Processors announce step-ups. PAGE 5
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MARCH, 2021 ISSUE 125 // www.dairynewsaustralia.com.au
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98.0
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DAIRY NEWS AUSTRALIA MARCH 2021
NEWS // 3
Freedom to defend second class action EMBATTLED FREEDOM Foods is facing
a second class action, alleging shareholders were misled over a period of six years. The company, which has a UHT milk factory in Shepparton, remains in voluntary suspension from the Australian Stock Exchange while it undergoes a recapitalisation which is due to be completed in April. In the past seven months, Freedom Foods has lost chief executive officer Rory Macleod and chief financial officer Campbell Nicholas who resigned at the end of June, and sold its cereal and snack foods business to Arnott’s for $20 million. Law firm Slater and Gordon filed a class action against Freedom Foods Group Ltd
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and its auditor, Deloitte, in late December, following the announcement of write-downs and adjustments to its balance sheet totalling $590 million. The class action alleges eligible shareholders have claims against Freedom Foods and Deloitte as a result of acquiring shares between December 7, 2014 and June 24, 2020. Freedom Foods announced to the ASX it had now been served with a second class action. Law firm Phi Finney McDonald has lodged the class action backed by litigation funder Omni Bridgeway. It alleges that over six years management of Freedom Foods capitalised certain day-today and other expenses that ought to have
Freedom to defend second class action.
been immediately expensed, and failed to writeoff quantities of expired or obsolete inventory. It also alleged that Freedom Foods’ longstanding auditor Deloitte Touche Tohmatsu (Deloitte) failed to correct these accounting errors in its conduct of the audit of Freedom’s annual and half yearly reports over that period. Freedom Foods has appointed Arnold Bloch Leibler to defend the action. It comes as the company’s acting chief financial officer Stephanie Graham resigned on February 19. The company announced Josee Lemoine would assume the role of chief financial officer.
PROFIT UP BUT REVENUE DOWN Bega Cheese has reported improved profits but lower revenue for the first half of the financial year. It has more than doubled its profit performance compared to the same period last year, but revenue declined by 4.5 per cent, due to the end of a milk supply guarantee arrangement at Koroit, competition for milk supply, global commodity prices and the Australian currency appreciation. In the half-yearly report announced on February 24, Bega Cheese reported earnings before interest, tax, depreciation and amortisation of $65 million. Receipts from customers fell from $867 million to $787 million. The company pointed to growth in the Australian and international branded business, high value nutritional powders and lactoferrin sales. A significant development during the half-year was
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NEWS ���������������������������������������������������� 3 – 17 OPINION ����������������������������������������������������� 6 MARKETS ������������������������������������������������� 12 PASTURE IMPROVEMENT ����18 – 29 ANIMAL HEALTH ������������������������30 – 32 MACHINERY ���������������������������������� 33 – 35
the announcement of the acquisition of Lion Dairy & Drinks division for $534 million. The acquisition was completed in January, so the full impact on finances will not be known until the full financial year report. Although total milk processed was up by more than 1.6 per cent, Bega has found the direct milk supply competitive, particularly in northern Victoria. Direct milk intake decreased following the cessation of the Saputo milk supply guarantee at Koroit. The first half-year report found seasonal conditions were positive and improved conditions provided some relief for dairy suppliers recovering from the impacts of drought. “Our dairy suppliers benefitted from improved rainfall and growing conditions that have resulted in lower prices for farm inputs, including
Bega Cheese chairman Barry Irvin.
feed, fodder and water,” the report noted. “The seasonal outlook for growing conditions remains positive for the second half of financial Year 2021.” The Bega group completed a capital raising of $400 million during the first half-year. Bega is waiting to hear the outcome of a court case
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DAIRY NEWS AUSTRALIA MARCH 2021
4 // NEWS
DA review largely positive DAIRY AUSTRALIA may become the target
of blame if the industry restructure under the Australian Dairy Plan does not meet farmer expectations, a new report has found. The review of Dairy Australia was largely positive about the organisation funded by government and industry levy payers. But it did draw attention to some concerns. The report pointed out that many farmers don’t appreciate the different between service provision that DA provides and advocacy delivered by organisations like Australian Dairy Farmers and the UDV. “When farmers pay levies, it is with an expectation of full-service delivery and returns in all of the areas important to them,” the report said. “One of the ADP objectives is ‘Unity’. “There is a possibility that the aspirations of many dairy farmers for the industry to have a single entity will prove to be challenging, with a
number of different stakeholders to be aligned for this to happen.” The independent review has concerns that if levy payer desires are not met, the unjustified responsibility pointed at Dairy Australia could be significant. The consultants who did the review suggested a sustained, consistent communication campaign around dairy reform was important for transparency to industry and to manage expectations, and needs to be delivered with strong spokespeople from relevant industry bodies. “It needs to be clear to levy payers that this is an industry initiative and not one of Dairy Australia alone,” the report said. Anwen Lovett of Anwen Lovett Consulting, who completed the performance review together with Ancer Consulting, said the review had looked across Dairy Australia’s operations and governance.
“The overall finding of this independent review is very positive,” Ms Lovett said. “Dairy Australia is an effective, outcomesfocused organisation with a strong service culture to the Australian dairy industry. “It is managed by professional people who care about what they do. “There is strong and appropriate governance and a healthy focus on continuous improvement of structures, systems and processes.” Dairy Australia chair James Mann said he was encouraged by the review’s findings, while recognising some opportunities to do things better. “We see real value in this being a genuinely independent assessment of our organisation,” Mr Mann said. “The review is based on feedback from all our industry stakeholders, including many farmers as well as representative bodies.” On communications with levy payers, the review found communication should target both
The consultants’ review of Dairy Australia was largely positive.
the engaged and those who are more critical of theservices the organisation delivers. Dairy Australia’s major research and development partnerships are assets for the dairy industry, the report found, but prioritisation and benefits are not well understood by farmers and the industry, and should be better communicated in the context of regions and production systems.
GENETICS AUSTRALIA REPORTS PROFIT INCREASE Genetics Australia Co‑operative Ltd has recorded a $1 million increase in sales revenue and an after tax profit of $545,000, reflecting improved weather and industry conditions. The 2019–20 annual report shows a profit $300,000 higher than the previous year, while sales revenue grew by more than $1 million to $10,771,972 with a total comprehensive income of $2,625,991. The co‑operative has a net asset base of $13,508,398 which is an increase of $2,631,897 on 2018–19. Genetics Australia chief executive officer Anthony Shelly and board chairman Trevor Henry said the positive result reflected the improved weather and industry conditions that were widely experienced in the dairy industry. “While we have undoubtedly had a better season, there are still enormous challenges ahead for the dairy and herd improvement industries,” Mr Shelly said. “We are very pleased with this result; however, we need to find ways of making that result more repeatable. “This remains the biggest challenge for the co‑operative, and the board and management are committed to
developing the right business model that delivers sustainability and the scope for re-investment in people, products and programs.” COVID-19 has added pressures to the business with staff working remotely and other restrictions that hampered some business functions. Despite that, Mr Shelly said the co‑operative was pleased with the way that it handled the COVID challenge and was looking forward to returning to a “normal” business environment for 2020–21. “The cancellation of our GA 2020 Conference was a huge disappointment, however we managed to salvage much of the good work by shifting to online delivery platforms for a significant proportion of the content,” he said. Genetics Australia’s export business continues to expand with demand from China leading the way. “We have a strong belief in the ‘Australian cow’ at Genetics Australia, and it appears many countries are also recognising her unique qualities,” Mr Henry said.
“Our next step is to make her even more ‘green’ than she is now, by enhancing her disease resistance, heat tolerance and feed efficiency characteristics.” The group entered into a contract in 2018 to sell of one of its farm properties, known as Parwan Park South, for $14.625 million. The 125 ha property was purchased in 1986 and was used as a quarantine facility for bulls prior to their admission to the co‑operative’s main collection and EU facility, Parwan Park. The company said funds raised from the sale would enable the group over time to reduce debt and to rationalise and improve its operations with strategic investments in infrastructure, systems and livestock. Genetics Australia is continuing to develop its beef business. “The prolonged drought has hit the beef sector hard, but we are pleased that our sales are recovering now as the industry itself recovers,” Mr Shelley said. “I reaffirm our aim to improve the penetration of elite AI genetics into the beef sector and growing the number of shareholders joining the co‑operative.”
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DAIRY NEWS AUSTRALIA MARCH 2021
NEWS // 5
Optimistic outlook for dairy THE LATEST industry outlook from interna-
tional bank Rabobank forecasts strong cause for optimism for the dairy sector in the 2021–22 season. Australia’s agricultural sector is set to enjoy an overall profitable year ahead — underpinned by high commodity prices, positive seasonal conditions and low interest rates, and despite expected continuing trade tensions with China — according to the industry outlook. In its flagship annual Agribusiness Outlook for 2021, global agribusiness banking specialist Rabobank says a generally profitable 2020–21 season for most Australian farmers will not only kick-start recovery from the recent severe east coast drought, but also put the sector in a stronger position to navigate a number of major transitions it will face in the year ahead — the COVID-19 pandemic recovery,
reducing reliance on China and increasing sustainability. Report lead author, Rabobank head of Food and Agribusiness Research Tim Hunt, said despite the turbulent environment facing the world as 2021 gets under way, global demand for food and agribusiness products remained “surprisingly firm”, while weather patterns were also favouring Australia ahead of competitors when it comes to production. “In a current global environment marked by the pandemic, political tensions and trade wars, demand for food and agri products has remained unexpectedly strong,” Mr Hunt said. “And despite the punitive actions of China on Australian agriculture, high agricultural commodity prices, low interest rates and positive seasonal conditions are underpinning a positive outlook for most farmers in 2020–21.”
The world is a “turbulent place” as Australia’s agricultural sector enters 2021, the Rabobank report said, impacted by factors including the continuing COVID-19 pandemic and lockdowns, the completion of Brexit and the emergence of the United States from a tumultuous presidency, as well as continuing trade wars, which are distorting the direction and price of traded goods. “Market intervention is back in vogue, with grain-exporting countries reconsidering export quota and taxes as they fret over food security, while elsewhere port strikes have impeded trade flows,” the report said. Demand for agricultural commodities though is being supported, with several major importing countries appearing to be stockpiling to mitigate risk of shortages and by unprecedented support from governments helping to offset the impact of the pandemic on employment and incomes, and therefore spending on food.
Processors announce step-ups BEGA CHEESE has joined Burra Foods and Norco as processors to offer step-ups to dairy farmers for the 2020–21 season. But the major processors who send a large share of their product overseas are worried by the firming Australian dollar which makes Australian dairy more expensive. Traditionally the bigger companies have offered price step-ups by this stage of the season, when farmers are working out future feed budgets and what they are prepared to invest for next season. Milk2Market commercial development manager Richard Lange said the Australian dollar was going the wrong way for exporting milk companies. “COVID-19 has also had a significant impact on the food service channels and that just leaves the retail market for dairy producers,” Mr Lange said. In late-February Bega announced it would increase its milk price by 10 cents per kg MS for its Victorian, south-east South Australian and Bega Valley central suppliers. In a statement Bega said the increase was reflective of the level of market improvement being experienced despite the COVID-19 pandemic and higher currency impacts locally and internationally. “The increase reflects Bega’s continued position to ensure its milk price is competitive with
other dairy processors in the various regions it operates,” the company said. “The increases do not apply to our new Bega Dairy and Drinks and DFMC contracted suppliers.” The increase takes the announced prices for FY2021 to $6.50 per kg MS in southern Victoria and south-east South Australia, $6.65 in northern Victoria and $7.60 in the Bega Valley. Undera dairy farmer Fred DeCicco supplies Bega and said the news was excellent to hear. “This is our first step up for the year,” Mr DeCicco said. “It’s really good to see and hopefully we keep going in this direction over the year.” Milk from Mr DeCicco’s 220 cows goes towards infant formula, milk powders and cream cheese produce processed at the Tatura site. “We (Bega suppliers) opened with a fairly attractive price compared to others, but the milk price is still lower than it was this time last year,” he said. “In saying that, the cost of production is lower this year too because of the lower feed and water prices.” Burra Foods has announced an increase in the milk price for Milk Supply Partners equivalent to $0.10/kg MS across the full FY21 year. Girgarre farmer Tim Leahy said although processors were arguing unfavourable overseas trading
Norco chief executive officer Michael Hampson.
positions, a large percentage of milk was still being processed for the domestic market. Mr Lange urged farmers seeking better returns to ensure they were getting the most out of their existing processor by examining incentives which covered components, calving patterns and growth. Australia’s oldest dairy co-operative, Norco, has announced a farm gate increase totalling $2 million for January to June 2021 in February. The farm gate milk price was lifted to about 77¢/litre. Norco chairman Michael Jeffery said the continued strong results were a direct result of consumers’ continued commitment to supporting the 100 per cent Australian farmer-owned Norco Co-operative and its ability to then continue to support its 297 farmer members across NSW and Queensland.
CALL FOR MID-SEASON STEP-UPS Dairy processors have been urged to follow the lead of the Norco company in paying step-ups to farmers. The Queensland Dairyfarmers Organisation congratulated Norco on its announcement of a price increase of 2¢/litre from February 1. The step-up takes Norco’s farm gate price for this financial year to just above 70¢ for its north-east NSW and south-east Queensland suppliers. QDO executive officer Eric Danzi said farmers would be watching to see how other processors respond. “It would be hoped that they respond in the coming weeks with a step-up of their own,” Mr Danzi said. Mr Danzi said while Fonterra announced a step-up in midFebruary for its New Zealand suppliers, with its 2020–21 forecast farm gate range of NZ$6.90 to NZ$7.50 kg/milk solids (A$6.52 to $7.09), “they have been tight-lipped regarding their intentions within Australia”. “Bega, the recent purchaser of Lion Dairy and Drinks, has also been quiet about its intentions regarding its farm gate price,” he said. “Bega suppliers in Queensland would expect to see a better approach to suppliers on a range of issues, including price, than Lion had. “This should be made clear by June 1 when new contracts are developed by Bega.” Mr Danzi said a lot of farmers were questioning whether the mandatory Dairy Code of Conduct had made processors gun-shy about mid-year step-ups. “There is no reason that stepups shouldn’t occur under the code, although step-downs are illegal except under exceptional circumstances,” he said. “Some farmers are calling for the ACCC to investigate the lack of movement in the market.”
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DAIRY NEWS AUSTRALIA MARCH 2021
6 // OPINION
EDITORIAL
Industry needs to build trust and confidence How do you successfully manage farmer expectations when it comes to industry restructure? That’s an answer that will be on the minds of many at Dairy Australia, according to an independent report. The ability of the organisation to deliver on expectations of the Australian Dairy Plan will determine the success of the plan. Failure to deliver on structural reform could see the blame laid at the feet of the industry body.
Aussies urged to support dairy DAIRY’S latest marketing campaign is calling on
Australians to support the dairy industry, for the health of their bodies and the nation. The latest dairy industry campaign encourages Aussies to buy, support and enjoy Australian dairy as a part of everyday life, for not only good health and wellbeing, but for the livelihood of local dairy communities, too. The campaign, known as Dairy Matters Support Aussie, will come to life throughout 2021 through a series of Dairy Australia initiatives and partnerships, encouraging Aussies to celebrate the people and places that make Australian dairy so special. The campaign stars dairy industry ambassador Jonathan Brown, ex-Aussie Rules footballer and popular media personality who currently cohosts NOVA 100 FM’s breakfast show. Dairy Australia communications strategy manager Glenys Zucco said the campaign
encourages Australians to actively support local dairy farmers by buying produce made right here at home. The campaign will be seen and heard across multiple platforms including television, radio, podcasts, digital and social media, and was launched with a television commercial to be released on February 28. The commercial follows Browny’s journey through the Australian dairy supply chain, demonstrating how choosing to buy locally produced milk, cheese, yoghurt, butter, cream and ice-cream supports regional workers and their communities. Dairy Australia worked collaboratively with dairy farmers and industry members to bring the campaign to life. To find about more about the dairy industry’s latest campaign, visit: www.dairymatters. com.au
The independent review flags a reality many in the industry know — unity is hard to achieve, especially across many diverse dairy regions. “There is a possibility that the aspirations of many dairy farmers for the industry to have a single entity will prove to be challenging, with a number of different stakeholders to be aligned for this to happen,” the report found. An openness in communication, reporting and the future direction of the dairy plan will continue to build trust. Just like the Australian Competition and Consumer Commission’s review of the dairy code’s implementation, a willingness to engage and improve current frameworks will strengthen relationships and the industry as a whole. Shying aware from criticism will restrict the success of the dairy plan, and only deliver fuel to those who feel it does not represent them. When consultation was first held on the dairy plan, it made for uncomfortable reading for those striving to support the industry. Farm gate milk price was one of the most popular issues, with just one poor season putting farmers under threat of the cost-price squeeze. Asked about what issues the industry should be focusing on, many of the workshop participants also nominated industry advocacy as a weak point. It’s this very fact that poses a dilemma for Dairy Australia and the other partner organisations. A dedicated team of professionals is a great starting point, but they need to be supported by membership and the industry. Keeping things steady and on track while building trust and confidence is a role many won’t envy.
Dairy industry ambassador Jonathan Brown with Gippsland dairy farmer Trish Hammond who features in a new Dairy Australia campaign.
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
But as the dairy plan progresses, there must be space for recalibration and a willingness to hear from all areas of the industry to ultimately deliver a successful outcome.
Publisher Shepparton Newspapers Pty Ltd Printed by Newsprinters Pty Ltd Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address PO Box 204 Shepparton, Victoria 3632 Australia
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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 MARCH 2021
NEWS // 7
Gardiner scholars off to uni SEVEN TERTIARY scholarships have been
awarded to students from Victorian dairy regions who are starting their first year of tertiary study in 2021. The 2021 Gardiner Dairy Foundation Tertiary Scholars are: Grace Billington, Warrnambool; Toby Fleming, Boorcan; Kiara McJamesCourt, Pound Creek; Rachel Dickson, Garvoc; Stella Harrington, Barongarook West; Hamish McDonald, Colac; and Hugh Nicoll, Fish Creek. The scholarships are awarded annually to students who have shown a commitment to leadership and personal development and who intend to return to regional Victoria at the completion of their studies. In addition, they must demonstrate sound academic achievement and a contribution to their community. The scholarships are named in recognition of the significant contribution to the dairy industry made by Shirley Harlock, Jakob Malmo, Bill Pyle, Doug Weir and Niel Black. Each scholarship recipient will receive $10,000 annually for up to three years to contribute towards costs associated with their studies. “Rural students face high costs associated with living away from home to undertake higher education and training,” Gardiner Dairy Foundation chief executive Clive Noble said. “These scholarships support the development of young professionals who may not otherwise have the opportunity to pursue higher education.” The tertiary scholarships program encourages students to return to Victoria’s dairy regions upon graduating, or after gaining further work experience, to ensure a diverse range of essential skills within these regions. “These scholarships align with the Australian Dairy Plan in encouraging people who have obtained tertiary qualifications to make their careers in the dairy industry and its varied communities,” Dr Noble said. Applications for 2022 Tertiary Scholarships will open in September 2021.
She will study towards a Bachelor of Science, majoring in animal science, at Deakin University and hopes to become a vet working with large animals. Farming and community are extremely important influences in Kiara’s life. She has had extensive involvement with her local surf lifesaving club for the past nine years and has volunteer-patrolled for more than 430 hours. She has been involved in Landcare in both the broader community and through increasing tree plantations on her family’s farm. Stella Harrington, Barongarook West (Niel Black scholarship) Stella completed Year 12 at Trinity College, Colac in south-west Victoria and will be studying a Bachelor of Biomedical Science and a Bachelor of Public Health at Australian Catholic University. She is involved with the Anglesea Surf Lifesaving Club, volunteering her time to patrol the beaches and she has also coached both basketball and netball teams. Stella has also been involved with Neighbourhood House’s ‘homework club’ helping to educate migrant children in the region. She is keen to improve the health and wellbeing of rural communities and to support better access to health care in regional and rural areas.
2021 Gardiner Dairy Foundation Tertiary Scholars
Hamish McDonald, Colac (Niel Black scholarship) Hamish completed VCE at Clarendon College, Ballarat and will be studying towards a Bachelor of Agricultural Science at University of Melbourne. In his local community, Hamish has been involved with the football/netball club, cycling club and rowing club. In 2019, he travelled to Cambodia for a humanitarian project building a well and a toilet in a remote community. Hamish is currently working on a dairy farm in Larpent. On completion of his studies, he would like to return to south-west Victoria and work in the dairy industry with a focus in agronomy.
Kiara McJames-Court, Pound Creek (Doug Weir scholarship) Kiara has grown up on a family dairy farm at Pound Creek in South Gippsland and completed VCE at Newhaven College, Phillip Island.
Hugh Nicoll, Fish Creek (Niel Black scholarship) Hugh grew up on a family dairy farm at Fish Creek in South Gippsland and attended Foster Secondary College where he was school captain.
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Successful scholarship students (from left) Kiara McJames-Court, Stella Harrington, Hamish McDonald, Hugh Nicol, Grace Billington, Rachel Dickson and Toby Fleming.
He will be studying a Bachelor of Marine and Antarctic Science at the University of Tasmania. Hugh has volunteered his time to assist with the lyrebird population survey in his local bushland and the Great Victorian Fish Count. He has also been involved with increasing tree plantations on his family farm. Through the Scouting movement, Hugh has volunteered annually at the local agricultural show, participated in Clean up Australia Day, Relay for Life and other community activities. Hugh values a healthy environment, ocean and ecology and the importance of protecting and conserving ecosystems. He wants to enhance land management and help inform farmers on how to best preserve their own environments with positive flow on effects to the broader ecosystem. Grace Billington, Warrnambool (Bill Pyle scholarship) Grace completed VCE at Brauer College, Warrnambool and will be studying an Advanced Diploma of Agribusiness Management and a Diploma of Agronomy at Longerenong College. She is an active member of the Warrnambool City Netball Association where she volunteers as a coach, mentor to younger umpires, and runs the program for five to six-year-olds. She is also part of the Junior Committee for the Netball Association where she contributes to running fundraisers and an all-abilities competition. She is currently working on a dairy farm in Allansford and is looking forward to moving back and working on a larger dairy operation once she has completed her diploma.
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Rachel Dickson, Garvoc (Jakob Malmo scholarship) Rachel grew up on a dairy farm in Garvoc, southwest Victoria where she attended Emmanuel College in Warrnambool. She will study a Bachelor of Science at University of Melbourne, majoring in animal science. Rachel has had experience working on dairy farms in Australia and the United Kingdom. She has shown cattle at local shows, and in recent years has taken a lead role in helping younger students develop their skills. She also volunteered in Timor-Leste teaching English to young children. Rachel’s future aspiration is to work in the dairy industry in areas that involve animal health. Toby Fleming, Boorcan (Shirley Harlock scholarship) Toby grew up on a dairy farm at Boorcan in south-west Victoria. He completed VCE at Mercy Regional College at Camperdown, where he was college captain. He will be studying a Bachelor of Agriculture (Technology) at the University of New England and hopes that through his studies, he will gain skills to be part of the development of new technologies that are more financially accessible to all farmers. Toby is an active member of the Boorcan Cricket Club where he has taken on the role of groundskeeper. In 2019, Toby was selected as a Rural Youth Ambassador to talk with politicians about ways to provide better and more equal education for rural students.
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DAIRY NEWS AUSTRALIA MARCH 2021
8 // NEWS
Bega takes the lion’s share GEOFF ADAMS
SEVEN YEARS ago, Bega Cheese broke the
Barry Irvin with two of the iconic Australian brands that Bega Cheese now owns.
$1 billion annual revenue mark. With the latest acquisition of the Lion Dairy & Drinks division, the company has been p ropelled to about $3 billion. It was the biggest single acquisition in the company’s 120-year history, and now all eyes are watching to see how the former co‑operative evolves. Bega will now have 20 manufacturing sites. The latest purchase, theoretically for $534 million (but most likely higher than $600 million with costs), brought back some iconic Australian dairy labels from overseas ownership, which seemed to fit with Bega’s interest in Australian food brands after its p urchase of Vegemite. Executive chairman Barry Irvin acknowledged it was going to be a big business. “For me, it’s a complete dairy business in terms of supply, geographic spread, customer reach and product range,” Mr Irvin said. “I see this as an adjacent business. “We have been traditionally a longer shelf-life dairy business, like cheese, milk powders and nutritionals. We haven’t been in the fresh, daily delivered products. “So there an adjacency between the two so the milk supply chain could be more effectively
managed around the timing of supply, the logistics, the peaks and troughs of supply. “They should lend themselves to greater efficiency across the supply chain. As well as the duplication. There may be some opportunities for cost savings there, too. “And general efficiency product mix where we now, with market returns, need to deliver to market as it requires, but there is a range of products that we can place our milk in. “I would argue that having the options that allow you to deliver milk to the highest value product across the range, is an opportunity with the two businesses together.” Asked if this meant factories closing and people losing their jobs, Mr Irvin said there may be some positions duplicated — which would result in change, but there would be new jobs created. “I think there will be relative stability.” He said it was too early to talk about changes to factories, but the factories were required for specialist production and there weren’t any plans for factory closures. He pointed to two aspects which made the acquisition attractive. “One is that Lion Dairy & Drinks had been on the market for some time, so the team within Lion had been preparing for separation and they are working well with the Bega team. “There is a significant integration plan required but that is not foreign to us, just on a larger scale.
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DAIRY NEWS AUSTRALIA MARCH 2021
NEWS // 9 “This is a business that is adjacent to us. This will be as seamless as possible but takes a lot of planning and organising in the background. “This is about creating one Bega and growing the great Australian food company. “The nice thing about this acquisition is that many of the people we have known for years and respected them greatly. “The history of both organisations, although different in recent times, you think about Lion, with origins in Dairy Farmers and National Foods, very traditional long-term dairy companies. There are a lot of parallels.” Asked about the company’s concentration on traditional Australian brands like Farmers Union and Vegemite, Mr Irvin said their Australian customers were concerned with where their food comes from, how it is manufactured and how it is delivered to them. “I think that’s the history of Bega — where we have a relationship with our farmers, relationships with our staff, manufacturing facilities in regional communities and we deliver to customers every day. “Creating customer trust and customer reassurance is with good, well-known, well-respected brands. “We’re an old fashioned business coming back into fashion.” Bega financed the latest acquisition through debt and a capital raising program late last year. He was encouraged to see institutional support for Australian food and agriculture. Mr Irvin was cautious when asked if the company had aspirations for more Australian food labels.
He wants to see the latest acquisitions bedded down first. But he did add: “I don’t think it’s the end of the journey.”
FACTORIES: STRATHMERTON Bega Cheese had been manufacturing processed cheese at both the hometown factory in southeastern NSW and at Strathmerton in northern Victoria. The transfer of processed cheese capacity to the Strathmerton factory was completed at the end of December. “Strathmerton continues to be an important part of the network in terms of our capacity to cut, pack and process cheese,” Mr Irvin said. KOROIT In 2018, Bega Cheese purchased the Koroit factory in western Victoria from Saputo for $250 million. Mr Irvin said the plant was now integrated into the business and gave them a strong m anufacturing capacity with milk powder, nutritionals and butter, enabling them to balance spring peaks and flatten out supply for other parts of the year.
BRAND HISTORIES: PURA PURA was established by a German immigrant who bought a dairy in Preston, Victoria in 1935. By 1964, the PURA Dairy was supplying 32 per cent of Melbourne’s milk. In 1991, PURA Dairy combined with other food-related brands to form National Foods Limited.
Some of the brands now in the hands of Bega Cheese.
DAIRY FARMERS The Dairy Farmers Milk Co‑operative was formed on January 15, 1900 when 65 stakeholders, many of them dairy farmers themselves from the NSW Illawarra region, came together and agreed to run the organisation on co‑operative lines. Now selling A2 milk, which is a type of milk that comes from cows that produce the A2 beta casein protein. DARE The blockbuster brand Dare was founded in 2006 and the popular iced coffee is now sold nationally. MASTERS Masters is the largest flavoured milk brand in Western Australia and has been produced locally in WA since 1964. FARMERS UNION The brand can trace its origins to 1888 when a committee was formed to establish a grain
producers’ union. Today, its Farmers Union Iced Coffee is an icon in South Australia. Farmers Union Iced Coffee was first launched in 1977. BIG M Big M flavoured milk has been a big hit for Victorians since 1977. Big M accounted for sales of 19 million litres per year, and licence fees of $6 – $6.5 million per year prior to the trademarks being sold in 2000 for almost $62 million. MOOVE Moove has been a NSW icon since 1978. Moove comes in popular flavours and pack sizes that suit different needs and occasions. BERRI It all started with five farming families selling fresh orange juice door-to-door in 1974. Some families still supply the brand today. Previously owned by National Foods.
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DAIRY NEWS AUSTRALIA MARCH 2021
10 // NEWS
Learning from other farmers A LITTLE bit of help goes a long way, and when
the Flanagan family said their Finley dairy farm was open to visitors on February 19 many made use of the opportunity. More than 50 people drove between the maize crops and piled into the dairy shed which houses the southern NSW farm’s rotary dairy. Some were neighbours but others had tracked from Warrnambool and western Victoria to take the Flanagans up on their invitation. Lawrie Flanagan owns the 416 ha Woodlawn Dairy and said the self-organised event — called Riverina Field Day — was created so farmers could experience a “bit of positivity about farming in the Riverina for once”. The 588-cow milking herd operation is managed by Marcus Flanagan who stepped the crowd through what the farm does and why. There was a lot of interest from visitors about the farm’s free-stall barn, complete with robotic caretaker, and the water-efficient irrigation systems used on farm. The owners proudly attested to the usefulness of their AGMAC irrigation system, which allows the farm to water 350 ha with one person monitoring it for less than one hour a day. The system was developed by local farmer Shaun McCarthy. Heat detection collars on the cows were another focus point.
Marcus Flanagan said SCR Heatime Pro collars help the year-round-calving farm operate at peak productivity. “The collars are effectively you spending $40 a year to manage that cow’s health and reproduction,” Mr Flanagan said. “We are doing 35 to 60 litres (per cow per day) here and that’s a result of managing them so efficiently.” The heat collars also helped bring AI costs down — earning their price tag even more when the farm moved to sexed semen last year, brought on by good export heifer prices. “We use the best sexed semen we can get. We want cows that can last, stand up on concrete and compete,” Mr Flanagan said. Being able to handle periods on concrete is becoming an increasingly important trait as farmers modernise their feedpads and move into free-stall barns in order to deliver higher efficiency and welfare. On a philosophic note, Mr Flanagan said the difference between a good farmer and a bad one could be just two weeks. “When you’ve got an important job, instead of racing down in the morning and ripping around trying to get it done, set aside the time and don’t rush,” he said. “I see it as, the job is important enough to do it right.”
Cows fitted with heat detection collars.
Woodlawn Dairy uses sexed semen.
This advice was mainly for sowing, where knowing when to walk away and delay a job until the weather is perfect can have big rewards. “It is worth it to work when there is moisture in the soil, or to wet it down beforehand so you don’t have all the dust and disturbed top layer,” he said. The trick when it comes to growing your own feed was to grow a little bit more than you needed annually, storing the excess. “Sometime in the next three years that feed is going to double in value,” Mr Flanagan said. “On the other hand you don’t want to grow too much, because it ties up time and money.” In general you want to have nearly two years’ worth of silage instore, he said.
Woodlawn Dairy plans to increase its milking herd by 100 head annually with the use of sexed semen, while still selling 10 to 15 per cent of heifers to China. The farm is currently in the process of building a 950-cow sand-bedded free-stall facility to take over from dry lot sheds. There are also plans for an eight-bay commodity shed and a concrete feed mixing area. Lawrie Flanagan said the efficiency of the business was all due to the hard work done by Marcus Flanagan, Brian and Julie Crockhart from Agribusiness Solutions and the farm team: Pat and Jo Kelly, Kurt Simpson, Tom Isdale, Ellen Bouman, Jason Narisma, Alexis Berthereau, Lucie Lecanteur and Claire Flanagan.
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DAIRY NEWS AUSTRALIA MARCH 2021
12 // MARKETS
Milk production slowing SOFIA OMSTEDT SENIOR INDUSTRY ANALYST
A WET summer has continued to improve soil
moisture levels across most of Australia and boosted summer crop programs. With a huge amount of feed produced this season, the cost of grain and fodder has decreased, while wet weather has suppressed irrigation water prices. Given increased feed availability, wet weather and easing input costs, conditions at the farm gate remain favourable. Despite these improvements, milk production has continued to falter, with growth rates turning negative towards the end of 2020. Most people can give you one or more reasons why this might be the case — and many of those factors are indeed playing a part. A key constraint to production growth this year is the lack of available workers. While labour accessibility has been a challenge for the industry for several years, the COVID-19 pandemic has exacerbated this issue via border closures and movement restrictions. Without access to international workers, the dairy industry has even fewer staffing options than usual. In all dairy regions, labour is highlighted as the most significant challenge, as the lack of workers impacts all types of businesses. Many dairy herds are seeing cuts of varying degrees, influenced in part by a shortage of staff.
Estimated volume growth by state:
December
YTD
QLD
-2.8%
-3.8%
NSW
+0.8%
+1.2%
VIC
-3.1%
+0.6%
SA
-0.8%
+3.0%
WA
-0.6%
-0.3%
TAS
+0.8%
+2.0%
Gippsland
-4.7%
-0.2%
Northern
+0.8%
+0.9%
Western
-4.5%
+1.1%
By VIC regions:
High chopper prices have made culling ecisions much more acceptable financially, d and even where many farmers are holding onto cows aiming to rebuild herds this season, record beef values are slowing this process. Buying additional heifers has proven uneconomic and thus farmers are relying on replacement calves to come through to expand herds. Thus, any expansion in Australia’s national dairy herd is being pushed back to future years, and a smaller national herd will limit growth opportunities in the meantime.
High beef prices have also influenced some farmers’ retirement decisions, with some farm exits reported throughout the country. In stark comparison to earlier years, current exits seem to be driven by farmers wanting to exit on a ‘high’, tipping the market is near a peak. High land prices, purchase interest from beef and sheep farms, strong milk prices and record high beef prices are all referenced as reasons for choosing to retire at the moment. While anecdotal reports indicate that a large portion of cows remain in the supply chain,
exits do represent some removal of productive capacity, which places an upper limit on milk production growth for this and future seasons. All the while, a superb spring boosted feed supply across much of the country and saw grain and fodder costs ease. Widespread rainfall also drove a surge in pasture growth, which reduced demand for purchased feed. Despite a drop in grain and fodder prices, farmers in several regions have slowed supplementary feeding, in favour of increasing direct grazing as a cheaper feed source. This is a sensible decision for many; but has had the overall effect of denting feeding rates in some regions and reducing per-cow yields. In addition, rain during summer impacted the quality of pasture grown on many farms and generated significant weed growth, particularly in Gippsland and western Victoria. This is also having a negative impact on per-cow production and slowing growth in affected regions. As Dairy Australia’s upcoming Situation and Outlook report, due for release on March 17, will outline, these factors have weighed on growth prospects this season. Many of these issues represent longer term challenges for the industry and are not unique for any one year. On the other hand, the increased profitability that generally comes with lower feed prices and higher homegrown fodder consumption are an important distinction from the tough times experienced all too recently.
CHINESE MILK DEMAND SURGES Chinese consumption of liquid milk rose strongly in 2020 and is expected to continue growing over the coming decade, creating export opportunities for dairy producers in Australia and other key dairyproducing regions, according to Rabobank senior dairy analyst Michael Harvey. Mr Harvey said there had been very strong consumer demand for liquid or ‘white’ milk in China during 2020, despite the impact of the COVID-19 pandemic. And this would continue to grow. “Chinese demand for dairy has plenty of space to grow long term — largely attributable to long-standing key drivers
such as low per-capita consumption and strong private and public investment into the sector due to the health benefits of dairy products,” he said. “And with many of the big dairy companies in China now starting to provide their 2020 full-year results, what’s really interesting is we’re seeing that many are reporting rapid revenue growth for ‘white milk’. “Companies like Yili and Mengnui, for example, have reported doubledigit growth in ultra-high-temperature (UHT) long-life milk sales with the companies putting this down to the
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health and wellness benefits consumers are seeing.” Mr Harvey said liquid milk had been a long-standing growth market for a lot of dairy exporters around the world over the past decade, with exporters from Australia, New Zealand and the European Union the major beneficiaries. “Liquid milk imports into China notched up a couple of major milestones in 2020, with September last year the first time more than 100,000 tonnes of liquid milk have been imported in a calendar month. “Last year was also the first time that China has imported more than one million
tonnes of liquid milk in a calendar year. “When you compare this to 2008 — when only 8000 tonnes of liquid milk were imported into China — it does give you an indication of how strong growth has been, with this increase representing a compound annual growth rate (CAGR) over this period of around 50 per cent.” Volumes were a “reflection of market dynamics, not trade tensions”, with Australian liquid milk exports to China in 2020 impacted by factors including low production and competing export markets.
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DAIRY NEWS AUSTRALIA MARCH 2021
14 // NEWS
Family’s milk worth bottling ANOTHER FARMING family has taken the
plunge into bottling their own milk. However, this isn’t exactly a brave new world for the Cochranes. A sixth generation Sunshine Coast dairying family, the Cochranes have been running the old Kraft Cheese factory in Kenilworth since 2017. The local factory has won multiple awards for its cheeses, mousses, ice-cream and yoghurts. Now the family and factory’s brand — Kenilworth Dairies — has made the leap to bottled milk.
The expansion is thanks to a $250,000 co-contribution grant supplied by the Queensland Government in 2019. Helped by the money injection, Kenilworth Dairies was able to construct a brand new pasteurising system capable of handling large volumes of milk, a bottling plant and upgrade their quality assurance lab. The first bottle of milk rolled off the production line in August 2020. Kenilworth Dairies owner John Cochrane said the investment had turned the brand into
Kenilworth Dairies’ new bottled milk range is a big step into a competitive market for the business, which until now specialised in cheeses and ice-creams.
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a completely independent local dairy provider. “With the help of this RED (Rural Economic Development) grant we are able to process 12,000 litres of milk each day and deliver products like milk, cheese, mousse and ice-cream across south-east Queensland,” Mr Cochrane said. Queensland Agriculture Minister Mark Furner said Kenilworth Dairies had a strong reputation for producing high quality dairy products and was a well-known local dairy producer. “The government’s RED grant offered a
$250,000 co-contribution to purchase equipment to pasteurise their milk as well as expand the laboratory to monitor their products for quality and safety purposes,” Mr Furner said. “Five people were employed to build a new plant and now that it’s complete, another 24 locals will get ongoing work here at the dairy.” Milk is supplied to the Kenilworth factory from three of the Cochrane family’s own farms located in the Mary Valley. Holstein, Brown Swiss and Jersey cattle are all used equally on the farms.
John Cochrane owns Kenilworth Dairies, an independent dairy provider on the Sunshine Coast.
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DAIRY NEWS AUSTRALIA MARCH 2021
NEWS // 15
Farmers fear uneven price cuts for water
The Queensland Government is setting differing water prices for different commodities.
QUEENSLAND DAIRY farmers are looking
forward to a 15 per cent cut in irrigation charges next year, but some farmers in other commodities will be eligible for cuts up to 50 per cent. Following on from the 2020–21 price freeze, from 2021–22 to 2023–24, the Queensland Government will reduce the cost of irrigation water in schemes where the government sets prices, including a 50 per cent cut for fruit and vegetable growers, and 15 per cent for all other irrigators. This cut will be funded from $81.6 million allocated in the 2020–21 Queensland budget for reducing the cost of irrigation for Queenslanders. The Queensland Farmers’ Federation has serious concerns the state government is unfairly picking winners within the agriculture sector by further restricting the number of farmers who can access an election commitment to provide a 50 per cent price reduction for horticulture irrigation water users. While QFF welcomed the government’s announcement to reduce water prices, the peak agricultural body has questioned the decision to offer different discounts to different commodities and customers of different water providers. QFF chief executive officer Dr Georgina Davis said it was wrong to favour one agricultural commodity, or regional community, over another by selectively providing favourable pricing. “The Queensland Government is determined to rewrite the accepted definition of horticulture and exclude sugar cane, cotton, nuts, flowers, turf (grass), and nursery growers from receiving the announced price reduction,” Dr Davis said. “While some fruit and vegetable growers will also be prevented from accessing cheaper water because they are not serviced by government water supply corporations Sunwater and Seawater, which could cause competitive disadvantages within the sector and result in market distortions. “The government’s poor decision is exacerbated by expected irrigation water price increases from 1 July 2021, meaning many farmers will be no better off even if they qualify for the 50 per cent discount, as they manage the ongoing effects of drought and COVID-19. “Uncertainty also exists around how the government and its corporations plan to administer two levels of discounts in a transparent and robust manner, which is likely to be extremely difficult and expensive.” Dr Davis said QFF was calling on the Queensland Government to extend the 50 per cent discount to all horticulture growers and all irrigation customers of Sunwater, Seawater, Local Management Authorities (LMA) and other water providers. “While it may have state budget implications, the greater discount would provide a welcome boost to all of Queensland’s irrigated agricultural industries and achieve the government’s aim of facilitating more crops, more jobs and more value.”
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DAIRY NEWS AUSTRALIA MARCH 2021
16 // NEWS
DairyTas hosts farm open day THERE COMES a point in dairying where a
farmer must stop putting the cows first and instead switch to humans. DairyTas’ newest Focus Farm milks 1290 spring-calving cows twice a day at peak operation. The farmers credit their sanity to attracting the best workers. Rosemount Ag is an equity partnership between two couples — Rob and Jo Bradley, who raise the young stock, and James and Sophie Greenacre, who manage the dairy. The work relationship between the couples started in 2017 and became an equity partnership in the 2018–19 season. The Cressy farm will be hosting an open day on Wednesday, March 17 — the first time the day won’t be ‘virtual’. Mr Greenacre is a first generation farmer and prioritises providing first-class staff development opportunities to employees. The intention is to attract workers who want to make a good career in agriculture. “I would like to be a place where good people want to come and work,” Mr Greenacre said. “Furthermore, I would like to develop our people that work with us so they can take management roles elsewhere in the dairy industry when they feel ready.” The Greenacres are very open about what they’ve done to turn a cropping farm into a highcapacity dairy operation.
DairyTas hopes spotlighting Rosemount Ag as a Focus Farm will help other Tasmanian dairy farmers learn from the partnership’s successes and — more importantly — challenges. The herd at Rosemount Ag is predominantly crossbred cows, containing Holstein, Jersey and red breed genetics. The farm’s aim is to have a 500 kg crossbreed herd, which does its weight in solids. Registration to attend the open day is essential. The event will run from 10 am to 2 pm and will also feature Dairy Ambassador Jonathan Brown, who will discuss the industry and the upcoming Dairy Matters campaign. Register on the Dairy Australia website, or at: https://bit.ly/2O4phMp
Sophie and James Greenacre run the Cressy dairy farm in partnership with Rob and Jo Bradley, who raise the young stock.
The herd at Rosemount Ag is mainly crossbreds.
Tasmanian dairy farm Rosemount Ag in Cressy.
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DAIRY NEWS AUSTRALIA MARCH 2021
NEWS // 17
Golden pathway to success COBDEN DAIRY farmers Lauren and Jarrod
Meade have won an international competition, while setting a pathway to growth with their new breeding program. Lauren has won 25 free straws of semen from the Viking Genetics catalogue after entering an international Golden Cross survey competition. The Meades are introducing Viking Genetics’ Golden Cross breeding program to costeffectively build a profitable herd. Lauren and Jarrod, who farm just outside Cobden in south-west Victoria, used crossbred cows to build their herd and are again expanding on the back of their best season on record. They started on the farm nearly 16 years ago with just 80 cows but realised they needed to grow to thrive. The progression was gradual but in the past two years favourable conditions have prompted another surge in numbers to a new high of 270. They are using Golden Cross to mix the best of three breeds and to improve health traits needed for their hilly and wet farm. Crossbred cows were a cost-effective way for the Meades to grow their herd and they see a Golden Cross breeding program as the best way to move ahead. “We reared cross calves because they were cheaper to help build our herd,” Lauren said. “To buy a cross calf was probably $50 but a Holstein calf anywhere from $400 to $800.
“The crossed cows are just as good but there’s no export market for them. We wanted to build up the herd, not export, so they were ideal for us.” They dabbled in a three-way cross with Aussie Reds about 12 years ago and wanted to return to a more formal program. “If we have a clear vision of what we want, it’s easier and the end result will be better,” Lauren said. “We researched different options and Golden Cross gives us a clear pathway.” They will keep a base of Holsteins, mainly for the export market, but Lauren and Jarrod see Golden Cross as the way forward and expect they will constitute the bulk of the milking herd. The first Golden Cross calves were born in February and Lauren and Jarrod are excited about the improvements they will make. “We have steep hills and they have a fair walk so they need good feet and legs, and it gets wet in winter so they need mastitis resistance,” Jarrod said. “These are traits Golden Cross focuses on so it gives us a path to where we want to be.” The moderate-sized cows also fit the farm’s needs. “As an industry, we can’t milk 700-kilo cows that can’t get back into calf,” Jarrod said. Their interest in Golden Cross prompted Lauren to enter a Viking Genetics survey
Lauren Meade and her husband Jarrod won 25 free straws of semen in an international competition.
competition, where she won 25 free straws of semen from the Viking catalogue. “We’re waiting for the new bulls to come out to select what we like but it will be most likely
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Aussie Reds for the Jersey-Friesian crosses to go three-way,” she said. “We were super excited when we found out we’d won.”
DAIRY NEWS AUSTRALIA MARCH 2021
18 // PASTURE IMPROVEMENT
PASTURE IMPROVEMENT FEATURE
Top rye-grass once again THE NEWS is out and for a fourth year
running, Base AR37 has proven its performance by coming out on top of Dairy Australia’s Forage Value Index (FVI) in all four regions. Australian bred for Australian conditions, this is the fourth consecutive year Base AR37 has been announced as a top performer in the FVI by Dairy Australia. The FVI rating system helps Australian dairy producers make informed decisions when choosing a perennial rye-grass cultivar. It provides an accurate, reliable and independent assessment of perennial rye-grass cultivars and the potential economic benefits in different south-east Australia dairy regions. The FVI is calculated by multiplying a cultivar’s dry matter performance value (PV)
by its economic value (EV), and Base AR37 perennial rye-grass topped the rankings across all four areas tested in south-west Victoria, Gippsland in southern Victoria, northern Victoria and Tasmania. “ P ro v i n g i t s p e r f o r m a n c e f o r f o u r consecutive years really demonstrates the superiority of Base AR37 in comparison to other perennial rye-grass varieties,” PGG Wrightson Seeds national sales and marketing manager Jason Agars said. Bred in Australia from drought-surviving plants by combining surviving north-west Spanish rye-grass plants from the mid-2000s drought with the AR37 endophyte, gives Base AR37 a competitive advantage over other perennial rye-grass varieties.
Base AR37 has topped Dairy Australia’s FVI for the fourth year in a row.
PGG Wrightson Seeds product development manager Isaac Berry said the results spoke for themselves. “Being a tetraploid perennial rye-grass, Base AR37 has greater palatability and digestibility than normal diploid type rye-grasses, resulting in a pasture that is more readily accepted by stock,” Mr Berry said. “This increased animal acceptance and quality of Base AR37 combined with its erect growth habit can improve animal intake and performance. “As leaders in the development of improved pasture plant genetics, PGG Wrightson Seeds provides trusted, proven and innovative performers backed by exciting new technology and extensive R&D, and Base AR37 is one of
the many achievements resulting from this objective.” For more information about how Base AR37 perennial rye-grass can improve your pasture production, contact your local PGG Wrightson Seeds sales agronomist: at www.pggwrightsonseeds.com.au Additional information on the Australian Forage Value Index and the 2020 Forage Value Index Pasture Tables can be found at: www. dairyaustralia.com.au/feed-and-nutrition/ growing-feed-for-the-herd/growing-pastures/ forage-value-index The Australian Forage Value Index is a partnership between Dairy Australia, Agriculture Victoria, DairyNZ, the Australian Seed Federation and Meat & Livestock Australia.
DAIRY NEWS AUSTRALIA MARCH 2021
PASTURE IMPROVEMENT // 19
Drainage improves pastures IN ALAN JEFFORD’S own words: “You cannot
afford not to put in drainage”. He is convinced about the profitability of subsurface drainage for dairy pastures in high rainfall areas. Alan decided to install subsurface drainage rather than investing in additional land. Subsurface drainage has allowed him to increase his winter pasture growth rates and reduce susceptibility to pugging, which purchasing additional land will not achieve, while also allowing the calving pattern to be moved forward from spring to autumn and take advantage of higher winter milk prices. Silage can now be harvested when it’s ready, with wet soils not limiting the harvest date. Alan and his family have been farming in Australia for 20 years, after migrating from England, spending four years in the Hunter Valley and 16 years on the current farm at Cloverlea in West Gippsland (110 km east of Melbourne and 15 km south-east of Warragul). Average annual rainfall is 1020 mm and can vary from 685 mm to 1250 mm, with the entire 176 ha farm now installed with subsurface drainage. Around 350 cows are calved down each year between January and September, but only 200 of these are kept in the milking herd. The overall stocking rate is about 2.4 cows/ha. The normal fertiliser application rate is a custom mix of 6:6:6:7 at 250 kg/ha/year, usually applied in May and pastures are limed each year. July, August and September are the months when pugging is most likely to occur on this farm but since putting in drainage, Alan estimates pugging has reduced to 25 per cent of what it was 20 years ago when he first came to the farm. In addition to the usual benefits of reduced pasture and soil damage by preventing waterlogging, drainage has also meant less udder washing. Originally 90 per cent of cows required udder washing before milking 20 years ago. Cows udders are no longer washed, which has resulted in a reduction of sediment in the milk.
Pasture management A large proportion of the herd calves in autumn to better utilise pasture, maximise lactation length and capitalise on higher winter milk prices. Cows are grazed behind an electric fence with two moves per day throughout the lactation. Winter pasture growth has increased because of the drainage.
Pugging has reduced significantly on one Gippsland farm, leading to more productive pastures, thanks to subsurface drainage.
When pasture growth exceeds cows requirements, paddocks are locked up and surplus is conserved as silage or hay. By having increased winter growth rates from drainage, pasture can be locked up for silage and cut much earlier than previously. This early cutting of silage has associated benefits of better quality and faster pasture regrowth. Alan has found that pastures on his drained paddocks also persist longer because of much less pugging damage. He said under drainage, only minimal pugging occurred and pasture recovered quickly. If soil is already wet and there is heavy rain cows may be offered a larger grazing area.
A feedpad was built nine years ago to make feeding maize silage easier. It allows cows to be fed as they leave the dairy. Previously cows would go on to wet paddocks empty and hungry, and being discontented, walk around causing more pasture damage. At the morning milking, half the herd eats while the other half is being milked. They are then swapped over. Cows spend up to 1.5 hours on the feedpad.
The impact of drainage Alan estimates that milk production has increased by a factor of four since the first year on the farm. This is partly attributed to the installation of drainage, in combination with soil testing and
appropriate fertiliser application, application of lime and improving pasture species. As a result, cow numbers have been increased from 80 to 200. Drainage has allowed Alan to move forward his calving to take advantage of the higher winter milk prices. This is a result of increased pasture growth in winter and spring from better drained soils, leaving more suitable conditions for root growth. Less pasture renovation is required, as subsurface drainage has reduced the incidence of serious pugging that damages pasture. He wanted to maximise use of pasture, as it’s the cheapest feed source. - Agriculture Victoria
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DAIRY NEWS AUSTRALIA MARCH 2021
20 // PASTURE IMPROVEMENT
Run-down pastures will require a bigger investment in time and resources.
Plan your pasture renovation
The benchmark for production and performance
HOMEGROWN feed on a dairy farm is most
often the lowest-cost feed source. Repairing run-down and severely droughtaffected dairy pastures is a high priority, but can be an expensive process.
Planning your renovation program Start by assessing and prioritising p addocks — and in some cases parts of paddocks — that will benefit from re-sowing or full renovation. These may include: ■
Higher fertility areas that will respond quickly with a simple re-sowing and start contributing to the grazing rotation. These may be the highest priority.
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Mid-range soil fertility areas that will require more preparation time and fertiliser/effluent cost but give a good response for this winter.
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Run-down pastures — perhaps regular silage/hay paddocks that will respond well to renovation as well as the addition of strategic fertiliser to support grazing early and production of multiple fodder cuts later in the year.
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Farm areas that have not performed well for years, and require time-consuming and costly renovation. These may be a lower priority and may need short-term species sown before sowing back to perennial grasses, for example an annual rye-grass followed by a fodder crop next summer.
Test soil samples from strategic areas on the farm if this has not been done in the past three years. The results will help prioritise the paddocks to re-sow first, and determine program and application rates of base and maintenance phosphorus, potassium and sulphur. Contact your agronomist for further information. The workload required and costs of the renovation program will assist in deciding what paddocks and how many paddocks can be renovated. Ensure that contractors are booked in advance and that the budget for the program includes soil testing, fertiliser, seed, contractors and extra labour if required.
Species selection and purchasing seed
Proven, reliable, persistent and high performing. Matrix Enhanced® perennial ryegrass truly is the benchmark for production and performance on Victorian dairy farms. It is thoroughly proven, reliable, persistent and high performing. Many farmers would argue that there is simply no better perennial ryegrass. The cows won’t argue with that either. They find it very palatable and eat it readily. MATRIX IS AVAILABLE FROM YOUR Farmers tell us the milk production lifts when the cows LOCAL SEED MERCHANT OR FARM are grazing Matrix. MERCHANDISE OUTLET Matrix is suitable for all pasture renovation, including over-sowing and is great value for money at about $100 per hectare cheaper than some varieties. For further information on Matrix contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375
Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 www.cropmarkseeds.com
Secure your seed early. Choose pasture and crop species appropriate to your rainfall, soil type and farming practices. The most commonly sown pasture species in dairying regions are rye-grasses. Other species options include fescue, cocksfoot, lucerne and winter cereals. Contact an agronomist in your area to seek information on species and varieties that perform well under the conditions in your district. If insects are a potential threat to your newly sown pastures, consider combining techniques that might help improve the establishment of your pasture and/or crop. Seed treatments can provide protection against insect attack during establishment. Consider using seed with endophyte for protection against insects if sowing rye-grass or fescue pastures. Further information is available from the Dairy Australia website at: www.dairyaustralia. com.au
DAIRY NEWS AUSTRALIA MARCH 2021
PASTURE IMPROVEMENT // 21
Make smart moves
EFFICIENT utilisation of pasture on-farm is
one of the keys to farm profitability, but accurate measurement is an ongoing challenge. The Pasture Smarts project team is looking for Victorian dairy farmers to test their technology and help design a pasture management system that works for your farm. The Pasture Smarts project aims to create a new management framework for measuring and utilising pasture that leads to higher yields,
is grazed and conserved more effectively, with better management of risks, and with a goal of simplifying day-to-day management. Participating farms will get their farm mapped and gain access to a prototype mobile app and dashboard as part of the project. The app and dashboard will show daily pasture yield data per paddock and will also give the option to enter pasture activity information that happens on-farm.
As part of the project the Pasture Smarts team will collect feedback on how the app works and attend partner farms to collect pasture samples and use sensors to measure pasture parameters. For more information, contact the project leader Dr Liz Morse-McNabb through email at: elizabeth.morse-mcnabb@agriculture.vic.gov.au or download an expression of interest form at: dairyfeedbase.com.au
Pasture Smarts project leader Dr Liz Morse-McNabb and team members Amy Copland and Dani Stayches.
FUELLING THE FARM’S ENGINE ROOM A pasture research site at Purnim in south-west Victoria is creating opportunities to put more fuel in the pasture engine room with the introduction of a number of cultivars to complement rye-grass based dairy systems. The Notman Pasture Seeds research trial site is at 1499 Hopkins Hwy, Purnim, and features new pasture grazing cultivars, including perennial rye-grasses, fescue, cocksfoot, legumes, brassicas, forage sorghum and herbs. Peter Notman of Notman Pasture Seeds said the company was keen to demonstrate various pasture compositions to ensure farmers don’t underestimate the value of quality cultivars. “It’s easy to overlook the impact of quality grasses with herbs and legumes on pasture productivity and farm profitability,” Mr Notman said. Plans to hold a field day in February were curtailed by new COVID-19 restrictions, but dairy, beef, sheep and crop farmers will soon be invited to the Purnim site to see firsthand a large range of pasture grazing cultivars growing side by side. Productivity on the property was poor when Notman Seeds took it over in late 2019, with low pasture density, reduced groundcover and invasions from various weeds and kikuyu summer grasses. Strategies were put in place to prepare paddocks for re-sowing including soil testing, glyphosate knockdown, a lengthy fallow followed up with secondary herbicide knockdown and spike. In spring 2020, the research site was planted with compact Kubota speed discs for efficient and precise seedbed preparation. Notman Pasture Seeds has been running pasture trials in south-west Victoria for more than 25 years, from Geelong to the South Australian border and on many farms in between. “Knowing which pasture species suit your soils, topography, management and enterprise needs is critical to making these decisions,” Mr Notman said. “Hopefully this site can assist farmers in strategies to choose the right combinations of species for their farm.”
Notman Pasture Seeds’ Andrew Allsop and Jonathan Town inspect a legume clover sward at the Purnim trial site.
Setting new benchmarks for late season quality
Dash annual ryegrass is the newest addition to livestock menus. It is fast establishing, high yielding, high quality and very palatable. At +24 days relative heading date (relative to Nui = zero) it is up to 10 days later heading, so that higher pasture quality will be maintained for longer into spring, translating into higher stock performance during this critical period.
DASH IS AVAILABLE FROM YOUR LOCAL SEED MERCHANT OR FARM MERCHANDISE OUTLET
If you are looking for an 8-10 month winter feed, then add Dash to your stock’s diet. It is a great feed and makes great silage and hay.
For further information on Dash contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375
Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 www.cropmarkseeds.com
DAIRY NEWS AUSTRALIA MARCH 2021
22 // PASTURE IMPROVEMENT
Effluent can help pastures IF MANAGED carefully, irrigation of dairy
effluent to pastures and crops can make good use of the nutrients, organic matter and water. Dairy effluent contains many nutrients and can be used on a range of pasture and crops, which has economic benefits. Applying dairy effluent to pastures can increase pasture growth considerably, according to a number of Australian and overseas studies. Victorian research has shown large and valuable responses can be obtained for both pasture and forage crops. The response varies depending on the time of year and is due to both the nutrient and water content of the dairy effluent. When applying liquid and solid dairy effluent, appropriate buffer distances from surface waters should be maintained to avoid contamination. Effluent should be applied to pastures or crops at the right time and in amounts that the plants can use the water and nutrients. If too much is applied at one time or if applications are repeated too often in the one place, there is a high risk of runoff to streams or groundwater. Dairy effluent is a valuable source of nutrients. Levels of nutrients contained in dairy effluent are generally lower than that of fresh manure, due to many factors. Nitrogen availability to plants is generally less with effluent than with artificial fertilisers
because some of the nutrients are bound up in the organic matter. In liquid effluent, a high proportion of nitrogen will be in plant-available forms. Sludge often has a high proportion of nitrogen in organic (slow release) forms. Some of this nitrogen will be made available for plant use into the future. Potassium has high availability and is a potential problem since it can replace magnesium in pastures making them more prone to cause grass tetany in cattle. This is only likely to be a problem if effluent is applied in the tetany season or restricted to a small part of the farm. Nutrient content of stored effluent is less than directly applied effluent. Some nitrogen is lost to the atmosphere whereas phosphorus and potassium and some of the nitrogen settle out in the sludge. The nutrient content of effluent varies widely and is dependent on many factors. The most accurate method of determining the nutrient value of your effluent is to take a representative sample and have it tested. This will then allow you to calculate appropriate application rates. The main aims in applying effluent to your pastures or crops are to maximise the use of nutrients by the plants without causing nutrient overload or waterlogging and minimise the loss
Irrigating effluent to pasture can deliver economic benefits, according to Agriculture Victoria.
of nutrients by runoff to streams and drains or leaching through the soil to groundwater. Avoid applying effluent to the same area year after year. This can lead to overloading the soil with some nutrients such as potassium. Care also needs to be taken with salts which may be contained in the effluent. So, unless you test your effluent and monitor the soil where it is applied on a regular basis, it is recommended that you rotate your applications around at least three or four areas, moving each year. Applying effluent to lower fertility paddocks will increase the fertility in these areas. Normal fertiliser applications needed to be altered in paddocks were effluent has recently been applied.
Effluent from your storage pond (second of two ponds or your single pond) should be applied over summer and autumn, so the pond starts each wet season almost empty. Applying effluent during the wetter months runs the risk of runoff to streams or leaching to groundwater when soils are saturated. Aim to empty the pond before soils become saturated. Apply effluent when pasture or crops are actively growing, so that they can use the nutrients. Applying to recently grazed pasture will allow the withholding period to be incorporated into the grazing rotation. Contact your vet if you have concerns about any specific animal health problems associated with applying dairy shed effluent to pastures or crops. - Agriculture Victoria
DAIRY NEWS AUSTRALIA MARCH 2021
PASTURE IMPROVEMENT // 23
Enjoy the perennial benefits PERENNIAL PASTURE species can achieve
better water utilisation than annual species, reducing waterlogging, dryland salinity, soil acidification and nutrient loss through run-off. Compared to annual species, perennials maintain a greater level of ground cover year-round, reducing the potential for soil erosion and weed establishment. Perennial pastures extend the growing season, which can reduce the need for supplementary feeding and can increase the production options. The high cost of establishing a new perennial pasture can take several years or more to recover. It is a profitable activity in the long-term due to potential increases in stocking rates and productivity, resilience in a changing climate and improved natural resource management. Perennial pasture, species composition and productivity can be managed with fertiliser and tactical grazing management.
Establishing a new perennial pasture Successful pasture establishment (and ongoing persistence and productivity) relies on the EverGraze principles of putting the right plant in the right place for the right purpose with the right management. Maximise the potential for success by: ■ Regularly testing soils to identify and manage any soil limitations to pasture and livestock production. ■ Controlling weeds prior then use reliable sowing techniques, such as direct drilling, to achieve high plant densities at establishment — critical for the economics of pasture improvement. ■ Selecting pasture species and cultivars suited to the rainfall, soil type, acidity, salinity, growing season length and any other environmental factors. ■ Sourcing accurate and independent information and advice on appropriate pasture species and interpreting soil test results measuring the number of plants per square metre for each perennial species sown to see which pasture species persist or when/why they died out. ■ Making decisions to graze or destock the pasture based on the needs of the sown species and ground cover targets, to minimise weeds and ensure long-term pasture persistence. ■ Monitoring livestock performance (DSE/ ha or kilograms of product/ha together with gross margins) from sown pastures compared with district benchmarks or other paddocks on the farm to calculate production benefits. ■ Increasing stocking rate, and if necessary, modifying the time of calving to efficiently utilise improved pastures. Consider the pros and cons of increasing stock numbers — increased returns, more capital, labour, risk, and pressure on infrastructure, etc. It is particularly important to establish a plan for managing any increased risk and to regularly monitor outcomes against the plan. ■ Assessing pastures and livestock condition regularly and calculating feed budgets to monitor and manage the risks of increasing stocking rates,applying fertiliser to meet the needs and production potential of the pasture.
Indicators of healthy improved perennial pastures Successful and productive perennial pastures are characterised by:
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Up to 40 per cent legume content and at least 40 to 60 per cent perennial grasses during the peak growing season. Ground cover of more than 70 per cent year-round. At least 1000 kg of dry matter per hectare at the point of autumn break. At least 15 to 20 desirable perennial plants per square metre (50/square metre for newly-sown pasture).
Optimal pasture utilisation through tactical grazing — characterised by evenness of grazing, species composition and seasonal dry matter content. ■ Optimal soil fertility — according to species composition and soil test results. Additional information and guides to establishing and managing a wide range of perennial pastures across Australia’s temperature can be found on the EverGraze website. - Meat & Livestock Australia ■
Establishing perennial pastures is a longer term project but has distinct benefits.
Zoom – the king of annual ryegrasses TM
ZoomTM is a specialist winter feed. An ideal break crop between maize and other crops, it is very quick to establish and shows exceptional autumn/winter growth and rapid re-growth. ZoomTM offers the advantages of excellent palatability and high metabolisable energy content.
ZOOMTM IS AVAILABLE FROM YOUR LOCAL SEED MERCHANT OR FARM MERCHANDISE OUTLET
ZoomTM can provide multiple grazings over autumn and winter before being shut up for high quality silage in the spring.
For further information on Zoom contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375
Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 www.cropmarkseeds.com
DAIRY NEWS AUSTRALIA MARCH 2021
24 // PASTURE IMPROVEMENT
On-off grazing stops pugging GRAZING paddocks when soils are wet results
Agriculture Victoria has provided some tips about on-off grazing to help reduce pugging.
in pugged pastures and soil damage. On-off grazing is a practice that can reduce damage to soil and pasture when grazing wet paddocks. In on-off grazing, cows are allowed to graze their next daily allocation for a short period (usually two to four hours) and are then moved off the pasture to a stand-off area to reduce damage from pugging.
If cows are not removed after this period, they tend to keep searching for clean pasture or seek shelter from rain and wind. They usually consume very little extra pasture, but pugging damage increases substantially.
Requirements for on-off grazing Research and farmer experience have shown that on-off grazing appears to have a negligible detrimental effect on daily milk production.
But for this strategy to be successful, your pastures and cattle must meet the following conditions: ■ Pasture cover must be enough to maintain or extend the first (and possibly second) rotation to avoid a feed shortage. ■ Pastures being grazed must have good length and density to allow high and rapid intakes. Pastures should have a height of about 10 cm to 15 cm (2200 kg to 2500 kg dry matter/ha), or be in the two to three green leaf stage. ■ Cows should be healthy, have no lameness and low in mastitis incidence. ■ Ensure there is enough magnesium in the diet. If it is limited, supplement the diet with magnesium. ■ Cows must be in good condition.
Adjusting the grazing time
PREMIUM QUALITY AFFORDABLE PRICES
Research in south-west Victoria showed cattle can consume about 6 kg to 10 kg DM per cow in two to four hours of grazing as long as pasture cover is high. Extending the grazing period beyond this period resulted in severe pasture damage due to pugging. After two hours of grazing, the cattle had eaten about 70 per cent of the pasture they would eat over the full grazing period. After four hours grazing, 77 per cent to 88 per cent of the pasture was eaten. (The lower intake of 77 per cent was because of the lower initial pasture cover — 2120 kg versus 3100 kg DM/ha. On shorter pasture, cows must take a greater number of bites per kilogram DM intake and walk further to achieve similar intakes.) The extra pasture intakes of 1.5 kg to 2.1 kg DM per cow doesn’t warrant leaving cows on pastures after about four hours. If the paddocks are extremely wet and serious pugging damage is likely, then removing cows after two hours will be justified. Some soil types are also more prone to pugging damage after varying periods of grazing at the same moisture content.
Effects on pasture regrowth
Blade is a new premium quality Italian ryegrass with high yields and high pasture quality. BENEFITS:
12 – 18+ months pasture subject conditions Fast establishing and high yielding Strong winter activity High pasture quality Lush and palatable A week or more later heading (+24 days)
Blade has lush leaves, is highly palatable and being a week later heading than most other diploid Italians, its pasture quality is carried through longer into spring. If you are looking for the latest Italian ryegrass to help lift your farm’s milk production, then look no further. Ask for Blade Italian ryegrass.
Benalla Office: 03 5762 5288 Mike Smyth: 0407 309 866 www.smythseeds.com.au
Data from New Zealand research that compares 24-hour block grazing with on-off grazing suggests that regrowth rates for on-off grazing increased by 18 per cent to 52 per cent in early spring. Past research in south-west Victoria found major improvements in pasture growth and utilisation when grazing wet pastures when using the on-off grazing technique in the late winter to spring period. Relative to an unpugged to dry soil, all-day grazing (seven to eight hours) suffered a 30 per cent reduction in pasture yield and 23 per cent reduction in utilisation. In comparison, the two and four hour on-off grazing treatments only suffered a three per cent and nine per cent reduction in yield and eight per cent and three per cent reduction in utilisation. The on-off grazing treatments also resulted in considerably less pugging damage to the pasture than the seven to eight hour grazing. Perennial rye-grass tiller densities by the end of spring had fallen to 1800 tillers per square metre for the seven to eight hour grazing and 3250 and 2800 tillers per square metre for the two and four hour on-off grazings. - Agriculture Victoria
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DAIRY NEWS AUSTRALIA MARCH 2021
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Recipe for cereal success WINTER cereals offer a range of advantages for
dairy systems, but what are the key management considerations to deliver success? Advantages include winter cereals are quick to graze, more tolerant in dry conditions than rye-grass, plenty of weed control options, more tolerant to poor seedbeds than rye-grass, enables a strategic use of irrigation water and can benefit soil structure.
Dairy Australia has composed a timeline to ensure you’re getting the most out of your winter cereals.
JANUARY Choose a species and variety based on your end purpose. Targeted feed gap and end use: This will guide species and characteristics of variety, for example, early, mid or late maturing.
Weed burden: Wheat has the greatest range of options for in-crop weed control. Oats have the least. Rotations: Weed and disease burden and nutrient requirements are affected by rotations. Check with your agronomist for advice.
FEBRUARY Understand your costs up front: Do a gross margin.
Understand your weed burden and plan your pre-emergent options: Avoid Group Bs on irrigation. Check your soil fertility: Do soil testing. Identify any sub-soil constraints. Plan your nutrient requirements accordingly.
MARCH For irrigated ground the time of sowing is based on varietal selection, end purpose and climate conditions. Ideally sow into moisture. Determine sowing rates: Base it on the plant population you want, seed size and expected establishment. Plan your nutrient applications: A cereal hay crops needs about 20 kg of nitrogen (N) per tonne of hay produced.
APRIL
Sonik – fast, reliable winter feed
First grazing: The earliest graze should be when a cereal plant will not pluck out of the soil (has enough root development to withstand cows pulling on it). This usually occurs around 20–25 cm in height. Crops need a residual amount left over to recover from grazing of 5–10 cm. Assess nutrient requirements: Do you need to top dress after first grazing? Time with rain or irrigation. Monitor weeds and pets: Crops are generally more susceptible to insect attack during this period. Strong healthy crops tend to beat the bugs the best. If you have low soil fertility you might be more susceptible. Look our for RLEM, flea, cutworm and wireworm.
MAY AND JUNE Stay on top of weed control. Options will relate back to varietal and species selection. Be mindful of plant backs and grazing withholding periods. Graze again. Monitor nutrient requirements. Rampant tillering and dark green colour — lots of N available. Low tillering and pale green/yellow colour — N may be deficient. Tissue test to confirm.
JULY AND AUGUST
Sonik – rapid establishment and strong winter activity Take the worry out of winter feeding. Sonik is the winter feed champion, with rapid establishment and strong growth rates over autumn, winter and spring providing the feed platform you need for great livestock performance. Sonik is ideal for over-sowing into run-out or damaged pastures, rejuvenating paddocks or for full cultivation as short term (1-2 year) specialist pastures. Sonik has excellent tiller density for higher yield, persistence and better ground cover.
For further information on Sonik contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375
Typically final graze now to mid-August, depending on where node is at. Do not graze after stem elongation — can reduce silage yields by up to 50 per cent. Cut open plant stem to identify where developing ear is at. Revisit nutrient requirements.
SEPTEMBER
SONIK IS AVAILABLE FROM YOUR LOCAL SEED MERCHANT OR FARM MERCHANDISE OUTLET
Monitor seasonal conditions and consider irrigation. For best return on water applied, irrigate prior to any stress in cereal. Check gross margin — how much can you afford versus what is the likely yield benefit? Consider fungicide requirement now for whole-crop silage or hay — check withholding periods.
HARVEST
Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 www.cropmarkseeds.com
Plan harvest schedule based on end purpose and crop development stage. For whole-crop cereal silage, choose either flag leaf-boot stage (lower yield, higher ME and CP) or late milk-soft dough stage (higher yield, variable ME and lower CP). Cut at target dry matter and don’t guess — measure.
DAIRY NEWS AUSTRALIA MARCH 2021
PASTURE IMPROVEMENT // 27
Rest periods boost growth Rest periods allow plant species to replenish soluble carbohydrate stores, which are depleted in the grazing process. Grazing once these reserves have been replenished and prior to leaf senescence, provides optimal quality for grazing and maximises production per hectare. Once plant species are grazed, carbohydrate reserves in the plant’s roots and base are used to initiate growth, before the plant has enough leaf area to undertake photosynthesis and accumulate photosynthates. Grazing during the regrowth phase can severely affect the plant’s persistence, regrowth and production. The cause of this is due to the depletion of a plant’s soluble carbohydrate stores before it has enough time to replenish stores that were used for initial regrowth. For rye-grass (Lolium spp.), it is not until the second leaf has emerged that soluble carbohydrate levels have been replenished enough for grazing to recommence. It is therefore recommended that grazing be undertaken, not before the second leaf, but prior to the fourth leaf or leaf senescence. The optimal time for grazing is the threeleaf stage. Grazing rye-grass at a three-leaf stage results in more tillers per plant, more roots per plant and better plant survival. This ultimately reduces the amount of invasive summer and winter weeds. Rotational grazing is recommended as it allows for adequate rest periods and ultimately leads to increased plant persistence, pasture utilisation and regrowth. Continuous grazing fails to provide sufficient time for replenishment of carbohydrate stores and does not allow pasture growth to be maximised. Additionally, pasture utilisation generally ranges from 40 to 80 per cent and can influence the potential returns per hectare. Strip grazing and high stocking rates on small areas can assist with increasing pasture utilisation, while large open paddocks, continuous grazing and low stocking rates result in under-utilised pasture. Grazing duration is also important. The time spent grazing in an individual area should be short to avoid the grazing of regrowth. Therefore it should be no longer than one to three days. Reductions in DM production of up to 40 per cent have been reported in studies from Tasmania when pasture was grazed for six days when compared with one to three days (Michell and Franks 1993). In general, within a regrowth phase each new leaf is about 1.5 times greater than the
previous leaf (that is, leaf two versus leaf three) and therefore grazing at the three-leaf stage maximises production.
Adequate rest periods for pasture are key to maximising growth.
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NEED EVEN MORE CONTROL? For those wanting more advanced control and measurement there is an upgrade to include GPS functionality. This will enable coverage mapping of jobs as they are done for proof of placement, and add prescription maps through the USB port for variable rate spreading.
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In order to reach full potential, all pastures require a rest period in order to maximise growth and maintain persistence. Australian seed business Barenbrug has provided some tips to maximise pasture productivity by ensuring adequate rest periods.
DAIRY NEWS AUSTRALIA MARCH 2021
28 // PASTURE IMPROVEMENT
Webinar to share latest FVI news AUSTRALIAN dairy farmers invest more than
Available mid-March
*
$100 million a year renovating their pastures, with rye-grass based pastures by far the most common homegrown source of feed. With both short term — annual and Italian — as well as perennial rye-grass species all widely used, and many different cultivars available on the market within each species, it can be a real challenge for farmers to choose the most suitable variety for their farm. One way to assess the yield and relative economic performance of the different cultivars within a species such as perennial rye-grass, is to use the Dairy Australia Forage Value Index (FVI).
Join DairyTas extension officer Liz Mann, Dairy Australia’s Feedbase lead Ruairi McDonnell and Agriculture Victoria research fellow Kevin Smith in an online forum to find out about the latest update to the FVI and what’s being planned to help you select the right pastures for the future. The Future Forage Value Index (FFVI) project is part of the DairyFeedbase program which is a joint venture of Agriculture Victoria, Dairy Australia and the Gardiner Foundation. The webinar will be held on Wednesday, March 10 from 12.30 pm to 1.30 pm. For more information or to r egister, v i s i t : w w w. d a i r y a u s t r a l i a . c o m . a u / en/events-calendar/2020/12/14/ ask-the-researcher---ffvi-and-fvi
An Ask the Researcher event will tackle questions about the Future Forage Value Index project.
DAIRY NEWS AUSTRALIA MARCH 2021
PASTURE IMPROVEMENT // 29
It’s hip to be square baling PREPARATIONS are in full swing for the
upcoming Fodder Festival 2021 with booths booked, new machinery at the ready and registrations rolling in for the big day on Wednesday, March 17 at the Elmore Events Centre in northern Victoria. Hosted by the Australian Fodder Industry Association and Elmore & District Machinery Field Days, the event will appeal to anyone whose business includes fodder, from growers and contractors to traders and end-users. The theme of the day, ‘The Future of Big Square Baling’, will come to life with a morning of machinery demonstrations. “With irrigation and 45 mm of recent summer rain, the crop is looking fantastic for the machinery demonstrations which are always popular,” AFIA chief executive officer Paula Fitzgerald said. Dyna Dan sorghum has been planted and fertilised on the site, thanks to Nutrien Ag Solutions. “Seven demonstrations will take place across 12 hectares showing off the latest machinery,” Ms Fitzgerald said. “This will be accompanied by commentary and an interactive audience Q&A. “The newest square baler models will be on display by Claas, Krone, Kuhn, Massey Ferguson, Staheli West and New Holland. “Berrima Engineering will give their latest hay rake a run, and Vicchem will demonstrate their latest application technologies.” The demonstration site has undergone soil testing by Precision Agriculture, which will report its findings on the day. The event will also feature trade displays, product launches and presentations and a panel discussion. “After the year that has been, we are really looking forward to a great day out in the paddock, catching up with our members and all those who contribute to the fodder industry,” Ms Fitzgerald said. The 2021 Fodder Festival is presented by AFIA in partnership with the Elmore Field Days Committee. It will start with breakfast at 7am on Wednesday, March 17. Register at: www.afia.org.au/index.php/ news-events/fodder-festival-2021
-ceptional palatability -traordinary persistence Seed Force soft cocksfoots the x-cellent all year round performers X-hausted from trying to get perennial ryegrass to hold through summer and provide feed in marginal settings? Then its time to x-plore our range of x-cellent soft cocksfoots – the x-ceptional perennial ryegrass pasture alternative.
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*based on up to 13 regional yield trials in Australia (10) and New Zealand (3). *Nutritive value analysis taken from 6 cuts over a full year and analysed at NSW DPI Feed testing service.
DAIRY NEWS AUSTRALIA MARCH 2021
30 // ANIMAL HEALTH
Cows need their dry time LUCY COLLINS
AFTER EVERY lactation, dairy cows require
time to undergo a natural process of udder tissue rejuvenation — this is usually referred to as the ‘dry’ period, and typically lasts six to eight weeks. This has health benefits for the cow, and production benefits for the farmer in the subsequent lactation. Efforts should be made in the weeks preceding drying-off to decrease milk production and encourage teat plug formation. Cows producing less than 5 litres/day can significantly increase bulk milk cell counts (even when they do not have mastitis) as cells concentrate in the reduced milk volume, and milk composition and quality can be adversely affected. Thus, cows are ready to dry-off once production falls to 5 litres/day or below. For high producing herds, the figure may sit closer to 7 or even 12 litres/day. For cows producing greater than 12 litres/day, management changes such as a reducing plane of nutrition, and in some cases ceasing concentrate or supplementary feeding can accelerate the reduction, but it is still important to ensure a cow’s increased late-gestational energy requirements are met. Complete feed deprivation or water restriction are serious breaches of welfare compliance and should never be attempted. Drying-off can also be accelerated by alterations to routine or disrupting social structures within the herd. Current industry recommendations encourage an abrupt dry-off once production is lowered — skipping milkings isn’t advised. Dry cow treatment with intra-mammary antibiotics and/or internal teat sealants may be administered immediately after the last milking. Intra-mammary treatments at this time must be infused in an extremely hygienic manner into a sanitised teat to avoid introducing new infections at the time of dry-off. All four quarters should be treated (unless the cow was a three-teater during lactation). Teat spray or dip should be applied afterwards, and cows then placed in a clean area for two hours where they cannot lie on bare or contaminated ground.
Drying-off cows offers benefits for the farmer and future lactation.
Recording all treatments appropriately and marking cows for easy recognition should also form part of your dry-off routine. Dry cow antibiotic treatment may be used either selectively or as a blanket therapy for all dry cows. The two main goals of dry cow antibiotic treatment are to treat existing or persistent subclinical infections without discarding milk, and minimise potential new infections occurring during the dry period. Research indicates up to 50 per cent of clinical cases of mastitis in the first 100 days of lactation are environmental pathogens acquired during the dry period. Dry cow antibiotic treatments are designed to remain in the udder at high concentrations for extended periods of time, providing both treatment and protection if used correctly. Dry cow antibiotic treatment will not protect against some of the environmental bacteria species that may be introduced during dryingoff if hygiene is poor. Choice of dry cow antibiotic will vary depending on duration of coverage required, types of bacteria present and previous responses to treatment. No antibiotic product offers 100 per cent efficacy, and the decision is best made in consultation with your milk quality advisers.
For Selective Dry Cow Treatment, antibiotics are typically used only in cows where peak individual cell counts were greater than 250,000 cells/ml in the current lactation, and in any cow that had a clinical case of mastitis. Farms could consider a Selective Dry Cow Treatment program if they have: good clinical mastitis records, a low annual average BMCC, regular herd testing, low rates of calving-time mastitis, good dry cow management with no cases of mastitis after drying-off and no history of mastitis caused by Streptococcus agalactiae. The risk of acquiring a new infection in the dry period is also reduced considerably by using an internal teat sealant at the time of dry-off and most farms using selective treatment programs will still administer a sealant to the whole herd. When implemented correctly, Selective Dry Cow Treatment programs can offer significant cost savings and greatly reduce the amount of antibiotic used on your farm. Staff training, planned treatment protocols and having a well-established relationship with your milk quality advisory team will all help maximise the success of your next dry-off. For further information, visit: bit.ly/3dFMnnj Dairy Australia’s Countdown Milk Quality program also has some fantastic resources that can assist farmers to make informed decisions about their dry cow strategy.
I M AG I N E T H AT K N OWI N G WH I C H COWS A R E O N H E AT O R U NWE L L CA N B E A S S I M PL E A S LO O K I N G AT YO U R PH O N E . - Simplify animal health decision-making - Monitor for the effects of ration changes - Catch silent heats & identify anoestrous cows - Improve on-farm efficiencies - Eliminate the need for patches & tail paint CALL US TODAY ON 1300 138 247 TO BE CONNECTED WITH ONE OF OUR MONITORING E XPERTS www.allflex.com.au
Dairy News Australia columnist Lucy Collins.
The author has no affiliations (financial or otherwise) with any manufacturers of intra-mammary products. 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 family’s 650-cow dairy farm in Dixie. She is a 2021 Nuffield Scholar supported by Gardiner Dairy Foundation.
DAIRY NEWS AUSTRALIA MARCH 2021
ANIMAL HEALTH // 31
Trial tests supplements A RESEARCH study into the use of mineral
supplements with dairy heifers grazing lowquality wheat has found that the quality of feed may negate the impact of the minerals on weight gain. Mineral supplementation for sheep grazing a wheat crop is a common industry practice to improve weight gain, The trial, run at the Dookie campus of the University of Melbourne in northern Victoria, found the mineral supplements afforded no significant weight gain, compared to the c ontrol group. The low-quality wheat during draught period was fed to both groups of heifers. Two minerals, magnesium oxide and coarse salt, mixed at 1:1 ratio were offered to grazing heifers ad libitum. The two treatments for the trial comprised one group grazing wheat only, which served as a control group, and grazing wheat with mineral supplementation in the other group. University lecturer in livestock nutrition and grazing management, Dr Paul Cheng, conducted the trial in spring/summer, 2017. “The lack of weight gain to mineral supplementation in this study may be due to inadequate
crude protein supply to the animal,” Dr Cheng said. The other hypothesis being tested in the trial, was the effect of mineral supplements on the level of nitrogen contained in the animals’ urine. This could have an impact on e nvironmental pollution. “The study indicates that protein deficiency may override the mineral deficiency when h eifers grazed mature wheat, and this may have led to no mineral supplementation effect on heifer performance,” he said. “The level of protein in grazing wheat needs to be considered in feeding minerals to heifers in draught season. Dr Saranika Talukder, a co-investigator of this study, said mature wheat crude protein content was substantially below the growing heifers’ requirements, which may be the cause of having insignificant differences in weight gain and urinary nitrogen content between the two groups tested in this study. “A future indoor study is needed to confirm the result by establishing the inter-relationships between feed intake, water intake, urine volume and nutrient output in the urine,” Dr Talukder said.
The dairy heifers grazed wheat, with one group consuming a mineral supplement.
DAIRY NEWS AUSTRALIA MARCH 2021
32 // ANIMAL HEALTH
Keep an eye on pinkeye IT IS always worth looking ahead and antici-
pating problems before they appear, and with the current conditions the risk of a pinkeye outbreak is high. Therefore farmers need to be vigilant. Pinkeye (Infectious keratoconjunctivitis) is a highly contagious, painful and debilitating disease that can severely affect animal productivity. With low stocking rates and abundant spring growth some properties have plenty of long grass, and recent rains have increased fly populations, both increasing the spread of pinkeye. The summer season brings increased sunlight and dust, which can make the eye more vulnerable to the disease. Pinkeye usually occurs in young cattle in their first summer. After this initial infection, cattle develop immunity to the disease but may remain carriers of the bacteria, Moraxella bovis, which potentially can lead to future outbreaks in following years. The clinical signs of pinkeye include clear and watery tears, signs of irritation, an aversion to sunlight, reddening and swelling of the eyelids and cloudiness of the eye. In a small percentage of cases, an affected eye may form an abscess and rupture, leading to permanent blindness.
While most affected eyes completely recover after three to five weeks, a number may be left with scarring on the surface. Pinkeye can be treated with antibiotic ointments, sprays, injections and patches or a combination of these treatments. Extra care should be taken when mustering cattle for the purposes of treatment for pinkeye, as factors such as dust and flies may enhance the spread of the disease. There is also a vaccine available that helps give immunity against three strains of Moraxella bovis. Other control measures include controlling fly numbers to limit the spread of b acteria from animal to animal, prompt segregation and treatment of pinkeye in affected stock and avoiding unnecessary yarding of cattle during periods where the risk of outbreak is higher. Attention should also be taken not to confuse pinkeye with other conditions of the eye, such as a grass seed in the eye, eye cancer and other eye infections. For further advice contact your local veterinarian or Agriculture Victoria veterinary or animal health officer. - Dr Jeff Cave, Agriculture Victoria district veterinary officer
A cow infected with pinkeye.
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FACIAL ECZEMA ALERT FOR GIPPSLAND A facial eczema alert has been issued for the Gippsland region of southern Victoria, with a series of very high spore counts recorded. Dairy Australia animal health and fertility lead Dr Stephanie Bullen issued the alert for the Macalister Irrigation District, West Gippsland and Orbost regions. “All farmers in these regions are advised to implement preventative measures in both your milking herd and dry stock as a matter of urgency if you have not done so already,” the Facial Eczema Alert on February 17 said. “Farmers in other regions are advised to continue to closely monitor sentinel farm spore counts or begin monitoring your own counts.” Facial eczema occurs when cattle ingest spores of the fungus Pithomyces chartarum. The spores contain a toxin, called sporidesmin, which damages the liver and bile ducts. One of the first signs of facial eczema may be a sudden drop in milk production and a short period of diarrhoea.
However, often the most recognisable sign of facial eczema is inflammation of unpigmented skin and sensitivity to sunlight. This is called photosensitisation. This occurs because the damaged liver is unable to process products from the chlorophyll in grass and they build up in the bloodstream. Not all animals affected with facial eczema will show symptoms when liver damage has occurred. Research conducted in New Zealand suggests that for every one clinical case of facial eczema, there may be a further 10 cows with liver damage and reduced milk production. The treatment for facial eczema is non-specific and is aimed at reducing pain and irritation associated with photosensitisation. There is no cure for facial eczema. For more information on facial eczema, pasture spore count monitoring, and facial eczema prevention, visit: www.dairyaustralia.com.au/animalmanagement-and-milk-quality/animalhealth/facial-eczema For advice specific to your farm, contact your vet or nutrition adviser.
DAIRY NEWS AUSTRALIA MARCH 2021
MACHINERY & PRODUCTS // 33
Tracking trouble
A new sensor is delivering data about trough consumption trends and variations.
A PROVIDER of remote monitoring solu-
tions for Australian agriculture has released the Wireless Trough Sensor, a device which connects farmers to their water supply right up to the point of consumption. The Farmbot Monitor can be connected through a wired or wireless connection, providing farmers real-time consumption trends and variations via a cloud-based dashboard. The system can also send alerts if an issue is detected in the trough, allowing issues to be rectified before they become a crisis. The software provides farmers with information on average and minimum water levels and these can be analysed over time from anywhere via the farmer’s computer or handheld device. Farmbot managing director Andrew Coppin said the launch of the Wireless Trough Sensor was the next step in the evolution of the connected farm. “In the last year Farmbot has developed, launched and sold monitors for water dams, water lines, diesel tanks, rain gauges and now for troughs,” Mr Coppin said. “Incrementally, we are building an end-toend solution which combines hardware, sensors, satellite and cellular connectivity, and cloud-based software to provide farmers with a holistic view of their on-farm resources delivered to the palm of their hand.” The Wireless Trough Sensor is an add-on to the Farmbot Monitor, the device which integrates Farmbot’s entire range of sensors and monitoring devices. The cloud-based MyFarmbot dashboard collects, stores and reports on information from each monitoring location from anywhere at any time. The technology leverages satellite connectivity and can alert farmers when there is an issue with their water infrastructure that would lead to excess waste, such as a leak, overflow or broken pump. Farmers can also immediately identify issues that may be preventing their animals from consuming water, reducing the risk of dehydration and the associated impacts to growth rates and fertility. For more information, visit: www.farmbot.com.au
“In the last year Farmbot has developed, launched and sold monitors for water dams, water lines, diesel tanks, rain gauges and now for troughs.”
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DAIRY NEWS AUSTRALIA MARCH 2021
34 // MACHINERY & PRODUCTS
Running a smarter farm A VICTORIAN training facility is transforming
its agriculture operation through the adoption of precision ag technology. SuniTAFE’s SMART farm in Mildura is utilising John Deere machinery to tackle a sustainable, manageable, accessible, rural technologies (SMART) approach to farming. As the agricultural landscape has evolved, and data-driven farming has never been more important, SuniTAFE SMART farm manager Warren Lloyd said it was essential the facility could provide precision agriculture training. “We are embracing technology and want to make sure we’re at the forefront of any advancements in horticulture,” he said. “We are trialing the latest technologies here and then teaching it to our students, so they are the forerunners when they head into careers in the industry.” Working with its local John Deere dealership, Haeusler’s Mildura, SuniTAFE took the first step of its precision agriculture pathway through enhancing a John Deere 5085 GF tractor with JDLink and Generation 4 CommandCenter technology. Through John Deere equipment, and Connected Support which will enhance uptime, Mr Lloyd is eager to see SuniTAFE become a state-of-the-art training and research facility that will harness the latest innovations and best
The John Deere 5085 GF tractor has been fitted with JDLink and Generation 4 CommandCenter technology.
SuniTAFE SMART farm project manager Warren Lloyd says John Deere Connected Support has helped the training facility embark on its precision agriculture journey.
practices of digital farming, and hopefully, help horticulture evolve. “We have a unique opportunity to showcase the potential of technology advances in real life applications at a grassroots level,” he said. Features within the John Deere Connected System system, like Remote Display Access, allow a qualified technician to connect virtually to the
cab and assist in troubleshooting with set-up or to increase optimisation of technology and machinery. Although SuniTAFE is only 5 km away from its local dealership, Mr Lloyd said this link was invaluable as it prevented failures from occurring in the first place. “It’s a fantastic feature as it’s better for the dealer and better for us.
“If they can connect remotely to help us with something minor it is saving everyone time. “The key to farming is often solving problems, and farmers who can solve problems swiftly and easily are often the most successful.” The system’s ability to automatically record and collate real-time paddock data has been a welcomed feature, according to Mr Lloyd. “Keeping records can be a real bugbear. “If you leave it even a day and try and remember yourself, it can quickly become a nightmare. “The fact our John Deere tractor does that autonomously and immediately is incredible.” Also, the on-board weather station, fitted to the top of the 5085 GF, was “hugely effective”.
DAIRY NEWS AUSTRALIA MARCH 2021
MACHINERY & PRODUCTS // 35
MACHINERY DEMAND OUTSTRIPS SUPPLY If you managed to find a tractor last year, count yourself lucky. If you’ve been madly trying to buy a tractor — it may be late 2021 before you can get your hands on something. The combination of an excellent season and government instant tax write-offs in mid-2020 fueled a no-holds-barred buying splurge at agricultural dealerships across NSW, Victoria and Queensland. Sales — particularly of tractors — achieved levels not seen since the 1980s and finished 2020 well above the 13,000 unit mark. The Rural Group in northern Victoria operates dealerships across Shepparton, Cobram and Echuca where it sells Polaris and New Hollard machines straight off the factory line, in addition to all types of second-hand machinery. Rural Group Shepparton branch manager Chris Pettigrove said the demand seen from June 2020 to now stems from the Federal Government’s Instant Asset Write-Off Scheme. “The market in June was just crazy, it really was, it was the highest I’ve ever seen it and then it sort of … kept on going,” Mr Pettigrove said. “It created this shortage of stock worldwide, which was brought on by the huge demand but worsened by the problems in production overseas with COVID-19.” The worldwide stock shortage has blown many buyer wait times out to six or seven months and created a scarcity of new tractors on the ground in Australian dealerships. “And of course what happens is with the shortage of new machines the second-hand market as taken off, and there is just nothing available now,” Mr Pettigrove said. “We don’t have what I would call a ‘higher priced’ second-hand tractor in stock, which is amazing because normally we’d have heaps.” Mr Pettigrove said a lot of new machinery was being held up at end-ofline production. “We find a lot of the machinery is being produced and ready to ship, but there is something missing off it. “We get the New Holland serial numbers and we can follow them from the factory, and they will just sit there and not go on the boat and we wonder why, but they are just waiting on certain parts and it delays them by months.” New Holland’s production chain is spread across Europe, North America and Asia. Tractor and Machinery Association of Australia executive officer Gary Northover said the increase in sales numbers across the nation was due “almost entirely” to the Instant Asset Write-Off Scheme. “The used equipment market, supported by the Instant Asset WriteOff Scheme, has been strong and finance rates continue to be set at extremely high levels,” Mr Northover said. Between 2019 and 2020, sales in NSW increased by 40 per cent and Victorian sales increased by 22 per cent. The Instant Asset Write-Off Scheme ends in June.
Compact and efficient airdrill THE ELECTRIC drive AS2400 Airdrill from
John Shearer caters primarily to farmers with small to middle size holdings. The 6 m sowing width is available with sowing spacing options of 125 mm, 150 mm or 175 mm. A new electronic drive system replaces traditional chains and sprockets resulting in notably reduced maintenance needs.
Calibrating seed and fertiliser rates is much easier than before with control via a tablet that allows operation from the tractor seat or next to the airdrill. The airdrill has a two-compartment hopper with a total capacity of 2400 litres. To find your local dealer of Australian-made John Shearer machinery visit johnshearer.com.au
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