Dairy

Secondary school students within the Waimate and Waitaki Districts have been invited to apply for the Oceania Dairy Scholarship. The annual scholarship was launched last year and Dion Batchelor, a former Head Boy of Waimate High School, was selected as the inaugural recipient. The scholarship provides the successful applicant with an annual payment of $3,000 for up to three years, as well as the opportunity for paid work experience during study or training breaks. Oceania Dairy circulated application forms for the 2016 scholarship to the principals of all schools within the Districts this week. “The scholarship is an important part of our commitment to the communities in which we operate,” said Roger Usmar, General Manager of Oceania Dairy. “We are encouraging an organisational culture of investing in people and supporting local communities. “We can think of no better way of demonstrating that culture by supporting young people as they move from secondary school education to further education or training,” he said. The Oceania Scholarship is available to young people within the Waimate and Waitaki Districts who are completing their secondary schooling and about to move into further education or training next year. The scholarship targets education or training that can lead the recipient into a career in the dairy industry or that has the potential to enhance relations between New Zealand and China. Applications for the 2016 scholarship close on 30 November. The successful applicant will be announced before the end of the year. 2015 scholarship recipient Dion Batchelor is now preparing for his end-of-year exams towards a Bachelor of Commerce undergraduate degree at Otago University “The scholarship has relieved a huge financial burden as I fund my way through University,” he said. “It has also been great to begin to understand the operations of a successful global company as […]

LIC scientists have discovered new genetic variations which can impact a cow’s ability to carry a calf to full term. The variations are known as Fertility2, Fertility3 and Fertility4, and are carried by about 2% of Holstein-Friesian dairy cows and 1% of crossbreds. LIC chief scientist, Dr Richard Spelman, said it follows the 2013 discovery of Fertility1 in the Jersey breed and concludes 18 months of DNA sequencing research which focussed on fertility and calf survival. “All three variations have the same effect on fertility and calf survival, with origins in the New Zealand dairy cow dairy population dating back to sires born in the 1970s. “These are recessive genetic variations which mean an embryo will be non-viable if both the sire and dam have a copy of the variations and pass them on; even if both parents are carriers, only one in four of their progeny will be affected. “When an animal has two copies of the variations the animal will die in utero. Our research shows that the cow carrying this foetus will then be empty, which means it will not lactate the following season. No live animals have been seen with two copies of the variation.” The farmer owned co-operative, which supplies genetics to breed approximately three-quarters of the national dairy herd, has published a list of its artificial breeding (AB) sires that carry the variations on its website (www.lic.co.nz). The information has also been added to the co-op’s Datamate technology, which its AB technicians use before insemination to check inbreeding potential or any lethal gene combinations with a dam and sire. DataMate will issue alerts to reduce the frequency of matings between two carriers of the variation, as it does already with Fertility1 and other undesirable genes including CVM, BLAD and Small Calf Syndrome. “These variations […]

Beef + Lamb New Zealand’s Economic Service released its New Season Outlook 2015-16 today. It predicts the average sheep and beef farm in New Zealand will see its profit before tax lift to $109,900 this season – 9.6 per cent more than last season, but 3.1 per cent below the five-year average. B+LNZ Chief Economist Andrew Burtt says this is positive news, at a time when the New Zealand economy will benefit from increased farm sector spending. “This season, New Zealand’s 12,300 commercial sheep and beef farmers will spend a total of $4.66 billion on fertiliser, interest, repairs and maintenance and general farm operating costs. This will be welcomed by rural suppliers and communities, particularly at this time.” Much of the extra profit is the result of an 11 per cent lift in cattle revenue, which comes on top of a 12 per cent increase in 2014-15. Meanwhile, sheep revenue is forecast to lift 2.6 per cent, which includes a 4.0 per cent increase in lamb farm-gate prices, to an average of 547 cents per kg. Mr Burtt says international demand is expected to remain strong for beef, while tight sheepmeat supplies in Australia and New Zealand should support prices – although uncertainties remain around China’s demand for sheepmeat. “In this context, the increase in export prices is primarily expected to come from a weaker New Zealand dollar. Over the next 12 months, the New Zealand dollar is expected to weaken against the three major currencies in which New Zealand agricultural products are mostly traded – the US dollar, Euro and British pound. Mr Burtt says extreme weather events last season will affect the production side of the income equation in the new season. “Export lamb production is forecast to decrease by 6.3 per cent in 2015-16. There is a […]

As the fallout from the steep decline in global diary prices spreads, Crowe Horwath agribusiness specialist Haylee Preston is advising dairy graziers to be proactive to avoid being out-of-pocket this coming season. “With budgets under pressure from severely restricted cash flows, dairy farmers are moving to cut costs, with many looking to tweak their farming systems accordingly,” says Preston. “In many farming operations, supplementary feed and grazing are a significant cost when it comes to production,” indicates Preston. “This means they will be some of the most closely scrutinised costs given the current drive to save.” Preston notes some farmers are looking at reducing feed costs by culling out the bottom 5-10 per cent of their herd. “Older cows, late calvers and poor producers are being culled, reducing the number of cows on the milking platform. This allows more intense farming systems to cut back on supplemental feed costs”. This reduction in the number of cows may mean some dairy farmers will have the ability to winter more stock on-farm, leading to a reduction in demand for off-farm grazing. “There could be a 20 – 25 per cent reduction in cows needing grazing for the 2016 winter, due to more self-sustaining dairy systems and the heavy culling of herds, especially with the favourable beef schedule at the moment,” says Preston. It’s not only the milking herd which might not be heading off the farm for grazing. Preston says “by reducing herd numbers, more farmers may also look at carrying through their young stock to 18 months themselves to cut costs rather than off-farm grazing”. Preston herself is in the dairy support industry and is advising fellow graziers to speak to their agent or herd owners sooner rather than later to understand their requirements for 2016 winter grazing. “It’s important to […]

While wholesale milk prices may be on their way up, we need to be aware of “retailers’ revenge”. Lincoln University Agribusiness and Food Marketing Programme Director Nic Lees says two things need to happen for the market prices to recover to anywhere near previous levels. “Retail prices need to fall to stimulate consumer demand and global supply needs to be reduced. Both of these take some time to occur. “We are starting to see the milk tap being turned off with farmers’ globally selling cull cows and reducing supplement, and plans for future expansion and conversion are being put on hold.” Low prices are hurting farmers everywhere, for example recently we have seen German dairy farmers driving tractors up to the Bavarian State Chancellery to protest low milk prices. However, he says, over the last six months retailers in New Zealand and internationally have been recovering from the squeezed margins that occurred in 2013 when wholesale milk powder prices were high at over NZ$ 8000/tonne — many manufacturers with retail brands, and the retailers, were losing money over this period. “They are now trying to recoup their losses (with lower, but rising wholesale prices) by holding the retail price, and their margin, for as long as possible, slowing a rise in demand. This is why consumers haven’t seen a major fall in the price of dairy products in the supermarket yet. “When commodity (wholesale) prices are high producers of consumer branded products tend to suffer. When prices fall they exact their revenge by holding retail prices for as long as possible to recoup the losses.” Consumer prices are only just starting to fall so it will take some time for consumers to start drinking more milk, and consuming more cheese, yoghurt and other products, Mr Lees says. New Zealand is […]

By Phil Beatson – Genetic Development Strategist at CRV Ambreed Albert Einstein once said the definition of insanity is doing the same thing over and over again and expecting different results. The need for change in the dairy industry has prompted me to revise an article I originally wrote back in 1999 that is still very much relevant today. When it comes to the ongoing economic welfare of today’s farmers – the backbone of New Zealand’s largest industry – all sectors must work together to create change. As history demonstrates, without change, we will continue to get the same results. In 1999 the payout was at $3.42. Back then, I stated that unless growth in production was controlled and emphasis placed on consumer products, farmers faced a payout of $3.10 (in 1999 dollar terms) by 2017. The fact that $4.40 today translates to $3.01 in 1999 dollar terms has prompted this contribution. In a nutshell: I believe no one should be unduly surprised by the dairy payout being in the $4-$5 range, although this season’s $3.85 payout is a record low in CPI adjusted terms. After all, in 14 of the last 22 years (if next season’s projected payout is considered), the CPI-adjusted payout has started with a $3, $4 or $5. As illustrated in the accompanying graph, in only six of the past nine years and in two seasons at the beginning of the century has the payout started at $6, $7 or $8. Source: Dairy Statistics 2014. 2015 and 2016 values are Fonterra’s forecast payouts. These recent ’high’ payouts have been solely due to China’s demand while those in 2001 and 2002 were due to America diverting grain from dairy to biofuel production. This trend has simply continued the long-running erosion of the payout; back in the 1950s […]