last�week�of�January

❱❱ Hold�the�final�vote�at�a�special�meeting�in�May��

❱❱ In�the�meantime�board�and�council�will�work�with�global�coopera-tive�governance�experts�to�give�farmers�an�independent�opinion�on�the�work�done�by�the�board�and�council��

SUDESH KISSUNsudeshk@ruralnews�co�nz

Colin Armer (left) and Greg Gent are happy to let shareholders decide on their remit.


4 // NEWS

Six candidates are standing for Fonterra board elections this year. Three sitting directors – chairman John Wilson, Blue Read and Nicola Shadbolt – are seeking re-election. Also gunning for a seat are Murray Beach, Ashley Waugh and Greg Maughan. Here are the six candidate profiles:

Six vye for Fonterra board seats

MAUGHAN SERVED on the Fonterra sharehold-ers council between 2004-08; he has served as chair and national judge for the New Zealand Dairy Awards. This month he unsuccess-fully contested the DairyNZ board elec-tions.

In his DairyNZ campaign Maughan said he has wide understanding of the industry from farm to governance level.

GREG MAUGHAN, MartonMURRAY BEACH shot to prominence last year after unsuc-cessfully moving a resolution call-ing for Fonterra to stop spending until the payout improves. Beach is unhappy with the current share structure and will propose a new share structure at this year’s annual meeting.

He believes all Fonterra shareholders should be paid the same for milk.

MURRAY BEACH, MarlboroughA FORMER chief executive of Austra-lian dairy proces-sor National Foods, Waugh has a dairy farm in Waikato.

During his time at National Foods he put together a deal that resulted in the big Asia/Oceania food and beverage company Kirin Hold-ings buying National Foods in 2007. Kirin Holdings merged National Foods in 2009, at which time Waugh left the company.

ASHLEY WAUGH, Waikato

JOHN WILSON joined the Fon-terra board in 2003 as a farmer-elected director and became chairman in 2012. He chairs the people, culture and safety committee.

He was the inau-gural chairman of Fonterra sharehold-ers council. He is director of Turners & Growers Ltd and is a chartered member of the Institute of Directors in New Zealand.

Wilson lives on his dairy farm near Te Awamutu and jointly owns a dairy farming business near Geral-dine, South Canterbury.

JOHN WILSON, Te AwamutuNICOLA SHAD-BOLT was elected to the Fonterra board in 2009 and serves on the audit and finance committee.

She is a professor of farm and agribusi-ness management at Massey University.

She and her hus-band live in the Pohangina Valley, Manawatu, the base for the five farming and forestry equity partnerships they run, which include two dairy farms.

NICOLA SHADBOLT, ManawatuBLUE READ was elected to the board in 2012. He sits on the cooperative relations committee and he led a water policy project team reporting to the this committee.

Read served as chairman of the Fon-terra shareholders council from 2007 to 2010, having been a councillor since 2001 and deputy chairman from 2003 to 2007.

He has interests in two dairy equity partnerships in lower Waikato, and he lives and farms near Urenui, northern Taranaki.

BLUE READ, Taranaki

www.dairynews.co.nz

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NEWS // 5

FONTERRA CHAIRMAN John Wilson says the 3% drop in last week’s GlobalDairyTrade (GDT) event is not a lot in the context of the increases in recent GDT events.

In the four previous auctions the price index lifted at least 60% overall and whole milk powder over 80%.

Wilson expects prices to keep firming over the next six months, to about US$3000 to US$3500 per tonne.

The WMP index was down 4.6% last week to an average price of US$2694/MT.

“While it is disappointing to see the drop, demand is soft in some key economies; we need demand to go up,” Wilson says.

ASB rural economist Nathan Penny says it looks as though mar-kets have largely factored in that production is falling here in New Zealand.

“They have taken that infor-mation on board and now it’s

more about seasonal factors and how things develop from here.

“Last week’s decline is likely to be due to the markets getting a bit ahead of themselves and now they are taking stock.

“From here, as we continue to see production falling com-pared to last year, we expect that to be reflected in gradually rising prices.

“As we get closer to summer and the risk of El Nino becomes more concrete that is also likely

to support prices or push prices upwards. But the big move has now happened and it is more grad-ual from here.”

He says the NZ production fall is the main driver and from here it will continue to drive prices but just at a more modest rate.

“Growth is slowing in the rest of the world but they are not doing the heavy lifting New Zealand is.”

ASB is still forecasting a $5/kgMS milk price payout for 2015-16. – Pam Tipa

GDT drop no big deal in context

Farmers with irrigation urged to plan promptly

GET IN now before it’s too late. That’s the advice on water from North Otago Federated Farmers president Richard Strow-ger. With El Nino bear-ing down on New Zealand and another dry summer predicted, Strowger and others are urging farmers

with irrigation to double check their plans.

“What I always say is water is a lot like a per-son’s bank account,” says Strowger, who farms and works as a farm consul-tant, south of Oamaru.

“Once you have used it all there’s no going back. It’s all gone and there’s nothing you can do about it. So yes, farmers at this

time of the year should be looking and planning how to get through those peak months of December, Jan-uary and February because the entire east coast of NZ is dry.”

IrrigationNZ sounded the alarm bells last week when it issued a statement saying seasonal irriga-tion volumes as a severe El Nino arrives mean farm-

ers run the risk of running out of water if they don’t plan well.

IrrigationNZ chief executive Andrew Curtis says: “Timing is everything in a marginal season.”

“Irrigation scheduling is central to this, partic-ularly now irrigators are limited in the water they

have through seasonal vol-umes. With water meters in place, irrigating farmers should be keeping a close eye on what they are using, regularly reviewing soil moisture levels and crop requirements and apply-ing water as efficiently as possible. Off the back of another dry winter there’s

no room for wastage or poor performance as every drop will be needed this summer. We recommend sitting down and planning your water budgets so you know exactly where you are.”

Strowger says it is a “really serious” issue.

“You can’t afford not to plan well as you can’t play catch-up when you get behind in your irrigating. If you get behind and need to top-up then it is like an ever decreasing circle. So the best way is to plan well and make sacrifices now, and make a list of priori-ties.

“Most farmers will

know what they can and can’t afford to irrigate in a really dry spell and that will mean, for exam-ple, perhaps deciding not to irrigate a paddock of winter feed, and waiting till autumn when there’s more moisture about to revisit those things and make a recovery plan from there.”

Strowger says it is a common to see on the farms he visits farmers taking care of their units, making sure leakages are kept to a minimum and the correct nozzles being used.

GREG FORDFarmers with irrigation are urged to plan for a dry summer.

@dairy_news

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WHEN YOU have a hard problem and no solutions you tend to ignore it: that’s what New Zealand has been doing about greenhouse gas emissions, says Anders Crofoot, Federated Farmers spokesman on climate change.

“That is what has been going on in New Zealand in the last while. But what I have been hearing from Wellington in the last several years is that not all gases should be treated the same,” he told a NZ-Australia Climate Change and Busi-ness Conference in Auckland last week.

“[Better to] look at the different gases, look at the different sectors, see what the opportunities are and do things on a more targeted basis.

“I think that makes a lot of sense and you would get much better engage-ment by the primary sector and actually talk about something that seems pos-sible, whereas the idea of zero biolog-ical emissions doesn’t seem possible.”

The Auckland conference was held ahead of a climate change summit in Paris in December. Diplomats spoke of high expectations a global agreement

may be reached in Paris, with the Obama adminis-tration and China on board.

Crofoot said one of the worst things NZ did when it went into Kyoto (global climate change protocol adopted in 1997) was the ‘all sectors, all gases mantra’.

“It rolled off the tongue nicely, it sounded great but unfortu-nately for the primary sectors -- that

means biological emissions -- it sent a really bad mes-sage. Everybody could see you could eventually get those fossil fuels down to zero, because there were other options…. We actu-ally haven’t been using fossil fuels very long so it wasn’t unreasonable to

expect we’d find something better. So the main culprit is CO2 in respect of cli-

mate change.“The problem with biological emis-

sions is that unless we stop eating we’re not going to stop those emissions.”

Crofoot said farmers react against such glib suggestions as, “just cut your emissions by 30%”. “The only option for doing that at the moment is to cut pro-duction by 30% which means cutting income by at least by 30%.”

On the other hand, NZ farmers have been making gains of 1% or more annu-

ally by producing more efficiently, said Crofoot.

“In a global agricultural context that is important because if New Zealand stopped producing more… that’s the food people are eating, so they would get it from somewhere else and [that supplier] might be less carbon efficient at producing it.

“The idea that New Zealand should just cut its emissions by dropping things by half doesn’t make sense when you look at things in a global context.”

Fonterra general manager group sustainability Emma Parsons said the emissions from the agricultural sector were largely methane and nitrous oxide, and our dairy processing remains reli-ant on fossil fuels.

“Our success as an industry depends on a stable climate, access to fresh water, healthy soils, biodiversity and relative freedom from pests and dis-eases. All these are likely to be impacted by climate change. With an estimated $1 per $5 of value created in the economy each year directly or indirectly linked to the agrifood industry, New Zealand’s success as a country is closely linked to the rural sector’s ability to mitigate and adapt to climate change.”


6 // NEWS

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Anders Crofoot

‘All science, all gases mantra’ was wrongPAM [email protected]

AGRICULTURE REPRESENTS 47% of New Zealand greenhouse gas emissions and that is divided about 50/50 between dairy and sheep and beef, said Mark Aspin, manager of the Pastoral Greenhouse Gas Research Consortium (PGGRC).

The only target New Zealand on the books is a 50% reduction by 2050. The aim of PGGRC, which is backed by Government and a number of industry players such as Fonterra

and Beef+Lamb, is to reduce agricultural emissions intensity by 2.5% pa from 2020 – 1% through increased efficiency and 1.5% through additional direct mitigation options.

The three main agricultural greenhouse emissions in NZ are methane, nitrous oxide and carbon, with methane representing about 66-70% and nitrous oxide about 30%.

The global warning potential (GWP) of methane is 25 times

that of CO2.Methane comes from belching

by ruminants and also represents a loss of feed energy – 6-8% of the energy an animal eats is lost by belching.

“That is an opportunity. Currently we are developing strategies to lower that but it is mindful of other impacts.

“We don’t want to mess with the fermentation that drives our ruminants. We want to have a win-win,” Aspin said.

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8 // NEWS

Enviro report shows farmers doing their bit

Mike Scarsbrook, DairyNZ.

DAIRY FARMERS focused on doing their bit to improve water quality in New Zealand have made measurable progress in their environmental per-formance, says DairyNZ.

Environment policy manager Dr Mike Scars-brook says the dairy indus-try is pleased to see the ‘Environment Aotearoa 2015’ report, released last week, filling a vacuum for robust and independent national reporting.

“Dairying is taking the

lead in protecting the rural environment, as seen in many improving trends, but there is more to do. The report shows… not just dairy farming but other sectors -- and our urban lifestyles -- affect-ing our environment. We all need to work together on this.

“It’s in everyone’s interest to have a single, common set of inde-pendent, robust data to measure progress. Like everyone else, farmers are

keen to see whether their investments to manage water quality are making a difference to their com-munities.

“It’s important we con-tinue to track progress, improving and learning what works or doesn’t. As more rules and regulations are set and affect farm-ers we will want to know if the environment is ben-efitting.”

Scarsbrook says that since the last State of the Environment report in

2007, dairy farmers have acted voluntarily to reduce their industry’s footprint.

“For example, two years ago we launched a new Water Accord cover-ing all dairy farmers. Dairy companies have reported on nearly 24,000km of waterways -- that’s 94% -- from which all stock are now excluded. This report identifies a 14% improve-ment in water clarity since 1989 linked to stock exclu-sion, which keeps sedi-ment out of waterways by

protecting banks and beds from collapse.

“Improvements will now continue at pace as more of the ‘exclusion’ effect is felt. With dairy farms now also managing soil structure and runoff to waterways by grass fil-ters and plantings, we can also expect lots more improvement in nutrient concentrations, algae and biodiversity.

“More robust and reg-ular reporting on all our Water Accord commit-

ments is allowing the dairy industry to focus support where it is needed most urgently.

“The rate of significant non-compliance of farm dairy effluent systems for the 2013-14 season was 7%, down almost half on 2012. While we are still confirm-ing the numbers for the 2014-15 season, this trend is continuing to improve,” he says.

“Farmers have made big investments in envi-ronmental initiatives themselves and through the $13 million spent each year by DairyNZ, including 15 large waterway projects nationwide, the Waikato Wetlands Showcase, hun-dreds of Sustainable Milk Plans direct to farmers and regional council ini-tiatives. We are also doing research into mitigating soil compaction.

“Farmers themselves have also put their money into our environment. $1 billion over the past five years has been spent by farmers on effluent sys-tems, riparian planting and retiring sensitive land –

that equates to $90,000 by each dairy business in NZ.”

At least 600 Sustain-able Milk Plans executed in the Upper Waikato alone are slashing nutrient loss to waterways, Scars-brook says.

“We are not waiting for rules to be put in place: farmers… are putting the right practices in the right places for the long term – learning all the time what works best and trying to perform even better.”

The dairy industry is currently evolving, he says. “We are changing to new farming techniques and systems with a lower environmental footprint while ensuring the coun-try -- and particularly rural towns and communities -- can continue to benefit from farmers remaining competitive and profit-able.

“Nutrient management is our next big challenge and we’re working with councils to ensure rules are put in place that reflect local community aspira-tions for water use and quality,” says Scarsbrook.

Glad its not all badENVIRONMENT MINISTRY (MfE) chief executive Vicky Rob-ertson has praised farmers for their efforts to improve the envi-ronment.

Robertson, and the chief executive of the Department of Statistics, Liz MacPherson, are co-authors of a new 130 page report on the state of the environment – ‘Environment Aotearoa 2015’.

Robertson told Dairy News they know great initiatives are being

undertaken by individ-ual farmers, dairy com-panies and DairyNZ to improve the state of the environment. She says water quality is as much an issue for urban areas as for farming areas.

The report notes that water quality in NZ lakes and waterways varies with the nature of land used in par-ticular catchments. In areas with

intensive farming, water quality is poorer than in areas where there is nat-ural vegetation. It also notes that between 1989 and 2013 nitrogen levels in rivers has risen overall by 12% but in over half the sites monitored the increase is significant.

At the same time it notes the importance of water to land based industries and the contribution

they make to the NZ economy. Water quality is poorest where there is pressure from both urban and agricultural land use.

The report picks up the obvi-ous: intensive farming – nota-bly dairying – has increased along with stock numbers, pressuring the environment. Related to this, the report notes that while overall soil health is good, compaction is a problem on dairy farms.

– Peter Burke

Vicky Robertson

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10 // NEWS

THE FRENCH ambassador to New Zealand, Florence Jean-blanc-Risler, opened the first session of the Auckland climate change conference stating, “the world is on track for a robust agreement at COP21 in Paris”.

The Paris talks are the first round of global talks on climate change since an unsuccessful round in Copenhagen in 2009.

NZ Minister for Climate Change Tim Groser agreed, stating, “the outlook for Paris negotiations is optimistic and momentum is moving in the right direction.”

Groser said he will concen-trate on advocating New Zea-land’s position which is to avoid a “heavy top down, compliance-centric agreement” which will discourage participation. “All along the real issue here has been to start to encourage a far better collective process of emissions mitigation.”

The US Ambassador Mark Gilbert said securing a top quality climate change accord is a top priority for the Obama administration. They were work-ing with other large emitters ahead of Paris with President Obama and President of China

Xi Jinping making an historic joint announcement last November of intended targets with China agreeing for the first time to limit its CO2 emissions. Recently the two Presidents released a joint statement on climate change and agreed to work together for a successful agreement in Paris.

He also mentioned the Trans Pacific Partnership, saying it will open up free and fair trade, and that it includes the strongest commitments on pro-tecting the environment of any trade agreement in history.

Dr Adrian Macey, senior associate at the Institute for Gov-ernance and Policy Studies at Victoria University, comment-ed on the significant differ-

ences between the lead-up to these negotiations and the lead-up to the unsuccessful Copenhagen meeting in 2009. “At this [stage] in the lead-up to Copenhagen, there were 300 pages of text with 3000 square brackets. This time, we have approximately 20 pages of text with maybe 300 square

brackets”. He said to get a

global response it may be neces-sary to prioritise engagement over legal com-

mitment.

OPTIMISTIC ABOUT PARIS TALKS

Tim Grosser

Deal with CO2

first, farm emissions can come later – scientist

CUTTING AGRICULTURAL emis-sions could come later in climate change action because the first focus needs to be on carbon dioxide emis-sions, the director and professor of climate change at Victoria University, Dave Frame, says.

However, that was still the subject of strong debate among international scientists and New Zealand should show leadership in that sector anyway, he told the Australia-New Zealand Cli-mate Change and Business Conference in Auckland last week.

The conference was held ahead of the upcoming global climate negotia-tions in Paris in December. Diplomatic representatives from several countries speaking at the Auckland conference said there was a strong possibility of agreements being reached in Paris, with

China and the US on board. Briefly outlining the science to the

Auckland conference, Frame said there was strong physical evidence that you had to stop emitting carbon dioxide altogether. This isn’t true of methane or other gases but it is true of carbon diox-ide. He said that suggested there must be a long term transition away from carbon emitting sources of energy. That is the main science point he wanted to make.

In answer to a question, he said on the basis of that “agriculture is a really interesting one”.

“I think, personally, as do some… scientists – there are a lot of scientists in North America and Europe who dis-agree strongly with this -- I think with the focus on CO2 you could do some-thing with agriculture later,” Frame said. “You can get the same value of emissions reduction by doing it a bit later.

“I wouldn’t start with it myself. But

I think it is clearly a sector in which NZ could show some degree of leadership by at least convening those national conversations.” He was referring to an earlier proposal by conference conve-

nor Gary Taylor that a national forum on climate change should be held, sim-ilar to the land and water forum.

Minister for Climate Change Tim Groser was asked, in view of the com-ments by Frame, whether it would make sense for NZ to argue in global negotia-

tions for the ring-fencing of non-carbon dioxide emissions from CO2 . Groser said while that made sense in logic, it was outside the international consen-sus and would have created enormous dissent.

He said Frame’s opinion was still a minority view among scientists but there is serious discussion in progress. While he will be discussing this in Paris, he said it was better for this to come up via scientists than politicians.

Dr Adrian Macey, senior associate at the Institute for Governance and Policy Studies at Victoria University, said that although the international position on agricultural emissions could not be changed currently, there was nothing to stop NZ internally using that logic to make sensible decisions for NZ’s trans-

formation. He said we would still have to report back internationally but would have good collateral for explaining our position.

In answer to questions regarding the need for a review of the Emissions Trading Scheme (ETS) Groser said he would be taking the ETS to cabinet in the next few weeks, setting up terms of reference and procedures. They will start the process this year and may make some announcements before the end of the year, because the outcome of the Paris negotiations is not needed to make some decisions. Some findings are likely to be next year “and we can have a national discussions on those issues,” he said.

PAM [email protected] Dave Frame,

Victoria University.

“You can get the same value of emissions by doing it a bit later.”

@dairy_news


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12 // NEWS

Green tick for mycotoxin binder

ALLTECH NZ has gained Ministry of Primary Industry registration for its longstanding product Mycosorb, which mitigates the adverse effects of mycotoxin in stock feed.

Alltech NZ corporate account manager Nigel Meads, who works on Alltech’s regional mycotoxin management team, says there are at least 90 peer reviewed in vivo (on living organisms) trials on Mycosorb and its mode of action is supported by 20 PhD and 22 masters projects.

“It has several patents globally so it is well researched. It has always met the registration requirements in any jurisdiction in the world that has ever required that registration,” says Meads.

Meads says MPI has begun the process of registering all mycotoxin binders in New Zealand.

“There have been a lot of unregulated products in that space and the concern has been for animal welfare if any of these products do not deliver what they purport to deliver. Animals may continue to suffer if the product does not do the job.

“The burden of proof has been put on the manufacturers to demonstrate the efficacy of their products.”

Meads says Alltech supports that. “From a fundamental animal welfare point of view you cannot continue to

let animals suffer if the product is not working.”

Registration of mycotoxin binders has been a grey area because there is some debate over whether it is a remedial product or a preventative product. But MPI has been aiming for registration for a while and has now forged ahead.

Mycosorb has been available in NZ for about 20 years. Products from other companies are going through the registration process; these have also been around for a while. Meads says Mycosorb is produced under strict conditions using a proprietory process developed by Alltech that makes Mycosorb unique in the marketplace.

However Meads says sometimes ‘Mycosorb’ is used as a generic term for all mycotoxin binders, just as ‘Hoovering’ may be used for vacuuming, although the actual brand being used may be something else.

“Mycosorb is an extremely well recognised brand particularly in the equine world and that is one of the challenges we have had.”

“Mycosorb is a registered trademark but the name itself in the industry became like a general descriptor; so a lot of people would say ‘yeah I’ve tried Mycosorb but not your one’ or ‘I’ve tried different Mycosorbs’. We are pleased the registration process is clarifying that in the marketplace – that Mycosorb is a registered trademark and there is only one Mycosorb.

PAM [email protected]

NZ needs to lift its international branding

AN INTERNATIONAL brand expert says New Zealand has a lot of work to do on its international branding.

John Keogh, who advises companies and governments, says Ire-land has its act together in particular with its Origin Green brand based on the sustainability of Irish pri-mary products.

Keogh, speaking at MPI’s PGP expo, said Ire-land is now regarded as a top brand worldwide, but NZ by comparison is at best “aspirational”.

Keogh says NZ’s prob-lem in part is that some market access and food promotion is determined

by MPI, whereas Ire-land has Bord Bia (Irish Food Board), with a better structure and able to accelerate marketing and branding.

He says NZ has a fan-tastic brand but compa-nies aren’t leveraging off it as much as they should. NZ’s brand story is pow-erful but needs more collaboration by the Gov-ernment and private com-panies.

The brand story is important to consumers, especially young people, Keogh says.

“When deciding about a product the consumer wants to know where it came from, is it genuine and more increasingly is that product produced sustainably and was there slavery involved in it? It’s

much broader than just the product itself and it goes back to the practices of the company in that country, their farming and manufacturing processes.”

Keogh says consumer demand for information about products varies from country to country and even within countries. For example, consum-ers in California tend to be more discerning than those in other states. In Europe it can also vary between countries.

“But Asia is in a scary position right now. China is worried about the authenticity of products, extremely worried about product safety and there is a lack of trust in the gov-ernmental frameworks to assure the safety of their products.

“Where I live in Viet-nam, it’s like a mini China with several arti-cles appearing monthly in magazines about the issues in food safety and how the government does not have good con-trol of that. The World Bank has just given Vietnam $50 mil-lion to work on food safety and I believe they are also giving China about $500 million to work on that.”

Keogh says con-sumers’ use of tech-nology to trace the origin and other infor-mation about products is becoming widespread. One supermarket giant in Europe, Metro AG, has an independent platform to which producers can

upload information about their products and con-sumers can download it.

GOVERNMENT ROLE CRITICAL

NEW ZEALAND producers and the Govern-ment need to work together on branding and food safety issues, says John Keogh.

He says Chinese consumers may not always believe the data provided by a company, but government endorsement gives it much more credibility.

The role of the NZ Government in negotiat-ing import protocols with its counterparts in China is critical to the future of exports there.

“I see a risk right now for your wine, honey and dairy. If you’re not careful the Chinese

will mandate national solutions used in China, and they will come here and tell your food companies they want them to use [Chinese] product identifica-tion and anti-counterfeit measures on

those products. I think this is hap-pening now in some instances.”

Keogh says NZ needs a nation-al solution based on global stan-

dards and equal with what China is trying to achieve. MPI needs to

be a little more forceful with trading partners, not just accepting of those countries’ preferred protocols.

The consequences of NZ hav-ing to meet food safety strategies

imposed by many different coun-tries could negatively affect Fonterra.

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NEWS // 13

Jeremy Hill, Fonterra.

Top US newspaper talks up dairyPETER [email protected]

MILLIONS OF people would have been health-ier if they had consumed milk rather than used milk substitutes, according to an article in The Washing-ton Post.

The article says pre-vious science quoted by US government agencies to warn people off whole milk, including butter, was wrong. That advice was simplistic and the notion that dairy products cause heart disease was incor-rect, it says.

Fonterra chief technol-ogy officer Dr Jeremy Hill says this article will serve to support well known sci-ence about the benefits of dairy products. This is rec-ognised by the McDonalds restaurant chain in the US, which this year returned butter to its menu and removed dairy substitutes.

“The vast majority of the population doesn’t read scientific and nutri-tion journals; they read newspapers either online or in print. [Papers] like The Washington Post get picked up broadly and are important in that respect. It’s a way of popularising science in a way consum-ers can understand. The article, written from a per-spective of a layperson, makes it’s quite under-standable.”

Hill says the most

important aspect of the science, and its publica-tion, is that it removes barriers to dairy products in the minds of consum-ers. Dairy is recognised as providing a lot of valu-able nutrients, he says. It’s taken a long time for the science to become solid enough to change opinion.

“The science has been there for a long time but it’s now gained so much momentum that it’s changing policies and ulti-mately it will change con-sumer purchase decisions. From a sensory perspec-tive milkfat is fantastic: its creaminess is desir-able and the nutrition that comes with it makes it a winner. Who would have thought McDonalds in the US would completely change over to butter from substitutes?”

Hill says publicity on the diets of elite sports people will also help cause a shift towards greater use of dairy products. Many key influencers are helping change public opinion in favour of dairy products.

“Celebrity bloggers have become important in this respect -- rock and movie stars and other individuals who influ-ence public opinion; as they adopt change they will drive this even further. But ultimately we need the right nutrition policies and advice from govern-ment channels, medical and nutritional advisors.

“Inappropriate barri-ers to consumer choices on nutrition” must be removed and the “support of key decision makers” gained, Hill says. “That

means using a raft of formal and informal chan-nels to influence consum-ers.”

Hill says Fonterra has worked with many

researchers and scientists publishing on the bene-fits of dairy products. The co-op will keep aligning its marketing strategies with this research.

IN BRIEF

Oz BCS app popularDAIRY AUSTRALIA’S cow body condition scoring smartphone app has had hundreds of downloads since its launch in December 2013 and is helping farmers score cows quickly and more efficiently.

Dairy Australia’s feedbase programme manager, Richard Romano, says the app gives farmers working with seasonal and split calving herds greater control over their herd’s feeding.

“The app has been designed to make the body condition scoring process easier so farmers can realise the benefits in their herd’s reproductive performance and milk production,” he says.

“In the past, farmers and advisers would have referred to photos in books such as the Condi-tion Magician. This app uses the same simple scoring method using the graphics and the touch screen and it takes only seconds to score each cow.”

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14 // NEWS/OPINION

Risk management requires a planRISK MANAGEMENT is an aspect of strategic planning that many farmers are yet to fully use to its potential. It can offer the advantage of a wider perspective on events that might otherwise be a cause for worry.

Developing a risk management plan offers a number of benefits.

First, it enables business owners and leaders to quantify risk and prioritise where their risk management efforts should be focused. Obviously there is a wide range of possible risk factors for any business. This process identifies those with the highest probability and develops proactive solutions to mitigate them.

Second, quantifying the risk puts boundaries around likely impacts. Risks that have not

been evaluated and potentially solved offer fertile ground for anxiety and worry. At the least a risk management plan indicates the level of energy any potential problem deserves.

Third, the process increases the confidence of financiers and other key stakeholders in the business. A structured approach to managing exposure to otherwise unforeseen events will almost certainly enhance creditworthiness.

Obvious risks for an agribusiness strategy will include the traditional challenges of climate and markets. There is an increasing need to think about internal risks such as loss or unavailability of key personnel (especially the business owners) and implications for succession. External

risks such as biosecurity, extreme climatic events and changes in product or financial markets all need to be considered.

The forecast El Niño weather pattern is a prime example. This could slash pasture growth and consequent farm productivity. Offsetting this is a recovering dairy price driven by markets anticipating lower national and international production and rebalancing of supply and demand.

A risk management

strategy on this should quantify the likely impact on output, how this can be mitigated by securing feed purchase contracts and assessing the likely change in milk prices that could result.

A top farming operation will have records that show the impact of similar events in the past. Up-to-date information on fertiliser, cropping and feed purchase options will highlight potential for farm policies to plug the gap. This information can be used to model scenarios that quantify the impact and identify response strategies for management of working capital, discretionary cost reduction and adjustments to policies, etc.

When done with time on your side there is a

longer lead time to react. This will contribute to more prudent purchase of farm inputs and avoids the negatives of having to compete with others who are slow to recognise its impact on their business.

Another strand of risk management is evaluation of options for diversification to spread investments and achieve exposure to different markets. Options include enterprises that offer alternative land uses as well as business growth outside farming by evaluating property, equities or trading investments that reduce reliance on the owners’ day-to-day input.

The final component of effective risk management is to ensure insurance strategies deliver robust protection and respond to priorities. This has been highlighted by the recent Christchurch earthquakes. Many hit

by those found their covers were inadequate or had not focused on the most important risk factors in their business. A lot has been learnt about managing claims and the capacity or

willingness of insurance companies to meet expectations. Getting the balance right between external insurance and self-insurance will help strengthen decisions on what has become a big ticket overhead cost for all

businesses.Achieving top

10% performance has always demanded good timing. Being ahead of the game by proactive risk management and communicating strategies with stakeholders -- especially financiers – increases

confidence and puts extra reinforcing in the foundation of quality farming operations. • Kerry Ryan is a Tauranga agribusiness consultant.

The final component of effective risk management is to ensure insurance strategies deliver robust protection and respond to priorities.

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NEWS // 15

Rick Pridmore, DairyNZ.

Countdown begins to world-first methane vaccine

A WORLD-FIRST methane inhibitor vac-cine is being developed by New Zealand scien-tists and they should know within about four months whether it is successful, says Rick Pridmore, who leads sustainability for DairyNZ.

It is often overstated that NZ has the world’s best scientists, but in this case it is true, says Pridmore, who is also chair of the Pastoral Greenhouse Gas Research Consortium.

They are trying to solve a problem of methane in pastoral animals which a vaccine is well suited to, he told the International Federation of Agricultural Journalists Congress in Hamilton this month.

“If you can get a vac-cine that works you will deal with every ruminant anywhere in the world.”

A vaccine uses the body’s antibodies to fight what is in the body. “It is your own body fighting itself, so you don’t have to worry about toxicity, drugs and other implica-tions,” Pridmore told the congress.

“If you develop a vac-cine you can bring it on the market in less than three to five years.”

He says if you develop an inhibitor -- a chemical compound to put into an animal to kill the metha-nogens which make meth-ane -- it might take 10 years to research a number of aspects before it could come to market.

The vaccine, using a little bit of protein from common methanogens in ruminant animals, would prompt the antibodies within the animal’s body to attack it. Normally that wouldn’t happen because the rumen is big -- there’s lots going through and there are not enough anti-bodies.

The antibodies are developed in the saliva of the ruminant animal and the process is stoked by injecting the animal with blood serum because blood serum and saliva are the most likely places antibodies are produced.

“Once we inject them it starts a cycle going; as the animal eats it salivates all the time, those antibod-ies keep being pumped into the rumen and you’ve got a machine that keeps going,” Pridmore explained. “This keeps producing antibodies; they attack the methanogens and they get washed out the other end.”

Pridmore says a paper published two weeks ago by the NZ scientists took every kind of ruminant


everywhere in the world -- from the top of alps to down in the jungles -- and looked at the antigens in the guts. Everywhere in the world and with every kind of diet two kinds of methanogens --

the bacteria that make the methane -- were found in reasonably high abundance. He said if you can knock those two out the vaccine will work

“The other good thing about a vaccine is it seems

to last for a long time. Ours will last for almost 30 weeks. Once you vacci-nate for 30 weeks you can revaccinate and it shoots back up again.”

IN BRIEF

Effluent contractor fined

AN EFFLUENT spreading company has been convicted and fined $15,000 for illegally dis-charging effluent into the environment.

The company, Natural Spreaders Ltd, has operated since 2009, spreading effluent for farmers in the greater Tokoroa area.

The case, brought by Waikato Regional Coun-cil (WRC), related to spreading by the company in May 2014 on a dairy farm near Putaruru. A motorist told the council of concerns about the way the effluent was being applied.

Council staff found large amounts of dairy effluent had been spread on a paddock in a way that contravened Waikato Regional Plan rules, causing ponding in various places and effluent runoff; this put the nearby Pokaiwhenua Stream at risk.

“Farmers should be able to engage contrac-tors with confidence that they will do work in an environmentally safe and lawful manner,” says council investigations manager Patrick Lynch.

“This is another reminder to all those who work with our natural resources to follow best practice at all times.”


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16 // NEWS

Co-op walks the tough journey with farmersLIC held its annual meeting in Ashburton last week. Chairman Murray King spoke about the challenging times faced by farmers and the co-op’s response. Here are excerpts from his speech.

LIC UNDERSTANDS the challenges ahead and earlier this year antici-pated what was likely to come.

The board approved two initiatives to assist our farmer sharehold-ers, with provision for extended credit with inter-est free periods for AB products during the peak spring mating season, and interest free periods on automation and DNA par-entage products.

Later we also added options for herd test-ing, and special offers on the AB products for this season.

We are committed to maintaining a vibrant and enduring New Zealand dairy sector. We want to make sure the investment in good genetics will not

be compromised. That’s why we emphasised the value of Premier Sires, while providing a low cost alternative to those who needed it, and introduc-ing a new value option to extend AB – SGL Dairy.

LIC also continues to review discretionary costs without affecting service to farmers. Like you, we have gone through our budgets line by line to reduce our costs as much as we can. This has some-what affected our develop-ment of new products and infrastructure replace-ment. Farm working expenses (FEW)

Given the industry’s volatility and a milk price starting with $4, farmers have been looking closely at farm working costs.

Here we can see how farm working expenses have changed over time; this is overlaid by the 2000-01 FWE costs with inflation.

In general, these expenses followed infla-tion until the 2007-08 season. In understand-ing what has caused this sudden change it is impor-tant to consider what hap-pened with milk payout and the weather.

The 2007-08 season saw the milk payout climb to over $7 for the first time, and while this resulted on average in a record operating profit per hectare, the impact of the widespread drought had a marked effect on farm working expenses – partic-ularly feed costs – as feed resources became difficult to come by.

The 2008-09 season was affected by the flow-on impacts of the previ-ous season drought, and a lower payout resulting in the lowest profit margin in a decade. Borrowings were at a record high.

Farm costs don’t tend to drop in line with falling milk prices, although in the current environment overall farm expenditure is expected to decline.

Throughout this whole period, breeding and herd improvement has accounted for a few per-cent of the total FWE. Through many initiatives we look to keep deliver-ing maximum value in this aspect of spending on your business. LIC contribution to value onfarm

How is your invest-ment in herd improve-ment represented in onfarm returns? Using analysis from a number of independent and internal

sources we have estimated financial value onfarm as follows:

Genetic merit: nation-ally at least $400 million annualised gains through genetic improvement and with our market share we generate over $300m of this (based on a breeding worth analysis so although affected by milk price it is a rolling average)

Health: reduction of mastitis by herd testing and culling a small propor-tion of cows with consis-tently high SCC equates to over $2m

Reproduction: from an increase in the 6 week in-calf rate observed over the last two years, LIC has played a key role in this with our reproduction solutions team

Production: resulting from the identification of

poor producing cows by herd testing and the sub-sequent production ben-efits from having higher producing cows, this gen-erates at least $40m. Short gestation length reported as $11m in June this year (at $5.25 payout) is now worth $9.5m at current payout. Strategy and technology roadshow

For one week in June, LIC board members, senior management and shareholder councillors visited eight towns around the country to update shareholders on prog-ress with the strategy and present some of the latest developments in technol-ogy.

These meetings were to allow early discussion with you, our shareholders, on the service and solutions

we have in development, progress on acquisitions which fit with our strat-egy and funding options for LIC over the next few years. There was no burn-ing issue, but we wanted to give shareholders the opportunity to discuss the direction of the co-opera-tive. We wanted to under-stand your views as we consider LIC’s implemen-tation of its strategy over the next few years.

The directors are responsible for ensur-ing the long term future of the co-op is profitable. Profitability enables us to continue to invest in new product development and R&D and to deliver the service and solutions you will want and expect from us.

New director for LICLIC HAS appointed Can-dace Kinser an indepen-dent director.

Kinser replaces Jay Waldvogel, who was appointed one of three independent direc-tors in 2003 and did not seek reappoint-ment in 2015.

LIC share-holders rati-fied Kinser’s appointment at the co-op’s annual meeting in Ashburton last week.

Speaking at the meeting, chairman Murray King said the board and shareholder council unanimously recommended Kinser’s appointment for a minimum three-year term.

“Candace has outstanding technology and biotech-nology expertise and broad information technology knowledge and networks.

“Candace is aligned to the direction and aspiration of the LIC business, and brings many specific capabili-ties we have identified LIC will require to help deliver on our strategy.”

Candace Kinser

LIC chairman Murray King

@dairy_news


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RUMINATING

EDITORIAL

MILKING IT...

18 // OPINIONDAI RY NEWS OCTOBER 27, 2015

IT’S ALMOST too good to be true. A report on the state of the New Zealand environment that is honest, factual and not littered with references to the damage farmers alone are doing to land and water.

The Ministry for the Environment and the Department of Sta-tistics have issued a 130 page report that states the bad and obvi-ous – such as the effects of intensive farming and in particular what problems dairy is causing to water quality and soil condition. It does not shy away from noting the problems nitrogen is caus-ing to waterways or that intensive agriculture is causing by com-pacting soils. And it also notes the tremendous efforts of farmers to do their best for the environment.

The new MfE chief executive, Vicky Robertson, is a breath of fresh air in the environment sphere. She is full of praise for what the farming community is doing to improve water and soil quality and is positive in her encouragement to get all farmers to do what most are already doing in environmental improvements to their farms. She also makes the point, quite correctly, that not all the problems in our waterways result from poor farming practices. It’s a report that the Parliamentary Commissioner for the Envi-ronment (PCE) should take time out to read and so get a sense of the word ‘perspective’.

One interesting insight relates to the data used to compile the report: in short, the data leaves much to be desired. The extent and quality of available environmental data are limited, requiring that Stats and MfE get busy with information providers to ensure better quality data in future. In particular the report notes a bias towards scrutinising places known to suffer poor environmental health, thus at times leading to an inaccurately negative picture of the state of the NZ environment. There’s music to the ears of farmers and a kick in the pants for the grizzling anti-dairy lobby flourishing on a diet of selective misinformation.

Having MfE and the Department of Statistics responsible for such a report is brilliant. It leaves out the PCE who is an advocate for the environment.

The report is well produced, easy to read and comes with an excellent poster which explains everything well on one page.

This report is not saying farmers have got it right yet, and it points to areas where improvement is required. But unlike most previous reports on the state of the environment, this one openly gives credit to farmers for the efforts they are making.

Giving credit where it’s due

Cows on the catwalkJUST WHEN you think you’ve seen all the beauty queens another appears, but this one is a cow.

Miss Milk Cow 2015 was crowned in an annual cattle beauty contest in the Moc Chau district of Vietnam in mid October.

126 cows paraded and the winner’s owner, Mr Li, took away six million Dong (£174) in prize money.

Local media report that the 126 competing cows were chosen from 18,000 reared in the region. Each was cleaned and decorat-ed with ribbons and bows.

Judging criteria included physique, which prompted some farmers to fashion the animal’s tails into weird and wonderful shapes.

Investors run coldWHO SAYS the Chinese never fail?

Chinese investors have pulled the plug on a proposed $80 million dairy factory that was set to spring up at Otorohanga.

Chinese investors from He Run International Investment signed with three Kiwi investors for the factory which would have made high-value infant formula and cheese.

But minority sharehold-ers confirm the plans went cold following the stock market wobbles in China.

Journalists’ blind eyesNOT ALL the revelations in the landmark ‘Environ-ment Aotearoa 2015’ report are damming for the farming sector, as some mainstream media insist you believe.

The report fingers nitrate leaching from dairy farms as a chief cause of increasing river pollu-tion. But it also notes the tremendous efforts of farmers to do their best for the environment.

Some media outlets have conveniently omitted the good things farmers are doing for the environ-ment.

New chair knows the drillDAIRYNZ’S NEW board will meet early next month to elect a chairman.

Milking It is reliably informed that Ohaupo farmer and former Fon-terra director Jim van der Poel is tipped for the role.

He is no stranger to DairyNZ, having served as chairman of Dexcel, which merged with Dairy InSight to form DairyNZ in Novem-ber 2007.

Van der Poel will replace John Luxton who retired this month.

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

ABC audited circulation 27,589 as at 30.06.2015 ISSN 1175-463X

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OPINION // 19

IN BRIEF

Wills joins co-op boardRAVENSDOWN’S NEW director for the eastern North Island, Bruce Wills, has attended his first board meeting.

The Hawke’s Bay sheep and beef farmer, a for-mer Federated Farmers president, says it “seems a great time to join Ravensdown as a confidence and quiet determination pervades the business”.

“There’s a feeling that the strategy is the right one and we farmer shareholders have a strong management team in charge of executing that strategy.”

Chairman John Henderson welcomed Wills as an “insightful thinker who cares about the coop-erative’s performance”.

Henderson commented that “customers are committing to soil and feed testing and are pur-chasing fertiliser to apply while they can”.

Brian Eccles, Cashmanager Rural.Creating certainty in an

uncertain world

IN A volatile market there is never a better time to take financial stock of a business. This new trad-ing environment has dairy prices unpredictable, and borrowing to cover oper-ating costs is inevitable for most dairy farmers. They will want to limit that exposure in future.

To keep overdrafts to a minimum over the next 12-24 months requires some big tactical deci-sions. Getting a financial snapshot of their business will help farmers do this by confronting the new envi-ronment with clarity.

Until now, making incremental changes to make farms highly effi-cient has been the main focus. But right now pro-ducing as much milk as the vat can hold is not a pri-ority.

Today farmers need to think about making big changes to their busi-ness. Chiefly this will be reducing direct costs of production. And because a great thing about farm-ing is that all direct costs are very elastic, changing a few important metrics can affect marginal returns greatly.

In the past farmers had to make ‘gut’ calls when changing their busi-ness systems. But with the advent of the cloud and modelling software they can take charge of their own financial future. Soft-ware systems today enable farmers to put in their own

data and rationally draw a conclusion from viable alternatives.

This is called financial modelling. In an uncer-tain environment it gives farmers comfort that a dramatic change to their business financially could be a step in the right direc-tion. The effect of any change can be calculated on the bottom line, which creates more certainty than would otherwise be achievable.

It can be greatly rewarding to sit in the office and play around with ‘what if ’ scenarios. This empowers dairy farm-ers and reduces the stress caused by the uncontrolla-ble -- The Price of Milk.

The approach to solv-ing a big problem is to break it down into little problems. Right now, all the little things with a dollar sign next to them are important. That doesn’t mean you need to swing to not spending money at all. All that does is create fear and uncer-tainty and restrict your business. However, if you look after your cashflow then profit will look after itself.

Dairy farmers have a myriad options to con-sider and/or advice from external parties. No set recipe works for all farms. But farmers are extremely good at navigating their way through options if they can look at their effects on their bottom

Three consecutive rises in dairy payouts are welcome but many farmers still face a hefty financial challenge. Brian Eccles, of Cashmanager Rural, suggests ways to navigate the ‘new normal’ to gain some certainty in uncertain times.

line. Financial modelling makes that happen.

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can always get external advice. A problem shared in this industry is a prob-lem solved.

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20 // AGRIBUSINESS

Farm sales dippingFARM SALES are easing says the Real Estate Insti-tute of NZ (REINZ).

There were 10 fewer farm sales (-2.9%) in the three months ended September 2015 than in the three months ended September 2014.

Overall, there were 337 farm sales in the three months ended September 2015, vs 387 in the three months ended August 2015 (-12.9%) and 347 in the three months ended September 2014.

1726 farms were sold in the year to September 2015, 10.1% fewer than in the year to September 2014.

Six regions recorded increases in sales volume in the three months ended September 2015 vs the three months ended September 2014.

Auckland recorded the largest increase in sales (+19 sales), followed by Hawkes Bay (+10 sales) and Wellington (+9 sales). Compared to the three months ended August 2015, three regions recorded an increase in sales.

“Spring sunshine, warmer temperatures, good prospects for beef and lamb and the slow turnaround in the dairy industry are combining to lift morale in the rural sector,” says REINZ rural spokesman Brian Peacocke.

“The latest payout figure from Fonterra and the lift in the Global Dairy Trade auction prices have stimulated a collective sigh of relief among dairy farmers.

Co-founder retires... again

DAIRY WOMENS Network (DWN) needs to keep work-ing closely with partners such as DairyNZ, Agri Womens Devel-opment Trust, beef farmers and AgITO, says its retiring trustee, Hilary Webber.

“All of us need to work together for the betterment of dairy woman and for the betterment of the New Zealand dairy industry to make it, firstly, more profitable – which we need at the moment and, secondly, more sustainable,”

Webber, a co-founder of DWN, was presented with a Certificate of Leadership and Service; she rejoined the board in 2013.

Trustee Cathy Brown says that in 1998 Webber, with other Waikato dairy women, had a dream to set up a professional body for dairy women.

They decided to use technology to link women and the first e-digest was established. “This was before rural broadband so that was no

mean feat.” “DWN has grown from a

Waikato group to a national organ-isation with over 8000. We are a world leader for women in dairy. We will always hear a voice which says ‘think bigger, learn more’,” Brown said.

That e-digest connection built relationships throughout NZ as

women built their knowledge. It was a vital platform for learning from others and Webber actively shared her knowledge.

“I remember the hot conversa-tions when Fonterra was formed; in fact I think we learnt more from those conversations than from the industry.”

Webber became the founding

chair in 2002 and the organisation was able to get funding to hire the first general manager, Linda Clark. On this platform Dairy Days were extended throughout the country.

“Hilary was passionate about continued learning and supporting women to be the best they could be for the business of dairy and she is very keen to continue that way with the regional groups in the area,” Brown said.

Webber says the dream of a net-work for dairy women started for her as she visited farms as a direc-tor of Dairy Group.

“I saw women on farms in the early 1990s carrying buckets, doing the accounts, many of them in cow-sheds milking, doing the office work and the cow records…. But when you went to dairy company meetings they weren’t there,” she said.

“They were the invisible, silent force of our industry. When I look back from 2015 to the early 1990s, what a wonderful change we’ve had. We have women now start-ing to come into the boardrooms in numbers.”


Hilary Webber (left) with DWN chair Justine Kidd.

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AGRIBUSINESS // 21

Dairy Womens Network hits 8000 members

DAIRY WOMEN’S Net-work membership has grown from 5079 last year to at least 8000 members, chairman Justine Kidd says.

The ‘official’ figure pre-sented at the annual meet-ing in Hamilton was 7186 but that was based on financial year-end figures at May 31, 2015. The mem-

bership database shows that at least 79% of mem-bers are onfarm dairy women.

“Our network has grown to over 8000 mem-bers today, we have piloted new programmes, actively used social media to sup-port and respond to our members’ needs and wel-comed new partners sup-porting Dairy Women’s Network (DWN),” Kidd told the meeting.

All activity was deliv-

ered with “strong com-mercial discipline” that achieved a financial sur-plus.

“I want to acknowledge the outstanding perfor-mance in these challeng-ing times,” Kidd said. The delivery of modules had exceeded key perfor-mance indicators in the number of participants and in evaluations with exceptional scores being achieved.

“This success cements


SPONSORSHIP IS dead; in most cas-es it is a weak marketing discipline, Sam Higgins, marketing manager for MSD Animal Health told the Dairy Womens Network agm.

“It really isn’t measurable. When you hear it said… ‘from an organisa-tion that is taking sponsorship’ or ‘we can make your logo bigger’, it’s game over,” he told DWN which has a ‘partnership’ with MSD.

“A lot of organisations we have sponsored [had the mindset that]

we were an income stream. That is why I never use the word sponsor-ship. I see us as a partner because partnering is all about value; it is a discipline you can prove and defend, a discipline you can measure.

“As economic times become tougher this becomes more impor-tant. We have been a DWN partner for six years; we intend to carry on that partnership into the future. Why? Because we see value; the value is not in our logo.”

SPONSORSHIP IS A DEAD DUCK

the vision of the Dairy Women’s Network module method to deliver needs based training.”

Chief executive Zelda de Villiers said there was no doubt this season has been and will be a tough one – probably the tough-est one the New Zealand dairy industry has faced in years.

When it gets tough it gets a little hard to remember how good we had it in the past -- for example what a record year we had recently, she said.

The night was a cele-bration of success. During the past year DWN had established five new groups and piloted a hub.

A hub was established in Northland and three new groups were established in Far North, Whangarei and Kaipara.

Megan McCracken was appointed as hub leader with a focus on coordinat-ing regions with relatively low dairy farming density and a number of smaller groups.

In the South Island a new group was started at Lincoln University (a pilot aimed at female ag students) and, due to demand, a new group in North Otago. “We believe there is scope to establish a number of other groups this year as well as a second hub in Southland,” de Villiers said.

Last year DWN devel-oped and piloted the dairy module concept with DairyNZ. Five modules were presented this year in 40 locations and attended by 991 attendees. Regional convenors facilitated 150 regional days – social days, moo moans (getting off farm during calving), fun days like “cheese making” and many other creative grassroots learning events.

Partner days included ‘Breed them, weigh them, track them’, ‘More than just a number’ and ‘Suc-cessful calf rearing’.

Two new modules will be launched from the end of this month: ‘Stepping up safely’ – a collaboration with DairyNZ and Work-

Safe with assistance from FarmSource and Haz-ardCo to 20 locations. The finance module, ‘Track-ing your cash’, will be col-laborations with DairyNZ assisted by ASB and Bal-lance.

The annual confer-ence next year will take place in Hamilton on May 4 and 5 themed ‘United to succeed’. MSD animal health marketing man-ager Sam Higgins said his contribution to 2106 Dairy Womens Network confer-ence will be to bring well known Victoria dairy vet Gemma Chuck over from Australia. Chuck holds a PhD in calf health. She will hold two workshops during the conference.

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All the latest stories and more at www.dairynews.co.nz

Dairy Women’s Network trustees, from left: Cathy Brown, Hilary Webber, chair Justine Kidd, Alison Gibb, Chris Stevens, Donna Smit and Pamela Storey.

Sam Higgins, MSD Animal Health.

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22 // MANAGEMENT

Humps and hollows deal with the delugeIT’S SOMETIMES jok-ingly called the ‘wet coast’ and for good reason. The westerly winds that sweep across the Tasman Sea can dump massive rains on the forests and flats where

dairy farmers operate -- from 2500mm/year to as high as 6000mm! And the local DairyNZ consulting officer, Ross Bishop, says farmers have become very proficient at manag-

ing its effects.Bishop knows the West

Coast well. Originally from Hamilton, he came to the Coast in 1990 as a MAF advisor, serving in a variety of farm consulting

roles then joining DairyNZ in 2012. He’s based in Greymouth, the largest of three towns on the Coast.

Dairying is the main farming activity and the producers are a fiercely

independent lot who supply their own coopera-tive, Westland Milk Prod-ucts, Hokitika. There are no Fonterra signs and few sheep – the rain is not con-ducive to wool production.

In the 19th century Hok-itika was famous for gold-

mining and enjoyed a close relationship with Mel-bourne, even being called a ‘suburb’ of Melbourne. Now Hokitika depends on ‘white gold’, the stuff that flows, and it’s Bishop’s job to help keep it flowing.

“The [length] of my

patch is equivalent to the road distance between Auckland and Wellington and that area has roughly 400 dairy suppliers. I try to make sure that every two weeks I am at one or the other end of the supply area. It’s not cost effec-

ON THE West Coast of the South Island, for 30 years, many dairy farmers have ‘humped and hollowed’ their land, dealing with the whopping natural challenge the region lays down – massive rainfall. Reporter Peter Burke went to find out.

ROSS BISHOP says with the low payout and challenging weather he’s spending much of his time advising farmers how best to structure their businesses to withstand these pressures. Most farmers are now at or close to balance day, but some have still to get there.

“The whole tenor has im-proved in the last month. From May of last season until a month ago we were getting long consis-tent wet periods. If it wasn’t rain-ing it was cool and there wasn’t a lot of drying going on and we had soils that remained cold and wet

for a long time. “The spring started slowly

with pasture growth rates and soil temperatures two-three weeks behind where they would normally be. Overlaying that was a good mating last season so the calving rate was higher this season and that put a lot of pressure on early season pasture performance.”

Bishop says farmers tried to reduce their use of imported supplements, but that put pressure on pasture and led to grazing rotations quickening before they should have. That

pushed pastures covers down a bit which in turn suppressed pasture regrowth rates.

“It was hard yakka until about a month ago; I’m not saying we’re out of the woods yet, but pasture growth is matching stock demand.

“Milk production is track-ing at or about last season’s production which is a pretty good achievement. It’s a good re-minder to farmers that they can achieve similar levels of produc-tion on a pasture based system without the need for imported supplements.”

THINGS LOOKING UP

Humping and hollowing are features on many dairy farms on the West Coast.


MANAGEMENT // 23

Humps and hollows deal with the deluge

West Coast farmers have become proficient in managing the rainy weather.

tive to do it all in the same week, given the geogra-phy. When I am out on the road the days are full of appointments, meetings and generally catching up with farmers, looking at what’s happening and where.”

Bishop says while rain is a big issue, climatic variation is a problem for farmers. “Farm systems must be robust and resil-ient to cope with that vari-ability. When you overlay that on the market volatil-ity that’s become a part of the landscape it makes for a real challenge.”

Aside from the spe-cific climatic challenges, Bishop says success boils down to the basics of grass and cows and how these

are managed. Some Coast farmers are good at this and others not so good – just the normal bell curve. But the dairy farmers have learned to manage.

“On the West Coast we are coping with high inten-sities of rainfall you just don’t get in the majority of farming areas around New Zealand. Our dairy farmers’ ability to manage stock in pasture under persistent and challenging conditions sets them apart from farmers in other regions.

“Pugging is not unusual but we have an advan-tage in that the soils here drain quickly once the rain stops, so we can go through periods when we lack soil moisture. That

HUMPING AND hollowing, unique to the West Coast, creates contour in paddocks where there was previously none, helping drainage. This ‘rearranges’ low lying, poorly drained land, creating humps of dry and hol-lows from which water can drain, says Ross Bishop.

“If you look at a paddock that has been humped and hollowed you will notice that the back of it will be slightly higher than the front. By creating a bit of contour where it didn’t exist before you help that area become better drained…. You get about 10% more land by building humped areas. The aim is to sustain pasture and stock longer.”

Bishop says more land on the Coast could conceivably be turned into pasture if it was humped and hollowed.

Another way they improve drainage there is by ‘flipping’ the pasture -- cultivating it so that the sand, gravel and soils are mixed, cre-ate a freer draining pasture.

For DairyNZ’s Bishop the West Coast is now home. He loves the challenges in the job and the local people. “I was told the hard-est thing was to get people to come to the Coast; the next hardest thing is to get them to leave.”

FOLKS DO THINGS DIFFERENTLY THERE

was highlighted in late summer/early autumn of 2012-13 when the West Coast was the first area in the South Island to be declared a drought area.”

The rainfall varies hugely on the Coast. In simple terms, the fur-ther south you go to, say

Fox Glacier and beyond, the higher the rainfall; whereas at Karamea in the extreme north of the Coast there is less rain. But while the aver-age rainfall of the region remains constant, there are extremes – deluges and times of dry.

Ross Bishop

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24 // MANAGEMENT

Keeping sediments away protects bottom lineWINTER’S END is a time for cultivating pad-docks; this must be done well to prevent sediment and excessive nutrients getting into waterways from the land.

Topsoil erosion of bare or cultivated land, espe-cially in hill country, leads to the loss of valuable nutrients and sediment into rivers and streams. It can also disrupt infra-structure and increases the costs of maintenance, such as cleaning culverts and drains.

Sediment and some

nutrients, particularly phosphorus, are carried to streams primarily in the overland flow of water.

Runoff happens when water infiltration into the soil is slower than the application rate through

rain or irrigation. Because of soil textural and struc-tural differences, in some soils the natural rate of water infiltration is low. But the infiltration rate can be low due to frequent tillage or other manage-ment related constraints like compaction. Runoff will move into low-lying areas or to the edge of a field where it can pond for longer periods or move into a nearby sur-face watercourse. Avoid-ing compaction of soils through heavy stock tram-pling can lessen this risk.

Landowners and cul-tivation contractors can help mitigate the environ-mental and operational risks associated with cul-tivation, and protect their soil resources, by adopt-ing sound practices. These include cultivating along contours, sowing at right angles to the prevail-ing wind, and sediment retention measures such as detainment bunds for minimising soil loss.

Other conservation cultivation techniques include minimum tillage or no-tillage. If soil has been continuously cul-tivated for many years, the structure is likely to be poor because cultiva-tion reduces soil organic matter levels. No-tillage will not repair the damage overnight but it will even-tually. Herbicide spraying followed by direct drilling is an option on light erod-

ible soils.Soils should be culti-

vated when the moisture content is neither too high nor too low. To assess if soils are suitable for pri-mary cultivation, take a piece of soil (half the volume of an index finger) and press firmly to form a pencil.

Roll the soil into a ‘worm’ on the palm of one hand with the fingers of the other until it is about 40mm long x 7mm thick. Exert sufficient pres-sure to reduce the diam-eter of the worm to 7mm in 15-20 complete forward and back movements of the fingers. Conditions are suitable for cultivation if the soil cracks before the worm forms. The soil is too wet to cultivate if you can make the worm.

As a last defence for those days when you get intense rainfall, an effective filter strip will help to trap sediment and faecal matter before it can get into water bodies. Healthy riparian vegetation in these areas will also improve bank stability, reduce stock losses and provide habitat

for wildlife. Studies show that up

to 90% of sediment can be caught in an effectively constructed riparian filter strip. Any faecal bacteria trapped in long grass filter strips will die off.

In the filter strips grasses should gener-ally be kept to a height of at least 10-15cm, with a high density of stems and leaves at ground level for maximum trapping effect.

Waikato Regional Council has a specific rule in the regional plan which says farmers must not cul-tivate paddocks within 2m of a river, stream or lake bed.

You should treat this as a bare minimum width, especially on sloping land.

Apart from protect-ing water quality, good management of soils is also naturally important for the ongoing economic health of farming. Main-taining the health of our natural capital is therefore a wise investment in our regional future.• Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council.

Studies show that up to 90% of sediment can be caught in an effectively constructed riparian filter strip.

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FEED/ANIMAL HEALTH // 25

Maize silage yields high and growingSINCE THE introduction of Pioneer’s New Zealand silage trial programme in 1991, silage yields have increased by an average of 310 kgDM/ha/year.

In the 2014-15 growing season the national average trial programme yield was 23.77 tDM/ha, compared to 20.76 tDM/ha 10 years ago. In Waikato the 40 silage product advancement trials (PAT) had an average harvest of 25.38 tDM/ha with only one of these below 20 tDM/ha. In the lower North Island and Taranaki there were 42 PAT crops that averaged 23.07 tDM/ha with only five harvests below 20 tDM/ha.

In the last five years 279 silage plots have yielded more than 30 tDM/ha, 29 plots have yielded more than 35 tDM/ha and a handful have produced over 40 tDM/ha.

It is clear maize yields are high and increasing, so how can local farmers ensure they get the best from their maize silage crops this season?

Soil test and apply the appropriate nutrients. While applying too little nutrients can limit crop yields, applying too much fertiliser is costly and can lead to higher nutrient losses. Always take a 150mm soil test and ask your local fertiliser representative for an

appropriate crop nutrient management plan.

Select the right hybrid. Hybrid genetics play a huge role in determining crop yields. Maize breeding is in part a numbers game. The more genetic combinations tested, the greater the odds of developing improved products faster. There are more than 50 Pioneer maize breeding centres around the world so the company’s overall breeding effort is huge. Here in NZ we evaluate about 100 hybrids each year and this allows us to identify and commercialise new, higher yielding products.

When selecting a maize hybrid always ask for statistically significant yield information collected from multiple trials over several seasons. Never buy a bag of maize seed simply because it is cheap.

Plant at the recommended population. Modern maize hybrids are better able to produce a cob under moisture and density stress. When plant density optimums are exceeded, yields tend to level off rather than drop abruptly. Planting at the plant populations recommended in the Pioneer brand ‘Maize for Silage’ catalogue will allow you to achieve higher yields in favourable growing seasons while minimising yield risk in a dry year. It is important to plant at the population recommended for the hybrid and yield environment.

Control insects. While planting at a right population is critical, it is equally important that every seed you plant has the chance to grow into a high-yielding plant. Insects can be a problem especially when maize is planted in paddocks which have recently come out of pasture. This season AgResearch scientists are predicting a bumper black beetle population. The best way

to protect your crop is to plant Poncho treated maize seed.

Eliminate weeds. Weeds compete with maize plants for sunlight, water and nutrients. They can harbour insects which attack maize plants and some weeds can reduce silage palatability and even create toxicity problems. In my experience weedy maize crops fare particularly badly in dry seasons. To achieve good weed control, spray out the paddock completely and use a pre-emergent spray to kill grass and

broadleaf weeds. Inspect crops regularly post-emergence and apply additional weed-specific herbicides as required.

Your local merchant, contractor or Pioneer brand products representative can provide you with more tips on how to maximise maize silage yield and quality. • Ian Williams is a Pioneer forage specialist. Contact [email protected]


Never buy a bag of maize seed simply because it is cheap, says Pioneer Brand Products.


26 // ANIMAL HEALTH/BREEDING

New bulls rearrange AB leader boardA FRESH intake of dairy genetics has given the industry’s ranking of active sires (RAS) list a shakeup this month.

Twelve new 2011-born (12-code) bulls have knocked some ancestors

off the RAS list after the most recent DairyNZ animal evaluation update (October 10) incorporated herd testing data from new offspring now being milked on farms.

Jersey bull Bonacord

TGM Brock leads the new graduates from LIC’s sire proving scheme, winning the top spot for his breed on the RAS list and as the highest ranked young graduate in all breeds (Cross, Friesian and Jersey).

He joins Lynbrook PS Solar-Keet (KiwiCross) and San Ray FM Beamer (Holstein-Friesian), as the new trio of top bulls for their breeds, owned by LIC.

The co-op now has 14 of the top 15 bulls in all breeds and 18 of the top 20 Holstein-Friesians.

LIC bull acquisition manager Malcolm Ellis, responsible for selecting the co-op’s next generation of genetics, says “given that we are responsible for around three out of four calves born on dairy farms, we have a responsibility to continue to drive genetic gain… and set new

benchmarks in production efficiency.

“These results… show farmers that the lion’s share of top bulls is with their co-operative.”

Ellis cites the co-op’s “solid breeding programme, outstanding sire proving scheme and careful selection criteria”.

“You can’t hide from the numbers; everything is measured. If you pick bulls of high genetic merit they will deliver on the RAS list.

“Often individual farmers have elements of personal selection criteria but the RAS

list is the industry’s independent measure of excellence, based on the industry-designed and owned national breeding objective.”

A number of the new 2011-born bulls will now form part of LIC’s premier Forward Pack team, available to farmers this spring.

LIC’s Malcolm Ellis and Bonacord TGM Brock.

THE COUNTRY’S new number one Jersey sire, Bonacord TGM Brock 312023, was bred by Peter and Raelene Allison and family, Outram, Otago.

Born in 2011, Brock’s elite status as an artificial breeding sire was originally identi-fied in his DNA, which saw him enter LIC’s sire proving scheme (SPS) in 2012 and become available in the co-op’s genomically selected Premier Sires team.

Brock has 328 daughters milking on farms. He is listed on the DairyNZ RAS list (October 10, 2014) with 280 breeding worth (BW) and 74% reliability.

By the end of this season, he will have just over 1000 daughters.

He also has two half-brothers in LIC’s sire proving pipeline and three other relatives.

Following the DairyNZ animal evaluation update, Brock has joined LIC’s Forward Pack of bulls available to farmers this spring, tak-ing the Jersey team up to average 281BW.

NEW KID ON THE BLOCK

“You can’t hide the numbers: everything is measured. If you pick bulls of high genetic merit they will deliver on the RAS list.”

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BREAKING NEWS MANAGEMENT STORIES MARKETS & TRENDS MACHINERY REVIEWS

0025 OPS Disease_Katie-Dairy (280x187)_FAmm.indd 1 30/09/15 2:26 pm


FARM DARIES & EQUIPMENT // 27

Keeping the bulk milk tank clean

Clean milk tanks limit bacteria growth.

IN A dairy shed, milk quality depends in part on the cleanliness of the bulk milk tank says DairyNZ.

Using a tank cleaning system tailored to the bulk milk tank size, configuration and other available resources (water volume and quality) will minimise the need to climb inside the tank and scrub the surfaces by hand.

Automation of bulk milk tank cleaning can enable the tank to be cleaned immediately after emptying, reducing the risk of milk residues settling on the tank surfaces, and so limiting the opportunity for bacterial growth.

The benefits of selecting the right cleaning system include:

■ Lower costs: decide which system will cost the least to install and run.

■ Increased work efficiency: select the system which will require the least labour to run.

■ Maintain milk quality:

select the system which cleans most effectively.Different methods of

cleaning the bulk milk tank require varying labour inputs and offer varying scope for automation.

Manual cleaning involves cleaning of the bulk milk tank using buckets and brushes. It is limited to small lidded tanks because good access to all internal surfaces is needed.

Advantages: ■ Inexpensive to

establish ■ Effective results if done

properly.

Disadvantages: ■ High labout cost (if

done properly). ■ Danger due to lifting

buckets of hot water and detergent into tank (protective clothing should be worn when manually washing bulk tanks).

■ At risk of people taking short cuts due to time needed to do the job correctly.

■ Areas of the bulk tank

are easily missed, eg under bridge, agitators and corners.Manual cleaning in

place (CIP) involves the fitting of a spray ball or similar device at the top of a bulk milk tank.

The spray ball distrib-utes cleaning solutions to all internal surfaces. Pump sizes, spray ball design and water volumes need to be matched to provide good cleaning.

Advantages: ■ Can be retro fitted to

most bulk tanks. ■ Relatively inexpensive

to install. ■ Safer.

Disadvantages: ■ Sparay balls can block,

resulting in areas of the tank not being cleanedLimited contact time of

detergents if the water is not recirculated.

Optionally, automatic cleaning in place (CIP) has distinct advantages, and some disadvantages.

Advantages: ■ Wash cycles can be

tailored to suit size and configuration of tank and local resources.

■ Repeatable and consistent wash cycles.

■ Error and fault reporting.

■ Integrated with cooling systems.

■ Usually supplied with a dedicated hot water service.

■ Minimal handling of chemicals.

■ Required volumes of water and chemicals are reduced by recirculation.

■ Tank can be completely washed immediately

after emptying. ■ Little labour input. ■ Safer.

Disadvantages: ■ Wash times can be

excessive (outside milk processor requirements) if the water pressure is low.

■ Spray balls can block, resulting in areas of the tank not being cleaned.

■ Expensive. ■ Often only available as

an integral part of the bulk tank.

■ No system is fully auto-matic; chemical drums and effectiveness of wash program need to be monitored.

■ Automated systems not working correctly and going unnoticed by people.

■ Power cuts may change cleaning cycle times.

DO YOUR HOMEWORK❱❱ When installing a system consider the

costs involved and the labour input required

❱❱ Beware: bulk milk tank cleaning requires the use of concentrated chemicals and/or large volumes of hot water. Health and safety issues arise from this practice. Many tanks are ‘confined spaces’ and entering them can cause death from asphyxia-tion. Always remove the silo door when you enter.

❱❱ Never stand in a confined space where acid and alkaline cleaners mix, eg at the bottom of the bulk milk tank.


Cool your farm milkbefore it enters the farm tankVisitwww.schmidtthermal.com


28 // FARM DAIRIES & EQUIPMENT

Square liners pay off in milk qualityCHANGING MILK liners after every 2500 milkings is paying divi-dends for South Island sharemilkers Andrea Harvey and Jason DeBoo, says Skellerup.

They change the milk-ing liners irrespective of the payout; this year has been no exception. And it shows in their milk quality.

Their 550 cow, once a day (OAD) farm is in the picturesque Maruia Valley 350m above sea level, 40 minutes south of Murchi-son.

The pair are in their second season on the farm, with a 210ha milking platform, owned by Peter and Margaret Brooker on the Lewis Pass highway.

Andrea says they’ve brought with them the habits that have served

well on previous proper-ties, particularly in the 40 bail rotary dairy.

Cow behaviour for the whole herd is watched carefully at milking, and close attention is paid to udder and teat condition.

“We love our cows, and we make a point of know-ing them well. With a herd this size you can do that; you can pay attention to how they act in the shed and what their udders look like. If I see anything that looks a bit out of character at milking I mark the cow and make sure I check her next time she’s in.”

Any sign of bulk milk somatic cell counts (BMSCC) going over 150,000 and they imme-diately strip the herd and look for the cause. “Our SCC has always been

around 100,000-120,000 and that’s the way we want it. It’s easier to keep con-trol of it from day one rather than trying to stop a problem after it has devel-oped,” Andrea says.

“Last year was the first whole season OAD milk-ing for us and our new herd. SCC was kept under 150,000 fairly easily until late summer and we still achieved a grade free season for Westland Milk Products.”

Now that they and the cows are used to OAD, 2015-16 has started better, with only a handful of mastitis cows. “Last year was a challenge learning the new farm, the area and getting to know the cows, but this year it’s a breeze by comparison.”

Budgeted produc-

tion on their system 2 is 195,000kgMS for this season and though money is tight they do not buy cheaper dairy rubber-ware or try to make milk-ing liners last longer than they’re supposed to.

Andrea got her first experience of Skellerup VacPlus Square liners as a farm worker earlier in her career, and says after seeing the difference they made she wouldn’t use anything else.

“We had a lot of cup slip and teat end damage at that farm. Once we started using the squares we immediately shaved 30 minutes off our milk-ing time by speeding up the slow milkers. Teat end damage disappeared and cup slip stopped.

“It’s worth paying for them, especially here, with automatic cup removers. They last the distance. I’d

rather spend a bit more on rubberware and know we’re going to save on animal health costs later on because we have better udder health.”

It’s the same with changing liners at the industry recommended interval of 2500 milkings.

She and Jason have seen positive results from this on previous farms, and they’re sticking to it them-selves. “You can tell from the way the cows act and milk out when the liner’s wearing out. It’s easier to change them before you get a problem.”

Worn out rubber can harbour bacteria, which affects milk quality. It also feels bad on the cow’s teats, so she is more likely to kick the cups off, and it doesn’t flex properly, lead-ing to incomplete milk out, cup slip and potential teat end damage.

Paper towel for teatsDELAVAL HAS launched a paper towel for cleaning cows’ teats before milking.

Cellulose fibres in the ecopaper EP 1000 make it soft and absorbent, the company says.

It is on sale in Sweden, Denmark, France, Germany, Spain, Russia, Poland, Estonia, Lithuania, Latvia and Turkey.

DeLaval ecopaper EP 1000 suits pre-milking cleaning, absorb-ing liquid without tearing; it is gentle on teats and udders. A good milking and udder prepara-tion routine reduces mastitis inci-dence and improves milk letdown. By keeping teats clean and dry, milkers help to prevent the spread of conta-

gious bacteria, avoid cluster kick-off and contribute to keeping teats in good condition, the company says. “It is important to properly pre-pare the teats for milking; the goal is to milk a clean, dry teat to prevent unwanted bacteria being transferred,” says Nathalie Albrecht, solutions manager, DeLaval.

“Whether the milker uses a

foaming solution or another udder preparation solution, it is important to wipe the teat off carefully with a soft paper towel that will absorb properly and be strong enough not to fall apart.”

PRODUCT SPECS❱❱ Available in two layer rolls❱❱ Can be ordered in twin

pack 1000 sheet rolls❱❱ Safe for food contact

❱❱ 100% Ecolabel❱❱ Sheets 350 x 255 mm❱❱ Paper weight: 21.5

g/sq m.

Available from your local dairy merchant.Manufactured by:

or phone 03-389 9500 for details of your local merchant

NZS 4604

Licence 2509

Superheat Ltd www.superheat.co.nz

QUALITY DAIRY HOT WATER CYLINDERSSuperheat mains

pressure domestic

cylinders now

available

Put some bling into your dairy shed. Order your dairy cylinder with a stainless steel case.

From 180 litres to 1500 litresSuperheat Popular Sizes (measurements in mm)

STANDARD RANGE AVAILABLE WITH COPPER BARREL, GALVANISED OR STAINLESS CASE180 ltr 610 dia x 1330 high 3kW200 ltr 600 dia x 1295 high 3kW225 ltr 610 dia x 1550 high 3kW270 ltr 610 dia x 1750 high 3kW270 ltr 710 dia x 1350 high 3kW270 ltr 810 dia x 1050 high 3kW300 ltr 710 dia x 1330 high 3kW350 ltr 710 dia x 1660 high 2 x 3kW350 ltr 810 dia x 1400 high 2 x 3kW400 ltr 710 dia x 1820 high 2 x 3kW450 ltr 710 dia x 2010 high 2 x 3kW450 ltr 810 dia x 1600 high 2 x 3kW

500 ltr 915 dia x 1400 high 2 x 3kW600 ltr 810 da x 1900 high 3 x 3kW600 ltr 915 dia x 1500 high 3 x 3kW700 ltr 810 dia x 2200 high 3 x 3kW700 ltr 915 dia x 1700 high 3 x 3kW800 ltr 915 dia x 1900 high 3 x 3kW800 ltr 1160 dia x 1400 high 3 x 3kW1000 ltr 915 dia x 2400 high 3 x 3kW1000 ltr 1160 dia x 1650 high 3 x 3kWSUPERHEAT STAINLESS SIZES WITH PLASTIC CASE600 ltr 920 dia x 1650 high 3 x 3kW1000 ltr 1170 dia x 1640 high 3 x 5kW1200 ltr 1170 dia x 1865 high 3 x 5kW1500 ltr 1170 dia x 2180 high 3 x 5kW

NEW SIZES AVAILABLENow with stainless steel inner barrel and stainless outer case

350 ltr 710 dia x 1670 2 x3 kW400 ltr 710 dia x 1860 2 x 3kW450 ltr 710 dia x 2010 2 x 3kW500 ltr 810 dia x 1690 2 x 3kW600 ltr 810 dia x 2100 3 x 3kW700 ltr 810 dia x 2370 3 x 3kW

Special sizes available on request. Superheat cylinders include elements,

thermostats, valve pack, vacuum break and sight tube.

Email: [email protected] Visit our website www.hecton.co.nz

for a full list of productsor phone 03 215 8558

Meal Feeding Systems

Herringbone meal feed system Rotary meal & molasses feed system

Roller Mill System


FARM DAIRIES & EQUIPMENT // 29

Keep plant tidy, reap the benefitsTHE CLEANLINESS of a milking system and dairy is a critical determinant of milk quality says DairyNZ.

It points out that the New Zealand Food Safety Authority has strict guide-lines about cleaning of plant which relate to maintaining milk quality standards.

Cleaning must be done properly as bacteria can build up in plant and con-taminate milk. The bacte-ria affect milk quality by breaking down the com-ponents in milk. This reduces the shelf life of milk and milk products, and produces off flavours in cheeses and milk pow-ders.

Machine cleaning maintains milk quality, aiming to remove all milk residues from a plant and destroying resident bacte-ria. Milk is a difficult mate-rial to clean from surfaces because it has many dif-ferent components, each requiring different tem-peratures and chemicals to effect removal.

Shortcuts must not be taken during clean-ing; having good equip-

ment and systems in place will minimise the time required. Consistent use of a cleaning routine tai-lored to a milking plant -- and other adequate resources (volume and quality of water) -- will reduce the need to manu-ally scrub or ‘bomb’ clean a plant.

The benefits of correct cleaning include:

Maintain milk qual-ity. Put in place a process which ensures cleaning is done properly, so that all residues are removed and bacteria are destroyed

Ensure safety issues are considered

Bacteria can enter the plant from cows (teat skin and infected udders) and the environment (drawn into the cluster). The milking environment is ideal for bacteria growth. Effective machine clean-ing will control the pres-ence of bacteria in a plant

The quality of the water used is critical in achieving a successful clean. There are four key elements to the cleaning routine:

Thermal energy which comes from hot water

Time taken for effec-tive cleaning. This often depends on the type of cleaning system

Kinetic energy from water turbulence. Dic-tated by water volume and

flow rate (hence the use of a flushing pulsator to improve the cleaning of milk lines and recievers)

Chemical energy from acid (pH 2.5-3.0) and alkali (pH 11.5-12.5) detergents.

AS A minimum the following steps are crucial: ■ Cold water rinse after every milking

■ An alkali wash at least twice weekly

■ An acid wash after every milking

■ An acid rinse after every alkali wash.

An example of an ideal cleaning sequence which includes the minimum requirements is as follows:Cold water rinse

The post milking rinse needs to be completed immediately after milking or milk collection. It rinses most of the residual milk from the milking system and bulk milk tank.Hot water alkaline / acid wash

The milking system should be hot washed as least once a day – twice a day during high risk periods (eg when grading, calving). The bulk milk tank should be hot washed after every collection. Alkaline detergent wash

A hot water alkaline wash should be carried out at least twice weekly on a milking system and bulk milk tank. The wash water should be recycled for 5-7 minutes once water discharging the plant/tank is hot.Cold water acid wash

Cold water acid wash is normally carried out at night and hot alkaline washes after the morning milking.Acid sanitiser detergent wash

This should always be the final wash through a milking system and bulk milk tank. Acid sanitiser washes can be used hot or cold.

PLANT CLEANING ROUTINES

Clean milking plant delivers quality milk.

Future proo� ng, it’s the Plus+ you’ve been looking for.When you’re investing in a new rotary system, you don’t want to be caught out tomorrow by the choice you’ve made today. That’s why the seamlessly upgradeable and modular DeLaval Parallel Rotary PR1500 makes good business sense, at around the same price as less � exible systems.

Talk to your local DeLaval dealer about putting the Plus+ in your farm. Call 0800 222 228 or visit delaval.co.nz

The DeLaval PR1500 is New Zealand’s only seamlessly upgradeable rotary system

TRAC

TA55

285-DN


30 // FARM DAIRIES & EQUIPMENT

Boatbuilder leads to world firstA CHALLENGE by a young Morrinsville boatbuilder to Kiwi milking systems makers in 2007 was picked up by just one – and the rest is history.

Waikato Milking Systems (WMS) took notice of boatbuilder Josh Janmaat’s musings about

Waikato Milking Systems chief executive Dean Bell (right) and boatbuilder Josh Janmaat.

milking platform deck sizes “getting up there” in weight.

Janmaat, whose father Peter is a dairy farmer, had discerned during a Fieldays visit in 2007 the huge wear and tear imposed by concrete rotary platforms on their support structures.

Janmaat mused that the decks “could be manufactured in fibreglass which includes Kevlar, as are aircraft and racing yachts. The result would be a deck much lighter and stronger than concrete. They’d be cheaper to run and would avoid a lot of damage to the ‘I’ beam.”

Janmaat joined WMS and now leads a “small, talented team” producing what the firm’s chief executive, Dean Bell, describes as the world’s most technically advanced dairy platform.

The first Centrus composite platforms had 54 bails, then 60. In the last 12 months the company has launched the Centrus 84.

Bell, recently home from the World Dairy Expo in Wisconsin where the 84 bail Centrus was displayed, reports “tremendous interest” in the platform.

“The construction, so novel… attracts a lot of interest.”

Janmaat explains: “The first stage of the platform is a wooden plug which becomes the template for the mould, then 400 hours of hand sanding and buffing is involved”.

“The fibreglass/Kevalr sections of the platform are formed in closed moulds… enabling a better fibre-to-resin ratio.” The process allows consistent quality, he says. Each section is identical, which is not possible using concrete or steel.

“The decks are bonded together by a high-strength adhesive also used to make aircraft and by NASA in the construction of space craft.

Accuracy during the manufacture and rolling of the platform beam is plus or minus 1.5 millimetres.

And where the beam meets the platform the

pivot roller maintains perfect alignment with the rotary platform’s support structure -- the ‘I’ beam. The resulting 100% contact enhances the platform’s performance and decreases wear and tear.

Self-lubricating cast pivot rollers between two bearings are the only components that wear.

“Micro adjustment within the roller assembly provides precise height settings and allows a degree of fine tuning and precision never before achieved.

“This is especially important because cow loadings constantly change, especially at the beginning and end of milking.

“That uneven weight puts a point loading on rollers and bearings and can result in uneven wear which ultimately affects a platform’s operation. The pivot roller overcomes that problem, making it relatively simple to maintain the platform’s alignment.”

The lower weight of the Centrus 84 is a big attraction for farmers, Bell says.

“The weight, with bail work, from the track up is around 12.6 tonne. Fully loaded with 84 x 1000kg cows (the design maximum weight), totals 92.6t.

A concrete equivalent weighs around 46.2t and, with 84 x 1000kg cows, equates to a total weight of 130.2t – a difference of 37.6t.”

The 14 sections of a Centrus 84 platform fit into one shipping container.

“These decks are in demand worldwide by farmers operating intensive farming operations milking 24 hours a day, seven days a week.

“The Centrus 84 arrives on site anywhere in the world accompanied by a team from Waikato Milking Systems who oversee the unloading, setup and commissioning. Lasers are used to ensure the foundations and structure are true and precise.”

Stock water where you need it, when you need it most

Reliable and robust water pumping solutions have been developed by NOV to deliver water over long distances or high heads to where you need it, when you need it most. With single phase power the fully motorized MONO™ Longhaul™ range is a cost effective way to transfer water to your stock. A complete package includes a controller, dry-run prevention and over-pressure prevention making it the complete package.To find out more please contact your local NOV dealer or call us on 0800 659 012.

A00015 - Longhaul_Advert_A.indd 1 20/10/15 4:02:39 PM


MACHINERY & PRODUCTS // 31

Crop packaging to save livesCROP PACKAGING specialist Agpac will be painting the country-side pink again for the 2015-16 har-vest campaign, as its colourful silage film and net wrap raises awareness of breast cancer in rural communi-ties.

And the offer of blue films and net will help raise awareness of men’s prostate health.

Last year pink clad bales were dotted along roadsides, getting folk talking and helping raise money for the charitable trust Sweet Louise,

which supports women with ter-minal breast cancer.

Sweet Louise chief executive Fiona Hatton says the pink bale initiative “helped us gain traction in rural communities, and helped us to form good relationships with women’s groups and the like”. She applauded Agpac for donating $23,000 to help extend the trust’s reach into the rural community.

Agpac general manager Chris Dawson says the company worked with its film supplier Trioplast and

net provider Tama to develop the products.

Prostate Cancer Foundation NZ chief executive Graeme Woodside welcomed the blue initiative, citing recent research showing rural men are at high risk because they are slow to get themselves checked.

Men over 50 should get over their embarrassment and get to their doctor; early diagnosis gives a better chance of surviving and thriving.www.agpac.co.nz

TELEHANDLERS ARE the machines you didn’t realise you needed until you buy one, and their versatility ensures their market in New Zealand contin-ues to grow as people discover the per-formance they offer over and above a humble tractor loader.

The new LM series from New Hol-land builds on experience gained from previous handler ranges, but has been redesigned from the ground up to offer more power and lift capacity, comfort and improved visibility.

The five model offering for NZ has three standard models -- 6.32, 7.35 and 9.35 -- and two Elite versions -- 6.35 and 7.42; these designations indicate firstly maximum lift height in metres, then lift capacity in tonnes.

The range is powered by New Hol-

land’s own NEF engine to Tier 4a emis-sion standard with EcoBlue SCR for good performance and economy; they deliver 121hp in standard guise and 142hp in the Elite format.

Engines deliver power to a torque converter transmission with 40km/h capability; these have 4 forward and 3 reverse speeds in the Standard model, and a 6 forward, 3 reverse set-up in the Elite spec. The latter series also has auto-shifting in speeds 5 and 6, which should prove useful, and save fuel in haulage situations. Transmission output is delivered to front and rear axles which deliver full-time 4WD, and the choice of two, four or crab-steering modes.

The ‘H-shaped’ ladder chassis is stiffer than in previous models to resist flexing, which should result in more pre-cise placement.

Relocation of the hydraulic reser-voirs within the frame achieves better balance and a 40:60 weight distribution

which negates the need for a rear coun-terweight.

A new heavy-duty boom construc-tion uses larger diameter pivot pins and larger wear pads for durability and a longer service life.

Lift capacities are 3.2 to 4.2 tonnes, the latter rating being driven by arable customers wanting to use the largest buckets to shift grain into and out of stores quickly.

Standard models are fitted with a fixed displacement gear pump of 120L/

min output. The premium Elite models have variable displacement pumps to 140L/min and an increase in lift capac-ity of 300kg over their standard cousin.

Both ranges offer end-of-stroke damping on hydraulic rams, and the option of specifying boom suspen-sion; both features reduce stresses on machine and operator.

In the cab, visibility and general ergonomics are improved, and all prin-cipal controls are operated via an elec-tronic joystick including gear shift and

neutral selection. Elite versions ben-efit from the joystick being mounted in the armrest, including forward and reverse functions. Operator noise levels are kept under control with an overall rating of 75dBa, no doubt helped by the quieter Tier 4 engines.

Other features: cooling fans that automatically reverse every six minutes then run for 15 seconds to clear debris from engine and separate electric fans for the air-conditioning and transmis-sion units.

Agpac pink bales

Invisible until you buy oneMARK [email protected]

More than a humble tractor loader... New Holland’s LM series telehandlers.

OzMag 523

Sibelco Mag 2000and OzMag 523fertilisers help

arrest the declinein soil Mg levels.

Mag 2000

Low soil and thus pasture levels of Mg are evident with metabolic disorders such as Milk Fever and Grass Tetany.

Declining soil Mg levels will inevitably impact pasture production.

IT USED to be said ‘roller balers for grass and belt balers for straw’, but advances in design over the last decade mean that either seems capable of deal-ing with all crops. So the decision comes down to, are you happy with one-size-fits-all? Or do you need bales of vary-ing diameter?

Well known and respected for its range of belt balers, New Holland importer CB Norwood Distributors has announced the

launch of the new fixed chamber Roll Bale range comprising three options: the RB 125 Baler, the RB125 Combi, or the RB 135 Ultra (combi). The numerals indicate bale diameter -- Combi signify-ing the bale wrapping system, and Ultra showing that the machine is heavy duty and suits arduous conditions.

The core of the machines is a bale forming chamber comprising 18 heavy duty, wear resistant 200mm rollers with aggressive profiles to keep bales rotat-ing at all stages of formation, or dif-

ficult crop or climatic conditions. The maker says the higher number of roll-ers, compared to competitors, results in a greater surface area in the bale cham-ber, helping spread the loadings created by high density bales and so prolonging machine operating life.

Up front a 2.1m working width pickup on the RB 125, or 2.2m version on the RB 135, use five tine bars to pick up cleanly behind even very wide swaths.

Crop is fed from the pickup

to a 470mm feeder rotor made of Hardox 500 steel with 10mm thick feeder fingers. These push the crop through a chopper bank of 20 retract-able knives. If overloaded a hydraulic cutout disconnects drive to the pickup and feeder rotor, allowing bale forma-tion to carry on. On the RB 135 version, in-cab rotor reversing allows easy clear-ance of blockages.

Once formed, the bales can be cov-ered by conventional net wrap or

the operator can chose to use an optional film wrap system to cover

the circumference of the bale. This has the benefit of excluding air and

improving the fermentation pro-cess; it also helps maintain bale shape and has the potential to

reduce overall wrapping costs, because fewer layers of film wrap are needed to

cover the bale, or lower quality wrap options can be specified.

Control of the whole system is via an in-cab monitor with a large easily read display showing bale density, pto speed, net or film indication and the number of layers per bale; it can records bale counts in its memory for up to 50 jobs, which will help simplify invoicing at busy times.

With a low centre of gravity, gradi-ents and slopes should not pose any problems, and a choice of tyres will allow tailoring the machine to operat-ing conditions.

The RB 125 is available with super-wide 500-22.5 flotation tyres; the 125 and 135 Combi units can be specified with 500-50R17 items, all of which con-form to 3m transport widthwww.newholland.co.nz


32 // MACHINERY & PRODUCTS

Belts or rollers – you chooseMARK [email protected] New Holland’s roll

bale range.

The bales rotate at all stages of formation.

Katipo 1150x12FROM $21,999 +GST




Call us on 0800 487 853 or visit www.hustlerequipment.co.nz/sprayers

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As a result of more than 10,000 hours of farmer centric research, development and testing the Katipo is packed with unique features that make spraying a whole lot easier.

The tank shape eliminates chemical stagnation, settling out and contamination. A stronger cradle style chassis means both tank and chassis last longer than traditional wrap around designs, and it’s easier to connect to the tractor.Compact low centre of gravity design increases stability and makes filling easier.MixMax agitation system provides best in class agitation and allows you to choose how much you have - Max for Liquid fertilisers. Min for HerbicidesNZ’s toughest offering of both manual and hydraulic Booms reduce downtime.

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MACHINERY & PRODUCTS // 33

First time users can jump and drive away the McCormick VT.New vario models

good for contractors

IT’S TAKEN them a while, considering the ‘re-birth’ of McCormick took place in 2001, but manufacturer Argo has realised the need for a ‘vario’ style tractor in its product offering, and has launched the VT range.

Continuously variable transmissions (CVT) -- varios -- have found increasing favour, particularly with contractors who need continuous speed adjustment during harvesting, baling or transport work, where a conventional fixed ratio power shift set-up might not offer the exact speed required.

The McCormick VT range has three 4-cyl models from 144 to 166hp, with power boost in PTO and transport duties taking output to 175hp. These models are complemented by a pair of 6-cyl units with rated outputs of 165 and 177hp, which use ‘boost’ to achieve 192hp.

For the VT project the company has partnered with industry leader ZF, which has supplied its latest Terramatic unit with software developed by Argo. Product specialist Paul Wade says the design brief was “to make the VT easy and intuitive to drive. First time users can

jump on and drive away, and over time explore the sophisticated features of the tractors”.

In operation the VT system offers four driving modes, from auto -- push the pedal and go, like a family car -- to manual, where upper and lower engine speeds are set and the driver controls the travel speed. This is useful for keeping the tractor in a power band that exploits the torque and power available, so would be good for heavy draft work.

The other modes are cruise control for constant speed and PTO mode which maintains shaft speed, while adjusting travel speed as load demands.

Supplementing the four driving modes are

four speed bands -- 0-3km/h, 0-12km/h, 0-21km/h and 0-40 or 50km/h -- that can be pre-programmed for specific tasks. It is interesting to note that the change between each of the speed ranges is seamless, unlike some other two range systems on the market that require the tractor to be stationary before the change can be made.

The cabin and driver’s spaces have such ergonomic features as a seat mounted control console with a 12 inch touch screen displaying transmission, engine, PTO and hydraulic functions, and an optional display of GPS and ISOBUS control

MARK [email protected]

through the same screenBroadly speaking

the rest of the tractors’ specifications are the same as the semi-power shift X7 Pro-Drive models introduced last year, with features such as

9300kg lift capacity, 123L hydraulic flow via a load sensing system, and up to four rear and two mid-mount remotes

Expect to see first models in NZ mid-2016.www.agtek.co.nz

In operation the VT system offers four driving modes, from auto -- push the pedal and go, like a family car -- to manual, where upper and lower engine speeds are set and the driver controls the travel speed.

The first models arrive in New Zealand next year.

40,000 cows say they prefer a Redpath clear roof shelter … if cow’s could talk

NAn effective and affordable on-farm shelter system

NMultiple flooring options, or build over existing pads

NDesigned for Feedpads, Standoffshelters or Winteringbarns

N40,000 cows already enjoy a Redpath shelter for improved feed control, better pasture quality and protection from poor weather

Built on-site

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THE LIGHT truck market is 20% of the new car market in New Zealand, and the Toyota Hi-Lux has held top position for 27 years.

Come December 1 a range of 21 models will be launched and the prices have hit the dealerships, where there will be some-thing for everyone -- gnarly Otago farmer to Howick housewife. There are four specification grades -- S,SR, SR5 and SR5 Limited.

The new 8th genera-

tion Hi-Lux sees 18 models powered by the new 1GD diesel engine as used in the Prado; the remaining three petrol vehicles use the 1GRFE, 4L V6 layout.

Key change to the prod-uct offering will be the ‘pre-runner’ option avail-able on all 2WD drive models; it has the ground clearance and ride height of the 4WD and will suit drivers who want vis-ibility but don’t need all wheels driven. There’s also a choice of automatic transmission in four 2WD models, a choice that was lacking in the previous series.

4WD will feature in

twelve models and will remain the backbone of the product range; this is the source of the Hi-Lux’s legendary durabil-ity, as seen on many rural and municipal user shop-ping lists.

A new 6-speed auto or manual box option is avail-able for the three higher grades, and on some vehi-cles towing capacity is now a hefty 3500kgs, a key consideration for many buyers. As part of the new pack-age each new Hi-Lux has a 5-star ANCAP crash test rating thanks to such safety features as seven airbags, vehicle stabil-

ity control, active traction control, anti-lock brakes and brake assist, electronic brake-force distribution and trailer sway control.

Prices range

from$36,990 for the 2WD cab chassis option to $70,490 for the flagship 4WD double cab SR5 Lim-ited.www.toyota.co.nz


34 // MACHINERY & PRODUCTS


WITH TEN models covering 884 to 400hp, it’s fair to say the Claas Jaguar range of forage harvesters is the world’s largest.

And recently announced upgrades for the coming season will keep them at the front of harvesting tech-nology.

In the engine department, seven models are avail-able with the maker’s Dynamic Power function which automatically controls engine output to suit the pre-vailing conditions.

In practice the operator can select either maximum power, full power or normal power. The engine man-agement system will then match power to load in ten incremental steps, maximising output and optimising fuel consumption.

For example, the flagship 980 model can attain 884hp when used in the maximum setting, or as little as 272hp depending on load, and over 10 steps. By con-trast, in the normal mode it can operate between the minimum outputs of 272hp, up to 450hp in three steps.

Another added function allows the operator to enter the crop at maximum engine power, from where the system will automatically match engine speed for the most efficient setting, whilst the cruise pilot mode can be set to maintain forward speed, engine speed or throughput as required.

Other improvements for 2016 are the C-Motion control lever, already seen on some tractor models, and offering fingertip control of up to 13 functions, making life easier for operators who shift between machines or tractors.

Optional leather drivers’ seats with integral heating and cooling ensure comfort, LED lighting improves vis-ibility and keyed locks improve security of the ignition system, cab and fuel tanks.

To help improve traction an optional automatic tyre pressure control system can be specified on the 900 series machines; this monitors pressures every 30 min-utes to suit field or road.www.claasharvestcentre.co.nz

Power back in demand

Toyota Hi-Lux shows its hand

Toyota Hi-Lux has held the top position in NZ.

The 4wd feature remains the backbone of the product range.


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Dairy News 27 October 2015

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Transcript of Dairy News 27 October 2015