Sunny-side up

Welcome to the spring Dairy Alert. I am writing this after the first sunny day in what seems like months. I hope you all see some more sun over the next few weeks to get the season off to a good start.

As chairman of Federated Farmers Dairy I would like to celebrate good times. Unfortunately, I continually see reef fish nibbling away at our profit. The emissions trading scheme and NAIT (National Animal Identification and Tracing) are two examples of schemes that will reduce our profits. I have major concerns over NAIT. I cannot find proper analyses showing what is needed for market access or what is needed to help recover from a biosecurity incursion.

Federated Farmers has written to the NAIT Governance Group with nine questions. In two months we have received only two answers. Our queries over the cost benefit analysis have not been answered. It appears to Federated Farmers the cost to farmers outweigh any benefit. I estimate the scheme will have a cost of $4,000 to $5,000 per year for my farm of 600 cows. It is important that we ask the hard questions about NAIT because as always, Federated Farmers is fighting unnecessary compliance costs.

I am pleased Federated Farmers has a very good working relationship developing with DairyNZ. Last Friday, with members of Federated Farmers Dairy executive, John Bluett and Robin Barkla, I met with three investment managers from DairyNZ to discuss its Industry Strategic Framework. The meeting was very fruitful. The main point Federated Farmers made was to focus on industry needs before coming up with solutions. There is still an opportunity for you to have your say on the direction of DairyNZ. Contact Federated Farmers Dairy or DairyNZ.

Lachlan McKenzie
Chairman, Federated Farmers Dairy

Making a difference

At the Federated Farmers Dairy AGM, two remits were passed relating to DairyNZ and excellent progress has been made:

1. Federated Farmers Dairy asked DairyNZ to put in place a ratification process that would allow all dairy levy payers the chance to approve board-appointed directors. The DairyNZ Board is made up of five farmer-elected directors and up to three board-appointed directors. In the past, levy payers had no say on the appointment of these board-appointed directors. The ability to approve all members on the board will mean that the whole board is held accountable to its levy payers and will give DairyNZ the confidence of farmer approval. In the run up to its AGM and director elections, the current DairyNZ Board has taken on Federated Farmers Dairy's suggestion and put forward a remit asking farmers to support ratification of board-appointed directors. Federated Farmers Dairy has supplied a supporting statement to go out with the voting papers, urging you to vote in favour of this remit.
2. Federated Farmers Dairy also asked DairyNZ to treat all those standing for election to the Board of DairyNZ as equal, by offering the same information on the levy payers to all the candidates. DairyNZ has agreed to treat all candidates the same by giving none of them contact details of dairy levy payers.

Raw milk review

Dairy farmers will know that Fonterra is obliged by law to supply independent milk processors certain quantities of raw milk at a regulated price. The government has been reviewing these Raw Milk Regulations and the results of this review were released in August. Federated Farmers Dairy submitted on them and was one of the few organisations briefed before the public release of the results. The government discovered that independent milk processors were buying regulated raw milk from Fonterra at a price that was less than Fonterra was paying its own farmers, and found that this was unfair. It has decided that from 2010/2011 an annual auction to find a price above Fonterra's farm gate price (the price that Fonterra will pay its own farmers for milk) will be held to provide independent milk processors with regulated raw milk. Those wishing to buy this regulated milk will be required to pay a premium above the farm gate price. The volume available will remain at 600 million litres. The current system will remain for the 2009/2010 season.

Dairy farmers will also be aware that these regulations will be laid aside when certain triggers are met regarding milk volume and competition, the ‘sunset' clause in the Dairy Industry Restructuring Act (DIRA).  These remain as is. Federated Farmers Dairy is relatively pleased with the result, given that the Commerce Commission wanted to retain the current formula for gaining the price, to increase the volume available and to raise the trigger levels so that Regulated Raw Milk would be around for another ten to fifteen years or potentially indefinitely. The Review also altered the definition of winter milk months to mean June and July, excluding the month of May. See full report here.

Disappointing environment

It is disappointing to see the negative campaigns being run by regional councils toward dairy farming. Federated Farmers Dairy, Fonterra and DairyNZ met last week to discuss a strategy going forward. Progress is being made to develop the tools and knowledge to challenge some of the mistruths that are coming out of regional councils.

Regional council crackdown

Regional councils around the country are cracking down on dairy farmers.  Federated Farmers Dairy chairman, Lachlan McKenzie, Dairy policy advisor, Ann Thompson and DairyNZ's Simon Tucker met with the Greater Wellington Regional Council, in response to media releases on the problems that the council was having with non-compliance issues.  Meetings like this have been happening around the country, with the Federate Farmers Dairy provincial chairmen and chairwomen meeting with officials, seeking to promote better understanding of processes on both sides and to improve relationships in an effort to get farmers a fairer deal while striving for good environmental outcomes. Federated Farmers works with all regional councils throughout New Zealand. The Federation's local efforts are focused on improving council rating systems and reducing the rates burden on farms.

International representation

Vice-chairman of Federated Farmers Dairy, Willy Leferink is the Federation's representative on the International Dairy Federation. The IDF is holding its annual conference in Auckland in 2010, and planning is underway. It is also setting up a framework for proposed environmental work and Federated Farmers Dairy executive has contributed to this.

Lobbying on logbooks pays off

Real progress is being made on the work-time and logbooks issue. As a result of the Federation's lobbying work an amendment is out for consultation which would see agricultural vehicles exempt from the work time and logbooks rules. Federated Farmers met with other members of the Agricultural Transport Forum to discuss the proposed changes this week and is in the process of writing a submission. The effect of the proposed amendments would be to allow tractors and other agricultural vehicles of up to 18 tonnes (or 25 tonnes in combination) to be driven on a car license. As the work time and logbooks rules only apply to vehicles driven on a class 2, 3, 4 or 5 licence, this would make tractors and agricultural vehicles exempt from the work time and logbooks rule.

Keep effluent off roads

This week Federated Farmers' Vice President Frank Brenmuhl met with the National Stock Effluent Working Group to discuss the problem of stock effluent on roads.  One of the things the group discussed was extending the recommended standing time to 12 hours. The Federation restated its belief that four to six hours is the appropriate time. As a result, the recommended standing time remains unchanged. The need for regional councils to install more effluent dump sites was also discussed.

Stock must be stood off green feed for four to six hours before transportation. If stock is not stood, then the holding tanks on the trucks are normally full within 20 minutes, meaning that effluent has nowhere to go but onto the road. Sending stock away without standing them in an attempt to get a higher liveweight does nothing to improve returns for farmers. This is an unacceptable and undesirable practice, and the Federation advises its members not to engage in it. The problem of effluent on roads is getting worse in many areas of the country and it is important farmers do their bit to minimise it. If things continue as they are then there is a risk of a backlash and the introduction of a much harsher regulatory regime.

Your opinion matters

In August some members took part in an on-line survey. Federated Famers Dairy was thrilled with the response. Your opinions helped the Federation frame its opinion. If you are a sharemilker or you employ sharemilkers, take the time to fill in the new survey on our website. The survey is for those who are on or have been on a sharemilking agreement.  Federated Farmers would like to know what you think about the quality and content of the sharemilking agreement so you get the best service available. Fill in the short sharemilking survey here.

Calf welfare

All newborn dairy calves, including bobbies and those being sold to bull calf rearers, should be fed 2-4 litres of colostrum within the first 24 hours of life, according to best practice guidelines recently released by DairyNZ. Veterinary sources also suggest that the benefits of feeding colostrum can be large, including up to 14kg weight gain at six months and a 40 percentage reduction in disease incidence for calves fed colostrum over those not fed it. Despite recent information suggesting that the value of bobby calves is low compared to the cost of colostrum, this should not be seen as an excuse. Feeding colostrum is a small price to pay to avoid serious animal welfare incidents and is especially important with the increased use of blood testing to determine the colostrum status of suspect calves. Copies of best practice guidelines for bobby calf welfare and humane on-farm destruction of dairy cattle are available free from DairyNZ, 0800 4DAIRYNZ, www.dairynz.co.nz.

Training

The Federation has secured funding from both MAF's Sustainable Farming Fund and Department of Labour's ERE fund to hold employment seminars around the country. The cost is only $30 for members. To register for a seminar in October or November call 0800 327 646.

Special discounts

To find out more about special discounts for members call 0800 327 646 or login the members area for special discounts.

Contracts, agreements and books

Members can purchase Federated Farmers contracts and agreements at a discounted rate. To order phone 0800 327 646.

Employment agreements: job application forms leave forms, drug and alcohol agreements, time/wage/holiday registers.

Other products and agreements: including: lease; contractor; sales and purchase; agreement to grow; log books; access pads; and Over Dimension Certificates:

Great reading: Ghosts in the Valley by Richard Steele and Farming and Subsidies: Debunking the Myths by Brian Chamberlin.

Remuneration reminder

September 26 is the final day to get your completed remuneration survey back to Federated Farmers. The survey results provide members with a reference guide to help build and enhance their businesses.

Get paid for signups

Federated Farmers is looking for contractors to help increase its membership. Contractor roles are locally based and ideal for someone who has great farming knowledge, knows local people and wants to earn extra money. For more information contact 0800 327 646.

If there are any issues you would like to discuss, contact Federated Farmers on 0800 327 646 or your local Dairy Section chairman or one of the executive team.

Federated Farmers of New Zealand, PO Box 715, Wellington 6140
Tel: 04 473 7269, Fax: 04 473 1081, website: www.fedfarm.org.nz

Staff

Policy advisor - Ann Thompson,  0800 327 646, 04 494 9191, athompson@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, barkla@xtra.co.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