Dairy Farmer November 2023 by AgriHQ

NOVEMBER 2023 | $14.55

Making a life on the land Contract milkers stick to their values through thick and thin

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➜ A career in agricultural education ➜ Special Report: Succession ➜ Containing costs in a low-payout year

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Online Training for introductory skills

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Online First, On

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each

In the Dairy Shed Terms, routines, systems, teamwork, cleaning

Stock Movement & Animal Welfare Stock handling, records and reporting, paddock WOF, water management

Pasture Management & Fencing Planning breaks, wet weather strategies, putting up fencing, measuring silage/pasture, rotation, water

Calving & Calf Rearing Two separate modules (26 videos)

Affordable and practical. Loughlan, Trainee For someone like me who’s not an academic, or a reading fella, the courses were nice, short, 2minute long videos. All the answers were in the videos. I didn’t have to sit down and read forever.

Farm Next: Get Farming Faster! On Farm Training Delivered on your farm (or a nearby farm) by experienced farming partners around New Zealand at a time that suits. Bite size skills training = 2 hour blocks. Relief Milker = typically 4 hours training Dairy Assistant = typically 20 hours training but always customised to suit the trainee and the farm.

Pricing and payment options available. All prices include GST. Agricademy training develops practical skills in agriculture quickly and effectively through an extensive library of short videos, supporting pdfs and quizzes. Online training is affordable and prepares a person well for the next step flexible on farm training.

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Clarence, Employer I’ve used it for new employees and current ones to upskill- they’ve got so much to learn on farm, having the videos to consume when and where they want is great. On farm follow up is fast and doesn’t take them away from work for too long. Clarence, Employer

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CONTENTS NEWS 17 Milk Monitor Milk prices back on the rise?

November 2023 | $14.55 AgriHQ is a farming family owned business that donates 1% of all advertising revenue in Farmers Weekly and Dairy Farmer to farmer health and wellbeing initiatives. Thank you for your prompt payment.

18 Keeping a lid on costs in a low payout year

ON FARM STORY 8

Canterbury contract milkers Josh and Becs Dondertman outline their farming journey and how their health and safety culture saw them recognised with a Primary Industries Good Employer Award

FARMING CHAMPIONS 7

Guest column – New DairyNZ chief executive Campbell Parker

20 Dairy Champion – Inglewood educationist Ross Redpath has devoted his career to advancing agricultural education in the secondary school system

FEATURES 30 Special Report: Succession – stepping back successfully 36 Primary Pathways: Training and employment

REGULAR FEATURES

31 Editor GERALD PIDDOCK

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gerald.piddock@agrihq.co.nz

28 Industry Good – DairyNZ 34 Animal Health

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TONY BENNY troutstream@farmside.co.nz

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Publisher DEAN WILLIAMSON

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8 COVER STORY People focus for Canterbury contract milkers

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Ballance Nutrient Specialist Katie Wilkinson chatted to Matamata dairy farmer Steve Atkinson about the changes he’s made on farm.

Dairy farmers are looking ahead to a tough season. What are your tips for riding out tight times? “We don’t want to be in a situation where cutting spend will cause us problems the following year. For example, if our races were poor and we were getting lame cows, and those cows then become empty or late calvers, that would have a big carry over effect to next season. With regard to fertiliser, where we have Olsen P above target levels (for us this is 40), we are using some of our fertility bank and reducing phosphate inputs this year.”

What changes have you made to the way that you use fertiliser? “We’ve been moving away from a blanket approach and using lighter rates more frequently. This has given us more consistent pasture growth, so we don’t get the boom and bust of one big hit. A more consistent and early growth curve also gives us more control over pasture quality.”

How have you seen your pastures develop over time? “One area of our farm had soil fertility levels well below target. We’ve made two key changes – establishing a good grazing rotation and fixing up the nutrients. These pastures are now thick ryegrass-clover mixes, so there’s quite a contrast in pasture quality and yield now to what they were previously.”

Steve Atkinson Katie Wilkinson

How do you manage production? “A really important Key Performance Indicator for our pasture-based system is the amount of milk solids per hectare produced between balance date and 31 December, based on home grown pasture. We also understand our soil fertility targets and have a robust testing programme.”

What keeps you optimistic about the future of dairy farming? “What excites me is that we are producing off grass, so it will always be low cost, and we can produce a real good quality product out of New Zealand. The cows are outside grazing in the sunlight and green pasture, and I think that for the next generation, this has got to be the focus.”

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GUEST COLUMN

Excited to help progress dairy’s positive future By Campbell Parker

The new chief executive of DairyNZ has already had some good talks with farmers about what is and is not working for them.

am humbled and excited by the opportunity to join DairyNZ, helping lead the business into the future and support our dairy farmers. Having been in the role for just a month, I’m currently focused on getting to understand the business and meeting the people who play a significant part in keeping DairyNZ moving and supporting farmers. I strongly believe that people are always at the core of what we do. High on my priority list is getting out on the road and meeting farmers, and other key sector contacts, to understand their thoughts and perspectives. They will have some great thoughts on what is working, and what isn’t. I have already had some good conversations with farmers, something that is helping me gain broader understanding in this space. I enjoy hearing what’s on their minds, including what is working and what isn’t. We know industry good plays a key part in the sector, and it is important farmers truly see value behind the gate. Then I want to take a step back and assess whether DairyNZ has the right strategy and priorities in place, ones that are going to deliver for farmers into the future. Regardless of the economic climate, we know the work we do needs to provide real value, and that focus will continue

DAIRY FARMER

November 2023

While the dairy sector is certainly facing challenges, new DairyNZ CEO Campbell Parker says, there is also lots to get excited about.

to be at the core of everything we do. I appreciate that, from my time living throughout New Zealand, different regions could be facing different challenges and it’s important our teams remain relevant to support farmers with what they need. I’m also stepping into the role of DairyNZ’s chief executive and looking to combine 25 years of leadership experience with real passion for the dairy sector. We are lucky to live in a country that is home to around 11,000 dairy farmers, who are the backbone of our country. When you look at the sector as a whole, dairy plays a large role in contributing to GDP, providing employment, and supporting the prosperity of local communities. This is something we should all be proud of. While there are certainly

challenges our sector is facing, I also think there is lots to get excited about.

“I want to take a step back and assess whether DairyNZ has the right strategy and priorities in place, ones that are going to deliver for farmers into the future.” I genuinely believe that dairy will still be the cornerstone of New Zealand in 20 years’ time. For now, it is important to continue to have a positive mindset, while DairyNZ will remain firmly focused on progressing a positive future for New

Zealand dairy farmers. The year ahead will be busy, as farmers plan for a season amid continued cost pressure and NIWA’s forecast potential El Niño weather pattern. There is no doubt we will also see continued challenges in the environmental space, but despite that, I see a positive long-term future for dairy. I also want to acknowledge Tim Mackle’s dedication to the dairy sector while he was chief executive of DairyNZ, and the good work Tim and the team did for farmers. It is important to build on that work and keep moving – working collaboratively to ensure the long-term sustainability of the sector. I look forward to connecting with farmers nationwide over the coming months and hearing what matters to them. I always welcome views on DairyNZ, and how we can deliver value for farmers. n

ON FARM The Dondertmans and their three young sons, from left, George, 7, Albie, 5 and Forbes, 18 months, are in their first season on a 1100-cow, 280ha Dairy Holdings farm near Dunsandel. Photos: Tony Benny

Learning curves ahead The Dondertmans have had an intensive apprenticeship on their dairying journey, and the biggest lesson they’ve learnt is to be true to their own values. 8

DAIRY FARMER

November 2023

By Tony Benny

‘It just is a people-focused thing, not a cow-focused thing,’ say Becs and Josh Dondertman.

t’s people, not cows that drive Canterbury contract milkers Josh and Becs Dondertman. That commitment was recognised when they were named joint winners of a 2023 Primary Industries Good Employer award. “We do enjoy the people side of farming and we enjoy working with the different nationalities and the way people work together, and it just is a people-focused thing, not a cow-focused thing. It’s people and that’s what makes it work,” says Becs. The Dondertmans and their three young sons are in their first season on a 1100cow, 280ha Dairy Holdings farm near Dunsandel, the latest step in a career in which they’ve experienced real highs and lows as dairy farming’s fortunes have fluctuated. Josh grew up on his parents’ dairy and pig farm in Wairarapa and when he left to go to Massey University he expected to move back home at the end of his studies. But as it turned out, his plans changed when he and Becs decided to go to Tasmania. Becs was studying for a Bachelor of Resource and

Environmental Planning and, having grown up in Feilding where her parents owned a business, she’d never thought of dairy farming as a career option before meeting Josh. But after graduation, to the shock of Becs’ parents, the young couple took the plunge into dairy farming, taking a job on a newly established equity partnership-funded farm in Tasmania. “A guy I’d been milking cows for when I was at university, he’d gone over to an equity partnership and offered me a job,” Josh recalls. “It became clear pretty

“It became clear pretty quickly that the equity partnership wasn’t going to last for various reasons. We thought we’d learnt a lot of stuff out of that – a lot of how not to do it.” Josh Dondertman

quickly that the equity partnership wasn’t going to last for various reasons. We thought we’d learnt a lot of stuff out of that – a lot of how not to do it.” Josh says the business was under-capitalised from the start and the bold projects for pasture growth and milk production never eventuated. “I remember milking in the autumn, the cows were on once-a-day and the cell count was over a million but we still had to supply milk because the bank was making them do it.” Josh and Becs loved the job, though, and it certainly didn’t put them off dairy farming. “We were straight out of uni, 21, 22, it was a cool experience,” Becs says. They returned to New Zealand ambitious to climb the dairy career ladder and took a shared manager’s job on 1500-cow farm in Manawatū, where they stayed for three seasons, picking up the skills and experience they needed. “We had great employers there and they gave us a good grounding on basic farming. We got along with them great, they were just

FARM FACTS • Farm owners: Dairy Holdings Ltd • Location: Dunsandel • Farm size: 280ha • Cows: 1100 Kiwi Cross • Production: 2022-23: 394,000kg MS • Production target: 2023-24: 397,000kg MS

really great people and a great community but we had to probably build some other skills to get to where we wanted to go,” says Becs. Next step was to Hawke’s Bay and a farm manager’s role on a 2500-cow farm

Continued page 10

One of the perks of working for Dairy Holdings is the opportunity for contractors and sharemilkers to build equity by taking ownership of the extra heifer calves born each year. Becs and Josh Dondertman now own 220 of their own cows.

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“They were just really great people and a great community but we had to probably build some other skills to get to where we wanted to go.” Becs Dondertman

owned by Bell Group, where they had full observation of the financials. “We’d come from a real family-orientated business and we knew we needed some business experience. We went to Hawke’s Bay specifically for that, super large scale and more of a business operation. We were milking for 14 hours a day on that farm so it was a real factory type operation,” Becs says. As well as learning more about dairy farming financials, the Dondertmans learnt a lot about managing people, much of it from Lee Astridge, employment consultant and owner of No8 HR. “The business was really well supported by No8 HR and Lee gave us good idea of what good looked like and where we needed to develop our skills, I think, especially for me having not come from a farming background,” says Becs. In their second season in the Bay, with winter milking, they calved down 3000 cows, all going through a 60-bale shed, and the couple were working harder than they ever had before. “There was no balance to what we did, it was just day after day, you were either mating a cow, calving a cow or milking a cow and it was just endless,” says Josh, who adds that was okay with them, as they strove to build equity.

DAIRY FARMER

November 2023

The Dondertmans are in their first season milking 1100 cows on a Dairy Holdings-owned farm near Dunsandel.

“We were all in at that stage, we were 25 or 26, we didn’t have anything we needed to do outside of work, we had no children then and we just wanted to work hard and we did. It certainly wasn’t sustainable for very long.” At the same time as gaining experience and growing their skills, the couple had a

side business selling cows to South Island farmers as dairy farming down there boomed. “We did extremely well in stock trading. It was easy to buy stock in the North Island and then on-sell to the south,” Josh says. The South Island, with its rapid expansion of dairy farming, also seemed to offer

Open and effective communication with staff are key for an effective health and safety policy, the Dondertmans say.

more opportunities for young farmers looking to progress towards farm ownership and after two years in Hawke’s Bay, that convinced the Dondertmans to change islands. “We looked down here I reckon every year for the whole five or six years we were in the North Island, coming down and looking but then we thought, ‘We’re going to bite the bullet and come down’.” They wanted to stick with large-scale farming so their goal was to invest in an equity partnership. They became a shareholder in Craigmore Investments, which back then was just beginning to move into dairy farming. Initially they also managed a 900-cow Craigmore farm but over time, as conversions were completed, that grew to 3000 cows. “We had a great time in Culverden and we loved our job and loved the people but we were losing money,” Becs says. “We were a minority

Continued page 12

Becs Dondertman saw entering the Primary Industries Good Employer Award as an opportunity to get a positive story out about dairy farming employers.

“We were a minority shareholder in a much bigger business. We bought at the peak, land prices crashed, dairy payout did the same and we lost our money.” Becs Dondertman

shareholder in a much bigger business. We bought at the peak, land prices crashed, dairy payout did the same and we lost our money.” “We enjoyed the lifestyle the job provided but probably didn’t put the hard work into how we were progressing financially,” Josh says. “We weren’t going, ‘If we take 20 cents a kg off costs, what does that do to our business?’. It was spend the money because the business needs it; we weren’t analysing what we were up to well enough.”

They stayed in Culverden for six years. “We got to the end and a few things changed within Craigmore that just sort of meant it was time for us to go, which was a hard pill to swallow,” says Becs. “In hindsight it was the best thing and we’re not shy of telling people how we went into this equity partnership and came out with not a lot.” “If the payout had stayed up for a couple of years we’d probably have our own farm and be all happy,” says Josh. They found an 800-cow contract milking job in

I T T I M E TO

Rangitata, South Canterbury but shortly after they started there, they suffered another blow in the form of a very large tax bill, a result of exiting from the equity partnership. “We’d lost all that money and we were still paying money back, basically,” Becs says. But before that bill arrived, the couple had used the little money they had left to put a deposit on a section in Wanaka and they determinedly held onto that, despite pressure from their bankers and accountant to sell the land after the tax bill arrived. It took every last dollar they had, along with some support from Becs’ parents, but eventually they were able to build a house on the section, and it now provides an excellent rental return. “That was the perfect story of great timing, we got it just before everything went up. The builders came through on price and on time,” Becs says. After a season at Rangitata, the Dondertmans realised that 800 cows – the fewest they’d ever milked – weren’t enough for them and they took a 1200-cow contract milking job with Farmright, at Coldstream, south of Hinds, Mid Canterbury. “We’ve always been on big farms. We just enjoy that slightly larger scale with a bigger team and more people to work with.”

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They stayed two years on the Farmright property but then the company signalled a move away from contract milkers in favour of managers. At about the same time a friend of Josh’s, Eugene Cronin, a supervisor for corporate farmers Dairy Holdings Ltd, persuaded him to consider a job with them. “Eugene said, ‘What is your way of farming based around?’. My answer was, ‘It’s around low costs and low inputs’, and that’s really what Dairy Holdings are.” It turned out Dairy Holdings’ way of farming was aligned to the way Josh had learnt to farm. The Dondertmans took a job on one of Dairy Holdings smaller farms and this season took over at Terrace Farm, a 1100-cow, 280ha property. “It’s got a rotary, pivots and reliable water so it’s the perfect size, great location, the kids are at Dunsandel school, it’s not far from Christchurch, we’re building our equity, it’s good,” she says. Four years after the disappointment of losing their investment in an equity partnership, the Dondertmans feel they’re back on track again. “I could never envision just leaving what we were doing in Culverden but we’re going to end up in a far better spot,” says Josh. “We would probably have stayed in Craigmore forever

“Eugene said, ‘What is your way of farming based around?’. My answer was, ‘It’s around low costs and low inputs’, and that’s really what Dairy Holdings are.” Josh Dondertman DAIRY FARMER

November 2023

Terrace Farm’s location, size and infrastructure are a perfect fit for the Dondertmans as they look to build their equity.

because we were in that real comfortable space. “We’ll go a lot further. I don’t think we’ll get to that farm

ownership goal because we have moved the goal posts, and it’s not a driver for us any more.

The Dondertmans believe that part of an effective health and safety policy is open and effective communication, talking about upcoming jobs, what could go wrong and what actions should be taken if that happens.

“Nothing is ever off the table and we are always open to opportunities but it’s not a focus.” One of the attractions of working for Dairy Holdings – which owns 60 farms – in addition to the low-cost, all-grass management model, is the opportunity for contractors and sharemilkers to build equity by taking ownership of the extra heifer calves born each year. Becs and Josh now own 220 of their own cows. The system is kept simple on DHL farms and that includes the mating policy. “We only get one type of straw, a Kiwi-cross high fertility bull, and that’s it, 1.2 straws per cow. Once the straws are gone, you’re finished,” Josh says. With DHL’s high fertility herd, the breeding system is working, he says, with a group average six-week-in-calf rate of 76% and this year they were halfway through calving by August 10. “You go real hard and real quick early, so it is quite nice.” Dairy Holdings puts a big emphasis on health and safety, which, like the farm management system, aligns

Continued page 14

The key is not ‘to do health and safety’ and try to drum rules into staff; it is making it part of the everyday, part of the team culture, Becs Dondertman says.

with the Dondertmans’ thinking. “We truly want our farm to be safe and we want our people to enjoy their job, but we want to create a farming practice that our children can get involved in so it’s the balance between getting the job done and being safe, focusing on the real critical things,” says Becs. She saw entering the Primary Industries Good Employer Award as an opportunity to get a positive story out about dairy farming employers. “I had a look at it online and said to Josh, ‘Should we enter?’ It was about, ‘There are great employers in the dairy industry and why is that not publicised?’ So part of it was about saying, ‘Hey, I don’t think we’re the best but we do some cool things and hopefully that can help with some of that culture change’.” Becs also works off farm as People and Wellbeing Lead for another dairy farming business, Southern Pastures Ltd, which gave her extra motivation to enter.

While she and Josh didn’t win the supreme prize – that went to New Plymouth business Tree Machine Services – they were joint winners of the small business Safe and Healthy Work Environment Award.

“We want to create a farming practice that our children can get involved in so it’s the balance between getting the job done and being safe, focusing on the real critical things.” Becs Dondertman The key, Bec says, is not “to do health and safety” and try to drum rules into staff; it is just making it part of the

everyday, part of the team culture. “I think it’s just setting the standard and accepting nothing less. And if we do it safely and well it’s also going to be more efficient and more productive. We try to lead by example on the farm and don’t want our team to think any differently. It’s just part of working on this farm, this is what we do.” Dairy Holdings also has what it calls “lifesaving rules”, which focus on the STKY (Stuff That Kills You) to keep the focus on how staff who do that safely can keep safe on farms. Part of effective health and safety, the Dondertmans say, is open and effective communication, talking about upcoming jobs, what could go wrong and what actions should be undertaken if that happens. “The other day we talked about weighing and drenching calves and what could go wrong. You’ve got to run them down the road to get them to the yards and there were conversations

about how we do that safely, handle the stock without getting kicked and making sure we’ve got the correct footwear on so we’re not getting stood on,” Josh says. But on the day the usually quiet road was busier than usual and a large truck shared it with the calves. “We had talked about how we could effectively make traffic stop and cross the road and he was very good and he stopped for us. We had a plan and had talked about it so everyone knew what to do.” “It’s about planning rather than reacting,” says Becs. “If we can plan those jobs and think about the things that will keep us safe, we can actually stop some incidents happening rather than an incident happening and reviewing it. Being in front of it rather than behind.” They also believe in not trying to jam too much into a day, making sure the essential jobs get done but, if need be, non-essential tasks are pushed into the next day. “We don’t have to be here from morning till night every

DAIRY FARMER

November 2023

day but if we can get the essentials done, that will mean we’re not doing as many hours at work so they come back a lot fresher, ready for the next morning,” Josh says. “We’re pretty big sticklers in making everyone take their time off and monitoring hours.” Becs adds. “I guess the wellbeing of everyone is the most important thing.” While safe behaviours, like wearing helmets on motorbikes or wearing appropriate safety gear, are now pretty much ingrained in their staff, Josh admits that even he has had to relearn some of his attitudes. “I’ve had to go, ‘I can’t really go out there in my jandals because it’s not the right thing to do’.” The Dondertmans have endured some difficult times in their farming career, losing

the equity they worked so hard to build, but they’re confident they’re now back on track, happy that the opportunities offered by Dairy Holdings will be good for their family. “We are really aligned to the way Dairy Holdings operate the business and that’s probably the biggest lesson we’ve learnt in our career — be true to your own values and if you’re going into business with someone else, make sure you’re completely aligned to the way they operate their business and their values too,” says Becs. “Their system of low input, low cost is Josh’s bread and butter, that’s what he knows from growing up and from working in his early years so it’s a system that we believe in and they believe in and they’re really focused on achieving. If they’re succeeding, so are we.” n

Dairy assistant Rob Coulter hoses down the yards after milking.

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NEWS

Cultivating mental toughness By Gerald Piddock

on’t be scared when life gets hard because life is hard, mental skills coach John Quinn says. Feeling stressed and scared is part of living, he told farmers at a roadshow on minimising costs and staying resilient in a low payout year, organised by Halter in Morrinsville. Looking after your wellbeing is important and farmers are not very good at that – they are good at being busy and running a farm, but it is key to invest in yourself by doing the basics: eating properly, getting sleep and connecting with

people, he said. Quinn called connecting with other people “a superpower”. He has 20 years’ experience working with teams and individuals in New Zealand and overseas and has a longstanding relationship with Rugby NZ, High Performance Sport NZ, the Canterbury Crusaders and NZ Cricket. The professional athletes he works with have the luxury of a large support crew around them to work with them to get these skills to the necessary level. Everybody else needs to grow and cultivate their

mental toughness by creating a team. This could be friends or family. High-performing sports people are no different to regular people when it comes to fear, he said. “We’re scared of failure, we’re scared of judgment, we’re scared of not fitting in. They’re exactly the same because their failure is public.” They relish challenges and so should farmers. They walk towards challenges despite the fear and discomfort. “They use the tools they

High-performing professional athletes relish challenges and so should farmers, says mental health coach John Quinn.

need to manage these situations. For you guys it’s the same.” n

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MILK MONITOR

Has a corner been turned? By Gerald Piddock

Each month the Milk Monitor delves into the dairy industry and gives us the lowdown on the good, the bad, the ugly and everything in between.

our lifts in a row since the big 7% drop in mid-August is increasingly looking like the milk price cycle may be on the way up. The latest lift on October 17 saw prices move 4.3% with milk powder up 4.2% to get to US$3059 and the overall average price reach US$3202. Fonterra had responded on October 9 to the upward trend by lifting its forecast by 50 cents, making the new midpoint $7.25/kg MS. CEO Miles Hurrell says the move reflected both supply and demand. Both ASB and Westpac have since followed suit with both lifting their forecasts to $7.35/kg MS and $7.25/kg MS respectively. Westpac senior agri economist Nathan Penny says in the bank’s fortnightly Agri Update that result showed that market sentiment had changed, indicating that the worst of this price cycle may be over.

“Looking at sentiment, three things have helped turned the price tide. Firstly, prices hit very low levels, and this has led to increased buying interest, notably from the Middle Eastern and European buyers – after all, everyone loves a bargain. “Secondly, the declaration of an El Niño weather pattern has increased the risk of a drought and a contraction of supply later in the season. Lastly, oil prices have lifted over recent months, and this may have given further impetus to demand from Middle Eastern buyers.” That said, Penny was still cautious, pointing out that there has been no material improvement in Chinese demand and Chinese economic data is also inconclusive at this juncture. This is a point also noted by ASB economist Nathaniel Keall, who says China was still not that active compared with its usual presence on global dairy markets.

Westpac’s Nathan Penny says the dairy market might have seen the worst of this low price cycle.

“The North Asian region has typically bought only around 25-50% of the WMP on offer since the beginning of June – roughly the same proportions of volumes it was purchasing this time last year during China’s zerocovid period,” he says in the bank’s Commodities Weekly publication. Keall says the auction lifts had made that August fall look increasingly like a nearterm floor. “All of the WMP contracts (stretching well into the season) have lifted, and the

curve has been consistently flattish to slightly upwardtilting. “That’s a sign that underlying demand is indeed firmer and it isn’t only a nearterm shortage or some other squeeze skewing the overall figure. That’s all good news for farmers in a season where that has been in fairly short supply thus far.” For now, with spring grass in full flush and a rising milk price, maybe farmers can still minimise the financial loss many were expecting to make just a few months ago. n

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NEWS

An economic reality check By Gerald Piddock

f farmers can find a way to farm to the current payout forecast, it will set them up to be more profitable when milk prices lift again – and to be more resilient if they fall, former Fonterra director Mark Townshend says. Farmers are notorious for allowing their costs to erode their revenue during good years, he told a webinar run by the Small Milk and Supply Herds group. The current economic environment is an opportunity for an economic reality check, to justify costs and maintain financial discipline. “To make your business work at $7.25/kg MS means that you are really profitable when you get back to $9.25/ kg MS.” Especially if the farmer is able to hold those costs when the payout lifts, he said.

“The farmers with the issues really are non-Fonterra suppliers, sharemilkers and any that are heavily in debt.” Phil Journeaux Milk price volatility is a reality of dairy farming and the positive side of that uncertainty for farming businesses was that it keeps farmers sharp. That sharpness will be needed this season as farmers face a season when the milk forecast and farm working expenses mean most farmers will make a loss this season, he said.

Agricultural economist Phil Journeaux says farmers need to do a budget so there is a sound understanding of their financial situation as they face a low payout year.

The biggest savings farmers can make is identifying their fixed and their variable costs. Some of those fixed costs may be fixed only in the farmers’ mind and not in reality. This could be as simple as using slightly less of a product or a slightly less glamorous version of it. Any staff also need to have this mindset shared and explained to them to get buy-in so they understand the economic realities of the season, he said. “You treat it in a way by saying, ‘I’m taking you into our confidence as part of your own learning’ and if you want to be more than just a farm worker or contract milker and be on a progression path, you need to understand this because 2023 will come again in 2028 or whenever.” He also warned farmers against unnecessary supplementary feeding. Too often it is about making farmers feel better about themselves at the expense of their bank account. The rule of not spending more than 5% of the milk price per kilogram of dry matter is a good rule to follow.

The correlation between production levels and profitability is still weak while the correlation between grass utilisation and profitability is still very strong. While the recent lift in milk prices is great news, he is not relaxing because of the uncertainty around the El Niño weather pattern this summer. Agricultural economist Phil Journeaux advised farmers to do a budget so there is a sound understanding of the current financial situation. That budget may not look pretty, but farmers will be able to identify their pressure points. The survey farming model will defer debt repayment this season because it is unaffordable. “Talk to your bank, they’re going to be crucial. All things being equal, your overdraft’s going to go up and you’ll need to borrow money to get through.” The average farm needs a payout of around $8.40/kg MS to break even when including farm working expenses and depreciation. Based on the current

Fonterra midpoint forecast and including deferred payments from last season and advanced payments for this season, farmers are sitting on a deficit relative to the breakeven point of $0.73/kg MS. Fonterra farmers will also have a $1.05/kg MS buffer coming from the one-off payments from the sale of the co-operative’s Chilean business. This pushes them over to the right side of the breakeven payout. “The farmers with the issues really are non-Fonterra suppliers, sharemilkers and any that are heavily in debt.” The low commodity price and the high costs of farm inflation are two of the biggest issues affecting the sector. On-farm costs have lifted by 20% in the past few years while the average Waikato farm will spend $113,000 more on interest rates than it did two years ago, he said. “There’s a lot of better places we could be spending $113,000 and to be realistic, I think those interest rates are going to sit up there for another 12 months.” n

DAIRY FARMER

November 2023

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DAIRY CHAMPION

Schools are not the sole entry point into the industry, says Ross Redpath, but they will remain a significant entry point.

Agriculture’s teaching moment By Ross Nolly

Ross Redpath has devoted his career to advancing agricultural education in the secondary school system.

nglewood educationist Ross Redpath has a driving passion to foster and facilitate the teaching of agriculture in his local Taranaki secondary schools and nationwide. He recognises the importance of the subject to students, and the need to support teachers and encourage industry support and involvement. Redpath taught at Inglewood High School for over 34 years and spent nearly a decade of that time as assistant principal and the teacher in charge of AgHort Science. He has devoted himself

to encouraging the development of agricultural and horticultural teaching in secondary schools. Redpath and his wife Vicki live on a 56.6ha farm running 50 mostly Texel cross and some Kelso ewes, their lambs, and 120 cattle. Vicki is a Large Animal vet at New Plymouth District Vet Group. The farm has allowed Redpath to live his farming passion, share that passion with his students, and show them some of the practical aspects and opportunities in the agricultural industry. Redpath now works for Taranaki’s LA Alexander

Agricultural College Trust, which was established in 1987 and acts as an agricultural trust with a focus around agricultural education. Leonard Allen Alexander was a visionary and had a healthy regard for education and community good. In his will he left his Tikorangi estate and the Winthorpe Stud, a racehorse stud of significance, to the New Plymouth High School Board to create a “training establishment for agricultural and pastoral students and generally for all purposes of an agricultural college”. The farm is presently leased to Faull Farms Limited and is

used as part of its large dairy farm. Redpath is employed as an agriculture education and project adviser. Part of his role is to visit schools that lack the capability to deliver the NCEA Level 3 Agricultural and Horticultural Science course and teach that course to their students. “Another part of my role is supporting teachers that are new to the subject or new to teaching. I also work with agencies like Venture Taranaki to determine where they and education can intersect,” Redpath says. For some time the trust has been operating in

DAIRY FARMER

November 2023

the secondary education space, helping schools obtain facilities to support agricultural and horticultural teaching and offering tertiary students scholarships to support their studies. Redpath has devoted his career to the advancement of agricultural education in the secondary school system. In recent years it’s become evident to him and the trust that the current educational landscape doesn’t always meet all of the industry’s needs. “Many of the nation’s current agriculture teachers are nearing retirement age, and there are no clear pathways leading newcomers into the profession. Without a teacher in the school you don’t have the subject in the school,” Redpath says. “The entire presence of that subject, and the pathways that lead from it, are then

potentially lost. Or at the very least they lose some relevance in terms of the key messaging and knowledge.” The growing detachment between rural and urban lifestyles has been touted as a problem for quite some time. It’s real and relevant, but Redpath feels that it’s only part of the problem. He recalls attending a Primary Industries conference in 2007 as one of the representatives of the agricultural and horticultural secondary education sector.

Many of the industry attendees initially wondered why the education representatives were there; after some consideration they then asked why they hadn’t attended previously. “It drills back to where our subject sits within the mindset of the industry. You don’t have mathematics or English industries,” Redpath says. “But you do have an agricultural industry, and a school subject directly aligned to that industry. Often, that alignment has never been

“Many of the nation’s current agriculture teachers are nearing retirement age, and there are no clear pathways leading newcomers into the profession. Without a teacher in the school you don’t have the subject in the school.” Ross Redpath

realised for its strategic position and untapped potential.” This brings up the question of who should have the oversight of agricultural education in secondary schools. Should it sit under the Ministry of Education, in which it is one small subject, or should it sit with the Ministry for Primary Industries? “The ministries may have the most skin in the game. It’s an interesting quandary, considering who actually gains the most from strong and robust agricultural education,” Redpath says. Redpath has had the advantage of looking at agricultural education in California, the United States in general, and Europe, where the systems are quite different. In the US, the industry sees

Continued page 22

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the strategic advantage of agricultural education and takes the lead in ensuring its support. It’s seen as very important at the state government level, where legislators understand that they won’t have a strong industry without a strong educational presence. “From that basis, they make a priority of everything from teacher training and support to the programmes offered in school. And importantly, the multiple pathways from the school stage, and the following steps are appropriately promoted, encouraged and supported,” Redpath says.

much part of the agricultural industry,” Redpath says. The agricultural industry has put in significant resources around teaching materials and promotion. In recent years, Redpath feels, DairyNZ and other industry bodies have provided some very good input promoting the dairy industry’s positive aspects. “Agricultural education begins with the teacher. If you haven’t got the teacher, the school isn’t going to offer the subject,” Redpath says. A key factor is to ensure that the industry story and its relevance are made accessible and available to as many

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Redpath feels that there has always been a place in the industry for students who struggle with pure academic learning. He has often found that the skills that a particular student is perceived as not being strong in can flourish and grow when they’re applied in a practical agricultural role. It may simply be a case of calculating the amount of drench required to drench calves. Maths then becomes real for them. The entry to agriculture has a dual pathway. A student can begin working directly on the land, or can go in at an academic level and work in that area of the industry. “I’ve run many teacher training days where I’ve asked the teachers how often their school dux studied ag or hort. The typical reply is that they don’t. To which I reply ‘Why not?’ I view secondary school agricultural education as very

people as possible. A great deal of that comes back to supporting teachers in their schools and ensuring good links between them and other training providers. If Redpath walks into a chemistry class, there’s a high degree of probability that the teacher will have some form of chemistry background, and an English teacher will usually have a BA degree. But the chance of him finding an agriculture or horticulture teacher with an agricultural or horticultural qualification is very low. “I’m an anomaly. I grew up on an east coast sheep, beef and deer station and went to Massey University where I completed an Agricultural Science degree. “I worked at home for a year but have always loved knowledge, sharing knowledge and unpacking knowledge. So I decided to go to Teachers College

DAIRY FARMER

November 2023

and began teaching with an Agricultural Science degree,” Redpath says. “There are very few agriculture teachers with a similar degree because they get sucked up by the industry. If you don’t have an industry ‘native’ in the classroom unpacking their learning about the industry, such as milk production, profitability, sustainability, grass growth and soils, it suddenly becomes a bit tricky. “Therefore, those teachers need good support to grow into the role.” Redpath’s role, besides teaching, has been to pick up those teachers and provide them with support and knowledge growth of their subject. Taranaki is fortunate to have a number of teachers with genuine agricultural experience. Some schools form strong liaisons with particular farms and visit them on a regular basis. Redpath feels that this is a win-win situation for all of the parties involved. Those farmers have the knowledge and passion to share, and it’s hard to beat real-life, relevant learning examples. Schools are usually good at reaching out and linking up with the right sort of farmer. Those farmers must be genuinely passionate about the industry and have a passion to pass on their knowledge and experiences to others.

Ross Redpath’s farm has allowed him to to live his farming passion, share that passion with his students, and show them the opportunities in the agricultural industry.

“In agriculture there’s usually something to appeal to most students regardless of their abilities. The message those young people receive can’t be sugar-coated, but it has to be balanced, real and relevant,” Redpath says. “In these days of social media and influencers, people pick up any negative message about the industry much faster than the positive ones. It usually requires multiple positive contacts to turn someone on to the industry. Yet just one bad experience or piece of inaccurate or biased negative information can turn someone off the industry.”

For some struggling students, it only takes a teacher to believe and encourage them to set them on a successful path for life. Redpath fondly remembers taking a Level 1 NCEA course with a typical mix of students of varying abilities. One of those students had battled through school. For him, school was tough. He persevered and struggled, and Redpath steadfastly encouraged him. He attained 56% in Agricultural and Horticultural Science, which was the only subject he passed. He left school at the end of Year 11.

A few years later Redpath was at his local cross country day when a big voice call out “Ross!” “I turned around and a big guy thrust out his big hand and said, ‘I just want to thank you. You were the only bugger at school who believed that I could do anything.’ It was that student. “On leaving school he’d got a farming job, had moved around a few other farms, and was now managing a farm,” Redpath says. “That experience exemplifies that there’s

Continued page 24

Ross Redpath and his wife Vicki live on a 56.6ha farm running 50 mostly Texel cross and some Kelso ewes, their lambs, and 120 cattle.

room for everyone within the dairy industry and agriculture in general. The tricky bit is to ensure that everyone gets accurate and

correct information so they can achieve along their own pathway.” Redpath once spoke to a group of industry leaders

and asked them what the outcome for the industry would be if the subject was taken out of secondary school. To them it was very

obvious that it would be a very negative event. “So there’s obviously some benefit in ensuring that it never happens. The industry needs a supply of people who are engaged and have the ability to learn skills for a host of roles whether they want to be a Large Animal vet or an entry level farm assistant,” Redpath says. He always emphasises that there is a broad spectrum of roles in the agricultural industry, and if you take one component out, the entire pack of cards falls over. “If agricultural education is done right, it supports the industry and its future,” Redpath says. “If you have an impact on the industry, then you need to be part of the conversation. Schools are not the sole entry point into the industry, but they will remain a significant entry point.” n

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INDUSTRY GOOD

On an emissions mission A team of scientists at DairyNZ are working to research options that could help further reduce methane emissions

Jane Kay DairyNZ principal scientist

here is a lot of pride that comes from working in a sector that has the most emissionsefficient dairy farmers in the

world. To help maintain that position, I am working with a team of three other scientists at DairyNZ, and many others across multiple partner organisations, to research options that could help further reduce methane emissions. This work will help future-proof and progress a positive future for dairy. New Zealand’s pasture-based dairy farms make us highly competitive, but this also adds complexity when it comes to incorporating some of the solutions that are used in overseas systems. DairyNZ is researching whether solutions designed for indoor and feedlot farming systems overseas can be successfully tailored and incorporated into our farming systems.

“DairyNZ is researching whether solutions designed for indoor and feedlot farming systems overseas can be successfully tailored and incorporated into our farming systems.” One potential solution we’re looking at is feeding methane-reducing compounds to cows and calves. DairyNZ is working with research partners to assess whether feeding probiotics to calves could reduce

DAIRY FARMER

November 2023

While New Zealand’s pasture-based dairy farms make us highly competitive, it also adds complexity to incorporate solutions are used in overseas systems to reduce methane emissions. emissions. Adult cows have a stable rumen environment, so calves are seen as a more promising research alternative, given their rumen is still developing. We also know many methanereducing products have short-lived responses. Some companies are exploring slow-release formulations and boluses, which we are evaluating. If these developments can be effective for longer periods of time, this could provide a more consistent reduction in methane emissions on pasture-based farms. New ways of delivering these compounds are also being trialled. This includes in-paddock automated feeders to control the frequency, timing and amount of methane-reducing product consumed by cows, providing a potential opportunity for pasture-based farms to administer the product more often throughout the day while their cows are grazing. DairyNZ is also collaborating with research partners to study a methanereducing vaccine.   Farmers are providing advice on how to design solutions that work well on farms. Solutions are tested against a range of criteria, including

with DairyNZ effectiveness, impact on animal health, profit and production, farm system fitness and effects on milk. DairyNZ is committed to helping farmers reduce methane emissions while maintaining on-farm profit. Finding effective solutions for our pasture-based farms and providing dairy farmers a suite of mitigation strategies continues to be a research priority, and a work in progress. I look forward to continuing work in this space and working with farmers on this journey. Our methane mitigation research at DairyNZ is funded by dairy farmers through DairyNZ’s levy, the government (the Ministry for Primary Industries, NZ Agricultural Greenhouse Gas Research Centre, AgriZeroNZ) and commercial companies. n

Find out more about current research by visiting www.dairynz.co.nz/lessmethane

ROAD TO DAIRYING

Catalyst to conversion By Samantha Tennent

There can be a lot of moving parts in running a dairy farm and making it work for your life stage, one Taranaki family found.

Mike Kavanagh came back to his home farm near Pākaraka in Taranaki to run it with parents Danny and Eileen in support.

he depths of Waitotara Valley in South Taranaki were a bit far from civilization when Mike Kavanagh and his sisters were starting school. So their parents, Danny and Eileen, sold the steep hill country sheep farm and moved to a smaller block closer to Pākaraka. They eventually left sheep farming behind and switched to a rolling dairy grazing block up the road. In time it was converted to a dairy farm. After school, Mike made the trek down the road to Palmerston North to study for a diploma in agriculture at Massey University. He always knew he wanted to be a farmer, but was not sure what type. It was the structure of dairy farming that appealed in the end. “During school I worked for neighbours, milking, doing stock work and in tractors. I loved it all,” Mike says. “And after uni, I spent a season on a dairy farm near

Palmy. That was what sealed the deal.” After having enough of Manawatū he headed back home and fell into a role helping out a neighbour when their son was crook. After 18 months he ventured overseas for a working OE, spending three months in Ireland and contract-milking in Wales for 12 months. “It was an incredible experience, but a real eyeopener to how innovative the New Zealand dairy sector is.” When he landed back in New Zealand he was back into dairy farming in Taranaki, managing and contract-

“It was an incredible experience, but a real eyeopener to how innovative the New Zealand dairy sector is.” Mike Kavanagh

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milking on various farms. He and his partner at the time won the New Zealand Dairy Industry Awards Farm Manager title for the Taranaki region in 2013. A wee while after that, when they had gone their separate ways, Mike was thinking about heading back to Ireland when his parents mentioned they had been considering selling to buy a dairy farm. “They had been looking at how they could stay involved but also be less hands-on themselves and saw dairy had more opportunities for succession and the future. “So I pointed out they should consider converting the farm instead, but the deal was I had to stay to help out.” Mike moved to manage a farm close by while the conversion was taking place and then came home to run the farm, with Danny and Eileen as support. There was a lot of learning in that first season. It was a shock to the system for Danny and Eileen to navigate the spring outlay with a delay in income. They still had a sheep and beef mindset. But having Mike to guide them helped a lot and they eventually got into the groove. And the idea was they would eventually step back after the transition, although rising costs delayed that plan. “With costs and labour constantly going up it didn’t

Eileen Kavanagh still helps out on the farm over the busy spring period.

“We had a lot of meetings to plan succession, there was a lot of good support around that gave us ideas of what could work for us.” Mike Kavanagh work out how they envisioned. They’ve been very involved till recently,” Mike says. They are milking 240 cows and last year were looking at their options for the future, another crossroads decision. “It’s an awkward-size farm

and workload, too much for one person but not enough to justify hiring someone. “So it was either increase intensity and move to a higher system, or the opposite, wind it back. “And we figured it was easier and less pressure to wind back, so we sold the herd and bought a herd that had been on once-a-day for 12 years. “It also means the business is more resilient to the payout fluctuations. We aren’t locked in with infrastructure trying to keep things going.” Kicking into their first season, OAD was also a good opportunity to change the business structure and set up their succession plan. Moving from a partnership

that leased the farm from a trust, they created a company in which Mike, Danny and Eileen are shareholders. The plan is for Mike to eventually take over more of the company. “We had a lot of meetings to plan succession, there was a lot of good support around that gave us ideas of what could work for us.” While Danny and Eileen still helped through spring, now they have more flexibility and can spend more time with their grandkids in Wellington. And despite being on the fence about going dairying in the first place, Mike is pleased he took the plunge and will continue to chip away at lowering the cost structure to build the lifestyle. n

FARMSTRONG

The comfort of cows Farmstrong caught up with Laura Murdoch, the “cow whispering” Southland/Otago Dairy Manager of the Year for 2022. She shares how she manages the challenges of a job she loves.

ell us about your farming operation I’m milking 250 cows on an 80ha farm about 15 minutes out of Invercargill. I’ve been farming full time for six seasons. I initially trained and worked as an accountant, but ever since I was young I always wanted to go farming. I visited my first milking shed when I was 17 and I absolutely loved it. So, the lure of farming was always there. What do you like about the job? I love the variety. When I was just doing accounting, every month was pretty much the same, but in farming you get that change of seasons from calving to mating to milking, which is great. There’s a routine to farming but there’s also a lot of change. I also love animals, especially cows. I guess you could I say I have a natural bond with them. I can tell you all their names and love spending time with them. You’re “LouLou the Cow Whisperer”, aren’t you? Your cow-whispering videos have racked up tens of thousands of views on social media. [Laughs] That’s right, yeah. I’ve created my own wee world, I guess. I enjoy

there’s dinner covered for the next few days. I’ll also pop cooked meals in the freezer so I can quickly grab something to eat when I’m busy.

Southland/Otago Dairy Manager of the Year for 2022 Laura Murdoch says she has learnt to be very proactive about looking after herself.

chatting away to the cows. When I’m doing cupping the cows at milking in the shed, some of them will stop and wait for me to say hi. That’s how I’ve managed to make so many of them my mates. Even though these animals don’t have a voice, we seem to have a shared sense of understanding. What are your main challenges and pressures on farm? Well, I’m a one-man band on farm, and set up the schedule and do all the milking myself. I work for

Keeping in shape mentally and physically helps you put the best into the farm, so the farm can give the best back to you. Sam Whitelock Farmstrong Ambassador

a farm owner and we work together as a pair to run the show. But during the week I’m pretty much my own boss. I work an “11 on and three off” roster, so life is busy. How do you make sure you keep well and stay on top of the game? Sleep’s really important. I put my phone on “do not disturb” mode at 7.45 at night so I can get a proper rest. “Fuelling” yourself properly is vital too. I try to make sure I eat well. I’ll get the crock pot going at midday so when I come home tea’s ready and

These things sound simple, but it’s easy to neglect the basics when you’re busy, isn’t it? Yes, but you’d never drive a car or a tractor without enough fuel in case it conked out. It’s the same for our bodies. You’ve got to think of the big picture – exercise, food, sleep – to keep going. Lack of sleep is an obvious one. That has a huge bearing on your system and mood. What about the early starts and breakfast? In the morning the last thing I feel like is eating a big breakfast, so to get going I just make a protein shake. Something that has enough substance to fuel me up. Do you get lonely working by yourself all day? I think I’m different to other people, I actually enjoy the solitude. I get on really well with my family too. My brother also farms, so I’ve got a good support network. What about exercise? How do stay farm-fit? I used to be into multisport

To find out what works for you and ‘lock it in’, visit farmstrong.co.nz

DAIRY FARMER

November 2023

Laura Murdoch says her ‘LouLou the Cow Whisperer’ nickname came from her habit of chatting away to her cows.

and do duathlons, but Saturday events don’t suit my work schedule anymore. So, when I’m on farm I’ll often walk instead of jumping on the quad. What about those days when nothing seems to go right? How do you handle the mental side of things? If something’s not going right, sometimes the best thing is to just stop and take a few deep breaths and refocus on what you need to do next. If you’re drafting a cow and it’s not working, instead of getting frustrated, stop and figure out a different way to approach things. What sort of mindset is helpful in farming? You need to be pretty flexible. It’s easy in farming to create your own barriers and obstacles in your head. You’ve got to be able to call yourself out on that stuff. Shit happens from time to time and you’ve got to be able to stop and reset. Take five minutes out. Hop off the tractor and go for a walk. Re-programme your head and change your thinking. If I’m having a tough day, I just need to see my cows in a paddock and look at their faces. Five minutes doing that will change my whole day.

DAIRY FARMER

November 2023

How do you manage the workload on your own? For me, it’s about prioritising. Nothing is ever that big a task that it can’t be broken down into much smaller, manageable bites that you can slowly work through and tick off. What’s your main message about keeping well on farm? You need to be honest about how you’re feeling and share that with others. Find people you trust – whether it’s a friend, family member or the people you’re working with. If something’s not right in the mix, do something about it. That’s going to be better for you and the farm. If I feel overwhelmed or tired, I know I can share that with the owner and change things up. I’ve learnt to be very proactive about looking after myself, because there’s only one “me” and I really love this job. I’ve found something in life that makes me happy to get out bed each morning. It wouldn’t be everyone’s cup of tea, but to me it’s the whole pot. n

Farmstrong is a nationwide, rural wellbeing programme for farmers and growers. To find out what works for you and lock it in, visit www.farmstrong.co.nz

Leading by example in the prevention of mastitis. At FIL, we’re committed to helping dairy farmers reduce the risk of mastitis. As part of our relentless mission, we’ll help you make informed decisions that not only promote healthy udders - but also unlock your farm’s profit potential. If that sounds like the type of partnership you’re after, contact your local FIL Area Manager. Call us on 0508 434 569, or visit fil.co.nz

SPECIAL REPORT: SUCCESSION

Avoiding the subject By Gerald Piddock

Poor communication is one of the biggest challenges in the succession process.

oor communication, an incorrectly structured farm business and a reluctance to talk about it are the most common challenges facing farmers trying to navigate the succession process, a Kellogg Rural Leader says. Overcoming these challenges includes starting conversations around succession early and making sure the farm business is properly set up to enable succession, Ross Neal says. Neal wrote a paper titled “Achieving successful family farm succession in the New Zealand dairy industry” as part of the Kellogg Rural Leadership programme last year, interviewing farmers who were perceived to have done succession well and some independent succession facilitators to gain their insights as well. One of the main challenges he found is a general reluctance to start the succession process. “A lot of farmers are unsure how to go about it, they weren’t that clear on the desired outcome and let’s be honest, succession can be quite confronting. ‘Succession’ is a word that has a sense of finality about it.” The older generation may also be reluctant to start because they might not want to put pressure on the children. They might want to let them leave and have a life outside of the farm and let them make up their own minds, he said. Neal’s study also found

a lack of clarity especially around what the parents and the children wanted. “Start discussions with family around succession early. It is never too early to start these discussions and it is important to involve children from a young age in conversations about the farm business in general.” Some of the farmers he interviewed included their children in the meetings when their rural professionals, such as the bank manager, came. “So from a very young age those children understood that the family business was quite transparent.” The most important people to be considered in the succession plan are the parents. They need to understand what they want and prioritise this over trying to please the rest of the family as well as ensuring they are comfortably set up as they step back from the farming business, he says. The older generation should think about how their business is structured and whether it is set up in a way that enables succession. They, along with the younger generation, should look at ways of building up equity outside the farm business. “They might not be coming into the business straight away. So, we should be encouraging our younger generation build up as much equity as possible.” If they are working on the farm, it is very important they are paid a market-related salary, not minimum wage, to allow them the opportunity to

Rabobank agribusiness manager Ross Neal found a general reluctance to start talking about succession when he researched the subject.

“A lot of farmers are unsure how to go about it, they aren’t that clear on the desired outcome and let’s be honest, succession can be quite confronting.” Ross Neal build up that equity. One of the main takeaways from his research was that if there is any uncertainty about succession or how to go about it, get someone in to help that knows what they’re talking about – an experienced succession facilitator. “These experts can not only help with creating the succession plan, they are

experts at facilitation and communication between family members, which is also important.” Neal is an agribusiness manager for Rabobank based in Whangārei. From the banking industry’s perspective, a lack of a succession plan is seen as a significant risk to a farm business. “If you have got lending against a business and something happens to the key people that operate the business, it is important to have a plan in place to carry on that business to ensure the lending can continue to be serviced appropriately. “You need to have a viable business for succession to be able to happen. This is a prerequisite.” It is therefore important for farmers to understand their numbers and the different factors that can influence these numbers. n

DAIRY FARMER

November 2023

SPECIAL REPORT: SUCCESSION

Sharefarming and succession By Gerald Piddock

wo friends have established a consultancy company to facilitate better relationships between sharemilkers and contract milkers and their farmeremployers. Louise Gibson and Myfanwy Alexander have set up The Sharefarming Consultants, in the hope of changing how these farmers approach their businesses and how they interact with each other for the better. Waikato-based Gibson has just finished up as a policy adviser for Federated Farmers in the sharefarming/contract milking area, and Alexander is herself a contract milker, has been a sharemilker and is also the North Otago provincial president of Federated Farmers. Gibson sees a role in the new business in succession planning – helping to set up timelines and determine the roles family members want in

the process, especially if the children have not spent time on the farm. One of the focuses of the new businesses will be on farm policy to avoid misunderstandings between the farm owner and the sharefarmer, which also includes succession planning. This often comes down to not quite choosing the right sharefarming model, Gibson says. While sharefarming with children can be a great tool to enable succession, it can also go wrong. “I’ve seen many families go into it, and it’s just a disaster because they don’t have that independent focus to look at the business stuff and maintain those personal relationships.” The farm may also have ongoing issues caused by the actions of the previous employer, which gets the relationship with the owner off to a bad start, she says.

A new generation of dairy consulting.

Visit www.thesharefarmingconsultants.com to find out more

Louise Gibson created The Sharefarming Consultants with Myfanwy Alexander.

Many of the sharefarmers and contract milkers are also new to the role. The staff shortages in the dairy industry caused by the covid-19 border closures have seen many rapidly shift up from 2IC or manager roles to be parachuted into lower order sharemilking or contract-milking roles. Such a jump meant many were ill-prepared and lacked the business skills needed to succeed in these roles. Some farm owners had also

not done the necessary due diligence needed to attract high-calibre candidates and these vacancies tended to attract these inexperienced sharemilkers and contract milkers. “It created the perfect storm,” Gibson says. “It has to be a conversation, not a directive. If you are going to make a major farm business decision that impacts your contract milker, you really need to bring them along for that ride.” n

SPECIAL REPORT: SUCCESSION

Broken trusts By Richard Rennie

They may be the model for more than half of New Zealand’s farmland, but trusts are not the right vehicle for the succession journey, an expert says.

arm accountants and lawyers are being urged to drop the blind acceptance that trusts are the best vehicle for farm succession planning, and nudge clients to consider company structures as a more viable and sustainable option. Ian Blackman, a longtime rural lawyer and author of the “How to” book on farm succession, Keeping Farming in the Family, says if nothing else, recent changes to trust taxation rates should prompt a rapid re-think of their use by farming families. The changes to trust tax rates were initiated in this year’s Budget and have resulted in an increase in the trustee tax rate from 33% to 39% from the 2024-25 financial year. This move was to bring trusts in line with the higher individual tax rate, and to reduce their use first and foremost as a means of avoiding paying that higher rate. Blackman’s book has become something of a bible for farming families wanting to ensure they can keep the farm in the family and keep family still talking to one another in years to come. He says little has changed in the eight years since he wrote the book, which is now in its second edition. The principals of good communication between all family members, and a clear understanding of what the parents as owners wish for their farm and their wealth are key ingredients now, as then, he says.

Author and rural lawyer Ian Blackman says company structures are a more viable and sustainable option for taking care of farm succession.

This has to also include an acceptance by non-farming siblings that a lump-sum payment to them upon their parents’ death may not be an option if the goals are to be achieved. “But what I have seen and still see is how lawyers cannot explain to me how they can realistically manage succession by using a family trust as a vehicle. It is fatal to any succession plan,” Blackman says. “Boiler plate” trust vehicles are anecdotally estimated to be used in more than half of New Zealand farmland ownership arrangements. “They only provide that on the death of the surviving parent the final beneficiaries are entitled to a share on winding up of the trust asset, usually the farm.”

But such a model provides no means for any siblings who may wish to continue farming to have bought into that enterprise, even if they are also employed within it. “It could be you are the guy who has been putting cups on in the pit for the past 20 years; you are unlikely to be in a position to buy the rest of the family out.” Instead, he advocates starting early with a family company farm model ahead of a trust, putting the operation’s current and potential future operations at the centre, not its dispersion upon death, a more negative, difficult obstacle to surmount. “With a good company trading model there, you also have a means to bring in good governance around it, and

benefit from a company tax rate of 28%.” With family members able to purchase shares in the farming company, it can ease the passage to final purchase on the parents’ death if shares have been progressively bought up over time. Such a model can also accommodate non-farming siblings who may wish to buy into the farm operation as shareholders. They could also leverage off the farm’s equity for their own business, creating a family corporate model that can extend beyond farming for its income. “If you have the right structure the farm can be there to help everyone, including non-succeeding children. “There is a need there for non-farming, nonsucceeding family members to understand from an early stage that it’s not about the cash in the land, and to think about the opportunity and equity and ability that land provides.” Now retired, Blackman is urging fellow lawyers and accountants to push government ministers to make it easier for trusts to be converted to company structures. “At present it is not done easily, and you face depreciation clawback, and few accountants will recommend it.” But he maintains that balancing the costs of doing so against the benefits of the company structure to the farm business’s future make it worthwhile. n

DAIRY FARMER

November 2023

SPECIAL REPORT: SUCCESSION

Having ‘The Talk’ By Gerald Piddock

When it comes time for conversations about succession, it may help to include someone with no stake in the outcome.

hen it comes to discussing succession plans, the most important people in the room are the farm owners. This is because they are often the ones who have created the wealth in this business asset, Rural Coach’s Brett Robinson says. The responsibility on their shoulders can be even more important if it is a second-, third- or fourth-generation farm. “A lot of it is the mahi that you’ve put into the farm. You’ve been there in your career as a farmer for 2050 years,” he told a roomful of farmers at a workshop on succession planning organised by the Small Milk and Supply Herds group. During any initial conversations, one of the key goals is discovery, meaning finding out what is important for the farm owners as well as the children, he said. As a facilitator in this process, Robinson says

someone with no baggage can offer a safe environment for discussions and ask hard questions. Rural Coach’s succession philosophy is based on four principles: sound relationships, a willingness to participate, profitability and equity. Those relationship are not just restricted to parents and children, but could also involve people outside the family, Robinson says. Assumptions and expectations, particularly around what the parents think their children want to do, have to be explored to see if they are correct. The son or daughter may have completely different priorities around careers or travel and the fact that the parents may be unaware of this comes back to relationships, he says. Unaddressed assumptions turn into expectations, and expectations – if they are not met at the first time they are discussed, which in a worst case scenario could be a

Any succession plan has to be transparent, identify areas of responsibility and have a date or timeline on it to keep things moving.

will reading – could lead to conflict, he says. When the first proper family meeting takes place, it needs to have formalities around a written agenda to keep everything on track. Everyone – including children’s spouses – must be included and rules of engagement must be established. From there, start forming

a plan and a pathway for the plan. The plan has to be transparent, identify areas of responsibility and have a date or timeline on it to keep things moving. And “a plan is only as good as its execution. If you don’t write it down, it’s only a dream and if you don’t execute it, it’s not a plan, it’s just a conversation.” n

ANIMAL HEALTH

Simple things like teat spraying throughout the season can make a huge difference in lowering mastitis risk.

Less drugs, more time Reducing the use of antimicrobials can mean a lowering the risk of milk contamination and having to deal with fewer cows.

Samantha Tennent

onsider the amount of time you’d save if there were fewer cows to handle and a decreased risk of milk contamination. According to FMG, more than 60% of their contamination claims are attributable to antibiotics – an alarming statistic. So, what is the solution? It lies in the reduction of antimicrobial (antibiotic) usage as part of the effort to combat antimicrobial resistance (AMR). World Antimicrobial Awareness Week, held from November 18-24, is an initiative driven by the World Health Organisation. Its primary objective is to encourage action against AMR in order to prevent the escalation and widespread transmission of drug-resistant infections. And it makes this a good time to look at how antimicrobials are used on your farm. The 2022/2023 season data in WelFarm shows us an

average 17% of cows within herds were treated for clinical mastitis, while a further 13% were treated for other diseases (that does include calves). Those figures are based on drug sales from vet clinics and suggest farmers are spending a lot of time dealing with sick cows, losing production and spending substantially on drugs. Reducing use doesn’t mean not treating infections or culling heaps of cows; it’s about using them wisely as well as reducing the need to use them in the first place. When it comes to mastitis, those simple things can make a huge difference, like classic teat spraying throughout the season and ensuring thorough coverage over all teats. To ensure proper coverage, you can take a paper towel or tissue, held flat on both hands, and touch it to each teat to check for teat spray residue. It’s pretty easy to miss a teat but something you want to avoid. Reducing teat damage is another key aspect in mastitis prevention. Overmilking can cause cracks in the teat skin, providing a hiding place for bacteria. A method like MaxT can help mitigate the risk

of overmilking and improve milking efficiency. Having good hygiene for the administration process around dry-off is vital and vet clinics are more than happy to go over it with teams regularly. They want everyone to get it right as much as you do. Better still, get your vet clinic to assist with drying off. Use herd testing to monitor somatic cell counts and determine which cows should receive dry cow antibiotic therapy. And make wise culling decisions. Having healthy udders means more milk in the vat, better animal health and seeing fewer cows in pain from mastitis. There are also positive impacts on reproductive performance and ultimately less hassle when you don’t have to deal with treated cows. Good hygiene and biosecurity practices can also make a difference, preventing the introduction and spread of infectious diseases. And having a focus on herd health management not only saves the need to use antibiotics, it also saves time and money when you’re not losing productivity and dealing with sick animals. Regularly monitoring

cow health and promptly diagnosing diseases can help start treatments early and avoid the need for antibiotics when possible. And when mastitis is detected, identifying the bacteria to match the correct antibiotic saves time and effort in case the wrong treatment is used initially. Education about preventative measures, proper hygiene practices and biosecurity measures can help too. Ensuring that everyone involved in the farm is aware of the best practices can help minimise the risk of diseases and reduce the need for antibiotics. Farmers using WelFarm with their vet are monitoring drug usage along with a number of other herd health measures. They are benchmarking against other farms regionally, nationally and against their own farm in the previous season. By having data available they are able to determine the best course of action to reduce antibiotic usage and ultimately do their bit to help the battle against AMR.

Who am I?

Samantha Tennent is the general manager of WelFarm.

DAIRY FARMER

November 2023

ANIMAL HEALTH

Serratia bacteria gains ground By Samantha Tennent

he prevalence of Serratia bacteria appears to be on the rise in recent surveillance data. Steve Cranfield, a technical veterinarian at AgriHealth and president of the Dairy Cattle Vets branch within the New Zealand Veterinary Association, has received an overwhelming number of calls from fellow vets grappling with Serratia-related issues on farms. “Serratia is a common bug, it can often be found growing in a damp area like a bathroom, where it manifests as a pink or orange discolouration, like in a sink in a student flat,” Cranefield says. “On dairy farms, it lives in the soil, particularly in wet conditions, and it is resistant to antibiotics and has a low self-cure rate so poses a huge threat if it gets into cows.

Serratia is resistant to antibiotics and has a low selfcure rate so poses a huge threat if it gets into cows. Steve Cranfield “So unfortunately culling is the recommended course of action when it is discovered.” It is an environmental mastitis and has been around for a long time. Most cases have appeared sporadically in the past but Cranefield believes that is changing and

DAIRY FARMER

November 2023

it is becoming more common. Last year, he worked with a farm in South Waikato that was having problems with a high bulk tank somatic cell count and the first step was to identify what bug they were dealing with by milk culture. They tested every cow and the results identified 92 of the 400 cows were positive for Serratia. “It was a tough time, we had to break the news to the farmer that ultimately they were going to have to cull a quarter of their herd,” Cranfield says. “And we had to implement a plan to minimise the risk among the rest of the herd.” The farmer culled the majority of the Serratiapositive cows and kept some that were put into a separate herd and milked last. Not all of the positive cows had a high somatic cell count, one was even as low as 30,000 cells/ml, which highlights the importance of testing an entire herd when there is a tricky mastitis issue. While trying to uncover the cause of the issue and minimise any further risk, they began by teat-scoring the herd, which is becoming more common in practice. “We found plenty of dry teats and rough teat ends with cracking in 54% of the herd. “Rough or damaged teat skin and teat sores provide sites for bacteria to become lodged and multiply so it is important to reduce and minimise that risk. “I can’t stress the value of teat scoring enough, it provides great insight into

what is happening on the farm and what could be contributing to mastitis problems.” Changes to the teat spray mix and lowering the vacuum allowed the damaged teats to heal. Cranfield also recommends a MaxT milking regime to reduce over-milking and consequent teat end damage. He warns: “The recent flooding events are likely to increase the risk of Serratia mastitis ... if the water source was contaminated and it

goes into the teat spray it may be sprayed onto the cows without the farmer knowing.” With climate change and flooding events becoming more common Cranfield says the battle with Serratia may continue to evolve and he advocates identifying bugs by culture. “Culture high somatic cell count cows and teat score, teat score, teat score. The more information you have the easier it is to determine the best course of action to try overcome it.” n

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PRIMARY PATHWAYS

Hannes du Plessis says with Agricademy he can be a tutor, own a business, and even sell the business a decade down the line.

All about the people By Gerhard Uys

Agricademy’s newest partners know from experience how helpful the right training at the right time can be.

t’s the people that give us a buzz.” That’s the motto of Southland dairy farmers Lyzanne and Hannes du Plessis, who recently joined Agricademy as business partners and dairy educators. The couple arrived in New Zealand from South Africa in 2003, with a baby boy on the hip, a suitcase, $20 and a dream to start a new life. Hannes had a degree in horticulture and agricultural economics, and thought his career was heading in that direction. But an opportunity in dairy came along and he grabbed it. He says the first steps into dairying weren’t easy, and he wishes that 20 years ago he had more opportunity to learn. If the couple had an Agricademy model to follow “

when they started dairying, it would have made a world of difference to their confidence and abilities, he says. Lyzanne was a “complete city girl” and also had to learn the dairy ropes from scratch. “It was because we’ve worked on so many different farms and with so many

“It’s nice to have a mentor that’s not necessarily your employer. It creates a better environment for asking questions.” Hannes du Plessis

different systems that I got a feel for the industry and how to fulfill my role. But it took years,” she says. “If I had something like Agricademy, to learn on my own time, it would have made life so much easier.” The Agricademy model is simple. Learners have access to videos that show them a concept, for example, setting up a break with electric fencing. Once a learner has watched the videos, an Agricademy partner visits the farm for a short practical session on the topic they learned online. That concept of mentorship sits well with Hannes and Lyzanne. Lyzanne says she realised how important mentorship was after home-schooling their three sons.

“I was very aware of their different personalities and learning styles. A mentor can cater for every style. It creates a lot of security in the learning environment, because you’re not out on your own making mistakes. It’s instant feedback, instant results,” she says. Hannes echoes her, “It’s nice to have a mentor that’s not necessarily your employer. It creates a better environment for asking questions.” In some learning environments it can take months for someone to get hands-on experience, he says. But Agricademy is different. “Online first. On-farm next. I absolutely love that,” says Hannes. “One of the challenges when you’re new on a farm, or just entered the industry, is that you’re not sure how to

DAIRY FARMER

November 2023

“With Agricademy you can prepare before you land in New Zealand. You’re confident when you put your overalls and gumboots on for the first time.” Lyzanne du Plessis Hannes and Lyzanne du Plessis say the Agricademy model benefits employers because the staff learning curve is steep. do specific tasks. You get up in the morning and there’s a cloud of insecurity. It’s demotivating,” Hannes says. Lyzanne says for complete newbies, and especially immigrants coming into the industry for the first time, starting a new life in dairying can be daunting. “People come from different cultures, they don’t necessarily come from a farming background. You can feel completely lost the first few months,” she says. “With Agricademy you can prepare before you land in New Zealand. You’re confident when you put your overalls and gumboots on for the first time,” she says. The Du Plessis’ decision

making is driven by the life goals they have for their family and their passion for people and teaching. A few years after they arrived in NZ they had two more boys and saw that the dairying lifestyle suited their goals, Hannes says. The pair contract-milk on a 590-cow farm. In the past they milked 1000+ cow farms, but the smaller farm once again suits their lifestyle. “This mid range is where we have enough staff so we can take time off and can enjoy family,” Lyzanne says. Their sons are all happily helping on the farm, with one

full time and the other two relief-milking when there is need. “They learn skills that will set them up for life, whether they choose to stay in dairying or not.” The farm size also allows them to put time into training staff, she says. “Our expectation is that staff don’t stay with us forever,” Lyzanne says. Hannes says they want to provide the same opportunities they were given. Dairying is a great career choice. “You don’t have to have a degree, you don’t have to end up with a lot of study debt, you don’t have to come

from a farming family. You can come as a townie, start with the right on the job training and climb the ladder to a place where you earn a really good wage package,” Lyzanne says. Learning and then moving on and upwards gave “us this wonderful life”, Lyzanne says. “We want to give people a start, give them the tools they need and help them progress. That has driven a lot of our decisions. We make decisions on how we can bring people into the industry, rather than how we can progress to farm ownership level,” Lyzanne says. “Because people make us buzz.” n

Hannes du Plessis’ sons help out on the farm, with one fulltime and the other two relief milking when required.

DAIRY FARMER

November 2023

PRIMARY PATHWAYS

Job opportunities in Canada

anadian agriculture and construction machinery company Rocky Mountain Equipment is looking for New Zealanders to come and work for it in the Great White North. Rocky Mountain Equipment (RME) company focuses on the sale and servicing of the Case IH, Case Construction and New Holland brands. It is the largest independent dealer of Case IH and Case Construction equipment in Canada, and the second largest in the world. The company operates 43 agricultural and construction dealership branches, employing more than 1000 people, in Canada’s

Rocky Mountain Equipment is looking at hiring New Zealanders to come work in Canada.

prairie provinces of Alberta, Saskatchewan and Manitoba. RME is a growing company

IS CANADA IN YOUR FUTURE? Rocky Mountain Equipment (RME) is one of Canada’s largest agriculture equipment dealership networks with branches located throughout the Western Canadian prairie provinces of Alberta, Saskatchewan and Manitoba. We are primarily focused on the CASE IH and the New Holland brands. Through our network of RME locations we sell, rent and lease new and used agriculture and industrial equipment and offer product support, including equipment servicing, to our customers. Consider a Canadian personal and professional adventure with us! Great overseas experience. We are now hiring for the following positions:    

LK0116826©

Job details at: www.farmersweeklyjobs.co.nz

ROCKYMTN.COM

with a long history of hiring skilled workers from all over the world and offers a great living in one of the world’s safest, friendliest and most beautiful countries. With employment contracts to begin in April and May 2024, RME is looking for skilled, motivated Kiwi workers, particularly agricultural equipment technicians/ mechanics, to fill up to 15 positions. RME also seeks to hire candidates with experience as precision farming specialists, ag equipment sales consultants and service managers. The pay scale for this occupation in most RME branches is CD $35.00-$40.00 an hour ($42-$50). On top of the wages, there is a company benefits programme that includes medical, dental disability and vision care. Overtime at 150% of the hourly rate is often available. The company will cover the cost of the flight to Canada as well as those related to an immigration expert helping with paperwork. If requested, the company can provide an interest-free

relocation loan of CD$3500 to make the move to Canada easier. There will also be assistance from RME in locating initial suitable accommodation once arrived. Initial work permits are issued from 23-36 months depending on the immigration programme, and there are options for workers to extend their stay. RME offers great overseas experience and families are welcome. RME recruiter and Canadian immigration lawyer Tony Muszynski will be in New Zealand in the first part of January 2024 to meet candidates. n

MORE: For more information on Rocky Mountain Equipment’s job offers, please go to www. farmersweekly.co.nz in the Careers Section. You will also find more information about RME on its website of www. rockymtn.com Please send your CV directly to RME recruiter and Canadian immigration lawyer, Tony Muszynski at tony@ muszynskilawoffice.com

DAIRY FARMER

November 2023