dairy focus june 2011

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An Ashburton Guardian Supplement Giving back to Young Farmers Giving back to Young Farmers P3 P3 FOCUS Issue 37 - June 21, 2011 complete range of f arming supplies: * Delivered to you within 48 hours, Monday to Friday (subject to stock being available). Terms and conditions apply. Ashburton / Methven / Rakaia www.ats.co.nz 0800 BUY ATS / 0800 289 287 You order, we deliver Free * on-farm delivery

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Ashburton Guardian - Dairy Focus June 2011

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Page 1: Dairy Focus June 2011

An Ashburton Guardian Supplement

Giving back to Young Farmers Giving back to Young Farmers P3P3

FOCUSIssue 37 - June 21, 2011

complete range of farming supplies:

* Delivered to you within 48 hours, Monday to Friday (subject to stock being available). Terms and conditions apply.

Ashburton / Methven / Rakaia www.ats.co.nz0800 BUY ATS / 0800 289 287

You order, we deliver

Free* on-farm delivery

Page 2: Dairy Focus June 2011

2

ContentsContents

An advertising supplement ofthe Ashburton Guardian

Opinions expressed in this publication are not necessarily those of the Ashburton Guardian

Publication date: June 21, 2011 Next issue: July 19, 2011

We welcome any correspondence to either: Amanda Niblett, phone 307-7927 email: [email protected] Lance Isbister, phone 307-7953 email: [email protected]

FOCUS

Lance Isbister Ashburton Guardian

rural reporter

The growing urban rural divide, it’s an issue that comes up all too often at farmers’ meetings, but I question

just how seriously farmers take it.

In my role as a journalist I fall somewhere within that divide and the very nature of my job is working to narrow it through connecting the rural community with the wider community through writing about the issues.

I guess people’s main concern is that they’ll get grief from their farming peers when they see their name and image in the paper, but folks, please, this is something you’ll just have to get over if you want to close that rural/urban

divide, which is quite real.

I can accept and appreciate that some cockies simply don’t want to comment on an issue or event for a raft of reasons, they’re just as entitled to silence as they are to have their own opinion voiced.

I’d just like to see more farmers standing up for their industry and supporting the values which organisations such as A&P associations were established to promote.

We live in challenging times in which farmers have come under more intensive scrutiny regarding whether they farm sustainably … and believe me,

silence does nothing to alleviate this, it only perpetuates distrust in the wider community.

Some rural businesses (particularly the larger ones) would have us believe they can do no wrong even when issues such as ecoli poisoning come to light. But they just need to give the wider public credit and remember the public isn’t gullible enough to believe every positive spin put on a problem.

That goes for farming as well and when it comes to issues such as high milk prices, I’m just as keen to hear farmers’ side of the story as those who raised the issue in the first place.

I have no hidden agenda, but I expect when I talk to someone in the industry about a topic directly, that I receive a direct response ... which isn’t sugar coated. I can get that information from a company brochure.

In saying that Mid Canterbury certainly has many people (particularly in Federated Farmers) who stand up to be counted and aren’t afraid to call a spade, a spade - something I truly respect and appreciate ... much like the public.

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Adrian MathiesonChristchurch

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Donald SuttonAshburton

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Daniel LabesInvercargill

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Page 3: Dairy Focus June 2011

3

Giving back to Young FarmersGiving back to Young FarmersLance Isbister

Rural Reporter, Ashburton Guardianern

Partner Gerard Thwaites is a specialist in private client and rural matters with 20 years’ experience and personal involvement in the farming community.

• Refinancing, Sales & Purchases

• Subdivisions

• Trusts & Estates

Contact Gerard on 029 233 3447 or 03 352 3923

Email: [email protected]

www.laneneave.co.nz

Reliable support for the rural community

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Mid Canterbury(A member of the First National Group)

Licensed Sales Person (REAA 2008)

Contact me now to discuss buying or selling.Ian CrossonRural/Lifestyle ConsultantMOB 0274 548 398

You can trust that my experience assisting other Mid Canterbury rural property owners will mean a successful, confidential,

professional service for you

Office 03 307 8317

New Young Farmers Aorangi regional manager Grant McNaughton is a busy man but

still makes the time to give back to the organisation, which has helped him develop as a farmer and a person.

The 2010 National Bank Young Farmer of the Year has a demanding itinerary, one which sees him managing a series of dairy farms in Mid Canterbury.

Following him one day showed just how busy he is.

He travelled from his home in Hinds to Rangitata, Staveley, Mayfield and back to Hinds before heading to Oamaru that evening where he spoke to an audience in his home town.

Despite this hectic schedule his finger is well and truly on the pulse as he discussed the daily tasks of the farm with a staff member as though he had been on the property the whole day.

The Young Farmer contest put him in front of the spotlight and in the headlines, but he’s still the same Grant as before, the experience has only strengthened his character and contributed to the personal development he sought when he first entered the competition.

“The competition grows you, but it doesn’t change who you are as a person.

“There’s no point doing something in life if you can’t look back and pat yourself on the back and say well done.”

As a Young Farmers ambassador, Grant has spoken and inspired audiences at numerous public engagements throughout the country.

While many people find public speaking somewhat daunting, it doesn’t phase Grant who has always been comfortable speaking to audiences.

I’ve never had a problem with public speaking, I do it as part of my job and find it satisfying talking to farmers and if they take away just one thing out of your speech, that’s really rewarding and why I don’t have any issues with it.”

In fact, that’s all he did in the first three days after he won the prestigious rural competition last year as swarms of media conducted interviews with the

North Otago-raised young farmer.During that time he couldn’t wait to

get back into manual farm work such as fencing and stockmanship which has formed the basis for his passion in the rural industry.

He also draws plenty of satisfaction from encouraging younger generations to become involved in the rural sector.

Grant’s role as the Young Farmers Aorangi regional manager is based around the Young Farmers competition which sees him help organise the district and regional contests.

Just like on the farm, Grant said it’s hugely important to be surrounded by a good team of people.

“The people who run it do a good job, you have to have passion to do it otherwise it will never be a successful event. I’m (also) fortunate to have a good team of guys and girls on all the farms, which makes my life a lot easier, without them doing these jobs at such a high level I wouldn’t be able to do my job.”

Although he comes from an arable farm inland from Oamaru, Grant said he has always been exposed to dairying in one form or another and sees it as a fertile industry which matched his own goals in managing a growing dynamic business.

One of his greatest concerns about the industry, however, is that some people don’t take enough of a break away from the business and can be consumed by it.

With plenty on his plate time

management is crucial for Grant who still finds time to switch off at night and relax by spending time with his partner Charlotte Glassie.

Grant is committed to fostering a good working environment on the farms he manages and within the industry so young farmers may prosper, learn and grow in much the same way he has.

“It’s extremely important to encourage teenagers into the agriculture industry if they are enthusiastic and want to make agriculture a career. The reality is there are actually a hang of a lot of talented individuals on farms or within agribusinesses that’s why (the rural industry) is so successful.”

Grant sees limitless potential in

New Zealand farming and believes Kiwi farmers will need to have a better understanding of their end-users so they can adapt the products they produce to meet their requirements.

At the same time Grant said the rural sector had to rise to the challenge in working more sustainably with the

environment.

He said farmers also needed to work to close the rural/urban divide.

“We need to make our cousins in town understand what we do, how it’s done and how that aff ects them so they have a clear understanding of what goes on.”

PHOTO LANCE ISBISTER 090611-LI-020

The 2010 Young Farmer of the Year Grant McNaughton spends much of his time making decisions through his role as a manager overseeing several farms, but still enjoys the satisfaction of getting stuck-in and accomplishing the more physical jobs on the farm.

Page 4: Dairy Focus June 2011

4

The New Zealand dairy industry was given a reality check in Timaru last month by five visitors from India here on a Rotary Group Study Exchange.

Their message left smiles on the faces of a Timaru audience made of members of four South Canterbury Rotary Clubs as they contemplated the thought – if New Zealand dairying thinks it is large on the world stage, it’s time to take another look.

From Rotary District 3060 in the state of Gujarat in the North West of India, Geeta Modi, Dr Manisha Agarwal, Pravin Gadhvi, Chandni Sukla and Dr Amit Agravat used a video and screen presentation to put New Zealand’s dairy industry into global perspective – New Zealand has 3.8 million cows, India has 500 million; New Zealand has 12,000 dairy farmers, India has 3.1 million; New Zealand produces 14 billion litres of milk annually, India produces 6.4 million litres a day.

Dr Manisha Agarwal is a dentist and dental lecturer; Pravin Gadhvi, a chemical engineer; Chandni Sukla is a radio disc jockey and a professional singer, and Dr Amit Agravat is an associate professor of pathology and plays tennis at a national level. The team was led by Geeta Modi who has a background in the health and hospitality industry.

Showcasing Gurajat, one of India’s most prosperous states, each visitor took turns to highlight Indian culture and business acumen before combining for a traditional song and dance session at the Caroline Bay meeting venue.

Their home state is the world’s largest producer of processed diamonds, it has the world’s largest petroleum refinery, at Jamnagar, and the state has India’s largest number of clinical research organisations and more than 100 companies with World Health Organisation-compliant manufacturing units.

Gujarat has India’s longest coastline and 41 ports share the 1600km seaboard. It is the largest milk producing country in the world, with the largest population of cattle and buff alo.

A Rotary Group Study Exchange is an exchange with another Rotary District elsewhere in the world, Rotary Club of Timaru president Gilly Oppenheim said.

But the carefully selected group of motivated

people in the 25 to 40 age group are not allowed to be Rotarians. Their team leader, however, is always a Rotarian.

“GSE is a cultural and vocational experience to gain a greater understanding and appreciation of the world we live in. Members of the team are hosted in Rotarians’ homes and taken on tours and outings to experience the culture of the countries they visit,” Mrs Oppenheim said.

The Indian delegation visit reciprocated an exchange by six Rotary District 9980 members who visited India in January and February this year including Natasha Martin, a photographer, and Ryan Luckman, a Waimate vet.

Rotary District 9980 covers the southern South Island from the Rangitata River to Invercargill.

Mrs Oppenheim said the exchange was paid for from the education fund of the Rotary Foundation and each team member was also sponsored by one of the Rotary Clubs in their district, and from the district funds.

“Their presentations were about their life here in New Zealand including family, work and leisure activities.

“It was a great opportunity to showcase our own area, the businesses in it, our own culture and the way we live,” Mrs Oppenheim said.

Pictured after their presentation to members of four South Canterbury Rotary Clubs is the Indian GSE team. Front row (from left): Pravin Gadhvi, Chandni Sukla, Geeta Modi (team leader), Dr Manisha Agarwal and Dr Amit Agravat. Behind are the presidents of four of South Canterbury’s Rotary clubs (from left) Brian Chandler (Timaru South), Gilly Oppenheim (Rotary Club of Timaru) Eion McKinnon (Temuka /Geraldine) and Reese Hart (Timaru North).

Reality check by Rotary study group from India . . . and we thought our dairy industry was large

Page 5: Dairy Focus June 2011

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Wendy Stewart, a regular calf & dairy client of Advanced Feed giving another group of fast growing calves more Advanced Calf Feed

An Indonesian cigarette manufacturer has won the right to use the “Angkor” trademark

on cereals, biscuits, and confectionery, despite objections by an arm of Fonterra, NZ Milk Brands Ltd.

Fonterra owns a series of trademarks built around the “Anchor” brand and had previously won a case in the High court at Auckland to stop Sumatra using Angkor on a range of products in New Zealand.

Sumatra applied in 2005 to use Angkor as a trademark in New Zealand on coff ee, tea, cocoa, chocolate, artificial coff ee, flavourings for beverages, cereal, non-dairy creamer, biscuits, and confectionery.

NZ Milk Brands fought the application, arguing that Anchor had been used for dairy products since 1886, but the assistant commissioner of trademarks allowed the registration of Angkor.

But the High Court rejected that registration, and Sumatra took the dispute to the Appeal Court, which as of last week allowed use of Angkor for only a few of the product lines.

The Appeal Court said that Sumatra’s coff ee, tea, cocoa, chocolate, artificial coff ee, flavourings for beverages and non-dairy creamer were similar to the goods covered by NZ Milk Brands’ Anchor registration for milk and chocolate-based drinks, and the two marks could confuse consumers.

But it could use the mark on cereal, biscuits and confectionery.

“As there has been success on both sides, costs are to lie where they fall,” said the judges, Justices Susan Glazebrook, Warwick Gendall, and Christopher Allan.

Last year, Sumatra sought to register cigarette trademarks, Lucky Draw and Lucky Dream, but was refused in the Appeal Court after opposition from British American tobacco, which owns the trademark Lucky Strike, and the word Luckies.

The court said that the word “lucky” followed by a single syllable word created a reasonably significant risk of confusion even though neither “draw” nor “dream” sounded like “strike”.

- NZPA

Court allows ‘Angkor’ markdespite ‘Anchor’ concerns

Page 6: Dairy Focus June 2011

6

Off-season refrigeration shut-down

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The truly automatic Multi forage feeder that’s built to last

Manufactured in Timaru for South Island conditions

It’s that time of the year again and time to consider the correct procedure for shutting down your refrigeration systems.

There are several dos and don’ts and this can have a dramatic eff ect on the lifespan of the refrigeration units.

Milk Silo Refrigeration Units

These are best to be switched off at the milk silo controls only and it is important the main power is left on the refrigeration units over the winter period.

Keeping the power on the refrigeration unit will allow the unit to start for a short time periodically and maintain the refrigerant in the high side of the system out of the milk silo and compressor.

Also, a small heater on the compressor crankcase will stop refrigerant migrating to the compressor sump over time.

Serious damage can result by simply switching on a compressor with liquid refrigerant in the crankcase and doing a hot silo wash with refrigerant in the silo refrigeration pad causes extremely high pressures possibly causing serious damage to the milk silo.

Water Chilling Systems

Generally water chillers are okay to be switched off at the unit as the system design is somewhat diff erent; although some later chillers have a frost circuit built into them to start the water circulating pump when the temperature of the water at the unit is below two degrees.

The pump runs for a short time until the higher temperature tank water reaches the chiller and this temperature is again above three degrees.

This system is not foolproof however as it relies on the power being on and we recommend where possible to drain the water from the water chiller circuit during the coldest two to three months of the winter.

Water chillers will handle fairly good frosts although if they do get damaged the result can be expensive.

Glycol Chillers

These are the most robust of fluid chillers as the glycol solution will generally handle a 12 to 15 degree frost before it will start to solidify.

In our climate, it is best to leave the main chiller switch on and the control switch inside switched off .

If it has a desuperheater heat exchanger fitted to heat hot water this should be drained over the winter period as below.

Hot Water Heating SystemsMahana Blue

While ealy model Mahana Blue heat recovery systems have proven to be quite resilient to frost the later single heat exchanger type are still vulnerable.

For those with manual drains retrofitted we recommend turning of the cold water supply to the

Mahana, open the drain valve and disconnect the inlet and outlet pipes at the Mahana.

Reconnection consists of simply reconnecting the pipes, closing the drain and turning the cold water supply on.

Desuperheater (Heat exchanger)

The desuperheater heat exchanger is quite sensitive to frost and while light frosts are unlikely to cause any problems, a series of severe frosts will put strain on the heat exchanger and in some cases it may actually split, allowing water to enter the refrigeration system.

The likely result of a large quantity of water entering the refrigeration system is severe damage to the refrigeration unit, normally requiring a new refrigeration unit to be installed and some down time to rid the milk silo refrigeration circuit of water.

As there are several configurations in the way these are plumbed it is difficult to state draining procedures, and as long as the water pipe on the bottom of the heat exchanger on the refrigeration unit can be removed the system should be safe.

Our recommendation is to drain all water based chillers and heat recovery systems over the coldest three months of the season

If you have any questions give your refrigeration company a call, they will be only too happy to advise you on the best procedure for your own refrigeration equipment.

Murray HollingsDairyCool Ltd

gstd

Page 7: Dairy Focus June 2011

77

187 West St, Ashburton - Ph 308 2055www.jeffmarshallsuzuki.co.nz

Cashback offer must end 31 July or while current stocks last.Not available in conjunction with any other offers. Prices incl GST.

To register, please contact FAR on 03 325 6353 or email your full contact details to [email protected]

ATTENTION: ALL CEREALSILAGE GROWERSDO YOU WANT TO BENEFIT FROM FAR’S RESEARCH?

ADDING VALUE TO THE BUSINESS OF ARABLE FARMING

The Foundation for Arable Research (FAR) is an applied research and information transfer organisation responsible to New Zealand arable and maize growers. FAR will be conducting a referendum in August which will include the introduction of a levy on cereal silage.

Levy funds would be invested in research, extension and education to provide benefits to all cereal silage growers. Currently FAR has a database of arable grain and seed growers and maize grain and silage growers; these growers will receive voting papers for the referendum. All growers of cereal silage harvested in the 2010/2011 harvest are also entitled to vote. Meetings will be held throughout cereal silage growing regions in June and July to explain the levy and the key benefits to farmers. Full meeting details can be viewed at www.far.org.nz/event

DATE REGION VENUE TIME

Wednesday 6 July Mid Canterbury Methven Heritage Centre, 160 Main St, Methven 9am–4pm

Cereal Silage growers not already receiving information from FAR should register to receive ballot papers and the opportunity to vote.

As always, for New Zealand the most difficult issues (in trade negotiations) come down largely to dairy.

Dairy is, after all, about a quarter of our total merchandise exports.

One prominent American official – a great and deep thinker who has moved in and out of academia and administrations over decades – has a great joke about New Zealand. He calls New Zealand ‘The Saudi Arabia of Milk’.

It’s a great line and an aff ectionate line. But it is also profoundly wrong. We are nowhere close to the Saudi Arabia metaphor.

We are the “Algeria of milk” – Algeria has about 2.5 per cent of world oil production which is about what New Zealand has of world dairy production.

We have no capacity to “flood the American market” with our milk. We can’t even keep up with the opportunities in China.

I am a great believer in metrics. Let me put some numbers around this.

New Zealand currently produces some 17 million tonnes of WME (wholemilk equivalent). Think – take out the water and you have 17 million tonnes of product left.

We are extremely confident that we can increase our domestic dairy production by 2 to 3 per cent per annum. Go and visit our wonderful agricultural scientists in Hamilton at the LIC, if you have any

doubts. And I have no doubt that the drive to improve environmental outcomes, and reduce the carbon intensity of this output, will continue.

So by 2020 we might have another 4 to 7 million tonnes of dairy products available for export. This, ladies and gentlemen, is equivalent to about 18 months of the likely growth of dairy consumption in India alone – forget China, Indonesia, the Middle East, Latin America.

In quantitative terms the New Zealand dairy industry is a small player. It is the United States dairy industry, not New Zealand, that is poised to take the major share of this growth.

In the three year period 2005 to 2008 US dairy farmers captured some 60 per cent of the international growth of dairy commodity that this vast and positive paradigm shift produced.

The US dairy industry is let me be blunt – looking in the rear vision mirror. They need to look at where they are going, not where they have been. This is not easy, I understand that political perceptions lag way behind reality. But this will change in time, just as the US Meat Industry, which hidden behind the old US Meat Import Law, used to be a very inward-looking industry until it discovered exports.

Since the vision of TPP is that it will be a building block into these giant growing markets, I could say, only a little mischievously, that the United States has a greater interest in including a quality deal on dairy than New Zealand. We already have FTAs with most of these markets, they don’t.

So, we are a long way off in Trans-Pacific Partnership (TPP) in dealing with the really tough political questions.

What I hope you will have drawn from this analysis is a simple point: this is a big strategic game. We, and I mean New Zealanders, are the original architects of TPP. We have little power in international relations by any conventional measure.

However, as I have said in the context of the Global Research Alliance on Agricultural Greenhouse Gases, which New Zealand leads, “you don’t need to be a big country to have a big idea”.

The realities of dairy productionThe realities of dairy productionTim Groser

Trade and Foreign Aff airs Ministererer

In the overall scheme of things, New Zealand is only a small player in the world dairy market.

Page 8: Dairy Focus June 2011

8

Breakfast programme hits milestone Breakfast programme hits milestone

Call us for a consultation specific to your needs.Specialists in all types of:• Earthmoving Construction • Borderdyking (Laser & GPS) • Dairy Conversions, Underpasses & Farm Maintenance • Irrigation Work, Trenching & Pipe Laying • Pond Construction• Tree & Stump Removal • General Excavation Work • Subdivisions• Heavy Haulage, Certified Pilots • Gravel/Soil Screening

Local Knowledge That CountsAlford Forest Road, PO Box 403 Ashburton Phone (03) 308 6011 Fax (03) 308 5108 Mobile 027 249 7306

KickStart Breakfast the school breakfast programme, run by Fonterra and Sanitarium, has celebrated serving its two millionth

breakfast for Kiwi children on World Milk Day, June 1, 2011.

To mark the occasion rookie chef and leading New Zealand rugby player, Richard Kahui, and popular children’s TV host, Erin Simpson, joined the kids of Auckland’s Panama Road School for a special celebration breakfast.

The school was one of the founding KickStart Breakfast Clubs in the programme which has since expanded to over 430 participating decile 1 to 4 schools across New Zealand.

Fonterra Director of External Relations, Kelvin Wickham, said KickStart is a breakfast education club that’s about a lot more than just the nutritious food.

“It’s great to see the diff erence a good breakfast makes to all the things children like to achieve. Fonterra is very proud of our work with Sanitarium to encourage New Zealand’s younger generation to acquire good eating habits at breakfast and enjoy the social and educational benefits of preparing and eating food together”.

Mr Wickham said the celebration had a special significance because it fell on World Milk Day.

“We’re not only celebrating KickStart Breakfast’s two millionth breakfast, it was also World Milk Day which is all about celebrating the goodness of milk – a near perfect food loaded with nine essential nutrients – and a great way to ‘kick start’ your day.”

Mr Wickham said the twice a week breakfast clubs operate on a sustainable community partnership model.

“With Fonterra and Sanitarium providing the milk and cereal, and local teachers, parents and the community providing the supervision and coaching, the model encourages the kids into healthy eating which benefits learning without undermining the responsibilities of families to provide a daily breakfast.”

General Manager at Sanitarium, Pierre van Heerden, said schools report that children are happier, have more energy and are able to concentrate more.

“The KickStart Breakfast programme is a natural fit with our focus within the community. We know that breakfast is particularly critical for children, helping to improve their behaviour, concentration, memory and learning ability at school. This programme has responded by helping them develop good long term attitudes and health habits for a lifetime,” Mr van Heerden said.

Since establishing the programme in 2008, Fonterra and Sanitarium have also worked closely with the New Zealand Red Cross, who until recently off ered their own Breakfast in Schools programme exclusively for decile 1 schools. 61 schools aff ected by the closure of the Red Cross programme have now been invited to join KickStart Breakfast.

“We are keen to support the Red Cross to manage this change and help the aff ected schools by welcoming them into the KickStart Breakfast programme as our community partnership model has a lot to off er these schools and students over a sustained period of time,” Mr Wickham said.

Serving over 30,000 nutritious breakfasts to more than 16,000 children in 433 schools every week, Fonterra and Sanitarium provide Anchor Mega Milk and Weet-Bix to participating decile one to four schools throughout the country.

KickStart Breakfast notches up two million breakfasts

PHOTO FONTERRA

New Zealand international rugby player Richard Kahui and Dallas Dewes.

PHOTO FONTERRA

Richard Kahui (New Zealand international rugby player), Erin Simpson (Presenter of the Erin Simpson Show) and Kelvin Wickham (Director External Relations, Fonterra) celebrate World Milk Day and KickStart Breakfast’s two millionth breakfast with the children from Panama Road School.

Page 9: Dairy Focus June 2011

9

Orientation of new staffOrientation of new staff

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Why this is importantAn orientation process will help staff settle into

their new job so there will be fewer mistakes made, which in turn will cost employers less money.

Orientation processes are also useful for:

• Setting the tone and expectations for the employment relationship

• Helping employees feel at ease in their new job, as changing jobs can be very stressful.

What is included in an orientation process?

An orientation process is a structured introduction to a new job.

All new employees, when they start in a new job, have a lot to learn about the farm they are working on. Using a formal orientation process will speed up the process of getting to know the farm so all staff can start the job with less downtime and be more eff ective. Staff will be more comfortable in their job earlier, and this contributes to job satisfaction.

Typically, an orientation process will involve a manual and face-to-face interaction between the employer and employee. This interaction may consist of three or four meetings, beginning anywhere from a few weeks before the employee is due to start work, to a few weeks into the job.

The process can include anything that is important to the business, but it is likely to cover the following areas:

• Administration - collection of all necessary information needed by both the employer and employee.

• Business overview - including farm goals, production targets, farm policies, farm map and names of all staff involved in the business.

• Roles and responsibilities - of people in the business.

• Culture - information on the culture the business is aiming for, such as all employees are to treat each other with respect. The farm policy manual will contain information on farm rules such as smoking, applying for leave and health and safety requirements (see Health and Safety Fact Sheet 1.3 and Policy Manual Example 3.2.5).

• Key operations - an overview of the key operations of the farm and how the operations manual is used

on the farm.

• Activities and recreational opportunities in the area - information on social and recreational opportunities in the area for staff such as Young Farmers Club or the local sports club details.

How long should this process take?

An orientation process will occur over time; it is likely that it will start before the employee actually begins work, and may continue for several weeks, maybe months. The process on each farm will diff er as well.

During the process employers may identify training needs in their employee, as well as the standard operations on the farm that the employee will need training in (see Training and Development 4.8 and Systems Manuals 3.2 Fact Sheets).

Prepare a checklist of everything that is to be covered, estimate the time it will take and keep a record of what has been done (see the Orientation Check List Example 3.1.1).

How to put together an orientation process

The first step is to plan what needs to be covered in this process and how it will be covered. Think about all the things that would be good to know about a farm on the first day. Try asking existing employees what they would like to know when they first start a new job.

If employing staff for the first time, a neighbour or someone who is not too familiar with the farm may be able to provide some thoughts on what should be included in the process. Think about what there is on the farm that is diff erent from other farms.

Once all the information is collected it is time to put it all together. Most of the information will be in a written form so the employee can have a copy of it, even though a lot of the process will involve one-on-one discussion.

Documenting the process will enable all employees to be treated in a standard way and will prove if information was, or was not, given to employees in the event of a dispute.

During this process the employer may include some of the following ideas:

• Prior to the commencement of employment a meeting to sort out bank account numbers for wages deposits, takeover of the accommodation provided, power and phone connections

• Meeting all the other staff on the farm

• Meeting the neighbours, farm owner, vet, farm consultant and other people involved in the business

• Discuss the farm’s and the employee’s goals and how they can be meshed together

• Taking the new employee for a full in-depth tour of the farm. This may include looking at things in relation to the farm map such as hazard areas, location of taps on water lines and other areas of special interest on the farm

• Identifying training needs and setting up a schedule for when this training will be done

• A team-building exercise to help encourage friendship and teamwork among everyone that works on the farm

• The opportunity, a few weeks into the job, to catch up and go over any outstanding questions.

Remember that people only take in so much in one go, so it is better to have several short meetings rather than one or two long ones.

The orientation process is closely linked with systems manuals. As part of the orientation process the employer may take the employee through a series of sessions where they look at the systems manual in detail and the employer provides any training needed.

What are the benefits to me?Having staff confident and knowledgeable in the

farm within the first few weeks of starting work is valuable. The orientation process will help achieve this. All staff will have the same start in their new job and everyone will have the same knowledge of the farm.

What do I do next?• Plan some time to set up an orientation process

• Talk to current staff members or other people about what should be included in an orientation process

• Think about having a folder containing all the information that will be given to new employees

• Document the process that new employees will go through so everyone gets the same opportunity and information

• Ask for the employee’s feedback at the end of the process to enable improvements to be made for the future.

Getting people off to the right start

Page 10: Dairy Focus June 2011

10

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Most dairy herds will now be dry and moved from the dairy farm to winter grazing.

Winter grazing is often associated with certain diseases and I thought it would be good to refresh on a few of these in this article.

Mastitis can be seen shortly after drying off . This is usually due to the introduction of bacteria to the udder at the time of administration of dry cow antibiotics.

If you notice cows with mastitis while checking them, you will need to manage the infection as you would a normal clinical infection during lactation.

Strip out the aff ected quarters and use a lactating cow antibiotic for the prescribed time period. Be very cautious about using long acting dry cow antibiotics after the lactation treatment, as the time from treatment to calving may be shorter than the milk withholding period for the drug.

Cows can become lame on winter crop paddocks. In wet and muddy conditions the hoof horn and skin between the claws can become soft and vulnerable to infection either directly or via stone penetration etc.

Be vigilant to cows hanging back,

lying down and limping, and treat them promptly.

Lice are commonly seen on cattle in winter. This parasite thrives in colder temperatures. The life cycle takes about three weeks to complete from eggs (nits) to adult lice. Often the eggs are

visible sitting on hairs on the animal.

Lice infestation causes rubbing and leads to itchy cows. This often results in hair loss, and the cows start to look a bit “mottled”. Lice generally have minimal eff ects on the cows apart from being irritating. Severe infestations with sucking lice pose a risk of anaemia, but this is rare.

Lice treatments generally work well, but if eggs are still present and unhatched on the animal they can continue to develop to produce a new population of adult lice at a later stage. It may be necessary to re-treat animals if this occurs.

Bloat, rumen acidosis and metabolic diseases can all occur during winter on crops. Bloat generally happens when cattle over feed and fermentation of the plants in the rumen is rapid.

Rumen acidosis also occurs if the crop is readily fermentable, high in soluble carbohydrate, and the allocation is too high.

Fodder beet can produce a syndrome of rumen acidosis and milk fever because it has high levels of carbohydrate in the beets and high

levels of oxalates in the leaves.

Frosted feeds can burn the lining of the rumen and cause a temporary reduction in rumen function. In severe cases this can lead to secondary metabolic problems and damage to the lining of the rumen. Feeding hay at the same time as frosted feed can reduce this eff ect.

Importantly, cows grazing crops during winter should be checked daily for problems. Careful visual checks should be made on all cows when shifting them on to their new breaks.

Cows lying down during break shifts, limping, coughing, having excessive diarrhoea, and appearing sleepy or very excited should all be thoroughly checked by a veterinarian without delay.

Unfortunately cows do die on crops during winter. Every dead cow has a story to tell which will be useful information for owners and grazers. Post-mortem examinations are a very good idea.

If possible have yourselves a good break during winter so that your own batteries are recharged before calving starts.

Ian Hodge, BVSc. MACVSc.Riverside Veterinary Services Ltd

c.td

Bloat, rumen acidosis and metabolic diseases can all occur during winter on crops. Bloat generally happens when cattle over feed and fermentation of the plants in the rumen is rapid.

Page 11: Dairy Focus June 2011

11

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DNA analysis is now helping to identify top Holstein Friesian heifers to aid the development

of elite cow families and bulls for the dairy industry.

Holstein Friesian New Zealand’s (HFNZ) Discovery Project, sponsored by farmer owned co-op LIC, is a scheme that HFNZ members can enter to help identify top heifers to ensuring their full potential is utilised.

This is the first time genomic screening has been available – traditionally heifers were nominated and selected based on their ancestry.

LIC breeding manager, Allan McPherson said the introduction of genomic selection provides the programme with a huge boost by helping identify those heifers with the highest potential more accurately.

“More accurate selection of heifers means a better chance of success from the programme and therefore a higher probability of positively impacting the breed.

“HFNZ members get access to LIC’s expertise and the best bulls for breeding, and are now able to tap into the huge resource of genomics science that LIC has developed and invested millions of dollars into.

“The project also allows their heifers to be benchmarked against other elite animals around the country, providing them with access to the latest reproductive technologies and the opportunity for their heifer to be recognised as a potential bull mother,” Mr McPherson said.

HFNZ general manager Cherilyn Watson said genomics would further enhance the success the project has achieved over the last seven years.

“Holstein Friesian New Zealand breeders are excited at the opportunity to get genomic information on the elite female heifers in their herds, and see how the information translates when the heifers calve down and are milked for their first season.

“We’ll follow the progress of these heifers through their first season in-milk and continue to monitor them over the next few seasons when they

return to their home herds.

“It will be interesting to see if the genomically selected heifers stand out from their herd mates,” she said.

Heifers accepted into the programme are taken as in-calf two-year-olds from farms across the country, and brought together to a host farm in Te Awamutu for one season. During this time, the heifers are herd tested eight times, condition scored regularly and evaluated on a range of criteria to help identify their true merit.

Farmers can now select up to five heifers to be genomically screened for the scheme, providing them with more confidence that only their best heifers are then selected to participate.

Information from each screened heifer, regardless of whether they are accepted into the programme, is given back to the farmer for future reference.

A current top bull for LIC, Westland CL Jasper, resulted from the inaugural season of the Discovery Project in 2004.

Jasper joined the 2010 Premier Sires bull team after receiving a successful daughter evaluation through the Sire Proving Scheme.

Mr McPherson said the Discovery

Project has continued to provide sires for LIC with a number of bulls awaiting their daughter proofs at present or have already been selected for DNA proven teams.

DNA tests play role in herd developmentDNA tests play role in herd development

DNA analysis is playing a big role in improving the Holstein Friesian breed.

Page 12: Dairy Focus June 2011

12

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Data released last week by the Real Estate Institute of NZ (REINZ) shows there was a

further strong lift in the number rural sales across New Zealand in three months to May 2011.

Overall, there were 364 farm sales in the three months to end of May 2011 compared with 290 sales in the three months to April 2011 and 319 sales in the three months to May 2010.

The median price per hectare for all farms sold in the three months to May 2011 was $17,199 compared to $17,938 in the three months to April 2011 and $18,230 for the three months to May 2010.

The Waikato region recorded the strongest increase in sales between April and May, followed by Canterbury and Southland.

Three regions recorded a fall in sales between April and May, although these falls were only minor.

The number of farm sales for the year ended May 2011 was 930, equal to the number of farm sales for the year ended May 2010, and up from 918 sales recorded for the year ended April 2011.

REINZ rural market spokesman Brian Peacocke said the upturn in farm sales that came through in the April

data has continued into May, with a further lift in grazing and dairy support property sales in the South Island.

“For the month of May alone there were 130 sales, which is the strongest May result in three years. Confidence in the rural sector has been rising for some time now and along with continued high commodity prices, this is now translating into greater confidence in buying farms.

“The level of enquiry has certainly increased over the past few months, however, farm prices are not moving up as yet. Buyers remain cautious and are clearly doing their due diligence. There is also further anecdotal evidence of finance becoming easier to source for good quality farms,” Mr Peacocke said.

Included in sales for the month of May were 21 dairy farms at an average sale value of $28,028 per hectare and $36 per kg of milk solids (MS).

The average farm size was 184 hectares with a range of 61 hectares in Bay of Plenty to 1400 hectares in Southland. The average production

per hectare across all dairy farms sold in May 2011 was 770kgs.

Grazing properties accounted for the largest number of sales with 51.1 per cent share of all sales over the three months. Dairy properties accounted for 16.5 per cent, Finishing properties 15.1 per cent and Horticulture properties 7.7 per cent.

These four property types accounted for 90.4 per cent of all sales during the three months ended May 2011.

For the three months ended May 2011 the median sales price per hectare for dairy farms was $30,828 (60 properties) compared to $30,879 for the three months ended April 2011 (52 properties), and $33,509 (42 properties) for the three months ended May 2010.

The median dairy farm size for the three months ended May 2011 was 112 hectares. For the three months ended May 2011 the median sales price per hectare for finishing farms was $10,860 (55 properties) compared to $10,470 for the three months ended April 2011 (38 properties), and $11,979 (43 properties) for the three months ended May 2010.

The median finishing farm size for the three months ended May 2011 was 163 hectares.

For the three months ended May 2011 the median sales price per hectare for grazing farms was $13,490 (186 properties) compared to $13,772 for the three months ended April 2011 (140 properties), and $14,004 (151 properties) for the three months ended May 2010. The median grazing farm size for the three months ended May 2011 was 93 hectares.

For the three months ended May 2011 the median sales price per hectare for horticulture farms was $129,572 (28 properties) compared to $130,806 for the three months ended April 2011 (28 properties), and $131,250 (45 properties) for the three months ended May 2010. The median horticulture farm size for the three months ended May 2011 was six hectares.

The lifestyle property market also saw a strong lift in volume in the three months to May 2011 and a modest lift in the median price. All regions apart from Northland, Gisborne and Hawkes Bay saw an increase in sales, with Auckland again recording the strongest increase. Canterbury, Waikato, Bay of Plenty and Southland also recording notable increases in sales volumes.

The national median price rose by $10,000 to $460,000 for the three months to May 2011 compared to the three months to April, and rose $15,000 compared to the three months to May 2010. Total sales completed for the three months to May 2011 were 1311, up 176 (15.5 per cent) compared to the three months ended April 2011, and up 133 (11.3 per cent) compared to the three months ended May 2010.

Commenting on the lifestyle property market statistics Brian Peacocke said, “The lifestyle property market is also demonstrating rising sales volumes, in line with the farming sector, although the levels of activity are still patchy across the country.

“The increase in the median price, although modest, will be welcome news for some, although the increase was generally confined to the Auckland region, Hawkes Bay and Canterbury.”

May rural sales show a promising rise.

Page 13: Dairy Focus June 2011

13

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Applications of the nitrification inhibitor DCn to winter-grazed forage crop areas can reduce nitrate leaching by as much as 30 per cent, retaining nitrogen in the soil for future pasture or crop growth, an AgResearch study shows.

The research, which has been running for more than three years, shows that there is the potential for nitrate leaching from winter forage crops to be as much as five times higher than from adjacent dairy pasture.

Aaron Staff ord, Ballance’s Science Extension Manager says the work has produced some exciting results.

“The winter-grazed forage crop, which occupied 10 to 15 per cent of the dairy farm area, was responsible for about 40 per cent of the total farm system nitrogen (N) leaching.

“Eff ectively, the forage crop was acting as a critical source area for N-loss within the larger farm system. Because the amount of N being leached under grazed forage crops is typically quite large, the additional soil N that can be “conserved” with DCn is potentially quite large, providing a good

opportunity to turn this into extra feed in the subsequent pasture renewal or cropping phase.”

An initial study indicated that DCn applied within a week after grazing a forage brassica crop reduced nitrate leaching by around 20 per cent. Measurement of pasture production following regrassing of the winter-grazed forage crop showed that areas treated with DCn grew about 13 per cent more pasture dry matter.

In a two-year field trial on free-draining pumice soils the impact of DCn was even greater. It showed that for a kale crop grazed in June, N leaching losses were extremely high (130 to 170kg N/ha) due to the large winter drainage.

“The use of DCn immediately after grazing reduced nitrate leaching by about 30 per cent, meaning that an extra 40-50kg N/ha was available in the soil the following spring. That’s N that would otherwise have been leached.” Mr Staff ord said.

These measurements of N leaching were taken by analysing soil solution collected in ceramic suction cups, backed up at the same time by measurements of the actual amount of soil mineral N. So far, trials have been conducted in Southland and the Central Plateau.

Mr Staff ord said there was no reason to limit the use of DCn to forage crops grazed by dairy cattle, as nitrate leaching under intensive sheep-grazed winter forage crops can also be surprisingly high.

“Remember, DCn is not a ‘silver bullet’ that will completely eliminate nitrate leaching. Farmers should also consider other management strategies such as time-restricted grazing and use of a stand-off pad to reduce the amount of urine being deposited in the paddock.”

Note: DCn contains the active ingredient dicyandiamide (DCD) in a granular form.

Sustainable dairy farming in Tararua is the focus of a new project which has just been launched and has two

more field days coming up this month.

More than 50 farmers and industry leaders gathered at Geoff Arends and Ester Romp’s 162ha farm at Hukanui for the launch of the Tararua DairyLink project. The initiative is led by local farmers, DairyNZ and Horizons Regional Council.

The host farm is one of three selected as part of the project to demonstrate methods of reducing dairying’s environmental impact, while also looking to improve productivity.

Geoff and Ester, along with sharemilkers Chris and Dana Sutton, gave attendees a rundown of their operation, what they hope to achieve in their business and the reason for participating in DairyLink.

Last season’s production of nearly 140,000kgMS/ha was badly aff ected by flooding in the spring. They are hoping to increase production this season through better pasture management whilst decreasing the use of nitrogen fertiliser.

Mr Arends said he was taking part in the project to give back to an industry that has been very generous to him.

“The DairyLink project provides a way for me to contribute towards the future of dairying in this district,” he said.

Keith Riley, the farmer chairman of the DairyLink committee, spoke of the importance for farmers to have greater control over all aspects of their farming systems, to improve productivity and reduce negative environmental impacts.

He said there were real opportunities for farmers to increase productivity and use natural resources more efficiently.

“The project provides a way for everybody to work together, pool their knowledge, and become more innovative and adaptive to the pressures currently being felt by dairy farmers,” Mr Riley said.

Professor Mike Hedley, director of the Fertiliser and Lime Research Centre at Massey University, gave the opening presentation at the launch.

Mr Hedley said it was crucial that farmers learn to understand the environmental consequences of their production systems.

The two other DairyLink farms will be launched at events on June 23 and 24.

Target forage cropsfor nitrate leaching

Sustainable dairy farming

Research shows that there is the potential for nitrate leaching from winter forage crops to be as much as fi ve times higher than from adjacent dairy pasture.

Page 14: Dairy Focus June 2011

14

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Another month has gone and here we are in the middle of June already. We are in the

midst of a very busy period, building new systems, centre pivot and lateral irrigators, all in readiness for the next irrigation season, which could be upon us in three months!

Winter servicing is also being carried out, we have so many systems now to maintain – boom irrigators as well as our pivot and lateral systems all require attending to.

Generally, the large percentage of our equipment is centred around the greater Canterbury area, although we have systems in Southland, the Mackenzie District, Marlborough and Nelson and now have systems in the North Island – Hawkes Bay, Martinborough, etc.

We are taking care of our closest systems first and then gradually we will spread our wings to cover most – if not all of our client’s requirements right throughout New Zealand.

We are now also checking for our irrigation hose orders as these take some considerable time to come through “the system”.

The Snap Tite factory is based in Wexford, Ireland. We require some

time to collate all of the orders and then submit these through to the factory for manufacture.

When packed into a container and sent to New Zealand, it can take up to 11 weeks from time of order to actual time of delivery to Ashburton.

We have many clients who require varying lengths of irrigation hose and now is the time to complete those orders for unusual lengths.

We try to carry as much irrigation hose in stock as possible; however, it is not always possible to carry every diameter of hose with every possible length in stock here in Ashburton.

As I have stated before in these articles, with the exchange rate being as favourable as it is when we are importing goods, this makes the purchase price of these products much more attractive.

I was asked late last week from our American suppliers of irrigation equipment – Reinke Manufacturing, to provide an estimate of our supplies of centre pivot irrigators and lateral move systems for the next 12 months.

I can understand why they require this information; however it is extremely difficult to give a reasonably accurate figure of exactly what we are going to require, certainly in the next 12 months to three months I can do, beyond that, well who knows. Reinke requires a reasonable estimate and I will do my best to provide that.

Reinke is an amazing company. It is based in a town called Deshler in southern Nebraska – not far from the Kansas border. It is still a family owned business, unlike many other companies who have been “corporatised”.

There are four members of the Reinke family who are actually involved in running the business. Robert Reinke formed the company back in the 1960s and was an active director until his death a few years ago.

Being a family orientated business, I believe, means that they are really easy to deal with and to communicate with. They have an amazing system in place that ensures all the appropriate staff are aware of exactly what is happening to all the diff erent areas of supply and

demand, as well as manufacture and service. The same email I received from Reinke last week was also sent to all of the Reinke dealers throughout the world.

Imagine being in Reinke’s position where they need to keep up with manufacturing to ensure that every dealer’s requirements are met in a timely manner. When we order equipment from them they have a very quick turnaround in getting the order through their system, containers and trains organised, getting the containers sent from Nebraska through to Los Angeles and then shipped to New Zealand.

There are normally very few hold-ups with lack of stock or general availability – even with the high tech equipment; normally everything is available “ex stock”.

On my trips to the factory in Nebraska it is simply quite amazing to see how a company based in rural US, in an area no larger than Ashburton, has so much manufacturing capability to keep all of their dealerships, around the world, supplied with equipment.

It has been good to see how our weather has been so kind to us up to this point of winter. This, dryer-than-normal weather, has allowed us to keep up-to-date with many of our on-farm jobs.

Hopefully this will continue in the near future, although we will need rainfall at some stage over winter to recharge our aquifers, until next month - take care.

The Reinke factory based in Deshler, southern Nebraska.

Page 15: Dairy Focus June 2011

15

Biocontrol keeps root weevil in checkBiocontrol keeps root weevil in check

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The introduction of a biocontrol agent for clover root weevil in 2006 has done much to suppress the

pest’s impacts, but vigilance is still critical to detect new infestations and ensure that the biocontrol agent quickly reaches the areas where it is needed.

When clover root weevil (CRW) was first found in Waikato, New Zealand in 1996, almost nothing was known about its impact on pasture or about how to manage it.

Eff ective economical management options remained elusive, as over the next decade, CRW slowly spread throughout the entire North Island.

In 2006, AgResearch scientists, supported by DairyNZ, Beef + Lamb NZ and AGMARDT, made a breakthrough in CRW control by releasing a potential biocontrol agent, a tiny parasitic wasp from Ireland. The first trial releases were made in Waikato, Hawke’s Bay and Manawatu, and within just 18 months the wasps’ performance had exceeded the expectations of even the most pessimistic scientists.

Although the biocontrol agent can never entirely eliminate CRW, it can strongly suppress the pest within just a year or two of arriving in a new area, alleviating some of the pressure both on pastures and on farmers’ pockets.

AgResearch distributed the biocontrol agent throughout the North Island as quickly and comprehensively as possible, in part by giving it away through industry networks and at field days so farmers could make releases on their own properties.

Hundreds of these mini-releases combined with mass releases at fewer key sites have led to the spread of the biocontrol agent throughout the North Island. CRW is now in decline at all sites AgResearch has monitored and only in the Far North are there concerns that the weevil could still retain the upper hand.

Meanwhile, on the South Island CRW made its first unwelcome appearance near Christchurch and Nelson in 2006. Fortunately for South Island farmers, the biocontrol agent for CRW, which had just been liberated in the North Island, was available for immediate release in southern pastures.

AgResearch quickly introduced the biocontrol agent to large populations of the weevil at Richmond and the Rai Valley in 2006, and then again in Golden Bay in 2009 in the hope that the wasps would spread along with CRW and thereby minimise the pest’s damage in the South Island.

Again, the biocontrol agent exceeded expectations by catching up with the outer limits of CRW populations in Golden Bay, Nelson and Marlborough, and then staying hot on CRW’s heels as it expanded southwards.

Sampling in 2011 showed that the wasp has been carried by the weevil south as far as Springs Junction and Kaikoura. It has also reached Lincoln, probably from North Canterbury or Rakaia Island where it had previously been released.

Unfortunately, it is still likely that CRW will spread throughout the South Island, because it is adept at spreading about 20 kilometres every year by making flights during warm summer days. In addition, CRW can also cover longer distances by moving with vehicles and freight, which has resulted in a series of outbreaks in locations distant from previously established populations.

The first such outbreak was detected near Ashburton in 2008, followed in 2009 by Clinton in Otago, Rotherham in North Canterbury, Mosgiel in Otago and Mataura in Southland, then in 2011 at Woodlaw in Southland.

Just in the past six weeks it has been

found at Catlins in Southland, Ophir in Central Otago, and near Duntroon in North Otago. The timing and location of these isolated outbreaks is difficult to predict, and thus AgResearch, with support from DairyNZ and Environment Southland, has developed a broad-scale monitoring programme with careful prioritisation of sampling localities.

In addition, over the past 18 months scientists have made further releases of the biocontrol agent in isolated CRW infestations at Rotherham, Mosgiel and the Taieri Plains, Mataura, Gore, Woodlaw, Telford and Rakaia Island, with establishment already confirmed at

Rotherham, Mosgiel, Mataura and Rakaia Island.

Experience shows CRW is very difficult to detect during the first few years of its arrival at a new location, partly because it is initially present in very low numbers and also because it spends much of its time hidden underground as a larva or pupa.

The build up of CRW in a new location is insidious, and sometimes farmers only realise the pest is present once their clover has all but disappeared. Notching of white clover leaves and feeding damage on root nodules are symptoms of CRW, but careful observation is required to detect these symptoms before the pest has reached high numbers.

This means AgResearch’s CRW monitoring is imperfect and some infestations could remain undetected for years unless farmers assist by being vigilant and reporting their observations.

Advising AgResearch that CRW is suspected in a new location will help scientists to ensure the biocontrol agent quickly reaches the areas where it is needed.

South Island farmers who suspect that they have a CRW infestation can access the website www.agresearch.co.nz/crw which contains all the information farmers might require to assist in identifying CRW.

A clover root weevil is pursued by an Irish parasitoid wasp.

Page 16: Dairy Focus June 2011

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Answering questions on genomicsAnswering questions on genomics...

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New Zealand Animal Evaluation Limited recently announced its decision to temporarily suspend genomic data from

bull BW – is this, as some media have said, an indignity for LIC?

It’s not an indignity but it is disappointing. LIC does not agree that the NZAEL Board made the right decision withdrawing genomic data from bull BW.

Every developed dairy nation is adding genomic

information to their official sire evaluations while New Zealand is withdrawing – it’s very disappointing.

LIC believes in genomics and does not intend

to withdraw our genomics products, research or commercial focus. Genomics allows the identification of elite sires at a very young age, and it will continue to help deliver faster rates of genetic gain to NZ farmers.

The interesting dimension is that in every other

developed dairy nation, all the major AI companies have a genomic product that they provide customers – in New Zealand, at present, only LIC has the confidence to use it commercially. Genomics is allowing LIC to deliver better bull teams than our competitors and that naturally creates commercial tensions.

What is the real reason genomic information has been suspended from bull BW?

The primary reason is that NZAEL do not believe they can provide true comparability between estimates of genetic merit of young sires with and without genomics or fully validate the genomic bias corrections.

NZAEL and DairyNZ both acknowledge that

genomic selection generates increased rates of genetic gain, and is vitally important for the future competitiveness of NZ dairy farmers.

What impact does NZAEL’s decision have on farmers?

Farmers have a choice of bulls. There are three major categories of bulls available to NZ dairy farmers;- Young sires with no daughters in milk, and no

genomic information (eg Liberty unproven bulls)

- Young sires with no daughters in milk, but which have been genotyped and compared against the DNA patterns of thousands of fully proven sires and cows to identify the most elite of them (eg LIC DNA Proven teams)

- Older ‘proven’ sires with many daughters in milk (eg CRV and LIC Daughter Proven sires and teams)

Reliability of the individual sire’s genetic merit

estimates increase from approximately 20 to 30 per cent for the first category, to approximately 50 to 55 per cent for the DNA Proven sires, to anywhere from

80 to 99 per cent reliability for an extensively proven sire.

The less reliable an individual sire’s BW, the

greater the potential for its proof to move over time (up or down) as more information is added. Lower individual reliability needs to be compensated for by using larger teams of bulls. LIC is selling its DNA Proven sires in teams of 25 bulls. Whilst the individual bull proofs may move, the team reliability will be close to 98 per cent and, most importantly, a large team of elite young DNA Proven sires will deliver a higher overall BW than a smaller team of mature bulls.

Is criticism of the DNA Proven product unexpected?

No – anything so new will always spur comment from those who do not have access to the science. It was the same back in the 1950s with AB, and so we’re not surprised now. Just as it was with AB, we’ll make the investment and we expect our critics will come on board once they have access to the technology and the early adopter risk is minimised. Without someone taking the risk there will be no progress.

It’s been quoted that DNA Proven bulls’ BW rankings have dropped by as much as 100 BW points – is this correct?

Yes there will be instances where a bull will

deviate (up and down) by up to 100 BW points from their evaluation. This is represented in the 55 per cent reliability of a DNA proven sire. This variation at the individual level is why we advocate the use of a team of DNA proven sires where the reliability increases to approximately 98 per cent, which means that in 95 per cent of the time the team BW will be within 25 points of the genomic estimate.

We are monitoring the performance of DNA Proven

sires once they have daughters milking against the prediction based on their DNA and have just announced that the 2007 crop of 42 bulls, whose daughters milked for the first time in 2010, deviated from their prediction by 6.0 BW units over all three bull teams.

Was this product launched to market ahead of its time?

We believe that the timing of launch of DNA Proven was appropriate given the stage of the technology, and our research and international peer validation work prior to launch.

The first genomically selected bulls supplied in

2008 now have progeny tests and it is clear that their BWs were over-estimated. It is also clear, though, that a net benefit was delivered (relative to their Daughter Proven counterparts) along with some much-needed new bloodlines, especially in the Jersey breed. With every BW unit worth more than $4m to the industry, even modest incremental advantages are valuable, and holding back would amount to a substantial opportunity cost.

Also, importantly, farmers have been given a

choice.

What validation did you have to go to market?LIC uses an independent science advisory group

to review the technical aspects of our genomics investment. All of the research data that LIC had generated was shared with the scientists that form this advisory group. They supported the commercial release of the technology.

Is LIC reprinting its February bull catalogue given that rankings have changed?

No, we will not reprint any catalogues as we believe there is no need – proofs in catalogues are accurate for the time in which they are printed. They change at regular intervals when NZAEL updates animal evaluation.

Farmers know they merely need to go to either LIC Customer Relationship Managers, or the LIC or AEU websites, for up-to-date rankings. We will continuously give our best estimates of a bull’s expected genetic merit.

Livestock Improvement Corporation (LIC) has been in the news lately around its genomically selected bulls and support for the Agria partial takeover of

PGW. Here LIC’s head Mark Dewdney answers farmer questions

LIC chief executive Mark Dewdney.