UNPACKING LESSONS FROM ABROAD
By Don Close , Terrain
Chief Research and Analytics Officer
I recently explored New Zealand agriculture for three weeks with an international studies group from my alma mater , West Texas A & M University . It was a fabulous experience . I also couldn ’ t wait 24 hours to eat a U . S . beef hamburger upon my return .
My first observation from the trip was that there are still young adults with strong work ethics and impressive skill sets . I had the privilege to travel with an ambitious group of students majoring in animal science , ag business and economics , and ag communications . I think back to my early career and how I was nowhere near as ready to enter the workforce nor as prepared for international travel as they are . There Is No Free Lunch
My second observation was that there is no such thing as a free lunch .
New Zealand is , in my opinion , the most beautiful country in the world . But even with year-round green grass , it requires a tremendous amount of labor and management to keep the rotational grazing programs as optimal as possible .
New Zealand ’ s population is approaching five million people , while it has 10 million cattle and 26 million sheep ( down from a peak of 70 million sheep in 1982 ). Excluding the Merino breed , sheep herders complained that it costs more per head to shear sheep than they get for the wool . Help the Environment and Producers
My third observation was the U . S . industry needs to leverage its contributions to conservation and sustainability in ways that benefit , not hamper , producers .
Exports account for 85 % -90 % of New Zealand ’ s agricultural production . As a small country heavily dependent on exports , it is constantly being dragged in one direction or another by major export countries .
The EU has heavily influenced New Zealand to reduce greenhouse gas ( GHG ) emissions . While New Zealand is truly committed to helping improve the environment globally , industry players from across all of agriculture in New Zealand openly talk about being heavily influenced by the EU on restricting GHG emissions . At the same time , they talk about less and less trade with the EU and how their largest trading partners are now China , Southeast Asia and the U . S .
The producers we talked to in New Zealand commented that the restrictions on production , inspections and documentation all associated with sustainability and GHG emissions have placed limitations on production and profitability . Learn a Different Approach
My fourth observation was there are practices both New Zealanders and the Americans can learn from each other .
Many of the dairies are on surprisingly small farms divided into small paddocks . Cows are moved to new paddocks daily , on a 21-day or 24-day rotation . Many farms use electronic collars , and producers set rotation parameters on their phones . I ’ d be interested in learning about someone ’ s experience with this technology in a larger herd .
New Zealand has pockets of exceptional-quality beef cattle . Dairy calves predominantly make up its cattle supply for beef , however . The cows are what they call a Kiwi Cross , which is predominantly Friesian and Jersey .
Although New Zealand producers talk about using a natural beef-on-dairy program for their beef supply , it isn ’ t nearly as developed as the beef-on-dairy program underway in the U . S . Calves are turned out on grass as soon as they leave the nursery . Very few have any supplemental feed .
Granted , it ’ s been a dry spring , but I was taken aback by the quantities of fertilizer and water producers apply to achieve maximum growth of grass to support rotational grazing . The pastures are largely a ryegrass base with clover and alfalfa . They also mix in chicory for the tap root to open the soil and prevent compaction .
Use of synthetic nitrogen has been cut way back because of environmental laws to prevent nitrogen from getting into the water supply . Producers depend on manure from the rotational grazing for their nitrogen and apply phosphorous and potassium .
For irrigation , instead of dropping heavy quantities periodically , producers focus on light , consistent applications of water to reduce leaching .
While the grass is visibly greener on the other side of the ocean , my final takeaway was that there is no place like home .
Terrain is a team of economists who provide expert analysis to the customers of participating Farm Credit Associations . Learn more at terrainag . com .
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