Dairy News Australia West Vic Region December 2023

DECEMBER, 2023 ISSUE 158

WEST VIC REGION

A WINNING FORMULA Brendan Crabbe is planning to try some new summer crops this year, if it’s not too wet.

The Crabbes are proof that the family that farms together, stays together. Page 4.

ALL THINGS

TM

RURAL

...That’s what we do better!

NEW S T 28 WE ORE ST ST BEGA NSW

CROPPING • DAIRY • BEEF • SHEEP • LIFESTYLE FARMING - AG WAREHOUSE IS READY TO SERVICE YOUR RURAL NEEDS.

Cobram Cohuna Colac

Corryong Dumbalk Eskdale

AGRONOMY Finley Foster Heywood

Kiewa Koroit Korumburra

CONVENIENT DRIVE THROUGH Leongatha Maffra Numurkah

Orbost Rochester Simpson

FERTILISER SERVICES Swan Hill Wangaratta Warragul

FUEL Wonthaggi Yarram

COMMUNITY SPONSORSHIP

For store locations and opening hours go to agwarehouse.com.au Fuel available at these stores.

îs. 32921_AUG

ON FARM DELIVERY

DAIRY NEWS AUSTRALIA DECEMBER 2023

2 // WEST VIC REGION

Chair’s message

Great year in the great south-west

BY BRENDAN REA

IT’S HARD to believe it’s December already,

but here we are.

Looking back at the past year, it’s great to see that many in south-west Victoria have had a productive and successful 12 months.

The latest data tells us the region’s farmers are currently in a positive frame of mind regarding their farm business and the industry as a whole.

Pleasingly, more than 90 per cent of farms in our region made a profit in the last financial year, and the 2022-23 Dairy Farm Monitor project report shows the average profit was the highest it has been in the 17 years of the project (accounting for inflation).

While this is undoubtably good news, it’s important to remember that farmers still face numerous challenges.

At WestVic Dairy, our mission is to advance the south-western Victorian dairy industry through engagement to promote innovation, skills and sustainability.

In pursuit of this goal, WestVic Dairy has refreshed its three-year strategic plan.

We are firmly committed to supporting

The latest data tells us the region’s farmers are currently in a positive frame of mind regarding their farm business and the industry as a whole. farmers with a focus on the strategic priorities of: resilient dairy farms; attracting and developing great people for dairy; strategic, positive and proactive communication and engagement; and promoting a trusted and valued dairy industry.

The staff team continue to run lots of extension activities throughout the region, with the aim of better understanding and meeting farmers’ needs.

You can find out more about these events and workshops by checking out our website, subscribing to our fortnightly e-news or following us on social media.

An extension activity that I highly encourage everyone to attend is the Our Farm, Our Plan (OFOP) program.

OFOP is designed help you clarify your long-term goals and priorities and identify the

actions you need to take to get there. Farmers who participate in OFOP always say that they wish that they had done it sooner.

The next OFOP program begins on Wednesday, December 13 in Simpson with farm consultant Fiona Smith.

Our WestVic Dairy Board is comprised of a good mix of people from across the region, all with a passion to see the industry advance.

After five years serving on the WestVic Dairy Board, it is a privilege for me to now lead WestVic Dairy as the newly appointed chair.

I sincerely thank Jacqui Suares for the tremendous work she has done in the role over the past two years.

We aim to be responsive to the needs of all levy payers and the dairy farming community and seek your engagement and input on directions of business.

We are open at any time to talk to any farmer, so please contact me or the other directors if you wish to raise any issues or concerns, or would like to bring any great ideas forward.

With the end of the year fast approaching, I would like to wish everyone a safe and happy Christmas and new year with their friends and family.

Brendan Rea is the WestVic Dairy chair.

DairyGrip

Australian made the toughest rubber flooring on the market!

DairyGrip is an Australian Made rubber flooring product designed specifically for Dairies. DairyGrip has been installed in Dairies around the world for over 20 years. The tough easy to clean surface provides a comfortable slip resistant floor that cows feel confident to walk on.

10

DairyGrip is backed by a

Please contact us for detailed information +618 9410 0500 info@rubbergem.com www.rubbergem.com CNR Hope Valley Rd Henry St. NAVAL BASE WA 6165 | PO Box 70 Wattleup WA 6166

Year

warranty providing you peace of mind that you have purchased a fit for purpose product.

102856

Reinforced with high tensile steel cables to eliminate stretching Suitable for heavy vehicle traffic such as bobcats and tractors 100% recycled material Manufactured from high grade vulcanised rubber Can be installed on compacted road base or concrete Supplied in long rolls 20m to 150m

DAIRY NEWS AUSTRALIA DECEMBER 2023

4 // WEST VIC REGION

Finding the winning formula

BY RICK BAYNE

Matthew, Brendan, Ian and Dean Crabbe say their farm location just outside the Otways National Park is ideal for dairy.

The Crabbes agree they are in a good spot for farming, even though dairy farm numbers in the area have diminished from 10 to 12.

THE CRABBES at Gerangamete are proving that the family that farms together stays together.

Dad Ian and sons Brendan, Dean and Matthew have found a winning formula for long-term success and, apart from the addition of new land, not much has changed in the 71 years the farm has operated as a family business.

Their enterprise comprises two different farms with separate dairies and an outpaddock, all on the fringe of the Otway National Park where they enjoy the region’s regular rainfall.

A fourth son Stuart works nearby on another farm and Ian’s brother Kevin also farmed in the region.

The current business was started by Ian’s parents Allan and Edna in 1952.

At the time it was just 100 hectares with an outpaddock, but it’s progressed over time to more than 360ha in total and they now milk about 370 mainly Holsteins in two separate herds.

In all their time of farming, they’ve never needed to call on workers from outside the family.

Ian owns the three lots of land and his three sons work for him, but they are looking at options for the future.

“It used to be just myself and my wife Bernadette and then we bought in Dean for a while until he got to about 20 and decided to leave the farm and get a job somewhere else,” Ian said.

Matthew came in on paid wages, Stuart also started on the farm before taking up another opportunity and Brendan also joined the business.

“We’re all in a share system,” Ian said.

“They’re not officially sharefarmers, but it’s getting close because I want to be able to retire.”

Ian hasn’t milked for about four years since Dean came back into the business.

He still oversees the business, but at 72 says that won’t continue for much longer.

“We’re looking at options, such as renting the land to the boys and letting them continue to farm how they want and reap the profits.”

All three brothers are keen to continue.

They agree that they are in a good spot for farming, even though dairy farm numbers in the area have diminished from 10 to 12 when the Crabbes started, to five today. A few have gone to beef and others have become bigger.

“I don’t know what makes it so good but it mostly stays green,” Ian said.

“We’re not far off the national park, but it’s not too hilly for the cows.”

The herd is divided into 130 on one farm, 240 on the other and the outpaddock is used for young stock and fodder.

“We mostly use home-grown feed and don’t buy much except for grain,” Ian said.

“We were even okay through the drought.”

Both farms have achieved milk quality awards over the years, including a silver plaque this year for the business known as IC and BF Crabbe (the other farm is simply I and B Crabbe).

“We don’t do too much extra,” Ian admits.

“We don’t herd test; we just keep an eye on them. We’ve got a healthy herd, nothing much goes wrong.”

Dean and Matthew milk on the larger farm which earned this year’s silver plaque.

The dairy was built in 1958 as an eight-aside walk in, later upgraded to a 10-a-side herringbone and later expanded to 20-a-side.

It has retained the same outside structure since 1958.

Ian admits he isn’t one for making big changes.

“I have stuck with the traditional ways of farming, though Dean, who had experience on other farms, brought home a few new ideas, not that I’m saying that’s a bad thing,” he said.

Dean’s influence has included more urea usage and some new animal health techniques.

For Sale Vetch Hay Cereal Hay Lupins Barley Wheat Grains

Freight options available The family mostly uses home-grown feed.

Phone: Alan Stopp 0418 831 908

95801

Email: stoppft@gmail.com Address: 1115 Martin Camp Road, Keith, SA, 5267

STOPP FAMILY TRUST

A few Belted Galloways, Bernadette’s favourites, can be found on the farm.

DAIRY NEWS AUSTRALIA DECEMBER 2023

WEST VIC REGION // 5

to share the farming load Ian left school at 15, working for $20 a month, and maintained an attitude that if you keep your head down and do the work, success will come your way.

The boys have tried to drag him to field days without success.

“I’ve never been to one — I just stay home and do my thing,” he said.

“I never went years ago and don’t need to today. I’m happy with what we’ve got and don’t need to change.”

They keep the herds separate, though if the vat is full on the larger farm, some cows will be trucked to farm two where Brendan milks in his 10-a-side swing over.

Cows on both farms achieve a good production average of about 30 litres. They also have a few Belted Galloway cows, Bernadette’s favourites.

Most years the farms get more than 700mm of rain, so they don’t need irrigation. Being too wet is usually more of a problem than being too dry.

“We’re going to try some summer crops this year,” Brendan said.

“Last year was too wet and we didn’t get any in.”

They normally make about 2500 silage bales every year and calve in autumn and July.

Despite their longevity, the family remains guarded about the industry’s future.

“It’s rocky,” Dean said.

“You never know what’s going to happen next year with the price of milk going up and down.”

Although the dairy just has the basics, the Crabbes have secured another silver milk quality award this year.

The Crabbes have stuck with Holsteins across their long farming journey.

Ian Crabbe says that the dairy built in 1958 but since upgraded internally continues to serve the farm’s needs.

END OF YEAR DEALS ON MAXXUM AND PUMA FLEXIBLE FINANCE, WARRANTY & SERVICING FOR 145 BOOSTED HORSEPOWER 40 KM/H WITH FEL, STD BUCKET

FROM $181,809 +GST*

FOR 190 BOOSTED HORSEPOWER 50 KM/H , PRO 700, ISOBUS CLASS III

WARRNAMBOOL 40 Caramut Road Warrnambool, 3280 (03) 5559 3300

COLAC 357 Princes Highway Colac West, 3250 (03) 5234 3500

ttmi.com.au

Finance available to approved ABN holders through CNH Industrial Capital based on a 25% deposit.

Offer ends 22/12/2023 or while stocks last. Pictures for illustrative purposes.

*

DAIRY NEWS AUSTRALIA DECEMBER 2023

6 // WEST VIC REGION

With a little help from their

BY RICK BAYNE

Peter and Marnie Kerr.

Farm business consultant Paul Groves, Peter and Marnie Kerr, and WestVic dairy extension team lead Libby Swayn during one of the Focus Farm meetings.

PETER AND Marnie Kerr spent 15 years thinking about how they’d get enough money to buy a farm, and when they did achieve that goal, the real challenges started.

“We probably didn’t put enough thought into what we’d do with it once we’d bought one,” Peter said.

But they had a solution — become a WestVic Dairy Focus Farm and learn from others.

“We thought a lot of people who had been in a similar situation to us could give us some good ideas on where to start,” Peter said.

“We had a lot of ideas of what we wanted to do, but the capital and budgets didn’t necessarily match up.”

Peter moved to the south-west from Melbourne when he was 16, and in 2014 he and Marnie started sharefarming for Gary and Dorothy Boyd at Bostocks Creek between Camperdown and Cobden.

They bought the property in 2021, also continuing the long-held leases of outpaddocks.

Nearing the end of their two-year stint as a focus farm, the Kerrs have made targeted but significant improvements, particularly in water infrastructure, feeding and staffing.

They are also working on a plan for a major investment in the dairy.

“We’ve got to be careful to have the right size for the infrastructure and not spend too much to milk the herd,” Peter said.

The farm was purchased on the basis of continuing to lease land, but Peter said upgrading the infrastructure remained a challenge.

Peter and Marnie applied to become a focus farm after completing Our Farm, Our Plan.

“We thought we’d be suitable as a young couple that had just bought a farm and we could get advice on what others would start with and what they would leave till later.”

The support group of about 30 farmers and service providers meets monthly over two years and is facilitated by consultant Paul Groves.

“There’s a good mix of older farmers who have been there and done it and young farmers in a similar situation to us or are still sharefarming,” Peter said.

“The idea is that we all learn from each other.”

Discussions have centred on priorities for infrastructure investment, with water emerging as number one.

“The water was struggling to keep up to the cows in summer so a lot said that was a no-brainer, just get it done,” Peter said.

“We are on town water which is quite expensive and the pressure wasn’t there to keep it up to the cows, so we put in a water tank and pressure pump and a bore is drilled and we’re just waiting to put a pump on it.

“Once it’s running with the majority of the water coming out of the bore, it will pay for itself within a year.

“Even this first year our production was up and we attribute some of that might to having more water.

“It’s ended the stress of worrying about the cows running out of water and having to shift them around.”

The farm peaked at milking 320 last year and the same again this year, although those numbers were only retained for about a month because of a shorter season.

“Stocking 320 is at the higher end of where we want to be so we reduced it a bit just in case the season doesn’t run our way,” Peter said.

“That extra cows weren’t giving as much milk as last year so it didn’t make sense to keep them.”

With children aged four and two and Marnie also working as a nurse and midwife, they want to focus on efficiencies.

“We started with the Focus Farm group to make some quick fixes without a big expense,” Peter said.

One suggestion adopted by the Kerrs is the introduction of big grain feeders.

“We were driving around feeding grain to two or three different mobs of calves every day, just putting it on the ground,” he said.

“One of the first things suggested was getting big grain feeders and filling them up so you only have to feed them once or twice a week. It wasn’t a big cost and there was less wastage so we’re really happy with that.”

Another early suggestion was employing more people, something Peter and Marnie resisted for 12 months.

“I was nervous about managing more staff.

We had one good full-time employee, but as your staff gets bigger, you need more management skills,” Peter said.

“After a year, we had some breathing room which gave us confidence that we could afford more wages, so we employed an English backpacker for the calving season when we’re really under the pump and he has been great.

“That has taken the pressure off. I was nervous about doing it, but now I don’t know that we could go back to only one staff member.

“The early signs are that he’s going to help us make more money than it costs us by getting things done right and on time.”

A constant topic of discussion has been the dairy.

A new dairy is on the cards — a 25-a-side-swingover to replace a nearly 30-yearold 17-swingover — but it’s a big expense and Peter and Marnie have to time it right.

“We’ve got it narrowed down to what we want to build, it’s just a matter of timing,” Peter said.

A new grain feeder has cut about 45 minutes from the daily workload over calving season.

DAIRY NEWS AUSTRALIA DECEMBER 2023

WEST VIC REGION // 7

farm friends “The cows don’t all fit in the yard, we’re still washing it down with a hose, it doesn’t have cup removers and the stall gates are worn out.

“We want to make things easier and less stressful but the dairy takes the most money to fix.”

There’s a monthly report on feed, grazing rotations and production.

“We’ve done tweaks rather than huge adjustments,” Peter said.

“Every month there’s discussion about the margin and whether there should be an extra kilo of grain or should we back the grain off.”

Last year’s production was up a long way and Peter and Marnie fed more concentrate because they felt the margin was there.

“We wanted to maximise the milk price. We were up 16 or 17 cows on the previous year and we got a bit more milk per cow, about 580kg/ Ms per cow, quite a big improvement on previous years,” he said.

Getting to the end of the focus farm period, Peter and Marnie are more confident in their farming.

“We always try to have big ears and listen to everyone and then make a decision,” Peter said.

“We’ve definitely got a better system because of it. We thought we had done a reasonable job, but it has taken us to another level and hopefully we can keep the good habits.

“There’s no growth in your comfort zone.

Let others in, listen to everyone and filter the advice for how it fits you.”

Improvements made since the farm’s purchase 2 New second-hand vacuum pump 2 New hot water service and wash water set-up 2 Advantage grain feeders, auger and bin 2 Troughs for almond hulls 2 New water tank and pump 2 Oil dispenser for dairy grain 2 New kitchen and tidy up bungalow for staff accommodation 2 Installed solar panels, power and lights in big calf shed 2 New effluent pond and gravel pad 2 Created new full-time farm hand position 2 New laneway to 30ha to add to milking area from outpaddock area 2 New cups, square liners in dairy and longer hoses for wash jetters.

Addressing summer water shortages was the first priority for Peter Kerr and a new water tank and pump has led to improved production.

Peter and Marnie would like a new dairy but realise the timing has to be right.

Planned improvements

2 Install solar bore pump and pipe to new tank plus some extra lines to connect whole farm up to tank 2 New stock water dam 2 New laneways to dairy 2 Rubber matting for dairy pit.

Improvements being considered

2 New dairy 2 Hard hose irrigator for effluent water 2 Pasture IO 2 Auto-steer for tractor 2 Installing calf pens on both sides of big shed 2 Improvements made to feed pad/could be included in new dairy works 2 Cow collars and auto draft 2 Multi-bale feed out cart 2 Rubber matting for dairy steps/cow platform 2 Disc grain mill.

HIGHEST MILK PRICE IN 17 YEARS

By GEOFF ADAMS Despite a wet spring hampering hay making, the south-west of Victoria enjoyed higher average returns and the highest milk price in 17 years, according to the annual Dairy Farm Monitor Project.

However, total costs were also the highest in 17 years, with feed costs growing by about 30 per cent.

Managing tricky wet conditions left many farms feeling tired by the end of the year and their sentiments dampened the exuberance of the strong financial performance.

Incomes on south-west Victorian participant farms were the highest in 15 years ($/kg MS), accounting for inflation.

The record-high milk price in 202223 (highest in 17-year history of DFM) underpinned the high incomes.

A bearish cattle market reduced livestock trading profit relative to 202122. Some farms benefited from good prices for export heifer sales earlier in the financial year.

Almost all variable cost categories increased in 2022-23 as farmers managed wet conditions and inflationary pressures (a $0.66/kg MS increase from 2021-22).

Higher purchased feed costs were the greatest contributor to the higher variable costs.

The cost of concentrates increased as farmers paid a higher unit price but kept feeding levels the same.

Farmers relied less on purchased hay and silage, as there were improved seasonal conditions for pasture grazing, and

silage was also cheaper per unit.

The amount of fertiliser applied remained relatively similar between years but was more expensive (per unit and application costs), therefore total expenditure increased. Irrigation costs decreased as irrigators used less or zero water.

The very wet spring 2022 conditions hampered fodder conservation.

Bogging of harvesting and baling equipment was a common occurrence for many in the wet conditions.

Most farms conserved less feed than the previous year (14 of the same 24 participating farms). By the end of the financial year, farmers had lower feed inventories on average.

Return on total assets and equity were strong in 2022-23.

An improved profit performance and a modest increase in asset values saw average returns on assets rise to a level not seen since 2013-14.

Higher asset values over the year were common among participants with all but three increasing their total assets under management.

Aided by strong cash flows, many (20 of the 25 farms) made capital purchases for land, buildings, irrigation or milking equipment.

The Dairy Farm Monitor Project is a collaboration between Agriculture Victoria and Dairy Australia.

Now in its 17th year, the project provides industry and government with farm-level data to inform targeted strategy and decision making.

WiSA - Proudly Australian owned & manufactured for 28 years

FARM & IRRIGATION AUTOMATION EXPERTS

Smarter irrigation for your farm The farm peaked at milking 320 last year and the same again this year.

• WiSA’s automated irrigation system can deliver water when required and on time • WiSA’s wireless solution means you have total control from your mobile phone or computer • WiSA improves water use efficiency and can reduce labour costs • WiSA’s automated irrigation system can improve the sustainability of your dairy farm, vineyard, orchards, and fields

About 30 farmers and service providers are part of the Focus Farm group.

Phone: 1300 887 380 Email: sales@irrigatewisa.com.au Web: www.irrigatewisa.com.au

88612

Contact us:

DAIRY NEWS AUSTRALIA DECEMBER 2023

8 // WEST VIC REGION

Dairy dream is now reality OLEKSANDR (ALEX) Lysov feared a job

offer on an Australian dairy farm may have been a scam, but it ended up changing his life.

The Ukrainian native had been looking for opportunities in Canada and hadn’t considered Australia until he saw an online advertisement.

“It isn’t easy going through recruitment agencies when trying to work overseas,” he said.

“One day I was looking on a Ukrainian job search website and saw the ad for an Australian farm.

“I thought it was a joke, some kind of a scam, but I applied and after two weeks did an interview, got a visa and came to Australia.”

That was in late 2018 and today Mr Lysov and his wife Oksana have been granted Australian residency and will apply for citizenship early next year.

After learning the practical side of the dairy industry, he is now being supported by a DemoDAIRY Foundation scholarship to study a Certificate IV in accounting and bookkeeping at South West TAFE to boost his knowledge of the business side of farming.

Alex grew up in Ukraine and has a Master Degree in Mechanical Engineering in Agriculture, although that is not recognised in Australia.

While a student, he worked in Great Britain picking peas and beans and after university moved to Denmark where he had his first experience working on a dairy farm.

“I grew up in a city similar to Geelong with

Oleksandr (Alex) Lysov.

no connection to dairy farming, but I really like to work with animals,” Alex said.

I didn’t know anything about cows when I started but I learnt everything by practice and from reading to get some of the theory behind it because I found it so interesting.

“It’s very rewarding to work in the food industry.”

He later worked as a field services adviser with a big dairy processor Danone in Ukraine before moving to the United States to work on a cropping farm, mainly to get practice working on tractors and in the fields.

After that he returned to Ukraine and tried

to find a suitable job. He had an option as an advisor, but at the same time found an opportunity on a farm owned by Midfield Meat in south-west Victoria.

After overcoming his initial scepticism, he worked at the Woolsthorpe farm for four years and was promoted to second-in-charge.

“It was a very good experience for me,” he said.

“I got my residency and could choose something else, but decided to stay in the dairy industry.

“When I got my residency, I decided to study as I felt it would help me to find a better job.

“I wanted to build my knowledge about budgets and the economic side of the farm. I can do all the practical work, but I wanted to know how to do the budgets.”

Alex now works with Saputo in a similar field services officer role as he performed in his home country.

He plans to study an accounting diploma next year and hopes to continue on to a bachelor degree, possibly in commerce.

His long-term goal is to be a financial adviser for dairy farms.

Alex, 36, has fallen in love with the Warrnambool region — which is a far cry from his preconceived idea of Australia as a hot, desert country.

The DemoDAIRY Foundation scholarship has made studying much easier.

“When I started, I had to study with my old laptop in my bedroom. I didn’t have a desk or anything,” he said.

“Now we’ve rented a house with a spare room and the scholarship enabled me to buy a desk, chair and a new laptop.

“I can now shut the door and concentrate, so it’s much easier to study.”

He has also retained some of the scholarship money to spend next year during his diploma.

2 Applications for the DemoDAIRY Foundation’s 2024 scholarships have now closed.

But for more information, visit: https://www. demodairy.com.au/application/ or contact DDF secretary Ian Teese on 0427 358987 or email itag@bigpond.com

Delivering for dairy farmers Dairy Australia’s role is to provide services that benefit and advance dairy farm businesses and the industry.

These services deliver value by: • Enhancing farm business management.

• Supporting employment and people development.

• Driving herd and feed innovation.

• Managing climate and environment.

• Promoting Australian dairy and the commitment to sustainability.

• Supporting international dairy markets.

• Contributing to policy development.

• Responding to critical issues and events.

Visit dairyaustralia.com.au

© Dairy Australia Limited 2023. All rights reserved.