Federated Farmers Dairy Chairman, Lachlan McKenzie

Eighty five per cent of the world's milk production is sold through co-operatives and most of New Zealand's milk producers belong to a co-op.  This belief is surely not misplaced.  Although there are huge benefits in belonging to one, there are also responsibilities. The co-operative structure enables small individual businesses to benefit from the collective strength of the whole body. Individually, we cannot process and sell our milk as efficiently as through a co-operative. The ownership structure ensures that all benefits are retained by the supplying members. But no matter what ownership structure a company operates under, it still needs to have a clear vision on what it wants to achieve. Under that, it needs a robust strategy and business plan with good governance and management. Federated Farmers Dairy has been talking with your co-ops, asking them to clearly articulate their plans to instil confidence in their members. Confidence also engenders loyalty. Can you articulate the strategy of the company you supply?

Federated Farmers Dairy plays a role in getting farmers' confidence back on track.  It has been talking with Fonterra's directors, members of its senior management team and policy people as we strive to get our point of view across.  However, it is up to Fonterra to get its message across clearly.  The latest round of talks has focussed on globalDairyTrade, the world auction platform for some milk commodities, and the Effluent Improvement Scheme (EIS).  The talks around the auction platform have gone some way to allaying our misgivings while the talks on the EIS offer us some room to make changes before the scheme comes into full operation in 2010. 

The West Coast suppliers have been having their share of problems. Federated Farmers Dairy, through our West Coast dairy chairman, has been working to get a degree of openness from Westland's Board.  They have also been dealing with possum control problems, vectors of Tb. We hope they have moved some way to resolving the issues by sitting at various tables.

The global economic climate has thrown up a few challenges, but as you play for the dairy team, you are on the winning team. We are at half time. We scored the first points last year with a high payout but the opposition has come back hard with talk of recession and gloom and doom.  We have to focus on our strengths, work together as a team, manage and minimise our weaknesses.  Talk to your banker, ring up your supplier, get in touch with other farmers in your area.

Dairy Council

Federated Farmers Dairy held its Council meeting in Hamilton last month, where members discussed ways of being an effective voice in their provinces, the benefits of belonging to co-operative organisations and the work that Federated Farmers is doing with other organisations on environmental policy.  Key-note speakers were Tim Mackle (DairyNZ) and Blue Read (Fonterra Shareholders' Council).  Both were keen to answer questions. 

The meeting concluded with a most successful field trip to the award winning farm of Andrew and Jenny Hayes in Taupiri.  Mike Scarsbrook (DairyNZ), Marty Forster (Effluent and Irrigation) and Bala Tikkisetty (Environment Waikato) demonstrated the environmental tools that make this farm so good.  It was pleasing to see that many farmers from the wider Waikato region came to see this farm in action.

Four remits were passed by the Council:

Remit 1: That, as part of its submission to the Review Committee on the New Zealand National Herd Improvement Database Review, Federated Farmers Dairy asks that the ownership of the database goes to the industry good body (Dairy NZ).   Management of the database could be contracted out if so required

Remit 2: That the revised Federated Farmers Dairy Constitution (2009) be accepted, subject to ratification by the National Board of Federated Farmers.

Remit 3: That the Variable Order Sharemilking Agreement be reviewed."

Remit 4: That Federated Farmers Dairy supports Fonterra's goal of reducing effluent non-compliance.  However, we disagree with parts of the details of the Effluent Improvement Scheme.  We submit that the scheme proposed be revisited with input from all industry participants before implementation."

Sharemilkers meet

The Federated Farmers Sharemilkers' Section Council joined the Dairy Council in Hamilton and then held an Executive meeting after walking around the Hayes' farm.  The Executive wants to know if you (as farm owner or sharemilker) use the Federated Farmers' Sharemilking Agreements - either the Variable Order (or Lower Order, as it is sometimes called) or the 50:50 Agreement.  To answer the survey, click here>>. This is in preparation for reviewing the Variable Order Sharemilking Agreement, as requested by the Dairy Council.

NAIT

As a key industry stakeholder, Federated Farmers has been involved in the NAIT initiative since its inception, and we have been in discussion with DairyNZ, which is looking seriously at our concerns.
For more information about Federated Farmers concerns with the NAIT proposal please click here to view our submission to NAIT on our website.

Aorere catchment group

An overview of the Aorere Catchment Group work was presented at the recent Federated Farmers Dairy Meeting in Hamilton by Michelle Riley, Dairy Chair of Golden Bay.

Here she writes of her experience of a group of farmers taking the lead and dealing with a difficult provincial issue.

Water quality in the western area of Golden Bay has affected some businesses and dairy farming members within the catchment area have taken leadership of this issue.  Although nutrient loading is not an issue in the waterways, local mussel farmers have had difficulties with elevated levels of Escherichia coli in harvested shellfish.  E. coli are bacteria of human, avian and bovine origin.

The group decided that although their farming activities were not wholly to blame for the issue, it made sense to work together with other interested parties to ensure best practice and if possible to improve what was happening in the bay.  The Sustainable Farming Funded project, to investigate the land/water interface to gain better understanding and learn about appropriate tools to mitigate environmental effect, is now in its third year.  Farmers in the area have hosted a series of field days to showcase effluent systems - including the newly developed weeping wall system - and to enable discussion and learning.

Working as a catchment with a collective approach to a community issue had some of the following benefits:

• Takes pressure off individuals.
• Learning can happen in a non threatening way. The group learnt about other industries, in this case aquaculture: their compliance constraints, testing regimes, quality control; effects of sediment, nutrient and bacteria; costs and returns.
• A leadership strategy encourages farmers to have confidence in their expertise to present information to others.  Farmers can be supported with science by engaging other experts.
• Moves past emotion, allowing for engagement in high quality discussion
• Allows time to work on long lasting solutions rather than hasty quick fixes.  The Tasman District Council has respected this and worked with the group.
• Use of outside agencies:  Landcare Trust, a cross boundary organisation, has been fantastic at supporting the group with ideas, administration, dialogue and encouragement. They have been excellent to work with and are now involving other top of the south groups, building collaborative networks of landowners.
• Allows you to tell your story in a positive way.
• Allows you to celebrate success! Make it social and fun.
• Allows you to evaluate outcomes and plan the group's future.
• And finally - start where you are at, do what you can, use the gifts you have.

For further details of the Aorere Catchment Group click here>> and here>>

For a report of the mussel chowder lunch - dairy farmers celebrating success with the mussel farmers click here>>

In February, the Federated Farmers Dairy Executive joined the Australian Dairy Farmers (ADF) in a three day tour looking at several South Queensland dairy farms and agribusinesses.  Here, Andrew Hoggard (Executive Member of Federated Farmers Dairy) shares his experience.

The farms we visited were very different and showed up some real differences between New Zealand and the Queensland ways, reflecting the different climates and regulations of the two countries.  Most of the farms we visited were overstaffed by New Zealand standards, with one farm of around 800 cows employing 10 FTE. The additional staff are needed because of the high grain feeding systems but I think some of it may be because New Zealand farmers have to be really ruthless with their budgets and work hard for efficiency on farm. 

The pressures Australian farmers face are animal welfare ones, not the environmental ones New Zealand farmers face, and heat stress for cows is a real concern.  All the sheds we saw had sprinkler systems in the yard for cooling the cows down, one had shade cloth covering the entire yard, and another had a big feed barn right by the shed, which is where the cows lived during the hot months.

The agribusinesses we visited were Withcott Seedlings, Kerwee Feedlot, and the Buderim Ginger Factory. All three were great examples of understanding what your customers are after and supplying what they need, whilst also having good relationships with suppliers.

Our last few days in Australia were spent in Brisbane, where we all sat around the Board table and we all were surprised to find that, overall, we both faced the same total costs per KgMS and also received a fairly similar return.  This means we all face similar pressures in the current economic climate.

Climate change is a big worry for the Australians, mainly in terms of the ETS that is being proposed over there; if we're not happy with the current version that is being re-looked at here, then spare a thought for the Australians. What they will be facing is a whole heap worse than what we currently have.

We spoke of the need for DairyNZ and Dairy Australia to work together.  Both countries will benefit if the two research organisations share resources and knowledge.

Finally, it was really interesting to note how well the farmer lobbyists (the ADF), the industry good organisation (Dairy Australia) and the producers (ADP) all work together. They all sit in on each other's meetings, are in constant communication with one another, and have about half of the political rubbish we have here in New Zealand.  How do they do it?  Well, they just trust that each organisation is looking after the best interests of the entire dairy industry. It's about time we had that culture here as well.

Know what your cows are eating. 
If you are sending cows off to someone else's farm to graze over the winter, please make sure that you ask what the forage crop has been sprayed with and when.  This should help you work out if any with-holding period is required and for how long.  The same goes for any bought-in silage.  It is your cows and your milk that is at risk if any minimum residue levels are found.

Facial Eczema Alert for North Island - The recent bout of warm and humid weather has prompted DairyNZ to issue a facial eczema alert to dairy farmers in the North Island. DairyNZ says a significant number of cows in the North Island are showing clinical signs of facial eczema (FE), and as the North Island is still two to three weeks away from the traditional peak time for FE, prevention is still a realistic option for dairy farmers. Information on FE management can be read in DairyNZ's Farm Facts, which can be downloaded from www.dairynz.co.nz or ordered through DairyNZ's farmer information line 0800 4 DAIRYNZ.

Contracts
Dairy farmers will be looking at the contracts for their workers and sharemilkers for the coming season.  Make sure that your contracts include very clear guidelines of who is responsible for what when it comes to effluent provision, monitoring and fines.

Federated Farmers Dairy AGM and Conference
This will be held in Auckland on 30 June-2 July, 2009.

Federated Farmers Sharemilkers' Section AGM and Conference will be held in Wellington on the 6^th and 7^th May 2009.

New Zealand Dairy Industry Award
Presentations of the various awards to the regional winners are about half way through.  Details for the regional Awards' dinners and field days can be found at www.dairyindustryawards.co.nz .  Tickets for the National Final, which will be held in Wellington on 16 May, are now available through the website.  Federated Farmers congratulates the winners around the country and recognises all the work that all entrants have put into preparing for the competition.

Leadership training

Help yourself become a Federated Farmers of New Zealand leader by attending one of our two leadership courses.  Call 0800 327 646 to speak with your local provincial president. Or to visit the Federated Farmers website please click here.

Rural jobs

Looking for a job or trying to find someone? Then visit the Federated Farmers website.  To advertise for employees or see what is available please click here.

Special discounts

Fertiliser - See Ravensdown for New Zealand's leading fertiliser prices - you can have confidence they will look after you with the best prices. For a price list please click here.

More special discounts - To find out more about special discounts for members call 0800 327 646, or log in to the members area for special discounts. 

Employment contracts and agreements - These include: job application forms, leave forms, drug and alcohol agreements as well as time/wage/holiday registers.  Visit the Federated Farmers website to purchase.

Contracts, agreements and leases - Such as: land, stock, contractor; sales and purchase, agreement to grow, log books, access pads and Over Dimension Certificates.  Visit the Federated Farmers website to purchase.

E-contracts, e-agreements, e-leases - Members can now purchase online, electronic Federated Farmers contracts and agreements. Visit the Federated Farmers website to purchase.

Books - For a good reading list or for business related books visit the Federated Farmers website to make a purchase or to browse.

E-books - E-Books are books that are accessible online for your convenience. Federated Farmers offers the opportunity to buy these online. There are a range of informative booklets for employers and employees alike so visit the Federated Farmers website to make a purchase or to browse.

Clothing -  Be proud to be a member of Federated Farmers by wearing the name proudly.  Visit the Federated Farmers website to purchase.

Please remember that if there are any issues you would like to discuss, contact Federated Farmers on 0800 327 646 or contact your local Dairy Section chairman or one of the Executive team as listed below.

Federated Farmers of New Zealand, PO Box 715, Wellington 6140

Tel: 04 473 7269, Fax: 04 473 1081, Website: www.fedfarm.org.nz

Staff Contacts
Dairy policy adviser - Ann Thompson
0800 327 646, 04 494 9191, athompson@fedfarm.org.nz

Travel administrator
0800 327 646, travel@fedfarm.org.nz

Executive Contacts
Chairman -  Lachlan McKenzie
07 332 3440, 021 382 442, lmckenzie@fedfarm.org.nz

Vice-chairman - Willy Leferink
03 307 2666, 021 796 037, legro@orcon.net.nz

Vice-chairman - John Bluett
07 825 9709, azz@xtra.co.nz

Executive - Robin Barkla
07 323 6958, rbarkla@orcon.net.nz

Executive - Andrew Hoggard
06 328 9677, 027 230 7363, ajhoggard@farmside.co.nz

Sharemilker Representative - Jeff Bolstad
07 884 4127, jkbolstad@xtra.co.nz