Friday, March 29, 2024

Palm kernel guideline ruffles feathers

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Fonterra’s palm kernel guideline has not been well received by all of its 10,500 farmer-suppliers. A predicted El Nino-induced drought this summer raised the possibility farmers in the usual hot spots might have to feed more than the recommended maximum of 3kg/cow/day of palm kernel.
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But Fonterra emphasised the 3kg was a voluntary guideline at this stage while not ruling out it becoming a mandatory condition of supply in future.

Co-operative affairs director Miles Hurrell acknowledged possible animal welfare concerns in a drought would outweigh the recommended restriction.

“We won’t compromise on animal welfare,” he said.

“We have a competitive advantage for pasture-based milk and this guideline is future-proofing that advantage.

“Every farm is different and we propose to work with those who are using higher levels of PKE to find ways of bringing down the use.”

At prices below $200/tonne, farmers could use 5-6kg/cow of palm kernel for not much more than $1/cow/day, which many considered an acceptable cost to keep milking through a prolonged dry spell.

Reaction from farmers on social media was mostly negative with many comments along the lines of “don’t interfere with our running of the farm”.

Other popular sentiments were, for some, justification for the claimed premiums paid on world markets for NZ dairy products made from pasture-fed cows, a milk price incentive to be completely grass-fed and the need for guidelines on other supplementary feeds.

Waikato dairy veterinarian and farm consultant Bryan McKay from Dairy Production Systems believed Fonterra had not thought through the reasons and consequences of the palm kernel guideline.

“The animal welfare concerns are uppermost for me in the regions that are struggling now with low spring pasture growth or endless wet weather.

“The threat of El Nino is very real and, going by past droughts, cows in many districts just would not survive without PKE as the cheapest supplementary feed available, even with a low payout.

 “I am not aware of any scientific findings at the farm level that milk quality changes with PKE use, whereas there is evidence that the fatty acid composition does change with excessive loss of cow body condition.”

McKay also raised environmental aspects by quoting an OECD study that showed hybrid dairy systems, those with a pasture-plus system, had the least environmental impact and their the impact decreased with increasing production.

“In future seasons there is the possibility that the guidelines around PKE could become part of our terms and conditions of supply.”

Supplier advice

Fonterra

Increasing production using intensive, pasture-only systems had the highest environmental impact.

There was now a strong, responsible palm kernel movement in Malaysia, with the biggest palm oil producer in the world, Wilmar International, committed to a no-deforestation, no-exploitation policy.

That included breeding and protecting native fauna in reserve areas and repopulating indigenous forest.

“NZ dairying doesn’t drive the palm oil industry. Palm kernel is a by-product of the palm oil industry.

“Palm oil is used worldwide in a large range of products. Over 30% of products on our grocery shelves have palm oil or palm kernel oil included.

“What do they do with the PKE if we don’t recycle it into quality dairy protein – burn it in European furnaces to produce power, bury it or dump it at sea?”

McKay believed a major strength of the NZ dairy industry was its pasture base and that should be maintained as long as possible. Even the most intensively fed dairy herds in NZ had the majority of their ration as pasture.

Fonterra said it would use the animal feed records provided as part of every farm’s annual dairy assessment to trace the use of feed supplements.

“We will help you measure your use of PKE and in future seasons there is the possibility that the guidelines around PKE could become part of our terms and conditions of supply,” it warned.

Palm kernel imports rose 25% in the 2013-14 season to two million tonnes.

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