Dairy News Australia - February 2019

Pasture improvement feature PAGES 21–29 CODE DEBATE PAGE 8

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

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NEWS // 3 EDITH CREEK FACTORY COULD BE PRODUCING AGAIN SOON

Free Get-away for a Dairy News Australia reader. PG.07

Tough times impact national production NATIONAL MILK production is continu-

Infant formula rationing. PG.04

Pasture improvement feature. PG.21

NEWS �����������������������������������������������������3–19 OPINION ����������������������������������������������������� 6 PASTURE IMPROVEMENTS �� 21–28 MARKETS ������������������������������������������������ 29 MANAGEMENT ������������������������������30–31 ANIMAL HEALTH ������������������������� 33–34 MACHINERY & PRODUCTS �������������������������������������35–38

ing to fall, as tough conditions take their toll.

Northern Victoria has taken the biggest hit, with a 20 per cent drop recorded in November compared to the same time in 2017.

Dairy Australia figures show a trend of shrinking production in the region, which has seen a reduction of more than 113 million litres.

Dairy Australia analyst John Droppert said the results would not have been surprising to anyone working in the industry.

“It’s been a very dry spring and although the milk price is quite high, historically, that’s had to contend with high hay prices and dry weather, and high water prices,” Mr Droppert said.

“There’s a huge amount of cost being added and that’s led to many dairy farmers reducing their stocking and feeding rates and a number ultimately exiting the industry.”

Although Mr Droppert said the figures had been slightly inflated due to the strong year experienced last year, he ultimately expects the trend to continue.

“This is the time people start making those tough decisions and we wait and see whether

there’s going to be an autumn break and people have had to make tough decisions.”

The national decrease for the year to the end of November was about 4.8 per cent.

Girgarre dairy farmer Tim Leahy said he had seen the impacts of dry conditions and high inputs as his cows make it through the dairy.

“Farmers will do their sums over the next few weeks and months and probably have to make some decisions,” Mr Leahy said.

“Farmers will sell their cows before they let them starve.”

Tatura farmer Michael Tuhan pointed to the number of herd auctions in recent months as evidence of the milk production loss.

He is looking to increase his production but said he had the benefit of a secured highreliability water allocation.

While prices have picked up this season, input costs have risen as well. Mr Tuhan is disappointed that the apparent shortage of milk hasn’t translated into higher prices yet.

However, he is aware that processors dealing with lower milk volumes will have poorer efficiencies in their plants.

After more than a year of laying idle, it looks like the former Murray Goulburn factory at Edith Creek in Tasmania will start producing dairy products.

The factory was sold by Murray Goulburn to an international business based in Thailand, Dutch Mill, in 2017 with a promise that it would re-open.

However local people and the dairy community have been wondering what has been happening.

Factory manager Bradley Williams said some trial production runs had been carried out and the hope was that commercial production could start soon. He said the factory had achieved all the relevant licence requirements for domestic and export production.

“We’ve been doing some commercial runs under test controls at the moment and we believe the operation will be successful.”

While there will be jobs available, there might be a longer wait for dairy farmers wanting to supply.

Mr Williams said in the short term there was unlikely to be any need for direct supply to the factory.

The factory is expected to be producing liquid UHT milk and other dairy products.

Australian Workers Union industrial organiser Jill Batt expressed disappointment that it was taking so long to get the factory back into production, when there had been forecasts that it would be up and running last year.

“It’s been a long time for the Smithton community.”

She said they were looking forward to engaging the company in enterprise bargaining discussions.

Mr Williams acknowledged that for some new staff there would have to be upskilling and retraining, as the former employees were no longer available.

Dutch Mill owns six dairy farms in the north-west region of Tasmania.

Edith Creek was sold by Murray Goulburn at the same time it closed down its Rochester and Kiewa plants.

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4 // NEWS

100th Is s u e ue th ss 100 I

Formula shortage a myth THERE MAY be empty supermarket shelves and rationing, but processors say there is no problem with baby formula supply.

With an estimated value of $600 million, the Australian-made infant formula market has proved a lucrative one for ‘daigou’ shoppers, people who purchase the product in Australia before selling the tins at a significant premium in China.

Yet dairy processing company Freedom Foods, who makes Australia’s Own Diamond pro+ infant formula, said Australian parents should not be subjected to “scare campaigns”.

“There is enough supply for Australian mothers as well as exports to China,” group general manager of nutrition Sonja Kukuljan said.

“To suggest otherwise is irresponsible. It’s about time everyone involved in baby formula production and retailing acknowledges the idea of a shortage is a myth that just so happens to have marketing benefits.”

Dr Kukuljan said there should not be extended issues with supply.

“If there are, perhaps the individual infant formula manufacturers facing such hiccups need to review their historical trend analysis and production schedules to better manage the demand and supply cycles.

“In the short term, families can vote with their

feet and choose premium infant formula brands which are produced and marketed specifically for the domestic market, to make sure their supply is guaranteed.

“Australia’s Own closely monitors its historical sales data to inform its production schedules, and mitigate any possible supply issues, because we understand that making infant formula in a way that guarantees supply is critical for families.

Anything less is unacceptable.”

Infant formula has been a driver for a number of company’s success, particularly the a2 Milk Company which has seen profits skyrocket as a result of their formula a2 Platinum.

The brand is highly sought after overseas and regularly sold out in Australian supermarkets, and now available via cross border e-commerce platforms and in more than 10 000 “Mother and Baby” stores in China or on domestic e-commerce sites.

A2 Asia Pacific chief executive Peter Nathan said the signs on supermarket shelves were indicative of the strong demand for the product, however he said there was no shortage of milk formula across the board.

“I dare say that if you went into a supermarket in Shepparton (northern Victoria) you would be able to find milk formula, but you may not find a

certain type,” Mr Nathan said.

“There are only a couple of brands which are experiencing very high levels of demand. The A2 platinum is drawing very strong demand in China.”

The reasons included memories of the melamine contamination about 10 years ago, a suspicion of the domestic Chinese market, and Australia’s reputation as having very high food standards.

Mr Nathan said the company had taken action to reassure Australian parents they would never be short of their A2 platinum brand powder, by offering on-line, direct deliveries of the product.

drier than average, while the mean maximum and minimum temperatures were above average across the year.

Rainfall in Victoria during 2018 was about 25 per cent below average, the lowest since 2006.

Victoria’s mean temperature was 1.14°C above average, making it the third-warmest year on record.

The NSW Department of Primary Industries expects drought conditions in NSW will continue in to 2019.

NSW DPI climate applications and digital agriculture leader Dr Anthony Clark said large parts of western and central NSW remained in the ‘Drought’ or ‘Intense Drought’ categories of the NSW monitoring framework, despite some isolated storms throughout December.

“While some parts of the state received scattered storm activity leading up to the new year, this hasn’t been sustained enough to allow for

Although the ‘grey market’ for infant formula may be thriving, it’s not all bad news according to one economist, who says the product has enormous potential to lift the Australian dairy industry.

NAB agribusiness economist Phin Ziebell said demand for Australian infant formula had been “very strong” for a number of years as a result of the melamine contamination scare in Chinese product more than 10 years ago.

“The dairy industry could see more success in exporting to markets with those high wealth consumers where there is a lot of demand for quality product overseas,” Mr Ziebell said.

Consumers are reminded to not purchase more than two cans of infant formula at a time, or told their favourite brand is out of stock.

Temperatures up while rain tallies fall NSW HAS recorded its warmest year on record as Victoria and the country as a whole sweltered through their third-warmest year on record.

The Bureau of Meteorology’s annual climate statement for 2018 said Australia’s 2018 annual mean temperature was 1.14°C above average, while the mean annual maximum and minimum temperatures were above average for all states and the Northern Territory.

While 2018 was the warmest year on record for NSW for both mean temperature (1.68°C above average) and mean maximum temperature, the mean minimum temperature was the state’s fourth-warmest on record.

BoM said NSW was dominated by very dry conditions, with the third-driest January to September on record and the sixth-lowest annual rainfall on record; its driest year since 2002.

Victoria also saw below-average rainfall last year, with all months except December being

NUTRITIONAL DEMAND SHOWS EXPORT GAP

significant pasture or crop production,” he said.

“That means there has been very minimal opportunity for dryland summer cropping, and there are very low levels of ground cover so farmers have had to continue feeding their livestock.”

Data from a NSW farm dam survey has underlined how critical conditions have become in some areas, particularly in western NSW. “In this part of NSW, the nature of the drought event has shifted such that farmers and communities are not just managing an agronomic event (low primary production), but the hydrological impact is evident with critically low water reserves,” Dr Clark said.

BoM’s outlook for January to March indicates a drier than average three months for eastern Australia, while warmer than average days and nights are likely for almost all of Australia

Mr Ziebell said demand for Australian infant formula had been “very strong” for a number of years and it was a “tough thing” to balance production and increasing demand.

“The dairy industry could see more success in exporting to markets with those high wealth consumers where there is a lot of demand for quality product overseas,” he said.

Although recent trade talks have opened more doors to Australian producers in China, Mr Ziebell acknowledged there was more work to be done to get more Australian product into the hands of Chinese consumers.

Analysis of the Chinese market by international data and consultancy groups reveals that Chinese consumers are incredibly brand loyal when it comes to brands of infant formula, a fact that has allowed many companies to cash in on the lucrative overseas market.

Skyrocketing sales in China and booming baby formula sales saw The a2 Milk Company’s 2016–17 profits triple to $82 million in after tax profit in the past financial year, including a jump of more than 130 per cent in revenue from China and Asia.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

NEWS // 5

Farmers find greener pastures in Tassie FOR YEARS, Kiwis have been crossing the

Tasman to try their hand at Australian dairy farming, now there are a few Victorians who have decided to cross Bass Strait for greener pastures in Tasmania.

They may be partly responsible for Tasmania bucking the national trend in milk supply – Tassie has increased its milk production in the last year while the mainland figures have been reducing.

Adam Waasdorp moved from northern Victoria two years ago to Gawler near Ulverstone in Tasmania and hasn’t regretted the move.

He’s milking just 130 cows, but has expanded his farming to include growing potatoes, poppies and pyrethrum.

DairyTas regional manager Jonathan Price said there was a significant increase in the number of corporate farm purchases in Tasmania in the last 18 months.

Tasmania’s milk supply had increased by 9.5 per cent in the last financial year and so far this year, production was up by about four per cent.

He put the interest in Tasmanian farming down to the natural climate and lost cost of production, coupled with the advantages of a

pasture-based system.

Adam was born and grew up in the Waaia district north west of Shepparton and farmed for more than 20 years, eventually getting his own property, but the weather and the water issues wore him down.

"We had enough water, with the groundwater and we owned permanent water; but the fees were just excessive."

Water politics also played a part in his decision to move.

He said while farmers paid to maintain the irrigation system, investors could own water and contribute less.

"It was just getting worse and worse,” Adam said.

"And the weather could be extreme; from minimum temperatures to what you are getting up there (Goulburn Valley) at the moment,” he said, referring to the series of 40-plus days experienced in January.

"Here, not far from the coast, it’s a little more constant.

"And it seems that there were little choices; it was be a dairy farmer, beef farmer or grain farmer."

His venture into potato growing has paid off and he notes the 16ha in spuds has earned him a better return in one season than his dairy operation.

On the volcanic soil and with good spring rains, he can make hay and silage right up to Christmas.

Adam moved over about 100 cows and some basic machinery and he admits it was expensive, but not as costly as some people might think.

"I'd call it short-term pain, for long-term gain,'' he said.

But it rains on at least 100 days of the year on average in northern Tasmania and Adam has decided he is not milking the cows through winter.

Just over the ranges, it snows in winter.

A November scene on a Tasmanian farm. It’s wetter and colder than the mainland, but some farmers are enjoying the longer growing season. According to Dairy Australia, Tasmanian farmers surveyed in 2018 were the most likely to be positive in the industry’s future, › Compared to 2015-16, a significantly higher proportion of Dairy Tas respondents made a profit in 2016-17 . The average age of a Tasmanian farmer is among the lowest of all states.

Adam Waasdorp

WATER LURES FAMILY BACK TO TASMANIA The last week in January was an average one for Tasmanian dairy farmer Damien Carpenter; he had just finished making hay, was preparing to harvest his vegetables and was getting ready for calving in February.

About four years ago Damien, his wife Natalie and their two boys moved back to a Tasmanian farm after spending 18 years in northern Victoria.

“We got together for a Christmas Eve celebration and there were about eight of us who had moved down to Tassie,” Damien said.

They have returned to a high rainfall area in northern Tasmania just a few kilometres from the coast, where they use spray irrigation to supplement the natural rainfall and grow a wide variety of crops, including potatoes.

Damien is enjoying an extended growing season and lower production costs. The downside is higher land prices, wet winters and the wind.

Damien grew up in northern Tasmania with a farming family but started work as an agronomist. When he first entered the industry the wages for agronomists were tiny in Tasmania so he and Natalie moved to northern Victoria where he worked until they could buy their own farm in 2005.

They bought a rundown property of about 160 ha without water on the Broken River near Numurkah, starting off with about 180 cows.

Although they made progress in the

business, water prices were a constant issue in the background, and with a dry season looming in 2015, they made the decision to move to Tasmania.

Many more farmers were operating without holding permanent water and Damien could see change coming.

“I thought this is just not sustainable, so we decided to move before our operating costs started eating into our equity,” he said.

“No matter what the milk price is, the costs of production were still too high.

“I could see where the hay and grain and water prices were going. And it seemed there was always someone else prepared to pay more than me.

“We sat down with (farm adviser) Phil Shannon and did the numbers, then we moved.”

He considers the move has been worthwhile, despite the heavy costs of moving a young herd and the family dislocation.

“We still have friends in Victoria and we frequently travel back there.”

They are now farming at Cuprona, not far from Burnie, and within sight of Bass Strait on a 64 ha home property, and utilising extra leased blocks.

He has access to a community irrigation scheme based around dammed water, which costs about $163/Ml, but the scheme members are hoping it will soon drop back to about $120/Ml. Like most farmers in the region they use spray irrigators.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

6 // OPINION

100th Is s u e ue th ss 100 I

RUMINATING

EDITORIAL

Demand for infant formula needs industry response Empty shelves in the dairy aisles of our supermarkets are frustrating for farmers.

While many farmers may not find themselves in the infant formula aisles, there has been a curious phenomenon developing in recent years which mustn’t pass without comment rationing of milk powder.

The problem has been brought closer to our attention by the social media video clips, some on You Tube, which show shoppers actually wrestling with each other over sparse supplies of certain types of infant formula. Not in a third world country, or anywhere overseas. Places like Box Hill, Melbourne.

Well, you’d have to say: "That’s good, consumers fighting over our dairy products. They obviously can’t get enough."

So, have the supermarkets extended shelf space and brought in a few tonnes more?

No, mostly they have implemented rationing of purchases to two tins per customer.

The rationing signs can be seen on the shelves and in this issue of Dairy News Australia we reproduce some of the instructions which have been slapped on the shelves for more than a year.

Of course there are many explanations for the shortages, such as opportunists sending the product through the ‘grey’ channels to make a killing.

Spot buying at a few locations by shoppers who are mailing the highly sought after Australian infant milk formula direct to their network of affluent friends in China.

What must be embarrassing to the dairy industry is that ordinary consumers have found ways of getting the product into Asia that our processors have been unable to find.

In Australia we should have the benefit of a free market economy, with the usual economic levers operating: Demand for a product goes up, supply eventually responds.

Demand continues to remain strong over an extended period and the prices go up.

This is not happening in Australia.

Supermarkets, unable to handle the vagaries of the demand are simply slapping on limits to protect their regular customers, they say.

The rationing is being applied because they cannot handle the volatile demand and it is simpler and easier to maintain the status quo.

And innovative processors should be offering warehouses of the stuff to the small shoppers who have found the back-door channels.

The industry is missing an opportunity here, at a time when farmers really need all players to be working out how to get the maximum supply and price from the market.

MILKING IT...

Where’s the Aussie butter?

Water priorities

Opposition leader Bill Shorten sent out a Tweet early in February pointing out he was like many other parents, getting accustomed to the return of school.

“Back to school, means back to making school lunches,” the Tweet said.

But the social media pundits have had a field day with the picture of Bill slapping margarine onto bread and with a big jar of Aussie vegemite sitting on the kitchen bench.

In the background is a scorched kitchen wall, which looks like someone has, at some stage, had a small accident in the kitchen.

“Stop using the flame-thrower in the kitchen,” one person suggested, while another cleverly pointed out that if Shorten becomes PM: “you’ll have people who can fix stuff like that burnt patch with Photoshop”.

Others have also pointed out that the or butter going onto the bread isn’t Australian, but from New Zealand.

The spreadable organic variety is sourced from New Zealand, according to the label, but “made in Australia from 10 per cent or less Australian ingredients”, whatever that means.

Now, can’t accuse our Kiwi brethren of producing sub-standard products, because they do a good job, but it would have been nice to have some Aussie product. Devondale perhaps?

While the creeks are running dry in outback New South Wales, the government is doing its best to improve water quality- at Coogee Beach.

The New South Wales government has announced a water improvement program for the beach which will involve diverting stormwater away from Coogee.

The decision upset the Shooters Fishers and Farmers Party no end.

MP Robert Borsak had this spray for the premier: “In the week one million fish died in the Darling River, Gladys Berejiklian promised to invest millions improving water quality in, wait for it, Coogee Beach,” Mr Borsak said.

“What planet are we living on?”

“There’s brown water coming out of the taps in towns like Walgett and Menindee”.

To be fair to the Sydney-siders, the contamined quality in the past has led to gastroenteritis, with symptoms including vomiting, diarrhoea, stomach ache, nausea, headache and fever.

Advertising James MacGibbon 0409 103 745 james.macgibbon@dairynewsaustralia.com.au Editor Geoff Adams (03) 5820 3229 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 Senior journalist Alana Christensen

(03) 5820 3237

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 PO 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.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

MARKETS // 7

Dairy News marks milestone THIS MONTH Dairy News Australia cel-

ebrates its 100th edition in nine years of production.

Dairy News was purchased by the Shepparton-based McPherson Media Group in 2017 from the RNG Company, which established the publication in 2010.

New editor Geoff Adams noted there were some similar themes in the headlines of the first edition that continue to beset the industry; house brand dairy packaging, farm gate price recovery, Chinese interest in Australian dairy technology, and the Murray-Darling Basin Plan.

“However, the industry has progressed; farmers are working smarter, using more innovation, developing more diverse production systems with more efficient water delivery operations,” Mr Adams said.

“While fluctuating farm gate prices are still not sufficiently stable and input cost pressures continue to be a major issue, there are some positive signs on the horizon.

“There has been an encouraging trend towards farmers finding more diverse ways to sell their milk as suppliers express frustration with old models, so it will be interesting to see how this aspect develops in the next 10 years.”

Mr Adams said Dairy News Australia would continue to try to reflect industry concerns and also have a heavy emphasis on grassroots farm stories.

McPherson Media Group managing director Damian Trezise said the company’s acquisition was a strategic purchase in a foundational Australian industry sector which had a solid base.

“Our company has a history of involvement with rural, community driven publications, so we believe it is a natural fit, in a region which has a long dairy heritage,” Mr Trezise said.

“The McPherson family has an association with agriculture going back more than 100 years when they published the Goulburn Valley Stock and Property Journal.”

th 0 10 Is s u e

e u s h t Is 100 We’re celebrating our 100th issue of Dairy News Australia and we’d like to reward one lucky reader with a two night Melbourne escape.

For your chance to win an accommodation voucher worth up to $500, please complete the coupon to the right and mail to: DNA 100th Issue Competition, PO Box 204, Shepparton VIC 3632 OR enter online at www.dairynewsaustralia.com.au Entries close Friday 15 March, 2019, winner drawn Wednesday 20 March, 2019.

Name: _________________________________________________________ Address: ______________________________________________________ _________________________________________________________________ _________________________________________________________________ Phone: ________________________________________________________ Email: _________________________________________________________ _________________________________________________________________ In 25 words or less, tell us why you’d like a break from the farm: *For Terms & Conditions refer www.dairynewsaustralia.com.au

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Keep up to date with industry and breaking news from around the country every day. www.dairynewsaustralia.com.au

DAIRY NEWS AUSTRALIA FEBRUARY 2019

8 // NEWS

100th Is s u e ue th ss 100 I

Southern dairy farmers debate code of conduct JEANETTE SEVERS

DAIRY FARMERS in the southern milk pool are concerned about how a voluntary or mandatory code of conduct would deal with market inequities. That was the feedback at a public consultation session at Warragul in late January, where the clauses of a draft code were debated.

Department of Agriculture and Water Resources assistant secretary Jo Grainger took attendees through a number of clauses and asked for honest feedback.

She stressed the minister wanted to shape a standard contract as an industry example and legislate for transparency around processors’ prices and agreements with dairy farmers.

“On one day every year, every processor will have to post online the minimum standards of its contract and its expected minimum price,” Ms Grainger said.

But some farmers are concerned if the industry actually needs a code of conduct and encouraged Minister for Agriculture and Water Resources David Littleproud to wait until after the election, rather than rush a process.

The risk is, in trying to meet the needs of farmers in the northern milk pool, those in the southern milk pool would be disadvantaged by a compulsory code of conduct.

Ms Grainger said her department would table a report to government, from the facilitated public consultations and online survey, by the end of February. This would enable farmers’ feedback, supposedly to help shape the code, to be in front of Mr Littleproud before the government adopts caretaker mode.

Farmers at Warragul stressed the Australian dairy industry was diverse, with competition strong in some sectors; but in other states dairy farmers had only one option for selling their milk.

Ms Grainger agreed but said addressing these as separate markets would make the code too broad and, ultimately, fail in its object.

“It is clear it is not two markets — export and

domestic. It’s a diversity of markets depending on the region or state the dairy farmer is operating in,” she said.

“We are really conscious Victoria is the largest market in dairy.”

While a code is not the only option of the table, it is up to industry to lead on developing other options. The dichotomy, of course, is industry-representative bodies are funded by government; so would be acting in opposition to the preferred legislative view.

Milk swaps, step-downs and pricing were key areas for discussion.

Milk swaps were not considered a focus for the code; however, some dairy farmers felt there was a risk, by not addressing the issue, of collusion between processors.

Step-downs were outlawed in the proposed code, but created significant discussion about how they were defined.

Ms Grainger said the proposed code discharged Tier 2 milk pricing, common in the northern milk pool market.

Seasonal production was of key concern, with some farmers in the southern market relying heavily on the variations, especially shoulder pricing, to realise profit above cost of production.

UDV president Paul Mumford said rather than setting a minimum price, farmers in the northern and southern milk pools would prefer a mechanism in the system to see a rolling average true price.

Stu Griffin of Westbury said where processors did not need to compete, there was a risk of greater discretion about how much milk they took and what they paid for it.

Damian Murphy of Dumbalk North said there was a discretionary ‘creep’ factor to maintain prices at an average. He strongly supported an opening price rather than a minimum price.

“I can’t make a business decision on price unless I know I can calculate an income estimate,” he said.

“We need an opening price that relates to supply curves. We also want the milk price index that reflects the world price — that gives

dairy farmers better information to make decisions,” said Bernard Lubitz, of Leongatha North.

Lauren Finger of Darnum suggested an online income estimator would enable farmers to use an algorithm to input their costs and compare the price differentials of various processors against their production outputs.

Contract terms, variations, exclusive supply agreements, cooling off periods, three-year bonuses, daily supply agreements, the milk supply handbook and a dairy farmer’s notification rights, were also heavily debated.

Ms Grainger advised there were some processor practices that would clearly be prevented by the code, but it was up to dairy farmers to bring their concerns forward to the ACCC. “For example, a $2 variation should be prevented by the code,” she said.

However, the Corporations Act would oversight a code of conduct and some business and governance practices would need to be addressed through ASIC, ACCC or another arbitration process.

“It’s obvious to us, some milk pools in Australia are so finely balanced, that the processors show the whites of their eyes when we suggest variation that strengthens farmers’ rights,” Ms Grainger said.

“What we’re trying to do is produce a mechanism that delivers a better price. We think that

Bernard Lubitz, dairy farmer, Leongatha North: This process is not as straightforward as I think Minister Littleproud would like it to be. The code doesn’t cater for southern milk producers.

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will push competition in the market. If it looks like a race to the bottom, that appears like collusion. And you need to report that to the ACCC.” Ms Grainger encourages every dairy farmer in Australia to provide their feedback on the proposed code at haveyoursay.agriculture.gov. au/dairy-code-conduct

UDV president Paul Mumford, dairy farmer at Won Wron: There is not one mould that fits all. The southern regional milk pool is a clearly distinct region from the northern region and Western Australia — we need special requirements to protect farmers in each region. Victorian dairy farmers already have 34 regulatory authorities we need to adhere to — do we need another one?

Stu Griffin, dairy farmer, Westbury: It’s important for dairy farmers to have a view on this issue. I’m concerned about how the code mitigates risk for milk processors and dairy farmers.

Genomic testing has enabled us to take “breeding decisions resulting in our milking herd calves gaining 40% in BPI over their mothers in two years, and also identify that our higher BPI cows deliver significantly more profit.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

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100th Is s u e ue th ss 100 I

Hay ‘soaked-up’ as market hinges on autumn break

BY SIMONE SMITH

FEARS OF fodder shortages still hang over the

dairy industry with no signs of demand easing this season.

Australian Fodder Industry Association chief executive officer John McKew said new season’s fodder had been soaked-up due to a “very empty pipeline”.

He said there had been dairy farmers busy securing hay in advance, but worried what supply would be like if mother nature isn’t co-operative in the coming months.

“I’m very concerned about the outlook if we don’t get an autumn break this year that is meaningful,” he said.

“I’m very concerned with the supply and demand, about what prices might look like in April and May, we could find ourselves in a worse situation than the end of last year.”

In the middle of last month, there was little movement in hay prices across Australia with values remaining at elevated levels.

Mr McKew said demand had eased during the Christmas and new year period, with “marginal” price movements reflecting changes in local seasonal conditions.

In mid-January cereal hay traded between $250 – $330/tonne in south-west Victoria and $430 – $530/tonne on the Darling Downs in Queensland, according to Dairy Australia.

Mr McKew said “patches” of good hay yields in southern Australia hadn’t been enough to fulfil strong demand and refill empty stocks.

“What is being produced currently this harvest season is going into a very empty pipeline at the moment and it is being soaked-up,” he said.

“You can buy it (hay) but you probably won’t like the price, but (buyers) haven’t liked the price for the past six months.”

There’s been a “reasonably high degree of over-the-fence trading going on”, according to

Mr McKew. He said some dairy farmers sought to secure supply earlier rather than wait until “the 11th hour.”

Haystack fires have also been a concern in Victoria, following heavy rain which resulted in high yeast and mould levels in fodder stored outdoors.

One Victorian southern Mallee hay producer, who did not wish to be named, told Dairy News

Australia he estimated 8000–10 000 bales could have been lost to the market due to haystack fires this year.

Dairy Australia analyst John Droppert said hay markets would be volatile with a huge spread in prices reflecting the lack of information about the market and varied quality of the product available.

Small grants program to help dairy communities THE GARDINER Dairy Foundation is offering grants of up to $5000 to not-for-profit groups to strengthen small Victorian dairy communities in Gippsland, northern Victoria and southwest Victoria.

The Gardiner Dairy Foundation’s Working in Dairy Communities Small Grants program, which is delivered through the Foundation for Rural and Regional Renewal (FRRR), will provide a total of $120 000 in grant funding in 2019, an increase of $20 000 on the previous year.

The program, now in its 17th year, will assist small dairy communities to build resilience and

enhance existing community infrastructure.

Gardiner Dairy Foundation chief executive officer Clive Noble said it was important to support the wellbeing of Victorian dairy communities and their farming families.

“Successful farming communities rely on great local leadership to truly thrive. Every year we are truly inspired by the initiatives put forward by local groups,” Dr Noble said.

FRRR chief executive officer Natalie Egleton said that the Small Grants program was deliberately broad to cater for a wide variety of community projects.

“The applications come from the communities themselves, so we know that the projects are highly valued and address important local issues,” Ms Egleton said.

“In past years projects have ranged from regenerating libraries to wellbeing projects that assist men, women and children.

“The grants have helped purchase new mowers, implement education projects, refurbish halls and provide first aid resources — all manner of activities that play a role in maintaining vibrant, sustainable communities.”

Applications for the Working in Dairy

Communities Small Grants Program opened on February 5 and close on Tuesday, March 19.

Priority will be given to projects that assist in strengthening rural communities of less than $5000; build their capacity to deal with local issues or enhance existing community infrastructure.

Anyone considering applying should read the guidelines carefully.

For more information visit gardinerfoundation.com.au/ current-projects-community/#WIDCGrants

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EEX and GDT take steps towards joint venture THE EUROPEAN Energy Exchange (EEX) and Global Dairy Trade (GDT) have successfully concluded the initial consultations about the establishment of a joint venture to operate a European-based auction for European dairy products.

EEX and GDT have met with more than 50 participants of the dairy value chain; sellers and buyers across France, Germany, Ireland, the

Netherlands, Scandinavia, Switzerland, the United Kingdom, as well as buyers from Asia.

In a joint statement issued by the two companies, they said following the completion of the market consultation and initial evaluations with potential IT partners, EEX and GDT will enter the next phase of the project to further develop the scope of possible services, obtain commitments

from potential customers, validate commercial viability and agree on a partnership arrangement between EEX and GDT. “Final decisions by both partners on the initiative are expected by mid-2019. If positive, the first auction of the new venture would take place in 2020,” the statement said.

The EEX is an energy exchange in Europe

which develops, operates and connects secure, liquid and transparent markets for energy and related products.

GDT is a wholly-owned subsidiary of New Zealand-based Fonterra Co-operative Group.

GDT operates a twice-monthly public price discovery auction for generic, large-volume products.

AUSTRALIAN FRESH MILK HOLDINGS BUYS COOMBOONA DAIRY Coomboona Dairy has been acquired by Australian Fresh Milk Holdings (AFMH), making the company the largest dairy producer in the country.

As part of the acquisition, processor Freedom Foods contributed $4.6 million in equity funding in return for a 10 per cent stake in the dairy, near Undera in Northern Victoria Freedom Foods said the purchase would expand production in a renowned

dairy farming region.

“Providing the opportunity to leverage its integrated approach to deliver sustainable production of high quality milk, supporting a range of value-added product opportunities,” the company said.

AFMH currently operates a fully integrated dairy farming operation, Moxey Farms, located in the Lachlan Valley, 340 km west of Sydney.

With the acquisition of the Coomboona Dairy operation, current AFMH operations are forecast to produce more than 150 million litres in 2019.

AFMH is a strategic partnership owned by the Moxey and Perich families and other shareholders including Freedom Foods Group, which has a 10 per cent equity shareholding in AFMH. Freedom Foods is now utilising a growing proportion of the dairy milk

output from both Moxey Farms and Coomboona Dairy for its Australia’s Own Kid’s Milk and other dairy product formats.

Progress is continuing on Freedom Foods’ nutritional and UHT investments in Shepparton with processing at both facilities expected to commence this month.

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300 Cow dairy all year round.

Is this a family run business?

Yes, our son Rick works with us and he is a 5th generation Dairy Farmer.

How long have you been a customer at FMC? 20 years plus.

How long have you run supreme mixers?

In 2001 we purchased our first which was a 600 single screw mixer, now we are running a 700T twin screw mixer.

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How would you rate the service from FMC? Well, nothing goes really wrong most of the time however when it does FMC always has the parts ready and available like blades, PTO’s, screw caps and general hardware for the machine.

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NSW DAIRY INQUIRY

Co-operatives help boost dairy prices THE NORCO Co-operative, based in northern

NSW and southern Queensland, believes there is a role for co-operatives in the dairy industry, which can help keep dairy prices higher.

Chairman Greg McNamara told a NSW parliamentary inquiry that not so long ago Norco was not seen as a major player in the northern dairy industry.

"However, with the corporatisation of some other processors within the industry which led to them turning their attention away from their dairy farmers in favour of satisfying their shareholders, Norco is now seen as a real alternative and an attractive proposition for many dairy farmers,” Mr McNamara said.

"If Norco was not a major dairy processor in the northern Australian market, the farm gate milk price in our region might not be what it is today,” Norco has 315 members on 200 farms supplying milk to the co-operative from Kenilworth

(Queensland) in the north, west to Toowoomba (Queensland) and along the coastal fringe to Taree and Gloucester (NSW) in the south.

"It is Norco’s view that deregulation of the dairy industry was inevitable and reflective of the Federal Government moving to a market driven economy,'' Mr McNamara told the committee.

He raised concerns at the level of support from governments in research, development and extension services.

"In recent times, we have seen a reduction in support funding through the Department of Primary Industries, Local Land Services and general industry support of research and development and extension services,” Mr McNamara said.

"While farm gate pricing in non-exceptional circumstances could be considered largely sustainable, cost of production increases over time, do not foster an environment of increased investment or practices on farm to increase efficiencies

The NSW inquiry found “concern for the sustainability of the industry”.

to offset these increases.

"These organisations play a significant role in the research and the communication of beneficial developments to dairy farmers and the

continued decline in funding provides less of an opportunity for industry development and sustainability.''

Cheap milk issue raised at inquiry A RECENT inquiry into the NSW dairy industry has found producers are caught in a cost-price squeeze, leaving farmers to operate on the slimmest of margins.

The committee of the NSW Parliament has produced a series of recommendations.

The committee findings challenge the opinion of the ACCC that the selling of milk by major retailers at $1 per litre does not directly impact the price paid to farmers. ‘‘It is clear to the committee that the price being paid to farmers for their milk supply has not kept pace with the increasing cost of production,’’ chair Robert Brown, MLC, said after the inquiry. ‘‘The committee is particularly concerned by the evidence of farmers who told the committee that they cannot draw even a modest wage for themselves from their farming businesses. ‘‘While it is clear that recent drought conditions have added pressure to dairy farmers, the committee considers that the drought has not caused, but exacerbated, the structural problems within the industry that are resulting in poor outcomes for farmers.’’

This committee has found, based on the evidence before it, what is intuitive to even the casual observer and abundantly clear to farmers themselves: that retailers selling milk for $1 per litre has removed considerable value from the dairy value chain.

This has contributed to financial pressure on NSW dairy farmers. ‘‘Dairy farming businesses are clearly struggling to survive and this committee is greatly concerned both for the sustainability of the industry and for the wellbeing of farmers.’’

The Dairy Farmers Milk Co-operative advocated the role of collective bargaining groups for suppliers. ‘‘Individual dairy farmers have a low level of bargaining power when negotiating with processors,’’ it’s submission to the inquiry said.

‘‘We have all seen the recent example where a number of Western Australian milk farmers were abandoned by their current processor. ‘‘In DFMC’s opinion, an effective collective bargaining mechanism, both as to price and terms and conditions, is fundamental to the dairy market being fair to everyone (and, in particular, the farmers).’’

Finley farmer Ruth Kydd raised a number of issues in her submission to the inquiry, including the impact of red tape on farm efficiency, the unilateral cutting of her farm’s bore water licence, inconsistencies between management of Victorian and NSW groundwater, the bureaucratic paperwork involved in securing skilled worker visas, the management of the Murray-Darling Basin Plan and the power imbalance between farmers and processors.

After the release of the committee’s report, Mrs Kydd expressed some disappointment that some issues had not been addressed and she hoped that the committee’s wish for further time for a more thorough examination would be granted.

She said the committee’s investigation appeared to be rushed and did not visit the largest dairy production region in the state.

On the mandatory code for the dairy industry, Mrs Kydd said more control was needed to prevent bizarre practices such as requiring a new owner of a dairy farm to continue supplying milk to the same processor, or compelling suppliers to accept farm gate price reductions, but not having the benefit of price increases. ‘‘I was on the board of Dairy Connect for some time and we were told of some unfair practices which the bigger companies tried to adopt,’’ she said.

Mrs Kydd said the code should also require processors to have their milk testing laboratories independently tested for accuracy, because she had seen some evidence of variations between processors when given the same milk.

FARMER CALLS FOR RETAIL LEVY PAID TO SUPPLIERS Phil Ryan, a dairy farmer milking 200 cows near Bega on the NSW far south coast, argued for a levy applied to all retail dairy products at the rate of 10¢/ litre, to be paid back to all suppliers.

Mr Ryan, an inaugural member of the Bega Cooperative Society, made the suggestion to address the issue of suppressed retail prices applied by the big grocery retailers.

“The Dairy Australia levy process, which takes a levy off all milk produced in Australia, could be relatively easily reversed to distribute this levy,’’ Mr Ryan said, in a submission to the NSW Legislative Council inquiry into the dairy industry.

“It can be managed as an insurance policy, if you will, to manage free trade issues. The means to do this exists, the will to do it is lacking, as shown by recent drought levy shenanigans by retailers.

“This simple step likely makes the NSW industry sustainable – it needs to be applied nationally, for all farmers.’’

Mr Ryan also argued governments should give higher priority to dairy in free trade negotiations – New Zealand has lower tariffs for dairy into China, Japan and Korea.

“We need to be competitive with New Zealand in these key export markets,” Mr Ryan said.

“Governments should also address EU and US subsidies for their dairy industries, enabling Australia to

compete effectively in the international marketplace.

“Also critically, this enables us to compete effectively in our domestic marketplace. Domino’s Pizza and Aldi import their cheese from the US cheaper than it can be supplied locally because of US Government support for their dairy industry.’’

Mr Ryan urged mandatory and effective country of origin labelling legislation.

“Woolworths Hillview $6.60/kg cheese from New Zealand is sold in green and gold packaging – it looks Australian, it is packaged in Australia, but it is produced in New Zealand.

“Mainland cheese from New Zealand is sold in our supermarkets at a premium price beyond that of our Australian equivalents ($18/kg versus $11/kg),” Mr Ryan said.

He suggested regulators look at the impact of “food miles” labelling which indicated to consumers how far dairy products had to travel.

“Cheese imported from the US, as a bulk commodity, just doesn’t seem right, or even Victorian milk trucked to northern NSW and Queensland.

“Something that says, this cheese was made in the USA, and was flown/ shipped 14 000 km might provide a consumer reaction that supports Australian products, while saving on fossil fuel consumption.’’

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NSW DAIRY INQUIRY

Frustrated farmers PETER AND Jane Middlebrook from Finley expressed exasperation at the management in Southern NSW of the Murray-Darling Basin because of the impact it had on their farm.

The couple told the NSW Parliamentary Inquiry that their general security water allocation was at zero per cent.

"It is confusing for primary producers who all work long, hard, intelligent hours to have to pay so much for something that was their right, Peter Middlebrook said” “Our district is fertile and productive, but we cannot operate without water.

“All irrigators in the Murray Irrigation are highly regulated and every drop is metered and accounted for.

“As primary producers we find it frustrating tow atch water run past us via the Murray River and Mulwala canal to flood forests, fill up a lake

that was once an estuarine system and be evaporated so fresh water can run out to sea.

"Our current water entitlement is 1634 Ml. Of this we will incur costs whether we get an allocation or not."

A cursory inspection of the Coles supermarket in Deniliquin turned up plenty of choice in fresh milk.

"I was dismayed to see consumers were not buying the branded milk as the $1 per litre and associated sizing shelves were nearly empty and branded milks of all types were readily stocked.”

“The cheese section was represented by two choices, Bega, which was heavily discounted and the Coles home brand.”

The Middletons urged public debate about food security.

"Australia cannot continue to treat its farmers in such a degrading way.”

Peter Middlebrook demonstrated about water issues in December.

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Brexit no trade boost for dairy farmers A BANKING economist has cautioned against the dairy industry expecting too much for Australia out of the United Kingdom’s exit from the European Union.

While the UK’s much anticipated exit will occur in March, there may not be very many benefits for Australia in terms of trade opportunities.

NAB economist Phin Ziebell said there may be some opportunities but they could be limited.

"A no-deal Brexit could cut supply,'' Mr Ziebell said, but that opportunity had to be kept in global context.

"Britain was once a large destination for Australian exports but it hasn't been that way for more than 50 years.

"The EU is a free trade zone internally but outside the EU they have very large tariff issues.

“Outside the EU it has large tariff barriers and one of the problems for the UK will be the tariffs they could face.”

Mr Ziebell said the UK today was a much smaller proportion of the world economy, particularly in comparison to Asia or China.

"The gravity has shifted towards Asia and that has been a great advantage for us,’’ Mr Ziebell said.

‘We may not always win or compete in every market but if I had to focus anywhere it would be Asia, rather than worrying too much about the UK.’’ Speaking about the current global opportunities, Mr Ziebell said global dairy trade auctions for most of 2018 were lower, but since then there had

been an improved up-tick (with skim milk powder the better performer).

"The EU has run their stock pile down and until now had been a poor performer.

"Over this last year we have also seen Australian dollar go from high 70s, low 80s to low 70s, so we have seen an almost 10 cent drop which is good for us.

"In January our dairy export price indicator was up about nine per cent,’’ Mr Ziebell said.

“Europe is the big issue here. The stockpile Europe and US are close to the top of their fiveyear production range, but they are not growing any further.”

Mr Ziebell said the last 12 months had seen global production steady.

“The domestic picture has seen step-ups from Fonterra and Saputo, and it almost reached $6/kg, but price is not the problem, it's inputs.

“Our feed grain price is almost at record levels.

Eastern Australia has among the most expensive grain in the world at the moment. That is not normal.

“We are out of whack with international benchmarks. The poor season and transport costs impact on that. And we are not really well set up to import grain.’’

On the positive side, NAB’s Agribusiness customer executive Neil Findlay said fuel prices had come back about 20 per cent and energy costs were being managed better.

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Phin Ziebell (left) and Neil Findlay, from the NAB.

“A lot of customers are taking up solar and energy efficient programs to contain their input costs. If the payback period and terms work, then it can be a good investment,” Mr Findlay said.

“Some production systems suit this and dairy can capitalise on this because they have constant energy costs through the year.

“We have a Clean Energy Finance Corporation arrangement which reduces interest rates for customers who are installing an energy efficient replacement.”

On dealing with farm gate prices, Mr Findlay

said farmers needed to consider options offered by their processor and whether their production system fits in with their processor.

"Whatever they enter into, be sure they can deliver on the specifications,” Mr Findlay said.

"Look at what options are with their processor including supply curves and production system.

"Be active in doing something rather than just accept what is happening.

"At $6/kg, it could be quite different if we didn't have the impact of water and grain.’’

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Supermarkets help with drought relief COLES HAS begun distributing more than $ 3.9 million from the Coles Dairy Drought Relief Fund to assist almost 640 Australian dairy farmers impacted by drought.

Coles customers contributed a total of $ 3 974 292.30 to the fund by paying an extra 30 cents on the price of each bottle of Coles 3L Own Brand milk sold between September 21 and December 31.

The Coles Dairy Drought Relief Fund was established to assist dairy farmers affected by drought, regardless of their location or the processor that buys their milk.

Coles chief operating officer Greg Davis thanked customers for their overwhelming support of Australian dairy farmers, who supply 100 per cent of Coles Own Brand fresh milk. ‘‘Coles is proud to support the Australian dairy industry and we were delighted to see customers get behind this initiative, knowing the additional 30 cents from every bottle of Coles 3L Own Brand milk they bought would end up in the pocket of an Aussie dairy farmer,’’ Mr Davis said. ‘‘This money will provide critical financial

support to dairy farmers to assist with feed and water costs for their cattle, farm improvements and even meeting household expenses.’’

All 639 eligible applicants to the Coles Dairy Drought Relief Fund from across Australia will receive an equal share of the total amount raised.

Coles is not the only supermarket giving back to farmers, with Woolworths doing the same.

Woolworths Drought Relief Milk has now provided $4.5 million in relief payments to more than 285 drought-affected dairy farmers across NSW, Queensland and Victoria.

It comes as Woolworths continues to sell Drought Relief Milk on the eastern seaboard while it works with the dairy industry on longer-term reform measures.

Woolworths fresh food director Paul Harker said it was clear the effects of drought remained significant for dairy farmers. ‘‘The drought is far from over and neither is our drought relief milk effort,’’ Mr Harker said. ‘‘The fourth monthly payment was distributed to dairy farmers last month and more relief is on the way. ‘‘We want to find a pathway to a more

Coles and Woolworths are distributing funding to drought-stricken farmers from the sale of their own branded milk range.

sustainable dairy industry over the long term, and will continue to engage closely with industry to this end over the coming months.’’

Dairy Connect chief executive officer and NSW Drought Relief Committee member Shaughn Morgan said the extension was vital. ‘‘We’re grateful Woolworths has listened to

Dairy Connect’s representations on behalf of dairy producers and extended the sale of their drought relief milk range,’’ Mr Morgan said. ‘‘While many producers have welcomed recent rain storms, the impact of drought persists as dairy farming families and communities move into the new year.’’

Farm data initiative resilience,” Dr Robertson said.

“This is a whole new model for rural analytics, which will make it easier to quantify risk and prepare for challenges like climate volatility and change.”

The Rural Intelligence Platform analyses data from a range of sources using machine-learning algorithms to make sense of the data with a clarity that was not possible before.

The platform incorporates an Automated Valuation Model that is capable of valuing rural properties instantly with up to 90 per cent accuracy.

Previously this was only possible for residential properties, for which there are a wide range of valuation and analytic tools.

“Digital agriculture is far more than just onfarm technology, it’s also about improving offfarm decision making and this platform lays the foundation for Australia to become a leader in new generation agricultural analytics,” DAS chief executive officer Anthony Willmott said.

“This is about supporting the ecosystem that supports the farmer — ensuring that farmers, business, policy makers and anyone invested along the agricultural ecosystem has the right rural data to make more informed decisions.”

The market for digital agriculture in the Asia Pacific region is estimated to be worth up to $25 billion by 2028, fuelled by pressure to meet challenges from population growth and climate change.

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Drawing on information from trusted data sources on productivity, water access, yield, land use, crop type, rainfall and drought impact, the platform uses satellite imagery to track paddocks and their performance over time.

“The platform brings together in one place and refines a range of technologies developed by CSIRO in order to provide a picture of what has happened on a property over the years as well as the current situation,” CSIRO agriculture and food deputy director Michael Robertson said.

Information from Australia’s digital soil map is incorporated and climate information interpreted to show drought, frost, heat stress for livestock and other risks.

“The Rural Intelligence Platform will help the agribusiness community calculate the risks associated with certain investments or management decisions,” Dr Robertson said.

DAS estimates that annually about $125 billion in agricultural economic decisions in Australia are based on unreliable or incomplete data.

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An insight to dairying’s challenges MORE THAN 120 dairy farmers and service

providers from across South Australia’s Fleurieu Peninsula, Barossa Mid-North, and River & Lakes areas are expected to attend the DairySA Central Conference in March, to be held for the first time at The Bend Motorsport Park on the outskirts of Tailem Bend.

The 2019 DairySA Central Conference promises an exciting line-up of speakers around the theme of ‘Diverse Dairy: Driving Opportunities’,

which is designed to challenge delegates to identify opportunities to help them grow or improve current practices on farm.

DairySA’s Central Conference co-ordinator Beck Burgess said the conference would provide an insight into the latest advancements in animal, energy and people management areas, drawing on the expertise from a diverse range of speakers.

Keynote speaker Dr Robert James is a

world-renowned expert on calf feeding and management. United States-based Dr James’ years of experience and research in calf rearing advocates that no matter what size or system a dairy farm is, the best cows come from raising better calves. His hands-on approach to calf-rearing will challenge delegates to identify their current and potential calf-rearing practices, while detailing top calf-rearing tips to reach the full milking potential of a herd — by

getting it right from the start.

Held as a result of a collaborative approach between DairySA and Central region South Australian dairy farmers, the DairySA Central Conference draws speakers from key topics of interest identified by dairy farmers living and working in the region.

“We are thrilled Dr James has agreed to be our keynote speaker, as many of our farmers were keen to hear his thoughts and research on the impact that calf rearing practices have on the lifetime production and performance of the cow,” Ms Burgess said.

Global Leadership Foundation co-founder Gayle Hardie will examine how and why today’s workplace is changing, drilling down into how employers can lead positive workplaces, and how to manage the changing expectations of today’s employees.

Four concurrent sessions will look at the new opportunities around irrigation management, energy options, and the latest projects being undertaken from the National Centre for Dairy Research and Development at Ellinbank.

For speaker Sam Bailey, life has always been about doing it differently. A farmer, pilot, husband and bestselling author, he has achieved all of those from a wheelchair. His inspirational story is guaranteed to make everyone think differently about life and overcoming its obstacles.

Lockie Hemphill, a dairy farmer from Kyabram, Victoria, will take delegates on his journey that saw he and his brother turn a 65 ha dairy farm 10 years ago into a farm of 800 ha, now producing 9 million litres of milk from a herd of 950. Locky will detail the key areas that have driven this growth and reveal what can be achieved by a dream, clear goals, hard work and the willingness to take calculated risks.

The ever-popular Top Paddock provides a fitting end to the formal conference sessions, where delegates will have the opportunity to discuss the day’s events with a light graze and drinks, followed by the popular conference dinner, enjoyed in the company of industry colleagues and other members of the SA dairy community.

The DairySA Central Conference will be held on Thursday, March 14 from 9.30 am at The Bend Motorsport Park, Tailem Bend. For more information phone DairySA’s Beck Burgess on 0438 262 966.

Registrations are now available through Eventbrite at dairysaconference2019.eventbrite.com.au/

Lockie Hemphill from Kyabram will be one of the speakers at the DairySA Central Conference, and will talk about up-scaling the farm business.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

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NEWS // 17

Divided opinions on dairy code THE PROPOSED dairy code got a mixed reception at a consultation meeting at Echuca.

Facilitated by Federal Agriculture and Water Resources Department assistant secretary Jo Grainger, it was obvious there was confusion and differing opinions about certain aspects of the draft code.

Cobram East farmer Paul Mundy, who was the most vocal opponent of the mandatory code at the meeting, said things should stay the same.

“I’m not in favour of a mandatory code in any form whatsoever,” Mr Mundy said.

“Specifically I don’t think people understand when they’re (the Federal Government) talking about a mandated minimum price, exactly what that minimum price is and the form in which it takes.

“I would leave it as it is. If the ACCC and ASIC enforce the current legislation out there to the letter (of the law), instead of using kid gloves and gentle slaps on the wrist, then we wouldn’t be in this situation we’re in.

Katunga dairy farmer Daryl Hoey said it was necessary to differentiate between a minimum and opening price.

“They are two completely different things,” Mr Hoey said.

“An opening price announced by the factory is a pooled price amongst all its milk and all its farmers and is just an indicative price that you might

be able to compare your farm against other prices that have been open if they’ve been announced with the same ntsperimetersnteparameters.

“Whereas a minimum price is something you actually want for your farm. You can get that if you go to a processor and get an income estimation.

“They are two completely different tools and shouldn’t be blurred or tried to be interpreted as the same.”

Undera farmer and UDV policy councillor Gemma Monk was another who was against a mandatory code.

“I’m not in favour of mandatory code. I would rather see a voluntary code possibly prescribed,” Ms Monk said.

“The main reason for that is to ensure no processors are passing on costs to farmers.

“We don’t need any more and also to allow for a bit more flexibility if something happens within the enterprise, such as a death or environmental impact, that the mandatory code may actually become a constraint to a dairy enterprise.”

Leitchville dairy farmer Bernice Lumsden was one of the nts meeting-goers to benteparticipants who was undecided on whether a mandatory code was the way forward.

“I’m in favour of a code and I’m still deciding whether it be mandatory or voluntary — but I’m definitely in favour of some kind of code,”

Mawson Concrete’s John Mawson and Cohuna dairy farmer Stephen Henty were at the Echuca meeting.

Mrs Lumsden said.

“I think this because of the history and the total abhorrent situation that farmers found themselves in in 2016.

“That situation should not ever be able to be repeated.”

Discussing the mandatory code, Mrs Lumsden said the idea behind it was to protect dairy farmers.

“The essence of the code is just to protect us from some very predatory behaviour of processors.

“I think that a code, be it voluntary or mandatory, will help to improve the relationships jl between farmers and processors and getting to the crux of the dealing in good faith (clause).”

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

18 // NEWS

100th Is s u e ue th ss 100 I

Environmentalists welcome plant-based dietary guidelines A HIGH-PROFILE United Kingdom environmental foundation has recommended some new dietary guidelines which have attracted interest from agricultural organisations.

The EAT-Lancet Commission is urging a diet that includes more plant-based foods and fewer animal source foods which is claimed to be healthy, sustainable, and good for both people and the planet.

It is recommending small changes for a “large and positive impact”.

The commission is taking a pointed look at agriculture, claiming agriculture occupies nearly 40 per cent of global land, making agroecosystems the largest terrestrial ecosystems on the planet.

Food production is responsible for up to 30 per cent of global greenhouse gas emissions and 70 per cent of freshwater use. Land conversion for food production is the single most important driver of biodiversity loss.

Dairy UK chief executive Dr Judith Bryans said the EAT-Lancet report was a welcome

contribution to the debate on sustainable diets.

"Creating a truly sustainable food system that protects the future of our planet whilst continuing to adequately nourish its population is one of the biggest challenges we face,” Dr Bryans said.

“The report rightly recognises dairy as a fundamental part of a healthy and sustainable diet, however the suggested intake level recommended is much lower than dietary guidelines worldwide.

“Dairy products are an incredibly valuable source of nutrients, containing calcium, iodine, B vitamins and protein and have an important role to play in fighting malnutrition.

Dr Bryans said at a global level dairy played a key role in delivering on the UN Sustainable Development Goals, helping to fight hunger and poverty, providing livelihoods to millions of people and supporting female empowerment.

“Dairy farmers are stewards of much of the world’s land and both farmers and processors can play a key role in protecting biodiversity,” Dr Bryans said.

“In the UK we’ve made great strides in improving our environmental impact through the UK Dairy Roadmap, achieving a 24 per cent reduction in the emissions associated with milk between 1990 and 2015.

“Our progress and innovation have proved an inspiration to dairy industries across the globe, who are seeking to replicate our success and improve their environmental impact.”

The EAT report says: "We should eat more fruits, vegetables, nuts, legumes and whole grains, and it is also important to eat a variety to ensure that we get all the nutrients we need while also supporting biodiversity in the food system. Many in wealthier countries should also eat less red meat and dairy.”

Not-for-profit foundation EAT is founded by the Stordalen Foundation, Stockholm Resilience Centre and the Wellcome Trust to catalyse a food system transformation.

SAPUTO EXPANDS GLOBAL BUSINESS Saputo, the new owner of Murray Goulburn, has been expanding its global business over the last 12 months.

Late last year the Canadian company completed the purchase of specialty dairy processor, F&A Dairy Products, which operates factories in Las Cruces, New Mexico, and Dresser, Wisconsin, United States, employing about 170 people.

The purchase price of US$85 million, on a cash-free and debt-free basis, was paid in cash from cash on hand and available credit facilities.

The acquisition follows the purchase of other dairy operations in Florida, Ontario and Wisconsin.

The F &A Dairy Products manufactures a variety of natural cheeses, including mozzarella and provolone, which are distributed in the US and Mexico.

The company generates annual revenue of about US$163 million.

The company was established in 1958 by two Italian brothers in Wisconsin.

They expanded their operations by purchasing the Indianhead Dairy in Dresser, Wisconsin, renaming it F&A Dairy Products.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

NEWS // 19

Former minister key speaker at dairy conference THE AUSTRALIA Dairy Conference returns

next month, with former Federal Defence Minister Brendan Nelson the highlight of the six sessions of guest speakers.

Dr Nelson will share stories from his time as defence minister as well as stories from his current role as a curator of the country’s recollection of war — a history that has seen both bold and failed leadership.

The six speaking sessions will be on bold leadership, behind the farm gate, making gains thanks to the new genome era, an insight into

the world of milk processing, diet wars and dairy elders, and the finalists of the Australian Young Dairy Scientists’ Award will be revealed.

Notable speakers will be: ■ Peter van Onselen, The Australian contributing editor; ■ Dairy Australia managing director David Nation; ■ Brad Nobush, a dairy farmer from Minnesota in the United States; ■ Jared Ireland, Lockington dairy farmer;

■ Ken Kimber, Australian Dairy Conference founding director and Bega dairy farmer; and ■ Dr Nollaig Heffernan, independent management consultant from Ireland.

The Australian Dairy Conference will again partner with Dairy Australia to support one farmer from each of the Regional Development Programs (RDP) to attend the Canberra event.

The Australian Dairy Conference will be held from Tuesday, February 19 to Thursday, February

21 at Hotel Realm in Canberra.

A pre-conference farm tour will be held in central NSW starting from the Hotel Realm at 7.30 am on Monday, February 18.

For first-timers to the conference, a meet and greet will be held on Tuesday, February 19 between 5 pm and 6 pm at the Hotel Realm.

To register for the conference, visit https://ccem.eventsair.com/2019-australian-dairy-conference/registration/Site/ Register

Youth camp set for Easter THE NATIONAL Dairy Youth Camp will be held during the Easter school holidays in Sale, Victoria.

Holstein Australia CEO, Graeme Gillan, made the announcement at International Dairy Week last month.

Organised by Holstein Australia on behalf of the wider dairy industry, the all-breeds camp is open to all young people between the ages of 16 and 21 years, with no previous dairy experience required.

“For many years the National Dairy Youth Camp was part of the fabric of our industry. It is such an important initiative, both for the young people who will attend and for the future of our industry,” Mr Gillan said.

“When I look at our youth exchange program with Holstein UK, there is a huge amount of talent, passion and commitment to the dairy industry from our young people.

“The intention of the camp is to harness this enthusiasm and enable the people who will be the future of Australian dairy to get a holistic view of the whole industry, forge new friendships and, of course, have fun at the same time.”

The camp will take place from the afternoon of Friday, April 12 until lunchtime Tuesday, April 16 at the Sale Showgrounds in Victoria.

Camp activities will include animal health, husbandry, showmanship and judging sessions, plus seminars on AI, breeding programs, marketing and dairy career pathways.

A number of industry experts will also be on hand, with a classification demonstration and mock auction taking place, as well as a visit to the Maffra Cheese Company and evening barbecues and events.

“The camp’s real focus is to support young people to develop their leadership and teamwork skills and demonstrate the range of options available to those considering pursuing a career in the industry,” Mr Gillan said.

“Milking cows is important, however there are a vast range of career avenues, from science, breeding and AI through to working on the land,” Mr Gillan said.

Application forms are available from the Holstein Australia stand at IDW or can be downloaded from the Holstein Australia website.

The cost of the camp is $ 300 + GST and includes all accommodation, food, insurances and camp activities. A sibling discount applies where there is more than one attendee from the same family.

Inquiries should be directed to the camp organiser, Mandy Pacitti at mistybrae@bigpond. com or on 0409 547 202.

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For further information on Matrix contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

20 // NEWS

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International Dairy Week 2019

Greater Shepparton City Council mayor Kim O’Keefe awards International Dairy Week 2019’s Australian Grand Champion Award to co-owners Daniel Bacon, Ben Govett and Glen Gordon for their cow Wallumlands Sunstorm 8th. Cairnbrae Jersey’s Janine and Alan Carson, from Irrewillipe in south-west Victoria, won Australian Grand Reserve Champion with their cow Cairnbrae Valentino Daisy 11 led by Tallygaroopna’s Brad Gavenlock (right).

Lucy Newman, of Meadows, South Australia, handles Ben-E-GeezFreebeer Rose, owned by Ben Hentschke and Caitlin Liebich, of Glencoe SA.

Tasmania's Josh Smith prepares a cow for the Guernsey Youth Challenge.

Hannah KuhlMiller age 19, from Mount Gambier with cow Bluechip EV Awesome Destini-ET-Red.

Paul Murphy, Sophia Wright, Dale Bryce, Darren Crawford from Numbaa, NSW, judge Chris Lang, Michaela Thomas and Mark Henry with Grand Guernsey Champion and Best Udder Exkwizit Active Barbell owned by the Crawford family.

IDW 2019 Holstein Junior Champion Murribrook Solomon Tambourine with judge Adam Liddle, owner Murray Sowter from Mossvale, NSW, led

by Rodger Turner from Wisconsin and World Wide Sire’s Rick Minichiello.

2019 DairySA Central Conference

“Diverse Dairy

DRIVING OPPORTUNITIES” THURSDAY 14 MARCH, 2019 THE BEND MOTORSPORT PARK, TAILEM BEND

‘The best cows come from raising better calves’ Hear from world renowned calf raising expert Dr Bob James, from Dairy Science Virginia Tech University.

Dr James’ years of experience and research questions the status quo of current calf rearing practices, revealing that no matter what size or system of your dairy farm, how a calf starts its life impacts the lifetime performance of that cow. Dr James’ hands-on approach to calf rearing will challenge your thinking and give you important tips to reach the full milking potential of your herd... by getting it right from the start.

Hear from speakers on a diverse range of topics including: • the true cost of alternative energy options, improving irrigation efficiencies, and creating a better workplace culture • Sam Bailey’s inspirational journey of conquering his disability to become a successful farmer, ultralight pilot, best-selling author and role model for children • Peers ‘doing it differently’ in their dairy business.

At day’s end, gather in a relaxed setting with other farmers and the presenters for a superb three-course meal at the DairySA Central Conference Dinner.

Book your spot now! Head to Eventbrite dairysaconference2019.eventbrite.com.au With thanks to our major sponsors:

Discover the new and exciting ‘Dairy Platform’ Outdoor Trade Sites!

For further information, contact Beck Burgess on 0438 262 966 or beckburgess@dairysa.com.au

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

PASTURE IMPROVEMENT // 21

Pasture Improvement

Eye on the sky for summer crop production costs

BY SIMONE SMITH

IT’S STILL unknown if the larger plantings of

summer crops in Victoria have delivered financial gains for dairy farmers this season.

Seed companies reported selling larger volumes of summer crop seed in spring, for grazing and silage, as dairy farmers sought an antidote to high grain, hay and irrigation water prices.

Notman Pasture Seeds owner Peter Notman said, last month, most summer crops in regions which weren’t impacted by dry conditions had yielded up to 20 per cent more than a “normal” season.

He said going forward, pest control and moisture deficiency would play a role in yields and this could impact the cost of production.

Mr Notman said there was a “fair range” when it came to the economics of growing maize this year.

“Maize at this stage looks like it is coming in at a reasonable cost per tonne,” he said. “At the lower end it would (cost) about $180 a tonne, medium $230 per tonne and obviously there will be some a lot more than that (due to moisture stress). The next five-to-six weeks will really tell the tale.”

South-west Victorian consultant Paul Groves said a lot more crops went in earlier this season, but the “jury is still out” when it comes to determining the viability of sowing extra crops.

He said some herds were grazing crops at Christmas and the green feed helped maintain milk production without relying on expensive grain. It had also delayed silage feeding for some farmers.

But Mr Groves said most grazing summer crops had to yield about 4 tonne/ha to make the investment “worthwhile” and those farmers yet to graze their crops “may have missed out” due to bug damage and water deficiencies.

Yanakie dairy farmer Paul Hannigan sowed maize for the first time this year.

“Basically, we did it because grain was $500 a tonne,” Mr Hannigan said.

He said the dryland crop, in Gippsland, would be made into pit silage.

“A couple of kilograms” of maize will be added to the diet in autumn to reduce grain feeding, it will also extend hay supplies and provide carry-over for next season.

Initial budgeting predicted a yield of 16 tonnes a hectare at a cost of “a bit over” $200/tonne of dry matter in the pit. Harvest’s anticipated mid-to-late March depending of the weather. In the middle of January, Paul said the crop was on track to meet the budget.

Stu Modra milks 180 cows at Gunbower in northern Victoria: he recently ensiled sorghum which yielded 10 tonne/ha. He estimated this cost about $230/tonne “even with water at $400 a megalitre”. The herd is also grazing about 40 ha of Lucerne estimated to cost $220 – $230 tonne (direct grazed).

“Water should never be $400 a megalitre, but we have focused on getting bang-for-our buck, the best tonnage per megalitre,” Mr Modra said.

“It has kept us out of the hay market, but we have plenty of hay left over from spring. We are conserving fodder to get us away in autumnuntil the winter feed gets away.”

Pastures have been under pressure in hot weather in the north.

SUMMER CROPS REDUCE BOUGHT-IN FEED

BY SIMONE SMITH Lachie Sutherland has put in 80 per cent more summer crop this year.

The extra summer crops were part of a longer-term business plan to reduce the amount of bought-in feed at his Larpent dairy farm.

This year with high grain and hay prices, staggered plantings of 36 ha of summer crop – including rape, turnips and pasja – has helped control inputs.

“In a normal year we would have bought a load of vetch (by now),” he said last month.

“But we haven’t bought any this year.”

Lachie, wife Bec and son Gus milk up to 400 cows and split calve. Last month they were milking 360, a result of strict culling due to higher cull prices and adjusting the business for the season.

In the middle of last month, the herd was grazing a turnip and rape crop with an estimated yield of 4 tonne/ha.

This crop received 76 mm of rainfall since it was sown on November 5 and Lachie believed if it had received another 25 mm it would have yielded another tonne/ha.

Pasja was sown into heavy black flats – “tough country to crop” – on December 19.

This quick-establishing crop was sown as the area needed to be renovated after flooding and Lachie wanted to take advantage of the substantial subsoil moisture. Lachie hoped to be grazing this within six weeks of planting.

Rape, by itself, was also sown in the

first week of December as well.

“We try to stagger plantings to optimise grazing and we have different species to help us manage climate risk,” Lachie said.

For example, Barkant turnips and Titan rape were mixed because they yield well in a good season, but if Mother Nature doesn’t co-operate the titan persists.

“There is a cost associated with cultivating but this paddock (sown to turnips and rape) was cut for silage and then sown,” he said.

“Even if we can grow 3 tonnes a hectare its feed we don’t have to purchase in terms of hay. Silage yields were good this season, but the quality wasn’t as good as the previous year.”

After a dry autumn, the timely rainfall in spring was a boon for the business.

“It has been fantastic, a great spring,” Lachie said.

“Hopefully with the summer rain, the perennial pastures hold-on.”

“I’m happy with the way things are going but the high cost and low margin is of concern.”

Lachie Sutherland from Larpent, south-west Victoria increased the amount of summer crop he planted, staggering sowing times and mixing species to manage climate risk.

DAIRY NEWS AUSTRALIA FEBRUARY 2019

22 // PASTURE IMPROVEMENT

Why renovate pasture?

SUCCESSFUL RENOVATION of poor pas-

ture gives high returns.

New pasture is also more palatable and has better seasonal growth. Sowing perennial ryegrass offers the opportunity to benefit from endophytes.

Where do you start?

Pasture renovation is the process of increasing the performance of the pastures on your farm. The first step is to evaluate your existing pasture.

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Does it meet the needs of your farm business? Could you lift your profits by growing more pasture, or pasture of better quality?

Looking at the performance of other properties in your areas will help gauge the potential of your property.

The next step is to identify your poor producing paddocks and prepare a program to turn them into top performers. The difference can be considerable – typically from 4-5t dry matter (DM)/ha/year.

What is good pasture?

Good pasture gives a high level of MS production for your climate and soil type It has high DM yield when you need it, plus good palatability and high feed value.

Yield Without good pasture yield you can’t feed your cows well – that much is obvious. But it is also increasingly important to have good yield at the times when it is of most benefit to your system.

With new pasture varieties, you can now grow

more DM in winter/early spring and summer/ autumn which seasonal pattern will be most profitable for you?

Palatability Palatability is the term used to describe how much cows like eating a particular pasture.

Over-grown spring pasture is often unpalatable.

■ Perennial ryegrass with an endophyte like AR1 or NEA2 is significantly more palatable than the same variety with standard (also sometimes called high) endophyte.

■ Pastures with good clover content are more palatable than those without.

■ Low soil pH reduces palatability – lime solves this.

■ High potassium lowers palatability How to renovate Identify the land area and paddocks to renovate, test soil fertility, and choose a renovation method that suits your needs.

Re-evaluate your management strategies to ensure you utilise the extra pasture grown from renovation and turn it into income. For example, a higher stocking rate.

How much new grass?

Annual pasture renewal varies widely on Australian farms, from 5 per cent to 100 per cent of the property’s land area.

How much you sow depends on the performance of existing pastures and the potential gains that can be delivered by new pasture in your system.

This decision in turn affects your choice of renovation technique.

Sonik – rapid establishment and strong winter activity Take the worry out of winter feeding.

Sonik is the winter feed champion, with rapid establishment and strong growth rates over autumn, winter and spring providing the feed platform you need for great livestock performance.

Sonik is ideal for over-sowing into run-out or damaged pastures, rejuvenating paddocks or for full cultivation as short term (1-2 year) specialist pastures.

Sonik has excellent tiller density for higher yield, persistence and better ground cover.

For further information on Sonik contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375

SONIK IS AVAILABLE FROM YOUR LOCAL SEED MERCHANT OR FARM MERCHANDISE OUTLET

Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 www.cropmark.com.au

Which paddocks?

The simplest way to identify paddocks for renewal is to compare the DM production of all paddocks on your farm, using your grazing records.

If all paddocks are the same size, simply add up the number of grazings/year for each paddock.

If paddocks are different sizes, you need to calculate grazings/ha. Don’t forget to include hay or silage crops.

Typical pastures are grazed 10-12 times a year.

Poor paddocks might give two less grazings than average and four less than top performing new grass paddocks.

A gain of two grazing from renovation equates to 3-4 tonne DM/ha and is highly economic. If the difference is larger, even bigger returns can be made.

Test soil fertility.

Which method?

There are three main techniques, each offering different advantages.

Cultivation is the premium method and usually has the best results.

It gives excellent weed control, overcomes compaction problems and levels uneven paddocks. But it is slower and more costly, so only limited areas (for example, 10-15 per cent of the farm) can be done in most diary systems.

Spray-drilling and oversowing costs less and have faster turnaround.

On a property with a large area of poor pastures they can bring huge benefits quickly.

Spray-drilling works well in most situations and gives good long-term results.

Under-sowing suits thin pastures, where bare ground assists seedling establishment. For dense pastures we recommend spray-drill.

-Heritage Seeds

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

PASTURE IMPROVEMENT // 23

Hoping for a more normal season this year THE 2018–19 season in Gippsland may have had a touch of unpredictability about it, but small rainfall events and opportunistic plantings of millet and summer crops have allowed some farmers to keep grass out of the rotation and locked up for silage Operations manager Alister Noonan from Graham's Seeds said the past few seasons in Gippsland had been unusual, largely due to the lack of a defined autumn break, but silage conservation would be an invaluable tool for the district’s farmers as they moved forward and into next season.

“We had below average autumn breaking rain last year followed by greatly reduced spring rains, the season was only saved by decent falls in many areas around (Melbourne) cup day and again a few weeks later. A severe cold snap in 2017 during July resulted in widespread frosts and crop damage,” Mr Noonan said.

He said rainfall in south and west Gippsland has been reasonable this year, while dryland areas to the east of Traralgon were feeling the pinch.

“Far east Gippsland landholders are suffering the effects of a lack of east coast low rainfall events which have been missing for successive

years now. Firmer than normal paddocks in most areas in late winter gave dairy farmers the opportunity for a higher number of forage crop plantings with forage barley being favoured — many farmers seizing the opportunity for a cheap home-grown crop to offset greatly increased hay and grain prices.”

Mr Noonan said farmers were hoping for a normal season in 2019.

“Good breaking rains mid to late March followed by a not too cold, not too wet winter is what we are looking for. If this carried on into a regulation spring with warmth and rain, growers across the district would have opportunity to reset, rebuild depleted fodder stocks and reduce usage of high-cost feed imports.

“We've had early inquiry already regarding options for quick home-grown fodder; being the cheapest option, it's great to see so many forward planners out there already thinking.”

Mr Noonan said new perennial rye-grasses Bingo (diploid) and Silver Bullet (tetraploid) trialled on dairy farms at Lardner, Fish Creek and Labertouche had shown great performance in tough red hill soils and soil types, with historically lower pest pressure where top-end novel endophyte varieties may not fit the budget.

Fodder conservation has been possible in recent seasons in West and southern Gippsland.

Mr Noonan said while there may be seed shortage rumours, he was expecting most varieties to be in good supply.

“As always the team at Graham's Seeds team are more than capable of helping farmers select

suitable alternative options. Any farmers with concerns about supply are encouraged to get in touch early in the season.’’

Now is the time to think about autumn sown grasses.

AusWest and Stephen Pasture Seeds have got you covered with Knight Italian ryegrass.

Change the colour of your winter pasture with this proven performer.

IT’S TIME

TIME TO SOW THE PROVEN PERFORMER TIME TO ENSURE AUTUMN AND WINTER GROWTH TIME FOR KNIGHT ITALIAN RYEGRASS

Available from all quality seed retailers or contact AusWest Seeds / Stephen Pasture Seeds

ausweststephenseeds.com.au

Key Features • Fast establishing diploid Italian ryegrass • Strong autumn and winter yields • Good tolerance to rust • Late heading • Good second year production in favourable seasons • Ideal for high-quality silage and hay production

DAIRY NEWS AUSTRALIA FEBRUARY 2019

24 //  PASTURE IMPROVEMENT

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Soil testing sways decisions SOIL TESTING provides valuable information

on important soil characteristics and can greatly assist in cost-effective decisions about fertilisers and other soil additions on your farm.

It is essential to collect soil samples which accurately represent the paddock or area being assessed.

In pastures, soil samples are generally collected at a standard depth of 10 cm. This information aims to help you interpret standard soil test information.

Soil type Soil type is reported as the colour and the texture of the soil.

Colour and texture are indicators of properties of the soil and are taken into account when interpreting other soil chemical results.

Organic carbon Organic carbon is a measure of the organic matter present in soil.

Organic matter results from partly decayed plant and animal residues in various degrees of decomposition.

Soil organic matter assists in maintaining soil structure and the supply and retention of nutrients, air and water.

If a soil is low in organic matter, the soil test will result in a low organic carbon level.

Soil pH Soil pH is a measure of the alkalinity or acidity of the soil.

A pH value of 7 is neutral. Values below 7 are defined as acidic and those above are alkaline.

The soil pH can influence the availability of nutrients to plants and potential toxicity of aluminium and hydrogen.

In most Australian soil tests, the pH of the soil is measured in water (pH water) or calcium chloride (pH CaCl2).

Soil pH CaCl2 values are usually between 0.5 to 1.1 units lower than pH (water).

The pH(water) value readily reflects current soil conditions, but is subject to seasonal variations.

The CaCl2 test is useful for long-term monitoring of pH and is less subject to seasonal variations.

Aim to keep the pH level above 5.3 (water) or 4.5 (CaCl2).

Available phosphorus Phosphorus is essential for plant growth and is vital for early root formation.

Soil minerals can react strongly with applied phosphorus and only a small proportion may be available for plant uptake.

In Victorian pasture soils, plant available phosphorus is usually tested using the Olsen P test and results are presented in milligrams per kilogram (mg/kg) or parts per million (ppm).

Available potassium Potassium is needed for a wide range of important processes within the plant including cell wall development, flowering and seed set.

Available potassium is measured by the Colwell K or Exchangeable K soil tests.

Because the holding and supply capacity of potassium in soils can differ, the appropriate target for available potassium depends on soil type.

When potassium levels are high, potassium inputs can be reduced from the fertiliser regime until levels fall.

available for plant uptake.

This reactivity between applied phosphorus and the soil is called ‘phosphorus buffering capacity’ and is measured by the Phosphorus Buffering Index (PBI) soil test.

Consequently, a soil with a high PBI value will require more phosphorus fertiliser than a soil with a low PBI. – Agriculture Victoria

Available sulphur Sulphur is essential for nitrogen fixation by legumes. It is usually measured by the potassium chloride (KCl 40) test, and is reported as mg/kg.

This test takes into account some of the sulphur that will become available during the growing season from the breakdown of organic forms of sulphur.

Sulphur is considered adequate when the levels are > 4 mg/kg using the CPC test.

Sulphur is considered adequate when the levels are > 8 mg/kg using the Blair (KCl 40) test.

Phosphorus buffering index When phosphorus is applied to soils as fertiliser, it reacts with soil components and becomes less

Soil testing will give you more information to plan your crop.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

PASTURE IMPROVEMENT // 25

Fodder beet promises high yield potential FODDER BEET can be an attractive option for

dairy farmers with yields of up to 20 to 30 tonnes of dry matter per hectare, according to a report by 2014 Nuffield scholar Aubrey Pellett.

“The attractiveness of growing fodder beet is its high yield potential,” Mr Pellett said.

“When grown successfully, yields of 20 to 30 tonnes of dry matter (DM) per hectare can be achieved.

For this reason, it has grown in popularity in New Zealand since 2007, where it has been used to supplement lactating cows and as a winter feed source for dry cows and young stock.

Along with high yields the characteristics of fodder beet include: ■ A high energy feed at approximately 12 MJ / kg DM. ■ Low protein levels of 13 per cent.

■ Low fibre levels of less than 20 per cent.

■ High sugar content making the crop very palatable.

■ In New Zealand the potential for fodder beet is being assessed by a Beet Profit Partnership funded program.

They have reported: ■ Average yield of 18 200 kg DM per hectare (range 11 657 — 27 800).

■ Average cost to grow of NZ $2480 per hectare (range $1865 — $3451).

■ An average cost of production of 14 cents per kg DM grown (range 8–26 cents).

Mr Pellett said rye-grass was likely to remain the base of the Australian dairy grazing system.

The ability to speed up improved cultivar development at reduced cost is an opportunity to place more emphasis on selecting grasses that perform best in Australian conditions, rather than the broader Australia and New Zealand marketplace.

“The inoculation of the best performing cultivars with novel endophytes will boost pasture production and animal performance,” Mr Pellet said.

“Pastures that persist for longer will allow a targeted selection of under-performing pastures to be renovated lifting overall farm feed production.”

Mr Pellet said tactical use of fodder beet could increase overall farm feed production at a comparatively low cost of production.

As new breeding technologies enhanced ryegrass performance, the widespread use of a pasture index in Australia will result in the best performing pastures for different needs being demanded.

Mr Pellet said plant breeders would be encouraged to focus research efforts on even more profitable cultivars as the index drives cultivars commercial success.

Setting new benchmarks for late season quality

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

26 // PASTURE IMPROVEMENT

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Managing pasture paddocks in dry conditions BEST MANAGEMENT practice of rye-grass and managing the residual height throughout dry periods is critical to enhance persistence of your pasture.

The key points for managing grazing residuals during dry conditions are not over-grazing if possible and aiming to maintain some green material throughout drier times.

Cows tend to graze down below this in drier conditions, so grazing needs to be restricted.

Grazing to 2 cm, for example, will significantly reduce yield in the following rotations.

Aim to maintain some green material throughout drier times, such as green stem or pseudo stem, as this will help survival and regrowth.

The presence of some pasture cover by maintaining residuals at four to six cm creates a more favourable micro climate near the soil surface than when grazed below this.

The micro climate can help retain soil moisture close to the surface and create protection from extreme soil surface temperature.

To achieve these aims is a significant challenge on dairy farms with high stocking rates when the rainfall and temperature is not sufficient to support pasture growth. It is necessary to have a set strategy or plan to avoid

over-grazing.

The approach to manage residuals in dry conditions is, in essence, similar to that adopted to avoid pugging under waterlogging conditions in winter.

The strategy is to keep the cows in a reduced area (sacrifice paddock or on a feed pad) where they can be fed, and graze only the paddocks where pasture is at 2.5 to 3 leaves.

Paddocks suitable for use as sacrifice paddocks should have good stock water access, good shade, close proximity to the dairy and been previously identified for renovation.

By feeding out in the sacrifice area or feed pad, the cows will be less hungry when entering a new strip of grass, making it easier to control the grazing intensity and leaving a residual close to the target.

A good estimation of pasture pre-grazing cover and knowledge of the paddock dimensions is also essential in order to allocate pasture more accurately and achieve the target residuals.

This management increases the persistence of pasture sward which will be in a much better position to recover from the dry period once the first significant rainfall event occurs.

This may mean that paddocks need to be

rested for an extended period. Developing a feed budget to will help to calculate and plan how much feed will be required to feed the herd in the coming months.

Dairy Australia’s Feed Tools (www.feedtools.com.au) is a useful tool to determine feed requirements for the herd.

Ensuring there is enough feed for the herd will reduce the risk of overgrazing and ensure pastures recover when rainfall occurs.

The feed budgeting fact sheet at dairyaustralia.com.au/feedshortage provides more information on feed budgeting.

– Source: Dairy Australia

KEY MESSAGES Pastures will have better survival and recovery if a residual of 4–6 cm can be maintained and paddocks are not overgrazed.

Choose appropriate sacrifice paddocks.

Plan ahead using a feed budget to ensure the best decisions around managing your herd feed requirements throughout the season.

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Lucerne grazing guidelines released

DAIRY NEWS AUSTRALIA FEBRUARY 2019

PASTURE IMPROVEMENT // 27

Agriculture Victoria researchers have established new guidelines for grazing lucerne.

PROJECT LEADER Meredith Mitchell said the

research team implemented four cutting treatments, simulating grazing on established lucerne, including cutting every three weeks, every six weeks, when new shoots appeared and leaving lucerne to flower.

“Our research from both sites found that cutting every six weeks allows the lucerne plants to replenish taproot reserves while producing optimum feed for livestock,” Dr Mitchell said.

“At both sites, the six-week rest led to a more productive pasture in terms of both dry matter production and forage quality, than the three other treatments. This six-week rest increased dry matter production by up to 2 tonne/ha over other grazing practices.

“Plants that are highly winter-active require close observation to ensure the crown of the plant is not damaged when grazed.”

Dr Mitchell said the lucerne experiments were established at Rutherglen and Hamilton sites, being contrasting rainfall environments for livestock production.

“A simple six-week rest between grazings is better than previous recommendations, which included the appearance of new shoots or achieving 10 per cent flowering in a lucerne paddock; both of these recommendations were highly subjective,” Dr Mitchell said.

“Rest periods of six weeks allow plants to replenish taproot reserves; six weeks is a better and simpler guideline than the appearance of new shoots or flowering.”

Lucerne has a large tap-root that stores carbohydrates for regrowth after grazing; improving the persistence of lucerne plants is therefore about allowing plants to recover in order to replenish the store.

Dr Mitchell said the dormancy rating or amount of winter activity, affects the plants’ susceptibility to grazing.

“Plants that are highly winter-active require close observation to ensure the crown of the plant is not damaged when grazed.

“Grazing periods of about seven to 10 days is recommended.

“To minimise the animal health risks when lucerne is grazed, we recommend not to introduce hungry or unaccustomed sheep to lucerne, and first allow them access to other pasture or hay.”

For more information and access to the updated guidelines, Understanding Lucerne: grazing management guidelines, visit http://go.vic.gov.au/DxZr8p

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

28 // PASTURE IMPROVEMENT

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Farmers invited to cross-industry workshops AGRICULTURE VICTORIA will run a series of free workshops as part of the Plan2Farm project that will help participants make tactical decisions around dry seasonal conditions and the upcoming autumn, winter and spring growing period.

Agriculture Victoria senior irrigation officer Rob O’Connor said the cross-industry workshops will provide the latest information on seasonal and commodity outlooks, and discuss different irrigation, cropping and forage options.

This includes presentations on cropping gross margins, valuing water for autumn irrigations

and water trading, and the outlook for climate, water, fodder and grain over the approaching six to nine months.

“Whether you are cropping or managing a dairy, the high prices for water, grain and fodder make upcoming decisions about irrigation and cropping options very important,” Mr O'Connor said.

“Farmers will receive information to help them with more specific decisions about buying or selling irrigation water, how many irrigations to apply to annual pasture and crops in autumn, and whether to sow as a dryland crop.”

Contact our pasture experts today on FREECALL 1800 007 333 or visit heritageseeds.com.au

Speakers will include Jumbuck Consulting’s Colin Peace, Irrigated Cropping Council agronomist Damian Joes and Ruralco’s David Barthold.

Goulburn-Murray Water river operations planning manager Andrew Shields, Agriculture Victoria season risk agronomists Dale Grey and Dale Boyd, and Mr O’Connor will also present at the workshops.

A workshop in Kerang will be held at the Agriculture Victoria offices at 26 Wellington St on Thursday, February 21 from 9.30am to 11.30am.

A workshop will be held at the Yarrawalla Community Halls on Thursday, February 21 from

12.30pm to 3pm.

Workshops will also be held at the Stanhope Football Netball club rooms from 9.30am to 11.30am on Friday, February 22 and at the Congupna Recreation Reserve Hall on KatamatiteShepparton Main Rd from 12.30pm to 3pm on Friday, February 22.

All workshops include lunch either before or after the workshop session.

To assist with catering, RSVP to Darren at Agriculture Victoria, Echuca, on (03) 5482 1922 or email darren.carnie@ecodev.vic.gov.au.

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MARKETS // 29

Indonesia — a growing market opportunity for Australian exporters?

Traditional view

Modern view

BW of a 20:20 (CP:Fat) milk replacer 10oC

Indonesia’s economy has expanded rapidly the 20oC over 10oC past decade, leading to rising household incomes and a 1200 growing middle class.

1000

ADG, g/d

Dairy products are primarily sold in small, over the past decade, leading to rising housesingle-use pack sizes as cold chains and storage hold incomes and a growing middle class.

800 This, combined with a surge in urbanisation, opportunities are still largely under-developed.

Australia is the fourth largest supplier of has resulted in an increase in household food GLOBAL IMPACT 600 SOFIA OMSTEDT expenditure and consumption of dairy products. dairy products to Indonesia, and Australian Dairy products are considered a convenient exports to the market have grown almost 20 400for products per cent in the past five years. way to stay healthy and demand Skim milk powder makes up roughly 65 per INDONESIA IS the fourth most populous that are perceived to be healthy has grown in cent to 70 per cent of Australian exports to country in the world and one of the fastest recent years in Indonesia. 200 Sweetened drinking yoghurts are becom- Indonesia. growing economies in southeast Asia.

Over the past five years whey powder to be It is also a country of increasing impor- ing more popular as they are perceived 0 exports and 60 cheese Indonesia healthy. tance and interest among South-East major 60 kg 70 kg 80 kg 50 kg kgexports to 70 kg have Sweetened and flavoured single-serve grown significantly, up 72 per cent and 31 per dairy exporters. While some suggest Indonesia Live Weight Livebig Weight dairy products are could be the next demand market for dairy yoghurts have grown substantially in popularity cent respectively. Australian products, several challenges remain for export- over the past five years, with both local produc- both sold in supermarkets and used as ingrediers and exporters increasing production capa- ents in local production. ers looking to capitalise.

While dairy exports from all major dairy Indonesia’s economy has expanded rapidly bilities, exports and sales.

Indonesian Exports Tonnes (’000)

500 400 300 200 100 0 2014/15

2015/16

2016/17

2017/18

2018/19

Axis Title America - North

Australia

EU

New Zealand

exporters have increased 7.8 per cent in volume in the past five years, Indonesia remains an under-developed market.

A combination of reduced consumer purchasing, government trade restrictions and importer uncertainty has seen dairy imports fall over the past year.

Exporters wishing to capture the forecast growing demand for dairy products face a number of challenges in doing business in the market.

Primarily the distribution of the population in Indonesia across numerous islands and the often poor infrastructure make distribution difficult.

Most companies are limited to Java (which contains 80 kg both Jakarta and Surabaya) and Bali (more focused on tourism and hotel channels).

Cold chains necessary for the distribution of chilled and fresh dairy products are also under-developed. Political uncertainty and large capital account imbalances increase the possibility of capital flight and further exchange rate volatility.

Domestic policy setting may also present challenges for exporters. The Indonesian Government has committed to improving port processing times and streamlining inspection and approval processes for agricultural imports.

Nonetheless, the Indonesian Government also remains subject to protectionist and economic nationalist influences and has been known to place non-tariff restriction on trade with little prior consultations.

Indonesia is forecast to experience further economic growth over the next five years, which will increase local demand for different dairy products.

Australia’s ability to capture this demand will not just depend on our domestic milk production, but on overcoming non-tariff and technical barriers to trade in Indonesia.

■ Sofia Omstedt is an industry analyst with Dairy Australia.

Other

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30 // MANAGEMENT

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Making the most of the season in South Australia SIMONE SMITH

THE SOARING temperature was the only sign

Pasture quality has held on at Glencoe near Mt Gambier in South Australia for Angela Tweddle and daughter Shae. Summer conditions had been mild until the end of December and this had helped maintain herd production, despite a reduction in bail feed.

of summer at the Tweddle farm in late December.

The milking herd of 255 registered Holsteins was grazing ample green perennial rye-grass and clover and Angela Tweddle said they had only turned their centre pivots on a few weeks earlier.

This “awesome spring” had reduced costs at their Glencoe dairy farm, near Mt Gambier in South Australia, but it had also allowed them to replenish fodder stocks.

“We haven’t used the pivots much until the last couple of weeks,” Angela said.

“We are usually irrigating from November through until March.”

Angela and Ben Tweddle, with daughter Shae, 10, and son Connor, 9, operate Benlargo Holsteins, milking up to 300 off 202 ha, including 97 ha under centre pivot irrigation.

The family cut 1000 round bales of silage from 73 ha of dryland this year. This was followed by a cut of 200 large square bales of

Lucerne hay off 28 ha and 140 large squares of pasture hay from 24 ha.

“We don’t usually get a second cut off the dryland,” Angela said.

The ample fodder stocks will allow them to sell-off some lucerne hay later in the season.

The turn-around in the season comes less than 12 months after they purchased hay for the first time in six years, due to the late autumn break.

The Tweddles have also reduced bail feeding due to high grain costs. The herd is fed to production, but the average consumption has dropped 2 kg/cow/day to 5 kg/cow/day.

“The cows are holding the same production even though they are receiving less grain, they are still producing the same as this time last year,” Angela said.

“It’s because of the season, the grass is better quality because it hasn’t been that hot yet.”

Average production is 8700 litres/cow/lactation (600 kgMS/cow) and the average herd weight is 600-650 kg/cow.

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The Tweddle family operates Benlargo Holsteins, focusing on US genetics.

family this year for pasture production because of the high price of bought-in feed.

Stricter herd culling has ensured only the most productive cows receive grain but with “ample replacements” to replenish 25 per cent of the herd each year, this hasn’t been a worry.

The family has also moved milk processors, starting to supply South Australia’s Beston Global Food Company from the middle of July.

The Australian Securities Exchange-listed Beston Foods has plants at Murray Bridge and Jervois.

“We now have the exact same price for every month of the year, literally a flat milk price,” Angela said.

“It is a contract price for two years, $6 (a kilogram of milk solids) every month.”

The herd calves from February to May and then again from the middle of August until November. This flat production was attractive for the milk processor, but in turn, Ben and Angela have a lot more confidence in their business “knowing where they are” when it comes to farm gate milk price.

“There was a $150 000 difference between them and Warrnambool Cheese and Butter and no sign-on bonus,” Angela said.

“We shopped-around, but we like the fact the milk is processed in South Australia and made into cheese, employing local people.”

The family have farmed at Glencoe for seven years and purchased the property from Angela’s parents two years ago — just when Murray Goulburn cut its farm gate milk price.

DAIRY NEWS AUSTRALIA FEBRUARY 2019

MANAGEMENT // 31

The Tweddles swapped to WCB from Murray Goulburn, a company they had supplied for a decade- in July that year — a move that “saved us” according to Angela.

Previously Angela and Ben had sharefarmed and leased dairy farms.

The decision to return to Glencoe was prompted by water security and cheaper land prices than areas in Victoria with similar annual rainfall.

The average annual rainfall is about 711 mm.

The Tweddles make sure they maintain a positive outlook for the industry and their business.

Shae looks set to continue the family tradition of dairying, with the 10-year-old recently starting her own Jersey stud thanks to the purchase of an October-born calf.

Angela said they “only spend money if we have got money to spend” and have taken steps to diversify.

They have a small herd of F1 heifers, which will be joined and sold at the local special F1 sale next year.

With no plans to milk more cows, the family’s next goal is to purchase a dryland block to replace the two 20 ha blocks they lease to run their heifers.

Maintaining a lifestyle is important to the family, an annual holiday is locked-in each year.

This is funded by Ben’s off-farm work.

Except for an employee who does 30 hours a week, Ben and Angela do all the farm work and they say this has helped keep a lid on costs.

The sheds are full at the Tweddle farm at Glencoe. Angela, pictured with daughter Shae, and her husband Ben now have enough fodder to sell excess lucerne hay later in the season.

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32 // NEWS

100th Is s u e ue th ss 100 I

Outrage over animal rights map FARMERS HAVE been left fuming after an

The website map names dairy, poultry and pork farms across south eastern Australia and accuses farmers of “exploitation”.

animal-rights-run website published the locations and details of more than 5700 Australian farms.

The map, created by Aussie Farms, has been slammed by the federal and state governments and farmer groups who say it links accredited

and law-abiding farming properties with animal cruelty, violates their privacy by revealing their home addresses and incites the public to trespass on their properties to take photographs and collect video footage.

The description of the map said it was created to “force transparency on an industry dependent on secrecy”.

“Farmers around Australia are concerned for themselves and their children.”

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“We believe in freedom of information as a powerful tool in the fight against animal abuse and exploitation,” the website reads.

The website does not disclose the authors or contributors to the map or provide a direct address or phone number of those responsible for compiling it.

Federal Agriculture Minister David Littleproud called for Aussie Farms to have its charity status revoked and said all governments must beef up trespass laws, admitting there was “little” the Federal Government could do about the map.

“Farmers around Australia are concerned for themselves and their children,” he said.

“No-one would like the address of their family home put up online for all to see. There are plenty of nutters out there — and who knows what one of them will do.

“The risk of trespass and farm vandalism is higher since this website went up, and state governments need to respond with laws that punish trespassers and vigilantes. Plenty of information on this website has already been proven wrong, and it would only take one idiot to act on information from this website for a tragedy to occur.”

Aussie Farms did not respond to requests for comment.

A Victorian Government spokesperson said it was “absolutely unacceptable”.

“This is not voicing an opinion, it actually puts hard-working farming families at risk.

“We take animal welfare seriously and are leading the nation in combating cruelty and neglect — but do not condone this sort of behaviour in any way.”

NSW Farmers slammed the map, with vicepresident Chris Groves labelling it “highly disturbing” and calling for legal action, while NFF president Fiona Simson pledged to campaign for the Facebook page to be closed.

“Farmers’ privacy, their right to farm and, most disturbingly, their safety and that of their families and animals, are at risk,” she said.

“Farmers are rightly distressed that their name has incorrectly been linked to ‘animal cruelty’.”

Ms Simson said the NFF was seeking legal counsel on the implied link the map made to the farmers represented and animal cruelty, and in regards to any potential infringement of privacy and trespass laws.

The NFF has created a webpage providing advice for those listed on the map. For more information, visit: farmers.org.au/news/ fighting-back-against-the-activist-farm-map/

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

ANIMAL HEALTH // 33

Managing the risk of mastitis in hot weather ROD DYSON

TWO RECENT discussions were a reminder of

how hot weather can significantly influence the risk of mastitis in dairy herds.

The first was a farm which uses a mechanical teat scrubber as part of the pre-milking routine to clean teats prior to cups on during periods of high risk (both in hot weather and in wet, muddy weather).

The teat scrubber was out of action for four days during a hot spell and this was quickly followed by an outbreak of clinical mastitis.

The second discussion was with another farm inquiring about the need to dry teats prior to applying cups to cows which had been under sprinklers in the yard because of a significant increase in clinical cases during the hot weather.

The two core principles for reducing the risk of mastitis are to minimise the number of bacteria on the teat skin, and to maximise and maintain teat-end health.

During hot weather, groups of cows milling around and also lying in areas of shade will lead to a large amount of faecal contamination in those areas. This creates a marked increase in the risk of teat skin becoming contaminated with dirt and faecal material containing environmental bacteria.

When the teat scrubber failed on the first farm, there was no extra labour available to manage a manual wash and dry program in a single operator herringbone dairy.

Fresh clinical cases of mastitis ceased, occurring shortly after the teat scrubber was repaired and back in use.

On the second farm, milking staff reported a large number of cows entering the milking platform with dirty water running down the teats when the sprinklers were on in the dairy yard.

Sprinklers in the dairy yard are a necessary and effective method of cooling cows, but they also increase the risk of wet, contaminated teats at cups on if the water runs down onto the udder and teats of cows.

While the risk from contaminated water on teats is obvious, applying cups to wet teats also introduces risks associated with cup crawl immediately after cups on.

Clearly, drying those teats prior to cups on will reduce those risks, but if cows are that wet, it is likely that water has continued to trickle down onto teats and into the mouthpiece of the liner while the cows are being milked.

After our discussion, the farm introduced a program of drying teats with paper towel prior to cups on, while they worked on modifying the sprinkler operation.

Obviously, having a strategy to deal with heat stress is extremely important, however each summer we see farms experience a mastitis outbreak during, or immediately after, a heat event.

How can that mastitis risk be reduced, while still managing heat stress effectively?

Naturally shade is essential, but is it possible to reduce the amount of time that cows spend in this area, and/or keep the area cleaner to reduce the build-up of contamination?

Do the cows need to be there overnight when it is cooler? Do they need to be there on days when the heat is not excessive?

Could the area be cleaned? Could feed and water be positioned a short distance away from the shade, so cows will tend to defecate less often in the actual shade area?

Installation of a sprinkler controller or timer so that sprinklers cycle on and off, generally provides more effective cooling, uses less water and significantly reduces the risk of water trickling down onto teats.

Using sprinklers immediately post-milking before teat orifices have closed properly dramatically increases the risk of new infections — washing off teat disinfectant and replacing it with contaminated water is not a good idea, so be very

this time may also be beneficial.

Naturally, these high-risk periods are also when post-milking teat disinfection needs to be as good as it can possibly be all milking staff should concentrate on achieving as close to 100 per cent coverage of teat skin as possible.

For more information, visit Dairy Australia’s Cool Cows website at www.coolcows.com.au -Rod Dyson is a veterinary surgeon and mastitis adviser at www.dairyfocus.com.au

careful with sprinklers shortly after cups off.

One of the biggest opportunities to manage the risk of mastitis is how you manage teat contamination once cows reach the milking platform.

A wash and dry program for at least the contaminated teats, if not all cows, prior to cups on during these hot days will substantially reduce the number of bacteria on the teat skin and consequently the risk of mastitis infections.

In some herds, pre-milking teat disinfection at

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

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Shining a spotlight on facial eczema FACIAL ECZEMA (FE) can significantly affect dairy cattle productivity, health and welfare through animal deaths, reduced weight gain, reduced milk yield and reproductive performance.

While FE is mainly seen in east Gippsland, it has also been reported in other regions of Victoria.

Unconfirmed cases have also been reported in areas of coastal NSW, western and northern Victoria, South Australia and Tasmania.

The prevalence of FE may increase in the future as climate change could provide suitable conditions for outbreaks to occur.

favours dead pasture litter at the base of plants and animals grazing short pasture at high stocking rates are at greatest risk.

Freshly produced spores are the most toxic but can lose their toxicity within one to two weeks if fungal growth stops after a change in the weather.

Outbreaks can occur in warm, humid weather with light rain (or irrigation) which is suitable for spore production.

Autumn is a high-risk period after a long, dry summer as pasture will be light and soil temperatures will still be warm enough for rapid pasture growth.

What causes FE?

Signs of FE

FE is caused by ingestion of spores of the fungus Pithomyces chartarum. These spores release a mycotoxin called sporidesmin which causes damage to the liver, bladder and mammary gland.

Photosensitisation resembling ‘sunburn’ is a common sign frequently affecting the non-pigmented areas of skin. This occurs about two weeks after exposure to sporidesmin.

The skin of the face, ears, teats, and vulva, are often affected becoming reddened, then crusty and dark.

Eventually the skin peels off leaving large raw areas susceptible to infections and flystrike.

When does FE occur?

The fungus grows on most pasture plants, but has a preference for perennial rye-grass. It

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Cows may be restless, seek shade and lick or rub affected areas. If exposure is sudden, they may collapse in extreme pain.

However, in most outbreaks the majority of animals show little or no visible skin lesions, but have suffered liver damage.

For every cow in a herd with skin lesions, up to 10 or more cows may be affected sub-clinically. It is the 80 per cent of cows without skin lesions, but with liver damage, that contribute to the major economic losses.

Deaths, reduced weight gain and poor reproductive performance contribute to economic losses.

The udder and teats of lactating cows are often severely affected accompanied by a rapid drop in milk production. This may be temporary but in severe cases affected cows may dry off completely.

Treatment, prevention and control There is no specific treatment for FE, and any treatment is considered to be symptomatic.

Affected animals should be housed during daylight and allowed to graze at night. At the very least they must be given access to shelter to help prevent further skin lesions and allow existing lesions to heal while the liver regenerates.

Areas where skin is peeling should be dressed with sun-blocking ointments. Contact your veterinarian if you suspect FE to discuss supportive treatment.

During high-risk periods or an outbreak, the following can help to minimise the risk of FE: ■ Avoid very close grazing: shift stock to the longest available pasture.

APIAM ANIMAL HEALTH GEMMA CHUCK

■

■

■

■

■

■

Avoid paddocks cut for hay or late-topped as there is a higher risk of toxicity. If unavoidable, ensure topped material is removed to reduce pasture litter.

Feed hay or other supplements to preserve ground feed and minimise close grazing of pasture.

Summer-growing crops are generally safer than pastures, so increase access to these when they are available.

If pasture is short and grazing pressure is heavy, farm irrigation may be valuable if available and used immediately.

Alternate grazing between native and improved pastures if feasible.

Pasture spore counts can be proactively monitored, allowing early intervention.

Oral zinc can be used to reduce the impact of FE but must be administered prior to exposure to sporidesmin.

Zinc does not have a therapeutic effect once cows are already showing signs of FE as it cannot reverse existing liver damage.

Daily drenching, in-feed and drinking water have been used to administer zinc.

There are potential side effects with prolonged zinc dosing and these should be discussed with your veterinarian.

Reference: “A Review of Facial Eczema”, Dairy Australia 2013.

■ Dr Gemma Chuck is a veterinary consultant for Apiam Animal Health, where she designs and delivers technical training programs for dairy farmers and veterinarians.

Fonterra to sell NZ livestock division FONTERRA NEW Zealand has announced it will sell the Farm Source livestock division to Carrfields Livestock — an established livestock agency provider.

Fonterra Farm Source stores director Richard Allen, said the decision to sell was made in the context of a larger review underway within the Co-op.

“In the context of the review of the Co-op’s assets and investments, we have made the decision to sell the livestock division to Carrfields Livestock. This will better serve the livestock team and the farms they service.

“While Farm Source’s livestock division has contributed positive returns since inception, we believe the investment required to maintain and grow this division can be more effectively targeted towards improving core areas of the Farm

Source™ business,” says Mr Allen.

Farm Source is working with Carrfields to develop a range of partnership offerings to ensure a positive connection and competitive offer remains for Fonterra farmers.

Craig Carr, Carrfields Group Managing Director, says this acquisition is both exciting and a strategic opportunity for Carrfields Livestock to fill gaps in their current national network.

“This acquisition will take the Carrfields Livestock team to over 150 livestock agents spread right across the country. This strategic partnership will offer Farm Source™ clients and Fonterra farmer owners access to a nationwide agent and sale yard network provided by a New Zealand family-owned business,” says Mr Carr.

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MACHINERY AND PRODUCTS // 35

Technology and simple solutions hit the mark TECHNOLOGY CONTINUES to answer the

increasingly complex questions posed by agriculture today, but for Tim Slater, who has been around the industry his whole life, it’s the simple solutions, often devised with the least resources, that still intrigue him.

Mr Slater is the product manager for hay and harvest for Case IH Australia/New Zealand, a company he started working for fresh out of university 18 years ago.

From a graduate position in logistics, he then moved into the service side of the business where he assumed responsibility for a number of varied product ranges before settling on combines, fronts, and cotton harvesters.

He left Case IH for a brief period before being offered a technical training role with Case IH’s parent company CNH industrial, a position that would take him around the world and demonstrate that while agriculture may look a bit different depending on where you are, the motivation for farmers is the same: find the best solution for maximising efficiency and productivity.

“It was a great learning experience because what you find is there’s so many different ways people go about solving a problem, and some of the most ingenious solutions I’ve seen have come from the least amount of resources,” Mr Slater said.

“There are a lot of smart people around the world who think very differently to solve the same problems, and the best solution is not necessarily the one that costs the most money and involves the best piece of engineering; sometimes the simplest stuff works the best.”

Mr Slater has worked in many parts of the world including China, South Africa, Kazakhstan, Russia, Ukraine and the Pacific, and his career at Case IH has been equally diverse, returning to the company’s St Mary’s, Sydney, headquarters in 2010 after his training stint, and taking on the role of product specialist for precision farming and guidance, at a time when the business was starting to expand in that direction.

His current product manager role began in 2013, responsible for hay and harvest equipment including balers and Case IH’s Axial-Flow combines, the machine that revolutionised harvesting just over 40 years ago.

The revolution in agriculture equipment has continued full-throttle since then, and he still marvels at the changes within the industry in a relatively short period of time.

“If I look at growing up on the farm through the early to mid-80s and what we had then, to where we are today, that’s 30-plus years of innovation,” Mr Slater said.

“We’ve seen incredible change come through, from combine seeders to air seeders, through to precision planting, and the evolution in tractors, from 200 hp up to 400 hp and now 600 hp tractors.”

“But what’s more amazing is our market has gone through these advances in 30 years – I’ve been to places where they go through that in five.

They go from what we had in the 80s to what we have now in one machine jump, not four.”

“Making a difference” is what drives Case IH Australia New Zealand product manager for hay and harvest Tim Slater.

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DAIRY NEWS AUSTRALIA FEBRUARY 2019

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I don’t need a compact tracked loader, do you?

WITH THE new year well and truly upon us, the festivities and possible excess of the Christmas period are a fast-receding memory.

So too, are the bold ambitions associated with new year’s resolutions. Paying down debt, simplifying the operation, not buying farm machinery; all rapidly becoming distant white noise.

Of course, these things are necessary, in fact more so than ever in the current environment where a bad autumn break could spell disaster for so many.

But saving money by not doing things is only fun at the end of the year.

In the meantime, I don’t know about you, but I need something else to occupy my daydreaming time.

Some people are happy with a single Fiat feeding round bales and spend their time on the verandah looking at their empire, and good luck to them. They don’t need it of course, because they’re already richer than me.

I’m a very accomplished inventor of business cases for machines I can never buy. Necessity may come first as the mother of invention, but idle cerebral bandwidth must be a close second.

My latest hobby horse is freeing up storage space by dreaming up smaller machines that will do the same job. For example, a tracked skid steer (compact tracked loader), would be

a versatile, fast farm loader without all the shed space that a telehandler or wheel loader takes up.

It turns out the first compact tracked loader was developed by Takeuchi in 1986, the brief being to increase flotation and traction, so the machines could work in a wider range of conditions than traditional skid steers, whose origins date back to the 1950s.

Tracks are also lighter on pasture than the wheels of a standard construction-bred skid steer, and the larger models have some truly impressive power outputs.

Notwithstanding the fact that rapid entry or egress from any skid steer looks nearly impossible without breaking your neck (think beating the heifers to the open gate), and that the shed space saved would soon be littered with a bewildering array of attachments (because they have a universal hitch, duh); these machines are an awesome idea for the farm.

So why don’t we all have them?

In rural America they’re as common as mailboxes, whereas Australian farms that use a skid steer or tracked loader as a primary machine seem as rare as chances I’ll get to own one.

Are telehandlers just better suited to our more open shed designs and outdoor parking (with no snow to worry about)? Or is it just that lifting 3 tonnes to 7 m appeals to our sense of value for

GRUNT JOHN DROPPERT

My latest hobby horse is freeing up storage space by dreaming up smaller machines that will do the same job.

money better than 2 tonnes to 3 m? Are we just too soft to climb over the loader booms 1 million times a day, preferring a sensible side door?

Whatever the answer, at a rough exchange rate of 3.5 Chinese wheel loaders to one compact

tracked loader, it’s not more than a hypothetical question for my operation. But some more second-hand machines out there really wouldn’t hurt my chances.

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MACHINERY AND PRODUCTS // 37

Drivers urged to be careful LOOK OUT. Slow down. Take care.

These are the three messages farmers are asking all motorists to observe when travelling country roads as part of the ‘Common Roads, Common Sense’ campaign.

This new road safety initiative was developed by the National Farmers’ Federation and launched near Wagga Wagga by Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, Michael McCormack.

NFF chief executive officer Tony Mahar said large agricultural vehicles (LAVs), such as tractors, harvesters and spray rigs, were particularly active on public roads around this time of year.

“Across Australia’s grain growing areas, harvest is starting or fast approaching and when farmers are moving machinery between paddocks they often require time on public roads,” Mr Mahar said.

“For motorists, encountering an LAV can be nerve-wracking and confusing.”

To keep all road users safe, and to assist farmers to get on with the job of producing food and fibre, the NFF has developed a simple three-step process to help guide driver behaviour: 1.

Look out: Roads are built for all Australians and not all vehicles travel at maximum speed. Be aware of farmers, cyclists and trucks that might be slower.

2.

Slow down: Most accidents with LAVs in Australia are rear-end collisions due to differing travelling speeds. Slow down when you see a slower vehicle ahead.

3.

Take care: When overtaking, make sure it is safe to do so and you have enough space — take a moment to evaluate the situation. When an LAV heads your way slow down and give the oncoming vehicles plenty of space.

The campaign is symbolised by the iconic ‘fingers off the steering wheel country wave’ often favoured by drivers as a gesture of on-road mateship Mr Mahar said common sense and mutual respect were at the core of ensuring public roads could be safely shared by all users, including farmers operating LAVs. “Farmers take their responsibility to keep our communities safe very seriously, and recognise moving large machines like tractors and harvesters can cause some inconvenience to other drivers and hamper the flow of traffic,” Mr Mahar said.

“Farmers will always move out of the way in these vehicles where we can, but we want to work as a team with other road users to use common sense when we do need to interact, and to follow the three simple steps of ‘look out, slow down and take care’.”

Mr Mahar said the movement of large machinery on public roads was an essential operational element of Australia’s vibrant agricultural sector.

“Agriculture is one of Australia’s most important contributors to local communities and to the national economy, set to be worth $60 billion in 2018–19 while employing 1.6 million people across the supply chain,” he said.

“Large machinery is also critical to keeping farmers on their way to growing the food and fibre which feeds our nation, with 93 per cent of Australia’s food supply grown here on home shores.

“We welcome visitors into the regions, and want farming’s positive contributions to extend to how we share the roads with all drivers.

“Next time you’re on the road and encounter a farmer driving or hauling large machinery, please ‘look out, slow down and take care’, because sharing common roads successfully really just requires common sense and patience from all parties involved.”

The road network is criss-crossed by access roads in agricultural regions.

Visit us at Sungold Field Days F22 – 25

DAIRY NEWS AUSTRALIA FEBRUARY 2019

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IDW field days

Wayne Willie, owner of Willie's Manufacturing Industries, based in Warrnambool.

Campbell Fendyk, sales and marketing team member for Burder Ag Attachments stands next to an in-line wrapper.

Photo: Megan Fisher.

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Herd Improvement Co-Operative Australia (HiCo) sales and AI rep Elsie Keane, from Colac, and ST Genetics area manager for western Victoria and South Australia Marty Glennon.

Photo: Megan Fisher.

Anthea Day, Jersey breeder, from Gippsland, and Agri-Gene general manager Chris McIlroy chat at IDW. Photo: Megan Fisher.

Brian Albertoni, from World Wide Sires USA and David James, from World Wide Sires Australia, man the World Wide Sires stall at IDW. Photo: Megan Fisher.

Dylan Morris and Neville McDonald, of Kyabram and Cindy Yates, business allrounder at GE Silos.

Gavin Thorne from Katandra West, and Bob McKeown, of Forbes Machinery Centre, stand in front of a Supreme feed mixer.

Valton Feeding Solutions managing director Tony Byron, dairy farmers Brendan O’Brien and Willis Johnston, both from Ellerslie, Victoria and Valton Feeding Solutions sales manager Leigh Byron.

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