Dairy News 27 January 2015 by Rural News Group

Dairy prices on the slow road to recovery. PAGE 3 FIREMAN’S NEW FRIEND

Drone seeks hot spots PAGE 30

BIGGER WORKLOAD DCANZ steps up PAGE 9 JANUARY 27, 2015 ISSUE 327 // www.dairynews.co.nz

NO RAIN BUT NO DROUGHT Soils are drying out fast but above the ground it’s a different story, with grass and feed supplies looking good – DairyNZ PAGE 4-5

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DAIRY NEWS JANUARY 27, 2015

NEWS // 3

Milk price on slow road to recovery PAM TIPA pamelat@ruralnews.co.nz

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DAIRY PRICES have bottomed out and are on a tentative and slow recovery path. That’s the consensus of four agri economists spoken to by Dairy News after last week’s Global Dairy Trade auction saw a 1% lift overall and notably a 3.8% lift in whole milk powder. But despite being the third auction in a row to go up, with cumulative gains of 7%, it’s not enough to get excited about, they say. Overall prices remain about 46% lower than at the same time a year ago. And it’s not enough for banks to lift their forecast milk price, with ANZ actually dropping its forecast to $4.35/ kgMS last week. ASB remains most optimistic, retaining its prediction at the same level as Fonterra’s current forecast for this season at $4.70/kgMS. BNZ sits in the middle at $4.50/kgMS. Rabobank senior dairy analyst Hayley Moynihan warns of another upcoming hurdle. “The firming trend will be challenged as we get closer to the removal of European milk production quotas on April 1,” Moynihan says. “Volumes on offer from New Zealand start to decline seasonally, but with the Europeans coming into spring and the removal of milk production quotas, that is likely to test market prices the closer we get to April 1.” However she says last week’s GDT result is “along with our expectations of a very slow price recovery through

There has been a rebalancing of pricing between whole milk powder and skim milk powder in the past few auctions.

the first half of this year”. “The most notable thing was the rebalancing in pricing between whole milk powder and returns from skim milk powder and butter,” says Moynihan. “The lift of whole milk powder put the stream returns back into balance. “But in some respects it is a lacklustre result given the reduction in volumes on offer. It could be argued the price lift could have been stronger but it is a reflection of plentiful product availability globally and buyers being well stocked up. But the positive is that at least it is in the right direction and three auctions in a row have had a slight firming. I think that is further evidence we are at the bottom and at least starting to show

some encouraging signs.” BNZ senior economist Doug Steel also says the GDT result was another step in the right direction. But BNZ sees a downside risk to Fonterra’s $4.70/kgMS forecast given where prices got to in 2014. “Prices are still lagging what’s required to achieve Fonterra’s $4.70/ kgMS. We think around $4.50/kgMS might be closer to the middle of possible outcomes That $4.70 is still possible but prices have to lift fast and a long way still to achieve that. “We are still optimistic for next season both from the latest few increases we’ve had and some signs the world is starting to receive these lower prices which will ultimately

peel back supply and see some genuine price movement down the track. “This is what we are taking out of the last few (GDT) – that it is sowing the seeds for a better milk price next season coupled with our view that the New Zealand dollar continues to decline. “So for that season, 2015-16 we’ve currently got $5.70 on the board but the possibilities are wide…. The season hasn’t even started yet. We are trying to forecast very volatile commodity markets overlaid with volatile currency markets and the combination of the two makes it very tricky.” ASB economist Nathan Penny says there’s tentative signs of a TO PAGE 8

“SustaiN just seemed to have a better response, better growth rates, so we stuck with it. It just grew more grass − for longer.” To join dairy farmer Grant Stewart and others who are enjoying the benefits of SustaiN, talk to your local Ballance Field Consultant, or call 0800 222 090.

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4 // NEWS

Grass and feed supplies plentiful GRASS AND feed sup-

plies are looking good in many parts of the council despite soils drying out fast, says DairyNZ. General manager of extension, Craig McBeth, says DairyNZ is closely monitoring the soil moisture and feed levels in all regions in case it needs to quickly ramp up support for farmers. Canterbury, North Otago and Wairarapa are already well on the radar but the soil moisture data is also showing the rest of the country is on the brink of heading into dryer than average soil moisture

conditions. “We need to see some rain soon to reduce the risk of a normal dry summer turning into something more serious,” he says. “While we know it could get very dry, very fast, it’s a positive story in terms of feed supply. It’s pretty green out there on many farms because we had great grass growth in November and December and into January in some parts. Recently, it’s also been great growing conditions for maize. “In most regions farmers have already made and

Craig McBeth

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stored a lot of supplementary feed like hay, grass silage and baleage. There’s no shortage of feed around at present on-farm or in storage, in most parts of the country. In Taranaki there’s probably a surplus of supplementary feed.” Southland farmers however struggled to grow and harvest surplus feed due to a wet late winter and spring. “The good news is there will be plenty of feed to get farmers through dry conditions if we don’t get rain,” he says. “However, the issue may be a lack of cash around to pay for it if farmers have to buy it in or cover the cost of transporting the feed to where it is most needed. The low forecast milk price is already putting pressure on farmers’ budgets for this season.” McBeth says farmers have learnt a lot through past droughts and have plenty of techniques for managing the supply of feed to their cows to keep up with the demands of keeping them in good condition. “Keeping your cows in good condition isn’t just for milk production. It is also vital for ensuring they calve without any

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difficulty later in the year and have every chance of getting back in-calf next spring. Our dairy cows are in-calf now as well as milking,” he says. He says DairyNZ is using its regional staff to monitor farming conditions, provide advice, and ensure experienced farmers can pass on advice and tips to others who may be new to farming or to a region. Farm system specialists are also monitoring

conditions closely to help inform farmers. “There is plenty of industry and farmer support out there to help everyone. It’s important farmers know that – and where to go for advice. Our ‘Tactics for Tight Times’ campaign to help farmers cope with a low payout is also going to be focused on all the issues that farmers might have to deal with including summer dry conditions and extra feed costs.”

Bank offers help THE LARGEST rural lender, ANZ, has announced an assistance package for farmers affected by extreme dry conditions across much of New Zealand’s east coast. Many areas, including Canterbury, have experienced severely dry conditions over the past two months compared with the long-term average, according to Niwa. “The big dry is affecting areas which haven’t experienced extreme conditions like these for many years, so for a lot of farmers this is new territory,” says Graham Turley, ANZ Bank’s managing director commercial & agri. “We recognise the challenges and anxiety this is creating for farmers, which have been exacerbated by forecast low dairy payouts. We’re offering targeted assistance, recognising that the situation may require more complex solutions for some. “The impacts of serious weather events like this don’t just affect the farmers and their local area but will be felt right through the economy.” The options available to affected farmers through ANZ are: ■■ Suspending loan principal repayments; ■■ Waiving fees associated with restructuring business loans considered necessary due to impacts of extreme weather; ■■ Waiving fees for term finance and investments which improve performance and the ability to respond to climatic variation in future years; ■■ Waiving the interest rate reductions associated with accessing funds on term deposits ahead of maturity. date; and ■■ Providing access to discounted short-term funding to help farmers get through the immediate challenges while also protecting their long-term productivity. “We encourage farmers to act early and engage advisors to identify actions and develop a plan. This should include working with accountants to produce a two-year cash forecast and consulting with their bankers on funding requirements,” says Turley. “The impacts of drought are not just financial. We also appreciate the stress created for some customers and encourage them to communicate regularly with their family, advisors and support networks.”

DAIRY NEWS JANUARY 27, 2015

NEWS // 5

No drought yet but MPI keeping a close eye – Guy PETER BURKE peterb@ruralnews.co.nz

THE GOVERNMENT is monitoring

the impact of dry weather on farmers around the country. Minister for Primary Industries, Nathan Guy says he and his department are maintaining a ‘watching brief’. Last week Guy met with about 20 farmers at Mayfield near Ashburton in mid-Canterbury to hear their concerns; the group included Federated Farmers national president William Rolleston and board member Chris Allen, who hosted Guy on his farm. Guy says the feedback was they were coping very well, but are concerned about what may lie ahead. “They have experienced a lower that average rainfall over the last six months or so,” says Guy. “The alpine rivers are in reasonable shape because of the snow

melt, but certainly the Opuha dam relies on easterly rain and there hasn’t been a lot so they have got little over a month of storage left. There are already restrictions in place there.”

“No one is asking for a drought declaration.” – Nathan Guy Guy says the farmers realised it was going to be a tough year and made early decisions in terms of de-stocking and selling cull stock. “No one is asking for a drought declaration - they will meet at the end of the month and work through that and have further discussions. MPI has got a well-trodden policy framework about how those decisions are made,” he says. Guy says NIWA data shows North Otago, parts of Marlborough and the Wairarapa and a bit of Northland are also pretty dry. It will take quite a bit of

rain to turn that situation around. “It is earlier than normal for this dry period to bite,” he says. “We can expect these dry conditions into February but to have them in the third week of January is pretty unusual. Talking to farmers at the meeting they think this a 10 or 20 year event in Canterbury and it’s not at the stage where it is major one, but we are watching it closely.” With the projected low milk payout, Guy says he’s asked the Rural Support Trust and MPI to monitor the situation closely. He wants to make sure farmers and their families know where to turn for support. The Rural Support Trusts are the obvious people to contact because they have the local institutional knowledge. “They can sit around the kitchen table and talk through issues with farming families and help them make some tough decisions they may have ahead of them,” he says.

Nathan Guy

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The Opuha Dam is feeling the effects of dry weather.

‘BE READY FOR CRUNCH TIME’ DAIRYNZ IS planning a series of events starting in late February to help farmers through the ‘crunch’ period. General manager extension Craig McBeth says with dry conditions in many parts of the country and the low farmgate milk price, farmers need to start planning for later in the year. Right now farmers need to take into account the lower pay-out when making any decisions on their farms, he says. But the really big decisions are still in front of them. “So it’s about how do I set myself up profitably through this coming winter and next season,” McBeth says. “That’s about doing the fundamentals well, having good pastures cover and calving cows at the right body condition score. It’s also managing their farms well and good expenditure so that every dollar that’s spent has a return of at least a $1.50-$2. This is a smart way of operating as opposed to saying I am going to cut all expenditure out or I will buy more supplement because it is getting dry. But if you only get 75 cents back for every dollar spent,

that’s not very economic.” McBeth says the seminars and events will focus on the tougher cash flow periods that lie ahead for farmers. The objective will be to encourage farmers to understand their situation and come up with options on how to develop and implement an effective strategy to get them through. With many parts of the country in near drought conditions, DairyNZ will be having weekly conference calls to monitor conditions. McBeth says the east coast of the country especially around Canterbury has been harder hit than any other place. “The effect on farming here will be highly dependent on the ability of farmers to irrigate their land,” he says. “Those farmers who are supplied by the Opuha dam (Canterbury) are finding it quite a bit tougher because they have been on irrigation restrictions for some time and they look like continuing and getting more severe. The South Wairarapa is getting dry but it is January of course.” McBeth says if it doesn’t rain, there will be a rapid decline of pasture growth.

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6 // NEWS

No swede repro effects yet ANDREW SWALLOW

AS IN-CALF data accumulates across

Southland it appears the winter’s widespread swede problem hasn’t had a major impact on reproduction rates. “We’re trying to see if there’s a pattern and where we have good data from previous years if there’s been a suppression where cows have been on… swedes,” Vet South’s Mark Bryan told Dairy News. While it is still early days for scanning results, and results have been mixed, “they always are” and no trend has emerged yet, with some up, and some down, he adds. “There was nothing obvious in terms of endometritis or anaestrous cows either so I don’t think it’s going to be anything like as bad as we feared it could be.” Bryan’s comments come after a DairyNZ statement relaying its conclusions from initial blood and liver tests from 15 farms taken when the problem hit the headlines last September. The tests showed liver damage was

Vet South’s Mark Bryan

present in cows that had been grazing both HT and traditional swede cultivars, and in animals which showed no outward (ie clinical) signs of illness. However, the detail of the test results has not been released, DairyNZ’s regional team leader Richard Kyte

saying it’s because wrong or invalid conclusions may be drawn from what was “just one bit of data” in the ongoing investigation. It is known which cultivar the animals sampled had been grazing but the differences between them are not significant and no further scientific conclusions can be drawn without further data, he says. The next step in the investigation is to collate and analyse an in-depth survey of 120 farmers and their graziers. “We have interviewed farmers across the region, both affected and unaffected by the issue, to help us understand whether farm management practices may have been a contributing factor…. “We have also sought permission to access their relevant veterinary records. These could provide a wider dataset and help us understand the illness better and give us valuable insights into what happened.” Analysis of the survey data has started with findings expected in March. Bryan told Dairy News he awaits that with interest.

BRASSICA POISONING ALL BRASSICA varieties produce a range of sulphur-containing substances (pre-toxins) such as glucosinolates and SMCO (S-methylcysteine sulphoxide) which are not toxic in themselves, says Kyte. Brassica pre-toxins are changed during rumen digestion into toxic agents such as nitriles, which are known to cause liver damage in rats. Levels of glucosinolates and SMCO in plants can be affected by plant growth conditions, and are generally highest in mature plants and flower heads.

“The most striking pattern is the geography and associated weather, the number of cold days. For example, there were no cases in the Te Anau basin where they had a lot more frost and cold days than we did in Central Southland.” Suggestions there could be some link to the herbicides used on the crops or prior to sowing (Rural News, Jan 20) “seem a bit stretched”, says Bryan, but he acknowledges the need to keep an open mind. DairyNZ says analysis of plant samples taken from crops that caused problems, and those that didn’t, should get underway soon. Kyte notes the blood and autopsy sample results indicate liver damage

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similar to that seen in facial eczema, and a review of published scientific data on the topic supports the possibility known substances in the swedes caused the problems (see panel above). However, he also says the possibility of an unknown toxin “can’t be discounted”. Kyte says it’s too soon to say whether there’s been an impact on reproductive performance as reproductive data isn’t yet complete. Results could also be skewed by Southland having had “a shocking spring”, but analysis of additional blood samples is underway to assess if and how affected cows have recovered, with results expected by the end of next month.

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NEWS // 7

Bright career prospects in primary sector PROSPECTS ARE good for

those exploring primary sector and associated land-based careers, says a recent Government report. The Occupation Outlook 2015 report is a comprehensive industry document designed to provide key information for those contemplating study and career options. The report rated the job prospects for agricultural scientists as very high, and projected an annual growth for the profession of 4% for 2013-18 and 3.2% for 2018-23. Identical figures are listed for environmental scientists and food technicians, while the job prospects for farmers and farm managers is also rated as very high. Lincoln University’s deputy vicechancellor business development, Jeremy Baker, has welcomed the findings of the Ministry of Business, Innovation & Employment (MBIE) report. “The report lends weight to the

tries in an attempt message Lincoln to improve outUniversity has been comes across value making for some chains and meet time. Namely, that its 2025 target of there are many excitdoubling primary ing career opportuexports. nities in the primary Baker sees this as sector for those who particularly imporare prepared to open tant in light of last themselves up to the year’s Ministry of possibilities,” says Education report Baker. which stated that “A key ‘take Jeremy Baker, only 1.1% of current home’ from the Lincoln University university students report is that the sector is becoming increasingly are studying an agriculture-based sophisticated. While this means discipline. When including manufactura greater need for highly trained individuals in agribusiness and sci- ing associated with the land-based ence- related fields, it also opens industries and other related serup a range of opportunities in areas vices, the primary sector employs such as IT and manufacturing, as about 350,000 people nationwide, well as in the provision of financial accounting for around one in six employees. and accounting services.” According to the Occupation The Government is increasingly targeting more highly skilled occu- Outlook 2015 report, it’s expected pations within the primary indus- the country will need an addi-

New seller on GDT

tional 92,600 qualified workers in the sector by 2025 in order to meet industry goals. “One thing is certain if we are to ensure we can meet the necessary target of graduates entering the sector, and that’s the need to engage and inform urban students as to the opportunities within the industry as a whole,” says Baker. “There are pathways and specialisations that extend well beyond the farm itself. We need career professionals to fly the primary sector flag. “My advice to any student considering their options is to think beyond the usual pathways. If you have an interest in biology or chemistry, why not apply that to something like plant science, animal science or bioprotection, for instance? If you’re thinking of studying business, maybe consider something like food marketing or supply chain management?” @dairy_news facebook.com/dairynews

ONLINE DAIRY auction platform Global Dairy Trade has inducted a new seller. Arla Foods Ingredients (AFI) will offer food grade lactose on the platform; AFI, a global leader in producing natural whey ingredients, is an independently-operated subsidiary of European co-op Arla Foods. Lactose is commonly used in the food and confectionary industries, since it has a low sweetness, binds flavours and aromas and increases storage life. It is used in preparing baked goods, and also within the pharmaceutical industry, giving the commodity appeal across a wide range of buyers. GDT director Paul Grave says AFI will offer a significant volume of lactose to the platform. “AFI’s offering of lactose on GDT reflects an increasing trend for European producers to seek export of Europe, and to extend their reach to the global market, as they expand production. “The quantity of AFI’s lactose will deepen liquidity of the lactose product group and the auction will set the market-based benchmark price for lactose. We are confident in the global demand for lactose, and expect a high level of interest from across our network of over 650 registered buyers.”

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8 // NEWS

Irrigators keep milk flowing SOUTH CANTERBURY processor Synlait

Milk says milk supply has not been affected despite prolonged dry weather in the region. Synlait chief executive John Penno says almost all suppliers have reliable irrigation water access and milk supply remains at budgeted levels. “This is consistent with what we’ve seen in the past with dry weather, which Canterbury farmers are used to. We have

reviewed the factors at play and do not expect it to have much of an impact on our milk supply,” says Penno. “However, we are monitoring the situation closely as weather conditions may change this position at any stage.” Penno points out that a benefit of the mid-Canterbury region Synlait operates in is that nearly all Synlait suppliers are irrigated with reliable water sources. Those who aren’t

are largely in high rainfall areas. “We’ve been in touch with a large number of our farmers. It’s tough for them at the moment, but most of them are upbeat and share our view that the weather we’re experiencing is not unusual and they are expecting low levels, if any, of lost production at this stage. “Overall, the majority of our suppliers have access to reliable irrigation water and with longer

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sunshine hours this can actually mean good pasture production on farm. On the other hand, if irrigation water becomes unusually restricted, farmers will be weighing up what measures they can put in place in the context of the season’s low forecast milk price.” Synlait has also recently announced autumn premium payments to encourage suppliers to produce more milk late in the season.

Synlait’s Board will review its milk price at their next meeting in late January and an announcement will be made following that. Penno says Synlait shareholders will likely want to understand how both weather conditions and any milk price update impacts the business, therefore a statement will be released to the NZX following that meeting. Meanwhile milk collection for Fonterra in New

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Zealand is tracking 4% higher than last year. Fonterra says it has collected 972 million kgMS for seven months to December 31, 4% higher than the same period last year. But the rate of growth has continued to slow, largely driven by reduced South Island production triggered by dry weather. North Island collection in December reached 125 million kgMS, 4% higher than December last season. Some rain fell in many dairy regions, supporting grass growth and increased milk production.

John Penno

South Island collection in December reached 76 million kgMS, just 1% higher than December last season. Growing conditions have improved in Southland after a cold start to the season. However, dry conditions are impacting pasture growth across the east coast of the South Island.

Tentative signs of price recovery FROM PAGE 1

recovery but it is very much “baby steps”. “It has taken a lot of reduction in volumes to get there particularly with whole milk powder. So that has been hard work. Nonetheless it is pointing towards the recovery but gradual. “We are seeing export growth around the world slow so that should support prices.” But demand is still weak from two big dairy importers, China and Russia. Beyond this season, we remain broadly positive on dairy prospects,” Penny says in his latest update. ASB expects the 2015/16 milk price to rebound to around $6/kgMS. “But for now, the baby steps are likely to continue,” says Penny. ANZ’s Con Williams says the last three GDT auctions show that a modest recovery in dairy prices is “about to occur”. ‘Milk fat product pricing has been pretty good over the past four auctions. There was quite a gap between New Zealand sourced butter versus from UK, Europe and other areas five auctions ago, but that gap has closed now. “All of that is indicative of a bit of recovery starting to occur now. Whole milk powder is up quite a bit.” But he says this was based on “quite dramatic” trimming of product on offer. “The key question is whether that will continue on to reach the forecast that Fonterra had of $3,500/t by the middle of this year to deliver their $4.70/kgMS milk price. We don’t think recovery will be quite that strong and that’s why we revised down or forecast to $4.35/kgMS.”

DAIRY NEWS JANUARY 27, 2015

NEWS // 9

Milk processors gear up for big year PETER BURKE peterb@ruralnews.co.nz

DAIRY COMPANIES

in New Zealand are gearing up to play a greater role in both national and global issues. Kimberly Crewther has moved to a full-time role as executive director of the Dairy Companies Association of New Zealand, (DCANZ); a policy manager has been appointed to deal with the increased work load. Crewther was formerly in a part-time role as executive-director in a secondment arrangement with DairyNZ. Crewther says the step up in resourcing reflects increased complexity in the operating environment for global exporters. This means more work and demand for DCANZ to engage in policy changes and emerging policy development. “The companies that are members of DCANZ continue to strongly value what they get from working together to secure a favourable operating environment,” Crewther says. “DCANZ has had substantial growth in membership in the last two years and so with increased membership you get a step up in the need for management across all members including the complexity of establishing what those

BARNAO JOINS DAIRYNZ ANOTHER MINISTRY of Primary Industries executive is joining the dairy industry. Carol Barnao has been appointed as the new general manager of policy and advocacy for DairyNZ; she replaces Kimberly Crewther. Barnao is currently MPI’s deputy director-general of the change management programmes. She previously held the role of deputy director-general, standards with MPI for four years and has also been director of standards with the NZ Food Safety Authority. Last year, former MPI director general Wauyne McNee took over as chief executive of LIC.

common policy positions are.” Crewther says a big year is anticipated on the trade policy front for dairy as the TTP negotiations are now well advanced. New Zealand is also launching negotiations for an FTA with the European Union (EU) “Trade policy is an area of ongoing interest for DCANZ because things have moved into bilateral and regional negotiations which give a spaghetti bowl effect. So within that New Zealand companies have an increased interest in making sure their exports aren’t disadvantaged against offshore competitors,” she says. Crewther says while DCANZ won’t have an official role in the negotiations it will engage with New Zealand officials to make sure they understand the interests and priorities of all

DCANZ members. With limits on milk production being lifted this year in the EU, Crewther says DCANZ will be carefully watching developments. They will advocate for greater trade liberalisation to deal with any increased production rather than artificial means such as price setting. “We would not want to see the renewed use of intervention and of those other tools - we think the best way for managing volatility is trade liberalisation and also transparency in the market. New Zealand has contributed to the transparency through the likes of the development of the Global Dairy Trade platform.” On the domestic front Crewther says they will focus on issues such as water, biosecurity and food safety. She expects DCANZ to be involved

in consultation with government on new rules relating to manufacturing standards. They are also working with government agencies on the preparedness for foot and mouth disease.

Kimberly Crewther

Meanwhile Pip McLachlan will join DCANZ as policy manager. She is on secondment from MFAT for an, as yet, unspecified time. @dairy_news facebook.com/dairynews

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DAIRY NEWS JANUARY 27, 2015

10 // NEWS

Judge tells industry to step up on environment education PAM TIPA pamelat@ruralnews.co.nz

IN A controversial Waikato case, a judge has told the dairy industry to step up in on educating farmers about environmental responsibilities including disturbing stream beds. But DairyNZ argues it is already working hard to get information out, but every council having different rules does not help. And farmers face a “frustrating and challenging process” to get anything done, it says. An environmentally aware Okoroire sharemilker, Bas Nelis, in December copped a hefty $16,875 from Environment Court Judge Melanie Harland for mistakes made in an environmental clean-up. The Waikato Regional Council brought the prosecution but recommended conviction and discharge. But the judge imposed the fine because she said the sharemilker should have known better. “I recognise that this decision in all likelihood will not be welcomed by all those in the dairy farming industry,” Judge Harland said when imposing the fine. But this needed to be balanced against community interest and fairness in Resource Management Act cases. “While the (Waikato) regional council has indicated its willingness to assist in educating dairy farmers about its rules, ultimately it is the responsibility of those engage in the dairy industry to make themselves fully familiar with them,” Judge Harland said. “There are a number of industry group who also could be actively involved assisting dairy farmers to become familiar with their obligations in relations to water bodies, be they in relation to effluent disposal and/or erosion/sediment controls, which are there to prevent man-made degradation of the environment, accepting that these things from time to time occur as a result of natural process.” DairyNZ corporate communications manager, Bernie Walsh told Dairy News

farmers are interacting with many different parts of a council to get something done and it can be a challenging and frustrating process. DairyNZ is actively educating farmers and helping them understand regional council rules and requirements. “Farmers don’t always have the time to read and understand all the information they get through their letterbox,” she says. “We’re constantly working with regional councils on advising farmers and have been for a number of years. We publish numerous guides for farmers. The challenge is that we often have to produce many different versions of our guides because each region has slightly different requirements. It would be a lot easier to build awareness and understanding across all farmers if there was just one set of clear and simple rules.” She says DairyNZ has recently run EnviroReady workshops and regularly runs farmer awareness meetings in different regions to inform them about changing policy. “Our Sustainable Milk Plans help farmers get individually tailored advice

on voluntary environmental actions for their farm. We’ve also helped with information on consenting processes such as Waikato’s Variation 6, regional riparian planting and the Horizons’ One Plan. We’ve published a new guide to responsible dairy conversions for farmers. “We’ve created training and accreditation programmes for rural professionals – some in collaboration with regional councils to support farmers. All our resources are available online, and our website is easy to use and has up-todate information. We’re also working on a new land management guide.” Walsh says it’s important that regional councils coordinate and align advice and information to farmers across all their different functions. “Farmers need clear, simple and easy to understand information. Maybe councils need to think outside the box about how they communicate complex issues to farmers effectively. It can take a lot of time and skill to interpret rules that are not written in plain English.” Waikato Regional Councils chief executive Vaughan Payne says the council runs workshops and field days, often

Sharemilker Bas Nelis.

in partnership with industry groups like Dairy NZ and Fonterra. “By and large, we believe that most farmers are doing the right thing when it comes to getting consent and taking care not to damage the environment. “The dairy industry has proactively got involved in high profile RMA mat-

ters such as effluent management, water allocation and so on. They also put a lot of emphasis on riparian management so we will be discussing with industry reps that works should not be done in the beds of waterways and that sediment controls are needed on the banks of streams if earthworks are being done.”

LITIGATION SPARKS OUTRAGE THE CASE and the fine have caused outrage in the Waikato farming community including one councillor and Te Aroha dairy farmer Stu Husband planning community meetings to change Waikato Regional Council enforcement policy. Community protest meetings were held even before the fine was imposed in December. Politicians have also become involved with New Zealand First’s Richard Prosser telling Dairy News the council’s actions were process rather than outcome drive. “No one was looking and the big picture and saying well ok - the digger might have scrapped up a stream bed but no one knew it was a stream bed because it was so overgrown.” The sharemilker who was prosecuted, Bas Nelis, says he “has a lot of anger” about the way the council carried out the investigation

including getting a search warrant even though the farm was cooperating. However Judge Harland said in her judgment she gained the impression the council’s investigation officers had been unfairly criticised for their action in relation to the prosecution and she had heard the level of criticism was “unprecedented”. Waikato Regional Council chief executive,Vaughan Payne, says the council is fully supportive of the kind of project involved in the prosecution. “We’ve always said it was the way in which the work was done that was the problem. As Judge Harland said in the sentencing decision: “...Restoration projects of this kind are to be encouraged, but that is not to say that the projects of themselves justify water bodies being damaged in the process...” He now plans to set up a working party

“to come up with suggestions for what the regional council needs to do to help build a positive and constructive relationship with farmers within the context of our role as a regulatory agency,” he says. “We are the only organisation with responsibility for sustainable management of natural resources. This means we can’t, and won’t, ignore actions that significantly damage our environment. Our aim is to work with farmers to make sure they know the rules and get the support and advice they need to look after land and water.” He says there’s information on the regional council website for farmers that covers everything from the rules to the types of plants they might want to use in various environments. There’s also a free phone number 0800 800 401 for those who prefer to talk to someone about their project.

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DAIRY NEWS JANUARY 27, 2015

12 // NEWS

Data collection vital PETER BURKE peterb@ruralnews.co.nz

GETTING ALL dairy farmers around the country to see the value of providing nutrient management data to their respective dairy companies presents quite a chal-

Mike Scarsbrook

lenge. That’s the view of Dr Mike Scarsbrook, DairyNZ’s environmental policy manager, who produced a review of the first year’s operation of the Sustainable Dairying: Water Accord. Launched in July 2013, it replaced the previous Clean Streams Accord

first launched 2003. Scarsbrook says last season they targeted getting nutrient management data from 85% of dairy farms but only managed to get 56%. In the 2014-15 season they are targeting 100%. The nutrient management data is collected

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from farmers by their respective dairy companies and Scarsbrook says the way individual companies do this varies ‘a little bit’. “That was something identified by the auditors of the scheme and we are now working towards bringing the companies closer together in terms of the consistency of how that information is collected,” he says. “Essentially we are pushing towards getting the vast majority of farmers providing good information so that we can get good information out there on the current performance of dairy farms on such things as nitrogen leaching loss.” Scarsbrook says the data can be used by farmers to benchmark their environmental performance against other farmers. But it has other big benefits for farmers. “With the lower payout there are likely to be significant efficiency gains that farmers can make through looking at how they are using nutrients on farm. Part of the business of dairy farming is to look

at environmental issues and most farmers that we work with are more than willing to do what’s needed,” he says. But the receptiveness to supplying the data varies from region to region. Regions such as Manawatu and Canterbury tend to be better aware of need and value of supplying the data because their councils are heavily involved in this area. Scarsbrook says having access to the data requested can be of huge benefit to organisations such as DairyNZ when they deal with regional councils. “When we talk to regional councils around policies for the future for dairy farmers we want as much as possible to provide for industry self-management,” he says. “If we can provide robust, high quality information then the regional councils don’t need to collect that information, so that farmers don’t have to provide information to multiple parties. We can provide that information on behalf of farmers as required.”

ONE-YEAR REPORT CARD WHILE DATA collection remains a challenge, the report on the first year of the new accord shows significant progress. Achievements noted include: ■■ Every dairy company having an assessment programme in place for new farm conversions ■■

Effluent assessment systems in place for farms across all dairy companies

■■

Stock exclusion from farm waterways across the country

■■

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The report notes that 24,000km of waterways, representing 94% of all waterways are now fenced off to prevent stock from getting into streams or lakes. “We’ve made meaningful progress in our first year of operation and we’d like to thank farmers for all the work they have done,” Mike Scarsbrook says. “There is still a lot more to do but there are lots of examples where farmers are making a real contribution to improving water quality.” Scarsbrook says over the three years a project has been running in the upper Waikato, sustainable milk plans have been rolled out to 600 farms. In almost all cases the farmers were keen to make changes. “So they are improving environmental practice on farm because they can see that it’s going to have benefits in terms of water quality. I think if people work through issues this way, then almost all farmers are happy to change.”

DAIRY NEWS JANUARY 27, 2015

NEWS // 13

Fonterra one step closer to Chinese JV FONTERRA IS a step closer to buying a cor-

nerstone stake in leading Chinese infant food manufacturer, Beingmate. China’s Ministry of Commerce has now granted anti-trust and strategic foreign investment approval for the proposed partnership. In a statement Fonterra says further regulatory approvals are required before it proceeds to the next stage which is a partial tender offer to gain up to 20% of Beingmate. Fonterra says it will provide further updates as the partnership progresses. Last year Fonterra announced it was teaming up Beingmate to tap into China’s growing demand for infant formula.

Fonterra and Beingmate intend to form a global partnership to supply infant formula. The partnership will create a fully integrated global supply chain from the farmgate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe; this will lead to increase glow of Fonterra’s ingredients and branded products exported to China. The partial tender offer to gain up to a 20% stake in Beingmate is the first phase of the JV; after gaining regulatory approvals and Fonterra satisfactorily completing the partial tender offer, Fonterra and Beingmate will set up a joint venture to purchase Fonterra’s Darnum plant in

Australia and will establish a distribution agreement to sell Fonterra’s Anmum brand in China. Fonterra chief executive Theo Spierings last year said that the partnership between two leading dairy nutrition companies will be a game changer that will provide a direct line into the infant formula market in China, which is the biggest growth story in paediatric nutrition in the world. The infant formula market in China is worth about $18 billion today and is expected to be worth $33 billion by 2017. This growth is driven by increasing urbanisation, higher disposable incomes, a preference for premium brands, and relaxation of the one child policy.

Southern hub back on case ANDREW SWALLOW

AFTER SIX months on the back burner the Southern Dairy Development Trust is about to turn up the gas on fundraising for a 3-400ha research and demonstration farm. “Everything’s been on hold since calving,” Southern Dairy Development Trust chairman Matthew Richards told Dairy News last week. Not that the trust has been resting on its laurels: it’s been researching in more detail what the 930 dairy farmers in the Southland and Otago area want from the proposed Southern Dairy Hub (SDH). “They want research that’s relevant to their farms and an ability to demonstrate that at scale. A lot of it is around the environmental space with catchment [nutrient] limits

coming fast. Wintering was also an issue raised, and human resources and health and safety.” SDDT’s aim is to raise enough to buy a farm that could run four herds of at least 200 cows each to allow farm-scale comparative studies, for example, of performance on different forages and management regimes. The farm would also be equipped with office space for industry organisations and possibly some other businesses, plus facilities for training and technology transfer. SDDT is seeking $10m from industry partners including Dairy NZ and Agresearch, and at least $4.5m from the local dairy community. $2.5m of the $4.5m will come from the current Southland Demonstration Farm but donations

fit the hub would bring from dairy farms across the region, which is a the region are needed to really good sign, but raise the rest. farmers ultimately are “A minimum $2000 the key funders we donation is the target and need.” we need to raise $2m so A deadline of April really we need the major30 has been set to raise ity of farms on board,” the $2m. Assuming the says Richards. Matthew Richards funds can be raised, the A “founding farmers” wall at the hub will acknowledge trust is looking for a farm within a all those chipping in with $2000 45 minute radius of Invercargill airport to either convert or, if already or more. The lease on the current South- dairying, develop into the hub. An event to showcase the SDH land Demonstration Farm ends May 31, 2016, hence SDDT wants proposal to media, industry, and to have the hub built and ready to some farmers will be held in Winton Monday 9th Feb, followed by a series roll June 1, 2016. “That’s not very far away at all,” of farmer-focussed day and evening notes Richards. information events at Winton, Gore “There are several southern and Balclutha March 2-4. For more businesses keen to come on board see www.southerndairyhub.co.nz or with funding who can see the bene- tel: 0800 336632

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DAIRY NEWS JANUARY 27, 2015

14 // NEWS

‘Don’t write off dairying’ PAM TIPA pamelat@ruralnews.co.nz

DAIRY FARMING is

the backbone of New Zealand and will continue to be so for a long time, says Whakatane’s Doug Bull, recipient of the Queens Service Medal in the New Year Honours. Bull was honoured for his services to farming and the community including leadership roles

in the dairy industry from the 1970s and his philanthropic work mainly through the Rotary Club. “Despite the critics you will find dairying is a major industry in New Zealand for many, many years,” he told Dairy News. “It has its ups and downs – it’s in a down at the moment but it is a temporary. “As a career for young people, men and women, I wouldn’t have wanted to

have done anything else. You are working with animals, the land, you have a responsibility to nurture the land.” Bull started out as a farm worker then sharemilker in the 1950s and moved to his own farm in Whakatane with his wife Teresa in 1972. He became involved in dairy governance including Feds, director and chairman of the Rangatikei Plains Dairy Company, deputy chair-

man of the New Zealand Dairy Board, a director of the Dairy Companies Association of New Zealand and involvement in the merger of several dairy companies to form Bay Milk Products. Bull supposedly retired from dairying 18 months ago when he sold the Whakatane farm which he grew from a 220 cow to a 850 cow operation over the years. He still lives in the homestead. But instead of

putting his feet up, he is now voluntary farm supervisor for the Owhakatoro Lands Trust at Ruatoki after being asked to help get the 600-cow farm back on its feet. He has been running the farm and also helping trustees learn the role of governance – “for any business today your governance has to be sound and you have to be on the ball. We are making good progress.” Bull first joined Young

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Farmers in the 1950s and was later chairman of Awakeri Young Farmers Club. “We learnt everything there … in the days before AgITO that was very important for young people who wanted a career in farming.” In 1974 he became active in the wider industry including Bay of Plenty Feds dairy chairman and won a Nuffield Scholar to in England for six months. Last week a young Nuffield scholar from England was visiting him, the son of another Nuffield scholar he met during that time in England. “The contacts that were made back then whether it was dairy, Nuffield or Rotary, I have found a great strength. I have valued having friendships around the world.” He spent 10 years on the New Zealand Dairy Board from 1987 to 1997 when Bay Milk merged with the New Zealand Co-op Dairy Company and Bull stood down from the Dairy Board. Bull has been involved with Rotary since the 1970s holding a number of positions with the Whaka-

tane West club and enjoys voluntary work in New Zealand and offshore, particular in developing countries such as Fiji or Samoa. In Samoa he helped establish preschools for Samoan children which had to be rebuilt after the 2009 tsunami in which some of the children tragically died. In Fiji the Rotary Club has been involved with a farm training establishment on Taveuni Island and other development works. He says his voluntary work gives him great satisfaction. But he also strongly appreciates the people he has worked with in dairy over the years. “The directors in the industry were a bunch of great guys who in those days virtually volunteered their time.” He says he has also met some wonderful people and seen some great things being done by executives and workers in the wider industry. “And the support services … there’s DairyNZ or the Ministry for Primary Industries, we can’t operate without them. We need the strength of those people.”

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Douglas Bull says dairying will remain the backbone of New Zealand.

Doug Bull is worried that agriculture, in particular dairying, has become less valued by Government over the last decade. “When I started off dairying many people in the Government’s Cabinet were dairy industry people – today it is a sad observation that despite dairy being such a great contributor to this country, the Minister of Agriculture seems to have fallen further and further down the ranks of cabinet ministers. “His representation of such a great industry does not seem to be so valued by Government. That is not just now – it has been happening over the last decade or so. I think we need the horsepower as an industry at that Cabinet table.”

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DAIRY NEWS JANUARY 27, 2015

16 // NEWS

Dairy women DWN conference pockets $250k heads south in swaps case DAIRY WOMEN’S

THE DAIRY Womens Network received a $250,000 unexpected windfall in ASB interest swaps settlement. It was part of the bank’s settlement with the Commerce Commission which also included $2.7m to compensate the 40 eligible customers who registered their complaints with the commission and $250,000 towards the commission’s costs. Mark Heer, ASB’s general manager rural told Dairy News the Dairy Women’s Network donation was proposed by ASB, which already sponsors the network, and agreed by the Commission. “The donation is over and above our ongoing support. The Dairy Women’s Network provides women involved in the dairy sector with support, advice and business knowledge and skills through its education and development initiatives. Those are important outcomes and the donation will assist the Network to achieve them.” The Commission’s investigation into ASB looked primarily at whether the bank

Network will hold its 2015 annual conference in Southland on March 18-19 at Invercargill’s ILT Stadium. Network chief executive Zelda de Villiers says the 2015 conference theme Entering tomorrow’s world would be evident in the eight workshops offered, comprising financial management, sustainable environments, a presentation by High Performance Sport NZ psychologist David Galbraith, farmer wellness, animal lameness, legal liability and more. “We are especially looking forward to the Southland farm tour

had marketed interest rate swaps for farmers in a way that may have misled customers as to their benefits, risks and suitability. The Commission considers that ASB’s behaviour was likely to have breached the Fair Trading Act – ASB did not accept its conclusions fully but agreed to a settlement. The commission says the smaller settlement amount compared to the recent ANZ $19 million settlement is because the ASB chose not to increase farmers’ loan margins, meaning that the settlement relates primarily to early termination fees paid by eligible customers. Secondly, the commission received a much smaller volume of complaints about ASB’s swaps. The commission will begin contacting the 40 customers this month who may be eligible for a payment. Only those who registered with the commission will get compensation. Payment offers will then follow, with funds expected to be distributed by the second half of 2015.

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for the simple reason that Southland leads the way in wintering systems so I’m sure there will be a lot to take away from that session,” she says. De Villiers says it is fitting that three out of the four Dairy Woman of the Year finalists are South Island women (see profiles pages 22-23). Speakers will include public and employment law specialist Mai Chen to open the conference on Wednesday, March 18, with Fonterra’s Jacqueline Chow opening day two and Dame Jenny Shipley closing. Shipley was New Zealand’s first female Prime Minister and is now a director, advisor and keynote speaker who runs her

own consultancy, chairs Global Women New Zealand and a number of companies as well as being a member of the World Women’s Leaders Council. Chow is responsible for Fonterra Group’s customer and consumer brands’ portfolio. “Jacqueline has executive leadership for the company’s food safety and quality agenda, Fonterra brand stewardship, global planning and insights, research and development, and science and technology,” says de Villiers. “With the calibre of speakers attending the conference, the workshops on offer and the Dairy Woman of the Year

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and Dairy Community Leadership Awards presentation and dinner on Saturday night, we have yet another incredible conference planned.” The network’s key annual event is sponsored by Lifetime Insurance and Travel Advisors. Early bird registrations close on February 28. Visit www.dwn.co.nz to register.

Rotorua hosts world agri economists TOP ACADEMICS and policy analysts

from around the world will be discussing some of the most challenging issues agriculture is facing in Rotorua next month. About 250 economists have registered for the 59th Australian Agricultural and Resource Economics Society’s (AARES) annual conference. Chairman of the local conference organising committee and DairyNZ’s senior economist Matthew Newman says the last time New Zealand hosted this major conference was seven years ago. Distinguished Professor of Agricultural Economics at Purdue University in Indiana, USA, Thomas Hertel, will open the conference with a presentation on global change and the challenges of sustainably feeding a growing planet. He is the founder and executive director of the Global Trade Analysis Project (GTAP) which now encompasses more than 11,000 researchers in 160 countries around the world. There will also be sessions discussing the effectiveness of recent drought

responses in California and Australia. New Zealand’s Parliamentary Commissioner for the Environment, Dr Jan Wright will give the conference dinner speech. Associate Professor Frank Jotzo, Australian National University will discuss why Australia’s climate policy collapsed and what that means for environmental economics, while Professor Alan Renwick, University College Dublin will cover challenges in coordinating agrifood supply chains. Professor Juan Pablo Montero from Chile and the Energy Efficiency and Conservation Authority’s chief executive Mike Underhill will consider how countries can make the most of energy resources and opportunities. “This is about some of the big issues for agriculture – energy, climate change, food poverty and environmental impacts from an economic perspective,” says Newman. The theme of the conference is ‘transformations in agriculture and natural resources’.

DAIRY NEWS JANUARY 27, 2015

NEWS // 17

Taranaki cow reigns supreme PETER BURKE peterb@ruralnews.co.nz

LOCHRAVEN ACE

Rylee, from Kaponga in Taranaki, is the top cow in the Horowhenua. The 4-year-old pure bred Jersey took out the supreme champion award for the best cow at the Horowhenua A&P show much to the delight of its owners Paul and Christine Vanner and their family. The Vanners are Jersey stud breeders and run 180 cows and produce about 67,000kgMS on their 54ha hectare property. The Vanner family have owned the farm for 54 years. Paul Vanner says Lochraven Ace Rylee was bed from a cow they bought some years ago. “This is the 4th or 5th supreme winner we’ve had,” he says. “The cow’s mother has won three or four shows and we bred out of her and got this one. We do our own local A&P show at Hawera and the Stratford A&P show and we are a member of the pure breds association and then we have come down to this show at Levin. It’s a big family effort but we all enjoy it.” Vanner says Taranaki has had good spring and early summer but it has started to get dry in the last two weeks. Primary Industries Minister Nathan Guy says A&P shows are hugely important because they provide an opportunity for rural and urban communities to connect. The Horowhenua A&P show decided to hold its event on Wellington Anniversary weekend in a bid

to attract people from the city. “It’s the closest agricultural event to the capital city of New Zealand,” he says. “We have seen there is an opportunity to connect rural and urban together. For example the animal nursery is fantastic because children can hold a young chicken in their hands, have an opportunity pat calves and other animals. The A&P shows like Horowhenua bring our urban cousins closer to what happens on a farm.” The Horowhenua show has been running for 109 years and Guy says three or four generations of families have been competing in various ways over these years. In some cases it’s for the best pikelets or fudge or showing farm animals. Guy says the show has been a big part of his life and he’s missed very few over the years. For young people it can be pretty demanding. As a youngster he recalls the long busy weekend at the show and then back to school on Monday. As a young lad he competed at the show with some success and the occasional mishap. “The most embarrassing moment I had was when I was calling my pet lamb and it wouldn’t come because it saw a bit of clover in the paddock and started eating it. Then I had one pet lamb that bolted, jumped the scrim fence and took off,” he says. Events such as the vintage machinery parade demonstrate how much progress the farming sector has made over the

years, he says. The Horowhenua has some of the most fertile soils and productive land in the country. “Horowhenua com-

mercial growers supply 20% of all the lettuces, broccoli and cabbages produced in the country. As well it provides 1400 jobs for local people,” he says.

Primary Industries Minister and local MP Nathan Guy presents the supreme champion ribbon to Mitchell Vanner, son of owners of Lochraven Ace Rylee.

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DAIRY NEWS JANUARY 27, 2015

18 // WORLD

Finland’s largest farm goes robotic

Finland’s largest farm milks 600 cows.

FINLAND’S LARGEST dairy farm Finnmilk

has embraced automatic milking. The 600-cow farm opened its doors to the public last month as it started milk production

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with the DeLaval Automated Milking Rotary (AMR). Finnmilk was established in 2013 by shareholders Ari Teppo, Katja and Juhani Korkiamäki and Petter Sandelin. They

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is further equipped with a DeLaval silo cooling tank and a barn designed for better animal welfare. Cow comfort is a core focus area for Finnmilk and has been incorporated into its choice of aftermarket products such as rubber covered floors, well designed cubicles, large water troughs and swinging cow brushes in each area improving cows wellbeing, activating rumination and increasing resting time. The cows are also given a health care programme which is intended to extend cow

“We did not need convicing of the benefits of robotic milking.”

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have experience with robotic milking since 2003 when they installed several DeLaval voluntary milking systems (VMS) on their respective farms; milk yield is high with an average of over 10,000kgMS. “We did not need convincing of the benefits of robotic milking as we have been advocates of that since our DeLaval VMS installations in 2003,” says Teppo. “We wanted to take a key step forward in keeping labour costs low even for a herd size larger than

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300. We explored different options and the alternative was a 50-bail parallel rotary. For that system one would need a labour force of around 4-6 persons more, and that really was not an option for us. “Another big plus for us was our longstanding relationship with DeLaval. They really understand us and our needs.” Globally, the number of DeLaval AMR farms is steadily growing as farmers see the commercial benefits of automated milking, with a reduction of labour costs and an overall improvement of lifestyle being the main triggers. This trend is clearly experienced in Finland, where dairy farmers are already familiar with these benefits being one of the early adopters’ markets. This further supports the overall prediction that by 2020 the number of farms in Finland with herd sizes larger than 300 will triple. Consequently, it is not uncommon for several farmers to pool together, as is the case with Finnmilk. Finnmilk large barn

longevity on the farm. Milking-, activity-, and cow calendar data are integrated into DeLaval DelPro Herd management system simplifying farm management routines significantly. “We are very pleased that Finnmilk is now up and running. During the last few months, we have noticed an increased interest for our DeLaval AMR, in particular from Germany, Scandinavia, and Southern Europe but also from countries like Japan and Australia. This shows that our AMR is gaining traction across the globe as opposed to a few select countries, which was the case in the past,” says Robert Jensen, AMR business development manager DeLaval. “DeLaval can offer these farm sizes three types of milking system: DeLaval AMR, a traditional parallel rotary and an 8-10 DeLaval VMS milking robots. Each system has its strengths and after a while it became clear that the DeLaval AMR carousel robot was the best option for Finnmilk.”

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DAIRY NEWS JANUARY 27, 2015

WORLD // 19

Co-op sets up Asian business unit EUROPEAN DAIRY

co-op Arla Foods is integrating its markets in China and South East Asia. A new regional market called Business Unit Asia is being established; it will be headquartered in Kuala Lumpur from March 1. The co-op says Asia is vital to its ambitions to grow and to increase earnings for its cooperative farmerowners. As the world’s fastest growing economic region with a raw milk deficit and a total population of 2.3 billion people, Asia holds great potential for dairy export, in particular for family nutrition products. China is a strategic growth market for Arla, while South East Asia (SEA) has been identified as a region, which could potentially become a new

strategic growth market. Arla expects revenue for the region will exceed $1.5 billion within the next five years. The consumer needs in China and SEA have many similarities and therefore possible synergies within brand and product portfolio, marketing and innovation, says Finn Hansen, head of Arla Foods’ business group, consumer international. “In close cooperation with our partner Mengniu, we have developed our market in China,” he says. “We have gained important experience and insight, which will be levers to accelerate our expansion in Asia. We have strengthened our presence in several SEA countries and it’s time to move the senior management and main leadership functions to

the region.” The new Business Unit Asia management will be based in a regional office in Kuala Lumpur and will be setting the strategy for all retail and food service activities in Asia. The unit will cover the Chinese retail sales through the partnership with Mengniu Dairy China as well as the SEA market. During 2014, Arla has established or strengthened the country management in Bangladesh, Indonesia, Myanmar and Philippines, and these, as well as the management in Japan and South Korea and distributor sales in SEA, will all report to the regional office. The new business unit will be headed by newly appointed senior vicepresident Jesper Colding. Colding is currently vice-president for marketing with Mengniu

Dairy China. From 2009 to 2012, Colding was senior vice-president in global categories in Arla with responsibility for cheese and the BSM category. Earlier in his career, he was based in Malaysia as associate director in P&G with sales and marketing responsibility for Malaysia and Singapore. “Jesper has a broad strategic and commercial experience and an in-depth knowledge of the consumers in both China and South East Asia. I am confident that he is the right profile to continue the development of China even further and to lead both the new regional team and country managers to a successful delivery of growth in Asia,” says Hansen. Colding is excited to relocate to Kuala Lumpur to take up a new challenge

Jesper Colding will head Arla’s new Asian business unit.

for Arla. “Asia holds so much potential,” says Colding. “There is a growing affluence among people and they are becoming

A positive human rights footprint ARLA FOODS is implementing an updated human rights policy throughout its organisation to ensure that its global business does not leave a negative footprint in developing countries. Arla says plans to grow in several African markets in the coming years, but this growth must be achieved in a responsible way that does not bring unintentional consequences for the local farming industry and its related communities.

The co-op plans to increase its current business in sub-Saharan Africa from $130 million annually to $400m by 2017; achieved through sales of powdered milk and UHT milk, which is in high demand among the rapidly growing middle class in and around the big cities. Today Arla sells products in Nigeria and the Ivory Coast, but Arla’s strategic focus is also directed at markets like Ghana, Senegal, Congo as well as other markets in East Africa.

“More and more African consumers demand types of dairy products that cannot always be produced locally in adequate volumes. We offer good nutrition through our powdered milk products, and simultaneously we want to ensure that our business does not have any negative effects on local farmers,” says executive vice-president Finn Hansen, who is head of Arla’s international business group. For the past months Arla has had a constructive dialogue with

the NGO, Action Aid, which has confirmed the need to launch these initiatives. “Arla is taking these active steps because it is important to us as a cooperative farmer-owned dairy company to be able to document to ourselves, our customers and consumers that we are doing things properly, even in this area as well. We have received advice from different NGO’s, including Action Aid, who have helped us focus on these things,” says Hansen.

increasingly aware of the importance of good health and choice of nutrition. “We will build on the great foundation that has been created to refine our approach to the market in order to accelerate

delivery of the strategic ambition.” Arla Foods is owned by 13,500 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. @dairy_news facebook.com/dairynews

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DAIRY NEWS JANUARY 27, 2015

20 // OPINION RUMINATING

EDITORIAL

Yet another dry spell

MILKING IT... Cow knocks farmer

Fizzy milk, anyone?

Cow comfort reigns supreme

Milk drowns in water

POLICE RESCUE missions involving cows and farmers are not common. Last week Cambridge police took 30 minutes to rescue a woman who was tipped into a drain by one of her cows in Ohaupo. After tipping its owner into a drain, the cow jumped in after her. The woman was taken to Waikato Hospital by ambulance with suspected leg and hip injuries. Cambridge police says the woman and her husband had been herding cows when one made a dash for the drain. “She was trying to shoo it back and it actually ended up tipping her into the drain and then the cow fell on top of her.” This isn’t the first time police have been called to a rescue mission involving livestock. Eight months ago firefighters in Cambridge assisted in a “very big cow” that was stuck down a well.

GLOBAL DRINKS giant Coca-Cola has already claimed its place in the soda, water, energy drink, and juice markets; now the company is going after milk. It is preparing a US nationwide launch of a highend milk, called Fairlife. Unlike soda, the US milk industry remains highly fragmented with few recognisable brand names. With Fairlife, Coca-Cola is looking to use its marketing prowess to change that—creating the “Coke” of milks. Coke is marketing the milk as “higher quality value-added health and wellness beverages”; it’s got more protein and calcium than standard milk, half the sugar, and is lactose-free.

Cash-strapped farmers planning to change cows’ diet are being put on notice. Keep your cows comfortable even during lean times; cows notice sudden diet changes. The resulting stress may challenge a cow’s immune system, compromising herd health and performance. That’s the message from Mike Hutjens, dairy nutritionist from the University of Illinois. “Trying to save even 15c/cow/day could result in increased somatic cell counts, delays in getting cows pregnant and other health issues that cost significantly more than 15c/day.”

YOU KNOW dairy farmers are in trouble when milk is sold cheaper than water in supermarkets. An escalating price war between the UK’s largest supermarkets means that the price of milk is now cheaper than bottled water, research shows. Britain’s big four grocers – Tesco, Morrisons, Sainsbury’s and Walmart’s Asda – have all slashed grocery prices over recent days in a bid to maintain market share in the competitive supermarket space. And – according to research by trade magazine The Grocer – fresh, own-label milk is now cheaper than some brands of bottled water on a cents-per-litre basis.

SUMMER HAS come and like clockwork so has the hot, dry, windy weather that is synonymous with droughts. South and mid Canterbury are certainly struggling not only because of the lack of rain, but the availability of water from local irrigation schemes – notably the Opuha. Just about every night on television we see pictures of farmers struggling to feed their stock and using feed that might normally be kept for use in winter when it’s cold and the grass is also not growing. While the pictures are very dramatic in some cases, and the plight of individuals is terrible, the overall picture this year is not as bad as it’s been in the past. That’s not to say it won’t be, but it’s important to see the summer season for what it is – dry and hot. Soils are drying out fast around the country, but above the ground it’s a different story, with grass and feed supplies looking good in many parts. The smart farmers have kept what grass they have for the best animals – be they cows or capital breeding stock and have got rid of the cull cows. The latter is not a bad idea considering the beef prices. The feed situation isn’t looking too bad either, apart from Southland; in most regions farmers have already made and stored a lot of supplementary feed like hay, grass silage and baleage. There’s no shortage of feed around on-farm or in storage, in most parts of the country. According to DairyNZ, in Taranaki there’s probably a surplus of supplementary feed. On the other hand Southland farmers have struggled to grow and harvest surplus feed due to an extended period of very wet conditions through late winter and spring. But do farmers have the money to buy extra feed? The low payout has squeezed cashflow on farm. One of key messages for farmers has been to set ‘key milestones’ at which point they agree to take certain actions – be it selling stock or whatever and sticking to this – not waiting for a better day which may never come. DairyNZ has been good at getting such messages out there to farmers and it would appear that most are now managing droughts much better than they used to. Every year is different but it would seem the odds of a drought of some sort will occur somewhere. Perhaps this dry spell has in it a timely reminder that even well planned irrigation schemes are not fool-proof and caution needs to be exercised when assessing their value. Even in New Zealand, water can be a finite resource and an endless supply cannot be taken for granted.

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DAIRY NEWS JANUARY 27, 2015

OPINION // 21

Getting tough on cattle rustlers CHRIS IRONS

AROUND CHRISTMAS time stock rustling

seems to rear its head and this holiday season has been no different. Concerns are mounting around stock rustling and the ability to stop it. Ironically, the morning of writing this I was actually out hunting down one of my own heifers, which in the end I found but it gets the heart pumping when you think it has been stolen. After a farmer’s cows were shot with a crossbow at the southern end of the Hunua Ranges, questions are being raised as to what rights farmers have to stop a poacher or thief on their property? Not only do farmers have limited rights to stop people stealing their stock, but we’ve got to ask whether the penalties imposed are serious enough to be a deterrent for either rustling or poaching? Based on the Federation’s experience to date they are not. We know stock theft/ rustling and poaching has been estimated to cost the farming community $120 million each year, yet we see little done in this regard by the police. To be fair there are some police out in the provinces who make a concerted effort to address the issue, and we are grateful to them, but it would be great if they all did. It shouldn’t be luck of the draw to which province you happen to farm in. Farmers are isolated and vulnerable to the armed thieves turning up on their property. We know from a recent survey of our members that sheep and beef farmers are the hardest hit, which I put down to less staff on farm making them an easy target. They need better support. Trying to detain an armed poacher for an hour or so until the police arrive is not practical or safe. The level of violence these poachers are displaying is appalling, as are the penalties being handed down to the few

who get caught. While a dog worrying stock gets shot, a poacher killing stock gets slapped with a wet bus ticket. There needs to be stronger deterrent if we are going to stop this behaviour. Rural communities and police need to work more closely together in responding to rustling and poaching events. It’s not just farmers’ livelihoods losing out, our economy does to. At this time of year most ewes are dipped and lambs drenched, which requires a withholding period on when they can be processed. This opens up a health and safety and food safety risk for consumers who are eating black market produce that may be still inside the holding period and will not be fit for consumption. If a consumer gets ill from eating black market produce it reflects badly on New Zealand’s reputation of being safe producers of food. We know too well the cost of this as food safety issues have tarnished us before. To avoid the risk, consumers should only be buying produce from supermarkets, butchers or farmers markets where the product has been through the quality assurance process, and the farmer has the proper documentation that the product is fit for consumption. Recently New Zealand First announced they were pushing for stronger penalties in this area. National and Act are pushing for harsher penalties such as confiscating equipment used in the crime, as is the case for fisheries offences, and increase maximum jail sentences to reflect the harm done to farmers, and their vulnerability in remote areas. This is encouraging but we need all political parties to take this seriously, especially because in many instances weapons are being used. To get all police to take it seriously farmers need to work together to report crimes and record suspicious behaviour, because in our discussions with police they do

want to know and paint a better picture of the size of the issue and where the hot spots are. The more cases reported the more resources police will dedicate to the problem. So keep using the Crimestop-

pers hotline, 0800 555 111, and the ‘Stop Stock Theft’ website and hopefully we will see harsher penalties delivered. • Chris Irons is Federated Farmers Waikato meat & fibre chair

Cattle thefts cost the farming sector $120 million each year, says Federated Farmers.

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DAIRY NEWS JANUARY 27, 2015

22 // AGRIBUSINESS

Four in the running for p JUDGES COULD not

whittle down finalists for Dairy Women’s Network’s 2015 Dairy Woman of the Year to the usual three candidates because of the calibre of nominees – so four women are standing this year. PGG Wrightson animal nutritionist, Andrea Murphy of Alexandra; dairy director, Wilma van Leeuwen of Waimate; Southland demonstration farm director, Elaine Cook of Waikato; and Federated Farmers board member and provincial president Katie Milne of Kumara, West Coast, will all be in the running for the prestigious title. Organised by the Dairy Women’s Network and sponsored by Fonterra, the award includes a 12-month

scholarship to the Breakthrough Leaders Programme run by Global Women New Zealand, valued at $25,000. Dairy Women’s Network chief executive Zelda de Villiers says it will be tough choosing the overall winner because they all four depict the Dairy Woman of the Year very well. “They are strong performing, passionate, influential and intelligent women who are dedicated to seeing the dairy industry thrive for future generations and the whole of New Zealand,” she says. The finalists were individually interviewed by a panel of five judges including Mark Heer from DWN’s gold partner ASB Bank, Sandy Burghan, Global Women representative, DWN

trustee Alison Gibb, DWN chair and 2014 Dairy Woman of the Year winner Justine Kidd, and Fonterra representative Janet Rosanowski. The 2015 winner will be announced at a gala dinner at the Dairy Women’s Network annual conference on March 19 in Invercargill. The current Dairy Woman of the year is Northland dairy farmer and chartered accountant Charmaine O’Shea. The current chair of the Dairy Women’s Network trust board, Justine Kidd, was the winner in 2013, and Barbara Kuriger, who last year elected to Parliament as the Taranaki MP, was the winner in 2012. For more information on the finalists, awards and the conference, visit www.dwn.co.nz

Here are the four finalists: ELAINE COOK Cook and her husband progressed through the ranks from lower order sharemilkers to farm owners, starting out in the Waikato and then moving to Southland in 2000. In 2006, the couple won New Zealand Sharemilker of the Year, having already won the Southland regional title. In 2008, Cook’s husband died suddenly and the sharemilking business was concluded with Elaine and their three daughters moving back up to the Waikato, however she retained an interested in the South Island dairy industry and in 2011, she became a director of the Southland Demonstration Farm. In 2013, Cook was named the inaugural associate director to DairyNZ – a six-month appointment – and also holds roles as a strategic director for Young Farmers and chairs the governance committee for two Ministry of Business Innovation and Employment research contracts.

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DAIRY NEWS JANUARY 27, 2015

AGRIBUSINESS // 23

r prestigious title WILMA VAN LEEUWEN Wilma and her husband have grown their dairy business over the past 29 years to milking 12,000 cows on 12 dairy farms, and started a contracting business in 1996. In 1993 the couple and their six children moved from the Waikato to Waimate in the South Island. There, they installed the first robotic milking system in a freestall

Katie Milne

KATIE MILNE Milne farms with her partner farm at Rotomanu, Lake Brunner catchment on the West Coast of the South Island. They have a small high BW Jersey herd of 200 cows which are fed on a grass based system. On a separate run-off they rear replacement heifer calves and a localised contracting operation making silage pits, hay, baleage, effluent spreading from ponds, herd homes and stand-off pads, employing one full-time staff member. Katie has been the West Coast provincial Federated Farmers president since 2008, and holds a position on the national board, where she is spokesperson on adverse events, rural security, local government, ACC and employment.

Andrea Murphy

ANDREA MURPHY Originally from Canada, Murphy now lives in Alexandra, in Central Otago. She owns her own animal nutrition business called Maple Grove Consulting Ltd, but could not pass up the opportunity of working in her dream job as a ruminant nutritionist with PGG Wrightson’s Tech Team. It was after joining the Dairy Women’s Network’s conference organising committee in 2007 in Invercargill, that Murphy felt she had ‘found her place’ in New Zealand and still attributes the network with the success of Maple Grove Consulting Ltd. Murphy is involved on the committee for the New Zealand Association of Ruminant Nutrition.

barn system in New Zealand in 2008 and have recently commissioned the largest robotic milking freestall barn in the world, milking 1500 cows with 24 robots. She is a Van Leeuwen Dairy Group director, director of two other family dairy businesses and a founding shareholder and active secretary of the Waitaki Milk Supply Group and Oceania Milk Supply Group.

Wilma van Leeuwen

DAIRY NEWS JANUARY 27, 2015

24 // AGRIBUSINESS

Kiwi farmers happy to manage on their own FARMERS ARE happy to run their businesses without formal governance boards and committees, according to a recent Lincoln University survey. The survey was conducted by Lincoln researchers Dr Kevin Old and Dr Peter Nuthall, and covered all farm types, sizes and regions. It was designed to look into the current situation for succession and governance on New Zealand farms. Old says most farms in New Zealand are family owned and operated. Only 1.24% have public company ownership. The survey found, on average, farms with a board or advisory committee earned a profit of $47,400 per person work-

ing on the farm. In contrast, all other farms made a profit of $49,900 per person. “While the difference is not great ($2400), there certainly isn’t a resounding return from having a board or committee. And, of course, these are averages. Some farms will gain from a board or committee, others not,’’ Old says. They found 69% of the farmers made all the decisions even if consulting family, friends and colleagues first. “They appeared to be disinterested in making use of alternative governance systems that might offer assistance and act as a break on hasty decisions and actions.’’ However, 45% did take

advice from professional consultants. Old and Nuthall say consultants, and others, have introduced the idea of having a formal board of directors, particularly for larger farms. Another possibility is having an advisory committee that operates less formally than a board. However, few farmers have taken up these ideas other than the public company owned farms. The survey revealed 4% of farms have a formal board. Another 5.3% have an advisory committee of various forms. These tend to be the larger farms, and multiple farm situations. Of farms worth over $25 million, 37% have a formal board. At the other

extreme, of farms worth $5 million or less, only 1.74% have a formal board. The direct governance costs involved are not known but it is probable some boards contain family members such as a spouse who probably doesn’t receive any remuneration, Old says. Currently 55% of the farmers report they are ‘totally happy’ with their governance situation, and another 27% ‘reasonably happy’. “This leaves 18% somewhat discontent.’’ Some of the discontentment will be due to farmers’ understanding of the governance options — 34% believed they were fully aware of the options but 20% said they felt

Most farms in New Zealand are family owned and operated.

quite ignorant of the possibilities. The rest fell between these extremes. “Changing governance systems usually requires professional help,’’ Old says. The survey data showed 9.5% of farmers use professional farm advisors for succession and governance help for more than 10 hours per year. But help comes from other quarters too. About 40% of farmers consult their ‘trusted persons’ for more than 10 hours per year. This might be a

family member, respected colleague, or even a public consulting officer. Professional help costs, however. Old and Nuthall say farmers employing consultants pay, on average, $2790 per year for help with all problems, not just governance questions. Seventy-six percent of farmers spent absolutely nothing on advice. Expenditure on consultants varied with farm size. Farmers with a net investment of less than $5 million spent $1330 per year. Farms worth more than $25 million spent

$17,730 per year. “One hopes the benefits covered the costs,’’ Old says. The survey also found how trustworthy outside help was perceived to be could also be an issue. On a five point scale, only 56% of farmers expressed strong trust in their advisors rating them a one or two. “Perhaps if the 56% was higher more farmers would use more professional help to review their governance and ownership set ups,’’ he says.

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DAIRY NEWS JANUARY 27, 2015

AGRIBUSINESS // 25

Bovine semen facility heralds new era “A key driver behind development of our new centre is the ability of CRV Ambreed to continue meeting increasingly stringent biosecurity requirements while also protecting the quality of CRV Ambreed products,” he says. “The move to this new facility ensures our business continues to meet the changing needs of the dairy industry, both within New Zealand and around the world. Compliance standards are continuously being scrutinised by Government authorities, and our new facility allows us to meet the highest standards and grow our export markets.” CRV Ambreed is part of the third largest artificial breeding company in the world with around 25% market share in New Zealand. It exports semen to South America, South Africa, Australia, parts of North America, the UK and Ireland. Currently close to 1.8 million straws of semen are distributed across New Zealand and exported to overseas markets from its facilities each year.

“We had been operating out of our previous site since CRV Ambreed was first established 45 years ago. As the company grew, we evolved our infrastructure to adjust to that growth, but never had a truly purpose built facility until now,” says Haslett. “By starting with a completely new blueprint with 38ha of bare land, what we now have now is a world-class facility that sets a benchmark for success in New Zealand.” Van Noort notes that CRV’s future strategy focuses heavily on sustainable growth, which is necessary to make investments in research and development and new innovations; new innovations that will enable CRV’s customers, dairy farmers in New Zealand, to produce more with less. “We are very proud to open these premises. In this location, we have everything we need to help produce more protein with less resources for the population in 2015 – in a clean way, a safe way and an inspiring way,” says van Noort.

From left Primary Industries Minister Nathan Guy with CRV chief executive Roald van Noort, CRV Ambreed CEO Angus Haslett and CRV board member Noel van Leeuwe at the opening.

“We provide a biosecurity level here that is unrivalled in the Southern hemisphere, and also for CRV from a global perspective.” Haslett says CRV Ambreed received a huge amount of support from its staff at Innovation Park in Hamilton, Bellevue Holdings, the owners of the site which CRV Ambreed has a long term lease on, and the many associated contractors who assisted with site construction. Guy acknowledged CRV for the important role the company has played in improving the efficiency of the dairy industry in New Zealand and around the world; the new facility was a big vote of

confidence in the New Zealand dairy industry, he adds. “[CRV] has a long-standing investment here in the dairy industry, I believe New Zealand farmers are the best in the world, and one of the best and biggest contributors to our increased productivity is indeed genetics.” Guy estimated that genetic gain alone contributes around $45 million annually to the national economy. He has set a target of doubling the value of New Zealand’s primary exports for 2025 to $64 billion, and CRV’s expansion and focus on exports fits in well with that target

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CRV AMBREED managing director Angus Haslett says the opening of a new bovine semen production and distribution facility in Hamilton marks the start of a new era for the company. The CRV Bellevue Production and Logistics Centre, based on the outskirts of Hamilton, is a purpose-built facility which future-proofs the company with additional capacity to meet the growing demand for its bovine semen products. The centre houses a semen collection facility, a semen processing laboratory, storage space for export and domestic products, a warehouse with farmer AI banks, and 38ha of grazing paddocks. It was opened last month by Primary Industries Minister Nathan Guy. CRV’s global chief executive Roald van Noort and members of the supervisory board also attended the opening. Haslett says the new facility was developed to the highest standards required to meet domestic and export compliance, biosecurity requirements and animal welfare standards.

DAIRY NEWS JANUARY 27, 2015

26 // MANAGEMENT

Strategies needed to cope w RESTRICTED PASTURE growth and milk

production occurs in many parts of New Zealand as a result of dry summers and irrigation restrictions, according to DairyNZ. These events are unpredictable and vary in their timing, severity and duration. The impact of these events on milksolids production and farm profit can be minimised by the early implementation of proven strategies, it says. The key is to have a plan and to make timely decisions based on the best available information. Having no plan coupled with indecision, leads to unnecessary stress and lower profit. Whatever the summer conditions, the first management rule is to fully and efficiently use spring pasture before dry and hot conditions reduce

the growth and quality of pasture. Successful summer management depends on planning, monitoring and taking action. In recent years significant dry periods have been

actions should occur. Regular monitoring of both the farm and wider situation is important, as it allows you to evaluate the options available for stock and feed management, based on the most

Successful summer management depends on planning, monitoring and taking action. a feature of summer farming in many regions. Farmers in areas prone to dry conditions should aim have a well thought through contingency plan for the summer dry. Every farm should have a summer management plan. This is a must, setting out key decision points concerning stock and feed management and the dates when critical

accurate information. A weekly farm walk and keeping up to date with industry online information and the news will help achieve this. Sensible management of Body Condition Score (BCS) is crucial to the protection of next season’s production. Mixed aged cows need to be at BCS 5.0 by next calving, first and second calvers at BCS

The key is to fully utilise spring pasture before the heat conditions reduce growth.

5.5, so pulling condition off them now for the sake of continued production makes no sense. It will cost you far more to put it back on later. Monitor the BCS of your cows and heifers reg-

ularly (every 3-4 weeks), even if away grazing during summer dry periods. Management options include: ■■ Getting all known culls off the farm as soon as

■■

possible Don’t carry cull cows for the sake of it. If sending them to slaughter, remember that they must be fit for transport and able to bear weight on all four

■■

limbs. Dry mature animals off, based on BCS and somatic cell count (SCC). As a safeguard, have a final dry-off date and stick to it. Drying off low producers and

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DAIRY NEWS JANUARY 27, 2015

MANAGEMENT // 27

e with big dry young stock early, when they are in good condition also makes good sense, as it will reduce the pressure on the available resources. ■■ Milking low BCS cows once-a-day in early autumn. Consider once-a-day milking Alternative milking patterns, such as once-a-day (OAD) can help take the pressure off both staff and cows and are an attractive option. Switching to OAD means paying close attention to mastitis detection and management, as SCC can rise to double that of cows milked twicea-day and some cows may develop clinical mastitis Be very careful if your bulk SCC is over 200,000 before switching to OAD, as you run the risk of grading. At the very least, your bulk tank needs to be able to accommodate a short term (3-4 day) doubling in SCC. Consult the SAMM plan For those with problematic cell counts, milking ‘three times in two days’ is an option that can be used in extending rotation length and rationing feed. However, awkward milking times may outweigh the advantages for you Use supplements wisely ■■ Feeding supplements keeps animals in production longer than would otherwise be possible in a dry summer. ■■ First and foremost, earmark 10-14 days of supplement for the period after rain (about 100kg DM/cow). There will be a lot of pasture decay at this time and you will need something to keep

your cows going, allowing pasture to recover. Remember to include your winter supplement requirements in your planning as well. ■■ Supplements can increase stock water intakes, so systems must be in place to cope with the increased demand. Consider providing water in the yards to reduce the demand on troughs in the paddock after milking. ■■ Offer pasture silage to stock first, as it will have more protein than maize silage. Avoid using autumn/winter supplements if possible. Use them only as a last resort after drying off the entire herd. ■■ If grazing turnips, make sure you give enough of them to meet cow energy demands and that all animals can feed at once. Bought in supplements such as palm kernel extract/tapioca mixes and maize silage are an option. Seek professional advice before using unfamiliar feed mixes on your stock. Supplements can be profitable providing you apply best practice management and purchase the supplement at the price. Only purchase and feed out supplements if you have: ■■ Residuals below 7 clicks or less on the rising plate meter (under 1500 kgDM/ha using the winter formula). ■■ Determined the maximum supplement price you can afford to pay and still make a profit. ■■ The ability to avoid feed losses and wastage when storing and feeding out the supplement.

The immediate milk response is unlikely to fully cover the cost, but if feeding results in maintaining more cows in milk when it does rain the returns can be significant. Use the milk price $/kg MS to determine the value proposition of buying feed to feed lactating cows.

In recent years significant dry periods have been a feature of summer in many regions.

The rule of thumb is - if the feed cost landed on the farm, cents/kg DM exceeds 5% of the milk price then question the likely profitability of purchasing the feed for sustaining milk production.

YOU DO have a choice if you need to use a nil withholding time antibiotic on your herd! For treating footrot, metritis or bacterial respiratory disease.

Ask your veterinarian if KELACEF is a more cost effective ceftiofur for use in your herd. • Nil milk withholding period • 2 day meat withholding period

LOOK AFTER IRRIGATED GRASS IF YOU are irrigating, monitor soil moisture levels regularly. Consider signing up to NIWA’s Climate Explorer (www.niwa.co.nz) to help with your planning. Have a contingency plan for when water restrictions are applied. One option is to fully water the best part of your farm, rather than watering the whole farm poorly. Irrigated crops can provide a high return. There are a few paddocks of deferred grazing still around. Graze these now, as both quality and quantity of feed will drop fast. Have a plan to avoid overgrazing (grazing to less than 3.5 cam height).

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DAIRY NEWS JANUARY 27, 2015

28 // MANAGEMENT

Getting through summer DARREN SUTTON

WE’RE PAST the halfway mark of the season. While we hope for a ‘normal’ summer where ‘the average rain’ will fall each month, we are mindful that decisions made within the next few months can impact milk production and herd reproduction for next season. It’s time to plan strategies to adopt in managing your way through summer and into autumn. Typically from January onward, pasture growth rates will begin to drop below animal demand. So what will your strategy be to tackle summer considering the forecast $4.70 payout? Milking frequency Once-a-day (OAD) milking could be a useful tool for your farm. OAD milking for one, or all, of your herds can be effective in reducing: ■■ feed demand ■■ time required on farm ■■ some variable costs associated with milkings (such as electricity, detergents and labour costs). Farms that normally run two herds,

of older and younger age-splits, suit this; it can mean a progressive plan may be adopted by putting the young herd on OAD in December or January, followed by a decision on whether the older cows go onto OAD. Another option is three-milkingsin-two days, sometimes called 16 hour milkings. It is not vital that cows are milked exactly every 16 hours; make it work for you and your staff. A common rotation that works is 5am, 7pm and then 11am the next day. The benefit of this method is cows holding milk production slightly higher, and you will also reduce the heat-stress demands on the cows through summer by avoiding stock movements through the hottest part of the day. It can also aid in pushing the round length out as cows only get a new break after each milking. So a 20 day round becomes a 27 day round by default. Feeding Levels It is important when moving to OAD or three-in-two-milkings that feed levels are not reduced; this is especially so within the first two weeks of making the change.

Cow intakes will naturally not reduce for about the first four to six weeks on OAD, and then they will reduce slightly, by about 10%. So it is crucial to move onto OAD at least 14 days prior to any feed shortage. Often the trigger point to go OAD is when cows produce about 1.4 to 1.5 kgs MS/c/day. Usually cows will end up dropping about 0.1 to 0.2 kgs MS/cow/day after about seven days on OAD. If it is at all possible, feeding levels should be lifted to reduce, or nullify, any drop in milk production for the first 10-14 days of going OAD. In January summer crops are frequently ready to be started, so the OAD herd benefits from starting the crop at the same time. One way to stimulate cows to hold their intakes high is to keep doing 12-hour feed breaks, instead of allocating 24 hours as one feed. This can encourage cows to get up and eat if moved to a close-by paddock (minimise walking where possible till late afternoon), or winding up the break fence. Benefits Research shows that cows switched

from TAD to OAD in mid-January gain 0.2 to 0.4 BCS units by dry-off. This is one of the main benefits of OAD: cows will hold, and can gain, BCS through summer and autumn, which allows for more days-in-milk; OAD also avoids being forced to dry the 2-yearolds off early due to low BCS. The above strategy will provide options in bridging-through a short dry spell in the (Waikato) summer, and will in-turn produce wider options when farmers seek to capture the benefits of the normal ‘autumn flush’. Costs The only cost in reducing milking frequency is a decline in milk production per cow per day. One piece of research shows that ‘a typical drop’ for a cow producing at 1.2 MS/c/day on TAD, is about 0.1 kg to 0.15 kgs MS/c/day. Calculate the costs to your farm to complete that afternoon milking, and decide what the margin is. Consider what electricity and labour saving can be made on your farm. Somatic Cell Count SCC will often double for the first 48 hours as cows adjust to OAD. After seven days it will settle back

Darren Sutton

down to frequently be about 25-50% higher than before. Putting only one herd on OAD at a time will help manage this transition without grading. Three milkings in two days will also mitigate SCC issues. The younger cows naturally have a lower SCC, so the total bulk milk SCC may not lift very much at all with the older cows still on TAD. If considering using OAD this season, it is important you work to get mastitis and SCC levels down now (to allow greater options as summer unfolds). Cows milked on OAD need to be monitored closely to ensure they are all milked out properly and to pick up on any early signs of mastitis. So begin to think whether OAD could benefit your farm this summer. Unlike last year, reaching for the PKE lever may not be the first choice. • Darren Sutton is LIC FarmWise consultant, Waikato.

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DAIRY NEWS JANUARY 27, 2015

MANAGEMENT // 29

Getting ready for maize harvest THERE IS an old saying which states “prior planning prevents poor performance”. With maize silage harvest beginning in about 4-6 weeks in many areas, a little planning now will go a long way to prevent a lot of stress just before your crop starts arriving at the stack. A few things you may need to think about are: Talking to your contractor Begin communication with the contractor who is chopping your maize now. First, check your job has been booked in, then make sure the contractor is aware of the area to be harvested, how far the chopped maize needs to be carted, where it will be stacked and your target harvest DM (wetter vs drier). Clarify who will be doing the stack work and

WMS_3DealsSetOfAdsDNp.indd 1

whether the contractor will supply the inoculant and silage cover. If you are cropping an area for the first time it is wise to get the contractor out on farm to make sure that the gates are wide enough to get harvest machinery through, that any bridges will take the weight of fully laden trucks or trailers, and that the area where the maize is to be stacked has enough room for harvest and stacking machinery to move about safely and freely. Walk through all potential hazards with the contractor to make sure that these are noted so any potential danger can be removed or minimised prior to harvest time. Preparing the stack site or bunker Preparing the stack site or bunker prior to harvest will mean the job

is done more thoroughly and there will be less stress on harvest day. New stacks. If you are planning to stack some or all of your maize in a paddock, mark out the location well ahead of harvest. Make sure the stack is in a dry area. It should be far enough away from drains, fences, and buildings to give the stack tractor room to run off the stack. This will ensure the sides of the stack are better compacted. Rats and mice. Rats

and mice love maize silage stacks. The holes they make in the silage cover let in air and moisture resulting in maize silage DM and quality losses, as well as potential animal health issues. Lay rodent bait in bait stations around the area to reduce the rat and mice population. Tyres. Stack tyres so that they are easily accessible at maize silage covering time. This is often a horrible job as on many farms the tyres have been chucked off to one side, are covered in grass or weeds and are full of filthy water. Stacking them now, when you have time, will reduce a huge amount of stress around harvest time. Clean existing stack sites or bunkers. Old rotting silage is full of spoilage organisms. If the

A little planning will go a long way to prevent stress during maize harvesting.

next maize is placed on top of it, and then mixed through it during the stacking process, you can expect higher losses. Choosing a silage inoculant Do the research now before the harvest has begun so you can make an informed decision. Not all inoculants are created equal. Some

products are very well researched while others have absolutely no data to support their use. Ask the inoculant company for scientific data (including fermentation trials, DM recovery studies and animal performance trials) which has been peer reviewed and/or published in scientific journals. If the person

who is trying to sell you an inoculant can’t provide you with solid data to support the use of their product, choose an inoculant from a company that can. Ian Williams is a Pioneer brand products forage specialist. Email: iwilliams@genetic.co.nz @dairy_news facebook.com/dairynews

25/11/14 2:33 pm

DAIRY NEWS JANUARY 27, 2015

30 // MANAGEMENT

Heat seeking drone to help fight rural fires PETER BURKE peterb@ruralnews.co.nz

WITH THE risk of fire from droughts a joint research project by the Crown Research Institute, Scion, and the engineering school at Canterbury University may yield some major benefits. Final year students at the university have been working for the past two years on developing an unmanned aerial vehicle (UAV) or drone that can detect and map the under-

their hands to detect the capture the GPS coordiground hot spots after a underground ‘hot spots’,” nates and make it easier rural fire which are invisifor rural firefighters to put says Litchfield. “The alterble to the naked eye. native is a helicopter with these out. The technolThe project was on special equipdisplay at ment which the recent “I’d like to see all rural fire can cost thouair show people have access to one of - Wings these because it will save them sands of dolIt’s Over Wairan enormous amount of time.” lars. hoped the arapa - as drone with its camera and part of a feature display on ogy is still not proven but other equipment will be if successful it will save drone use. able to quickly and safely hours of hard work by Ben Litchfield, a final mark out these underrural firefighters. year engineering student ground hot spot areas and “At present firefightwho has been working on within an hour or so prothe project, says the objec- ers have to walk around a duce a map of an area for fire that is seemingly out tive is to produce a UAV firemen.” and physically touch the with a payload which can Litchfield says the projground with the backs of ‘geolocate’ any hotspots,

Ben Litchfield shows off the fire fighting drone.

ect was started last year by another group of students and he is ‘fine tuning’ their work and carrying on from where they left off. The UAV should be able to fly at a relatively low height - about 30m - and cover large strips of ground. It’s not just bush fires that present a challenge – fires in peat areas which can be damp and difficult for

people to operate in could be targeted by this piece of equipment if all goes to plan, says Litchfield. The ultimate goal would be commercialisation. “I’d like to see all rural fire people have access to one of these because I think it will save them an enormous amount of time,” says Litchfield. There is a lot more

development work and field testing to be undertaken before the outcome of this research project is known. But the concept and the potential is inviting for rural fire fighters who are always on the lookout to improve the efficiency of their operations. @dairy_news facebook.com/dairynews

Act now to reduce losses FARMERS NEED to act now if they are to cope with the effects of a predicted drought in Canterbury, Lincoln University experts say. But they also need to be thinking longterm with more dry spells looking likely. Chris Logan, animal programmes manager at Lincoln University, says the region may be in for a hard drought of a kind which has not been seen for some decades. ‘’If they don’t have other contingencies in place, then farmers really need to be reducing stock numbers to their winter stocking rate as fast as they can. That probably means taking a lower price than they would have liked but at this point, there is not much option.” Sourcing off-farm grazing is an option, but it comes at a cost, not only in terms of grazing and transport charges per head but increased animal health risks when grazed-off animals return, as well as reduced management and nutritional control, Mr Logan says. Professor Tony Bywater, of the Faculty of Agriculture and Life Sciences, says long-term planning is needed. “The pundits tell us that climate change is likely to increase the frequency of dry periods in the future so farmers really need to be thinking about how their system is set up to cope with variability in weather patterns.’’ He says the start of a drought is not the best time to start thinking about how to cope with a dry spell. “By the time we realise we are in a drought, it’s usually too late to do any-

thing about it without it costing an arm and a leg,’’ Bywater says. He says Canterbury farmers need to have flexibility built into their farming systems and know their ‘trigger points’. “Know what your policies are when it gets dry, and when it’s a good year, and then monitor the situation every week and react when you have to,’’ Bywater says. He says you have to ask yourself how risk averse you are. “If you don’t like risk, react sooner when it’s getting dry, maybe when soil moisture reaches 15% by volume – even though at that level, pastures will still be growing. If you can take a bit more risk, wait until it reaches 10% but that’s pretty much on the edge. Whatever your trigger is, when you reach it, act. Don’t wait.’ “Our research shows us that if farmers react to their moisture triggers instead of hanging on in the hopes of rain, they will reduce the variability of performance year to year and maintain higher profits over all — quite significantly.’’ He says this depends on having the ability to react, however. “You either have to have stock you can get off the property quickly or you have to have feed them, there’s only two choices. Older cattle are about the most flexible stock you can have so we certainly recommend a reasonable proportion of stock units in older cattle.’’ What farmers need to be looking at are systems which perform at a high level and have the flexibility to adjust to a dry year without a significant loss in profit.

DAIRY NEWS JANUARY 27, 2015

ANIMAL HEALTH // 31

Compliance campaign coming ANDREW SWALLOW

FARM TO farm movements are being monitored and if you’re not recording them on NAIT expect a call, says Stu Hutchings of NAIT parent body Ospri. His comments come as NAIT embarks on a publicity campaign of “strong reminders” why all cattle and deer movements must be recorded on the NAIT (National Animal Identification & Traceability) database within 48 hours. “We’re going to be doing quite a big media campaign to make farmers aware of their obligations,” he told Dairy News last week. NAIT estimates 75% of all cattle and deer are now registered but by the end of June it wants 100% compliance. It is also wants to see a dramatic improvement in recording of farm to farm movements: audits of transport company records cross-referenced with NAIT’s database show only about 40% are recorded on NAIT, compared to near 100% for movement to saleyards or processors. Hutchings says the initial aim is to get that to 80% of farm to farm movements recorded. While NAIT doesn’t have a breakdown of compliance by sector, he acknowledges dairy is likely to account for many farm to farm move-

WMS_3DealsSetOfAdsDNp.indd 2

NAIT wants all cattle tagged by June 30.

ments. “There are a whole lot of benefits of recording movements on NAIT. For dairy, scanning cows or heifers going off to grazing, or coming back, gives a really good stock take of the animals you’re sending and getting back, and making sure you’re sending the ones you want to.” At an industry level, if all movements are recorded lifetime traceability means trade and market assurances can be made, and up-to-date records of what animals are where, and where they have been, will be invaluable in the event of a serious disease outbreak, he adds. “We’ve been using it to a huge extent with TB breakdowns. There have been some significant ones in dairy herds recently which have been related to

stock movements.” In the event of an outbreak of a highly infectious disease such as foot and mouth, time is of the essence which is why there’s a requirement to

log movements within 48 hours. “If we get a serious disease outbreak we need to know where all the stock are in the country and where they’ve been. That data needs to be really current.” At present, of the movements that are recorded, “a lot are in the first week, then it tails off,” says Hutchings. “It’s something we do want to increase awareness of. It has to become part of their day to day management.” Even movements to and from shows must be logged. “Those events are quite critical when you think about it in a disease outbreak situation.” Farm to farm movement records are only mandatory if more than 20km or the animals are moving to the management of a PICA (Person In Charge of

Animals) with a different NAIT number. Hutchings says if NAIT finds such movements haven’t been recorded the PICA’s concerned will get a phone call in the first instance. “It’s about education and training. We’ll be asking them how can we help get it done.” Ongoing or blatant non-compliance will trigger further action which could result in referral to MPI which has the power to issue infringement fines of up to $150/animal. “So it can become fairly significant for large mobs of cattle but by the time it reaches that stage [the farmer] would have had plenty of opportunity to sort it out.” But Hutchings says the focus should be on the benefits using NAIT can bring.

TAGGED AND ACTIVATED By June 30 all cattle and deer must be tagged with NAIT compliant tags and registered on the NAIT database. Currently it estimates 75% are, though Hutchings says he expects dairy is better than some sectors. “A key message is that they don’t just need to be tagged: they need to be tagged and activated. That means the animal needs to be registered on the NAIT system.” Hutchings says he’s satisfied with the accuracy NAIT’s current data.

“I’m confident of the data we have in there. The concern is the data we don’t have.” The option of sending untagged animals direct to slaughter and paying an impractical-to-tag levy also ends June 30 but will likely be replaced with a permit and fee scheme for animals that really are too dangerous or impossible to tag. However, a badly torn right ear where tags have been lost is no excuse, it seems. “You can put the tag in the other ear if you need to.”

25/11/14 2:33 pm

DAIRY NEWS JANUARY 27, 2015

32 // ANIMAL HEALTH

New Zealand native grass grub (Costelytra zealandica).

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Insect pests avoid boosted pasture growth PASTURE GRASSES containing

beneficial microorganisms are less attractive to soil-dwelling insect pests, according to a recent study. Most New Zealand ryegrass and fescue pastures contain beneficial microorganisms that live within the grass shoots. These fungal endophytes are key to the country’s healthy grasslands. In return for food and shelter the endophyte can help its host grass resist insect attack, survive droughts, and even protect against overgrazing. Insect pests are attracted to plants by odour as they can smell minute amounts of chemical compounds that tell them if a plant is damaged or healthy. Now researchers in New Zealand from Lincoln University, AgResearch and the University of Otago have shown that, when colonised by endophytes, the chemicals released by the grass are different, and

this can deter insect pests in the soil from feeding on plant roots. The study from the Bio-Protection Research Centre showed that grass grubs, a major grassland pest throughout New Zealand, preferred to feed on the roots of grasses without endophytes, and that the insects appeared to be responding to the smell of specific types of compounds (known as volatiles) that are released by the plants. “The endophyte is only present in the shoots, not the roots; however, we found the roots produce less volatiles and so fewer grubs came to feed on them,” says Dr Michael Rostás, a senior lecturer at Lincoln University and lead researcher on the recent paper. While previously shown to affect the above ground feeding of insect pests, this novel finding reveals that endophytes that inhabit only the shoots and leaves can also affect feed-

ing below ground. “Our data suggests that protection is a two-step process where grass grubs are less attracted to plants with endophytes in the first place. Those that do feed on the roots will eventually be deterred by the fungal toxins,” says Rostás. This research used the latest mass spectrometry technology at the University of Otago, which can detect very low amounts of airborne chemicals. The fact that such sophisticated equipment is needed highlights just how sensitive insects’ antennae are. More research is necessary to see whether other combinations of grass and endophyte have the same effect, and if this can be used to combat grass grub damage on farms. This research is available online in the Oecologia journal and will appear in print early next year.

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DAIRY NEWS JANUARY 27, 2015

ANIMAL HEALTH // 33

Remain vigilant against mastitis PHIL FLEMING

MASTITIS IS INFLAMMATION

of a cow’s mammary glands and udder tissue. It usually occurs as an immune response to bacterial invasion of the teat canal by various bacteria present onfarm, and can also occur as a result of chemical, mechanical or thermal injury to the cow’s udder. Milk-secreting tissues and various ducts throughout the udder can be damaged by bacterial toxins, and sometimes permanent damage to the udder occurs. Severe acute cases can be fatal, but even in cows that recover there may be consequences for the rest of the lactation and subsequent lactations. The illness is, in most respects, a complex disease affected by a variety of factors: it can be present in a herd subclinically where few,

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if any, symptoms are present in most cows. Practices such as close attention to milking hygiene, the culling of chronically infected cows and effective dairy cow nutrition to promote good cow health are essential to help control herd mastitis levels. Mastitis treatment and control is one of the largest animal health costs to the dairy industry and markedly affects cow welfare. Losses can arise from: Milk thrown away due to contamination by medication or being unfit to drink. A reduction in yields due to illness and any permanent damage to udder tissue. The extra labour required to tend to mastitis cows. The costs of veterinary care and antibiotics. The cost of reduced longevity due to premature culling. Grading due to high

bulk somatic cell count (SCC) in the milk. Most mastitis problems are either calving related environmental problems, characterised by a high number of clinical cases in the spring, and/or contagious, which usually result in a rising cell count later in the season.

Phil Fleming

The contagious form of bacteria is Staph aureus which is easily transmitted from cow to cow via milkers’ hands and liners, so as the season progresses the number of infected cows goes up. Some good tips for keeping this form of bacteria at bay: Spraying every teat, every day and every milking. Wear milking gloves. Avoid hosing down around cows when cups are off.

Mastitis treatment and control is one of the largest animal health costs to the industry.

Where possible milk your high cell-count cows last. Keeping the herd cell count low in the autumn can present challenges because as production volume drops, cells become less diluted and cell count rises. There is no benefit to treating high cell-count cows in late lactation so along with low producers they should be dried-off early

and treated with dry cow therapy. Many of the chronically infected mastitis cows cannot be fixed so I recommend culling cows which have had three or more clinical cases during the season as well as cows which have had high SCC over two consecutive seasons using dry cow therapy. Mastitis is a complex issue and every situation

is slightly different on any given farm. So how you treat it can depend on a number of variables. But the key message is to remain vigilant in detecting cases and carry out good dairy hygiene practices at all times of the year. • Phil Fleming is LIC FarmWise consultant This article first appeared in Getting the Basics Right 2015 edition

25/11/14 2:33 pm

DAIRY NEWS JANUARY 27, 2015

34 // ANIMAL HEALTH/BREEDING

Getting heat detection right TRACY QUIN

NEW ZEALAND’S sea-

sonal dairy system brings a need to maximise the number of days in milk, and this season the pressure is greater than ever upon farmers to achieve that. The recent changes to rules on inductions that have the practice banned from spring 2015 means getting cows in calf sooner is crucial. Nationally the dairy industry has a target of 78% six week in calf rate, which at present is averaging 65%. Initiatives like LIC’s 6 Week Challenge have raised the profile about the importance of

getting cows in calf earlier. This will deliver more days in milk and more valuable high genetic heifer calves to build the herd’s future upon. Work by DairyNZ scientist Dr Chris Burke indicates a missed heat represents a loss of $150 per cow. But a combination of careful observation skills and well suited oestrus detection aids will help ensure that loss is minimised. Heat or oestrus in dairy cows can be as varied as the cows themselves, differing in outward behaviour ranging from overly aggressive or restless, to being withdrawn. Influences on cycle time Sexually mature cows

will cycle every 21 days, but the time on heat can also vary significantly, from 13-15 hours to only 2-3 hours, and a maximum of 30 hours. This can be influenced by the age of the cow: a young heifer will take longer than an older mature milking cow. Good cow condition will result in her cycling earlier after her last pregnancy, later if she is lighter. What to watch for Cow behaviour when on heat brings some distinct signs that indicate the stage of heat the cow is at. When observing behaviour in the paddock, restlessness, sniffing other cows’ tail areas and mounting are all signs she

is either coming into heat or is on heat. Observations in the dairy such as swollen vulva, withholding milk and rubbed tail hair are also indications. A sure sign that a cow is ready for AI is when she stands ready to be mounted by another cow. The mounting cow rubs off the standing cow’s tail paint, making the fact that she is on heat obvious to the observer when she next comes in for milking. If observed in the morning she should be drafted out and inseminated. If observed in the evening, making a note or logging her number into the drafting system will ensure she will be drafted out in the morning. If she does

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Cow behaviour when on heat brings some distinctive signs.

not stand to be mounted it is still too early. Detecting heat – some options The most widely used and most cost-effective method of heat detection chosen by NZ farmers is tail painting. Ensuring the area is clean, apply paint along the spine from tail head in a 15cm by 5cm strip. Four colour codes are recommended: ■■ Red – 3 weeks before calving on all cows will help identify those cows not cycling and requiring attention. ■■ Green – immediately before starting AI programme to identify

cows as they cycle. Blue – post insemination, no rubbing 3-4 weeks later indicates she has held. ■■ Yellow – when pregnancy is confirmed. ■■ Regular touch-ups are recommended for tail paint. There are different types of tail paint applications available – aerosols, brush on applicators, tins, buckets and a backpack tail painter to help assist with tail painting large herds. High-tech options also exist. Heat detection collars are one option that detect when a cow’s activity is elevated while on heat. ■■

Such technology is common in the northern hemisphere and interest is growing in New Zealand. Especially on intensively farmed properties the high-tech options free staff for other jobs, or sometimes allow a staff member to be replaced. Whatever method of heat detection is chosen, a set procedure, good observational skills and a proven method will all ensure a tighter calving pattern and more milk in the vat next season. • Tracy Quin is brand manager GEA Farm Technologies *This article first appeared in Getting the Basics Right 2015 edition.

DAIRY NEWS JANUARY 27, 2015

PASTURE RENOVATION & CULTIVATION // 35

PRODUCTION ORIENTATED FARMERS... Are you suffering from:

• Surface ponding of pastures? • Hay & silage being tramped into pasture and wasted?

Pugged paddocks can reduce pasture growth up to 60% DON’T PUT GOOD FERTILISER ON COMPACTED SOIL WHICH CAN’T ABSORB IT If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?

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farming is a balance between managing the pasture and the cows to maximise sustainable profit, says DairyNZ. Grazing management must optimise future pasture production and quality, with MS production and reproductive performance. According to DairyNZ, the tools of grazing management are frequency and intensity of grazing. Pasture production and quality are mainly affected by cover (amount of pasture) and grazing intensity. Pasture intake is mainly affected by the amount and quality of the available pasture offered each day. Pasture and herd performance are optimised by having sufficient quality feed on an annual basis to meet cow demand and by allocating this feed applying the following principles and management practices:

■■

Control the area grazed each day (or rotation length) to manipulate pasture eaten to meet average pasture cover targets for the farm Estimate the area and pre-

■■

last grazing and prevent postgrazing height increasing over the season Have pasture cover distributed between paddocks in a feed wedge to ensure that high

Pasture intake is mainly affected by the amount and quality of the available pasture offered each day.

■■

grazing cover required for the cows based on the target grazing residual and adjust after observing when and if the cows achieve a ‘consistent, even, grazing height’ Make management decisions to maximise per cow production for the season not at any one grazing, the ‘main course principle - no dessert’ Treat pasture as a crop remove pasture grown since

■■

quality pasture is offered on all paddocks Keep average pasture cover above 1800kg DM/ha1/ in early spring and between 20002400kg DM/ha1/ for the season to maximise pasture growth rates Over the season the height of post-grazing residuals (cover) does not change but the dry matter mass does increase. This is the value of using

‘clicks’ on the Rising Plate Meter (RPM) or one formula for the RPM for the season The number of times fresh pasture is offered within a day does not affect dry matter intake or milk production. Grazing frequency does not affect grazing time, rumination time or resting time of cows. There is no research evidence that grazing frequency (12 vs 24 hr) affects pasture growth, as growth is influenced by a range of factors. It is much more important to maintain appropriate residuals of 15001600 kgDM/ha. Decisions about grazing frequency are often a result of farmer preference due to specific farm characteristics, i.e. even/uneven paddock sizes, shape of the farm, soil types and labour availability. @dairy_news facebook.com/dairynews

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DAIRY NEWS JANUARY 27, 2015

36 // PASTURE RENOVATION & CULTIVATION

Put every blade to good use ANTS ROBERTS

DAIRY FARMERS

searching for efficiencies in their operation know that home-grown, fullyutilised pasture has always been the most cost-effective feed. Even before the current downturn, many farmers were not only looking at “output ratios” such as milk solids per cow, but also at “feed efficiency” ratios such as the cost of producing a megajoule of metabolisable energy per kg of dry matter. High-fertility grass/ legume pasture is also an excellent quality feed. As Dr John Roche, Principal Scientist at DairyNZ has

written, “high quality pasture is high in energy, has good quality protein relative to cow requirements, adequate amounts of fermentable and physically effective fibre along with reasonable mineral and vitamin levels.” Of course, depending on season and cow condition, there is a role to play for supplementary feed. It’s when supplementary feed becomes substitution feed i.e., replacing pasture, that waste and risk creep into the system. So pasture should be prioritised in good times or in bad and good soil fertility is a key to stimulating and maintaining that pasture growth and quality. When it comes to

deciding on how much of which fertiliser to put where, it definitely pays to make an informed choice. It’s all about knowing where you stand before figuring out the implications of any change. Withdrawals can potentially be made from a farm’s “soil nutrient bank” when it comes to phosphate levels, you must consider all the essential nutrients, as well as soil pH, rather than purely P. It pays to soil test strategically. For example, if living with current Olsen P levels is being contemplated, not applying a product like potassic superphosphate could lead to potassium and/or sulphur deficiency with potentially significant

effects on production. Your nutrient advisor should have the tools to evaluate what withholding an application of P might mean in terms of Olsen P levels and pasture productivity. If and when a change in fertiliser policy is being contemplated, in order to get the most effective use of your expenditure, soil testing all your paddocks on the farm will give you a much clearer picture of what nutrients are required in which paddocks. Invariably you will find that there will be numbers of paddocks which could have less of one or more nutrients applied this year without any loss in pasture production and qual-

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Putting every blade of pasture to optimum use means good utilisation practices.

ity. Conversely, there will be underperforming paddocks which will require more than maintenance fertiliser to get the best out of the pasture. Negatively impacting on next year’s production through inappropriate changes to their fertiliser programme could eventually deliver a double whammy if dairy farmers are scrambling to make up for lost ground this season. Putting every blade of pasture to optimum use means good utilisation practices, but also tracking pasture performance and reviewing residuals relentlessly. There are four ways to capture pasture performance data that can be married up with soil fertility data to give real insight on soil nutrient needs: where to invest, where to maintain and potentially where to cut back. 1 Direct observation Walking the paddock with a qualified nutrient advisor is a valuable start to the fact gathering. Another pair of eyes can help scan for the evenness of pasture growth and colour, urine patch contrasts and the pasture’s

recovery after grazing. 2 Soil testing Howard de Klerk writing in the Southland Demonstration Farm’s October update said, “spending the money on all paddock sampling was more than adequately rewarded by efficient use of fertiliser.” Taking as many tests as possible on multiple, carefully-selected transects will highlight in-paddock variability which can lead to the right nutrients applied at the right rates to the paddocks that require them. A laboratory like Ravensdown’s ARL can turn soil tests around quickly and make them available on an interactive map. If you’ve already got lots of soil test data, make sure you put it to use! 3 Pasture quality testing A plant with more chlorophyll will reflect more near-infrared energy than an unhealthy plant. So analysing a plant’s spectrum of both absorption and reflection in visible and in infrared wavelengths can provide information about its health and productivity. In its herbage analysis, ARL uses near infrared spectroscopy to reveal the nutritional value of the

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Contact us to discuss your needs 0800 802 478 E: sales@rataindustries.co.nz W: www.rataindustries.co.nz Fully-utilised pasture has always been the most cost-effective feed.

pasture being grown. Pasture mineral composition also helps to fine tune nutrient requirements advice. 4 Pasture quantity testing Devices like a C-DAX Pasture Meter can capture real dry matter data and highlight those areas that need more attention. The laser scanning towbehind device takes 18,500 readings per 500m compared to the 250 of a rising plate meter. Whichever method you choose, frequent checking on growth will allow for a more accurate feed budgeting forecast, and help identify poorly performing pastures which, at best, may just need soil fertility correction or, at worst, have ‘run out’ and will need renewal. We all know the dairy industry is cyclical, so putting your information to use and growing the same or more pasture will stand you in good stead when the inevitable bounceback comes. This article first appeared in Getting the Basics Right 2015 edition. • Dr Ants Roberts is chief scientific officer at Ravensdown.

DAIRY NEWS JANUARY 27, 2015

PASTURE RENOVATION & CULTIVATION // 37

Top pastures get the gong THE BEST pastures in

Waikato and Bay of Plenty have been identified. Morrinsville farmer James Booker, and Robert Garshaw from Waiuku, are winners of the pasture renewal persistence competition run by the DairyNZ-led Pasture Renewal Leadership Group. Garshaw won best first year pasture, while Booker won the best pasture of more than 3 years old; both farmers will host field days this week. This year entrants included a mix of dairy platforms, dairy support and grazier blocks from across the region and were of a high standard. Dr David Hume, senior scientist at AgResearch says the success of the winning pastures was established by good grazing management, careful pre-sowing preparation and a correct

choice of endophyte. Hume says the judging panel were impressed with the high levels of white clover and low weed content in both of the winning paddocks, despite the impact of dry conditions in 2014. Garshaw regrassed with Bealey NEA2, Kotare and Tuscan Clover. The paddock was humped and hollowed the previous spring. The pasture had very high and even clover with a well-established proven tetraploid. Booker regrassed his winning paddock with One50 AR37 in March 2010. This perennial ryegrass and clover paddock has been a consistent performer – even as a heavily used paddock for pre-calving cows. “Both farmers also faced challenges in wet winters but there was no evidence of pasture

EVENT DETAILS Thursday, January 29 Best first year pasture Robert Garshaw 89 Neil Rd, Otaua SN70912 10am -1pm BBQ lunch will be provided Friday, January 30 Best pasture more than 3 years old James Booker 399 Endowment Rd, Te Aroha/Morrinsville, SN 76208 10am -1pm BBQ lunch will be provided

IN BRIEF Use new technology FARMERS ARE being urged to use new products and technology coming out of the Ballance AgriNutrients Clearview Innovations Primary Growth Partnership programme. The farmer-owned co-op says they will deliver some real results for farming. Ballance science extension manager Ian Tarbotton says a key part of the cooperative’s $19.5 million programme, co-funded by the Ministry for Primary Industries’ Primary Growth Partnership, is on-farm support to help farmers understand what these innovations can do for them, and how to use them. One of the first products, N-Guru, is now available for use on-farm. N-Guru, a decision support software, was designed in partnership with AgResearch to improve the efficiency of nitrogen use on pastoral farms.

damage, highlighting their careful management,” says Hume. Each winner receives $1500 of pasture renewal products, including

Farmlands vouchers and seed from Agriseeds and Agricom. Speakers will be from DairyNZ, AgResearch and the industry.

David Hume, AgResearch

DAIRY NEWS JANUARY 27, 2015

38 // MACHINERY & PRODUCTS

Square balers boosts yield, saves time and money TWO NEW L Series

square balers - the L330 and the L340 - will improve efficiency on farm, says machinery maker John Deere. These large balers are designed to maximise performance, increase uptime, and lower the overall cost of operation for commercial hay equipment owners and operators, it says. “We’ve been working for years to develop a large square baler that will meet the tough demands of our commercial hay customers,” says Jeremy Unruh, product line manager, Ottumwa Works in the US. “And now we’re very pleased to launch the

new L Series square balers with high-capacity rotor to offer more efficiency, capacity, and performance to commercial hay producers in our key markets.” The balers are designed with two pickup widths, 2.1m for the L330 and 2.3m for the L340. These high-capacity balers feature a heavy-duty drive-

train with a 45 strokeper-minute gear box to transfer power to other components. The L330 produces a large square bale that is 90cm high and 90cm wide, and the 340 Baler produces a 90cm high and 120cm wide square bale. “The L Series Square Balers use a dependable gear and shaft drive for

John Deere says its new square balers make life easy for hay producers.

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the main components including the stuffer system and knotter drive system,” says Unruh. “And, the high-capacity rotor is driven with a cam clutch protected chain. Bottom line, these new balers redefine large square baler performance with added capacity and durability built into very machine.” A special heavy-duty single-fork system compresses the crop tightly before transferring the hay into the bale case, creating dense well-shaped bales in the most difficult conditions. A new on-board hydraulic density control allows the in-cab monitor to control hydraulic pressure on the cylinders against the bale case. Even when the moisture content changes, the pre-set density for the bales do not. “We’ve designed the L330 with three hydraulic cylinders and the L340 with four hydraulic cylinders to adjust bale case tension,” says Unruh. “This durable density control system ensures the production of consistent, well-shaped large bales regardless of changing field conditions.” The L Series Square Balers also feature dependable double-tie knotters with an inte-

grated lubrication system. They are designed with a replaceable billhook and wiper plate for easier knotter repair and servicing. Also, hydraulically-operated knotter cleaning fans keep trash and debris out of the knotter system. This helps to improve overall knotter performance with very few misses throughout an entire harvest season. “Another great feature is the hydraulic roller chute, last bale ejection system,” says Unruh. “This feature allows an operator who needs to clean out the last bale for each job, to wrap and eject the final bale regardless of size.” Other features include an optional precutter with 10 knives on the L330 and 23 knives on the L340. The 23 knife precutter has a slide out knife tray for easy access and serviceability. Knife removal does not require any tools. “The L Series Square Balers have also been designed with new technology in mind,” says Unruh. “ISOBUS electronics allows the new balers to work with JDLink software and are compatible with GreenStar displays. Electonic knotter flags come standard on all balers.” www.JohnDeere.co.nz. 0800 303 100

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DAIRY NEWS JANUARY 27, 2015

MACHINERY & PRODUCTS // 39

Milk liner beats expectation MILKING

EQUIPMENT

maker DeLaval says its Clover liner, launched in 2013, is has been well received by farmers. The liner has beaten all our expectations so far, says Jean Jacques Dreier, portfolio director, liners and tubes at DeLaval. “We had to increase the production capacity after it hit the market as the demand was

beyond our forecasts.” Farmers around Europe are seeing the benefits. Jeppe Bomann in Denmark was looking for a liner with better grip and durability for his 500 cows. “With Jersey cows it can be a challenge to find a liner that fits the different thicknesses of the teats. It’s really important to get fresh cows in their first lactation

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milked well for high performance. I recommend DeLaval Clover liner to other farmers,” he says.

DeLaval says the main benefits seen by farmers are a reduction in mastitis, reduction or

elimination of hyperkeratosis at the teat ends and more relaxed cows.

The liner also has better grip and durability and is quickly adapted by cows. The company says Clover liner’s success means more R&D into improving the product. “We will extend the assortment and adapt it and will have new variations of the liner launched in 2015 so watch this space,” says Dreier.

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KIA HAS scored a triple triumph in one of the oldest design competitions in the world. Two recently introduced international Kia models and one of its star concept cars have received Good Design awards for their innovative design and technology. The prestigious awards have gone to the Kia K900 flagship sedan, the all-electric Kia Soul EV and the Kia GT4 Stinger concept sports car, which were all unveiled in the last 12 months. The Good Design programme was established in 1950 by the Chicago Athenaeum, an International Museum of Architecture and Design, based in the world’s first city of modern architecture and design. The museum is dedicated to the Art of Design in all areas of the discipline: architecture, industrial and product design, graphics, landscape architecture, and urban planning. The Good Design awards celebrate excellence across 25 different categories, including transportation, in which the three Kia vehicles vied with entries that included those from Mercedes-Benz and BMW. A jury of independent design professionals, industry specialists and design media, evaluated the three Kia models on a range of criteria – innovative design, new technologies, form, materials, construction, concept, function, utility, energy efficiency and sensitivity to the environment – elements in which they scored highly. The global Kia design team, led since 2006 by Peter Schreyer, has won widespread acclaim for its striking and innovative work, which has been a major contributor to Kia’s substantial global growth in recent years, along with a significant increase in research and development, and investment in technology. “These three Good Design awards cap a particularly strong year for Kia Motors and its design team, having collected a number internationally recognised awards,” says Todd McDonald, general manager of Kia Motors New Zealand. “Design and innovation are clear attributes that help Kia vehicles to stand out from the competition, and awards such as these help to reinforce why increasing numbers of people around the world are making a conscious decision to buy a Kia.”

DAIRY NEWS JANUARY 27, 2015

40 // MACHINERY & PRODUCTS

Homemade plough helps farmer unearth talent TONY HOPKINSON

THE PLOUGHING

season is well underway with various regional associations having qualifying events as ploughmen gather enough points to gain entry to the 60th New Zealand Ploughing Championships. The champs will be held at Palmerston, East Otago on Saturday, April 18 and Sunday, April 19. The event will be hosted by East Otago Vintage Machinery Club plough committee, chaired by Kathryn Gordon. There are four sections; the conventional

plough sponsored by Case IH Agriculture, the reversible plough sponsored by Farmlands Fuels, the vintage plough sponsored by Mainland Minerals and the horse plough sponsored by the Rural News Group. One of the first to qualify for the Case IH Silver Plough final was John Guy of Hamilton who won the conventional ploughing section at the Manawatu Ploughing Association match held at Palmerston North in October 2014. Guy and his wife Lynda have both ploughed competitively since their days at YFC in Te Awamutu and of more recent years

Lynda has become a qualified ploughing judge and marshal. He has a homemade plough “cannibalised” from four different ploughs and it has plastic mould boards. It has served him well competing at several New Zealand Championships. As well as competing he has been chairman of the Waikato Ploughing Association for a number of years. For the last five years he has used a Ford 4600, but this year due to the generosity of New Holland Agriculture and through their Morrinsville branch manager, Craig Berkers, he now has the use

of a New Holland TT4.75 tractor for all his competition ploughing events including the New Zealand Ploughing Championships. “We have done business with John over the years and we saw this as a practical way to support John in his ploughing, the New Zealand Ploughing Association and of course to publicise our TT4 range which we believe are the ideal entry level tractor in the lower horse power range,” said Berkers. The tractor is 75hp and utilises the proven FPT industrial engines with the Bosch rotary fuel injection and the TT4.75 is turbo-

Champion plougher John Guy with his homemade plough with plastic mould boards.

charged and intercooled. Guy, who has just had ankle surgery, appreciates the flat deck platform that gives spacious leg room and easy entry/exit. The seat has mechanical suspension and is mounted on inclined base so it can be adjusted to suit any sized operator. All gear levers and hydraulic controls are at hand for quick and easy

access. Guy says he had his own set of wheels to suit his plough and has only had to extend some hydraulic hoses to reach the ports. Guy, “I appreciate New Holland Agriculture and Craig’s generosity - all I have to do now is get the results.” The New Zealand finals at Palmerston include

two days of competition, on the first day qualifiers plough a set area of stubble and on the second day the same sized area of pasture. Winners of the conventional and reversible competitions qualify to compete in the 63rd World Ploughing Championships to be held at York, England in September 2016. 0272016821.

DAIRY NEWS JANUARY 27, 2015

MACHINERY & PRODUCTS // 41

Clean cut leaves a good impression MANAWATU CONTRACTOR Kerry Ploen

is impressed with his first Lely Splendimo PC 330 mower, says Lely NZ. Ploen’s Palmerston North business KP Contracting does spraying, cultivation, ploughing, hay, drilling and baling and has Lely machinery. Lely says he’s a big fan of its machinery, though he has not owned a Lely mower before.

ing the supporting frame as broad as possible and by placing the wheels on the inside. This allows the use of an exceptionally wide conditioning rotor to optimise crop throughput from the cutter bar. The large conditioner hoods benefit from the space above the wheels so that the swath formers are well aligned to the rotor. In addition, they ensure a streamlined crop control

frame to the ground profile. This allows even distribution of weight, as the machine’s weight is spread between the tractor wheels in front of the cutterbar and

Tel. 07 850 4050 www.lely.com

A N E W A P P R OAC H TO PRODUCTIVIT Y

“They are built like a brick.” enabling narrow swaths and effective wide spreading. Ploen estimates he’ll do about 800ha with his Splendimo PC 330 this season. “It’s built well and solid. It’s quite heavy but not noisy. It’s the conditioner model and the grass seems to dry fast.” The conditioner model has steel flails, with the swing-over model capable of being mowed on both sides of the tractor. “It’s particularly good that you can go from one side to the other. You can mow on either side. You can switch it over and it’s easy, and you can do it all from your cab just running along.” An advantage of a trailed mower-conditioner is the wheels running behind and before the machine, which adjust the height of the support

The new 5 series tractors from Deutz-Fahr deliver unparalleled on-farm productivity with industry leading features like cab suspension, Stop & Go, 4-wheel braking, an ultra-clean tier 4 engine and a super quiet, ergonomically designed cabin. The 5 series provides the benefits of a big tractor in a compact, muscular 100-130Hp tractor ideally suited to New Zealand farming. Call your local Deutz-Fahr dealer for a demonstration today, and prepare to be impressed.

Lely Splendimo PC 330 mower.

POW0451D

“We’ve had a lot of Lely tedders and had a good run with them,” Ploen says. “We looked at a few others but I’ve always liked Lely gear so we went with this one.” The Lely mower is cutting cleaner than he has ever seen. The 3.25m Lely Splendimo PC 330 is a larger mower than the one Ploen had before and he likes the modular construction of the bar. “Even years ago when they first came out I liked them. They’re built like a brick.” The modular cutter bar has the maker’s Quick Switch obstacle safety device. Quick Switch is integrated into the drive of the mower disc and protects the drive line of the cutter bar against obstacles. Maximum room has been created by construct-

mower wheels behind the cutterbar. Ploen bought the mower from Country Machinery Ltd, Sanson.

Kerry Ploen says his Splendimo PC 330 cuts so well it is like a lawn mower.

DAIRY NEWS JANUARY 27, 2015

42 // MACHINERY & PRODUCTS

Innovation lifts ATV maker’s market share US FARM vehicle

manufacturer Polaris says its strong growth in New Zealand is a result of relentless product innovation. Polaris New Zealand is now a stand-alone subsidiary based in Auckland; it finished last year with 36% sales growth over 2013. This growth result in New Zealand comes just days after it was announced Polaris had made history across the Tasman by taking the mantle as Australia’s number one off-road vehicle brand for the first time ever. According to data recently released by the Motor Industry Association of New Zealand, Polaris annexed 20.2% of the national market in December to post a market share result of 15.4% for 2014, 2.9% up on its 2013 share. With its industryleading range of 15 models with roll over protection structures (ROPS), Polaris was a clear leader

in the side x side market with 39.1% market share, posting year-on-year growth of 29.7% and selling 43% more side x

accomplishment when you consider the market has grown by just 33% over the same period,” the company says.

“We are an aggressive growth company built around innovation and product development.” sides than its nearest rival. The growth of its ATV business, however, was even more pronounced, with sales growth of 43.6% in 2014 versus the previous year. Making this result all the more impressive is that Polaris grew its New Zealand sales by 36% in 2014 versus 2013 in a market which grew by just 8.9%, representing a swing of over 27%. The company says over the past five years alone in New Zealand, Polaris has grown sales by 282% to post an average annual growth rate in excess of 56%. “Not a bad

“The growth of Polaris in New Zealand is the direct result of years of constant and relentless product innovation which has seen the US brand dominate the global market to lead

Polaris says constant and relentless product innovation is behind its success.

the enormous US market along with key markets across Australasia, Europe and Asia. “This innovation is best illustrated through Polaris’ industryleading range of 15 models with roll over protection structures, the revolutionary Sportsman ACE, locally-designed products such as Polaris UTE and heavy duty specification models and a

phenomenal range of lock and ride accessories.” After managing its New Zealand business remotely from its Australian head office for the past 15 years, Polaris recently announced its biggest investment in the New Zealand market to date with the establishment of Polaris New

Sales of Polaris vehicles in New Zealand jumped 36% last year.

S WAD R O R O TA R Y R A K E S KRONE Swadro rotary rakes deliver excellent outputs and a superior quality of work with features such as... Dura-Max – Specially hardened cam tracks with twice the normal hardness and impact strength. Comes with a 3 year warranty. Jet Effect – The forward coupling of the rotors provides a smooth ’touchdown’, thus avoiding soil contamination of the forage when going into work. This extensive range of side delivery rakes covers work widths from 3.5m to 19m to meet all farming requirements.

Zealand as a stand-alone subsidiary from January 1. Headquartered in Auckland, Polaris New Zealand will manage the Polaris, Victory and Indian brands in New Zealand and will oversee further investments in product development, customer service and support to lead the brand through its next exciting phase of growth. “The growth we have seen in 2014 is the result of the long-term investments Polaris has made both locally and abroad over the past decade,” says Polaris New Zealand country manager, Alan Collins. “These investments have resulted in us establishing Polaris New Zealand as a stand-alone subsidiary in Auckland to better cater for the local market and improve our support, service and bring us closer to the voice of

our customers. “We are an aggressive growth company built around innovation and product development. Not just product development, in fact, but also the development of entirely new markets. “The global economy has seen some lean times over the past decade, however Polaris has always maintained and grown its focus on product innovation and outstanding customer experience through thick and thin. “We now have 15 models with ROPS, we have the Sportsman ACE, we have the Polaris UTE which has been designed for New Zealand, and we have products that range from 50cc to 1000cc. We are better equipped than ever to provide practical solutions for New Zealand consumers across agricultural, recreational and fleet applications,” Collins says. www.polarisindustries. com.au

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