Federated Farmers - June 2011

Dairy Alert

The bi-monthly newsletter from Federated Farmers Dairy Industry Group

Chairperson's commentary

Federated Farmers Dairy chairperson, Lachlan McKenzie

The Federated Farmers' custom is for the Dairy Chairman to step down after three years. This time arrives for me on the 29 June, less than a week away.

It seems like only yesterday that I met with a new Dairy Executive to plan out our strategy for the next three years. During my time with them we all worked hard as a team and there have been many successes, one of which is the good working relationship we have forged with DairyNZ and the processors. Working together is essential to get dairying across the line in one piece, for the good of all dairy farmers. We have strived to get science-based solutions with Fonterra and DairyNZ that are workable for farmers, ticking the environmental, social and economic boxes. Having an industry that sings the same song is part of what success looks like.

Another is the work we have done on the Dairy Industry Restructuring Act (DIRA). While this is still very much a work in progress, with the Government dragging its heels, it is satisfying to have officials come and ask for our opinion before coming out with something that just won't work. Mind you, being consulted at the ground floor does not guarantee success! We also met all the Primary Produce Select Committee members, one on one, over the DIRA.

The process surrounding the Land and Water Forum (LaWF) was interesting. I spent the last twelve months with 20 other people from all sectors of society writing this LaWF report, and then delivered it to 18 meetings around the country. It was refreshing to sit with these people and thrash out some of the issues around our most valuable asset, water, coming to a conclusion that is a good fit for all, with no one sector being favoured over another.

There still remain some prime examples of work still to be done, such as the National Animal Identification and Traceability scheme (NAIT) and the Emissions Trading Scheme (ETS), which are mentioned below. I leave these to the incoming Executive to sort.

New Zealand is blessed with lots of water, warm temperatures and great soils that allow us to be world leaders in turning grass into high value dairy products. Sadly, there is a real lack of understanding by our regulators of the complexity of our biological processes both on farm and in the waterways. Economic reality seems to have passed by many as well. This leads to inappropriate regulation being proposed, resulting in reduced innovation and productivity gains, and stifling economic growth and prosperity.

There continues to be a role for the incoming executive at Federated Farmers Dairy to be the independent voice for farmers' rights, pushing back against inappropriate regulation. I look forward to hearing about their successes.

It has been a privilege to have worked with such enthusiastic and dedicated leaders within the dairy industry, and I also offer a big thank you to all the staff who have all helped in so many ways, too many to even start to tabulate.

Finally, all the best for the new season - may the cows produce well and the good payout continue.

Regards,

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

INDUSTRY NEWS

The Federated Farmers Dairy Annual General Meeting will be held in Rotorua on 29 and 30 June. It will be preceded on 28 June by a visit to DairyNZ at Newstead, where we will hear about the work DairyNZ is doing on greenhouse gases, the Feed Conversion Efficiency trial and its application to the future of dairy farming. The tour then shifts to AgResearch's dairy farm at Tokanui, where we will hear of some of the work they are doing on pasture persistence and management, looking at their milking systems and seeing what they are doing with all the information they are capturing from their cows. If you would like to join them at these farms, please contact Ann Thompson for more information and to register.

A WORD FROM THE SHAREMILKERS’ SECTION CHAIRPERSON

I hope that gypsy day went smoothly for those of you involved with the move. I do note, however, that there were some complaints about effluent spills on the road from various regions as cows were shifted. In the current climate of farmer bashing, spilling effluent is just not on. Sharemilkers must understand that all cows must be stood off green feed for at least four hours, and preferably 12 hours, with hay or other fibre fed the day before to allow them to empty before they are transported. Trucking companies also have a code of practice they should adhere to. More on this can be found in the advice section below.

On a happier note, here's hoping the 2011-12 season is a good one.

We recently held our Sharemilker Section AGM in Wellington. It was good to catch up with some of you. Congratulations to all those elected to the Council or Executive. I would also like to thank those who have stepped down this year for their work in the section. The new team is now: Chairperson Ciarán Tully, Vice-chairperson Jessie Chan, and Executive members: Neil Filer, Jeff Bolstad, Craig Littin and Paul Davidson. The full section and contact details can be found by clicking here.

Key findings from the AGM are:

Firstly, Vice-Chairperson Jessie Chan is leading a comprehensive review of the industry with a project entitled "Ensuring a Viable Progression Path for Succession in the Dairy Industry". The steering group for this will involve Sharemilkers' Section and Sharemilker Employers' Section members, as well as DairyNZ.

Secondly, I think that it is important that we stick together as a section. I have been on the Federated Farmers Dairy Executive due to my role as Sharemilkers' Section Chairman for the last year and have been surprised at the volume of work that the team does on behalf of all dairy farmers. The work done has saved us all from incurring additional costs to our sharemilking businesses. We must remain part of the wider Federated Farmers Dairy team in order to provide a united front for the benefit of all.

Meanwhile on farm, an area that may be important for you to consider is the cost of the Emissions Trading Scheme (ETS) to your business. Sharemilkers pay a tax on electricity and fuel to run their businesses - the average current cost has been put at around $3600 per farm. More on the ETS can be found below.

Many of you have asked me for the details regarding claiming back excise duty for petrol used on farm. The form is an MR70, available online from NZTA.

Finally, make sure you plan some time out off farm for you and your family before calving starts again!

Cheers,

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

SHAREMILKER EMPLOYERS’ SECTION

The Sharemilker Employers' Section also held their AGM recently, and the new team will be led by Chairman Scottie McLeod and Vice-Chairman Tony Wilding. The rest of the Executive are: Othmar Hebler, Gifford McFadden, Andrew Corrigan, Alan Law, Mike Elliot, and Willy Leferink. The full Section and contact details can be found by clicking here. Many of you will notice that Bill Laurence's name is not there. He has decided to hand over the mantle in Taranaki to Othmar, and has relinquished his Vice-Chairman's seat to Tony.

We wish to acknowledge all the work Bill has done over the years for the Sharemilker Employers' Section and especially his contribution to making both the Variable Order Sharemilking Agreement and the Herd Owning Agreement workable fair agreements. He was one of the small team that wrote (and helped revise) these agreements, negotiating in good faith for the good of the sharemilking industry, almost from the beginning. We will miss his fine judgement and ready access to the computer.

The Sharemilker Employers' Section is right behind the project the Sharemilkers' Section is overseeing (see above), and some members will be on the steering committee. Both Sections feel that a collaborative approach will be good for the industry.

SHAREMILKERS JOIN WITH SHAREMILKER EMPLOYERS

Both sections joined to hear from members of the team at DLA Phillips Fox, Federated Farmers' legal partners. Jason Woolley and Kate Young spoke of some of the queries that come their way regarding sharemilking. It appears that apart from initial queries regarding Fonterra's changed payment system, no individual issues stand out, indicating that both the Herd Owning and Variable Order are robust and work for both sharemilkers and farm owners. What is evident, however, is that a good working relationship between the farm owner and the sharemilker is essential and communication is everything.

Other News

National Animal Identification and Traceability (NAIT)

The proposed NAIT regulation has been delayed due primarily to the inability to build such a complex database. Those running the National Livestock Identification System (NLIS) in Australia were going to build the computer system to support NAIT but have pulled out due to the extra complexity required by it. The Government has also said they cannot pass the legislation before Parliament closes for the election in November. The up shot of all this is that NAIT has been delayed until at least mid if not late 2012.

Federated Farmers has taken this delay as an opportunity to try and make further improvements to what is turning in to a very costly scheme.

Emissions Trading Scheme (ETS)

New Zealand has an ETS currently on electricity, fuel and forestry. The cost today for the average dairy farmer is $3,600 per annum. When agriculture emissions are included in 2015 the cost for the average dairy farm will jump to $11,600 per annum and increase by $490 every year there after if nothing changes.

We have seen the Labour Party state they want agriculture in by 2013.

Federated Farmers is working hard to get changes to the ETS to reduce the costs to all New Zealanders and to stop the subsidies going to overseas owned forestry companies.

Advice

Travelling cows

While Gypsy Day has come and gone, there will still be cows moving as they return from their winter ‘holiday'. Do remember that effluent on the road is a traffic hazard, and for those of you who ride motor bikes, you know how dangerous this slippery stuff is.

There is really no excuse for effluent spills. Both the transport operators and the farmer have to play their part, and timely communication between these two groups is essential. Ask your transport operator to give you adequate notice, factoring in the time it takes to get the stock into the yard.

Preparation for travel, and especially for long distances, is essential. The recommended minimum is four hours off green feed but good practice is to precondition cows, feeding high fibre feed like hay the day before trucking and then standing for up to 12 hours to reduce gut fill. Stock must have free access to water. Click here to see the fact sheet from DairyNZ.

In some instances farmers can accept effluent from the stock truck. Click here for tips on how to manage this.

Transport operators will be fined if they spill effluent on the road. Don't be surprised if they pass this fine on to you if the spill is due to your cows not being stood off green feed for at least 4 hours.

If you are still unsure of what you should do and how to make these trips trouble free, talk to an experienced farmer.

Calving

Calving is just around the corner and having processes in place before the calves start arriving is helpful.

Leave clear instructions in the right place on what to do with colostrum, antibiotic milk, treated cows etc
Label taps and switches if that makes things easy at busy times
Check the quality of silage, both your own and that which you have bought in. Mouldy silage will cause real problems for you and your cows.
Slink skins. Start talking to operators who will be collecting slinks. Make sure they understand the sensitivity surrounding this issue - no one likes to see dead calves in a pile at the road side or being transported in open, uncovered trailers and utes. See if you can come to some sort of operating standard with them before the season starts.

Networking

In case you haven't noticed, it is election year. The flurry of dairy farmer bashing by politicians last month may have died down, but I fear this is only temporary. Most of the electioneering will be done during your most busy times - calving and mating - and you may start to feel the target of every bad thought that ever came your way. Get together now with your friends, neighbours and the new people just down the road. Start up a social group now while it is less busy, to help build up the networks while you still have the time and the energy.

Break

And most importantly, have a really good holiday. You deserve it.

Agrichemicals - What’s the difference between a GROWSAFE and Approved Handler Certificate?

There's a lot of confusion about the certificates you need to purchase and apply for agrichemicals. You may have heard you need only an approved handler certificate. This is not true. The reality is that while an approved handler certificate covers you under the Hazardous Substances and New Organisms Act (HSNO) to purchase agrichemicals, your regional council also requires a GROWSAFE® certificate to actually use the product.

The Resource Management Act (RMA) requires regional councils to prepare plans that specify that agrichemicals must be applied in accordance with the New Zealand Standard for Management of Agrichemicals, also known as NZS8409. Most plans also specify that users hold a GROWSAFE® certificate. GROWSAFE® training is based on NZS8409.

There are also a number of Good Agricultural Practice (GAP) and sustainability programmes which proscribe requirements around agrichemical training. These differ, but a requirement to provide evidence of training is becoming more common.

Although the Approved Handler and GROWSAFE® certificates are issued through different processes, you gain both qualifications through the single GROWSAFE® course.

In other words, if you do a GROWSAFE® course, you receive an approved handler certificate as well.

But it's important to realise that if you choose to do an approved handler course outside GROWSAFE®, you won't receive a GROWSAFE® certificate.

A GROWSAFE® Approved Handler certificate expires every five years, and a large number of certificates are currently up for renewal. It's important that when you go to renew your certificate that you update both. Updating your approved handler certificate only is not enough to meet your council's requirements.

To find out more about agrichemical training, or to complete or renew a GROWSAFE® Approved Handler Certificate, click here, or phone 0508 GROWSAFE (0508 476 972).

GROWSAFE® is administered by the New Zealand Agrichemical Education Trust, a not for profit organisation which has a mission to promote the safe and responsible use of agrichemicals. Federated Farmers is a member of this Trust.

Member benefits

MEMBER BENEFITS AND OFFERS

Contracts and agreements - Members can purchase Federated Farmers contracts and agreements at a discounted rate. Click here for more details or to make a purchase or call 0800 327 646.

Special discounts - To find out more about special discounts for members call 0800 327 646 or click here to log in to view the special discounts.

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.