Dairy News 3 August 2021

Page 1

Dairy companies seek high-level FTA. PAGE 3 FARMING WITH A DIFFERENCE

Synlait’s cream of the crop PAGE 16

AUGUST 3, 2021 ISSUE 476

DIGITAL BOOST

John Deere upgrades link PAGE 26

// www.dairynews.co.nz

PASSING THE BATON

After 25 years sharemilking on the same property, Otago farmer Tony Brock prepares to hand over the reins to son, Cameron . PAGE 7

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DAIRY NEWS AUGUST 3, 2021

NEWS  // 3

‘We want an Aussiestyle agreement’ PETER BURKE peterb@ruralnews.co.nz

Buller recovery underway. PG.10

Compost barns a big help. PG.20-21

Black Hawk has landed!. PG.25

NEWS ������������������������������������������������������3-16 AGRIBUSINESS �������������������������������������17 OPINION ����������������������������������������������18-19 MANAGEMENT ������������������������������ 20-22 ANIMAL HEALTH �������������������������� 23-24 MACHINERY & PRODUCTS ���������������������������������������25-27

WHAT HAPPENS in the next six weeks will be critical for New Zealand to secure a free trade agreement (FTA) with the UK, according to the executive director of the Dairy Companies Association (DCANZ), Kimberly Crewther. Crewther says there has been a commitment by the UK Minister of Trade Liz Truss and our Agriculture and Trade Minister Damien O’Connor to come to an ‘in principle’ agreement on the FTA by the end of August. This is seen as a positive step, but it should be noted that such an ‘in principle’ agreement is not the final FTA document, which may take several more months. But the ‘in principle’ agreement is a very clear indication that both sides are basically at one and some ‘technical’ details still have to be worked through by both sides. One expert commentator told Dairy News recently that this commitment by the two ministers certainly paves the way for a final quality FTA. It’s understood that the UK is pushing for greater access to NZ in terms of services – especially financial – while NZ has a strong focus on access for primary exports. Crewther says she understands that negotiators from both sides are working very hard to deliver on the ministerial promise. She says the agreement NZ is looking for is sim-

UK Minister for Trade Liz Truss has committed to a free trade agreement with New Zealand.

ilar to the one that the UK recently concluded with Australia. “The UK agreement with Australia has an end point of complete tariff elimination and that’s what we believe should be delivered in a FTA, and that’s what we want for NZ,” she says. O’Connor is also positive about a deal with the UK, saying the UK is coming to terms with being separate from the EU, meaning they need a global strategy of connecting with as many markets as possible. He says the UK is in the process of applying for membership of the Comprehen-

sive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which will require them to adopt a more liberal trade policy. With the EU, Crewther is less optimistic, saying their past leaked offer in respect of an FTA was insulting and significantly inadequate; any future offer would need to be a vast improvement to gain any credibility as far as NZ was concerned. “The ball is now in their court to come back with something that would actually meet the quality of what should be achieved,” she says. O’Connor also concedes that it

will take longer to get an FTA with the EU across the line. He says he had good meetings with politicians and officials in Brussels and gave them the message that a EU/NZ FTA would not spell ruin for their farmers. “All were concerned that the trade agreement would not undermine any of their interests globally and we gave them that absolute assurance,” he says. O’Connor says he hopes that early next year, they will reach a point where they can get a general agreement with the EU.


DAIRY NEWS AUGUST 3, 2021

4 //  NEWS

Thumbs up to farmers, processors from council SUDESH KISSUN sudeshk@ruralnews.co.nz

A SURVEY of effluent

management on the 124 dairy farms in the Tasman region has given thumbs up to farmers and dairy companies. The survey found 98% of farms fully compliant, 1% non-compliant and another 1% significantly non-compliant. A council report says all farms that hold resource consents fully complied with all conditions of their respective consents. The report says all farms in Tasman district were inspected at least once over the 2020-21 season. One inspection found issues that were graded as ‘non-compliant’ and involved minor ponding of effluent on the ground and not in danger of running off and entering water. One farm was graded

The Tasman District Council says a considerable amount of work has been done since 2012 by the dairy industry - DairyNZ, Fonterra, and Westland Milk with farmers on eflfuent management.

as ‘serious non-compliant’ and concerned moderate ponding of effluent created by an irrigator that malfunctioned. This ponding occurred on the crest of steep sloping land where a small stream flowed at its toe. The slope of the land was enough to promote overland flow. Upon discovering the fault, farm staff immediately shut the effluent system down but not before a small amount of effluent entered the stream. Council staff undertaking water sampling

downstream at the time observed the discolouration in the steam. They traced this back upstream to the farm boundary and notified compliance staff who responded. The report says this particular farm had completed half of a major overhaul of the effluent system and was well underway with the installation of the final components at the time of the offence. A low application system and more storage that will meet industry standards will be completed ready for the 2021-

22 season. The report says a considerable amount of work has been done since 2012 by the dairy industry – DairyNZ, Fonterra, and Westland Milk by working one-on-one with farmers with respect to system and wet weather contingencies. “The council and industry are actively promoting to farmers the benefits of engaging professionals who have gained accreditation through the Farm Dairy Effluent Accreditation Scheme.” Regardless of whether

the farmer chooses to engage such a person, they are required to demonstrate that any new system or modification to any existing system meets DairyNZ’s Farm Dairy Effluent Design Code of Practice and Standards. These standards include among other things, adequate sizing and the sealing of effluent storage systems. The council says this work is now being seen throughout the district, particularly so in the Murchison area, where inspections made in past seasons identified that

non-compliance associated with ponding was far more prevalent here than any other area of the district. “This was largely associated with undersized storage systems, which left farmers with no option but to irrigate effluent onto saturated pastures rather than being able to contain until the receiving soils were back in a moisture deficit state.” The council says over the past six seasons both milk supply companies (Fonterra and Westland Milk) have repeatedly audited effluent systems that were of concern and made recommendations to the respective farmers as to how to improve them in order to meet industry best practice. At the end of the 202021 season, two more site specific designed systems had been commissioned. A further six farms are part way through the installation of their sys-

tems and should be commissioned over the next few seasons. Five more farms have had systems sized for them. These farms are now in a position where they can price out different storage options and work these costs into their farm budgets. At least three further farms are in the process of actively constructing improved containment facilities ready for the 2021-22 season. But the council notes that there still exists a small minority who will not move forward unless pushed to do so. “Such a push will likely have to come from industry as the permitted activity rules do not provide the council enough leverage at present and our intervention requires detection of an offence. “It was fair to say that the majority of these were in the Murchison region,” says the council.

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DAIRY NEWS AUGUST 3, 2021

NEWS  // 5

Tanker drivers helping drive emissions down ONE OF the (positive) side-effects of Covid-19 is the improved air and water quality. Less travel and manufacturing activity has meant those in normally polluted cities have been able to breathe easier and the Venice canals have never been clearer. But how do we make sure those gains are made permanent and aren’t lost post-Covid? The environment has been at the forefront of how the tanker team at Fonterra’s Te Awamutu site has been operating, well before the outbreak. It’s been reducing emissions, simply by adopting more economical driving techniques. Matt Roberts, depot manager at Te Awamutu, says the co-op’s depots across New Zealand have been tasked with demonstrating how drivers can reduce fuel usage. He says Te Awamutu’s drivers have risen to the challenge. “We essentially showed our drivers the data of where we were, and where we needed to be to reach our sustainability targets. “The presentation touched the hearts and minds of the driv-

The environment has been at the forefront of how the tanker team at Fonterra’s Te Awamutu site has been operating, well before the Covid outbreak.

“We essentially showed our drivers the data of where we were, and where we needed to be to reach our sustainability targets.” ers. When they realised the potential impact they could have on the environment and for our co-op, many of them felt a responsibility to improve.” Not only have the drivers from the Te Awamutu site collectively saved 16,615 litres of fuel and 46 tonnes of CO₂ emissions in the past year, it’s had a direct financial impact. “When they see the fuel barrels, it really hits home the reality of the impact they have on the

environment, just from changing their driving style – they were really chuffed.” Fonterra tanker driver Stephen Putt says he was inspired to change his driving technique in 2015, when Fonterra nominated him to compete in The Volvo Fuel Challenge. “The only problem was they only told me about the event a month before! That was a steep learning curve, but it gave me the push I needed to change

my driving style completely.” Stephen placed 5th in the New Zealand event, but he reckons if he got another chance, he’d win it. With his current performance, Stephen uses around 40 litres per 100km (the Te Awamutu driver average is 47.63 litres per 100km) but says there’s a lot of concentration involved to reach this level of fuel efficiency. “You’ve got to stay on your game, it’s always got to be on your mind. I mainly try to scan ahead and memorise the routes, to drive more efficiently.” Techniques include reduced engine braking, maintaining a steady speed, limiting the number

of stop-starts and using the truck’s momentum to coast around corners. To remind the Te Awamutu drivers of the impact they’re having, there’s a

life-sized VPM (Visual Performance Metric) in the drivers’ carpark in the form of fuel barrels. Matt says, “when they see the fuel barrels, it

really hits home the reality of the impact they have on the environment, just from changing their driving style – they were really chuffed”.

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COW MANURE TO FIRE UP THE BBQ A STUDY between Fonterra, Beca, Firstgas Group and Energy Efficiency and Conservation Authority (EECA) has found using organic waste is a viable, untapped solution to provide an alternative to New Zealand’s current residential gas supplies, with the potential to replace nearly 20% of the country’s total gas usage by 2050. Biogas is created by anaerobic digestion, where bacteria breaks down organic matter (such as food waste or cow manure) to create a gas, which, once cleaned, can be used in existing pipeline networks, appliances and equipment, while saving up to 19 times the emissions. Fonterra already has biodigest-

ers at its Tirau and Darfield sites where bugs work to process fats and proteins in wastewater, cleaning the wastewater and creating a gas. As well as creating a gas there’s also a nutrient dense product that can be spread to paddocks and crops as fertiliser. Fonterra Head of Energy and Climate, Linda Mulvihill says the study provides another potential option to help the Co-operative get to net zero emissions by 2050. “We know the more alternative energy sources we have, the faster we will be able to transition our manufacturing operations onto renewable energy sources and off coal. This study is a good example

of how Government and industry can work together – sharing science, expertise and experience – we can find solutions for the good of New Zealand. “We’re committed to playing our part to help the country transition to a low carbon future.” The co-op recently committed to getting out of coal at its manufacturing sites by 2037. Nine sites out of 28 currently use coal, with Te Awamutu being converted to wood pellets last season to reduce Fonterra’s coal use by around 10%, the equivalent of taking 32,000 cars off the road. @dairy_news facebook.com/dairynews

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DAIRY NEWS AUGUST 3, 2021

6 //  NEWS

Beaming with Beamer IT WAS all smiles ear-

lier this year when LIC announced the latest bull to be added to its Hall of Fame at the co-operative’s Newstead headquarters. After siring more than 170,000 daughters for New Zealand farms, making him among the country’s most prolific fathers, the Holstein Friesian bull, San Ray FM Beamer-ET S2F (or ‘Beamer’ as he is known to farmers), was inducted during LIC’s annual Breeders’ Day event earlier this year. The honour is shared with Beamer’s breeders, Ray and Sandra Hocking of Carterton, who supplied the bull to LIC as a calf after he was selected as a contender for the cooperative’s elite teams of artificial breeding bulls (based on his high genetic merit).

Ray Hocking said he and Sandra had been proud to follow Beamer’s success, seeing him initially selected for the LIC bull team in 2015, and then be so popular with farmers since that time. Beamer’s reputation was based on his high genetic merit, overall conformation traits, and ability to breed capacious daughters with good udders. “Beamer has a lot of things that just ‘click’ with New Zealand farmers,” Ray said. “His daughters are not overly tall but they are very wide. Production wise, he’s also got great numbers and a perfect balance of protein to fat. “As breeders we are very proud of his achievements. We know he has delivered a lot of value to a lot of farmers around

Beamer has not only fathered more than 170,000 daughters for New Zealand’s dairy herd, he’s also sired more than 92 sons and 54 grandsons.

New Zealand.” LIC livestock selection manager, Simon Worth, said Beamer was the 58th bull to be inducted

into the Hall of Fame, an honour which is reserved for animals that have delivered a significant contribution to the dairy

industry (LIC’s Hall of Fame dates back to 1954). “Beamer well and truly meets the criteria,” says Worth.

“Not only has he fathered more than 170,000 daughters for New Zealand’s dairy herd, but he’s also sired

more than 92 sons and 54 grandsons who are now following in his footsteps and achieving tremendous success.” Beamer is also one of only four bulls in New Zealand’s 70-year history of AB to surpass more than one million straws of semen for artificial insemination. “Beamer is an outstanding bull and his contribution will have a prolonged effect on New Zealand farms for many years to come. He’s always had a great nature too and is a favourite with our farm staff – a quality that would be appreciated in his daughters too I’m sure. “He enjoys a good scratch behind the ears and is often seen in his paddock sitting like a dog, waiting patiently and keeping an eye on his surroundings.”


DAIRY NEWS AUGUST 3, 2021

NEWS  // 7

Handing over the reins after 25 years of sharemilking OTAGO HOLSTEIN

Friesian breeder Tony Brock is somewhat of a rarity in dairy farming these days: he and wife Sarah have been 50:50 sharemillking on the same Kaitangata property for quarter of a century. “There’s probably not many around that have been on the same farm for as long as we have, or been sharemilking for as long as we have, but it’s worked for us here,” Tony says. He is preparing to hand the reins of the operation and his Holstein Friesian herd to his son Cameron (22), and although Tony and Sarah consciously decided to remain sharemilking, he believes it is becoming harder for young people to enter the industry or become dairy farm owners. When the couple started sharemilking on the farm 25 years ago, Tony says it cost them about $200,000 to get the herd of 360 cows they needed. “Now it would cost over $1 million. The figures have stretched a bit and it just makes it harder. More young people are choosing to become farm managers or contract milkers or choose not to enter the industry at all,” Tony says.

The couple dabbled in an equity partnership in Riverton for about eight years, as silent partners, but Tony says they eventually sold out of it when the milk payout dropped, and they decided to remain sharemilking on the 164ha farm. They milk 450 cows on the property in a 44-bale rotary shed, about 80% of them Holstein Friesian. Tony says his herd produced 420 kgMS per cow last season and they are aiming to do 480 kgMS per cow this season, feeding about 2kg of crushed barley per cow, per day during milking. With his best cow family linking back to Estee Edition Flute S2F GP84, Tony has about 30 cows in the herd doing over 600 kgMS per cow, and seven cows that have classified as excellent. He says they have focused on udders and protein production in their breeding and like to use young sires coming through like Meander Shot Alibi-ET S2F, currently being marketed by CRV. “I have five daughters from him in the herd and all have very good type and good BW and PW indexes, and they are producing well. Three of them have been contract mated by CRV,” Tony

says. The Brocks have bred three bulls marketed by CRV and LIC themselves in recent years – Estee HDF Fritz-ET S2F, Estee Blitz Fever-ET, and Estee MGH Fanatic-ET S2F. Tony says Cameron is slowly starting to take over the breeding decisions on the farm as they transition. “Cameron is pretty much running the farm now. He is very keen to take over, and he does also have some big ideas,” he says. Cameron has completed his Level Four ITO and is planning to take additional management courses in the next few years. His ultimate goal is farm ownership with a herd of around 600 cows. “The idea is to let Cameron do what he wants to do, and I can look over his shoulder from time to. The farm owners are quite happy for Cameron to take over from us over a period of time,” Tony says. Cameron’s mid-term goal is to raise the capital required to purchase the herd from his parents and take over the sharemilking contract. “It’s definitely providing a pathway for Cameron and it is a pathway that is becoming much harder for young people

wanting to enter dairy farming, but I have no doubt he would have done it on his own anyway,” Tony says.

Tony Brock (left) is preparing to hand the reins of the operation and his Holstein Friesian herd to his son Cameron.

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g n i x i M y a r p S t a e dT e t a m o t u A With his best cow family linking back to Estee Edition Flute S2F GP84, Tony Brock has about 30 cows in the herd doing over 600kgMS per cow.

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DAIRY NEWS AUGUST 3, 2021

8 //  NEWS

Winter grazing reports encouraging – Morrell JESSICA MARSHALL jessica@ruralnews.co.nz

DAIRYNZ SAYS it is

encouraged by reports of good winter grazing practices this year, with farm-

ers nudging other farmers to deliver on good practice too. “Most farmers are focused on delivering and we are largely seeing good practices as we head through winter,” says

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Sharon Morrell, DairyNZ farm performance general manager. She says farmers expect a team effort and to see assistance delivered for any farmers who need it. “As a sector, we are committed to delivering winter grazing that protects our animals and environment – this motivation is really evident this season, and farmers are taking action and adopting new practices.” Morrell says managing wet weather is challenging for any farm system but there are options for farmers facing difficult conditions, such as shifting stock off the crop during adverse weather or to shelter under trees or

Sharon Morrell

hedges. “We’re encouraging farmers to have a plan written down and to discuss it with the team –

keep reviewing it each and every wet weather event. Keep sharpening the system each time rain or snow is forecast.”

Morrell says DairyNZ is encouraging farmers to use the Winter Grazing Hotline which farmers can do by calling 0800

DON’T DUPLICATE THE GOOD WORK DONE BY FARMERS DAIRYNZ SAYS while it sup-

ports the view that all farmers should have regulated freshwater farm plans, it says these must not duplicate the good work already being done by farmers. Consultation on the Government’s proposed changes, which importantly focus on a more realistic approach to stock exclusion on farms, has begun and runs through until the beginning of September. According to DairyNZ strategy and investment leader Dr David Burger, the industry good organisation wants to see the framework acknowledge work already done by farmers and ensure it

doesn’t add time pressures onfarm or complication within regional plans. “Dairy farmers are committed to improving water quality and have a lot of work already underway on farms, including 3,400 existing Farm Environment Plans. But doubling up on work and compounding that with short timeframes will put too much pressure on farmers. Recognising existing planning is crucial because farmers are already overwhelmed with too many regulations, coming in too hard and fast,” he says. Burger says the pace and scale of new regulations is adding sig-

nificant pressure on-farm. He says in a DairyNZ survey, 62% of farmers said they or someone on their farm had experienced a mental health issue in the past 12 months, with the main cause identified as the changing regulations. “DairyNZ will make a strong submission on behalf of dairy farmers to ensure fair and achievable rules. For dairy farmers who already have a Farm Environment Plan that includes a strong focus on freshwater, it should be about updating it rather than rewriting. We also want the freshwater farm plans to fit logically with regional plan regulations, to

prevent re-work by farmers and dairy companies,” he says. Burger says dairy farmers are committed to playing their part, alongside all New Zealanders, to reduce their environmental footprint and says farmers have been taking a wide range of on-farm actions for more than 20 years nationwide to improve water quality. He adds that dairy companies have a key role in helping farmers develop and update their plans. “While the consultation is underway, DairyNZ recommends farmers continue working with their dairy companies to develop and update their plans,” he says.

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DAIRY NEWS AUGUST 3, 2021

10 //  NEWS

Farm hand Shanae Douglas clears fencing on John Reedy’s farm in the Buller region.

Buller farms in recovery mode PETER BURKE peterb@ruralnews.co.nz

BULLER DAIRY farm-

ers hit by the recent floods are facing a critical situation as they try to get their damaged farms ready to cope with calving which starts in a couple of weeks. The head of DairyNZ

for the South Island Tony Finch says, in preparation, much effort is being focused on looking after cows, ensuring their body condition scores are on target and assessing the feed situation on farms. He says about fifteen farms located near the Buller River have been affected by flooding – some severely.

“We have moved into recovery mode as the water has receded, so we can see the challenges around what’s left behind, such as silt and debris,” Finch told Dairy News. “The floodwaters have significantly impacted a couple of farms so now we are deploying people to go out to and do some on-farm assessments for

feed. We are reviewing pasture covers and supplements and checking out where the gaps may lie. Some farms which have a significant amount of sediment will have a challenging time with pasture covers and supplementary feed will be needed,” he says. Finch says emphasis is being placed on feed budgeting to pin point the gaps. He says the overall situation with supplements is pretty tight given that some of this was utilised earlier in the year to deal other adverse weather events. The response from both the urban and rural communities has been awesome, says Finch. He says the Rural Advisory Group (RAG) is meeting daily as it responds to requests for assistance. A feed coordinator has been appointed to try and match the needs of affected farmers. The Rural Support Trust, which is part of the RAG, has also been busy taking care of families and individuals who are facing hardship and stress as a result of the floods.

“There is plenty of support for farmers – all they have to do is reach out and it will be pro-

vided,” he says. Finch says while the floods will hit some farms very badly, it is unlikely

that the floods will have a major impact on overall milk production in the region.

MINISTER VISITS AGAIN AGRICULTURE MINISTER Damien O’Connor has been back in the Buller region monitoring the progress of the recovery operation and visiting farmers affected by the floods. Westport is his home town so he knows the area well. He says the period leading into spring is always a challenging time for farmers, without having a major flooding event thrown at them on the eve of calving. He says some farmers have been washed out of their farms and a few others have got significant damage to pasture. “A lot of others have just had water over their properties and, while there is some fencing damage, they should be able to get their pastures up and producing in a few weeks for spring,” he says. But for others, including his brother Bede, the road to recovery will be a lot longer. “He’s resigned to having to unload some cows and reduce the milking platform significantly. He will have to restore over 30 hectares of land back into pasture and fence it and will probably be six months before he can put cows on that land,” he says.

O’Connor says other farmers are in a similar situation and one farmer in particular has lost a significant number of cows – drowned in the floods. He says he visited another farming couple whose house was badly damaged by the floods and he says their plight is being prioritised because they need to be settled on farm for calving. O’Connor says he’s impressed with the way the recovery operation is being run in the Buller region, with all the agencies working collaboratively and quickly to get farms back in production. However, he adds that for many farmers, floods are something they have learned to cope with. “The reality is that many of the fertile areas that are farmed in NZ are subject to some kind of flooding or natural impact. “We have done our best through catchment management schemes and river protection works to protect these areas, but ultimately because of aggregation of the rivers and natural processes over time, the river protection works become less effective, especially if we are facing bigger events through climate change,” he says.

OSPRI OFFERS MORE TIME ANIMAL DISEASE management agency OSPRI says it acknowledges the difficult situation farmers in the Buller and Marlborough districts are facing following the extreme flooding. The head of traceability Kevin Forward says, to take some of the pressure off farmers, his

organisation will be extending timeframes for reporting livestock movements in NAIT for people in charge of animals (PICAs) in affected areas. He says these extensions continue until the local state of emergency is lifted for each district.

“We understand those impacted people will have a lot to deal with at present, whether it be land or property, and the recovery will be long-term. OSPRI wants to help lessen the load by giving people a bit of breathing room during this distressing and uncertain period.”


DAIRY NEWS AUGUST 3, 2021

NEWS  // 11

$17.8m dividend for LIC farmer shareholders JESSICA MARSHALL jessica@ruralnews.co.nz

FARMER CO-OPERATIVE LIC has reported

increased revenue and profit in their end of financial year results published last month. The co-operative says it will return $17.8 million in dividend to shareholders, equating to 12.5 cents per share. This dividend will be distributed on 20 August. “The LIC board is proud to present another strong result to our farmer shareholders for the fourth consecutive year,” says chairman Murray King. He says the result is

in line with the co-operative’s market guidance and a credit to shareholders for their support of significant initiatives. “These initiatives have delivered the benefits we said they would, including focused investment in the business and a better return for our farmers,” King says. He says LIC has seen good growth across core business areas for the 2020-21 financial year, but especially in the cooperative’s genetics range which sees genomicallyselected bulls used to fast-track genetic gain and deliver value on-farm through increased productivity and efficiency. “That value com-

LIC chairman Murray King.

bined with a solid dividend makes this result a win-win for our farmers. It also means we can continue our work to invest in products, services and technology that drive long term and sustainable customer value.” LIC’s genetics range accounted for close to half of the co-op’s artificial breeding (AB) insem-

inations (41.3%), more than double the amount from three years ago. This, the company says, is predominantly from the Forward Pack and A2/A2 bull teams. It also includes sexed semen, which experienced significant growth with triple the number of straws sold on the previous year, going from 33,804 to 110,125. “This growth will have a significant impact on-farm this spring and deliver a huge amount of value to our farmers, with more high quality heifer replacements and fewer bobby calves. We’re expecting this to be even greater next year with sexed semen orders likely

to almost double again,” King says. Meanwhile, the number of traditionally daughter proven bulls used for AB continued to decline, down 40% from three years ago. King says this shift reflects growing farmer confidence in LIC’s proprietary genomic work and a willingness to adopt new tools and solutions to help them meet sustainability goals. “LIC exists to deliver superior genetics and technological innovation to help our shareholders sustainably farm a profitable animal. We have a fundamental role in help-

Results highlights ■

Net profit after tax (NPAT): $22.9 million, up 31% from $17.5 million last year Total revenue from continuing operations $249.0 million, up 3.4% from $240.9 million last year Underlying earnings: $22.3 million, down 1.9% from $22.7 million last year after a one-off tax benefit in prior year Strong balance sheet with no debt at year end: Total assets $382 million, 0.5% increase $379.9 million last year Dividend: $17.8 million - 12.51 c per share, representing 80% of underlying earnings

ing New Zealand’s dairy farmers reduce their environmental footprint and we are committed to providing solutions to help them meet climate targets.

“We’ve invested heavily into genomics for our farmers because the DNA of our dairy herd can do a lot of the heavy lifting to help meet our sectors’ climate goals.”

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DAIRY NEWS AUGUST 3, 2021

12 //  NEWS

Far North Council’s SNAs move hailed by ACT SUDESH KISSUN sudeshk@ruralnews.co.nz

THE FAR North Coun-

cil is being praised by ACT primary industries spokesman and Ruawai farmer Mark Cameron for dropping the contentious Significant Natural Areas (SNAs) mapping policy. Cameron claims that private property rights are under threat thanks to the Government’s directive to councils to identify and manage SNAs. Cameron attended a protest meeting in Northland last month when more than 500 people called on the council to drop SNAs policy. SNAs were brought in

under the Resource Management Act in 1991 when councils were charged with identifying and protecting areas with significant habitats of indigenous biodiversity. Around 60% of councils have identified SNAs but the Government admits the work has not been done in a consistent way, due to lack of clarity. That has led to loud opposition from farmers and iwi and some councils have scrapped or shelved the process. The Far North District Council voted recently to continue developing the content for the draft District Plan, but to remove SNA maps developed by

ACT primary industries spokesman Mark Cameron says the Far North District Council has done the right thing by pausing the mapping of Significant Natural Areas (SNAs) in the region.

ecologists from the document. The council’s strategy and policy committee chair Councillor Rachel Smith says the decision endorses an undertaking Mayor John Carter made

in June to ‘pause’ the mapping of SNAs. “This followed protests by tangata whenua, farmers and other landowners who said the proposal to identify land as SNAs undermined their

sovereignty and property rights. “This opposition culminated in a large hikoi to the Council’s Kaikohe headquarters where tangata whenua delivered a petition against the pro-

cess,” she says. “Our decision provides a clear way forward for our draft district plan, while acknowledging more direction is needed from central government on how to support landowners to protect significant species and habitats.” Cameron believes the council has done the right thing because “the depth of feeling was clear, people were angry and worried about this policy”. “SNAs undermine conservation efforts by the people who care most about the environment. Farmers have the biggest incentive to care about the environment because they make a living from it.

“If you take away property rights, there’s no incentive to be a conservationist. Who would be a conservationist on their own land if the reward is getting your land confiscated? Countries without property rights are environmental disasters. “Actively punishing people if they look after their wetlands is among the worst policies this Government has put in place. “There’s a better way. Landowners, councils and conservationists already work together to protect indigenous biodiversity. Instead of land grabs, the Government should be supporting these preexisting efforts.”

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DAIRY NEWS AUGUST 3, 2021

NEWS  // 13

Raw milk recall RAW UNPASTEURISED drinking milk from

Central Hawke’s Bay producers Lindsay Farm is being recalled following the detection of Campylobacter.  The Ministry of Primary Industries says Lindsay Farm is a registered provider of raw milk. The recall affects Lindsay Farm brand drinking milk, sold in the Hawke’s Bay region at eight registered depots and via home deliveries. The product is sold in 2-litre plastic bottles.  Campylobacter bacteria can cause severe gastrointestinal illness in people, and can be particularly serious in young people, the elderly, pregnant women and people with weakened immune systems. New Zealand Food Safety’s national food compliance services man-

ager, Melinda Sando, says people with Lindsay Farm organic raw drinking milk at home should check if it is among the batches of recalled product.   “If you have any of the recalled product, throw it out or return it to your supplier, or heat to 70°C and hold at this temperature for one minute. If you don’t have a thermometer, heat the milk until it nearly reaches a boil (or scald the milk) before drinking it. “Raw milk is inherently more risky than pasteurised milk because the process of pasteurisation kills harmful bacteria. You can get sick from consuming raw milk. If you have health concerns after drinking the product, seek medical advice.” Campylobacter symptoms include muscle pain,

headache and fever followed by watery or bloody diarrhoea, stomach pain and nausea.  Symptoms typically develop 2 to 5 days after infection and last between 3 to 7 days.  In people with weakened immune systems, such as those with a blood disorder, with AIDS, or

receiving chemotherapy, Campylobacter occasionally spreads to the bloodstream and causes a life-threatening infection. Human campylobacteriosis is a notifiable disease in New Zealand. That means any cases must be reported to public health authorities.

Registered provider of raw milk, Lindsay Farm is recalling product after the detection of Campylobacter.  PHOTO- FACEBOOK

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DAIRY NEWS AUGUST 3, 2021

14 //  NEWS

Cheese plant to go coal-free FONTERRA’S STIRLING plant in Otago is

to become coal-free by August next year. By switching to wood biomass, the cheese plant’s annual emissions will reduce by 18,500 tonnes of carbon dioxide – the equivalent of taking more than 7,000 cars off the road. This will make Stirling Fonterra’s first 100% renewable thermal energy site, a significant step towards the co-operative’s goal of getting out of coal altogether by 2037. Fonterra general manager operations Lower South Island, Richard Gray, says it’s another huge decarbonisation milestone for the co-op. “Sustainability is at the heart of our strategy, and this project is something that will be good for the environment and local

community. As well as the site being coal free, there are additional environmental benefits the new boiler will bring, including reduction in wastewater, noise, solid waste to landfill and air discharge emissions.” He also cites economic benefits for the community, including more than $10 million for the region, and an estimated 10 jobs in the wood biomass industry. “Our Stirling site exports to customers in more than 10 countries, including Japan and South Korea, and we’re looking forward to sharing this news with them also.” The wood biomass will be provided by Pioneer Energy, which is locally owned by Central Lakes Trust. The Trust distributes grants to charitable causes in the Central

Fonterra says its Stirling cheese plant will switch from coal to wood biomass from August next year.

Otago region. Pioneer Energy chief executive Fraser Jonker says it is very proud to be involved with and to support Fonterra’s move

from coal to biomass in Stirling. “Pioneer has a proven record for the installation of new, and conversion of existing, boilers

to biomass, and with our own wood fuel division assuring quality and security of local supply for the fuel, have mitigated any perceived risk of making

this very important transition to a low carbon future.” Stirling is the third significant fuel switching project the co-op has

undertaken in as many years. The conversion of Fonterra’s Te Awamutu site to wood pellets has resulted in a 10% reduction in the co-op’s coal use, and at its Brightwater site, at the top of the South Island, it is co-firing wood biomass. Fonterra says these three projects, when combined with other energy efficiency work, will reduce its emissions by 135,000 tonnes, the equivalent of taking close to 52,000 cars off the road. Eight of Fonterra’s 29 sites are still using coal. Fonterra’s Stirling announcement came as Minister for Energy and Resources, Megan Woods, officially opened Fonterra’s wood pellet boiler at its Te Awamutu plant last week. @dairy_news facebook.com/dairynews


DAIRY NEWS AUGUST 3, 2021

NEWS  // 15

Award winners, from left: Andrea, Tony, Nic and Wayne Chamberlin.

Miraka farmers continue to lift on-farm practices FARMERS SUPPLYING milk to Taupo-

based dairy company Miraka continue to excel when it comes to on-farm practices. This year, four farms – Sandel Ridge, Arataki, Glengour, and Chamberlin Trust – reached the sought-after perfect score of 100% at the company’s Te Ara Miraka (the Miraka Way) farming excellence awards. Thirteen of the 100 participating farms achieved a score of 90% or more, alongside the four farms with a perfect score. Just 10 farms achieved a score over 90% when the awards began five years ago. The excellence standards include a mix of mandatory and optional criteria. Optional criteria are allocated points, and results are financially incentivised over and above the farmgate milk price. Miraka chief executive Grant Watson says the Te Ara Miraka programme incentivises farmers to achieve some of the dairy industry’s highest standards in animal welfare, staff management, and sustainable land practices. “We raise the bar each year and we’re seeing some significant change in on-farm practices across our supply farms. “One of the benefits of being a smaller company is that we can provide personalised support to each of our farms. For us it’s about working together to show the industry what’s possible,” he says. Te Ara Miraka award winners Wayne and Andrea Chamberlin, Chamberlin Trust, say they were proud to stand alongside the other three top farms on the winners’ podium. “We’ve been part of Miraka from the early days and connect with their vision of nurturing our world, which has increased in significance for us over time,” says Andrea. “We’re a family-run entity and we draw strength from that. This award pays tribute to the hard work of our son Tony and his wife Nic, who are our sharemilkers.

“Together we share a love for the land and the animals and take pride in rearing quality animals and producing quality milk. It’s been really special to celebrate tonight with other Miraka supply farmers,” says Andrea. Miraka’s farmers were rewarded for their efforts at the company’s annual suppliers’ dinner and awards night in Taupo recently. Over 260 people attended – including Miraka senior leadership and shareholders, supply farmers, and some of the dairy industry’s key change-makers. This year the event included a Treading Lightly Award for farms showing genuine leadership in management of potential freshwater contaminants. Winners came from a range of farm sizes, showing that it’s possible to minimise your impact regardless of production intensity. “Miraka’s carbon footprint is one of the lowest in world for any dairy processor,” says Grant Jackson, Miraka’s general manager of milk supply. “We see ourselves as caretakers of this land and the life within it, and work closely with our farmers, factory and supply chain team to reduce our impact and build resilience for the future,” he says. Golden Bay farmer Wayne Langford, founder and general manager of farmerfounded charity FeedOut, spoke at the awards night about Miraka’s support of the charity. “Miraka were the first dairy company to come on board. Our conversation with them was pretty easy – they signed up after the first phone call! In just six months Miraka farmers have donated over 20,000 litres of milk to families in need, which is incredible. “To me that demonstrates how Miraka’s values run right through their business,” he says.


DAIRY NEWS AUGUST 3, 2021

16 //  NEWS

Farming with a difference and loving it! CANTERBURY FARMERS Bruce and Susan

Turpie love doing things differently on their 500ha farm. They year-round milk 1,550 cows, mostly Holstein Friesian with a few Montbelliardes, and their nine-year old dairy business, Kolmar Dairies Ltd supplies Synlait. At the recent Synlait Dairy Honours Awards they picked up the ‘Doing Milk Differently Award’, which recognises farmers who demonstrate “Kiwi

ingenuity” for solving a problem and pursuing a new opportunity. The judges noted the Turpies’ successful and innovative approach to farming. Over the last six years, Bruce and his team moved towards calving four times a year to milk year-round. They have an intensive operation with two separate herds split between barn and paddock and rotated each 12-hour period. This system allows them to

“We don’t always take the easy path but we do things the way we want to do them and it works for us.” maximise feed and effectively get cows off paddock in winter, resulting in high production and strong pasture health and resilience. Additionally, with a herd of over 1,550 cows, Bruce and his team have achieved zero bobby calves, an incredible achievement, according to

the judges. This has involved the use of Wagyu beef genetics and set semen selection, meaning nonreplacement calves are able to be raised and sold into the beef industry. Another notable aspect of this operation is the high staff numbers. Bruce has 15 team members and

Bruce and Susan Turpie, Canterbury.

high staff retention. The judges noted that this can be attributed to an inclusive, positive culture. “Aspects such as staff housing in Methven ensure employees are a part of the community, and cross-training opportunities mean staff are further developed in skills beyond their core roles. “Kolmar Dairies Ltd is truly the epitome of what it means to Do Milk Differently.” Bruce Turpie told Dairy News that they were “pretty chuffed” with the award. “It’s good to get recognition for the work we’re doing. We do things differently. We have a big amount of winter milk. We don’t always take the easy path but we do things the way we want to do them and it works for us,” he says. Like most dairy farmers, the Turpies face challenges and like most farmers, labour shortages top the list. With the borders

closed, Bruce says they just can’t attract new juniors. “We have enough senior staff but it’s harder to get juniors. “In the past we’d get them from overseas and then they’d progress up from there, but we just can’t get the juniors here in New Zealand.” When it comes to staff management, Bruce believes farmers just have to be proactive. “And we try really hard to make sure staff are happy and want to stay with us.” Sustainability is also a priority for the Turpies. They have a Herd Home and 50% of the herd utilise it all year round. “It reduces our nitrate issues and means we can control it as much as possible,” says Bruce. The farm is part of Synlait’s ‘Lead With Pride’ initiative and meets some pretty stringent sustainability measures as a baseline.

JUST A BLIP SYNLAIT IS going through a challenging period but the Turpies have full confidence in the company. Bruce Turpie says they are very happy supplying milk to the listed milk processor. “They’ve been through some tough times recently but you can’t blame them for that,” he says. “They had a big expansion with liquid milk and Pokeno and maybe went a bit big, a bit quick but we’re all guilty of that as business owners sometimes. “And then Covid happened and there was a bit of pressure on a2, but they’ll come out the other side and we see it as just a one-year blip. They’ll be leaner and stronger for it.”


DAIRY NEWS AUGUST 3, 2021

AGRIBUSINESS  // 17

Kiwi company known for excellence in dairy Made in New Zealand is a feature that looks at the wealth of design and manufacturing ability we have in New Zealand, producing productive and cost-effective products for the agricultural sector. This week we take a closer look at Waikato Milking Systems, catching up with Jane Burton, head of global marketing. Q- When was the company founded, by whom and why (was it to solve a problem or market a product)? Our story began as far back as 1967 as a division of the Alex Harvey Industries plastics moulding company. By 1988, Carter Holt Harvey had bought the company, formed an agricultural division, then collaborated with the Ruakura Research Centre, developing products like the Ruakura Milk Harvester, that separated milk and air between the cow and the milk vat. By the late 1980’s the focus had shifted to the manufacture of rotary and loop-line milking systems. Waikato Milking Systems was launched in 1992, transitioned through a management buyout, before being acquired by its current owners of Tainui Group Holdings, Ngai Tahu Capital and Pioneer Capital in 2014. Q- Where are you located - is it single or multiple sites - and how many people are employed? Head office is based at Horotiu, Hamilton, with warehouses and offices in Australia, UK, Ireland,

China and USA. The business has around 100 employees based in New Zealand, with approximately 30 international employees and services global markets with 109 international dealers. Q- What are your key products and which markets do they serve? High performing milking solutions and dairy technology including rotary milking systems, herringbone and parallel systems, dairy automation, milk yield recording, cow identification, animal heat and health systems, sorting and animal management, dairy management systems and milk cooling. Q- Are your products unique and, if so, what are the four key benefits? If not, what are the four unique selling points? We are a NZ-based company, known for its excellence in the dairy sector, that supplies all the dairying markets/ regions around the world. Primarily, all our products are manufactured at our state-of-the-art manufacturing facility in Horotiu. We take pride in being at the forefront of new

dairy-related technology, while also ensuring that precise quality control is one of our guiding principles – a position we achieve by manufacturing in-house whenever possible. Q- Looking at an everevolving market, what changes have you made over the last few years, or what will you have to do in future? Today’s dairy farmers are hungry for data to monitor their herds more accurately, enabling them to make informed decisions on productivity, even down to individual mobs. Labour shortages means more farmers are looking for greater efficiencies, so saving labour units in the dairy allows other farm jobs to be carried out between milkings. More automation during the milking process has led to greater efficiency and more profitability within the operation. We have a strong focus on innovation through research and development, releasing new products that enable farmers to utilise data-driven technology to increase their

Businesses MADE IN NZ

A LOOK AT HOME-GROWN COMPANIES

Waikato Milking Systems head office in Horotiu, Hamilton.

All products are manufactured at Waikato Milking System’s state-of-the-art manufacturing facility in Horotiu.

efficiency, productivity, and profitability, while at the same time, protecting the environment. Our increased use of new technology has been recognised in the Technology Investment Network Annual Ag Tech Insights Report that looks at 200 companies in NZ. In 2020 we were ranked 42nd, but in the space of

one year, we jumped to 7th position. Q- What has been the company’s greatest success since its formation? The Centrus Composite Rotary Milking System is heralded as the most significant evolution in rotary platform design in 50 years. The Centrus platform is 75% lighter and stronger than con-

crete alternatives making them the choice of farmers across the spectrum of global dairying, from family-owned to intensive 24/7 operations. Q- Where do you see the company in the next three, five and ten years. What changes do you foresee to keep relevant and grow your business? We are continu-

ally looking at ways to improve on our high-performance milking solutions, to ensure maximum milk is harvested per hour, while also expanding into other rapidly growing dairy segments including sheep and goat milking. By continuing to grow our international business partnerships, leading the way with our technical knowledge and production supply chains, we can provide high performance milking systems and unique solutions, with low cost of ownership, to progressive farmers worldwide. We want to ensure we provide service excellence, mainly by growing our global network of dealers, working with people who are committed to delivering quality solutions and service.

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DAIRY NEWS AUGUST 3, 2021

18 //  OPINION RUMINATING

EDITORIAL

The right time for consultation?

MILKING IT... Capital structure woes IT SEEMS Fonterra’s revised preferred option for its new capital structure has fallen short of farmer expectations. Judging by the performance of Fonterra’s share price on the New Zealand Stock Exchange, farmers are still offloading their shares for fear of the prices crashing under a farmers-only trading market. Since the revised preferred option was unveiled on July 19, the share price has dropped 40c to $3/share. The share price touched an all-time of low of $2.88 six weeks ago and was heading into the same territory last week.

Cheesed off FONTERRA’S PLAN to trademark Maori words used for its Kapiti cheese range is cheesing off some in Maoridom. Stuff reports that the chairman of National Maori Authority, Matthew Tukaki, claims that a corporate does not own the use of Maori words or phrases. However, Fonterra has defended its move, saying the trademark applications are “to ensure the correct use of te reo on our Kapitibranded products” and will not impinge on any wider use of the words. But Tukaki is not convinced, and has vowed to block the applications. “Fonterra needs to stick to milking cows instead of milking Maori – and that includes laying claim to Maori words and phrases.”

Nothing good about almond milk ALMOND MILK, although positioned as an ecofriendly alternative to cow’s milk, rightly gets a lot of flak for being bad for the environment. Almond trees are notorious water guzzlers—bad news for drought-stricken California, the source of most of these thirsty nuts. What’s more, they’re often treated with pesticides that threaten honeybee health. According to Mintel, an international market intelligence agency, almond milk accounted for 64% of the non-dairy milk market share in the US, while soy and coconut milk accounted for 13% and 12% respectively. While it’s still touted as a more sustainable choice than dairy milk, the beloved beverage’s footprint is becoming increasingly detrimental to the perpetually parched state of California. When will the greenies wake up to this fact?

Head Office: Top Floor, 29 Northcroft St, Takapuna, Auckland 0622 Phone 09-307 0399. Postal Address: Published by: Printed by: Contacts: Advertising material: Rural News on-line: Subscriptions:

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ABC audited circulation 26,510 as at 31/3/2019

Time to mask cows?

ISSN 1175-463X

THIS IS the season of masks. But this mask isn’t for Covid—it helps reduce methane emissions. While some start-ups try to tackle the problem with plant-based burgers designed to convert carnivores, or seaweed supplements that make cows less gassy, one company is trying to capture emissions directly with a mask-like device that sits above a cow’s nose. “Because of our background in livestock farming, we knew that cattle exhale most of the methane through their mouth and nostrils, so the obvious approach was to work on a device that would capture these emissions at the source,” says Francisco Norris, CEO of Zelp, the UK-based start-up. A sensor on the device detects methane as the cow or bull breathes, and when levels of the gas pass a certain threshold, the technology draws the methane into the mask to a mechanism that oxidizes the gas, turning it into lesspotent CO2 and water vapor.

FARMERS SHOULD be relieved that the Government is consulting on the changes it has made on the freshwater farm plans. They have after all admitted they or their officials made some stupid mistakes around the issue of stock exclusion and the original slope maps, which would have seen beef farmers just about fencing streams up to the snowline on their farms. To be fair, the changes that the Government has made at least show that common sense is starting to come to the fore. But in a world where there is general distrust been farmers and government, the question remains how this will all play out. For example, will the ‘greenies’ cry foul that the changes are too soft on farmers and will the Government hold the line or take more logical advice from the rural community? It is evident from what DairyNZ and Beef+Lamb NZ are saying publicly that they are concerned farmers are not getting credit for the good work being done on farm. DairyNZ wants to see the framework acknowledge work already done by farmers and ensure it doesn’t add time pressures on-farm or complications within regional plans. DairyNZ strategy and investment leader Dr David Burger notes that dairy farmers are committed to improving water quality. A lot of work is already underway on farms, including 3,400 existing Farm Environment Plans. “But doubling up on work and compounding that with short timeframes will put too much pressure on farmers. Recognising existing planning is crucial because farmers are already overwhelmed with too many regulations, coming in too hard and fast,” Burger warns. There are many journalists in the so-called ‘lamestream’ media who simply don’t get or don’t want to acknowledge this either, judging by some of the grossly inaccurate opinion pieces some of them write. But what has not been highlighted is the fact that the consultation period is during the busy weeks of July to early September. Have the Wellington-based policy wonks never heard of calving and lambing? Do they know that spring is the busiest time of the year for farmers where 14 hour days are the norm? This timing of the consultation period seriously compromises farmers’ ability to engage, and again shows how disconnected Wellington is from rural New Zealand. Arguably there is never a good time for consultation, but picking the busiest time of the year to engage with farmers displays either ignorance or, worse, bad faith.

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

WAIKATO SALES REPRESENTATIVE: Lisa Wise .......................................................Ph 027-369 9218 lisaw@ruralnews.co.nz WELLINGTON SALES REPRESENTATIVE: Ron Mackay ................................................... Ph 021-453 914 ronm@ruralnews.co.nz


DAIRY NEWS AUGUST 3, 2021

OPINION  // 19

Protecting water in winter BALA TIKKISETTY

WET AND wild winter

weather can place increased pressure on the banks of waterways, increasing the risk of them being eroded. This can harm water quality and disrupt ecosystems that support biodiversity and water quality. Some land management practices related to land uses like farming, forestry, roading and horticulture could cause soil erosion and/or a buildup of contaminants such as nitrogen, phosphorus, sediment and pathogens, which are washed into watercourses during heavy rain. The practices include stock wading in water, poor cowshed effluent treatment, overgrazing, inappropriate fertiliser

application, pugging and poor runoff control on cultivated land, and poor management of areas beside waterways. The way farm tracks are made and managed can have the potential to contribute to the contamination of waterbodies. Water-borne pathogens like giardia and cryptosporidium can lead to serious human health problems, while nitrates and phosphates can potentially create human, animal and environmental health problems. Good management of the banks of waterways, in particular, can help avoid problems. Wide buffer zones between banks and other activities can reduce problems by stabilising the banks and providing a filter for contaminants washing off the land. Careful selection of

Careful selection of the mix of plant species planted within riparian areas is important.

the mix of plant species planted within riparian areas is important. Shrubs and trees with extensive root systems, which tolerate moist soil conditions and frequent silt deposits, are ideal for stream bank erosion control. They physically hold the stream banks together and some tree roots

also protect the streambed, limiting the scouring effect of running water. Streamside vegetation provides shade which cools the water, improves its dissolved oxygen levels, helps aquatic life and reduces the risk of algal blooms. Aquatic invertebrates exhibit a wide range of thermal tolerances. Some

grazers (mayflies) are more temperature sensitive than others (snails). Many insects are killed by temperatures only a little greater than 20oC, and snails can survive at about 30oC. Algae are also temperature sensitive, but most filamentous forms can continue growing at high rates up to at least 25oC. During the

summer, water temperatures in pasture streams often exceed 20oC, and this could be the reason that many insect species are absent from pasture streams.Pair the loss of these species with an increase in warm, calm weather events that are more common in summer, it is likely that these factors are promoting the algal blooms which can occur around the region. Suitable plant species beside waterways also provide cover for spawning fish, and food and habitat for nesting and juvenile birds. Such plantings help aquatic invertebrates become numerous, providing a better food supply for fish and reducing algae. Streamside trees can link areas of native vegetation together,

extending habitat for native birds. Besides these sorts of environmental benefits, riparian planting can also help a farm’s economic bottom line. Well-designed riparian fencing can be used to improve subdivision, help with mustering, and protect animals from drowning or getting stuck in wet areas. The shelter and shade riparian plantings provide can help with animal production and health. Improved milk grades are documented where dairy sheds no longer draw water from contaminated streams. • Bala Tikkisetty is a sustainable agriculture advisor technical at Waikato Regional Council. Contact him on 0800 800401 or email bala.tikkisetty@ waikatoregion.govt.nz

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DAIRY NEWS AUGUST 3, 2021

20 //  MANAGEMENT

Composting barn helps NIGEL MALTHUS

INSTALLING A com-

posting barn has brought big changes to the way Mid-Canterbury dairy farmer Graeme Wall runs his operation. Although it wasn’t his original motive, he’s found the barn makes it practical and profitable to milk year-round and he has taken on a winter milk-supply contract. Wall, who has had a SmartShelter barn for about seven seasons, recently hosted an open day at his farm to showcase its use. It was one of a series throughout the country organised by the Wiri-based company, which produces a range of utility structures for farming and other industries.

At 20m wide and 140m long, the barn is typical for a SmartShelters structure. A Canadian design, it consists of a rubberised fabric roof over galvanised steel framing with open ends and sides, and concrete feeding pads on each side. About 500mm of woodchip litter lies over a shaped gravel bed. Drainage coils at the bottom fill about one holding tank a year, which is spread on the paddocks in summer. The company says that by providing animals with clean, dry bedding, composting barns help to improve herd health, and open up the possibility and enhance the productivity of winter milking. In a composting barn, an aerobic system of ‘good bugs’ composts the effluent, keeping the bed-

GONE THROUGH THE ROOF

Animal welfare and comfort were among the first reasons for dairy farmer Graham Wall to install a composting cow barn on his Mayfield, MidCanterbury property.

ding dry and eventually producing a nutrient-rich fertiliser. Wall explains that they never set out to wintermilk when they built the barn. He first visited Canada to see how barns were

used there. Some had concrete floors but he opted for a soft-bedding barn because his original concerns were cow comfort and survivability. Because they were running a high-quality genetics herd using sexed

semen to get the best possible heifers, they wanted maximum survival rates. Then when induction was stopped Wall found the empty rate went up. He didn’t want to cull good cows so keeping them milking meant he

BRETT COTTLE says composting barns have been used in the US for 20 or 30 years and the market in New Zealand has “just gone through the roof” in last five to seven years. SmartShelters now builds about 30 a year and they are especially popular as wintering barns in Southland. “There’d be at least a hundred farms around New Zealand with our barns, maybe 150,” he said. Cottle concedes there are competitors with a lower capital cost but with lower roofs and less ventilation, so they heat up and may become unusable in Summer. “We’ve got the big, clear span so it ventilates very well for the bedding and then it is 10 degrees cooler in the Summer. So that’s the difference.” Cottle says the size of Wall’s barn is good for about 280 to 300 cows for 24/7 full winter use, or possibly up to 400 if used for feeding and standing-off through a summer season. The structure carries a 12-year warranty. The rubberised fabric roof is expected to last about 15 years, and replacement would be about 15% of the initial cost.

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DAIRY NEWS AUGUST 3, 2021

MANAGEMENT  // 21

year-round milking

Contented cows in Graham Wall’s winter-milking herd rest in his SmartShelters composting barn.

could “keep his options open”. Milking the empties through for a year, he discovered it worked well keeping them in the barn. Taking on a winter milking contract was then the next logical step. It’s been a steep learning curve, particularly

with the May storm that dumped 300mm of rain in the area and caused widespread flooding throughout Mid-Canterbury. The barn became very muddy because the cows were kept in for about three weeks to keep them off sodden paddocks, but the barn has since recov-

ered with proper ripping. Wall has realised that until recently he was not getting the full composting advantage, partly because he was ripping the litter with a light shallow rake and not getting down to the lower layers. He now uses a contractor with a deeper heavy-

duty rake and is looking to purchase his own. Wall says that at the moment the barn is carrying true winter milkers that have just calved, as well as some carryover empties that are still milking. He has dropped the winter numbers back and is successfully getting

more production with fewer cows. They are free to wander in and out to a nearby pasture. He says the “beauty” of the system was that barn feeding maintains production so it doesn’t vary too much through winter. He’s about to rotate the herd and bring in the spring calvers instead. “They’ll be fed once a day and also be free to walk in and out. Most of them prefer to come inside to have their calves, which makes picking up the calves an easy process.” Wall says the two advantages it brings are being able to recycle some cows for winter milking, and improved survivability for the spring calvers. “We’re talking 15, 20 deaths less. You are not

saying a lot, but we only calve 500 in the spring, so it’s quite substantial.” SmartShelter sales consultant Brett Cottle told the open day that the composting process gets the litter to about 50 degrees as the bugs feed on the woodchips and effluent. The heat evaporates the moisture so the cows don’t get wet bedding. The result is a valuable compost full of nutrients that can be spread on pasture or even sold. Cottle said one farmer in the North Island has an arrangement with a supplier to take the compost in a straight exchange for fresh litter. A key is “ripping” the litter regularly to keep it mixed. Cottle says most farmers rip the compost once a day, some twice. It

depends on several factors - for example, cows getting a lot of pasture feed would produce wetter excreta. “We would say, just do a trial.” He says capturing the effluent is “a big, big plus for your Overseer numbers.” Wall runs a total herd of about 800, but with about 300 in the barn in any season. “Not being out in the elements, we’re capturing all those nutrients and all that nitrate in here, so it’s lowering our footprint outside,” He said. “At the moment we’re a hundred cows less than we were this time last year, but producing more milk. So we’ve had to learn some stuff.” @dairy_news facebook.com/dairynews

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DAIRY NEWS AUGUST 3, 2021

22 //  MANAGEMENT

‘No downsides to OAD milking’ MATAMATA FARMER

Cam Houghton is an enthusiastic once a day milking advocate and is always looking to add to his farming knowledge, partly through attending SMASH events. He has been farming at the base of the Kaimais for his whole career, and is currently the owner of the 150ha family farm, where he milks 400 kiwicross cows, producing 375 kgMS/cow. “I started very young,” says Houghton. “An Auckland doctor bought the farm across the road in 1982. We rang him and said do you want a sharemilker? He said ‘Yeah, I do’, so I went across there and share-

milked. I had just turned 19, I owned ten cows and a Honda 500. I had to buy a herd in the middle of July, so I bought some of Dad’s old cows, and then went to the Morrinsville sale, bought whatever we could find, and milked 125 cows. “I did that for a couple of years till that farm sold. I got in young, but I had Dad as a consultant and helper. He reared all my calves for me. I used to bring them in, he would feed them all in his shed, and once they were taught, they would come back down to my place. “Lynne and I purchased the family farm off Mum in 1989, after Dad died. Back then it was

78ha, I’ve grown it a bit bigger.” There are a number of factors driving Houghton’s enthusiasm for OAD. “In my experience there are no downsides to it. I’ve been doing it full season for five years. Prior to that I had all the young stock on OAD for about 13 years. With OAD I think I can get another 10 years out of myself. I enjoy milking, it doesn’t worry me, it is just the afternoons I don’t like. Once you start OAD it is like this big pressure has come off you; you are finished in the morning and that’s it. If you haven’t got a feedpad, why are you milking twice a day?

I used to have two labour units and now I only have one. I dropped a unit and rented the house out. Financially it is so much better.” Houghton gains a lot out of attending SMASH events. “The SMASH events are bigger, well run, and a lot more in-depth on a subject. When you go to a discussion group, it is more for local farmers to talk about whatever issues they are having, then you have a quick look at the cows, a chat and a sausage, and head off. The SMASH ones, you are really trying to learn something about whatever the host farmers are doing.”

Matamata farmer Cam Houghton has been milking once-a-day full season for five years.

He attended a recent event which focused on mastitis, and how the hosts consistently maintain their herd’s gradefree status. “I got some really positive stuff out of that one about why they have a lower cell count than myself. One of the keys to their success was that they dry-cowed and teat

sealed every cow on the farm. “I think some people are shy to walk into an event on their own. The way I think about it is, if you go to an event and learn one thing, quite often that thing will make you a better farmer. “There are a lot of practical ideas you can pick up, like at that low

cell count event, teat spraying the colostrum cows before they strip them, and teat spraying their hands regularly – that sort of idea is just something you pick up and then you save yourself a couple of cases of mastitis. You can always learn something.” @dairy_news facebook.com/dairynews

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DAIRY NEWS AUGUST 3, 2021

ANIMAL HEALTH  // 23

On track to eradicate TB WHEN YOU hear the

word epidemiologist these days you might think of the experts who are figuring out how to tackle Covid-19. Essentially, epidemiology is the study of disease outbreaks and plays a big part in identifying the source of an outbreak, as well as monitoring and tracking the disease. Lead veterinary epidemiologist Dallas New is part of the Ospri team that works on trying to eradicate TB livestock by 2026. She likens her work to that of an investigator or disease detective. Like Covid-19 and the need to track and trace human movements, bovine TB is similar, says Dallas. “With livestock, it’s important to mark animal movements so we can track and trace the disease and make sure it doesn’t spread that way. Covid-19 has opened up a whole different language that now makes sense to people – most people now know why ‘movement control’ is so important. “One reason we care about TB is because it causes disease in people. It’s a zoonotic disease, which means it’s a type of disease that passes from an animal to a human. “We get sick if we drink milk from animals with TB, so we need to make sure we’re controlling it. We’ve managed that risk with pasteurisation, but it still remains a trade issue and we want our animals to be happy and healthy.”

Dallas believes New Zealand is on track for eradicating the disease from livestock, but possums that carry the disease present a unique challenge. “New Zealand is a really interesting challenge for TB. In the 1800’s, both cattle and possums were imported to New Zealand. Some cattle were infected with TB, and when the number of possums exploded, bovine TB jumped into possums. This hasn’t happened anywhere else, so that’s what makes the TB

to access the land where they preside. In the 1990s, there were close to 1,700 infected herds across New Zealand and there was so much area to cover. If we had trouble accessing one area, we had the option to go somewhere else. Now that we’re down to the remaining 30 to 40 infected herds, we need access to areas that are tougher to reach.” While it’s challenging at times, Dallas says the eradication programme has made great strides in the last 30 years. “My mentor is very

TB is a zoonotic disease, which means it’s a type of disease that passes from an animal to a human.

Lead veterinary epidemiologist Dallas New is part of the Ospri team that works on trying to eradicate TB livestock by 2026.

situation so tricky, we have to get rid of the possums that are spreading the TB. “In order to kill the possums, Ospri needs

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well-known in the Irish and Australian TB eradication programmes and he’s been consulting on TB since the 1990s. He never thought New Zea-

land would get to where we are now.” Before arriving in New Zealand in 2019, Dallas was a field veterinary epidemiolo-

gist in her home country Canada. Her training and study in Canada saw her travel to the Far North of the country to take on anthrax in bison in north-

ern Ontario and Avian Flu in British Columbia. Those experiences set her up for success in her new role working on TB in New Zealand. Following a stint worked with DairyNZ as a policy advisor on biosecurity, she began her current role at Ospri in January 2021. “I was super stoked when this job came up because it’s my dream job. My background is in ‘One Health’ – that’s problems that touch on animals, humans and the environment and wildlife – and TB is exactly that, it’s a disease in cows, but to manage it you have to go into wildlife and kill possums to get rid of it, so it’s a perfect ‘One Health’ example. “Most problems in the world are way more interconnected than we realise. So, when you think of something in the ‘One Health’ context, it

makes you step outside your own expertise, and consider other factors.” Her role as lead epidemiologist means she looks at the disease from a national level and provides guidance for anything that might be out of the ordinary. “We develop protocols for what testing the vets around the country should do, what movements animals can or can’t do and other guidelines in the programme. We help to analyse tricky whole genome sequencing, which gives us clues pointing to the source of an infection. We organise research trials to make sure our tests are performing exactly how they should be. Our vets in the regions are at the coal face of bovine TB, and the vet epi team is there to support them and strengthen our eradication programme.” • Article by Ospri NZ

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DAIRY NEWS AUGUST 3, 2021

24 //  ANIMAL HEALTH

M.bovis eradication plan on track - report NEW ZEALAND is on

track to eradicate the disease Mycoplasma bovis (M. bovis). That’s the view of the independent Technical

Advisory Group (TAG) which has been looking at New Zealand’s response to the outbreak. “The TAG report acknowledges the

improvements to our work, which aim to lessen the impact on affected farmers, their whānau, workers and rural communities,” says M.

bovis programme director Stuart Anderson. “I know that farmers who have been impacted have found the process challenging. Their con-

tribution has not gone unnoticed or unappreciated, and four years on since the disease was first detected, immense progress has been made

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Mycloplasma bovis programme director Stuart Anderson.

towards eradication. We now have just three active confirmed infected farms, compared to 34 farms two years ago.” The group found: There have been notable improvements in the timeliness of tracing and casing of herds and management of confirmed infected herds since 2019 Beef Surveillance and Bulk Tank Milk screening are working well There have been improvements in the recording of animal movements by farmers Thanks to operational improvements, the Canterbury cluster identified last spring was rapidly found and controlled Genomic information continues to support that bovis was likely introduced around late 2015 via a single source. The TAG made 14 recommendations for the programme, all of which are accepted. These include advice regarding monitoring of beef herds and non-milking dairy cows and what is required to move from delimiting to the provisional freedom of infection phase over the next year. The TAG found that improvements to the programme meant it was in a good position to deal with any further infected farms identified, which was likely given some farms’ previously poor recording of cattle movements and the likelihood that unidentified small pockets of infection may remain to be found. Anderson said the TAG found the recent Canterbury cluster could most

likely be explained by unrecorded animal movements, and they recommended the likelihood that the Five Star Feedlot could be a possible source of infection be examined closely. “Since the TAG first considered information in December, we have looked into this property closely, tested animals and traced movements,” he said. “In the programme’s view there are more likely sources from within the cluster of infected farms itself, such as animal movements, shared grazing, insecure boundaries between neighbouring properties and sharing of dairy platforms. “However, out of an abundance of caution, and in coordination with the feedlot’s owners, ANZCO, we’ve placed a buffer area around the feedlot that will remain free of cattle until it is cleared of M. bovis. This is on top of the already strict biosecurity measures that are in place and being adhered to.” DairyNZ chief executive Tim Mackle said eradicating M. bovis has been a key goal for New Zealand and it’s pleasing to see the commitment by farmers is delivering. “Managing M. bovis has been a significant challenge for our farmers and presented an upheaval for many who made sacrifices for the greater good,” says Mackle. “Keep up the good work – record all cattle movements, ensure good biosecurity practice is in place on your farm and prevent any mixing of stock.”


DAIRY NEWS AUGUST 3, 2021

MACHINERY & PRODUCTS  // 25

Bale production specialists Vermeer says its new autonomous bale collector, Bale Hawk will save time and labour by removing the manual task of collecting bales from the paddock.

Black Hawk has landed!

Pottinger says it has substantial order books, after a difficult 16-month period brought about by the pandemic.

POTTINGER ON A ROLL DESPITE COVID, the need for the world to eat has kept farmers busy, meaning that they continue to buy new kit and machinery – so manufacturers are also busy. As an example, Austrian company Pöttinger is signaling that it will have its best year ever, expecting to end its 2020/21 financial year with a €395m turnover (NZ$673m). This is a significant increase on the €366m of 2019/2020 and beats the previous best ever figure of €382m in 2018/2019. Speaking at a virtual press launch of the new Jumbo 7000 series forage wagons, spokesman Gregor Dietachmayr, confirmed Pöttinger is very busy, with substantial order books, after a difficult 16-month period brought about by the pandemic. “We had to be careful, even reducing our manufacturing output slightly to reduce the risk of creating too-high

machine inventories, should the demand have shrunk,” said Dietachmayr. “We were surprised to find the demand for new machines actually increased.” While the domestic market of Austria accounts for 10% of sales, exports of the remaining 90% sees Germany and France as the largest markets at 19% and 15% respectively. The product mix is built around grassland machinery at 46% of volume, tillage gear at 16%, balers and loader wagons at 15%, with drills making up 9% of the total. During the year, the company opened its 17th sales subsidiary in Poland; a strategy started in France in 1999 that was followed by Switzerland (2003), Italy (2004), Canada (2005), Ukraine (2007), Australia, Slovakia and USA (2008), Russia (2010), the UK, Belgium and Ireland (2012) and Scandinavia and China (2016). www.originag.co.nz

MARK DANIEL markd@ruralnews.co.nz

WE’VE GOT used to

many forms of tech in agriculture, such as global positioning systems (GPS), auto steering and variable rate application of fertilisers and sprays. Now it looks like the mundane task of moving bales is about to see an upgrade. Bale production specialists Vermeer has recently shown where they see the future heading, with a look at their autonomous bale collector, Bale Hawk, that is said to save time and labour by removing the manual task of collecting bales from the paddock. The patent-pending system uses sensors to detect its position in the paddock, then plots the most effective route to collect up to three bales and transport them to a

central location for wrapping or stacking. Powered by a Deutz powerplant, rubber tracks are the used to move the machine, while similar tracks lift and transport the bales onto the

machine. It is said to weigh less than three tonnes, and the manufacturer also suggests there are benefits of reduced compaction, both in terms of the machine’s footprint, but also in the opti-

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DAIRY NEWS AUGUST 3, 2021

26 //  MACHINERY & PRODUCTS

Film binding balers prove their worth MARK DANIEL markd@ruralnews.co.nz

A SWITCH to KUHN

film binding is paying off for one South Waikato baling contractor, Ireland Contracting, who bought two FBP 3135 balers last spring, attracted to the KUHN FBP’s bale quality (shape and density) and reliability of the film binding system. Producing around 20,000 bales each year, with 17,000 pushed out by the FPB duo in the last 9 months, the team wraps most bales with the 3D wrapping system, applying wrap more evenly across the bale and around the bale edges to prevent damage during cartage and handling. Owner Tony Ire-

land says there has been a reduction in damaged bales needing attention and customer complaints with the change to the FBPs. He also notes that the film binding system is easier to load with the 750mm film rolls, rather than the heavier fullwidth rolls, and makes delivering plastic out to jobs easier with only one product to worry about. The bales are operated behind Fendt tractors using their own in-cab ISOBUS terminals, and operators say the ISOBUS makes it easy for them to switch between tractors without the added complication of monitors and looms.  The Ireland Contracting team also like the rotor drive disengagement feature, making

Owner Tony Ireland says there has been a reduction in damaged bales needing attention and customer complaints.

blockages easy to manage if the intake chokes and the chamber is nearly full. The system allows the operator to disengage the intake system, while maintaining the drive to the bale chamber, allowing the bale to be tied and ejected before re-engaging the intake and allowing the blockage to pass into

the now empty chamber. Independent tests comparing the systems have found film-on-film has less potential for the surface spoil that can often be found between layers of net. Despite initial customer scepticism, there is little cost difference, if any, between filmon-film and net and film,

especially when bale quality is factored in. “The costs are comparable, if not slightly cheaper than net film,” KUHN South Island sales manager Justin Williams says. Williams notes that film binding is increasingly preferred over traditional net binding for silage bales as it pro-

vides tighter wrapped bales with better protection around the circumference. The additional oxygen barrier is also said to guarantee better silage quality, an easier bale to unwrap, even in frost and the removal of the need to separate net or film wraps for recycling. This film binding

system uses two regular 750mm stretch-film rolls, which offers several advantages over competitive film binding systems that are using wide mantle films. This includes a higher prestretch ratio compared to wide film binding systems, reducing costs by up to 37% and extending film changing intervals reels by 30%. Film and net binding are two separate systems on all KUHN baler-wrappers, enabling the operator to carry both film and net at the same time. Switching between the two is quick and easy as there is no need to change rolls and no tools are required. www.kuhn.co.nz @dairy_news facebook.com/dairynews

JD link upgraded for the future JOHN DEERE has announced that

its JDLink system will be available to customers at no ongoing cost. It says this will give customers “access to digital services that streamline the collection of agronomic and machine data to power efficient, profitable and environmentally sustainable primary production”. John Deere says its decision to remove ongoing costs to the secure and continuous data collection technology sets a new precedent in the agriculture industry and that it is the first manufacturer in the New Zealand farm machinery sector to take this step. John Deere ANZ precision agriculture manager Benji Blevin says the announcement means JDLink, which

facilitates automatic data transfer from a machine, will be put into the hands of more customers to give them greater insight into their machinery

and their business. “Connectivity is foundational to agriculture and farmers understand access to data and information about

their equipment, farm and paddocks is crucial to unlocking productivity and efficiency gains.” Blevin says JDLink connectivity also granted full access to the remote backup support service, John Deere Connected Support, that includes Remote Display Access which allows a dealer to view the in-cab display and offer advice or resolve problems, saving time and cost to farm businesses. Introduced to the NZ market in 2011, until now, JD dealers had managed their customers’ connection to the subscription service. However, farmers will now have full control to connect individual machines, their fleet or future purchases through John Deere Operations Center. Blevin said he was excited to see

more farmers begin or expand their precision agriculture journey through JDLink. “At the end of the season, if you can’t measure it, you can’t manage it,” he said. “Having all machines connected through JDLink allows equipment to capture information at every opportunity, and every piece of data collected can be used for analysis to make sure better decisions are made.” Farmers with older machines that don’t have a 3G or 4G JDLink MTG (modem), needed for JDLink connectivity, can still take advantage of this system upgrade by purchasing and installing a 3G or 4G MTG. Once activated, there is no additional cost or monthly service charges. - Mark Daniel

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DAIRY NEWS AUGUST 3, 2021

MACHINERY & PRODUCTS  // 27

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Ian Lockwood and son Kyle with the Arcusin MultiPack D14 Bale Packer.

Bale packer, doubles output, eases labour woes MARK DANIEL markd@ruralnews.co.nz

IAN AND Megan Lockwood, trad-

ing as IJ and MA Lockwood, operate a unique contracting business over a 20km radius from their Hunua, South Auckland base. Having been down the traditional share-milking route, they set up a business in 2017, to concentrate on producing high quality hay in small bale format, servicing the horse breeding rearing and feed supply outlets in the Auckland area. During the 2020 season the business produced around 41,500 bales, using a pair of MF1840 in-line balers, of which around 12,000 bales are stored in barns at the home premises at any one time, for autumn/ winter supply. Like many areas of agriculture, the operation relied heavily on labour, over the years becoming a real problem trying to attract workers to handle bales as production increased. Ian says, “we know that the work was hard and physical, but we got to a point when we couldn’t be sure workers would turn up, as we weren’t even get responses to job advertisements, so we had to do something about it.” ‘Doing something about it’ resulted in the arrival of a European-built, Arcusin Multi-Pack D14

Bale Packer that, since landing at the property, has gone on to revolutionise the business, helping shift around 15,000 bales during the second part of the season. During that time, it doubled the businesses’ daily output, resulting in 450 bales per hour being packed, transported and stacked in the storage barns. As Ian points out, “we work hard to cut hay at the right growth stage, get it dried and baled in peak condition, but getting it off the paddock was our weak link. We can now get it moved and stored safely and quickly, before the arrival of any rain, which is a huge bonus for us.” Looking at the D14 in more detail, a substantial chassis incorporates collection, conveying and stacking elements, controlled by the machine’s own on-board hydraulic system. Comfortably pulled with a 100hp tractor, the right-side bale chute with flexible guide bars bring the bale into the machine, using an exclusive chain collector that turns the bale 90 degrees before entering the stacking module. Here, pairs on bales are lifted to create to 4, 5, 6 or 7 layers to create 8, 10, 12 or 14 bale packages. Designed to be used in fully automated or manual mode, after each block of bales is assembled, a Rasspe knotter system wraps three or four HD

twines around each pack, before lowering the bundle gently back to the ground. Weighing in at around 2900kg and operating with a 2100mm wheel width, Lockwood reports that the machine is very stable on all types of terrain, particularly on the hills or sidling land that is common in the area. With the Lockwood operation, bale packs are handled using an Avant compact handler, supplied by the couples’ son Kyle – who runs a separate contracting operation – moving eight packs (112 bales) at a time by trailer for loading into the barn. During the closed season, bale packs are removed from the barn and loaded on pallets and delivered to customers, who can handle each pack quickly with a fork-lift, loader or break them down into individual bales. Describing the significant investment as being very successful, Ian Lockwood comments, “the Arcusin has effectively doubled our daily outputs, by which I mean, we have twice as much high-quality hay stored in the shed at the end of each day. The machine has been faultless, just requiring some routine greasing and replenishment of the twine. Indeed, it has given us so much confidence in terms of output that in the future we are also considering baleage as part of our offering”.

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BACK UP.

GOOD CALL. At FMG, we know that more than 10% of our milk claims are as a result of power loss. It’s this kind of specialised rural knowledge that allows us to pass on valuable advice to farmers to help manage risks. Like making sure you always have a back-up generator on a dairy farm. At the end of the day, if we can help you avoid loss, it reduces stress, lost production and downtime. So why not get in touch with FMG to see how we can help you make some good calls on your farm. Call us on 0800 366 466, or go to fmg.co.nz

We’re here for the good of the country. FMG0915DNFP_B


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