An Ashburton Guardian Supplement

Synlait launches into China Synlait launches into China P8, 9P8, 9

FOCUSIssue 44 - January 31, 2012

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Herd scene with HamishHerd scene with Hamish

An advertising supplement ofthe Ashburton Guardian

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

Publication date: January 31, 2012 Next issue: February 28, 2012

We welcome any correspondence to either: Amanda Niblett, phone 307-7927 email: amanda.n@theguardian.co.nzor Linda Clarke, phone 307-7971 email: linda.c@theguardian.co.nz

FOCUS

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New Zealand’s reputation as a food producer for the future continues to fuel dairy farm sales and conversions in Mid Canterbury, says

Mid Canterbury Federated Farmers’ dairy chairman Hamish Davidson.

“New Zealand is central in the food story at the moment. We will not feed the whole world, but we will feed a lot of the more wealthy people in the world.

“Everyone is looking for reliability of production and New Zealand, especially Mid Canterbury, ticks this box. When it comes to scale, quality soils, IP, irrigation, a relatively friendly operation environment including a stable government, we have some good things going for us. ”

Hamish said interest in buying existing dairy farms, or converting, remained high. Three farms in the district were snapped up prior to Christmas by an ex-pat Kiwi and there is also heavy interest from overseas people.

Twenty new conversions in the district by next milking season will directly create 100 new jobs, with plenty of spinoffs for industry, schools and retailers. Those 20 new farms would need grain, silage and other feed for dairy cows, creating opportunities for arable farmers.

“The reality is, another 20 irrigated sheep and beef farms will need to go into dairy support.”

People need to remember that it is irrigation, not dairying, that has contributed to Mid Canterbury’s wealth and growth, then people make a choice about land use.”

Hamish said a downside to the dairy expansion and corporate investment was that those entering the dairy industry at lower levels were finding it harder to progress to the point they could own their own farms. The normal mechanism of share milking needs to morph to allow people a clear progression.

With expansion will come concerns around animal welfare. Cows in mud, inductions, extremes of hot and cold, skinny cows and sick animals were images that customers in other parts of the globe would not tolerate.

Environmentally, all dairy farmers will also need to ensure their farming systems were sustainable.

The industry did not need farmers like Blair Lloyd, a Springston dairy farmer fined $20,000 this month for illegally discharging 44,360 litres of diluted effluent, Hamish said.

Lloyd was also sentenced to 260 hours community work and Environment Court Judge Paul Kellar said he only avoided home detention because no electronic monitoring was available in the area where Lloyd lived.

In October 2012 Lloyd disconnected a pipe from a blocked travelling irrigator, and placed it under trees, discharging some 44,360 litres of effluent over four days.

The diluted effluent flowed into drains which feed a water way that flows into environmentally-sensitive Lake Ellesmere.

Hamish said the punishment was just. “What goes through someone’s head when they make a decision like that? It is not the norm. Most people don’t wake up in the morning looking to do something wrong. It is one idiot making a decision like this that affects the whole industry.”

He said while new dairy farms had high-tech effluent disposal systems, low tech systems like travelling irrigators were still effective if used properly, as the majority of dairy farmers did.

Judge Kellar said it was the largest effluent discharge breach before a court in Canterbury; that the offending was deliberate and likely to cause significant harm to the environment.

He said the sentence needed to deter others from committing similar offences.

Environment Canterbury said the travelling irrigator was operating in breach of the farm’s consent.

Resource management director Kim Drummond hoped the penalty would reaffirm the importance of dairy farmers taking all practicable steps to protect the environment.

The company which owns the farm is defending related charges and is due in court next month.

TAF

Fonterra’s Trading Amongst Farmers (TAF) will be the subject of a meeting in Ashburton today (January 31).

Mid Canterbury Federated Farmers dairy spokesman Hamish Davidson said the 300 farmer suppliers in the district should head along, listen, ask questions, seek independent advice and speak to other farmers about the proposed plan.

“People have to make their own decisions as to what ticks their boxes and suits their values. Some people are happy that the control of Fonterra could fall to other parties, but I think most are adamant they want to 100 per cent ownership and control.”

He said Fonterra farmers had approved changes to the company’s constitution, and most were happy for “mum and dad” investors to have a share in the company.

And the easiest way to achieve this is to buy shares in a dairy farm.

There are plenty of ways to “invest”, including becoming equity partners in farms, or joining syndicates that owned farms.”

3

DIA entrants confirmedDIA entrants confirmed

Good grass growth and milk production will help contestants in the Canterbury-North Otago

Dairy Industry Awards put their best foot forward.

Preliminary judging to find the region’s best dairy trainee, farm manager and sharemilker/equity farmer will begin early next month, with winners in each of the categories announced at a dinner at the Hotel Ashburton on March 28.

Organising committee member Debbie Mackle said entry numbers were on a par with last year, with 27 entered in the dairy trainee category, 18 in the farm manager category and 14 in the sharemilker/equity farmer contest.

“There is a good mix of new faces and previous entrants, making for a really strong competition again this year.

“It has been an extremely good season weather wise, so with good grass growth comes good milk production. These factors will help with contestants’ confidence building up to the judging.”

Dairy farmers around the country have not been so lucky with the weather, including the awards national

executive chairman Matthew Richards who is dealing with drought on his Southland farm.

But in Northland, regional convenor Murray Jamieson had had 730mm of rain since the beginning of December and lush grass cover a foot high.

“We could easily milk another 100 to 150 cows – the only downside is the lack of sunshine hours which makes the grass low in ME (energy) and fibre.”

Mr Richards said the weather conditions across the country would make it interesting for judges.

“It will be quite good to see how the entrants are managing the dry spell and I am sure there will be some managing it better than others. Likewise in the north, it will be interesting to see how some are managing the abundant feed to maximise production and costs.

“Regardless of the weather, judges treat all entrants the same by judging them on how they are managing the resources available to them. It’s not about who has the highest milk production, but who is doing the best with what is available to them.”

Winners of the Canterbury-North Otago region contest will go to national finals in May.

Regional entries for 2012 -

Dairy trainee of the year:

Patrick Whittle, WaiauJesse Main, OxfordJoshua Grant, ChristchurchKerry Burt, OamaruRuss Young, AshburtonMatthew Burrough, DorieShea Rainey, TemukaJames Emmett, TimaruAmanda Kelly, TemukaLisa Avery, OxfordAsh-Leigh Campbell, DunsandelJeffrey Colombus, AshburtonKerry Higgins, ChristchurchNathan Christian, AshburtonZach Graham, OamaruShane Petersen, AshburtonToni Mackenzie, North CanterburyDavid Wooldridge, RakaiaKirstie Austin, TemukaHamish Thomas, SpringstonAbi Rackham, MethvenTama Pokai, LeestonNicholas Rogers, GeraldineBen Falconer, DunsandelJordanna Jamieson, AshburtonPaul McCullough, KurowToby How, Temuka

Farm manager of the year:

Angus Thomas, AshburtonAdam Wakelin, AshburtonChaminda Ruwan Pathirana, Darfield

Liam Kelly, TemukaMark Keoghan, AshburtonMalcolm Chubb, AshburtonReino and Ilze Esterhuyse, LeestonMick O’Connor, RakaiaAlec and Debbie Smith, AshburtonAthol New, RakaiaChris Eden, OamaruJason and Paula Strawbridge, AshburtonKenneth and Catherine Pottinger,

AshburtonStephanie Macfarlane and Robert Holt,

AshburtonShannon Croy, AshburtonDavid and Jenny Lansdown, AshburtonMatthew Sywell, GeraldineStephen Hyde, Temuka

Sharemilker/equity farmer of the year:

Hayden and Robyn Williams, OamaruEnda and Sarah Hawe, AshburtonKoji and Joei Wada, TemukaBoyd and Annette Slemint, OxfordEarl and Melissa McSweeny, AshburtonJames and Belinda McCone, WaiauKevin and Karen O’Kane, TemukaJason and Cassandra Herrick, OamaruSaun and Joanne Back, AshburtonMichael and Michelle Copland,

AshburtonDerek Aubrey and Michele Flavell, RakaiaBart Geypen and Natalie Fletcher,

OamaruBrett and Jaclyn O’Sullivan, OmaramaGlen and Wendy Drummond, Culverden

Farmers voting with their feetFarmers voting with their feetJohn Penno

Synlait Milk CEOoO

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Over the last four years Canterbury dairy farmers have signed up over 130 farms on long-term supply agreements to Synlait Milk. And another

wave of new suppliers is expected to be welcomed this year.

Synlait was dairy farming long before it ventured into milk processing and marketing. We started Synlait Milk firmly believing that there was an opportunity for Canterbury farmers to do better – to make more from milk. We made a commitment to leave our suppliers (and our own farms) better off than the alternatives. We do, and that’s why so many have joined us so quickly.

We have now firmly established ourselves in the marketplace, and are a business of genuine scale. This year we will achieve a turnover of $400 million, with substantial growth potential ahead of us. This potential is driven by the relationships we have established with our many farmers.

That said, it hasn’t always been easy and we have learnt an enormous amount. Having patient, long-term thinking shareholders has been a big help.

To make more from milk we need to ensure that global consumers are able to access the best that Canterbury dairying has to offer. Our focus is on partnering globally with leading milk-based health and nutrition brand owners.

Consumers pay more for these brands because they trust them. They trust the quality and integrity of these products, and the owners of the brands want long term relationships with suppliers they trust, so they can live up to that promise.

We have come to see our supply relationships with our farmers in the same way.

Synlait Milk suppliers rank alongside our customers as our most important business partners. We are committed to ensuring that by working with us they are better off than by working with anyone else.

So how have we achieved all of this in such a short period of time? I think to answer that question, it is worth looking at what makes our offering so good.

There is no doubt that Synlait Milk’s suppliers have been significantly better off than any of their alternatives when analysed on a whole of business basis. Our offering is based on a simple supply arrangement which offers a competitive milk price with no share capital requirement.

We firmly believe that dairy farmers are best to use their capital in their own businesses first, and when they are ready to invest off farm, should do so through a diversified investment portfolio. It’s just plain commonsense.

In addition to offering a competitive base milk price, our aim is to provide farmers with options to maximise their milk returns. Our composition payments reward farmers for producing the milk that our markets want. Autumn premiums have been set to recognise the changing value of milk through the season, and the value of additional milk when we have spare processing capacity.

Not only do we collect colostrum, we offer on-farm training programmes to help staff maximise both the quality and quantity harvested once the calves have been looked after.

We understand the importance of cash flow – especially for conversions. Typically our advance milk payments are the highest in the industry early in the season, when they are needed the most. Next year we are offering a Growth Advance Scheme that offers even higher advance payments for new or growth milk supplied. This is available to both existing and new suppliers.

It is not all about price however. We have a dedicated milk supply team focused on providing the best possible service to our milk suppliers. They have a wealth of expertise in sustainability, irrigation, milk quality, dairy conversions, and animal health and welfare. It is relationships that matter to us, and we find that by working one-on-one with our farmers, together we are able to achieve far better results.

It is a combination of dynamic thinking, coupled with great returns that help ensure our suppliers remain loyal to us.

We have delivered on our plans as a business, which have seen us establish a solid financial position. Our plans for growth include new customers in high-value markets around the world, innovatively meeting consumer demand for premium nutritional milk products, and maximising our manufacturing capability and export volumes.

Our milk suppliers are critical to us achieving these goals. The pursuit of becoming the world’s best nutritional ingredient supplier starts on farm, and that is why we do our best to ensure we establish a good relationship with each of them.

It is easy to supply Synlait Milk. There are no complexities with owning shares, we offer competitive payouts with the potential to earn more, and each supplier enjoys personalised service from our milk supply team.

But don’t take my word for it check out our milk supply section on www.synlait.com and listen to what our current suppliers say about working with us.

I also encourage you to ask the next Synlait milk supplier you see whether they are happy being a supplier of ours.

Synlait Milk Supply Specialist Mark Burnside with new Synlait suppliers doing a farm conversion.

Pregnancy genesPregnancy genes5

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New high protein dry dairy feed. More value in your vat

Poisonous ergot alkaloids and endophyte toxins

in grazing animalsErgotism is one of the oldest known mycotoxicoses and the first documented epidemic of ergotism occurred in the middle ages when thousands of people died because of the “holy fire”.Ergot alkaloids (also named ergolines) exert toxic effects in all animal species, and the most prominent toxic signs can be attributed to the interaction of ergot alkaloids with adrenergic, serotinergic and dopaminergic receptors.The term ergot alkaloid refers to a diverse group of about forty different toxins which are formed by Claviceps spp. on grains (rye, triticale, corn, wheat, barley, oats, millet, sorghum and rice) and by fungal endophytes such as Neotyphodium spp. in grasses, particularly tall fescue and perennial ryegrass, which adversely affects the health and productivity of livestock. This fungus produces the ergot responsible for the ergot alkaloid group of mycotoxins and parasitizes the seed heads of plants at the time of flowering. Classifications of ergot alkaloid producing fungi are shown in Table 1. Table 1: Classification of the main ergot alkaloid producing fungi

The main groups of natural ergot alkaloids are:

Good agricultural practices that limit contamination along with feeding compounds that have the capacity to bind these toxins are needed to reduce or eliminate the harmful effects. These selected substances bind ergot alkaloids in the gastrointestinal tract, reduce their bioavailability and increase their excretion as an adsorbent-toxin complex, thus helping control the negative impacts of these mycotoxins.Ingestion of endophyte toxins in grasses, even at sub-clinical amounts is of concern in animal production. Perennial ryegrass endophytes (Neotyphodium lolii) together with the neurotoxin lolitrem B and the vasoconstrictor ergovaline are responsible for, among others, hypersensitivity in ruminants, impaired heat stress recognition, and vasoconstriction.Plant toxins are chemical defense of plants against herbivores. Endophytic toxins in grasses include ergot alkaloids in tall fescue and tremorgens (e.g., lolitrem B) in perennial ryegrass. Perennial ryegrass endophyte (Neotyphodium lolii) alkaloids are frequently present in pastures containing the neurotoxin lolitrem B, together with the vaso-constrictor ergovaline, at levels associated with ryegrass staggers, heat stress, ill-thrift and lowered milk production. It has been shown that some of the physiological processes such as fertility may be lowered following ingestion of alkaloids produced by Neotyphodium endophytes.

Toxicity Animals can be exposed to complex mixtures of ergot alkaloids in many typical animal agriculture production systems. This exposure results from the fact that the kinds of alkaloids present and their levels can vary widely, depending on the fungal strain, the host plant and environmental conditions, being impossible to relate the exposure to individual toxins. The chemically diverse group of ergot alkaloids has been shown in vasoconstriction symptoms, being responsible for heat intolerance as well as necrosis of ears, tails and often hooves. Other symptoms such gangrenous changes, neurotoxic signs including convulsions, abortions and death, reduced prolactin secretion and consequently agalactia have been reported as major adverse effects in animals. Due to the fact that animals are exposed to a multiplicity of alkaloids when consuming endophyte-infected tall fescue, a combined alkaloid effect has been suggested by Klotz et al. (2008). Chronic exposure to moderate amounts of ergot alkaloids results in reduced weight gain, low reproductive efficiency, including decreased conception rates, decreased circulating progesterone and reduced signs of estrus. Threshold levels of ergovaline and lolitrem B have been established for cattle, sheep and horses

(Table 2). These levels, however, refer to the level of toxin in the total diet, not in single feed components

Table 2: Threshold levels of ergovaline and lolitrem B in the diet able to produce a clinical disease

*Except for mares in the last 60 to 90 days of pregnancy, when the threshold is zero.

ConclusionThe use of high quality feedstuffs to reduce toxicosis of endophyte toxins in livestock is the first step in avoiding problems they can cause, but to totally protect animals from the increasing risk of ergot alkaloid poisoning, a mycotoxin risk assessment is recommended.

Major classes

Claviceps

Neotyphodium

+

Fungi species

C. purpurea C. fusiformis C. paspali C. africana

N. coenophialum

N. lolli

Mycotoxins

Ergot alkaloids: clavines, lysergic acid, lysergic acid amids, ergopeptines

Endophyte toxins: ergot alkaloids, lolines, peramine

Endophyte toxins: lolitrems, peramine, ergovaline

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Not determined

After examining more than 20,000 genes, a DairyNZ scientist has discovered why some cows are

better at getting pregnant than others.

DairyNZ scientist Caroline Walker has discovered there are about 1500 genes affecting the uterus that are altered in pregnant cows.

The results of her research – “Endometrial gene expression during early pregnancy differs between fertile and sub-fertile dairy cow strains” – have been published in the international journal Physiological Genomics.

“This is ground-breaking research published in a highly-regarded international journal,” says DairyNZ principal scientist Dr John Roche.

“This gives us a greater understanding of the reasons for sub-fertility, and puts us in a better position to discover gene markers that will produce bulls that give greater fertility. It’s essentially enabled us to narrow down what we’re looking for.”

The work, which Caroline has been doing for the past three years as part of her PhD, involved looking at differences in the expression of key genes in the uterus in pregnant and non-pregnant cows.

She studied two different strains of cows – US Holsteins and NZ Holsteins. Work done by DairyNZ scientists over the last decade confirmed that US-type dairy cows were less likely to get pregnant in the New Zealand pasture-based system.

“We already knew that the New Zealand cow is better at establishing pregnancy. Conception rates are 50 to 60 per cent for New Zealand cows, compared with approximately 40 per cent for US cows.

“Caroline’s work has shown us some of the reasons why – basically the New Zealand cow is better at establishing pregnancy, and now she’s identified some of the genes which determine this. The next step is to look at epigenetic changes, which are things that happen to alter the expression of genes,” says Dr Roche.

“It’s extremely exciting work because understanding the underlying physiology has great implications for improving the fertility of the national herd.”

The work is funded by dairy farmers through the DairyNZ levy, and also by the Ministry of Science and Innovation, and has been done in collaboration with the Liggins Institute at Auckland University.

6

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Empowering dairying women with tips and tools to take charge of their farm’s financial

planning will be the focus of a practical workshop in Ashburton on March 14.

It is part of a series of workshops being held around the country in February 2012 through autumn.

Run by the Dairy Women’s Network, the Dairy Days workshops have been developed to provide dairying women with the skills and knowledge to create a budget and cashflow, review their cash situation, and be able to benchmark their business against others. Plus, a new, advanced training module will provide women with higher level financial planning skills.

“We ran a similar series of Dairy Days the past two years and we’ve already trained around 1000 women on a lot of the financial basics,” said Dairy Women’s Network CEO Sarah Speight.

“DairyNZ has, again, provided funding for our autumn 2012 Dairy Days and we will use those funds to run the same workshops in new locations around the country in February, March and April.

“Plus we’ve developed a new, advanced financial planning workshop

for women who’ve already gone through our first round of training.”

The financial planning Dairy Days consist of practical, interactive sessions that provide information about how to make the best financial decisions for dairy farming businesses.

There are three workshops running at the autumn Dairy Days catering for women at all levels. “The Organised Office” covers office systems, basic farm accounts and personal finance.

In the “Cashbook to Cashflow” seminars, participants are taught how to: calculate farm income from production data, deal with major categories of expenditure, calculate forecasted income, and estimate forecasted expenditure.

The new, advanced “Essential Farm Finance” seminars will teach participants how to use farm budget data to help with decision making. A large part of the day will be spent using budget data to look at a proposal to buy more land or look at a bigger sharemilking job. Benchmarking will also be looked at in detail as a tool to look at business performance.

“By attending a Dairy Day in their region, women will realise they already have all the information they need to

adequately plan for the financial health of their farming businesses, even if they do not spend every day on the farm,” Speight said. “At most, women often just need a few pointers on how and where to collate the information.

“Financial management continues to be an area of farm businesses where

women can add significant value. And through these workshops, they’ll be empowered to make a real difference in their operations.”

For a complete schedule of the Dairy Women’s Network Dairy Days being held in February 2012 through autumn visit www.dwn.co.nz.

The fi nancial planning Dairy Days consist of practical, interactive sessions that provide information about how to make the best fi nancial decisions for dairy farming businesses.

77

Cheaper than a lame cowCheaper than a lame cow

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Cowslips are lifesavers for many cows – without them many more cows would go to the works.

This is assuming that the slips are put on correctly; I have seen many instances where they were not.

Some dairy farmers think that cowslips are wonderful; some think they are too expensive and some could not make them stick on longer than a few steps.

Others commented: “just make sure you don’t have any lame cows!”

Most of the farmers I know do not have easy answers to their lameness issues. Sometimes we come across a cow that has had a block applied to its sore claw. This clearly shows that some farmers do not understand how cow blocks or cowslips work.

The idea of a block is to glue it underneath the healthy claw so that the sore claw is relieved from carrying any weight, allowing it to heal faster.

The cow should then walk better immediately as her pain has been greatly reduced. A block should last on a cow for three to four weeks.

Our company sells the Demotec FuturaPad claw blocks and the Bovi-

Bond Block Adhesive and blocks instead of cowslips.

This is mainly because they are easy to work with, are nowhere near as weather dependent in the time they need to set (can be used on cold or hot

days) and, most importantly, we can place the block much better on the claw.

Often you find with the shoe-type blocks that they sit too far forward. This makes the heel part of the block

wear too fast or they may even collapse in that part of the block.

The cow has no choice but to walk on the heel of her foot which puts an enormous strain on the tendon keeping the pedal bone down. This can cause so much stretch in some cases that there is a degree of lasting damage.

With a FuturaPad or Bovi-Bond block you can place the block as far back as you like, though obviously you would not want to place it too far back. The back part of the block should be flush with the heel of the cow.

It doesn’t matter at all if the toe is sticking over the front as long as the heel is flush. This way the block will wear more evenly and that is also better for the ligaments. The block should also be placed flush with the inside of the claw and needs to be as flat as possible and not on an angle.

Remember that the block is there to support the weight of the cow – that can only be achieved if the block is placed square and not too far forward.

The price of a block is often challenged. It does pay to shop around: there can be big variations in the prices of the same products. But, even if the blocks were sold for $100 each they would still be cheaper than a lame cow!

Fred HoekstraVeehof Dairy Services

raes

The idea of a block is to glue it underneath the healthy claw so that the sore claw is relieved from carrying any weight, allowing it to heal faster.

8

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It was a fantastic feeling to see Synlait Milk manufactured infant formula on the supermarket shelves in China. It was a clear demonstration of

our ability to deliver on our plans.

In November 2011 Synlait Milk’s new state-of-the- art Infant Nutritional Plant was officially opened in front of than 400 guests. At that event I revealed Pure Canterbury, the first consumer ready infant formula

product produced by Synlait Milk for Bright Dairy.

The Shanghai-listed company is currently ranked third largest dairy company in China, and in 2011 had operating revenue of $NZ2.4 billion.

We had the privilege of attending Bright Dairy’s official product launch of Pure Canterbury in Shanghai, China on December 13, 2011.

It was also attended by New Zealand’s Counsul-General in Shanghai, Michael Swain, and New Zealand Trade & Enterprise Trade Commissioner, Mike Arand.

The event had all of the fanfare you would expect from a major new product launch in China. A polished and professional example of how big this opportunity really is.

Hosted by one of China’s biggest television personalities, the event included performances by recent winners of China’s got talent, a significant multi-media presentation, and was covered by more than 40 media representatives.

With a population roughly the size of Australia, Shanghai is the testing ground for Bright Dairy’s super premium infant formula. The retail price per 900g can ranges from $NZ92 for stage one infant formula, to $NZ84 for stage three infant formula.

This is significant when you compare it to the price of a can of formula on the supermarket shelf in New Zealand, which ranges between $15 and $30. It typifies the value consumers in China are willing to pay for formula produced and packaged in New Zealand.

At the launch of Synlait’s product range in China were (from left): Mike Arand, Michael Swain, Guo Benheng, John Penno

9

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It is little wonder that Bright Dairy is investing 20 million yuan on the advertising and promotion of Pure Canterbury over the next 12 months.

Consumer response to Pure Canterbury has been very positive. Bright Dairy’s focus on Canterbury’s clean, green, purity has not only differentiated this product in the marketplace, it has struck a chord with Shanghai consumers deeply concerned about the integrity of their food.

Guo Benheng, president of Bright Dairy, has said that he expects Pure Canterbury to achieve sales of 3 to 4 billion yuan in the next three to five years through direct sales, e-commerce and traditional offline sales channels.

He also expects China’s milk powder industry to generate 50 billion yuan worth of sales annually, with one-fifth coming from high-end products.

Seeing the product on the supermarket shelves was another big milestone for us. It proves not only our capability as manufacturers, but that our product is in demand.

With our world-class staff and the best nutritional plant in this part of the world, our infant formula proposition is compelling.

Since the launch last November customer interest has been significant. With growing world-wide demand for higher-value formulated milk powders it is the realisation to many that Synlait Milk is a viable option for high quality product sourced out of New Zealand.

By the middle of this year we expect to be working with more than 10 customers in five countries.

Of course this would not be possible without our milk suppliers. They are an important part of our nutritional offering. The people operating the farms, the size and quality of the units and the consistency and integrity of the fresh milk our suppliers produce is second to none.

As a business Synlait Milk is well on its way to achieving its goal of becoming one of the world’s best infant nutritional producers. We are unashamedly

focused on growing this part of our business, and the outlook looks extremely positive.

But we can’t do it alone. Right now we are actively seeking your interest as milk suppliers to join us.

Check out our website www.synlait.com for more details. We look forward to working with more Mid Canterbury dairy farmers in the future.

John Penno,Synlait Milk CEO

John PennoSynlait Milk CEO

oO

The launch for the Canterbury Pure products was a dazzling affair.

RIGHT: Synlait’s products on display in a China supermarket.

10

Ride on mowersKing of the lawn

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Grass is a wonderful thing. On alifestyle farm we usually either havetoo much or too little and the grassthat does grow is often not wherewe need it - on the lawn, not thepaddock!One piece of equipment that canhelp the task of managing grass apleasure is the ride-on mower orlawn tractor.Whether you are an expert landscaper or an ambitioushomeowner with more than yourshare of yard to mow, a ride-on mower can be an indispensablelabour saver.Don't let the vast number of ride-on mower options weigh you

down. Find the right one for you and still stay within your budget. Toensure you get the best price on a

performance, compare pricesamongst retailers beforegyou commit to buy.

stions1. What's your lawn like? You need to know how big the area to be mowed is in square metres. Additionally, the terrain and number and size of obstacles in and around the lawn isimportant to a smart selection. Hilly lawns may require an all-wheel drive model. Flat and smooth lawns allow for higher-speed mowing. Trees, shrubs, and statuary within the lawn require a nimble mower to reduce wasteful turns. If your lawn is long and doesn't have many obstacles, a conventional

2. What do you want to do with the grass? Some ride-onmowers have side-discharge chutes that send the cut grass out the right side of the mowing deck to be deposited on the lawn.Some homeowners prefer to bag the clippings in an optional bagger for further recycling (as compost) or for disposal. Others install an optional mulching kit that includes a plugto cover the side chute and one or more mulching blades. The grass clippings circulate in the mowing deck until they are cut to shreds and fall to the lawn to degrade and become mulch.

3. How much of a job do you want to make of mowing? Somefolks like the exercise of mowing the lawn with a walk-behindmower, but a paddock may be a bit much. Others need to get the job done and be at the golf course by 9 a.m. Some lawns

equire more frequent cutting than others, especially duringrthe local growing season. Also, some homeowners don't havea handy spot to park a big mower and really need one that doesn't take up much space. You may want a narrower mowerthat can park in a shed and go through a standard fence gate. These are all considerations important to selecting the best value.

4. What else do you want it to do? Most ride-on mowers haveone function: to cut grass. But you may have other jobs that can be helped by a powerful yard machine. Some mowers have a simple connection at the rear to pull a small utility trailer around. Others have a power take-off (PTO) connection that allows you to connect and power a small implement. If you intend to tow, check with the transmission manufacturers as to towing limits, ride on mowers are not tractors, and most will l have a towing limit of around 100kg, unless you are looking at Lawn Tractors. A good salesperson will be able to talk you through the options.

Your ride on will be a valuable asset and should be looked after. Keep it in a dry place when not being used or buy acover for it. Make sure it is serviced when needed.

11

Westland an award finalistWestland an award finalist

Directional Drilling Co. NZ Ltd

Services under driveways, road, dairy lanes, power, phone, irrigation, water, continuous ducting and sewer lines.

DDC also offer the services of fusion welding from 20mm up to 800mm PE pipe with a computer read-out of joint condition and quality.

DDC is locally owned and operated company that is part of GDC Ashburton.

DDC is offering services of trenchless excavation by way of directional drilling or thrusting for all those places you don’t want to open trench, therefore saving on mess and reinstatement costs.

For further enquiries or a no obligation free quote, call Greg today on (03) 308 8479 or 0274 326 915 – email greg.gdc@xtra.co.nz

15 Malcolm McDowell Road, Ashburtonwww.gdc.net.nz

Westland Milk Products is a finalist in the 2012 New Zealand International Business Awards.

The New Zealand International Business Awards is a prestigious business awards programme purposely designed to celebrate New Zealand business success internationally, and recognise professional excellence and innovative practice.

Westland will compete against 27 other New Zealand exporters for honours. In addition to being announced a finalist in the general over $50 million turnover category, Westland is also a finalist in the specialist categories of Best Commercialisation of Intellectual Property in International Business and Best use of Research and Development in International Business.

Westland Milk Products chief executive Rod Quin says the announcement that Westland is a finalist in all three categories reflects the calibre of the company and its exceptional export strategy.

“It demonstrates that as an exporter Westland can foot it with the best New Zealand has to offer.”

In the past 10 years Westland has delivered consistently solid payouts to shareholders and contributed significantly to the West Coast community and New Zealand economy.

Quin credits Westland’s international business success to placing customer needs at the forefront of all strategic decision making and the dedication and unity of its staff and shareholders.

“We have great respect for the competitive environment our customers operate in and make it a priority to develop innovative product solutions for them.”

Quin said that without the commitment and loyalty of its staff and shareholders, the business would not be in the successful position it is today.

“We are fortunate to have such a talented team of individuals who work together every day to help the company reach its full potential. We are proud of what we have achieved to date and look forward to contributing further to the local community in coming years.”

Award winners will be announced on March 21.

Winner of the judges’ supreme award will receive $100,000 prize. Special category winners will receive $50,000 from the Ministry of Science and Innovation (MSI) to fund external research and development expertise into their business.

Westland Milk Products is a fi nalist in the 2012 New Zealand International Business Awards.

12

Spray dryer a step closerSpray dryer a step closer

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New Zealand’s first and only independent product development spray dryer is one step closer to being open for business.

The 10.5 metre high stainless steel dryer, weighing 7.5 tonnes was lifted into the new pilot plant this month on the Waikato Innovation Park campus in Hamilton.

The $11 million product development spray dryer facility, primarily funded by Innovation Waikato Ltd, is the Waikato component of the Government-sponsored New Zealand Food Innovation Network. Capacity of the multi-purpose spray dryer is one-half tonne/hour.

Construction of the facility will be completed in April 2012 and the first product run is scheduled for mid-May.

“We’re now looking for commitments from companies that want to research and develop new spray dried food products in the pilot plant,” said CEO of the Waikato Innovation Park Derek Fairweather.

“Our message out to the market is that we’re open for business and we want to help companies create new products and reach new export markets. We believe this dryer facility is a key mechanism for moving the dairy industry from a focus on commodities to value-added production.”

Mr Fairweather said there was huge potential for specialty milk producers, in particular.

“This facility will give innovators in the industry the ability to come up with the next speciality milk product – along similar lines as Stolle, A2 and colostrum products. I also expect to see the facility helping create entirely new industries, such as dried sheep milk products.

“This facility creates opportunity for anyone who’s ready to scale up a new spray-dried product to commercial production. As our facility gains momentum, the opportunities for product innovation will be that much more possible in smaller dairy companies.”

The Dairy Goat Co-operative has already committed to utilising 40 per cent of the plant’s capacity. The company’s commitment was a critical factor in creating the commercial case, and gaining government funding and approval to build the plant as a true Private Public Partnership.

The co-operative’s CEO, Dave Stanley, says the dryer facility will help the company bring on extra capacity to meet expansion requirements.

“We’re going through a major growth phase at Dairy Goat Co-operative and intend to install a second dryer on our Hamilton processing site within the next few years. Using the new dryer at Waikato Innovation Park to produce our goat milk powders has provided us with the perfect bridge.”

Dave Shute, operating manager for the new plant, says the dryer facility gives smaller, innovative players in the speciality milk industry a chance to move innovation to commercialisation.

“New Zealand is a major player when it comes to supplying milk and food products to the world. And, Asia – particularly China – is an extremely important export market that is right on our doorstep. The challenge for producers, however, is developing new products that appeal to these consumers.

“The issue is that if you are a smaller player in the

specialty milk industry, it’s difficult to gain access to a commercial manufacturing facility where you can test a new product and then scale it up to commercial production. The Innovation Park’s new dryer gives the innovators in the industry an amazing opportunity they never had before.”

Mr Shute says the long-term strategy for the plant is to expand the spray dryer’s capability to manufacture infant formula, fruit and vegetable juice powders.

The spray dryer unit is lifted into place.

13

Cows pampered with waterbedsCows pampered with waterbeds

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If you want great milk, you need happy and healthy cows.

At Conrad’s Dairy Farm in Ohio, USA, that means pampering their milk producers with waterbeds. After 10 months of use, dairymen Richard and David Conrad have given the waterbeds a thumbs-up.

“You make them happy, they’ll make you happy,” says Richard Conrad.

During the recent visit, the curious cows crowded around visitors, gently nuzzling coats and clothing. Now and then, a cow would get up or down from the waterbeds, causing a telltale jiggle on a bed’s surface.

When the waterbeds were installed in March, the cows were a little skittish because they weren’t used to putting their hooves onto the thick rubber bladders that hold the water, according to the Conrads.

But the cows soon discovered that lying on the beds

was pretty darn comfortable, the brothers said.

The brothers paid about $US55,000 for Dual Chamber Cow Waterbeds for their 240 cows and another $15,000 or so for the concrete bases in which the waterbeds rest.

On top of the waterbeds is a dusting of sawdust and lime for additional bedding comfort and cleanliness.

Richard Conrad thinks the waterbeds could pay for themselves in as little as three years because of an annual $6000 savings in the cost of sawdust and a better price for their milk.

The farmers said the quality of the cows’ milk improved and the farm was able to lower its somatic

cell count to about 100,000 cells per millilitre, compared with 150,000 to 200,000 cells per millilitre before the waterbeds were installed.

Somatic cells are white blood cells that increase in response to pathogenic bacteria. The lower the count, the better, and the more stable the milk products produced from the milk.

The US government requires a count of fewer than 750,000 cells per millilitre while the European standard is 400,000 cells per millilitre.

Using waterbeds for cows originated in Europe about 15 or 20 years ago and was brought to the US by Dean Throndsen of Wisconsin-based Advanced Comfort Technology Inc.

Throndsen and his wife, Audrey, patented the

design of Dual Chamber Cow Waterbeds in 2003 and have sold about 500,000 of the devices in 18 countries including New Zealand, India and China.

Throndsen said that getting up and down – or lying for long periods of time – can hurt the cow’s front knees and rear hocks – or ankles. That’s where the waterbeds come in, because they provide a cushion.

Throndsen is proud of the two-chamber design that supports both the front and back of the animals, which can weigh 725 kilograms or more. “When she hits that pillow with her knees, it totally cushions them,” Throndsen said.

The decision to put in waterbeds at the Conrad farm was a good one, according to Richard and David Conrad, the fourth generation of farmers at the property.

Some people laugh, or even think someone is pulling their leg, when they hear the farm has installed waterbeds, David Conrad said.

“I think everybody had the same reaction you had when you first heard about it,” he said. However, he said they come around when he explains how the beds help eliminate sores and promote better health.

“Without the cows comfortable and content, they’re not going to work for us and make us money,” David Conrad said. “The people in the dairy business are serious about what we do – we love our cows.”

With fans and sprinklers to cool the cows in the summer, Richard Conrad said his mom jokes that she “wants to come back as one of my dairy cows, because they’ve got it made.”

A cow rests on a sawdust-covered waterbed at Richard and David Conrad’s farm in Wellington, Ohio.

14

An Australian perspectiveAn Australian perspective

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Working on a dairy farm in Australia is an appealing prospect for New Zealand dairy workers, judging by responses to an

advertisement by former Kiwis now running 400 cows in South West Victoria.

Ben and Kylee Bennett have been in Australia eight years, and are offering $2000 (Australian) a fortnight to someone who can help with the milking and general farm duties.

Ben said the week after the advert ran yielded eight good candidates and choosing one was going to be difficult, as the applicants were of excellent calibre.

He said the farm’s main focus was pasture management, and Canterbury farmers were “lifting the bar” in that area.

“Everyone knows Kiwis are great pasture managers.”

He said farming in the south-west had massive potential, but there had been no invasion of Kiwi farmers yet.

He said a lot of farmers had moved more to a hybrid American TMR and traditional pasture base. “Great potential but not enough of the new generation very focused business driven dairy operations as we see in Canterbury.”

Dairy farmers in South West Victoria produce one-third of the state’s milk, and Victoria produces two-thirds of Australia’s milk.

Mid Canterbury Federated Farmers dairy

spokesman Hamish Davidson said employment opportunities in Australia were no greater, or less, than they were 10 years ago.

“The only threat comes if the money is higher.”

He said the dairy industries in New Zealand and across the Tasman were very different. Opportunities to live in a different country, managing herds in a different climate and with different challenges appealed to those after an overseas experience.

“If you are a junior worker it is about finding good opportunities, no matter where they are. But if you are a manager, you need to be careful about ending up in Australia, where there are different people with different drivers.”

Hamish said dairying had a lower profile in Australia, while Kiwi dairy farmers were increasingly known for their progressive and innovative attitudes.

Challenges across the ditch included farming with little or no irrigation; the Australian market was also more focused on producing fresh milk for domestic consumers rather than milk powder for export, as was the case in New Zealand.

However Fonterra’s growth in Australia over the next two decades could change that, he said.

The dairy industry is third behind beef and wheat as Australia’s major rural earners. Around 40,000 people are directly employed on dairy farms and manufacturing plants.

According to Dairy Australia, the country has 1.6

million dairy cows (compared to 4.5 million in New Zealand), with herds an average 230 cows (386 here). Milk production was 9101 million litres in the 2010/11 season (17,339 million litres here).

The number of dairy farms has fallen by two-thirds over the past three decades from 22,000 in 1980 to just below 7000 in mid-2011.

However the underlying trend is fewer farms, larger herds and increasing levels of milk production as farmers make changes to their general farm management practices and adopt better technology.

A bit of Aussie history

In 1788, Captain Arthur Phillip and the First Fleeters came ashore at Sydney Cover with seven cows and two bulls bred to survive a hostile environment.

This small herd soon moved to the greener pastures of Parramatta where they escaped itno the bush not to be seen for some seven years.

Upon their recapture, the herd comprised 61 cattle. It was the cows of this group which became Australia’s first dairy herd.

By 1800, through breeding and importing, there were 332 bulls and 712 cows in the colony. The settlers were adapting to their new Australian environment. They made butter and cheese during spring and summer (when cows produce most milk), and preserved these commodities with salt for autumn and winter.

15

Dairy Woman of the Year awardDairy Woman of the Year award

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ANIMAL AND PLANT NUTRITION PROBLEMS?Plant diseases, plant nutrition problems, (effecting nodulation, proteins and photosynthesis), weeds and pests. Animal health problems (sleepy sickness, milk fever, high somatic cell counts). These are indications of soil nutrient problems, such as excesses or deficiencies.It doesn’t have to be that way – we are able to provide a proposed solution.There is a direct relationship between the minerals in the soil and the health of plants and animals. Just applying some nutrients to the soil doesn’t guarantee the plant can access them.

You need to measure and supply the correct chemistry for each particular soil.

YOU NEED A PLAN AND A PROGRAMME!Let us take a comprehensive soil test – including trace minerals.We will analyse it, provide interpretation and give a recommendation.

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The Dairy Women’s Network has teamed up with Fonterra to offer New Zealand’s first, annual Dairy Woman of the Year award.

The winner will be awarded a position on the prestigious Women in Leadership 12-month course run by Global Women, which is valued at $25,000. The scholarship is sponsored by Fonterra Milk Supply.

The Women in Leadership course begins in September 2012 and will give the recipient 12 months of exposure to globally focused women in leadership roles across the business sector.

The course features world-class presenters such as Dame Jenny Shipley.

Dairy Women’s Network CEO Sarah Speight said the purpose of the award was to profile and celebrate women who are making a real difference in the dairy industry, in their dairying businesses and in their communities.

Nominations are open now and close on February 24. The winner will be announced at a gala dinner at the Dairy Women’s Network annual conference on March 21 in Rotorua.

“This award will recognise a woman who is demonstrating exceptional leadership in the dairy industry. But, it’s not just about recognising one woman out of the thousands who are doing great things.

“Rather, it is our hope that the award encourages many more to get involved and make a difference in our industry, while also making a positive impact

on-farm and in the lives of people in their rural communities.”

Fonterra is backing the awards.

“Fonterra is committed to supporting education in the dairy industry to drive the industry forward and protect our dairy future,” said the company’s milk supply general manager Steve Murphy.

“Women play a huge role in our industry and we

fully endorse the great work the Dairy Women’s Network is doing through the Women in Leadership course.

A panel consisting of the Dairy Women’s Network chair, a representative of DairyNZ, a representative of Fonterra and a representative from Global Women will review nominations during the last week of February. Finalists will be contacted in early March for interviews.

Those putting a nominee forward for the Dairy Woman of the Year award must demonstrate she has:

• Made a significant contribution to the industry through her involvement at governance or senior management level within the industry, region or community.

• Influenced in the industry and community through this significant contribution.

• Promoted the dairy industry in a positive way through her actions.

• Been a positive role model for dairy women (and all women) everywhere.

• Contributed to the community and assisted others.

• Credibility and integrity.

• Made a commitment to being a lifelong learner.

Nomination forms can be downloaded at the Dairy Women’s Network website: www.dwn.co.nz .

Sarah Speight, Dairy Women’s Network CEO

16

Mastitis - get on top of itMastitis - get on top of it

If you want:

(BMSCC)

(03) 308 2321

=

Mastitis in dairy cows can be a real burden during the summer if milking management and management of clinical and sub clinical mastitis

is not up to scratch. Trying to lower high bulk milk somatic cell counts can be very challenging and is often a source of extreme frustration for managers and milk harvesters alike.

Bulk milk somatic cell counts over 200,000 require attention. Above this level it is likely mastitis is very expensive even if you have a low clinical case rate of mastitis.

In large herds the benefits of achieving good mastitis control are significant. You can see the calculation for yourselves at the Dairy NZ web site-Smart SAMM calculators.

Herd testing is a good way to start to identify cows with high individual somatic cell counts. At least four tests are required to see the history of the cows.

Cows with a somatic cell count above 500,000 cells per ml at three or more herd tests, who have had more than two clinical mastitis events in one season, did not respond to dry cow therapy and who are older than seven years of age should be considered for culling if possible.

They should be put in to a separate herd, if possible, and milked last. The likelihood of curing sub clinical infections in these cows during lactation is low, and the chance of dry cow therapy resolving the infections is also lower than we might expect.

Keeping these cows can be very expensive. They are

highly likely to re-occur with mastitis again next season.

Younger high cell count cows may respond better to treatments both during lactation and during the dry period. Even so, those younger cows with very high (800,000 plus) somatic cell counts may not respond, and may remain sub clinically infected.

Running a high and low somatic cell count herd is a successful strategy to reduce cross infection between cows via the milking machine at milking time.

A suggested cut-off point is 400,000 cells per ml. The high cell count herd always gets milked last every day.

Teat spraying is a cornerstone of mastitis control. A cow has four teats which all need to be completely covered at every milking. Emollients will increase the teat spray contact time with the teats, and good teat spraying will help teat end damage to heal.

Adequate vacuum shut off at cup removal is critical. Many new infections occur at cups off time via milk impacting back against the teat ends. Manual cup removal should involve complete kinking of the long milk tube close to the cluster. Automatic cup removal function should be checked for adequate take off delay.

Teat end damage is common and is a major mastitis risk factor. Do you know what percentage of your herd has teat end damage?

Teat end damage is affected by vacuum, pulsation, liner design, degree of over milking and quality of teat spraying. Herds with high bulk milk somatic cell counts and high clinical mastitis case rates often have high numbers of cows with teat end damage.

Poor milk out is also a major mastitis risk factor. Poor or marginal milk out is common. Fixed time milking is okay if mastitis is well controlled on farm, but in many situations complete milk out in 90 per cent of cows is required if mastitis control is going to improve.

Milk out can be affected by high and low vacuum, incorrect pulsation ratio, liner design, ACR function, and cow stress.

Detecting clinical mastitis early is important. Daily quarter stripping with strict hand/glove hygiene is recommended. Good antibiotic treatment regimes should be discussed with your Vet.

Milking time assessments are required to identify mastitis risk factors. Once identified the key risk factors can be well controlled.

Ian Hodge, BVSc. MACVSc.Riverside Veterinary Services Ltd

c.d

A cow’s udder infected with mastistis.