Federated Farmers

Dairy Alert

The bi-monthly newsletter from Federated Farmers Dairy Industry Group

Chairperson's commentary

Federated Farmers Dairy chairperson, Lachlan McKenzie

Welcome to the autumn Dairy Alert, firstly to the Land and Water Forum. Many of you will have heard of the Land and Water Forum (LAWF), but will not know what it is or who sits on it.

The forum was set up by the Hon Nick Smith and the aim is to get a consensus on water and land management through a collaborative process. It consists of non-government organisations such as Federated Farmers, Fish and Game, Forest & Bird and other recreational groups as well as DairyNZ, Meat & Wool New Zealand, Fonterra, hydro electricity generators, regional councils and iwi. I am the only elected farmer representative on the small group.

Currently, many decisions under the RMA are determined in the Environment Court where often the best outcomes are not reached. Regional councils are also increasingly developing rules and consent processes to control farming. These reduce the farmer's ability to adapt to new technology and new ideas and often do not provide the best environmental outcomes or economic prosperity. By having all the interested parties in the same room at LAWF, it is hoped some common sense will prevail, allowing this country to prosper while looking after the environment at the same time. We are too small a country to be spending millions of dollars on plans that will not work, as Horizons has done on their One Plan. This plan has cost them over $12 Million and is not to go ahead.

I am working, together with Federated Farmers policy advisor Brigid Buckley, on the report that LAWF plans to produce by August. As your elected representative, I am working hard to ensure farming retains its rights in property while allowing for maximum flexibility within farm systems. These rights do have responsibilities such as ensuring we work toward good management practice on farm to reduce our environmental foot print. An example of this is the responsibility we have to not discharge effluent into waterways as was done in days gone by.

We need to ensure our industry is able to continue to grow, but we must take notice that our society and this Government will only allow this growth if we can demonstrate a decrease in our environmental foot print.

In regards to future of milk pricing, it is good to see Fonterra come up with more money and it is especially pleasing to hear that they have come out with a tentative indication of a similar milk price for next year's milk. Having a strong milk price from Fonterra makes all the other players also lift their payout so that all dairy farmers benefit.

As for the National Animal Identification and Traceability (NAIT), or National Animal Interference and Taxing as I like to call it, it appears that while this Government was elected advocating a policy of no more taxes, we see them promoting the implementation of an Emissions Trading Scheme (ETS) which will cost the average dairy farmer ten percent of their profit. This is based on figures presented by the Minister of Agriculture and Forestry, the Hon David Carter, at the DairyNZ forum last week.

That same Minister, a sheep and beef farmer by the way, has endorsed the implementation of another tax administered by MAF in the form of NAIT. The dairy industry has a very good tracing and recording system in our core data base, over 90 percent of dairy cows are recorded at present, but with a paper-based and barcode system. The data base is the envy of most dairy countries throughout the world and we need to protect that.

I have no difficulty with encouraging farmers to move to new technology in the form of electronic tags. It is all good stuff. But I do have a big problem with MAF/the NAIT Governance Group telling us we need to record our livestock information on their data base at a huge operational cost which will be paid for by the farmer and albeit so they can tax us on the ETS.

It is estimated NAIT will cost the average farmer another four to five percent of their profit. My other issue is that it will be mandatory to use Low Frequency (LF) tags when the rest of the world is moving to Ultra High Frequency (UHF) tags. All current world research and development is on UHF as more data can be stored and retrieved using the UHF system. AgResearch has UHF tags on many of its research cows, now that tells us something researchers can use them, but the NAIT Governance Group has not approved the use of the latest technology UHF tags by farmers under this scheme. The NAIT programme has been in the making for over six years and in this time technology has improved in leaps and bounds but, by default, the NAIT Governance Group is saying they haven't kept up with the latest technology. The UHF tag chips cost 10 cents retail, that's right 10 cents each and I have bought the UHF chips for 10 cents each in Australia. What price does your tag salesperson want to charge you for LF tags?

Where to from here? Federated Farmers has been pushing for the compulsory nature of this proposal to be dropped. Farmers do not know what tags to put in and systems have yet to be trialled and up and running in time for a 2011 launch. The costs, especially to sheep farmers when they are drawn in to the scheme, are too high and without all cloven hoofed animals in the scheme there is no substantial biosecurity advantage in the NAIT programme.

On top of this there is the question of the database. Surely, if NAIT is to proceed we only need one accepted industry-wide primary tag and one accepted industry-wide database. Working together, these would provide real time data to those authorised to mine specific information relating to their responsibilities. Surely this is a no-brainer?

So, in my opinion we should continue the current system but allow five years to transition to new technology of UHF tags. Farmers, saleyards and meat works will all need to put in new technology and there will not be enough skilled people around to do the work or sell the products.

I will be sticking to my current tagging system, despite the sales pitch of some merchants that have a vested interest in taking my money.

Regards,

Lachlan McKenzie
Chairperson
Federated Farmers Dairy
Phone: 07 332 3440
Mobile: 021 382 442
Email: lmckenzie@fedfarm.org.nz

Industry news

NEW SHAREMILKERS’ SECTION CHAIRPERSON

The Federated Farmers Sharemilkers' Section recently held its AGM, voting in a new Executive team. The Section now has a new chairperson, Ciarán Tully, with Jessie Chan as vice -chairperson. Outgoing chairperson, Jeff Bolstad, remains on the executive, with Craig Littin and Neil Filer. Ciarán farms on the Hauraki Plains, Jessie in Rakaia, Jeff in Morrinsville, Craig in Putaruru and Neil in Dannevirke.

SHAREMILKER EMPLOYERS’ SECTION

The executive for the Federated Farmers Sharemilker Employers' Section remains unchanged after its recent AGM, with Scottie McLeod as chairperson and Bill Laurence as his vice-chairperson. Other members on the Executive are Tony Wilding, Willy Leferink, Othmar Hebler, Andrew Corrigan, Peter Mann, Mark Masters and Gifford McFadden.

NEW ZEALAND DAIRY INDUSTRY AWARDS

The finals of the New Zealand Dairy Industry Awards were held in Rotorua on 15 May and what a great competition! The winners of the New Zealand Dairy Industry Awards for 2010 are as follows, Sharemilker of the Year was won by Stefan and Annalize du Plessis of Southland. Farm Manager of the Year was won by Carwyn (Monty) Monteith of Hawke's Bay/Wairarapa. Dairy Trainee of the Year was won by Blake Korteweg of Otago and the Federated Farmers of New Zealand Leadership Award was won by Greg and Hannah Topless of Taranaki.

Federated Farmers would like to congratulate all the winners and recognises the hard work that every entrant put in, the dairy industry is in good hands. For more information and for photos of the awards, please click here.

RECOGNITION

Hard work has paid off for Federated Farmers Sharemilker Employers' Section chairperson, Scottie McLeod. Federated Farmers Bay of Plenty has presented Scottie with a life membership to Federated Farmers. Scottie is also chairperson of Federated Farmers Bay of Plenty Sharemilker Employers' Section. Congratulations Scottie.

Advice

ADJUSTING FOR THE CHANGE IN PAYOUT

Federated Farmers has received many calls over the last weeks regarding how Fonterra supplying sharemilkers should get paid. While Federated Farmers is not in the business of telling you how to run your business, we can offer a few suggestions on how owners and sharemilkers can split the payments from Fonterra.

Sharemilkers can be paid their percentage of the milk price plus a percentage of the dividend on stipulated share numbers. Fonterra provides the options of a dividend related payment adjustment, based on a percentage of dividend and the stipulated shares. This can be either all shares, the minimum required shares (excluding ‘dry' shares) or a stated number. Fonterra can legally only pay the dividend to the shareholder but provides this payment adjustment as a service to its suppliers. The owner can pay this amount directly to the sharemilker or can arrange for this to be done via Fonterra, who will add it to the milk price paid to the sharemilker.

Another option is for sharemilkers to be paid a percentage of the ‘milk price' only and there are probably many other ways you can split it. Whichever way this is done, however, sharemilkers and owners need to sit down, talk it over and come to an agreement, which must then be written down. Both parties must sign after they have either thought about what is being changed or have sought advice.

Remember, the Federated Farmers Variable Order and the Herd Owner Agreements are very flexible for both parties and will suit hundreds of different farms in many districts around New Zealand. Farm owners and sharemilkers can also seek advice from their Fonterra district managers.

PLAN YOUR WAY OUT OF THE DROUGHT

DairyNZ has recently held some drought management days on the Hauraki Plains that have highlighted two things. Firstly, these management days showed just how bad the drought is, highlighting how production has been four percent below that of the 2008 drought. Secondly, they focused on the need for a plan of action to move successfully through next season. DairyNZ suggest focussing on one plan to get you through calving, followed by another to get you through spring and mating successfully.

With no real rain since January in many areas throughout the country, and with many farmers having used record amounts of supplements just to maintain cow condition, it has been a very trying time. Supplies of feeds such as palm kernel are not guaranteed unless you have a contract and even then it would be worthwhile having a contingency plan should that avenue be exhausted.

Farmers should:

Have a feed budget and be updating it at least fortnightly and preferably weekly.
Include all staff in discussions so that they are aware of the situation and how the simple act of keeping gates closed and the electric fence working properly can save a few days feed.
Check the mineral status of the cows if feeding high levels of maize and other supplements.
Be ready to negotiate with regard to cow condition. Maybe cows will be averaging 4.5 not 5, but they should not be lower than a 4. Get a respected farmer or condition officer to help you score your cows.
Do your own financial budgets and then make sure your bank manager and accountant are up to speed with your position. If extra finance is needed, it is better to be seen in control of your business by regular reporting and communication rather than a phone call once the overdraft limit has been exceeded.

There are all sorts of options to get you through:

Once-a-day milking
16 hours
Reduce stocking rate

Feeding supplements and using sacrifice areas to build cover on the rest of the farm.

The key is to pick what is best for you and your business. Develop a plan that works and stick to it. Monitor it regularly and don't be afraid to make the difficult decisions.

Finally, look after yourself and your family. Take a winter break together before calving and make sure you get off the farm regularly. Look out for your neighbour as well, remembering we all handle stress differently. The Rural Support Trust can help with planning and explain what help is available.

Keep monitoring all aspects of yourself and your business. Remember, in a few weeks time we'll all be saying it's too wet!

Ciarán Tully
Chairperson
Federated Farmers Sharemilkers' Section
Phone: 07 867 5330
Mobile: 027 249 8306
Email: ciarantully@yahoo.com.au

STRESS

Some of you will be under great stress at the moment, some of you will be under so much stress that you won't have looked up and seen what a wonderful job you have done cleaning out the ditches, emptying the effluent pond (and polishing the bottom of it), straightening up the fence line and maybe even trimming up the hedges around your vege garden! The fine, warm weather has at least given plenty of people time to keep themselves busy, doing anything that keeps the body occupied if not the brain. Often completely these little jobs can keep you going. Another great, little job is to read to your children after dinner, or even better, get them to read to you. Look up, ask for help and it will get better. For more information on where to get help if you need it, click here.

GYPSY DAY

As the dairy farming calendar comes to a close, Federated Farmers Dairy wishes to remind sharemilkers and sharemilking contractors of their obligations. Sharemilkers need to ensure they have covered off the terms of their contract such as the house being available for inspection and that adequate feed for stock is left on-farm. These things will need to be negotiated with the farm owner. Stock will need to be fit and prepared for travel, able to bear weight on all four limbs and be in good condition to enable them to withstand the stress of transport.

Magnesium and hay are things farmers already know about, but in a rush they can sometimes be overlooked. Remember, stock must be stood off green feed for a minimum of four to eight hours before transport to reduce the risk of effluent spillage so check the estimated time of arrival of your trucking company so that the stand-off period can be scheduled. It is also a good idea to let the owner of the destination farm know the estimated time of arrival so that they can arrange for paddocks to be available. Remember too that trucking companies have their own set of rules and they are required to have effluent holding tanks and to empty them regularly at designated dumping areas to avoid overflow and spillage onto the road.

If cows are walking to a farm, check with the relevant council to see if you require a permit. It is also important to check with other farmers to avoid your stock being met by another mob coming from the opposite direction. Sharemilkers also need to ensure that if they are moving to a Fonterra shareholder's farm, that the change in Fonterra's capital restructure is reflected within the contract.

For all sharemilkers and contractors who are on the move, remember to give Federated Farmers a call on 0800 327 646 to update your details.

The Animal Health Board (AHB) would also like to know if you are selling or moving stock on Gypsy Day. Update your contact details and herd location by calling 0800 4 TB INFO (0800 4 824 636). The AHB can also provide you with information on disease and movement control to contain the spread of bovine tuberculosis (TB) within a herd. Please click here to visit the AHB's website for more information on the TBfree programme.

Have a safe journey!

Notices

FEDERATED FARMERS DAIRY AGM

Federated Farmers Dairy is gearing up for its AGM and conference, to be held in Invercargill on 23 and 24 June. During these three days is also a plenary session, which is a combination of Federated Farmers Dairy, Federated Farmers Meat & Fibre and the National Council. This session will focus on reinforcing Federated Farmers strategy to generate national awareness. This will comprise several significant guest speakers relevant to the agricultural industry. It will be followed by the Federated Farmers, ‘Cream of the Crop Awards' and dinner, where the cream of the crop of New Zealand farmers will be honoured.

Registration papers have already been sent out and should have been returned by now. Please also note that nominations for the executive must be returned to dairy policy advisor, Ann Thompson, by 5pm Thursday, 3 June 2010. You can return your nomination forms by emailing Ann at athompson@fedfarm.org.nz, via post to PO Box 154 Featherston Street, Wellington or by fax to 04 473 1081. If you need a form please contact Ann on 04 494 9191.

INTERNATIONAL DAIRY FEDERATION WORLD DAIRY SUMMIT 2010

The International Dairy Federation World Dairy Summit 2010 (WDS2010) is to be held at the SkyCity Convention Centre, Auckland from 8 to 11 November 2010 and discounted earlybird registrations for WDS2010 close on Monday, 31 May.

WDS2010 is the premier dairy industry event for the year, showcasing a comprehensive range of topics from within the dairy industry. WDS2010 provides world class international speakers, together with the input of local scientists and analysts. It will also bring together a wide range of supply companies from research, engineering, packing and logistics associated with the dairy industry supporting the event. There has been a huge response to the call for abstracts, with over 200 abstracts received for oral and poster presentations. The Summit programme, comprising 12 conferences, is available by clicking here. To register for the Summit, please click here.

SMALL HERDS EVENT 2010

‘Big Picture' is a series of three regional, compact, one-day conferences which will provide participants the opportunity to share their own experiences and innovative concepts, offer them relevant information, knowledge and skills for their businesses and explore their future needs. Health and safety will also be a focus, integrating the areas of farmers and family health, animal health, environmental health and industry health. Attendees will be challenged to think beyond the confines of their boundaries and the farm gate to consider the big picture of the business of farming, the role of the smaller herd in the dairy industry and its place and responsibilities in the global picture of food producing and sustainable farming opportunities. There are two conferences to be held, West Waikato on Tuesday, 8 June 2010 at Narrows Landing, Tamahere and East Waikato on Wednesday, 9 June 2010 At Longlands Restaurant, Matamata. The cost is $70 for DairyNZ levy payers and includes the whole day's sessions from 10am to 10pm, informative sessions followed by networking opportunities and refreshments, lunch and evening meal. For more information and to register, please call 0508 4 SMASH (0508 4 76274).

Training and education

INDUSTRY-BACKED LEARNING TO IMPROVE PRODUCTIVITY

Invest in your staff and your business. Agriculture ITO courses develop your skills in agribusiness management, resource management and financial planning. Courses for farm staff and one day workshops are also available to formalise learning and help build your systems. Contact your Agriculture ITO advisor on 0800 691 111, or click here to visit the website.

OPEN YOUR WORLD WITH A BETTER EDUCATION

With Open Polytechnic you don't have to stop your life to start a new one. Enrolment for trimester 2 is now open and you have until 2 July to take the first step on the path to your new life. Open Polytechnic also has many courses which are open enrolment, which means you can start at any time. For more information, click here or call 0508 650 200. Remember, Federated Farmers members get a 20 percent discount. Click here to download an enrolment form.

Member benefits

FULFILL ALL YOUR STORAGE NEEDS

Who can supply you a building to suit your storage needs? Totalspan supply a range of rural, commercial, lifestyle and residential buildings. For more information call 0800 868 257 or visit the Totalspan website by clicking here.

WARM FROM TOP TO TOE

Smiths City has the fantastic Ridgeline Top-to-Toe packs at an exclusive Federated Farmers Member price of $89.99. The Ridgeline Top-to-Toe packs include microfleece trousers, a microfleece long sleeve shirt, a workmans tee, a micro beanie and Snug-Fit outdoor socks. Brought individually, this pack would cost you over $240, for Federated Farmers members, that's a saving of over $150.00. Stay warm this winter by calling 0800 SMITHS or by visiting a Smiths City near you. Stock is limited, so get yours today.

WIN A FREE HOME WITH VERSATILE!

Versatile are giving away one 4-bedroom, 208m² Windsor home valued at over $200,000. Enter online at www.versatile.co.nz, or at your local Versatile. Just answer one simple question and complete the entry form and you'll be in to win! Entries close midnight Sunday, 30 May 2010. Terms & conditions apply. Home only, no land included, one entry per person and entrants must be over 18. For full details visit www.versatile.co.nz.

MEMBER BENEFITS AND OFFERS

To view special discounts exclusive to Federated Farmers members, please call 0800 327 646 or click here to log onto our members only area.

Our shop

BEN & MARK, BOYS OF THE HIGH COUNTRY

Christine Fernyhough's true story of two boys who live on one of New Zealand's largest high-country stations, with stunning photographs by John Bougen is now available for sale on the Federated Farmers website. Federated Farmers have it for the special price of $30 for members (non-members $36.99). Ben & Mark, Boys of the High Country is destined to become a New Zealand classic and would make a beautiful gift. We have a limited number so get online, by clicking here and order yours today.

THE ROAD TO CASTLE HILL: A HIGH COUNTRY LOVE STORY

Christine Fernyhough's first High Country tale is now available on the Federated Farmers website. Warm and humorous, this inspirational book tells the story of a woman bold enough to do what many urbanites dream of: embark on an entirely new life and throw herself into a considerable challenge. Federated Farmers have it for the great price of $38.50 for members (non-members $45.50). Beautifully illustrated, The Road to Castle Hill is also a celebration of New Zealand's high-country way of life.

CONTRACTS, AGREEMENTS AND LEASES

These include land, stock, contractor, sales and purchase, agreement to grow, log books, access pads, Over Dimension Certificates and employment. Remember, it's a legal requirement to have an employment contract for EVERY employee so if you don't have a current employment agreement, then order one now. Contracts, agreements and leases are available in both electronic and hard copy formats for your convenience. To purchase, call 0800 FARMING or click here.

Recruitment

CANTERBURY FIELD OFFICER VACANCY

Federated Farmers is currently seeking a Field Officer to manage the Canterbury region. In this 12-month contract role you will be selling membership to prospective members and be the key liaison point with farmers, current members and our local provincial executive. To be successful in this role you will need superb communication and organisation skills with the ability to build and sustain long term business relationships. You will have a solid understanding of the business of farming and be results orientated with a strong and proven sales record. A qualification in Agribusiness or equivalent practical experience would be of an advantage. To find out more about this opportunity and for a job description please click here. Application close 5pm Friday, 28 May 2010.

Contacts

Please remember that if you have any issues or queries you would like to discuss, please feel free to contact Federated Farmers on 0800 FARMING (327 646) or contact your local Federated Farmers Dairy representative or one of the Executive team as listed below.