FarmSourceOUR LINK TO THE DAIRY WORLD – OCTOBER 2018

The low down on DIRA Page 3

Capturing the Indochina market Pages 6-7

MEET OUR SUSTAINABILITY PANEL PAGE 4 FarmSource

OCTOBER 2018 COLUMNS From the Chairman 1 Message from Miles Hurrell 2 From the Shareholders’ Council Chairman 16Advance Payment Rates Message from Richard 20 As at 10th October 2018 Dairy NZ Column 18 Advance Payment Rates NEWS As at 13th October 2018 What you need to know about DIRA 3

Meet our Sustainability Advisory Panel 4 New ice creams smash sales 5 2017/18 2018/19 An in-depth look at our Indochina markets 6 -7 Season Final Season Forecast Focus on the 50 catchments 8-9 Waitoa’s winning ways 10 Celebrating all things Cheesy 10 $6.69 $6.25 Building relationships in Vietnam 11 Base Capacity Base Capacity

Anchor Food Professionals launches Advance Rate Adjustment* Advance Rate Adjustment* in Australia 12 New tankers improve Aussie milk collection 12 June paid July $3.70 $0.51 $3.95 $0.61 Explaining the role of the SHC 13 July paid August $3.85 $0.51 $3.95 $0.61 Spotlight on Otago/Southland 14-15 Could changes to milking help you August paid September $3.85 $0.51 $3.95 $0.61 farm better? 17 Takaka planting day 17 September paid October $4.15 $4.15 Four top apps for farming 19 October paid November $4.25 $4.15 Entries open for the Dairy Industry Awards 19 Peak Period Peak Period How the Co-op is helping save the kiwi 21 November paid December $4.30 $4.15 Milk for Malaysia helps creates dairy drinkers 22 December paid January $4.40 $4.15 New look for Fonterra Milk for Schools 22 January paid February $4.55 $0.51 $4.20 $0.61 Keith’s Corner 23 February paid March $4.70 $0.51 $4.30 $0.61 YOUR CO-OP Your photos 24 March paid April $4.85 $0.51 $4.45 $0.61 Contacts 25-29 April paid May $5.00 $0.51 $4.55 $0.61 Update your account details 30 Understanding your Co-operative 31 May paid June $5.10 $0.51 $4.70 $0.61 Primary ITO 32-33 July Retro $5.30 $5.00

Front cover: Hearing about sustainability at August Retro $5.80 $5.35 our site September Retro $6.25 $5.65

October Retro $6.43 $5.95

The Base Advance Rate payments (paid throughout the whole season) and the Capacity Adjustment payments (paid in non-peak months) total an average of the Farmgate Milk Price in respective seasons.

Farmgate Milk Price $6.69 $6.25

* The Capacity Adjustment Payment amount is based on the cost to Fonterra of installing an additional litre of processing capacity, the estimated peak day litres and the quantity of milk expected to be received in the peak months. For the 2018/19 seasons this results in a Capacity Adjustment Payment of $0.61 per kgMS. For more information on Capacity Adjustment please refer to the booklet on Farm Source ‘Capacity Adjustment: Making it clearer’ or contact your Area Manager.

Farm Source is produced by Fonterra. Contact us at [email protected]

Fonterra Co-operative Group Limited Private Bag 92032, Auckland, www.fonterra.com This magazine is printed with vegetable inks on certified forest paper. ISSN 2382-2171 1

NOTE FROM THE CHAIRMAN

I’d like to start this month by thanking the thousands of farmers who were able to attend one of this year’s farmer roadshows or have contacted the Co-op with questions about our performance since the Annual Result. The numbers in the room and respectful challenge of the questions has reinforced my view that at its core, our Co-op is in good heart. There was plenty of interest in the Co-op’s portfolio analysis and your Board and Management Team’s plans to deliver immediate performance. That work is well progressed and, as I said during the roadshow, you won’t die wondering. We will be clear and timely with our communications on progress – as much as possible. You will appreciate that in order to maximise the benefit to our farmer owners and unit holders, some parts of that work will need to remain behind closed doors. So in short, we have a game plan. Now we intend to execute. Having the bench strength and leadership to deliver that plan is the next step. The All Blacks wouldn’t be world champions if they’d had 22 Beauden Barretts in the team. Each season the selectors find the best person for each position based on their game plans, and then check the balance and depth of skills across the team each week. The Co-op’s Board is no different. We need diversity of background, experience and skill-sets. People with different views who can have challenging conversations around the Board table, make a collective decision, and then support that decision and work as part of the team. Each year there is a thorough review of the Board’s balance of skills and experience, with an emphasis on its future need for new or additional expertise and knowledge to best implement the game plan for the year ahead and longer-term. That review is used by our Independent Selection Panel, a group of New Zealand’s leading governance experts chaired by That’s the short version. You can find full details on the election Dame Alison Paterson, DNZM, in their assessment of potential process within your voting packs and on Farm Source, or speak to candidates. They provide a recommended set of candidates for your local Shareholders’ Councillor. election to the Board. The Shareholders’ Council monitors the process and runs the election. 100 per cent farmer ownership and control is a core principle of our Co-op. I strongly encourage you to get in behind your Co-op Farmers are provided with the Panel’s assessment of the and exercise that ownership and control by voting in the Director recommended candidates, the Shareholders’ Council and elections and on the other resolutions detailed within your voting Board endorsement of those candidates, and the candidate packs and Notice of Meeting. profile the candidates wish to share with our farmer owners, via the voting packs. To be successful, candidates need to get more than 50 per cent support of votes cast. The successful candidates will join the There is of course another process (the Self-Nomination Board at the conclusion of this year’s Annual Meeting. Process), where any candidate with the support of 35 Shareholders can put himself or herself forward for election. I look forward to seeing those of you that can make it to our Candidates under the Self-Nomination Process are not assessed Annual Meeting in Lichfield on 8 November. by the Independent Selection Panel, or endorsed by the Talk next month, Shareholders’ Council or the Board. Then farmers have a choice. You can use your vote to give the Board the team that it, and a panel of independent governance experts, believe have the attributes and skills required to deliver the game plan and world class governance, or you can select a John Monaghan. candidate who has opted to stand outside that process. 2

MESSAGE FROM MILES HURRELL 1. We need to create an even playing field. We want to play by the same rules as everyone else. This means we need the ability to say no to accepting milk from new farms that want to supply the Co-operative if it doesn’t make environmental or financial sense for us to do so, just as other dairy processors can. Open Entry was designed to encourage competition, back when there were few players in the market. But with about 10 dairy companies now operating in New Zealand, competition for Fonterra is here to stay — and that's a good thing. It means there’s no longer a need for Open Entry. In fact, if it is left in place for too long it's going to wipe out the progress that's been made. This is because it has the potential to lead to significant excess manufacturing capacity in the industry, which will lead to dairy companies closing. The industry needs to invest in moving up the value-chain and becoming more productive, not in the creation of more processing capacity to process the same milk in the same way. 2. We need to be backing New Zealand businesses (big and small) and not subsidising foreign-owned. The current requirement for us to supply raw milk at essentially cost price to other independent dairy companies provides a leg up to these processors until they can arrange their own milk supply. In the New Zealand retail market this makes sense. It’s created competition and more choice in the supermarket chillers which is good for consumers. Where there is an issue though, is with foreign-backed companies receiving our subsidised milk, processing it, using it to compete with Fonterra and other New Zealand-owned dairy businesses in export markets, and sending the profits offshore. We all know New Zealand is a small country and we need to be backing our own here and on the international stage. We want to see as much value as possible captured from New Zealand milk for New Zealanders. Early next month, the Government is expected 3. We need a clear pathway to deregulation to release the options paper for the Dairy Regulatory certainty gives confidence — especially when it comes Industry Restructuring Act (DIRA) review and to investment. DIRA was always intended to ultimately set the dairy industry up to be deregulated once it’s purpose had been begin public consultation. achieved. It has. But over the past 17 years the “sunset”’ provisions DIRA is the legislation that allowed Fonterra to be formed in have continued to be changed and pushed out. There is now no 2001. It was introduced as the Government recognised the value timeline for deregulation of the industry. No timeline means no to New Zealand of allowing our dairy farmers to compete at scale certainty for farmers or investors. on the international market. But it also recognised that certain Minister of Agriculture Damien O’Connor is encouraging safeguards were needed to ensure the long-term interests of farmers to have their say as he wants the dairy sector to be on farmers and consumers as Fonterra held 96 percent of total the best possible footing. So do we. That’s why it’s important that market supply. The main purpose of DIRA was to promote you, or anyone who has a connection to the New Zealand dairy competition and give farmers and Kiwis choices. industry, takes part in the consultation process. 17 years on, DIRA has done what it set out to do. It has created Once the options paper is released next month you will have a competition in the New Zealand dairy industry. Kiwi consumers chance to contribute. We will let you know how you can do this have a range of dairy products made by different companies to once we know more. choose from, and farmers in nearly all regions can choose who they supply milk to. Fonterra supports the Government review as DIRA needs to be updated to reflect today’s world and to give New Zealand-owned dairy companies a fair go on the international stage. Here’s three Miles Hurrell reasons why:

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What’s happening with the DIRA review? You will remember earlier this year Minister of the same way. It needs to enable New Zealand to compete with Agriculture Damien O’Connor announced the off-shore interests on a level playing field, and not be giving them a leg-up in competing against us in export markets. Government would undertake a comprehensive review If this is not the case, there is a very real and imminent risk that of the Dairy Industry Restructuring Act (DIRA). there could be more manufacturing than we need in the dairy Since then the Government has been meeting with industry industry. This will lead to dairy companies closing and those are players, analysing the issues, identifying what’s working well and the companies that many regional economies and farming coming up with recommendations. families depend on. We’re expecting the formal consultation paper that will outline We saw this in the red meat sector and don’t want the dairy the options the Government is considering to be out in early industry to experience a similar fate. November and public consultation will then begin. Like any industry, regulatory certainty gives businesses It’s important that anyone who has a connection with the confidence to invest – whether that is in new value-add products New Zealand dairy industry, particularly our farmers, have their or environmental improvements, we need to make sure say. There will be many opportunities to do this during the investments are going to pay off. So, we want to work with the consultation process and we strongly encourage it. We will be Government and the dairy industry to map out what the pathway sharing more specific details of how to have your say once we to a deregulated future will look like and start preparing for it. hear more from the Government. We want a strong, sustainable dairy industry that allows our But in the meantime, we thought it was useful to recap what farmers and future generations to be in control of their future. exactly is DIRA, some interesting DIRA related facts and figures and what lies at the heart of Fonterra’s view on DIRA. What is DIRA? • DIRA is the legislation that allowed Fonterra to be formed in 2001 and, as Fonterra held 96% of the market share in terms of supplying farmers at that time, DIRA put in place checks and balances to encourage competition for our Co-op and give farmers and Kiwis choices. • The two main parts of DIRA that were designed to encourage competition, across the farmgate and for Kiwi consumers, are: 1. Open Entry – this means Fonterra must accept Key facts applications to supply from new farmers (with only limited exceptions) – while other dairy companies can choose • In 2001 there were three main processors (including which farmers they would like to sign-up based on pure Fonterra) farmers could supply milk to. Today there commercial decisions. are about 10 and only five are New Zealand owned. 2. The Raw Milk Regulations – these require us to supply raw • In the 2017/18 season we supplied 270 million litres, milk, effectively at cost, to other independent processors almost 3% of our farmers raw milk (the equivalent of for at least the first three years they’re in business. It more than 1.5 times Tatua’s entire milk supply), to 18 provides a leg up to all new dairy processors in the New independent processors. In some years this has been as Zealand market, whether they need it or not. high as 540 million litres. Fonterra’s view on DIRA • When DIRA first came about Fonterra’s obligation to take milk from any farmer was due to come to an end when DIRA has done its job. It’s created a competitive environment for our market share was approximately 89% in the South Fonterra to operate in. Farmers, in nearly all regions, have choices Island with an independent processor collecting at least in who they can supply milk to and Kiwis have choices in terms of 25 million kgMS outside the Westland region, and 87.5% the dairy products they can buy. in North Island. DIRA now needs updating. It needs to reflect today's world and • In 2011, this changed to require a review when not how things looked in 2001. Fonterra’s market share was 80% in either the South We’re at a critical point, so we fully support this review, but a Island or the North Island or no later than 1 June 2015. sharp focus on the risks to our industry of leaving Open Entry and • The current Government amended DIRA to remove all Raw Milk Regulations in place in their current form is vital. We triggers for a review of this obligation and to prevent believe New Zealand needs a strong dairy co-operative if we want DIRA from expiring in the South Island, and announced our dairy industry to thrive, stand the test of time and remain the current review. competitive on the world stage. We need the DIRA legislation to be focused on the future and Next steps: consider changes that will remove incentives for short-term gains Early November we’re expecting the formal consultation and put New Zealand first. The industry needs to invest in moving document that will outline the options the Government up the value-chain and becoming more productive, not in the are considering to be released and consultation to start. creation of more processing capacity to process the same milk in

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Meet the sustainability experts on Fonterra’s new advisory panel Six external experts have been appointed to Bridget Coates Fonterra’s Sustainability Advisory Panel to provide Bridget Coates is Chairperson of White Cloud Dairy Innovation, independent advice to the Board and management which recently launched consumer products in the US (Kura Nutrition) based on high quality NZ dairy and plant proteins. team on the Co-op’s sustainability strategy, targets Bridget was inaugural Chair of ArcAngels, an angel group focusing and initiatives. on women-led growth companies. She is a Director of Tegel The panel helps find solutions to some of the challenging Group Holdings Ltd and has held a number of other directorships sustainability issues the Co-op faces. It meets twice a year. including the Reserve Bank of New Zealand, the New Zealand Superannuation Fund and Sky City Limited. Here's a brief profile of each of the panellists. Hugh Logan Sir Rob Fenwick (Chair) Hugh Logan has 40 years of experience in natural resource Sir Rob Fenwick was the first New Zealander to be knighted for management. He has chaired the Land and Water Forum and services to both business and conservation, and was inducted into Environment Canterbury’s regional water management the NZ Business Hall of Fame in 2016. Sir Rob co-founded the committee. He was previously a public service Chief Executive for New Zealand Business Council for Sustainable Development and 11 years heading the Ministry for the Environment and the New Zealand's first commercial composting business, Living Department of Conservation, and for four years headed what is Earth. He established and chairs Predator Free New Zealand and - - - - now Antarctica New Zealand. Hugh is also experienced in The Kiwi Trust, and is also a director of Ngati Whatua o Orakei’s international environmental affairs. commercial holdings. Michelle Pye Paul Gilding Michelle Pye, together with her husband Leighton, owns and Paul Gilding has over 40 years of experience across a range of operates Pye Group – a large scale agricultural business based in industries including the Australian military, global head of South Canterbury. Pye Group is a cross sector business with dairy, Greenpeace, teaching at the University of Cambridge and advising cropping, process vegetable, grazing and contracting operations. global corporations. He has also written extensively. Paul is Michelle has a financial background having worked for ten years currently a Fellow at the University of Cambridge’s Institute for for predominately rural based chartered accountants before Sustainability Leadership. As a corporate advisor, he has worked working fulltime with Pye Group. Since 2016 Michelle has been with the Boards and executives of companies such as Unilever, the South Canterbury representative on the Fonterra DuPont and Ford Motor Company. Shareholder’s Council and is currently a rotational member of the Aroha Mead Council Leadership Team. Aroha Te Pareake Mead (Nga-ti Awa, Nga-ti Porou) is a Research Associate specialising in ma-tauranga Ma-ori/indigenous knowledge. Aroha chaired the International Union for Conservation of Nature’s (IUCN) Commission on Environmental, Economic and Social Policy. She served on the IUCN Governing Council for 16 years and the Greenpeace New Zealand Board for six years. Aroha is on the Ka-hui Ma-ori advisory group for Genomics Aotearoa and the Deep South National Science Challenge.

L-R Hugh Logan, Sir Rob Fenwick, (Chair) Bridget Coates, Paul Gilding, Michelle Pye, Aroha Mead The Panel look around our Te Rapa plant

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A MATCH MADE IN HEAVEN One in four Kiwis has tried our new Tip Top “Whittaker's is a proud New Zealand-owned company and we Whittaker's ice cream within just two weeks of love teaming-up with top quality producers and other iconic Kiwi brands.” its launch! The three new flavours are not limited-edition products and can Combining the best of Kiwi ice cream with the best New Zealand be enjoyed by Kiwis and visitors year round. chocolate, the three flavours, Vanilla & Cashew Praline, Coffee & Cacao and Chocolate & Pretzel, have already smashed sales targets and are on track to be one of New Zealand’s most successful new product development launches this year. Already sales targets are 220 per cent above what was initially predicted. Tip Top Director Kim Ballinger says it’s exciting to see the launch going so well. “It’s early days with peak ice cream season still to come but so far the feedback has been incredible. “Shops were so excited to get the ice cream on sale some of them jumped the gun, putting it on sale two days before they were meant to, so we pushed go for everyone.” Once launched, one supermarket chain had product on sale in 18 stores within 10 minutes – for those unfamiliar with the inner workings of a supermarket that’s quite a feat. Kim says it’s great to see the hype around the launch born out of the partnership of two proud Kiwi companies. “When looking for someone to partner with we wanted someone who, like us, produces a premium product. Our ice cream contains all natural colours and flavours and we’re both committed to being 100 per cent palm oil free.” Whittaker’s Marketing Manager, Jasmine Currie, says Tip Top was a natural match for them. Our three new ice cream flavours

Peter Murdoch samples one of the new ice creams at the New Plymouth roadshow

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 6 UNLOCKING OPPORTU NITIES IN INDOCHINA The IndoChina cluster tells a compelling growth Thailand story for the business – and offers huge potential. Fonterra has been in Thailand for more than China and India dominate the imagination as the Asian markets to 65 years and today play in, but look outside these major population centres and you’ll enjoys strong brand find a wealth of opportunity. positions across the The IndoChina cluster – made up of Thailand, Vietnam, Laos, business. Cambodia, Myanmar and the Philippines – is a major growth area Thai consumers are for Fonterra, where we’re unlocking the opportunities presented motivated by a desire by a dynamic and increasingly prosperous region. for better nutrition and Fonterra directly employs over 300 people in these six markets. look for foods that Anlene, Anmum and Anchor Foodservice Professionals are active provide nutritional in all markets, joined by Anchor in the Philippines, with a strong benefits at different showing from NZMP across the region. Together, business across stages of life – making the region achieved double digit growth in FY18, and we’re our advanced nutrition building our strategy to continue this upward trend in these brands like Anlene and important markets. Anmum highly relevant. Anlene is the fastest-growing milk brand IndoChina: a snapshot Anlene relaunched in in Thailand IndoChina is home to over 343 million people and some of the November 2017 with a new MoveMax formulation tailored to the world’s fastest-growing economies. On average, GDP across these needs of an ageing population. It is now the market leader in the markets is growing at upwards of six per cent, resulting in adult milk category, and the fastest growing dairy brand in increased consumer spending power and changes to shopping Thailand, with volume growth of 17.5 per cent in FY18. and eating behaviour across the board. Anmum boosted its market share by 10 percentage points to As a result, dairy consumption is rising. In line with trends over 80 per cent within a year, and Anmum Materna is the across South East Asia, dairy demand in the cluster is growing by number one brand in the maternal milk category. up to four to five per cent every year, according to Rabobank. Our Foodservice business supplies more than 2,000 local food While each country has its own characteristics, they have one and beverage establishments. Our volume grew by 17 per cent last thing in common: they are rapidly developing markets with year, as we continue to find new customers and work with increasingly affluent urban populations. existing customers to create new applications for dairy with hero products and chef-led menu development. NZMP supplied ingredients equivalent to 3,566 shipping containers to Thailand in 2017, and we’re forging strategic partnerships to drive continued innovation. A recent partnership with CP-Meiji, for example, brought a high-protein milk drink to market, available in six flavours including reduced sugar options. Vietnam Vietnam is a rising star in the region, with one of the fastest-growing economies of any ASEAN country. It is seeing increased consumer spending and a booming food and beverage industry, with a growing appetite for high-value products.

Anchor Food Professionals chefs in action in Bangkok

Paul Richards, MD Thailand-Indochina-Philippines, says there is a wealth of opportunity on offer in these emerging markets. “We’re working in a diverse and dynamic part of the world. Economies are growing rapidly and consumer behaviour is changing as people look for healthy, high-quality nutrition that will make a difference in their lives. We bring the highest quality dairy straight from our farmers in New Zealand. That provenance along with our capable, passionate and highly engaged workforce gives us our advantage in this intensely competitive region.” Anlene and Anmum Materna are both category leaders in Vietnam

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 7 UNLOCKING OPPORTU NITIES IN INDOCHINA Myanmar, Cambodia & Laos While Myanmar is still a low income market compared to others in the region, we’re setting ourselves up to capture growing opportunities. Overall milk imports into the country have been steady in recent years, but ASEAN data shows a huge jump in demand for higher-margin products like cheese and particularly butter, which doubled in value in 2017. We are prioritising scale over niche opportunities to ensure we meet the needs of the majority of consumers. We already lead the market in a number of areas. Anlene is the leading milk brand in Myanmar’s bone nutrition category, boasting 40 per cent growth in FY18, whilst AFP holds more than 70 per cent market share of the dairy foodservice category. There is huge potential for Foodservice as more international brands enter Myanmar, and hotels and restaurants expand on the back of a promising tourist industry. In the past year, we’ve grown from Beverage Houses like R&B Tea in Vietnam are driving demand among supplying around 500 food and beverage outlets to around 900. younger consumers Cambodia and Laos are smaller in terms of population and Our Foodservice business serves 3,000 outlets, with a strong business potential, but we are not ignoring these two emerging showing in hotels, western bakeries and the Italian kitchen sector. markets. With a population of 14 million, there lies huge In FY18 our volumes grew by more than 20 per cent – far opportunity in Cambodia, especially for our Foodservice business. exceeding global expectations. We recently appointed a Business Development Manager based in These changes are driven in part by younger consumers seeking Phnom Penh to grow this business. out new flavours and experiences. Beverage houses serving Demand for ingredients in all three countries is currently limited popular creations such as bubble tea, Thai milk tea, and tea by a light manufacturing footprint and distribution challenges, but macchiato – where dairy plays a starring role – are helping to this will change as wealth and infrastructure improve. Already in drive this demand. Myanmar we have seen double digit annual growth over the past NZMP is another key pillar of our Vietnam business; we supply three years, and with our existing presence across the region, we’re all key players in the country, including local and multinational well-placed to capture these opportunities for NZMP. companies. FY18 saw our volumes grow by five per cent, and we expect this to climb as the market embraces more advanced products with high-protein and medical applications. The Philippines In recent years, a booming economy in the Philippines has raised historically low household incomes, fuelling changes in shopping and eating behaviour and a rise in food consumption. After nearly four decades in the market, Anchor leads the way in butter, whilst Anmum Materna dominates the maternal milk category with over 85 per cent volume share. Anmum is the most recommended brand in the maternal care market and this year broke the 1,000 metric tonne mark for the first time. FY18 saw Anlene grow more than 20 per cent by volume, spurred on by innovative new product launches catering to Filipino tastes, such as a White Coffee flavour which launched in May. Foodservice is also growing as more Filipinos adopt always on the go lifestyles. Our products are now used in over 6,000 food and beverage establishments. A government drive to spread wealth to the countryside presents more opportunities to expand and reach a new class of increasingly affluent consumers. NZMP volumes grew by 30 per cent in FY18, and we aim to continue our expansion in this sustainable, value-generating market. As cost becomes a less important consideration for consumers, we expect new products to emerge offering functional benefits and balanced nutrition to tackle public health challenges. Philippines to develop menu items

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 8 50 CATCHMENTS SELECT ED FOR IMPROVEMENT The Co-op’s plan to improve 50 freshwater The Co-op’s support will also vary depending on the needs in catchments across New Zealand has taken each area. For example, the Co-op could support through the development of Farm Environment Plans, wastewater upgrades at another big step forward with the final selection processing sites, support of farmer and community catchment of catchments. We announced the ambitious target groups, grants for restoration projects and by coordinating last year as part of our wider efforts to improve the volunteers – including employees. country’s waterways. Trish Kirkland-Smith, Fonterra’s General Manager of Environment, says this initiative is focused on working collaboratively with farmers and local communities to achieve our shared environmental aspirations. “We’ve been working alongside a number of stakeholders including regional councils, Department of Conservation (DOC), Iwi, farming leaders and other industry members to determine which areas to target first. We’re pleased to have identified 50 catchments – 28 in the North Island and 22 in the South Island.” Action plans are now being created for each catchment, and engagement with local communities is a key part of this work. The actions will vary, from reducing sediment, to improving water The Pahau river in North Canterbury quality for shellfish beds and native fish habitats. Enhancing wetlands, reducing contaminants entering waterways and working “The health of New Zealand’s waterways has suffered because with iwi to improve the habitat for of the development of both rural and urban land over the last 150 freshwater fish may also be part of years. The task of reversing the impacts is too big for a single the action plans. owner or approach,” says Trish. Jared Watson, a Co-op farmer and “We recognise that communities are at the heart of any Chairman of the Waiotahe Water improvement. We also know that each region is unique, and will Care Group, says having the need unique solutions. The first step has been to identify where Waiotahe catchment included is we will focus our efforts. To improve a catchment, everyone that hugely encouraging. is using or impacting it needs be involved and that’s what we “Fonterra along with DairyNZ and hope to achieve through this initiative.” the Regional Councils support of This initiative builds on other great work already happening in farmers through education and more than 30 catchments, and will sit alongside the Co-op’s engagement will enable all the on-farm sustainability programme Tiaki, as well as the Living Waiotahe farming community to Water partnership with DOC. Trish Kirkland-Smith reduce our impact on water quality.”

IMPROVING THE PAHAU RIVER – A CO-OPERATIVE APPROACH

More than 10 years of commitment and community collaboration has been the key to improving one of the most challenging waterways in the country. The Pahau river weaves through North Canterbury farmland, 28,000 hectares of which is irrigated, which, for many years, left the waterway the final stop for nutrients, sediment and bacteria. Fonterra farmer David Croft is chairman of the Pahau Enhancement Group and said any change to water quality in the river had to be made by farmers. The key to lowering E-coli levels was a change to the way irrigated water was spread across farms, coupled with a strong riparian planting and fencing programme. The shift to more efficient irrigation techniques, and better farm management practices in response to tighter nutrient rules imposed by regional councils, has seen E-coli levels drop by an impressive 15 per cent per year over the last decade. Phosphorus levels have also trended downwards. This work led to the Pahau River winning the supreme prize for most improved river at the annual Cawthron River Awards in 2017. It’s these kind of successes that the Co-op wants to repeat across New Zealand through our work with local communities on 50 catchments.

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 9 50 CATCHMENTS SELECT ED FOR IMPROVEMENT

North Island (28) South Island (22) NORTHLAND (3) BAY OF PLENTY (4) TASMAN (1) OTAGO (4) Awapoko Pongakawa - Little Waihi Takaka Tokomairiro Maungaturoto Lower Rangitaiki CANTERBURY (13) Pomohaka Ruakaka Waiotahe Manuherikia Kakanui - Waiareka Creek Whirinaki Taieri - Waipori AUCKLAND (3) Kaikoura Wairoa TARANAKI (3) Hurunui - Pahau SOUTHLAND (4) Kaipara West Kaupokonui Ashley - Saltwater Creek and Mataura Papakura Pukekura Park Lower Ashley Oreti (Waihopai) (5) Complete Taranaki Ringplain Lower Selwyn Aparima Upper Selwyn- Hororata Waiau (Orauea) Tairua HAWKES BAY (3) Mt Harding Stream Waitoa Taharua/SH5 - Central Plateau Ashburton Mangaone Karamu Hinds Drains Mangapiko Tukipo Otipua - Saltwater Creek Waiomou GREATER Omarama/Willow Burn MANAWATU (4) WELLINGTON (3) Wainono Lagoon Mangatera Otaki Waitaki - Waikakahi Tawai Oroua Parkvale Horowhenua Otakura Want to know more? Pukepuke • Contact your Area Manager

• Visit fonterra.com/sustainablecatchments

• Visit www.livingwater.net.nz

Community collaboration has been key to improving one of the most challenging waterways in the country

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WAITOA’S WINNING WAYS Our Waitoa UHT plant has harnessed some innovative thinking to cut down on their waste and hopefully create some added value. In the past, liquid removed during the cream processing was sent to the wastewater treatment plant. But during a recent expansion the installation of a UF Fat Recovery system has seen an improvement in quality of liquid sent for treatment. The system collects the fat in the processing liquid and concentrates it to at least 20 per cent fat content through an Ultra Filtration plant. Programme Manager, Rizana Imtiaz says the new technology means the plant now sends less fat per day to the wastewater plant, despite the addition of a third cream line. Some of the team at our Waitoa UHT plant “If we didn’t implement this new technology, the additional Not content with just improving their environmental wastewater would compromise the existing treatment process performance the team have also found a potential customer, who efficiency. This could have resulted in poorer quality water being is currently trialling an alternative use for the recovered fat steam. discharged to the Waitoa river - something we want to avoid If successful this would result in a revenue stream for Fonterra. at all costs.” Waitoa UHT can pack 14 shipping containers of product per day Rizana says positive environmental milestones like these are which are shipped to China, Taiwan and the Philippines. That important as demand grows for our UHT products overseas. includes roughly 100,000MT of cream a year. CELEBRATING CHEESE MONTH Cheese Month is national event held every year in our world class cheese. Today there's more than 2,000 varieties of October and we’re all over it like melted mozzarella cheese worldwide. Our Edendale manufacturing site was the first cheese factory in New Zealand to export refrigerated cheese and on a woodfired pizza. has been in operation for 137 years. Check out some cool cheese It’s the perfect time to recognise and celebrate our farmers, facts below. because without their high-quality milk, we wouldn’t have

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Building business relationships in Vietnam

Minister O'Connor and some of our Vietnam team Fonterra was among the companies Minister of “We’ve been supplying ingredients to Vietnamese customers Agriculture and Food Safety Damien O’Connor for more than 40 years and have been operating our consumer brands business in the country for more than two decades.” met with while visiting Ho Chi Minh City to mark 45 years of bilateral ties between New Zealand and Vietnam. The purpose of the visit was to promote cooperation between the two countries. The minister discussed ways that New Zealand and Vietnam can collaborate to leverage the strengths of our agricultural sector - in particular technology, state governance, and manufacturing – to support the development of Vietnam’s huge farming potential and the country’s growing demand for dairy. Linda Tan, General Manager at Fonterra Brands Vietnam says the country is an important market for the Co-op.

FIVE FONTERRA FACTS 1. About half of every dollar a farmer earns is spent in their local community. Damien O'Connor tried his hand at one of our Cheesecake recipes 2. Since 2016, we’ve invested in nine new, resource-efficient plants and lines that have In the 2017 financial year, Vietnamese enjoyed the equivalent of increased our ability to process more volumes of 240 million glasses of our milk – this translates to more than milk into consumer and foodservice products. 659,000 glasses consumed every day. 3. Mainland Tasty cheese is the #1 seller in While at the Fonterra office, Minister O'Connor tried his hand New Zealand. at preparing a kiwi cheesecake alongside our Anchor Food Professionals chefs. The cake used ingredients from Vietnam and 4. 190 two litre bottles of milk are sold every minute New Zealand, combining traditional flavours of two cultures in in supermarkets. one recipe. 5. Our Anchor Protein+ increased Anchor yoghurt Anchor Food Professionals is the number one foodservice brand sales by 88 per cent in New Zealand. in Vietnam providing dairy solutions to more than 1,700 food and beverage establishments.

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Anchor Food Professionals launches in Australia Our Australian Foodservice business is aligning The Australian Foodservice business reached record domestic with our global foodservice brand – Anchor sales volumes last financial year, secured critical new business wins and picked up Food Supplier of the Year at the Foodservice Food Professionals. Suppliers Association Australia Awards. Australia’s Director of Foodservice, Jeff Dhu, says that changing Jeff said the team is gearing up for another big year, and is diets, eating habits and lifestyles means more than 50 per cent of excited about the move to the Anchor Food Professionals brand all food and beverage in the US and Australia is consumed outside and the opportunities it presents. of the home. “The strength of the brand not only represents the world-class “Foodservice is one of the largest industries in the world and is dairy products that we make for restaurants, cafés and quick predicted to be worth around $4.6 trillion NZD globally by 2021. service eateries across Australia, it also signifies the deep This presents a great opportunity for us, and Anchor Food expertise of our people and the focus on performance and Professionals is well positioned to capture this demand and work business solutions that we bring to the table.” with customers to keep up with this growth.”

Our Australia team celebrate the launch FONTERRA AUSTRALIA TRANSFORMS FARM MILK COLLECTION The new state-of-the-art milk tanker, the ‘Truck a 26-metre tanker capable of carrying 43,000 litres, or 26 per cent and Dog,’ is transforming farm milk collection for more milk than the previous tankers, and the “Truck and Dog” tanker – a truck and trailer that can carry 27 per cent more milk our Australian business, improving efficiency from than the tankers it replaces. Both trucks have a smaller turning farm to factory, and reducing the number of trucks circle than other truck and trailer units, meaning they can access on country roads. even more farms and local roads. “The new fleet has helped us to lift our payload – the amount of The first of 14 new tankers – which are collectively capable of milk we can carry – an average of eight per cent, meaning fewer holding over 500,000 litres of milk – is now on the road as we vehicle movements on the rural and regional roads on which we replace older and smaller milk tankers to improve the efficiency of collect milk, and ultimately provides cost savings for the business.” farm milk collection. Australia’s General Manager of Logistics and Distribution Justin Ryan says the fleet upgrade includes two new types of tanker –

Correction – Grade Free Awards our longest grade free farmers in “Co-op farmers rack up grade free In last month’s magazine we incorrectly spelled the name of one of awards”. Our sincere apologies to Franciscus and Regina Smits.

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The role of the Shareholders’ Council During our recent roadshow we were asked by many of you to define the role of the Shareholders’ Council. The Board, management team and Shareholders’ Council each have clear and specific responsibilities. They are different but complementary and interdependent: • The management team is responsible for the day to day operation of the business within parameters set by the Board. • The Board leads Fonterra and protects its interests, governing company business and thinking about strategic issues. • Council represents and promotes the interests of all 10,000 Fonterra farmer shareholders to the Board. Council and the Board engage with each other in a spirit of mutual respect, timeliness, and pro-active engagement, both parties allowing sufficient time for full engagement and consultation. The Board is only required to consult with Council on limited matters, particularly engaging with Council around significant strategies or initiatives which require feedback from/ approval of shareholders. Outside these, Council forms views and communicates them to the Board on shareholders’ behalf – but it’s up to the Board to act on them. Our 25 Councillors, all Fonterra farmers, have been elected by their fellow shareholders. Their job is to connect with, and be available to, the farmers in their Wards, answering questions, THE FUNCTIONS OF THE communicating relevant and accurate information, and passing on SHAREHOLDERS’ COUNCIL feedback to the Board. Council’s specific functions are set out in Clause 16 of Council’s role is limited to a historical review of and the Fonterra Constitution. In a nutshell, they include: commentary on past performance and what shareholders think of it. Council receives monthly reports on Fonterra’s performance, • PERFORMANCE MONITORING: Monitoring and consolidated results and key business operations, and engages reporting on the performance of the Co-op against with the Board to ask questions and provide feedback. Councillors specified targets and strategy (set by the Board), also have oversight of some Board workstreams, attending providing farmers with an objective, independent meetings of the Governance Development Committee, opinion on matters which are significant from an Co-operative Relations Committee, and Nominations Committee owner’s perspective. either as members or observers. Council also reviews high level information such as Fonterra’s • CONNECTION: Representing the collective view of strategy, three-year business plan, budget and Statement of farmers up to the Board, ensuring we have an Intentions. However Councillors learn of business decisions such informed and connected farmer base, working with as significant acquisitions, divestments and capital expenditure the Board to develop a pipeline of future leaders and when shareholders do. Setting the Milk Price, developing strategy, educating farmers on the benefit of being in a Co-op, approving business plans to deliver strategy, hiring the CEO, who we are and why our Co-op exists. monitoring management’s performance, developing Board succession plans, meeting legal responsibilities and managing • GUARDIANSHIP: Guardians of the Co-op Principles, risks are all part of the Board’s role - Council is not involved. acting as a sounding board for the Board on matters One way all shareholders can have a say is by electing the impacting individual farming businesses, appointing Farmer Directors they believe will best serve farmers and the an independent Milk Commissioner to facilitate Co-op. Voting is open until 6 November - all shareholders are resolution of Shareholder complaints, oversight of the encouraged to get involved. Milk Price Manual and Principles including appointments to the Milk Price Panel, managing the Essentially, Council’s role is about promoting the interests of director election process including oversight of shareholders. The best way Councillors can do this is to know certain Nominations Committee meetings and your views, so feel free to contact your Councillor. They will always be happy to hear from you! appointment of a member of the Independent Selection Panel, oversight of the Fonterra Shareholders’ Market and Fonterra Shareholders’ Fund including consultation on Fund limits.

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 14 SPOTLIGHT ON OTAGO SOUTHLAND In a part of the country world-famous for its cheese to producing world-class cheddar and delivering it rolls and rolled R’s, it’s no surprise that Otago to the world. Southland returns around $1.1 billion Southland is a region making a huge contribution to the regional economy.

EDENDALE QUICK FACTS • Our tankers collect 2.4 billion litres of milk annually • Processing 15 million litres of per day at peak Edendale • Makes products for more than 70 global markets Edendale has been operating for over 137 years, making it New • Annual production up to 430,000 metric tonnes of dairy Zealand’s oldest dairy processing site. Established in 1881, the site was the first to export refrigerated cheddar cheese and butter • 670 employees around the world. Edendale has 13 plants. • 65 milk tanker fleet

Stirling Stirling is one of the most efficient and productive sites in the of its kind in the Southern Hemisphere. Stirling will also transition country. It boasts a state-of-the-art biological treatment plant from coal to renewable energy as part of our goal to achieve net which uses natural organisms to treat waste water – the only one zero emissions across our sites by 2050.

STIRLING QUICK FACTS • At its peak, processes 1.8 million litres of milk per day • It takes a total of five hours to produce a block of cheese from raw milk • Makes more than 50,000 metric tonnes of dry salt cheddar cheese each year • Produces mainly cheddar cheese, including the much-loved Colby and Egmont cheeses.

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 15 SPOTLIGHT ON OTAGO SOUTHLAND 500 elephants come off new line at Edendale A new butter fat line installed at Edendale has and other key growth markets. In response to growing demand, produced the equivalent of 500 African elephants we had to build higher capacity at Edendale. “ since it opened almost a year ago. “Edendale was chosen because we already had an existing line and could take on the extra capacity. But with demand continuing The 3000 tonnes of butter fat has been made, packed and sent to to rise, we might have to continue to expand capacity.” markets around the globe. The site has made some changes to their manufacturing process Edendale’s site manager Richard Gray says the rise in demand for to make production easier. The new line gave employees a chance butter is providing opportunities for the Southland community. to take part in a new training programme to be up-skilled. “Our Edendale butter fat is being sent to New Zealand companies but also exported to Taiwan, Southeast Asia

AN INTERVIEW WITH THE BIG CHEESE Malcolm (Monty) Montgomerie is one of the many top-notch Kiwis in the south who help make delicious cheese for the region’s world-famous cheese rolls. Monty has been in the dairy industry for more than 36 years and has overseen the cheese production at Fonterra Stirling for the last 22 years. Cheese-making is in Monty’s blood and the cheese-connoisseur said a fondness for cheddar was something his father passed on to him. “My dad was a cheese-maker, so when I left school and was looking for a job I ended up working for him in Palmerston North. I was there for around 10 years before moving south and eventually taking up a post at Fonterra Stirling where I work today.” He’s trained a few people over the years. “It takes a long time to train people up and learn the ins and outs. But there’s always something new to learn every day.” When asked what kept him in his job for so long, Monty says he enjoys just about every aspect of it. “It’s just a bloody great job. If I didn’t enjoy it I wouldn’t have been there for 36 years. There’s good job satisfaction and you get to see great results. The camaraderie from shift to shift isn’t too bad either. I just love the lifestyle.” Malcolm Montgomerie- Supervising Operator at Fonterra Stirling

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NOTE FROM THE SHAREHOLDERS’ COUNCIL

It was great to see so many of our shareholders at time in early October to respond to the online survey testing the the Annual Results meetings last month. Around new draft Purpose Statement. We’re waiting to see the results of the survey, and whether the statement hit the mark. Once it’s 2,000 of you attended one of the 20 meetings finalised, the new Purpose statement will help guide the strategic held around New Zealand, to hear more about our review that our Board and management have promised us off the financial results, ask some robust questions of the back of the Annual Results. Board and management team, and express your We’ve also been lobbying the Board to add measures around culture and sustainability to the Statement of Intent, the set of views about the present and future of our Co-op. performance objectives that the Board sets itself and the One query raised at some meetings and in a few emails was management team each year. These are the key measures (KPIs) around the role and value of your Shareholders’ Council. It’s a that Council refers to when reviewing Fonterra’s performance. fair question – much of Council’s activity is unseen by the We’re pleased to see that the Board has taken up our suggestion majority of our shareholders. In our article ‘The role of the and added seven new measures. Shareholders’ Council’ (page 13) you can read about the role of Another significant Council workstream is the Value Creation Council versus the different but complementary responsibilities review initiated earlier this year. We have engaged an of the Board and management team. We also strive to keep you independent firm of financial analysts to look at Fonterra’s informed via our various communications channels: in this performance since our inception and summarise the value publication, on the Farm Source website, on My Co-op and in my delivered to farmers over that time. This review will provide a emails. I encourage you to keep an eye out for these updates, sound base from which we can all assess the Co-op’s performance and you should always feel free to contact your Councillor if you moving forward. We know you’ll be very interested in the findings, have any questions or comments you’d like to share, discuss or and we aim to share them by late-October. pass through to the Board. The Shareholders’ Council exists to represent our farmer This is a busy time of year for us – we have elections underway, shareholders’ views and advocate on your behalf. You can the Annual Results have just landed, and several of our initiatives influence this by talking to us – share your challenges, ask us your are coming to their conclusion. questions and tell us what you think. Your vote for your One way we have been influencing Fonterra’s direction over the representatives (open now until 6 November) is another way to last year has been to challenge the Board on our Co-op’s direction have your say – I encourage you to take that opportunity. If we of vision and purpose. Your Council believes that strategy needs work together in these ways, we can be confident in our messages to follow purpose, not the other way around. These discussions when we are sitting at the table with the Board. led to the Purpose review currently underway. I hope you all took Duncan Coull

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Breaking the traditional milking mould

Milking accounts for half of the labour hours spent on dairy farms. So it’s no surprise milking schedules have been changing rapidly across the sector ever since scientists started researching once-a-day (OAD) milking more than 30 years ago. DairyNZ’s initial research into milking schedules has shown it’s possible to extend the milking interval up to 18 hours before milk production is limited. If cows are fed the same amount, there should be little to no loss in milk production, so adapting milking schedules for greater flexibility becomes a more realistic option for many farmers. Shane and Eileen Walker milk 800 cows in Southland and were twice-a-day (TAD) milkers until staff changes in Christmas 2012 encouraged them to try to what they coined 'VIM' (variable interval milking). They operated the VIM system until transitioning to full OAD in the subsequent season. VIM consists of milking three ‘normal’ TAD milkings, alternating with two OAD milkings in the weekdays, followed by OAD both Shane and Eileen Walker days of the weekend. This improved work hours and provided a stable routine on-farm, as the Walkers’ pattern for each day of the Shane says other farmers considering this system should be week was the same. proactive. The couple says VIM worked really well. It allowed them to “Plan the change at least six months ahead (herd testing, hold production and run the farm through to the end of the mating management); switch before a feed deficit and plan your season with lower staff numbers, while keeping milking times to feed allocations; and ensure somatic cell counts are manageable more sociable hours. as cows settle into the new routine.” TREES FOR TAKAKA It’s not every day you get to spend your afternoon The work was completed in doing something great for the environment. conjunction with ‘Project De-Vine’, a wider project that But an enthusiastic crew of kids and adults from Takaka primary the Tasman Environment Trust school, along with Fonterra staff did just that, planting 550 native (TET) commissioned to trees along the Motupipi River. eradicate a willow infestation Takaka Environmental Manager Emily MacDonald, says it was along the Motupipi River’s great seeing so many of the team getting involved and giving back main stem. to the environment. Tasman District Council “It was a fantastic day, a lot of trees were planted and everyone spokesperson Claire Webster seemed to enjoy themselves.” says the project has grown to Trumpets were enjoyed by all at the include more than just willow end of the planting infestation and now also focuses on riparian planting, community engagement and education opportunities with local schools. “I get enormous satisfaction from seeing young people understand they can make a real and positive difference to their local environment. To do this with Fonterra staff makes it all the more worthwhile – to be building relationships and good role modelling, it works on so many levels. Thanks Fonterra staff!” Initiatives like this are an important part of our sustainability efforts to protect and improve our beautiful environment and is The kids are given a lesson on how to plant the trees especially important in places where we operate.

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Weighing heifers has huge gains By Sarah Dirks

Regular weigh-ins in the early stages are as The importance of weighing important for young stock as they are for children. young stock was first realised back in the 1940s by Dr Campbell Regular weighing and monitoring can help ensure your heifers McMeekan, one the most are on track to meeting their liveweight targets which has been influential ag leaders at the time in shown to improve milk production and lifetime productivity. New Zealand. There are four key times to weigh. The first is at weaning, While uptake in weighing then at 12-13 months to ensure they’re on track to achieve practices was initially quite slow, puberty, and then again at 15 months to assess pre-puberty I’ve noticed that over the last animal management. The final weigh in should be at 22 months couple of years, more and more to make sure they have met their pre-calving liveweight targets. farmers are seeing the value in weighing their heifers. Weighing heifers is more important when they are young Sarah Dirks because it is easier for them to fall behind target weights. A In fact, the number of heifers drop of 200g in growth per day may seem small, but it can have weighed by farmers each year has increased 25 per cent over a huge impact on the growth of a young animal. Skeletal the last five years, according to Livestock Improvement growth is influenced by pre-puberty nutrition and management, Corporation (LIC) data. That’s an increase from 436,000 to and can never be made up if missed. 545,000 heifers now weighed each year. This is great and something I hope we continue to build on. Weighing and then reviewing the data can pick up low growth early on and alert you, or your grazier, that changes For more information about weighing heifers need to be made to mob management, or intervention for visit dairynz.co.nz/animal. underweight animals. Sarah Dirks is DairyNZ’s regional leader in Taranaki.

HEIFER LIVEWEIGHT TARGETS • 30 percent of mature weight at six months of age • 60 percent of mature weight at 15 months (mating) • 90 percent of mature weight at 22 months (pre-calving)

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Four top apps for your Farm If you want the down low on the best apps to 2. On Farm App download to your smart phone, here’s our Top 4, The On Farm app provides you with up to the minute milk farmer-tested guide. production data and quality information. You can compare last and current season results to see how you’re tracking. The app 1. My Co-op App can be shared with up to six people so all staff have access to the same information that you do. This gives you the latest updates on 3. Dairy Diary App Co-op news, Dairy Diary allows you to quickly and easily view previous upcoming events, treatments through your phone. This season alone, more than share price and 12,000 animal treatments have been recorded. New features your Farm Source include being able to add multiple animals to a treatment, view rewards balance. historical treatments and auto populate withholding periods for Hot topics include drugs. The app can be shared among staff so everyone can the Global Dairy access what’s happening on farm. Update, Global Dairy Trade results 4. Agrigate App as well as industry Agrigate is aimed at helping farmers improve their farm news from MPI. Key performance. It’s a joint venture between Fonterra Farm Source farming contacts and LIC, which combines key data farmers need to make faster and for your area are smarter decisions from one, easy to use online dashboard. The app also included. is continuously evolving, thanks to feedback from farmers. ENTRIES OPEN FOR THE 2019 NZ DAIRY INDUSTRY AWARDS The chance to gain recognition for your farming managers, 2IC’s, operations managers, farm managers, herd career achievements is here. managers, production managers and others. • The Dairy Trainee of the Year award is open to those aged Entries for the New Zealand Dairy Industry Awards (NZDIAs) 18 – 25 years, with no more than three years full-time are being accepted online until midnight 16 November. experience on a dairy farm. Award categories include Share Farmer of the Year, For more information on the events and to enter visit Dairy Manager of the Year and Dairy Trainee of the Year. www.dairyindustryawards.co.nz Nominations for the Fonterra Responsible Dairying Award open on 15 January 2019. The Awards are split into 11 regions (Northland, Auckland/ Hauraki, Waikato, Bay of Plenty, Central Plateau, Taranaki, Manawatu, Hawke’s Bay/Wairarapa, West Coast/Top of the South, Canterbury/North Otago and Southland/Otago), with regional judging starting in early 2019. The regional winners are announced at award dinners around the country in February and March next year. The 33 regional winners then progress to another judging round, competing for the national honours, announced at the National Awards Dinner in May. • The Share Farmer of the Year award is open to all self-employed farmers largely responsible for the day-to-day running of the farm, such as sharemilkers, contract milkers, lessees and equity farm managers. • The Dairy Manager of the Year award is open to all salaried farm workers, including farm assistants, assistant farm 2018 winners (left to right): Simone,Gina, Duncan and Gerard.

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Message from Jason Message from Richard Jason Minkhorst Managing Director, RD1 Group Hello, I was pleased to officially open the newest Farm Source Many of you have given me feedback on our products and store in Kaitaia in September. The new store has better servicesHaving while the right I’ve beenfeed atout the visiting right timeour stores will be over front the of lastmind Storevehicle wise access, we’re a biggercontinuing yard, tofree expand wifi and our coffee, footprint and –rooms our fewright months, now andwith attending cows back our resultsinto peak roadshows. production, Thanks and to newthat canMethven be booked store foris meetings.on track Theto open furthest on northMonday of our29 you,maintaining I have a clear body picture condition on thescore things will youpay think off as we the are herd September,70 Farm Source work stores, is underway it really on is Culverden a hub for the plus, local our latest doingheads well into and mating. more importantly, areas we can improve. For storecommunity planned to foruse Otautau,and enjoy. will It makeshelp take me verythe pressureproud to seeoff me these improvements go wider than our products and ourFonterra other continuingSouthland tostores invest following in our rural the communities.dairy expansion Planning ahead to cover off continuity of feed supplies is services to include areas like Health and Safety. Our people there.We’re Our also store committed refresh toprogramme sustainability also and continues I’m happy as towe important at this time of the year – think about contracting are our most critical asset and our number one priority is to updatereport ourthe effortslook and in this feel area of area numberbeing acknowledged, of our stores with to your supplementary feed now to lock in price and quantity, ensure all our staff get home safely every day. Like you do on provideNZAgBiz an a finalist improved in the store NZI Sustainableexperience Business for customers Network and have surety of supply for when you need it. farm, we’re committed to delivering the highest standards of andAwards staff. 2018. You can read more inside and we’ll find out in Health and Safety and I ask your support in our team’s late November if we’re a winner. Our online platform, RD1.COM, has proved a hit with It’s been a tough time in the north with recent heavy rains efforts, if you see something unsafe in one of our stores customers – getting what you need during the busy times andFinally, high winds do check – farmers your Rewards in the area balance have as hadwe headmore into than please let the team know. is critical and customers have commented that time saved theirChristmas. fair share From of the tough 1st of conditions November so through here’s toto thea settled 31st of byThe ordering sun is shining ahead andis a temperaturesbonus. If you forhaven’t most already parts of done the springJanuary and we a have good some season great ahead. exclusive offers on a selection of countryso go onlineare on the– visit way RD1.COM up. This means and compareour Spring product campaign and summer outdoor products. These products include Weber is underway and we are offering a bonus FS$20 with every BBQs and accessories, a cantilever umbrella, an outdoor $500online spent order on we a wide are offeringrange of free seed delivery* and ag-chem for the products. month of heater plus cases of quality wine. Please go online to view OurSeptember... TSRs will help some you conditions find the right do apply. feed approach Taking advantage for your the great deals we have on offer. farmof this going deal into will the save growing you aseason. trip into town, making life that See you next month. littleOctober bit easier. is also the last month for our Calf Meal bonus FS$ Jason offer so take advantage of this great deal and set your calves up for years to come. At the same time make the most of our six months deferred terms on all purchases over $500 right through until November.

IN STORE . NZFARMSOURCE.CO.NZ . 08080000 656731 266568

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 21 FROM CHICK PINGING TO STOAT DOGS How Fonterra is helping save our national bird.

Whakatane has long been known for its stunning beaches and hot weather, but it’s not just the locals and summer tourists who love the Bay of Plenty town. The area is also home to more than 300 North Island Brown Kiwi. The Whakatane Kiwi Trust plays a big role in the support and monitoring of the kiwi population and it’s an organisation the Fonterra Grass Roots Fund has been happy to support. The trust has received several grants from the fund, which have helped them purchase transmitters to monitor new born chicks and provide ongoing training to ‘Teddy’ the Trust’s stoat dog. Whakatane Kiwi Trust administrator Hannah Flatman says both the transmitters and Teddy play an important role in their kiwi protection programme. “When the kiwi chicks are born, the transmitters are attached to their leg with a band, kind of like wearing a watch. We can monitor their movements with a receiver. These transmitters help us keep an eye on the babies until they reach the 'stoat proof' weight of 1000gm which is generally around 6-8 months old.”

The transmitters help volunteers monitor the chicks travel all over the world calling ourselves kiwis if there were no actual kiwis left in our country.” Fonterra Grass Roots Manager Kane Silcock says the work the Whakatane Kiwi Trust do is important not just for the local community but for the whole of New Zealand and it’s an honour to be able to help protect one of our national symbols. This year the trust celebrated a new milestone – residents living The tiny transmitters fit around the leg of the new chick near the monitored areas began to regularly report seeing kiwis in their backyards. A great sign for a population which just two “The kiwi chicks in our project area have been under a lot of decades ago was in single digits. pressure from stoats recently. Teddy helps to track stoat locations during times of high kiwi chick predation, enabling us to react with increased trap numbers.” Hannah says without the work of the Trust and its volunteer, sponsors and partners around 95 per cent of chicks would be killed within the first few months of life. Bob Boreham is one of the trust’s volunteers. Every week he spends between 12 and 20 hours ‘chick pinging.’ Bob uses a small radio to pick up the signal from the transmitters around the chick’s leg and make sure they are still alive and healthy. He feels protecting our national bird is something all New Zealanders should get behind. “I’ve been doing it for about three years now, A South African guy once asked me why I volunteer and I told him we couldn’t Teddy the stoat dog

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 22 Raising a glass for Malaysia’s next generation In celebration of Merdeka and Malaysia Day, our Malaysia team started a programme to supply disadvantaged children at one of the country’s community homes with six months’ worth of dairy nutrition. The milk powder and UHT donations go to the Trinity Community Children’s home which cares for and supports abandoned, abused or neglected children between the ages of four to 12 years. Manisya Ismail, Co-operative Affairs Manager of Fonterra Brands Malaysia, says the Co-op wants to help and support the well-being of all Malaysian children so that they can live full and active lives to reach their potential. “Milk is an important part of a healthy diet for children, providing them with key nutrients to help build strong bones and teeth. We wanted to support these children in need and help them develop a healthy habit of drinking milk from a young age to last a lifetime.” By the end of the programme, the children at Trinity Community Children’s Home will have received 180kg worth of Fernleaf CalciYum milk powder and Fernleaf UHT milk to boost their overall health. Our Malaysian team hand out milk to disadvantaged kids

NEW LOOK FOR FONTERRA MILK FOR SCHOOLS Our Fonterra Milk for Schools programme is rolling out new packaging with fun facts, new designs and a healthy serving of Te Reo Maori. The new milk packs come in four designs, each of which is available in in both English and Te Reo. Over time schools will receive a mixture of designs and languages. In-School Programmes manager Kylie McKay says emphasising Te Reo in the new designs was particularly important. “The Ma-ori language is an essential part of education in Aotearoa, we want to encourage school children in their learning and use of the language. We feel the new packaging is fun and will help kids learn, while acknowledging those who are already fluent.” To help strengthen the connection between the kids in the classroom and our farmers, the new packs also feature ‘Proudly brought to you by the Farmers of Fonterra’ The first of the new milk cartons went out to schools last month. Our new Fonterra Milk for Schools Packaging

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 23 KEITH’S CORNER I am often asked how to include more dairy into BBQs. Here are a few ideas. Blue cheese: You should only ever turn your steak once, so when you do, pop a piece of creamy blue cheese (Kikorangi) on top, it will slowly melt as the cooking is completed and is an easy way to add a bit of unique flavour to your steak. If not keen on Blue cheese, try using other cheeses such as brie or even some nice aged cheddar. Haloumi Cheese: Great to fry/ grill on the BBQ, and fantastic to add to salads, remember to season your Haloumi and cook it in butter, squeeze a little lemon juice onto the Haloumi just as you serve it. Flavoured Butters: Flavoured butters are a great way to add flavour to BBQ’s they are easy to prepare and you can use only what you need. A few ideas are; Garlic and herb (fresh herbs), pepper and smoked paprika, lemon and herb butter, peri peri butter, use your imagination. Top your protein as you serve it and let the butter melt. To make; just whip butter until creamy, add your flavours and mix thoroughly. If adding liquid (balsamic vinegar, lemon juice etc) add slowly and a little at a time ensuring the butter and liquid are well combined each time. Place the butter on a sheet of baking paper and roll to create a ‘tube’ by twisting the ends, chill in the fridge and slice as required. Stuffings and fillings: Feta, cream cheese, cottage cheese etc all mix well with other ingredients to create stuffings for whole fish, butterfly lamb etc. The challenge with stuffing is that as the meat shrinks it tends to squeeze the fillings out (especially if they are too moist). So, make sure your stuffing is not too moist and do not over fill.

ONE OF MY FAVOURITE BBQ ITEMS ARE ½ SHELL MUSSELS. I steam them open (make sure they are slightly undercooked) and allow to cool in ½ shell. I then top them with a variety of toppings such as; • Garlic butter • Tomato Salsa and parmesan • Rockerfella (Chopped parsley, spinach and coriander with butter and breadcrumbs) • Casino (chopped cooked bacon, red peppers and butter) Place them on a warm BBQ grill and if it has a cover, close and allow to heat through. Cheese and chicken go well together for a good bbq dinner

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 24

YOUR PHOTOS

No scarf, no problem for Madi

Calves are a boys best friend on Wayne Langfords farm

The sun has set on calving season 2018 for Mike in the Waikato

Spring has officially sprung for Alex in the Bay of Plenty

Grant has all hands on deck in the Naki See your photo in next month’s FarmSource Share your photos with us on Facebook, Twitter, Instagram by tagging Fonterra or by sending them to [email protected].

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 25

Directors Shareholders’ Council

John Monaghan WARD WARD NAME COUNCILLOR EMAIL PHONE Chairman Mobile: 021 507 483 1 Northern Northland Luke Beehre [email protected] 027 630 0065

Clinton Dines 2 Central Northland Sue Rhynd [email protected] 027 4847323 Phone: 09 374 9750 Fax: 09 379 8320 3 Southern Northland Greg McCracken [email protected] 021 857 773

Simon Israel 4 Waikato West Ross Wallis [email protected] 027 6377 460 Phone: 09 374 9750 Fax: 09 379 8320 5 Hauraki Julie Pirie [email protected] 027 608 2171

John Wilson 6 Piako Malcolm Piggott [email protected] 027 631 7843 Phone: 07 871 8982 Mobile: 027 476 2995 7 Waipa Kevin Monks [email protected] 027 271 6185

Nicola Shadbolt 8 South Waikato James Barron [email protected] 027 4535 298 Phone: 06 329 4822 Mobile: 021 507 483 9 King Country Duncan Coull [email protected] 027 472 7110

Ashley Waugh 10 Northern Bay of Plenty Don Hammond [email protected] 027 4885 940 Mobile: 027 610 7977 11 Eastern Bay of Plenty Wilson James [email protected] 027 498 1854 Scott St John Phone: 09 374 9750 12 Central Plateau Matt Pepper [email protected] 027 463 8993 Fax: 09 379 8320 13 Central Taranaki Noel Caskey [email protected] 027 230 1083 Donna Smit Mobile: 027 265 6668 14 Coastal Taranaki Vaughn Brophy [email protected] 027 463 8632

Bruce Hassall 15 Southern Taranaki Ben Dickie [email protected] 027 2937 955 Phone: 09 374 9750 16 Central Districts West Robert Ervine [email protected] 027 4385 413 Brent Goldsack Mobile: 021 756 154 17 Hawke’s Bay Andrew Hardie [email protected] 0294 392 542

Andy MacFarlane 18 Wairarapa John Stevenson [email protected] 027 469 1548 Mobile: 027 432 3964 19 Tasman/Marlborough Sue Brown [email protected] 027 8295 146

20 North Canterbury Shaun Lissington [email protected] 027 315 0039

21 Central Canterbury Jessie Chan Dorman [email protected] 021 431 020

22 South Canterbury Michelle Pye [email protected] 021 360 515

23 Otago Ad Bekkers [email protected] 027 4861484

24 Eastern Southland Emma Hammond [email protected] 027 211 9356

25 Western Southland Ivan Lines [email protected] 027 433 9118

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 26 Regional Teams

NORTHLAND Phone: 07 858 8655 Mobile: 027 414 8358 Mobile: 021 492 179 Email: [email protected] Mike Borrie Email: [email protected] Rod O'Beirne Head of Farm Source Jo Burton Area Manager Northland Area Manager Hawera/Waverley Mobile: 027 221 2042 South Phone: 06 278 2475 Email: [email protected] Mobile: 021 857 282 Mobile: 021 548 124 Brian Hughes Email: [email protected] Email: rod.o'[email protected] Area Manager Rosalie Piggott Shirley Kissick Northern/Central Northland Area Manager Area Manager Mobile: 021 542 038 Cambridge Egmont Plains Email: [email protected] Phone: 07 827 4741 Mobile: 027 276 7210 Neil Crowson Mobile: 021 546 617 Email: [email protected] Area Manager Email: [email protected] Dean Larsen Central Northland Emma Hodges Area Manager Mobile: 027 404 2769 Area Manager North Taranaki/Coastal Email: [email protected] Te Awamutu West Mobile: 027 562 2393 Scott Parker Mobile: 021 228 5473 Email: [email protected] Area Manager Email: [email protected] Central/West Northland James Creswell BAY OF PLENTY/TAUPO Mobile: 021 798 483 Area Manager Lisa Payne Email: [email protected] Te Awamutu East Head of Farm Source John Bryant Phone: 07 872 4979 Bay of Plenty Area Manager Mobile: 027 429 6392 Mobile: 021 400 250 Southern Northland Email: [email protected] Email: [email protected] Mobile: 021 917 403 John Wilson Michael Roe Email: [email protected] Area Manager Area Manager WAIKATO Rotorua/Galatea Mobile: 021 547480 Mobile: 027 404 5947 Paul Grave Email: [email protected] Email: [email protected] Head of Farm Source Peter O’Shea Jackie Dale Waikato Area Manager Area Manager Mobile: 021 764 067 South Waikato Taupo/Reporoa Email: [email protected] Phone: 07 349 0334 Mobile: 021 242 2158 Mike Powell Mobile: 021 546 580 Email: [email protected] Regional Manager Waikato Email: peter.o'[email protected] Andrew Karl (Upper North Island) Vicki Wallace Area Manager Phone: 07 858 8640 Area Manager Western Bay of Plenty Mobile: 021 840 355 Taupo West/Taumarunui Mobile: 021 542 946 Email: [email protected] Mobile: 027 406 3105 Email: [email protected] Bill Hanson Email: [email protected] Rachel Dillon Area Manager Nick Andree-Wiltens Area Manager Pukekohe Area Manager Eastern Bay of Plenty Phone: 09 238 4359 Otorohanga Mobile: 027 849 3217 Mobile: 021 765 601 Phone: 07 873 8194 Email: [email protected] Email: [email protected] Mobile: 027 444 5073 Jen Carter Brent Stevens Email: [email protected] Area Manager Area Manager Waihi/Tauranga Ngatea West & Maramarua TARANAKI Mobile: 027 204 4603 Mobile: 027 406 2446 Scott Walls Email: [email protected] Email: [email protected] Head of Farm Source Ross Periam Taranaki CENTRAL DISTRICTS Area Manager Mobile: 027 291 4774 Jason Boyle Huntly/Taupiri Email: [email protected] Head of Farm Source Phone: 07 824 6758 Paul Radich Central Districts Mobile: 021 542 939 Area Manager Phone: 06 278 2445 Email: [email protected] Taranaki Mobile: 027 491 4850 Area Manager Phone: 06 756 7971 Email: [email protected] Hamilton/Raglan Mobile: 021 961 679 Max Johnston Vacant Email: [email protected] Area Manager Jill Pauling Kevin Taylor Rangitikei/Manawatu/Horowhenua Area Manager Area Manager Phone: 06 351 7307 Ngatea East/Coromandel Northern Taranaki Mobile: 021 548 121 Mobile: 027 221 7639 Mobile: 021 243 2510 Email: [email protected] Email: [email protected] Email: [email protected] Tony Haslett Janette McKay Errol Hamill Area Manager Area Manager Area Manager Hawke's Bay Coastal Taranaki Phone: 06 871 0136 Phone: 07 884 7259 Phone: 06 761 8375 Mobile: 021 961 067 Mobile: 021 930 825 Mobile: 027 579 8519 Email: [email protected] Email: [email protected] Email: [email protected] David Sinton Ciaran Tully Mike Green Area Manager Area Manager Area Manager Wairarapa Morrinsville North Central Taranaki Phone: 06 376 0948 Mobile: 027 541 0854 Mobile: 027 242 5095 Mobile: 021 547 784 Email: [email protected] Email: [email protected] Email: [email protected] Sarah Wood Darryl Heibner Jamie Smith Regional Manager Waikato Area Manager Area Manager (Central North Island) Taranaki Tararua Mobile: 027 406 2917 Email: [email protected] CUT ALONG DOTTED LINE DOTTED ALONG CUT Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 27

Nick Clarke Chris Irvine Jeremy Anderson Area Manager Area Manager Regional Manager Lower Manawatu Mid Canterbury – North Otago / Southland Mobile: 027 221 7624 Mobile: 021 817 652 Mobile: 027 5844 796 Email: [email protected] Email: [email protected] Email: [email protected] Michael Robertson Gregor Ramsay CANTERBURY/TASMAN/MARLBOROUGH Area Manager Area Manager Charles Fergusson Mid Canterbury – Coastal Otago Head of Farm Source Mobile: 021 242 3983 Mobile: 027 264 2245 Canterbury / Tasman / Marlborough Email: [email protected] Email: [email protected] Mobile: 021 115 5253 Jadene Irvine Staci Meecham Email: [email protected] Area Manager Area Manager Waitaki Anna Taylor West Otago / Gore Phone: 03 686 8110 Regional Manager Mobile: 021 241 7650 Mobile: 021 961 352 Canterbury / Tasman / Marlborough Email: [email protected] Email: [email protected] Mobile: 027 807 8090 Greg Close Antoinette Archer Email: [email protected] Area Manager Area Manager Southern Southland Victor Gahamadze Mid Canterbury South Area Manager Mobile: 021 242 5121 Mobile: 027 272 4069 Email: [email protected] Tasman/Marlborough Email: [email protected] Ruth Prankerd Mobile: 027 552 7230 Bryan Barnett Area Manager Email: [email protected] Area Manager Central Southland East Mike Hennessy South Canterbury Mobile: 027 813 8672 Area Manager Mobile: 027 405 8348 Email: [email protected] North Canterbury Email: [email protected] Mobile: 027 706 6787 Nadine Duff Email: [email protected] OTAGO/SOUTHLAND Area Manager Rodney Potts Mark Robinson Northern/Central Southland Area Manager Head of Farm Source Mobile: 027 405 2952 Leeston / Rangiora Otago/Southland Email: [email protected] Mobile: 027 254 0437 Mobile: 027 809 5060 Email: [email protected] Email: [email protected]

Services Team 0800 65 65 68

Your Services Team is on hand to deal with all your queries from 7am–7pm, Monday to Friday. Give us a call if you have a question about anything at all – from queries about vats and milk collection, to questions about your shares and monthly payments. At weekends and after hours you can still call our after hours team about urgent matters. Call us on 0800 65 65 68 and your call will automatically be directed to your local Services Team. HANDY TIPS TO REACH US • Our busiest time is from 8.30am to 10.30am – directly after milking. So, if it’s not an urgent issue, try calling us outside those hours. • If you prefer, you can email us at [email protected] and we’ll get back to you within 48 hours. • Log into Farm Source via nzfarmsource.co.nz for information at any time. For New Conversions and Milk Growth

Paul Johnson Lana Ngawhika Michael Blomfield Business Development Manager Business Development Business Development Manager Waikato & Relationship Manager Southland/Otago Phone: 07 858 144 Bay of Plenty Phone: 03 948 1474 Mobile: 027 406 2462 Phone: 07 334 1016 Mobile: 021 529 581 Email: [email protected] Mobile: 027 345 4707 Email: [email protected] Haylee Putaranui Email: [email protected] Scott Cameron Business Development Mitchell Crosswell Business Development Manager & Relationship Manager Business Relationship Manager Central Districts Waikato Taranaki Phone: 027 208 7186 Phone: 07 8581451 Mobile: 027 699 1138 Email: [email protected] Mobile: 027 4063293 Email: [email protected] Email: [email protected] Roger Kilpatrick Brett Alexander Business Development Manager Business Development Manager Canterbury/Tasman/Marlborough Waikato/Bay of Plenty Phone: 03 966 7309 Phone: 07 873 8194 Mobile: 021 527 492 Mobile: 021 546 595 Email: [email protected] Email: [email protected]

Fonterra Farm Source >>> October 2018 Fonterra Farm Source >>> October 2018 28

SUSTAINABLE Bruce Allan Dargaville Wairarapa South Otago/Eastern Jodi Hawken Steph Scheirlinck DAIRYING ADVISORS Southland Mobile: 021 370 159 Mobile: 021 370 136 NORTH ISLAND Mobile: 027 605 4344 North Auckland/Wellsford Manawatu Brian Goodger Kara Holmes Jillian Callow George Kruger Mobile: 027 292 3042 Whangarei North South Otago/Northern Mobile: 027 431 0011 Mobile: 027 5044 156 Southland Pukekohe Mobile: 027 703 6550 Jess Blair ASUREQUALITY FARM Whangarei South Mobile: 022 183 4782 DAIRY ASSESSOR - Vacant Andy Hunt Western Southland Pukekohe CONTACTS Sarah English Mobile: 027 257 5599 Jeni Wadsworth Ashburton North Waikato/ Mobile: 021 575 649 South Auckland Cain Duncan Craig McKenzie Hamilton North Mobile: 027 525 6082 Central Southland Mobile: 021 242 2842 Mobile: 027 703 1743 Hector Font Stephine Cretney Karl Rossiter Mobile: 027 224 1100 Mobile: 0276 027 050 Hauraki Plains/ Hamilton East Coromandel/ SPECIALTY MILKS Balclutha Kerrie Mitchel Jess Tuxford Te Aroha/ Waihi • Organic Dairy Supply Mobile: 027 211 4558 Mobile: 021 498 505 Mobile: 0274 886 177 Stuart Luxton Thames/Coromandel Liz Vreugdenhil Stephanie Bish Business Development Josh Finn Jones Mobile: 027 466 0236 Tahuna/ Matamata/ Manager Mobile: 027 456 7808 Morrinsville Upper North Island Canterbury Mobile: 027 809 8375 Mobile: 021 241 8797 Te Aroha/Morrinsville Mike McAnulty Tash Pivott Mobile: 021 599 734 Anna-Lena Wright E: [email protected] Mobile: 021 194 9095 Hamilton/ Cambridge/ • Stolle Supply Christchurch Te Aroha Alaistair King Te Pahu/ Raglan • Winter Milk Supply Bernardo Balladares Mobile: 027 702 1674 Mobile: 0204 124 4948 Phone: 0800 65 65 68 Mobile: 021 926 650 Hadleigh Putt Mike Henderson Cambridge Mobile: 021 906 256 South Waikato/ MILK QUALITY Nicole Lovett Taupo/ Reporoa/ Mobile: 021 370 396 Golden Bay Putaruru/ Tokoroa RESULTS Joy James Mobile: 027 838 8945 Matamata/Putaruru Mobile: 0274 660 469 Fonterra Express (Automated Bradley Leuthard Matthew Holwill Milk Quality Results) Mobile: 021 575 394 Gore Otorohanga/ Te Awamutu/ Phone our Service Centre on Matamata/Tirau/Tauranga Karla Miller Te Kuiti / Taumarunui Mobile: 021 748 991 0800 65 65 68 Steph Baker Mobile: 027 592 7498 Mobile: 021 322 128 Steve Sharman Mobile: 0274 660 244 Nick Doney RETAIL/WEBSITES Te Awamutu/Kihikihi Bay of Plenty Denis Cadman Hamilton Mobile: 027 355 2355 Fonterra Farm Source Stores Mobile: 027 477 5735 Craig Bell -Operations Paula Twining Customer Support Centre Pirongia/Ragland Manager - North Waikato (CSC) Kim Hodgson Mobile: 027 561 7249 Mobile: 027 602 4272 Phone: 0800 73 12 66 Mobile: 027 498 3756 Invercargill Debbie O’Connell Johana Blackman store.nzfarmsource.co.nz Otorohanga Waikato Gillian Beaver Mobile: 021 826 434 Fonterra Farm Source Mobile: 027 602 0532 Mobile: 027 444 8442 Nelson/Marlborough Anna Reddish nzfarmsource.co.nz Rotoroa Caroline Neilands Hawkes Bay/ Wairarapa Leanne Sinclair Mobile: 0275 744 688 Mobile: 027 385 2416 ON-FARM SERVICE Mobile: 022 183 4781 Oamaru Blake Cheer PROVIDERS Taupo John Shepherd Taranaki QCONZ FARM DAIRY AND Shayla McGrory Mobile: 027 297 0818 Mobile: 027 640 0449 Mobile: 027 278 1653 QUALITY CONSULTANTS Rangiora Kate Heffey Whakatane Nick Drinnan Manawatu Contact for: Farm Dairy Steve Cheer Mobile: 021 906 255 Mobile: 021 367 626 Mobile: 027 543 6140 Reports, Grades, Suspect Milk Timaru Checks, Farm Dairy Approvals Northen Taranaki SOUTH ISLAND and Milk Quality Assistance John Fahey Melissa Poingdestre Mobile: 027 430 2811 Mirka Langford QCONZ Freephone Mobile: 021 714 128 Winton Tasman/Marlborough 0800 72 66 95 Coastal Taranaki Mobile: 027 703 2415 Gavin Eade Haye Stienstra General Manager Mobile: 021 826 593 Libby Sutherland Ryan Hall Mobile: 027 278 1651 North Canterbury Mobile: 027 222 8862 Hawera Mobile: 021 220 8283 Regional Operational Manager Sara Griffiths Marcelo Wibmer Waikato/Bay of Plenty Mobile: 027 490 3689 Fonterra supports the service Mid Canterbury Humphrey du Plessis South Taranaki Mobile: 021 311 332 Mobile: 027 485 7019 Colin Daysh offered by LifeLine. Pressure can be a good thing, but often the Hannah Phillips Mobile: 027 273 1484 Regional Operational Manager demands of work, relationships or Mid/South Canterbury Lower North/Taranaki Manawatu/Wanganui expectations can overwhelm us. Mobile: 027 591 290 Mike Peters Mike Peters If it's all getting on top of you, Mobile: 021 851620 Mobile: 021 85 1620 Anna Dyer confidential help is available for South Canterbury/ Kerrikeri/Farth North Dannevirke rural communities at LifeLine. North Otago Phoebe Thorrington Jess Nation Mobile: 027 405 2964 Mobile: 022 043 0291 Mobile: 022 043 1355 0800 54 33 54

Fonterra Farm Source >>> October 2018 THERE’S A STORE NEAR YOU. CUSTOMER SERVICE TEAM 0800 731 266

Albany 09 415 9776 Hamilton 07 846 6069 Marton 06 327 7206 Pahiatua 06 376 0040 Te Aroha 07 884 9549 Ashburton 03 307 8006 Hawera 06 278 0124 Matamata 07 888 8149 Piopio 07 877 0100 Te Awamutu 07 871 4058 Balclutha 03 418 2190 Helensville 09 420 8140 Maungaturoto 09 431 1050 Pukekohe 09 237 1176 Temuka 03 615 0124 Cambridge 07 827 4622 Inglewood 06 756 0000 Methven 03 302 9056 Pungarehu 06 763 8806 Te Puke 07 573 0130 Carterton 06 379 7726 Invercargill 03 218 9067 Murchison 03 523 1040 Putaruru 07 883 8077 Tokoroa 07 886 7933 Culverden 03 315 3016 Kaikohe 09 4052 305 Morrinsville 07 889 7049 Rai Valley 03 571 6325 Waihi 07 863 7227 Dannevirke 06 374 4052 Kaitaia 09 408 6023 New Plymouth 06 759 0490 Rakaia 03 303 5000 Waimate 03 689 1230 Dargaville 09 439 3080 Kaponga 06 764 6281 Ngatea 07 867 0003 Rangiora 03 313 2555 Waipapa 09 407 1375 Edgecumbe 07 304 9871 Kopu 07 867 9056 Oamaru 03 433 1240 Reporoa 07 334 0004 Waitara 06 754 9100 Eltham 06 764 8169 Leeston 03 324 3645 Opotiki 07 315 1018 Rotorua 07 348 4132 Waiuku 09 236 5088 Featherston 06 308 9019 Levin 06 367 9100 Opunake 06 761 6011 Ruawai 09 439 2244 Waverley 06 346 7021 Feilding 06 323 9146 Longburn Otautau 03 225 8951 Shannon 06 362 9000 Wellsford 09 423 8837 (Palmerston North) 06 356 4607 Galatea 07 366 1100 Otorohanga 07 873 8039 Stratford 06 765 5348 Whangarei 09 430 0050 Manaia 06 274 8029 Gore 03 203 9334 Paeroa 07 862 7541 Taupiri 07 824 6748 Winton 03 236 6046 Taupo 07 378 1515 Wyndham 03 206 2010 FARM SOURCE TECHNICAL SALES REPRESENTATIVES

Mark Douglas TECHNICAL SALES MANAGER, 027 704 8429 Martin Weir Stratford, 027 675 0953 Shaun Ruddell Dargaville, Ruawai, 027 285 7088 Kathryn Milne Waverley/Hawera South, 027 540 4754 Kerrin Luond Wellsford, Helensville, 027 270 3981 Shaun Morresey Opunake/Manaia, 027 233 1348

Fleur Scelly Waipapa, Kaitaia, Kaikohe, 027 233 1683 TARANAKI Dean Kane Kaponga , 027 204 4395 Jamie Lang Whangarei, 027 285 7094 NORTHLAND Mark Douglas Whangarei South, Maungaturoto, 027 704 8429 Dwayne George TECHNICAL SALES MANAGER, 027 243 1121 Joanne Denton Dannevirke, 027 292 8096 Spencer Hickford TECHNICAL SALES MANAGER, 027 405 2654 Kyla Elwin Feilding, 027 807 0409 Gil Dallas Pukekohe, Waiuku, 027 240 6377 Jessica Morrison Featherston, Carterton, 027 208 2055 Jeff Hadwin Ngatea, 027 225 5523 Doug Workman Longburn, 027 617 1797 Bryce Bevin Kopu, Paeroa, 027 807 7265 Linda Hally Shannon, Levin, 027 236 4897 Sharne McLachlan Taupiri, 027 478 1421 Val Hollister Pahiatua, 027 221 7623 Ryan Jackson Te Aroha, 027 225 5524 CENTRAL DISTRICTS CENTRAL Ben Burgess Hawkes Bay, 027 540 4190 TBA Morrinsville, 027 704 5323 NORTH WAIKATO NORTH Tony Maas Marton, 027 801 9639 Bryn Sanson Morrinsville, 027 245 7000 Jamie Callahan TECHNICAL SALES MANAGER, 027 405 8184 Kirsty Skinner TECHNICAL SALES MANAGER, 027 839 4873 Logan Tasker Ashburton, 027 676 6524 Neil Dunderdale Otorohanga, 027 494 5433 Alice Cartwright Ashburton, 027 555 8976 Alan MacDougall Putaruru, 027 704 9664 Brad Quinlan Leeston, Rakaia, 027 687 9464 Scott Kirkham Tokoroa, 027 284 4704 Bronwyn Gilchrist Rakaia, Methven, 027 453 4358 Debbie Thomson Te Awamutu, 027 233 1675 Rodney Potts Rangiora, 027 363 6308 Jarno Sammet Te Awamutu, 027 492 2957 Max Munro Waimate, Temuka, 027 482 8076

Nick Anderson Hamilton, 027 607 5898 CANTERBURY

SOUTH WAIKATO SOUTH Diane Heinz Oamaru, 027 220 3790 Cam Neeld Cambridge/Matamata Neil Cooper Murchison, 027 889 3889 Warren Coulson Matamata, 027 458 7527 Mark Waldron Temuka, Waimate, 027 511 4886 Jen Kay Culverden, 027 807 5306 Quentin Brears TECHNICAL SALES MANAGER, 027 554 2229 Derek Gibson Edgecumbe, 027 483 4395 Matt Green TECHNICAL SALES MANAGER, 027 522 4388 Gav Brears Taupo, 027 226 8348 Shannon Topp Gore, 027 809 8368 Quentin Brears Te Puke, 027 554 2229 Korena McDermott Gore, 027 645 4451 Taryn Crotty Rotorua, Galatea, 027 839 2051 Lachie Craw Wyndham, 027 220 3771

BAY OF PLENTY OF BAY TBA Reporoa, 027 807 5330 Lindsay Youngman Otautau, 027 839 9432 Nicole Cosins Invercargill, 027 678 0661 Cliff Duggan TECHNICAL SALES MANAGER, 027 839 1598 Debbie Smith Invercargill, 027 485 8009 Neville Giddy New Plymouth, Waitara, 027 477 2641 Julia Wyatt Winton, 027 449 9393

Andrew Tulloch Inglewood, 027 224 5137 SOUTHLAND / OTAGO Codey Patterson Winton, 027 220 3806 Valma Kuriger Opunake/Pungarehu, 027 673 2306 Marinka Kingma Balclutha, 027 511 4880 TARANAKI David Sattler Eltham/Kaponga, 027 209 9375 Morgan Lindsay Balclutha, 027 435 3596 Corryn Soothill Hawera, 027 511 4871

LIVESTOCK AGENTS Livestock Administration Team 07 858 0611 [email protected] Livestock Agents Freephone 0800 548 339

Trevor Hancock NATIONAL LIVESTOCK MANAGER, Hamilton, 027 283 8389 LOWER NORTH ISLAND MANAGER, Brent Espin EXPORT MANAGER, SOUTH ISLAND LIVESTOCK Craig Thomas South Taranaki, 027 551 3660 MANAGER, 021 650 802 Sheldon Keech Coastal Taranaki, 027 222 7920 Colin Dent Central/North Taranaki, 027 646 8908 Eric Heta Whangarei South, Wellsford, Helensville, 027 233 1687 Jason King Central Taranaki, 027 684 2443 Kevin Brown Whangarei, Dargaville, 027 434 7561 Steve Quinnell Central Taranaki, 027 278 3837 Stephen Hiscock Waiuku, Tuakau, 027 453 8769 Warren Espin South Taranaki, 027 677 6361 Noel Baker Whangarei North, Kaitaia, Kerikeri, 027 588 7632 SOUTHERN LIVESTOCK MANAGER Hamish Manthel Matthew Hancock NORTHERN REGIONAL MANAGER, Morrinsville, 027 601 3787 ISLAND NORTH LOWER Manawatu, 027 432 0298 Kelly Higgins CENTRAL REGIONAL MANAGER, Cambridge, Tirau, 027 600 2374 Graeme Anderson (Bunter) Wairarapa / North Wairarapa, 027 444 1169 Stewart Cruickshank Te Aroha, Matamata, Thames Valley, 027 270 5288 Monty Monteith Hawkes Bay / Dannevirke, 027 807 0522 UPPER NORTH ISLAND NORTH UPPER Paul Nitschke Cambridge, Matamata, Raglan, 027 481 3160 Jack Kiernan Hamilton North & Huntly, 027 823 2373 Mark Esselink Oamaru, 027 550 9554 Brian Hodge Otorohanga, Te Kuiti, 027 244 0845 David Bishop South Canterbury, 027 614 8100 Mike Mckenzie Arohena, Pukeatua & South Waikato 027 674 1149 Tim White Mid Canterbury / North Canterbury, 027 405 3088 Pat Sheely Rotorua, Central Plateau, 027 496 0153 Lyall Grant South/Mid Canterbury , 027 229 2927

Ben Deroles Te Awamutu, 027 702 4196 ISLAND SOUTH Nick Cagney North Canterbury , 027 601 8685

Fonterra Farm Source >>> October 2018 30

UNDERSTANDING YOUR CO-OPERATIVE PROGRAMME

Understanding your Co-operative Programme REGISTRATION OF INTEREST FOR 2015 REGISTRATION OF INTEREST FOR 2018 The Fonterra Shareholders’ Council invites you to register your interest in attending the popular TheU Fonterranderst andShareholders’ing You Councilr Co- opeinvitesra youtive to P registerrogramm youre interest. The inp attendingrogramm thee popularis you Understandingr opportuni tYoury to Co-Operative get a de tailed Programme.underst andThe programmeing of Fon ist eyourrra opportunityCo-opera titov gete G ar detailedoup and understanding the interna ofti Fonterraonal da Co-operativeiry industr yGroup. Du randing the the international programm dairye industry.you Duringwill hea ther programmefrom, and you be will ab hearle from,to in andter abec table wi ttoh ,interact mem bewith,rs membersof Fon tofe rrFonterra’sa’s Manage Managementment TTeam,eam Board, Boa ofr d of DirectorsDirec andtors Council. and Council. Participation in the programme is highly sought after, so register your interest below by selecting from the programme dates listed the one youP wisharti ctoipa attend.tion in the programme is highly sought after, so register your interest below by selecting from the Thep Programmerogramm etakes dat placees lis inted Auckland the one over y outwo w daysish andto a providesttend. the opportunity to: • Understand Fonterra’s unique governance / representation / management structure; • The PFindrog outramm howe Fonterratakes p GlobalTrade,lace in Au ckFonterraland oIngredients,ver two da Fonterrays and Group prov Manufacturingides the oppo andrtun Farmity Sourceto: all fit together; • Understand Fonterra’s unique governance / representation / management structure; • Discover more about Fonterra Brands and try some of our latest award winning products. • Find out more about Fonterra’s operations throughout its grass to glass supply chain; The Fonterra Shareholders’ Council brings you this programme as part of our commitment to help develop a knowledgeable farmer base. • Discover more about Fonterra Brands and try some of our latest award winning products. By providing objective and relevant learning opportunities to shareholders and suppliers, it is expected that Fonterra farmers will be able to participate more fully in our co-operative. The Fonterra Shareholders’ Council brings you this programme as part of our commitment to help develop a Attendeesknowl edgeabare requiredle ftoar makemer baa contributionse. By pr ovof $id200.00ing ob (incljec tiGST)ve and per person relev antowardst lea rthening cost op ofp travelortun anditie saccommodation. to shareholde rs and Please be aware that you may be required to travel to Auckland the day prior to it commencing – which would mean staying 2 nights suppliers, it is expected that Fonterra farmers will be able to participate more fully in our Co-operative. this is dependent on travel locations. Day one starts at 9am and the programme concludes on day 2 at approx 3pm.

YOURAttendee DETAILSs are required to make a contribution of $200.00 (incl. GST) per person towards the cost of travel and accommodation. Surname Home phone

FirstY nameOUR DETAILS Mobile telephone

Address Email Surname Home Phone Supply no. Party no. First Name Mobile Telephone Ward no. Address FaxShareholder Sharemilker

Region EmOtherail Supply No. Party No. Ward No. Please indicate below if you wish to register: Region Shareholder Sharemilker 6 & 7 Dec Other Please return to: Jo Griffiths, Fonterra Shareholders’ Council, Private Bag 92032, Auckland 1142

[email protected]; ph 09 374 9495 or 021 861 726 Please indicate below which programme you would like to attend in 2015:

7 & 8 May 16 & 17 July 3 & 4 December A FEW COMMENTS FROM PAST PARTICIPANTS: • PWonderfullease re 2t udays.rn tIo am: J proudo Sim ofp ourson company, Fonte andrra Sstaff.ha rWeeho arelde Fonterra.rs’ Council, Private Bag 92032, Auckland 1142 • An excellent couple of days. How can we get more staff, sharemilkers and shareholders to attend?

• If more of the Shareholder base understood and had access to this information, I think there would be better engagement. Page 1 • Very good programme. I have come away with a much better understanding. This programme should be compulsory for Supplier Shareholders at attend

• Very informative 2 days. Going away feeling positive about what people are doing within Fonterra. • Whole programme extremely good. Learnt so many new things, and met new people, and hear their passion, about what they were doing. Head office and Brands highlights.

Fonterra Farm Source >>> October 2018 UPDATE YOUR DETAILS THIS SEASON Please take five minutes to update us with your new details for the season ahead.

 To make it easier for you, there are a number of ways to update your details, including a new online form.

EMAIL FREEPHONE FREEPOST Fill in your details and email a Contact us on Send your details to scanned copy back to us at 0800 731 266 and we Moving Farms Freepost [email protected] will update your details PO BOX 9045 Hamilton, 3240

STEP 1. YOUR CURRENT DETAILS STEP 3. MAIN CONTACT FOR YOUR STORE ACCOUNT

Supply no.: Title (please circle) Mr / Mrs / Miss / Ms

Full name: Entity name:

Phone: Contact name: Mobile:

Physical address: Email:

Date of birth: D D M M Y Y Y Y

Phone: STEP 4. FARM SOURCE REWARDS DISCOUNTS

As part of Farm Source Rewards, you can enjoy the convenience Mobile: of running your utilities such as power, phone, internet, fuel and more through your account at heavily discounted prices – Email: all while earning Farm Source Rewards Dollars. □ I’d like to find out more about how I can save more by running my utilities through my new account. STEP 2. YOUR NEW DETAILS □ I’m already running my utilities through my account and would like to discuss transferring these through to my new account. Supply no.:

Signed: Entity name:

Date: D D M M Y Y Y Y Contact name: Name: Physical address: (if different from above) Changing your sharemilker or contract milker next season? We’ve launched a new online form to make it faster and easier for you to add, change or remove a milking arrangement. The new forms are available on the Farm Source website at nzfarmsource.co.nz/milkingarrangements Phone:

Mobile:  Email:

Update your details online You can now update your People, Party and Bank account details online. Go to NZFARMSOURCE.CO.NZ/PARTYDETAILS Fonterra Farm Source >>> September 2018 Spring into summer – pre-season training to get farm-fit

Out on the farm there’s day, you can put into practice the farm right now, with courses ready always something that next. On a dairy farm, someone can on things like milk quality, livestock start a livestock feeding qualification husbandry and livestock feeding. needs to be done; well, lots now and by the new year, when “For us, we’re clear that our of things really. And in conditions are drying up, they’ll have customer is the business owner. So spring, it can feel that some of the skills needed around the we’re focused on understanding the you’ve got your hands full soil and pasture, and the knowledge farm business, becoming trusted Maximise profits to mitigate some of the risks just getting though calving, advisors, and then delivering the seasonal weather patterns bring.” milking, looking after the learning plans that will help farmers through quality pasture, etc etc etc without Likewise, with a livestock husbandry meet their goals.” course, the entire lifecycle of stock always having enough is covered, so whether it’s learning Primary ITO’s new specialised time to reflect and plan for about weaning or the treatments network of around 30 dairy training milking processes advisors through New Zealand what’s next. stock need to maintain peak health, employees will learn things follows feedback from the industry But training is one thing that can’t immediately relevant through spring that a strong sector focus was be neglected. If you want your and summer. needed. people to have the right skills to do the jobs that need doing through Gordon says with a new structure “We’re confident we’ll be delivering the summer and into autumn, the for facilitating dairy training, Primary better and more expert support for dairy farmers. Working with them Milk Quality - Stage 1 time is now to talk to a training ITO’s specialist dairy training advisors are focused on personalised service. as business owners is a long-term Your employees will understand what’s required to maintain cleanliness and hygiene to advisor and figure out what are your commitment. ensure quality milk output. They’ll learn about cleaning processes, plant and equipment requirements. “We start by developing an maintenance and undertake risk analysis while developing solutions. Primary ITO understanding of the farm goals, “Sitting down and discussing whether that’s wanting more time business goals means we can help Qualification: Certificate in On-farm Milk Quality (Stage 1) national group dairy manager off, needing a farm assistant to step with the training decisions that will Duration: 6 months (2 x workshops + 1-hour assessment 3 months later) Gordon Findlay up to be a manager, or needing make the farm more profitable and to increase grazing management says in a few more efficient.” capability to harvest more grass. Milk Quality - Stage 2 months, To discuss your training needs on This is your employees’ step into supervising. They’ll be able to develop operating summer will mean time invested now “Once we understand those the farm, contact Primary ITO on in people learning about pasture procedures to maintain milk quality and supervise milk harvesting to optimise milk objectives, we can build individual 0800 20 80 20. management will have been well- quality, efficiency and yield. learner plans that feed into those spent. farm goals.” Qualification: Certificate in On-farm Milk Quality (Farm Dairy Supervisor) “The great thing about industry Gordon says that extends to Duration: 4 months (1 x workshop + 1-hour assessment 3 months later) training is that what you learn one knowing what’s important on the

0800 20 80 20 I www.primaryito.ac.nz Spring into summer – pre-season training to get farm-fit

Out on the farm there’s day, you can put into practice the farm right now, with courses ready always something that next. On a dairy farm, someone can on things like milk quality, livestock start a livestock feeding qualification husbandry and livestock feeding. needs to be done; well, lots now and by the new year, when “For us, we’re clear that our of things really. And in conditions are drying up, they’ll have customer is the business owner. So spring, it can feel that some of the skills needed around the we’re focused on understanding the you’ve got your hands full soil and pasture, and the knowledge farm business, becoming trusted Maximise profits to mitigate some of the risks just getting though calving, advisors, and then delivering the seasonal weather patterns bring.” milking, looking after the learning plans that will help farmers through quality pasture, etc etc etc without Likewise, with a livestock husbandry meet their goals.” course, the entire lifecycle of stock always having enough is covered, so whether it’s learning Primary ITO’s new specialised time to reflect and plan for about weaning or the treatments network of around 30 dairy training milking processes advisors through New Zealand what’s next. stock need to maintain peak health, employees will learn things follows feedback from the industry But training is one thing that can’t immediately relevant through spring that a strong sector focus was be neglected. If you want your and summer. needed. people to have the right skills to do the jobs that need doing through Gordon says with a new structure “We’re confident we’ll be delivering the summer and into autumn, the for facilitating dairy training, Primary better and more expert support for dairy farmers. Working with them Milk Quality - Stage 1 time is now to talk to a training ITO’s specialist dairy training advisors are focused on personalised service. as business owners is a long-term Your employees will understand what’s required to maintain cleanliness and hygiene to advisor and figure out what are your commitment. ensure quality milk output. They’ll learn about cleaning processes, plant and equipment requirements. “We start by developing an maintenance and undertake risk analysis while developing solutions. Primary ITO understanding of the farm goals, “Sitting down and discussing whether that’s wanting more time business goals means we can help Qualification: Certificate in On-farm Milk Quality (Stage 1) national group dairy manager off, needing a farm assistant to step with the training decisions that will Duration: 6 months (2 x workshops + 1-hour assessment 3 months later) Gordon Findlay up to be a manager, or needing make the farm more profitable and to increase grazing management says in a few more efficient.” capability to harvest more grass. Milk Quality - Stage 2 months, To discuss your training needs on This is your employees’ step into supervising. They’ll be able to develop operating summer will mean time invested now “Once we understand those the farm, contact Primary ITO on in people learning about pasture procedures to maintain milk quality and supervise milk harvesting to optimise milk objectives, we can build individual 0800 20 80 20. management will have been well- quality, efficiency and yield. learner plans that feed into those spent. farm goals.” Qualification: Certificate in On-farm Milk Quality (Farm Dairy Supervisor) “The great thing about industry Gordon says that extends to Duration: 4 months (1 x workshop + 1-hour assessment 3 months later) training is that what you learn one knowing what’s important on the

0800 20 80 20 I www.primaryito.ac.nz Back cover