Dairy News Australia - June 2020

Calf rearing feature: Page 25

Milk prices announced: Pages 3–6

JUNE, 2020 ISSUE 116 // www.dairynewsaustralia.com.au

A LOOK BEHIND THE FARM GATE Capturing portraits of the nation’s dairy farmers. Pages 16 – 17

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NEWS // 3

Processors reveal opening prices PROCESSORS ACROSS the country

released their opening farm gate milk price on June 1, in line with new rules under the mandatory code of conduct.

Lactalis’ Victorian farm gate price has topped opening prices with a minimum weighted average price of $7.01, while Saputo announced an opening price of $6.40 and

Fonterra opened at $6.06 with a forecast closing price of $6.20 to $6.50 kg/MS. See where some processors opened at below.

Processor

Average opening milk price

ACM (organic)

$8.60/kgMS

ACM

$6.60/kgMS, range of $6.30 – 6.90/kgMS

ACM (A2)

56¢/litre

ADFC

$6.40/kgMS, range of 6.20 – $6.60/kgMS

Bega (northern Victoria)

$6.55/kgMS

Bega (southern Victoria)

$6.40/kgMS

Beston Global Food Company

$7.20/kgMS

Bulla

$6.30 – $6.70/kgMS

Burra (1 year exclusive)

$6.20/kgMS, range of $6.00 – 6.40/kgMS

Burra (1 year non-exclusive)

$6.60/kgMS, range of $6.30 – 6.90/kgMS

Burra (3 year exclusive)

$5.06/kgMS minimum

Fonterra

$6.40/kgMS, closing $6.40 – $6.70/kgMS

Lactalis (Victoria)

$7.01kgMS

Lion (New South Wales)

60.4¢/litre

Lion (South Australia)

$6.88kgMS

NEWS �������������������������������������������������������3 – 24

Lion (south-east Queensland)

65.6¢/litre

OPINION ��������������������������������������������������������� 4

Lion (Tasmania)

$6.94kgMS

MARKETS ����������������������������������������������������� 12

Lion (Victoria)

$6.52/kgMS

Lion (Western Australia)

52.5¢/litre

Saputo

$6.40/kgMS

Drought forces successful family out of dairy. PG.14

Champion Illawarras are a family affair.

PG.20

Share farming model drives success.

PG.22

CALF REARING FEATURE ���������� 17 – 23 ANIMAL HEALTH ���������������������������� 32 – 33 MACHINERY �������������������������������������� 34 – 37

DAIRY NEWS AUSTRALIA JUNE 2020

4 // OPINION

EDITORIAL Dairy code of conduct faces its first test After much toil, many disagreements and to-ing and fro-ing, the dairy industry’s national code of conduct will face its first true test — a new season.

June has begun with a big question mark as to whether the code will deliver transparency and whether it can live up to some industry leaders’ high expectations.

Implemented on January 1, the code was born out of concerns and outrage over $1-a-litre milk, the growing power of processors and dwindling authority from dairy farmers.

The code hopes to right that power imbalance — but will it?

Nominations open for Dairy Australia board Dairy Australia is calling for nominations to fi ll vacancies on its board of directors, in preparation for elections that will be held at its annual general meeting in November� Three serving directors’ board terms are expiring this year� Two of the vacant positions must be fi lled by milk producers, with the other vacancy requiring a director with skills in agribusiness, innovation and adoption� Current board members Tania Luckin and Roseanne Healy have indicated they will be re-standing for election, while Graeme Nicoll says he will be retiring from the board� Dairy Australia Board Selection Committee chair Paul Wood said Dairy Australia’s Board Skills Matrix stated the board must comprise of a mix of skills that represent all sections of the industry� “The current climate provides a unique opportunity for highly skilled leaders to join Dairy Australia and make a positive contribution to the future of the dairy industry and help shape industry structures”, Professor Wood said� The board comprises of eight non-executive directors and the managing

director and determines the policies and directions for investing in industry service activities, approves strategic and operating plans and performance targets, and ensures good governance� To stand for election, applicants must undergo a selection process overseen by a Board Selection Committee, made up of one Dairy Australia Board Director and four other Australian dairy industry representatives (two nominated by Australian Dairy Farmers and two by the Australian Dairy Products Federation)� Alternatively, candidates may stand for election if their nomination is endorsed with the signatures of at least 100 current Group A members� Milk producers interested in standing should review the instructions received in the post and apply to the Board Selection Committee before 5 pm on July 1, 2020� Executive Search fi rm Rimfi re Resources is managing applications for the non-milk producer director roles, to be advertised publicly� Inquiries in relation to these roles should be directed to Mick Hay of Rimfi re Resources on 1300 380 701 or on (07) 3878 3411�

Many dairy farmers and processors will spend the next few weeks getting their heads around what these changes mean practically.

The code spells out a number of requirements for milk supply agreements, including a minimum price for milk, a 14-day cooling-off period and a complaints handling process.

Retrospective price cuts are no longer allowed, and processors and dairy farmers are required to act in good faith in their dealings with each other.

But the effectiveness of the code remains to be seen, with dairy farmers likely to spend the coming weeks reviewing, assessing and taking stock of their own position.

It seems clear industry bodies expect this to be a learning curve.

Dozens of webinars have been organised while COVID-19 gathering rules still forbid large public meetings and consultations.

Draft contracts have been assembled and the message is clear — arm yourself with the facts.

The success of this code is yet to be revealed but it is hoped it will give dairy farmers more security and a clearer path forward.

So, in the coming weeks as you review prices and prepare for the season ahead, make sure you’re clear on what your rights are and what is expected of your processors before you sign on the dotted line.

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NEWS // 5

Opening milk prices bring mixed reactions SOPHIE BALDWIN

LACTALIS HAS topped opening milk prices

with a minimum weighted average price of $7.01, and northern Victorian supplier Chris Jones couldn’t be happier.

The Gunbower dairy farmer said this coming season was shaping up to be a good one.

“If we have a good season with plenty of grain and hay around at harvest, and if water price comes down to a sustainable level, we might finally be able to kick some goals,” Mr Jones said.

Unable to sow corn due to high water prices this season, Mr Jones is hoping the 2020–21 season will be a chance to put some fodder in the bank.

Monique Bryant is a Lactalis supplier at Waaia in northern Victoria, and she said the opening price gave her great confidence in the processor and their future.

“We had some conversations with Lactalis after COVID-19 and the fact they have honoured their price gives us some real confidence,” Mrs Bryant said.

“We want to stay and grow in the industry and moving forward we have a good milk price to support that.”

Sarah O’Brien, from Denison in Victoria’s Gippsland region, is a former Murray Goulburn supplier who stuck with Saputo.

She said Saputo’s $6.40 opening price would allow their farming system to make a profit.

“I was concerned it was going to be below $6 so this is exciting times for us,” Mrs O’Brien said.

She said the opportunity to have a minimum opening price this early in the year was great for management.

“June 1 gives farmers the opportunity to change suppliers, get their budgets done or make decisions before the end of the financial year — it just puts farmers in a better position to plan.”

Muckatah dairy farmer and Fonterra supplier Peter Letcher said $6.40/kg MS is where he thought the opening price would be.

He said he was disappointed the company initially opened at $6.06/kg MS. “To all of a sudden find 34 cents means the money must have been there in the first place,” Mr Letcher said.

He said he is hoping the doom and gloom is now behind him and the industry after a great start to the season.

“We have made the decision to stay and we need to look at in a positive manner moving forward. We have good staff and the dairy industry is where we want to be,” he said.

Dairy Farmers Milk Co-operative (DFMC) supplier Greg English, from Queensland, said according to his field officer, his milk price was the same as last year at 58.8 cents/litre.

“It is always good to be paid more and it always astounds me we talk of prices in one or two cents per litre and that’s not even in our currency anymore — what happened to five or 10 cents a litre?,” Mr English said.

“The price of milk can go up and it should; processors just expect us to take whatever they give us.”

Gunbower suppliers Stu and Clare Modra are happy with Bega’s opening price of $6.55, which includes a 15 cent/kg MS irrigation supplement payment.

“It’s a pretty good start, hopefully we can pay back some debt this year,” Mrs Modra said.

The Modras were able to sow all their autumn pasture on rainfall, making this the best start they have had since they bought the farm eight years ago.

“We just keep trying to survive — maybe this year we can do better than that,” she said.

Gunbower’s Harry Rowlands supplies Australian Dairy Farmers Corporation (ADFC), and he was disappointed with its forecast of $6.20 to $6.60.

“The ADFC price won’t do anything to help confidence in the industry and I expect more farmers will exit,” Mr Rowlands said.

Waaia dairy farmer and Lactalis supplier Monique Bryant said the processor's opening milk price has given her confidence.

Fonterra supplier Peter Letcher said Fonterra's opening price was below his expectations.

DAIRY NEWS AUSTRALIA JUNE 2020

6 // FEATURE

Foote in the door with Coles JEANETTE SEVERS

THE FOOTE family, of Fish Creek in southeastern Victoria, is among dairy farmers selling their total milk production direct to Coles.

John and Marion Foote, with sons Rowen and Kristopher, and their respective wives Sally and Jess, along with two full-time workers, milk an 800-head Holstein herd, producing 10 500 litres/ cow or 715 kg milk solids/cow, annually.

“We put in an expression of interest last year.

Coles’ pricing structure is quite flat so it suited us because we manage a flat curve production model,” Rowen said.

“It’s also a fixed price for three years. Capital investment is a lot easier when you know what your milk price is going to be in the next three years.

“We submitted an expression of interest about how we’d manage our production and herd to fill their criteria. They only wanted a flat supply. We fitted their criteria quite well.”

The herd grazes an effective milking area of 322ha, of the total 700 ha dryland farm, with undulating country and naturally fertile clay loam soils. Working closely with agronomist Stu McNaughton, soil tests are completed every second year and lime is spread on a five-year rotation.

The entire farm is renovated on a five-year rotation with perennial rye-grass pasture, taking advantage of a rainfall where the long-term average is 950 mm.

An annual cropping program sees 42 ha of corn harvested, chopped and stored as pit silage.

A further 20 ha of turnips and 15 ha of sorghum are grazed.

The equivalent of 283–324 ha of rye-grass is harvested as silage each year, stored in the pit mostly. About 1000 round bales are also made.

The 60-stand rotary dairy has an automatic drafting system linked to ear tags, which is used to advantage for the rigorous joining program.

Ten per cent of the herd are cows registered to Rowen’s Jarramah Holstein Stud.

“It’s a way to build capital equity alongside the commercial herd,” he said.

“We target about 100 flushed embryos annually and use them ourselves. We do import some embryos. The stud herd is growing through the embryo transfer work.”

He sells about 15 bulls annually, keeping 10 per cent of the male calf drop from the registered cows for future AI use in the commercial

Fish Creek dairy farmer Rowen Foote is in a three-way partnership with his wife Sally, his parents John and Marion, and his brother Kristopher and wife Jess.

and stud herds. He also sells stud heifers at specialty dairy sales.

“All the bulls are genomically tested so you have a reasonable idea from the start why you’re keeping them,” Rowen said.

About 350 heifers are raised each year, of which 150 are sold to the export market into China.

The split-calving herd, 70 per cent spring and 30 per cent autumn, calves from June to August.

The in-calf rate is high, at 88 per cent, which Rowen credits to feed practices, using fixed-time AI and high conception rate semen, and pregnancy testing at 30 days.

Working closely with ruminant nutritionist Steve Ralston, the cows are fed a supplemental fat diet from day 70 of milking until they are confirmed pregnant.

“They’re grazing in the paddocks and getting corn silage, grass silage and crushed barley on the feed pad, for about an hour, an hour-and-ahalf, twice daily,” Rowen said.

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

Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.

Regional editor news@dairynewsaustralia.com.au

Diet is reviewed monthly at the longest, but effectively every three weeks.

“Each cow receives up to 11 kg of concentrate — 7.5 kg wheat, 2.5 kg canola meal, 500 g protected fat (a mixture of calcium and vegetable fats), a mineral package, long chopped grass silage and pasture,” Mr Ralston said.

The supplemental fat bypasses the rumen and is digested in the intestine, where it aims to improve food utilisation and available metabolisable energy, without affecting production.

Tweaking the feed mix begins on day one and follows the calf through to mating and beyond.

“Rowen grows heifers through to 400 kg to join, with an average calving age of 23 months or 600 kg. He’s willing to hold back heifers to the next joining period to achieve pregnancy rates,” Mr Ralston said.

Heifers recover quicker from their first calving and tend to maintain a better lifetime fertility across the herd.

“We’ve been using fixed-time AI for eight

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years, intensively over the last four years to join every cow in the herd,” Rowen said.

Using normal tail stickers, the cows in heat are automatically drafted after evening milking time.

“We get technicians in because on a standard day, we’d have 100 cows doing AI,” he said.

“We’re pregnancy testing at 30 days to try and get those empty cows rejoined as soon as possible. We rely 100 per cent on AI and a cow can go up to six attempts.”

From this year, the family is keeping all bull calves and growing them out for a Coles meat program.

“We’ve accepted we have a social licence to raise them, and Coles has a market for them,” Rowen said.

“We’ll value add by growing them out to 400 kg as pasture-fed steers, then they’ll probably go into a feedlot system.”

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

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

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

DAIRY NEWS AUSTRALIA JUNE 2020

FEATURE // 7

Guide helps with new supply agreements DAIRY AUSTRALIA has published a guide

to assist dairy farmers with the introduction of new industry-wide milk supply agreements with processing companies, which came into effect on June 1.

A Farmer’s Guide to Milk Supply Agreements and the Dairy Industry Code of Conduct has been designed to make milk supply contract negotiations easier and more transparent.

Dairy Australia’s Trade and Industry Strategy Group manager Charles McElhone said rules around standard form milk supply agreements

were part of the Dairy Industry Code of Conduct launched on January 1.

“As farmers gear up for their new season contract negotiations, for the first time they will be looking at milk supply agreements that come under the Dairy Industry Code of Conduct,” Mr McElhone said.

“Contracts might look different, some of the terminology will be different, there are new terms that have to be incorporated into agreements.

“It’s a priority for us that farmers have access

to information that makes it easier to get their head around some of these changes.

“We’ve developed these resources as a practical guide for farmers to consider how a milk supply agreement aligns with their business.

“All milk supply agreements created, varied or renewed this year are subject to the code and,

by January 2021, all milk supply agreements no matter when they were entered into, must be code-compliant.”

Under the code, anyone who buys milk directly from farmers — including co-operatives,

retailers, brokers and other direct buyers — are defined as processors.

Some sections of the code will not apply to either a farmer or processor if a processor is a small business entity as defined by the code.

Australian Dairy Farmers and Australian Dairy Products Federation contributed to the guide, which can be used in conjunction with contract templates developed by these organisations.

For more information, visit: dairyaustralia. com.au/MSAs

FUTURE DAIRY BATTLES WILL COME FROM ‘LEFT FIELD’ production from other countries.

Instead, he said it could be more “left field”.

“What will happen if somebody can produce our product for a fraction of the cost and risk?,” he said.

Cheaper products, produced “ethically” and offering “something different” will be what consumers in the Year 2030 will demand from the dairy industry, according to Mr Droppert He said these consumer trends were already evident in the popularity of housebrand $1/litre milk and the pressure on

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the beef industry to reduce its hormone use or pork producers to stop using sow stalls — even if the practice increases costs for the primary producer and they can’t be recouped from the market.

Underlying future consumer trends will be a battle between food production fact versus fiction, according to Mr Droppert.

“For us, of course as an industry, facts are important and I think for the dairy industry that facts are on our side,” he said.

“We have a nutritious product and it is good for you.

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things, you can ram it down someone’s throat — but if their friend Karen on the internet says ‘milk is full of pus’ it is these kinds of things that keep getting traction, despite the facts.”

Butter sales prove facts can win, according to Mr Droppert with its “naturalness” winning consumers across from its rival margarine.

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Mail-order ice-cream and dairy protein made in a science laboratory are threats facing the future of the Australian dairy industry.

And this lab-produced dairy could compete with bovine milk products on cost — with production of dairy proteins in a petri dish estimated to cost just 3¢/litre.

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8 // NEWS

Man experiences life after dairying due to life-threatening accident SOPHIE BALDWIN

JAMES GOULDING has always lived by the belief

when one door closes another always opens.

And he would know.

He has looked death in the eye.

And survived.

A decade ago, in his previous life as a former dairy farmer, the Leitchville man was fixing some loose tin on the roof of an old piggery.

Then he was lying flat on his back, staring up at the roof he was supposed to be repairing.

That he survived, it would turn out, was indeed a miracle. His second in as many seconds.

Because on his way down he missed impaling himself and landed on the cement in the narrow walkway between the pens — and that was miracle one.

Looking back he thinks he may have stood on a weakened truss; but by the same token he should not have been working on a roof in gumboots.

Mr Goulding knows he is lucky to be alive, and in many ways the accident has been a rebirth. Not just for him but also for his wife Rose and children Rob, Glenn and Meagan.

It brought forward a decision to sell the dairy farm (which had been in the family more than 50 years) and left him with no alternative but to open a new door — in his case one that has led to a loved and rewarding career at Shepparton GOTAFE as a trainer in dairy, agriculture, pigs — and in one of those little moments when life tweaks your nose, he is also one of the health and safety representatives there.

“I was on the second last sheet of tin and walking backwards when I fell. I was working with Glenn who in shock said to me ‘what are you doing down there Dad’?” he said.

Glenn raced back to the house to call an ambulance and both Glenn and Rose were dumbfounded when James appeared at the door saying he had just broken a couple of ribs and needed some Panadol.

He had no idea he was just two hours from dying — already well on his way to bleeding out A life threatening accident was the catalyst for change for former Leitchville dairy internally. farmer James Goulding. James is now loving life as an agricultural trainer for GOTAFE After being stabilised by Dr Barker at the Cohuna Shepparton after consolidating all his skills after decades in the dairy industry.

District Hospital, he can remember the ambulance speeding up the middle of the road with sirens blaring and being greeted by a group of doctors at the Just as he started going under he finally realised of his care, he asked what they had actually done door to the Bendigo Base Hospital before he was he was in trouble. to him — but once they got to his collapsed lungs, put in a coma.

Months later, visiting the professor in charge broken bones and a bowel operation he switched off.

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NEWS // 9

Back in 2009 on the family farm at Leitchville, James, Rose and Glenn.

Mr Goulding was meant to spend months in recovery but with 300 cows at home and a three-hour round trip for Rose to visit in hospital, while still managing the farm, he knew he was needed at home.

He spent the next three months in a bed in the lounge room; and it was two years before he really recovered closer to his new normal.

“I couldn’t think straight, and I was getting things wrong. I had lost my memory and I had to learn how to concentrate again.

“Lying in bed I started to realise there were so many important things in life and every day you get to enjoy them is a bonus — I realised Rose and I had never been anywhere and only ever had short breaks away. But that is farming.”

The opportunity to sell the farm to a corporate group became another one of those doors you choose in life — albeit a pretty big door, not just for him but for the whole family.

A chance sighting of an article in the paper by GOTAFE and a parallel drive by Dairy Australia to try and keep skilled farmers in the industry gave Mr Goulding the opportunity to try something different.

A lifetime in the dairy industry had left him with a long list of qualifications and in 2013 he was able to attain an Advanced Diploma in Agriculture which led him to study further and gain a Certificate IV in TAE (Training and

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A great source of pride for the family was their innovation in keeping cows cool.

Assessment of Education).

That little piece of paper has now set him on a career path mentoring and teaching people through his role as a trainer at GOTAFE — a role he absolutely loves.

The studying bug had hit and James then went on to complete a Diploma in VET ((Vocational Education and Training).

“I had to learn my way around a computer and my daughter came up to me and put her hand on my shoulder one day and said ‘geez Dad; you really have come a long way’. I am still terrible at the computer, but I am much better than I was,” he laughed.

Mr Goulding said it is important to never underestimate the value of learning or the myriad skills a career in the dairy industry provides.

“I say to the students, who range in age from 16 to 60, to get as many qualifications as they possibly can while they can. If there are three James, Rose and Rob Goulding. people all going for a job and all have the same ability, a certificate will stand you above. It can also help you get into the perks of farm manageHe said students and employers also find it ment without having to find the huge financial easy to relate to him because his background commitment to buy your own farm. means he speaks their language and they know it.

“I have had some wonderful mentors in my “I understand my students really well. When I life, who have helped me get to where I am, and talk about OH&S I can use my own experience of to be able to pass those skills and lessons onto falling through the roof to illustrate how imporothers is so rewarding.” tant it is to stay safe on the farm in any situation;

and the same goes for my dairy knowledge.”

Mr Goulding said 10 years ago he would have never dreamt he would be where he is today.

“If anybody had ever told me one day I would be a teacher I would have laughed; yet here I am doing it and loving every minute of it.”

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10 // NEWS

Support for ACM’s organic suppliers Australian Consolidated Milk’s organic suppliers will benefit from a program funded by the Federal Government.

AUSTRALIAN CONSOLIDATED Milk will use a Federal Government grant to help its organic suppliers better understand soil chemistry to enhance the quality and quantity of

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their fodder.

The $50 000 grant, as part of the Smart Farms Small Grants program, will allow all 30 of ACM’s certified organic suppliers to benefit from soil tests, workshops, face-to-face visits and fact sheets that the company intends to deliver by June 2022.

“The project will allow our certified organic suppliers to learn about the importance of soil chemistry and the link between soil chemistry, soil biology and soil physics and how it leads to fodder growth and animal health in the organic system,” ACM’s organic development officer Liz Mann said.

“This funding will improve the resilience and productive capacity of farms but will also have an immediate effect of stimulating local economies and bringing people together, when the time is right.

The on-farm program will also help farmers understand how to complete soil tests, how to read the data of those tests, what soil factors are most important and what can be done if amelioration is needed.

“A soil test will be done after amelioration to see the impact,” Ms Mann said.

“The ultimate aim is to improve the quantity and quality of fodder to feed their cows.”

Federal Agriculture Minister David Littleproud said 113 projects will share in more than $5 million, as part of the grants program, to equip farmers with new skills and knowledge to improve sustainability and their bottom line.

“Our farmers have always looked after the land and we are giving them a helping hand to adopt best practice natural resource management methods,” Mr Littleproud said.

“It is a critical time for agriculture which is poised to lead Australia’s recovery out of COVID-19.

“This funding will improve the resilience and productive capacity of farms but will also have an immediate effect of stimulating local economies and bringing people together, when the time is right.

“Locals know best and that’s why we’re supporting them in activities such as rolling out projects to improve soil health and demonstrating how new technology, such as drones, can help farming businesses.

For more information about the grants program, visit: agriculture.gov.au

DAIRY NEWS AUSTRALIA JUNE 2020

NEWS // 11

Archers make Tasmanian farmers of the year for the fourth time GRANT AND Kim Archer from Active Dairies

are getting used to being number one after winning Tasmanian Dairy Business of the Year for the fourth time, making them the most successful farmers in the history of the award.

The couple runs Mountain Vale Dairy at Bracknell, a property they purchased in December 2013. Originally milking 210 cows, business has grown over the years to include a rotary dairy, 1200 cows and a pivot irrigation system.

Their success is underpinned by keeping things simple, following a system that suits the farm and the cows, while growing as much pasture as possible.

Dairy extension team leader Lesley Irvine said the judging panel was impressed by the strategic growth of the business through a range of management strategies to achieve high profitability on a predominantly rain-fed dairy farm.

“They have a focus on high pasture

consumption which has involved extensive pasture renovation and drainage works, along with installation of pivot irrigation.

“While the irrigated area has increased on the farm, there is still a large area of rain-fed pasture, making silage an important part of the diet which needs to be balanced carefully to ensure good milk production,” Ms Irvine said.

Supporting and upskilling their farm team through extension and training activities ensures Grant and Kim Archer's dairy farm has been named Tasmanian Dairy Business of the Year for the fourth time. skills and work requirements are matched.

“Putting an emphasis on the system as a whole and focusing on big strategies as well as process and takes into consideration financial year,” Mr Price said. looking after their team are some of the key rea- performance of the business along with the “It is important that we take the time to celsons for their success,” Ms Irvine said. management of the farm team, pasture, cows ebrate the capability of our dairy farmers and The Archers received the award in 2003 on and environment. their excellence in business performance, farm their own farm, and again in 2012 and 2015 while Executive officer Jonathan Price said DairyTas management and human resource management.” they were share farming on other properties. was honoured to help co-ordinate the awards The award was announced over live stream.

The Tasmanian Dairy Business of the Year program. is awarded to the business which records the “Shining a light on the successful dairy busihighest number of points across the judging nesses in Tasmania is always a highlight of our

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DAIRY NEWS AUSTRALIA JUNE 2020

12 // MARKETS

Dairy markets disrupted by pandemic SAM LEISHMAN

HEADING INTO winter, some things were

looking up for the dairy industry.

Favourable weather conditions in many regions, combined with a partial recovery in milk production, have improved the outlook for the coming season.

Late summer and autumn rainfall for most parts of the country lowered demand for fodder, and subsequently prices. This, combined with a strong farm gate milk price, saw production increase year-on-year for the fourth consecutive month in a row (to March).

As domestic conditions turned more favourable, the spread of COVID-19 threw a spanner in the works.

Disruptions to international supply chains have had widespread impacts on global supply and demand, ultimately weakening commodity prices with flow-on impacts to the Australian dairy industry.

The COVID-19 outbreak continues to disrupt the economy and dairy markets, and while it is still too early to fully assess the impact, some initial developments are emerging.

The food-service sector in many overseas markets contributes to a greater share of dairy consumption than retail sectors.

As various levels of lock-downs were implemented, the global food-service sector was virtually shut down.

These closures had an instantaneous impact on dairy demand and saw global commodity prices ease.

As some countries (including China) have started to recover following the COVID-19 outbreak, some positive signs have emerged.

While China’s re-entry into dairy trade in April has been welcomed, many concerns remain, as global demand continues to be under pressure with residents slow to return to restaurants.

Meanwhile, lower global oil price has seen demand for dairy ease in MENA (Middle East and North Africa).

Whilst the Australian dairy industry only exports low volumes to the MENA region, it

is a large source of the world’s overall demand for dairy.

Volumes that were originally destined for this region are likely to spill into other markets, increasing competitiveness for export demand.

Another factor which is currently limiting export opportunities, is the drop in passenger planes available in Southeast Asia.

Additionally, as the economic outlook deteriorates across the globe, rising unemployment and lower levels of discretionary spending will likely impact demand for dairy, particularly in price-sensitive markets such as Southeast Asia and the MENA region.

While the global economic and quarantine restrictions continue to weigh on dairy demand, growth in global supply is compounding the imbalance.

Milk production has continued to grow, particularly as the Northern Hemisphere enters the spring flush period.

Production has expanded in both the

European Union and the United States as both regions experience growth in per-cow yields.

As supply increased and demand significantly dropped, large volumes of milk were being dumped across parts of Europe and the US. In response to the disruptions to supply and demand fundamentals and falling commodity prices in the Northern Hemisphere, both regions have administrated initiatives aimed at supporting those agri-food sectors hit hardest

by COVID-19.

In the US, the government has announced a farmer support package, including the purchasing of dairy products by the Department of Agriculture. Purchased products are to be redistributed to food banks and used as humanitarian aid.

Meanwhile, in the EU, the European Commission has re-introduced a private storage aid (PSA) scheme for skimmed milk powder, butter and cheese for the first time in three years.

The PSA scheme is designed to prevent prices

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falling to a specific level by automatically triggering intervention purchasing.

It is important to monitor these developments, as any change in the global supply of milk has the potential to impact commodity prices.

During the past few months there have been significant disruptions to global supply chains and countries’ economies.

Global supply and demand fundamentals have started to shift, as supply growth in key exporting regions have been compounded by falling demand.

While the Australian dairy industry was relatively well positioned heading into this pandemic, easing global commodity prices and emerging international head-winds will have some flow-on impact.

On a positive note, a weaker Australian dollar and relatively strong domestic demand will help to cushion some of the international pressures.

DAIRY NEWS AUSTRALIA JUNE 2020

NEWS // 13

Dairy co-operative goes into voluntary administration ORGANIC DAIRY Farmers of Australia has

gone into voluntary administration following increased pressure from the coronavirus pandemic.

The dairy co-operative was taken over by Scott Andersen and Ivan Glavas of Worrells Solvency and Forensic Accountants on May 15.

Based in Geelong, Organic Dairy Farmers of Australia is the largest producer of certified organic milk in Australia.

ODFA was established in 2002 and remains 100 per cent owned by more than 40 family farmers who supply fresh, organic milk from three main dairy regions of Victoria, as well as central and north-west Tasmania.

ODFA produces the brand True Organic and its farms are Australian Certified Organic, with many also Chinese-certified.

MILK PRODUCTION UP IN SOUTHERN STATES

Worrells says all ODFA operations are trad- and a second meeting of creditors will be held ing and all employees are continuing in their within 20 to 30 business days, when creditors respective roles. will determine the future for the business.

To discuss options ODFA’s operations, conThe combination of a contracting Chinese market, delayed sales and the impact of COVID- tact the Worrells Geelong office via email at: 19 resulted in the ODFA directors appointing geelong@worrells.net.au or phone on 5222 7624.

Worrells to work through business challenges.

Mr Andersen said he understood the potential for the co-operative and had a strategy for long-term success.

“Our goal, together with the co-operative’s directors, management and members, is to ensure that this integral and unique business continues to deliver its exceptional produce to Australians and to the international market,” Organic Dairy Farmers of Australia Limited he said.

Under the voluntary administration process, has gone into voluntary administration following the impact of the coronavirus. a first meeting of creditors was held on May 27

Milk production in Australia jumped by 6.4 per cent in April, buoyed by an 11 per cent boost in Tasmania and a 10.9 per cent increase in Victorian production.

The strong results in the southern states helped counteract a 19 per cent fall in production in Queensland and a slight 2.7 per cent dip in production out of NSW. The Dairy Australia figures reveal South Australia experienced a 2.1 per cent boost, while Western Australia recorded a 3.2 per cent fall.

In Victoria, production in Gippsland jumped by more than a fifth, while northern Victoria recorded its fourth straight month of increased production, recording a 10.5 per cent jump.

Western Victoria remained steady, with a small increase of 0.2 per cent.

However, milk production across Australia remains slightly down on last year, with a 0.3 per cent dip on 2018–19 levels.

See table below for the latest milk production figures.

Australian milk production 2019/20 by state (million litres) New South Wales

APRIL YTD

18/19 78.4 918.6

19/20 76.2 874.0

Var% -2.7% -4.9%

Victoria 18/19 337.1 4,817.5

19/20 373.8 4,801.2

Queensland Var% 10.9% -0.3%

18/19 26.5 303.8

19/20 21.4 263.9

Var% -19.0% -13.1%

South Australia 18/19 38.7 424.6

19/20 39.5 411.1

Var% 2.1% -3.2%

Western Australia * 18/19 29.7 316.8

19/20 28.7 304.6

Var% -3.2% -3.8%

Tasmania 18/19 71.0 799.6

19/20 78.8 838.0

Australia Var% 11.0% 4.8%

18/19 19/20 581.3 618.5 7,580.9 7,492.8

Var% 6.4% -1.2%

DAIRY NEWS AUSTRALIA JUNE 2020

14 // NEWS

Successful family calls it a day

Rick Blackshaw in the dam fed by a 243-hectare catchment, dry for two years of the drought. The family exited the dairy industry this year after selling the farm, bought by a corporate dairy agribusiness.

JEANETTE SEVERS

THE BLACKSHAW partnership, located at

Romawi (near Bairnsdale), turned sheep country into an irrigated dairy farm with a total herd that peaked at 1050 head, milking 480 cows.

After a successful couple of decades in dairy, and a good walk-in walk-out offer after years of drought and poor prices, the family group exited the industry this year.

But the dairy farm continues, under the

stewardship of Warakirri Dairies, a corporate business that owns other dairy farms in Gippsland and across south-east Australia.

Dennis and Maureen, Rick and Tracey Blackshaw bought 728 ha of sheep country and established a dairy farm, installing a 50-bay rotary stand in 2001, irrigating 206 ha and milking off 130 ha. The remaining irrigated country supports cropping and irrigated pasture paddocks.

The dryland country is the balance of the farm and supports growing out the calves. Steers were grown out to 12 months of age and sold into the store market, for feedlot buyers. Heifers were raised for the herd and the export market.

AI was used across the milking herd, and Friesian bulls joined to the self-replacing heifers. Peak annual production was 3.1 to 3.2 million litres of milk, or 250 000 kg of milk solids.

The farm employed Rick, Dennis, two fulltime workers and two relief milkers.

“I really loved the industry,” Rick said.

“It was a fantastic industry for getting ahead.”

Drought and dairy prices were two of the key trigger points for the family to exit.

“We kept every calf that dropped on the farm.

But for the past three years, we weren’t able to take the steers through to 12 months of age,” Rick said.

“Financially the drought didn’t put us under much pressure, but it was a huge workload sourcing fodder at exorbitant fees. An added workload meant more hours.

“We did what we had to do. We didn’t have the capacity to employ anyone else, because the milk price compared to the cost of production precluded that.

“One of the seasons opened in the high $4/ kg MS.” The farm was well set-up for irrigation, with three centre pivots irrigating 170 ha and 34 ha under lateral sprays. They leased more water in the past few years to keep growing as much pasture as possible. But the prices of fodder, water and diesel, in a depressed commodity market, took their toll.

“That made our decision easier,” Rick said.

“We’d experienced droughts beforehand and come out the other end well. Irrigation meant we had a mostly guaranteed supply of fodder in normal seasons and were able to keep cattle, so we were able to maintain production.

“This drought, we had six continuous failed seasons. We were on the lowest subsoil moisture levels that had ever been recorded.”

One of the dams has a catchment of 243 ha — it’s been dry for the past two years. By spring last year, the herd was culled to the low 400s.

“Water wasn’t falling out of the sky,” Rick said.

“The growth rates of pasture and crops were retarded.

“Pre-drought we were only buying in grain.

With the drought, we had to buy in more than $100 000 worth of hay in a year. That was an increased expenditure.

“Our expenditure was quite accelerated purely and simply because Mother Nature wasn’t giving us a helping hand.”

Suppliers to Murray Goulburn, the family was disillusioned when clawbacks were allowed and Rick said it took his heart out of the industry he loved.

“We became very disillusioned and disgusted with the industry during the clawback,” he said.

“I thought to myself, how and why this could occur to an industry that was very highly regarded, by everybody.

“When it happened, my personal point of view was there was no moralistic outcry.

“I thought there would have at least been some government intervention to support the industry and prevent the clawback from happening. It told me the dairy industry wasn’t on anyone’s priority list.

“After looking at the bigger picture, I questioned would a clawback of earnings have happened in another industry? No, it wouldn’t have happened in the teaching or policing industry.

“That started our thinking almost negatively, for the first time in 16 years of milking and enjoying the industry.”

He blames weak leadership and governance.

“MG’s board of governance members, the risk and finance and audit members, all seemed to be blindsided by leadership decisions that you assume they are across — and then making decisions about clawback and ultimately the folding of MG. “We were very disillusioned.”

The biosecurity and workplace risks threatened by animal activism, with little support for the industry from government, were also a concern.

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DAIRY NEWS AUSTRALIA JUNE 2020

NEWS // 15 “When the agriculture minister indicates that education rather than regulation is the outcome for animal activism against farming, I was really concerned,” Rick said.

“We live and work on an isolated property; we have a young family and responsibility for our workers. With the behaviour of the activists, we installed security cameras around the farm.

“The farm is our home. It’s not just a piece of land. We felt some very serious risk around that.

“We feel there is a jeopardisation around biosecurity about activists invading your farm.

I would have thought the integrity of the biosecurity regulations was paramount.”

So the family researched the options for selling the farm — putting it up for sale, holding an auction, or following an expression of interest process. Over 18 months, they applied the same methodical process they’ve used to weight other business decisions.

They had a current valuation of the farm’s land and infrastructure completed by a property valuer, from Herron Todd White, with experience in agriculture and agribusiness.

The herd was valued separately by dairy livestock agents and the machinery valued by a salesman from Donalda Motors (Bairnsdale).

“Those valuations gave us a very realistic current value and price,” Rick said.

“The milk price — $6.70 to 6.80/kg MS — was through the roof, so we chose to put the farm on the market in August for seven weeks, for an expression of interest as an agribusiness.

“We didn’t put any guidelines down for the EOI — we wanted to see what interest there was.”

Interest rolled in from local landholders and others further afield, within and without the dairy industry.

Profit and loss statements, fertiliser records

and factory production figures were available for scrutiny. The EOI process was administered

by Pat Rice Hawkins, of Melbourne, and advertised through social media, newspapers and real estate ads.

“They also made a video showcasing the farm that was put online,” Rick said.

At the end of the EOI process, several firm offers were tendered.

“The sale agents came to the farm, we read through the EOIs with them and we gave all the interested parties the opportunity to put forward their best offer within 24 hours.

“The farm was sold the next day. We had a few very serious offers on the table and one of those offers met our requirements.

“We signed on the dotted line in early November last year, went through a due diligence process and settlement date was February 18 this year.”

The offer, from Warakirri Dairies, a corporate entity that enables superannuation funds to invest in agriculture, allowed for a walk-in walk-out sale.

Both couples have settled in the local area.

“Tracey works locally, we have a child in the local school and we didn’t want to move elsewhere. We all like the area and have many friends in the area,” Rick said.

“We are now entertaining the next stage of life. The dairy industry has helped us to get here and it was a great industry to be in.”

He is channelling his passion for growing things into gardening and said he was ‘failing grade 5’ supervising home schooling during the coronavirus pandemic.

“It feels just as hard a day but not as long a working day.”

Rick Blackshaw believes short-term tax breaks for agribusinesses would create better outcomes than government-supported loans for drought-affected farms, freeing up cash in the business.

BETTER DROUGHT RELIEF POLICIES NEEDED Rick Blackshaw has very definite ideas about how drought relief should be shaped by government policy for rural businesses, including farms.

Parts of Gippsland are in the fourth year of drought, with successive failed seasons affecting many farm businesses. In the past couple of years, the drought has seen the exit of a number of farmers from the dairy industry.

Victorian farmers have also had to compete against transport subsidies offered by other State governments to farmers, that saw fodder and grain stripped out of Victoria and sold interstate.

“There could have been policies formed around tax breaks, rather than providing loans to farmers,” Mr Blackshaw said.

“Interstate transport subsidies were a cost to Victorian farmers, distorting the market. Even with culling the herd, we still spent $100 000 on fodder in one year.

“That’s disappointing when the farm is set up with irrigation to support full production. We even bought extra water. But when rain doesn’t fall, pasture and crop growth is retarded.”

He believes there is plenty of scope for government and industry bodies to absorb costs for a period of time, to help farmer business finances.

“The diesel rebates could have been increased. Literally anything that could have been held in-house by a government body, to absorb costs, rather than passed on to farmers through levies, should have been,” Mr Blackshaw said.

“Government departments could have absorbed costs — license fees, any fee associated with water, increased diesel rebate, would all have been beneficial to farmers.

“Raising the tax-free threshold and tax breaks around company taxes and PAYG taxes, relaxed for a period of time, would have all provided money that helps keep businesses viable.”

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DAIRY NEWS AUSTRALIA JUNE 2020

16 // NEWS

Pictures tell many dairy stories AFTER BEING inspired by photographers doc-

umenting COVID-19, photographer Kelsie Hore thought the same should be done for Victoria’s dairy farmers.

Growing up on a dairy farm at Leitchville and currently employed as a marketing assistant at Genetics Australia, Kelsie knows all too well the hard work behind producing milk and she was determined to show that particular element in the photos she took.

“COVID-19 has really put everything into perspective and what better way to look at positives then featuring our essential workers on their farms,” she said.

“I really wanted to keep the images raw and natural to show this particular side of farming.”

Putting the call out to farmers, Kelsie was surprised by the response.

“It was a pretty last-minute decision one weekend when I was home. I simply sent out a dozen or so messages and most of the farmers thought it was a great idea.

“There are still a few farmers I didn’t cover purely due to time restraints but I do plan to get back and take some more in the Gannawarra area in the near future.”

She said it was a nice change to get outside and take some pictures.

“Dairy farmers are deemed as essential workers and are the forefront of our local community and I believe we don’t praise or recognise them enough.

“I have been overwhelmed with the response and commentary around the minimum farms I have done so far and I am excited to see what can come out of this going forward.

“It can be easy to become absorbed into the negativity, and having the power to shed some light into what farmers do and the things they are grateful for like rain, growth, families, smiles and health and it is extremely important to create memories to look back upon.”

Photographer Kelsie Hore in action taking pictures for her ‘Via the Farm Gate’ series.

Maddie, Rob, Sheridan, Bronte and Suz Gundry from Gunbower.

Photos: Kelsie Hore

DAIRY NEWS AUSTRALIA JUNE 2020

NEWS // 17

The Dehne family from Leitchville.

Ben and Liam Bowland of Leitchville.

Scott and Bernice Lumsden of Leitchville.

Nick, Craig and Judy Lee from Cohuna.

The Quinn family (from left) Erika and Gregory Quinn, Kelly Hogan, Kaleb, Michelle and Pat Quinn from Macorna.

Greg Goulding of Cohuna.

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DAIRY NEWS AUSTRALIA JUNE 2020

18 // NEWS

Jeff Odgers resigns from Bega Cheese board BEGA CHEESE director Jeff Odgers will step

down from the role on June 30.

Mr Odgers, who farms at Ardmona, made the decision after his son died in a farm accident in March.

“Jeff has been a wonderful contributor to the success of Bega Cheese,” a company statement said.

“His knowledge of the industry from local on-farm issues to global dairy market dynamics have been invaluable.”

Mr Odgers has been a director of Bega Cheese since 2011, having initially joined the company in 2009 as a director of Tatura Milk.

The Bega Cheese board is now on the lookout for a replacement.

Jeff Odgers has announced he will step down from the Bega board.

CALL FOR NEW MILK LEVY

In just 3 years the Salters have taken out Tasmanian Dairy Business of the Year.

This is just the beginning of their story.

When Tim and Fiona Salter converted a Tasmanian beef, sheep and cropping farm to dairy, they brought with them a wealth of knowledge and willingness to try something new.

A high standard of animal, pasture and financial management has allowed them to rapidly grow their milking herd from 380 to 1180 cows, while steadily increasing per cow production. Cow numbers are now where they need to be so Tim and Fiona are working with LIC to improve the genetics in the herd.

“We want cows that sit around the 480kg and can produce their weight or better in milk solids year upon year. We don’t want to ask too much but they also need to hold their condition and weight in tougher times and be easily managed when dry,” says Tim. On the back of three stellar seasons, the Salters are raising the bar higher for 2019-2020, aiming for around 500KgMS per cow.

These figures don’t just impress judges, they show that with the right mix of genetics and management, it’s possible to run a sustainable dairy farming business over the long haul.

Contact us to learn more about how LIC can help with improvement on your farm.

LICI_780_DairyNews_B

1800 454 694 | admin@licaus.com.au | licnz.com/australia.cfm

There's always room for improvement

Victorian businessman John Dahlsen is calling for a supermarket levy supervised by the Australian Competition and Consumer Commission so dairy farmers get a greater slice of the returns on milk sold in supermarkets.

Mr Dahlsen, who is a former Woolworths chairman and ANZ bank director and now owner of JC Dahlsen Group, said the market had failed — and believes the levy would mean more money for farmers at the farm gate.

“The analysis on the dairy industry outlines the huge power imbalance between the retailers and processors and the processor and the farmer,” he said in a paper to the Federal Government.

“It is as much about structure as it is about behaviour.

“The market has failed, and no code of conduct or government jawboning will work.

“With drinkable milk, the problem can only be solved by price regulation.

“The market has failed, and market intervention is required.”

In his paper, Mr Dahlsen said a 40cent levy would bring a smile to every dairy farmer’s face.

“This should go straight to the farmer without deduction by the processor,” he said.

“For the farmer, it does not matter what the retail price is, the farmer requires a lift of 40 cents.

“The retailers should be precluded from extracting any of that price increase out of the processor.

“A recent repeat of the situation with Coles and Lactalis should be avoided.”

Mr Dahlsen also believed the 40cent levy would attract more people to take up dairy farming.

“An increase of 40 cents to the retail price of milk will only give farmers a 13.3 cent increase on the average litre price at the farm gate,” he said.

“Whilst this is attractive, we must recognise that dairy farmers have been disadvantaged for years.

“They now have drought and bushfires (to deal with).

“They do not receive government subsidies as most overseas countries do (but) this increase will attract more dairy farmers, grow the sector and improve exports.”

DAIRY NEWS AUSTRALIA JUNE 2020

NEWS // 19

Crossbreed herd ticks all the boxes SOPHIE BALDWIN

LOOKING TO produce more milk from fewer

cows was the drive behind Tasmanian dairy farmers Paul and Nadine Lambert changing their former Jersey herd to a crossbreed herd.

The process was gradual but now the family milks a majority straight Jersey/Friesian cross and Mr Lambert couldn’t be happier with the decision.

“We had been milking Jerseys for four decades but really we wanted to increase production and reduce our stocking rate; crossbreeds have certainly helped us achieve our goal,” he said.

The crossbreed herd is fed about 1.2 tonne of grain per head, up from 700 kg for the former Jersey herd.

“We have lifted our per-cow grain as well as production, and overall we are milking five per cent less cows and producing 20 per cent more milk and each cow is producing above their body weight in milk solids,” Mr Lambert said.

A ready supply of irrigation water during the summer months makes the farm ideal for spring calving.

Annually the farm uses around 2000 Ml, 800 Ml of which is used on the grazing area while the other 1200 Ml is used to grow maize, potatoes, poppies and support about 200 head of beef cattle and all young stock.

“The dairy platform takes up a third of the irrigated area. This is a long narrow farm and some of the paddocks are just too far for the cows to walk to,” Mr Lambert said.

The cows are all AI with the majority joined to New Zealand genetics.

Mr Lambert said the breeding program was kept relatively simple: if the cow looked like

Jersey it was joined to Friesian, and vice-versa.

“This process is working well for us at the moment. We do use a few crossbreed bulls and have bred a few crossbreed bulls ourselves from our better cows, but we haven’t gone into a three-way cross yet, I am not convinced it’s necessary.”

Crossbreed cows make easy-calving mothers and hardy, robust animals, according to Mr Lambert.

He said they also linked into the beef side of the operation well with the poorer herd performers joined to Murray Grey, Hereford or Angus.

The Lambert farm has been in the family since 1971 while the property itself has been milking cows for 120 years.

For the past 35 years the business has been supplying Cadbury.

Mr Lambert said while he wouldn’t want to dairy farm anywhere else, Tasmania was not without challenges, including climate.

“Like anywhere, dairying is hard work and doesn’t come easy some years, but generally if the grass is growing well the cows are doing well,” he said.

“The return on dairy is currently four times better than beef. It is consistent and I usually know where we are going each year, but there is not always money in it — some years it is all about making the losses as small as possible and maximising profits in others.”

Mr Lambert said looking after the health of the animals had always been central to the business.

“The cows are quiet, and we like to keep them as stress-free as possible.”

The business also focuses on keeping staff well trained and skilled in as many courses as possible. The farm also has its own wellequipped workshop with lathe and welders and

The change to milking a crossbreed herd has proven to be a good one for Tasmanian dairy farmer Paul Lambert who is now milking five per cent less cows but producing 20 per cent more milk. He is pictured with 11-year-old son Benji.

an excavator for earthworks.

“We normally try and do things together with our workers — including movies, meals and barbecues to keep things social and a bit of fun,” Mr Lambert said.

He is passionate about the Tasmanian dairy industry and, like many others, he has been concerned as internationally owned corporates have made their way onto the island, purchasing many of the state’s dairy farms.

Circular head Farms is an Australian

corporation that owns five dairy farms and milks more than 3500 cows in Tasmania.

Mr Lambert is chairman of the board and one of 30 investors.

The three main aims of the company are: to keep land held in Australian hands because it is disappearing quickly to foreign corporates; to provide a pathway for people into the Australian dairy industry through incentives like allowing people to own their own cows; and to be in the top 10 per cent for profitability.

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DAIRY NEWS AUSTRALIA JUNE 2020

20 // NEWS

Illawarra blood flows through family’s veins SOPHIE BALDWIN

THERE ARE not too many people who would

have a stronger association with the Illawarra breed than the English family from Malanda, on the Atherton Tablelands in Queensland.

Greg, wife Bronwyn and their seven children have more than 100 years of Illawarra genetics proudly flowing through their veins and now five generations of dairying under their belt.

The English family originally started farming at Kiama, the birthplace of the Illawarra breed, but Greg’s great-grandfather James English was looking for better opportunities for his family and decided to try his luck in the previously unsettled area of Malanda.

“James came up to Queensland when this area was thrown open for selection in 1908,” Greg said.

“The six cows and six heifers were boated up to Cairns after they were walked through

the centre of Brisbane to get on the boat. They then walked from Cairns to Atherton and were the first cows introduced into the area.”

Greg said it would have been a tough time for his great-grandfather as everyone, including the cows, adjusted to life in tropical Queensland, the different weather conditions, ticks and whatever else the new area threw at them.

In 1922, Greg’s grandfather J.K. English took over the herd and property, naming it Eacham Vale — a name that a century later is synonymous with quality cows in the Illawarra show ring.

“We have such a proud family history and the Illawarra breed has gone on to do very well for us,” Greg said.

Showing Eacham Vale cows in the show ring is a very important part of the day-to-day life of the English family.

Last year they made the decision to travel 1700 km to show six Illawarras at the Royal Queensland Show in Brisbane, a two-day drive just to get the cows there, let alone settled in

Eacham Vale Precious 7 was crowned Champion Illawarra and Supreme Champion of Show at Brisbane Royal Show last year. Pictured with her are (from left) Rachel and Jerry English, sponsor Wayne Bradshaw, Greg and Patrick English and family friend Angus Bewick (front).

and prepared.

However, the trip for Greg and three of his children — Rachel, Jerry and Patrick — and friend Angus Bewick was far from wasted, when fouryear-old Eacham Vale Precious 7 was crowned Champion Illawarra and Supreme Champion of Show, while Eacham Vale Erin 4 was named Supreme Champion Intermediate.

Precious’ win was the first time a breed other than Holstein or Jersey had won the award in

a decade and she was the first Illawarra to win Supreme Champion at Brisbane in 29 years.

“It was a bloody marvellous win because it took so much dedication to take a team of animals that far,” Greg said.

“The cows did travel well but it took aroundthe-clock care. We were away from the farm for two weeks and Bronwyn, Catherine, Hannah, Mary and Frances took care of things at home.”

Greg was also this year’s Illawarra judge at

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DAIRY NEWS AUSTRALIA JUNE 2020

NEWS // 21 International Dairy Week at Tatura, a role he was honoured to fulfil.

The 180-cow Eacham Vale herd is farmed on a milking platform of 72ha, while heifers, calves and dry cows are kept on about 90 ha of out-blocks.

The herd is grazed year-round on pastures of tropical grasses that grow like crazy over summer and autumn and slow down over the winter months.

Spring is the driest period.

“We don’t have any irrigation but we do receive massive amounts of rain over summer; sometimes it would be nice if it was a bit more balanced out over the year,” Greg said.

“We slash or top the paddocks to help with management because the grasses can grow fairly quickly over summer.”

The family doesn’t conserve hay or silage and the milking herd is supplemented with heavy grain feeding in the dairy and cottonseed in spring. There are no plans to further increase herd numbers at this stage.

“The home farm is well stocked and I would prefer to milk a few less cows, feed them better and get better production than half-feeding a heap of cows which can then lead into a heap of other issues including reproduction issues,” Greg said.

He said the Illawarra breed was hardy and well-suited to the region.

“We do have an element of Red Holstein in our genetics.

"This has improved production and udder quality of our cows while retaining the lowmaintenance traits of the Illawarra breed — they

calve easy, have great fertility and good feet, which is very important for us: all our laneways are cement so the cows must have good feet.”

While conditions can be tough, the Illawarra genetics in the herd have had more than 100 years to acclimatise.

“A cow with no exposure to ticks can die within in a day in extreme cases and any introduced to the region from out of the area must be vaccinated,” Greg said.

The relative isolation of the area can also make things difficult.

“Everything needs to be freighted which adds a cost to whatever we do, and we don’t have any competition when it comes to processors either.

“We supply Lion Dairy Drinks Group (they have only ever had one processor) and with the sale going through who knows where our milk will end up.”

Greg said prior to deregulation there were about 200 dairy farms in the area; now there are less than 50.

“Dollar-a-litre milk has really hurt us and the entire Queensland Dairy industry and it is horrific how many farmers have exited the industry.

“I know I sound like a broken record but the Australian supermarket industry has a lot to answer for, expecting Australian farmers to produce top quality food for nothing.

“I hope COVID-19 makes consumers realise the importance of the quality of food we produce here in Australia, not something imported and grown in a Third World sewer.”

Eacham Vale Precious 7 was Supreme Champion at the Brisbane Royal Show in 2019 and the Agri-Gene Illawarra Australian photographic competition champion four-year-old in-milk.

Greg English and sons Patrick and Jerry.

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DAIRY NEWS AUSTRALIA JUNE 2020

22 // NEWS

A different way to farm SOPHIE BALDWIN

A BURNING desire to own land in his home

state of Tasmania led Stephen Fisher on a journey he couldn’t possibly have foreseen.

Mr Fisher is the driving force and director behind Circular Head Farms (CHF), a community-based investment group milking 3700 cows and producing about 1.6 million kilograms of milk solids across five dairy farms in the Circular Head area of Tasmania.

While CHF has a desire to be profitable, its number one goal is to provide a pathway for people into the dairy industry based on a successful sharefarming model, a process which helped Stephen himself get a foot in the door of what is an extremely expensive industry.

“Obviously we need a robust system but it is not one dictated by profit; we put our people first and that is the important bit.

“Structured correctly, a sharefarming arrangement provides a strong incentive for both the sharefarmer and business partner to succeed, and the success of arrangements like this really relies on all parties succeeding,” Mr Fisher said.

He said CHF aimed to attract the right people, regardless of their financial status.

The other main driver behind the group is to help retain local ownership in land.

“Around 60 per cent of the milk produced in Circular Head is now owned by foreign corporates, and I know around 10 farms in the last month that have been sold or are close to being sold to overseas owners.”

He said it was important Australia maintained long-term ownership of land to ensure a pathway Circular Head Farms sharefarmers Adam and Jane Bailey on the conversion dairy farm. for future dairy farmers.

“Working on the farm you survive, thrive and own it and that is where wealth is created in our Dairy Farmer of the Year award in 2017. block of 311 ha has just been completed after a “This is exactly what we were hoping would three-year process to harvest the trees, remove communities; and rather than complain about foreign ownership, collectively we must maintain happen; when you employ the right people and the stumps and plant pasture. ownership of our most precious resource — land. give them the right opportunity, everyone can CHF has ended up with 260 ha of perennial “If we want young people to enter the industry win,” Mr Fisher said. rye pasture and about 50 ha of native bushland. and have future ownership too, then there needs He said CHF had grown steadily during the “The soil is good, it is just a bit hungry after a to be an opportunity for that to happen. CHF past six years; and, while it did not tend to pay lack of inputs over the last 15 years,” Mr Fisher provides an investment vehicle to achieve own- large dividends, but rather chose to reinvest said. ership and keep land in our local communities.” back into the business, its unit value had grown “We will continue to purchase land if the Cody and Denieka Korpershoek were the first from $1 to $2.18. opportunity presents itself. Potentially, it could of four sharefarmers to be employed by CHF and Some of the investment has included purchas- lend itself to a dairy conversion if the numbers they have gone on to invest in the business model ing 890 ha of failed tree plantations to convert stack up.”

Growing up on a small dairy farm, Mr Fisher themselves. The couple also won Fonterra’s Share back into dairy support pasture, and the first

initially chose to follow a career in agriculture outside the family business.

“My first job was in agribusiness and then I decided to obtain an associate diploma of applied science — all the dairy subjects were what attracted most of my interest, and I had a very strong desire to own my own land.”

Mr Fisher decided to quit his job, and at 32 he entered into his first sharefarming arrangement, milking with his brother and family. Initially it was meant to be 400 cows but soon turned into 700 for Van Dieman’s Land Company.

“We were there for five years and in hindsight

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NEWS // 23

Circular Head Farms is a community-owned dairy farm milking 3700 cows and producing 1.6 million kilograms of milk solids at Circular Head, Tasmania.

working with big herd numbers was a good baptism,” Mr Fisher said.

Then, he and his family decided to hit the road and travel around Australia for three years.

On their return, Mr Fisher joked that he had his biggest midlife crisis ever, resulting in the purchase of 750 cows.

“We weren’t looking for a job but rather an opportunity to grow the busines,” he said.

“We were fortunate to be given an opportunity to sharefarm 50–50 and we could see this was the opportunity we were looking for.

“I am a strong believer in sharefarming arrangements, and the success of ours relied on fairness to all parties.

“People are the key to farming businesses, and this is something that can be overlooked in corporate farming which is often driven by profit and the bottom line.”

A few years ago, Mr Fisher and wife Karen purchased their own 450 cow farm to diversify some of their investment away from CHF, and now have their own sharefarmer running that particular business.

“Working on the farm you survive, thrive and own it and that is where wealth is created in our communities; and rather than complain about foreign ownership, collectively we must maintain ownership of our most precious resource — land.

The temperate climate, reliable high rainfall and the region’s ability to grow grass make Circular Head the perfect place to farm and attract investment.

“We are really confident in the industry model we have used to develop future dairy ownership,” Mr Fisher said.

“Would it work in other areas or other industries? I don’t really know.”

He said having an experienced board who shared the same principles had made the process of running such a large company easier.

“Having good governance and the right people involved when you are dealing with other people’s money is essential. I am fairly satisfied with what we have been able to achieve so far.”

CHF has just released the information memorandum for the annual capital raise to continue the growth strategy.

Former plantation land has been converted into pasture to support the dairy operation

Y R I A D Y R E V REACHING E Y R T N U O C E H FARMER IN T

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STOCKFEEDS SPECIAL REPORT With pasture in short supply and calving season looming, all eyes are on cow condition and having enough feed to get the herd through winter.

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EDITORIAL SUBMISSIONS: Should be sent direct to the editor Alana Christensen at editor@dairynewsaustralia.com.au by Jun 18

BOOKING DEADLINE: June 18 AD MATERIAL DEADLINE: July 2 PUBLISHED: July 14

CONTACT: Max Hyde | T: 0408 558 938 | E: max.hyde@dairynewsaustralia.com.au

DAIRY NEWS AUSTRALIA JUNE 2020

24 // NEWS

Sharefarmer gets a foot in the door THE SHAREFARMING model of Circular

Head Farms has certainly helped Cody and Denieka Korpershoek grow their asset base in the Tasmanian dairy industry.

Cody grew up on a farm but started his career as a builder; six years ago the decision was made to move into dairy farming.

"We produce a food product the country consumes on a regular basis and dairying has never felt like a job to me like building always did," he said.

"I love the process of growing grass and watching my stock grow from calves to heifers and cows.”

The move into dairying wasn’t without its early dramas.

“Initially Danieka wasn’t too keen because we had to sell the new home I had just built for us and it did take some persuading — but here we are now with an asset growth we never would have had, if I had of stayed in the building industry,” Cody said.

In 2014 the couple managed the first of the Circular Head Farms (CHF) properties on a cents per kilo basis, initially to see if it was a good fit for both parties.

The following year they moved to a 50–50 share.

“In 2016 we bought half the herd (300 cows) and CHF also allowed us to buy in some additional animals and rear some young stock,” Cody said.

"The next year we bought the whole herd and increased herd numbers to 650; I was pretty impatient to get stuck into owning the herd."

The couple also purchased a 200 ha run-off block that was used in conjunction with the dairy enterprise, and herd numbers steadily increased to 870.

They then decided they wanted to take the next step into farm ownership and were looking to get some equity. After discussions with CHF the dream became a reality and within a short amount of time a farm was found and Champions Park was set up.

Cody and Danieka own 20 per cent of the unit trust for Champions Park and sharefarm the operation on a 50–50 basis with CHF. A sharefarmer is employed by the unit trust to run the operation and Cody and Denieka own the herd.

“We envisage the process will see us purchasing more shares as we continue to invest to improve the farm and, if and when it works out, hopefully we will end up buying out CHF’s share — we sold our run-off block to move the

The sharefarming model for Circular Head Farms has allowed Tasmanian sharefarmer Cody Korpershoek to expand his asset base in six years to include 1500 cows, machinery and an equity share in a dairy farm.

process forward,” Cody said.

Cody said while they didn’t come into the industry with much, they have been able to grow their asset base to include 1500 cows, machinery and now an equity share.

“We are obviously driven as a couple but we could have never got to where we are today without the support of CHF. "We are in a better position than a lot of other people who started out the same time as us and I know we are extremely lucky to have been given this opportunity.”

He said it was a shame this model wasn’t repeated across the country.

“There are a lot of good people working in the industry as managers, which takes a lot out of you emotionally and physically, and it can be demanding on family life.

"Managers are paid well but don’t have anything to show for it.

"When you sharefarm or have an equity share it works well because both parties have skin in the game — personally I don’t like the manager model, but it seems to be the most common.”

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CALF REARING // 25

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26 // CALF REARING

Consistency drives calf rearing success

Tom Newton, Cindy Lucas and Dave Pullen shared their experiences at a calf rearing seminar at International Dairy Week in January.

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CONSISTENCY IN all that we do around calves is pivotal to calf health, wellbeing and performance.

This was the overarching message when MaxCare hosted a calf rearing seminar at International Dairy Week in Tatura in January, and a message that continues to remain relevant today.

Tom Newton, who hosted the panel, commented on the intention of the discussion.

“We are conscious that most calf rearing systems are unique in their own way, however, regardless of the system we want to highlight the key fundamentals that need to be focused on every day to deliver happy, healthy, and productive animals no matter what your system is,” he said.

To deliver this message, the panel featured a mix of experiences with Cindy Lucas and Dave Pullen.

Cindy, a contract calf rearer for more than 10 years, collects animals from several farms and generally works with her calves on her own.

Dave, who practised as a veterinarian working across a broad range of farms and rearing systems, is now the dairy manager on a large-scale farm rearing high numbers of calves every day with large teams of staff responsible for different areas of the rearing system.

When asked, Cindy was very clear on the key areas she focuses on every day in her operation.

“We aim to minimise stress by providing consistency in all that we do with and around the calves,” she said.

“We focus on hygiene all the time with everything we do, and we are always observing the animals so we can pick up any calf who is not behaving the way we would expect.”

Dave agreed that consistency was the key.

“It is imperative to have good systems whether you have one or 100 staff,” he said.

“We need to ensure that calves are treated consistently in the correct way. Every day we look for ways we can improve what we do.

“Routine and systems work well for calves and people, and if we do make changes, we ensure they are gradual, so calves are never dealing with more than one stress at a time.”

Both Cindy and Dave agree that good

nutrition and consistency in the diet and feeding times are vital, and that colostrum management needs to be a focus with a newborn calf.

With colostrum the emphasis is on delivering a high-quality colostrum as soon as possible after birth, with Dave and his team aiming to administer colostrum within three hours of birth to ensure the best possible absorption of immunoglobulins.

“In situations where you are buying calves in from outside your farm you have limited input or control over some key management areas including heifers, dry cows, calving paddocks, colostrum, initial feeding and the calf environment,” Cindy said.

“The focus and effort put into pre- and postcalving management is repaid with healthier calves.

“It is important to understand that every farm, farmer and herd is different, and it is vital to develop a system that suits each individual circumstance.”

When queried on ways to minimise stress in calves, Dave said calf comfort was essential.

“We focus on providing a warm, dry, draughtfree and hygienic environment for all our calves and will wash and dry calves if they are born into unhygienic surroundings,” he said.

Cindy added that, aside from good nutrition, keeping calves happy, healthy and growing was paramount.

“We maintain a consistent routine, and we allow our calves to exhibit their natural behaviours,” she said.

What is measured gets managed and both agreed that every farm should target a zero per cent mortality rate and the importance of investigating the reasons behind any sickness or mortality to identify areas of improvement.

Dave and his team also measure calf weights as they come into the shed and again at weaning so they can monitor output and improve their processes.

In summary, Dave and Cindy both agreed that hygiene, nutrition and comfort were the key areas that farmers need to focus their attention on, with the caveat that consistency in each of these areas every day is vitally important.

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DAIRY NEWS AUSTRALIA JUNE 2020

28 // CALF REARING

Probiotics help grow healthier calves A FAMILY operation that calved down 850 cows Tatura dairy farmer Annie Newton.

in spring has slashed antibiotic use in its calves by up to 70 per cent.

Greg Perry, Annie Newton and Greg’s son Scott milk 1400 cows between two rotary dairies on 500 ha at Tatura in northern Victoria.

Annie oversees managing the calves, and the calf-rearing team.

Diligent, observant and committed to rearing the best calves possible, Annie has left no stone unturned in her pursuit of excellence, establishing exacting protocols in Perry Farms’ calf pens because she understands the sheer scale of their operation means calves will be exposed to challenges.

Yet, as Annie sat down to discuss their approach after tagging almost 300 calves for the season, she talked about individual animals — not just the numbers.

“Our calves are really important to us because they are our replacements, and it’s been proven time and again that the first couple of weeks of their life is so critical,” Annie said.

“That time really depicts how they are going to calve down and their production potential. So, it’s important to look after them from the word go.”

Perry Farms’ protocols include meticulous colostrum management, high-level hygiene practices, and the inclusion (for the first time this season) of the natural and potent probiotic additive BioCalf, which contains Australia’s only allnatural coccidiostat.

The family is also using BioBoost paste, a probiotic paste which is 40 times stronger than any other product.

Annie said including BioCalf and BioBoost — after reading about its use at Hooper Farms, in Gippsland — gave her the vital final piece of her own calf-rearing jigsaw puzzle.

Their inclusion has been the only significant change made this season, and Annie said to have reduced their reliance on antibiotics by 70 per cent had been a game-changer.

BioCalf is added to the milk at one gram per calf per day. Its all-natural coccidiostat is Yucca schidigera (known as yucca).

Yucca is native to Mexico and the south-west of the United States. Native Americans recognised yucca as a “tree of life”, with health-promoting activity.

Its extracts have been used for centuries, including in US cattle production for more than 30 years. Yucca contains naturally occurring saponins, which help bind protozoal pathogens such as coccidiosis and cryptosporidium. Other positive effects from including yucca include improved growth rates, feed efficiency and general health.

“We were using another product before BioCalf to help prevent crypto, E.coli and coccidiosis,” Annie said.

(Crypto, or cryptosporidium, is one of the most common causes of calf scouring/dehydration in calves under six weeks old.)

“The first thing we noticed with Biocalf was that it mixed like a dream,” she said.

“It also stayed suspended in the milk, so we knew the calves were getting it. Sometimes mixing can be a challenge with some additives.”

Annie also included BioBoost for its potency — and she isn’t the first to fall in love with its impact on newborns and sick calves.

“Every calf we kept was given a dose of the BioBoost paste on their tongue at birth. I figured it was giving them ‘something extra’ to fight against any bugs we might have.

“If any calf didn’t seem ‘right’ at any point, we’d give them a double dose of the paste as a precaution.

“It was so simple, because you just slip it onto their tongue, and it worked really well as an early preventative treatment that was non-invasive, effective and easy to do.

“Now that the calves are bigger, and they are outside in the paddocks, if something doesn’t look quite right, they get the paste.

“It has cut down our use of antibiotics — I’d say by more than 70 per cent, but in all honesty it may be even higher than that.

“It’s not only the expense when you have to use antibiotics, it’s the stress for the calves, and the worry and extra work for our staff.”

Annie said BioCalf and BioBoost had also changed the look of their quarantine area for sick calves.

“Last year we had to make a shed into a designated hospital pen. This year we have had nothing like that.

“We set up a separate pen again to be safe, but the maximum number at any one time was six calves.”

Perry Farms operates a ‘three-dot traffic light’ paint system with new calves. If they have been sprayed with a red, orange and green dot, they have received Perry Farms’ ‘gold standard’ start, which includes: ■■ Red dot: Colostrum (tubed with colostrum measured as Brix score of 22 per cent or better within 12 hours).

■■ Green dot: Umbilical cord dipped in methylated spirits and iodine solution.

■■ Orange dot: BioBoost paste given at birth.

New calves are grouped in no more than eight per pen. After their colostrum, they are fed four litres/day of fortified milk (split into two feeds) until day five.

DAIRY NEWS AUSTRALIA JUNE 2020

CALF REARING // 29 They then go to once-a-day feeding with fortified milk.

The timelines for how long they will get fortified milk remains a fluid conversation.

Annie said it was important to note that their system was only as strong as its weakest link.

In her thirst for knowledge, she has settled on two high-performing sanitising products: popular European product, Stalosan F (powder) and biodegradable Germidet (detergent and sanitiser).

Everyone who visits or works the calf sheds is asked to dip their boots and sanitise their gloves at the provided hygiene stations.

“It helps stop the potential spread of germs and, once the calf feeders have been washed each morning, the teats are sprayed with the Germidet solution to kill any bugs.”

Danish product Stalosan F has a pH below four.

The non-toxic powder works because it includes high levels of copper and iron oxide, which are both well-known antimicrobials; the unique combination of minerals binds up to 100 per cent moisture where ammonia is present.

It is also far less toxic to work with than lime.

“We muck-out calf pens every day,” Annie said.

“When we set them up at the start of calving, the pens are initially sprayed with the Germidet solution.

“Once it has dried we start by using Stalosan, we then add pine mulch and pine shavings for the bedding.

“When we top them up, we use Stalosan again because it dries the pens out, disinfects and reduces ammonia.

“And, we use Stalosan in the sick-calf pens every day. If the calves outside are not sick, but perhaps they have manure that is a bit loose, we’ll just sprinkle some Stalosan over the manure.

“We do that in the calf sheds too. For five minutes work per shed, I think it’s worth it. It’s all about prevention.”

Annie has been grateful for Daviesway’s Brendan Johnson, who keeps in regular touch with what’s happening in the global calf-rearing space.

“Brendan’s input has made all the difference,” she said.

“He just gives me the information, he’s not pushy and he lets me decide what I want to do.”

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DAIRY NEWS AUSTRALIA JUNE 2020

30 // CALF REARING

Managing calf rearing during COVID-19 CALF REARING on any dairy farm can be

demanding.

It requires attention to detail, especially during the first month of an individual calf’s life.

This is when neonatal disease risk is highest and feeding practices are being established to set up each animal for a healthy and productive future.

Calf rearing tasks are, at a minimum, daily jobs.

They cannot be easily deferred in the face of changing circumstances.

With this in mind, it is important to have a plan to protect calf rearing activities from any impact that COVID-19 may have on your farm operations.

Stopping the spread of COVID-19 during the calf rearing period ■■ Wear disposable gloves (if available) during

■■

■■

■■

■■

■■

■■

all calf rearing tasks, especially feeding.

Sanitise gloves with 70 per cent alcohol/ other disinfectant between tasks and wash hands regularly.

Only involve more than one person in calf rearing where workload makes this a necessity.

Maintain physical distance during rearing tasks — divide pens between people so that each member of the team has sole responsibility for a pen or group of pens.

Do not share protective clothing or boots — clean and disinfect after each session.

Where possible, have separate calf rearing equipment for each team member (such as feeders, mixing equipment and ear tag applicators) or clean and disinfect equipment between users.

Quarantine or disinfect all deliveries

■■

required for calf rearing — let any container of supplies sit for seven days or apply chemical disinfectant.

Have minimal entry and exit points to make cleaning and disinfecting high touch surfaces (such as gates) easier.

Calf rearing options where the farm workforce is reduced Should your farm workforce be compromised by COVID-19 (self-isolation or infection) consider the following options to manage the daily calf rearing workload: ■■ Have routine calf rearing procedures clearly documented so that care can be provided by any team member when required.

■■ Where calf feeding happens twice daily, consider shifting to once daily for a short period — reserve this practice for calves older than 14 days and maintain per calf daily allowance.

Consider weaning calves earlier — ensure adequate concentrate consumption to minimise effects on growth rates.

■■ Consider methods to streamline the mixing of milk replacer powder if this has not already been done (changing to whole milk for a period may also be an option).

■■ Consider methods to streamline any tasks which are out of routine (for example, treating sick calves).

■■ Consider using external contractors (for example, for disbudding). Ensure all service providers apply COVID-19 prevention strategies.

Many of these strategies will also lessen the risk of neonatal calf diseases (such as scours) as disease transmission prevention steps apply to many types of pathogens.

For more information, visit: dairyaustralia.com.au/c19 ■■

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DAIRY NEWS AUSTRALIA JUNE 2020

CALF REARING // 31

Start cows right for best results AUSTRALIAN DAIRY farmers have always

known that happy, healthy and well-fed heifers will stay in the herd for longer and be more productive.

This begins with establishing them right on a healthy lead feed.

Many farmers across Australia looking for highly palatable and durable dairy pellets with minimal dust have experienced positive results with the Proteena pellet range from Castlegate James.

During the transition period farmers are looking to present the cow in optimum body condition to calve and enter the dairy by providing her with enough energy and protein, ensuring her rumen is functioning efficiently to drive milk production, good health and reproductive performance.

The Proteena range is specifically formulated and manufactured to meet these nutritional needs across the year from dry, through transition, to peak milk and mid to late lactation, incorporating the critical nutrients required by the cow such as: buffers, macro and trace minerals, vitamins and Monensin in a balanced and highly palatable package.

The incorporation of a balanced mix of starches, sugars, fats and proteins into the pellets, and the treatment through the pelleting process with pressurised steam and extrusion, enhances the palatability of the pellets with better aromas and taste.

This increases the cow’s intake, while simultaneously increasing digestibility and lowering the risks of acidosis.

In addition to the above benefits, cows will enjoy the improved taste of a DCAD-lowering and palatable anionic salt blend — improving intake and preparing the rumen and digestive system for post-calving performance. It does this by providing the right mix of sugars, starches and proteins, while concurrently lowering the risks of milk fever and ketosis.

Farmers looking for consistency of feed postcalving can maintain this by feeding milkers Proteena pellets providing high energy (12–13 Mj ME/kg DM) with varying protein levels to best match the other feeds in the diet, including: ■■ Proteena Advanced Protein for high producing cows or low pasture intakes (18 per cent CP); ■■ Proteena Pasture Boost for lower producing or higher pasture intakes (15 per cent CP); and ■■ Proteena All-Rounder for late lactation, dry or very high pasture intakes (12 per cent CP).

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27/05/2020 10:57:43 AM

DAIRY NEWS AUSTRALIA JUNE 2020

32 // ANIMAL HEALTH

Prepare the team ahead of the game LUCY COLLINS

WHEN IT comes to preparing for the next join-

ing period, it’s never too early to start thinking about your bulls.

Often, these blokes are away in a back paddock or at the out-block, out of sight and out of mind.

However, a recent study in south-west Victoria likened bulls to an elite sports team and provided some compelling reasons to prepare in advance to optimise performance.

THE DRAFT Current industry recommendations are to use bulls 15 months to four years old, with bulls older than four years twice as likely to fail a fertility test as a bull under four.

Breed should be selected based on factors such as genetics, calving ease, farm preference and intended markets for non-replacement calves.

Bull power needs to be at least three per cent (three bulls per 100 cows), or four per cent if a synchrony program was used.

The key here is to remember that increasing bull numbers alone does not necessarily compensate for poor performers or poor management — a socially dominant bull but sub-fertile bull may serve more cows than other less dominant bulls, but not necessarily sire more calves.

Similarly, a sub-fertile bull team may take longer to get the job done, protracting the joining period and resulting in less early-calvers next calving period, and subsequently poorer herd fertility the next joining period.

Purchased bulls should have a known health and vaccination history. Main diseases of concern are pestivirus (BVDV), vibriosis, leptospirosis, bovine herpes virus and trichomonosis.

Bulls with unknown health status should be tested and screened for venereal diseases before having any contact with your herd.

Where possible, avoid poor conformation, straight hind legs and swollen hocks — these players are at a much higher risk of lameness and are likely to break down mid-season.

Eyes need to be clear in order to visualise cows for serving, and heads and jaws healthy and mobile to ensure normal eating during the joining period.

Temperament and size must also be taken

Columnist and Kyabram vet Lucy Collins.

into consideration, ensuring the safety of dairy staff and minimising the risk of injury to other animals on-farm is paramount.

PRE-SEASON Applying preventative hoof-blocks may have merits in some teams to help prevent or minimise hoof trauma and lameness, but again should not be used to mask any major underlying pathology.

Ideally, your bull team should be introduced to each other no later than two to three months prior to joining. This allows plenty of time for them to establish a social hierarchy well in advance of time, without the added stress of fighting just prior to or during a joining period.

A Veterinary Bull Breeding Soundness Exam (VBBSE) is always advisable prior to joining season commencement, ideally allowing enough time before for any changes to the game plan to be made if one or more of the team require benching.

It can be difficult to source additional players at late notice, and this can put your farm’s biosecurity at risk, and your team’s social hierarchy into turmoil.

Expect a 20 per cent failure rate at time of VBBSE and have adequate numbers of bulls to allow for this.

Defects in semen motility or morphology are not noticeable to the naked eye, and require a VBBSE and laboratory testing to determine.

Issues with sperm may be transient (for example, caused by a period of stress or illness in a bull, often taking up to eight weeks to fully recover) or permanent, compensable (overcome with enough numbers) or non-compensable (increased numbers will not compensate for the defect).

The cost of letting a faulty player go undetected can be disastrous.

Fat bulls can have reduced libido, and excessive scrotal fat deposits reduces semen quality.

Maintaining a moderate body condition score throughout the pre-joining and joining periods is recommended.

Excessive concentrate feeding can lead to laminitis and predispose to arthritis, and bulls are four times more likely to fail a VBBSE if fed grain in the pre-mating period.

Feeding the same quality pasture and forage

the milkers receive should be adequate for most paddock bulls.

SEASON Depending on your management plan, periodic resting of bulls during the joining period may be warranted, running half the team at a time and rotating weekly, allowing bulls to rest and reducing the risk of breakdown.

How you manage your bench will ultimately depend on the length of your season and the size of your team, but as always it helps to plan ahead.

Finally, it is important to actually watch the game! Serving ability is often not performed during a VBBSE, so it may be down to you to make the final coaching call on whether your players are up to scratch.

You need to ensure bulls are achieving intromission and are maintaining acceptable libido, and you should routinely monitor for lameness and injury.

Lucy Collins is completing her dairy residency with The University of Melbourne. She works as an on-farm veterinarian in Kyabram with Apiam Animal Health and alongside her partner on his 600-cow dairy farm in Dixie.

DAIRY NEWS AUSTRALIA JUNE 2020

ANIMAL HEALTH // 33

Tips for transition cow management ABOUT 80 per cent of all cow health problems

occur within four weeks of calving.

Gippsland dairy farmers Mike and Sarah O’Brien have developed a transition feeding program to reduce the stress associated with cow health problems like milk fever.

Their business is one of several case studies that will be focused on during Dairy Australia’s new Transition Cow Management online program, currently being offered through regional extension programs. Contact your region’s organisation to find out more.

Dairy Australia says you don’t have to change your farm business, production objectives, feeding system or grain/concentrate feeding rate to improve your transition cow management.

There are transition feeding options suitable for all feeding systems.

Use this checklist to help you implement the key steps for a successful transition period.

Feed the transition diet for as close to 21 days as possible This relies on accurate calving dates. Early pregnancy testing of all cows and heifers by a skilled operator between five and 15 weeks of gestation will enable this.

Sourcing and testing forage Obtain a single consignment of forage from one source if possible. Test forage with both a standard feed test and wet chemistry mineral analysis. Test pasture if it will comprise more than 2 kg DM/cow/day in the transition diet.

Balancing the diet Work with a nutrition adviser or use the Transition Diet Milk Fever Risk Calculator to adjust feeding levels to meet energy and protein requirements and manage milk fever risk.

If feeding a concentrate designed for milkers, check that it doesn’t contain bicarbonate as a buffer.

Do you plan on using a commercial lead feed pellet, DIY anionic salts (for example, mag chloride) or something else? Use the same concentrate type as you will use after calving (for example, grain or pellets).

Choosing springer paddocks Choose paddocks that have not been irrigated with effluent or received heavy applications of potassium fertilisers. Rotating calving paddocks is good practice to avoid nutrient loading.

Repair leaking troughs, boggy gateways and restrict access to dams to manage mastitis risk.

Also scrape or wash down feed pad regularly (if applicable).

Calculate daily pasture mass and strip graze to manage intakes, especially if it will comprise more than 2 kg DM/cow/day in the transition diet.

If applicable, ensure you have enough trough space (at least 75 cm per cow) and/or hay rings (at least one per 20 cows) to ensure all cows and heifers have equal access to the transition diet.

Use a mineral dispenser if putting DIY salts (for example, mag chloride) in water troughs.

These are available from most rural stores.

Calibrate regularly according to manufacturer’s directions.

“Dairy Australia says you don’t have to change your farm business, production objectives, feeding system or grain/ concentrate feeding rate to improve your transition cow management.”

Staff Ensure staff have been adequately trained in their required tasks and simple, written standard operating procedures (SOPs) are available to them.

Feeding out Ensure you’ve made realistic allowances for wastage (may be up to 35 per cent when fed on bare ground).

Start milking cows and heifers early if they have udder oedema or are running milk.

If feeding concentrates through the dairy — check and calibrate feed systems regularly. Observe for mastitis and apply teat disinfectant to all surfaces of teats daily.

Monitor the success of your program Use the Cow Health Problems at Calving Tally Sheet or existing herd recording system to monitor cow health.

Use the Transition Program Review Worksheet to assess how well the program worked and plan any changes.

For more information on transition cow management, visit: dairyaustralia.com.au/TCM

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DAIRY NEWS AUSTRALIA JUNE 2020

34 // MACHINERY

Machinery scam warning AUTHORITIES ARE warning farmers to

beware of fake websites pretending to sell farm machinery after an increasing number have fallen prey to the scam.

More than nine people in Western Australia have been scammed, with losses totalling more than $142 000 after they paid for tractors and other farm machinery that were advertised at

greatly discounted prices on fake websites, but the goods never turned up.

Authorities fear the losses will increase around the country as more sites appear.

Originally, the tractors were purchased from a bogus website “Bora Machinery” and a fake courier company “Australia MD Transport” was used to fool victims into believing that their purchases

were being delivered.

These websites have now been closed down.

However, other websites have sprung up to take their place including Geiger Tractors (www. geigertractors.com), ABM Farming (www. abmfarming.com), AP Agriculture (www.apagricultures.com) and Shine Machinery (www. shine-machinery.com)

And another fake transport company “Australia AD Transport” (www.australiaadtransport.com) is now being used with a slight change of name to the original one.

These sites are in the process of being shut down by Western Australia’s Consumer Protection office.

Consumer Protection commissioner Lanie Chopping said the fake websites looked professional and the prices were extremely attractive.

“Some of the tractors being offered on these fake websites are at least half the normal market price, so I can understand why people are enticed into snatching a bargain,” Ms Chopping said.

“But the losses, both individually and as a total, are very high and more farmers around Australia are being stung as they look for cheap deals to keep their costs down but sadly end up being out of pocket.

“It’s becoming more difficult for fake websites to be recognised, as they often steal the identity and ABNs of legitimate online retailers. But if the prices being offered are too cheap, then you need to do more research before parting with your money.

“All consumers who shop online should deal only with well-known and reputable traders and get recommendations from colleagues, family and friends who have had a successful shopping experience with those traders. A search for warnings or reviews might also indicate if the website is a scam.

“It’s becoming more difficult for fake websites to be recognised, as they often steal the identity and ABNs of legitimate online retailers. But if the prices being offered are too cheap, then you need to do more research before parting with your money.

“A sure warning sign is if the site asks for a direct bank transfer rather than a credit card payment. Paying by credit card gives you the option of getting a charge back if the tractor doesn’t arrive, but making direct bank payments usually mean your money is gone.”

Information and advice on scams is available on the WA ScamNet website where scam reports can be lodged. Inquiries can be made by phoning 1300 304 054.

DAIRY NEWS AUSTRALIA JUNE 2020

MACHINERY // 35

Machinery upgrade delivers benefits FOR THE past 11 years, the Buchanan family has

been operating a KEENAN MechFiber MF360 (20m³) diet feeder, having changed from a vertical machine in 2009.

Milking 600 cows in northern Victoria, the KEENAN diet feeder has been an integral part of their pasture-based feeding system.

When it came to upgrading their diet feeder this year, John Buchanan found the decision simple — opting to upgrade a size to the KEENAN MechFiber MF380 (24m³) machine.

For Mr Buchanan, the advantages of the diet feeder are numerous — including enabling consistency of feed-out of the diet for the cows along the feed bunch with different machine operators.

The InTouch weighbox technology delivers consistency, guiding diet preparation and feedout when there are multiple operators on the farm operating the machine, The InTouch technology allows for simple adjustment of cow numbers or diets for different diet types, particularly during calving season.

The software simply recalculates ingredient amounts to ensure the diet stays consistent during preparation.

“We regularly make a number of smaller diet

mixes for our young stock and transition cow groups on the farm,” Mr Buchanan said.

“The KEENAN MechFiber machine makes these with the same precision, large or small.

Something we were not able to do with confidence previously.

“The fuel efficiency savings with operating the MechFiber machine over the last 11 years have been significant to the business compared with the previous vertical mixer machine.”

The KEENAN MechFiber machine operates comfortably at 1300 to 1500 tractor RPM (mixing and feeding out) compared with 2400 tractor RPM of the old vertical mixer.

“The ability to restart the KEENAN MechFiber machine under full load is another significant advantage feature of its design,” Mr Buchanan said.

“The KEENAN MechFiber machine with its simple engineering design has always had good engineering support over the years for us.

“And recently, with Alltech Lienert relaunching the brand on the market here in Australia, the nutritional support fits the Keenan brand of old.

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DAIRY NEWS AUSTRALIA JUNE 2020

36 // MACHINERY

Tractor sales in high gear APRIL WAS a ‘blow-out’ month for tractor

sales across the country, according to Tractor and Machinery Association of Australia figures.

Weather prospects and the increase in the Instant Asset Write-Off program to $150 000 saw tractor sales jump 40 per cent in April, with sales now seven per cent year-on-year.

Around the states, huge lifts were seen in all eastern states — Victoria continues to enjoy a bumper year, up another 44 per cent on the same month last year, now 22 per cent ahead for 2020.

NSW was up 38 per cent for the month, now four per cent up year to date and Queensland “had a blinder” according to TMA executive director Gary Northover, rising 78 per cent compared to last April and now sits three per cent ahead of last year.

The same story occurred in South Australia, 63 per cent up for the month and now 17 per cent ahead of last year, while Tasmania reported a 52 per cent lift in April to be 15 per cent ahead for the year.

The story in the west continues to lag, 10 per cent down for the month, 15 per cent down year-to-date.

Not surprisingly unit sales were strong in all categories with the under 40 hp (30 kW) range, up 26 per cent for the month off the back of the Instant Asset Write-Off incentives. These now sit 3.3 per cent ahead for the year-to-date.

The 40 to 100 hp (30–75 kW) range was up strongly 37 per cent, now one per cent ahead for the year, and the 100 to 200 hp (75–150 kW) category had another strong month up a whopping 63 per cent.

The 200 hp (150 kW) and above range enjoyed a lift of 27 per cent for the month and is now six per cent behind year-to-date.

“Whilst it might seem tempting to be quite excited by recent months sales figures, we do attach a note of caution to these results,” Mr Northover said.

“Firstly, there can be no denying that the government’s Instant Asset Write-Off program has stimulated a lot of sales, however, this program is due to be scaled back on June 30 to the previous $30 000 limit.

“The TMA has been working with the MTAA (Motor Traders Association of Australia) to lobby Canberra to have this program extended

“Whilst it might seem tempting to be quite excited by recent months sales figures, we do attach a note of caution to these results." to at least September 2020 as we believe it is instrumental in supporting the general economic recovery.

“Secondly, we are beginning to see signs of supply shortages in the market. With US and European factory closures occurring as part

of the wider COVID-19 lockdowns, supply of machinery to the Australian market is becoming unpredictable, a situation that is expected to get worse before it gets better.

“So, whilst we are enjoying the present level of activity, we remain watchful.”

The Instant Asset Write-Off scheme was increased from $30 000 to $150 000 from March 12 to June 30 for businesses with an aggregated turnover of less than $500 million (up from $50 million).

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DAIRY NEWS AUSTRALIA JUNE 2020

MACHINERY // 37

McIntosh Beater Wagons are saving farmers time and money THE NEW McIntosh Beater Wagons are getting

plenty of praise from farmers who are using the equipment on their farms.

Users say the unique design of the beater wagon, with its three PTO-driven horizontal beaters, allows you to better incorporate different products together and give you a more even and consistent output of fodder than a conventional silage wagon.

This makes them ideally suited for feed pad operations, but they still have the versatility to be operated in field conditions.

McIntosh Beater Wagons can handle a wide

variety of products, with many farmers incorporating large square bales with their grass, cereal or maize pit silage to give a more balanced ration to suit their herds’ needs.

Many farmers are using vegetable waste, almond hulls, brewer’s grain, citrus pulp and other products and have the ability to blend a ration without going to the full expense of operating a mixer wagon or TMR system.

There is no need for the tractor to be running when loading the machine and it does not require time to mix the produce together.

The only time the PTO is running is when

The new McIntosh Beater Wagons have received the tick of approval from the farming community.

you are wanting to feed out.

Operators say they have halved their fuel and labour cost by replacing their old mixer wagon with a McIntosh Beater Wagon.

Users say labour costs are also down due to there being no mixing time required, and tractor and machinery maintenance costs are dramatically reduced as these machines do not need the large horse power or running time to feed their herds.

The versatility of these machines has seen them go into a range of different applications.

Working closely together with a grape grower

in South Australia, McIntosh was able to develop a beater wagon for applying straw and compost onto grapevine rows.

The machine’s capacity, efficiency and even spread make them ideally suited for this application.

For more information about the range of McIntosh Beater Wagons, contact TracMac Farm Equipment on (03) 5625 1522 or your nearest McIntosh Dealer.

DAIRY NEWS AUSTRALIA JUNE 2020

38 // MACHINERY

Modified sprayer helps organic ambition A BEEFED-UP Silvan 2000 litre trailing pasture

sprayer, the Paddockmaster, has recently been delivered to south-west Victorian dairy farmer, Simon Scott, at Barongarook West.

Mr Scott is currently converting his 320 ha undulating farm, where he runs a herd of 350 mainly Jersey and crossbred dairy cows and 50–60 beef cattle in Victoria’s Otways, to become organic and moving away from using traditional, granulated fertilisers.

His modified Silvan sprayer was specifically customised for him from an existing pasture sprayer.

Silvan now has plans to produce more of these sprayers to meet the growing demand from those converting to organic dairy farming and requiring a dual purpose sprayer able to handle thicker organic liquid fertilisers and herbicides.

According to Silvan account manager Mark Murnane, many dairy farmers are moving to become organic due to the higher returns on offer from processors like Bega and The Organic Milk Company.

Mr Murnane said that in turn was putting pressure on local manufacturers like Silvan to produce the specialised equipment required.

“It’s certainly generated a lot of interest because there’s really been nothing like it built

locally,” he said.

At least two more units have been quoted

by Silvan since Mr Scott’s sprayer has been delivered.

“We’re really hopeful of putting a lot of these into the market,” Mr Murnane said.

“Demand is coming mainly from dairy farmers but also (beef ) cattle producers in the (south-west) region.”

Mr Murnane said when liquid fertiliser was applied, good agitation was needed to get it through a nozzle without blocking. The new unit was similar to Silvan’s standard herbicide sprayer but with modifications to handle the organic liquid fertiliser.

Mr Scott’s modified sprayer comes with in-cab, electric pressure controls and a 12-metre manual fold, suspension boom with fertiliser nozzles which enables a coverage of 18 m to be achieved. To adapt to the soup-like liquid fertiliser, nozzles, filters and spray lines also had to be modified.

Two retention lines into the tank were added to keep the mixture ‘stirred up’ and the hose lines upgraded to a bigger size. A second dedicated line to the four field jets with 18 mm holes was added as well to avoid blockages.

The most expensive modifications was the

This beefed-up Silvan 2000 litre trailing pasture sprayer was delivered in March by Cervus Equipment Australia to dairy farmer Simon Scott from Barongarook West after some custom engineered modifications from Silvan. Pictured is Cervus Equipment’s Paul Lisstro and Mr Scott.

addition of a hydraulic stainless steel pump to handle the mixture.

Mr Scott has 12 months to go before he gains his organic certification but already he is producing an organic milk line for Bellamy Organic, which pays a 30 per cent premium to

normal milk solids.

He is hoping his gross return will increase by up to 150 per cent as a result of the move and be making a profit of between $500 and $1000 per cow.

For more information, visit: silvan.com.au

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DRYING OFF? CHOOSE PRODAIRY. The choices you make at dry-off will impact the future profit of your business.

Make a different choice this season.

Call 1800 776 324 or visit ProDairy.com.au

ANIMAL HEALTH PROGRAMS

DIRECT ONLINE ORDERING

RISK MANAGEMENT AND PLANNING

Build their potential.

Veanavite’s 3 Stage Program helps build a sound foundation for highly productive cows.

The Veanavite® range recognises that there are different nutritional requirements throughout a calf’s journey from birth right through to first calving. Maximising a calf’s potential at each of these stages goes a long way to producing a highly productive cow. Veanavite’s 3 Stage Program provides the right balance of protein, energy and essential vitamins and minerals to help your calves and heifers thrive.

Contact your local reseller or go to www.veanavite.com.au to find out more.