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EXPORTING INTO THE FUTUREWhere are we heading?

Dairy FocusAUGUST, 2015

2 Farming www.guardianonline.co.nz2 Dairy Focus www.guardianonline.co.nz

Ian Proudfoot from KPMG talks about the future 3

Trade minister Tim Groser talks dairy export markets 7

GLOBAL FOCUS: United Kingdom dairying meltdown 10

KPMG’s Maurice Myers on diversifying markets 14

International dairying news 16

ANZ agri-report – what it all means for 2015/16 18

New Zealand dairy news briefs 21

Around the traps – social photos 26

CONTACTSWe appreciate your feedback.

EditorEmail your comments to [email protected] or phone 03 307 7971.

Advertising Email [email protected] or phone 03 307 7936.

PostAshburton Guardian, PO Box 77, Ashburton.

What we do have is innovative visionaries who now need to push us on and change our older ingrained farming business philosophies“

COMMENT FROM EDITORINDEX

This issue of Dairy Focus is about the future – and in the current climate it is sorely needed.

The pain you are feeling at the moment will pass.

The financial climate will stabilise, milk powder will move again, but we have to be ready for the scariest, yet most promising, ride into an agricultural nirvana.

What might our markets look like – indeed our products look like in 2050? And are we doing enough to get ourselves positioned where we need to be?

Ian Proudfoot from KPMG says no. He travels the world watching and reporting.

His favourite word at the moment is “disruptor” – and that’s what we need to be in any market in the future – the disruptor.

Forget milk powder ... it will still be a sizeable market but the future will be about fresh milk (not UHF).

Chinese consumers don’t have the water resource we have.

If a consumer (and more and more of them are becoming wealthier) can choose between freshly chilled milk that came off a Mid Canterbury dairy farm 24 hours prior against a tin of powder you can bet your dairy future on the fact they’ll go for the former.

With a little vision, and sorely needed agricultural leadership New Zealand could be well placed to fit itself into a niche.

Selling our story may get refined a little on the way and may-be in some cases could be more about selling an Australasian story and combining with our cousins across the ditch.

For all this to happen farmers will

have to steer away from being risk adverse.

They’ll have to push their co-operatives and take chances.

In short they will have to willingly spend money on the way forward.

If they don’t they risk being left behind – a reality some commentators believe has already happened.

Commodity prices come and go but our story does not. There are many ways we can add value to our product to ensure that we’re not just some tiny colonial drop in the proverbial milk bucket.

We will never have scale and should never go down the track of attempting to reach enlarged heights based on production volume.

What we do have is innovative visionaries who now need to push us on and change our older ingrained farming business philosophies.

Now, more than ever is a time to take risks, to get out of our comfort zone, which frankly hasn’t been that damn comfortable of late.

If we do that the GDT becomes a relic of the past and we ensure not just our longevity but our sustainability as well.

Nadine Porter

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Analyst’s formula for the futureIn just 30 minutes Ian Proudfoot presents his formula for the future of agriculture and it’s not a plan for the faint-hearted – or in this case, the conservative farmer going about his business.

The KPMG head of agri-business immerses himself on a daily basis with international trends, consumer foibles and the reality of farming in a global environment.

Yet his messages are clear and concise and the warning all too consistent with what the international market has been telling us of late – stay still and get stuck, but risk and you may be rewarded.

The Scottish-born analyst has made a career out of deciphering what he sees and spends much of his time talking to agricultural audiences that know New Zealand may be just one auction away from being irrelevant when it comes to commodities.

continued over page

KPMG head of agri-business Ian Proudfoot says getting a free-trade deal with India post TPP is vital. PHOTO AMANDA KONYN 060815-AK-041

Nadine Porter

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What New Zealand exports could look like in 2035.

From P3And therein lies the

problem – our all-conquering assassination attempts on a single market. Take China for instance. Mr Proudfoot has re-iterated over the years the necessity to have a plan B, a plan C and the dreaded plan D in case of a situation much like farmers face currently.

“Whether it’s Indonesia, Brazil or the United States – we’ve got to have all those markets and I think the companies that are really showing good growth haven’t been fixated on China ... they’ve made sure they maintained a balance on the portfolio of markets they are trying to grow.”

While all roads have led to the Great Wall of late, Mr Proudfoot has been more vocal on using the Chinese as co-investors to get to where we want. Doing it on our own remains complex and costly.

In a city of 22 million people like Shanghai, the cost of building a brand can be phenomenal, he says. Co-investing, however, gives us the chance to leverage off someone else’s brand.

“It also means that we bring the best of what we do – including exceptional production, a very effective supply chain and the whole back story that is New Zealand – but we leverage that on to someone else’s infrastructure.”

Questions remain, he says, on whether co-investing maximises value with intense discussions ongoing regarding having a Kiwi mark on products.

So do we need to get past the clean green 100 per cent brand our generation has grown up with?

To Mr Proudfoot the story remains important and should be elaborated on.

“Particularly utilising the deep Maori stories is important – but our story has to be more than just mountains, rivers and lakes.

“It’s also got to be about safety, world class innovation,

health benefits that are unique and verified. If you can build all that into a story and if you’ve got a licensing partner to build that brand and invest the capital the potential is great.”

When it comes down to it we simply don’t have the global presence we think we have, he said. “New Zealand doesn’t feature very highly on the agendas of most people. We are very small and now in this global food system trying to feed seven and a half billion people ... the 40 million we can feed is irrelevant.”

Our size dictates the future will not be about commodities but instead about “the sliver” in people’s diets that makes them aspirational.

In short we need to feed 5 per cent of the diet of 800 million people.

“We are looking for that part of their diet that helps them to

say something about who they are and as a consequence that’s the bit they will pay the most for. We are just trying to take the premium slice out of their cheque book and leave others to produce the bulk commodities.”

Is that achievable? Yes, says Mr Proudfoot, but it will take change, not only in our philosophies, but also in our leadership.

We need very strong, clear, company-defining leadership.

It’s something we don’t have at the moment, he says, and that, combined with risk adverse farmers driving co-operatives, could see us become irrelevant. “We have become incredibly good at investing in assets that are safe ... the stainless steel and the land.”

As an industry New Zealand agriculture hasn’t been comfortable taking a punt and as a consequence we have not built market connectivity

to where it should be. Mr Proudfoot advocates a plate to pasture mentality rather than the other way round because that will deliver value to the industry.

“You actually deliver a solution to the problem a customer has, but that requires us to have risky investments.”

But when co-operative shareholders demand money, spending $150 million repositioning business somewhere else in the world that might not receive product for four years becomes a bridge too far.

He’s seen what could be. Recently he sat in a room with a buyer from a company in the Middle East who spoke eloquently about Australian beef.

That buyer said he would only buy beef from Australia because when he put it on a menu it sold simply because he

could link it to a farm and tell a story.

That beef was from brands Robbins Island and Cape Grim in Tasmania – proving how far our neighbours have come in developing their own story, to our detriment.

Together we could achieve a lot, he says. “If we bring the power of our combined ability to produce high quality product and market it as an Australasian Oceanic brand, we could put more diversity into that brand and with greater scale we have more certainty of supply.”

The size of overseas customers means New Zealand needs scale – and that only comes with partnering with Australia.

While it might be a good idea, Mr Proudfoot doesn’t hold out hope of it happening in the near future.

continued next page


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MADE IN NZ

From P4As a regular visitor to

Australia, he has seen first-hand how difficult it has been for individual states to collaborate with each other, let alone on an international scale.

Going into the future, New Zealand agriculture lacks a cohesive vision, he says.

“Export double is fine, but nobody understands it. It actually has to be something compelling that people buy into.

If people could understand where we could get to and the investment needed to get to, the end game we could double or triple our exports. It’s exciting.”

Resolutely passionate about New Zealand, Mr Proudfoot has one singular vision that over-rides all – to see his daughter have a world class career here rather than sending her to London. In agriculture and the possibilities ahead he believes he will find her that vocation.

LEADERSHIP

FARMER DRIVEN

The lack of strong, clear, company defining leadership is costing us, according to Ian Proudfoot.

While there are many intelligent smart people within the agricultural industry, not many have the X factor, he says. Citing John Brackenridge, CEO and founder of Merino NZ and Sunlait CEO John Penno, Ian believes we need more leaders with their kind of drive and vision if we want to succeed.

“But for us to be successful it requires some of the leaders of our companies to make a call as to whether they want to lead us into this new world ... or is it time to give someone else a shot. It doesn’t mean their skills can’t be used, because they are critical to the industry but – maybe not as the CEO.”

Farmers must be prepared to make a commitment and to accept that initially returns on that commitment might go backwards when it comes to co-operatives.

“You’ve got to invest now to benefit later.”While spending a large amount of money on a potential market might not generate immediate

returns it was vital, he said.

Left – We need more leaders like Merino New Zealand CEO John Brackenridge.

INDIA

If New Zealand manages to break into India with dairy products it would be game over, according to Ian Proudfoot.

“We wouldn’t even bother with China,” the KPMG head of agri-business said.

On a trip to India in January Mr Proudfoot saw first-hand the spectrum of wealth and said it was sensational. “We’ve got a strong cultural connection

with India. The British colonial history means there are a lot of things that resonate between the two countries and most of all natural dairy products are inherent in their diet.”

Unlike China, Indian consumers do not need to be converted to dairy products and getting a free-trade deal with the largest producing dairy nation in the world will be critical post TPP, he said.

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Left – Australia has learnt how to tell a story, particularly with beef brands like Cape Grim in Tasmania.


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Trade Minister Tim Groser is “relentlessly long-term optimistic about the future of dairy”.

Market access key to our future, says GroserBy NadiNe Porter

Without free-trade agreements New Zealand would be bankrupt and the South Pacific would be the equivalent of Greece, according to the Trade Minister Tim Groser.

Fresh from TPP negotiations, Mr Groser was “relentlessly long-term optimistic” about the future of the dairy industry as well as the entire agriculture industry.

Speaking about the latest global dairy trade auctions, Mr Groser said while the prices seemed harsh for farmers in trouble, the average of low prices combined with the exchange rate indicated a -4 to -8 per cent drop in incomes.

“No-one wants to hear that, but it’s a little less than a catastrophe.”

In the long run trends were what mattered and those trends still looked “very

favourable” to New Zealand, he said.

“We will always see commodity price fluctuations. That’s the reality – we will never avoid them in the beef, lamb and dairy industries. All we can do is have resilient systems in place and a flexible economy so that when things go south the exchange rate falls.”

Mr Groser praised the continual cycle of innovation among New Zealand farmers in the past 100 years and said in the past 20 years our exports have grown by 5 to 6 per cent on an annual average.

“I don’t call that stellar by any respect, but it’s quite respectable. That will mask enormous fluctuations. When the cycle advances it will go up about 12 per cent.”

Mr Groser said what hadn’t changed was growth to

incomes in emerging economies around the world.

“China is by far

the most important market of course but there is the lurking giant of India.

“We never quite know if it’s going to take off or not. What we know is that it takes a long time to move the dial for exports on these economies.”

However, the growth of exports to China can’t be denied, with only $570 million returned in export value from China in 1994, $1.8 billion in 2004 and a staggering nearly $10 billion last year.

“We won’t achieve $10 billion in 2015 because of the

commodity price cycle.”Mr Groser said processed

primary exports had grown nearly 10 per cent on average every year for the past decade and has almost doubled the value of unprocessed products.

“We are

now above unprocessed in value for the first time in New Zealand history. Everyone would love to be up the value chain, but if you look at the last 20 years we are slowly and surely moving into processed primary products.”

Mr Groser warned against the perils of

China and said it was a graveyard

for western companies

trying to launch

brands.


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Market access key to our future, says Groser“I think Fonterra made a

huge mistake with Sanlu in 2008.”

But Fonterra had some “really strong partners” now and was “riding on the back of an established Chinese brand”.

The greatest medium-term threat to China was increased domestic supply. Mr Groser praised Fonterra for not “sitting on its hands”.

“I take my hat off to them and recognise that the old dairy farmer argument of why on earth would you invest in someone else’s milk production was fundamentally flawed in the case of China.”

Mr Groser described ongoing criticism of Fonterra as unfair and said the co-operative’s one billion dollar investment into 30 giant dairy farms would be effective in terms of brand strategy.

But it’s trade agreements he’s most interested in and says in the past 10 years exports to non-free trading nations have declined by 2 per cent, while they have increased by 10 per cent to those with agreements.

continued over page

Indian farmers lose 30 per cent of produce on their way to markets.


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Transporting crops in India.

QUICK FACTS

■ Exports to non-free trade nations have declined by 2 per cent in the past decade

■ Exports to free-trade nations have increased by 10 per cent in past decade

■ China exports 1994 was $1.8 billion ■ 2004 was $10 billion

From P7The TPP may be a

stumbling block at present, but it’s one that Mr Groser is committed to solving.

While everything bar dairying was “excellent for agriculture”, Mr Groser was adament he would not accept a poor deal for the industry.

“There will be elimination on some dairy tariff lines and there won’t be on others.”

Negotiations continue in back rooms and by the end of it Mr Groser was convinced

there would be a positive resolution for New Zealand and its dairy farmers.

As to the future and all

roads leading to India?“Nobody can make much

progress in India.“They haven’t had a political

figure like they did in China to say they needed to open up their markets.

“They are still following a protectionist model and are so large ... do they really care if they are on their own?”

Mr Groser believes India is following the wrong strategy and needs reforms.

“If I was minister of agriculture the first thing I would do is build proper

roads.”It’s estimated that Indian

farmers lose up to 30 per cent

of produce due to their run-down roads.

Overall the long-term view of the dairy sector remains bright, he said.

“We’ve got a long way to go, but I’m relentlessly long-term optimistic.

“If we look outside agriculture we will see increasingly strong niche exports.

“Everywhere I go I meet brilliant people and by 2050 we will have a more diversified economy.”


Calling the innovative among you

People, companies and projects demonstrating innovation in irrigation will be sought next month for IrrigationNZ’s Innovation in Irrigation Award.

The judging process for the highly-prestigious award has been revamped with entries opening on September 1 and closing at the end of October. This should make it easier for participants to get their applications in before they get too busy with the irrigation season, university holidays and the Christmas silly season.

Sponsored by Aqualinc, the ‘Innovation in Irrigation Award’ recognises innovation excellence in the sector – whether it be an innovative practice or behaviour, an innovative product or

technology or innovative community thinking around irrigation.

Presented every two years at IrrigationNZ’s biennial conference and expo, Aquaduct NZ won in 2014 for its ground-breaking solution for the manufacture of irrigation pipe for Valetta Irrigation Scheme’s underground piping project.

The innovative aspects of this entry included the creation of a factory in a

paddock to produce pipe on-site. This slashed welding requirements by 80 per cent and reduced installation time and costs. The company supplied 84 km of pipe in sizes from 1.6m diameter to 200mm - in lengths up to 250 metres - for Valetta’s scheme upgrade. Other innovative features included machinery designed and adapted specifically for the Canterbury Plain’s unique cobblestone conditions and vibrating technology

which perfectly bedded the pipe network and greatly increasing its longevity.

Finalists in 2014 included FieldNET and K-line G-Set. FieldNET have created irrigation management technology which has drastically reduced the use of water, time and labour when scheduling irrigation. The FieldNET technology gives growers greater remote control over their entire irrigation operation, resulting

in better use of resources and greater yields.

K-Line G-SET is a low maintenance irrigation system ideal for use on awkward-shaped terrain and steep hills as it offers more flexibility than traditional irrigation. Operating via a solar-powered battery system, the G-Set system sits just high enough above the ground for its sprinklers to work efficiently but low enough so stock don’t rub on it.

A highly commended entrant in 2014 was IQ-H20 for its pod irrigation system. Particularly useful for hill country use, this system is designed to apply the correct amount of water to the right areas on paddocks without run off.

So now we’ve reminded you about the types of innovation the irrigation sector can produce, get your thinking caps on and send us some possible nominees. We know there’s lots more examples out there and we’d love to see a greater range of entries for our 2016 Innovation in Irrigation Award.

Andrew Curtis

IRRIGATION NZ

www.guardianonline.co.nz10 Dairy Focus www.guardianonline.co.nz

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GLOBAL FOCUS – UK

By NadiNe Porter

While New Zealand dairy farmers mull over a season of frustrating prices, those producing milk in the United Kingdom are exiting the industry at record rates.

The situation has been considered so dire that UK farming unions met last week in an urgent summit to discuss the problems facing the industry following falling prices which have seen farmers getting paid much less than the cost of production.

Already 256 herds have been driven out of the industry this year alone.

The powerful farming lobby groups released a statement urging farm ministers across the UK to meet urgently and said a seismic change in the way food was sold was essential or there could be horrific consequences for the farming industry and rural economy.

“They need to admit that something has gone fundamentally wrong in the supply chain and take remedial action.”

The unions said in general, voluntary codes were not delivering their intended purpose and Government needs to take action to ensure that contracts to all farmers are longer-term and fairer in apportioning risk and reward.

“At the moment in many contracts all the risk is put on the farmer with very little of the reward.”

And in a direct shot at New Zealand lamb producers the union also called for Government to urgently ensure that rules were put in place regarding labelling so that it was clear and obvious which products were imported and which were British.

continued next page

Dairy farmers leaving the land en masse in UK

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GLOBAL FOCUS – UK

From P10“We are all looking for

government to ensure that British products are marketed abroad and that new markets are opened up for our high quality British food.”

The industry says a reduction in global demand for milk has led to an over-supply in the UK, creating difficult conditions for many dairy farmers.

In recent weeks convoys of tractors across the UK have carried out rolling roadblocks while hundreds of farmers have demonstrated outside retailers’ depots and supermarkets.

NFU president Meurig Raymond said the industry was in crisis as many milk producers grapple with price cut after price cut.

“It’s simply not sustainable for any farmer to continue to produce milk if they’re selling it at a loss.

“The plight of many farmers has become desperately

serious and with no sign that things will improve, we really need urgent action from retailers, the food service sector and processors to show commitment to British dairy farmers.

“I also want to see Government agencies doing more to support the public procurement of British food.”

Wales National Farmers Union president Stephen James said there was no doubt as to the seriousness of the situation while Scottish president Allan Bowie said it was not just dairy farmers experiencing hardships.

“This is obviously not sustainable for these businesses and ultimately going out of business is not an option. There needs to be a clear understanding from all of those involved that something has to change.

continued over page

Dairy farmers leaving the land en masse in UK

Left and above – Farmers in the UK are protesting en masse over falling milk prices with over 256 herds gone since the start of 2015.


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GLOBAL FOCUS – UKFrom P11“For Scotland, it’s not just

dairy or the lamb markets that are affected, all commodities are feeling it. Coupled with the ongoing adverse weather we can see the significant pressure that businesses are under.”

Mr Bowie said it might not be long before Scottish farmers take to the streets to demonstrate.

Ulster Farmers Union president Ian Marshall said it was a multi-factorial problem across the entire industry both sectorally and geographically for which there was no single solution.

“But it is essential that everyone in Government and the supply chain plays their part in helping to urgently address these genuine and serious difficulties. The understandable frustration of farmers is starting to spill over into actions that no one wants.”

Supermarket to sell new milk brand for farmersMorrisons will sell a new milk

brand which will see 23 cents paid per litre to farmers, the supermarket says.

The Milk for Farmers brand means a four pint bottle (2.27 litres), which now sells for $2.09, will cost an extra 54 cents.

Other retailers have similar deals, but dairy organisation AHDB Dairy said 23 cents would make “a considerable difference”.

The move comes after farming leaders met Morrisons’ bosses over

concerns about the impact a sharp drop in the amount paid was having on the industry.

The National Farmers’ Union (NFU) said it would now be writing to other sellers, asking them to follow Morrisons’ lead.

Cows in supermarkets As simmering tension boils over farmers have taken cows into UK supermarkets to protest as to why their milk is being sold for less than the price of water.

Some supermarkets are currently paying around 70 to 77 cents per litre but others, including Asda, were paying as little as 54 cents per litre.

When compared to New Zealand supermarket milk prices Dairy Focus found that many whole milk supply lines in the UK were retailing for around 94 cents per litre.

In semi-skimmed milk prices for 2.27 litres of milk were just $2 for Tesco, Sainsburys and Waitrose and $1.96 for Asda, Morrisons, Aldi and

Iceland. Countdown in New Zealand were offering the cheapest milk with their Homebrand label at just $1.60 per litre with other brands averaging between $2.30 to $2.45 per litre.

Farm protestors have been taking part in a milk trolley challenge in stores through-out the UK where all the milk on the shelves gets bought and then gets either given away or sold for a nominal fee and the money donated to charity.

Farmers say they need to be paid at least 70 cents per litre of milk to cover their costs but instead they were paid an average of 55 cents per litre in June, according to British dairy organisation ADHB Dairy.

Last week, several UK milk wholesalers cut prices by 19 cents per litre, taking the price paid to some farmers to below 54 cents.

British Retail Consortium spokesman said: “The retail industry pays a fair price with individual retailers using different payment models. We understand the current frustration of farmers but it is wrong to blame retailers.”

Morrisons supermarket chain has just offered dairy farmers a lifeline.

www.guardianonline.co.nz12 Dairy Focus www.guardianonline.co.nz

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Dispelling white line disease mythsI was reading a recent article about a farmer who has overcome their lameness issues.

In the article it is explained how white line disease is caused by long distance walking. “The sole wears thin and when there is pressure applied to the herd little stones will work their way into the hoof and cause infections.”

This article again shows me how there are still people out there with an incorrect understanding of what causes white line disease and most lameness issues in New Zealand. For one, this theory has no evidence to back it up, two, it doesn’t make sense if you think about it and thirdly there is evidence to show this theory to be incorrect.

In a previous article I asked people to show me some indisputable evidence to prove the possibility of this theory. I received some responses, but no real evidence was presented. I won’t go into that now, but I will on the other two points.

One, the theory explained

above doesn’t make sense. When cows walk long distances their hooves will wear faster - that is logical, natural, and if the live tissue in the hoof didn’t respond to that faster wear then the cow would end up with major problems. As a matter of fact, the whole herd would end up with worn out hooves and you would not be able to milk cows on big farms. You would need to keep the cows in their paddock because any unnatural wear on a track will cause a problem with worn out hooves.

Fortunately, cows are created with the ability to adapt just like other creatures. Just look at your own hands. If you do more physical work with your hands your body

responds to that by growing more calluses. In the same way, the corium (live tissue in the claw) will respond to more wear by growing more hoof – especially when they have been walking on the tracks for months. However, sometimes we go to farms and all the hooves are soft and thin.

This is true, and the question needs to be asked why is that? Why does the

corium sometimes not respond in a sustainable manner?

The only explanation I can come up with is that the corium is not functioning properly due to being unhealthy or maybe the thinner soles are not a problem to the cow.

To answer the question on what makes the corium unhealthy is a whole article or articles on its own. If you

want to know more you can attend one of our trimming courses and/or seminars to find out.

Second, I also want to show you some evidence of the opposite to be true. Do you notice that white line disease happens more on the outer claw - especially when there is more height difference between the claws? So, white line disease actually occurs more often with a thicker sole rather than a thinner sole.

We did a trimming trial a few years ago where we showed that if you trim the outer claw to the same height as the inner claw you end up with less lameness. So, by trimming the outer claw you make it thinner and yet you end up with less lameness. This goes against the theory that was described in the article that I was referring to. I realise that there is a lot more to the white line disease issue than I can cover in this article. I intend to cover a bit more of that in my next article and you can always contact me if you have questions on this subject.

Fred Hoekstra

VEEHOF DAIRY SERVICES



Do we need to diversify?By Maurice Myers

Supply and demand is the ruler of price.

When there are more sellers than buyers price goes down and as we’ve seen dairy commodity markets can be particularly vulnerable to this volatility.

By nature a product that is a commodity such as dry dairy powder is a base product that is sold in mass volume for someone else to add value to and gain margins from in another processing stage.

This begs the question - what is stopping us from adding value and selling a more valuable product at higher margins with a more stable price horizon?

By simply adding volume to the commodity market are we adding value to our industry?

As a farming community and the shareholders of large dairy processing companies these are the questions we all need to be asking.

Is diversification the answer? It depends on your definition of diversification.

If you think simply

changing focus to another product, grow in mass volume and sell it onto a generic market - then effectively you are doing the same thing. You will eventually get the same

result.True diversification must

come from innovation. We must walk in our customer’s shoes, and we must understand how they live and

how we can provide products that add value to their lives and premium back to our producers.

Think of it like this - we remove the water from milk

and send it to a country that has approximately 35 times less water than New Zealand per capita.

They then reconstitute the product using what limited water they have to create a product they can consume? Why aren’t we adding the value to the product before it’s exported, and saving precious resources at the consumer end.

What about the New Zealand story? How do we get the bang for our buck from our story when our product is simply an additive to make another product more valuable?

Our story is something special - every day we strive for sustainability, we strive to fuel New Zealand’s prosperity and ensure future generations can carry this on.

Our story is valuable to those consuming our product. They want the best, freshest and safest food products, and they are willing to pay for it.

So what is it that’s stopping us from adding the value?

Maurice Myers is senior director of KPMG Ashburton

The importance of calf and heifer nutritionBY DAIRY BUSINESS CENTRE

(NZ) LIMITED

As we start with a new season, we are giving farmers a timely reminder to start planning their strategy for calf and heifer nutrition, as failure to give this enough thought can lead to poor production and subsequent losses of young animals in your herd.

The primary factor contributing to poor production is not reaching targeted live weight gains for the period from birth up to first calving. Calves and heifers should be thought of as the future of your dairy herd.

After calving, we spend much care and efforts ensuring the animals take to the milk, and then supply them with feed and good shelter to enable them to grow rapidly into heifers.

To achieve this rapid growth we need the presence of fibre, like straw or hay, clean water and a good calf meal.

The care and attention needs to be maintained once they become heifers, as at this time of the season we want to see healthy, well grown heifers that are reaching good weights in order to be ready for mating when they are 14 months old.

When heifers are well grown the chance of competition in the herd is

less, the risk of health issues during mating is low and they will produce future generations of big calves. There is nothing holding the animal back to provide above average production in her first lactation. Making sure the heifers achieve these goals lies in the care and nutrition we provide the animals, making sure there is always

feed there to fill up on, enough energy to grow and enough protein to provide the building blocks for her body to grow.

Following on from this is making sure the animal is looked after, has regular health checks and checking that her weight gain is meeting targets.

Although heifers are not cows, their nutritional requirements are similar in that they need energy, protein and minerals. This means we need to make sure the animals are having enough fill to keep the rumen full and do not lose body condition and/or weight.

These are indicators that can be observed during the season and should be monitored monthly. Also, make sure heifers and calves have ad-lib access to minerals through a lick and have enough supplements when their base feed is insufficient (e.g. through drought or rainy periods) and always have enough fibre available, either through the pasture or through supplementation of hay or straw.

Farmers also need to monitor their heifers, even if they are grazing off, as having small animals for mating is a lost opportunity. To achieve target growth rates we need to be constantly weighing heifers to know the feed is working and by weighing regularly we can identify animals that are

under performing and preferentially feed them. If the entire group is not achieving targets then this could indicate other limiting factors (minerals, worm burden or poor feed quality) and with this knowledge we can identify and eliminate the problem

No matter who is responsible for the task of actually feeding your livestock, you, as the farmer, will be incurring any losses from lack of nutrition planning as your future herds will be undergrown, won’t perform in their first or second lactation, and future offspring from undergrown animals are usually small, which will just repeat the cycle. If the animals are reaching targeted weights then both the grazier and owner have peace of mind the system is working.

Plan your feeding strategy well, weigh regularly and consult a nutritionist to talk about the different responses expected from your particular herd. Talk through the different options of calf feeds ensuring you get the best value for money.

For more information on calf and heifer nutrition either talk to your nutritional advisor or contact the Ruminant Nutrition Consultancy team at Dairy Business Centre (NZ) Limited on 03 308 0094, email [email protected]

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Petitions demanding actionUK farmers and rural businesses have launched a number of petitions across the internet demanding action to help ailing dairy farmers.

Demands ranging from a minimum milk price to the reintroduction of the Milk Marketing Board have been suggested.

Dairy service engineer Chris Charles has set up a petition that calls for the introduction of minimum prices that milk buyers pay to farmers.

“Farming is the backbone of the UK and anything that happens to the farming community in the UK has a ripple effect and has a huge consequence on the other industries that thrive on this backbone.”

Protests continue over low milk prices:Protests have continued in the UK with farmers staging

peaceful demonstrations at supermarkets and milk distribution centres.

Meanwhile Muller UK and Ireland has reduced milk prices, offering $0.52 per litre.

The company said the price reflected “very high levels of supply” from UK farms coupled with “weak global demand”.

Farmers have labelled the price a disgrace.

Dairy farmers quitting en masseThe National Farmers’ Union estimates 1000 dairy farmers have left the industry in the UK over the past two years with around 50 giving up producing every month.

As a result, there are fewer than 9950 dairy farmers left in England and Wales – and that number has more than halved since 2002.

WIDER EUROPE

European Milk Board calls for return to quotasThe European Milk Board, representing farmers throughout the EU, has called for what is in effect a return to quotas – “a crisis instrument like the Market Responsibility Programme ensuring that reduction is fairly distributed among producers”.

The processing sector has also been hit hard as some look to process less to cope with the global price crash.

European dairy association president Michel Nalet (right) told members, in Belgium, it wasn’t only the farming community worried about the situation but the entire dairy sector.

However, EU Agriculture Commissioner Phil Hogan claimed there was no crisis after backing emergency measures to extend private storage and intervention buying.


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INTERNATIONAL DAIRY NEWS

UNITED STATES

US milk production lifts againThe Agriculture Department raised its 2015 milk production forecast for the second time in nine months in its latest World Agricultural Supply and Demand Estimates report (WASDE), based on a slightly more rapid increase in cow numbers and milk per cow.

However, higher expected feed prices and weaker milk prices during late 2015 and 2016 are expected to temper the rate of growth in production and the 2016

production forecast was lowered.

Current-year production and marketing was reported at 208.8 billion pounds and 207.9 billion pounds, respectively, up 100 million pounds from last month’s report. If realised, 2015 production and marketing would be up 2.8 billion pounds or 1.4 per cent from 2014.

For 2016, production and marketings were projected at 213.6 billion pounds and 212.6 billion, respectively, both down 300 million pounds from last month’s projection. If realised, 2016 production and marketings would be up 4.8 billion pounds, or 2.3 per cent, from 2014.

AUSTRALIA

Fresh Milk Holdings complete purchaseAustralian Fresh Milk Holdings (AFMH) have completed the purchase of Moxey Farms, one of Australia’s largest single-site dairy operations. The Moxey family have acquired a strategic stake in AFMH as part of the deal, and will stay on to operate the farming business in a joint venture with the Perich family.

Brownes Dairy on the marketBrownes Dairy is going on the market, according to the Australian Financial Review. The newspaper reported last week that owner Archer Capital has hired Luminis Partners to sell the WA milk and yoghurt manufacturer. Archer reportedly hired Luminis after receiving inbound approaches, and a sale process is expected to be “up and running within weeks”. It

is expected to sell for between $145 and $165 million.

Camperdown infant formula expansion in ChinaGreat Wall Capital Trading Limited has signed a multimillion dollar, 15-year agreement with Camperdown Dairy International to become the exclusive exporter to China of Camperdown’s

premium brand of infant formula.

The $600 million per annum agreement, which was struck on the back of Australia’s new free trade agreement with China, will see the distribution of 10 million tins per annum across China.

Currently Australia sells and exports less than five million tins of infant baby former per annum in a market of almost 125 million tins.

Australian farmland promoted in ChinaThis month Landmark Harcourts will promote Australian farmland and related investment opportunities in China at a major event in Shanghai.

The company wants to provide a platform for potential investors to make direct contact with Australian producers of dairy, beef, grains, fibre, and horticulture in a bid to add value across the supply chain.

It will be the third annual China investment push.


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SIX YEARS ON AND BRIAN IS STILL SEEING GREEN

The current global viewBy NadiNe Porter

The latest ANZ agri focus report says although cuts in core expenditure seems inevitable this season it is not sustainable.

The report states that if dairy income drops $0.25-0.50 per kilogram of milk solids, inputs would need to exhibit similar falls.

“And this can’t be achieved by cutting core expenditure that generates long term efficiency and productivity, such as fertiliser, pasture renewal and animal health.”

Tough choices would need to be made with the report concluding cuts to a dairy farmer’s budget would not be “an easy equation to balance.”

Overall the ANZ report painted a picture of a struggling industry and did not offer much in the way of optimism for the medium term outlook. A 4 to 8 per cent drop in dairy incomes was not a one off – but instead a sustained loss which meant rural farm values would “retrace modestly.”

continued next page

Farmers will need to cut input expenses by 25 to 50 cents per kilogram. PHOTO TETSURO MITOMO 110815-TM-052


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The current global viewFrom P18ANZ believed the medium

term supply/demand balance combined with the downward pressure on costs mean the new equilibrium band for milk price could be somewhere between $4230 to $5142 per metric tonne with a mid-point of $4688 per metric tonne.

“This is a 10 to 15 per cent reduction on the previous band.”

The bank now forecasts a milk price range of around $5 to $6 per kilogram of milk solids with a mid-point of $6 kg/ms.

That would result in the medium term farm gate price decreasing by $0.25 to $0.50 kg/ms that has been achieved over the previous nine years.

However, should the new mid-point be closer to $4230 per metric tonne because the confluence of current supply and demand events reduces the price, a medium-term milk price could be closer to a low to mid $5 per kilogram of milk solids.

continued over page


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From P19“Such an outcome would

likely lead to a period of under investment, which given long term trends of population and income growth, would eventually lead to another correction.”

Farmers needed to be wary of the possibility of prices falling well below the global breakeven cost curve as world politics including Russian sanctions, Europe’s common agriculture policy, US farm bill changes and China’s support for domestic large-scale operations drives price more than economic logic and favourable long-term trends.2015/16 outlook:ANZ expects dairy production to fall by up to 4 per cent this season as famers trim supplementary feed, general expenditure and reduce stocking rates due to the lower pay-out forecast.

Last season saw record production levels of 1.89 billion kilogram of milk solids – an increase of 3.6 per cent. Europe:The European milk quota system officially expired at the start of April – reducing the incentive to over-produce during periods of uneconomic margins. ANZ estimates

countries that have been restricted by quotas will have additional expansion plans.

The European Commission projects milk production will expand at an average of only 0.8 per cent per year with a farmgate milk price average of 82 cents per kilogram in the coming decade – considerably more than the current price of $71 cents.

If estimates are correct European Union exports will increase considerably with growth of 50 per cent in whey products, 8 per cent in whole

milk powder, 39 per cent in skim milk powder, 25 per cent in butter and 50 per cents in cheese products.China:ANZ forecast China will remain a difficult market to read and will have a “high likelihood” of being a swing buyer as its domestic industry continues to restructure.

Increased domestic supply has created an excess powder inventory as dairy processors continue to buy raw milk under obligation, and convert

it into milk powder to improve shelf life.

Estimates of milk powder inventories have ranged from 100,000 to 450,000 tonnes – implying stocks could be anywhere between 5 to 21 per cent of annual consumption.

Overall the largest medium-term threat to New Zealand dairy farmers remains higher domestic supply within China reducing import demand.

Although the Chinese Government continues to drive development, producing milk has not been a cheap

exercise.Limited access to skilled

labour, climatic and natural resource limitations and lack of suitable agricultural land constrain farmers’ abilities to grow feed.

“As such China’s dairy industry is heavily dependent on imported feed from the United States. Dairying also struggles with access to water.”

The high costs of producing milk in China are starting to make processors question the logic of trying to increase domestic supply. Russia:The Russian ban on imported Western foods in the face of sanctions continues to affect global prices with nearly 2.5 billion litres of milk needing to find a new home.

The unwanted milk equated to around 12 per cent of New Zealand annual supply and may increase as Russia’s Government drives their dairy industry towards self-sufficiency.

Expected to continue to extend import bans, Russia has recently announced a large support package of around $16.6 billion for livestock producers although not all of it will be used for the dairy industry.


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• 2.4M Back Height• 3.0M Front Height• 3.6M Bays• 6M Deep• H5 Hi Strength Poles• 0.9 kpa Snow Load• High Wind• 0.4 Zincalume Steel

SHED 2 - 13.5X6M

• 3M Back Height• 3.6M Front Height• 4.5M Bays• 6M Deep (Clear span)• H5 Hi Strength Poles• 0.9 kpa Snow Load• High Wind• 0.4 Zincalume Steel

SHED 3 - 13.5X9M

• 3M Back Height• 3.6M Front Height• 4.5M Bays• 9M Deep (Clear span)• H5 Hi Strength Poles• 0.9 kpa Snow Load• High Wind• 0.4 Zincalume Steel

$4,300.00+ GST?$4,300?$4,300?$4,300 $5,500.00

+ GST?$5,500?$5,500?$5,500 $7,600.00+ GST?$7,600?$7,600?$7,600

Our every day price for kitset

Bird proof

192 Racecourse Rd, Ashburton 03 308 0287 or 0274 832 712www.granthoodcontracting.co.nz

PROFESSIONAL CONTRACTING MADE EASYhelping our clients achieve EXCELLENT results

DairyNZ accredited Effluent Pond Design and Construction

Pond Construction and Irrigation Development

Hedge & Stump Removal

Farm Conversions

Dairy Tracks - Lime or Gravel

Pump Hire

Wells & Galleries

Bulk Earthworks

Sub Divisions

Site Works

Transportation

The core services we offer to our clients are:C O R E S E R V I C E S

Member of

“We consider the environment for all works we undertakeand are proud our peers have recognisedthis fact for thesecond year in a row.”

W I N N E R 2

013

WIN

NER 2013

- AWARD -- AWARD -

W I N N E R 2

012

WIN

NER 2012

- AWARD -- AWARD -

Environmental Award winners for the 2nd year in a row

C O R E S E R V I C E SThe core services we o� er to our clients are:

PROFESSIONAL CONTRACTING MADE EASY

helping our clients achieve EXCELLENT results

DairyNZ accredited E� uent Pond Design and Construction Pond Construction and Irrigation Development Hedge & Stump Removal Farm Conversions Dairy Tracks - Lime or Gravel Pump Hire Wells & Galleries Bulk Earthworks Subdivisions Site Works Tree Shear Transportation



PROFESSIONAL CONTRACTING MADE EASYhelping our clients achieve EXCELLENT results

DairyNZ accredited Effluent Pond Design and Construction

Pond Construction and Irrigation Development

Hedge & Stump Removal

Farm Conversions

Dairy Tracks - Lime or Gravel

Pump Hire

Wells & Galleries

Bulk Earthworks

Sub Divisions

Site Works

Transportation

The core services we offer to our clients are:C O R E S E R V I C E S

Member of

“We consider the environment for all works we undertakeand are proud our peers have recognisedthis fact for thesecond year in a row.”

W I N N E R 2

013

WIN

NER 2013

- AWARD -- AWARD -

W I N N E R 2

012

WIN

NER 2012

- AWARD -- AWARD -

Environmental Award winners for the 2nd year in a row

“Grant Hood Contracting Ltd’s

philosophy is to provide our clients

with superior value and a solution to

their contracting needs.


P H I L O S O P H Y

WINN ER

2012

WIN

NER2012

Environmental- AWARD -Environmental- AWARD -

Member of

“Grant Hood Contracting Ltd’s

philosophy is to provide our clients

with superior value and a solution to

their contracting needs.


P H I L O S O P H Y

WINN ER

2013

WIN

NER2013

Environmental- AWARD -Environmental- AWARD -

Member of

“Grant Hood Contracting Ltd’s philosophy is to

provide our clients with superior value

and a solution to their contracting

needs.

To achieve this we will always provide

excellence in service, workmanship in

a professional manner from our

highly experienced dedicated team of operators and management”

PHILOSOPHY

NZ NEWS BRIEFS

Questions over FonterraSome discontented voices are gradually emerging surrounding Fonterra’s future direction.

In the past fortnight Waikato Federated Farmers president Chris Lewis and national dairy chairman Andrew Hoggard have suggested the giant dairy co-operative needs to discuss options around the global dairy auction including suspension.

Mr Hoggard spoke to Fonterra and proposed they seek an independent comment from “people totally removed from New Zealand politics”.

NZ First leader Winston Peters has also called for a suspension.

Locally Ashburton Forks Fonterra supplier Graham Lowe believes Fonterra chairman John Wilson should do the “honourable thing” and step down.

He believes governance “stuffed up” and someone should “fall on their sword”.

Salmonella warning in CanterburyVetlife Ashburton vet Lorna Humm said vets have noticed an “unusual presentation” in salmonella brandenburg cases in dairy cows and are warning farmers of the need to be careful.

Normally dairy cows exhibit signs of illness and abort the

calf. The calf will normally be smelly or rotten but this season vets say the cow seems quite healthy, and the calf doesn’t smell as bad and so can pose a human health risk during calving when staff are working closely with cows.

Richardson on co-opsThe woman behind the second

wave of financial reform in the early nineties will be talking to the Rural Business Network about the pros and cons of co-ops later this month.

Ruth Richardson will talk to rural businesses on August 26 at the Methven Resort Hotel about the suitability of agri-sector business models.

Having made a name for herself as the Minister of

Finance during tough reforms from 1990 to 1993 and the framework she put in place for the Fiscal Responsibility Act in 1994, Ms Richardson has had an extensive international practice as a public policy consultant.

Coupled with her work as a public policy consultant Ms Richardson has developed a substantial private sector practice in corporate governance

Mental healthMid Canterbury Federated Farmers are reminding farmers of the need to keep an eye on each other and to keep communicating with banks and advisors.

Anyone with concerns can call the Mid Canterbury Rural Support Trust on 0800 787 254. Calls can be anonymous. The trust has a wealth of resources and can keep an eye on anyone you might think needs a listening ear.

The Farmstrong website also offers advice on keeping healthy at www.farmstrong.co.nz.


With the present lower prices in dairy and the pressure that low returns put on all systems, it is very easy to look at ways of cutting costs today. One of the first things that is a significant cost at this time of year is calves. They offer no return until they enter the herd and start producing milk, so effectively they are a burden on cashflow.

However, although it’s easy to look at a cost saving today, cutting corners with young stock has the potential to be a long-term loss. If calves don’t grow to their full potential they will never be able to produce milk at their full potential. They also have no other opportunity to grow with the same efficiency as they do as a growing calf.

The young stock on your farms, in many cases, are the direct result of many years of breeding and genetic gain, to not allow this young animal the opportunity to grow and reach its genetic potential is a cost which will be incurred for many years to come.

Our lines of calf and young stock feeds are designed to be

palatable and allow the animal every possible opportunity to grow and develop into your future herd. This is continued with our block lines which ensure weaned young stock are still getting everything they need to keep growing. At James & Sons we totally understand the impact that

lower prices are having across the board and are keen to work with farms to ensure we are all looking at the most cost effective way to get your calves growing and ensure we give them every opportunity to grow and develop into your future herd.

Please contact us to discuss

the best and most cost effective calf rearing system which can be implemented to help not only your cashflow but also the future of your herd (your future income). Our team can work through the different lines of milk powders and calf feeds to ensure you have the right product going into the

animal at the right time, which also makes it more economic and will ensure you get the most out of every cent spent.

Don’t forget, today’s young stock are tomorrow’s milking herd. Looking after them now will be the best money spent in the future.

Advertising feature

Look towards the future

We have a feed option for you

Dallas Gilies (027 343 6507)Sales Rep South-Mid Canterbury

Brent Haywood (027 902 2299)South Island Manager

Jason Birchall (021 669 797)Key Account Manager

www.jamesandson.co.nz

$42.50Per Block $665

Excl GST & Freight

Excl GST & Freight

• J&S Calf Milk Powder• J&S Calf Muesli

• J&S Stage 1 Calf Pellets• J&S Stage 2 Calf Pellets

• Kale• Fodder Beet• Dry Cows• Calf Weaner

Blocks

MINERAL BLOCKS J&S CALF OPTIONS MEAL BLENDS

Comes in 25kg or 250kg pallet option.

PRICED FROM

FROM

0800 MR FEED(0800 67 3333)

ESTA

BLISHED SINCE 1

850

$295Per Tonne

FROM

Excl GST & Freight

Per Tonne

2 Farming www.guardianonline.co.nz10 Dairy Focus www.guardianonline.co.nzNUTRIENT & FEED MANAGEMENT FEATUREFEED & NUTRIENT MANAGEMENT FEATURE


With the present lower prices in dairy and the pressure that low returns put on all systems, it is very easy to look at ways of cutting costs today. One of the first things that is a significant cost at this time of year is calves. They offer no return until they enter the herd and start producing milk, so effectively they are a burden on cashflow.

However, although it’s easy to look at a cost saving today, cutting corners with young stock has the potential to be a long-term loss. If calves don’t grow to their full potential they will never be able to produce milk at their full potential. They also have no other opportunity to grow with the same efficiency as they do as a growing calf.

The young stock on your farms, in many cases, are the direct result of many years of breeding and genetic gain, to not allow this young animal the opportunity to grow and reach its genetic potential is a cost which will be incurred for many years to come.

Our lines of calf and young stock feeds are designed to be

palatable and allow the animal every possible opportunity to grow and develop into your future herd. This is continued with our block lines which ensure weaned young stock are still getting everything they need to keep growing. At James & Sons we totally understand the impact that

lower prices are having across the board and are keen to work with farms to ensure we are all looking at the most cost effective way to get your calves growing and ensure we give them every opportunity to grow and develop into your future herd.

Please contact us to discuss

the best and most cost effective calf rearing system which can be implemented to help not only your cashflow but also the future of your herd (your future income). Our team can work through the different lines of milk powders and calf feeds to ensure you have the right product going into the

animal at the right time, which also makes it more economic and will ensure you get the most out of every cent spent.

Don’t forget, today’s young stock are tomorrow’s milking herd. Looking after them now will be the best money spent in the future.

Advertising feature

Look towards the future

We have a feed option for you

Dallas Gilies (027 343 6507)Sales Rep South-Mid Canterbury

Brent Haywood (027 902 2299)South Island Manager

Jason Birchall (021 669 797)Key Account Manager

www.jamesandson.co.nz

$42.50Per Block $665

Excl GST & Freight

Excl GST & Freight

• J&S Calf Milk Powder• J&S Calf Muesli

• J&S Stage 1 Calf Pellets• J&S Stage 2 Calf Pellets

• Kale• Fodder Beet• Dry Cows• Calf Weaner

Blocks

MINERAL BLOCKS J&S CALF OPTIONS MEAL BLENDS

Comes in 25kg or 250kg pallet option.

PRICED FROM

FROM

0800 MR FEED(0800 67 3333)

ESTA

BLISHED SINCE 1

850

$295Per Tonne

FROM

Excl GST & Freight

Per Tonne

2 Farming www.guardianonline.co.nz10 Dairy Focus www.guardianonline.co.nzNUTRIENT & FEED MANAGEMENT FEATURE

Keeping animals well fed and maximising their potential is something of a balancing act. This is true for dairy cows but also drystock, heifers and steers, as well as ewes.

When doing this, we can identify what is in excess and what is limiting for the animal; the energy and protein balance is one area to note. By ensuring a balance between nutrients you can get more out of the cow. It is the limiting nutrient that we will see the best response from when supplementing. Supplementing something that is already available in excessive amounts will not give us a response and in some cases can cause a drop in production as they have to work hard to remove the nutrient they don’t need more of.

The most valuable feeds on farm are those that are home grown; pasture, silages, crops. These need to be fed with minimal wastage to get the best utilisation. Once these have been considered, the missing parts can be filled in. Dry matter is the first thing to look at – is the total amount of KG offered sufficient?

Does the animal have enough energy for maintenance, walking and the required level of production?

Is there enough effective fibre to maintain a great rumen environment, allowing them to get the most from

total diet?Is there enough protein and of the

right type?Is the mineral balance, both macro

(calcium, magnesium) and micro (selenium, copper etc), correct?

Really analysing what is being fed and optimising the diet can show good returns on farm.

Good decisions critical in the current economic climate


C ARING FOR CALVES

What is best practice? Simply put it is what has worked best in the past for the majority. For most farmers the thought of straying from the industry recommended best practice is perceived as a risk.

Fortunately there are those in the industry that are prepared to challenge themselves and the industry code of practice to find easier or more cost effective outcomes. Without this type of attitude farming would still be where it was generations ago.

Industry advisors have always encouraged farmers to sow their fodder beet with precision into a fine cultivated seed bed. This is what has worked well in the past … Now is the time to question if this is still the case for many of the crops grown in the district given our wind risk and dry seasons.

Over the past years we have found more customers have been prepared to risk going against the trend and sow beet with Cross Slot technology. There have been some good, some average and some poor results. Through this process we have learnt what works and what doesn’t. From this learning we are confident to promote the successful sowing of fodder beet by No-Till for grazing.

The benefits are clear to those who lost tonnes of top soil and, or their

crops last season through wind erosion. What we have observed from last year’s growing season is traditional seeded crops cost $2200/ha to establish vs $1480/ha with Cross Slot and the yields were the same. Same seed, fertiliser, spray, and final dry matter. That’s 33 per cent less cost. That could cover the cost of establishing the following grass crop.

Getting similar results with the benefit of saving $720 /ha may well become the new best practice!

Fodder beet with cross slot

Call Mark Scott: 027 221 6070

UNT LLUNT LLa Methven, Ashburtonp 03 302 8872e [email protected] www.crossslot.com

Successful SeedingWith the costs of land, seed, fertiliser and other inputs, With the costs of land, seed, fertiliser and other inputs, With the costs of land, seed, fertiliser and other inputs, be sure to make the wise choice and opt for the best be sure to make the wise choice and opt for the best be sure to make the wise choice and opt for the best establishment method available today.establishment method available today.establishment method available today.

PARA PLOUGHPARA PLOUGH is now available for sub is now available for sub is now available for sub surface aeration. This is the ultimate machine surface aeration. This is the ultimate machine surface aeration. This is the ultimate machine to fracture under the surface while still to fracture under the surface while still to fracture under the surface while still leaving a level surface. The angled legleaving a level surface. The angled legleaving a level surface. The angled leg iiss what makes the difference!makes the difference!

Remove pugging and compaction Remove pugging and compaction damage before you direct drill

or ease your cultivation process. Call the experts today!

Your local SealesWinslow Technical Sales Representative is Alistair (Snow) Pierce. Call him on 0274 393 384 for tailored advice on dairy and calf nutrition.

What is best practice? Simply put it is what has worked best in the past for the majority. For most farmers the thought of straying from the industry recommended best practice is perceived as a risk.

Fortunately there are those in the industry that are prepared to challenge themselves and the industry code of practice to find easier or more cost effective outcomes. Without this type of attitude farming would still be where it was generations ago.

Industry advisors have always encouraged farmers to sow their fodder beet with precision into a fine cultivated seed bed. This is what has worked well in the past … Now is the time to question if this is still the case for many of the crops grown in the district given our wind risk and dry seasons.

Over the past years we have found more customers have been prepared to risk going against the trend and sow beet with Cross Slot technology. There have been some good, some average and some poor results. Through this process we have learnt what works and what doesn’t. From this learning we are confident to promote the successful sowing of fodder beet by No-Till for grazing.

The benefits are clear to those who lost tonnes of top soil and, or their

Fodder beet with cross slot

NUTRIENT & FEED MANAGEMENT FEATUREFEED & NUTRIENT MANAGEMENT FEATURE


Southern Soil Solutions is committed to providing extensive independent soil and herbage testing services to accurately identify any imbalances in the soil, and assess your soil’s overall health for the agricultural, horticulture and viticulture industries. In combination with these we offer fertiliser recommendations to improve your soil and grow your bottom line.

Based in the beautiful South Island of New Zealand, Southern Soil Solutions Ltd is made up of a dedicated team of passionate people with a wide range of experience among them. We are always seeking new and innovative ways to assist our clients.

The feedback from very satisfied clients is testimony to the very real benefits. They get really excited about

how their stock look and perform. How their pastures hold on going into and bounce back from dry spells. The results from balancing up the nutrients in soils can be quite spectacular. With increased soil health comes increased water retention.

Over time as some of those nutrients have been neglected it has become harder and harder to get stock to perform.

SSSL has the ability to provide the solutions for all people associated with land.

Contact us and an SSSL representative will come to your property and discuss at length any issues, ideas and future plans for your property and identify the appropriate course of action from the results of the tests.

Taking the guess work out of fertiliser

Contact Us Today 0800 DIRT DOCTORS

www.sssl.co.nz

Do you want to increase your farm’s health and

profitability and reduce your environmental impact?

Growing Healthy Food Sustainably

2 Farming www.guardianonline.co.nz12 Dairy Focus www.guardianonline.co.nzNUTRIENT & FEED MANAGEMENT FEATURE

While times might be tough Oilseed Products (OSP) stock feeds can offer an excellent source of feed that enhances milk production without compromising pasture utilisation.

Their Manildra stockfeed range from Australia is not genetically modified and offers a solution to all dairy farmers in a tough season.

Wheat DDG’s is a top of the line superb product and is well reputed, highly palatable and produces milk and grows stock. It is a great addition to the nutritional toolbox.

Hi Starch wheat pellets offer good levels of starch in a nutrient dense

pellet and are a perfect energy source for that early lactation period.

Pasture Plus Extra gives farmers a balanced pellet with minerals and vitamins added including organic zinc, selenium and copper.

OSP also offers “Superior Calf Feed” – which is competitively priced calf meal with no PKE in it.

They can also offer customised blends with other cost effective ingredients and are well known for their extensive knowledge and experience on the right feed for your cows.

Enhance milk production

Canterbury / West Coast / North Otago: Adam Nind 027 399 9643 Southland / South Otago: Simon McPhee 027 213 0011 Southland / South Otago: Mike Jones 027 399 9642 Southland: Nick Tomsett 027 488 5122

WWW.OSPSTOCKFEEDS.CO.NZ 0800 677 3333 0800 OSPFEED

Stock feed that will enhance production without compromising pasture utilisation.

Southern Soil Solutions is committed to providing extensive independent soil and herbage testing services to accurately identify any imbalances in the soil, and assess your soil’s overall health for the agricultural, horticulture and viticulture industries. In combination with these we offer fertiliser recommendations to improve your soil and grow your bottom line.

Based in the beautiful South Island of New Zealand, Southern Soil Solutions Ltd is made up of a dedicated team of passionate people with a wide range of experience among them. We are always seeking new and innovative ways to assist our clients.

The feedback from very satisfied clients is testimony to the very real benefits. They get really excited about

Taking the guess work out of fertiliser

FEED & NUTRIENT MANAGEMENT FEATURE

The Albrecht- Kinsey system of soil fertility and biological farming has been getting a lot of attention lately and for good reason.

Genetic technology, intensive farming systems and equipment innovations have made dramatic changes in farm management and profitability, yet most farmers are still using the same fertilisers their fathers used.

The consequence of increased yields has been the huge removal of soil nutrients. The ramification of this chemical mono agriculture system with the focus on production, has now created sustainability problems, both economical and environmental.

What makes biological farming work? Essentially support of biological basics, increasing and balancing plant-available minerals in the soil, plant diversity, while creating an ideal home for soil life and feeding it well,

managing soil, air and water and supplying major and trace minerals. To achieve this we have to have a system to measure and manage, (YOU CAN’T MANAGE WHAT YOU DON’T MEASURE).

The Albrecht-Kinsey system of soil fertility refers to the principles used to develop the system of testing of which Dr William A. Albrecht worked to perfect in his decades of tireless work with the soil. The soil audit uses a specific developed set of soil testing procedures to determine and correct the soils’ mineral content, providing the means to measure and supply the needed chemistry for each particular soil and farming system.

Farmers have a tremendous body of knowledge, but there is a need to move from traditional mono agriculture practices to a system that supports the soil to meet the economic and environmental outcomes.

Changing soils and changing minds


T O T A L S O I L F E R T I L I T Y S O L U T I O N S

To o s

Don Hart 027 432 0187 Lydia-Beth Gundry 027 698 9907

Henry Wardell 027 212 0737Duncan Humm 027 228 1073

Farm To Your Full Potential

Better Farming Through Better Soils

Every field, every farm and every farmer is different. We can unlock your farms potential

by increasing and balancing plant available minerals in the soil. We use the proven system of soil fertility that measures and manages to provide customized solutions. We supply and blend only the soil fertility nutrients needed for growing healthy high-yielding and profitable crops and pastures!

Albrecht-Kinsey

IMPROVE YIELDS, SUSTAINABILITY & PROFITABILITY

Changing Soils & Changing Minds

T O T A L S O I L F E R T I L I T Y S O L U T I O N S

To o s

Consignment store for

To make sure you can maximise your production, profit and plant health, contact:

Understanding how to manage water to get the best from your nutrients is critical to farming success. If there is not enough water for a plant, the nutrients it needs cannot travel through the plant. If there’s too much water some nutrients will be wasted to the groundwater.

Trying to work out optimum watering amounts and timings throughout the growing season while working around the weather, as well as keeping an eye on seasonal irrigation water allocation, can test management skills.

AquaCheck soil moisture probes are helping farmers improve their knowledge about their soils, as well as helping maximise irrigation benefits while minimising costs.

Over the past irrigation season Agri Optics NZ has been trialling AquaCheck moisture probes on clients’ farms. Farmers have been using a computer or convenient phone app to check current soil moisture status and infiltration rates, daily water consumption rates and total water used.

The probes measure soil moisture and temperature at 10cm increments along their length, the most popular being the 40cm (four sensor) and 60cm (six sensor) probes, with other sizes available. They can also include an

optional automatic weather station or rain gauge, providing quick and easy on-line access to accurate and timely information about their soils allows the farmer to minimise irrigation costs while increasing pasture production, thereby having a significant effect on farm profitability.

Manage water and maximise nutrients with AquaCheck soil moisture probes

For more information call Agri Optics NZ Ltd.

Phone: 03-3029227, Email: [email protected] or visit: www.agrioptics.co.nz

Manage water & maximise nutrients

NUTRIENT & FEED MANAGEMENT FEATURE

Understanding how to manage water to get the best from your nutrients is critical to farming success. If there is not enough water for a plant, the nutrients it needs cannot travel through the plant. If there’s too much water some nutrients will be wasted to the groundwater.

Trying to work out optimum watering amounts and timings throughout the growing season while working around the weather, as well as keeping an eye on seasonal irrigation water allocation, can test management skills.

AquaCheck soil moisture probes are helping farmers improve their knowledge about their soils, as well as helping maximise irrigation benefits while minimising costs.

Over the past irrigation season Agri Optics NZ has been trialling AquaCheck moisture probes on clients’ farms. Farmers have been using a computer or convenient phone app to check current soil moisture status and infiltration rates, daily water consumption rates and total water used.

The probes measure soil moisture and temperature at 10cm increments along their length, the most popular being the 40cm (four sensor) and 60cm (six sensor) probes, with other sizes available. They can also include an

Manage water

25www.guardianonline.co.nz FEED & NUTRIENT MANAGEMENT FEATURE


Reading vision treatment for Presbyopic patients is now available with the South Island’s latest precision ZEISS equipment.

PRESBYOND Laser Blended Vision

0800 ZIMMATICAshburton: 25 McNally, Ashburton 7700. Phone (03) 307-2027

Timaru: 81 Hilton Highway, Washdyke 7910. Phone (03) 688-7042

BY LINDSAY

0800 ZIMMATICAshburton: 25 McNally, Ashburton 7700. Phone (03) 307-2027Cromwell: 9 Rogers St, Cromwell 9310. Phone (03) 445 4200

Timaru: 81 Hilton Highway, Washdyke 7910. Phone (03) 688-7042

BY LINDSAY

New Dairy SeasonHave you done a tenancy inspection with your new staff?

[email protected] | www.rtil.co.nz

Call Lucy SmithMethven to Ashburton and South

027 445 2317

Call Rebecca SmithChertsey to Christchurch

027 313 2270

Around the traps

Left: Graham Lowe inspects a newly born calf on his Ashburton Forks farm.

Reiniere Vanleeuwen gets the cups ready for milking on an Anama dairy farm.

Vetlife Ashburton vet Lorna Humm delivers a calf at an Ashburton Forks farm.

Rachel Nicholson is ready for milking at Anama.

Mila Ross right helps out during the busy calving season.

www.ashburton.toyota.co.nz

Phone 307-5830Cnr East St & Walnut Ave, Ashburton

A/H Richard Burns 027 486 7546

DON’T MISS OUT. VISIT TOYOTA.CO.NZ TODAY.FINANCIALSERVICES*Offer is available from 1st July 2015 to 30th September 2015 (subject to stock availability) on any new Passenger Vehicle from participating Authorised Toyota Dealers in New Zealand. The service plan covers parts and labour costs of scheduled service items for 36 months or to a maximum of 45,000km (whichever occurs first under normal operating conditions). The advertised 2.9% (p.a.) fixed finance rate is only available on a ‘Classic Finance Loan’ through Toyota Financial Services with a minimum of 10% deposit for terms up to 36 months. Offer is subject to Toyota Financial Services normal lending criteria. A $350 establishment fee is payable. For full terms and conditions visit our website, www.toyota.co.nz.

RIGHT NOW ON ALL TOYOTA PASSENGER MODELS GET*

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* Terms and Conditions apply. For full terms and conditions visit our website, www.toyota.co.nzOffer ends September 30, 2015


RUT MASTER | INSTIGATOR | HEDGE CUTTING

P: 03 302 3888 M: 0274 803 380 E: [email protected]

BARRY WHITTAKER CONTRACTING LTD.

THE MAINTENANCE MASTER

Fill can be used for:• Around water troughs • Farm track & driveway ruts• Filling trenches • Erosion around irrigation ponds

Innovative Instigator

Digger also available

Removing the build up on the edge of Dairy Lanes, allowing stock to move easier, faster & lanes no longer contribute to

health & feet issues.

NZIPIM Conference

KPMG Launch

Investment in new dairy pays offPrior to 2014 Malcolm Jones’ 450 crossbred cows were milked three times a day through a herringbone shed located on an adjacent family property on the outskirts of Matamata.

“The shed served two herds – my brother-in-law’s which went through in the morning and mine in the evening.

While this worked well for both of us, it wasn’t sustainable long-term and so in 2014 we made the decision to build a 54 bail rotary on our 150 hectare farm.

Malcolm’s existing herringbone was from Waikato Milking Systems and so he was familiar with the company, its products and service.

He believes the Waikato Milking Systems sheds are known to be well designed, robust and easy care and don’t need much servicing.

“We only wanted to have one person in the dairy and so opted for a 54 bail Orbit rotary platform with SmartECRs (automatic cup

removers) and SmartSPRAY (teat spraying).”

SmartSPRAY replaces the need for manual teat spraying - reducing labour and

therefore costs. It also sprays immediately

after milking while the teat orifice is still open, which helps to prevent mastitis

from occuring. “The new dairy was

commissioned in November 2014 and we were pleased with how quickly the cows

settled to the rotary platform.“The new rotary has made

a huge difference to the ease with which we run this farm.

The automatic cup removers and automatic teat spraying mean that one person comfortably milked 450 cows for the balance of the 2014 season and will easily handle 550 in 2015/2016.

“When it comes down to it, you have high expectations of the quality and service you’re going to get when you invest in a new dairy.

Waikato Milking Systems’ has delivered on both counts – their products are well designed, price competitive and robust.

Malcolm has also found that, even though the company has a dealer network around the country, they remain personally committed to ensuring he is happy with every aspect of the operation and that’s important - knowing the company stands behind him.”

2 Farming www.guardianonline.co.nz28 Dairy Focus www.guardianonline.co.nzADVERTISING FEATURE

ashburton guardian, dairy focus, tuesday, august 18, 2015

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