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Bull calves have value – no bull!

In tight times dairy farmers are looking for new ways to add cash to their back pocket and CRV Ambreed believes the cash can often be found in the bull calf. CRV Ambreed’s breeding team manager, Aaron Parker, says a bull calf could provide an extra $4,000 upfront if they are suitable for CRV Ambreed’s breeding programme. A proven bull can provide an additional $7,000 in income from graduation payments – sometimes more if a royalty option is chosen. With calving now underway, this source of extra income could be dropping in the paddock right now. However, Parker says the financial benefits are just one spoke in the wheel. New Zealand dairy farmers will only be competitive long-term with greater genetic diversity and advancement across the national herd. “CRV Ambreed is future focused and we’re building our portfolio to suit the broad range of environments, conditions and farming systems that our clients will be operating within in years to come,” Parker explains. “While elite bull calves are more commonly sourced through contract mating, stud breeders and our embryo transfer programme, it’s the open market – farmers nominating their bull calves for our breeding programme – where the more unique bulls are discovered,” he says. Legacy Friesian bull Firenze and current Jersey star Murmur are two examples of where farmers have offered bulls to CRV Ambreed through the open market, which have not only gone on to reward their breeders, but also the dairy industry as a whole. In the end, Parker says the more bulls in CRV Ambreed’s breeding programme, the greater genetic diversity and the higher genetic gain for New Zealand’s entire national herd. “Every New Zealand dairy farmer benefits by having a herd that produces more high value milk and lasts longer,” he adds. “Farmers we haven’t worked […]

Dairy modules hitting the spot for DWN members

Dairy Women’s Network has received feedback on how its latest professional development offering is being perceived by its members – with impressive results. The network launched its new Dairy Modules programme for the first time in November 2014 and has since had the programme evaluated by the renowned Net Promoter Score system, confirming world class standard. In the past eight months, with the help of its partners, Dairy Women’s Network has delivered free modules on negotiating fair contracts, goal setting, rostering-on-farm, better use of smartphones, budgeting, animal welfare and calf rearing to more than 100 participants in 41 different towns throughout rural New Zealand. The independently rated modules have received excellent scores using the Net Promoter Scores system, which are measured from -100 to 100+ with the Network’s various scores sitting between 53+ to 70+. Dairy Women’s Network chief executive Zelda de Villiers said a score of 30+ is considered “good”. “The three reports that have been completed on smartphones, goal setting and animal welfare, have resulted in upper echelon scores which we are really thrilled about,” she said. “It is particularly heartening to read many verbatim comments from participants in the reports saying things like: “what I have learnt today is unbelievable”, “excellent presenters” and “very informative and motivating to continue on”. “Given that our organisation’s vision is to support and inspire women to succeed in the business of dairying, we are very proud of these results.” The modules replace the organisation’s previous professional development programmes called Dairy Days and Financial Days – nationwide roadshows which ran annually from 2005 to 2014. “In comparison, Dairy Modules are developed with the members’ knowledge of on-farm training needs to ensure the training is practical, farm-focused and developed and delivered by farmers for farmers in a way in that our members prefer […]

Expert’s visit fruition of relationship cultivation

In the picture: BPRC Director Professor Travis Glare with Dr Meng Zhang. Feijoas and Kiwifruit have been on the menu as Lincoln hosted a plant specialist recently to initiate closer working ties around food production with a Chinese province of 90 million people. Feijoa expert Dr Meng Zhang, of Southwest University of Science and Technology (SWUST) in Sichuan Province, spent a month with Lincoln University and the Bio-Protection Research Centre (BPRC) at Lincoln specifically to learn more about New Zealand horticulture production systems, biological protection and bio-control. The visit comes a few months after SWUST’s President, Jun-bo Wang, and Director Guan-zhi Zhang, were in Lincoln as part of a large Sichuan trade delegation intended to further extend co-operation between the two institute. Dr Zhang has setup new collaborations with BPRC Director, Professor Travis Glare, and Senior Scientist, Dr Robert Hill through the hosting. Lincoln University Business Development Manager, Dr Samuel Yu, says Sichuan province has a population of 90 million, with fertile grounds and a good climate for growing agricultural produce. “The province has over 10,000 hectares of land growing red centred Kiwifruit and production has been sensitive to PSA attack and pollination,” Dr Yu says. “Bioprotection techniques could assist farmers that struggle to control PSA, and the Bio-Protection Research Centre has a lot of expertise in this space.” This visit is part of the 2015 China-New Zealand Scientist Exchange Program funded by the Chinese Ministry of Science and Technology and the New Zealand Ministry of Business, Innovation and employment. SWUST have a good relationship with Lincoln which started over 10 years ago through now retired Lincoln lecturer Michael Morley-Bunker. Dr Zhang also met with a range of Lincoln’s staff, such as the international recruitment team’s Patrick Yeung and Anna Soboleva to explore Study Abroad opportunities and Lincoln Agritech […]

More days in milk worth $11 million

Short gestation dairy genetics is expected to generate more than $11 million in extra milk production for New Zealand farmers this spring. LIC experienced unprecedented demand for its extended range of short gestation genetics last mating season (Sept-Dec 2014), for its ability to naturally deliver offspring up to 10 days early, bringing late calving cows forward and increasing days in milk. The farmer-owned co-operative, which breeds around three-quarters of the country’s dairy cows, had previously been researching the genetics solution for more than 15 years on behalf of its farmer shareholders. As a result, an estimated 148,613 calves are due to be born an average 7.5 days earlier this spring, and those animals will have a big impact on a farm’s bottom line says Malcolm Ellis, LIC’s SGL breeding programme manager. “Seven or eight days are pretty significant for a farm’s calving pattern and production, especially in these times of lower payout – because the sooner the cow calves, the sooner she’ll be back in the shed making milk. “Cows that calve early can provide a range of benefits to the farm but ultimately it means more money for the farmer and let’s be honest, I’m sure they could all do with a bit more of that at the moment.” The cows will also start cycling earlier and get back in-calf quicker, Ellis said, providing flow-on benefits beyond than the current calving period. He calculates the extra days in milk to be worth up to $11.2 million in milk production this spring, or $75.60 per cow based on the opening forecast milk price of $5.25 per kg milk solids (MS) and the average daily production of a cow at this time of year, 1.92kg MS per day. “Multiply that across 100 cows, and that’s an extra $7500 for the farmer. […]

From city to country to DWN coordinator

It was the call of the land that saw Dairy Women’s Network’s newest staff member pack up her family from living the city life and head back to the family’s 830-cow dairy farm. Melissa Sinton, who has just taken over the role of DWN regional convenor coordinator for the lower North Island, was working in pharmacy in Rotorua three years ago, when she was encouraged to come back to the family farm in Arohena, south east of Te Awamutu. “As a mum of three young boys, it was an opportunity that was too good to pass up. Moving back to the farm was definitely something I did for myself, but more so for my family,” she said. So leaving behind her job and her studies in conservation and biodiversity, Sinton and her three sons Trae (13), Kaine (10) and Quinn (9) moved to her parents Vaughan and Tracy Sinton’s property Kennavara Farms Ltd. where Melissa started as a farm assistant and has since met new partner Roger. “I’ve really loved being back home and on the farm. It has opened up my eyes and given me an appreciation and understanding of the kinds of challenges that farmers face today – there are a fair few more pressures than there were when I was growing up,” she said. “I’ve had the full experience of getting up to milk the cows in the morning, getting in late at night and trying to raise a family at the same time, but it’s been good.” Melissa’s children are fifth generation on the farm and at Arohena School where she is also the Board of Trustees chair. With her newfound occupation, it wasn’t long before Melissa heard about Dairy Women’s Network and decided that the organisation’s philosophy of inspiring and supporting women to succeed in […]

FAR Graduate Programme applications due

Applications for a place on FAR’s 2016 Graduate Programme close next week (Friday 31 July). This cropping industry programme, for agriculture, agricultural commerce and science graduates was launched a year ago with the aim of introducing graduates to FAR and to the New Zealand cropping industry. Successful applicants spend a year with FAR, working on research, extension and communication at research sites across New Zealand and Australia. The first two award winners, Hannah McCulloch from North Otago and Angus McKenzie from mid-Canterbury, have been with FAR for nine and five months respectively. The pair, who are both Lincoln University graduates, spoke at FAR’s Conference in Ashburton this week outlining their experiences to date of working in the field, developing research projects and helping to plan extension programmes. Both recommend the programme whole heartedly. FAR CEO Nick Pyke says the work programme for the graduates has been designed so that at the end of the 12 month period, they will have developed a strong knowledge of all facets of the New Zealand cropping industry, allowing them to make an informed choice about their preferred career pathway. Depending on opportunities available at the time, this may be with FAR or elsewhere in the cropping sector. Applications for the inaugural FAR Graduate Programme close on Friday 31 July. Further information and application forms can be found on the FAR website, or by contacting Mel Bond at FAR.

GMP Dairy to develop Chinese market further

In the picture -From left to right: MP Jami-Lee Ross, Evergrande Dairy Chairman Mr Xu Wen, Economic Development Minister Hon Steven Joyce, Economic and Commercial Counsellor of the Chinese Embassy in NZ Mr Zhang Fan and Korea Trade Commission Business Manager Ms Kim Kelly. The current dairy business climate is both challenging and promising, because regulations on infant formula are still very sticky and unclear. However, Evergrande Group’s investment into GMP Dairy Limited’s business has given the company more opportunities. Evergrande Dairy chairman Mr Xu Wen has mentioned before the group, which had turnover this year of 131.5 billion Chinese Yuan and has 475 billion Chinese Yuan in assets, was attracted to invest in New Zealand because of its strong reputation for food safety. Evergrande has a large team in China to provide innovative marketing and distributing strategies, which has given GMP Dairy Limited more confidence in developing the China market further. On the 12th of June, 2015, GMP introduced their premium infant formula brand, Opobaby, at the Aotea Centre, Auckland Town Hall. Economic Development Minister Hon Steven Joyce, MP Jami-Lee Ross, Economic and Commercial Counsellor of the Chinese Embassy in NZ Mr Zhang Fan, along with Evergrande Dairy Chairman Mr Xu Wen officially launched Cowala Superpremium Opobaby Infant Formula. Evergrande Group is a massive Chinese conglomerate, which started out in real estate and has diversified into a range of other businesses including fast moving consumer goods. In October, Evergrande launched its infant formula brand Cowala in China where it made its first appearance in a Chinese Super League football match when the successful Guangzhou Evergrande team, part-owned by Alibaba boss Jack Ma, wore Cowala baby formula-branded shirts. The team officially launched the new Opobaby brand in China after a match late last month. A unique competitive point of difference […]

Insufficient competition for dairy industry deregulation

Competitors of Fonterra Cooperative Group, the country’s largest dairy processor, claim there’s still insufficient competition to deregulate the industry. In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors either want the status quo or the regulations tightened. Farmers lobby group, Federated Farmers, says the Dairy Industry Restructuring Act 2001(DIRA) will need to be amended if it’s retained long-term. Fonterra’s submission generally supports the process and methodology suggested in the commission’s consultation paper and says it will comment separately on substantive issues raised by the review. The cooperative said the commission should consider the full period since the DIRA came into effect rather than the most recent five years, and that it was particularly important to examine the entire “life cycle” of entry and growth of independent processors. Among the issues under investigation is whether the DIRA competition thresholds have been met. The current threshold frees Fonterra from its obligation to supply milk to smaller competitors once at least 20 percent of supply is taken by competitors in both the North and South Islands. Fonterra currently has an 86 percent share of the nation’s milk pool, down from 96 percent when it was set up in 2001. In its submission, Westland Milk Products said it had successfully attracted milk supply from dairy farm conversions but had been less successful in wooing existing Fonterra suppliers to switch. Only a quarter of its Canterbury shareholders are ex-Fonterra and it said Fonterra’s actions to secure supply are contrary “to the purpose and principles of the Act”. “We are concerned that actions employed by Fonterra in response to competition for milk supply at the farm gate demonstrate that Fonterra has used, and has the potential to continue to use, its position of dominance to restrict competition […]

Sustainable Foods Summit Highlights Key Industry Concerns

London – The food industry needs to take greater steps towards sustainable development. This was one of the key messages from the Sustainable Foods Summit (www.sustainablefoodssummit.com), hosted in Amsterdam in June. Soil fertility, carbon management, regulatory framework, and sustainable food production were stated as major areas of concern. The importance of soil fertility for sustainability was expressed by Professor Pablo Tittonell from Wageningen University. He showed how soil fertility has a direct impact on plant and animal health. He called for sustainable farming practices to improve nutrient quality in soil. A similar message was echoed by Tobias Bandel from Soil & More: improved soil structure produces lower water footprint, greater nutrient quality, as well as carbon sequestration. Dominic Watkins from DWF highlighted the regulatory uncertainty in the European food industry. With fears of a Grexit and the UK holding an in-out referendum, it was not clear what the EU would look like in a few years, let alone the regulatory landscape. He believes the Transatlantic Trade and Investment Partnership (TTIP) could escalate food trade between the US and EU. However, a major challenge is harmonisation since there was ‘a huge chasm’ in regulations between the two sides. According to Wessanen, the future of the food industry lies with sustainable foods. By the use of food pyramids, Laurence Beck showed how the healthiest food has the lowest environmental impact. She stated the strategy of her company was to focus on organic and health foods. As part of this strategy, it had acquired Clipper, Alter Eco and Isola Bio in recent years, and was looking for similar such companies. The food industry needs to act if it is to avert a carbon crisis. This was the message from Craig Sams, founder and president of Green & Black’s, in his keynote. He […]

Lessons from the GFC farmers can use to bank more effectively

There are good lessons to be drawn on from the global financial crisis (GFC) for dairy farmers in managing volatility and getting the most from their banking relationship, says Hayden Dillon, Head of Corporate Agribusiness and Capital Advisory for Crowe Horwath. Major rural banks were expected to support their dairy clients despite many farm budgets indicating negative cash flow positions for the coming year, he said. And post-GFC, banks had undergone significant reforms and were now well-positioned in terms of access to capital. “It’s critical to note that major rural lenders do not assess the viability of farms based on last year’s or next year’s pay-out,” said Mr Dillon. “Banks are acutely aware of the market they operate in, which will sometimes see their customers run cash deficits due to volatility.” Because of that, the banks used averaging, known generically as a “sustainable year,” to assess a farmer’s ability to service and repay debt. With that in mind, farmers should pay attention to three key themes to get the most from their banking relationship, said Mr Dillon. These were: Understanding that their normalised costs are, and being able to justify those costs to their banker. Having accurate information on hand and a process to make decisions quickly and effectively when faced with major events, such as drought, flood, change in milk price, or in the cost of inputs. Understanding the potential ramifications of their banker making assumptions on the farmers’ behalf, as opposed to providing assistance and advice. In good pay-out years farm costs invariably increased, but when things got tough, farmers were also good at tightening their belts, said Mr Dillon. “Unfortunately for those with leverage it’s not good enough to just say you will cut costs when talking to your bank.” While banks would draw considerable comfort from […]

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