DAIRYNZ ANNUAL REPORT 2014/15
2014/15
Annual
Report
1
CONTENTS
Dairynz – your levy in action
1
in your region2
chairman’s review3
industry at a glance
4
Chief executive’S review
5
board of directors
6
senior leadership team
8
2014/15 highlights10
strategy for sustainable dairy
farming – summary of progress
18
looking ahead20
2014/15 PROJECTS24
FINANCIALS54
PUBLICATIONS88
Visit
dairynz.co.nz
for more information
2
DNZ01-010
DAIRYNZ ANNUAL REPORT 2014/15
DairyNZ – your levy in action
We invest dairy farmers’ money into a wide range of programmes, guided by the
dairy industry strategy.
In 2014/15, $68 million was collected through the milksolids levy, plus DairyNZ also received government funding. Our
work includes research and development to create practical on-farm tools, leading on-farm adoption of good practice
farming, promoting careers in dairying and advocating for farmers with central and regional government.
INVESTMENT By objective 2014/15
For every $1 of DairyNZ investment:
22c
21c
20c
10c
8c
6c
4c
Biosecurity
and product
integrity
Farm
profit
Research and
development
National
prosperity
Talented
people
Industry
information
systems
Environmental
stewardship
3c
3c
3c
Local
communities
Animal
welfare
Work
environment
For more information on projects funded under each of these investment areas, see pg 24.
NEXT SEASON’s Top five priorities
Forecast
spend
Increase
from 2014/15
Research and development
$18 m
1.5 %
FARM PROFIT
$17 m
2.0 %
Biosecurity and product integrity
$17 m
1.5 %
Environmental stewardship/national prosperity
$13 m
2.3 %
Talented people/work environment
$8 m
0.4 %
DAIRYNZ ANNUAL REPORT 2014/15
1
In your region
Northland
14.4% – the annual reduction in dissolved reactive phosphorus
in the Mangere River, west of Whangarei. The river’s progress
is thanks to improvements in managing effluent,
stock exclusion from waterways and riparian
management on the catchment’s 18 dairy farms.
BAY OF PLENTY
The work received a NZ River Award.
1515 – the number of
Bay of Plenty farmers
WAIKATO
who attended 191
550 farmers attended events in 2014/15 to hear about
and have their say in the ‘Healthy Rivers: Plan for Change’
DairyNZ events in
2014/15.
process, to understand what the regional plan change
process means for their farm business.
Taranaki
1393 farmers attended 285 DairyNZ events in Taranaki during
2014/15. More Taranaki farmers are working with DairyNZ
– particularly farm owners and farm assistants – with an
increase of 300 farmers since May 2013.
WEST COAST
847 farmers attended 134 events in the Top
of the South Island/West Coast during
2014/15. These events ranged from
StockSense workshops for junior staff,
farm systems groups for farm managers
and owners, and Progression
Groups for those looking to
LOWER NORTH
ISLAND
41 farmers lodged their
nutrient management
consent application to
Horizons Regional Council,
with the help of DairyNZ and
private consultants. 29 consents were
granted for the period up to 31 May 2015 –
each consent with Sustainable Milk Plan actions
to reduce nitrogen leaching on-farm.
advance themselves
and futureproof
their farming
business.
Canterbury
Over the last five years, farmers have spent up
large on environmental initiatives – with $170,000
spent per farm in Marlborough-Canterbury. Most
of this is invested in effluent management.
Southland/South Otago
134 affected and unaffected farmers and 34 graziers interviewed as
part of a DairyNZ survey aimed at understanding the factors causing
cows to become ill and, in some cases, die while grazing swede crops.
2
DAIRYNZ ANNUAL REPORT 2014/15
Industry’s
spirit
one to
celebrate
Looking back on my eight years with DairyNZ,
and four with predecessor Dexcel, I am struck
by the way our industry steps up to change
and challenge. We circle the wagons, summon
our pioneering spirit and come out stronger to
continue the journey.
“There is no doubt in my mind
that we will weather this
low milk price and come out
a STRONGER industry.”
Volatility has become the norm – nothing new in that.
But the nature of how fast things can change and how
the low milk price cycle played out in 2014/15, tested
and surprised us all – and still will as we go through
2015/16.
Leaving a strong organisation
As I step down from DairyNZ, I leave a strong and
There is no doubt in my mind that we will weather this
respected organisation, agile and effective. I am proud
low milk price and come out a stronger industry. We
to have been a part of how it has matured and grown
don’t just bounce back – we bounce forward because
into a vital part of the machinery of our industry.
we pull together as farmers to help each other through
each season. DairyNZ is here to support and speed that
recovery.
DairyNZ has to be at its very best in supporting farmers
at all times. Every season we have to prove the value of
the levy to you. This past year is no exception.
greater efficiency
DairyNZ epitomises our cooperative spirit and keeps
it alive – serving all farmers for the good of us all, no
matter where we farm or who we supply.
As always, I would like to thank my board, our chief
executive Tim Mackle, the senior leadership team of
DairyNZ, all the staff and past board members who have
served with me over the years.
It has been a long milking for me, and a productive one.
Our science, our regional teams, our research, our
It’s time now to follow the cows to the home paddock
communication channels – they all have to give what you
and spend a bit more time with the grandchildren.
need, when you need it. We want to make it easy for
you to increase on-farm profit through greater efficiency.
This past year, our focus quickly shifted to the immediate
pressure on farmers – without taking the accelerator
off developing innovative technologies and solutions to
meet the future needs of dairy farms. One eye always
Hon John Luxton
Chairman, DairyNZ
has to be on preparing for the next likely challenge,
while staring down the one we are in.
DAIRYNZ ANNUAL REPORT 2014/15
3
Industry at a glance
1.825
billion kg of
milksolids
Milk collected from dairy
herds in 2013/14.
323,824 kg
milksolids
North Canterbury recorded the highest average
herd production.
815
Provisional data suggests
production of 1.890 billion
kg in 2014/15.
– the region also has the largest average herd size.
COWS
11,927
total number of herds
413
average herd size
4.9
million milking cows
(up 138,600 – or 2.9%)
371
average kg milksolids per cow – that’s up 7.2%
FARMERS
7812
owner-operators
(65% of all herds)
4081
sharemilkers
(54% are 50/50)
144ha
average farm size
Data from the New Zealand Dairy Statistics 2013-14
DAIRY FARMERS ON
AVERAGE HAVE SPENT
$90,000 EACH ON
THE ENVIRONMENT
throughout the regions over the
past five years.
DAIRY FARMERS HAVE SPENT
$1 BILLION DOLLARS PROTECTING AND
IMPROVING THE ENVIRONMENT
OVER THE PAST FIVE YEARS
on initiatives such as effluent management,
stock exclusion, riparian planting, upgrading
systems, investing in technology, retiring
land for environmental reasons and
developing strategic wetlands.
Statistics from a 2015 Federated Farmers
4
DAIRYNZ ANNUAL REPORT 2014/15
and DairyNZ nationwide survey of farmers
Tactics for a
challenging year
What a difference a year can make. In 2013/14, our
industry was celebrating one of the best seasons
and milk prices ever, and in 2014/15 we are looking
back on a milk price plummeting to a low point.
Fortunately there have been many high points in terms
of our industry and our farmers stepping up to be their
best in challenging times.
More than 29 farmers have joined us in DairyNZ’s Tactics
campaign to share their stories, and budgets, in an effort to
assist other farmers. More than 2000 farmers attended our
Tactics events and, together, the shared farmer experience
is carrying us through a couple of difficult seasons.
Our top farmers have stepped up as case studies to
demonstrate a way forward. They have opened their books
“We have built a powerful base of
more than $80 million worth of annual
DairyNZ research and development, and
regional farmer support systems.”
in a way that epitomises how New Zealand dairy farmers
are all about cooperation, not competition. DairyNZ’s role
is to help make it easy for farmers to support each other
– and we did, by using our farmer networks and online
communication channels to share information.
DairyNZ also has to keep up with farmers’ needs –
and be regionally relevant. As farm systems change
and evolve, we will ensure you have the people, the
•
and learn how milk is produced, as part of the
knowledge, the skills and science to take you forward,
no matter where you farm.
Rosie’s World Find a Farmer programme.
•
farm and internationally, as an industry.
Our Pastoral 21 research programme has led the way,
showing farmers can reduce nitrogen leaching and
phosphorus loss by 30 percent (and more) with solutions
that can be implemented now, with little (5 percent) or
no milksolids production loss.
Other highlights for DairyNZ this year are listed below.
•
Investing $15.5m into the TB National Pest
Helping to convince the government to lift the cap
on agricultural training numbers and increase the
Keeping our competitive edge
Our job is to help you keep your competitive edge – on-
Helping more than 5500 children to visit dairy farms
funding allocation to agricultural training.
•
Enabling 100 nutrient advisors to be certified to
provide better advice to farmers.
•
Launching a new warrant of fitness scheme for
effluent systems.
We have built a powerful base of more than $80 million
worth of annual DairyNZ research and development, and
regional farmer support systems and programmes to
keep our industry strong and at the top of its game, no
matter what the milk price cycle story of 2015/16.
Management Strategy through OSPRI.
•
Supporting the development of new South Island
research centres of excellence, including a new
Southern Dairying Hub and a Lincoln Hub.
•
Enabling more than 800 Sustainable Milk Plans for
TIM MACKLE
Chief executive, DAIRYNZ
farmers from Northland to Southland.
DAIRYNZ ANNUAL REPORT 2014/15
5
DairyNZ Board of
Directors
John Luxton
(chairman)
Jim
van der Poel
Farmer-elected
Farmer-elected
John has extensive farming
Jim van der Poel was elected
interests supplying Fonterra,
onto the Fonterra board in 2002
Westland and Tatua co-operatives. A former
and stepped down in 2014. Jim also served on
Minister of Agriculture, he was a cabinet minister
the board of New Zealand Co-operative Dairies
for nine years and also spent seven years in
Ltd. Jim was an inaugural director on the Fonterra
international agricultural consulting. As a farmer,
Shareholders Fund.
he was an AC Cameron Award winner.
Jim has won a number of industry awards
John is chairman of the DairyNZ board and has
including the AC Cameron Award, 2002 Nuffield
current directorships with Tatua Co-operative Dairy
Scholarship, Sharemilker of the Year and the Dairy
Company and Wallace Corporation, and a number
Exporter Primary Performer Award. Jim and his
of other businesses in which he has an interest. He
wife Sue live in Ngahinapouri, in the Waikato, and
is co-chair of the Waikato River Authority and chair
have farming interests in the Waikato, Southland,
of the Asia New Zealand Foundation.
Canterbury and the United States.
Michael
Spaans
Peter
Schuyt
Farmer-elected
Independent
Michael Spaans is a dairy
Peter is an independent
farmer from Te Aroha, in
director on a broad range of
the Waikato. He also has farming interests in
New Zealand businesses. He is currently chair of
Canterbury, Chile and the United States. Michael
Dairy Investments Ltd, Pumpkin Patch Ltd and Tax
has had extensive governance experience across the
Management NZ Ltd. He is also on the board and
dairy industry.
chairs the Audit and Risk Committees of Tatua Co-
He is a former chairman of Waikato Innovation
Park and Animal Breeding Services Ltd, and former
Operative Dairy Company, Foodstuffs North Island
Ltd and Port Nelson Ltd.
director of OSPRI and NZAEL. He is currently a
Prior to taking on director roles, Peter held senior
director of Fonterra Co-operative Group, ASB Bank
executive roles, primarily in the finance and strategy
and Shoof International. Michael is a chartered
areas, with the New Zealand Dairy Board, Fonterra
member of the Institute of Directors.
Co-operative Group and the NZ Post Group. He is a
member of the Institute of Directors.
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DAIRYNZ ANNUAL REPORT 2014/15
Helen
Anderson
Ben
Allomes
Independent
Farmer-elected
Dr Helen Anderson is
Ben lives and runs his
a director of NIWA and
farming business in Woodville
WREDA (Wellington Regional
with his wife Nicky and four
Economic Development Agency), along with chair
children.
of FulbrightNZ and BRANZ (Building Research
Association of New Zealand). She is also on the
national council of the Institute of Directors and
Massey University Council.
He has a degree in Applied Science, Natural
Resource Management from Massey University.
Ben was president of New Zealand Young Farmers
for three years, has twice reached the grand
She chairs external advisory committees for the
final of the National Bank Young Farmer Contest
Department of Internal Affairs and LINZ (Land
and, together with Nicky, won the New Zealand
Information New Zealand) and is involved in other
Sharemilker of the Year title in 2008.
advisory committees in the science, education and
government sectors. She was chief executive of
the Ministry of Research, Science and Technology
(MoRST) for six years and before that was MoRST’s
chief scientific advisor for more than five years.
Helen is a Companion of the Queen’s Service Order,
Ben is a 2015 Nuffield scholar. He was previously
a DairyNZ representative on the Primary ITO
(Industry Training Organisation) partnership group
and the OSPRI Stakeholders Council, is a Dairy
Industry Awards trustee and was chairman of the
National Mastitis Committee.
a chartered fellow of the Institute of Directors and a
Companion of the Royal Society of New Zealand.
Alister
Body
Barry
Harris
Farmer-elected
Independent
Alister lives and runs his
Barry Harris is a company
farming business in the mid-
director with extensive governance
Canterbury region. He has a Bachelor of Commerce
and executive experience. Barry has held a number of
(Agriculture) from Lincoln University. He was the
chief executive roles including Environment Waikato,
Dairy Farmers of New Zealand provincial chairman
Greater Wellington Regional Council and Hamilton
from 1999 to 2001 and is a past national chairman
City Council. He was also a senior executive with
of New Zealand Young Farmers.
Fonterra Co-operative Group for five years.
Alister has been heavily involved in farmer
Barry is currently chair of Food Innovation Waikato,
advocacy, including acting as a farmer
deputy chair of AgResearch and director of Primary
representative on Dairy InSight’s advisory teams
ITO, WEL Networks Ltd and OSPRI. Previous boards
prior to being elected to the board. He currently
include CentrePort, RD1, International Nutritionals,
chairs the Dairy Environment Leaders Group
Hamilton Riverside Hotels and Local Authority
(DELG). Other directorships include Pastoral
Shared Services. Barry has a Masters of Agricultural
Genomics Ltd, Ashburton Trading Society Ltd and
Science (Honours) and lives in Hamilton.
chairman of Ruralco NZ Ltd.
DAIRYNZ ANNUAL REPORT 2014/15
7
DairyNZ
Senior
leadership
team
Dr Tim Mackle
Chief executive
Tim has been DairyNZ’s chief
executive since 2007 and chief
executive of its predecessor Dexcel since 2005.
Before that, Tim held several positions with the New
Zealand Dairy Board and then Fonterra, in strategy,
corporate, processing and sales. His most recent
role was general manager for Anchor Ethanol.
Tim has a PhD in animal, food and nutritional
sciences from Cornell University, New York. He was
previously a milk characteristics scientist at DRC
(Dairying Research Corporation) in Hamilton and
grew up on the family dairy farm in Kaikoura.
Dr Rick Pridmore
Strategy and investment
leader (sustainability)
Dr Mark Paine
Strategy and investment
leader (people and business)
Rick joined DairyNZ in 2008. The
Before joining DairyNZ in 2008,
ex-NIWA chief executive of five years has worked
Mark was principal research fellow in innovation
in the New Zealand environmental science sector
and change management at Melbourne University.
for more than 35 years. Before NIWA he worked
His research has included investigating how
as a government scientist specialising in nutrient
farmers make decisions and how information
management of lakes, rivers and estuaries. He
services can be made more useful. The areas
also has experience as a director for a number of
Mark oversees include business planning, human
companies.
capability, dairy extension, education and training.
Dr Bruce Thorrold
Strategy and investment
leader (productivity)
Jeremy Hood
Chief financial
officer
Before joining Dexcel (now
Jeremy, who grew up on a sheep
DairyNZ), Bruce spent 15 years with the Ministry
and beef farm in the Bay of Plenty, joined Dexcel
of Agriculture and Fisheries and AgResearch,
as finance manager in 2006, prior to the merger
where he worked in soil science and catchment
that formed DairyNZ. He has held finance positions
management, including hill country and lowland
in Fonterra and L’Oreal UK. Jeremy is an associate
studies. At Dexcel, Bruce led the farm systems
chartered accountant with an honours degree in
research team and was involved with the Holstein-
business management.
Friesian Strain Trial and the Lake Taupo policy
process, before taking on his current role.
8
DAIRYNZ ANNUAL REPORT 2014/15
Dr David McCall
General manager
research and development
Rose MAcFarlane
General manager
human resources
David joined Dexcel (now
Rose joined DairyNZ in 2008.
DairyNZ) as development and economics manager
She has a background in HR management and
in 2007. His professional training is in agricultural
leadership roles in a range of organisations. For
economics and management, with a PhD in the
the last four years Rose has been the Waikato
area from Massey University. He was a farm
Human Resources Institute of New Zealand (HRINZ)
systems scientist at AgResearch until 1998 and
branch president. She has also served on the
then spent eight years in business development
HRINZ board of directors and the advisory group to
and managing technology company start-ups and
the HRINZ board.
investments for Celentis Ltd.
Carol Barnao
General manager
policy and advocacy
Andrew Reid
General manager
extension
Carol joined DairyNZ in early 2015
Andrew joined DairyNZ in 2015
from the Ministry for Primary Industries (MPI), where
following a 20 year career with Ballance Agri-
her most recent role was as deputy director-general,
Nutrients, most recently as general manager – sales.
change management programmes. Carol has a depth
Andrew originates from a family dairy farm in the
of experience in regulatory policy, especially in the
Bay of Plenty, has a Bachelor of Agricultural Science
area of biosecurity, animal welfare and food safety.
degree from Massey University and is a member of
Previously, Carol was the MPI deputy director-general
the London Business School alumni. Andrew leads
of standards for four years and the director of standards
DairyNZ’s national team of consulting officers and
with the New Zealand Food Safety Authority.
events management personnel.
DAIRYNZ ANNUAL REPORT 2014/15
9
2014/15 HIGHLIGHTS
10
DAIRYNZ ANNUAL REPORT 2014/15
2014/15 highlights
Tactics campaign supports farMERS
In response to the low milk price, this year DairyNZ
pulled together research, data and lessons from
similar seasons to help farmers prepare for 2015/16.
The Tactics campaign continues to deliver tools and tips
to help dairy farmers survive and thrive in a low milk
price season.
Tactics farmers
The Tactics campaign supports farmers and their decisions
around health and wellbeing, pasture cover, feed,
production, stock health and financial management.
The case study farmers share their decisions to
demonstrate how they keep cost of production in line.
By working with 29 respected and proven Tactics case
Those involved operate a mix of farm system types and
study farmers throughout New Zealand, DairyNZ is
business structures, including sharemilking.
providing support to other farmers.
Through DairyNZ, each farmer is sharing their region-specific
“While it is going to be a very challenging season for
information online and with other farmers at a series of
farmers, it’s also an opportunity to strengthen our
events on Tactics farms throughout 2015. They continue
industry, if we can use it to become more efficient in
to share their information and learnings in 2015/16.
how we farm,” says Tim Mackle, DairyNZ chief executive.
“Ultimately, this kind of challenge could make us more
competitive if we use it to refine our businesses through
this downturn.”
Tactics farmers
– the Footes
Making sure every dollar spent gives a good return is
a key business principle for Northland dairy farmers
Peter and Trixie Foote, especially during a season with a
lower milk price.
They’ve been through several lean years in the ’80s and
Peter and Trixie say they’re happy to be one of 29
’90s and say applying what they’ve learned during those
farmers participating in the Tactics campaign.
times has helped their farming business.
“If by hosting and contributing to the Tactics field
“We know our business inside and out. We won’t be
days, more people are able to drive out better profits
doing too many things differently this year as we try to
regardless of payout, it will be better for Northland, New
run a pretty lean and efficient ship, regardless of payout.
Zealand as a whole and the next generation,” he says.
Obviously some of the equations around supplementary
feeding under a low milk price will change things, so
DAIRYNZ.CO.NZ/TACTICS
we’ll be doing our sums carefully.”
50
EVENTS
2000 ATTENDEES
These events looked at each farmer’s
operation, provided a forum for
sharing ideas to cope with the milk
price and gave an indication of
what cashflows would look
like for 2015/16.
A NEW ONLINE
RESOURCE
5 TOP PERFORMING
FARMERS
detailing the financial spending
of top-performing dairy farms.
who’ve shared their 2015/16
forecast budget.
29 TACTICS
FARMERS
who’ve hosted events and shared
their farm info at dairynz.co.nz/
tactics.
DAIRYNZ ANNUAL REPORT 2014/15
11
2014/15 highlights
Pastoral 21:
next generation
farming
Pastoral 21 in the regions
Waikato
Project goal: to show that an average Waikato farm
could increase annual milk production by up to
200kg/ha, with increased profit per hectare, while
reducing nitrogen leached from 35-50+ kg/ha per
The DairyNZ-funded Pastoral 21 programme aims
year down to 20-30kg/ha per year.
to provide proven, profitable, simple farm systems
that lift production and reduce nutrient loss. These
‘next generation dairy systems’ illustrate options
for future farm systems where nutrient losses need
to be reduced.
Five years in, four regionally-focused Pastoral 21 trials in
the Waikato, Manawatu, Canterbury and South Otago are
showing how farmers can reduce losses of nitrogen (N),
Manawatu
Project goal: to develop a practical housing system
for the lower North Island, that combines high
production and profit with lower nitrate and
phosphorous leaching.
phosphorus (P) and sediment, but at some cost to profit.
Canterbury
Pastoral 21 research farmlets achieved up to a 30
Project goal: to develop practical dairy farm systems
percent reduction in N loss and up to 80-90 percent
that combine high production and profit with lower
reduction in P and sediment loss, with little change in
nitrate leaching.
production.
Each regional project has a slightly different approach,
South Otago
but overall, Pastoral 21 applies three central principles to
Project goal: to investigate ways dairy farmers can
reducing nutrient loss.
manage soils, animals and forage crops during
These principles are decreasing N inputs, capturing
the challenging shoulder and winter seasons, to
urinary N and managing critical source areas like gullies
optimise their business and reduce environmental
or swales.
footprint.
This project is especially important as many regional
councils are introducing nutrient loss limits. These could
restrict farming activities unless viable farm system
solutions are available.
Pastoral 21 is a collaborative venture among DairyNZ, Fonterra,
Dairy Companies Association of New Zealand, Beef + Lamb
New Zealand and the Ministry of Business, Innovation and
Employment. It is managed by AgResearch.
The learnings from Pastoral 21 will be released in
2016 through guidelines for farmers – covering low N
application, grazing low N systems, duration-controlled
grazing and barn effluent application.
dairynz.co.nz/p21
QUICK FACTS
NZ$13.2
billion
3%
New Zealand
produces 3% of all
the milk in the world.
(2014/15)
12
DAIRYNZ ANNUAL REPORT 2014/15
the export revenue New
Zealand earnt from
dairy farming in 2014/15.
0%
37%
100%
Dairy farming contributes 37%
of New Zealand's total primary
industry export value.
Dairy makes up 27% of the total
value New Zealand earns from its
merchandise exports.
(2014/15)
2014/15 highlights
UPPER
WAIKATO
the industry’s biggest
environmental endeavour
Since 2012, DairyNZ, the Waikato River Authority
A preliminary analysis of Sustainable Milk Plan actions by
and 650 dairy farmers have been working together
farmers suggests average farm nutrient loss reductions
to help restore and protect the Waikato River
of 16% phosphorus (P) and 8% nitrogen (N).
through DairyNZ’s Sustainable Milk Plans.
Long-term, the work will show the collective impact of
The Upper Waikato Sustainable Milk Plan project is the
environmental initiatives on catchment nutrient levels and
largest catchment project ever undertaken by the dairy
the Waikato River’s water quality and ecosystem.
industry. Thanks to additional funding by the Waikato River
A wide range of agricultural consulting companies have
Authority and DairyNZ, this year the programme has been
rolled out to another 800 farms in the Waipa catchment.
The project’s Sustainable Milk Plans offer free, one-on-one
advice and support to farms, helping reduce nutrient and
sediment loads going into the Waikato River, as well as
improving farm water use efficiency.
been contracted by DairyNZ to provide free advice to
every farmer in the Upper Waikato catchment.
The Upper Waikato Sustainable Milk Plan project is managed by DairyNZ
and is strongly supported by dairy farmers and the wider dairy industry,
including Fonterra, Open Country and Miraka dairy companies. It has been
co-funded by DairyNZ, central government and the Waikato River Authority.
dairynz.co.nz/upperwaikato
Building dairy environment leaders
This year, more than 300 dairy farmers attended two DairyNZ training events to increase awareness of
environmental issues affecting the industry.
Dairy Environment Leaders’ Forum
Regional training programme
Ninety-six farmers attended the annual Wellington event
Thirteen Ahead of the Wave workshops were held in
which supports dairy farmers to become environment
Northland, Waikato, Bay of Plenty, Horizons, Canterbury
leaders on their farms, in their communities and the
and Southland.
industry. Sessions were around sustainability, innovation,
competitive advantage and leadership.
“Hearing from leaders inside and outside the industry
who shared their insights and experience was great,”
says Canterbury farmer Tony Coltman. “I came back
to my farm inspired to change things, to go out to
the community and engage with more people on the
The workshops hosted 285 farmers and gave greater
understanding of the environmental issues facing dairy
farmers and helped develop risk management strategies.
Topics included how nutrient limits are set, allocation
methods, implications of limits and the importance of
collective action.
environmental issues we all have to deal with.”
As a result, participants have formed new catchment
groups, upgraded effluent systems, restored wetlands and
hosted school children to show dairying in action.
DAIRYNZ ANNUAL REPORT 2014/15
13
2014/15 highlights
FORAGE RESEARCH TO REDUCE
NITRATE LEACHING
Canterbury dairy, arable, sheep and beef farmers
are participating in a DairyNZ-led research
Farmer participation
programme to develop profitable solutions that
Nine monitor farms in Canterbury are part of the
reduce nitrate leaching.
The six-year Forages for Reduced Nitrate Leaching
programme aims to reduce nitrate leaching by 20
percent through adoptable and profitable pasture and
forage crop options for New Zealand farmers.
Pasture species and crops
Forages for Reduced Nitrate Leaching project.
Four dairy farms, two arable, two sheep and beef
and a mixed farm, are contributing to the research
by influencing priorities, sharing experiences and
providing a practical check.
During 2014/15, the project’s first season, the
farmers established base data by monitoring their
In Canterbury and in the Waikato, alternative pasture
current practice.
species are being compared for important traits that will
Information collected includes grazing and
help reduce N leaching. These traits – including low N
supplementary feed records, inputs of irrigation,
content, high cool-season growth or deeper rooting – are
effluent and fertiliser, crop management and yields,
being measured in plants including chicory, plantain,
as well as stock and feed movements on and off
Italian ryegrass and lucerne.
the property. During 2015/16, summaries will be
Crops are also screened in these two regions for
published online.
yield, feeding value and N content. Those showing
Overseer files and farm system models have been
potential (e.g. fodder beet, grazing sorghum and rape,
developed for each farm to estimate nutrient loss and
sunflowers, maize and cereals) are being studied further
model different scenarios for new mitigation options.
to explore how management (irrigation, grazing, fertiliser
application, crop establishment, crop rotations and
effluent management) influences plant N content and N
Farm field days and discussion groups will enable
other farmers to see first-hand how the options work.
uptake from soil.
Farm systems
New mitigation options need to fit farm systems for profit
and manageability. Plant, animal and farm system models
will test scenarios for the participating farms.
Scenarios showing the greatest potential for gains will be
tested in farm systems research or demonstrated on-farm.
Forages for Reduced Nitrate Leaching is a DairyNZ-led programme
in partnership with AgResearch, Foundation for Arable Research,
Landcare Research, Lincoln University and Plant & Food Research.
The principal funder is the Ministry of Business, Innovation and
Employment. All partners co-fund the programme.
Forages for Reduced Nitrate Leaching – research aims
• Reduce livestock urinary N excretion
• Maximise yield and N use efficiency in forage crops
• Sustain high levels of feed and animal production
• Provide solutions that can be readily integrated
• Hold more N in soil and reduce leachable N
14
DAIRYNZ ANNUAL REPORT 2014/15
on-farm.
2014/15 highlights
INDUSTRY GOOD
ANIMAL DATABASE
LAUNCHED
STUDY SHAPED SWEDES
ADVICE TO FARMERS
The risk factors associated with feeding swedes
to cows became the focus of a DairyNZ study in
2014/15, when cows became ill and some died
after feeding on swedes in Southland.
The new Dairy Industry Good Animal Database (DIGAD)
went live at DairyNZ in December 2014. The national
database was previously under the custodianship of LIC
(Livestock Improvement Corporation).
Since going live, DIGAD has supported a range of industry
good projects including, most prominently, the Animal
Evaluation Transition project. Once complete (forecast for
early 2016), outputs such as breeding worth, production
worth and other animal evaluation functions will be
produced by DairyNZ subsidiary, NZ Animal Evaluation Ltd,
instead of the Animal Evaluation Unit of LIC.
NZAEL manager Jeremy Bryant says the DIGAD contains
a wealth of data from today and back many decades.
This includes herd test information, births, death, calving
and mating, culling, body condition scores, udder quality
assessments and farmer opinion scores for traits such as
temperament and milking speed.
“Data held in DIGAD has been used to explore how
management affects the subsequent performance of an
animal, to meet disease and biosecurity obligations, and to
strengthen estimates of genetic merit for sires,” says Jeremy.
Having the DIGAD at DairyNZ as a stand-alone database
and built using leading technologies provides an excellent
foundation for future developments to the animal
evaluation system, and will support industry research and
best practice messaging by DairyNZ and other stakeholders.
As part of the work, DairyNZ released 11 advisories to
farmers on feeding swedes.
A cross-sector industry-led Swedes Advisory Group
(SWAG), chaired by DairyNZ, came together to
coordinate the research and advice to farmers. The
group involved a range of sector groups, including
Southland veterinary practices, Ministry for Primary
Industries, Federated Farmers, Beef+Lamb NZ and
PGG Wrightson Seeds.
Work completed and released
Animal testing:
An analysis of the blood and autopsy samples was
collected from dairy cows experiencing ill-health
after grazing on swedes in Southland in 2014.
Released December 2014
Farmer survey
DairyNZ carried out a detailed one-on-one farmer
survey between November 2014 and February
2015 to help understand the factors that caused
some cows in Southland/South Otago to become
ill or die. In total, 134 affected and unaffected
farmers and 34 graziers were interviewed.
Released May 2015
Plant testing
Purpose of DIGAD
DairyNZ analysed swede samples collected
from 11 Southland farms last September.
DIGAD supports the development and routine
Samples were dissected into up to six plant
operation of animal evaluation – breeding
parts to be analysed. Up to 150 plant parts
worth, production worth and breeding values for
were analysed from three swede varieties.
dairy cattle – and supports other industry good
Released September 2015
research projects.
DairyNZ also carried out an international scientific
literature review on the effects and management of
Farmer benefits
feeding swedes to cows.
The DairyNZ study is now being summarised into
To develop and enhance new and existing
a final report that will be released to farmers in
technologies such as tools, benchmarks, best
October 2015.
practice messages and genetic indices for dairy
cattle, that will allow farmers to be more profitable.
dairynz.co.nz/swedes
DAIRYNZ ANNUAL REPORT 2014/15
15
w
2014/15 highlights
Rosie’s rise
continues
2014/15 was Rosie the cowbassador’s fourth year
spreading the dairy message to New Zealand school
children and the general public. With 3000 children
currently on a waiting list to visit a dairy farm, Rosie
is striking a chord with both teachers and kids.
At a simple level, DairyNZ’s Rosie programme aims to teach
children where milk comes from (not just the supermarket)
but behind the scenes, it is developing an awareness of how
“In the last year, around
82,000 school children have
been exposed to Rosie and
the teaching materials.”
important dairying is in the community and economically.
The Rosie programme provides free teaching resources,
farm visits, a children’s website, online games, a live
show and even two books.
In the last year, around 82,000 school children have been
exposed to Rosie and the teaching materials, which use the
dairy industry as a context for learning about a subject. The
teaching resources are now in over a third of all primary
Find a farmer
The Find a Farmer farm visit programme is growing in
popularity, particularly in the cities where the connection
to dairying has not been strong.
This year the programme facilitated 57 farm visits totalling
5527 children. On top of this, an estimated 900 parents
schools and around a quarter of secondary schools.
have attended these farm visits with their children.
This benefits the industry in a number of ways. Firstly,
The largest school visit involved 660 students from
it introduces dairying to children who would otherwise
not be exposed to it, the educators (who can be big
Manurewa Intermediate across five farms, which was a very
large undertaking.
opinion leaders in their local communities) are more
informed and it improves understanding and perceptions
of dairying. It also increases the likelihood of children
rosiesworld.co.nz
rosieseducation.co.nz
considering careers in the dairy industry.
Investment strips back TB
Every year DairyNZ invests $15.5m into OSPRI’s
One of DairyNZ’s objectives will be to ensure the plan
TBfree programme.
provides a TB control scheme that is fit-for-purpose,
A bovine tuberculosis (TB) herd infection could have a
devastating impact on a dairy farm operation, so the
value for money and protects the progress made in
eradicating the disease.
investment – made on farmers’ behalf – contributes to
The final proposal will be submitted in October to the Minister
keeping TB at bay and protecting farmer livelihoods.
for Primary Industries for implementation in July 2016.
The TBfree programme aims to keep the prevalence of
TB in cattle and deer herds to less than 0.4 percent, with
an overall goal to eradicate TB from wildlife.
2014/15 Highlights from the TBfree programme
• Almost 1.2 million hectares eradicated out of
TB Plan review
In early 2015, a TB Plan review began and a consultation
in July looked at a new proposal for methods of disease
testing and vector control, to improve targeting and get
better outcomes for TB control.
16
DAIRYNZ ANNUAL REPORT 2014/15
the 2.3 million targeted by 2026.
• Infected herds down to just 41. At September
2015, this had dropped again to 36.
• Movement control areas reduced by another
302,000ha.
w
2014/15
Highlights
Farm profit National prosperity • Over 2000 regional discussion groups with case
• DairyNZ’s policy team helped ensure good science
study farms achieved an average economic gain
informed decisions related to the setting of
of over $90,000 after implementing action plans
environmental limits on dairy farms in Northland,
(a 50 percent increase on the previous year).
Otago, Canterbury, Waikato, Southland, Hawke’s
• DairyNZ worked with over 600 farmers and rural
professionals at workshops which helped farmers
Bay and Bay of Plenty.
• DairyNZ contributed significantly to an economic
make effective investment decisions on which
model for the Waikato, which is now used to
farm system to choose.
assess different policy options in the limit setting
process for the Waikato River catchment.
Talented people
• Industry training completion rates increased by
10% (from 2013).
Local communities
• More than 82,000 children across 830 schools
• Over 5200 students (88 percent urban)
participated in the Enterprise Primary Industry
Challenge (EPIC), with 84 percent indicating they
participated in the Rosie’s Education programme.
• DairyNZ and farmer hosts facilitated 57 farm visits
involving more than 5500 children and 900 parents.
have an increased awareness of career options in
primary industries.
Work environment
Industry information systems
• Farmer testing of a new online tool has resulted in
the DairyNZ Roster Builder - an easy-to-use system
to help farmers design effective team rosters.
• Over 1700 people benefited from wellbeing
workshops to cope with stress and fatigue in the
• A code of practice for organisations collecting,
storing and managing farmer data aims to
improve practices and give organisations a way to
demonstrate the quality of their systems.
• New protocols allow farmers with automated
milking systems to herd test and have data included
in National Animal Evaluation programmes.
workplace.
Environmental stewardship
• DairyNZ met all its 2014/15 commitments in the
Sustainable Dairying: Water Accord.
• Local farmers, DairyNZ and regional council staff
Animal welfare • 2018 people attended StockSense or Welfare
Matters workshops – raising awareness and skills
to achieve good animal welfare on farms.
• 76 farms were supported by the Early Response
completed three Land Management Guides
Service, helping achieve positive outcomes for
(Northland, Bay of Plenty, Canterbury) to help with
people and animals under trying circumstances.
riparian planting and erosion control on-farm.
Biosecurity • DairyNZ conducted a major study in Southland to
support farmers and improve understanding of
how feeding swedes affects cow health.
• A programme was launched to assist in managing
Johne’s disease on-farm.
Research and development • Research on quality differences between ryegrass
cultivars has provided base data for including
nutritive value in the Forage Value Index (FVI) in
2015/16 - changing FVI ratings by 10-20 percent.
• AgResearch, funded by the Pastoral Greenhouse
Gas Research Consortium, has identified five
compounds reducing methane emissions by 30-90
percent in indoor studies.
DAIRYNZ ANNUAL REPORT 2014/15
17
Strategy for Sustainable Dairy Farming 2013-2020
– Summary of progress
COMPETITIVE – GLOBAL AND LOCAL
OBJECTIVES
FARM
PROFIT
RESEARCH AND
DEVELOPMENT
TALENTED
PEOPLE
TARGETS
INDICATORS
BASELINE
2015 PROGRESS
SNAPSHOT
1. Profit from productivity
increases from an average of
$50/ha per year to $65/ha per
year by 2020.
Overall measure - average profit from
productivity.
$50
$62
24%
Average actual six-week in-calf rate*.
65.4%
66.2%
increase in
profit from
productivity
Average farm working expenses owner-operator
(sharemilker)*.
$4.90
($2.95)
$4.98
($2.98)
2. Research delivers farm
systems that increase
production and profit by
$110/ha per year, while
reducing the environmental
footprint by 30%.
Footprint#.
0
28-43%
reduction in N
leached
44-52% reduction
in P loss
Profit#.
0
3. By 2020, 90% of dairy
farm businesses have fully
competent farm teams.
Overall measure - percentage of dairy farm
businesses with fully competent farm teams**.
76%
1878
Training (qualification completion numbers for
Level 3 and Level 4 Primary ITO training)**.
1878
Not measured
until 2015
Experience (e.g. average time working in dairy
farming for 22-26 year olds)**.
5.5 years
farmers have
completed
Level 3 and 4
Primary ITO
training
9%
88
nutrient
management
advisors
certified
4. By 2020, all dairy regions
have sufficient certified rural
professionals.
BIOSECURITY
AND PRODUCT
INTEGRITY
INDUSTRY
INFORMATION
SYSTEMS
18
# Potential gains in profit and reductions in
environmental footprint demonstrated by research
farmlets.
Overall measure – percentage of dairy regions
that have sufficient certified rural professionals.
$35-$227/ha
per year less
operating profit
28-43%
less N
leaching
(the range
demonstrated
in farm
systems trials)
BCS scorers certified.
0
265
Nutrient management advisors certified.
0
88
Dairy effluent WOF assessors certified.
0
16
Dairy effluent designers certified.
0
21
Reproduction review advisors certified.
0
20
A pre-border/border biosecurity system is
established that identifies key risks to the dairy
industry and minimises their risk of incursion.
None
A response capability is developed that is
effective in minimising the consequences of
biosecurity incursions to the dairy sector.
None
The dairy industry is undertaking prioritised and
targeted biosecurity programmes that maintain
or enhance dairy farm profitability.
None
6. Farm practices ensure the milk
supply is free of contaminants.
Average somatic cell count*.
213,333
198,333
7% decrease
7. By 2018, farmers have access
to an information system that
supports single entry and
comprehensive data storage
and links this data to key farm
applications.
Farm Data Code of Practice implemented.
None
In place
Industry Data Standards implemented.
None
In progress
A Farm Data
Code of
Practice is
established
8. Robust industry information
systems facilitate 1.5% annual
gains in breeding worth (BW)
of the national herd.
Annual gains in breeding worth (%)*.
1.2%
1.3%
1.3% average
9. Robust industry information
systems facilitate rates of
genetic gain of 1.0% per
annum by 2020 in the forage
value of pasture plants.
Genetic gain % per annum.
5. The dairy industry and
government authorities have
robust biosecurity systems.
DAIRYNZ ANNUAL REPORT 2014/15
A plan
for robust
biosecurity
systems is
established
In progress
in SCC
annual gain
in breeding
worth
None
Establishing
the historical
rate of
genetic gain
Sixteen targets for the dairy industry’s strategy, Making Dairy Farming Work for Everyone, have been developed by industry partners. These
describe what is needed to realise the strategy’s 10 objectives. All DairyNZ levy investments are aligned to achieving these targets.
Industry partners for the Strategy for Sustainable Dairy Farming 2013-2020 include: DairyNZ, DCANZ, Federated Farmers and Dairy Women’s Network.
RESPONSIBLE – TODAY AND TOMORROW
TARGETS
INDICATORS
BASELINE
2015 PROGRESS
SNAPSHOT
10. The dairy industry fulfils all
commitments listed in the
Sustainable Dairying: Water
Accord.
Improving on-farm environmental performance
and providing robust evidence of good
stewardship.
None
6 of 10
targets
achieved
36%
11. 80% of New Zealanders
agree dairy farmers are good
stewards of the environment
by 2020.
Percentage of New Zealanders who agree that
dairy farmers are doing all they can to protect the
environment and water quality.
37%
36%
agree
farmers are
committed to
protecting the
environment
ANIMAL
WELFARE
12. 100% of dairy farmers are
compliant with the good
practice animal welfare
guidelines and standards for
dairy farming.
Percentage compliant with minimum standards as
set in codes of welfare.
96%
95%
95% farmers
WORK
ENVIRONMENT
13. By 2020, 90% of dairy farm
businesses have quality work
environments.
Overall measure - percentage of dairy farm
businesses with quality work environments**.
79%
79%
Fair remuneration (percentage of NZ dairy farm
businesses that pay farm assistants and herd
managers more than a benchmark rate)**.
74%
dairy farms
with a
quality work
environment
Safe and healthy workplaces (ratio of ACC
compensation days per worker, per year on NZ
dairy farms compared to all NZ workforce)**.
2.0:1
OBJECTIVES
ENVIRONMENTAL
STEWARDSHIP
Not measured
until 2015
LOCAL
COMMUNITIES
14. 90% of New Zealanders agree
dairy farmers make a positive
contribution to rural and
urban communities.
Percentage of New Zealanders who agree that
dairy farmers are an important part of our
community.
91%
88%
NATIONAL
PROSPERITY
15. By 2020, New Zealand dairy
export earnings are increased
by 55% through adding value
to milk and implementation
of a sustainable milk growth
strategy.
Value of dairy exports*.
$12.3 billion
$13.9 billion
16. 75% of New Zealanders agree
that dairying makes a positive
contribution to their standard
of living.
Percentage of New Zealanders who agree that
the dairy industry's success affects the standard
of living for you and your family.
60%
61%
KEY:
* Three-year average
** Measures are provisional
Improvement from baseline
compliant
with all animal
welfare codes
88%
agree dairy
farmers are
important
in our
community
$13.9 b
value of dairy
exports
61%
agree dairying
affects their
standard of
living
Reduction from baseline
DAIRYNZ ANNUAL REPORT 2014/15
19
LOOKING AHEAD
delivering on industry targets in 2015/16
20
DAIRYNZ ANNUAL REPORT 2014/15
Farm profit
TALENTED PEOPLE
Total 2015/16 investment: $16.9m
Total 2015/16 investment: $6.0m
Key objectives for 2015/16
Key objectives for 2015/16
1. A focus on farm business efficiency:
1. Training opportunities
-- harvesting an extra tonne of feed before
Christmas
-- challenging budgets to operate with farm
working expenses below $3.50/kg MS
-- maintaining herd reproductive performance.
2. Extending a programme to dairy regions
that:
-- eliminates inefficient practices
-- simplifies processes and procedures in the
dairy and the field.
Work with Primary ITO to offer services that
maintain momentum and offer more flexible
training opportunities to fit the farming calendar.
2. Attracting talent
Expand the work programme with secondary
schools to attract high calibre people from rural
and urban communities.
3. School curriculum
Integrate agricultural resources into the secondary
school curriculum.
3. Targeted support:
-- helping sharemilkers and young progressive
farmers operating under conditions of a low
payout.
Environmental stewardship
Total 2015/16 investment: $3.4m
Work environment
Total 2015/16 investment: $2.5m
Key objectives for 2015/16
1. Water Accord
Work will continue to achieve all commitments in
the Sustainable Dairying: Water Accord.
Key objectives for 2015/16
1. Workplace quality
Launch a quality workplace plan that supports
dairy farmers to achieve:
-- a balanced and productive work programme
-- fair remuneration
-- good health, safety and wellness outcomes
-- an effective team environment
-- progressive career options for staff.
2. Reporting environmental progress
A report will show how industry investment in
improving on-farm environmental performance
has led to water quality and/or biodiversity
improvements in five catchments.
3. Public perception
An external engagement plan will be developed
to improve the public’s perception of dairying’s
environmental stewardship.
DAIRYNZ ANNUAL REPORT 2014/15
21
Biosecurity and product integrity
Local communities
Total 2015/16 investment: $17.7m
Total 2015/16 investment: $2.5m
Key objectives for 2015/16
Key objectives for 2015/16
1. New biosecurity system
1. Rosie’s education
A pre-border/border biosecurity system will be
Work will continue to increase the number of
established that identifies key risks to the dairy
children, parents and teachers participating
industry and minimises their risk of incursion.
in the Rosie’s Education and farm visit
2. Response system
A response capability will be developed to
programmes.
2. Public awareness
minimise the consequences of biosecurity
An external engagement plan will be developed
incursions to the dairy sector.
in 2015/16 to increase public awareness of
dairying’s contribution to the wellbeing of local
communities.
National prosperity
Total 2015/16 investment: $9.2m
Industry information systems
Total 2015/16 investment: $5.1m
Key objectives for 2015/16
1. Freshwater policy
Key objectives for 2015/16
Work will continue with regional councils and
central government to ensure the National
1. Animal database
Policy Statement for Freshwater Management is
Further improvements to breeding worth will
implemented wisely and the concerns of dairy
be implemented this year – including improved
farmers taken seriously.
trait estimations for fertility and an updated
economic value for body condition score.
2. Greenhouse gas technologies
A detailed plan will be prepared by the Pastoral
2. Pasture selection tool
Greenhouse Gas Research Consortium on how
The Forage Value Index continues to evolve,
to speed up the commercialisation process of
with the introduction of a nutritive value trait
greenhouse gas mitigation technologies.
in 2015/16 and further research to develop a
persistency trait.
22
DAIRYNZ ANNUAL REPORT 2014/15
Research and development
Animal welfare
Total 2015/16 investment: $15.0m
Total 2015/16 investment: $2.4m
Key objectives for 2015/16
Key objectives for 2015/16
1. Cow fertility project
1. Awareness and skills
The foundation calves for high and low
This year, DairyNZ will continue delivering
fertility herds will be born in spring 2015.
practical workshops to help farmers improve
This milestone aims to crack the biology and
their awareness of animal welfare expectations
genetics of cow infertility. The calves will
and develop the necessary skills to achieve
be measured for traits to predict long-term
these. DairyNZ will work with veterinarians,
fertility. These animals will be assessed as
training organisations and farmer networks to
heifers and then in-milk through to 2020.
extend the programme’s reach.
2. Reducing nitrate leaching
2. Animal Welfare Act and codes of practice
This year, the Forages for Reduced Nitrate
DairyNZ will work with the Ministry for Primary
Leaching programme will validate models
Industries and other industry stakeholders
to predict urinary nitrogen (N) surplus from
to support the implementation of the 2015
different forages. These models will design
Animal Welfare Act and ensure amendments
the next set of field trials and new systems
to codes of welfare are practical and evidence-
for testing.
based.
3. More efficient animals
3. Lameness
The implementation of residual feed intake
The Healthy Hoof lameness tool will be
(RFI, or feed conversion efficiency) in breeding
revamped to deliver a more effective
worth requires validation that the performance
prevention programme for launch in 2016/17.
of heifer calves is predictable from the
performance of bull calves in the feeding stalls.
This is the genetic correlation between RFI in
bulls and heifers, and is required to screen
elite young sires for RFI. Research this year, in
collaboration with genetics companies LIC and
CRV, will test this correlation.
DAIRYNZ ANNUAL REPORT 2014/15
23
2014/15 projects
24
DAIRYNZ ANNUAL REPORT 2014/15
Farm profit
BOP Focus on Dairying
This group aims to influence farmers in the Bay of Plenty
to make their farms more profitable and sustainable by
setting up a focus farm which demonstrates industry
Being profitable and financially resilient to
the volatility of both markets and climate is
fundamental to sustainable dairy farming.
‘best practice’ showing how to improve performance to
meet their goals, within their resources. The farm will
provide local climate and pasture growth data relevant
to their district, regional benchmarking information
on key performance indicators, and give contributing
Collectively, profitable dairy farming is closely aligned
farmers feedback on their performance.
with the cost-competitiveness of New Zealand dairy
farming internationally and drives long-term industry
growth. However, increases in farm input costs and
higher debt burden have eroded the profit gains from
productivity and some dairy farms are exposed to
Providers: BOP Focus On Dairying Charitable Trust
Funding: $66,000 (excl GST)
significant risk.
Industry investment into farm profit aims to improve
the profitability and resilience of dairy farming through
efficiency gains on-farm.
Centre of Excellence in Farm Business
Management
Through a joint venture, Massey and Lincoln Universities
will strengthen linkages between academics, rural
professionals and farmers to grow management capability.
A Centre of Excellence in Farm Business Management,
combining capability from Massey and Lincoln Universities
operating under the Agri One Ltd and Partnership for
Excellence (PfX) frameworks, will deliver research and
education that will enhance the understanding of farm
business management and advocate global best practice.
Providers: Agri One Ltd
Funding: $774,000 (ex GST). This includes co-funding of
$624,000 by the Ministry for Primary Industries – Primary
Growth Partnership.
CRM operational
This project aims to enhance DairyNZ’s Client Relationship
Management (CRM) system to develop stronger and
longer-lasting relationships between DairyNZ, farmers and
rural professionals, through targeted, timely and relevant
messages, tools or products. By reducing the amount
of different information sets or duplicated data within
DairyNZ, control will be maintained, costs reduced and
there will be more efficient access to information.
Providers: DairyNZ Ltd
Funding: $300,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
25
Farmer networks implementation
This project develops a greater understanding of the
Hauraki Plains Focus Farm and related
projects
farming networks, social networks and business priorities
The P3 Trust’s mission statement is ‘to increase the
of farmers, enabling DairyNZ to better tailor its reach to
wealth, value and satisfaction of dairy farmers on the
and support of sectors of the dairy farming community.
Hauraki Plains’. This will be achieved through objectives
Through farmer interviewing and network analysis, the
over three years. These objectives are to adopt and
aim this year is to develop farmer networks into a tool
demonstrate farm systems that increase profit through
used by DairyNZ to reach and engage with farmers more
production, income and reduced costs. The project also
effectively.
aims to hold and demonstrate values of sustainability
and social responsibility, through attention to people and
Providers: DairyNZ Ltd
human resources, health and safety and environmental
issues.
Funding: $236,000 (excl GST)
Providers: P3 Dairy Trust
Funding: $58,000 (excl GST)
FeedRight: Improving farm decision-making
on pasture-based dairy farms
This project aims to build knowledge and develop
resources to support profitable pasture and
InCalf
supplementary feed systems, along with enhancing the
This project aims to build farmer demand for InCalf
skills of those providing nutritional or feed advice within
consultancy services, with the aim of improving the
the dairy industry. This work will ensure that pasture
reproductive performance of dairy herds. Support
continues to be recognised as the backbone of profitable
activities, including a submission rate campaign, will
dairy farm systems in New Zealand and that supplements
increase farmer demand for InCalf trained advisors and
are used effectively to enhance homegrown feed use
achieve on-farm change in management areas that
and profitability.
influence reproductive performance.
Providers: DairyNZ Ltd
Providers: DairyNZ Ltd
Funding: $290,000 (excl GST)
funding: $690,000 (excl GST)
Financial capability
Intensive adoption programme – pilot
This project aims to establish basic financial skills in dairy
This project aims to improve the rate of dairy farmers
farm teams and stimulate demand for further financial
adopting advice and technology, ultimately leading to
management skills. The project works in a joint approach
improved farm business performance. This is a pilot
with other industry stakeholders to provide support and
which will develop the groundwork for a scaled-up
resources to farmers throughout their progression in the
project in 2015/16.
industry, particularly those at management decisionmaking levels. It also seeks to support and develop a
Providers: AgFirst Waikato Ltd
strong business ethos and practice among dairy farmers.
Providers: DairyNZ Ltd
funding: $450,000 (excl GST)
26
DAIRYNZ ANNUAL REPORT 2014/15
Funding: $106,000 (excl GST)
Labour productivity: Milksmart
Maori development
The Milksmart programme develops and delivers
This project aims to assist Mãori to improve their
resources to assist farmers to evaluate their current
overall farm profitability, both in productivity of the
milking performance, identify opportunities to improve
farms and capability of the people involved. Mãori
milk harvesting efficiency and implement changes.
have a substantial investment in the New Zealand dairy
industry and contribute approximately 10 percent of
Providers: DairyNZ Ltd
New Zealand’s national milk production. There are
excellent opportunities for significant and sustainable
Funding: $215,000 (excl GST)
growth within existing operations, as well as recognising
untapped potential.
Providers: DairyNZ Ltd
Large dairy farm businesses
Funding: $400,000 (excl GST)
More than 20 percent of dairy farming entities now
own or manage more than one dairy farm, and 45
percent are owned by a farming company. This project
works with owners of multiple dairy farms, their farm
supervisors and managers, to improve management and
governance practices in dairy farm businesses. This will
NMAC delivering SmartSAMM to New
Zealand dairy farmers
help these businesses become more resilient and ensure
This project helps farmers and rural professionals
the farm team management is empowered to fulfil its
manage on-farm mastitis risks and close any
responsibilities.
performance gaps. The project also fosters collaboration
between the different rural service providers responsible
Providers: DairyNZ Ltd
for mastitis and milk quality control in New Zealand.
Overall it aims to improve milk quality by reducing the
Funding: $350,000 (excl GST)
incidence of mastitis (sub-clinical and clinical) on New
Zealand dairy farms.
Providers: DairyNZ Ltd
Lifting the financial capability of our dairy
farm businesses through New Zealand's
dairy women
Funding: $535,000 (excl GST)
The Dairy Women’s Network (DWN) provides
professional development to dairy women. In
conjunction with DairyNZ and network partners, DWN
delivered two financial dairy modules to DWN members
On-farm change through DairyNZ’s regional
backbone
through regional training days. Each module included
This aims to help farmers run more profitable,
two hours of targeted training on topical issues. Topics
sustainable and competitive farm businesses, by
included business goal setting and contract negotiations.
identifying opportunities to improve their own farms;
making progress on industry priorities, which farmers
Providers: Network for Women in Dairying Trust
may not currently recognise as important; and improving
the policy environment in which dairy farming operates.
Funding: $158,000 (excl GST)
The regional ‘backbone’ comprises nine regional
teams across the country, with other DairyNZ teams
(development and research), regional partners and
stakeholders.
Providers: DairyNZ Ltd
Funding: $8,080,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
27
Operational efficiency through business
improvement
Relationship and product management (RPs)
This project will help make dairy farmers more efficient
trained InCalf advisors that supply consultancy services
by providing them with business improvement tools
to farmers, with the aim of improving the reproductive
tailored specifically for the dairy industry. These tools
performance of dairy herds. A heifer rearing strategy will
will include practical solutions to improve operational
be delivered in partnership with industry stakeholders,
efficiency and will utilise existing resources within the
including InCalf trained advisors.
This project’s purpose is to maintain a network of
dairy industry and other sectors.
Providers: DairyNZ Ltd
Providers: PeopleMad Ltd
Funding: $294,000 (excl GST)
Funding: $100,000 (excl GST)
P3 Dairy Push
Smaller Milk and Supply Herds (SMASH)
events
Based on the success of the Dairy Push project in South
The SMASH events aim to create opportunities where
Waikato, this project aims to lift the profitability of
smaller dairy herd farmers can be inspired, motivated
the participant group by $500/ha in three years, and
and educated to achieve the most effective use of their
demonstrate achievement of individual farm business
resources. The events also communicate information
goals through strategic planning and benchmarking. It
and share ideas, specifically for meeting the farmers’
will build the capability of these farmers to use strategic
particular needs and requirements. Farmers can
and tactical planning tools to create more resilient dairy
explore options to assist with running a profitable and
farm businesses.
sustainable business, and in realising their goals and
those of the industry as a whole.
Providers: P3 Trust
Providers: Smaller Milk and Supply Herds (SMASH)
Funding: $89,000 (excl GST)
Funding: $193,400 (excl GST). This is funded by the
Ministry for Primary Industries – Primary Growth
Partnership.
Train the Trainer – whole farm assessment
and planning
This project aims to develop capability and industry
standards for farm systems and rural professionals
Southland Demonstration Farm
involved with people management on-farm, through
This farm collects and disseminates relevant knowledge
tools and processes, training and accreditation schemes.
in order to find and demonstrate ways to help a
As a result, the dairy industry’s rural professional
prosperous, growing dairy industry co-exist with a
network will be better equipped to identify key risks
healthy, well-managed local environment and economy.
and opportunities on farm, develop business plans,
Southland Demonstration Farm exists to strengthen
strategically analyse change options and provide support
the dairy industry of southern New Zealand through
for implementation.
leadership; innovation and creativity around problemsolving; research applicable to local farming situations;
Providers: DairyNZ Ltd
Funding: $621,000 (ex GST). This includes co-funding of
$229,000 by the Ministry for Primary Industries - Primary
gathering of local climate, soil and pasture growth data
and open sharing of all the information accumulated.
Providers: Southland Demonstration Farm Ltd
Growth Partnership.
Funding: $150,000 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
System choice
This aims to provide farmers with a decision framework
Waipa Dairy Collective – managing risk and
building resilient businesses
to assess potential capital investment in off-paddock
The Upper Waipa Catchment is a vulnerable landscape,
facilities, specifically cow barns and housing, and allow
in a sensitive catchment, and sound soil management
them to consider the implications on all aspects of their
is key to the region’s long-term sustainability. Typical
system, including environment, risk, labour, skills and
business risks are lowered productivity, nutrient losses
returns. This framework will form the basis of a broader
to waterways and higher than average dairy herd
requirement to support decisions regarding system choice
wastage. There is a shortage of local information about
and investment in infrastructure, feed and system design.
what types of dairy farm system suit this geography
best. This group aims to improve understanding of the
Providers: DairyNZ Ltd
present levels of environmental, animal and financial
performance in practice in this region.
Funding: $780,000 (excl GST)
Providers: Intelact Ltd
Funding: $48,750 (excl GST)
System optimisation – pasture management
This project helps farmers profitably increase the amount
of homegrown feed eaten that is converted into milk,
through improved pasture management, growth and
Website rebuild (stage two)
utilisation across all farm systems. This will be achieved
This project aims to complete the final items for last
through establishing the value of pasture more clearly
year’s update to the DairyNZ website. This includes
for farmers, building resources to help manage pastures
rebuilding the Farmwatch section, rebuilding the NZAEL
better and creating new ways to engage with farmers
section and the cultivar selector data import function,
in decision-making around pasture. In addition, this
adding page template functionality and applying
programme also supports the DairyNZ partner farm
usability fixes.
network and will work with these farms to improve the
quality of demonstration practices.
Providers: DairyNZ Ltd
Providers: DairyNZ Ltd
Funding: $46,500 (excl GST)
Funding: $1,081,000 (excl GST)
West Coast Monitor Farm
Tactics for Tight Times
This project aims to develop a database of reliable
In light of the reduced milk price, this project aims to
the West Coast; demonstrate the benefits of regular
support dairy farmers to be in the best possible position
monitoring and feed wedge development on day-to-day
and to set up for the 2015/16 season and beyond. This
and strategic decision-making; and develop a database
includes the considerations of financial management,
of seasonal pasture quality and its benefits to farm
productivity, animals, environment and personal health/
management decisions.
pasture growth rates for four dairying regions on
wellbeing.
Providers: West Coast Focus Farm Advisory Board
Providers: DairyNZ Ltd
Funding: $24,000 (excl GST)
Funding: $144,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
29
Talented
people
Improving dairy production capability
This project is a co-investment by DairyNZ with Massey
University and provides joint funding for a Professor of
Dairy Production Systems based at Massey University. The
ongoing funding of this position will boost the research,
teaching and training capability in dairy production and
dairy systems, and provide stronger alignment between
Talented people have the skills and
motivation to succeed in the dairy industry,
with the most profitable and sustainable
dairy farms having good management
practices appropriate to the farm system.
Massey University academics and the dairy industry.
Providers: Massey University
Funding: $80,000 (excl GST)
Dairy farming’s growth has stretched the availability
of skilled people as farm systems have diversified and
expanded into new regions, with farmers facing increased
Developing rural youth
complexity and larger businesses. More than ever, highly
Growing leadership of the dairy industry is key to
skilled and motivated people are essential in on-farm
ensuring a positive and secure future for the industry.
roles, along with advisory, education and science roles.
This project addresses expanding the leadership talent
Attracting talented and motivated people from a wider
talent pool, providing excellent training and development
opportunities, and retaining those people in the dairy
pool, and attracting and retaining young people from
the wider agricultural industry, by expanding their
leadership training and opportunities.
industry is a key part of this industry investment.
Providers: New Zealand Young Farmers
Funding: $80,000 (excl GST)
Science interns
This project aims to increase the recruitment of
suitable graduates into the dairy industry by offering
the opportunity to participate in research projects and
foundation training within DairyNZ and AgResearch.
Providers: DairyNZ Ltd
Funding: $150,000 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
Getting into dairying
Leadership pipeline
This project promotes the dairy industry to New Zealand
This project’s aim is to grow the pool of talented
youth to attract them to the industry, either on-farm or
individuals working in the industry. This will be achieved
in the service and support sector. The project aims to
by growing the number of young people engaged with
assist the dairy industry to attract, develop and retain
the industry through interactive activities and learning
highly skilled, motivated people throughout the dairy
experiences. Initiatives such as mentoring and learning
industry (farm managers, scientists, research technicians
from school age through to the Rural Business Network
and rural professionals).
will support the individual’s development.
Providers: DairyNZ Ltd
Providers: New Zealand Young Farmers
Funding: $915,000 (excl GST)
Funding: $759,000 (ex GST). This includes co-funding of
$558,000 by the Ministry for Primary Industries (Primary
Growth Partnership) and New Zealand Young Farmers.
People and skills measurement
This project aims to consolidate and align investments
and activities associated with measuring how well the
New Zealand Dairy Industry Awards
primary industry labour market is functioning. This
DairyNZ, together with other sponsors, supports the
includes monitoring processes to affect forecasting
Sharemilker/Equity Farmer of the Year, Farm Manager
changes within the labour market. Within the objective
of the Year and Dairy Trainee of the Year competitions,
above, a particular focus is developing a robust
with the aim of raising awareness and understanding of
methodology (a ‘scorecard’) to measure progress
the value of New Zealand’s dairy industry, along with
towards three dairy industry strategy targets under
promoting business excellence.
Talented People and Work Environment.
Providers: New Zealand Dairy Industry Awards Trust
Providers: Scarlatti Ltd
Funding: $155,000 (excl GST)
Funding: $100,000 (excl GST)
DairyNZ chair in farm business management
Primary Industry Capability Alliance
Continued improvements in dairy business performance
This investment supports a professorial chair in dairy
is essential if New Zealand is to capitalise on changing
farm management, an appointment at Massey University.
market trends and associated emerging opportunities.
The aim is to promote a coherent programme of
Developing the people within dairying, with increased
scholarship and research, leading to provision of research
numbers and improved skill levels, are central to
and trained staff at all levels of dairy farm management.
capturing this opportunity. The formation of a Primary
Industry Capability Alliance – PICA – is how the dairy
Providers: Massey University
industry, along with the other primary industries, plans
to meet these challenges.
Funding: $40,000 (excl GST)
Providers: Primary Industry Capability Alliance Inc
Funding: $150,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
31
Primary ITO funding
DairyNZ and the Primary ITO are jointly developing
Establishment of a professional land
manager network
capable people to grow the productivity, profitability
This project aims to help farm managers to apply
and sustainability of New Zealand’s dairy industry.
professional skills and knowledge, and meet the
The Primary ITO will contribute to this objective by
standards expected by customers, consumers and
developing qualifications and programmes – identifying
communities to achieve excellence in farm management.
dairy workers’ skill gaps, and by promoting, brokering
and supporting training that meets the volume and mix
of competencies for the dairy job roles.
Providers: Primary Industry Training Organisation Inc
Providers: Agriculture Services Ltd
Funding: $397,000 (ex GST). This includes co-funding of
$289,000 by the Ministry for Primary Industries (Primary
Growth Partnership) and Agriculture Services Ltd.
Funding: $1,500,000 (excl GST)
Increasing farm performance through
farm business management training
This project aims to increase the financial and resource
management skills of dairy farmers in the Waikato
and the rest of New Zealand. In particular, it aims to
increase uptake of formal training by farm managers and
owners. Research suggests that dairy farms with better
business management practices are more profitable, with
potential benefits of over $1000/ha.
Providers: Scarlatti Ltd
Funding: $1,000,000 (excl GST)
Centre of Excellence for Agricultural
Science and Business Programme
This programme’s aim is to deliver an education
programme to secondary school students that will
stimulate careers in agricultural science and business.
This will meet the industry’s long-term needs for
highly skilled and motivated young people within the
agriculture sector.
Providers: Waikato Anglican College Trust
Funding: $150,000 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
WORK
ENVIRONMeNT
Quality work environment
This project supports employers and employees to
build quality work environments on dairy farms. It
incorporates working with other industry stakeholders,
developing and maintaining tools and resources,
monitoring and evaluation of the impact of good people
management, and working with farmers. The project
Responsible dairy employers engender a
pride in the dairy industry that enhances
public reputation and increases the chances
of attracting and retaining talented people.
The quality of work environment – the physical
workplace, employment conditions and the employment
relationship – affects productivity and a wide range of
aims to support and encourage all people on-farm, but
particularly employers and managers, to view people as
an investment and a quality work environment as the
standard for dairy farms in New Zealand.
Providers: DairyNZ Ltd
Funding: $1,210,000 (excl GST)
outcomes for people working there.
It is vital to the long-term sustainability of dairy farming
that a commitment to high quality work environments
be more widely adopted. Industry investment will
Human capability policy
help create farm work environments that are safe and
This project will establish proactive and reactive policy
use technologies and business practices that achieve
management of issues impacting on the strategy
continuous productivity improvements.
objectives of ‘talented people’ and ‘quality work
environment’, including the regulatory frameworks
for health and safety, employment standards and the
funding framework for tertiary education.
Providers: DairyNZ Ltd
Funding: $300,000 (excl GST)
Farmer wellness and wellbeing
This programme addresses the health needs of the
farm workforce, before they limit farm performance,
by acting on the dairy-specific factors that contribute
to work-related injury, chronic illness and burnout. The
project will also broker joint objectives with other key
stakeholders.
Providers: DairyNZ Ltd
Funding: $437,000 (ex GST). This includes co-funding of
$337,000 by Ministry for Primary Industries - Primary
Growth Partnership.
DAIRYNZ ANNUAL REPORT 2014/15
33
ENVIRONMENTAL
STEWARDSHIP
Upper Waikato SUSTAINABLE MILK PLANS
This project builds on existing dairy industry work
programmes focused on continually improving the
environmental performance of dairy farmers on a
national scale. This project proposes to accelerate the
rate of environmental performance gains in the Upper
Waikato catchment through the delivery of audited
Most dairy farmers work hard to leave their
farm in better condition than when they
took it on, with a strong sense of pride in
their land and the improvements they have
made to its natural capital.
Sustainable Milk Plans, along with one-on-one advice
and supporting activities, tools and resources.
Providers: DairyNZ Ltd
Funding: $350,000 (excl GST)
Like most New Zealanders, dairy farmers are becoming
increasingly aware of cumulative effects of changes in
land use. The duty of individual farmers and landowners
the optimal environmental footprint.
Implementing the Sustainable Dairying:
Water Accord
Industry investment in environmental stewardship will
The purpose of the Sustainable Dairying: Water Accord is
is to operate efficiently and responsibly, thereby having
give farmers the tools, insights and knowledge to take
leadership in environmental management on their farm,
in their community and beyond.
to enhance the overall performance of dairy farming as it
affects freshwater, by committing to good management
practices expected of all New Zealand dairy farmers. It
also aims to record pledges by the dairy sector, with the
support of others, to assist and encourage dairy farmers
to adopt those good management practices and to
monitor and report progress. This project sets out the
process for accord implementation and reporting.
Providers: DairyNZ Ltd
Funding: $200,000 (excl GST)
Environment capability development
DairyNZ, with industry partners, have developed
comprehensive programmes to improve capability in the
effluent and nutrient industries servicing dairy farms. This
will lead to all dairy farms having a fit-for-purpose effluent
system and an effective effluent management plan.
Through robust accreditation and monitoring systems, this
programme has increased capability of nutrient management
advisors and established knowledge resources, planning
tools, training programmes and quality assurance systems.
Providers: DairyNZ Ltd
Funding: $1,841,000 (ex GST). This includes co-funding
of $1,067,000 by the Ministry for Primary Industries –
Primary Growth Partnership.
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DAIRYNZ ANNUAL REPORT 2014/15
Dairy Environment Leaders
This project aims to develop an active network of highly
effective regional dairy farming leaders equipped to lead
and engage on environmental matters within, and on
behalf of, the dairy industry.
Providers: DairyNZ Ltd
Funding: $200,000 (excl GST)
Managing greenhouse gas emissions
This project aims to provide the knowledge and tools
required for developing i) a network of certified
greenhouse gas (GHG) consultants for the dairy
industry and ii) a framework for rewarding farmers
for any GHG reductions made. The knowledge and
tools will be used by consultants to support farmer
decisions about GHG management – providing farmers
and the industry with increased confidence in GHG
management options on-farm.
Providers: AgResearch Ltd
Funding: $200,000 (ex GST). This includes co-funding of
$116,000 by the Ministry for Primary Industries – Primary
Growth Partnership.
Waikato River restoration strategy
This project is a partnership between DairyNZ, the
Waikato Regional Council (WRC) and Waikato River
Authority (WRA) and will provide the long-term
foundation and framework for other organisations
involved with Waikato River restoration activities. The
strategy will identify and prioritise restoration activities
over the next five to 15 years, to achieve the vision and
strategy for the Waikato-Waipa River catchments.
Providers: DairyNZ Ltd
Funding: $100,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
35
Biosecurity
and product
integrity
Biosecurity, OSPRI Management and
Southern Swedes
The objective of this project is to ‘enhance the assurance
levels of New Zealand’s biosecurity and product
integrity’. This year the work covers two aspects – the
primary focus being biosecurity, which encompasses
OSPRI management with a focus on NAIT and TBfree
NZ, as well as DairyNZ’s engagement in foot and mouth
disease preparedness work with MPI. A secondary
project relates to an adverse event in the southern
New Zealand has a reputation for
excellence in dairy export markets, but
the dependence on international markets
means it is vital to maintain internationallycredible product integrity criteria.
regions with issues relate to feeding swedes.
Providers: DairyNZ Ltd
Funding: $750,000 (excl GST)
Product integrity can include food safety, method of
production and animal welfare standards, to meet
the expectations of international customers. Industry
investments are also made to manage existing diseases
and avoid further biosecurity incursions which could
cause massive financial and social harm.
Vigilance and a close coordination between all industry
stakeholders is essential to protect and enhance New
Zealand’s reputation for excellent dairy product integrity.
TB National Pest Management Strategy
This investment aims to control the TB spread through
disease management - detecting TB within herds through
an extensive TB testing programme. It also completes
wild animal (vector) control to eliminate TB from
wildlife, particularly in possums, as the main carrier and
transmitters of the disease to farmed cattle and deer.
Lastly, this work covers movement control - minimising
the risk of infection being spread between herds.
Providers: OSPRI
Funding: $15,500,000 (excl GST)
36
DAIRYNZ ANNUAL REPORT 2014/15
NATIONAL
PROSPERITY
External engagement
The overall objectives of this project are to foster a
network of influential leaders and move to a more
strategic relationship with them that ensures a good
understanding of the dairy industry. The second
objective is for DairyNZ to be known and trusted by
external stakeholders, to work collaboratively with them
For many years, dairy farming has been a
key driver of the New Zealand economy,
contributing to more than 35 percent
of export earnings. The importance of
dairying to the national economy is widely
recognised by New Zealanders, although
many do not see how these export earnings
directly benefit their day-to-day lives.
and others to identify issues (environmental, social and
Considerable scope exists for dairying to contribute more
International dairy federation
to the economy through increased production, higher
economic), identify options and solve problems (where
dairying is contributing to them).
Providers: DairyNZ Ltd
Funding: $330,000 (excl GST)
value milk and value-added dairy processing. The dairy
The New Zealand National Committee of the
industry is committed to sustainable development of
International Dairy Federation (IDF NZ) is responsible
dairy farming to enhance New Zealand’s prosperity –
for coordinating the country’s dairy sector input and
developing the industry to meet present needs without
influence on issues relating to the IDF. It is important
compromising future generations.
that the New Zealand dairy industry can significantly
influence the IDF because of its role in coordinating
Industry investment in national prosperity aims
global dairy sector input into food standards, methods
to produce new knowledge, skills, practices and
of analysis and various policies, guidelines and practices.
partnerships that will help dairy farmers and the
These include good farming practices, nutrition,
companies they supply to develop responsibly and
environment, food assurance, milk and milk product
increase dairying’s contribution to the national economy.
composition and sustainability. Such standards, policies
and guidelines have a significant effect on the ability of
the New Zealand dairy industry to operate in the global
marketplace.
Providers: International Dairy Federation NZ (IDF NZ)
Funding: $318,000 (excl GST)
National and regional economics
This project will provide economic analysis, interpretation
and commentary on issues affecting the sustainability
and profitability of the New Zealand dairy industry. The
aim is to quantify the effects of possible policy changes
on farmers, the dairy industry, catchments, regions and
the national economy.
Providers: DairyNZ Ltd
Funding: $1,355,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
37
Public perception surveys
Designer Milks
The New Zealand dairy industry is a vital part of the
This project is developing a range of high value,
country’s economy. In turn, it is important the industry
differentiated dairy-based products through unique
is aware of how it is viewed by the public, and what
farm management systems to produce milk with
they consider to be the issues surrounding dairy farming,
specific characteristics or process changes within the
its impact on the environment, animal welfare and the
manufacturing plant. Farmers supplying milk when using
economy. This research is conducted regularly so that
the unique farm management systems receive premiums.
DairyNZ understands the public’s perception of dairying
and can take steps to address the issues, thereby
Providers: Synlait Milks Ltd
building public support for the industry.
Providers: DairyNZ Ltd
Funding: $150,000 (ex GST). This is funded by the
Ministry for Primary Industries (Primary Growth
Partnership) and Synlait Milks Ltd.
Funding: $170,000 (excl GST)
Dairy industry engagement in the setting
and management of water quality limits
The progressive definition of water quality and quantity
limits in catchments throughout New Zealand is a
positive step towards improving the management of
our freshwater resources. The process brings with
it significant challenges for the sustainability and
competitiveness of the dairy industry. In responding to
these challenges, the dairy industry is working to develop
a range of systems, resources and capability building
programmes that will mitigate risks to the industry and
support farmers through what is the largest shift in
resource management in a generation.
Providers: DairyNZ Ltd
Funding: $4,965,920 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
Local
communities
Community impact sponsorships
Through the sponsorship of industry events and
conferences, DairyNZ helps facilitate education and
knowledge sharing of opportunities and issues relevant
to New Zealand dairy farmers. Industry events help
increase farmers’ access to new knowledge, networking
and opportunities for discussion, debate and information
Enhancing local communities is all about
dairy farmers’ contribution and involvement
in their communities.
Strong, vibrant and resilient rural communities are good
for farmers because they make dairy farming a more
attractive career option, and keep skilled and motivated
people living and working in rural areas.
sharing. Successful sponsorships will also help create
future leaders for the industry and promote and
encourage best practice and excellence within the
farming community.
Providers: multiple providers, administered by DairyNZ
Funding: $317,000 (excl GST)
Investment in projects which benefit local communities
will help the dairy industry achieve greater reach and
involvement in communities through dairy farmers being
encouraged and assisted to become active
community members.
DairyNZ Farmers’ Forum
The Farmers’ Forum is an annual event run by DairyNZ
for levy-paying dairy farmers, which alternates between
a large, two-day national event (held at Mystery Creek
in May 2014) and a series of smaller, one-day regional
events every second year. 2015 hosted regional
events. The events provide an opportunity for DairyNZ
management and research teams to update farmers
on how their levy money is spent, report progress on
research projects and profile the DairyNZ-developed tools
and services to assist farmers in managing their business.
Providers: DairyNZ Ltd
Funding: $115,000 (excl GST)
Regional women’s network – adding value
to the dairy business
The Dairy Women’s Network (DWN) has grown
exponentially over the last three years and now has
a database with 5000 members and 30 regional
groups. This project will allow the DWN to continue to
consolidate and build capacity to enable greater reach
and engagement with dairy farmers and to support
delivery of the dairy industry strategy.
Providers: Dairy Women's Network
Funding: $310,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
39
Leadership and governance development
for dairy women
Delivery of the ‘Advocacy, Influence and
Outcomes’ leadership programme
This project supports dairy women to reach their
The Federated Farmers’ leadership development
leadership potential. By working with Dairy Women’s
programme ‘Advocacy, Influence and Outcomes’
Network (DWN), two talented and committed women
programme builds specific capabilities and skills in
are identified to take on leadership and/or governance
farming. Its regional leaders also enhance collaborative
roles in the industry and community. These women
engagement and advocacy on issues, policies, rules,
would participate in Escalator – a 10-month programme
requirements and compliance that impact on and are
for agri-women. An additional five dairy women
essential for the sustainability of a vibrant and profitable
will attend a two-day self-development programme,
farming sector and rural communities.
specifically designed for agri-women, to help reframe
their skillset and boost their confidence.
Providers: Federated Farmers of New Zealand
Providers: The Agri-Women's Development Charitable
Funding: $55,000 (excl GST)
Trust (AWDT)
Funding: $50,000 (excl GST)
Kellogg Rural Leaders Programme
Sound leadership skills are critical in the success of a
Children’s educational campaign
rapidly intensifying and sustainable New Zealand dairy
This project aims to increase understanding of the
developing associated rural communities and services.
dairy industry among school children, their families
The Kellogg Rural Leaders Prorgramme provides
and teachers. The website www.rosieseducation.co.nz
leadership development for people living in and working
caters to teachers by providing information about the
with rural communities throughout New Zealand. This
industry and its importance of the national economy. It
three-part programme includes training in leadership
also offers practical and creative teaching materials using
skills, building self-confidence and awareness of wider
dairy farming as a context for learning. The website
industry issues nationally and internationally, and
www.rosiesworld.co.nz is where children can learn about
building networks.
industry. They are also important for maintaining and
dairy farming and the industry.
Providers: Lincoln University
Providers: DairyNZ Ltd
Funding: $65,000 (excl GST)
Funding: $1,422,000 (excl GST)
Pathfinder: a leadership programme for
women that develops confidence
Nuffield Scholarships
For 60-plus years, Nuffield Scholarships have developed
leaders through its programme. Nuffield scholars return
This is a six-month regional programme with self-
to New Zealand from four to six months of international
learning and coaching as a joint venture between the
travel with a better understanding of the strengths and
Agri-Women’s Development Trust and Dairy Women’s
weaknesses of New Zealand within the global context.
Network, aimed at developing potential agricultural
Scholars also build their own personal development plan
leaders for their businesses and community.
to determine what they want their industry leadership
roles to be over the next three years.
Providers: Dairy Women's Network
Providers: Nuffield New Zealand Farming Scholarship
Funding: $45,000 (excl GST)
Trust
Funding: $85,000 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
Industry
information
systems
Forage value – operational
This project aims to develop, implement and enhance a
comprehensive system for evaluating and communicating
the economic value of perennial and short-term ryegrass
cultivars to dairy farm businesses. As a result, farmers
will be able to robustly select cultivars to maximise
on-farm profitability. The evaluation system will also
send clear signals to plant breeders regarding the traits
of importance to dairy farmers, the economic value
of changes in trait values and provide a framework
Farmers are able to make better decisions
and obtain greater value from commercial
products and services when accurate onfarm information is available – providing
the motivation for on-farm data collection.
As a result, dairy farms are becoming
increasingly data-rich environments.
for tracking the rate of genetic gain in pasture plant
Collective industry investment will help identify and
Economics – dairy industry datacentre
develop priorities for farmers, commercial companies
material.
Providers: DairyNZ Ltd
Funding: $265,000 (excl GST)
and industry organisations, to create common industry
This work aims to provide economic analysis,
information systems.
interpretation and commentary on a broad range of
This work will involve wider collation and use of data
for on-farm and industry purposes, including the
potential to expand traditional information systems with
new areas such as nutrient management and pasture
issues affecting dairy farm profitability, sustainability and
competitiveness.
Providers: DairyNZ Ltd
improvement.
Funding: $320,000 (excl GST)
Animal evaluation transition
This project will transition the Animal Evaluation function
from LIC to DairyNZ’s subsidiary New Zealand Animal
Evaluation Limited (NZAEL). The objectives include the
ability to extract data from the Dairy Industry Good
Animal Database (DIGAD), run animal evaluation models
and produce sire and cow genetic indices for the New
Zealand dairy industry.
Providers: DairyNZ Ltd
Funding: $1,600,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
41
Dairy industry data network – herd test
protocols
National breeding objectives – information
delivery
This will develop protocols for the data collection
This project aims to provide the most up-to-date genetic
processes from automated devices installed in New
information on dairy sires for improving farmers’ herds.
Zealand farm dairies and distributed milking systems
This is achieved by the management of the National
(DMS) to be submitted, via a certified herd tester, to the
Breeding Objective, by New Zealand Animal Evaluation
National Animal Evaluation Database. The protocols will
Limited (NZAEL), which aims to ‘identify animals whose
form part of the standards for dairy herd testing, which
progeny will be the most efficient converters of feed
will be updated as part of this project.
into farmer profit’. This management entails updating
economic information related to the breeding objective,
Providers: DairyNZ Ltd
routine genetic evaluation runs and updating genetic
trait evaluations as new information becomes available
Funding: $110,000 (excl GST). This is funded by the
Ministry for Primary Industries – Primary Growth
Partnership.
for the national genetic evaluation system. It also
includes active participation in Interbull activities.
Providers: New Zealand Animal Evaluation Ltd
Funding: $850,000 (excl GST)
New Zealand Animal Evaluation Ltd
operations and research
Genetic gain in dairy cattle has a proven track record for
delivering higher productivity and profitability to farmers.
Dairy industry network data standards
The NZAEL-owned $BW system provides the industry
This project aims to develop the links between
measure for genetic gain. Maintaining and improving
commercial, government and industry databases that
the $BW system and the underpinning phenotypic data,
will assist all parties to improve advice to farmers. Key
genetic research and delivery systems is a vital part
outcomes include developing further data interchange
of achieving the industry targets. This project ensures
standards that reduce the cost and rework for
that NZAEL applies robust and world-leading science
exchanging data, and which link to other dairy industry
to animal evaluation, thereby ensuring optimal rates of
programmes (herd testing, industry good animal
genetic gain are achievable.
database, farm analysis and business improvement).
Providers: New Zealand Animal Evaluation Ltd
Providers: Rezare Systems Ltd
Funding: $1,410,000 (excl GST)
Funding: $138,000 (ex GST). This includes co-funding of
$79,000 by the Ministry for Primary Industries (Primary
Growth Partnership) and Landcorp.
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DAIRYNZ ANNUAL REPORT 2014/15
DairyBase
Dairy Statistics 2014/15
DairyBase is a benchmarking tool farmers can use to
Dairy Statistics provides a range of statistical analyses on
interpret analysis of their farm’s physical and financial
current, historic and emerging trends in the New Zealand
data, compare their business and to make informed
dairy industry – those statistics being largely based on the
decisions. DairyBase also collects data for industry good
previous Dairy Statistic publications produced by LIC. It also
information, such as DairyNZ’s Economic Survey, projects
reports on the initiatives being undertaken to eradicate
and research. This project aims to increase uptake of
disease (EBL, TB etc). It is considered an essential reference
DairyBase among New Zealand dairy farmers to improve
by a variety of organisations, including universities, local
and inform the quality of the benchmarking and farm
government, dairy companies, industry support organisations
business data for industry analysis and research.
and farmers, and allows readers to gain an understanding of
where the industry is and where it is heading.
Providers: DairyNZ Ltd
Providers: Livestock Improvement Corporation Ltd
Funding: $1,000,000 (excl GST)
Funding: $72,000 (excl GST)
DairyBase product development
This project aims to re-develop the DairyBase platform
Data Linker
and system infrastructure to address four key areas –
The Data Linker project aims to facilitate connections
reducing the complexity of entering data; growing the
among the many data collection tools, farm management
range of analysis capability; making the programme
systems and industry databases in the pastoral and wider
more user-friendly and increasing the links to other tools
agricultural sector. The Data Linker aims to reduce the cost
and products.
of data collection by farmers and industry organisations;
to increase the data quality by utilising definitive data from
Providers: DairyNZ Ltd
its source; and to address the current lost opportunities for
both farmers and industry organisations, that result from
Funding: $500,000 (excl GST)
data being too hard to collate.
Providers: Rezare Systems Ltd
Mega-research database: proof of concept
phase 1
Funding: $60,000 (excl GST). This is funded by the
Ministry for Primary Industries – Primary Growth
Partnership.
DairyNZ has strategic objectives to make databases
available to researchers and to leverage the data for later
purposes unforeseen at the time of collection. DairyNZ
is investigating the use of formal information systems to
support those objectives. A proof of concept system will
Core Database
be developed to support DairyNZ’s lifetime productivity,
The Core Database, which is included in the Dairy
improved genetic gain – phenotypes and mastitis
Industry Good Animal Database (DIGAD), is an
research projects.
essential resource for genetic evaluation and industry
good research. This project supports the on-going
Providers: DairyNZ Ltd
Funding: $55,000 (excl GST)
maintenance, development and support of the core
database portion of DIGAD to enable the genetic
evaluation function to be undertaken and to maximise
DIGAD use for industry good research.
Providers: DairyNZ Ltd
Funding: $510,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
43
RESEARCH AND
DEVELOPMENT
Farm systems modelling
This project will develop and apply computer models to
explore farm systems, components of farm systems and
environmental questions that are expensive and difficult
to answer with traditional research methods.
Providers: DairyNZ Ltd
New Zealand dairy farming’s competitive
and responsible ambitions are underpinned
by a combination of scientific, commercial
and farmer innovation.
While striving to remain highly competitive, New Zealand
dairy farming is also challenged to meet increasingly
stringent environmental outcomes, which is opening
up new avenues for research and innovation around
farm systems. Research and development will aim to
capture new knowledge to push the boundaries of what
is technically achievable on farms and make innovations
accessible to dairy farmers.
Funding: $315,000 (excl GST)
Improving pasture performance
This project aims to provide farmers and plant
breeders with improved knowledge of the level of
pasture persistency of both sown species and traits,
and management practices to maximise persistency.
Ultimately, this project will lead to selection and
breeding of more persistent pasture plants and greater
capture on-farm of the benefits of plant breeding for
A co-development approach will see farmers participating
productivity traits. Achieving a minimum of 10 years
in research projects and sharing their knowledge gained
persistency of perennial species is the aspirational target.
through testing concepts on their farms.
Providers: DairyNZ Ltd
Funding: $711,000 (ex GST). This includes co-funding of
$261,000 by the Ministry for Primary Industries – Primary
Growth Partnership.
Improving reproductive performance
This project’s primary aim is to improve cow genetics
and the physiology underpinning reproductive failure,
ensuring a 13 percent improvement by 2020 in the
number of animals pregnant within the optimal
timeframe and thereby making a substantial contribution
to the industry’s goals outlined in the 2013 Sustainable
Dairy Farming Industry Strategy.
Providers: DairyNZ Ltd
Funding: $3,800,000 (ex GST). This includes co-funding of
$1,900,000 by the Ministry of Business Innovation and
Employment.
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DAIRYNZ ANNUAL REPORT 2014/15
MBIE governance
DairyNZ Inc. and the Ministry of Business, Innovation
World-best evaluation system for forages
for New Zealand dairy farmers
and Employment have partnered in a seven-year project
This project aims to lay the basis for a Forage Value
to investigate the reasons for premature mortality and
Index (FVI) that is scientifically-based, objective and
health-related productivity losses in dairy cows, and
appropriately weighted for all critical traits, and
how these are affected by management and nutrition.
accurately calibrated for on-farm conditions. The FVI
The project will also look at the genetics and physiology
will explicitly define key plant traits for sustainable and
underpinning reproductive failure, to improve pregnancy
competitive dairy systems.
rates and cow longevity.
Providers: DairyNZ Ltd
Providers: DairyNZ Ltd
Funding: $2,090,000 (excl GST)
Funding: $216,000 (excl GST)
Transition cow welfare
Forage germplasm acquisition and
development for the dairy industry
The period either side of calving (i.e. the transition
New germplasm is required to underpin future pasture
period) is when most metabolic and infectious diseases
production systems. This project aims to provide new
occur. There is increasing evidence that management
pasture and forage plant germplasm to advance future
and nutrition pre-calving influences the incidence and
dairy farming. It coordinates industry action to ensure
possibly severity of these disorders. In this project,
access to new pasture and forage crop germplasm,
the level of feeding during the early dry period and
including germplasm enhancement through pre-breeding
immediately before calving will be evaluated for the
of grasses and clovers.
effect on cow health and production.
Providers: DairyNZ Ltd
Funding: $531,667 (excl GST)
Providers: AgResearch Ltd
Funding: $110,000 (excl GST)
Lifetime productivity
Co-innovation for impact in the dairy
sector
This research programme will determine the timing,
This project aims to demonstrate a new systems
incidence and reasons for premature death, involuntary
approach to technology transfer and extension. In this
culling and health-related productivity losses in New
approach, webs of the New Zealand dairy industry
Zealand dairy cows. In addition, the project will
form innovation networks, to co-develop solutions to
determine animal husbandry, farm management and
industry challenges. This project will test and evaluate
nutrition practices that reduce mortality, increase cow
the co-innovation approach through two case studies: (i)
lifetime productivity and improve animal welfare.
dairy herd reproductive performance, and (ii) dairy farm
nutrient management in the Canterbury region. The
Providers: DairyNZ Ltd
principles and practices will be used to enhance these
and other programmes in the future.
Funding: $1,100,000 (ex GST). This includes co-funding
of $550,000 by the Ministry of Business Innovation and
Providers: AgResearch Ltd
Employment.
Funding: $150,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
45
Blocking roadways as corridors for the
spread of problem weeds
Identifying and improving poor yielding
areas of pasture through yield mapping
This project is investigating how weed propagules
Inappropriate application of inputs such as irrigation
move along the road corridors e.g. in or attached to
water or fertiliser can waste resources and contribute to
stock, by roadside maintenance equipment (especially
environmental pollution. This project will investigate how
mowers), with feedstuffs (before or after processing)
to use yield mapping to identify the true factors limiting
etc. Using the information generated, new guidelines
production for each area of a paddock, allowing fertiliser
will be written for minimising weed spread to improve
inputs to be optimised for each area. This information
future sustainability of farming and roadside vegetation
will help to improve pasture yields, by identifying areas
management.
within a paddock where yield is limited by fertility and
can be corrected by targeted fertiliser.
Providers: AgResearch Ltd
Providers: AgResearch Ltd
Funding: $24,000 (excl GST)
Funding: $80,000 (excl GST)
Pasture management systems for
Northland
This demonstrates that profitable dairy farm systems
Genomics for production & security in a
biological economy
in Northland can be achieved irrespective of pasture
This work aims to develop a novel open-source platform
type. As pasture composition on farms in Northland
that enables more cost-effective capture of DNA-based
vary from completely ryegrass dominant to completely
information and to promote its adoption by a diverse
kikuyu dominant (and all the combinations inbetween),
range of people for the benefit of New Zealand’s
the aim is to show farmers that any farm system can be
biological economy.
productive and profitable, as long as it is well managed.
Providers: AgResearch Ltd
Providers: Northland Dairy Development Trust
Funding: $100,000 (excl GST)
Funding: $170,000 (excl GST)
Integrating more cropping into sustainable
dairy farming systems
Differential feeding decision support
This project will develop decision support resources for
the growing number of farmers investing in in-shed
This project aims to demonstrate that environmental
feeding technology, which will lead to more effective
footprint can be at least maintained while meeting
use of pasture and imported feeds, and ultimately more
the industry targets of increasing farm production
sustainable farming businesses.
and profitability. This project will be carried out at the
Waimate West Demonstration Farm, where 25 percent
Providers: DairyNZ Ltd
of the milking platform system will be cropped. The
project will also involve three local commercial farms
practising intensive cropping on the dairy platform, as
well as a wide section of the farm support industry, to
ensure a high rate of buy-in and uptake of results.
Providers: Waimate West Demonstration Farm Trust
Funding: $60,000 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
Funding: $70,000 (excl GST)
Advance management technologies
Control of giant buttercup
This research aims to build expertise to underpin the
This project’s goal is to enable effective management of
development and adoption of advanced tools to optimise
giant buttercup in dairy pastures. This inedible and toxic
farm production (both in feed and animals), mitigate
weed costs dairy farmers heavily in (a) lost production
labour constraints, improve animal welfare and broaden
revenue estimated at $155 million/year nationally; (b)
lifestyle choices. The project focuses on the use of
ineffective herbicide inputs due to an evolving herbicide
automated and smart technologies to reduce manual
resistance; and (c) public concern over perceived
labour, and information technology to increase outputs
environmental impacts, particularly aquatic life, of
via better decision-making.
broad-acre herbicide applications. Its potential to spread
is an additional concern.
Providers: DairyNZ Ltd
Providers: AgResearch Ltd
Funding: $400,000 (ex GST). This includes co-funding of
$243,000 by the Ministry for Primary Industries – Primary
Funding: $40,000 (excl GST)
Growth Partnership.
Biocontrol of major pests of dairy
pastures
Dairy pastures for persistence and
production: best practice renewal,
including black beetle-resistant pastures
This project aims to improve vigour and persistence
The failure of renewed pastures to persist is a critical
of quality dairy pastures, both now and in the future,
issue affecting farm sustainability, particularly in the
through the successful biocontrol of major exotic pasture
Waikato and Bay of Plenty. Previous work has provided
pest species throughout New Zealand.
a greater understanding of management for the
establishment of new pastures. This project directly
Providers: AgResearch Ltd
addresses persistence and includes an explicit focus
on factors critical to longer-term pasture performance,
Funding: $304,000 (excl GST)
including endophytes and insect pest pressure.
Providers: AgResearch Ltd
Forages for reduced nitrate leaching
Funding: $158,000 (excl GST)
This programme combines the expertise and resources of
DairyNZ, AgResearch, Plant and Food Research, Lincoln
University, Foundation for Arable Research and Landcare
improving nitrogen (N) efficiency of the animals and/or
Resilient mastitis control for system
intensification
the plants used in dairy farming. Reducing N excreted in
Changing farm systems (the move away from all-grass) is
urine will reduce N leached from urine patches, a major
occurring in New Zealand. To date, all recommendations
pathway for N loss in grazed systems. Increased uptake
for mastitis control are based on pasture-based systems,
of soil N by plants reduces the background N pool,
with some extrapolations from international literature
further reducing the N leaching potential. The focus
for more intensive systems. This project aims to build
on cost-effective forage and crop solutions will help
knowledge about mastitis control within different
develop systems that increase N efficiency and maintain
farming systems, by developing ways to profile the
international competitiveness.
mastitis risk associated with different systems.
Providers: DairyNZ Ltd
Providers: DairyNZ Ltd
Funding: $450,000 (excl GST)
Funding: $200,000 (excl GST)
Research to reduce the environmental footprint by
DAIRYNZ ANNUAL REPORT 2014/15
47
Pastoral 21 development & extension
project
Improved genetic gain – phenotypes
This project aims to develop an adoption programme for
genetics to the dairy industry, resulting in tools that
the key messages coming out of the Pastoral 21 research
allow farmers to select more robust cows, decrease
project and provide the dairy industry with options to
animal health costs and increase productivity in the
farm profitability and with nutrient limits. The main
national herd.
This project’s objective is to deliver improved animal
objectives are to co-develop research findings/outputs
into industry-agreed key messages for farmers and to
Providers: DairyNZ Ltd
co-develop extension packages and pathways for the
solutions through industry consultation.
Funding: $331,000 (excl GST). This is funded by the
Ministry for Primary Industries – Primary Growth
Providers: DairyNZ Ltd
Partnership
Funding: $191,000 (excl GST)
Forage footprints
Improving forage legume – rhizobia
performance
This project looks at winter feeding practices in the
Forage legumes, such as clovers, are an essential
will be compared in three typical Canterbury systems.
component of New Zealand’s pastoral systems. They
Each has varying reliance on wintering off the milking
provide a valuable contribution to forage production,
platform and differing levels of feed imported. This
pasture feed quality and provide nitrogen (N) inputs
project will explore the differences in water, nitrogen
through biological nitrogen fixation (BNF) carried out by
and carbon footprints for forages on these farms. Results
rhizobia. This research will investigate opportunities to
will improve estimates of overall system footprints.
South Island. The cost and environmental footprint of
current forage production and conservation practices
increase BNF and therefore increase pasture production and
the profitability and sustainability of the pastoral sector.
Providers: New Zealand Institute of Plant & Food
Research Ltd
Providers: AgResearch Ltd
Funding: $15,000 (excl GST)
Funding: $100,000 (excl GST)
Promoting responsible use of antibiotics on
dairy farms
Pastoral 21
DairyNZ is a co-funder of this joint industry-government
research programme, which aims to increase the yield
This project will provide dairy farmers and vets with new
and quality of feed harvested on New Zealand pastoral
tools to manage antibiotic use in a way that maximises
farms.
their current effectiveness and preserves efficacy for the
future. This will be achieved through training programmes
Providers: AgResearch Ltd
and application tools to enable vets and farmers to use
best practice in the prescription and use of antibiotics.
Additionally, new diagnostic tools will be developed to
support decisions on the diagnosis and treatment of
bacterial infections that foster responsible use of antibiotics.
Providers: Cognosco Ltd
Funding: $100,000 (excl GST)
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DAIRYNZ ANNUAL REPORT 2014/15
Funding: $2,280,000 (excl GST)
A proactive approach to avoid glyphosate
resistance
Argentine stem weevil
This project incorporates all agricultural sectors to
Argentine stem weevil (ASW) led to the 1991 release
formulate coordination and sector-specific group
of a parasitic wasp Micro Hyperodae, which quickly
strategies involving education, research and extension to
achieved suppression of weevil populations. However,
avoid the development of glyphosate resistance.
recently there has been a resurgence of damage by ASW
The ongoing severe impact of the ryegrass pest
to susceptible grasses and cereals. This project will use
Providers: Foundation for Arable Research
Funding: $5,000 (excl GST)
applied research to provide an economic analysis of
the pest status of ASW and give advice to the pastoral
sector, arable seed and cereal growers on mitigating its
effects.
Providers: Foundation for Arable Research
Sustainable dairy grazing
Funding: $25,000 (excl GST)
This project’s purpose is to ensure the future success
and profitability of dairy support systems. To achieve
this, this project will need to understand what a
successful dairy grazing business looks like. Secondly, it
will determine the resources available to help sustain a
successful business and, thirdly, identify the strengths
Integrating winter forage crops and
pasture: managing the environmental risk
and weaknesses of each resource and knowledge gaps.
The incorporation of winter and summer forage crops
Lastly, this project will develop, in conjunction with both
into pastoral production systems in the Upper Waikato
Beef + Lamb NZ and DairyNZ, dairy grazing ‘knowledge
catchment is essential to mitigate feed shortages at key
transfer packages’ to help farmers make informed
times of year. This project will identify best practice for
decisions that best suit their farm resources and goals.
managing the environmental impacts of forage crop
sequences between pasture phases.
Providers: AbacusBio Ltd
Providers: AgResearch Ltd
Funding: $9,500 (excl GST)
Funding: $37,000 (excl GST)
Pest management in land use modification
on the South Island’s West Coast
Reducing ruminant methane emission
This project will identify the pasture pests on the West
This research programme seeks to reduce agricultural
Coast and enable farmers to monitor pest activity and
greenhouse gas emissions by identifying and breeding
make predictions about pest management. It will also
animals that are inherently low emitters of methane
demonstrate sustainable pest management strategies
and producing biological and chemical solutions that
and assist farmers to adopt these strategies. The project
suppress methane production in the rumen.
will then develop recommendations for pasture pest
management on the West Coast.
Providers: Pastoral Greenhouse Gas Research
Consortium.
Providers: AgResearch Ltd
Funding: $1,000,000 (excl GST)
Funding: $10,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
49
New Zealand Pastoral Industries Ryegrass
Development Programme
Co-innovation for impact in the dairy
sector
The aim of investing in pastoral genomics is to use
This project is testing and evaluating the co-innovation
modern biotechnology approaches to develop new
approach through two case studies: (i) dairy herd
ryegrass and clover plants that are more productive
reproductive performance, and (ii) dairy farm nutrient
and persistent. This project will also improve rates of
management in the Canterbury region. The principles
genetic gain in perennial ryegrass, particularly in the
and practices will be used to enhance these and other
development of tools for the pre-commercial stage of
programmes in the future.
the breeding system to help improve the precision of
selection of plant germplasm for FVI traits.
Providers: AgResearch Ltd
Providers: Pastoral Genomics Consortium
Funding: $150,000 (excl GST)
Funding: $2,300,000 (excl GST)
Lincoln Hub
The Lincoln Hub is a collaboration between research,
education and industry that will transform the
productivity and performance of New Zealand and the
world's primary sector. The concept has been developed
by five founding partners: AgResearch, Landcare
Research, Plant & Food Research (all Crown Research
Institutes), DairyNZ and Lincoln University. It is envisaged
that the hub will evolve to include a broad range of
industry and research organisations with a commitment
to land-based productivity and sustainability.
Providers: DairyNZ, AgResearch, Landcare Research, Plant
& Food Research, and Lincoln University
Funding: $200,000 (excl GST)
Enhanced genetics
The enhanced genetics sequencing project is a sevenyear, $21 million research programme which started in
2011. It’s being run by LIC with help from the University
of Auckland and the University of Liège (Belgium). The
programme is part of a wider $170 million Primary
Growth Partnership (PGP) programme led by DairyNZ
and Fonterra, called Transforming the Dairy Value Chain,
that started in April 2011.
Providers: Livestock Improvement Corporation (LIC)
Funding: $1,700,000 (excl GST). This is funded by
the Ministry for Primary Industries – Primary Growth
Partnership.
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DAIRYNZ ANNUAL REPORT 2014/15
ANIMAL
WELFARE
Animal welfare awareness and change
This programme provides educational support and
resources to ensure good on-farm animal welfare
practices are understood and adopted by New Zealand
dairy farmers. During 2014/15, this project will deliver
the Early Response Service to link farmers on at-risk
farms with the right people, and provide activities to
The welfare of dairy cattle is recognised as
highly important and New Zealand dairy
farmers take great pride in their animals.
Good animal husbandry is constantly evolving in
response to changes in farming systems, as well as public
expectation.
Industry investment in animal welfare will ensure New
support good on-farm practice through practical training
workshops in stock skills for new entrants to dairy
farming. This programme will also raise awareness of
changes to the animal welfare code and provide farmers
with relevant information, tools and training.
Providers: DairyNZ Ltd
Funding: $675,000 (excl GST)
Zealand dairy farmers have the tools and assistance to
improve their animal husbandry skills and practices for
their farm system.
Train the trainer – animal welfare
This project develops capability and industry agreed
standards in assessing animal husbandry and management
issues on-farm. It also develops relevant farm management
plans to resolve those issues or risks, and improve farm
business resiliency in future. This project will also identify
training for practitioners and service providers.
Providers: DairyNZ Ltd
Funding: $884,000 (ex GST). This includes co-funding of
$505,000 by the Ministry for Primary Industries – Primary
Growth Partnership.
DAIRYNZ ANNUAL REPORT 2014/15
51
Train the trainer – off-paddock
With around 650 off-paddock covered housing systems
in New Zealand, and more under construction, these
facilities must be built ‘fit-for-purpose’ so cows are
housed with due care to their welfare, that effluent is
well managed, and that staff have a safe environment
to work. This programme, in consultation with industry
stakeholders, will develop technical resources, training
opportunities, a competency framework and an
On-Farm
Innovation
Fund
extension programme to raise awareness with farmers
Providers: DairyNZ Ltd
The On-Farm Innovation Fund helps farmers
turn great ideas into better on-farm
practice.
Funding: $300,000 (ex GST). This includes co-funding of
It is aimed specifically at farmers, people who work with
$168,000 by the Ministry for Primary Industries – Primary
farmers and smaller organisations that would not normally
Growth Partnership.
have ready access to innovation and research funding.
and relevant rural professionals.
Projects that are funded demonstrate their success by
making on-farm improvements that are readily available
Animal welfare aspects of off-paddock
dairy systems
This project assists dairy farmers to make good decisions
regarding the design and management of off-paddock
dairy systems, to ensure good welfare outcomes. The
objective is to develop a deeper understanding of
off-paddock systems, with a specific focus on animal
welfare, to inform considerations for choosing and
managing these facilities within a farm system.
Providers: AgResearch Ltd
Funding: $280,000 (ex GST). This includes co-funding of
$162,000 by the Ministry for Primary Industries – Primary
Growth Partnership.
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DAIRYNZ ANNUAL REPORT 2014/15
to New Zealand dairy farmers.
Marlborough Monitor Farm
Bovine digital dermatitis pilot project
This has increased the profitability and sustainability
This project determined the prevalence of subclinical
of dairying in the Marlborough area by integrating
bovine digital dermatitis (BDD) in north Taranaki farms. The
DairyBase and farm management tools into farmer
information will help understand why this disease is starting
practices.
to spread in New Zealand when, until three years ago,
there were only isolated cases.
Providers: Marlborough Dairy Development Trust Board
Inc
Providers: Energy Vets Taranaki Ltd
Funding: $8,000 (excl GST)
Funding: $80,000 (excl GST)
Galatea Soil Flipping Project
Benefits of lime applications on black
beetle-prone dairy farms
This project assessed the economic return of ‘soil
flipping’ techniques on dry land pasture productivity in
This project aims to ensure pasture productivity and quality
the Galatea (Bay of Plenty) district. These techniques
during summer on black beetle-prone Waikato dairy farms.
modify the soil profile to bring better quality soil parent
Two potential management approaches, well-timed lime
material to the surface. This improves water holding
applications and biopesticide baits, were tested.
capacity, soil heat transfer properties, root development
of pasture plants and soil fertility properties.
Providers: AgResearch Ltd (on behalf of the Waikato
Black Beetle Action Group)
Providers: BOP Focus on Dairying Charitable Trust
Funding: $50,000 (excl GST)
Funding: $43,000 (excl GST)
Impact of rosters on dairy farm worker
productivity
This project investigated the relationship between dairy
worker roster length and subsequent levels of fatigue
and productivity, and the costs/benefits.
Providers: AgFirst Waikato
Funding: $56,000 (excl GST)
Fractured bones in heifers
Survey work was undertaken to look at the incidence
of humeral fractures in first and second-lactation dairy
heifers/cows and to estimate the economic cost to the
New Zealand dairy industry.
Providers: Anexa Animal Health
Funding: $25,000 (excl GST)
DAIRYNZ ANNUAL REPORT 2014/15
53
FINANCIALS
54
DAIRYNZ ANNUAL REPORT 2014/15
Independent auditor's report
To the members of DairyNZ Incorporated
We have audited the accompanying financial statements of DairyNZ Incorporated ("the incorporated society") and the
group, comprising the incorporated society and its subsidiaries, on pages 59 to 85. The financial statements comprise the
statements of financial position as at 31 May 2015, the statements of comprehensive income, changes in equity and cash
flows for the year then ended, and a summary of significant accounting policies and other explanatory information, for both
the incorporated society and the group.
Directors’ responsibility for the incorporated society and group financial statements
The directors are responsible for the preparation and fair presentation of incorporated society and group financial statements
in accordance with generally accepted accounting practice in New Zealand, and for such internal control as the directors
determine are necessary to enable the preparation of incorporated society and group financial statements that are free from
material misstatement whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these incorporated society and group financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
incorporated society and group financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the incorporated
society and group financial statements. The procedures selected depend on the auditor's judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the incorporated society and group's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the incorporated society and group's internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates, as well as evaluating the presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Our firm has also provided other services to the incorporated society and group in relation to other assurance services and
tax services. These matters have not impaired our independence as auditor of the incorporated society and group. The firm
has no other relationship with, or interest in, the incorporated society and group.
Opinion
In our opinion the financial statements on pages 59-85 present fairly, in all material respects, the financial position of the
incorporated society and the group as at 31 May 2015 and the financial performance and cash flows of the incorporated
society and the group for the year then ended, in accordance with generally accepted accounting practice in New Zealand.
4 August 2015
Hamilton
DAIRYNZ ANNUAL REPORT 2014/15
55
Statutory information
For the year ended 31 May 2015
The directors present the Annual Report, along with the audited accounts for DairyNZ Incorporated and subsidiary
companies, for the year ended 31 May 2015.
1. Activities
DairyNZ’s main income is provided by the Commodity Levies (Milksolids) Order 2014.
DairyNZ’s main activities are investment in dairy industry good activities, as well as the undertaking of dairy research,
development and extension activities.
2. Results
DairyNZ’s total comprehensive income for the year was $424,219.
3. Disclosures
Pursuant to Clause 24.1(c) of the Rules of DairyNZ Incorporated and/or Section 211(1) of the Companies
Act 1993 we disclose the following information:
Directors
DairyNZ Incorporated
Subsidiary Directorships
B. Allomes
Director elected
Dexcel Holdings Ltd, DairyNZ Ltd and Johnes Co Dairy Insight Ltd
H. Anderson
Director appointed
Dexcel Holdings Ltd and DairyNZ Ltd
A. Body
Director elected
Dexcel Holdings Ltd, DairyNZ Ltd and Insight Genomics Ltd
B. Harris
Director appointed
J. Luxton
Director elected (Chairman)
Dexcel Holdings Ltd, DairyNZ Ltd and Dairy Insight (PGGR Consortia) Ltd
P. Schuyt
Director appointed
Dexcel Holdings Ltd and DairyNZ Ltd
M. Spaans
Director elected
Dexcel Holdings Ltd and DairyNZ Ltd
J. Van der Poel
Director elected
Dexcel Holdings Ltd, DairyNZ Ltd
Dexcel Holdings Ltd, DairyNZ Ltd, OSPRI New Zealand Ltd and TBFree
New Zealand Limited
R. Anderson
New Zealand Animal Evaluation Ltd
H. Blair
New Zealand Animal Evaluation Ltd
E. Coats
New Zealand Animal Evaluation Ltd
A. Kempthorne
New Zealand Animal Evaluation Ltd
W. Larsen
New Zealand Animal Evaluation Ltd
S. Montgomerie
New Zealand Animal Evaluation Ltd
T. Mackle
DairyNZ Accreditation Limited and New Zealand Animal Evaluation Ltd
J. Hood
DairyNZ Accreditation Limited
D. McCall
Dairy Training Ltd
C. Tully
Dairy Training Ltd
J. Hillerton
Johnes Co Dairy Insight Ltd
B. Thorrold
Insight Genomics Ltd
R. Pridmore
Dairy Insight (PGGR Consortia) Ltd
56
DAIRYNZ ANNUAL REPORT 2014/15
Changes during the year
B. Kuriger resigned as a director of DairyNZ Incorporated,
DairyNZ Limited and Dexcel Holdings Limited in October
2014, and Dairy Training Limited in November 2014.
DIRECTORS’ REMUNERATION
Directors remuneration: remuneration paid during the
period was as follows:
2015
J. Van der Poel elected as a director of DairyNZ
Incorporated, and was appointed as a director of DairyNZ
B. Allomes
46,400
H. Anderson
46,400
A. Body
46,400
B. Harris
46,400
Ltd, TBFree New Zealand Ltd and New Zealand Animal
B. Kuriger
19,631
Evaluation Ltd June 2014.
J. Luxton
90,400
B. Harris appointed as a director of OSPRI New Zealand Ltd
P. Schuyt
46,400
M. Spaans
48,600
J. Van der Poel
28,857
Limited and Dexcel Holdings Limited in October 2014.
C. Tully appointed as a director of Dairy Training Limited in
November 2014.
M. Spaans resigned as a director of OSPRI New Zealand
and TBFree New Zealand Ltd July 2014.
Directors’ interest
The board have not received any notices from directors
Directors of DairyNZ subsidiaries
R. Anderson
20,000
H. Blair
22,000
T. Coats
20,000
Use of company information
A. Kempthorne
20,000
The board received no notices during the year from
W. Larsen
40,000
S. Montgomerie
20,000
that they have any interest in transactions, or proposed
transactions with the group during the year.
directors required to use company information received
in their capacity as directors, which would not have been
otherwise available to them.
C. Tully
1,500
562,988
Share dealings
No directors hold any shares in any DairyNZ entity.
Donations
There were no donations made in the current year.
DAIRYNZ ANNUAL REPORT 2014/15
57
Employees’ remuneration
AUDITORS’ remuneration
The following employees received remuneration and
The following amounts were payable to the auditors of
other benefits (including redundancies) totalling more
DairyNZ Incorporated and its subsidiaries.
than $100,000 during the year.
Number of Employees
SALARY BAND
2015
2014
100,000-110,000
17
10
110,000-120,000
10
10
120,000-130,000
9
4
130,000-140,000
4
3
140,000-150,000
5
3
150,000-160,000
5
-
160,000-170,000
1
5
170,000-180,000
-
1
180,000-190,000
3
1
190,000-200,000
-
2
200,000-210,000
2
2
210,000-220,000
1
-
230,000-240,000
-
1
240,000-250,000
-
1
250,000-260,000
1
-
260,000-270,000
1
-
300,000-310,000
1
1
530,000-540,000
-
1
560,000-570,000
1
-
KPMG
John Luxton, Chairman
Peter Schuyt, Director
4 August 2015
4 August 2015
58
DAIRYNZ ANNUAL REPORT 2014/15
FOR AUDIT WORK
FOR OTHER SERVICES
$65,700
$15,456
Statement of Comprehensive Income
For the year ended 31 May 2015
In thousands of New Zealand dollars
Consolidated*
NOTE
Parent**
2015
2014
2015
2014
Continuing operations
Levy revenue
5
68,036
65,699
68,036
65,699
Other income
6
24,760
26,255
9,582
8,157
Programme expenses
7
(33,666)
(33,236)
(74,853)
(70,268)
Operational expenses
8
(59,395)
(53,021)
(5,815)
(5,121)
Profit/(loss) before finance activities
(266)
5,697
(3,050)
(1,534)
Finance income
1,113
908
172
137
-
-
-
-
1,113
908
172
137
847
6,605
(2,878)
(1,397)
-
-
-
-
847
6,605
(2,878)
(1,397)
(423)
(466)
-
-
-
-
-
-
(423)
(466)
-
-
424
6,139
(2,878)
(1,397)
Finance expenses
Net finance income
10
Profit/(loss) before income tax
Tax expense
Profit/(loss) for the period
Other comprehensive income
Net change in fair value of available for sale
financial assets
Income tax on other comprehensive income
Other comprehensive income for the period,
net of income tax
Total comprehensive income/(loss) for the period
*Consolidated includes all DairyNZ entities (parent entity
plus all subsidiaries including the largest one, DairyNZ Ltd).
NOTE: any inter-company transactions are eliminated.
**Parent entity of DairyNZ Group is DairyNZ Incorporated
(the entity that collects and invests the levy).
DAIRYNZ ANNUAL REPORT 2014/15
59
Statement of Changes in equity
For the year ended 31 May 2015
Consolidated*
In thousands of New Zealand dollars
Contribution
by owners
Investment
fair value
reserve
Retained
earnings
Total equity
33,783
1,057
10,662
45,502
-
-
6,605
6,605
Net change in fair value of available for sale financial assets
-
(466)
-
(466)
Total other comprehensive income
-
(466)
-
(466)
Total comprehensive income for the period
-
(466)
6,605
6,139
Balance at 31 May 2014
33,783
591
17,267
51,641
Balance as at 1 June 2014
33,783
591
17,267
51,641
-
-
847
847
Net change in fair value of available for sale financial assets
-
(423)
-
(423)
Total other comprehensive income
-
(423)
-
(423)
Total comprehensive income for the period
-
(423)
847
424
33,783
168
18,114
52,065
Balance as at 1 June 2013
Total comprehensive income for the period
Profit/(loss) for the period
Other comprehensive income
Total comprehensive income for the period
Profit/(loss) for the period
Other comprehensive income
Balance at 31 May 2015
In thousands of New Zealand dollars
Parent**
Contribution
by owners
Investment
fair value
reserve
Retained
earnings
Total equity
33,783
-
(1,362)
32,421
-
-
(1,396)
(1,396)
Total other comprehensive income
-
-
-
-
Total comprehensive income for the period
-
-
(1,396)
(1,396)
Balance at 31 May 2014
33,783
-
(2,758)
31,025
Balance as at 1 June 2014
33,783
-
(2,758)
31,025
-
-
(2,878)
(2,878)
Total other comprehensive income
-
-
-
-
Total comprehensive income for the period
-
-
(2,878)
(2,878)
33,783
-
(5,636)
28,147
Balance as at 1 June 2013
Total comprehensive income for the period
Profit/(loss) for the period
Other comprehensive income
Total comprehensive income for the period
Profit/(loss) for the period
Other comprehensive income
Balance at 31 May 2015
60
DAIRYNZ ANNUAL REPORT 2014/15
Statement of FINANCIAL POSITION
As at 31 May 2015
In thousands of New Zealand dollars
Consolidated*
NOTE
Parent**
2015
2014
2015
2014
Assets
Property, plant and equipment
11
25,075
25,811
-
-
Intangible assets
12
4,201
2,213
-
-
Investments in subsidiaries
16
-
-
34,813
34,340
Other investments
16
1,707
2,130
-
-
30,983
30,154
34,813
34,340
Total non-current assets
Cash and cash equivalents
19
35,553
29,683
6,025
6,428
Inventories
17
138
186
-
-
Biological assets – livestock
13
1,240
1,508
-
-
Trade and other receivables
18
8,138
7,586
12,026
10,132
Total current assets
45,069
38,963
18,051
16,560
Total assets
76,052
69,117
52,864
50,900
168
591
-
-
51,897
51,050
28,147
31,025
20
52,065
51,641
28,147
31,025
21
77
72
-
-
77
72
-
-
18,491
11,665
23,094
18,712
2,328
2,922
1,623
1,163
3,091
2,817
-
-
Total current liabilities
23,910
17,405
24,717
19,875
Total liabilities
23,987
17,477
24,717
19,875
Total members’ funds and liabilities
76,052
69,117
52,864
50,900
Members’ funds
Reserves
Retained earnings
Total members’ funds
Liabilities
Employee entitlements
Total non-current liabilities
Trade and other payables
22
Deferred income
Employee entitlements
21
John Luxton, Chairman
Peter Schuyt, Director
4 August 2015
4 August 2015
DAIRYNZ ANNUAL REPORT 2014/15
61
Statement of CASH flows
For the year ended 31 May 2015
In thousands of New Zealand dollars
Consolidated*
NOTE
Parent**
2015
2014
2015
2014
Dairy industry good levies
68,161
65,166
68,161
65,166
Other funding
23,587
23,151
9,545
9,204
1,113
908
171
137
92,860
89,225
77,877
74,507
83,830
86,472
74,974
73,881
83,830
86,472
74,974
73,881
9,030
2,753
2,903
626
Proceeds from sale of biological assets
276
323
-
-
Proceeds from sale of property, plant and equipment
129
64
-
-
405
387
-
-
Investments in subsidiaries
-
-
3,306
2,365
Purchase of biological assets
-
-
-
-
3,566
5,720
-
-
3,566
5,720
3,306
2,365
Net cash from/(used in) investing activities
(3,161)
(5,333)
(3,306)
(2,365)
Net cash from/(used in) financing activities
-
-
-
-
5,870
(2,580)
(403)
(1,739)
Cash balances at beginning of period
29,683
32,263
6,428
8,167
Closing cash balances
35,553
29,683
6,025
6,428
Net cash from/(used in) operating activities
Cash provided from:
Interest income received
Cash applied to:
Payments to suppliers and employees
Net cash from/(used in) operating activities
29
Net cash from/(used in) investing activities
Cash provided from:
Cash applied to:
Acquisition of property, plant and equipment,
and intangibles
Net increase/(decrease) in cash balances
62
DAIRYNZ ANNUAL REPORT 2014/15
Statement of CASH flows
For the year ended 31 May 2015
1. Accounting entity
DairyNZ Incorporated (“DairyNZ”) is an Incorporated
Society incorporated under the Incorporated Societies
Act 1908 and domiciled in New Zealand. DairyNZ’s
registered office is based at the corner of Ruakura
Road and Morrinsville Road, Hamilton. These financial
statements have been prepared in accordance with the
Financial Reporting Act 1993.
DairyNZ is primarily involved in the promotion and
funding of dairy industry good activities. Accordingly
DairyNZ has designated itself as a public benefit
d. Use of estimates and judgements
The preparation of financial statements requires
management to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
entity for the purposes of New Zealand equivalents to
In particular, information about significant areas
International Financial Reporting Standards (“NZ IFRS”).
of estimation uncertainty and critical judgements
Financial statements for DairyNZ Incorporated (separate
financial statements) and consolidated financial
statements are presented. The consolidated financial
statements of DairyNZ as at and for the year ended 31
in applying accounting policies that have the most
significant effect on the amount recognised in the
financial statements are described in the following
notes:
May 2015 comprise DairyNZ and subsidiaries (together
-- Note 4 /13 biological assets
referred to as the “Group”) and the Group’s interests in
-- Note 4/16 investments
associates and jointly controlled entities.
2. Basis of preparation
a. Statement of compliance
These financial statements have been prepared in
accordance with New Zealand Generally Accepted
Accounting Practice (“NZ GAAP”). They comply with
NZ IFRS, and other applicable Financial Reporting
Standards, as appropriate for public benefit entities.
The financial statements were approved by the
directors on 4 August 2015.
-- Note 21 employee entitlements
-- Note 12 intangible assets & 3(d) - useful lives.
3. Significant accounting policies
The accounting policies set out below have been
applied consistently to all periods presented in
these financial statements, and have been applied
consistently to group entities.
a. Basis of consolidation
i) Subsidiaries
The accounting policies set out below have been
Subsidiaries are entities controlled by the Group.
applied consistently to all periods presented in these
Control exists when the Group has the power to
financial statements. The accounting polices have
govern the financial and operating policies of an
been applied consistently to group entities.
entity so as to obtain benefits from its activities.
b. Basis of measurement
The financial statements of subsidiaries are
included in the consolidated financial statements
The financial statements have been prepared on the
from the date that control commences until the
historical cost basis except for the following:
date that control ceases.
-- biological assets are measured at fair value less
The cost of acquisition is measured at the fair
point-of-sale costs.
-- available for sale assets are measured at fair value.
c. Functional and presentation currency
These financial statements are presented in New Zealand
dollars ($,000), which is DairyNZ’s functional currency.
value of the assets given, equity instruments
issued and liabilities incurred or assumed at the
date of exchange including contingent liabilities,
plus costs directly attributable to the acquisition.
The excess of the cost of acquisition over the fair
value of the Group’s share of the identifiable net
DAIRYNZ ANNUAL REPORT 2014/15
63
assets acquired is recorded as goodwill. If the cost
of acquisition is less than the fair value of the
net assets acquired, the difference is recognised
directly in the statement of comprehensive
income.
ii) Joint ventures
i) Non-derivative financial instruments
Non-derivative financial instruments comprise
investments in equity securities accounted for as
available-for-sale financial assets, trade receivables,
cash and cash equivalents, short-term borrowings,
Joint ventures are those entities over whose
and trade payables.
activities the Group has joint control, established
Non-derivative financial instruments are
by contractual agreement and requiring unanimous
recognised initially at fair value plus, for
consent for strategic financial and operating
instruments not at fair value through Statement of
decisions. Joint ventures are accounted for using
Comprehensive Income, any directly attributable
the proportionate consolidation method whereby
transaction costs. Subsequent to initial recognition
the Group’s share of each of the assets, liabilities,
non-derivative financial instruments are measured
income and expenses of a jointly controlled entity
as described below.
is combined line by line with similar items in
the Group’s financial statements. The liabilities
recognised include the Group’s share of those
liabilities for which the Group is jointly liable.
iii) Transactions eliminated on consolidation
A financial instrument is recognised if the Group
becomes a party to the contractual provisions of
the instrument. Financial assets are derecognised
if the Group’s contractual rights to the cash flows
from the financial assets expire or if the Group
Intra-group balances, and any unrealised
transfers the financial asset to another party
income and expenses arising from intra-group
without retaining control or substantially removing
transactions, are eliminated in preparing the
all the risks and rewards of the asset. Purchases and
consolidated financial statements. Unrealised gains
sales of financial assets are accounted for at trade
arising from transactions with equity accounted
date, i.e., the date that the Group commits itself
investees are eliminated against the investment to
to purchase or sell the asset. Financial liabilities are
the extent of the Group’s interest in the investee.
derecognised if the Group’s obligations specified in
Unrealised losses are eliminated in the same way
the contract expire or are discharged or cancelled.
as unrealised gains, but only to the extent that
there is no evidence of impairment.
iv) Equity accounted associates
Cash and cash equivalents comprise cash balances
and call deposits. Bank overdrafts that are
repayable on demand and form an integral part
Associates are those entities in which the Group
of the Group’s cash management are included as
has significant influence, but not control, over the
a component of cash and cash equivalents for the
financial operating policies.
purpose of the statement of cash flows.
Investments in associates are accounted for using
Available-for-sale financial assets
the equity method and are recognised initially
The Group’s investments in equity securities except
at cost. The cost of the investment includes
transaction costs.
for investments in subsidiaries are classified as
available-for-sale financial assets. Subsequent to
The consolidated financial statements include
initial recognition, they are measured at fair value
the Group’s share of the profit or loss and other
by reference to published price quotations and
comprehensive income of equity accounted investees,
changes therein, other than impairment losses, are
after adjustments to align the accounting policies
recognised directly in equity. When an investment is
with those of the Group from the date that significant
derecognised, the cumulative gain or loss in equity
influence or joint control commences until the date
is transferred to the statement of comprehensive
that significant influence or joint control ceases.
income.
When the Group’s share of losses exceeds its
Instruments at fair value through profit or loss
interest in an equity accounted investee, the carrying
An instrument is classified as at fair value
amount of the investment, including any long-term
investments that form part thereof, is reduced to zero,
and the recognition of further losses is discontinued
except to the extent that the Group has an obligation
or has made payments on behalf of the investee.
64
b. Financial instruments
DAIRYNZ ANNUAL REPORT 2014/15
through profit or loss if it is held for trading or
is designated as such upon initial recognition.
Financial instruments are designated at fair value
through profit or loss if the Group manages such
investments and makes purchase and sale decisions
based on their fair value. Upon initial recognition,
Where assets are purchased for a specific project
attributable transaction costs are recognised in
use they are depreciated over the life of the project
the statement of comprehensive income when
where it is determined there is no further benefit for
incurred. Subsequent to initial recognition, financial
DairyNZ.
instruments at fair value through profit or loss are
measured at fair value, and changes therein are
recognised in statement of comprehensive income.
Trade receivables
Trade receivables classified as other non-derivative
financial instruments are stated at amortised
The estimated useful lives for the current and
comparative periods are as follows:
• buildings40-50 years
• leasehold improvements
lease period being 1 to 34 years
• farm development
5-20 years
impairment losses.
• plant and equipment
2-12.5 years
Trade payables
• vehicles2-10 years.
Trade payables are classified as other non-
Depreciation methods, useful lives and residual
derivative financial instruments and are stated at
values are reassessed at each financial year-end. amortised cost.
cost using the effective interest method, less any
c. Property, plant and equipment
i) Recognition and measurement
D. Intangible assets
i) Research and development
Items of property, plant and equipment are
Expenditure on research activities, undertaken
measured at cost less accumulated depreciation
with the prospect of gaining new scientific or
and impairment losses. Cost includes expenditures
technical knowledge and understanding, is
that are directly attributable to the acquisition of
recognised in the statement of comprehensive
the asset. income when incurred.
The cost of self-constructed assets includes the
Development activities involve a plan or design
cost of materials and direct labour, any other
for the production of new or substantially
costs directly attributable to bringing the asset to
improved products and processes. Development
a working condition for its intended use, and the
expenditure is capitalised only if development
costs of dismantling and removing the items and
costs can be reliably measured, the product or
restoring the site on which they are located.
process is technically and commercially feasible,
When parts of an item of property, plant and
equipment have different useful lives, they
are accounted for as separate items (major
components) of property, plant and equipment.
ii) Subsequent costs
The cost of replacing part of an item of property,
plant and equipment is recognised in the carrying
amount of the item if it is probable that the future
economic benefits embodied within the part will
flow to the Group and its cost can be measured
reliably. The costs of the day-to-day servicing of
property, plant and equipment are recognised in the
statement of comprehensive income as incurred.
iii) Depreciation
Depreciation is recognised in the statement of
comprehensive income on a straight-line basis
over the estimated useful lives of each part of an
item of property, plant and equipment. Land is not
depreciated.
future economic benefits are probable, and the
Group intends to and has sufficient resources to
complete development and to use or sell the asset.
Other development expenditure is recognised in the
statement of comprehensive income when incurred.
ii) Computer software
Acquired computer software licences are capitalised
on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are
amortised over their estimated useful lives, being
up to five years. The amortisation period and
amortisation method is reviewed at each financial
year-end.
Costs associated with developing or maintaining
computer software programmes are recognised
as an expense as incurred. Costs that are directly
associated with the development of identifiable and
unique software products controlled by the Group,
and that will probably generate economic benefits
exceeding costs beyond one year, are recognised as
intangible assets. Costs include the employee costs
DAIRYNZ ANNUAL REPORT 2014/15
65
incurred as a result of developing software and an
value is the estimated selling price in the ordinary course
appropriate portion of relevant overheads.
of business, less the estimated costs of completion and
Computer software development costs recognised as
assets are amortised over their estimated useful lives,
between 5 to 7 years. The amortisation period and
H. Impairment
amortisation method is reviewed at each financial
The carrying amounts of the Group’s assets, are
year-end.
reviewed at each balance sheet date to determine
iii) Subsequent expenditure
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied
in the specific asset to which it relates. All other
expenditure, including expenditure on internally
generated goodwill and brands, is recognised in the
statement of comprehensive income when incurred.
iv) DairyNZ have taken over responsibility for the national dairy database.
The database holds animal evaluation data and
statistics on dairy animals covering 46 identified
fields of animal data, previously maintained by
Livestock Improvement Corporation (LIC). This was
a non-exchange transaction as it was acquired at no
cost. As it is a non-exchange transaction the data
whether there is any objective evidence of impairment.
An impairment loss is recognised whenever the carrying
amount of an asset exceeds its recoverable amount.
Impairment losses directly reduce the carrying amount
of assets and are recognised in the statement of
comprehensive income.
For goodwill and intangible assets that have indefinite
lives or that are not yet available for use, recoverable
amount is estimated at each reporting date.
i) Impairment of loans and receivables, and equity instruments
Impairment losses on an individual basis are
determined by an evaluation of the exposures on
an instrument by instrument basis. All individual
instruments that are considered significant are
needs to be recorded at fair value which in this case
subject to this approach.
is nil.
For trade receivables which are not significant on an
E. Biological assets
individual basis, collective impairment is assessed on
a portfolio basis based on numbers of days overdue,
Biological assets are measured at fair value less point-
and taking into account the historical loss experience
of-sale costs, with any change therein recognised in the
in portfolios with a similar amount of days overdue.
statement of comprehensive income. Point-of-sale costs
The recoverable amount of the Group’s loans and
include all costs that would be necessary to sell the
assets. The Group’s biological assets comprise livestock.
receivables carried at amortised cost is calculated as
the present value of estimated future cash flows,
discounted at the original effective interest rate
F. Leased assets
Leases in terms of which the Group assumes
substantially all the risks and rewards of ownership
are classified as finance leases. Upon initial recognition
the leased asset is measured at an amount equal to
the lower of its fair value and the present value of
the minimum lease payments. Subsequent to initial
recognition, the asset is accounted for in accordance
with the accounting policy applicable to that asset.
Other leases are operating leases and the leased assets
are not recognised on the Group’s balance sheet. (i.e., the effective interest rate computed at initial
recognition of these financial assets). Receivables
with short duration are not discounted.
If, in a subsequent period, the amount of the
impairment loss decreases and the decrease can
be related objectively to an event occurring after
the impairment was recognised, the previously
recognised impairment loss is reversed. The reversal
does not result in a carrying amount of the financial
asset that exceeds what the amortised cost would
have been had the impairment not been recognised
at the date the impairment is reversed. The amount
of the reversal is recognised in the statement of
G. Inventories
Inventories are measured at the lower of cost and net
realisable value. The cost of inventories is based on
the first-in first-out principle, and includes expenditure
incurred in acquiring the inventories and bringing them
to their existing location and condition. Net realisable
66
selling expenses.
DAIRYNZ ANNUAL REPORT 2014/15
comprehensive income.
Equity instruments are deemed to be impaired
whenever there is a significant or prolonged decline
in fair value below the original purchase price.
Any subsequent recovery of an impairment loss in
respect of an investment in an equity instrument
classified as available-for-sale is not reversed through
the statement of comprehensive income. For this
unit credit method. Any actuarial gains or losses
purpose prolonged is regarded as any period longer
are recognised in the statement of comprehensive
than nine months and significant as more than 20
income in the period in which they arise.
percent of the original purchase price of the equity
instrument.
ii) Impairment of property, plant and equipment, intangibles and subsidiaries
The carrying amounts of the property, plant and
equipment, and intangibles, and subsidiaries are
reviewed at each reporting date to determine
whether there is any indication of impairment. If any
such indication exists then the asset’s recoverable
amount is estimated.
An impairment loss is recognised if the carrying
amount of an asset or its cash-generating unit
exceeds its recoverable amount. The recoverable
amount of an asset or cash-generating unit is the
greater of its value in use and its fair value less
costs to sell. A cash-generating unit is the smallest
identifiable asset group that generates cash flows
that are largely independent from other assets and
groups. Impairment losses are recognised in the
ii) Short-term benefits
Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided.
A provision is recognised for the amount expected
to be paid under short-term cash bonus or profitsharing plans if the Group has a present legal or
constructive obligation to pay this amount as a result
of past service provided by the employee and the
obligation can be estimated reliably.
iii) Defined contribution plans
Obligations for contributions to defined contribution
pension plans are recognised as an expense in the
statement of comprehensive income when they
are due.
j. Revenue
i) Industry Good levy
statement of comprehensive income. Impairment
DairyNZ has the power to raise a levy from dairy
losses recognised in respect of cash-generating units
industry participants under the Commodities Levies
are allocated first to reduce the carrying amount
Act 1990. Revenue from the Industry Good levy
of any goodwill allocated to the units and then to
is recognised in the statement of comprehensive
reduce the carrying amount of the other assets in
income when the levy becomes receivable.
the unit (group of units) on a pro rata basis.
ii) Services
An impairment loss in respect of goodwill is not
Revenue from services rendered is recognised in the
reversed. In respect of other assets, impairment
statement of comprehensive income in proportion
losses recognised in prior periods are assessed at
to the stage of completion of the transaction at the
each reporting date for any indications that the loss
reporting date. The stage of completion is measured
has decreased or no longer exists. An impairment
with reference to the project milestones.
loss is reversed if there has been a change in
the estimates used to determine the recoverable
k. Lease payments
amount. An impairment loss is reversed only to the
Payments made under operating leases are recognised
extent that the asset’s carrying amount does not
in the statement of comprehensive income on a
exceed the carrying amount that would have been
straight-line basis over the term of the lease. Lease
determined, net of depreciation or amortisation, if
incentives received are recognised as an integral part of
no impairment loss had been recognised.
the total lease expense, over the term of the lease.
i. Employee benefits
i) Long-term employee benefits
L. Finance income and expenses
Finance income comprises interest income on funds
The Group’s net obligation in respect of long-term
invested, dividend income and gains on the disposal
employee benefits is the amount of future benefit
of available-for-sale financial assets. Interest income
that employees have earned in return for their
is recognised as it accrues, using the effective interest
service in the current and prior periods; that benefit
method. Dividend income is recognised on the date that
is discounted to determine its present value, and
the Group’s right to receive payment is established.
the fair value of any related assets is deducted.
Finance expenses comprise impairment losses and
The discount rate is 3.89% which was the 10-year
interest recognised on financial assets (except for trade
government bond rate bill rate as at 31 May 2015.
receivables).
The calculation is performed using the projected
DAIRYNZ ANNUAL REPORT 2014/15
67
M. Income tax
4. Determination of fair values
Section CW51 of the Income Tax Act 2007 will apply
to exempt income derived from DairyNZ Incorporated
A number of the Group’s accounting policies and
Group and certain of its subsidiaries.
disclosures require the determination of fair value, for
In accordance with section CW49 (1) of the Income Tax
Act 2007 DairyNZ Limited has been granted exemption
from income tax.
N. Standards, amendments and interpretations issued that are not yet effective and have not been early adopted
DairyNZ, as a not-for-profit (NFP) public benefit entity will be required to adopt a new suite of
accounting standards (“PBE Standards” – with NFP
guidance) applicable to NFP entities. Within the new
framework there are four different tiers of accounting
standards applicable for public benefit entities.
both financial and non-financial assets and liabilities.
Fair values have been determined for measurement
and/or disclosure purposes based on the following
methods. Where applicable, further information about
the assumptions made in determining fair values is
disclosed in the notes specific to that asset or liability.
a. Biological assets
The fair value of livestock is based on the market price
of livestock of similar age, breed and genetic make-up.
B. Inventory
The fair value of inventory that is transferred from
biological assets (“agricultural produce”) is determined
Due to the size of DairyNZ (with total expenses over
based on the market price of the agricultural produce
$30 million), DairyNZ will fall under Tier 1 of the
at the point of harvest less costs to sell. new Accounting Standards Framework, and must
therefore applyall of the PBE accounting standards
including the full disclosure requirements.
DairyNZ will be required to adopt these standards
for periods beginning from 1 April 2015, therefore
this will apply to DairyNZ’s 31 May 2016 financial
statements, as well as the comparatives in these
c. Investments and equity securities
The fair value of investments in equity securities
accounted for as available-for-sale financial assets is
determined by reference to the published market prices
at the reporting date. financial statements. DairyNZ can also choose to early
adopt these standards.
The impact of the adoption of these standards is yet
to be assessed.
5. LEVY REVENUE
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
Fonterra
58,078
57,030
58,078
57,030
Westland
2,533
2,487
2,533
2,487
Open Country Dairy
3,539
3,031
3,539
3,031
Synlait
1,837
1,721
1,837
1,721
Miraka
784
716
784
716
Tatua
565
478
565
478
Other Dairy Companies
700
236
700
236
68,036
65,699
68,036
65,699
68
DAIRYNZ ANNUAL REPORT 2014/15
6. OTHER INCOME
Consolidated*
In thousands of New Zealand dollars
Parent**
2015
2014
2015
2014
9
270
-
-
57
82
-
-
-
2,459
-
-
Farm income
1,541
2,346
-
-
MBIE research funding
8,644
7,304
1,754
788
Primary Growth Partnership
7,824
7,368
7,824
7,369
251
145
-
-
Research commercial income
4,374
4,655
-
-
Dairy Training course fees
1,295
1,039
-
-
764
587
4
-
24,760
26,255
9,582
8,157
Movement in fair value of livestock
Net gain on sale of property, plant and equipment
Reversal of land impairment
Sustainable Farming fund
Other funding
7. PROGRAMME EXPENSES
Programme expenses include all investments from the parent to organisations for delivery of work related to one
of the 10 dairy industry strategic objectives. The reduction between the parent and the consolidated expenditure
reflects the portion that is being funded to DairyNZ subsidiaries.
The following items of expenditure are included in programme expenses:
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
Farm profit
1,771
3,201
15,640
14,861
Research and development
9,625
8,891
15,011
14,291
Talented people
4,588
2,842
6,160
5,398
15,604
15,528
16,240
15,653
Industry information systems
264
526
4,561
3,815
Environmental stewardship
194
462
3,254
3,287
Animal welfare
280
430
2,112
1,989
Work environment
(0)
437
1,872
1,472
Local communities
610
308
2,464
2,444
National prosperity
468
464
7,277
6,876
On-farm innovation fund
262
147
262
182
33,666
33,236
74,853
70,268
Biosecurity
DAIRYNZ ANNUAL REPORT 2014/15
69
8. OPERATIONAL EXPENSES
Operational expenses include costs incurred by DairyNZ subsidiaries for undertaking research, development and
extension activities. These activities are funded through levy investment and government funding.
The following items of expenditure are included in operational expenses:
In thousands of New Zealand dollars
Consolidated*
Parent**
NOTE
2015
2014
2015
2014
12
271
208
-
-
Auditors remuneration audit fees
65
65
-
-
Auditors remuneration other audit-related services
15
7
-
-
Building costs
484
474
-
-
Commodity levy collection fee
340
328
340
329
Computing costs
920
630
-
-
1,971
1,924
-
-
Directors’ fees (includes directors of subsidiaries)
563
557
-
-
Directors' and governance expenses
149
178
-
-
External services (Legal)
180
54
-
-
Impairment in investment in subsidiaries
-
-
2,833
2,262
Investment operations fee
-
-
2,000
2,000
Office costs
1,410
1,481
-
-
Operating costs
5,989
5,000
-
-
452
449
-
-
24,208
21,423
-
-
-
-
642
530
18,814
16,788
-
-
348
382
-
-
Travel costs
1,670
1,494
-
-
Other
1,546
1,580
-
-
59,395
53,021
5,815
5,121
Operational expenses
Amortisation
Depreciation
11
Operating leases
Personnel expenses
Primary Growth Partnership and MBIE Administration fee
Provider services and sub-contracts
Repairs and maintenance
9
Research and development costs are included in programme and operational expenses.
The group’s research and development costs for the period were $43.57 million (2014: $38.65 million)
The parents’ research and development costs for the period were $26.74 million (2014: $34.01 million)
Other audit related expenses relate to tax advice, follow up of an ICT security assessment, and internal audit
programme development review.
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DAIRYNZ ANNUAL REPORT 2014/15
9. PERSONNEL EXPENSES
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
24,028
21,444
-
-
Increase in liability for long-service leave
6
3
-
-
Increase (decrease) in other long-term employee benefits
3
(68)
-
-
Increase in holiday pay provision
251
26
-
-
Increase (decrease) in at risk salary provision
(80)
18
-
-
24,208
21,423
-
-
Wages and salaries
10. FINANCE INCOME AND EXPENSES
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
Interest income on loans and receivables
1,113
908
171
137
Finance income
1,113
908
171
137
Interest payable on loans and payables
-
-
-
-
Finance expense
-
-
-
-
1,113
908
171
137
Net finance income
DAIRYNZ ANNUAL REPORT 2014/15
71
11. Property, plant and equipment
Consolidated*
In thousands of New Zealand dollars
Land
Buildings
Leasehold
improvements
Farm
development
Plant and
equipment
Vehicles
Total
Cost or deemed cost
Balance at 1 June 2013
10,850
12,273
854
908
5,710
2,941
33,535
Additions
2,346
83
1
76
953
703
4,161
Disposals
-
(72)
(315)
(386)
Balance at 31 May 2014
13,196
12,356
855
984
6,591
3,330
37,311
Balance at 1 June 2014
13,196
12,356
855
984
6,591
3,330
37,311
-
-
50
669
592
1,311
(34)
(278)
(311)
Additions
-
Disposals
-
Balance at 31 May 2015
13,196
12,356
855
1,034
7,226
3,644
38,310
3,558
742
411
3,465
1,589
12,370
580
25
66
706
548
1,924
Depreciation and impairment losses
Balance at 1 June 2013
2,605
Depreciation for the year
-
Impairment loss reversal
(2,459)
Disposals
(2,459)
-
(63)
(272)
(335)
Balance at 31 May 2014
146
4,138
767
477
4,108
1,865
11,500
Balance at 1 June 2014
146
4,138
767
477
4,108
1,865
11,500
579
25
71
710
587
1,971
(33)
(203)
(236)
Depreciation for the year
-
Disposals
-
Balance at 31 May 2015
146
4,717
791
548
4,785
2,249
13,235
At 1 June 2013
8,245
8,715
113
496
2,245
1,352
21,166
At 31 May 2014
13,050
8,218
88
506
2,483
1,465
25,811
At 1 June 2014
13,050
8,218
88
506
2,483
1,465
25,811
At 31 May 2015
13,050
7,639
64
486
2,441
1,395
25,075
Carrying amounts
Parent
No property, plant and equipment are held by the Parent entity.
Revaluation of Land
Land at the Newstead farms was fair valued as at 31 May 2014 by Telfer Young (Waikato) Limited, independent registered
valuers. The valuation established a market value and was undertaken in accordance with the Property Institute of New
Zealand (PINZ) International Valuation Standards. Market value is the estimated amount for which a property should
exchange on the date of valuation between willing buyer and a willing seller in an arms length transaction.
The value of the land is $13,050,000 (2014: $13,050,000).
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DAIRYNZ ANNUAL REPORT 2014/15
12. INTANGIBLE ASSETS
Consolidated*
In thousands of New Zealand dollars
SOFTWARE
Cost
Balance at 1 June 2013
1,520
Acquisitions – separately
1,614
Disposals
-
Balance at 31 May 2014
3,134
Balance at 1 June 2014
3,134
Acquisitions – separately
2,259
Disposals
Balance at 31 May 2015
5,393
Amortisation and impairment losses
Balance at 1 June 2013
713
Amortisation for the year
208
Impairment loss
-
Balance at 31 May 2014
921
Balance at 1 June 2014
921
Amortisation for the year
271
Disposals
-
Impairment loss
-
Balance at 31 May 2015
1,192
Carrying amounts
At 1 June 2013
807
At 31 May 2014
2,213
At 1 June 2014
2,213
At 31 May 2015
4,201
Parent
No property, plant and equipment are held by the Parent entity.
DAIRYNZ ANNUAL REPORT 2014/15
73
13. BIOLOGICAL ASSETS
In thousands of New Zealand dollars
Consolidated*
Balance at 1 June
2015
2014
2015
2014
1,508
1,561
-
-
-
-
-
-
(259)
(323)
-
-
(9)
270
-
-
1,240
1,508
-
-
-
-
-
-
1,240
1,508
-
-
862
856
-
-
Increase due to acquisitions
Decrease due to sales
Change in fair value less estimated point-of-sale costs
Balance at 31 May
Non-current
Current
Number of livestock at 31 May
Parent**
The Group is exposed to a number of risks related to its livestock:
Regulatory and environmental risks
The Group is subject to laws and regulations in New Zealand. The Group has established environmental policies and
procedures aimed at compliance with local environmental and other laws.
Climate and other risks
The Group’s livestock are exposed to the risk of damage from climatic changes, diseases and other natural forces.
The Group has extensive processes in place aimed at monitoring and mitigating those risks, including regular
industry pest and disease surveys. 14. SUBSIDIARIES
The Group has the following significant subsidiaries:
COUNTRY
CLass of
share
Dexcel Holdings Limited
NZ
DairyNZ Limited
Voting interest eld %
2015
2014
Balance
date
PRincipal activity
Ordinary
100
100
31 May
Holding company
NZ
Ordinary
100
100
31 May
Dairy industry research,
development and extension
Dairy Training Limited
NZ
Ordinary
100
100
31 May
Dairy industry training
New Zealand Animal
Evaluation Limited
NZ
Ordinary
100
100
31 May
Maintenance of a national
breeding index
Dairy InSight (PGGR
Consortia) Limited
NZ
Ordinary
100
100
31 May
Greenhouse gas emission
research
InSight Genomics Limited
NZ
Ordinary
100
100
31 May
Pastoral genomics ryegrass
research
Johnes Co Dairy InSight
Limited
NZ
Ordinary
100
100
31 May
Johnes disease research
DairyNZ Accreditation
Limited
NZ
Ordinary
100
100
31 May
Accreditation of dairy industry
services
NAME
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DAIRYNZ ANNUAL REPORT 2014/15
15. Joint ventures and associates
In thousands of New Zealand dollars
Ownership Current NonTotal
Current
NonTotal
Revenues Expenses
%
assets current assets liabilities current liabilities
asset
liabilities
Profit/
(loss)
2014
Pastoral
Greenhouse
Gas
Research
Consortium
24.6%
629
-
629
469
-
469
590
1,502
(912)
Pastoral
Genomics
10.0%
177
36
213
98
-
98
319
1,677
(1,358)
Johnes
Consortium
20.0%
299
-
299
16
-
16
67
58
9
1,105
36
1,141
583
-
583
976
3,237
(2,261)
2015
Pastoral
Greenhouse
Gas
Research
Consortium
25.7%
490
-
490
336
-
336
611
1,616
(1,005)
Pastoral
Genomics
43.8%
2,282
174
2,456
1,827
-
1,827
1,051
2,572
(1,521)
Johnes
Consortium
20.0%
246
-
246
-
-
-
93
130
(37)
3,018
174
3,192
2,163
-
2,163
1,755
4,318
(2,563)
The Group accounts for its investment in joint ventures by using the proportionate consolidation method. The
Group's share of the joint ventures assets, liabilities, income and expenses are included in the Statement of
Comprehensive Income and Statement of Financial Position.
DairyNZ has a 45.45% shareholding in OSPRI Limited which was established on 30 May 2013. This company operates
the National Animal Identification and Tracing scheme for cattle and deer.
OSPRI Limited is an associate, however is not equity accounted as it is a charitable entity – registration number
CC49247. DairyNZ will not receive any future tangible financial benefit from OSPRI Limited or will be entitled to any
distributions on winding up.
DAIRYNZ ANNUAL REPORT 2014/15
75
16. INVESTMENTS
Consolidated*
In thousands of New Zealand dollars
NOTE
Parent**
2015
2014
2015
2014
-
-
34,813
34,340
1,707
2,130
-
-
1,707
2,130
34,813
34,340
Non-current investments
Investments in subsidiaries
Available-for-sale financial assets
24
17. INVEntories
In thousands of New Zealand dollars
Hay and silage
Laboratory supplies
Consolidated*
Parent**
2015
2014
2015
2014
126
168
-
-
12
18
-
-
138
186
-
-
18. TRADE RECEIVABLES
In thousands of New Zealand dollars
Trade receivables due from related parties
Other trade receivables
Intercompany prepayments
Prepayments
Consolidated*
Parent**
2015
2014
2015
2014
-
-
2,645
2,410
7,780
7,386
4,902
4,764
-
-
4,329
2,958
358
200
150
-
8,138
7,586
12,026
10,132
19. CASH AND CASH EQUIVALENTS
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
Bank balances
10,553
3,683
4,024
427
Call deposits
25,000
26,000
2,000
6,000
Cash and cash equivalents in the statement of cash flows
35,553
29,683
6,024
6,427
The effective interest rate on call deposits in 2015 was 4.50 percent (2014: 4.28 percent). The deposits had an
average maturity of 100 days (2014: 90 days).
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DAIRYNZ ANNUAL REPORT 2014/15
20. Members’ funds and reserves
DairyNZ’s capital is its equity (or members’ funds) which comprise retained earnings, fair value reserves and
contributions by owners. Equity is represented by net assets.
DairyNZ manages its revenues, expenses, assets, liabilities and general financing dealings prudently. DairyNZ’s
equity is largely managed as a by-product of managing income, expenses, assets, liabilities and compliance with the
directors’ instructions.
The objective of managing DairyNZ’s equity is to ensure that DairyNZ effectively achieves its goals and objectives for
which it has been established, while remaining a going concern.
Fair value reserve
The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until
the investment is derecognised or impaired.
21. Employee entitlements
Provision for employee entitlements
The provision for employee entitlements relates to employee benefits such as at risk incentive provisions, long service
leave, accrued annual leave and retirement allowances.
In thousands of New Zealand dollars
Balance at 31 May
Non-current
Current
Consolidated*
Parent**
2015
2014
2015
2014
3,168
2,889
-
-
77
72
-
-
3,091
2,817
-
-
22. Trade and other payables
In thousands of New Zealand dollars
Trade payables due to related parties
Other trade payables
Non-trade payables and accrued expenses
Consolidated*
Parent**
2015
2014
2015
2014
-
-
16,904
14,962
14,057
7,107
3,760
2,168
4,434
4,558
2,430
1,582
18,491
11,665
23,094
18,712
DAIRYNZ ANNUAL REPORT 2014/15
77
23. Financial instruments
Classification and fair values
Consolidated*
In thousands of New Zealand dollars
Note
Loans and
receivables
2014
2015
Available-for- Other amortised
sale
cost
2014
2015
2015 2014
Total carrying
amount
Fair
value
2015
2014
2015
2014
Financial assets
Investments
16
Total non-current
financial assets
-
-
1,707
2,130
-
-
1,707
2,130
1,707
2,130
-
-
1,707
2,130
-
-
1,707
2,130
1,707
2,130
Trade receivables
18
8,138
7,586
-
-
-
-
8,138
7,586
8,138
7,586
Cash and cash
equivalents
19
35,553
29,683
-
-
-
-
35,553
29,683
35,553
29,683
43,691
37,270
-
-
-
-
43,691
37,270
43,691
37,270
43,691
37,270
1,707
2,130
-
-
45,398
39,400
45,398
39,400
Other non-current
financial liabilities
-
-
-
-
-
-
-
-
-
-
Total non-current
financial liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,491
11,665
18,491
11,665
18,491
11,665
-
-
-
-
18,491
11,665
18,491
11,665
18,491
11,665
-
-
-
-
18,491
11,665
18,491
11,665
18,491
11,665
Total current
financial assets
Total financial
assets
Financial
liabilities
Trade payables
Total current
financial liabilities
Total financial
liabilities
78
22
DAIRYNZ ANNUAL REPORT 2014/15
Classification and fair values
Parent**
In thousands of New Zealand dollars
Note
Loans and
receivables
2014
2015
Available-forsale
2014
2015
Other amortised
cost
Total carrying
amount
Fair
value
2015
2014
2015
2014
2015
2014
Financial assets
Investments
16
Total non-current
financial assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Trade receivables
18
12,026
10,133
-
-
-
-
12,026
10,133
12,026
10,133
Cash and cash
equivalents
19
6,025
6,427
-
-
-
-
6,025
6,427
6,025
6,427
18,051
16,560
-
-
-
-
18,051
16,560
18,051
16,560
18,051
16,560
-
-
-
-
18,051
16,560
18,051
16,560
Other non-current
financial liabilities
-
-
-
-
-
-
-
-
-
-
Total non-current
financial liabilities
-
-
-
-
-
-
-
-
-
-
Other current
financial liabilities
-
-
-
-
1,623
1,163
1,623
1,163
1,623
1,163
-
-
-
-
23,094
18,712
23,094
18,712
23,094
18,712
-
-
-
-
24,717
19,875
24,717
19,875
24,717
19,875
-
-
-
-
24,717
19,875
24,717
19,875
24,717
19,875
Total current
financial assets
Total financial
assets
Financial
liabilities
Trade payables
Total current
financial liabilities
Total financial
liabilities
22
DAIRYNZ ANNUAL REPORT 2014/15
79
24. FINANCIAL INSTRUMENTS
Exposure to currency, interest rate and credit risk arises in the normal course of the Group’s business. Derivative
financial instruments are used as a means of reducing exposure to fluctuations in foreign exchange rates and interest
rates. While these financial instruments are subject to the risk of market rates changing subsequent to acquisition,
such changes would generally be offset by opposite effects on the items being hedged.
a. credit risk
Credit risk is the risk that the counterparty to a transaction with the Group will fail to discharge its obligations,
causing the Group to incur a financial loss. The Group is exposed to credit risk through the normal trade credit
cycle and advances to third parties. No collateral is required in respect of financial assets. Management has a
credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Reputable financial institutions are used for investing and cash handling purposes.
The maximum exposure to credit risk is represented by the carrying value of each financial asset in the Statement
of Financial Position.
The status of trade receivables at the reporting date is as follows:
Consolidated*
In thousands of New Zealand dollars
Gross receivable
Impairment
Gross receivable
Impairment
2015
2014
2014
2014
7,671
-
7,300
-
-
-
-
-
Past due 31-120 days
29
-
85
-
Past due 121-360 days
80
-
2
-
-
-
-
-
7,780
-
7,386
-
Gross receivable
Impairment
Gross receivable
Impairment
2015
2014
2014
2014
7,438
-
7,175
-
-
-
-
-
Past due 31-120 days
29
-
-
-
Past due 121-360 days
80
-
-
-
7,547
-
7,175
-
Trade receivables
Not past due
Past due 0-30 days
Past due more than 1 year
Total
Parent**
In thousands of New Zealand dollars
Trade receivables
Not past due
Past due 0-30 days
Total
B. MARKET RISK
i) Foreign currency risk
Foreign currency risk is the risk that the value of the Group’s assets and liabilities will fluctuate due to changes
in foreign exchange rates. The Group has no current exposure to foreign currency risk. ii) Interest rate risk
Interest rate risk is the risk that the value of the Group’s assets and liabilities will fluctuate due to changes in
market interest rates. The Group is exposed to interest rate risk primarily through its cash balances.
80
DAIRYNZ ANNUAL REPORT 2014/15
interest rate risk
Consolidated*
In thousands of New Zealand dollars
2015
2014
Balance
Maturity date
Effective
INTEREST rate
Balance
Maturity date
Effective
INTEREST rate
Short-term deposit
4,000
22/06/15
4.00%
Short-term deposit
2,500
20/08/15
4.56%
Short-term deposit
2,500
22/06/15
4.17%
Short-term deposit
2,000
22/06/15
4.66%
Short-term deposit
2,000
22/06/15
4.66%
Short-term deposit
2,500
21/09/15
4.51%
Short-term deposit
2,500
21/09/15
4.45%
Short-term deposit
2,500
21/09/15
4.45%
Short-term deposit
4,500
21/09/15
4.20%
Short-term deposit
3,000
19/08/14
4.25%
Short-term deposit
6,000
19/08/14
4.41%
Short-term deposit
1,000
19/08/14
4.40%
Short-term deposit
3,000
29/07/14
4.27%
Short-term deposit
4,000
25/07/14
4.37%
Short-term deposit
3,000
25/06/14
4.22%
Short-term deposit
6,000
25/06/14
4.05%
Average effective
interest rate
25,000
26,000
4.50%
4.28%
Parent*
In thousands of New Zealand dollars
2015
2014
Balance
Maturity date
Effective
INTEREST rate
Short-term deposit
3,000
29/07/14
4.27%
Short-term deposit
3,000
19/08/14
4.25%
Short-term deposit
Average effective
interest rate
Balance
Maturity date
Effective
INTEREST rate
2,000
22/06/15
4.66%
2,000
6,000
4.54%
4.26%
DAIRYNZ ANNUAL REPORT 2014/15
81
Available-for-sale financial assets of the Group relate to:
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
112
112
-
-
Fonterra Co-operative Supply Shares
1,537
1,945
-
-
Fonterra Co-operative Capital Notes
33
32
-
-
Livestock Improvement Corporation Ltd
26
41
-
-
1,707
2,130
-
-
Equity securities available-for-sale
Ballance Agri Nutrients Co-Operative Ltd
Capital management
The Group’s members’ funds includes retained earnings and reserves.
The Group is not subject to any externally imposed capital requirements.
The Group’s policies in respect of capital management and allocation are reviewed regularly by the directors.
There have been no material changes in the Group’s management of capital during the period.
Sensitivity analysis
In managing cashflow the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings
by investing in short-term deposits. Over the longer-term, however, permanent changes in interest rates will have
an impact on profit. A decrease in interest rates of one percent would reduce interest income by $32,830 (2014:
$33,293). Cash deposits made on DairyNZ's behalf are made only with New Zealand registered banks with an
appropriate credit rating. 25. operating leases
Leases as leAsee
Non-cancellable operating lease rentals are payable as follows:
In thousands of New Zealand dollars
Consolidated*
2015
2014
Less than one year
244
344
Between one and five years
463
741
More than five years
445
603
1,152
1,687
The Group leases a number of facilities under operating leases. The leases typically run for a period of three years, with
an option to renew the lease after that date. Lease payments are increased periodically to reflect market rentals.
26. CAPITAL COMMITMENTS
As at 31 May 2015, DairyNZ Incorporated has a capital commitment of $915,000 for the development of the Dairy
Industry Good Animal Database and the Animal Evaluation system. (2014: $2.0m).
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DAIRYNZ ANNUAL REPORT 2014/15
27. contingencies
In the normal course of business, DairyNZ as an investor agrees to co-fund industry good projects pending the
providers ability to secure funding from other sources.
In thousands of New Zealand dollars
Consolidated*
2015
2014
Less than one year
1,403
4,078
Between one and five years
5,260
15,704
-
2,210
6,663
21,992
More than five years
28. committed funds
In thousands of New Zealand dollars
Consolidated*
2015
2014
Less than one year
43,586
36,428
Between one and five years
98,888
104,181
More than five years
32,234
35,430
174,709
176,039
This relates to funds committed for future projects which are subject to certain conditions being met.
29. Reconciliation of the profit for the period with the net cash from operating activities
In thousands of New Zealand dollars
Consolidated*
Parent**
2015
2014
2015
2014
847
6,605
(2,878)
(1,396)
1,971
1,924
-
-
271
208
-
-
(9)
(270)
-
-
-
-
-
-
Gain on sale of fixed assets
(57)
(82)
-
-
Loss on sale of fixed assets
-
14
-
-
Impairment reversal of available property, plant and equipment
-
(2,459)
-
-
Impairment of investment in joint ventures
-
-
2,833
2,262
2,177
(664)
2,833
2,262
48
(9)
-
-
Change in trade receivables
(551)
(295)
(1,894)
(2,817)
Change in trade and other payables
6,231
(2,852)
4,842
2,577
280
(32)
-
-
6,007
(3,188)
2,948
(240)
9,030
2,753
2,903
626
Profit/(loss) for the period
Adjustments for:
Depreciation
Amortisation of intangible assets
Change in fair value of biological assets
Loss on disposal of biological assets
Change in inventories
Change in provisions and employee benefits
Net cash from operating activities
DAIRYNZ ANNUAL REPORT 2014/15
83
30. related parties
Parent and ultimate controlling party
The immediate parent and controlling party of the Group is DairyNZ Incorporated.
Transactions with key management personnel
Key management personnel compensation comprised:
In thousands of New Zealand dollars
Employee benefits - short-term
2015
2014
2,437
2,450
2,437
2,450
Key management personnel have not entered into any transactions with the Group other than the above.
DairyNZ directors also act as directors and are shareholders of the following various entities, with which DairyNZ
transact with as part of ordinary business:
B. Allomes Shareholder of Fonterra Co-operative Limited, Livestock Improvement Corporation Limited, Ravensdown Fertiliser Co-operative Limited, Farmlands Trading Society and Ballance Agri-Nutrients Limited and trustee of the New Zealand Dairy Industry Awards Trust.
H. Anderson Director of the National Institute of Water and Atmospheric Research (NIWA), Member of the Massey University Council.
A. Body Shareholder of Fonterra Co-operative Limited, Livestock Improvement Corporation Limited and Ravensdown Fertiliser Co-operative Limited and trustee of the New Zealand Dairy Industry Awards Trust.
B. Harris Director of AgResearch Limited.
J. Van der Poel Shareholder of Fonterra Co-operative Limited, Livestock Improvement Corporation Limited, Ravensdown Fertiliser Co-operative Limited and Ballance Agri-Nutrients Limited.
J. Luxton Shareholder of Fonterra Co-operative Limited, Livestock Improvement Corporation Limited, Ravensdown Fertiliser Co-operative Limited, Ballance Agri-Nutrients Limited, director and shareholder of Tatua Co-operative Dairy Company Limited, and trustee of the Massey University Foundation and director of Landcare Research New Zealand Limited.
P. Schuyt Director of Tatua Co-operative Dairy Company Limited and Landcare Research New Zealand Limited.
M. Spaans Director and shareholder of Fonterra Co-operative Limited, shareholder of Livestock Improvement Corporation Limited, Ravensdown Fertiliser Co-operative Limited, Farmlands Trading Society, Ballance Agri-Nutrients Limited and director of Waikato Innovation Park Limited and Shoof International Limited.
Directors of DairyNZ subsidiary companies may also have interests in related parties.
A number of board directors and management have pecuniary interests in dairy farms which are levy payers to this
organisation.
84
DAIRYNZ ANNUAL REPORT 2014/15
Other related party transactions
DairyNZ enters into funding and investment transactions (programme expenses) with its subsidiaries and joint
ventures in the ordinary course of business. In thousands of New Zealand dollars
Transaction value
balance outstanding
2015
2014
2015
2014
39,819
41,816
9,605
9,605
New Zealand Animal Evaluation Limited
2,529
1,684
-
-
Insight Genomics Limited
2,306
1,365
-
-
Pastoral Greenhouse Gas Research Consortia
1,000
1,000
-
-
-
-
-
-
127
71
-
-
DairyNZ Limited
Johnes Disease Research Consortium
Dairy Training Limited
All transactions and outstanding balances with these related parties are to be settled in cash within six months of the
reporting date. None of the balances are secured.
31. Subsequent events
There were no subsequent events that have occurred since balance date.
DAIRYNZ ANNUAL REPORT 2014/15
85
income and expenditure plan – 2015/16
As per the rules of DairyNZ Incorporated, DairyNZ must provide an income and expenditure plan for the next financial year.
In thousands of New Zealand dollars
2016
2015
Forecast
actual
movement
67,015
68,036
(1,021)
Primary Growth Partnership
8,017
7,824
193
MBIE Partnership
2,579
1,754
825
120
176
(56)
77,731
77,790
(59)
Farm profit
16,858
15,640
1,218
Research and development
15,018
15,011
7
5,964
6,160
(196)
17,695
16,240
1,455
Industry information systems
5,149
4,561
588
Environmental stewardship
3,370
3,254
116
Animal welfare
2,439
2,112
327
Work environment
2,471
1,872
599
Local communities
2,519
2,464
55
National prosperity
9,223
7,277
1,946
250
262
(12)
80,956
74,853
6,103
44,670
39,819
4,851
7,175
5,528
1,647
10,789
10,930
(141)
62,634
56,277
6,357
NOTE
DairyNZ Inc (Parent)
Revenue
Milksolids Levy
Other income
1
Levy funds invested in
Talented people
Biosecurity and product integrity
On-farm innovation fund
Total investment expenses
2
DairyNZ subsidiary companies
Revenue
Levy income from DairyNZ Inc
Other income from DairyNZ Inc
Other operating income
3
86
DAIRYNZ ANNUAL REPORT 2014/15
Income and expenditure plan – 2015/16 continued
In thousands of New Zealand dollars
2016
2015
Forecast
actual
movement
280
271
9
84
80
4
Building costs
468
484
(16)
Commodity levy collection fee
349
340
9
PGP & MBIE management fee
551
642
(91)
Computing costs
977
920
57
3,170
1,971
1,199
Directors’ fees
582
563
19
Directors governance expenses
150
149
1
74
180
(106)
Office costs
1,430
1,410
20
Operating costs and other
5,744
5,989
(245)
443
452
(9)
Personnel expenses
24,888
24,208
680
Provider services and sub-contracts
21,671
18,814
2,857
351
348
3
1,639
1,546
93
62,851
58,367
4,484
(3,442)
847
(4,289)
NOTE
Operational expenses
Amortisation
Auditors remuneration audit fees
Depreciation
External services (legal)
Operating leases
Repairs and maintenance
Travel costs
Total operational expenses
4
Profit/(loss) before income tax
Notes
1. A decrease of 1.5% in milksolids levy revenue is forecast in the 2015/16 season.
2. Increased investment in the farm profit area for additional funding of work in farm systems, improving financial
capability and adoption projects.
Increased investment in the biosecurity area for the TB National Pest Management Strategy.
Increased investment in the information systems area for Dairy Industry Good Animal Database and Animal
Evaluation unit operational costs.
Increased investment in the national prosperity area for additional policy initiatives around regional farming with limits.
3. Increased subsidiary revenue due to more levy funds being passed down to subsidiaries.
4. Operational expenditure varies with the number and type of projects being undertaken. The overall increase
in operating expenditure reflects an overall increase in work undertaken. A large portion of the increase is
reflected in increased provider services and sub contract costs meaning an increase in work performed outside
of DairyNZ. The increase in depreciation expenditure includes depreciation of the Dairy Industry Good Animal
Database and depreciation for methane measuring technology.
DAIRYNZ ANNUAL REPORT 2014/15
87
Publications
DairyNZ experts write for a number of publications throughout the year so that farmers
and the wider dairy industry have access to our knowledge. For a complete list of
published articles visit dairynz.co.nz.
In 2014/15, DairyNZ specialists wrote the following:
STATS
60%
of articles written were for
national media
63%
of articles featured in rural
publications
64
media releases sent by DairyNZ
in 2014/15
(these releases give farmers’
side of the story and release
up-to-date industry news)
88
DAIRYNZ ANNUAL REPORT 2014/15
39
articles for farming
publications
39
articles for peer reviewed
journal publications
44
articles for regional
media
46
articles for dairy industry
conferences and journals
32
articles for farming
publications
ONLINE
2.3 million
dairynz.co.nz page views in
2014/15.
This follows the consolidation of eight websites into the one,
giving farmers one place for farm information.
790,000
Social Media
page views on
Rosie’s World
Farmers, industry and the general
public follow DairyNZ on social media.
website
Below shows just how many.
4253
Gumboot Glory
game apps installed
on mobile devices.
This game gets rid
of unwanted pests
threatening our
clean, green country.
4838 – Facebook
4344 – Twitter
3022 – Linkedin
A 2014 Facebook campaign for
StockSense reached 4505 people
and had direct engagement with
2749 people (likes/shares/comments
and clicks to dairynz.co.nz).
DairyNZ
Corner Ruakura and Morrinsville Roads
Private Bag 3221
Hamilton 3240
0800 4 DairyNZ (0800 4 324 7969)
Email [email protected]
dairynz.co.nz
90
DAIRYNZ ANNUAL REPORT 2014/15