Dairy News Australia – October 2020

Dairy plan released:

PG. 5

OCTOBER, 2020 ISSUE 120

Disease changing farmers’ lives: PG. 22

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DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 3

International Dairy Week cancelled INTERNATIONAL DAIRY Week has been

No punches pulled at inquiry. PG 4

Dung beetle trial on a roll. PG. 12

Milk production climbing. PG. 14

NEWS ����������������������������������������������������� 3 – 31 OPINION �������������������������������������������������������� 6 MARKETS ���������������������������������������������������� 15 ANIMAL HEALTH �������������������������� 32 – 35 MACHINERY ������������������������������������36 – 39

cancelled due to coronavirus restrictions.

The organising committee announced they had made the “hard call” to cancel the event, which was due to take place in Tatura from January 17 to 21 next year, on September 26.

IDW director Brian Leslie said it became clear it would be “impossible” to run next year’s event, due to uncertainty around the re-opening of borders and restrictions in Victoria.

“Unfortunately, with the current situation, we just could not meet all the restrictions required,” he said.

“I hope that we're out of all these restrictions by the time January comes around . . . But to run the event we need to start and we just can’t plan it and put it together in the current situation.

“It’s disappointing that we’ve had to make this decision. But unfortunately, our hands are tied.”

Despite being forced to cancel the event, which draws thousands from across the country, Mr Leslie said the committee remained committed to running the event in 2022. “(We are) certainly committed to running the event in 2022. And we certainly look forward to seeing you all there,” he said.

“When I started the event (in) 1990 with Daryl Brown, my business partner at the time, we never dreamed that it would go on for this long. It was going to be every three years.”

“We’ve had tremendous, tremendous shows. We’ve had record-breaking sales.

We've had wonderful seminars, we've had tremendous speakers.

“The networking of people from around the world for the Australian dairy industry has been second to none. And without you, we couldn't have done it.”

This year’s event at Tatura Park saw 800 cows and 175 exhibitors compete across three days.

Greater Shepparton City Council estimated the 2019 event injected $2.2 million into the local economy.

IDW director Brian Leslie.

International Dairy Week 2021 has been cancelled.

DAIRY NEWS AUSTRALIA OCTOBER 2020

4 // NEWS

No punches pulled at inquiry DANEKA HILL

DAIRY POLITICS flared up in a big way at the

latest Senate hearing into the performance of the dairy industry.

The hearing was held e ntirely via telecommunication and heard from 52 Victorian farmers and industry workers.

Overwhelmingly farmers expressed disappointment in their advocacy bodies, a mistrust in Dairy Australia, Australian Dairy Farmers and the Australian Dairy Plan, and a desire for change.

“We believe this Senate inquiry has the opportunity to delve deeply into the dairy industry structure and uncover its shortcomings, its failures, and its conflicts of interest,” Farmer Power chief executive Garry Kerr said.

Farmer Power is a grassroots advocacy group voluntarily led by farmers.

Farmer Power believes established advocacy bodies have too many conflictions of interest and allow dairy processors too much influence over decisions.

“It is clear to most that the processors cannot be on an advocacy representing dairy farmers, yet this is just one of the things currently being proposed under the new Australian Dairy Plan,” Mr Kerr said.

The new dairy plan — known as NewCo B — had few friends among the 52 who spoke before the inquiry.

One rare friend was United Dairyfarmers of Victoria president Paul Mumford.

Mr Mumford believed involving processors more was a good thing, and proposed they contribute to the dairy levy which all dairy

farmers must pay to the Dairy Australia to support its existence as the industry’s leader.

“If we are trying to create a unified industry, the processors should add value in some form.

Currently, they have the use of some of the services of DA,” Mr Mumford said, arguing since processors benefited from DA activities, they should also pay up.

Mr Mumford and UDV manager Ashlee Hamond said their organisation did not support a minimum farm gate milk price because it would hurt milk exports, shrink the Victorian milk pool and there was no way to make the price fair.

“We are all different in how we produce milk,” Mr Mumford said, himself a south Gippsland farmer of 430 milking Jersey cows “We can’t standardise two dairy farms sideby-side, because of all the nuances within their own business.”

UDV members have voiced concerns about the UDV’s views on the Australian Dairy Plan, leading to weeks of membership consultation across the state.

Three DFV founders gave information at the hearing — Winslow farmer Bernie Free was one of them.

He shunned the UDV for their “quiet voice throughout” the two-day dairy plan workshop.

Mr Free said all state advocacy bodies - except for the Queensland Dairyfarmers Organisation had been “deafening in their silence”.

Fellow DFV founder Bruce Knowles, a Tyrendarra farmer, said of the industry’s current problems: “it’s political”.

“The unaccountable governance and structures within the Australian dairy industry are letting dairy farmers and their communities down,” Mr Knowles said.

Mistrust in processor involvement and anger towards the advocacy groups which have steered the dairy industry over the past two decades was a recurring theme at the senate hearing.

“[The ADP] is a facade and the grassroots levypaying dairy farmers are just being strung along.”

Two new dairy plans have been developed to rival the ADP’s NewCo B — the Wannon solution (created by the DFV) and the John Dahlsen farmer representative model (created by solicitor John Dahlsen).

United Workers Union food and beverage director Susan Allison spoke on behalf of processor workers at the inquiry hearing.

She said workers supported a minimum farm gate milk price, and the union had made this clear to the ADP only to get radio silence.

“I’m deeply concerned that the views of workers and the grassroots voices of farmers, who are key to the industry, are being ignored,” Ms Allison said.

Branxholme farmer Allan Campbell supported the Wannon solution, which his

farm-consultant daughter Sarah Campbell helped develop.

“Some whe re through this process, the concerns of grassroots dairy farmer representation and advocacy has been derailed and represented in a form to propose a dairy industry model involving processors and Dairy Australia,” Mr Campbell said.

He said last financial year he paid $4700 in membership fees to the UDV, and all he got for it was a “spineless response” when the UDV supported the “processor and DA-controlled” NewCo B plan.

The inquiry into the performance of Australia’s dairy industry and the profitability of Australian dairy farmers since deregulation in 2000 has been hearing evidence since December 2019, and is expected to hand down a report in February 2021.

FONTERRA MILK COLLECTION FALLS Fonterra Australia has recorded a drop of 12 per cent in milk collection, according to the 2019-20 financial results of its New Zealand counterpart.

The drop in milk collection to 107.8 million kg of milk solids was caused by a combination of drought, high on-farm input costs and a highly competitive milk supply market.

Sales volumes for Australian Ingredients, the ingredients channel within Fonterra Australia, also declined by 18 per cent, due to the drop in milk collection.

It wasn’t all bad news, with the ingredients channel’s gross profit increasing from $10 million to $31 million due to reduced costs as a result of closing the Dennington site, better utilisation of the

Stanhope site and allocating more milk to higher returning cheddar and mozzarella products rather than the lower returning liquid and whole milk powder products.

The Stanhope site was also leading the way in the company’s attempts to reduce water use by 30 per cent.

“This year we reduced water use at our sites, in water constrained regions,

by 6.4 per cent, which is a 3.1 per cent reduction against our 2018 baseline and a significant step towards our 30 per cent reduction target by 2030,” the report said.

“Our Stanhope site delivered most of the improvement, installing new treatment infrastructure which has significantly reduced the water it uses.”

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 5

Plan sets ambitious targets THE AUSTRALIAN Dairy Plan has

set the ambitious targets of boosting Australia’s annual milk production by almost one billion litres, adding $500 million of farm gate value and creating thousands of jobs by 2025.

Released on September 28, the plan has highlighted increased profitability, confidence and unity during the next five years as the key elements of its strategy.

Australian Dairy Plan chair and former Victorian Premier John Brumby said the “quite conservative” modelling was about paving the way ahead.

“The truth is, in dairy there’s not enough reward for effort,” Mr Brumby said.

“The dairy industry has really turned a corner thanks to seasonal conditions, the cash rate, farm gate prices have picked up, farmers are producing more.

“Farmers are doing much better; this is about trying to lock that in over the next five years.”

Mr Brumby acknowledged more needed to be done to grow trust between farmers and processors, an issue Australian Dairy Products Federation president Grant Crothers said was a “key commitment”.

He said the focus needed to be on increasing transparency around farm gate milk prices and the value of milk with the introduction of a new Milk Value Portal.

Implementation of the plan will target greater than 50 per cent of farms achieving profit of at least $1.50 EBIT/ kg MS, have more than three-quarters of farmers and processors confident about the future, and have more than 75 per cent of farmers and processors positive about industry unity by 2025.

Reform of industry structures is one of five key commitments for change identified during an extensive nationwide consultation involving more than 1500 industry participants.

The Australian Dairy Plan was developed in consultation with a number of dairy bodies — Australian Dairy

Farmers, Australian Dairy Products Federation, Dairy Australia and Gardiner Foundation.

Farmers heavily criticised industry advocacy bodies in a series of workshops held to discuss the dairy plan last year, and also argued that bodies like Dairy Australia should be doing more to lobby for farmers.

Dairy Australia board director and northern Victorian dairy farmer Jeff Odgers said the plan would help deliver increased business and risk management skills.

“Our target is for all dairy farm businesses to have a documented long-term plan and for at least 75 per cent of dairy farms to be using risk management tools and products within five years,” Mr Odgers said.

The plan sets out the need for further consultation and an industry vote as being essential for successful reform.

Reports will be generated every six months about how the industry is tracking against the plan’s goals.

More work needed STATE DAIRY advocacy bodies have

welcomed the release of the Australian Dairy Plan, saying it can help pave the way for a strong industry.

But Queensland Dairyfarmers’ Organisation is seeking more information about organisational reform to the industry.

Released late last month, the Australian Dairy Plan outlines a fiveyear pathway for the dairy industry, setting targets to increase milk production, profitability and employment opportunities.

NSW Farmers Dairy Committee chair Colin Thompson said the success of the plan would depend on industry working together to implement and adopt the plan.

“After some years of uncertainty, low farm gate prices and drought for dairy farmers in NSW, it’s pleasing to see initiatives to increase profitability

and confidence in the industry,” Mr Thompson said.

“The plan has a strong focus on providing farmers with the services and tools to achieve consistent profitability in an increasingly challenging operating environment.”

The Australian Dairy Plan is the first time industry bodies from across the country have come together to map a way forward.

In a social media post, United Dairyfarmers of Victoria said it was pleased to see a stronger focus on profitability in the final plan.

“The dairy plan is a significant milestone for the industry and we look forward to seeing the plan hit the ground and drive positive outcomes for the Australian dairy industry.”

Queensland Dairyfarmers’ Organisation president Brian Tessmann welcomed the extensive consultation carried out during the plan’s creation,

but said the plan offered “nothing significantly new”.

“What was and continues to frustrate grassroots dairy farmers and organisations such as ours who are intent on change, is the lack of clarity and commitment on timing around the dairy reform process.

“We were informed that the ADP release would not contain details of restructuring. The explanation provided was that the dairy reform process is so important and so complex, that it needs its own separate set of committees and timelines which can still not be disclosed beyond the top line dates provided months ago.

“Without the strong foundation of undisputed leadership and undisputed authority, none of the other commitments can be enacted successfully because the overarching question of whose responsibility remains unknown.”

MILK PRODUCTION UP National milk production is set to increase this season, as favourable weather, lower input costs and a relatively firm farmgate milk prices support some of the best dairy farming conditions of recent years, according to Dairy Australia’s October Situation and Outlook.

This will be the first annual increase in national milk production in three years — with Tasmania, Gippsland and South Australia leading the charge.

Increased milk supply in most regions is also supporting “cautious optimism” for improved farm profitability.

The report highlights significant changes in consumer purchasing habits resulting from COVID-19.

“Two very different stories are emerging for the current season,” said Dairy Australia senior industry analyst Sofia Omstedt.

“One tells the tale of consistently improving conditions at the farmgate and a positive flow-on impact on milk production. The other reflects depressed global economic growth, disrupted dairy demand and significant shifts in consumer purchasing habits from COVID-19.

“From a farmgate perspective several things are going well, as input costs ease, confidence rebounds, and milk production continues to grow. Whilst the story is far from finished, this year could finally provide the industry a much needed breathing window and farmers the time to build up equity again.

“Dairy demand within Australia has been affected by COVID-19, as consumer habits and purchasing behaviour have changed. With more people staying home than ever before, cooking and baking at home has experienced a renaissance and dairy products used in these recipes are the ones that have grown the fastest since the start of the pandemic.

“It’s likely some of these new habits will become permanent lifestyle changes. If realised, the industry’s ability to capitalise on new growth trends will be key to ensure strong ongoing demand for Australian dairy, as we settle into a new normal.”

While foodservice and route channel sales have declined due to reduced hospitality sector activity and travel, retail dairy sales have been fuelled by increased levels of home cooking and baking.

Supermarket sales of butter have surged 18.2 per cent, cheese by 6.4 per cent and plain Greek yoghurt by 7 per cent in volume in the past 12 months, with larger value packs preferred over single serve items.

By contrast route channel sales of flavoured milks in convenience and petrol stores fell 19 per cent.

In the northern hemisphere, supply growth has picked up as incentives curbing milk production have been phased out.

Milk supply in the US and New Zealand has exceeded expectations according to the report, with global production growth likely to weigh on commodity pricing unless resurgent demand can soak up additional milk.

The Situation and Outlook report also contains a study on the divergence of farmgate milk pricing around milkfat content and highlights the launch of the Dairy Australia Trade Agreement Comparison Guide 2020 with information on current trade agreements for dairy’s top 10 export markets.

For more information visit: dairyaustralia.com.au

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DAIRY NEWS AUSTRALIA OCTOBER 2020

6 // OPINION

EDITORIAL

Industry needs trust and unity The new Australian Dairy Plan has set out an ambitious plan for the future of the industry.

Dairy Australia board nominations finalised

After 18 months of consultation and planning, the five-year plan has revealed the goal of boosting production by almost a billion litres, adding $500 million in farm gate value and growing confidence in the industry.

On paper, it sounds like a positive way forward.

But it’s the implementation that counts.

Collectively led by Dairy Australia, Australian Dairy Farmers, Australian Dairy Products Federation and Gardiner Dairy Foundation, the plan hasn’t been welcomed by all.

And it’s going to be a big task to unite everyone across the country, especially when no dairy farm, let alone dairy region, is the same.

The challenge under the one-size-fits-all plan is to bring together all sectors of the industry — farmers, processors, research and development scientists and marketing people, when occasionally the interests of these parties have been different.

It’s an exercise in trust and unity.

Dairy Australia has finalised its board nominations; six candidates will vie for three positions at November’s AGM.

Dairy businessman David Beca, south-west dairy farmer Carlie Barry and Bega Valley dairy farmer Phil Ryan will be on the ballot for a spot on Dairy Australia’s board, which will be voted on at this year’s annual general meeting.

Nominations closed at the end of last month and six candidates will by vying for the three board director vacancies, which are due to the expiry of the terms of the three serving directors.

The available positions are two milk producer directors and one director of agribusiness, innovation and change management.

Half were nominated by the board itself and are looking for re-election, while the other three were supported by at least 100 farmer levy payers.

The full list of candidates are: ■ Tania Luckin, who will stand for the milk producer director vacancy against Carlie Barry.

■ Paul Roderick, who will stand for the milk producer director vacancy against Phil Ryan.

■ Roseanne Healy, who will stand for the agribusiness, innovation and change managementdirector position against David Beca.

To be successfully elected into the three vacant director roles, each candidate will requiremore than 50 per cent of the votes cast at the AGM to be held online on November 27.

All levy payers are encouraged to register as members of Dairy Australia in order to vote.

To register, visit: dairyaustralia.com.au/ members or call 1800 004 377.

The deadline for registrations is October 23.

Advertising Max Hyde 0408 558 938 max.hyde@dairynewsaustralia.com.au Editor Alana Christensen (03) 5820 3237 editor@dairynewsaustralia.com.au Dairy News Australia is published by Shepparton Newspapers Pty Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.

Regional editor news@dairynewsaustralia.com.au

The aims of increasing trust, transparency and boosting confidence are noble ones, but goals that will undoubtedly run into memories of clawbacks and low farm gate prices.

How do you repair years of anger and distrust?

The hope is that centralised advocacy and representation can hit the cultural ‘reset’ button.

Feedback to the dairy plan’s draft plan uncovered a belief that the fragmentation of advocacy had led to poor outcomes in achieving policy changes.

The irony is that many farmers have opted out of membership of advocacy bodies, resulting in fewer resources for those organisations and as a result, delivering less impact on political leaders.

Can that issue be solved by the dairy plan?

Having one body to drive this plan forward will take cool heads, dedication and an ability to compromise and see the big picture.

It will be about the the greatest good for the greatest number.

At the end of the day, the challenge is to convert the aspirations for high performance, efficiency and flexibility into a reality.

Publisher Shepparton Newspapers Pty Ltd Printed by Newsprinters Pty Ltd Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address P O Box 204 Shepparton, Victoria 3632 Australia

WWW.DAIRYNEWSAUSTRALIA.COM.AU

Dairy News Australia welcomes contributions from stakeholders in the dairy industry, and particularly from organisations wishing to advance the industry.

Contributions and photos can be sent to: editor@dairynewsaustralia.com.au Letters to the editor on topical issues are also welcome.

Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication.

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 7

Fonterra sells China farms FONTERRA HAS agreed to sell its China farms

New directors have been proposed for Bega Cheese at the annual general meeting coming up on October 27.

A director for more than 30 years, Richard Parbery will be stepping down from the board at the AGM. Director Terry O’Brien, a former managing director of Simplot Australia, is offering himself for another term on the board.

A former director, Peter Margin, will seek to re-join the board. He formerly served from 2011 to 2019 and currently serves on the boards of Costa Group Holdings and Nufarm, and is chairman of Asahi Holdings.

He was also a non-executive director of Ricegrowers Ltd. The company earlier reported a before tax profit of $103 million on revenue of $1.5 billion for the last financial year.

A long time director of Bega Cheese, Richard Parbery will be stepping down at this month’s AGM.

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Inner Mongolia Natural Dairy Co, a subsidiary of China Youran Dairy Group Limited, has agreed to purchase Fonterra's two farming-hubs in Ying and Yutian for NZ$513 million.

Fonterra has also agreed to sell its 85 per cent interest in its Hangu farm to Beijing Sanyuan Venture Capital Co for $42 million.

Sanyuan has a 15 per cent minority shareholding in the farm and exercised their right of first refusal to purchase Fonterra's interest.

Fonterra chief executive officer Miles Hurrell said in building the farms, Fonterra has demonstrated its commitment to the development of the Chinese dairy industry.

"We don't shy away from the fact that establishing farms from scratch in China has been challenging, but our team has successfully developed productive model farms, supplying high quality fresh milk to the local consumer market," he said.

"It's now time to pass the baton to Youran and Sanyuan to continue the development of these farms."

Mr Hurrell said the sale of the farms will allow the co-op to prioritise the areas of its business where it has competitive advantages.

"For the last 18 months, we have been reviewing every part of the business to ensure our assets and investments meet the needs of the co-op today," he said.

"Selling the farms is in line with our decision to focus on our New Zealand farmers' milk."

China currently receives about one quarter of Fonterra's productions.

Completion of the sale, which is subject to anti-trust clearance and other regulatory approvals in China, is expected to occur within this financial year.

The transaction value is subject to customary purchase price adjustments, and exchange rate movements.

Any gains or losses on the sale would be normalised upon completion of the sale.

Fonterra expects to use the cash proceeds from the two transactions to pay down debt, as part of its previously announced overall debt reduction programme.

CHANGES ON BEGA BOARD

DAIRY NEWS AUSTRALIA OCTOBER 2020

8 // NEWS

Mixed feelings about royal commission RODNEY WOODS

DAIRY ADVOCACY groups Farmer Power

and Dairy Connect have called for a royal commission into the industry, while the United Dairyfarmers of Victoria and northern Victorian dairy farmers are not so sure.

In a recent Senate inquiry into the dairy industry, Farmer Power chief executive officer Garry Kerr called for the royal commission as a way to resolve the structural issues and lack of accountability he said affected all dairy farmers.

In June, Dairy Connect chief executive Shaughn Morgan said while the industry had been regularly inspected and analysed, there had never been a broad-ranging inquiry with powers appropriate to a critical analysis of the entire supply chain.

“There have been a number of stakeholder and parliamentary committees looking into the Australian dairy industry over many years, with

many of their reports now gathering dust on the shelves of parliamentary libraries and MPs’ offices,” Mr Morgan said.

“A royal commission would overcome the lack of will in all governments in implementing appropriate reform in an industry where market failure has been occurring since deregulation 20 years ago.”

Mr Kerr said a royal commission should look at all aspects of the industry, including dairy groups and the influence supermarkets and processors wield.

“We believe it’s vital that this independent review with the appropriate powers to be able to delve deeply into whether levies paid by dairy farmers are necessary and if the Federal Government and the public are receiving value for their investments,” he said.

“Farmer Power believes that conflicts of interest, lack of accountability and lack of financial transparency are enough to call for a royal commission to ascertain the true impact

on dairy farmers of self-serving relationships in the industry.”

UDV president Paul Mumford said if a royal commission was to be held, new information would have to be revealed.

“There have been 10 inquiries in the last 10 years for many reasons and there are further inquiries, which will shed light, such as the ACCC’s inquiry into fresh food supply (the perishable agricultural goods inquiry),” Mr Mumford said.

“We have ample evidence of what we need to fix from historical inquiries.

“The question is, if we have a royal commission what additional information will it highlight that Farmer Power chief executive officer Garry Kerr has joined the calls for a royal commission into we don’t already know and at what cost?” the dairy industry.

Cohuna dairy farmer John Keely and Murrabit dairy farmer Andrew Leahy both agreed a royal “That’s going to give us direction to help us commission would be a waste of taxpayers’ go forward.” money.

Mr Leahy also questioned what a royal “We’ve currently got the dairy plan commission would achieve, saying a lot of the (Australian Dairy Plan) being developed,” Mr information needed to improve the industry was Keely said. already available

A2 Milk Company lifts profits RODNEY WOODS

NEW ZEALAND dairy business The A2 Milk

Company has recorded a net profit after tax of $385.8 million and increased total revenue by 32 per cent during the 2019-20 financial year.

Net profit increased by 34.1 per cent and total revenue now sits at $1.73 billion, a figure that is expected to increase again in 2020-21 to between $1.8 billion and $1.9 billion.

“In September, we have started to observe emerging additional disruption to the corporate daigou/reseller channel, particularly due to the stage four lockdown in Victoria,” a company statement said.

A daigou is someone who buys goods in a country like Australia and sends them to Chinese customers.

“As a result of all these issues, we are now witnessing a contraction in the daigou channel beyond our previous expectations and without the replenishment orders that would typically be anticipated at this point,” the statement said.

“This disruption in the daigou channel is impacting our September sales and it is currently anticipated that this will continue for the remainder of the first half of the 2020-21 financial year.

“Sales in the daigou channel represent a significant proportion of infant formula sales in our Australia and New Zealand business and, assuch, we now expect the Australia and New Zealand business revenue to be materially below plan for the first half.

“However, based on the continuing strong growth in our underlying China infant milk formula brand health metrics and the

performance of the rest of our business, we believe this to be a single channel logistics issue, as we are continuing to see strong underlying consumer demand for our brand in China.

“We are of the view that this short-term impact to the daigou channel will prove to be temporary, assuming stabilisation of COVID-19 related issues in Australia.”

Despite the impacts to the daigou channel, The A2 Milk Company reported performance in all other areas of the business was strong, including the liquid milk businesses in Australia and the United States.

“Importantly, our local China business is performing strongly, notably in mother and baby stores, which we anticipate will continue,” the statement said.

Despite COVID-19 resulting in disruptions and changing consumer behaviour, the company

The A2 Milk Company is expecting its revenue to increase again in 2020-21 after it grew by 32 per cent in 2019-20.

estimates it had a modest positive impact on the revenue and earnings before interest, taxes, depreciation and amortisation results for 2019-20.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

10 // NEWS

Producers more confident GOOD WINTER rain and expectations of a

good season are driving confidence in dairy farmers across the country.

Strong farm gate milk prices, combined with a major turnaround in seasonal conditions in many regions, was supporting confidence among producers.

In Victoria, sentiment in the key dairy areas remained upbeat, with 60 per cent expecting little change in agricultural economic ­conditions, while one-in-five were forecasting an improvement.

By region, sentiment had dipped in every part of the state except Gippsland, where dairy prices and excellent winter rain have combined to ­bolster optimism in an area that has experienced both drought and bushfires in recent times.

Rabobank southern Victoria regional ­manager Deborah Maskell-Davies said the season was well set up.

“Good milk prices and a great hay and silage season last year are positives for dairy farmers in west and south Gippsland, however after a wet winter, there is some concern about managing a wetter-than-expected spring over coming months,” she said.

Farmers in south-west Victoria reported the most pessimistic outlook for the season ahead.

Dairy farmers were positive about their income prospects with 32 per cent anticipating

a stronger financial result in the 2020-21 ­ nancial year. fi Ms Maskell-Davies said there was considerable infrastructure building under way to boost drought resilience and preparedness, with new dairy barn construction a noticeable trend.

Expansionary interests were most prevalent in the dairy sector, with 26 per cent of dairy farmers intending to increase investment in their business.

Of these, more than half had earmarked investment for additional property purchases.

“The Victorian rural property market is incredibly strong and many farmers are expressing interest in expanding their operations, particularly in terms of drought-proofing enterprises with property in reliable rainfall regions,” Ms Maskell-Davies said.

It was a similar story in NSW, with sentiment slightly down on last quarter but remaining strong due to robust prices and an expectation among 39 per cent of dairy farmers surveyed that economic conditions would improve over the coming year (compared with 59 per cent in the previous quarter) and 53 per cent expecting little change in conditions.

Investment was at front of mind for many of those producers, with 48 per cent looking to increase investment in their farm businesses over the coming year.

Winter rain, low input costs and a positive outlook ahead is leading to higher confidence in the dairy industry.

Dairy farmers in Tasmania are the most optimistic in the face of external pressures, with 44 per cent of those surveyed looking to an improved year ahead.

Rabobank’s Tasmanian manager Stuart Whatling said farmers across the state were generally very optimistic about the spring season ahead thanks to good winter rain, especially in June and August.

He said many farmers were reporting conditions “as green as they have seen” for at least

the past four or five years, with even producers along the east coast region reporting unseasonably warm and wet conditions throughout winter.

Meanwhile dairy sentiment was shown to be soaring, with the sector posting strong upswing in confidence this survey.

In total, 44 per cent of Tasmanian dairy farmers were expecting an improvement in business conditions over the coming year and a further 44 per cent expecting little change to current conditions.

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 11

Fresh push to cross border CALLS FOR a new not-for-profit New South

Wales-Queensland fresh milk association have been ignited by advocacy group Dairy Connect.

The organisation has floated the concept which would represent the entire value-chain including producers, processors, distributors, vendors and consumers.

The concept had its genesis when the Dairy Industry Conference briefed the NSW Government about the industry’s desire in NSW to create a new state peak dairy representative body in 2011.

Dairy Connect farmers’ group president Graham Forbes - a producer from Barrington NSW - said there were special synergies between the fresh milk industries in New South Wales and Queensland.

“A single not-for-profit value chain organisation representing fresh milk production in the two states would ensure consistency in advocacy with government, stakeholders and other interest groups,” he said.

“There remains a dairy production dichotomy between northern states and those in the south.

“This particularly relates to Queensland and New South Wales which share much in common, including markets and farming systems and which largely produce fresh milk compared with more commodity-focused production in the south.

“The Australian Dairy Plan, which is out for further consultation nationally now, provides a unique opportunity for NSW and Queensland to look at forming a structure which reflects the best interests of the industry as a whole.”

While the dairy plan had a number of points in its favour, there were clear differences between fresh milk production and dairy product

manufacturing across state borders according to Dairy Connect chief executive officer Shaughn Morgan.

“A New South Wales-Queensland fresh milk value-chain association would mean that pressing challenges could be addressed more effectively by those who have ‘skin in the game’,” he said.

“It is time that those dairy stakeholders who wish to be involved with an organisation specifically addressing the concerns of fresh milk producers act to establish a special platform and act urgently.

“Stakeholder organisations should reflect all parts of the industry as well as including research, development and extension to ensure consistency for dairy producers who need support in relation to fresh milk issues.”

Mr Morgan said there would be obstacles along the path, but nothing that could not be overcome.

“For instance, matters relating to the farmer levy can be discussed and a way forward developed to ensure RD&E that is specific to producers of fresh milk can be addressed,” he said.

“Dairy Connect is a unique value-chain organisation that has risen to be the premier advocacy group for the dairy industry on the eastern seaboard during the past four years.

“We recognise the importance of ensuring continuity and common practice between all players, ranging from the dairy producer, the processor through to the function of delivering fresh milk to retailers with consumers completing the chain.”

Discussions are expected to continue with state dairy organisations such as the NSW Farmers Association dairy committee and the Queensland Dairy Organisation.

FONTERRA BUYS DAIRY COUNTRY Fonterra Australia has set its sights on boosting its cheese production, purchasing Melbourne-based cheese business Dairy Country for $19.23 million.

Fonterra Australia managing director René Dedoncker said Fonterra had a long and successful history with Dairy Country.

“This acquisition is a logical choice and further supports our strategy to be customer and consumer led, while ensuring we keep pace with the fast-growing cheese category in Australia.

“Dairy Country has two well-equipped secondary processing sites with capability across grating, shredding and block, as well as an experienced workforce.

“For some time we have been looking to bring more of our secondary cheese processing in-house to gain greater endto-end control over a range of different cheese products and further strengthen our integrated supply chain.”

The acquisition, from food and

beverage company Retail Food Group, includes Dairy Country’s processing and packing facilities at Campbellfield and Tullamarine in Victoria, along with related services, intellectual property and the trademark for the Dairy Country brand.

“Having this kind of capability inhouse will enable efficiencies and allow us to make the most of opportunities for value creation and product innovation,” Mr Dedoncker said.

Fonterra currently holds a 23 per cent market share in the $2.6 billion Australian retail cheese category with key brands including Perfect Italiano, Mainland and Bega.

The majority of Dairy Country’s permanent employees will transfer over to Fonterra and will continue to work at the Campbellfield and Tullamarine facilities.

RFG executive chairman Peter George said Fonterra was a natural buyer for the business.

The sale is expected to be finalised

by October 2020.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

12 // NEWS

Dung beetle trial on a roll DANEKA HILL

A SOUTH Australian experiment is firing up after

10 Goulburn Valley farms opted into the project.

This is the first time the project – which measures the benefits of feeding biochar to livestock and introducing dung beetles – has been trialled outside SA’s Fleurieu Peninsula.

Stanhope dairy farmer Craig Emmett received his dung beetles on September 17 and will begin feeding out biochar in the near future.

“I’ve gotten a dung beetle called O. vacca which is a high-rainfall type and they’ll be going on the irrigation paddocks,” Mr Emmett said.

“The idea is to feed the cows the biochar and when it comes out in the manure the beetles bury all the nutrients into the soil.”

All 10 farms are receiving dung beetles while three are trialling biochar (a biomass and charcoal blend) as a feed supplement.

The dual use of biochar and dung beetles has been observed to improve pasture dry matter by 30 per cent, increase water retention and lift milk yields.

Goolwa beef farmer Melissa Rebbeck is the woman behind the project.

Since 2015, Ms Rebbeck has been involved with biochar and has facilitated several trials as the director of her company Climate and Agricultural Support.

In one trial a SA dairy farm recorded their average cow’s daily milk yield increased by 1.4 litres after introducing biochar.

“For that 250-cow farm that means a $70,000 increase in yearly profit,” Ms Rebbeck said.

She said for every $800/tonne of biochar used she had recorded a net user benefit of $5000.

“And that’s just measuring the milk yield increase not the improvement to pasture ­biomass, soil health and better feed conversation ratio, and similar.”

Currently all biochar for the project is being provided by Mara Seeds in NSW. The Goulburn Valley in northern Victoria was selected as the project’s breakout test site because of Katunga dairy farmer Paul Stammers, who heard Ms Rebbeck on ABC Radio.

Mr Stammers got in contact with Ms Rebbeck to say he’d purchased biochar to trial, ­drawing her interest to his farm and others in the region.

Since then Ms Rebbeck has partnered with Goulburn Broken Catchment Management Authority and Goulburn Murray Landcare to engage with local farmers.

“We’ve done the trials and technical reports over here (SA), and now we need to demonstrate it can work in other regions,” Ms Rebbeck said.

All Goulburn Valley farmers will keep their beetles in a specially designed nursery for the

next 12 months, blowing their 50- to 100-strong populations out to 3000 or 15,000 depending on the species.

The use of a nursery stage is a new method and is expected to streamline the establishment of the species.

The dung beetles are provided by land ­rehabilitation organisation Creation Care.

Creation Care owner Greg Dalton said the Goulburn Valley project had multiple “really exciting” features.

The two dung beetle species involved – B. ­bubalus and O. vacca – are new spring-active types and not yet established in any of Australia’s agricultural regions.

“Most introduced dung beetles in Australia are only active in summer or winter,” Mr Dalton said.

“But most pasture growth happens in spring.

It creates what we call the spring gap.”

It is hoped the beetles will adapt to Goulburn Valley soils and work with other species in the area to create a year-round workforce, burying nutritional and carbon-rich manure up to 40cm into the ground.

Added benefits include reducing fly numbers and the fire fuel load.

“Soil carbon is the most important thing for Australian soils,” Mr Dalton said.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 13

Pressure for truthful labels DAIRY AND meat producers will be protected

from the competition of plant-based products with accurate labelling.

A meeting with industry representatives to discuss accurate labelling of plantbased ­products was recently held by Federal Agriculture Minister David Littleproud.

Members of the plant-based, meat, dairy, egg, manufacturing and retail sectors attended the meeting.

Mr Littleproud said truthful food labelling was a Federal Government priority.

“I want all of our agricultural industries to grow and succeed and for this to happen we need a fair playing field on food labelling,” Mr Littleproud said.

“I am sympathetic to concerns from producers of genuine meat and dairy products who are forced to contend with highly creative, and sometimes misleading, advertising and labelling of plant-based foods and drinks.

“Seeking more truthful labelling and protecting the reputation of genuine meat and dairy products is not an attack on fake meat and milk.

“On the contrary, I am confident the massive demand for protein presents huge opportunities for all food producers, and I remain committed to giving our growers greater opportunities to be part of the globally thriving plant-based industry.”

Mr Littleproud said plant-based industries provide crucial jobs to many Australians living in rural communities, both on-farm and through the food manufacturing supply chain.

He said the meeting was a chance to bring industry participants together to work towards a common approach for improving the clarity of product labelling for consumers.

“More accurate and truthful labelling of plant-based products will prevent consumers from being misled and protect against the misuse of the meat and dairy sectors’ reputations,” he said.

“There is a place for both plant-based and genuine meat and dairy products in Australia’s agriculture system, but we need to set the divide so that one is not unfairly trading on the reputation of the other.”

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Girgarre's Neil Maudsley thinks Australians lack the resilience to fill farm roles.

JOBS ARE HERE BUT NO WORKERS RODNEY WOODS A Girgarre dairy farmer wants to know where the unemployed Australians looking for work are, after a group of unions called for the scrapping of the Holiday Maker Program to prioritise unemployed Australians over backpackers.

The Australian Workers’ Union, the Shop, Distributive and Allied Employees’ Association and the Transport Workers’ Union said ending the program would stamp out widespread worker exploitation and provide more jobs for young people in regional Australia.

But Neil Maudsley has not been able to fill a position on his farm for two months and has had to rely on backpackers who remained in the country during the COVID-19 pandemic.

“We are prepared to teach anyone the skills but we have got to have someone who will at least turn up,” he said.

“I think we’ve become a group of people that lack resilience.

“I’ve been farming for over 40 years and jobs that Australians would do, like general farm work and milking, are now

being taken up by backpackers.

“We use a lot of automation now, so the work is easier than it once was.”

Mr Maudsley said there were plenty of jobs available but the local workforce was just not there.

“We need those unions to tell us the people who are looking for a job and we are happy to give them one,” he said.

“I could name half a dozen agricultural businesses who can’t find people to apply for jobs.”

While he has the capacity to provide work year-round, Mr Maudsley still finds it difficult to recruit locals.

“The backpackers are wanting to be here for 88 days at a time, which is not ideal as we like to train them up.

“I’d like to put on a local for as many years as they like, but they are just not available.”

Federal Agriculture Minister David Littleproud has put the onus on state governments to address farm labour shortages with overseas workers.

Mr Littleproud said while unemployment was high, many farm jobs were thousands of kilometres away from Australians out of work.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

14 // MARKETS

Milk production is climbing FOR THE first time in three years Australia’s

milk production will peak above nine million litres.

The jump is being driven by consistent rainfall across Australia’s dairy belts, boosting farms which have operated through seasons of dry conditions.

Agribusiness banking specialist Rabobank has forecast national milk production will expand by 2.8 per cent this spring, the best ‘spring flush’ since 2017-18.

Rabobank senior dairy analyst Michael Harvey said the 2020-21 spring flush followed nine months of steadily improving conditions.

“While national milk production for 2019-20 finished overall marginally down on the previous year at 8.775 million litres, it was a tale of two halves for the season,” Mr Harvey said.

“Production was negatively impacted by poor seasonal conditions in the first half of the 201920 season, but timely rainfall across key regions since summer has seen the milk pool begin to recover from December last year.”

Higher milk production alleviates overhead cost pressure on dairy processors and allows dairy exporters to explore growth opportunities – it also means farmers are earning more.

Exporters had been experiencing a 7.1 per cent decrease in volumes year-on-year due to drought.

Large falls were recorded in skim milk powder (down 29 per cent) and butter (down 44 per cent) in the 2019-20 period.

Liquid milk and fresh cheese exports, however, both grew four per cent.

The growth in national milk production is being led by Tasmania and Gippsland.

The region with the biggest milk production decline in recent years, the southern MurrayDarling Basin, was now “enjoying better water marketing conditions” according to the report.

Sales growth remains at moderate levels as panic buying recedes and foodservice (cafes, restaurants) demand continues to hover well below average.

“It will take time for foodservice demand (for dairy) to return to pre-COVID-19 levels, even for countries that have been well ahead of the curve,” the report noted.

Rabobank’s farm gate milk price forecast remains in line with its previous quarterly report which estimated $6.30/kg of milk solids for the 2020-21 season.

Rabobank senior dairy analyst Michael Harvey says timely rainfall across key dairy regions has seen the milk pool begin to recover.

DAIRY NEWS AUSTRALIA OCTOBER 2020

MARKETS // 15

Consumers form new habits SOFIA OMSTEDT

Share of domes c cheese sales

ACCORDING TO a much quoted rule, a new

habit is formed over 21 days while it takes 90 days to make a permanent lifestyle change.

Although the science behind this claim is difficult to substantiate, the consequences of new habits have probably never been quite as apparent as during 2020.

With people stuck at home more than ever before, consumers are fundamentally changing their behaviour, as well as the products they buy.

The latest Dairy Australia Situation and Outlook report, released on October 7, reveals how consumers’ new habits are impacting domestic dairy demand.

Through the roller-coaster that was the first wave of COVID-19 infections, dairy demand remained relatively resilient, in part demonstrating the industry’s ability to quickly adjust.

In many instances the supply chain was flexible and able to adapt, for example by shifting products destined for foodservice channels into the retail sector.

This helped to mitigate revenue loss when foodservice demand was virtually wiped out overnight.

Data from Dairy Australia’s domestic sales database shows that sales of cheese through grocery channels surged during the first three months of the pandemic, before reverting back to longer term averages.

The strength in demand also showed just how valued certain products are, as consumers were willing to change purchasing behaviours when pandemic-induced restrictions upset supply chains.

As people no longer travelled to work or school, sales of products usually purchased on-the-go, in convenience or petrol stores, decreased.

Flavoured milk was one example, with the volume sold through non-grocery (route trade) channels down 19 per cent in 2019-20.

Fortunately, many consumers turned to supermarkets for their flavoured milk fix.

This resulted in an increase in sales in grocery outlets, with Dairy Australia’s domestic sales database showing sales grew six per cent in 2019-20.

While consumers were quick to change purchasing habits, the increase in grocery sales did not manage to completely offset the loss from

70% 60% 50% 40% 30% 20% 10% 0% Jan-20

Feb-20

Mar-20 Grocery

non-grocery outlets. Nationally, flavoured milk sales ended three per cent down for the financial year.

While flavoured milk has been one example where a significant shift in consumer buying behaviours between channels largely protected sales, there have been winners and losers from the COVID-19 pandemic.

Not surprisingly, as consumers spend more time at home, restaurant revenue has fallen. While takeaway sales grew and food ordering apps have been a go-to for many, the home kitchen also received a solid workout. Cooking (and baking) has experienced a renaissance.

As consumers eat more meals at home, dairy products used in cooking (and baking) are the ones that have grown the fastest since the start of the pandemic.

Sales of butter, everyday-style cheese and plain yoghurt have grown strongly since the initial COVID-19 outbreak.

Demand for larger pack sizes of these products especially increased, as consumers appear to be stocking up fridges at home.

Before the pandemic, premium dairy products, usually sold in individual or small pack sizes, were a major growth driver for the industry.

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This included sales of single-serve yoghurts or single-serve cheese packs consumers grabbed on-the-go.

As people have settled into new habits, working from home and moving around less, convenience has taken a back seat.

A key focus instead seems to be buying products to be consumed at home.

It is encouraging that dairy is a key ingredient in many recipes since consumers are cooking and baking more than ever before.

This helps support domestic demand for dairy and shows growth opportunities available for the industry.

As the pandemic is cementing new consumer habits over many months, it is likely some of these new behaviours will become permanent lifestyle changes.

If realised, the industry’s ability to capitalise on new growth trends will be key to ensure strong ongoing demand for Australian dairy, as we settle into a new normal.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

16 // NEWS

Milk price tipped to fall THE AVERAGE farm gate milk price is

expected to drop nine per cent to 47.9¢/litre in 2020-21, according to an Australian Bureau of Agricultural and Resource Economics and Sciences report.

The dip comes after high 2019-20 pricing and remains 1¢/litre above the five-year average.

Globally, the COVID-19 pandemic continues to affect demand for dairy products, as Australia’s major dairy export markets restrict

imports and implement other measures to ­control the virus.

ABARES said the growth in global dairy ­p roduction would also continue to place ­downward pressure on global prices, which would flow through to the Australian farm gate milk price.

Increased Australian milk production in 202021 is forecast to ease some of the competition for milk supply between domestic processors.

The butter price continues to fall from a high of US$6111/tonne in 2017-18, and is forecast to average US$3746/tonne in 2020-21.

Prices of cheese (US$3850/tonne), whole milk powder (US$2867/tonne) and skim milk powder (US$2521/tonne) are expected to remain under pressure and continue to gradually fall.

However, the report said Australia’s cheese exports had not been affected by the volatility in the American market.

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Japan is Australia’s single-largest export market for cheese and is expected to continue purchasing about 6000 tonnes/month, accounting for 48 per cent of Australia’s cheese exports.

Subsequent waves of COVID-19 in Japan and related falls in GDP pose potential risks to future cheese demand, but demand for Australian cheese exports remains robust.

A more rapid than expected appreciation in the value of the Australian dollar has also added downward pressure to domestic farm gate prices.

This has reduced the likelihood of step-ups to the minimum price in 2020-21.

BRIGHT FUTURE FOR YOUNG FARMER South Australia’s Andrew Gray is set to take another step forward in his career, named as a winner in the 2020 AgriFutures Horizon Scholarship awards.

The University of New England student from Echunga was among 14 people who received the scholarship in recognition of leadership potential and commitment to the future of Australian agriculture.

Mr Gray said he relocated to Armidale in NSW in 2018 to study a double Bachelor of Agriculture and Bachelor of Business, and his ultimate goal was to own and operate a multi-enterprise agricultural business.

Through breeding and purchases, Mr Gray’s Long Gully Ayrshire stud now operates with cattle on farms primarily in the Adelaide Hills.

The young stock are run on his parents’ property, while Mr Gray’s milking cows are housed at dairies owned by friends and past employers.

Mr Gray said over the past two years as an AgriFutures Horizon scholar he had been growing his industry contacts and working with some of the best in the business.

“I’ve been fortunate to have had the opportunity to partake in twoweek work placement at Australianleading Moxey Farms, and further work placement with Saputo Dairy Australia at their Melbourne headquarters looking at the processor’s side of the dairy industry,” he said.

“It opened my eyes to the stresses that the drought had on the milk processors, as they experienced a 20-year low in milk supply.”

Cattle judging has also been a big part of Mr Gray’s experiences over the past two years.

In September 2019, Mr Gray won the South Australian Junior Dairy Judging Competition while attending the Royal Adelaide Show.

He then headed to Perth, representing SA in the ASA National Young Dairy Judges Championship, and was awarded the National Champion Young Dairy Judge.

Mr Gray will receive $10,000 over two years to further assist with his studies and living expenses, while gaining access to professional development workshops and work placements.

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 17

Breeding ‘green’ cows for the future AUSTRALIAN FARMERS are being advised to

breed healthy ‘green’ cows to meet community expectations and take a long-term outlook in their breeding program.

Genetics Australia chief executive officer Anthony Shelly said even with the advent of genomics, breeding was still a long-term process.

“The results of the sire selection decisions you make today don’t impact on your bottom line for another three to four years,” Mr Shelly said.

“If you make a directional change in your breeding and assuming a 20 per cent replacement rate, the transformation of your herd will be at least an eight-year project.

“So, when thinking about your breeding for this season, you need to think beyond the here and now.”

He said breeding healthy cows now and into the future was one area that won’t change.

“When thinking about the future, one thing is certain: the need to breed healthy cows that

meet broader community expectations will be the order of the day.”

Mr Shelly spoke at the recent GA 2020 online conference series about the need to breed ‘the green cow’.

“We need to be thinking about healthy cows that calve easily, are less susceptible to disease, produce less methane, are efficient users of feed, are more comfortable in hot weather and are born without horns,” he said.

“We have the ability to breed for most of these things now.”

Genetics Australia’s breeding program is designed to produce bulls that address many of the emerging issues directly related to farming social licence.

Mr Shelly said across the Genetics Australia sire line-up, farmers will find bulls that will enable them to start their journey towards ‘the green cow’.

“Genomics and the dominant inheritance of the polled gene have allowed us to increase

Daughters of bulls like this Singular daughter have an advantage over their herd mates for feed efficiency and heat tolerance.

the number of high-profit polled sires available today.”

Bulls such as the homozygous polled sires, CFP and NIPIT, are among the highest BPI sires that produce 100 per cent polled calves.

Columbus, Tirano and Samaria all carry the polled gene and 50 per cent of the progeny of these high profit sires will be born hornless.

Mr Shelly said the introduction of the mastitis resistance ABV by DataGene was a great step towards breeding healthier cows.

“By combining a number of traits with Somatic Cell Count, they have created an index that best addresses both clinical and sub-clinical mastitis at a genetic level,” he said.

Even farmers in the southern parts of the country can benefit from breeding cows with greater heat tolerance, according to Mr Shelly.

“We have all the tools and the bulls to help you breed healthy ‘green cows’ today.

“It’s time to start thinking about the future.”

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DAIRY NEWS AUSTRALIA OCTOBER 2020

18 // NEWS

Study proves OPD benefits RODNEY WOODS

OPERATOR PROTECTION devices, or roll

bars, on quad bikes may significantly reduce rider injuries or the likelihood of death when a quad bike rolls sideways in an accident, ­according to a new United States Government study.

The study, which was commissioned by the US Consumer Product Safety Commission, used various quad bike models and a test dummy to test the effectiveness of operator protection devices in rollover accidents at low or moderate speed.

Quad bikes are popular vehicles for work and play, and rollover incidents occur regularly, sometimes resulting in tragic consequences.

Since 2011, 149 people have died from quadbike-related accidents in Australia, 23 of whom have been children. In addition, it is estimated six people present to an emergency department each day as a result of quad-bike-related injuries.

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use quad bikes sold must have a test tag attached indicating the angle at which they will roll over.

From October 11, 2021, all quad bikes must have a roll bar fitted.

The report from the US includes the result of lateral rollover tests conducted on six different quad bike models fitted with ATV Lifeguard and Quadbar roll bars and compared them to tests without a roll bar at what the researchers termed low and moderate speeds.

The low speed tests were conducted in scenarios that in many ways mimic Australian conditions and typical quad bike use.

“The study used state-of-the-art testing equipment including test dummies with sophisticated electronic sensors, and is perhaps the most rigorous real-world test of OPDs yet conducted,” ACCC deputy chair Mick Keogh said.

“The results support the ACCC’s view that OPDs are likely to save lives.

“In low speed lateral rollover tests involving a quad bike with an OPD, significant impact between the quad bike and the crash test dummy was virtually eliminated.

“In contrast, in rollover tests of the same model quad bikes without an OPD, the test dummy was struck more than five times more often.”

Research indicates that in Australia, 80 per cent of quad bike accidents that have resulted in serious injury occurred at or below the low speeds tested.

Even at moderate speeds, the tests showed that an OPD resulted in fewer significant impacts between the quad bike and the test dummy.

Importantly, the test results also highlight that a vehicle’s design can affect how it reacts in a rollover.

“One of the quad bikes tested performed markedly different to others, rolling over faster and further, and striking the test dummy more than any other quad bike with and without an OPD,” Mr Keogh said.

“Poorer performing vehicles like this one will no longer be able to be sold in Australia once the stability requirements become mandatory.

“This study shows why the Australian Government’s safety standard is appropriate, and likely to reduce quad bike injuries and deaths.”

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DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 19

CopRice grows with Riverbank THE SUNRICE Group’s CopRice business has

finalised its acquisition of Riverbank Stockfeeds’ dairy and beef business, which will serve to complement its existing manufacturing facilities, including at Tongala.

The acquisition includes Riverbank’s feed mill at Leongatha and extensive dairy businesses across Gippsland and south-west Victoria, which will see CopRice continue the expansion of its Victorian dairy nutrition business.

CopRice general manager Peter McKinney said the acquisition was positive news for Tongala.

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cements CopRice’s position in terms of s­ upplying dairy feed into northern Victoria and beyond.

“We’ve been making dairy feed in the Tongala region since the late 1980s and we look forward to being able to bring that expertise into the Gippsland market.”

Mr McKinney said CopRice planned to immediately close the Leongatha plant in order to

“The acquisition of Riverbank will further expand our footprint — and now ensures that we have full coverage of all key dairy regions in Victoria,” he said.

“What it means is, it will bring more volume into Tongala to service requirement.

“From a Tongala point of view, it will be a welcome addition to the plant, and

commence an extensive upgrade project before re-opening in the first half of 2021.

“We will now make a significant investment to improve the quality and standard of the site, but in the interim we will utilise our extensive manufacturing capability in Cobden, Tongala and Coleambally to maintain supply of ­high-quality products to Riverbank customers,” he said.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

20 // MANAGEMENT

Tasmanian dairy farmer Brent Atkins has recently made a shift towards DNA testing.

DNA testing brings rewards ONE TASMANIAN dairy farmer says he’ll never

go back to only using subjective animal selection techniques after beginning DNA testing.

Brent Atkins, from Dairy Plains Tasmania, said for generations his family had used visual inspections and knowledge of bloodlines to make breeding and culling decisions.

“Each year we have 200 Friesian heifer calves but we only need to keep 80 to 100, so we sell between 100 to 120 calves,” he said.

“It always came down to the animals you felt looked the best and what you could remember about their parentage.

“We’ve been happy with those methods for a long time but I felt like because the technology is there now, and testing is so easy, we should take advantage of it.”

Mr Atkins and his family began using genetics company Neogen Igenity Aussie Select DNA test.

Neogen operates Australia’s longest running livestock genomics testing facility, which has been based at the University of Queensland since the 1980s, and has led the development of a range of DNA tests to assist cattle breeders take their genetic selection decisions to the next level.

Igenity Aussie Select has been specifically designed for the Australian dairy industry as a tool for improved herd management and driving genetic gain.

It provides Australian-based traits and indices such as BPI and is supported by DataGene to ensure accurate results for the Australian market.

Mr Atkins said receiving the test results for his heifer calves and bulls last season gave him a whole new appreciation for the value of genomic information.

“What really drove it home was when one of the heifers, which I would have definitely culled,

came back as one of the best performers in the mob,” he said.

“So that one test saved us from selling that heifer calf who will be one of the stars of the herd in a couple of years.”

Mr Atkins, who milks 450 cows and breeds sheep and beef cattle for the meat market, said the testing has helped him hone in on traits that were visually undetectable in young animals.

“We want to see the best possible production from each animal and you just can’t know that for sure without DNA testing,” he said.

“Our results clearly showed what animals had the best production potential so we could easily keep the top 45 to 50 per cent and sell the rest.

“The future return on the heifers we’ve kept will quickly cover the cost of testing.”

Mr Atkins is preparing to test 50 more twoweek-old calves in a fortnight, and said he would

continue to test his calves for the foreseeable future.

“The TSUs (tissue sampling units) are simple to use, the results are easy to read and we’ve already seen some great outcomes from testing, so I’m convinced this is the way to go.

“We have also tested a some of our bulls so we can better plan our natural joinings next year, so that’s another exciting advancement.”

Neogen’s Rodney Parker is the genomics territory manager for Victoria and Tasmania.

He said it was rewarding to see a producer find their testing results so beneficial.

“Brent’s story is a great example of how quickly a test like Igenity Aussie Select can make a huge impact on a business,” Mr Parker said.

“It’s clear that to make the best breeding and culling decision producers need as much information as possible, and our genetic tests put that information into their hands.”

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DAIRY NEWS AUSTRALIA OCTOBER 2020

22 // NEWS

Fatal disease hits farms JEANETTE SEVERS

AN UNCOMMON but fatal liver disease

affecting dairy cattle in Australia’s southern and south-eastern states is no longer confined to autumn, but has been found to be affecting herds throughout the year.

Acute bovine liver disease (ABLD) has periodically affected dairy cows in South Australia, Victoria, NSW and Tasmania – with up to 83 per cent of a herd affected in June on one dairy farm in south-west Victoria and more than 50 per cent of two herds affected in Gippsland, one herd in October, the other one in April.

Half of the animals died in the outbreak in south-west Victoria and the remainder showed significant production loss, along with health issues such as ongoing photosensitivity. Half the herd died on one of the affected Gippsland farms.

A dairy farm in central Gippsland was quarantined for an anthrax outbreak initially, but a postmortem diagnosis on one of the affected cows, by a local veterinarian, identified ABLD. Unfortunately, ABLD also has similar symptoms to other liver diseases, such as acute liver fluke and acute venocaval syndrome, and facial eczema.

Provisional misdiagnoses have included rye-grass staggers, plant or lead toxicity, hypomagneseamia, clostridial disease, pestivirus, anthrax, Johne’s disease, nitrate poisoning and blue-green algae toxicity, all of which have had to be excluded when cattle die suddenly.

This has led to a strong belief among authorities that farmers are not reporting small numbers of deaths, which means the extent of the problem is difficult to identify.

“Cases require samples taken from necropsy to diagnose. It’s expected that less severe cases may be occurring without being diagnosed,” Agriculture Victoria Maffra district veterinary officer Michael Roberts said.

Information from Gribbles Veterinary Pathology and Agriculture Victoria indicates biochemistry revealed elevated liver enzymes and lesions observed within the liver of affected cattle (acute periportal necrosis and haemorrhage) were considered most compatible with a diagnosis of ABLD, or another hepatotoxic agent (plant or mycotoxin).

Some instances of acute bovine liver disease (ABLD) could be going undetected.

ABLD is a reportable disease because state authorities are trying to collate as much information as possible, to build knowledge about it.

It is also a syndrome, according to some veterinarians.

“ABLD is a syndrome associated with significant liver damage in cattle of all ages and classes, in Victoria, Tasmania and parts of South Australia,” Dr Roberts said.

The re has bee n some progress on understanding what causes ABLD, with a toxin identified, but research is ongoing to identify if weather or other conditions, including pasture species, can identify if there is a short window of toxicity in pastures.

Weather conditions vary when ABLD occurs – it has affected cattle following a distinct weather pattern: a dry period, then sudden rain in a short period of ≥15 mm, then a dry warm period; however, it has also occurred when low rainfall has been followed by bitterly cold and frosty weather.

ABLD does appear to coincide with the introduction of cattle onto less fertile areas of the farm or into new paddocks with dry feed – including a grass known as rough dog’s tail (Cynosurus echinatus) when it contains a highly toxic fungus on the standing heads.

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For some farmers, feeding grain and fodder during a period of dry climate conditions also appears to be an implicating factor.

According to information provided by Biosecurity Tasmania and Agriculture Victoria, in cattle that don’t die suddenly, the most acute sign is photosensitisation, which occurs when plant breakdown products react with sunlight in the skin.

Affected cat tle may be distressed, agitated, seek shade and develop sunburn on the muzzle and areas of pale skin, udder and vulva.

Other ongoing signs include fever, reduced milk production and depression.

Some breeds of dairy cattle are at high risk to sunburn when they have large expanses of white hair in their coats.

If ABLD results in the death of cattle on-farm, the animals can be buried or disposed of according to state or territory requirements; affected, but still living, cattle can be sent to a knackery.

In the case of the central Gippsland dairy farm, the farmers recorded a meticulous amount of weather and paddock rotation data.

The forensic examination revealed the affected animals were all from the same paddock.

A portion of the herd went back into that paddock and were not affected.

However, on a third rotation, some of the same cows grazed that paddock within the same weather patterns and a second effect of ABLD was observed.

Unfortunately, by the time the implication of a toxin byproduct was made, it was no longer evident – if it had existed – on the pasture.

The standout defining sample from diagnosis among the cattle on this farm was the liver lesions.

The main clinical presentation was a number of the herd dying suddenly, with some bleeding.

In Tasmania, ABLD has been recorded in herds in the northern midlands and south, particularly the Derwent Valley and Copping areas.

In southern Victoria, ABLD has been diagnosed in herds in the south-western Warrnambool and Camperdown district, in the central and east Gippsland regions in the southeast and on some farms along the border region of Victoria and South Australia.

Herds in south-west Victoria and south-east SA were affected in autumn, whereas cattle in Gippsland have been affected in winter, spring and summer.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS  // 23

Disease is changing lives JEANETTE SEVERS

IT WAS a normal week in October on the cen-

tral Gippsland dairy farm. The herd had recently finished calving and the farmers had just started re-joining cows. “One cow died overnight suddenly,�

Mrs Farmer* said.

A week later, they noticed a group of cows in the herd were reluctant to be milked in the dairy. “The next morning, we had three dead cows in the paddock and could see some others were unwell,� Mrs Farmer said.

The dead cows showed blood outside the nose and anus. The local veterinarian came out to perform an autopsy, including biochemical analysis of lesions on the liver.

He recommended putting the remaining herd into a paddock with a lot of shade trees, with cows showing clinical signs of photosensitivity.

The local vet also reported the cattle deaths to Agriculture Victoria – the initial response was to treat the deaths as an anthrax exclusion incident and quarantine the farm.

People arrived in appropriate hazard and biosecurity clothing and initiated investigations.

It added to an already fraught and tense situation for the farmers involved. “Within 36 hours, 44 cows were dead and about half the herd was sick,� Mrs Farmer said.

Fortunately, the local vet was able to use the necropsy samples he took from one of the cows to quickly confirm acute bovine liver disease (ABLD).

Quarantine was lifted and then began the long process of looking after sick cows and investigating what had caused the toxic response. “We keep a very good record of weather, paddock condition and where the cattle are grazing every day,� Mrs Farmer said. “We narrowed it to one paddock with rough dog’s tail grass, that can contain a toxin. The pasture had run to seed and that may have been when it released the toxin.�

Identifying the paddock where the toxin probably was required more than weather and grazing records.

The milking herd was returned to that paddock a couple of months later, and cows were observed to be agitated. “We took the agitated cows out of the herd and the vet came out, and we started treating them with antihistamines,� Mrs Farmer said.

When a cow died suddenly on a Gippsland farm, the owners didn’t expect to discover the cause was acute bovine liver disease.

“This time we didn’t lose any cows.�

Production losses were heavy, with 44 cows dead, a significant number of the herd sick and a month’s worth of milk had to be dumped. In all, 120 cows were afflicted. “We had 24 cows that never recovered properly, we had to sell them as chopper cows,�

Mrs Farmer said. “We’d leave the cows in the paddock and if they wanted to come in to the dairy we’d milk them. Some cows lost their hide and others had scabby udders.�

She described the emotional and mental health challenges of dealing with a potential biosecurity issue, with quarantine signs outside their property, a team of people on farm and watching their cows in pain while waiting for a diagnosis and possible treatment to be identified.

“It was fairly traumatic. It’s very hard to listen to your cattle thrashing around and dying and not be able to do anything,� Mrs Farmer said. “My husband had to dig a big pit for the dead cattle to go into. That was a long and hard job.�

With the help and support of extended family, the couple decided they and the farm business had to get back to ‘normal’ as soon as possible.

Three years later, after living with the constant vigilance of a repeat experience with ABLD or another significant disease, they have decided to sell the farm.

Veterinarians spoken to by Dairy News Australia said a herd’s pattern of grazing could increase or decrease which cattle were affected by the toxin.

Depending on where in the pasture the toxin was active, cows early or late through the gate into a new paddock could eat enough

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of the affected pasture to have a severe toxic reaction.

With the outbreak on-farm being a significant disease investigation program, this means costs are covered and the farmer will not incur extra expense; costs include a subsidy for the involvement of a private veterinarian.

The initial and ongoing investigation includes the severely affected animals, the secondary milder affected animals, an epidemiological study of weather patterns and paddock movements of cows, identifying grass species on the farm and taking urine samples from the cows, which can all help identify what caused ABLD. Research is ongoing and aimed at building up a knowledge base for comparing future incidences. There are also post-graduate research programs under way at university level. *The farmers interviewed for this story requested anonymity.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

24 // NEWS

Aussie Jerseys attract global interest AUSTRALIAN JERSEYS have attracted strong

Rob Anderson’s children – Emily, Meg and Holly Anderson – from Gippsland, Victoria, recently sold heifer Kings Ville EMH Fernleaf 6-P who had strong international interest.

international interest in the first Gone Global Sale, with seven lots selling, including three to a major United States farm.

The successes include two embryo packages and a heifer sold to the Jer-Z-Boyz ranch in California.

Billed as an international Jersey phenomenon, the Gone Global Sale had lots from 11 countries and helped to replace on-farm sales cancelled due to COVID-19.

Jersey Australia general manager Glen Barrett said the Australian lots sold exceptionally well and the auction success followed high demand for Australian bulls in the US. “It’s a really positive story for Australian Jersey genetics and shows there’s demand around the globe,” Mr Barrett said.

“Three of the Australian lots were purchased by international interests and the other lots that sold domestically also sold well.”

The Australian genetics and heifers sold for between $1950 and $7300.

Heifer Kings Ville EMH Fernleaf 6-P was sold by Emily, Meg and Holly Anderson from Gippsland, Victoria.

Their father, Rob Anderson, said the price was good and the international interest was pleasing.

“We were very happy with the price of $7300 and excited that she was bought by Jer-Z-Boyz in California,” Mr Anderson said.

“It was a good event in these times.

“The concept of the sale and having 11 countries involved broadened everyone’s horizons and it shows there are great opportunities for the Australian Jersey breed.”

Kings Ville EMH Fernleaf 6-P will now go to an export facility to be flushed and her embryos will be sent to the US. Andrew Younger sold two lots of embryos from Nowell Man SANDY x Madill-P and Nowell Man SANDY x Bontino to Jer-Z-Boyz.

“Jer-Z-Boyz had wanted to buy the embryos out of my cow because the family has had a lot of influence in Australian AI and they were looking for an out-cross family without JX and to introduce some different bloodlines,” Mr Younger said.

“One package being polled and both being A2 probably helped.”

Mr Younger, from Bookar in south-west Victoria, said it was his first sale to an overseas buyer and he expected the success to open more international opportunities.

“I have Kiwi friends who went to the World Conference in the US a few years ago and they said Australia was in the box seat to provide genetics to the US,” he said.

“They said that if you go to a herd in the US you see a few good cows; in Australia you see whole groups of good cows.

“With the profile Jer-Z-Boyz have got, it may make other breeders look at Australian genetics.”

Gone Global was an online Jersey sale hosted by www.CattleClub.com. There were 80 lots sold.

The sale managers, Andrew and Jennifer Vander Meulen from Avonlea Genetics Inc in Canada, said the online idea came up when their 2020 on-farm sale had to be cancelled due to COVID-19.

Kings Ville EMH Fernleaf 6-P.

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Andrew Younger sold two lots of embryos from Nowell Man SANDY x Madill-P and Nowell Man SANDY x Bontino to Jer-Z-Boyz.

DAIRY NEWS AUSTRALIA OCTOBER 2020

MANAGEMENT // 25

New tool for pasture decisions TASMANIA INSTITUTE of Agriculture honours

student Samantha Flight has identified a new and potentially more profitable way for Tasmanian dairy farmers to manage their pastures.

A TIA dairy extension officer, Ms Flight undertook an honours project to find out if milk urea nitrogen (MUN) – based on the concentration of urea in milk – could be used by Tasmanian dairy farmers as a useful additional tool for helping to decide when and how much nitrogen fertiliser to apply to their pastures.

“The Tasmanian dairy industry is largely a pasture-based system, and this provides farmers with a competitive advantage as grazed pasture is relatively low-cost,” Ms Flight said.

“But to maintain this competitive advantage, farmers need to be feeding cows well and managing pastures well.

“Protein and energy are key nutritional elements in a milking cows’ diet and are essential to achieving milk production potential.

“The application of nitrogen fertiliser is used to drive pasture growth, however it is difficult to analyse the quality of pasture in a timely manner to check if the amount applied was correct.

“There is an opportunity to use MUN to determine the effectiveness of fertiliser usage on dairy farms.

“We can look at MUN to determine whether protein levels in pastures and resultingly the cow diet are too high or too low at various times

during the season and farmers can adjust their management decisions accordingly.

“For example, if protein in a cow’s diet is low then MUN is also expected to be low.”

Ms Flight said MUN was commonly used by farmers in the Northern Hemisphere as an indicator of the efficiency of protein in the diet of dairy cows but was not a tool that was currently utilised in Tasmania.

“Based on the findings of my honours project, it appears that if MUN results are received on a regular basis such as from bulk tank milk samples, it can provide farmers with a useful indication of when pastures are low in nitrogen or when nitrogen levels are too high and fertiliser is being wasted,” she said.

“This has real potential to provide productivity and profitability benefits and also environmental benefits through avoiding excess nitrogen negatively impacting the environment through leaching, run-off and N20 emissions.”

The project involved analysing 1204 herd tests conducted on 158 Tasmanian dairy farms over three years and surveys with 24 farmers looking at cow diet and fertiliser usage.

Ms Flight said she would like to see extension tools developed to facilitate the sharing of this information to Tasmanian dairy farmers, such as an easy-to-use decision making tree outlining thresholds of MUN and management at each of these levels.

Tasmanian Institute of Agriculture dairy extension officer Samantha Flight.

“It would be great if we could start using MUN as a management tool as already happens in the Northern Hemisphere.”

TIA is a joint venture between the University of Tasmania and the Tasmanian Government.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

26 // NEWS

Revamp for NSW dairy unit A REVAMPED NSW Department of Primary

Industries dairy unit will drive a greater focus on the dairy industry and capitalise on the appointment of a dairy advocate.

Recently appointed NSW DPI dairy leader Nicolas Lyons said the industry had been through challenging times due to the longrunning drought, bushfires and impacts of COVID-19. “(Dairy advocate) Ian (Zandstra) works closely with industry and provides government with expert advice on how to drive profitability and value across the dairy supply chain and is supported by the Industry Advisory Panel that was established last year,” Mr Lyons said.

“But there are also many opportunities for dairy farmers right now, and some innovative producers have already started to capture those opportunities through adapting their farming systems, installing technology and automation, or value-adding on-farm.”

The DPI dairy unit delivers research and industry development programs that develop and enhance dairy farmer business skills and knowledge, in order to support a profitable, resilient and sustainable NSW dairy industry.

NSW DPI has recently established the Dairy Business Advisory Unit and appointed Sheena Carter to lead the activities of this unit.

“Sheena brings strong skills and experience in dairy farm business management to the role,

WATER POLICY CHANGES WELCOMED

Increasing profitability and value across the dairy supply chain is a focus of NSW DPI’s new dairy unit.

having worked closely with dairy farmers across NSW for many years,” Mr Lyons said.

“Current activities of the unit include capturing annual physical and financial data on 35 farms as part of the NSW Dairy Farm Monitor Project, supporting farm business management forums and discussion groups and partnering with Dairy NSW to deliver one-on-one support to dairy farmers across NSW.” Mr Lyons said the industry was well positioned to prosper as a result of a vastly improved seasonal outlook, and the Dairy Business Advisory Unit was there to help people make the most of this opportunity.

“With the combination of Ian’s advice, the expert input from the panel, and the direct engagement and advice the dairy unit can offer, dairy farmers will have help on hand from high-level policy input to day-to-day business planning.”

Recent water policy changes are a step in the right direction according to Dairy Connect, which says reform of the Murray-Darling Basin Plan is a critical priority for dairy farmers and processors.

Federal Water Minister Keith Pitt recently announced no more buybacks would be undertaken to reach water recovery targets, and that the MurrayDarling Basin Authority would be relieved of its compliance duties.

An Inspector General of Water Compliance will be appointed to ensure transparency and independence.

The MDBA’s compliance office will be merged with the existing Interim Inspector General of Murray-Darling Basin Water Resources office, which is held by former Australian Police Commissioner Mick Keelty.

Dairy Connect chief executive officer Shaughn Morgan said dairy producers had welcomed the decision.

“We support the decision to restructure the Murray-Darling Basin Authority, with its compliance functions merged into the office of the Basin Independent InspectorGeneral, and welcome the commitment to end water buybacks,” he said.

Mr Morgan said splitting the MDBA’s roles would help restore community confidence by separating policy implementation from compliance with the basin plan’s rules.

He said the plan had failed to find the right triple bottom line balance, address unintended, unforeseen and perverse impacts affecting agriculture and the environment.

“This failure is no surprise to stakeholders who have studied the problems of the Murray-Darling Basin for decades,” he said.

“We trust Keith Pitt and his state counterparts have the desire and capacity to take the next steps to reform the basin plan in ways that benefits all stakeholders and fairly resolves conflicts.”

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DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 27

Global milk hub for schools PLANS TO create an online Global School Milk

Knowledge Hub has received the thumbs up from Dairy Connect.

An initiative from the International Dairy Federation, the hub would list nutritional knowledge about the role of fresh dairy milk for school students across the world.

Dairy Connect chief executive officer Shaughn Morgan said that the economic and social benefits of healthier children and young adults far outweighed the cost of free fresh school milk.

“Milk’s ingredients and nutrients differ from popular non-dairy options like almond, cashew or soy drinks,” he said.

“Not all non-dairy options have the same nutrients as those in milk.

“Milk also contains vitamin A to help maintain a healthy immune system, and calcium and vitamin D, that work together for bone strength.”

Mr Morgan said milk is considered the top food source for calcium, potassium and vitamin D, three of the four nutrients of public health concern that many Australians, including children, most lacked in their diets.

“More than 90 per cent of the population falls short of the recommended three daily servings of milk and milk products,” he said.

The interactive online hub would bring together important information on the role of milk and dairy products in healthy diets produced by sustainable food systems and the United Nations’ sustainable development goals.

The hub would provide case studies and data to assist those wishing to implement school milk programs in their countries and would be an invaluable source of information for those who wanted to learn more about school milk programs worldwide.

The IDF said the Global School Milk Knowledge Hub, would be launched early next year.

MDBA chiefs hear farmers’ concerns RODNEY WOODS

“ACTIONS SPEAK louder than words.”

That’s the message Blighty dairy farmer Lachlan Marshall wants to send to the MurrayDarling Basin Authority after he was visited by its chief executive Phil Glyde and new chair Sir Angus Houston on October 1.

“The main points out of the discussion were the impacts to the community socially, financially and economically and the failing of the plan to all three,” Mr Marshall said.

“We spent some time on the lack of trust under the previous chair and during Phil Glyde’s tenure, which has destroyed any faith we had.

“Sir Angus said he was trying to restore that trust, but we need them to put actions in place of where their words are to bring the community along with them.”

Despite going into the meeting with low expectations, Mr Marshall was appreciative they made the effort to visit the region.

“I didn’t have very high expectations due to how we’ve been treated in the past by the MDBA,” he said.

“I appreciate them coming to the area and to have an earnest and honest discussion with Sir

Angus and I did appreciate the chance to look Phil Glyde in the eye and tell him the pain and heartache he had caused and that every message he puts out saying the plan is working is a knife to the heart of communities.”

Mr Marshall said Sir Angus would return in the new year to discuss the issues in further detail and work with communities to find solutions as was directed by Federal Water Minister Keith Pitt.

Goulburn Murray-based MDBA regional engagement officer Joshua Kirby, Blighty dairy farmers Adam and Lachlan Marshall, MDBA chair Sir Angus Houston and MDBA chief executive Phil Glyde at the Marshall family dairy farm.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

28 // NEWS

Apiam expanding BENDIGO-BASED VETERINARIAN company

Apiam has recorded an after-tax profit of $4.2million, on an annual turnover of $118million.

Managing director Chris Richards said the company, which operates 46 clinics around Australia, experienced strong growth during the financial year, despite the many challenges faced by rural communities.

Apiam employs 150 veterinarians and a total of 600 employees.

Dr Richards said revenue in the dairy and companion animal segments performed strongly as industry conditions improved with higher rainfall.

The company has established an acquisition fund of $15million.

During the year Apiam launched its own in-house mental health strategy for employees, and has extended the program to some regional customers as well in the dairy, feedlot and pig industries.

“Vets are very passionate and caring about animals and passionate about their clients, and they often wear the troubles of their clients,” Dr Richards said.

“Vets spend a lot of time with people they know personally in the community as well as being their clients, and if those people are under stress the vets tend to take that on board themselves.

“Also, particularly in the farming side, it is a real issue in the whole of rural Australia, and all of those support industries get affected by what is happening with farmers.”

Apiam also has a charitable foundation and a large proportion of the fund went to Rural Aid last year.

Revenue in the dairy segment continues to grow according to Apiam managing director Chris Richards.

Building resilient farmers A NEW video series is shining a light on building

stronger rural communities and improve the wellbeing of calves.

Produced by MaxCare, the series — called Growing Stronger Every Day - covers a range of topics, including calf rearing.

In the latest episode, Sarah Bolton shares her thoughts on the future of calf rearing - discussing topics like calf rearing practices, animal welfare and the right to farm.

Dr Bolton said she had a passion for calves and dairy cattle, and had spent time managing a dairy farm.

“With rearing calves comes great responsibility and there are still a number of challenges that farmers face at either a farm, industry or even at a global level,” she said.

“We need to think about how we best meet these challenges.

“On farms we need to think about health and production ensuring we are rearing calves with low levels of disease, who exhibit great levels of health and grow up to be animals that fulfil their full potential.”

Dr Bolton is a qualified veterinarian, graduating from University of Melbourne in 2012.

She is currently participating in the university’s Dairy Residency program and recently completed a Nuffield scholarship looking at how bull calves are managed.

“Our farmers continue to face challenging conditions; as an industry and community we need to rally together to support our farmers

and help build stronger rural communities,” MaxCare business manager Tom Newton said.

“We are aware of the challenges and unpredictability of life on the land,” he said.

“Mental illness in the bush can be hard to detect, tough exteriors built by the harsh landscape we owe our livelihoods to, and the signature attitude of ‘she’ll be right’ can sometimes get us into strife.

“With this video series we want to help remove the stigma around mental health and help our farmers address the challenges.”

For more information about the Growing Stronger Every Day video series, visit: maxumanimal. com.au/growing-stronger-every-day

A new video series by MaxCare is taking a look at the future of calf rearing, among other topics.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 29

Former farmer helps community FORMER DAIRY farmer Suzie Jacobs is

passionate about helping the dairy community create a positive narrative for the future.

Living for the past 10 years in Ballendella, Mrs Jacobs wants to “plant the seeds of possibility” to enable the community in times of challenge.

“From challenges, comes opportunities,” she said.

“I want to share that mindset.

“I want to help the community build capacity and resilience to change; to seek alternatives which help keep the community alive and vibrant.”

Mrs Jacobs said Lockington, which is near Ballendella, was a “wonderful, proactive community” which had faced its share of adversity: drought, flood, low milk prices, diminishing number of family farms, and now COVID-19.

Mrs Jacobs has planted her own “seeds of possibility” by undertaking diplomas and a leadership program to increase her ability to do more for her community and the dairy industry.

Describing herself as a “natural introvert”, the mother of three is glad she stepped out of her comfort zone to participate in the 2020 Loddon Murray Community Leadership program.

“I applied for the program for personal growth, to become the best person for me and my community,” she said.

Sponsored by Gardiner Dairy Foundation, Mrs Jacobs has found the leadership program “life-changing”.

“As I drove away from the opening retreat in February, I said goodbye to my inner critic and welcomed my inner coach,” she said.

Mrs Jacobs said a common theme for effective leadership was the importance of selfreflection and appreciation of other people’s communication styles.

“I am a lot more self-aware,” she said.

“A lot of the presenters have spoken about leaders needing to know themselves.

“Now that I am starting to understand myself, I can work on leading my community through change.”

Mrs Jacobs, who is the East Loddon Food Share Program vice-president, has learned to understand and value her innate style of leadership.

“I see myself as a seed planter,” she said.

“I am not a person who leads from the front, I push from behind.”

While employed as Rural Aid community representative last year, Mrs Jacobs encouraged rural communities to apply for the Tens Town Makeover, a $100,000 grant for town development.

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“I promoted the grant in a lot of towns, but not everybody was interested,” Mrs Jacobs said.

“I went into a business community meeting in Lockington and told them about the grant, and they applied.”

To Mrs Jacobs’s delight, Lockington Business Group was among Australia’s 10 successful grant recipients.

“When Lockington received the grant, the business community was so thankful to me, and I said ‘I didn’t achieve this, you did all the work; you submitted the application, I just gave you the idea’.”

Prior to the Rural Aid role, Mrs Jacobs and her husband were three years into operating a dairy farm when the 2016 milk price crisis hit.

They made a business decision four years later to cease operation.

“Our business was in its infancy, so it was quite hard,” Mrs Jacobs said.

“I looked at it as we didn’t fail, but what could we do better?”

For Mrs Jacobs, doing better was advocating and supporting farmers through Rural Aid. Now she plans to support her community in more ways through the lessons learned in the 2020 Loddon Murray Community Leadership program.

Suzie Jacobs is helping the Lockington community by participating in the 2020 Loddon Murray Community Leadership program.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

30 // NEWS

Future-proofing the farm THERE WAS always something alluring about

the American dairy industry for Don Stewart.

As a child, he was keen to emulate the farm businesses that made up one of the largest milk producing nations in the world.

The United States’ industry size and scale was mesmerising.

Cows ate prepared rations, delivered to them from nearby paddocks.

Housed in barns, these animals were sheltered from all the elements — snow included.

Unlike the herds traipsing from the dairy to the paddocks in Australia, the US cows didn’t graze. Some rarely left the barn.

A world away at his family farm at Yarrawalla, north of Bendigo in Victoria, Mr Stewart would immerse himself in this foreign industry through the pages of Hoard’s Dairyman.

This famous US magazine provided glimpses of housed-cow dairying to farmers across the globe.

Flicking through these pages planted a seed — an idea that would go onto underpin the future direction of Stewart Family Farms.

Decades later, Mr Stewart and his wife Meg were at a crossroad.

Unsure if they wanted to continue in the industry, a business course provided them with the vital outside perspective they needed to develop a new business plan.

Their strategy included a minimum five-year commitment to dairy and a focus on making their Yarrawalla property “investor ready”.

Underpinning this open and flexible goal was the need to adapt their farm to the changing business and environmental climate to secure its future.

Fundamentally, they knew grazing their 800 cows at Yarrawalla was no longer a sustainable farming model.

They also understood that any capital investment needed to stack-up economically and add value and flexibility to their existing operation.

So, it was no surprise — following a trip through the NSW Riverina visiting dry-lot dairy farms in June 2019 — Mr Stewart was on Google Earth inspecting dairies in the US. In January this year, work started on the Stewarts’ 800-cow dry-lot.

The dry-lot includes a central feedpad with two Entegra shade sheds and maternity barn.

“Basically, we copied Arizona and Texas,” Mr Stewart said, adding he’s not a fan of “reinventing the wheel”.

Yarrawalla dairy farmer Don Stewart.

“We started off thinking we would build a compost barn.

“But the capital outlay for a compost barn is double or a little more than double compared to a dry-lot.

“If we were younger, we probably would have gone for the compost barn, but this has a lot quicker payback period.

“In five years, we are hoping to pay it off, it buys us a bit of time. If the kids are keen, they can build something a bit flasher.”

Diversity is key Stewart Family Farms comprises two dairying business milking a total of 1100 cows.

The ‘home farm’, at Mologa, is a 278 ha ­partial mixed ration registered Jersey ­operation, Jetz Jerseys.

Between this farm and the 800-cow dry-lot at Yarrawalla is 385 ha of dryland cropping land and a 64 ha irrigation block. This country — plus the bulk of the 240 ha at Yarrawalla — will supply fodder to the dairies.

Up until 14 months ago, Yarrawalla was ­operated by a sharefarmer who had worked with the Stewarts for six years.

“That farm, it has a state-of-the-art irrigation system,” Mr Stewart said.

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“It is set up unbelievably well for irrigating pastures and it has a great laneway system. But we just don’t think we can keep doing it that way, down the track. “(Irrigation water) prices, they come and go, and they will go up and down, but you can’t build a business model around the volatility of the water market and allocation. That’s why we committed to go with a feedlot.”

Industry feedlot trend Agriculture Victoria and Dairy Australia data shows a trend towards intensification of the dairy sector in recent years as farms move away from traditional grazing systems.

More than 80 dairy farmers have “actively engaged” with Agriculture Victoria, to move their businesses toward a total mixed ration (TMR) system and eliminate grazing. The department said most inquiries were in the past financial year.

This year’s National Dairy Farmer Survey, completed by Dairy Australia, suggested 60 per cent of Murray Dairy farms — those in northern Victoria and the NSW Riverina — fully fed their herd without grazing for some period of the year. Up to 51 per cent of farms did this for three months or longer.

About four per cent of the 1217 dairy farms in the Murray Dairy region operate a fully housed cow operation, according to Murray Dairy.

This industry trend has been reflected in a sharp spike in dairy shed construction, according to Entegra design consultant Greg McCalman.

Entegra built up to nine dairy barns in this region during the past year and in September there were 10 ‘live’ projects. A stark contrast to the two-to-three inquiries received in this region three years earlier.

Domestic focus Focused on supplying the domestic milk market, the Stewarts said their dry-lot was the ­perfect fit for the year-round, flat milk production favoured by their milk processor, Kyvalley Dairy Group.

The Stewarts’ dry-lot operation includes a concrete central feedpad with a 2 ha paddock either side.

In the middle of each paddock — on top of man-made hills — are Entegra shade sheds.

The sheds are both 120m long by 10.5m wide, have skillion roofs and run in a north-south direction.

“The key to the system is the 10.5m width and the fact it runs north-south,” Mr Stewart said.

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 31 “This means that every square inch has to see sunlight every day under that roof. It keeps it dry, but more importantly it kills bacteria.”

Protecting the herd from the heat was the main priority for the Stewarts.

With 400 cows in each 2 ha paddock, there’s plenty of room for them all in the shade, while sprinklers attached to the feedpad reduce the animals’ heat load.

Cows can loaf under the shade at any angle and this freedom of movement was one of the attractions to the system for the Stewarts.

They can also easily expand the sheds if required.

This summer will be the first test for their new system - the cows went into the dry-lot in June.

The Stewarts have calculated their payback period based on production gains thanks to cow comfort improvements, an increase in feed harvested and a reduction in feed waste.

Conservatively, they budgeted on a milk production increase of 1.5 litres/cow/day. They anticipate this would add at least $219,000 a year to their bottom line.

They are also confident the dry-lot system would help reach their feed conversion goal of 1.5 litres of milk for every kilogram of dry matter consumed by each cow - a feedlot dairy benchmark. Their average was 1.2 to 1.3 litres for every kilogram of DM across their entire farm last year.

Registered Holsteins, under the prefix of ifGroveland’s, are part of the predominantly black and white herd at Yarrawalla. Average annual production is 650 kg of milk solids a lactation/ cow - this is at least their bodyweight or more, according to Mr Stewart.

Maximising feed consumption and production will be paramount, while reducing wastage should also deliver cost savings.

“A large herd of cows, walking them in the paddock with grass, they waste a lot,” Mr Stewart said.

“The big winner will be what we can grow down the paddock. We will have the soil benefits like we have at the dryland cropping block.

“For example, I recently pulled some plants out of there and the soil was full of worms. You go to the dairy farm, where cows have been walking over it to graze - just across the road - and it is like concrete.

“The compaction caused by livestock grazing on our clay soils isn’t good for the soil structure.”

The Stewarts plan to grow and store up to two years’ worth of feed. This would keep them out of the fodder market for the bulk of their requirements during droughts, mitigating their exposure to high prices.

Fertility improvements have also been budgeted. Combined with the use of sexed semen, Mr Stewart hopes to have extra heifers placing selection pressure on the herd.

“If we have got 20 fresh cows in tomorrow, for example, then there’s 20 poor performers in our system that are going to get culled,” he said.

“That is really where the productivity gains come, identifying the non-performers and lifting the average production.”

Complementing the dry-lot is the 80m by 24m Gable Entegra shed used as a maternity barn.

Segregated into sections for transition cows, calving cows, sick cows and fresh cows - those

In January this year, work commenced on the Stewarts’ 800-cow dry-lot. The dry-lot includes a central feedpad with two Entegra shade sheds and a maternity barn.

one-to-14 days in-milk - it also includes a crush and midget milker.

Cows calve down onto sawdust and initial calf management is easier for staff.

“It means we can pay better attention to our fresh cows,” Mr Stewart said.

“We can get them to peak their production a lot quicker and hopefully eliminate health issues.”

The entire facility is focused on cow comfort.

The Entegra shed has an 18-degree pitch roof with an open vent on the top to draw air through, up and out of the shed. Mr Stewart said this could be converted to a compost barn.

After 34 years of milking cows, Mr Stewart believes the dry-lot construction “nearly completes his farming journey”.

True to the aspirations of his younger-self, one of his properties resembles the farms he admired on the pages of the US dairy magazine.

But more importantly, the Stewarts have set up their business for the future.

It’s in a position to manage the challenges of farming in northern Victoria for any possible investor, and is somewhat future-proofed in case their children - Emily, 22, Teagan, 19, Zoe, 16 and Jed, 12 - want to continue the family legacy.

“There’s definitely a future to produce milk in northern Victoria,” Mr Stewart said.

“But I’m convinced it is under this sort of system.”

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DAIRY NEWS AUSTRALIA OCTOBER 2020

32 // ANIMAL HEALTH

Safety must come first LUCY COLLINS

AFTER A recent accident on-farm which has

left me typing this month’s column one-handed, I thought I might take the opportunity to briefly discuss stock handling facilities.

Cattle are large and unpredictable — and therefore inherently dangerous.

I don’t know of too many experienced cattle vets (or dairy farmers for that matter) who haven’t suffered some sort of significant injury as a result of working with cattle during their careers.

As in my case, I’m sure many of these mishaps are freak accidents rather than a reflection of the quality of the farm’s facilities, but I have no doubt that many of them were probably preventable near misses from far more serious incidents too.

Ironically, the week of my injury I actually declined service to two of our clients because the work they had booked me to complete was incredibly dangerous given the nature of the job and the quality of their facilities.

In one instance, I felt wooden pallets tied together with baling twine did not constitute an appropriate set of cattle yards.

As it turned out, they did not withstand the force of the small mob of irritable beef cows they were supposed to restrain.

I’m fortunate that our clinic has a small set of yards for such circumstances, and so an alternative solution is readily available.

Thus, I can be confident the job will still be completed in a safe, satisfactory and timely manner for the client. But I’m aware not everyone is so lucky.

What concerns me most though, is that I’m not sure I would have had the confidence to decline service to these clients in the early stages of my veterinary career — and I know I’m not alone.

We new graduates are often so eager to please clients or prove ourselves that we end up in situations performing tasks we should never have been asked to attempt in the first place.

If we’re lucky, we end up with a good story to tell our mates. If we’re not, we end up in hospital.

And this doesn’t just apply to vets.

Young children, inexperienced farm staff, wellmeaning older generations no longer as ablebodied as they once were, inappropriate or poorly maintained facilities, and unhandled or untrained livestock can all pose major safety risks on a farm.

Ideally, your crush and stock handling facilities should: ■ Be manufactured by a licensed fabricator and welds be of high quality.

■ Open and close with ease (preferably operated with one hand).

■ Lock securely (slam shut) where required.

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This was a perfectly functional crush except that it wasn't attached to anything and the patient was able to run away wearing it. Quite the kerfuffle ensued! Picture: Lucy Collins.

Enable large or fractious animals to walk through rather than back out.

■ Minimise risk of slipping (both for livestock and operators).

■ Include a secure form of head restraint that can still be released when under pressure.

■ Allow clear access to all sides of an animal for examination or treatment (horizontal split gates and rear ‘vet area’ strongly encouraged).

■ Feature man-gates or gaps where there is a high risk of crush injury.

■ Contain solid backing gates that horns will not easily penetrate.

■ Receive regular maintenance and repairs as required.

■ Not feature duct tape, baling twine or any other manner of inappropriate and unsafe repair work.

Given last year’s introduction of new industrial manslaughter laws and their potential application to farming businesses, I can think of no better time to take responsibility, assess your facilities and ask yourself “are they fit for purpose?”.

■

Farming is full of risks. In a split second, a routine task can go from predictable to pear-shaped.

Preparation and prevention are paramount.

Meaningful conversations with staff about potential hazards, hazard reporting and providing training where required should form an important part of your risk mitigation strategy.

Particularly if you are not involved in the day-to-day operations on your farm. And while it may seem like unnecessary red tape now, a small amount of planning could save you a hell of a lot of heartache and paperwork down the track.

For further information and risk assessment templates, head to: www.farmsafe.org.au or to download your copy of The Australian Cattle Veterinarian Crush Design and Safety Guidelines visit: mycattlevet.com.au/wp-content/ uploads/2016/01/Crush-Design-and-SafetyWEBSITE-FINAL.pdf Lucy Collins is completing her dairy residency with the University of Melbourne. She works as an on-farm veterinarian in Kyabram with Apiam Animal Health, and alongside her partner on his 600-cow dairy farm in Dixie.

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Dairy News Australia columnist and Kyabram vet Lucy Collins.

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS  // 33

Dealing with downer cows THE CALVING season is well and truly upon

us and you may find a downer cow in your herd.

The prompt, correct diagnosis and treatment of the condition could help save your cows, your time and your money.

There are a number of potential causes, including:

Physical injuries Calving paralysis is usually, but not always, associated with heifers and a difficult calving.

During calving a cow’s nerve, known as the obturator nerve, may be crushed between her pelvis and the calf.

A cow with calving paralysis will appear bright and alert but have no control over one or both of her hind legs.

The only treatment is careful nursing and time; anti-inflammatory drugs are useful if used early.

Calving paralysis needs to be distinguished from injuries such as dislocated hips and back injuries.

Such injuries can occur in any aged animal, often after an accident such as slipping.

A cow with these injuries will also be bright and alert and usually eat and drink normally.

A veterinarian should be called to assess these animals.

Metabolic diseases Metabolic diseases can be distinguished from physical injuries by the presence of other clinical signs.

Milk fever is seen in older, high producing, fatter cows. A cow with milk fever will show fine muscle tremors, staggering and weakness.

Grass tetany is seen during times of stress such as bad weather on short grass-dominated pastures.

An affected cow will become aggressive, excited, go down and paddle and convulse violently.

Both milk fever and grass tetany should be treated urgently with 4-in-1; additional calcium or magnesium may be needed into the vein and should be administered by a veterinarian.

Pregnancy toxaemia or acetonemia is an energy deficiency problem seen in cows losing weight or calving in poor condition. Behavioural signs will be seen before the cow goes down.

Cases may indicate a dietary deficiency being experienced by the whole herd.

Agriculture Victoria district veterinary officer Dr Jeff Cave has offered a range of tips on managing downer cows.

Cases in which neurological signs are seen may be eligible for the TSE surveillance project, which Australia uses to demonstrate its freedom from such diseases as BSE (mad cow disease).

A financial incentive is available for producers who report such cases.

Toxaemia (blood poisoning) Mastitis, metritis or any other generalised infection causes toxaemia or blood poisoning.

A cow with toxaemia will appear depressed, with a dry nose and sunken eyes.

It is important to check the udders of downer cows for mastitis, and the uterus for tears or severe infections.

Care of the downer cow Prompt treatment with appropriate veterinary drugs and good nursing are the keys to successfully treating a downer cow.

The first step is to try and determine why the cow is down and to treat appropriately.

Cows should only be nursed if they have a realistic chance of recovery. Otherwise they should be humanely destroyed.

When nursing a downer cow move her to a dry, sheltered shed and provide her with comfortable, dry, soft bedding on a non-slip surface.

Sit her on her chest, position her correctly, and roll her from side to side at least two times a day. Provide her with feed and water.

Use hip clamps only for a few minutes to get her on her feet.

For further advice, contact your local veterinarian or Agriculture Victoria veterinary or animal health officer, or in NSW your Local Land Services.

- Agriculture Victoria district veterinary officer Dr Jeff Cave

DAIRY NEWS AUSTRALIA OCTOBER 2020

34 // NEWS

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stress and will adapt by reducing their milk production.

Only half of that milk reduction is explained by a lower dry matter intake; other metabolic changes are involved, including a shift in the use of glucose by the mammary gland to other tissues, reducing its availability for milk production, a reduction in rumination and nutrient absorption and an increase in maintenance needs to dissipate heat.

Even if management has improved to reduce the effect of heat stress, the economic loss related to heat stress could be as high as US$383 per cow per year (St-Pierre, 2003).

This loss of revenue is due to a reduction in milk production, butterfat yield and reproductive performance.

At what temperature can we identify if a cow is suffering from heat stress?

A tool called the Temperature Humidity Index (THI) was developed to identify when heat stress will negatively affect the performance of dairy cows.

Both temperature and humidity should be considered since the combination is worse for the dairy cow.

For the same temperature, the THI will increase with humidity and vice versa.

The THI is a colour-coded chart showing various levels of heat stress severities with the heat stress threshold at a THI of 68 (Collier et al., 2012).

At THI 68, dairy producers need to start adjusting management and nutrition to minimise the impact of heat stress on their dairy herd.

An example of THI 68 is a temperature of 23°C with a humidity of 40 per cent.

The temperature and humidity measurements should be done in the cow barn, not by simply using the local weather station. The length of the heat stress will impact performance and recovery will take weeks.

Dairy cows will start to reduce their milk production when the THI is at 68, sometimes even at a lower THI. This was demonstrated in a study done at the University of Arizona, with cows producing 35kg of milk daily.

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 35 The milk production dropped by 2.2kg of milk/day when the minimum THI was on average 68 (65 to 73).

This suggests that cooling dairy cows should start when the minimum daily THI is at 65 (Collier et al., 2012).

The maximum impact on milk production will occur 24 to 48 hours following heat stress.

Heat stress preceding and during the breeding period will affect the reproductive performance of the cow and also its future progeny performance.

When cows are under heat stress, the heat expression is depressed, due to a lower production of estradiol, and the quality of the ova is reduced.

Lower quality ova may influence the viability of the embryo (Santos et al., 2011).

Early embryo development up to day six is impaired when the body temperature of the dairy cow reached 38.9°C (Hansen et al., 2012).

This explains the lower pregnancy and conception rates observed during summer months, when cows are under heat stress.

It takes 40 to 60 days following heat stress before fertility returns to normal.

Recent studies showed an association between heat stress during the breeding period and the subsequent milk production of their progeny.

The future milk production of the heifers born from the heat-stressed cows was 82 to 399kg less during their entire lactation than heifers from cows under thermo-neutral environment (Rhoads, 2017).

What can be done to reduce the impact of heat stress on dairy cows?

The use of cooling systems and a reduction of stocking density are sound management tools to reduce the extent of the heat stress during summer months.

Providing clean water along with some nutritional adjustment to the ration will alleviate the risk of reduced performance.

The supplementation of some protected B vitamins in the diet during the lactation period is also beneficial to reduce the negative impact of heat stress.

B vitamins are essential nutrients and have specific functions in the energy (including glucose and fat) and protein metabolism of the dairy cow, in the immune response, the follicular development and the early embryonic survival.

The heat-stressed cow will not mobilise body fat to compensate for the reduced dry matter

intake (energy) but instead, will use glucose as a preferred source of energy (Tao et al., 2016, Baumgard et al., 2012).

In fact, immune cells during heat stress will be activated and will require up to 2kg of glucose/ day for energy purpose.

Moreover, dairy cows producing 30 litres of milk will need to synthesise 2.2kg of glucose just for milk production.

Since dairy cows do need to produce glucose in the liver, providing specific B vitamins - biotin (B8), cobalamin (B12) and pantothenic acid (B5) - that are enzyme co-factors (activators) for glucose synthesis is crucial.

Some B vitamins (folic acid and pyridoxine) also play a specific role as antioxidant to reduce the oxidative stress.

Feeding protected B vitamins improved milk and reproductive performance under heat stress When lactating dairy cows were supplemented during the heat stress period with a specific blend of protected B vitamins (folic acid, B12, pyridoxine, pantothenic acid and biotin), the energy corrected milk increased by 3.8kg/day when compared to non-protected biotin.

The increase included higher milk production with 100g more butterfat and 160g more milk protein.

This supplementation alleviated the negative impact of heat stress per se.

A study conducted during the summer in the north of Mexico, where reproductive performance is usually drastically reduced due to heat stress, showed an improved reproductive performance when the ration of dairy cows was supplemented with the same blend of protected B vitamins as the above study, during the lactation period.

In fact, the first service conception rate increased by 19 per cent while 22 per cent more cows got pregnant early at 120 and 150 days in milk.

Dairy cows will respond even stronger to the supplementation of protected B vitamins under stressful conditions, including heat stress.

Other studies conducted with the same blend of protected B vitamins (Juchem et al., 2012; Evans et al., 2013) have shown benefits on milk production and reproductive performance but the extent is larger when cows are supplemented during the heat stress period.

■

■

Milk production and reproductive performance will be negatively impacted resulting in a loss of profit for the dairy producer.

Supplementing a blend of protected B vitamins (folic acid, B12, pyridoxine, pantothenic acid and biotin) during the lactation period is an innovative tool to provide ammunitions

to dairy cows to counteract the heat stress impact and will improve milk production, component yield and reproductive performance.

■ The benefit of supplementing protected B vitamins during heat stress is even higher than under non-stressful conditions. *Helene Leclerc is ruminant I&D technical manager with Jefo Nutrition

Effect of the supplementation of a specific blend of protected B vitamins on energy corrected milk (ECM) during heat stress (Gressley et al., 2018).

Take home message ■

The dairy cow will adapt to heat stress by modifying its metabolism to reduce heat expenditure.

Effect of a specific blend of protected B vitamins on reproduction performance during heat stress (Leclerc et al., 2016).

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DAIRY NEWS AUSTRALIA OCTOBER 2020

36 // NEWS

Bigger and better line-up JOHN DEERE has updated and expanded The new John Deere C500, a 5-metre, centre-pivot mower-conditioner.

its mower-conditioner line-up for 2021 with the addition of a new model and a number of key upgrades to its popular Zero Series MoCos.

Notable changes include an additional model, the five-metre centre-pivot C500, and the redesigned four-metre centre-pivot C400.

Quick change knives are now standard, as well as an industry-leading five-year cutterbar warranty across the range.

In total, eight new Zero Series models are now available, ranging in cutting widths from 2.5 metres to five metres.

Zero Series MoCos can now be ordered, replacing all 600, 800 and 900 series models.

The range includes side-pull S250, S300 and S350 machines and centre-pivot C300, C350, C400, C450 and C500.

A new naming and numbering system will help customers differentiate between centre-pivot and side-pull machines, cut width and series.

For example, on the C500, ‘C’ identifies it as a centre-pivot MoCo, and ‘S’ like on the S300, shows it’s a side-pull MoCo. The next two digits represent approximate cut width in metres, 5m for the C500 or 3m for the S300, and the last digit identifies the MoCo series.

John Deere tactical segment marketing manager Fraser Scott said the Zero Series was designed to help commercial and non-commercial hay producers manage tight harvest windows by getting more crop cut and ready to bale.

“We’re excited to bring the C500 and the new updates to the Zero Series range to our valued customers, to even better support efficient and targeted hay and forage production,” Mr Scott said.

“For producers wanting to cover more ground more quickly, the C500 is 10 per cent wider than the previous model to ensure more hectares are harvested every hour.”

To move crop from the cutterbar to the conditioner rolls more efficiently, the C500 utilises the same field-proven overshot cross auger design used on John Deere 500R rotary windrower platforms.

This system delivers improved cut quality and reduced ash content while promoting fast dry down through improved windrow formation.

The all-new C400 is lighter, offers better weight distribution and features wider conditioning rolls than its predecessor.

The lighter weight of a C400 makes it compatible with a wide range of tractors, and the wider conditioning rolls allow improved crop conditioning and windrow formation.

The C400 also features a repositioned driveline above the main beam of the tongue that improves access for easier serviceability.

To further simplify routine service and maintenance, John Deere is offering its new quick change knife system for all 2021 MoCos to reduce the time needed to replace worn or damaged knives by more than 50 per cent, compared to a standard bolted knife.

For more information, visit your local John Deere dealer or www.deere.com.au/en/ hay-forage/mowing/mower-conditioners/

DAIRY NEWS AUSTRALIA OCTOBER 2020

NEWS // 37

Machinery sales still booming RODNEY WOODS

THE PURCHASING of new equipment and

vehicles has been a key trend across National Australia Bank customers as they prepare for Australia’s recovery from COVID-19, according to new data from the bank.

It comes as Australian farmers have used a range of strategies including counter-cyclical investment, short-term enterprise switching and finding new markets to ride out drought and COVID-19 market disruption.

Loans to the agriculture sector for equipment finance are up by 81 per cent in South Australia and Northern Territory (year-on-year), 37 per cent in Western Australia, 27 per cent in NSW/ ACT and Victoria has seen a 41 per cent increase in demand.

NAB Agribusiness customer executive Julie Rynski said the majority of farmers had proven to be exceptionally resilient through two years of challenging conditions and are now poised to capitalise on improved conditions.

“Drought, fires and COVID-19 disruption impacted farm businesses in many different ways, and NAB’s customers have responded uniquely to the circumstances impacting their businesses,” Ms Rynski said.

“For horticulture producers, disruption to the retail channel has been challenging, but many have found a way to reach a market.

“Some of our broadacre and extensive grazing businesses have capitalised on balance sheet strength, and a long-term relationship with their bank, to exercise property expansion to access feed to hold onto a breeding herd or to fund short-term enterprise switches.

“Despite the view that cashflow would hamper recovery efforts, our bankers report that farmers have been sticking to their longterm financial plans and are able to finance herd rebuilding and sustain their full cropping programs.”

According to the Tractor and Machinery Association of Australia, the sale of agricultural tractors continues to gather pace, with August sales up 19 per cent on the same month last year.

They are now up 21 per cent for the year-to-date.

“The ongoing demand for agricultural produce combined with favourable weather conditions across the nation, supported by the Federal Government’s Instant Asset WriteOff program, are supporting record sales volumes,” Tractor and Machinery Association of Australia executive director Gary Northover said.

“As we have been flagging in recent months though, the issue of supply has now become a factor with some product normally expected to be ex-stock now being subject to six to eight week delivery times.

“Product coming out of Europe and the US continues to be hampered by factory-based

Tractor and machinery sales are up due to better weather conditions and farmers taking advantage of the Instant Asset Write-Off scheme. Photo: Cath Grey.

restrictions with reasonable demand in home markets compounding these delays.

“Locally, dealerships continue to operate under COVID-safe work plans, all have which impacts supply.”

According to Tractor and Machinery Association of Australia data, the increase in sale numbers is due almost entirely to the ongoing strength in the smaller end of the market supported by the Instant Asset Write-Off scheme.

The under 40 hp range was up 58 per cent for the month and now sits 24 per cent ahead for the year-to-date, while the 40 to 100 p range was up 27 per cent in August and 22 per cent for the year.

The 100 to 200 hp category saw its first dip in some time, down six per cent in August but still increased by 31 per cent for the year-to-date, while sales in the large 200 hp or more range declined by two per cent leaving this category seven per cent behind year-to-date.

Mr Northover said demand for large tractors was being impacted by a range of factors including the persistent drought in regions within northern NSW and southern Queensland and the ongoing challenges being felt in the west.

He said further pressure was being felt as a result of recent price increases.

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DAIRY NEWS AUSTRALIA OCTOBER 2020

38 // NEWS

New Magnum tractor hits paddocks THE CASE IH AFS Connect Magnum, offi-

cially launched in Australia and New Zealand last month, is hitting the paddocks for the first time in the country.

For the first time, the Magnum range in Australia includes a 400hp option in both the wheeled and Rowtrac models.

“Versatility is the key to the AFS Connect Magnum 400,” Case IH Australia/New Zealand high horsepower product manager Alyx Selsmeyer said.

“This is a genuine multi-purpose tractor that will succeed in a broadacre business but it could adapt just as easily to the tasks required around an irrigation operation.

“Tillage, seeding, irrigation, row cropping — the Magnum 400 can do everything required, making it an attractive option for those looking for value for money and who may have fewer options when it comes to labour.

“It’s a significant addition to our product lineup.”The 400 also features a new transmission, an upgraded 21-by-5 transmission with 21 speeds forward and five reverse.

Ms Selsmeyer said the transmission had been designed for the additional horsepower above and beyond the previous Magnum line-up but also for the versatility, variety and range of tasks this Magnum can perform.

“Having more available power to the ground gives producers increased productivity in the

For the first time Case IH is offering a 400hp option as part of its Magnum range.

Case IH Australia/New Zealand high horsepower product manager Alyx Selsmeyer.

likes of high-speed planting, heavy tillage applications and seedbed preparation,” she said.

“The changes to the mechanics alone will boost your productivity significantly, but when

coupled with the AFS Connect technology you get a lot more efficiency as well.

“Marrying increased productivity with tech efficiencies are going to let farmers get a lot more done with a lot less inputs, like labour, time and money.

“Farmers in this market have been asking for additional horsepower in the Magnum range for some time, and now we can offer them more

power combined with a superior level of technology, all in the one machine.

“It’s an exciting expansion of our product line and the benefits for farmers and their business are enormous.”

For more information on the AFS Connect Magnum 400, contact your local Case IH dealership.

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