Sunrise Dairy was set up with an investment partner in Malaysia he’s known for some time after missing out on a tender for a farm promoted by the Malaysian government.
“We were shortlisted down to two,” says Jennings, who used to dairy farm out of Karamea but is now based in Auckland.
As a result of that bid alternative options came to the fore. A provincial government from the Negeri Sembilan region, two hours south of Kuala Lumpur had land covered in shrubby bush which it was happy for the group involving Agrobank Malaysia and other local funders to lease at a peppercorn rental.
“So, the land is secure and funding in place.”
It’s hoped the first 5000-6000-cow dairy will be producing milk within the next two years on 160 hectares. The leguminous shrub which covers most of the land and grows to two to three metres in height will be mulched into the soil. Then the cows’ cut and carry diet will come from Hycross, a mix of elephant grass and American millet, which has a protein level of around 18-19 per cent and can produce over 400 tonnes/ha/year. The abundant local supply of palm kernel will also be utilised but only as a small percentage of feed offered. Algae will be grown as another feed source, a byproduct of the cow’s manure collection which will also produce methane to be added to 10 per cent LPG. That will cool recycled water to spray on the animals as well as cooling their milk.
New Zealand genetics will be to the fore with LIC’s slick gene, producing short-haired stock with a greater tolerance to high temperatures, being used over Friesian and Friesian- Jersey cross cows. The group is working with a large scale south Waikato dairy farmer to supply the stock required with plans to fly 120 heifers to Malaysia every three months, a 10-hour journey, and build up numbers from there.
Jennings says while Malaysia is important for New Zealand milk powder exports the new venture won’t impact on this country’s share, as the market’s dominated by Australia.
“And the Malaysian government is aggressively supporting milk drinking in older and younger people,” he says.
With the country only being 20 per cent self-sufficient in fresh milk he says there’s a big scope to fill future demand and there are plans to work with supermarkets to expand the range of dairy products they’re now offering.
Jennings believes the New Zealand dairy industry should have got involved in dairy markets such as Canada and Korea despite them having been closed to this country’s imports.
“Sooner or later they would open up and we would have had a presence on the ground,” he says.
“It could have been producing and expanding those markets for New Zealand farmers as an alternative source of income. The industry missed out by being a bit introspective.”
He’s also critical of the cooperative structure of the dairy industry.
“I’m a little but jaundiced about co-ops being involved in marketing,” he says.
Combined strength was required by farmers concerned about their milk being collected. But the culture and attitude of cooperatives could be defensive and protective in a competitive marketplace. He believes a perfect industry model for the NZ dairy industry is one which is cooperatively owned but is able to tender out the milk produced by its members to different processors.
