Central Plateau

Winners:

Share Farmer – Carlos and Bernice Delos Santos

Dairy Manager – Anthony Kiff

Dairy Trainee – Taylor Macdonald

29 March 2017

191 Mangatete Rd, Ngakuru, Rotorua

Handout prepared by:

Colin Grainger-Allen, DairyNZ

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Field Day Programme

29 March 2017 10:30am Welcome, Introductions and Health & Safety

Nathan & Elri Levin, NZDIA Regional Managers, Central Plateau

Lead facilitator of today’s field day is Colin Grainger-Allen

10.35am Dairy Trainee of the Year – Taylor Macdonald

Jordyn Crouch – Consulting Officer BOP, DairyNZ

10.45am Dairy Manager of the Year – Anhthony Kiff

Jordyn Crouch – Consulting Officer BOP, DairyNZ

11.15am Share Farmers of the Year – Carlos & Bernice Dalos Santos

Colin Grainger-Allen – Consulting Officer Central Plateau, DairyNZ

12:55pm Past Winner’s Reflection – Donald and Kirsten Watson

1.05pm BBQ lunch kindly sponsored by Farm Source, Rotorua

Health and Safety notices:

All children must be supervised by an adult at all times

Visitors must remain with the group and follow signs and directions

The farm has a non-smoking policy

This is an agricultural workplace, please take care

Please see one of the DairyNZ team is you require any assistance

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2017 Results

Share Farmer of the Year Carlos & Bernice Delos Santos

Dairy Manager of the Year Anthony Kiff

Runner Up Colin Tremain

Third Dylan Hilhorst

Dairy Trainee of the Year Taylor Macdonald

Runner Up Donna McKinley

Third Damon Harris

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Merit Awards

Dairy Trainee of the Year

B.O.P Regional Council Most Promising Entrant Award Scott Johnson

T H Enterprises Ltd Farming Knowledge Award Donna McKinley

Bayleys Real Estate Communication & Engagement Award Toni Schnuriger

Rotorua Lakes Council Community & Industry Involvement Award Daniel Smith

DairyNZ Practical Skills Award Damon Harris

Dairy Manager of the Year

BlackmanSpargo Rural & Commercial Law Ltd Most Promising Entrant

Award Colin Tremain

I.S. Dam Lining Ltd Leadership Award Anthony Kiff

Strettons Employee Engagement Award Ryan Orchard

Fonterra Farm Source Dairy Management Award Anthony Kiff

DeLaval Livestock Management Award Dylan Hilhorst

PrimaryITO Power Play Award Cliff Ballinger

Fonterra Farm Source Feed Management Award Anthony Kiff

Westpac Financial Management & Planning Award Ryan Orchard

Share Farmer of the Year

DairyNZ Human Resources Award Carlos & Bernice Delos Santos

Ecolab Farm Dairy Hygiene Award Carlos & Bernice Delos Santos

Federated Farmers Leadership Award Mark & Adelle Pacey

Honda Farm Safety and Health Award Reece Wine & Amy Seymour

LIC Recording and Productivity Award Mark & Adelle Pacey

Meridian Energy Farm Environment Award Mark & Adelle Pacey

Ravensdown Pasture Performance Award Carlos & Bernice Delos Santos

Westpac Business Performance Award Carlos & Bernice Delos Santos

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DAIRY TRAINEE OF THE YEAR

Taylor Macdonald

Judge’s Comments

Well done Taylor you presented yourself very well and we were impressed with your goals and plans to progress

in the industry. It would have been great to see these written down in a presentation for us to get a good picture

of your plan. Include in this plan the employment progress that you mentioned. You seem busy with hunting and

fishing but using your local Young Farmers group may help you with networking and peer support/competition. It

is always good to know your weaknesses and you have addressed this well with making sure to stop and sit down

to get things done. We look forward to watching your progress.

Background

Only member of my immediate family pursuing a career in dairy farming

Originally from Tauranga/Mt Maunganui

Moved to Waikite Valley/Ngakuru in 2011 where we lived on a deer breeding stud farm

Went to Reporoa College until 2013

In 2013 left school to take an opportunity working full time for sharemilkers Ross & Katrina Weren in

Rerewhakaaitu. This job was milking 300 cows on 110 ha

Moved into 2IC position in June 2015 for a contract milker in Reporoa, milking 660 cows on 240Ha

Shifted to Clearview Farms in October 2015

Farm Overview

2IC for Phill and Diane Herdman on Clearview Farms Ltd

Peak milking 470 cows on 154 ha located on the Reporoa side of the Paeroa Range

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System 3 farm producing 200,000kgMS per season

One other full time staff member

Goals

To be managing up to 600 cows by the 2018-19 season

To build a substantial equity base within the dairy Industry

To buy into a small 50/50 sharemilking operation up to 300 cows by the 2022-23 season

Obtain Level 5 Business and Production Management Industry Training

Primary ITO Level 2

Milk Quality Level 1

Primary ITO Level 3 (Feeding & Pastures, Animal Health & Husbandry & Dairy Cattle Breeding)

Fonterra Grow Safe

Currently completing Primary ITO Dairy Farming Level 4 & Milk Quality Level 2

Off Farm Interests

Motocross & trail riding

Hunting

Fishing

Mountain biking

Spending time with my fiancé

Anything with wheels or an engine

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DAIRY MANAGER OF THE YEAR

Anthony Kiff

Merit Awards – Judges Citations

Fonterra Farm Source Feed Management Award

Anthony shows great use, implementation and understanding of feed management programs – some of which he

has designed. Anthony shows high levels of awareness around the value of high quality pasture feeding and

pasture utilisation in NZ dairy systems. Also understands and manages seasonal supply and demand of feed to a

very high standard.

Fonterra Farm Source Dairy management Award

Anthony demonstrated exceptional knowledge and understanding of his farm system. He has in place

outstanding management procedures and understanding of maximizing resources while producing a high quality

milk product. Anthony has shown impressive career and personal growth in the industry and a real passion to see

others do the same.

I.S. Dam Lining Ltd. Leadership Award

Anthony shows excellent leadership skills of a large team. He leads with passion and sets a very high standard. He

empowers his staff who he also treats as a family unit. Anthony is motivated to be the best he can be and this

attitude flows through to his staff.

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Background

Anthony and Danelle are married. They have 3 children aged 4, 7 and 10 and his little brother has lived

with them since he was 13

Grew up in Reporoa

2000-2005 Rammsey Round Wood Sawmill, Rainbow Mountain

2005-2006 Forestry industry braking out for hauler

2006-2009 Opportunity with old sawmill manager at Perma Pine Sawmill

2009-2013 Landcorp Farming (progressed from dairy assistant to 2IC for 2300 cows)

2012-2013 Contract milking (Whakamaru 750 cows)

2013-2017 Landcorp Farming (Manager 1180 cows)

Farm Overview

Manager for Landcorp Farming who are sharemilking. Pengxin are the landowners

385 ha

1180 peak cows

System 3 farm

Target milk production 500,000 currently sitting at 447,000

Cows are producing 1.6 MS/ day

6.5 FTE + 1 calf rearer

Eight houses, two of which belong to the dairy training academy

30 people on farm in total

60 bail rotary, in-shed feed system with basic Protrack

Responsibilities

Leading a safe and profitable business

Looking after the landowner and sharemilkers’ budgets and finances (also GST and coding)

Day to day running of farm

Feed budgeting and long term planning

Ensuring environmental requirements are abided by daily

Creating business plans and directing all capital projects (55 to date from 2013)

Rosters and payroll

Monitoring intensive grazing system

Staff progression

“Setting a culture of pre-empting risk rather than dealing with mistakes or accidents”

Challenges of the farm

Coming onto farm after 5 years in receivership - lack of farm maintenance e.g. fences, no gates

Having potash levels so high they couldn’t be measured

Old pastures

Original cowshed took 13-14 hours per day to milk cows, twice

Finding life balance for all team members, started on 130+ hour fortnights in peak period now down to

around 110 hour fortnight

Creating systems

Building a major safety culture from -180% Assure Quality safety audits to now 100%

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Training herring bone cows to rotary

Previous 10 year cow death rates of 5-6% now under 2%

Industry lacking experienced staff

Strengths of the farm

Supportive landowner (Shanghai Pengxin) and sharemilker (Landcorp Farming)

Pasture growth

Central dairy

Training and Development

Completed:

AgITO

Leadership Courses

HR Courses

Safety Courses

Ongoing:

Mental wellbeing awareness discussions

Currently completing Professional Primary Producers Business Management programme

To further my career by completing the ITO Level 5 diploma in Farm Business Management

Goal setting

“My short term goals are to be a professional farm manager to create a productive business for the farm owners and to have a good work/life balance to support and watch my young family grow”

“Being in a corporate farm management position enables me to gather the technology, resources and education to manage my own herd at a later date”

“I’m open to anything, but my medium term goal is to be contract milking and long term goal is to be 50/50 sharemilker”

Financial Specific and easurable goals:

Short term – Save $20,000 per year Medium term – work towards $300,000 of equity by 2025

What is the biggest challenge facing you now?

The job I find most challenging in my role is staff engagement, communication and motivation. Having a large team, if one member is not fully engaged it can have a roll-on effect through the whole operation. This means a big part of my job is keeping all staff fully involved so they take ownership.

"I could have the best farm, the best stock, but without the right people with a positive attitude supporting me it would be impossible to grow any business.”

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SHARE FARMER OF THE YEAR

Carlos and Bernice Delos Santos

Background and History

Carlos

Came here in New Zealand in 2001 from the Philippines

Started farming December 2001

Farm Assistant 2002-2004 (1000 cows)

Herd Manager 2004-2006 (1000 cows)

Assistant Manager 2006-2007 (750 cows)

Achievements

2005 AgITO Central Plateau Trainee of the Year

2007 DIA East Waikato Dairy Trainee of the Year

Qualification

Diploma in Agribusiness Management (Wintec)

Bernice

Came to NZ in 2007

Registered nurse in the Philippines

Certificate in Agriculture Level 4

On farm Milk Quality Course

Together

Got married in 2008; Two children, Carl, 6 and Nini, 4 and one coming soon.

21% Variable order sharemilker 300 cows (2007-2010)

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2010 Finalist Waikato SMOTY

21% Variable order sharemilker 600 cows (2010-2014)

21% Variable order sharemilker 1350 cows (2014-2015)

50/50 Sharemilker 300 cows (2015 – present)

3rd place 2016 Central Plateau SFOTY and Dairy Hygiene Award

Judges citations for Carlos and Bernice’s Merit Awards DairyNZ Human Resources

Judges Comment:

We thought that even though you are clearly working very hard, you make sure that you take time out for

yourselves and for your family. You recognize the value of this to your business. Whilst you are not currently

employing full time staff we could see that you have been and would continue to be a great employer in the future.

Ecolab Farm Dairy Hygiene

Judges Comment:

Your comments regarding the farm dairy being a food producing area were backed up by the cleanliness of the

facility. You also had detailed procedures for incoming staff that would have ensured the safe operation of the

farm dairy in your absence. All chemicals and veterinary drugs were stored in an appropriate manner. Well done.

Ravensdown Pasture Performance

Judges Comments:

The turnaround from a drystock property to a highly productive dairy farm was remarkable in such a short

timeframe. You identified that plate metering pasture was unrealistic on such a steep property and had

developed your own pasture scoring system that we felt was excellent.

We also felt that your productive performance and pasture management was exceptional given the difficult

property.

Westpac Business Performance

Judges Comments:

You provided the judges with a very detailed and realistic summary of where you are and where you are going.

You identified KPI’s to judge how you were tracking and expressed your satisfaction with your performance

against these KPI’s. We were left in no doubt that you will achieve your goal of farm ownership.

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Vision and Goals

“To grow and keep expanding our business, to have security for our family while enjoying the lifestyle of farming.” “Through planning, commitment, and communication we gain action.” Short Term Goals: - Minimise overdraft facilities - Pay off at least $30,000 per annum of principal to our loan Medium Term Goal: - Secure a bigger 50/50 Sharemilking position between 450-600 cows in 1-2 years Long Term Goal: - Own our own dairy farm (250-300 cows) by 2030

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Farm Overview Farm Owners: McPherson Family Trust, Andrew and Dorothy McPherson Area: 140 ha effective (90 ha dairy, 50 ha young stock) Soil: Pumice Soil Fertility: pH P K S

5.8-6.5 12-31 5-7 11-34 Altitude and Rainfall: 300m above sea level, 1200mm average rainfall Pasture: Permanent ryegrass clover mix 11 ha chicory to be regrassed to annual ryegrass (Hogan) Drainage: Free draining soil Farm Dairy: 40 ASHB Challenges: This is a steep farm Poor pasture species on hills Weeds Soil fertility

Farm map: see overleaf

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Farm Map showing the milking and youngstock areas

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Key Performance Indicators (Source: DairyBase – North Island - Sharemilker 50-50)

Farm Physical KPI’s

Our Farm Target 2016-2017

Our Farm 2015-2016

Benchmark 2015-2016

Cows/ha 3.3 3.2 2.8

Kg MS/ha 1147 1096 1080

Kg MS/cow 350 341 388

Cows/FTE 134 131 150

KgMS/FTE 47,146 44,859 58,336

Dairy Business Performance

Our Farm Target 2016-2017

Our Farm 2015-2016

Benchmark 2015-2016

Gross Farm Revenue/ha 2,839 1,847 2,549

Operating Expenses/ha 1,642 2,322 2,865

Operating Profit (EFS)/ha 1,196 -475 -316

Gross Farm Revenue /kg MS 3.85 2.62 2.36

Operating Expenses/kg MS 2.23 3.29 2.65

EFS/kg MS 1.62 -0.67 -0.29

FWE/kg MS 1.67 2.12 1.97

Operating Profit Margin % 42% -25.7% -12.4%

Livestock Herd Details

The herd is predominantly crossbreed, with a good number of Jerseys and some Friesians.

BW: 78/44 PW: 89/57 Ancestry: 93%

EBL Status Free TB Status C5

Calving Date: Herd 23 July; heifers 16 July

All G3 Profiled (DNA)

Sire Proving Scheme herd

Mating management

Check at-risk cows

Metricheck & metricure 4 weeks before mating

Mating starts 14 October for 6 weeks to Sire Proving Scheme Friesian followed by bulls until 2nd January

Yearlings AI to crossbreed for 4 weeks

Premating 4-5 weeks before Planned Start of Mating

CIDR non-cycling cows

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On Farm Management Staff:

The farm is mainly run by Carlos and Bernice, with the help of a relief milker when required.

1 full time staff member to start soon

Carlos and Bernice have previously employed 5 full time staff and 2 relief milkers on a 1350 cow farm

o Operated a ‘no timesheet no pay’ policy

o Roster planner in the cowshed

o Regular morning tea meetings in the cowshed office

o Monthly staff meeting updates regarding health and safety updates

o Lots of staff get-togethers

o Ensured training and upskilling was part of the package

They keep in touch with all their previous employees and employers

Health & Safety:

Smoke-free farm and houses

Bike helmet worn at all times when using bike

Health & safety manual in the cowshed office

Safety signs around farm

Machinery regularly serviced with records

Constantly reviewing health and safety policies

Farm System:

System 3

Palm kernel is strategically used to fill feed deficits, 2-3 kgs June to September, 3-5 kgs January to March

Adlib pke to young stock from June to August

Crop 11 ha of chicory for summer crop

Sileage bales made on farm to be used in early spring

Fertiliser applied based on consultant recommendation (spring and autumn)

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Urea applied by plane

Lime 30% of farm annually

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Pasture Management:

Farm walks and feed wedge done in the past.

On this farm, due to the challenging nature of the farm, paddocks are ranked/scored 1-10

Regular ride around the farm (5 days)

Grazing history recorded

Regular meeting with consultant and owner

Quicker round on hills (16 - 19days)

10% of farm regrassed to annual and/or perennial

Grazing management (rotation length detail)

WINTER

- Pre grazing 3200 kg DM/ha

- Post grazing 1000 kg DM/ha

- 100 to 140 days round

- Winter spray paddocks identified with bad

infestation of weeds

- Dry cows : Fats – 8 kgs

Skinnys – 9 kgs

- 300 x 9 kg DM/day divided by 140 ha

= 2700 kg DM/day

= 19 kg DM Demand/ha/day

- Yearlings 6-8 kg DM/day

SPRING

- Pre grazing 2800 kg DM/ha

- Post grazing 1450 kg DM/ha

- 20 to 26 days round

- Urea 60-100 kg/ha

- Balance date is 1st of October

- Farm owner to chopper spray 1/3 of the farm

classified as capital weeds

- Milking Cows 18 kg/day

= 38kg DM Demand/ha/day

- Yearlings 9 kg DM/day

SUMMER

- Pre grazing 2600 kg DM/day

- Post grazing 1400 kg DM/day

- 35 to 40 days round

- Demand = Milkers 16-18 kg/DM/day

AUTUMN

- Pre grazing 2500 to 2600 kg DM/day

- Post grazing 1400 kg DM/day

- 50 to 60 days round

- Demand = Milkers 14-15 kg/DM/day

Winter Grazing: None - all pregnant cows stay on farm over winter fed with grass, some hay, and some palm kernel.

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Young Stock Management:

25% are kept for replacements

Others are bobbied

Picked up once a day in the paddock

Calves drenched with colostrum

Fed twice a day for 3 weeks then OAD until they reach 100kg weight

Calf meal from Day 1

This year, R1’s will be grazed off farm from 1st of May Environmental:

Fertiliser is applied based on soil test and overseer. It is split for spring and autumn application. All effluent paddocks are missed out on fertiliser application as it won’t need it anymore

Waterways are all fenced off

Sand trap to catch sediment and is cleaned regularly

Effluent run recorded

Plan to put in low volume sprinklers

New effluent pond to be built in December this year

Water status - E. coli absent

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Financial

Summary of Farm Working Expenses this year compared to previous year

2016-2017 2015-2016

(103,250 MS – 295 Cows 140 ha) (98,689 MS – 289 Cows 140 ha)

Farm Working Expenses

$/kgMS $/ha $/cow TOTAL $/kgMS $/ha $/cow TOTAL

Employment & ACC 0.11 83 39 11,655 0.14 97 47 13,619

Animal health 0.24 179 85 24,993 0.24 167 81 23,386

Breeding 0.14 102 48 14,259 0.16 109 53 15,314

Farm Dairy 0.01 9 4 1,200 0.02 12 6 1,616

Electricity 0.15 107 51 15,025 0.19 137 66 19,182

Supplements made 0.04 28 13 3,960 0.02 15 7 2,141

Supplements purchased

0.37 271 129 37,921 0.51 357 173 50,025

Grazing 0.01 4 2 608 0.06 41 20 5,678

Fertiliser inc N 0.15 114 54 16,000 0.27 193 94 27,060

Regrassing&Cropping 0.02 13 6 1,760 0.01 10 5 1,391

Weed & Pest 0.00 1 0 74 0.00 3 1 428

Vehicles 0.21 157 75 22,000 0.20 141 68 19,796

R & M 0.12 86 41 12,000 0.05 37 18 5,233

Freight & Gen 0.00 2 1 245 0.09 63 30 8,766

Administration 0.07 49 23 6,800 0.11 78 38 10,969

Insurance 0.04 29 14 4,000 0.05 33 16 4,555

Total 1.67 1,232 585 172,500

2.12 1,494 724 209,159

Cash surplus / deficit sensitivity table

-$2.00 -$1.50 -$1.00 -$0.50 $0.00 $0.50 $1.00 $1.50 $2.00

-10%-63,900 -40,700 -17,500 5,800 29,000 52,200 75,500 98,700 121,900

-5%-53,600 -29,100 -4,600 20,000 44,500 69,000 93,500 118,100 142,600

0-43,300 -17,500 8,300 34,200 59,973 85,800 111,600 137,400 163,200

5%-33,000 -5,800 21,300 48,400 75,500 102,600 129,700 156,800 183,900

10%-22,600 5,800 34,200 62,600 90,900 119,300 147,700 176,100 204,500

Based on Annual Cash Budget changes to advance production and payout. Table displays Cash surplus or deficit scenarios.

Payout

Pro

du

cti

on

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Regional Sponsors

To be supplied for each region

Bay of Plenty Regional Council Blackman Spargo Rural & Commercial Law Camco Dairy Services Ltd I.S. Dam Lining NZ Farmers Livestock Piako Tractors Rotorua Ltd Rotorua Lakes Council Stretton & Co Ltd T H Enterprises Ltd Vetora BOP Ltd Bayleys Real Estate ABC Milking Solutions AFFCO Corporate Office AgFirst Consultants Central Ltd Ata Rangi Pastoral Ltd Hi Flo Pumps & Irrigation Ltd PPP Industries Ltd Rotorua Taupo Federated Farmers Service Bulls NZ Silver Fern Farms Skellerup Industries Ltd South Waikato Water Solutions Tailored NZ T.E.D. Limited Yealands Estate Wines Ltd

The New Zealand Dairy Industry Awards

appreciates the support of our national and

regional sponsors in bringing you this event.

National Awards Dinner

Saturday 6 May 2017

Sky City Convention Centre, Auckland

Ticket Cost $195

Purchase from 27 March 2017 @

dairyindustryawards.co.nz

General Manager | Chris Keeping | chris@nzdia.org.nz