Converts to the dairy herd

JON MORGAN/The Dominon Post

EARLY RISERS: The dairying experience of farm manager Andy Hunt, left, is an added bonus for former sheep and potato farmer Donald Fraser. 'People talk about the long hours in dairying, but getting up early sure beats dagging fly-blown lambs.'

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This is a new dairy farm.

The rotary milking shed is almost fresh out of the box – no dents or scratches yet – and the irrigator stands unmuddied in the fields. And the people, too, are new to dairying.

You can tell by the notices on the donko whiteboard: "Backing gate to be used only to fill space at back of yard NOT to push cows into platform" and "Quiet happy cow = less shit MORE MILK".

Such fundamental messages are still needed as the staff at the 12-week-old Rawhiti Dairies at Ashcott get to grips with their new jobs.

They've started well – Fonterra's daily digest of milk returns has them already performing at above the top 10 per cent for their district – and their modest goal is to coax at least 400 kilograms of milksolids from each of their 1150 cows by season's end, well above the national average.

Former lamb finishers and potato growers Donald and Karen Fraser have spent $15.5 million on land, shed, cows, Fonterra shares, irrigator and associated infrastructure, such as fences, laneways, water reticulation and effluent treatment.

The remodelled farm joins the many other dairy conversions that in recent years have transformed the free-draining central Hawke's Bay flats.

The couple are new to dairying and so are all of their staff except one – farm manager Andy Hunt. But they're all keen to learn. Mr Fraser says working with cows is much more pleasant than handling sheep. "People talk about the long hours in dairying, but getting up early sure beats dagging fly-blown lambs."

He is an enthusiastic supporter of the dairy industry. "I like the way it all fits together, everybody supporting each other, and with one big guy, Fonterra, to look after it all."

By contrast, he says, the meat industry is in disarray, with competition between New Zealand companies in overseas markets undermining farmers' profitability. "You work hard all year not knowing if you're going to get $3 a kilogram or $5 for your lambs. If it's $3, you've done all that work for nothing."

But with dairying, the likely payout is signalled well in advance and budgeting is straightforward. "It's all set out in front of you and the great thing is it's up to you to decide how you want to farm to make the most of it."

The decision to convert came when the couple bought their way out of their Otane-based family farming operation last year. Mr Fraser had farmed with his parents and brothers since leaving school, but at the age of 40 made an offer for the 650 hectares at Ashcott that he had looked after since it was bought in 2000.

"It was time to do something for ourselves," he says. "In life, you want to hoe your own row."

Years of poor returns had made him disillusioned with sheep farming and growing potatoes was no longer the challenge that had once excited him. "We sat down to work out what we were going to do next and the easiest thing was to borrow heaps more money and convert to dairy," he says with a laugh.

He sought advice from Fonterra and neighbour Peter Barry, who with wife Andrea runs a seven- farm 6500-cow business, looked at milking sheds and talked to stock agents about buying cows. He decided he did not need to know the intricacies of how to milk cows. A good manager could do that.

"For it to be a success, I needed to know how to run the business, how to put the jigsaw together. I had already proved I could do that, with potatoes."

He began planting potatoes on the Otane farm 15 years ago for supply to Wattie's and then McCain Foods, building it up to be McCain's biggest grower and supplying it with 25 per cent of its business.

When McCain closed its Feilding plant two years ago he turned to Auckland chip- makers Fresha Foods and Mr Chips. Now, he and the Barrys run Ashcott Potatoes, pooling their production to supply Auckland.

The dairying jigsaw started to come together. The bank approved the loan, backed by projected income based on a $4.50 payout.

Mr Fraser set stock agents on the trail of the more than 1000 cows he would need, hired Mr Hunt, an experienced farm manager from Marton, then consultant Bruce McCluskey of Palmerston North- based Parry Matthews, and contracted builders John Barley and Steve Linnell, of Hastings, to build the shed and yards.

Mr Fraser describes the result of these efforts as "phenomenal". The cows came from three Waikato herds and one at Tutira, north of Napier.

Costing $2300 each, all arrived in-calf and in top condition despite the drought. He, Mr Hunt and Mr McClusky all have high praise for Mr Barley and Mr Linnell, with Mr McCluskey describing the milking shed's design and yard layout as the best he has seen.

Mr McCluskey puts the success of the conversion down to Mr Fraser's careful planning and says his best decision was hiring Mr Hunt. Milk production has started at a high level, due to the farm's good fertiliser history, new pastures, good cows and good management, he says.

"They've got off to a flyer." He thinks the farm's aim to get production above 400kg a cow is conservative, with 500kg more likely.

Mr Hunt says workers were hired for their keenness, not their experience. "I was confident I could teach someone with common sense the right way, which would be better than having to change bad habits picked up from another dairy farm."

One was a truck driver who asked about jobs when he delivered fuel to the farm when the shed was being built, two were from sheep and beef farms and two others were school leavers. "Communication is the key, and leading by example," Mr Hunt says. "And you need to be flexible because something different can happen every day."

The farm's 1150 cows are milked in two herds, taking a total of four hours to go through the 60-bale rotary shed. They milk off a 500ha platform, supported by a 150ha runoff where grain and maize silage is grown.

Different pasture grasses are being trialled, with 50ha available each year to be regrassed as the potato crop is rotated around the farm. The cows each get 1.5kg of barley in the shed and silage at pinch times. Other supplements could be added but only if it is economical to do so. Three irrigators allow water coverage of 360ha in dry summers.

 A 15,000-litre tanker takes effluent to the far reaches of the farm and once he has the results of laboratory tests, Mr Fraser aims to add liquid fertiliser to it to make sure the farm gets the full benefit.

With a successful conversion almost behind him, he is looking ahead to the next challenge. "We're breeding up all the heifer calves we can so we can build up another herd to take to a new farm," he says. Out of 1000 calves reared by Mrs Fraser this year, 300 heifers will be grown on. Part of planning for that expansion is to make Mr Hunt a partner in Rawhiti Dairies.

Mr Fraser says the future for milk is assured. Fonterra expects world demand to increase by an amount equal to New Zealand's production every year for the next 10 years. "It's not a luxury item people won't buy when times are tough, which is meat's problem."

His experiences with sheep farming are still fresh and the contrast between the two industries is easily brought to mind. It is clear he likes cows better than sheep. "They're more intelligent, you don't have to chase them all over the farm, they come to the gate when you call them and they each have their own personalities.

"I'm enjoying farming more now than I ever did," he says. "It's not all about money – I didn't get into dairying to get on to the rich list. It's a pleasant lifestyle. I get to work with nice animals and nice people."

- © Fairfax NZ News