Dairy News Australia - October 2017 - With West Vic Region

WEST VIC REGION

Shelter leads to more pasture and more cows

Simon and Pep Rea with their daughter Stephanie.

STEPHEN COOKE

SIMON REA has lifted his herd size from 400

to 540 head and is growing 10 per cent more pasture, thanks to the cow shelter installed on his Panmure farm.

Mr Rea and his wife Pep installed the 48.6m x 81m shelter on their farm three years ago. The

Reas and business partners David and Sue-Ellen Colson are selling the clear-roofed structures through their business, Dairy Shelters Australia.

Dairy Shelters Australia customises New Zealand-made Redpath clear-roofed, deep-litter shelters. They are made from flexible polythene membrane components and utilise a deep woodchip floor, cleaned daily via a simple scarifying process.

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The Reas held a field day on their sodden farm in mid-August. The wet conditions were why the structure was installed at a cost of $300 000.

“We’ve always struggled in July and August, which has been a iting factor on the farm. We saw it as an insurance policy against the wet weather,” Mr Rea said.

“When we decided to install it, we were only

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comfortable to go to 400-420 cows on this farm.

We’re now running up to 540 cows. We never would have dreamed of going to those numbers in this country without it.

“We never had confidence that this country could hold that many cows in winter. If it gets wet, it can halve our stocking rate immediately.

Continued page 3 >

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DAIRY NEWS AUSTRALIA OCTOBER 2017

2 // WEST VIC REGION

Chair’s message

Strategic plan sets priorities IT WAS great to hear that many of our farmers

have read the first edition of the regional Dairy News Australia and enjoyed the stories within. At WestVic Dairy, many exciting things have happened over the past few months.

In September, we held our AGM and as a board we launched our new strategic plan for the next three years. Our four strategic priority areas will be: Profitable dairy farms: Supporting our farm businesses to be productive, sustainable and profitable.

Capable industry people: Supporting farm businesses in the recruitment, retention and transitioning of personnel and in their training and skill development.

Two-way communication and engagement: Open interaction with farmers and other stakeholders in outward communication and encouraging and responding to feedback.

Promoting a trusted and valuable industry: Contribute to an improved awareness by others of the value of our industry through collaboration, leadership and social responsibility.

As we all try to move forward with a better season and milk price, it’s important to the WestVic Dairy Board that our farmers have all the information they need to make good business decisions.

At our AGM, we welcomed three new directors and one associate director to our board — Rhonda Henry in the non-farmer director role and Jacqueline Suares and Matthew Glennen as farmer directors. Jessica Howe has joined us in an associate board director role. They all bring varying skill sets, as well as plenty of enthusiasm and

passion. I’m sure you will get a chance to meet them at our many extension activities and meetings throughout the year.

Silage season is nearly upon us — if it has not already started for many. It is indeed my least favourite time of the year, as it sends my hayfever crazy! I leave the tractor work to my better half but am an expert in ferrying food and drink all over the farm at any time of the day or night.

Happy harvest everyone.

• Simone Renyard WestVic Dairy chair

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WEST VIC REGION // 3

Paddock boost from shelter <Continued from page 1

“With our heavy, sticky soils, if it’s wet in July, it won’t dry out until mid- to late-September.”

When deciding whether to invest in the structure, the Reas wanted to grow 10 per cent more grass to help offset the cost.

“By managing pugging in winter by housing our cows in the shelter, we can grow more grass in spring. We wanted 10 per cent more grass and we’re doing that easy,” Mr Rea said.

The 240ha farm includes 200ha of grazing land, growing about 8tonne/grass/hectare. Mr Rea said an additional 0.8tonne (10 per cent) a year per hectare equated to 160 extra tonnes of feed per year, as land was in better condition leading into spring.

Feeding home-grown silage in feeders on a feed pad adjoining the shelter is also more efficient, with Mr Rea saying feed stretches 30 per cent further than paddock feeding in the wet.

Due to the milder early winter, the milkers were in the paddock from June to mid-July.

From then, the Reas were running 200 milkers and 90 dry cows in the shelter with 250 milkers out in the paddocks. Cows are rotated through in 12-hour shifts. They recorded 70 000 12-hour cow entries last year.

“There is good feed in the paddock but 450 at once would create pugging,” Mr Rea said in mid-August.

“It’s a flexible system. Cows can eat in the paddock then come in here and lie down.”

With paddocks out of bounds to preserve them, cows were being fed some of last

year’ssilage and vetch hay.

Dry cows are run at 9 square metres per cow, while milkers are allocated 15 square metres.

Some milkers spend every day in the shed and Mr Rea said mastitis issues had decreased, as has the cell count, which sits between 60 000 and 70 000.

“It makes management easier as the shelter is next to the dairy. It’s the equivalent of buying 150 acres 30 yards from the dairy.”

The woodchip base is three years old and is scarified with a chisel plough every morning at milking. It takes 25 minutes and by the time the cows return it is dry. Warmth of the sun captured through the transparent roof helps sterilise the flooring. It is 40 degrees under the surface.

Cows leave the loafing area to eat in a gravel pad adjoining the covered structure. Eating outside means more manure on the gravel pad, which is scraped clean. This was spread directly onto the farm last year.

About a third of the shed is scheduled to be replaced with fresh woodchips this year at a cost of $15 000. This will then be mixed with waste farm manure, turned into compost and spread on the farm. This process may cost $15 000 to $20 000 replacing traditional fertiliser that may cost between $40 000 and $50 000.

One bay (a third of the shelter) was turned into 400 cubic metres of compost last year, fertilising 80 ha of the farm.

Mr Rea told the field day that the potassium and nitrogen captured in the bedding would be the equivalent of a traditional fertiliser blend.

The woodchip floor is scarified each morning while the cows are being milked.

Simon and Pep Rea installed the 48.6m x 81m shelter on their farm three years ago.

Cows enjoy loafing undercover on the woodchip floor.

The water trough on the feed pad next to the shelter.

Farmers at a field day at Simon and Pep Rea's farm in August.

DAIRY NEWS AUSTRALIA OCTOBER 2017

4 // WEST VIC REGION

RURAL RUMENATIONS with Katie MacAuley Columnist Katie MacAulay has been married to a dairy farmer long enough to appreciate the smell of good silage. She loves chooks, enjoys stacking hay bales with the tractor and wonders why the lawn grows twice as quickly as the grass in the paddocks.

Picture perfect bovine celebrities BACK IN the good old days, there was a plethora of catalogues to read.

Clothes, furniture, cars, holidays. Thick glossy publications with lots of stylishly lit pictures to fawn over. Then along came the internet and everything changed.

No more plastic-wrapped beauties arrived to read over lunch. Instead our email inbox cluttered up with large attachments that wouldn’t load and links to advertising websites.

Even when our internet connection lasts long enough to download the necessary information, I find it hard to flick through internet-based catalogues and make decisions. I like sticky notes, a pen and paper and being able to physically flick from one marked page to another. Besides, my computer screen is unreadable when I sit on

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the back verandah in the sunshine.

Hence, it was only a matter of time before I developed an interest in flicking through AI sire and pasture catalogues. They have pretty pictures and I can read them on the verandah while Tinkerbell bounces on the trampoline.

I won’t read pasture catalogues outside though. Perusing pictures of luscious kneehigh rye-grass while looking at my lawn of distitchum, capeweed and other undesirably hardy green plants is a mood dampener.

Why does my lawn look like a photo shoot for ‘Weeds of Australia’ when just metres away, Hubby has acres of healthy rye-grass and clover? (Perhaps I should include the lawn in the replanting rotation?)

However, the AI sire catalogues are great fun

rities have backs as straight as Lego blocks.

The way catalogue cattle stand is also unique to Bovine Celebrity Land. Cows quietly graze on their chopped grass, back legs splayed and their tails pushed to their left side so their udders are in complete view. Others fully extend their necks and point their noses in the air like golden retrievers who’ve just smelled something good.

The size of their paychecks, perhaps?

Once I finish admiring the pretty pictures, it’s time to read the statistics — but the sheer volume of them overwhelms my brain. Couldn’t we just reduce it down to a single parameter — how about the OPI (Offspring Photogenicity Index)?

Because surely in today’s image-obsessed world, it’s not about how you perform in the dairy but how good you look while doing it.

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and perfect for a read in the sunshine. Not only do they substitute for a travel brochure — photo backgrounds include snow-covered Scandinavian alps, deciduous European forests, fields of golden canola, beautiful rivers, lakes and mountains, stone walls and floral hedges — it’s like a round-the-world trip without the stress of packing!

The animals themselves bear little resemblance to our herd but that’s okay, because they are the celebrities of the bovine world. Why would they resemble real-life cows any more than I’d expect myself to resemble Miranda Kerr?

For starters, bovine celebrities are spotlessly clean with fluffy poodle tails. While our herd consists of ‘cow-shaped’ animals, bovine celeb-

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Meet the new WestVic Dairy board members At the AGM in September, WestVic Dairy welcomed four new directors to its board. Read about their goals and how they want to make a difference within the industry they love.

Matthew Glennen, farmer director MATT GLENNEN is a dairy farmer from Dixie and works on the family’s property, Dixie Park Farm Trust. The farm milks about 500 cows on 279 ha.

He completed a Bachelor of Business (Ag Management) and has been involved in numerous discussion groups across the district. His industry experience also includes working at Warrnambool Cheese and Butter and Reid Stock Feeds.

But working on the dairy farm was always his goal.

Mr Glennen is hoping to bring a young perspective to the board and improve the engagement with young people in the industry.

“I want to help improve the projects and activities we have to offer to make sure we are delivering what farmers want,” he said.

“Having been president of the Ecklin Discussion Group and involved in the footy clubs has made me realise how important it is to get involved in something you love.”

He said he would like to see attendance rates of farmers increase and he has a strong focus on farm business management.

“I believe the future for dairy farming is bright and there are a lot of young passionate people out there.”

Rhonda Henry, non-farmer director RHONDA HENRY has been working in banking for 44 years and for the last decade her focus has been on the dairy industry. Her background as an agribusiness banker means her passion lies with improving financial management on farms.

Based in Warrnambool for all of her career, she is passionate about the region and its farmers. Her working life has included a number of jobs in customer service roles, as well as various lending and administration jobs. She enjoys the

close contact with people and said she was passionate about helping farmers run their business in the best way possible.

One of the main reasons she joined the board was because she wanted to give back to the industry and wants to do her bit to help create a sustainable and profitable dairy industry.

Ms Henry said she thrived on challenges and was looking forward to the challenges her new position as director will offer.

Jacqueline Suares, farmer director JACQUI SUARES has been involved in the dairy industry for 40 years after marrying a fourthgeneration dairy farmer. The family farms in Larpent, milking 170 cows on about 129 ha. While she has always worked off-farm, her connection with the industry has been strong.

After finding herself with more time following her retirement from her position as chief executive officer of a community service organisation, she felt it was the right time to take a break, take stock and realign priorities. As part of this, she realised that she wanted to do something to stay active and give back to the community. Joining the WestVic Dairy Board seemed like the perfect

way to do just that.

Being a smaller farm, she said she was hoping to add yet another perspective to the board.

“I want to add the views from a smaller, strictly family run business. The needs in extension are different to larger farms and it is important to have a good balance around the board table.”

She said the industry was in a state of constant change and her goal was to help farmers to better manage their businesses in order to adjust to the changes.

“My biggest passion is people and I want to help farmers to adapt to the rapid changes that have become the new norm in our industry”

Jessica Howe, associate farmer director JESS HOWE has joined the board as an

associate farmer director, but she wears two hats — aside from farming with her husband and his family on their farm in Naringal, she also works as a field officer at Warrnambool Cheese and Butter.

She completed a Bachelor Degree in Agriculture with Charles Sturt University and graduated as one of 14 in the inaugural Great South Coast Leadership Program in 2012. She has worked on several farms across the region and continuously strives to build her knowledge. Joining the WestVic Dairy Board was one step towards

achieving her goal of supporting young farmers in the industry.

“I’m very passionate about helping young people who want to start their career in the industry with finding their pathways,” she said.

“Being on both sides of the fence, as a field officer and a farmer, is challenging at times, but it also gives me a good understanding of the issues on both sides. I hope that this will add a unique perspective to the board.”

Her other passion is making sure public perception of the industry is positive.

PRICE HIKE Dairy farmers are being crushed under the weight of power prices, with climbing power bills impacting their ability to stay competitive.

The rising cost of electricity has hit farmers hard, with Australian Dairy Council figures claiming that dairy farmers spend between $35 and $75/ day on electricity to power their dairies, compared to between $20 and $45/ day seven years ago.

The power price spike has also hit Katandra West farmers Gayle and Laurie Clark, despite the couple installing a 30 kW solar system on the dairy shed roof a number of years ago.

While the system has resulted in significant savings, it hasn’t been enough to avoid climbing power prices.

“The solar system cut our dairy bill by about a third when we first installed them … unfortunately there has been increases in our power bills lately.

No-one gets away without an increase unfortunately,” Mr Clark said.

“Looking at it now just sort of cements that what you did was a good decision. At the time is was a tough financial decision to justify.”

The Clarks have used power generated by the solar system to power their roller mill and drive their irrigation pump in the recycle dam, with the savings seeing the solar system paid off within a couple of years.

Yet while the Clarks have been able to ease their power price pain, Katunga dairy farmer and Australian Dairy Farmers natural resources and management group chair, Daryl Hoey, said he has heard instances of farmers’ bills doubling in recent months and has called on the federal and State Governments to do more.

“Significant solutions have to come from government input and it appears at the moment the government is on a complete freeze on thinking on this and don’t know how to react,” Mr Hoey said.

“Prices will continue to go up until they start to come up with some real solutions rather than just token gestures.

“We’ve got an embedded high cost in our system. Until governments completely rethink their distribution network and start to provide real alternatives to bring down the prices, there’s no real light at the end of the tunnel.”

Katamatite East dairy farmer Iwan Van Den Berg, who operates an 800 ha farm with his wife Melissa, and his brother Erwin and partner Julie, milking about 1250 cows, echoed Mr Hoey’s claims and said his electricity bills had been climbing for some time.

“They’re not quite double but they are certainly a lot higher (than they have been in the past),” he said.

“We’re trying to research all sorts of new ideas however there’s nothing getting done about it from higher up.

We won’t be the only ones that would suffer as a result of the prices.

Gas is already a significant input cost for dairy processors in Australia.

Based on reports, gas prices are forecast to rise between 50–100 per cent by 2019, according to the Australian Dairy Industry Council.

This will impact the processing of dairy and increase the manufacturing costs of milk products.

DAIRY NEWS AUSTRALIA OCTOBER 2017

6 // WEST VIC REGION

Milk quality awards take pride of place RICK BAYNE

ZOE VOGELS likes nothing more than seeing dairy farms displaying their milk quality awards.

To this dairy vet, the Dairy Australia Milk Quality diamonds and local factory milk quality awards are an indicator that the farm and its cows are doing well.

“I was on a farm last week and up on their dairy door were all their milk quality awards from both their factory and from Dairy Australia,” Dr Vogels said.

“It’s good to see farmers’ hard work being acknowledged.”

Dr Vogels doesn’t have to look far to find milk quality awards — her husband Andrew and his brother Jamie Vogels run Scotts Creek Dairies, which now boasts three of its own.

The brothers have farmed the land in southwest Victoria all their lives, following in the footsteps of their father John who worked as a dairy farmer before moving into local and state politics.

Their milk quality run started in 2015 with a silver diamond for being in the top five per cent of bulk milk cell counts (BMCC) nationally and progressed in the past two years to gold diamonds for being in the top 100 farms.

The move to the top started about five years ago with significant changes in the drying-off routine and the introduction of Teatseal.

“Our cell count had gone higher and higher over the years and it was right on the edge of premium level,” Dr Vogels said.

“We found out what bacteria were causing the

mastitis, and analysed when clinical cases were occurring; there was a high rate of environmental mastitis at calving time.

“The recommendation was to use a teat sealant in addition to dry cow antibiotic at dryingoff. The next year we halved our cell count and the following years we’ve kept on going down.”

Teatseal application made a significant difference for mastitis at calving time.

“We also changed our whole drying-off routine,” Dr Vogels said.

“Industry best practice techniques were introduced, with more people in the dairy during the process so that hygiene at infusion was guaranteed. You could say it was a more careful job and that has been part of the difference.”

Next year they found the number of clinical mastitis cases at calving went down in the cows but they remained high in heifers so Teatseal

Paul Dunn from the Vet Group teat-sealing heifers.

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DAIRY NEWS AUSTRALIA OCTOBER 2017

WEST VIC REGION // 7 prior to calving was introduced to them as well, with the help of the Vet Group’s tipping crush.

Changing the drying-off practices made the difference; since then Scotts Creek Dairies has maintained the practices and seen continual improvement.

The annual BMCC had peaked at 300 000 and dropped to about 150 000 the following year. More recently the annual average has been around 70 000. Today it’s averaging around 90 000.

“It has been lower but with the current wet conditions it’s to be expected. We haven’ been out of premium since we started all this,” Dr Vogels said.

While the changes came from necessity to avoid penalties associated with falling out of the premium milk bracket with their milk factory, Warrnambool Cheese and Butter, the new methods have had lasting positive impacts.

“It’s not just about penalties; if you have less mastitis in your herd your cows make more milk.

It’s also not just the money; there’s the frustration of mastitis,” Dr Vogels said.

“If you could pay $50 to stop a case of mastitis would you do it? It’s hard to put a price on your mental health. Overall, less mastitis means better quality milk and happier farmers.”

The farm covers 566 ha and milks between 600 and 650 cows depending on the season.

The cows are mixed breeds: Friesians, Swedish Reds and British Friesians. The farm has a good replacement rate of about 30 per cent, rearing about 220 heifers each year and culling empty cows and those with other issues. They calve May, June, July and again in September.

The farm relies on rye-grass pastures, homegrown hay and silage and feed pellets in the dairy. Overall production is about 7000 litres per cow with a 4.2 per cent butterfat and 3.4 per cent protein average.

The Vogels family is pleased with how the changes have gone.

“Even before the silver diamonds we were making the top 20 in the factory rankings; when we made the top 20 for the first time it was a bit of a thrill,” Dr Vogels said.

“To get a silver diamond was pretty cool; to get the gold was even better.”

Thea, Ben and Zane Vogels holding the milk quality award diamonds.

Zoe Vogel teat-sealing heifers.

The Vogels family’s Holstein herd.

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Fine-tuning supplements to increase profits

The Ellinbank farm received a wet end to winter and a wet start to spring.

STUDIES TO determine the nutritive char-

acteristics of perennial rye-grass are helping Agriculture Victoria research scientist Meaghan Douglas develop grain rations that will optimise milk production.

Fine-tuning supplement mixes and amounts could minimise the need to feed high amounts of protein during spring, which could help farm profitability.

Ms Douglas is a research scientist at the National Centre for Dairy Research, Ellinbank.

She is completing a PhD focusing on optimising the supply of nutrients from pasture and supplements to grazing dairy cows through a joint agreement with Agriculture Victoria and the University of Sydney.

Her primary focus is investigating the nutritive characteristics of perennial rye-grass cultivars grown on farms in Gippsland, northern Victoria and south-west Victoria.

Eighteen cultivars of perennial rye-grass have been collected from each region during

early and late spring, summer, autumn and winter by Agriculture Victoria staff at Ellinbank, Tatura and Warrnambool, and analysed for their nutritive characteristics.

“This work has shown that knowing the nutritive characteristics of perennial rye-grass in late spring can assist in formulating grain rations to optimise milk production.”

To complement this information, Ms Douglas conducted two experiments to determine the degradation characteristics of different perennial rye-grass cultivars in the rumen of dairy cows over 72 hours.

“These experiments investigated the ruminal

Research scientists Marlie Wright and Meaghan Douglas with Ellinbank farm manager Greg Morris.

degradation characteristics of protein and fibre in three perennial rye-grass cultivars harvested in early spring when the pasture is vegetative, and in summer during the reproductive phase of the plant life cycle,” she said.

Ms Douglas said there were differences in the amount of protein degraded in the rumen between the early spring perennial rye-grass cultivars within regions of Victoria.

“The later flowering, tetraploid cultivar had the greatest amount of total protein available for degradation in the rumen in northern Victoria, while the early flowering, diploid cultivar had the greatest amount in south-west Victoria,” she said.

Using the large knowledge base of perennial rye-grass nutritive characteristics created during this work, Ms Douglas hopes to optimise

Scholar seeks management insights FARM MANAGER Shannon Notter from

Carlisle River has been awarded a Nuffield Scholarship supported by the Gardiner Dairy Foundation.

She will investigate the key factors affecting farmer uptake of the information necessary to maintain a profitable dairy business, in an environment characterised by variations in price, climate and cost of production.

Ms Notter solely manages her family’s seasonal calving dairy farm, located 40 km from Colac. Her vision for the 500-cow operation is to focus on improving productivity of cows and grass, simplifying management and improving efficiencies to create a sustainable and profitable business.

“The key factors recognised for maintaining profitable dairy businesses include technical efficiency, cost control, management capability, tactical flexibility, farm financial management and investment decisions, farm system and size,” she said.

“Controlling costs and making the most of resources available are also a major source of creating higher returns.”

Ms Notter hopes her research in Ireland, China, India, Brazil, Argentina and Chile will identify potential new management practices and insights to herd size, exports and trading and subsidies and tariffs, that can be applied to the Australian dairy farming industry to further boost profits.

Her overarching aim is to provide farmers with processes and decision tools to make small changes in management practices that are instrumental to the success of their businesses.

She is one of 24 Australian primary producers and managers from a diverse range of backgrounds and with interest in a broad range of study topics who have been awarded Nuffield Scholarships for 2018, showcasing the depth and breadth of Australian agriculture.

The 2018 Nuffield Scholars will undertake research and visit leading enterprises and agri-

businesses within their respective industries across the globe, using a $30 000 bursary for a 16-week program of both group and individual travel.

Scholarship winners were announced in September at the annual awards dinner, as part of the Nuffield Australia National Conference in Darwin, where hundreds of delegates from the agricultural supply chain gathered to network and hear the latest research findings from the 2016 returning scholar year group.

This next wave of scholars takes the total Nuffield alumni to more than 420, and represent a diverse mix of Australian industries including chicken meat, cotton, dairy, fisheries, horticulture, grains, livestock and wool.

They will explore a wide range of study topics, including multi-peril crop insurance in variable climates, a data collection program to collate fishing data, automation in the horticultural industry and strengthening the business acumen of family-owned northern beef enterprises.

Shannon Notter.

After returning from their global study tours, each scholar will share their new insights and knowledge with other producers and stakeholders in their industries and communities.

Nuffield chief executive officer Jodie Dean said the scholarships had helped to build the capacity of young leaders within Australia’s food and fibre industries for more than 67 years, positioning them at the forefront of best practice and innovation.

DAIRY NEWS AUSTRALIA OCTOBER 2017

WEST VIC REGION // 9 supplementary grain rations for pasture-based dairy cattle during each season of the year that can be fed in the dairy to increase milk production by complementing the nutrition the cows receive from pasture.

The diets will be formulated using nutrition model CPM Dairy, and during Ms Douglas’ PhD this model will be used to formulate optimal grain rations for use in pasture-based systems.

“The model will be evaluated by undertaking grazing experiments and using the nutritive characteristics of perennial rye-grass during each season to formulate supplementary grain rations,” she said.

“These grazing experiments will be conducted at Ellinbank using the rye-grass data from Gippsland.

“If the model is able to successfully formulate a ration for grazing dairy cows in Gippsland when compared to the results of the grazing experiment, then it could be applied to farms in northern and south-western Victoria where the perennial rye-grass data will be known.”

To evaluate the model, two grazing experiments have been conducted at Ellinbank, one in late spring and one in autumn.

Four supplementary grain diets fed in the dairy during milking were tested: a control diet consisting of wheat and barley; a formulated grain mix used in previous grazing research at Ellinbank, which consisted of wheat, barley, maize grain and canola meal; and two “designer grain mix” diets, which were formulated using CPM Dairy.

“The first mix consisted of the same ingredients as the formulated grain mix, however

the purpose of this grain mix was to provide nutrients that complemented those that the cows were receiving from the pasture in order to optimise milk production, therefore the amounts of each ingredient were in different proportions to the formulated grain mix,” Ms Douglas said.

“The second mix consisted of wheat, barley, maize grain and replaced canola meal with urea

and a fat supplement to determine whether the observed responses to feeding canola meal were due to some intrinsic feature of canola meal, or whether a similar outcome could be achieved using similar nutrients from different sources.”

Measurements taken during the experiments included milk production, body weight and condition score, rumen pH measurements as well as total dry matter intake of both pasture and grain.

Ms Douglas said results from the late spring grazing experiment demonstrated that cows could achieve a similar milk yield when fed a designer grain mix with half the amount of canola meal as the formulated grain mix.

“This work has shown that knowing the nutritive characteristics of perennial rye-grass in late spring can assist in formulating grain rations to optimise milk production.”

Research scientist Meaghan Douglas is developing grain rations that will help lift profitability.

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Ellinbank farm manager Greg Morris.

DAIRY NEWS AUSTRALIA OCTOBER 2017

10 // WEST VIC REGION

Get smart and save nutrients KEEPING NUTRIENTS on-farm makes good financial and environmental sense.

Nutrients are derived from brought-in materials, including fertiliser and purchased feeds, as well as through nitrogen fixation by clovers in the pasture.

Excess nutrients lost from a dairy farm system literally equates to money down the drain. This culminates in reduced profitability through lower yields and higher fertiliser needs, while also having a negative impact on the environment.

Dairy farming businesses in south-west Victoria will have the opportunity to strengthen their understanding of efficient nutrient use through a series of new Fert$mart courses. The courses encompass the Australian dairy industry’s national nutrient management framework, which was developed to improve whole-farm nutrient management.

WestVic Dairy, with the support of local catchment management authorities, will deliver the Fert$mart training, teaching farmers the latest science and knowledge on effective soil, nutrient and fertiliser management.

Fert$mart uses the ‘4Rs’ concept — applying the Right source of nutrients in the Right place, at the Right rate and Right time — to meet plant requirements and optimise production.

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pleted a Fert$mart course in Koroit, which received financial support from the Glenelg Hopkins Catchment Management Authority.

The workshops were delivered by Dairy Australia land, water and carbon technical specialist Graeme Ward, HEC Consulting independent consultant Hugh Crockford and Agriculture Victoria dairy extension officer Rachael Campbell.

“Fertilisers account for a high percentage of farm variable costs.”

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Each farm business received partially subsidised soil testing and a property-specific, wholefarm nutrient management plan. Detailed farm maps showed soil nutrient status and soil type across farm management zones. Soil fertility trends, nutrient requirements and budgeting were also part of the plans.

The next round of Fert$mart, supported by the Corangamite Catchment Management Authority, will be held in late October with dates to be confirmed. It is open to dairy businesses in the Gellibrand River catchment.

Three courses are also planned for 2018. One for dairy businesses in the Curdies River catchment and two for dairy farmers in the GlenelgHopkins catchments.

Mr Ward said substantial savings could be made through more efficient nutrient use, along with environmental benefits, by keeping nutrients out of waterways.

“Fertilisers account for a high percentage of farm variable costs,” he said.

“Fert$mart provides a win-win approach whereby dairy businesses are given the tools to plan and account for the recycling and redistribution of nutrients within the dairy enterprise, and to minimise direct losses by locking up or re-using excess nutrients particularly in areas prone to environmental losses.”

Topics covered at a Fert$mart workshop include plant growth requirements, soil characteristics and limiting soil factors. It also outlines the role, types and analysis of fertilisers, soil testing, nutrient budgeting, yield responses and capital inputs.

Places for the Gellibrand Fert$mart course are limited to 12 farming businesses, with more than one person per business encouraged to attend. Participants will receive partially subsidised soil tests and a comprehensive nutrient management plan prepared by an accredited farm consultant.

Financial incentives are also available for onfarm improvements that support a reduction in nutrient run-off and improved productivity through a partnership between CCMA, WestVic Dairy, Agriculture Victoria and Landcare. Participating businesses will also receive an effluent management plan including free effluent testing to guide effluent use.

To register interest in the Fert$mart courses or for further information, phone WestVic Dairy on 5557 1000 or email: debbie@westvicdairy.com.au

DAIRY NEWS AUSTRALIA OCTOBER 2017

WEST VIC REGION // 11

Isaac and Michelle Johnstone.

Staff embrace management change STEPHEN COOKE

A RESTRUCTURED management approach that has put more onus on staff is paying dividends for farm managers Isaac and Michelle Johnstone.

The Johnstones, who were named Employer of the Year at the WestVic Dairy Great South West Dairy Awards this year, have seven fulltime staff who now report directly to them.

When their former second-in-charge accepted a manager’s role on another farm 12 months ago, the Johnstones made the decision to remove that second layer of management.

Each staff member now has an area of responsibility. Management has been divided into: pastures, young stock, farm maintenance (fencing), machinery, herd (animal husbandry) and inventory. These areas also overlap to a degree. For example, responsibilities for pas-

Employee Alex Keane.

ture will overlap with the area of managing young stock, and vice versa.

Since the removal of the 2IC role, the Johnstones have noticed a change in employee attitude, to the benefit of the farm.

“It gets them thinking more about the business and challenges them,” Mr Johnstone said.

“If it’s a good idea and will improve the business, we’ll make the change.”

“Our employees can now make decisions and apply them. Our milker said we could milk five cows an hour less but milking would be finished 25 minutes faster. He made that change without coming to us.

“Farming is a technical business and with farms and herds getting bigger, we want them to be right across it.”

Employees report to the Johnstones directly, advocating suggested management changes, as well as providing an update at a regular farm meeting.

“If it’s a good idea and will improve the business, we’ll make the change,” Mr Johnstone said.

“Sometimes the idea isn’t made because it would have an influence on another area of the farm, but we discuss this and it helps provide a broader overview of the business.”

They plan to give each employee two years in each role before reassessing.

Judges at the South West Dairy Awards said the Johnstones had created an “efficient and well-oiled team”.

Not only have they “created a good system of communication, allowing input from the employees”, but they “have a strong emphasis on ensuring compliance and safety in their farm business”.

The team milks 1000 cattle and runs 300

replacement heifers a year on the 600 ha farm, which the Johnstones have managed for 12 years.

Mr Johnstone, originally from a beef farm, first managed a farm in Wangoon at the age of 21, managing four staff who were all older than him.

Ann and the late Graeme Adams offered him the chance to manage the 750-cow farm.

“I’ve always been a good people person and communication is the key,” Mr Johnstone said.

“If you keep communicating, you’ll get through life a lot better.”

The Johnstones emphasise to their employees that there’s never a dumb question and ensure ongoing education opportunities. This includes courses through RIST (Rural Industries Skill Training) in Warrnambool and the Dairy Australia Target 10 programs. They also conduct onfarm training days, utilising the knowledge of a local vet or consultant.

Wages are based on the People in Dairy website with employees paid a set hourly rate, with four weeks annual paid leave, sick days and an incentive scheme. Each employee receives a share of $40 for every day of quality milk, which can add up to $3000 each for the year.

“We benchmark ourselves against industry and think we’ve got it right. We have the balance right and guys get time off when quiet,” Mr Johnstone said.

“We have people ring all the time, wanting to work, and currently have two brothers, and their father working with us.”

The Johnstones said it was critical to be aware of industry changes in such a dynamic industry.

“We’re aware of employment changes, including tax changes, and it’s important to maintain a good rapport with service providers, particularly grain and hay suppliers. If there’s a grain hike coming, it has a big impact on the bottom line so it’s crucial to know.”

DAIRY NEWS AUSTRALIA OCTOBER 2017

12 // WEST VIC INNOVATION DAY

Catherine Russell, from Bega Cheese, caught up with Sophie Aldridge, from Timboon, at the Innovation Day.

A VIEW FROM ABOVE Not many farmers are surveying their pastures from the sky at the moment, but that could be about to change.

A session at WestVic Dairy’s Innovation Day in Warrnambool on September 27 has shown how farmers could benefit from taking an aerial view of their paddocks, with predictions that drones will become more common.

AgVic researcher Andrew Phelan said not a huge percentage of farmers use drones, but he expects that to change.

“Absolutely they will increase; there’s a space for it,” Mr Phelan said.

However, he warned dairy farmers not to rush into buying a drone until they knew how they would use them and to check regulations.

“Farmers need to get their information right and make sure they research what it is they’re chasing,” he said. “Rather than putting the cart before the horse and say ‘I’ve got a drone; what will I use it for?’ they need to have a purpose before they buy it.”

Mr Phelan is part of the Dairy Bio team researching the use of GPS to strategically plant rye-grass varieties across the Agriculture Victoria Hamilton research centre.

The drones capture precise plant biomass measurements for each plant, in a flyover that only takes around 14 minutes

Cameron Penny, from Ridley, and Kirkstall farmer Xavier Parkinson at the Innovation Day at Warrnambool.

but captures 800 photos, but Mr Phelan said farmers won’t need that kind of accuracy.

“What we’re doing is very specific and high resolution, whereas a farmer doesn’t need to see 2–3 cm accuracy, he just wants to see what’s happening in his paddock,” he said.

Mr Phelan said getting an aerial view could be beneficial for pasture management and planning.

“Drones can pick up basic things that you couldn’t see from the ground,” he said.

“You still need to get on the ground to look at things but it tells a better story if you have another perspective.”

Mr Phelan said the quick development of the technology would make drones

more useful and practical for farmers.

“Every time you turn around there’s something new on the market.”

He advised farmers wanting to use drones to first check Civil Aviation Safety Authority regulations.

Andrew Phelan with one of the unmanned aerial vehicles.

Peter Musson with son Luke

Benchmarking your way to success Meet the 2017 Farm Business Managers of the Year, Fiona and Peter Musson, to hear their story and how they approach farm business management. The Mussons will be joined by local farm consultant Angus Drummond to discuss their use of DairyBase, budgets and how they have created a long term plan for their farm business.

Topics include: - Benchmarking and use of Dairybase - Dairy Farm Monitor Project - Feedbase Management - Business planning - Building a good team - Sustainable farming practices

WHEN: Friday 17th November TIME: 10.30am - 2.30pm WHERE: Peter and Fiona Musson’s Farm 274 Macarthur Cemetery Road, Macarthur RSVP to WestVic Dairy on (03) 5557 1000 email amanda@westvicdairy.com.au This event is sponsored by the Gardiner Dairy Foundation as part of the 2017 Great South West Dairy Awards Field Days.

DAIRY NEWS AUSTRALIA OCTOBER 2017

WEST VIC INNOVATION DAY // 13

Renee Whitehead, Andrea Vallance and Simone Renyard caught up for a chat.

Catherine Campbell and daughter Sarah (right) with Bernie Baxter at the Warrnambool innovation Day.

Costly tractor a smart investment SPENDING $12 000 extra to buy a “smart” tractor has been a good investment for Heywood dairy farmer Michael Hawker.

With a predicted three-year payback period, fertiliser efficiencies, time savings and pasture improvements, the technology is transforming the farm.

“There was about $12 000 difference between the basic model and the top end,” Mr Hawker said.

“Over the life of the tractor and the amount of fertiliser we’ll spread, that’s a good investment.”

Mr Hawker, presenting at WestVic Dairy’s Innovation Day in Warrnambool in September, said he could now cover up to 42 metres with urea.

“It equates to about 15–20 per cent saving in fertiliser use by eliminating overlap,” he said.

The spreader has weight cells to constantly calibrate the output to make sure the right amount of fertiliser is going out.

The tractor speed also adjusts to paddock conditions. “It’s all automated,” Mr Hawker said.

“When I do the first lap of the paddock it gives me the boundary and then the machine turns itself on and off for the rest of the paddock.”

“It’s hands-free; all I do is turn it around at the end of the paddock.”

The spread system runs through the tractor’s GPS auto steer which holds a straight line and creates further savings.

“I’m running a subscription service which allows 6 cm of accuracy deviation. It’s good enough that I can run a seed drill at night; if I get out with a torch I can see the wheel marks are running straight on top of each other.

“It cuts down on overlap — we save about 10 per cent of seed and fertiliser doing it with GPS

as opposed to doing it by eye.”

The GPS also allows night work. “It’s opened up the hours in the day we can do these things; the downside is I tend to be in the tractor a bit more after hours,” Mr Hawker said.

Communication between the GPS and the spreader is through ISOBUS. “The good thing is there’s one controller in the tractor that can control any number of implements as long as they’re ISOBUS compatible,” Mr Hawker said.

The technology is easy to use. “You could do it after 10 or 15 minutes in the tractor.”

Mr Hawker is looking to upgrade the farm’s spray unit to take advantage of new technology, and is looking to the commercial release of sensing technologies for variable rate applications based on nutrient requirements of pastures.

During the presentation dairy consultant Hugh Crockford highlighted financial benefits of “smart” tractors and Agrimac and Topcon showcased innovations available for tractors.

Kym Matthew from Murray Goulburn Co-op and Glenn Wright from Daviesway were at the Innovation Day.

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Michael Hawker.

DAIRY NEWS AUSTRALIA OCTOBER 2017

14 // WEST VIC REGION

Seasonal conditions and farmer resilience lift profit increased to $1.16/kg MS from $0.18/kg MS recorded in 2015–16. In 2016–17 the south-west average return on assets was 4.2 per cent (see graph). This was an improvement on the previous year and similar to the 11-year regional average of 4.2 per cent.

Expectations for the 2017–18 season are opti-

mistic, with the majority of farmers predicting an improvement in farm business returns. Sixtyseven farmers (89 per cent of all Victorian participants) predicted their business returns will improve in 2017–18. This is notably different to the less optimistic expectations recorded in 2015–16.

Copies of the Dairy Farm Monitor Victoria annual report are available for download at: agriculture.vic.gov.au/dairyfarmmonitor or dairyaustralia.com.au/dairyfarmmonitor • By Sam Henty, farm business economist, Agriculture Victoria $9.00

12%

$8.00 $7.00 8%

$6.00 $5.00

6%

$4.00 $3.00

4%

$2.00

Milk price ($/kgMS, in 2016-17 dollars)

10%

Return on assests (%)

2% $1.00 $0.00

Return on assests (left axis)

16-17

15-16

14-15

13-14

12-13

11-12

10-11

09-10

08-09

07-08

0% 06-07

THE RESULTS of the annual Dairy Farm Monitor survey of the state’s dairy farms, funded by Agriculture Victoria and Dairy Australia, have been released.

The 2016–17 Dairy Farm Monitor report shows low milk prices in Victoria’s three major dairy regions put pressure on farm profit margins. Despite this, farm business performance improved slightly across the state with each region increasing average performance measures from the previous year.

For Dairy Farm Monitor participants in Victoria’s south-west, annual average milk price reduced four per cent from 2015–16 to $5.25/kg milk solids. This is the lowest average milk price (in real terms) recorded in the south-west in 11 years of the project and was similar to (but less than) the average price received by south-west farms in 2009–10 (see graph).

South-west participants were able to offset the low milk price by spending less on purchased feed costs than in 2015–16. This reduction was due to lower amounts of fodder and concentrates purchased at lower prices.

With more home grown-feed available, farmers were able to rely less on purchased concentrates and fodder as supplementary feed sources. Farmers took advantage of favourable growing conditions and increased grazed pasture consumption and conserved feed inventory amounts from 2015–16 levels. This saw a 71 per cent decrease in fodder purchases.

All south-west participants achieved positive earnings before interest and tax (EBIT) in 2016–17. The regional average EBIT/kg MS

Milk Price (right axis)

South-west Victorian dairy farmers’ average return on assets and milk price between 2006-07 and 2016-17.

Supply chain revolution under way THE SOUTHERN Australian dairy industry is in the midst of a ‘supply chain revolution’, with unprecedented change to the way milk is procured, priced and processed, according to a justreleased industry report.

The Australian Dairy Supply Chain: The Great Reset, a report by agribusiness banking specialist Rabobank, said these transformative changes had been instigated by a number of major events, which had caused significant tension right along the dairy supply chain.

The report said three key events had been primarily responsible for driving this change — a drop in national milk production to a 20-year low, the internal challenges facing Australia’s largest dairy co-operative and the reset in farm gate milk prices to better align with global markets.

“To have so many changes in such a short timeframe is unprecedented and there is no doubt Australia’s dairy supply chain will emerge from all of this looking vastly different and almost unrecognisable,” report author and Rabobank senior dairy analyst Michael Harvey said.

While this sector transformation was leading to short-term uncertainty and potential business

disruption for dairy farmers, Mr Harvey said it would present opportunities for some dairy farm businesses — particularly around choice to supply new markets and more commercially attractive supply contracts. However, the report cautioned that farmers needed to thoroughly assess these opportunities, and associated risks, before taking action.

“To have so many changes in such a short time frame is unprecedented and there is no doubt Australia’s dairy supply chain will emerge from all of this looking vastly different and almost unrecognisable.”

The report said the fall in milk production, along with the anticipated slow rebuild, was set to see competition for milk among processors remain fierce — changing the way milk is pro-

cured in Australia’s southern dairy region.

“While milk supply is down across all dairy regions and is at its lowest level in two decades, northern Victoria has experienced the most significant drop, accounting for 50 per cent of this decline,” Mr Harvey said.

He said Rabobank was forecasting a small bounce in Australian milk supply in the 2017–18 season, in the vicinity of 2.5 per cent. And in the medium-term, milk supply was expected to grow by a modest 1.8 per cent a year.

“Based on this forecast, and assuming no major market or atypical climatic disruptions, national milk production is not expected to surpass the 10 billion litre mark again until 2020–21.

“This will see processors continue to scramble for milk and adopt aggressive milk-supply programs as they try to recruit milk and minimise excess capacity.

“We are also seeing a breakdown in loyalty between dairy farmers and processors, with farmers now more willing to move processors, which is having repercussions across the supply chain.”

Mr Harvey said Australia’s largest processor,

Michael Harvey is the author of a new Rabobank report on the dairy industry.

Murray Goulburn, had faced the most significant contraction in milk supply, challenging the role of the co-operative as the lead for price discovery and benchmarking in southern Australia.

“While Murray Goulburn is on a journey to turn around its business, and a successful turnaround could see the return of ‘co-operative principles’ as the benchmark for setting milk prices — the reality is that this is years away and a new method of price discovery will need to emerge.”

He said this was an issue for the entire dairy industry, because if Murray Goulburn isn’t setting the price, then who is?

“It is important the industry establishes, and knows, who is setting the benchmark milk price, as dairy farmers will now be operating in a more commercially oriented and flexible market for their milk.”

DAIRY NEWS AUSTRALIA OCTOBER 2017

WEST VIC REGION // 15

Diary dates November

Financing young farmers’ futures

Industry Update Hear about the latest industry situation and the Dairy Farm Monitor Project results for 2017–17.

Tuesday, November 2, Colac (venue TBC) Business Breakfast Hear about the latest industry situation and the Dairy Farm Monitor Project results for 2017–17.

Friday, November 3, City Memorial Bowls Club Warrnambool WestVic Dairy Farm Business Fundamentals Three-day farm business management course using DairyBase.

Monday, November 13 & 20 & December 11, Heywood WestVic Dairy COCO – Cups On, Cups Off Two-day course design to achieve best practice in milking and detection, treatment and prevention of mastitis.

Tuesday, November 14 & 21, Colac

WESTVIC DAIRY Young Dairy Network and

the UDV recently hosted three information sessions on farm financing in Timboon, Colac and Koroit.

These ‘Financing Your Farming Future’ sessions focused on providing information on various pathways into dairy farming, as well as possible pathways to transitioning into retirement or taking a step back.

As part of the presentations, Ron Semmens from Rural Bank spoke on finance options and how to prepare business documents to meet the criteria.

Sam Marwood from Cultivate Farms talked about his passion for providing a service that connects aspiring and retiring farmers with the aim to re-vitalise regional Victoria.

Dairy consultant Chris Hibburt provided

different scenarios on how pathways may be achieved and how to manage some of the risks.

Michelle Muir spoke about the options that are available to farmers such as vendor finance, shared equity, sharefarming and leasing.

Feedback from the event indicated that many participants were trying to find ways into dairying. One farmer responded that his goal was “to own and run a farm for (his) kids one day and to enjoy the farm life” with the biggest risk being “getting into big financial trouble”.

Engaging aspiring, as well as retiring, farmers in the same forum is one step forward to connecting people within the industry and provide opportunities for succession planning.

WestVic Dairy values the feedback received and it will be valuable to provide further workshops and information sessions on financial pathways.

WestVic Dairy thanked Lauren Peterson and the UDV’s Alison Lee for their support and help in generating such an engaging event. Thanks were also given to Rural Bank and Fonterra for sponsoring the WestVic Dairy Young Dairy Network and allowing for such events to continue.

• By Heidi Van Es, WestVic Dairy Young Dairy Network regional extension officer

WestVic Dairy Dairy Sage This program assists people from across the dairy industry to establish and formalise meaningful and rewarding mentoring partnerships.

Tuesday, November 14 & Wednesday November 15 Venue TBC WestVic Dairy

Maximum efficiency, Maximum profit!

Benchmarking your way to success Join Peter and Fiona Musson to hear about their approach to farm business management and creating a long term plan for their business.

Friday, November 17, Macarthur WestVic Dairy Great South West Dairy Awards - Employer of the Year field day Hear from Isaac Johnstone and learn about best practice for recruitment and retention of farm employees.

Wednesday, November 28, Grassmere WestVic Dairy

December These self cleaning Hay Feeders are built for Australian Dairy Farmers and Beef Producers

Employment Basics Learn the basics of employing people on your farm, including different set ups and legal obligations.

Tuesday, December 14, Koroit

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To express interest or RSVP to any events unless otherwise stated please phone Amanda on 5557 1000 or email amanda@westvicdairy.com.au

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