Dairy

Planning key to combat higher costs to produce milk

Strong financial management, grazing management and people management skills will help dairy farmers buffer rising input costs and produce milk more efficiently. That’s the message from DairyNZ chief executive Dr Tim Mackle who says despite a high milk price, high-cost pressures are expected to continue for at least the next couple of years. Statistics New Zealand released its latest farm expense price index last month which showed large inflation costs for farmers over the past two years. Four key farming costs have experienced inflation of more than 10 per cent between 2019 and 2021, including fertiliser with a 15.9 per cent increase; cultivation, harvesting and animal feed with an 18.9 per cent increase; electricity with a 21 per cent increase; and stock grazing costs which are 36.9 per cent higher this year than they were in 2019. “The current economic climate is unique and reflects a combination of forces that seldom come together,” says Dr Mackle. “International demand for food, especially dairy products, remains strong, but poor production and high input prices worldwide have limited supply. This means world food prices are currently around a third higher than the same time last year.” DairyNZ principal economist Dr Graeme Doole says shipping prices, on average, are around 600 per cent higher than two years ago due to port delays and closures related to COVID-19, and the prices of ocean freight out of Asia have grown substantially, increasing by 15 times between March and August this year. Urea prices alone have jumped by 67 per cent since August 2020 due to greater global demand for nitrogen. FAO figures suggest nitrogen use has only increased by 1.33 per cent since 2020, but higher seasonal demand, coupled with international supply issues, have pushed up urea prices globally. “In New Zealand, China is our largest […]

Top 10 ways Government could back our dairy farmers

DairyNZ is calling on the Government to partner with dairy farmers to achieve better outcomes, invest more in research and development, and stop overloading farmers with too many regulations. Ten recommendations for Government have been drawn from DairyNZ’s latest ‘View from the Cowshed’ survey of 425 dairy farmers. DairyNZ chief executive Dr Tim Mackle says it’s critical the Government work more closely with farmers to support investment in research and development, so farmers can continue working to reduce their environmental footprint, while maintaining profitability. “This year’s survey indicates farmers are making on-farm changes to improve their environmental management and their workplaces, but are feeling under pressure from constant regulatory changes,” said Dr Mackle. “We want to see more focus on ensuring regulations are fair, practical and don’t overburden farmers with too many different requirements. “Dairy is New Zealand’s leading export sector, employs 50,000 Kiwis and is forecast to contribute over $40 billion to our economy this year, so it’s important for our country’s success that farmers are supported to keep contributing to New Zealand.” 57 percent of farmers surveyed said changing Government regulations are causing them stress, with 55 percent also saying perception of dairy farmers by the public and in media was also keeping them up at night. A further 67 percent of farmers feel there isn’t enough support for farmers dealing with mental health issues. Positively, the survey revealed 70 percent of farmers surveyed have a Farm Environment Plan – a key tool farmers use to identify and manage environmental risks through adopting good farming practices. “Dairy farmers are operating in a complex environment and managing a lot of challenges. Around half previously reported being short-staffed and 45 percent don’t have the internet service they need to efficiently run farm operations,” says Dr Mackle. In the past two years, the Government has proposed changes to policy on freshwater management, wintering, climate change, biodiversity and vehicle taxes which would all significantly impact on farmers. These issues may have contributed to 32 percent of farmers saying they feel less positive about farming than 12 months ago – despite strong milk prices. Only 17 percent reported they felt more positive. Matamata dairy farmer Sam Owen says there isn’t one cause of mental health issues in rural […]

Stainless steel pipes in a food factory. Stainless pipe fittings.

HRS meets tight spec for dairy heat exchanger

HRS Heat Exchanges has met a challenging brief to supply a client in Australia with a compact yet efficient heat exchanger to process viscous dairy products. Burra Foods is a leading Australian dairy ingredient processor, producing value-added dairy products for the global food manufacturing market. An upgrade at their processing plant in Korumburra in the State of Victoria necessitated the use of a heat exchanger to warm frozen milk products, but existing building and infrastructure meant that the available space was severely limited. The line in question produces skimmed milk concentrate and cream from frozen concentrates which are then thermalised and cooled to ambient processing temperatures. The required heat exchangers needed to raise the temperature of the product from -5°C to 18°C prior to the final heater, which includes melting the frozen product. After this, the product is then cooled from 10°C to 5°C in the final cooler. Due to the consistency of the skimmed milk concentrate and cream the product is quite viscous, so the heat exchanger needed to resist fouling and provide good heat transfer performance, while also integrating with the Plate Heat Exchangers used in the process in a very limited footprint. The solution was an HRS MI Series corrugated tube heat exchanger which provided the necessary heating and cooling requirements in the tight space available and also resulting in a small pressure drop, another important consideration for this installation. Following an initial enquiry at the end of 2019, the unit was installed in mid-2020, and has exceeded performance expectations since final commissioning, with a production capacity of 5,000 kg of product per hour. Stuart Shattock, Process Engineering Manager at Burra Foods comments: “Other suppliers couldn’t match HRS’s offering in terms of tubular heat exchangers and the level of detail provided. Once we placed the order, there […]

Environmental gains as farmers reduce nitrogen loss

Dairy farmers in Canterbury’s Selwyn catchment are actively reducing their footprint, with data indicating many have reduced nitrogen loss by 30 percent. “Selwyn farmers have been working hard to achieve this milestone, taking steps on their farms to look after the environment,” says DairyNZ solutions and development lead advisor Virginia Serra. “Preliminary information shows 70 percent of Selwyn farmers have met their 30 percent nitrogen loss reduction target set by Environment Canterbury. “Another 20 percent are well on track to achieving it and are receiving support to get there. The remaining farmers will be supported this season to make progress.” DairyNZ collated the data from dairy companies and irrigation companies, plus a DairyNZ survey. Dairy farmers are using Farm Environment Plans to identify actions to reduce footprint, including improving water quality. Nitrogen is one of several contributors to water quality, with phosphorus, sediment and E. coli also playing a vital role and covered by the farm plans. “Reducing nitrogen loss over time helps improve water quality and helps reduce greenhouse gas emissions,” says Mrs Serra. “Achieving these results is not easy and farmers are working hard to deliver. They are doing their best to keep up with regulations, across the spectrum of farming.” DairyNZ has been working with farmers from Selwyn and Hinds for three years through the Meeting a Sustainable Future project, supporting them to reduce nitrogen loss. This includes trialling options with 40 partner farms and sharing knowledge with local farmers. A recent DairyNZ survey showed all Selwyn and Hinds farmers surveyed are adapting practices to reduce nitrogen loss. This includes improving irrigation efficiency and effluent management, reducing fertiliser use, using the grazing herb plantain (which reduces nitrogen loss) and some are changing their stocking rate. Most Selwyn dairy farmers are required by current Environment Canterbury rules to […]

DairyNZ acknowledges passing of John Luxton

DairyNZ chairman Jim van der Poel and chief executive Dr Tim Mackle have today expressed their sadness at the passing of former DairyNZ chairman, the Hon John Luxton. Hon John Luxton stepped down from the role of chairman in November 2015 after more than a decade of service to DairyNZ, and a lifetime of service to the dairy industry. Mr van der Poel and Dr Mackle say he will be remembered for his longstanding, unfaltering contribution to the rural sector, particularly dairy. “John has had a major role in the success of New Zealand’s dairy industry. John has always demonstrated strong leadership and longstanding commitment to the sector,” says Mr van der Poel. “John was instrumental in a number of significant policy and legislative changes in New Zealand, including the foundation policy work that led to the formation of Fonterra and the deregulation of producer boards. “One of his major achievements was shaping the development of DairyNZ – the first industry-good body of its kind and the largest in Australasia.” Hon John Luxton played a major role in helping guide the dairy industry through a significant period of change, which would soon become New Zealand’s number one export industry. He was instrumental in supporting a successful, viable, competitive dairy industry in New Zealand, with the sector employing 42,240 people and contributing $13.2 billion to New Zealand’s export revenue during his time as chair of DairyNZ. Dr Mackle says he will remember Mr Luxton for always being very supportive and being a statesman and diplomat who could bring people together. “John was an influential leader who unified the dairy sector from dairy companies through to local and central government departments,” he says. “He led by values, had enormous integrity, and always put the best interests of those in the rural sector […]

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Dairy sector backs global methane pledge

The New Zealand dairy sector is committed to playing its part to reduce global methane levels by 30 percent by 2030. Global methane does need to reduce and the dairy sector will do its fair share to reduce emissions alongside all sectors. However, DairyNZ chief executive Dr Tim Mackle (pictured) says he wants farmers to know the pledge doesn’t mean dairy farming emissions need to reduce by 30 percent, and for the Government to acknowledge this. “New Zealand dairy is already the world’s most emissions-efficient dairy milk producer, and dairy farmers are continuing their work on-farm to reduce emissions,” says Dr Mackle. “Methane is derived from the energy, agriculture and waste sectors, and the pledge focuses on reducing methane from fossil fuels. New Zealand already has a robust 2030 methane target for agriculture in the Zero Carbon Act. The dairy sector and agritech companies have a lot of work underway to achieve it,” says Dr Mackle. Climate Change Minister James Shaw today announced at the UN climate change conference, COP26, that New Zealand is signing the global pledge led by the European Union and the United States. The pledge is clear it does not replace the need to reduce carbon dioxide emissions, which dominate not only the overall level of warming but also the speed of warming. It also states a global methane reduction of 30 percent by 2030 has the potential to avoid 0.2 degrees Celsius of warming by 2050. The pledge focuses mainly on reducing methane from fossil fuels because the best least-cost opportunities exist there. It acknowledges agricultural methane and calls for technology innovation, incentives and partnerships in that sector. The new pledge is a collective target, rather than requiring each country to reduce overall methane emissions by 30 percent. “New Zealand already has a clear […]

Fonterra and Vitakey to enhance dairy’s contribution to health and wellness

Looking to a future where it is likely that many foods will be more valued for their specific health benefits, Fonterra and VitaKey Inc. has announced a transformative dairy science collaboration to further unlock the benefits of Fonterra’s probiotic strains. VitaKey specialises in precision delivery of nutrition – an emerging area of research that seeks to deliver the right nutrients, in the right amount, to the right part of the body at the right time. Co-founded by Dr. Robert Langer, the VitaKey delivery technology platform for nutrients is based on technology licensed from the Massachusetts Institute of Technology and developed at the Langer Lab, the largest academic biomedical engineering lab in the world. Utilising VitaKey’s proprietary technology and customised solutions, Fonterra is looking to design dairy products that incorporate targeted and time-controlled release of specific dairy nutrients, starting with probiotics, in a way that locks in the freshness for longer and allows the nutrients to be more active and beneficial in the body. Judith Swales, CEO for Fonterra’s Asia Pacific region, says the collaboration is part of Fonterra’s long-term strategy and ambition to be a leader in dairy innovation and nutrition science. “Our Co-op has a long and proud heritage of dairy innovation, pioneering many world firsts and, increasingly, new solutions which aim to help people live healthier and longer lives. “Home to one of the largest dairy culture libraries in the world, our Research and Development Centre contains more than 40,000 strains. Two of these strains, LactoB 001 and BifidoB 019, address key health concerns such as digestive issues and immunity and are recognised as being in the top five global probiotics. “By partnering with VitaKey, we aim to ‘make nature better’ by combining the goodness of our New Zealand milk with […]

Delivering calm in the kitchen

Fonterra’s Foodservice business, Anchor Food Professionals (AFP), has reached a milestone to become a $3 billion NZD annual revenue business. Fonterra CEO Miles Hurrell says the success is down to the Co-op’s strong connection to customers who value our sustainably produced, high-quality, nutritious milk and innovative products. “It’s really pleasing to see this milestone be reached despite the impact of COVID-19 on restaurants and other out-of-home eating. Our people have worked hard to find new ways of working with customers and new product applications to suit the pandemic environment, and we can see this has been a success. “Foodservice is a high value channel for our farmers’ milk and a key part of our long-term strategy. This is why we’re aiming to increase our milk solids into Foodservice by approximately 50% by 2030 and grow our presence across further markets including Greater China, South East Asia and the USA. “To support our Co-op’s growth to 2030, we intend to invest about $1 billion in moving milk into higher value products and increase our R&D budget by 50%. These investments will enable further product innovation in the Foodservice channel, among other things, and help put us on track to meet our next Foodservice target of becoming a $5 billion annual revenue business,” says Mr Hurrell. Fonterra’s Director Global Foodservice Paul Harvey says Anchor Food Professionals chefs works alongside customers in their kitchens to match their needs with our Co-op’s dairy innovation expertise. “To offer solutions we need to know what the problem is, and in many cases the issues are in the kitchen, and that’s where we are spending much more time with our customers who want our help. “We now have 55 chefs around the world who go into kitchens like this where […]

Door opens for thousands of dairy workers to become Kiwis

DairyNZ says the Government’s long-awaited decision to provide a pathway to residency is exciting news for thousands of eligible dairy farm workers. DairyNZ chief executive Dr Tim Mackle says the government announcement allows many valued international dairy workers to become residents and recognises their years of hard work on farms and positive contribution to the dairy sector. “We are genuinely delighted for these workers and their families. Many dairy workers can now plan and look forward to a future in New Zealand with their families,” says Dr Mackle. “Their contribution will assist the dairy sector to continue playing a key role in New Zealand’s economy.” For the past 18 months, DairyNZ and Federated Farmers have worked in close partnership to ensure the best possible outcome for migrant dairy workers and their employers. “We appreciate that the Government has acknowledged the pressure farmers are under, due to being short-staffed, and also recognise the critical role international workers play.” A number of dairy workers have had residency applications on hold since before Covid-19 affected New Zealand in early 2020. Many have been without their families, who are overseas. “We have a significant number of international dairy workers in New Zealand who have been here for many years. They play an essential role in our farm teams and enable dairy to continue its vital contribution to New Zealand’s economy,” said Dr Mackle. “Our country and our rural communities will benefit from these workers and their families formally becoming New Zealanders. Their children help keep our rural schools open and their partners bring skills to our rural regions at a time when many employers are struggling to find staff.” The announcement does come too late for some workers, as a number of migrants wanting to become […]

Synlait launches Swappa Bottle

Synlait Milk Limited (Synlait) has launched its first consumer foods product under its own brand – Synlait Swappa Bottle. Synlait Swappa Bottle is a 1.5 litre reusable, stainless steel bottle of homogenised milk exclusively sourced from Synlait’s highest performing farms when it comes to stewardship for the land, and care for people and animals. The Synlait Swappa Bottle concept is simple – drink, return, repeat: Drink – consumers purchase a Synlait Swappa Bottle and enjoy quality fresh milk. Return – consumers then return the empty Synlait Swappa Bottle and lid to the store. Repeat – helping Synlait to reduce waste and eliminating plastic packaging. Synlait Director Sustainability & Brand Hamish Reid commented: “In the things that we choose to eat and drink, we support the future we want to see. New Zealanders have been telling us for years that they are deeply concerned about plastic waste, but in milk, there haven’t been many options. Synlait Swappa Bottle is a step in the journey towards eliminating plastic waste. Each time we drink, return, repeat, we contribute to a better future.” Synlait Swappa Bottles are initially being launched in two South Island New World stores, with plans to widen distribution over time. Synlait has signalled its intention to move closer to the consumer for some time. Its acquisition of Dairyworks in 2019 was the start of this and adding a Synlait-branded product strengthens and complements its current business portfolio and expertise. Hamish commented: “There’s an opportunity for reusables to play a much bigger role in New Zealanders’ food and beverage future, as they are already in Europe and the USA. In launching Synlait Swappa Bottle – a refillable, stainless-steel bottle that can be reused time and time again – we’re hoping to trigger change.” The Synlait Swappa Bottle carries the B-Corp stamp […]

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