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Dairy FocusOCTOBER, 2015

TPP

AUSTRALIA

SINGAPORE

VIETNAM

MALAYSIABRUNEI

JAPAN

NEW ZEALAND

CANADA

USA

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THE TPPWhy it’s a game-changer

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

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TPP – Lincoln professor Crawford Falconer 3

TPP – Politicians 6

TPP – The Devil is in the detail 7

Lincoln University Dairy Farm and new action plan 8

International Dairy News 10

New Zealand News Briefs 12

Around the traps 17

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PostAshburton Guardian, PO Box 77, Ashburton.

COMMENT FROM EDITORINDEX

FARMING STUFF-UPS

In the small part of the world we occupy, our island adrift mentality often allows inflated ideas of our true weight on the global stage.

We cannot compete with monolithic countries hell-bent on protecting their own – nor should we.

Recently, the UK Government granted Scottish dairy farmers a $4000 per cow one-off payment because of the downturn their industry is weathering.

This, on top of other subsidies available, make their primary industries and the idea of business profitability laughable.

For too long we have had to play on an uneven field against such farmers where David does not beat Goliath because Goliath has too much cash in his back pocket.

However the China free trade agreement has significantly and permanently altered our mindset. We are focused on the emerging Asian market and more than ever we are focused on free trade.

So the idea that we can somehow survive without these agreements from those who oppose the Trans Pacific Partnership is flawed and naive.

Trade Minister Tim Groser is

right when he says you’re either on the bus or you are an idiot.

We are a standalone nation – something we should be proud of. Our businesses survive and fail by their own hand. The TPP has given us another hand.

It may not be perfect (trade agreements seldom ever are) but any free trade deal is a good deal for New Zealand.

Just as we are intensely negotiating a change of protocol in China at the moment to allow exports of chilled meat, so will we continue to barter from this starting point.

But let’s be clear here – free trade is not our enemy and whether you like it or not, the old saying “what’s good for the farmers is good for the country”, still rings true.

Nadine Porter

RURAL REPORTER

Tweet us @farmjourno

Any free trade deal is good for NZ

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He’s as experienced as they come in terms of negotiating trade deals.

Back in New Zealand after a hiatus in Paris as an overseer for two major research streams on services trade restrictions and the creation of value added in global value chains for the OECD, Professor Falconer has been perplexed by negative reactions to the Trans-Pacific Partnership (TPP).

“I was driving around Lincoln University when I first came back and even out here there were anti-TPP demonstrations at 3pm in the afternoon.”

Having managed all of New Zealand’s trade negotiations between 2009-11 as a senior trade official, he questions why the Government didn’t attempt to do a better job of translating what this deal and other free-trade deals mean for the average Joe Bloggs.

continued over page

TPP a game-changer – professorTPP

Former senior trade official and OECD trade leader Professor Crawford Falconer tells Nadine Porter why the Trans-Pacific Partnership is a game-changer and why the Government doesn’t get a pass mark for communicating what free trade means for all New Zealanders.

Professor Crawford Falconer, former New Zealand senior trade official, believes the TPP is a game-changer.

Nadine Porter

RURAL REPORTER



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done to explain so there was an “ordinary understanding” of what’s at stake and then scaremongering and paranoia had a rational response, he believes.

“For townies it has to be explained … the reason this matters is because that’s how we earn the income that enables us to import the clothes we wear, food and electronics.

“If we want to import we have to export and if you don’t generate wealth you don’t have tax income to enable Pharmac to buy the medicines for you.

“Where do you think the tax income comes from? It comes from productive competitive businesses. It gets redistributed by social policies and that’s how you can afford this stuff.”

The Lincoln University Trade and Global Value Chains professor says those explanations can’t be done during parliamentary debates but instead have to be undertaken regularly.

“I think it’s partly taken for granted (that New Zealanders support free trade) – I do think this ridiculous level of secrecy was counter-productive.”

Professor Falconer believed there had not been a trade deal as significant as the TPP since China joined the World Trade Organisation.

“In trade terms this is big. I mean, quite apart from what it means for New Zealand, this is a game-changer because

for the first time there’s been an economically significant deal that’s actually been put together.”

This would now create the possibility that other deals could happen, he said.

“People will sit up and pay attention and think they should get their own house in order.”

It is a dynamic exercise that will become the basis of momentum for other economies to be involved and

New Zealand will be at the centre of it.

“I don’t even think it will just evolve internally, but it will expand and there will be further negotiations – at least we are inside the tent. Strategically that is really important at this time.”

While the dairy outcome might have been “mediocre” at present, it could change over time.

“Who knows – you get some products duty free

and over time it suddenly becomes hugely significant and becomes a huge win. I remember years ago negotiating beef access to Korea and no-one was selling beef into Korea back then.”

It was a hugely positive deal encompassing 93 per cent duty-free exports for New Zealand overall which was a good amount, he said.

“If I had a decent sharebroker I’d be trying to find out who I should be investing in, particularly in the Japanese market with

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TPP

something like meat – that’s going to be significant.”

Efficient producers will do well out of the TPP despite the dairy situation.

“There are a lot of pluses here – in this negotiation you are negotiating with two of the most protective dairy countries in the world – the US and Japan – and nobody else in that negotiation was the least bit interested in access to dairy. Australia should be but it isn’t – would you then be that surprised when you negotiate with

that group that you haven’t managed to get them to open up their markets?”

Professor Falconer said the deal marked a strategic shift and it had engaged the United States in further liberalisation.

“That was part of the problem of why nothing got done with the WTO.

“A lot of people were sceptical as to whether we could ever deliver. But with the TPP the US can actually act for a while.”

While there may be a dormant period in the States

during upcoming political elections, the agreement would prove motivating to further liberalise around the world.

“And that’s what matters to us because they will do a deal with the European Union at some stage.

“That’s where the world will move and that’s why this is strategically important beyond even the commercial market implications.

“You don’t want to be outside that. You want to be at the heart of it. That’s

how you can move and shake things.”

Although the US was walking the path to liberalisation, they had made a mistake in terms of dairy protection, he said.

“I think sections of their industry are globally competitive.

“They could have really forced change on Japan and Canada and created a precedent for future members of the TPP, but it was easier for them to listen to the protectionist side because

that’s what they have been used to listening to for the past 20 years.”

He did not believe the US dairy industry was inward and said there was plenty of room for them on the global dairy market.

Here in New Zealand being small was a positive as it meant we understood how to survive and what our possibilities were, he said.

“When you’re big you take things for granted and you blunder around from time to time because everyone gets out of your way.”

New Zealand dairy farmers had treated the world market as something they had to develop to make money out of; whereas, in places like Europe, they have not changed their mindset.

“Sometimes we don’t realise the reason we are doing relatively well is because we are treating these TPP markets as markets to develop, not some residual place where we dump our surplus because we can sell it domestically. That’s a huge advantage and a different mindset.”

Far left – Prime Minister John Key is hoping the TPP will mean more golden handshakes with Fonterra CEO Theo Spierings long term.

PHOTO ASHBURTON GUARDIAN

Left – US politics might hold trade liberalisation dormant in the short term, but the TPP will give them motivation to continue down that path, according to Professor Falconer.


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TPPWhat they say:

By NadiNe Porter

While the TPP was not exactly what was wanted for the dairy industry, it was

still significantly better than our current trading conditions.

“I’m very excited about the prospects for the dairy industry in the future. We export 95 per cent of what we produce and we came back with a very positive deal for the primary sector.”Mr Guy said the

12 countries included in the TPP made up a

third of the world economy and encompassed 800 million consumers including the number one economy (United States), number three economy (Japan) and the 11th largest economy in Mexico.

“These are hugely important markets for us.

“If you think about the United States – we have been trying to get a free-trade deal with them for about 30 years.”

It was a significant agreement for the primary sector and while there were only small wins for the dairy industry in infant formula, ice cream, Eggmont cheese and skim and whole milk powder, these will increase over time into very important and lucrative markets into the future, he

said. “Ultimately it will be worth $2.7 billion by 2030.”

Mr Guy said New Zealand had achieved well beyond what was predicted when they secured the free-trade agreement with China and the TPP had the potential to be even more successful.

“Now we will have a level playing field with the likes of customs, food safety and bio-security.

“Instead of our products sitting on the border from time to time – that won’t happen. There will be significant savings in terms of bureaucracy and compliance for our exporters and ultimately that flow back inside the farm gate.”

Labour leader Andrew Little says the Trans-Pacific Partnership appears to fail four out of the party’s five bottom lines for supporting the deal.

The Labour Party will meet Trade Minister Tim Groser today to get its first briefing on the 12-nation trade deal.

Mr Little said Labour’s position would not be clear until the full text was released after 30 days, but from the details released so far, it did not appear that his party could back the TPP.

Only one of Labour’s bottom lines, the upholding of the Treaty of Waitangi, had been met.

Mr Little said the TPP deal appeared to fail the other

bottom lines - the protection of Pharmac, the ability to regulate in the public interest and to restrict sales of residential property and farmland, and meaningful gains for dairy farming.

He said a Labour Government would flout the trade deal by banning non-resident purchases of residential property or farmland. He was confident discussions would not divide his party, which includes several MPs who favour free trade.

Mr Little said if his party ends up having a scrap with other TPP parties, on issues such as restricting foreign ownership of New Zealand land, then it will do so.

“It would go to the TPP commission first, the interesting thing there of course is what would Australia say, or Malaysia, or Vietnam or countries that have the very sort of restriction that we intended to enact here in New Zealand?

“So we will have that argument because we know that not every TPP country would support challenging us about it.”

Asked if that includes pulling out of the TPP, Mr Little said his party would always reserve the right to do so.

“In the end you know every government’s duty is to act in the best interests of its people, of its citizens

and we will do that, and if it means that we would have to do things that would be in breach of the TPP, because we wouldn’t walk out of it, we would do those things.

“If we have opportunities to renegotiate things that are less favourable to us, we will.” – NZME

MINISTER OF PRIMARY INDUSTRIES NATHAN GUY

LABOUR LEADER ANDREW LITTLE


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TPP ■ The countries participating cover 40 per cent of the

global economy ■ Countries included: New Zealand, Singapore,

Brunei, Chile, United States, Japan, Canada, Mexico, Australia, Vietnam, Malaysia and Peru

■ Eliminates 93 per cent of tariffs in New Zealand trade to be eliminated

■ Estimated $259 million savings to exporters in NZ annually

■ Estimated $2.7 billion in savings to exporters in NZ by 2030

■ $20 million will be wiped by NZ Government on imported tariffs each year

TPP – THE FACTS:

■ Beef: Tariffs on all TPP countries eradicated apart from Japan where it has been reduced from 38.5 per cent to 9 per cent.

■ Cheese: All tariffs on cheese and whey will disappear long term in Japan. One critical cheese tariff in the United States will disappear in the long term.

■ Milk powder: Infant formula tariffs will be eliminated in 10 years in the US.

SOME DETAILS:

The meat industry, the fruit industry, the wine industry, the forestry industry, the manufacturing industry – all of these get the benefits.

– Economic Development Minister Steven Joyce“


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Left – DairyNZ director Alister Body.

Below – Andrew Hoggard.

Employee well-being vital to businessIt is vital employees have a good experience working on farms, according to Andrew Hoggard.

The Federated Farmers dairy chairman was commenting on the Sustainable Dairying Workplace Action Plan which was launched at Lincoln University last week.

It was developed by Dairy NZ and Federated Farmers to assist businesses within the dairy industry to adopt good workplace management practices.

It outlines five pillars farmers should be working towards to have a quality workplace, including balanced and productive work time, fair remuneration, wellness, well-being, health and safety, effective team culture and rewarding careers.

“We need to be able to tell the public at large how our industry is working together.”

Mr Hoggard said having a good experience on farm was key to attracting future employees.

“If we’re throwing a whole heap of money at stuff and

people have a bad experience on farm they are going to tell their mates and it will turn people off dairying.”

The dairy industry had faced “more and more” pressure over the past few years around labour issues, similar to the dirty dairying campaign of 1998, he said.

“The one thing I think we did wrong as an industry back then was sit back and defend too long and not get on the front foot.

“It’s always important to be on the front foot. I hate playing catch-up rugby and too often I feel like what we do is play catch-up rugby.”

The plan aimed to improve everyone’s life on farms and would help encourage better

labour supply, he said.DairyNZ director Alister

Body told those attending the launch that people were a farmer’s most important asset in both good and challenging times.

“Regardless of the business

environment, it’s people that determine the success of our business.”

Dairy farms need to be enjoyable, safe and rewarding places, he said.

Minister of Primary Industries Nathan Guy

applauded the action plan, calling it a “significant document”.

“Industry needs to do more and I support what Feds and DairyNZ are saying. Collectively they are providing the services and documentation to make it easier for farmers to make a change because we need to make a change.”

Farmers needed to do more to connect with the community and needed to be seen as great employers, he said.

“I sum it up as the social licence to operate.”

Agriculture needed to attract another 50,000 employees in the next 10 years with over half needing to have tertiary or level four qualifications to meet the increasingly sophisticated technology present in farm systems, he said.

“We think this is a great first step.

“We all need to get on board and do more in this space and collectively it’s hugely important for the NZ economy that we do.”

Nadine Porter

RURAL REPORTER



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Around the trapsLincoln University Dairy Farm Focus Day


INTERNATIONAL DAIRY NEWSUK

Farmers don’t know about dry cow therapyA survey of more than 200 UK dairy farmers by Farmers Weekly and animal health company Zoetis found only 68 per cent of farmers have heard about selective dry cow therapy, with three-quarters of Arla suppliers having heard about it. As part of its Arlagarden quality assurance programme, from October 1, Arla requires all of its producers to discuss and agree with their vet the use of antibiotics in their dry cows and make a move to using selective dry cow therapy.

Genetic defectsDairy farmers worried about a genetic anomaly in holstein cattle, which causes calf deaths and was first detected this year, can now use a genetic tool to help prevent the defect from being introduced into the herd.

Haplotype cholesterol deficiency (HCD) was first discovered by German research scientists this summer and has been traced back to the prolific

North American sire Maughlin Storm.

When the defected gene is inherited from both parents it causes loss of appetite and body condition in calves, combined with chronic/prolonged diarrhoea that is unresponsive to medical treatment, which eventually leads to death between three weeks and six months after birth.

Australia

Biggest dairy farm on the market

Australia’s biggest dairy farm operation is being put on the market by its Kiwi owners.

The Van Diemen’s Land Company (VDL) in Tasmania is Australia’s oldest and largest dairy farming business and is owned by the New Plymouth District Council.

Administered for the council by Taranaki Investment Management Limited (Timl) the 25 farms are believed to be worth up to $250 million.

Timl chief executive Mike Trousselot has confirmed VDL is up for sale.

“Given all of the positive factors for the business and the sector in Australia, the Timl board believes the time is right to put the asset to the market and has commenced a sales process with its advisors,” Trousselot said.

Genomic projectThe Gardiner Dairy Foundation has launched a

three-year, $3.3 million project, bringing together animal genomics experts to improve the Australian herd.

Gardiner chief executive Mary Harney said ImProving Herds was an imaginative, bold and focused project, which aimed to lead to profitable growth in the industry.

“Over the course of the three-year project, 23 herds will be used to test how profitability is affected by focused bull selections and genomic testing of females,” Ms Harney said.

“Six focus farms will be used to test the impact of data-driven decisions on profitability.”

The project would be led by eminent geneticist, Department of Economic Development, Jobs, Transport and Resource’s Associate Professor Ben Hayes.

Russia

Ban unlikely to be lifted

The Russian ban on dairy imports from a number of Western countries, is unlikely to be lifted until at least 2018, according to Dairy Australia managing director Ian Halliday.

Mr Halliday, who is just back from the World Dairy Summit held in Lithuania, told the Dairy Industry Sustainability Framework consultative group forum on Thursday that Australian dairy farmers should not expect Russia to be back in the market anytime soon.

The Russian ban on food imports from the United States, European Union, Australia, Canada and Norway was imposed in retaliation for Western sanctions on Russia over the Ukraine crisis.

It had led to decreased consumption of dairy products in Russia but also increased domestic production at higher prices.

China

Milk contamination scare

China’s Huishan Dairy Holdings Company has resumed trading after a pause due to allegations of milk contamination.Trading was halted on September 29, so the company could make an announcement on reports that its high-calcium milk products contained excessive sodium thiocyanate.Hebei Food & Drug

Administration had previously said that levels of sodium thiocyanate had exceeded food safety reference values and issued a consumer warning. Sodium thiocyanate occurs naturally in milk at low levels, according to Huishan, but commercially it can be used for chemical synthesis and dyeing.However, Huishan Dairy said in a statement that samples sent out for testing contained levels of the chemical lower than the national reference level. They also found no evidence of sodium thiocyanate contamination on the production line or in the transit vehicles.


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NZ NEWS BRIEFS

US made a mistake with TPP

Fonterra chairman told the NZ Farmers Weekly the United States dairy industry will regret not locking in greater trade freedom through the TPP.

Mr Wilson said dairy exports from the States had reached 15 per cent of production and that was expected to grow by 15 per cent annually.

He said the TPP outcomes for NZ dairy were at best modest and at worst, disappointing.

Sustainable dairying workplace action planThe Sustainable Dairying Workplace Action Plan was launched at Lincoln University last week with Federated Farmers Dairy Chairman Andrew Hoggard saying it was vital employees had a good experience working on farms.

The plan was developed by Dairy NZ and Federated Farmers to assist businesses within the dairy industry

to adopt good workplace management practices.

It outlines five pillars farmers should be working towards to have a quality workplace, including balanced and productive work time, fair remuneration, wellness, wellbeing and health and safety, effective team culture and rewarding careers.

“We need to be able to tell the public at large how our industry is working together.”

Fonterra to ditch GMP

Fonterra will ditch its controversial guaranteed milk price (GMP) scheme at the end of the current season.

The scheme was first offered as a pilot in the 2013/14 season and has continued through to the current season. It is currently set at $5.25 a kg compared with Fonterra’s latest farmgate forecast of $4.60 a kg.

“It is fair to say GMP has had a mixed reaction from our farmers,” Paul Grave, Fonterra’s head of co-operative affairs, Waikato, said in a note to farmers.

“While some have used it to smooth out on-farm incomes, others felt it did not treat all farmers equally and fairly.”

Grave said some farmers will be looking for price management tools to help them with volatility in milk prices.

A2 milk raising capital

Trans-Tasman dairy company, a2 Milk, has completed its $40 million capital raising with new shares set to hit the boards next week, according to Stuff.

The offer was oversubscribed and will add an extra 58.8 million shares to the dairy company’s register, priced at 68 cents each. A2 will also tap investors for an extra $3 million through a share purchase plan.

The capital raising will help the company deepen its expansion across China, the US and Britain, after sales of its Platinum infant formula brand surged higher than expected and are on track to triple from last year.

A2 chief executive Geoff Babidge said the company was struggling to meet demand of its infant formula, saying he often heard from supermarkets, “the product’s on the shelf for five minutes and then it’s gone”.

Wind storms hit South Island

Specialist rural insurer FMG has received 217 wind-related claims with an initial cost of around $680k – after storms hit parts of the South Island recently.

Most claims have been for damage to farm buildings and to people’s houses and property - with around 20 coming in for damaged irrigators. In terms of location, most claims are from the Canterbury region, along with Otago and Southland.

“While these winds have caused disruption, on the whole our farming clients - many of which were also hit by the 2013 storms - have come out the other end ok” says Sean Beattie, National Claims and Service Manager FMG.

“Farmers had good warnings from Metservice which gave them time to prepare. Given this, we’re certainly not seeing the same level of damage as the 2013 spring winds, where we received some 260 irrigator claims alone, at a cost of around $7.6m.

Research says methane research

significant worldwideNew research suggests

advances in methane reduction research would have a global effect because the microbes that cause methane are found worldwide.

The Global Rumen Census project analysed the microbes responsible for methane emissions from a wide range of ruminant animals around the world.

Collaborating with 140 researchers from 73 institutions, the New Zealand-led project found similar

bacteria and methanogens dominate in nearly all rumens across a wide variety of species and animal diets.

The results were published in the open-access journal, Scientific Reports.


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Best track surface materialThere are many publications out there about lameness, and how bad tracks and bad animal handling cause lameness, that we regularly get asked the question “what do you think is the best surface material for tracks?” Even though the claims of the above are, in principle, correct, it seems that most people don’t have a clear understanding of what it is about bad tracks and animal handling that increases the prevalence of lameness.

Often the explanation goes something like this: “When cows stand on stones they get

bruising in their hooves and that makes them lame”.

If you push cows on tracks and they can’t see where they put their front feet then they encounter more stones causing more bruising and therefore more lameness.

When you improve the

tracks and you stop pushing cows you do end up with less lameness and so this theory seems very plausible.

The problem with this explanation is that it is based on assumption and there is no evidence to support it.

I agree that improving tracks and animal handling decreases the prevalence of lameness. But what I am saying is that there is no evidence that the stones are the culprit.

If you are interested in doing a hoof trimming course

with us I can show evidence for the opposite. So, if it is not the stones on the track that is the problem, then what is it?

Well, it has a lot to do with stress. The reason why cows are under more stress on bad tracks is that it takes longer to get to and from the cowshed which means that they spend less time in the paddock doing cow things.

When you look at a well fed herd in the paddock, cows are grazing, drinking, socialising or lying down. This is normal, natural behaviour for a cow.

When cows are walking on the tracks or standing in the yard they are not showing any of that ‘normal’ behaviour. This means that cows are being forced to take on activities that are not natural to them. This, in itself, is not a problem as most cows adapt themselves to that routine, but, if you force them to do it for a long time it will become a problem.

If you have muddy tracks or there are a lot of stones on the track you will find the cow flow a lot slower therefore

this increases the time out of the paddock and places more stress on your cows.

The added stress of pushing cows will make it even worse.

So, when I am asked what surface material I would advise for the tracks I say concrete. Concrete is easy to clean, it doesn’t hold puddles, cows don’t sink into it and it doesn’t need sunshine to dry up.

You may think this is a ludicrous suggestion, but some of our clients that have done it love it.

I know it is expensive, but in the long run it is probably the cheapest option. If you can find a material that is as hardy as concrete go for it.

Just remember – the main aim is to get cows back in the paddock as fast as possible in a stress-free manner.

Fred Hoekstra

VEEHOF DAIRY SERVICES

I agree that improving tracks and animal handling decreases the prevalence of lameness. But...“


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After more than four years dealing in slurry, Matt Lovett has learnt a lot. Using the largest machinery and latest technology Matt Lovett provides farmers with efficient slurry spreading throughout Canterbury.

Slurry is an organic fertiliser which is suitable for all crops on farm. Applied at the right rates it can bring bad paddocks back to life, which other fertilisers have failed to do in some cases. Matt Lovett believes it’s a much undervalued product.

Their large Joskin Euroliner Slurry Tankers (24,000 litres and 28,000 litres) have the capacity to spread as much as one million litres of slurry each a day.

With the two tankers working together Matt Lovett can complete a job within one-to-three days depending on the size of the pond.

The dribble bar makes it possible to lay slurry directly on the ground, at the foot of the plants, without splashing the leaves. The loss of volatile nutrients is also significantly reduced.

Matt Lovett has the ability to go anywhere on farm and is not restricted like other systems.

The tankers have large flotation tyres which eliminates the damage to lane ways, gateways and paddocks. They find the tankers are better with lower rates of application than other spreading systems.

Their umbilical system is good for higher rates of application from green water ponds that have little solid build-up.

They generally deal with slurry and find that the umbilical system contaminates the paddock, covering grass leaf in slurry once the hose is dragged over. They have found it time consuming and messy.

This year they acquired a Joskin Ferti-Space Horizon Muck Spreader designed to spread different products including dry slurry, compost, organic waste, lime, wood chips and poultry manure. It can spread large widths.

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machine able to carry more than 28 cubic metres. They are also able to supply certified organic, weed-free compost, which contains slow-release nutrients.

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Matt with kids, Emily and Lachlan. Tankers applying slurry to maize ground.


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Speakers promise global perspectiveIrrigationNZ is excited to announce the first three guest speakers for next year’s biennial conference and expo which will be held in Oamaru between April 5-7.

Between 400-500 people are expected to attend the three-day event which is being sponsored by principal partners Anderson Lloyd, ANZ, Monadelphous, Network Waitaki and Waterforce.

The first three speakers hail from North America, Australia and Wellington and will bring global perspectives on evolving water user management and its implications for New Zealand, says IrrigationNZ CEO Andrew Curtis.

Julian Cribb, Dr Christopher Neale and Peter Biggs are all big-picture thinkers who will stimulate and challenge current industry thinking, Mr Curtis said.

Julian Cribb is an Australian author and science communicator and Fellow of the Australian Academy of Technological Sciences and Engineering.

His internationally-acclaimed book, The Coming Famine (2010) explored the question of whether we can feed 10 billion humans this century.

His new book, Poisoned Planet (2014) looks at the contamination of the Earth system and all humanity by man-made chemicals and what we can do about it.

Dr Christopher Neale is director of research for the Robert B. Daugherty Water for Food Institute at the University of Nebraska and Professor in the Department of Biological Systems Engineering at University of Nebraska-Lincoln.

Dr Neale has over 25 years of experience in irrigation water management and

applied remote sensing to agricultural and natural resources.

Finally, by popular demand,

IrrigationNZ has brought back Peter Biggs, former CEO of Clemenger BBDO/Melbourne who presented

at a workshop session at IrrigationNZ’s 2012 conference in Timaru.

Peter has recently returned to New Zealand after leading Clemenger BBDO/Melbourne, one of the top five advertising agencies in the world.

Before taking up his appointment in Melbourne in February 2006, he was managing director of Clemenger BBDO in Wellington, New Zealand. During his time at Clemenger BBDO/Wellington, the agency was New Zealand Agency of the Year in 2002 and 2004, and he was chosen as agency chief executive of the year in 2003.

More information about the 2016 IrrigationNZ Conference and Expo can be found at www.irrigationnz.co.nz/conference or by emailing or phoning Chris Coughlan on [email protected] or phone 03 341-2225.

Andrew Curtis is chief executive officer of

IrrigationNZ

Andrew Curtis

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Dairy’s contribution to the WaikatoProvisional figures for the 2014/15 dairy season, released at recent DairyNZ Annual General Meeting (AGM) in Morrinsville, show $2.4 billion worth of milk was produced in the Waikato.

This is $1.8 billion less than the previous 2013/14 season when the high milk price ($8.47 average dairy payout) boosted the Waikato region’s coffers by $4.2 billion.

Outgoing DairyNZ chairman John Luxton said the 2014/15 season’s low milk price had affected all farms, as owners and sharemilkers strove to remain profitable.

“The value of milk production to the Waikato’s economy is huge – the region takes a big hit when farmers do,” said Mr Luxton.

The Waikato’s 4020 dairy herds produced 518 million kg milksolids in 2014/15, contributing 27 per cent of New Zealand’s total milk production.

New Zealand’s dairy farmers across the country produced 1.9 billion kilograms of milksolids in 2014/15.

Mr Luxton retired at the

AGM meeting, after more than a decade of service to the industry body. He was farewelled in front of an audience of around more than 80 people, which included farmers and DairyNZ board and management.

Minister for Primary Industries, Hon Nathan Guy, attended the AGM and paid tribute to Mr Luxton, presenting him with a certificate in recognition of his contribution to the dairy industry.

DairyNZ chief executive Tim Mackle said Mr Luxton “had been a rock for DairyNZ”, bringing “great mana and leadership” to the organisation. “We are all very appreciative of what you have done for us.”

Three positions on the DairyNZ Board of Directors were also announced – with farmer-elected candidates Ben Allomes (Woodville), Michael Spaans (Te Aroha) and Elaine Cook (Hamilton) being voted in as directors. When the new DairyNZ board meets for the first time in November, one of its first tasks will be to elect

a chairman. In the meantime, the board will appoint an interim chairman. A second election for the Directors’ Remuneration Committee saw David Gasquoine (Matamata) Chris Lewis (Pukeatua) and Gerard Wolvers (Te Awamutu) voted in. Mr Mackle said that DairyNZ had built a powerful base of more than $80 million worth of annual dairy research and development and regional farmer support systems and advocacy. “The 2014/15 season was a tough year, and the year we are in now is even tougher. Our Tactics work for farmers will be a big focus for us in the year ahead.

“In this current financial year we are keeping the priority on research and development as DairyNZ’s biggest spend at $18 million, followed by farm profit at $17 million,” said Mr Mackle.

“Our investment in environmental stewardship and biosecurity this financial year is also increasing, with both areas boosted by 2.3 and 1.5 per cent respectively for 2015/16.”

AVERAGE FARMER CASH POSITION

$ per Kg/MS 2013-14 2014-15p 2015-16fMilk Income $7.69 $5.70 $4.15Total Cash Income

$8.11 $6.15 $4.60

Farm Working Expenses

$4.33 $4.05 $3.75

Interest and Rent $1.29 $1.35 $1.45Drawings $0.77 $0.60 $0.50Net Cash $1.72 $0.15 -$1.10

Source: DairyNZ Economics Group

The milk income is the cash an average farmer is expected to receive per kg/MS basis - i.e. retro payments, advance rate (to May paid June), capacity adjustment, dividend less the DairyNZ levy.

Total cash income includes the milk income, plus net livestock sales and any other cash income.

Net cash is prior to tax.


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For Silver Fern Farms it was a decision based on survival

By the time this publication comes out the fate of Silver Fern Farms will be yesterday’s news.

As a rural reporter it has been an interesting time, with emails flooding my inbox from both sides of the Shanghai Maling debate.

The SFF media campaign has been intense, but so have the voices of shareholders and red meat industry reformists.

Unfortunately the latter two groups are not media savvy – rather than answer questions they have leaned toward lecturing in the form of verbose press releases.

It’s not the way newspapers work – in the interests of reporting “without fear or

favour” we must ask the hard questions.

But putting that aside, let’s talk about a Chinese company called Shanghai Maling – which put a $261 million deal on the table in return for a 50 per cent stake in SFF.

Some shareholders were quick to see the benefits, others not so much, and then there was the dissenters’ camp.

How dare anyone attempt to wrest any control over their beloved co-operative? Their broken, debt-wracked co-operative which has failed to deliver the goods for years.

In good times co-operatives may work; not so when the profit isn’t there. Farmers are not marketers, they lean towards conservative ownership of their companies.

All too often the business plan concentrates on farmgate returns, no matter how much lip service is paid to that old “added value” cliché.

continued next page

Michelle Nelson

RURAL EDITOR

Tweet me @ladyinredbands

OPINION


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For Silver Fern Farms it was a decision based on survivalFrom P18Here’s an idea – how about

leaving the marketing to the experts? In this case, the company who wants branded SFF products, packed in New Zealand to the requirements of its consumers.

Somehow the fact that SFF will continue to operate as a co-operative has slipped off the plate. SFF chairman Rob Hewett and chief executive Dean Hamilton have repeatedly guaranteed the fact, and that jobs will not be lost.

The reaction of some shareholders raises another issue. Would it have been as extreme if the offer had come from a British company, or the US?

Is there an element of red-necked paranoia here? And if so, is it rooted in our colonial past when Chinese gold miners were feared and ostracised?

Get over it! There is, and never was, any “yellow peril” lurking in the wings.

China is not looking to take over New Zealand.

Figures released by KPMG last week revealed the US was the largest overseas investor in land during 2013-14, accounting for 56 per cent of the freehold dairy hectares sold to foreign investors and 26 per cent of the consideration paid.

China accounted for only one of the 24 transactions for dairy land approved by the Overseas Investment Office (OIO). That was the major acquisition of Synlait Farms, which accounted for 12.0 per cent of hectares sold, and 21.3 per cent of consideration paid.

And at the end of the day we are all foreign investors – some of us arrived in waka, others on sailing ships and more recently by air.

Shanghai Maling is not offering a few blankets and a handful of beads. It has put a fair deal on the table.

Partnering with a highly-successful company which

brings with it access to markets otherwise closed makes good sense.

Let’s also keep in mind China invented co-operatives and has been trading for thousands of years – we look like infants alongside that level of expertise.

I’ve been reporting on the red meat industry for a decade. Reform groups have come and gone and the industry is still in trouble.

Many sheep farmers have been forced to switch codes and convert to dairying or arable options to stay afloat.

If SFF and the Alliance Group were going to merge it would have happened.

They won’t – end of story.Why – because no-one has

come up with a sustainable plan for the future of the industry.

SFF doesn’t have a plan B – that point has been made clear. If it is to survive at all, there is no choice but to take up the Shanghai Maling deal.

Left – Silver Fern Farms: Shanghai Maling has put a fair deal on the table.

Investment in new dairy pays off on all counts

2 Farming www.guardianonline.co.nz20 Dairy Focus www.guardianonline.co.nzADVERTISING FEATURE

Prior 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.

“The existing herringbone was from Waikato Milking Systems and so we were familiar with the company, its products and service.

“Their sheds are known to be well designed, robust and easy care and don’t need much servicing – all the ingredients we needed in a new rotary.

“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). 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. I’ve also found

that, even though the company has a dealer network around the country, they remain personally committed to ensuring you’re happy with every aspect of the operation and that’s important - knowing the company stands behind it.”

ashburton guardian, dairy focus, tuesday, october 20, 2015

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