A group of Fonterra farmers gained invaluable insights to how American dairy producers operate, and how their own ingredients business fits into the global dairy picture after another successful study tour overseas.
From visiting large-scale farming operations to seeing first-hand how customer relationships shape the demand for New Zealand dairy, the trip offered a rare chance to connect the dots between on-farm practices and the international markets they serve.
The tour began in Chicago, with the group visiting Mars’ Snacking global headquarters and Research and Development hub, where the confectionery giant creates, tests and refines new recipes before pushing them through to production across its manufacturing sites. As well as getting a deeper understanding of the Co-op's strategic partnership with Mars, the group also heard from agritech companies during the visit. They learned about a range of novel technologies for methane reduction, including feed additives, a vaccine, and a cannula insertion wearable device. It proved a valuable visit, creating connections with Mars and offering a wider perspective on the dairy industry.
Another highlight was visiting Fonterra’s Chicago office and hearing from the local team about the Americas’ business and the opportunities in that market for the ingredients market.
Waikato farmers John and Anne Poole said they enjoyed meeting up with the Fonterra team.
“We were really impressed with the people there,” John says. “It’s really encouraging to know that Fonterra’s got such good young people involved in the business.”
Hitting the Midwest
A big part of the study tour included visiting farms through the American Midwest and the World Dairy Expo in Madison, Wisconsin. More than 50,000 people from all over the world visited the expo, which featured massive farm machinery, a large trade exhibition hall and more than 2,500 cows from across the US and Canada on show.
Among the farming operations the group visited was Fair Oaks Farm in Indiana, which featured an impressive 18,500 cows across multiple dairy sheds, and a range of parallel, rotary and robotic milking parlours.
Farm founder Mike McCloskey talked about visiting New Zealand and loving the farming systems he saw. The group learned he bought a rotary shed from New Zealand in 1999 - and it had been going non-stop ever since. The farm’s milkings were seven hours long with a one-hour wash afterwards – and they milked three times a day.
The group visited a range of other dairy farms, from a smaller 200-cow, robotic milking farm to a larger 3,000-cow manually laboured milking farm.
All cows were housed in barns, and farms grew most of their own feed with a majority of the cows’ diet being corn (maize) silage, alfalfa (lucerne) silage, grass silage, soybean meal, grain and a mineral concentrate.
“They were definitely amazing stockmen, the [farmers] we spoke with,” John says. “They were just so focused on getting as much feed into those animals as they possibly could. They put so much into it; they were amazing cows.”
The US farmers talked about the ins and outs of housing cows in barns and keeping them cool in summer and warm in the winter, something New Zealand farmers don’t usually need to worry about in the temperate local climate.
But it still gave the tour group some fresh perspectives, John says.
“I think it does anyone good to get off their own farm and have a look at how others farm. We loved meeting the American people and the American farmers and spending time and sharing their stories,” he says.
Insights into dairy industry challenges
Part of the group chose to extend their study tour with a few days on the East Coast – this included a visit to Cornell University’s Dairy Center of Excellence, where the group learned about the Cornell Net Carbohydrate and Protein System (CNCPS). The model is used to evaluate the nutrient requirements of cattle, based on their physiological states, diet composition and environmental factors. The visit also included a look at the centre’s pilot processing plant, teaching facilities and research farm.
Farm Source tour host Olivia Thomson says the packed itinerary gave farmers a lot to chew on.
“The farm visits showed our farmers the benefits of diversifying their business and using other income streams. The opportunity to reduce wastage within their dairy systems was also of big interest,” Olivia says.
“The group could also see that a lot of the US dairy industry challenges were similar to New Zealand’s, such as labour availability, climatic events and increasing costs.”
The tour wasn’t all business though. There was time for a bit of sightseeing along the way, with a special Fonterra shout-out during a Chicago Cubs game, a tour of Washington DC’s famous monuments, and a Broadway show in New York.
“The tour really was the perfect mix of innovation, sustainability and connection with the wider dairy industry, as well as ticking off some bucket list items.”
Tours designed for Co-op farmers
Designed by Fonterra and Farm and Leisure Tours, these study tours are exclusive to Fonterra farmers, helping them connect with the Co-op’s strategy and see how their milk turns up on the global stage.
Those who choose to go on these trips pay their own way, with Farm and Leisure Tours managing the travel arrangements with attendees directly. The tour package includes all-inclusive flights, accommodation, some meals, dedicated local guides and New Zealand-based guides, farm and technical visits, along with amazing cultural sightseeing opportunities.
Register your interest in future Fonterra International Study Tours, including the two upcoming trips to China – contact enquiries@farmandleisuretours.nz.