Dairy

New feed blend set to beef up Magnesium intake

A new Magnesium-rich feed blend is being launched to help beef farmers in the fight against Hypomagnesaemia (Magnesium deficiency) and Milk Fever (Calcium deficiency) – potentially deadly and costly problems. Difficult to detect and treat due to the extensive nature of beef cattle, Hypomagnesaemia, can be a major culprit of cow death and complications at calving, with losses of up to 20% reported on properties prone to the problem[1]. Often, the first sign of Magnesium deficiency is death, meaning loss of capital stock between $1,600-2,400 per cow (based on current prices), loss of calf, plus loss of breeding potential in the herd. To help solve the problem, animal feed ingredient supplier, BEC Feed Solutions, is partnering with animal feed manufacturer and blender, James & Son (NZ) Pty Ltd. Together, they’ve developed ‘Optimiser MAG – BEEF’ – a new Magnesium-rich concentrated feed blend, featuring the innovative and highly palatable BOLIFOR® MAG33 product – specifically for beef breeding cow operations. Trina Parker, BEC Country Manager, says awareness is growing about the need for adequate Magnesium in beef breeding cows leading up to calving and for the month post-calving, resulting in increased demand for a convenient, cost efficient mineral supplementation product. “On the back of our success with the Bolifor® range in dairying, we’ve had numerous requests from beef farmers for a low-risk feed blend incorporating high levels of Magnesium,” explains Ms Parker. “Our partnership with James & Son means we can deliver these benefits in the form of ‘Optimiser MAG – BEEF’. And, because BOLIFOR® MAG33 is extremely palatable, a concentrated mineral blend such as this will be readily accepted by the herd” ‘Optimiser MAG – BEEF’ comprises a blend of vegetable and grain by products, BOLIFOR® MAG33, sweeteners and additional flavours and is delivered in 500g per day dose rates. ‘Optimiser […]

Dairy farmers can expect volatility in milk price

While it may not be what farmers want to hear, a Lincoln University expert says price volatility in the dairy industry may be the new normal. Farm Management and Agribusiness lecturer Bruce Greig says prices will fluctuate widely from year to year ‘’as we have seen’’. He says the milk price farmers in New Zealand receive is a result of the demand and supply conditions of milk in the international market. It is a commodity market which exhibits characteristic fluctuations. Dairy farmers may just have to get used to it and implement systems which can cope with these changes, Mr Greig says. A recent Federated Farmers’ survey found dairy price drops, which are down 46 per cent from their peak last February, had led to increased pessimism among farmers about the future. Many were worried about cash-flow, and would have to cut spending and increase debt for the first time for several years. Mr Greig said farmers needed to implement resilient systems which are sustainably profitable at high and low milk prices. “The traditional all grass New Zealand system might be better at low prices, but might also fail to capture the full benefit of high prices when they occur,” he said. He says farmers themselves play a key role. “Farmer capability is more a determinant of profitability rather than the system itself. All systems can be profitable under different conditions, and it is a question about how you manage the risks,” he says. ‘’Therefore your choice of farm system, and therefore cost of production, determines your farm sustainability.” He says the low payout this year is unfortunately accompanied by drought conditions which lowers production and can increase costs. As for farmers’ other concerns he said few can avoid debt. “In fact it makes sense to borrow capital when the […]

Half year performance better than expected for farmer co-op

LIC has recorded a solid performance in the first half of the financial year. In the six months to 30 November 2014, the co-op achieved revenue of $159 million, 17.7% higher than the same period last year. Chairman Murray King said the half year result was better than expected, and driven by farmers choosing to continue to invest in solutions which improve their productivity and prosperity. “As their co-operative, we provide farmers with solutions that will add value on-farm and deliver a return on their investment. “While we do see a reduced spend in lower payout years, we find that farmers are willing to continue to invest in the solutions that will deliver a high return for their business.” King says the co-op experienced particularly high demand for its short gestation genetics. DNA parentage testing and information and automation technology systems also remain popular. A lower year on year net profit after tax result is forecast, as part of the expected impact of milk payout and the co-op’s ongoing investment into technology and infrastructure worth more than $20 million. The co-op has reviewed where it can reduce discretionary costs without impacting service to farmers, King said. As part of its growth strategy, the co-op has announced a number of new developments this financial year, including a joint venture in Brazil, partnerships with Figured and SCR, and the merger of subsidiary business DAL and Protrack. Summary, Half Year Result LIC revenue and other income for the six months to 30 November 2014 was $159 million, 17.7% ahead of the $135.2 million achieved during the same period in 2013. Net profit after tax for the half year was $29.7 million, up $2.7 million from the previous year reflecting the strong first half revenues across most product categories. LIC’s business, particularly artificial breeding […]

LIC forms strategic partnership with SCR world-leading cow intelligence provider

Farmer-owned co-operative LIC (NZX:LIC) has secured a new strategic partnership with the world-leading cow monitoring and milking intelligence solutions company, SCR. The partnership includes a distribution agreement whereby SCR, recently acquired by Allflex Group, will distribute the co-op’s DAL milking sensors internationally and LIC will become a New Zealand distributor for SCR’s cow reproduction and health monitoring system, Heatime®. LIC chief executive Wayne McNee says the partnership is part of the co-op’s strategy to grow the business overseas and provide New Zealand dairy farmers with more choice. “SCR is a world-leading provider of cow intelligence systems with a strong history of delivering solutions to improve farm efficiency worldwide. This agreement aligns with our vision to improve the prosperity and productivity of our farmers, and our focus on key international markets that will add value for shareholders in New Zealand. “DAL sensors are highly regarded here in New Zealand for their unique ability to measure a range of factors (milk volume, fat, protein, lactose, and somatic cell counts) while a cow is being milked. This partnership confirms the global demand for the value the sensors deliver on-farm, and ability to meet the needs of farmers worldwide. “The SCR Heatime system will be a valuable addition to our range of herd improvement and animal management solutions here in New Zealand,” McNee said. LIC and SCR have identified four initial markets for distribution of the DAL meters, with the potential to add more in the future. SCR’s Heatime will be available to all New Zealand dairy farmers from LIC, with its Protrack™ farm automation systems. Heatime collects and analyses critical data points, from activity to rumination, on every individual cow, delivering the heat, health and nutrition insight to improve accuracy and drive overall farm efficiency. Shane McManaway, general manager Allflex Australasia said it […]

Fonterra affirms 2015 milk price payout of $5.30/kgMS

Fonterra Cooperative Group chairman John Wilson has affirmed the world’s biggest dairy exporter plans to pay its farmers $5.30 per kilogram of milk solids for the 2015 season. Wilson affirmed the payout in presentation slides for Fonterra’s annual meeting in Palmerston North today. It also expects to pay a dividend of 25-35 cents a share, making a total payment of $5.55 to $5.65. The 2014 payout was $8.50 including a 10 cent dividend. The Reserve Bank cited the reduced milk payout in its financial stability report, released today. While New Zealand’s overall financial system remained sound, risks in the dairy sector increased as plunging global milk prices prompted a reduced forecast payout to farmers by Fonterra, it said. “The forecast dairy payout for the coming season has been reduced significantly, and could result in rising loan defaults should the lower payout level persist,” deputy governor Grant Spencer said in a statement. Wheeler said the bank hadn’t given any thought to imposing lending restrictions or ratios on dairy lending, and that about 10 percent of farmers still have about half of the sector’s $33 billon in debt. The Reserve Bank expects dairy prices to recover early next year, supported by growing Chinese demand, though it said there is a risk of protracted weakness if global supply keeps expanding or if China takes longer to resume its forward purchasing. Farmers had used last year’s high price to repay debt, and the early signalling gave them time to manage down their costs, which helps mitigate the threat posed by the dairy sector. Spencer said farmers’ deleveraging and higher farm prices meant average LVRs on dairy debt had reduced, meaning safety buffers in place on dairy farm debt have improved. The Reserve Bank said farms using intensive methods on more marginal land and less […]

New pastures may be future weed threat

Breeding new fast-growing grass varieties that produce more seeds and are resistant to drought, pests, grazing and disease may inadvertently be creating the next generation of invasive weeds, warns an international team of researchers. As the global demand for dairy and beef escalates, farmers are increasingly seeking ways to reap greater productivity from their pastures. The problem is that in making grass varieties more robust, they are more prone to becoming a problem for the environment. For instance, new varieties can invade adjacent areas and spread across the landscape, or they can interbreed with existing invasive weeds. That’s according to Professor of Plant Biosecurity at Lincoln University and lead researcher at the Bio-Protection Research Centre, Philip Hulme, who has co-authored a research paper published in the latest edition of Proceedings of the National Academy of Sciences (PNAS). “Pasture species such as ryegrass and fescue may not strike people as major threats to the environment but they are regarded by the Department of Conservation as environmental weeds,” explains Professor Hulme. The research team have highlighted the need for government and agribusiness to ensure pasture plants are of low risk to the environment. “Pasture is big business in New Zealand and a large part of our economic success arises from agribusiness developing ever more productive or persistent varieties,” says Professor Hulme. “As a result there is a clear conflict between economic and conservation outcomes.” Agribusinesses do not have to assess the environmental risk of the new grass varieties they develop, but some consideration in this area might prevent the future spread of environmental weeds. “It is probably those varieties being developed for greater persistence, especially in the face of drought, that might pose the greatest future risk,” suggests Professor Hulme. The researchers have made four biosecurity recommendations for government, industry and researchers: […]

Industrial energy efficiency a full-time job

A PhD focused on increasing the energy efficiency of milk powder production has led University of Waikato engineering graduate Tim Walmsley to a full-time job with the very research group within which he worked as a PhD candidate. “My PhD research demonstrated that steam use in a typical New Zealand milk powder factory could decrease by 10% if exhaust heat recovery for the milk dryer is installed. Lab scale tests indicated issues relating to milk powder build-up and fouling, which is a key reason why dairy companies choose not to install this energy efficient technology, can be avoided through smart heat recuperator design and purposefully not being greedy in recovering heat,” says Tim. His position as a Research Fellow came about when the University of Waikato’s Energy Research Group was awarded a three-year grant from the Ministry of Business, Innovation and Employment (MBIE) late last year. “Fonterra, Windsor Engineering and the Energy Education Trust co-funded our research bid and a significant part of this successful proposal continues on from my PhD research.” The next step in his research is to prove his design solution at a pilot-scale level before further up-scaling to a full-size New Zealand milk spray dryer. “A milk spray dryer exhaust heat recovery project is a million dollar investment and a pilot scale installation will help de-risk and bring greater certainty around the economics of a full-scale project.” While studying towards his PhD, Tim won a University of Waikato Doctoral Scholarship, the Todd Foundation Scholarship in Energy Research, and a Claude McCarthy Conference Travel scholarship. These scholarships supported him through his three years of study towards a PhD in engineering, which he completed in June 2014, and provided the opportunity for him to present his work at two international engineering conferences.

Accreditation milestone for Synlait Milk

Synlait Milk has become a registered manufacturer of retail-ready infant milk formula for export to China. The Canterbury company announced on September 30 it had received approval from the Certification and Accreditation Administration of the People’s Republic of China. Managing director John Penno said the latest registration was a major milestone for the business. It added to its registration as a manufacturer of general dairy products and infant formula base powders for export to China, granted in May. ”Being able to manufacture and export high-quality finished infant formula products to China will help Synlait Milk deliver on its value-added strategy, and provides an important confidence boost for our China business where we see significant opportunity for future earnings,” Dr Penno said. Synlait had applied for registration after the Ministry for Primary Industries approved the risk management programme for its dry blending and consumer packaging plant. The plant could process 30,000 metric tonnes a year at the rate of 110 cans a minute. That made it ”a cost-competitive solution for large-volume customers”, the company said. ”It was our intention to build the best plant of its type in the southern hemisphere, particularly in terms of operating efficiency and product quality standards, and feedback from our multinational customers who refer to the plant as `next generation’ affirms our goal,” Dr Penno said. ”We now have an integrated facility on one site in Canterbury, New Zealand that gives us full manufacturing and packaging control, and delivers on the needs of our infant formula customers for a complete, integrated supply chain solution, from raw milk sourcing and collection through to manufacturing and retail packaging.” Automation reduced physical handling of product, and a purpose-built, in-process laboratory inspected every can processed.

Dairy product prices rebound from five-year low

Dairy product prices rose in the latest GlobalDairyTrade auction, recovering from the lowest level in five years, as gains in anhydrous milk fat and sweet whey powder outweighed declines in rennet casein and butter milk powder. The GDT average winning price rose 1.4 percent to US$2,640, up from US$2,599 two weeks ago. Some 50,816 tonnes of product was sold, down from 55,057 tonnes of product two weeks ago. Some traders had been expecting prices to rise after falling to their lowest since 2009 in the last auction two weeks ago, given prices of other commodities including wheat, corn and sugar have gained this month and the latest auction didn’t fall on a Chinese public holiday. Fonterra has said prices will find a base as global supplies come back into balance and China resumes buying. Even so, the AgriHQ Seasonal Farmgate Milk Price for the 2014-15 season has decreased by 30 cents to $4.75 per kilogram of milksolids following the October 15 GlobalDairyTrade auction. This compares to Fonterra’s current forecast for the season of $5.30/kgMS. The AgriHQ Snapshot Farmgate Milk Price indicates that if the latest GlobalDairyTrade prices were achieved across the entire season the milk price would be just $3.90/kgMS. “The improvement in prices at last night’s auction result is a good start but we need to see a continuation of this upward trend in order to for farmgate milk prices to improve,” AgriHQ dairy analyst Susan Kilsby said in a note. “Despite a higher whole milk powder price the AgriHQ Seasonal Farmgate Milk Price has fallen further as the recovery in dairy commodity prices is now expected to be slower.” In the latest GDT auction, anhydrous milk fat climbed 7.4 percent to US$3,346 a tonne, sweet whey powder advanced 4.3 percent to US$1,225 a tonne, while butter rose 3.9 […]

Upskilling one strategy to cope with lower payout

With the announcement of a drop in Fonterra’s forecast milk solid payout, there’s an urgent need for farmers to review and revise budgets and to monitor cashflow going forward, to ensure debt levels don’t rise unnecessarily. Agribusiness management training is one way that farmers can address these issues and apply better management practices to their businesses. As farm budgets come under scrutiny, farmers may need to cut back on spending or look at increasing their milk production and improve on-farm performance, to offset the lower payout. Primary ITO’s Diploma in Agribusiness Management supports farmers to hone their business management skills so they can manage risks like a volatile payout and take control of their business. Key learning areas such as Business and Finance, where students learn how to develop and monitor financial plans, monitor on-farm performance against objectives, and develop a budget to share with their bank manager or accountant, are all directly applicable to the farmer’s own business. Cath Blake, Manager of Dairy Training Limited, says “Good cashflow budget development and implementation are core parts of successful and profitable business performance. The skills farmers gain by completing the Diploma in Agribusiness really assist in managing financial risk such as the drop in payout this season. This financial capability helps farmers to look to the future goals of the business and gives long term confidence that the dairy industry is a great business to be in.” The cost of human resources can also be a point of contention when budgets are tightened. Staff are often let go of or professional development and training costs are slashed at times of reining in expenses. Mark Paine, DairyNZ strategy and investment leader (people and business) says “Recruiting the right staff and keeping staff motivated can mean staff turnover is reduced. The cost of […]

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