setting up for the new season - dairynz - dairynz · pdf filesetting up for the new season....

Cautious optimismLooking ahead to 2015/16

New recruitsHiring and training new staff

May 2015

Your levy in action

SETTING UP FOR THE NEW SEASON

over the fence...

Inside Dairy is the official magazine of DairyNZ Ltd. It is circulated among all New Zealand dairy farmers and industry organisations and professionals.

Contents

ISSN 1179-4909

DNZ03-159

It’s often at this time of year that you will do your best thinking – when

the day to day demands of farming are a little less taxing.

Last month I was out and about talking to farmers who attended our

Farmers’ Forums in Taranaki and Otago. It was clear from the conversations

I had that farmers are gearing up well and searching for good ideas and

sound science.

I hope you’ll find much food for thought in this issue including an article

from our economics team on their view of what to expect for the 2015/16

season. Look out for our Tactics for Tight Times checklist too – we had

over 1000 people attend our events and I’m very grateful to all our case

study farmers for hosting those discussions and sharing their journey. Their

contributions have been invaluable.

My key piece of advice is to work through your cashflow position for

the coming season. Assess your situation and plan ahead. Take steps to put

strategies in place.

I am conscious of an accumulation of pressures on farmers at present

so thinking about your own personal resilience and your staff’s health and

wellbeing will also be top of mind.

The impacts of the volatility that we have to deal with in our industry may

be personal, not just financial and this is shaping up to be a very challenging

season for the industry.

Looking after yourself and your family, in what can be stressful situations,

is important. Increasingly, it’s everyone’s wellbeing you need to prioritise and

plan for – as well as your business’s. Getting the balance right is the trick

to enjoying what you do – and doing what you enjoy as a family and as a

farming enterprise.

As many farmers advise, focus on the things you can control and make

sure your business and your farming system are responding quickly to

whatever conditions you are facing.

I welcome your feedback. Feel free to email me at

[email protected].

Tim Mackle

CEO DairyNZ

This month I’m sure many of you may be taking a bit of a break but at the same time, you’ll no doubt be thinking about the season ahead.

FEATURES...

2 Cover story

Setting up the business for the new

season

10 Cautious optimism

DairyNZ economists look ahead

to 2015/16

14 Getting it right with new staff

Minimise risk and maximise

productivity

just quickly...

IN THIS ISSUE...

1 Just quickly

7 In our view: Mark Paine

8 Tactics for Tight Times

12 Teaming up with rural

professionals

13 Don’t lose sight of your plan

17 Wellbeing - making sure you

switch off

18 Inspiration from success stories

19 A winter of content for housed cows

20 Myth busters

21 Regional research

22 Grass roots

23 Improving Waipa river health

24 Feed & farm systems

25 Bits & bobs

26 DairyNZ directory

Seasonal diary

28 Regional update

We appreciate your feedback

Email [email protected] or call us on 0800 4 DairyNZ (0800

4 324 7969). Alternatively, post to: Inside Dairy, Private Bag 3221,

Hamilton 3240. For information on DairyNZ visit dairynz.co.nz.

On the cover: Takapau 50:50 sharemilkers Jason and Nikki Halford with two-year-old son William prepare for a new season.

Animal welfare workshops A series of workshops begin this month

to help dairy farmers understand animal

welfare laws and work out their options

for keeping on the right side of impending

new regulations. The workshops will help

farmers clearly understand what the rules

are, what they can do to comply and

provide some practical instruction to train

staff on-farm. For more details visit

dairynz.co.nz/welfare-workshops

TB pest plan in reviewDairyNZ is working with OSPRI (the

organisation that delivers the TBfree

programme) and other funders to develop the

future management options for the bovine

TB pest management plan. The TB plan is

the largest investment of the DairyNZ levy,

with dairy farmers contributing approximately

$15.6m, and a further $8m through the

TB slaughter levy. Dairy farmers can give

feedback on the options in June before

the plan goes to the Minister for Primary

Industries by the end of August. For more

information visit ospri.co.nz/TBPlanReview.

SMASH conferences in JuneThe Smaller Milk and Supply Herds

(SMASH) one-day conference will be held

in Northland on June 15, Taranaki on June

17 and Waikato on June 19. This year’s

theme is ‘Farming with vision’ and features

speakers from DairyNZ, NZX Agrifax,

Massey University and Country Calendar.

For more information and to register, visit

smallerherds.co.nz/events.

Smaller herd blog connects farmersThe SMASH team have launched a regular

online blog for farmers. Bloggers include

Noldy Rust, John van der Goes, Brian Frost

and Trent Guy on subjects as diverse as

growing tall fescue, the trials of combating

mastitis, dealing with effluent council

compliance and getting cows in calf, as well

as the ups and downs of farming life. Read

the SMASH blog or sign up to have your say

at smallerherds.wordpress.com.

Inside Dairy | May 2015 1

Cover story

SETTING UP THE BUSINESS FOR

THE NEW SEASON

2 Inside Dairy | May 2015

A TOUGH FIRST YEAR ON A NEW FARM HASN’T STOPPED SHAREMILKERS JASON AND NIKKI LOOKING AHEAD POSITIVELY TO THE NEW SEASON.

FARM FACTS

JASON AND NIKKI HALFORDLocation: Takapau

Size: 255ha

Herd size: 600 cows

System: 3

23% farm in summer crop

Lease 115ha wintering block

Target MS for 2014/15: 250,000

FWE $/kg MS for 2014/15: $2.75


If Jason and Nikki Halford had been able to nominate a year

when they were going to be hit with a dry summer and a low

milk price this wouldn’t have been it.

The 50:50 sharemilkers are in their first year on a new farm in

Takapau, Central Hawke’s Bay, having more than doubled their

previous herd size to about 600 cows.

Although Jason got a good price by purchasing the extra 350

cows empty last season and carrying them through, it was still

expensive.

“When you've come to a new farm and gone up in numbers it

doesn’t make this an ideal season to be getting a low payout,”

says Nikki.

Jason has sympathy for first year sharemilkers who’ve saved

hard to purchase cows only to hit a bad year.

“We know what it is like coming from manager to

sharemilker when you have no retros. It’s pretty tough. You’ve

saved all this money, you’ve got yourself into this position and

the savings go.”

But as they prepare for the new season they say it’s all about

keeping their eyes on the big picture. There will be better years

ahead.

Jason and Nikki Halford prepared well for their first dry Hawke’s Bay summer.

HOW JASON AND NIKKI GEARED UP FOR THE NEW SEASON

• Body condition score each cow regularly aiming to

ensure they get to 4.5 by June 1

• Switch to once a day milking from mid-March

• Save feed by taking non-performing cows out of the

farm system quickly, either for slaughter or to a run-off

• Assess pastures carefully using a pasture meter

• Watch rotations carefully

• Lease a large block to support the farm by providing

most of the winter grazing and ultimately, pasture

silage

• Crop 23 percent of the farm over summer in turnips

and chicory to help with summer feed

• Switch to interest-only mortgage payments

temporarily to avoid debt and control cashflow.


“This would be the biggest year for really feeling that growth

is not as possible as it has been,” says Jason. “In the four years

we’ve been sharemilking, this is the first tough one. You’ve got

to take the good with the bad.”

Jump from farm managementJason, from Pahiatua, has been in farming for about 20 years

and made the jump from farm management to sharemilking

with Nikki in 2011. They took on a high input system five farm,

milking 265 cows at Opiki, south-west of Palmerston North.

They set themselves a goal of milking 600 cows within

three years and realised it. Jason says they enjoyed the

higher production a system five farm

provided. The $8.50 record milk price

in 2013/2014 was a bonus when it

came to purchasing the cows they

needed to make the move to their

new farm.

“We grew massively in that final

year. We were buying the extra cows

anyway but the payout helped. You try

to capitalise as much as you can when

things are good.”

The new 255ha farm, managed by

a trust on behalf of the Southern Star

Abbey Monastery which is located on

the property, is system three and Jason says he was always keen

to try the experience of running a lower input farm.

"I really love the experience of farming different systems and

learning those systems because I wanted the experience."

For the majority of the season Jason has been milking about

250 cows once a day and the rest of the herd twice a day.

“We chose that because we have quite long walks that are up

and down hills. They’re also young cows, all the heifers I bought

last season.”

Jason says they have an older style 40-a-side herringbone dairy

shed which works well with 600 cows.

In mid-March Jason reverted to milking the entire herd once a

day in the lead up to the new season.

Hit the ground running in new seasonJason is determined not to let any impact from the lower milk

price and dry weather carry over into the new season.

Ensuring good body condition scores and good pasture cover

at June 1 are top of his mind.

Jason and a staff member have body condition scored each

cow individually on a monthly basis to make sure that by June 1

they are all at 4.5 BCS.

To help the pastures recover from the

dry, Jason has regularly assessed them

with a pasture meter equipped with GPS,

has been careful with rotation lengths

and has applied urea.

Twenty-three percent of the farm has

been cropped over summer which has

helped with the feed situation.

“You want to be planning and making

sure you set yourself up for winter and a

tough spring where you won’t have the

money to purchase feed.

“It’s the same principle whatever

system you are farming. Wintering is the biggest threat to dairy

farming because they are so vulnerable once we send our cows

out winter grazing. You’ve got to ensure cows have at least a

chance of being in the spring and producing milk.”

They lease a 115ha block six kilometres away which is where

they will winter the cows.

“By June 1 we are a long way through this problem. Yes we

are going to be looking at some pretty ugly cashflows in August,

September and October but we are going to get through.”

“BY JUNE 1 WE ARE A LONG WAY

THROUGH THIS PROBLEM. YES

WE ARE GOING TO BE LOOKING AT

SOME PRETTY UGLY CASHFLOWS

IN AUGUST, SEPTEMBER AND

OCTOBER BUT WE ARE GOING TO

GET THROUGH.”

Jason and Nikki Halford are continually monitoring their budget.


Difficult monthsJason’s strategy to get through the tight times is to be very

quick to pull low producing cows out of the farm system. He says

he can’t afford passengers, particularly as farmers can waste so

much money on imported feed. Empties went to the freezing

works and pregnant low-producing young cows that struggled

once a day were dried off and went to the runoff.

“Concentrate on your capital stock and invest in them,” he urges.

The parched paddocks tell the story of just 75mm of rain

in January and February. Jason and Nikki expected this and

imported more feed at the outset and in mid-March Jason took

the whole herd down to milking once a day. They are targeting

250,000MS for the season.

Jason and Nikki use the accounting system Cash Manager

to do their budgets and are continually analysing how they can

improve things.

“I just look at it and tinker,” says Jason.

“It has to be a living document.”

Jason and Nikki have gone interest-only on their mortgage and

plan to leave it that way for about a year. The first time it was

suggested to them they weren’t keen but then realised they needed

to treat it as a short-term strategic decision to tide them over.

“These are the things you have to do to get through. I’m sure there

are plenty of established farmers that have gone through this.”

Nor does he think the season will unduly affect their five year plan.

“We can recoup very quickly in good payout years.”

Jason says they were planning to rear some extra heifers but

with the low milk price they’ve pulled back from that.

But there are things they were determined not to cut back on.

They have three full time staff and say they wouldn’t have been

able to sleep at night if they’d laid anyone off.

“Looking after staff is absolutely paramount,” says Jason.

“We are having a tough time. You lay someone off and their

time has just got tougher.”

Nor have they cut back on herd testing four times a year which

they both see as even more important than usual in a difficult season.

Jason says it’s the basics like herd testing that must be maintained.

“I switched all the cows to once a day milking in mid-March.

I also dried off 30 cows with the highest cell count. With herd

testing, I don’t have to guess.”

Look at the big picture – stay positiveJason and Nikki urge others who are finding the going hard to

remember that it is only one season.

“Your career is longer than one year. You have to look at it

over a 7-10 year period. And this is a bad year in that cycle,"

says Jason.

The couple are used to financial pressure because they’ve

always been aggressively looking to buy more cows to get ahead.

When they are in a bad patch they think about the good things.

“We are so lucky. And you have to take the small stuff. It’s

dairy farming, we will survive and we have positive people

around us. My son William is growing up in a nice district. We

run our own business, we employ three people and we own 600

cows. It’s not all doom and gloom.”

Nikki, who is expecting their second child, says it’s essential

not to dwell on negatives too long.

“It’s an industry where there can be so many overwhelming

negatives in one year – payout and weather, it would be easy to

go down that route.”

Keep focused on your goalsJason and Nikki are hugely goal oriented and urge others to

set firm goals.

Jason has found the New Zealand Dairy Industry Awards

invaluable for his development as a farmer. The first year he

entered in 2010 he didn’t place and it made him take a hard

look at how he was operating. In 2011 he won the National

Farm Manager category. He says the competition gives people

confidence and “keeps pumping out” focused farmers who have

been surrounded by like-minded people.

Looking around the dry paddocks after a harsh summer is

sobering but Jason remains positive. “We are so much closer

to rain today than we were two weeks ago. Every sleep you are

closer to it. That’s what you have to keep reminding yourself.”

And as always, it’s the five-year plan and their goals that keep

him focused.

“In five years I want 1500 cows and irrigation. I want to

challenge myself at that level.

“You have to have goals and they’ve got to be cemented in

your brain and never really leave you.”

Bringing William up in such a nice district is one

of the many positives Jason Halford focuses on.

Staying positive and sticking to their goals is the

key to a tough season for Jason and Nikki Halford.


in our view

The 2014/15 season has left the industry with a significant challenge, says DairyNZ strategy and investment leader, people and business, Mark Paine.

The primary aim for most businesses

is drought recovery and rebuilding

profitability over the coming season. Price

volatility is requiring a greater focus on

risk management strategies to ensure

businesses attain their goals.

Vital for New ZealandFifty years ago the sheep industry

repeatedly reminded people that the

nation was built off the back of sheep.

It is a different world today with media

commentary not only highlighting how

much dairy contributes to the economy,

but also water quality impacts and access

issues.

Public opinion is important but at the

end of the day it is the people managing

our farms who will determine our fate as

an industry and in large part as a nation.

It is therefore critically important to know

why we survive in hard times so we can

build off this strength.

Dairy farmers resilientDairy farmers are a resilient lot, for

this reason more than anything else

dairy farming works for everyone in this

country. Our businesses recover from

hard times because our people have the

capacity to bounce back from adversity.

This ability to bounce back is due to the

four Ps that characterise our farmers: they

are practical, they plan, they persevere,

and they progress.

Practical skills are highly valued

throughout the industry. Whether in

grazing management, animal husbandry

or staff supervision, the people who are

of most value are those who know what

a good job looks like and who have the

practical intelligence to take actions

which result in top performance. These

people are the foundation upon which

businesses will build their recovery in the

coming season.

Planning: businesses that place a top

priority on planning are consistently the

top performers. They take the time to set

targets and allocate the right mix of staff

and budget to achieve their goals.

Perseverance: people who stay in the

industry and succeed have cultivated an

ability to stick with the plan through thick

and thin.

Progression: value is placed on advancing

in the business and in the industry. This

is not to say everyone needs to become

a leader. It is about being clear what

people are seeking in terms of roles and

responsibilities and reaching agreement on

how these will be met over time.

We know we will bounce back a

stronger industry than before as a

consequence of a low milk price and

drought recovery. Farmers can be

confident in their ability which has been

built from years of experience with

volatility. Hopefully the New Zealand public

will grasp the significance of this resilience

and appreciate that dairy farming works

for everyone in the country.

Mark Paine

Recovery top of dairy farmers’ agenda

"Our businesses recover

from hard times because

our people have the

capacity to bounce back

from adversity."


‘How low will you go?’ will be the key

question addressed at the nationwide

events, which will also feature regional

specific topics such as nutrition, winter

management, health and wellbeing and

an update on the host farmers’ journey.

DairyNZ chief executive Tim Mackle

says Fonterra’s recent half-year results

announcement means the challenge for

farmers will be in working through their

cashflow position for the coming season.

"We are concerned that the low milk

price this season, coupled with a low

retrospective payment this winter –

about a third of what was received last

year – will see many farmers dip into

the red this spring. For many, they may

not pop back up into the black for some

time. Banks are telling us that many

farmers will hit $1.50-$2/kgMS (kg of

milksolids) in overdraft this September.

"Knowing those winter payments will

drop next season will be second nature

to many farmers. But the ones who

have already forecast their cashflows are

surprised at how long they are going to

stay low,” he says.

"Our Tactics for Tight Times case study

farmers are regularly updating us on their

progress and talking about tackling that

volatility challenge. What are they doing

to manage cashflows for their businesses?

We've found there's a lot of value in

sharing experiences amongst farmers to

help everyone get through tight times,”

says Tim.

It’s the little things that countOne of the couples opening their farm

gates as part of the Tactics for Tight Times

campaign are Taranaki farmers Lyn and

Sean Delehanty.

For them, getting through the tight

times is about keeping the lid on costs

and ‘pulling back on little things’.

With 200 cows run on low-input system

two, Sean is well used to updating feed

budgets fortnightly and keeping a close

eye on cash flows, which in a low-payout

season is especially important.

“It’s really going forward from here,

especially the next six to 12 month period,

seeing how those cashflows are working,

seeing what’s coming and not committing

to too much at the moment,” he says.

The farm’s fertility is good, something

Sean is sure of, thanks to two-yearly

soil tests, which are helping keep costs

down because he’s only having to apply

maintenance fertiliser.

Another way Sean’s keeping outgoings

down is cutting back on principal repayments,

in line with the falling milk price.

“We’re just holding everything back at

the moment to see what we need to carry

on and where we’re going to be situated

in six months. We’ve carried on with our

interest payments obviously, the ones

we need to, but the ones with a bit of

flexibility we’ve held back.”

Monthly updates from the Tactics for

Tight Times farmers and a copy of the

handouts from all the events are available

at dairynz.co.nz/tactics.

TACTICSTACTICSFOR TIGHT TIMESHow low will

you go?Farmers will get a truer picture of what the season will hold for them at a second round of DairyNZ Tactics for Tight Times events over the next few months.

A second round of 25 Tactics for Tight Times events around the country began on April 21.

Check dairynz.co.nz/tactics for dates in your region.

Taranaki farmers

Sean and Lyn

Delehanty with

their children.

They will host an

event this month.

EVENTS:


Farmers' tips to get through tight timesMore than 1100 people attended 30 DairyNZ Tactics for Tight Times events during February and March.

There were plenty of tips shared as farmers talked through how they were reacting

to a lower milk price now, and planning for the coming months.

Here are some of the tips farmers shared.

“We’re looking at our drawings – can we reduce

personal expenditure?”

“Get advice from your bank. We met with the bank last

week regarding interest-only repayments for the next two

years and had discussions over interest rates and floating versus fixed.”

“Reconsider winter grazing – sending

cows off farm versus buying in feed.”

"Maximise cash conversion – place orders early in the

month, so you have up to six weeks use of the money before you have

to pay the invoice."

“Look at your electricity and phone costs – can you

get a better deal with a different supplier?”

“Test your effluent application areas separately to make sure you

don’t blanket fert applications where it isn’t needed.”

“Do regular farm walks and accurately assess pasture

on hand so you can pull out supplements if possible.”

“Analyse whether bringing young stock home

is a good alternative to save dollars.”

“If it’s not in the budget, it isn’t getting spent.”

“Grass is still the cheapest source of feed – use it wisely.”

“Keep doing what you love – remind

yourself every morning why you

are farming and look for the positive.”

“Shop around and question suppliers.”

“Go interest-only, suspend principal payments.”

For more tips visit the toolbox at dairynz.co.nz/tactics.


What milk price should I budget for in the season ahead?Milk prices are volatile and difficult to predict which is why farmers should approach next season with caution. DairyNZ economists Matthew Newman and Zach Mounsey look at how the 2015/16 season could shape up.

The difficult 2014/15 season is nearly beyond us, so what lies

ahead in the 2015/16 season and what milk price should you

budget on?

The dry summer throughout New Zealand has undoubtedly

had an impact on the global dairy market. Fonterra’s

announcement of an expected 3.3% less milk than last year and

a corresponding expected reduction in GDT volumes was met

with an unexpected spike in whole milk powder (WMP) prices.

Since then, milk production predictions for this season have been

lifted with DairyNZ estimates currently sitting at similar volumes

to last year. Any chance of a lift in the $4.70/kg MS milk price

has now diminished with declines in recent auction prices putting

a further dampener on the season.

Supply and demand factorsWhile most analysts were forecasting an improvement in milk

price over the next six months, there are many reasons why

farmers should proceed into next season with caution.

• Russia’s one year ban on imported food from Western countries

(although this does not include New Zealand) may be extended

beyond August of this year. This means any surplus European

Union (EU) production is likely to make its way into developing

markets such as North Africa, the Middle East and Asia.

• The EU have now removed milk production quotas and while

this may not have much initial impact, the Netherlands,

Germany, France, Denmark and Ireland will look to increase

production over the next five years.

• Chinese stocks of milk powder should be largely worked through

now, but uncertainty remains as to when we will see a substantial

increase in demand from this key market. Reduced cow numbers

and lower milk prices will constrain milk production in China

over the next couple of years, creating a larger supply gap and

adding to the requirement for imported powder.

• US milk production continues to grow in line with positive

milk:feed price margins. The exception is California, which is

much closer aligned to international milk prices.

• In mid-2014 the exchange rate for NZD:USD was 0.86. Just

six months later in the beginning of 2015 the exchange

rate had dropped to 0.74. While there is some expected

appreciation later this year, it is unlikely to increase to the

0.80 mark. However, the New Zealand dollar is performing

strongly against the Euro and Australian dollar.

• Oil prices are currently very low, and there is a strong correlation

between whole milk powder prices and crude oil prices. Forbes

economic commentator and forecaster, Bill Conerly expects

there may be temporary market volatility, but doesn’t expect

a higher oil price to be sustained in 2015. His estimate is for

something around $60 a barrel with some rise possible in 2016.


2015/16 milk price Cashflow this season wasn’t as grim as the headlines portray,

and was still manageable, largely due to the high 2013/14

retrospective payments. However, the retrospective payments

next season (2015/16) will be less than 50 cents when compared

to this season of $1.50. To put things in context, just one of the

month’s retrospective payments paid this season (40 cents) is close

to as much as what will be received over four months next season.

Recent auction results on the GDT have shown substantial

movements. Some of the major banks have been quick to adjust

their forecasts for both this and next season. Most analysts are

forecasting a milk price of $4.50-$4.70 for this season. (See table

below). Most farmers should be well placed this season to manage

their way through on the back of last season’s record payout.

However, the outlook of a stronger milk price for next season has

taken a blow following recent reductions in auction prices.

Table 1: Forecast milk prices by industry analysts (7 April 2015)

2014/15 2015/16

Fonterra $4.70 -

ANZ $4.50-$4.70 $5.57

ASB $4.60 $6.20

Westpac $4.90 $6.10

AgriHQ $4.60 $6.50*

This cycle in milk prices is very similar to the 2008/09 downturn.

If you believe history may repeat itself, the milk price will begin

'with a five', still a way from the five year average of $6.50/kg MS.

This is based on an anticipated milk price of around US$2,800 to

$3,200/tonne and an average exchange rate of around 0.74 to

0.77 NZD:USD.

* Likely to be revised down.

IF MILK PRICES DO NOT RISE, DIFFICULT DECISIONS AHEAD

In times of low milk price such as New Zealand is

experiencing it is a case of survival firstly, through

trimming costs and improving productivity. There has

been higher early culling of cows, indicating farmers will

take this route as well as once a day milking and early

drying off, rather than relying as much on purchased

supplementary feed, as occurred last season.

Capital spending and discretionary expenditure will

be knocked right back. However, if milk prices do not

reach $6/kg MS next season it will be core operating

expenditure that will need to be looked at further to

prevent debt escalations. This will require difficult on-

farm management decisions. Farmers who are proactive

rather than reactive will be better equipped to approach

the volatile fluctuations in milk price. Maximising margins

through considering the cost of production is crucial, and

New Zealand dairy industry’s competitive advantage has

always been converting pasture into milk at reasonably

low cost.


Teaming up with rural professionalsThe dairy industry is full of people willing to share good advice, says Waikato dairy farmer Roger Duff.

As a dairy farmer who has gone into partnership with a farmer/

rural banker, Roger has experienced the benefit of tapping into

the knowledge and support of rural professionals from day one.

Roger and his wife Kathy bought their farm as an equity

partnership with Craig and Jo Young 10 years ago.

Roger works on the 400 cow farm full time, while Craig milks

every second weekend, and in the calving and mating seasons,

Craig does the morning milking before heading to work in

Te Awamutu as a rural banker.

“Your rural banker can be a valuable team member,” says

Roger.

“They provide another sounding board when discussing

financial decisions around things such as buying in more feed

and making significant investments. Involving them can help ease

financial pressure.

“Many rural bankers have a farming background, so they

understand the different pressures and decisions farmers are

facing,” says Roger.

Tapping into industry expertiseRoger says establishing a group of trusted rural professionals

to call upon for advice and support is valuable for the business.

Defining your business goals and finding an adviser who

works in line with them is key to gaining the most from the

relationship, says Roger.

“I’ve been working with our farm adviser since we bought the

farm. I initially called on him a lot to talk through decisions and

establish direction. Even now I still make sure we meet at least

once a year to have a good discussion about everything.”

His local vet is another rural professional he considers a

valuable team member.

“Vets obviously have a world of knowledge on animal health,

but their services extend beyond treating sick animals; they can

also help with feeding decisions, cow condition and providing

proactive strategies for things like preventing mastitis. They bring

a lot of ideas to the table.”

Value of discussion groupsRoger highly recommends attending DairyNZ discussion groups,

especially for farmers who are just starting out in the industry.

“Discussion groups provide an opportunity to think things

through, review decisions and get advice and ideas from other

farmers.

“They keep you motivated and looking for new solutions and

ways of doing things.

“Particularly when you’re new, it’s good to go along and hear

when you are on the right track to give you confidence in your

decisions. Or if you’re stuck on something, there’s plenty of

knowledge there to tap into.”

Waikato farmer Roger Duff says he doesn’t miss a chance to tap into rural professionals' knowledge.

Photo: Fairfax NZ


Don’t lose sight of your planWhen times are tight on the farm, it’s even more important to develop and keep hold of a five-year plan. DairyNZ's Paul Bird explains how goals will help you do this.

What are some of the characteristics of the people, families

and businesses that achieve their goals over time? They do three

things very well.

1. Identify a small number of important goalsIt sounds simple, but many of us have the ability to

overcomplicate life and focus on too many things. Life is full of

competing demands for time and money and those that achieve

their goals have developed the skill of allocating their time and

money to things that really matter. If appropriate, involving your

whole team (or family) in the process of setting goals will help

ensure they buy in to the direction and focus identified. Once

everyone is on board, it will be easier to say no to requests or

opportunities that won’t take you in the right direction.

Common goals include: own a farm, own a herd of cows,

achieve a particular balance in life, children happy and achieving

to their potential, compete in a marathon etc. Each person or

farming family will have different priorities in life. Write these

priorities down and circle the top three. These are what you must

spend most of your time on.

2. Keep learning There is a lot to learn as a dairy farmer and continuing to

develop your skills and knowledge is crucial for progression.

There are many training opportunities available in the industry,

from courses, events and discussion groups offered by the likes

of DairyNZ, Federated Farmers and Dairy Women's Network, to

formal qualifications offered by PrimaryITO.

As well as understanding and implementing these foundation

principles, it is also important to keep learning every day to stay

abreast of new ideas or research. The key to learning is to only

make changes as a result of new information if it moves you

towards your targets – not because it sounds interesting.

3. Maintain an absolute focus on Step 1Staying focused on your priorities is essential, particularly in a

volatile industry. If you are six years into farming and you hit a

one to two year downturn, there is a risk you will throw in the

towel. Stay focused on your goals whatever your stage in life or

career. Look at your small list of goals every day – keep learning

and applying your knowledge and you will get to where you

want to be.


Hiring new staff – how to minimise risk and maximise productivityWith many new employees coming on board in farm teams over the next month, it’s a good time to have a look at how we can get them off to a great start. DairyNZ’s Jane Muir explains.

A great start to a new on-farm working relationship means

both employer and employee understand the expectations each

have and associated rights and responsibilities. For employers

getting this part right is smart business. It minimises risk if

things don’t work out and creates a solid platform from which

increased productivity, motivation and satisfaction can be

achieved for both employer and employee.

How do I minimise risk with new employees?Following these simple steps will help:

1. Follow a thorough recruitment process which includes solid

reference checking and, if in any doubt, pre-employment

drug testing and police checks.

2. Get an employment agreement in place for all permanent,

casual and fixed term employees. This is easily and cheaply

done using Federated Farmers employment agreements or

you can contact a rural professional.

3. Ensure you include a 90 day trial period clause in your

employment agreement and that this is agreed with the

employee before they start work. This must be entered into

in good faith – e.g. your intention is that the role will be

ongoing but it allows you to stop employing a staff member

(with notice) during the 90 days if they are unsuitable for

your team. The employee is unable to raise a personal

grievance for unfair dismissal. An employee can however

raise a personal grievance if they have been treated unfairly

in other ways (e.g. harassment, discrimination etc).

4. Set up a system for recording hours of work from day one

by using timesheets. This is a legal requirement.


How do I maximise productivity?It can be useful to think about what a new employee needs

to know at the end of one day, one week, one month and

three months. This will give you an appreciation of the amount

of information they need to learn, and also allows for the fact

that people can only take in and remember so much in one go.

Staggering the learning is more likely to lead to successful retention

of information and a more productive and happy employee.

Each farm is different, so orientation will vary from farm to

farm in the detail, however the following areas will most likely

need to be covered:

Day 1

Administration: complete personal details form

complete Tax IR330

outline pay period and day wages will be paid

agree on and record condition of

accommodation

agree on and record hours of work including

break times, and any time keeping required

agree on and record rostering and leave.

Introductions: meet the team

explain team roles, responsibilities and reporting

structure.

Farm layout: tour of farm identifying hazards and important

features

farm map.

Culture: expectations of standards on farm, e.g.

language, conduct, dress, speed on motorbike,

smoking, alcohol and drugs, treatment of stock,

what is and isn’t acceptable

discuss frequency of team meetings and

communication style.

Health and safety: emergency contacts and procedures

location of fire equipment and first aid kits

accident reporting procedure

complete health and safety acknowledgement.

Week 1

Key operations: farm boundary and layout

an overview of key activities on-farm and how

these are managed

use of key equipment.

Position expectations: check understanding of job description

performance standards.

Rules and procedures: discipline

how to handle grievances and complaints

expected behaviour and conduct.

Health and safety: review hazards and processes to minimise

communication procedures.

Month 1

Business overview: farm goals and production targets

values

farm policies

other key people involved in the business, e.g.

shareholders, consultants, vet.

Performance planning and review: employee performance to date

key focus areas.

Month 3

Training and development: on farm skills/knowledge

off farm courses

career development.


Tips for effective orientationAsk existing employees to be part of the orientation process.

Each person could spend time explaining their role and

demonstrating a specific task. This will aid team work and ensure

everyone feels part of the team. Often current employees will have

great ideas for topics to cover in orientation so ask for their input.

During the orientation process look for any training needs a

new employee may have and make notes. These skill gaps can

then be incorporated into the training and development plan.

Ensure you document the process used and think about

creating an orientation folder which contains all the information

a new employee needs. This will save significant time during the

next orientation.

Record what has been covered during orientation in a checklist

and ask your employee to sign this document. This could be

valuable in a dispute, although its primary function is to encourage

open communication between you and your employee.

Learn how to plan workforce requirements, attract quality

candidates for job vacancies, interview strategies, how to make

an offer, set up accommodation for new staff and carry out

staff orientation.

Get a copy of the DairyNZ QuickStart recruitment kits,

available online at dairynz.co.nz/people/recruitment

or by calling 0800 4 DairyNZ (0800 4 324 7969)

How much does staff turnover cost you?

Use the Cost Calculator at dairynz.co.nz/turnover-cost-calc

dairynz.co.nz

0800 4 DairyNZ (0800 4 324 7969)

DairyNZ QuickStart Recruitment Kit– Assistant Manager

Your solution to getting recruitment right, the first time

dairynz.co.nz

0800 4 DairyNZ (0800 4 324 7969)

DairyNZ QuickStart Recruitment Kit– Farm Assistant


dairynz.co.nz

0800 4 DairyNZ (0800 4 324 7969)

DairyNZ QuickStart Recruitment Kit– Farm Manager


1

dairynz.co.nz

0800 4 DairyNZ (0800 4 324 7969)

DairyNZ QuickStart Recruitment Kit– Herd Manager



Take a break off the farm to refresh and rechargeAs another challenging season draws to a close and a new season approaches, taking time off the farm is a priority.

A complete break away recharges, refreshes and reinvigorates.

Winding down helps regain balance, perspective, motivation and

energy; and well-rested people are more resilient, more likely

to make better decisions and cope better with daily challenges

when the busy season arrives.

With a small farm team, scheduling time off for everyone can

be more difficult than sharing the load within a big team. You

might consider:

• buddying up with a farmer neighbour during the quieter

times to give each other a break

• booking relief staff well ahead to cover time off for everyone

– including you

• working with your farm team to organise rosters so all staff

have the opportunity for good work/life balance.

Making time for wellness needs to be a priority throughout

the year. Farmers often pay close attention to the health and

wellbeing of their animals and pastures but are not always so

vigilant about their own needs.

The World Health Organisation defines wellness as “a state of

wellbeing in which the individual realises his or her own abilities,

copes with the stresses of life, works productively and fruitfully,

and makes a contribution to his or her community.” This state

of wellbeing comes from having a balanced life and enjoying

what we do.

Things which keep us well are connecting with others,

continuing to learn, spending time doing things we enjoy,

keeping active and giving to others. Rest and making good food

choices are also important.

Making time for things that revitalise physically, emotionally,

spiritually and intellectually is important for wellness and building

resilience. Time is not plentiful in a busy farming business, but

unfortunately those that don’t make time for wellness, will

eventually have to make time for illness.

So take the time to get off the farm for a decent break. Your

family, your farm team and your business will be better for it.

• Spend time with people you enjoy

• Attend functions and join groups, both within the

industry and outside

• Watch and read things which stimulate your mind

• Volunteer your time and talents – e.g sport, community,

charity

• Walk around the farm when you can, instead of

using the bike or ute

• Listen to music that inspires you

• Try to get consistent sleep

• Do things which make you laugh

• Eat plenty of fruits, veggies and protein – and avoid

high sugar and high fat foods

• Limit your alcohol and caffeine intake.


Hearing how others have progressed in the dairy industry has been inspirational for Woodlands farming couple, Janine and Andy Chrystall.

The Chrystalls are participating in one of DairyNZ’s Biz Grow

progression groups, designed to build strategic, financial and

people management skills to equip participants for greater equity

holding or owning their own farm business.

They’re milking 565 cows in Southland – contract milking 90

percent of the herd and 50:50 on the other 10 percent.

“We’re thoroughly enjoying Biz Grow. We heard about

progression groups from Richard Kyte, DairyNZ’s regional leader

for Southland and at the time we were lower order sharemilking

and wanting to get a 50:50 job.

“Hearing from the guest speakers how they went about growing

their herd and equity has given us a lot of inspiration and motivation

to apply what we’ve learned to our own business. Andy and I always

have a lot to talk about on the drive home from the group.”

For Andy, learning about good governance has been the

biggest thing, says Janine.

“Realising he doesn’t have to be on the roster all the time has

freed him up to take more of a planning role to help drive our

business forward,” she says.

The couple are finalists in the Southland region for the Dairy

Industry Awards Sharemilker of the Year and say Biz Grow

helped give them the confidence to enter the awards.

“It helped us realise that we already have good systems in

place, and motivated us to get some of those things on our “to

do” list done in time for judging.

“If you’re considering signing up for a progression group – do

it. Being successful isn’t just luck – you need to set yourself up.

Joining a DairyNZ progression group can help you achieve that.”

Progression groups have been developed for those who

want to enhance their skills and career options. They kick

off in June and there are two groups to choose from:

Biz StartDesigned to meet the needs of farmers in the variable

order, contract milker, herd manager, 2IC and farm

manager positions that are looking to progress in the

dairy industry. Sessions will focus on building business

and people management skills to equip them for senior

level management positions, or owning or running their

own farm business.

Biz GrowDesigned to meet the needs of farmers in sharemilker

and equity partner positions who are looking to speed up

their progression in the dairy industry. Sessions will focus

on strategic, financial and people management skills and

resources to equip participants for greater equity holding

or owning their own farm business.

Register at dairynz.co.nz/progression

Farming couple inspired by success of others

Southland sharemilkers Janine and Andy Chrystall have been inspired by DairyNZ’s Biz Grow progression groups.

Register your interest for 2015-2016 progression groups now


Preparation the key to a winter of content for housed cows As autumn draws to an end, farmers with barns are preparing to bring their cows in for winter. There are a few steps to follow to ensure the barns work well.

Two Southland farmers with similar attitudes but differing

systems are readying their winter housing to make sure their

herds will be comfortable.

Kevin Hall based in Wyndham has three woodchip loose

housed facilities on his support block where he overwinters 680

cows from May to August.

Cows usually arrive on the block over two or three days and are

gradually introduced to the barns, keeping them in the same mobs.

“Having well-fed cows is essential. Most dominant cows are

happy to lie down when they have eaten enough. We don’t see

any problems with cows bullying each other when we provide good

volumes of feed and push the silage up every day,” says Kevin.

It’s really important to check the water system to make sure

that the pressure hasn’t changed since the barn was last used,

says Kevin.

“Never underestimate how much cows drink when they first

are put onto a silage diet, especially if the silage is a bit drier. I

would estimate my cows drink 30 to 40 litres a day,” says Kevin.

Kevin’s preparations start well before winter, water blasting

the effluent systems and making sure bedding is ordered.

“It’s worthwhile ensuring the bedding is level prior to cows

going in. Leaving cows to level their own bedding can be risky as

big dips can cast cows on occasion,” says Kevin.

Tapanui farmer Mark van Baarle has had a freestall barn for

eight years where he houses 525 cows. At other times of the

year Mark uses half his barn as a feed pad.

Hygiene is a priority and Mark water-blasts the whole barn

annually, paying special attention to the mattresses. This base

cleanliness sets up a system for disinfecting the mattresses twice a

week, scraping the backs of mattresses and using lime on a daily

basis. Mark even makes his own lightweight mattress scrapers to

make it easier for the farm team to complete the task.

New staff are fully supported with written procedures and a

reference document for use after the first training sessions have

taken place.

Both Kevin and Mark have lots of experience with their systems

and realise the importance of keeping up-to-date with minor tasks

and to organise the major ones when the facility is empty.

Six tips for happy cows in winter barns

1. Check the water pressure and ensure plenty of water.

2. Ensure plenty of feed.

3. Introduce cows to barns gradually – keep in same

mobs.

4. Make sure bedding is ready – don’t leave cows to

level their own bedding.

5. Set up a stringent cleaning regime.

6. Discuss with staff how the facility will operate and

train them on new machinery.

Tapanui farmer Mark van Baarle has had his freestall barn for eight years.


BUSTED.

Theileriosis is a risk for some parts of the South Island as the Ministry for Primary Industries has confirmed infection in cattle in the South Island from local populations of infected ticks.

Dr Nita Harding, technical policy adviser, veterinary, busts this myth.

THE MYTH:

Theileriosis won’t affect farmers in the South Island because there are no established tick populations there.

myth busters

ry,

The Ministry for Primary Industries (MPI) has now confirmed

three cases of Theileriosis in the South Island – a West Coast dairy

herd, a dairy herd near Ashburton and a single cow in Blenheim.

DairyNZ is concerned that there may now be infected tick

populations in the South Island. The West Coast case was linked

to cows being grazed in the Canterbury area and then being

brought back to the West Coast.

It’s important that farmers remain vigilant and monitor stock,

particularly calving cows and young stock. Cases of Theileriosis

are usually higher in autumn and spring. However, at any time

of year, if animals present with signs of anaemia, a veterinarian

should be consulted.

More South Island cases are likely now that the disease has

been diagnosed there, especially in Nelson/Marlborough, where

ticks are known to be present.

At this stage, we just don’t know the degree of infestation or

location of local tick populations and therefore the exact level of

risk to different regions in the South Island. Farmers should be

on alert and look out for signs of the disease, actively managing

any risks from transporting stock in particular. If you are moving

cattle north, be aware that they may come into contact with

ticks and Theileria.

Southland and Otago are free of Theileria and unlikely to

have ticks. However if there are any unusual animal health

signs, especially in cows in late pregnancy, farmers should seek

veterinary advice. The onset of the disease can be subtle.

Theileria is more apparent when animals are under stress, so

maintaining animals in good health and at the recommended

body condition score will provide them with more resilience in

dealing with any disease challenge.

For more information on Theileria visit dairynz.co.nz/theileria

Signs of anaemia in dairy cows

• Cows straggling on the walk to the shed.

• Increased respiratory and heart rate.

• Pale, rather than healthy pink vulva.

• Pale udder, yellow eyes.

• Cows with no strength or energy to do anything.

Theileriosis is a disease caused by a species of Theileria, a

blood-borne parasite that only affects cattle and is primarily

transmitted by ticks. A new strain of Theileria orientalis called

ikeda was first identified in Northland in late 2012. This strain

has been associated with anaemia and death in cattle.

Cattle are at risk when moved to areas where infected ticks

are present. Likewise, if an infected animal is transported,

it can spread infection to ticks in the new location, in turn

spreading disease to uninfected animals.


SFF Project

regional research

Otago project tests water monitoring standards An on-farm trial will help farmers prepare for new water monitoring requirements in the Otago Water Plan.

From April 2020 when the Otago Water Plan comes into effect

farmers will need to comply with new expectations for managing

their contaminant losses.

Part of this expectation is that farmers will monitor the quality

of water discharges from their properties to ensure they comply

with current discharge rules and with the new thresholds of the

Otago Water Plan.

While the plan and supporting information attempts to set

out how the monitoring should be undertaken, there remains a

lack of clarity on some aspects of the water quality monitoring

requirements (particularly how frequently, number of sites per

farm etc).

There also remains a lot of uncertainty about whether the

thresholds are practically achievable in all situations.

The aims of the on-farm water quality monitoring project are:

• To develop, in agreement with the Otago Regional

Council (ORC), a practical monitoring guide that gives

farmers confidence that they are meeting councils

requirements for farm-based monitoring. The guide

needs to be practical for farmers and able to ensure that

data is robust.

• Assist farmers to understand the monitoring data and

explore options for changes if needed.

• Share information with other farmers via field days

regarding the recommended monitoring guide,

interpretation of water quality data and management

strategies.

Case study farmsThe overall approach will be via case study farms with 6-7

participating farms spread across the Otago region. Main areas

for the case study farms are: North Otago, Upper Taieri, Taieri

Plains, Milton, Balclutha and West Otago (Pomahaka).

For each of the case-study farms, a Sustainable Milk Plan will

be developed initially, which will enable identification of any

at-risk parts of the farm operation. A water quality monitoring

programme will be developed with ORC and the farmer’s input,

and set up using an appropriately trained person to collect

samples. Also, the farmer will be asked to record and provide

data on relevant farm activities that may impact on the water

quality monitoring discharges (such as stock movements,

cultivation, fertiliser and effluent applications).

What we are looking for in case study farms• Farms that have relevant type discharges (subsurface or

open drains that flow during base flows, swales or wet

areas that run to waterways during base flows (ie not just

when it rains).

• Farmers willing to have someone come onto their farm at

least monthly to collect samples and farm information.

• Farmers willing to explore options for making changes if

necessary.

• Farmers happy to have field days on their farms to discuss

its monitoring data and any changes they may have made.

• Farmers willing to keep and share necessary farm data.


grass roots

Feedback big pay off of pasture competition experienceFeedback from industry experts was one of the big pay offs for Te Aroha farmer James Booker when he took top honours in the Pasture Renewal Persistence competition.

James, 28, won best pasture of more

than three years old in the competition

run by the DairyNZ-led Pasture Renewal

Leadership Group.

“I entered the competition out

of interest really, I thought it was a

good paddock and I’m happy as it was

recognition for following a best practice

regrassing programme,” he says. “To get

the judges’ and fellow farmers’ feedback

is quite valuable, and most agreed that

proper pasture establishment was vital to

the success of perennial pastures”.

James, who also won $1500 of pasture

renewal products as a prize, has been in

an equity partnership with his parents

Peter and Sue Booker, milking 400 cows

on the 117ha (effective) property.

The paddock was a decade old and

was poorly performing when regrassed in

March 2010 with One50 AR37 after being

in maize over summer.

James says since then it has consistently

been his best paddock.

“It gets a fair bit of a heavy workload

and still responds,” he says.

The paddock was a bit more free-

draining than the rest of the farm which

had predominantly heavy peat soils, says

James. The farm borders the Waihou

river, which has enabled the farm to be

irrigated for the past 20 years.

James says the pasture received no

special treatment.

“I don’t think I’m doing anything

different to other farmers. I guess there

are two key things I concentrate on;

minimising pasture damage by avoiding

overloading the pasture with livestock

in wet weather and using fertiliser to

maximise pasture yield”.

He also monitors pastures with a plate

meter year round, especially in spring

and autumn. “Managing and matching

feed supply with cow demand is the

fundamental driver of profit in any

farming system, and with daily pasture

growth rates forever changing, it’s vital

growth is recorded.”

The success comes at an interesting time

as the farm has recently been sold and

James is in the process of exploring new

opportunities for next season. “I hope to

further replicate the production and profit

gains but on a property with more scale”.

One of the judges, DairyNZ developer

Sally Peel, says judges had been

challenged as to why James’ paddock

won for persistence when it was an

irrigated pasture.

“Our answer was his knowledge of the

process, his grazing management and use

of the Forage Value Index in his current

decision-making,” she says.

The other judges were AgResearch

senior scientist Dr David Hume, retired

DairyNZ scientist Errol Thom, and DairyNZ

scientist Cathal Wims.

James Booker

Te Aroha, 117ha effective

Perennial ryegrass cultivar:

One50 AR37

Ploidy: Diploid

Date sown: March 2010

DairyNZ developer Sally Peel, James Booker and Agriseeds pasture systems manager Graham Kerr at the field day at James' Te Aroha farm.


New project aims to improve health of Waipa RiverDairyNZ and the Waikato River Authority are working together to help restore and protect the Waipa River through the introduction of Sustainable Milk Plans.

Farmers in the Waipa catchment have

an opportunity to become involved and

to adopt good environmental practices

which will stand them in good stead for

the future.

Waikato River Authority chief executive

Bob Penter says the Sustainable Milk Plans

(SMPs) are key projects.

“The recent Upper Waikato

catchment programme was one of

our first big funding partnerships and

the environmental results that have

been achieved there with the 640 dairy

farms taking part have been extremely

encouraging. We are pleased to be able to

fund a new extension of that programme

into the Waipa River catchment given it

is a priority area for the Waikato River

Authority,” says Mr Penter.

First farmers to sign upAmong the first farmers in the Waipa

region to sign up to the project are John

Hayward and his wife Susan O’Regan

who farm 240ha in the Mangapiko

Stream catchment south of Cambridge.

They milk 420 cows on a 140 effective

ha milking platform.

“While as a farmer I have some

concerns that we are losing control of

our farms and being told what we can do

on our land, I am also passionate about

waterways and being sustainable; so we

are keen to be involved,” says John.

DairyNZ Waipa catchment project

manager Nicola McHaffie says that SMPs

are not about telling farmers what to

do, but helping them identify risks and

formulate practical solutions.

“We’ve created a model that supports

farmers to make changes through

advice and individualised plans. We have

conversations with them about their farm.

This approach is about setting out a plan

that the farmer can see will work for their

farm and for the local environment.”

“The project is demonstrating to policy

makers and the wider community that

farmers are committed to sustainable

dairying and improved water quality.”

Sustainable Milk Plans are managed

by DairyNZ and strongly supported by

the dairy industry including Fonterra,

Open Country, Miraka, and the Waikato

Regional Council.

Farmers who participate receive:• a free plan tailored to their farm with

farmer agreed actions

• consultant support to implement the

plan

• a benchmark for where their farm is

at now

• an understanding of how their

actions have contributed to river

improvements.

The first subcatchments in the Waipa

catchment to receive SMPs are;

Mangaotama and Mangapiko streams,

Pirongia streams, Kaniwhaniwha streams

and Waipa Pirongia to Ngaruawahia. If

you live in one of the sub-catchments and

would like to register for a Sustainable

Milk Plan, contact Nicola McHaffie,

project manager. 027 838 5943, or at

[email protected].

To see a map of the catchment visit

dairynz.co.nz/sustainablemilkplans

John Hayward's and Susan O’Regan’s farm in the Mangapiko Stream catchment. They are among the first farmers there to develop a Sustainable Milk Plan.


What does pasture really cost you as a farmer?It has been suggested recently that as a feed, pasture is more expensive than supplements. DairyNZ developer Sean McCarthy disagrees and sets out a framework for costing pasture.

feed & farm systems

When estimating the cost of pasture versus supplements the

easiest way to look at it is to divide it into steps.

Within New Zealand's pasture-based farm system, the primary

aim should be to ensure as much of the available pasture is eaten

so there is minimal waste and that the farm grows as much high

quality pasture as possible on the available land.

Management cost (eat more)The most basic consideration is good grazing management at

an operational level (daily tasks and decisions). Costs associated

with this include upskilling and time allocated to grazing

management. Interestingly, in a recent survey of 500 farmers, 62

percent responded that “There’s plenty of room to increase the

amount of pasture eaten on my farm”.

These skills and time which we will call management costs

equate to about 1c/kg DM.

Basic inputs (grow more)The next level to ensure maximum pasture growth involves

using some additional inputs such as fertiliser or weed control,

regrassing paddocks, and better decision-making at a tactical

level such as correct paddock selection and rotation length.

Adding these inputs and extra skills to the mix takes the cost to

about 10c/kg DM.

Some supplement use may be required to maximise growth of

pasture, for example preventing over-grazing or extending the

rotation length in autumn. These two basic steps of management

cost and basic inputs should be exhausted before any other

additional costs are introduced into the business.

Land cost (buy more)This step is when strategic decision-making becomes

necessary. This decision comes when a farmer gets to a point

where they have exhausted previous options: No more grass can

be grown or eaten on their farm.

The choice then is to spend money buying more supplementary

feed or acquiring more land. To make the correct decision the

cost of both options must be measured against each other.

The more money being spent on supplementary feed, the

more a farmer should be assessing the option of purchasing

additional land.

To conclude, when considering increasing feed supply, ask

yourself if your cows can eat more, can you grow more or do

you need to buy more. This is an important consideration in

a volatile environment as businesses require a high return for

every dollar invested.

Framework for assessing the cost of pasture

Management cost

Basic inputs

Land cost

Supplement cost

c/kg DM0 10 20 30

Exhaust these opportunities on your farm

Eat more

Grow more

Buy more


bits & bobs BY THE NUMBERS

2300The net increase in the number

of workers the dairy industry is

expected to need by 2025.

25,700The extra trained workers that will

be needed by 2025 to replace the

natural process of people leaving the

industry or retiring.

Dear DairyNZAt the start of this season I employed a young and relatively

inexperienced farm assistant. She has been with us almost 10 months

and is doing a great job. She loves the cows, has a great eye for detail

and is passionate about the farm. I would love to see her progress

through the industry but am unsure what her goals are and if

progressing interests her. What is the best way to bring it up with her?

It’s good to hear your farm assistant is doing an awesome job and is

passionate about the farm. You and your team have done a great job

coaching and mentoring her.

Often when we think people are ready to progress they too are thinking

about future opportunities, but might not have the confidence to tell you.

The best way to discuss people’s career goals is to have a casual conversation

about how things are going and what their intentions are.

These conversations are a great opportunity to find out what motivates

them and what their career plan is. As a manager or employer you can also

identify what training and development you can offer to help them progress

within the industry or to excel at their current role.

DairyNZ has just released the Career Pathways Guide – it has career

planning catch up work sheets designed for discussing employees' career and

progression. To order a copy visit daiynz.co.nz/ publications or phone 0800 4

DairyNZ (0800 4 324 7969). For more information on growing your staff, visit

dairynz.co.nz/people

The DairyNZ People Team

Jargon

N conversion efficiency

(NcE)

The proportion of nitrogen going

into a farm that is converted to

saleable products.

WEB WATCHDairyNZ’s new bull app

Create a more profitable herd with a

click of the mouse. DairyNZ has recently

launched a new online tool called Bull

Team Builder which allows you to custom

build a bull team based on the traits you

most value in your herd. Bull Team Builder

gives you all the information you need in

one place. Vist dairynz.co.nz/bull.

News scoop

New manager to strengthen DairyNZ’s Forage Value Index

The addition of persistence and metabolisable

energy (ME) traits to the DairyNZ Forage Value Index

(FVI) are seen as key targets for Cameron Ludemann

in his new role as Forage Value Manager.

Cameron, originally from a mixed farm in mid-

Canterbury, joins DairyNZ having submitted his PhD thesis last year at the

University of Melbourne.

Although Cameron recently published a method of assessing the value

of pasture persistence, he says that adding the persistence trait to the FVI,

which currently only includes seasonal dry matter yield traits, will present a

big challenge.

Cameron will discuss the FVI at the Lincoln University Research Dairy Farm

on13 May (details available at dairynz.co.nz).


HUMANE SLAUGHTER PACK Are you up to speed with changes

in the Dairy Cattle Code of Welfare

2014? A new information pack

is available outlining the new

legislation, approved methods of

humane slaughter, safety procedures

and a poster providing easy to follow

guidelines on how to prepare for

and carry out on-farm slaughter.

Download or order the pack from

dairynz.co.nz/humaneslaughter.

Order your publications online at dairynz.co.nz or call 0800 4 DairyNZ (0800 4 324 7969).

ANIMAL EVALUATION Visit the New Zealand Animal

Evaluation website nzael.

co.nz for information on the

latest changes to BW (breeding

worth), herd statistics, animal

evaluation index averages,

ranking of active sires, bull

search and upcoming workshops

on understanding traits of

production (TOP) and classification.

Visit nzael.co.nz.

dairynz directory...DRY OFF TO CALVING

the seasonal diary

For more seasonal information or to order your copy of the Seasonal Diary poster, visit dairynz.co.nz/seasonaldiary.

TRANSPORTING STOCKAre your animals ready for transport? The aim of preparing

stock for transport, including standing stock off, is to ensure a

comfortable and safe journey for cattle, to reduce effluent on

public roads and to ensure cattle arrive at their destination in a

fit and healthy state. For information on preparing cows and a

checklist for getting cows ready for transport visit

dairynz.co.nz/transportingstock.

Feed

Make sure feed budgets allow for the extra demand with

R2 heifers returning home.

Be aware of the possibility of nitrate poisoning on lush new

pasture growth.

Treat new pasture (and chicory crops) with great care. First

year management largely determines pasture persistence.

Visit dairynz.co.nz/feed

Stock

Make sure all animal health vaccinations and treatments are

up to date for year one and two heifers. Check with your

vet.

If moving stock talk to your grazier about Theileria risk.

Get liver biopsies done on cull cows to determine herd’s

mineral status. This will allow for a well balanced programme

of supplements to be introduced.

People & business

Monitor your budgeting and forecast cashflow for the

2015/16 season as it is likely September/October will be

challenging months financially. Ensure you look out 18

months when building your cashflow and keep it up to date.

Involve staff in understanding your approach to cost control.

Being physically active is key to staying sharp and energised.

Just 20 minutes of moderately intense exercise each day can

make all the difference to your productivity and mood.

Looking after yourself means spending time doing things

you enjoy. Schedule a few hours this week to ensure you

have time for something you love. And if you love your

work, make sure that you schedule in the tasks which bring

you the most joy.

Visit dairynz.co.nz/people

Environment

Maintain and service effluent equipment for the coming

season.

Train staff on effluent management before calving. Cover

rules, roles, responsibilities, monitoring, recording and

contingency plans.

DairyNZ Seasonal Diary

For more information visit the DairyNZ website dairynz.co.nz 0800 4 DairyNZ (0800 4 324 7969)

DN

Z05-

002

Setting pasture and animals up for spring• Budget your feed to when feed supply matches demand, especially if often

short of feed in the spring.• Monitor, monitor, monitor pasture cover and BCS (body condition score) at

least every three weeks and take action if not on target – secure additional supplement or graze off dry cows, as required.• Set up how spring feed will be allocated e.g. Spring Rotation Planner.

• Set up systems to feed cows and avoid pugging damage in wet weather.• Spend time checking feed allocation of pasture, crops and supplement.

Poor feed allocation is the number one cause of cows not achieving target BCS at calving.

• If grazing off, clarify expectations with your grazier regarding feed, cow condition and welfare.

• Treat new pasture (and chicory crops) with great care. Management in the first year largely determines pasture persistence. • Realistically, well-fed cows can only gain half a BCS when dry, unless luxury

fed pasture and a supplement that is very efficient for liveweight gain e.g. PKE.

• Look after heifers. They must be BCS 5.5 at calving. • When heifers arrive back from grazing, check mineral levels and worm burden.

• Transition cows onto crops and offer enough fibrous supplements and minerals. Refer to DairyNZ Farmfacts Fodder Beet – feeding to dairy cows (1-73) and Winter crops – feeding to dairy cows (1-75).• If getting more than 85% utilisation of a crop, cows may be eating the lower

value parts of the crop, and cows will not be gaining weight.Tip Check out the Spring Rotation Planner at dairynz.co.nz/srp.

Take care of pregnant cows• Minimise risk of abortion by ensuring cows and replacement heifers don’t

have access to macrocarpa (cypress) or pine needles, and mouldy silage.• Be wary of nitrate poisoning risk in new or rapid growing pastures, which

can also cause abortions.• Keep an eye out for signs of abortion and know what to do when a cow

aborts (see pg 140 of the DairyNZ InCalf Book).• Be ready to record calving problems, as described in the checklist on pg 133

of the DairyNZ InCalf Book. These records will be important for reducing calving problems in future.

• Set up protocols for drafting springers into mobs, according to calving dates

(for ease of supplement management and inspections).Tip Visit dairynz.co.nz/incalf for contact details of your local InCalf advisor.

Getting ready for calving• Get herd records up-to-date and order tags for heifers.• Mark early calving cows with a permanent marker (e.g. tail tape) so they

are easy to identify.• Vaccinate for rotavirus and leptospirosis. • Train heifers through the milking platform in readiness for calving. Try and

run heifers through the shed at least three times before calving. It makes a big difference in the spring, especially in a rotary shed.• Check and maintain races to minimise lameness problems.• Check there is access to a safe and operational restraint facility at runoffs,

to ensure urgent veterinary inspections can be carried out if needed. • Make sure stock are checked daily over winter (including at runoffs) to identify animal health issues early (e.g. down cows, slips/abortions). • Make sure yearling (R1yr) heifers are sufficiently fed through winter, and

have a drenching and mineral supplement plan. • Check and prepare calf housing facilities. Make sure there is a designated area available for separating sick calves, to minimise diseases from spreading.

• Decide on a calf feeding programme then order the feed and equipment needed.

• If sending cows off-farm for winter grazing, ensure animals being transported are fit and healthy, and have been stood off green feed for 4-12 hours prior to loading. Provide hay and water during the stand-off time.

• Stock up on metabolics and restock the antibiotic cupboard ready for calving.

Tip Visit dairynz.co.nz/calving for more information.

Carry out seasonal effluent maintenance• Carry out maintenance and servicing on effluent equipment for the

coming season.

• Work through your regional Compliance Checklist to identify areas which need attention.

• Train staff on effluent management before calving. Cover: rules, roles, responsibilities, monitoring, recording and contingency plans.• Avoid runoff from forage crops and hillside grazing reaching waterways –

create a 3m grass buffer strip with a hot wire.• Stand-off pad effluent must be captured and managed through the effluent system.

Tip For more information, visit dairynz.co.nz/effluent.

Minimise the impact of mastitisPrevent• Treating heifers with internal teat sealant four weeks before calving may

be an option to prevent mastitis at calving. Discuss with your vet.• Teat spraying springers 2-3 times per week before calving, or removing

calves from cows within the first 10-12 hours after calving, can also help reduce mastitis.

• Ensure all cows are milked out completely, before leaving the colostrum mob.

• Teat spray after every milking. Add extra emollient until the weather improves and risk of teat skin damage reduces. Tip For more on making up teat sprays, see DairyNZ Healthy Udder `Prevent

3’ and SmartSAMM Guideline 7. Available at dairynz.co.nz/smartsamm.Find and treat• Keep an eye out for cows with dry cow mastitis. Check dry cows daily in

the paddock, and if possible, palpate udders every 2-3 weeks. • Set up systems to ensure all newly calved cows are stripped and checked

for clinical signs at each milking in the colostrum mob. Use the Rapid Mastitis Test before they leave the colostrum herd to identify high SCC (somatic cell count) cows, which can be retained in the colostrum herd for another 24-48 hours.

• Record details and treat only clinical cases.• Continue stripping all cows weekly for clinical signs during the first 6-8 weeks of the season. Do the task over two or more milkings to spread the load.

Plan with your people• Review the autumn period with the team – what went well? What could

be done better? Make sure the lessons are learnt and documented for next season.

• Review objectives and plans for winter/spring management with your team. Make sure everyone is prepared and understands the routine and their responsibilities over calving. • Complete performance appraisals for all people on-farm.• Complete final paper work and exit interviews if you have employees

moving on. What can you learn to make yourself a better employer?• New employees? Get the following in place before new people begin

working on-farm: - employment agreement – signed by both parties before they start work - job description - orientation plan - dates in your diary to allow time to conduct an effective orientation

programme - tenancy agreement (if providing accommodation) - annual roster - communication is often a challenge when new staff come onboard.

Could setting regular team meetings help?Tip To get new employees off on the right foot, make sure you have a look

at the DairyNZ QuickStart Recruitment Kits at dairynz.co.nz (publications >

people).

Keep a keen eye on your business • Cost control is the biggest driver of profitability on dairy farms and spring

is probably the time of the year when costs can slip most easily. Some tips to control costs: - make sure you have a plan and a budget to manage this period.

Sticking to a plan (within reason) means that you will not be making spur-of-the-moment decisions.

- monitor actual to budget to ensure you don’t get any nasty surprises. This is estimated to reduce costs by 10%. - visit dairynz.co.nz/financials for more details.• Spend some time thinking about the risks your farm faces, how you might

manage them and at what trigger points to take action. Consider things such as storms, unexpected staff changes, accidents and changes to farm input costs.

• Take a well-deserved break. Get off-farm and take the time to start or fine-tune your plans for the coming season.• Reflecting on the season to date, is there room to improve your farm

business management skills? Visit farmingsmarter.co.nz. • Get your farm’s physical information into DairyBase and accounts to your accountant ASAP, to complete a full review of the season.• At the same time, request a DairyBase Level 2 toolkit to collect your farm’s

physical information as it happens through the coming season. This will enable you to reflect on what went well and what you might do better.

• Schedule time to go to your local discussion group, join a Progression Group or catch up with your neighbours. Keep up with what’s happening.

Talking to other farmers is a useful way to keep on top of management and challenge decision-making.

Set goals for next season• Identify 2-3 key goals and discuss with staff.• Set target production and other targets e.g. reduction in SCC, AB (artificial

breeding) submission rates, cow losses.Tip DairyNZ Quickplan can help with goal setting. Visit dairynz.co.nz/quickplan.


regional update TARANAKI

Conference in Hawera covers once a day milking A conference in Hawera next month will cover the latest knowledge and understanding of once a day milking.

Robert and Verna Bourke, who are part of a farmer committee

helping to organise the conference on June 10-11, say there is a

lot more information available to farmers who are milking once

a day compared to ten years ago.

“When we first started milking once a day we were told to

increase our herd by 15 percent. That was our biggest mistake

because a cow milked once a day eats just as much as a twice a

day cow,” says Verna.

We bought an extra 30 cows that we didn’t need to. There

is so much more information out there now,” says Verna, who

encourages farmers to access this information at the conference.

Robert and Verna started milking once a day 11 years ago on

their Patea farm. They are now carrying out a succession plan to

hand over the 58ha (effective) farm to their daughter and son-in-

law, who have bought into the business.

“Robert had been milking for so many years, since leaving

school, and milking once a day gave him a new challenge and a

different outlook on milking cows,” says Verna.

“We were only a really small farm so to employ someone

would have taken the cream. Once a day provided less work-load

for us.”

The Bourkes sourced information from a Huntly couple who

were milking Friesians once a day – they then talked the decision

through with friends.

They went to a once a day conference in Hamilton not long

after they changed their milking frequency and another one last

year in Masterton. They have also been regular attendees at the

DairyNZ Southern North Island once a day discussion group for

the past four years.

Verna encourages farmers to attend the conference in June.

The conference will go through a lot of detail and will include

very good once a day farmers speaking,” says Verna.

DairyNZ senior consulting officer Leo Hendrikse is helping to

organise the conference alongside Massey University emeritus

professor, Colin Holmes.

He says the conference, themed ‘a broader approach’ gives

farmers a great opportunity to hear from industry experts and

other farmers.

“This seeks to open farmers’ minds to the excellent opportunities

that exist for profitably milking once a day,” says Leo.

“The benefits of milking once a day really become evident

after two seasons, when reproduction, number of replacements

needed, animal health, lameness, wintering costs and condition

score all improve. This on top of obvious savings in staff

expenses, power and shed expenses and generally reduced

pressure on stock and people make once a day milking an

attractive option for many.”

“Knowledge and understanding of once a day systems is

growing and there are initiatives underway for more reliable and

useful breeding of cows suitable for this system. These topics will

be covered by guest speakers and farmer speakers at the event.”

The two day conference includes a dinner on the first night and

two farm visits – one on a farm new to once a day milking and

another to a farm which has milked once a day for eleven seasons.

For more information visit dairynz.co.nz/events.

Once a day Milking Conference

June 10-11

The Hub, Hawera

EVENT DETAILS:


regional update dairynz.co.nz/events

DairyNZ runs a wide variety of farm system discussion groups, field days and specialist events. For the full list of what’s on near you, visit dairynz.co.nz/events.

MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

NORTHLANDA field day on May 5 on the Far North Partner farm will

provide a review of the past season and a look at the plan for

the coming months.

Tony Lunjevich and Briar Lissington are 50:50 sharemilkers

for Tony’s parents. They became part of the focus farm project

last year.

The 113ha farm, near Takuhue, south of Kaitaia is on

rolling to steep contour and has a specific focus on profit from

pasture. Farmers have been following the progress of the farm

for the past year.

BAY OF PLENTY A second round of Tactics for Tight Times field days take

place this month with the theme “How low will you go?”

Key topics include mapping cashflow balances for the next

12 months and they will continue to monitor host farmers

and provide them some constructive feedback. There will also

be sessions on ‘Minimising risk and maximising productivity

– reducing stress and getting our farm teams off to a great

start’. Following on from these events are some special one-

off workshops to help farmers do their own cashflow for next

season, later in May. The Tactics for Tight Times events are

in Whatakane at Rhys Watkins’ farm (May 6) and Rotorua at

Nick and Bec Simmonds' farm (May 14).

SOUTH WAIKATO A series of events in May will explain how Waikato

Regional Council’s Healthy Rivers Plan for Change will affect

farmers’ businesses and the way they farm. The events, led

by farmers, will provide information on the health of Waikato

rivers and lakes and new rules and limits. There will also be

details on how farmers can influence decisions relating to the

environment and prepare for change.

The Healthy Rivers Meetings are in Te Awamutu (May 6),

Tokoroa (May 7), Cambridge (May 13) and Otorohanga (May 19).

MAY EVENTS

NORTH WAIKATO Farmers who employ staff have an opportunity to gain

confidence as an employer at a DairyNZ People Expo in

Hamilton on May 8.

Expert speakers including an employment law specialist, HR

specialists and other rural professionals will speak on a range

of topics.

A panel of representatives from Federated Farmers,

DairyNZ, Labour inspectorate and Worksafe will also be on

hand to answer questions.

For details visit dairynz.co.nz/events.

65 NORTHLANDFar North Partner farm – Takuhue.

7 SOUTH WAIKATO

Healthy Rivers meeting – Tokoroa.

9

15 1

8 NORTH WAIKATO

DairyNZ People Expo - Hamilton.

2

12 SOUTHLANDSouthland Demonstration Farm Focus Day

20

m

2

13CANTERBURYDairyNZ workshop on forage

11114BAY OF PLENTY

Tactics for Tight Times – Rotorua

21 22

28 29

21 2221LOWER NORTH ISLAND

South Wairarapa Discussion Group

18 19

25 26

1918 TOP OF SOUTH ISLAND/WESTLAND

Tactics for Tight Times – Aratika


NorthlandRegional Leader Chris Neill 027 499 9021

Far North Kylie Harnett 027 243 6503

Lower Northland Mark Forsyth 021 242 5719

Whangarei West Corey Thorn 027 886 0221

North WaikatoRegional Leader Phil Irvine 027 483 9820

South Auckland Jamie Haultain 027 486 4344

Hamilton North Jaimee Morgan 021 245 8055

Matamata Phil Irvine 027 483 9820

Paeroa/Te Aroha Phil Irvine 027 483 9820

Hauraki Plains Fiona Wade 021 242 2127

South WaikatoRegional Leader Wade Bell 027 285 9273

Te Awamutu Willy Burnell 027 475 0918

Otorohanga Sarah Dirks 021 770 859

South Waikato James Burrows 027 483 2205

Bay of PlentyRegional Leader (Acting) Wilma Foster 021 246 2147

Western Bay of Plenty Wilma Foster 021 246 2147

Central Bay of Plenty Kevin McKinley 027 288 8238

Central Plateau Moana Puha 021 225 8345

Whakatane Wilma Foster 021 246 2147

TaranakiRegional Leader Katrina Knowles 021 831 944

South Taranaki Stephen Canton 021 246 5663

Central Taranaki Shirley Kissick 027 704 5562

Coastal Taranaki Michelle Taylor 021 276 5832

North Taranaki Lauren McEldowney 027 593 4122

Lower North IslandRegional Leader James Muwunganirwa 027 499 9020

Horowhenua/Wanganui/ South Taranaki

Scott Cameron 027 702 3760

Wairarapa Leo Hendrikse 021 286 4346

Tararua/Coastal/Southern Manawatu

Abby Scott 021 244 3428

Southern Hawke’s Bay/Central/Northern Manawatu/Rangitikei

Julie Morris 021 222 9023

Top of South Island/WestlandRegional Leader Wade Bell 027 285 9273

Nelson/Marlborough Stephen Arends 021 287 7057

West Coast Ross Bishop 021 277 2894

Canterbury/North OtagoRegional Leader/Hurunui Virginia Serra 021 932 515

North Canterbury Noelle Fox 021 246 2775

Mid Canterbury Erin Sinclair 021 243 7337

South Canterbury Caleb Strowger 027 593 4124

West Canterbury Natalia Benquet 021 287 7059

North Otago Chrissy Williams 021 227 6476

Southland/South OtagoRegional Leader Richard Kyte 021 246 3166

South Otago Guy Michaels 021 615 051

Western Southland Monique O’Connell 027 702 2219

Eastern/Northern Southland Lucy Hall 027 593 4121

Southland/South Otago Nathan Nelson 021 225 6931

East Chatton and West Otago Tessa Geddes 021 309 563

Tuatapere/Dipton Anna Kempthorne 027 220 6691

DAIRYNZ CONSULTING OFFICERS

CANTERBURY/NORTH OTAGOEmployment law, dairy farm health, safety and

compliance are just some of the hot people management

topics to be covered at next month’s Profit from People

Expo organised by DairyNZ in Ashburton.

The event will include presentations from leading experts,

workshops and a panel discussion in which farmers have

the opportunity to submit questions and be part of the

discussion. The expo will be held on Tuesday May 12 from

9.45am- 2pm. Lunch is provided. For more information and

to register visit dairynz.co.nz/peopleexpo

TOP OF SOUTH ISLAND/WESTLANDA second Tactics for Tight Times event on Colin van der

Geest's farm in Aratika on May 18 will provide farmers with a

picture of what they will face in 2015/16.

How low will you go? And what can you do about it?

These will be the two questions discussed at the events. An

example cashflow budget based on an average sharemilker

or farm owner for the region will be provided to farmers.

An update on Colin’s business and the decisions he has

made over the last month will also be summarised.

For more information on Colin’s farm visit

dairynz.co.nz/tactics.

SOUTHLAND/SOUTH OTAGOA Southland Demonstration Farm Focus Day on May 12

will provide farmers with an update of the business.

This will include a financial year end update, a comparison

between actual and budgeted milk solids production, and

how the most was made of a favourable autumn period.

The Southland Demonstration Farm operates as a

commercial demonstration farm which provides a focal point

for the dissemination of information to southern South Island

dairy farmers.

For more information visit dairynz.co.nz/events.

LOWER NORTH ISLAND A number of farm system discussion groups are lined up

across the region. The discussions will centre on setting up

for calving and maximising productivity in spring. Key areas

for discussion will include tactics to achieve target cow

condition and average pasture cover at calving. Managing in

volatile milk price conditions will also be discussed, driven by

key messages from the Tactics for Tight Times Campaign.

For a list of discussion groups visit dairynz.co.nz/events.


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