Dairy News Australia - April 2018 - With West Vic Region

APRIL, 2018 ISSUE 90

WEST VIC REGION

Ben and Anna Kenna in front of their maize crop.

Next generation of farmers RICK BAYNE

BEN AND Anna Kenna are proof you don’t need to start your farm ownership dream with high equity.

The Kennas didn’t want to wait until they were in their 50s to buy a farm and, despite

• • • • • •

some initial reservations from their bank, they are happy they have taken the plunge.

Now aged 39 and 35, Ben and Anna have three years of farm ownership behind them and their equity situation is already on the rise. It started around 20 per cent and 18 months ago stood at 27 per cent; today it’s 42 per cent.

As a WestVic Dairy Focus Farm, the Kennas

have been dedicated to making decisions that improve profitability. The Focus Farm group has been a great help, with support and ideas They started sharefarming on land near Terang in 2002 for Anna’s parents Kevin and Therese Moloney. Ben’s parents Bernie and Denise owned the herd at that time, but the young couple entered a lease-purchase deal

about 10 years ago, paying off the cows over eight years.

They purchased the 305 ha farm about three years ago. They milk mostly Friesians, with the herd reaching 570, up from 534 the previous years. Depending on price and seasonal conditions, the numbers could go a bit higher.

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DAIRY NEWS AUSTRALIA APRIL 2018

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Chair’s message

Region will rise from the ashes THE SOUTH-WEST Victorian region was hit

hard by bushfires last month and the devastation left behind will carry on for quite a while.

The industry as a whole has come together and has been working collaboratively to provide farmers with the support they need to overcome this disaster.

The Industry Leadership Group, which was formed after the milk price downturn in 2016, very quickly sprang into action after the fires and developed a co-ordinated response in order to get the best outcome for our farmers.

This is a hard hit, and even those not affected by the fires, many are still dealing with difficult

times or are working hard to get in a better position.

That’s why, as a board, we have made it a real focus to ensure farm business management and people in the workforce are key areas. We offer many extension events that focus on these and also seek out those farmers that are doing it really well and offer them as case studies to learn from.

While it is a challenging industry to be part of at times, it is also a wonderful one and each year we celebrate the people in it with our Great South West Dairy Awards.

The gala presentation night will be held in the

coming weeks, and the Farm Photo and Honour Board categories are still open for nominations until April 24.

Please come and help us celebrate our industry and the great people in it. I’m not naive about how hard some days can feel, but it’s so important we get together and support what we are good at — we deserve a night out of fun.

It’s important to me that every farmer knows that we at WestVic Dairy are here to support you and assist wherever we can. If you haven’t come to one of our extension days before come along — it will be worth it.

We are all in our industry together, good and

bad days and yes, it is your levy, so make it work for you!

We are currently in the planning stage for setting priorities and programs for 2018–19. We will be reviewing our strategy, as we are part way through a three-year plan.

Please have your say — contact me or a board director as we are always happy to hear from you.

Our details are on our new WestVic website at: www.westvicdairy.com.au • Simone Renyard WestVic Dairy chair

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DAIRY NEWS AUSTRALIA APRIL 2018

WEST VIC REGION // 3

The fires devastated the region, with many dairy farms losing some or all of their herd. Picture: AAP Image/David Crosling.

Farms devastated by fires WESTVIC DAIRY has appointed a dairy farm

recovery co-ordinator to help manage the industry’s recovery after last month’s bushfires.

Warrnambool local Helen Chenoweth will be working from the Camperdown office for the next three months.

The position was created to liaise with farmers, industry bodies and community organisations to facilitate the recovery of dairy farms affected by the fires.

The dairy farm recovery co-ordinator will also support the Industry Leadership Group in its efforts to co-ordinate the recovery by taking action and following up on issues identified by the group.

Mrs Chenoweth has been a dairy extension officer with Agriculture Victoria for more than 30 years, specialising in soils/fertiliser management and farm business management. After some private consulting work and more recently working in the banking sector, she is pleased to join West-

Vic Dairy in the fire recovery role.

Mrs Chenoweth was also involved in supporting farmers after the 1983 Ash Wednesday fires by assisting fodder distribution at The Sisters Centre.

“It was an intense time after the Ash Wednesday fires, but it felt satisfying to help those in need,” she said.

WestVic Dairy regional manager Lindsay Ferguson said Mrs Chenoweth was very experienced and well respected in the industry.

“Helen has been a part of the regional dairy industry for many years and has made many important connections in that time that will help her in this role,” Mr Ferguson said.

Industry Leadership Group chair Catherine Jenkins said the role was an important part of making sure the industry response to the fires was co-ordinated and efficient.

“We want to make sure we can give farmers that need support as much assistance as possi-

ble,” Mrs Jenkins said.

“There is lots of support out there, but we need to make sure it gets to the people on the ground. We are hoping we can do that again in an attempt to minimise impacts.”

Mrs Chenoweth can be contacted at WestVic Dairy by phone on 5557 1000 or email at: helen@ westvicdairy.com.au A total of 26 homes and thousands of head of livestock were destroyed by the fires that started on March 17.

More than 600 cattle and 3000 sheep, as well as more than 63 dairy and machinery sheds, were lost in the blazes around the main farming communities of Terang, Cobden, Penshurst and Camperdown.

VFF president Adam Jenkins said farmers had taken a massive hit.

“You lose one cow that is a big financial impact. So to lose half your herd or a full herd, massive impact and multiple farms are really

finding a big impact,” Mr Jenkins said.

“It is a huge financial impact on the livestock and obviously their farms and their mental health and wellbeing.

“Farmers dust themselves off, they go into resilient mode and make sure their cows and livestock are looked after well and truly.’’

Donations came from across the state to replace hay and fodder that was lost in the fire.

Picture: AAP Image/David Crosling.

Challenging times ahead DAIRY AUSTRALIA’S February Situation and

Outlook report points to farmers finishing this season in better shape than last year, but warns increased Northern Hemisphere milk production could mean challenging times ahead.

Dairy Australia senior industry analyst John Droppert said European year-on-year production growth had hit six per cent, prompting a deterioration in market sentiment. Production in the United States was up 1.4 per cent in the year to December.

“Prices are steady-to-higher but the reality of Northern Hemisphere expansion cannot be ignored and the fundamentals point to downward pressure on milk prices in southern regions

in the coming months,” Mr Droppert said.

“The size of Europe’s dairy herd has begun to fall so that is a good sign that the growth spurt we’re seeing should soon moderate.”

Mr Droppert said a decline in New Zealand milk production had limited the impact of increased supply on commodity prices, as had double digit growth in Chinese and Japanese imports.

New Zealand farmers were hit by an extremely dry summer and the impact of some welcome January rain was likely to be offset by lower feed surpluses.

As predicted in the October Situation and Outlook report, Australian milk production

growth was driven largely by the southern export-focused dairy regions of Victoria, Tasmania, South Australia and southern NSW. Domestic-focused regions saw milk production fall over the same period, particularly northern NSW (three per cent down) and Queensland (five per cent down). Dry conditions in those regions added to the challenge of flat or lower domestic milk prices. Milder weather in Western Australia saw production remain stable.

The Australian domestic market remained stable, with volume growth continuing in most major dairy categories. Sales value growth remained strong, with the exception of cheese, where retail prices remained under pressure.

Mr Droppert said a number of processors had demonstrated confidence in the industry’s longterm prospects, recently announcing plans to significantly boost processing capacity.

“The challenge for those processors will be in how they support and grow a profitable milk supply base to realise the potential of their manufacturing footprints while their competitors battle to retain their existing supply base,” he said.

“Amidst the contrasting short and mediumterm market signals, any inducement to produce more milk or retain existing suppliers will need to account for risks that remain in the global market.”

DAIRY NEWS AUSTRALIA APRIL 2018

4 // WEST VIC REGION

Dairy farm goes back to school RICK BAYNE

WHEN SCHOOL students started questioning

Troy Peterken’s description of how milk is made, he knew it was time to do something about it.

“We’ve had some kids say ‘no, mum gets our milk from the supermarket’,” Mr Peterken, who runs Inglenook Dairy near Ballarat with his wife Rachael, recalls.

Some city-based students might dispute his story of grass, cows, farms and milk when they hear it in the classroom, but this lack of knowledge about dairy farming has prompted Inglenook Dairy to introduce its own education program.

Inglenook Dairy has started hosting school

“When we started we didn’t know anything about pasteurisation or marketing; we were just hard workers.” tours, giving students first-hand experience of how farmers and their cows turn grass into milk and then process it for drinking.

With a new dairy museum and a niche milking facility to complement an existing processing plant, students can see the whole food chain from the cow to the cup.

“We already go out to schools to educate them about the dairy industry and processing.

There’s huge demand for that but they wanted to come here and see how it’s done,” Mr Peterken said.

“There aren’t as many farms as there used to be so there aren’t as many kids coming from a farming background or able to access farms. We want kids to understand where their food comes from and why it’s good to support small processors and local communities.

“Kids are getting a bit detached from farm life but they love this sort of stuff when they get the chance.”

Already one Melbourne private school has booked four visits per year and others are adding the farm trip to their curriculum.

The education program is mainly aimed at

The museum.

The processing plant.

Dunnstown dairy farmer Troy Peterken is an advocate for fresh milk.

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DAIRY NEWS AUSTRALIA APRIL 2018

WEST VIC REGION // 5

Employee Rick Glenane.

The Inglenook Dairy range.

primary-age children, although Mr Peterken said the more scientific side to processing also appealed to secondary school students.

Inglenook Dairy has been processing for five years. The idea to build the processing plant at Dunnstown, just out of Ballarat, arose out of concerns about low milk prices.

Troy is from a trade background, but Rachael and her parents, Basil and Sheila Britt, had a dairy farm with a century of local history.

“We were sitting around the table one night saying the milk price wasn’t good enough,” Mr Peterken said.

“I piped up and said let’s build a milk processing factory and get a better price for local farmers.”

He admits the workload was incredible.

“When we started we didn’t know anything about pasteurisation or marketing; we were just hard workers. We took two years to build the factory.”

Despite the tough process, they remained

• • • • •

The niche milking facility, designed to show visitors and students how cows are milked.

Outside of the milking facility.

Troy Peterken inside his dairy museum.

confident they had a good product to sell.

“Everyone commented on the quality of Rachael’s parents’ milk; they could tell the difference between farm milk and supermarket milk,” Mr Peterken said.

“We had a massive belief that if the pasteurisation process didn’t alter the taste we’d have a product unlike anything else on the market.”

While they were building the factory — mostly completed by the extended family — the $1 a litre milk price war sent a scare through the camp.

“We were worried that might hit us but we believed in the product and that it’s what people want,” Mr Peterken said.

Their equipment goes back to the early days of pasteurisation and the process is kept simple, trying to tamper as little as possible with the natural taste and colour.

They are now processing 22, 000 to 25 ,000 litres a week, but at full capacity they could do 60 ,000 to 70,000 litres.

The plant mainly serves small greengrocers

and coffee shops. Mr Peterken said the “workability” of the milk was its main appeal.

“Our milk quality doesn’t deteriorate during summer,” he said.

“We get feedback from baristas that they can’t foam supermarket milk and it splits. The coffee scene is a huge market and they realise they need good quality milk.

“Those coffee shop owners have invested a lot of money in their cafes, just like our small business, so they’re willing to pay more for premium milk knowing they will get consistency through the whole year and their business doesn’t suffer.”

Inglenook Dairy is sourcing milk from local farmers and paying a better farm gate price, which was the main reason for starting the business. They use predominantly Friesian herds, with a sprinkle of Jerseys.

“We do a lot of researching and testing the milk to make sure the workability is right. The Friesians provide constant quality and the fat

and protein ratios are really good,” Mr Peterken said.

At the dairy education centre, the school tours will see a seven-minute video that tracks the arrival of cows on the farm (six cows were driven from Colac by Rachael’s grandparents after their house burnt down) to the development of the processing facility and functional dairy.

The museum features a cream separator demonstration showing how an old hand machine could produce two litres an hour compared to today’s machinery capable of processing 4000 litres an hour, along with other equipment and memorabilia, including some off the original farm and some sourced from clearing sales.

The education precinct is the first of three planned stages of redevelopment, with future plans for a cheese house — taking advantage of the milk obtained on site — and later a café/restaurant.

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DAIRY NEWS AUSTRALIA APRIL 2018

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RURAL RUMENATIONS RURAL RUMENATIONS with Katie MacAulaywith Katie MacAuley

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

You know you’re a farmer, when …

A CITY-BASED friend of mine recently commented that farmers are a special mob. After a lifetime of interacting with farmers, I knew exactly which characteristics she was talking about.

Here are my observations. If you agree with the majority of these statements, you’re a farmer: You don’t talk about the weather to be polite but because you think it’s important.

You follow the weather forecast the way most people follow sport.

You can run through a pugged-up paddock in gumboots without twisting an ankle.

7 am is a sleep in.

‘You reap what you sow’ is not a figure of speech.

Photos are not the first thing you feel like shooting when you see a mob of kangaroos in a recently sown rye-grass paddock.

You still wear the same suit to weddings that you bought when you reached adulthood.

You own 13 beanies but only one tie.

You can’t understand why wedding parties want to pose in front of a dilapidated, rusty shed when there’s a new Colorbond one nearby.

Ditto patches of yellow flowers (ragwort) or purple flowers (Paterson’s curse).

You fall asleep at wedding receptions. After all, you got up even earlier than the bride,

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despite the fact that you don’t do hair and makeup.

You don’t wear a wedding ring to work because you know they are dangerous.

While the rest of the antenatal class turns pale watching the educational video, you shrug.

“What? Cows do it all the time. Only difference is the number of legs.”

You offer breastfeeding advice based on your experience in the dairy (and sometimes it’s actually helpful!).

You plan holidays around when your herd is dry, not around ‘Holiday Deal of the Day’.

You think blackberries are for spraying, not picking (although you won’t say no to a home-

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made blackberry and apple pie).

When everyone else heads for the beach, you head to the dairy.

You want to spray a paddock whenever there are sheets drying on the clothesline.

You regularly service your vehicles but you don’t have time to visit the doctor for a checkup.

You’re too busy to chat but as soon as you see another farmer, you talk for an hour.

You never ever give up — whether it’s milking cows while sick with a bug that would wipe out a mere mortal or trying to persuade your spouse you need a new tractor.

in-10 dairy farmers still dock cows’ tails has prompted renewed calls for farmers to eradicate the practice altogether.

While the latest Dairy Australia Animal Husbandry Survey found 91 per cent of dairy farmers had stopped docking tails, it still occurs on some farms, mainly in the higher rainfall areas of western Victoria, Gippsland and Tasmania.

The Australian Animal Welfare Standards and Guidelines for Cattle only allow tail docking of cattle under veterinary advice to treat a tail injury or disease. Compliance with these guidelines is dairy industry policy.

Australian Dairy Farmers’ Animal Health and Welfare Policy Advisory Group chair Andrew Lester said he had not experienced any problems since ceasing tail docking at his Tasmanian dairy farm 12 years ago.

“We did grapple with how we would manage mastitis and dirty udders and those sorts of things but mastitis levels haven’t been elevated beyond what we had before we stopped docking,” Mr Lester said.

“We also had concerns about the operator issue of being flicked in the eye with a tail, but we’ve never had any damage from it.”

Mr Lester said ceasing the practice altogether would be a positive step for the welfare of Australia’s dairy herd.

“The tail is obviously something they need to defend themselves against insects.

It’s a comfort thing for them and it’s probably why they have a tail in the first place,” he said.

“Two or three times a year we have an extra person in the dairy to trim the dirty and long tails so there is a cost but, when you take into account animal welfare and public perception, I think the benefits definitely outweigh that cost.”

Dairy Australia’s animal health and welfare policy manager Susannah Tymms said tail docking in the dairy industry was largely based on habits, attitudes and tradition, rather than good science or real need.

“Farmers who have given the practice away discover that cows with full tails are just as easy to manage as those without,” Ms Tymms said.

“Switch trimming is one alternative, with excess tail hair trimmed once or twice per year to minimise the problem of dirty tails.

“Other strategies to manage cows without tail docking include calm, consistent milking practices, good dairy design, fly control and the use of tail clips.”

For more information on managing cows’ tails, go to: www.dairyaustralia.com.au/ switchtrimming

DAIRY NEWS AUSTRALIA APRIL 2018

WEST VIC REGION // 7

Tour inspires young farmers THE WESTVIC Dairy Young Dairy Network

sponsored two young western Victorian dairy farmers to attend the Don Campbell Memorial Study Tour in Tasmania last month.

Curdievale’s Sarah Troisi and Cooriemungle’s Jorge Massa joined the annual tour to northern Tasmania from March 12 to 16.

Ms Troisi, who worked on a dairy farm on King Island before joining a dairy farm in Curdievale, said she wanted to go on the tour to see different types of dairies and systems.

The Don Campbell Memorial Tour is a five-

day tour of the northern Tasmanian dairy industry by a group of 10 to 14 young farmers.

The late Don Campbell was a dairy farmer from Yannathan in Gippsland and the first chair of the GippsDairy board. He was passionate about the development of young people within the dairy industry.

In 1998, GippsDairy organised a study tour of the Tasmanian dairy industry and soon after, Mr Campbell was killed in a vehicle accident.

GippsDairy renamed the tour the Don Campbell Memorial Tour to honour Mr Campbell and

the lasting contribution he made to the dairy industry.

This tour is about giving young dairy farmers the opportunity to tour the northern dairy belt of Tasmania and to help them develop on a professional and personal level. With Mr Campbell’s inspiration, GippsDairy has continued to develop and offer the tour to young farmers on an annual basis.

This year’s tour included a visit to Jason Chilcott’s robotic dairy in Meander and to Ringarooma, the current Legendairy Capital

of Australia.

Ms Troisi said it was great to be able to see the different styles of dairies and how people optimised their farms.

“I learned a lot by networking with other farmers and picking their brains about processes and procedures that can be adapted to the farm I am working on,” she said.

“Seeing how other farmers do things is very helpful and I’m very grateful that the WestVic Dairy YDN enabled me to go on this trip.”

MORE A2 MILK TO FLOW Fonterra and The a2 Milk Company (a2MC) are set to join forces, announcing plans to link Fonterra’s global milk pool and supply chain with a2MC’s brand strength to create more business opportunities.

As part of the agreement, Fonterra will now contact farmers about sourcing an A2 milk pool for products in Australia, with a similar milk pool to be developed in New Zealand with a view towards exporting to South-East Asia and the Middle East.

Announcing the deal on February 21, Fonterra chief executive officer Theo Spierings and a2MC managing director and chief executive officer Geoffrey Babidge said the partnership was designed to generate returns for both companies by growing demand in local and international markets of A2 products.

“The partnership is intended to fast-track market growth and this creates opportunity for our farmers to create additional value from their milk,”

Mr Spierings said.

“We continue to see a strong future for dairy based on our existing range of products, including recent additions such as organic, low-lactose and high-protein milk choices that consumers seek out for a premium.

“Consumers like to have choices and the growth of a2MC-branded nutritional powders and fresh milk sales in Australia, for example, shows the potential. This partnership is all about finding ways to

continue to delight our consumers and generate more value for our farmers.”

Fonterra will also exclusively supply nutritional milk powder products in bulk and consumer packaged size for sale in a2MC’s priority markets and explore potential for a2MC-branded cheese and butter in Australia, New Zealand and China.

A jointly owned packaging facility will also be explored as an extension of the arrangements to cater for growth.

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DAIRY NEWS AUSTRALIA APRIL 2018

8 // WEST VIC REGION

Farmer confidence is down VICTORIAN FARMER confidence levels have dropped to the lowest level since 2015, a new survey reveals, with dairy among those taking the biggest confidence hit.

Rabobank’s latest Rural Confidence Survey has found that uncertainty remains prominent across the industry, despite a two-year run of positive sentiment.

Commodity prices were cited by 61 per cent of the Victorian farmers surveyed as a key reason they expected conditions to worsen.

However, the prices were mainly a worry for those in dairy, with prices raised as a concerning factor for 78 per cent of dairy farmers.

Rabobank regional manager for southern Victoria and Tasmania, Hamish McAlpin, said despite seasonal uncertainty, the longterm fundamentals for agriculture remained unshaken.

Completed in February, the survey found there were more Victorian farmers expecting

the industry to get worse in the next 12 months than get better.

More than one in five farmers now hold a negative view, up from 10 per cent last quarter.

However, 55 per cent of those surveyed anticipate similar conditions to last year.

“Now farmers are wondering what’s around the corner as they hope for good autumn rains to set them up for winter and the upcoming cropping program,” Mr McAlpin said.

“While it is still early in the season and there is a bit of time yet with the average break in late April, this year’s outlook all really hinges on when, and how much rain, falls in the rain gauge during autumn.”

He said while there was increased competition locally for milk, the dairy industry continued to face pressure from global markets that were leading to a depressed world outlook for prices, feeding uncertainty surrounding local farm gate milk prices in 2018–19.

Southwest Dairy Services

Recognising the best and brightest THE GREAT South West Dairy Awards have once again set out to celebrate the dairy industry in south-west Victoria.

More than 100 nominations have been received so far, with nominations for the Farm Photo and Industry Honour Board open until April 24.

The award winners will be announced at an upcoming gala night.

Now in their 13th year, the awards have become the highlight of the dairy calendar and recognise the people that make the industry great.

WestVic Dairy regional manager Lindsay Ferguson said the awards were always a fantastic event to attend and spend the evening with likeminded people.

“There are so many people in our industry that go ‘above and beyond’ and it is important to recognise those in a formal way,” Mr Ferguson said.

“The fact that we received so many nominations highlights that there is a lot of positivity in our industry.

This year, the awards introduced a new category — the Service Provider Award.

The Service Provider Award recognises those

who: show excellence in providing services to farmers; develop the capabilities of people within the industry; exhibit passion and commitment to enhance the reputation of the dairy industry; and show active involvement in the local community, as well as the wider industry.

Mr Ferguson said the new award was designed to acknowledge those in the industry who provide the highest level of service.

“The dairy industry is a vital part of the regional economy and service providers play an integral part in making sure it remains profitable and sustainable,” he said.

The other award categories for 2018 are: ■ Dairy Farm Business Management Award ■ Dairy Employer Award ■ Dairy Employee Award ■ Sharefarmer Award ■ Young Dairy Leader Award ■ Natural Resource Management Award ■ Farm Photo Award ■ Dairy Industry Honour Board Induction For more information about the awards or to inquire about tickets, phone the WestVic Dairy office on 5557 1000 or email: awards@westvicdairy.com.au

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WEST VIC REGION // 9

Good planning aids fire recovery RECOVERING AFTER fires can be challenging, but with good planning and preparation comes better recovery.

Factors to consider for a swift return to business include stock management, fencing and land and pasture management.

Fixing fences and feeding livestock It is important to consider how you are going to keep animals fed and watered in the mediumterm. It is a good idea to seek help in this situation with feed budgets, cash flow and the return of the property to productivity.

If needing to re-fence, use it as an opportunity to decide about redesigning paddocks, laneways and quarantine or stock introduction areas.

Bringing in fodder brings with it risks of introducing weeds, pests and chemical contaminants or residues.

Ask for a Commodity Vendor Declaration and feed out in narrow and well-defined areas so it is easier to monitor emergence and control weeds after the autumn break.

Feeding to keep animals alive will follow the same procedure as you would in a drought feeding situation.

Using containment areas or sacrifice paddocks is important to allow for recovery, control of weeds and management of animals during the time pastures and farm infrastructure is returned to something approaching normal.

Water

Agistment

Pasture and crop recovery

It is important to supply water of sufficient quality and quantity in the immediate and longer-term after a fire.

Dams can become heavily polluted after fire when rain causes excessive run-off of ash and other organic matter. You can reduce this risk with sediment fencing.

Agistment can be a convenient solution to overcome short to medium term feed deficits.

It is important to consider any biosecurity risk and have a clear understanding and written agreements on responsibilities for care, feeding and return of stock with the landowner before moving stock.

The recovery of fire-affected pastures will depend on a number of factors: type of pasture, stage of growth, follow-up rain and heat of the fire.

It is important to assess this reasonably accurately to allow decisions on whether to re-sow or not. Seek help from an agronomist where needed.

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DAIRY NEWS AUSTRALIA APRIL 2018

10 // WEST VIC REGION

Youth no barrier to success < Continued from page 1

Becoming a Focus Farm presented a two-way opportunity for the Kennas — they could learn from fellow farmers and also share some of their successes.

They were particularly keen to improve understanding of their operational costs “Because we only purchased the farm fairly recently, we had a reasonable amount of debt.

Part of it was to show people it’s achievable with a low equity start,” Mr Kenna said.

Debt consolidation is now their primary aim and every decision aims to maximise profitability.

They are pleased with the substantial growth in their equity, though they realise favourable conditions won’t always prevail and the current rate of improvement might not be sustained.

They knew they had to buy the farm at market rates but didn’t want to wait too long.

“The bank had said we could look at it in five years but we were keen to do it sooner rather than later,” Mr Kenna said.

“We didn’t want to wait til we’re 50. We wanted to put our best foot forward now.”

Consultant John Mulvany reviewed the farm figures and gave them confidence to press ahead with the purchase.

“His presentation allowed the banks to take it more seriously,” Mrs Kenna said.

Ben and Anna Kenna with their three-year-old, 60-unit rotary dairy.

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The 60-unit rotary dairy was only three years old, meaning the farm purchase would be their only major investment. The dairy also features a nearby feed pad, split into two sections that can be used separately by the milking herd or calving cows.

The Focus Farm has helped the Kennas to fine tune their expenditure, and to introduce some new technology.

“Because we can closely monitor the farm activities and our expenditure, we can see where we’re going well or where we might need to fine tune a few things. We found we were doing pretty well,” Mrs Kenna said.

Cost of production remains quite good at $3.67/kg/MS, lower than most similar farms.

One of the main focuses has been on herd fertility. The Kennas have installed a heat activity system that has delivered a five per cent improvement in their empty rate and a seven per cent improvement in their six week in-calf rate.

“We had been thinking about it for a while but we had the advantage of the group facilitator, Angus Drummond, being able to crunch the numbers for us,” Mrs Kenna said.

The facilitator found that if they got two more cows in calf every year they would pay for the system over seven years, while also eliminating other costs and creating significant labour savings. In the first year there were close to 30

more cows in calf.

Someone in the Focus Farm group had the same Cow Manager system installed and was able to give an insight into how it worked. Since then four members of the group have installed the system.

This calving season they have added a third employee to ease workload pressure. The heifers start calving on April 1; the cows a few weeks later. For the past few years they have raised extra calves to sell on the export market.

Based on a suggestion from the group, the Kennas have introduced dryland maize for the first time. Despite the dry summer, it seems set to supply a reasonable harvest, following on from good crops from their traditional perennial pasture over the past two years. They achieve 8.8 tonne/DM and home-grown feed accounts for

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The Kenna farm.

The Kennas introduced dryland maize this year and look like achieving a strong harvest.

DAIRY NEWS AUSTRALIA APRIL 2018

WEST VIC REGION // 11

Ben and Anna Kenna.

The herd of 570 is predominantly Friesians.

The dairy features a nearby feed pad, split into two sections that can be used separately by the milking herd or calving cows.

more than 50 per cent of the total.

Production is strong. In the previous year they achieved 313, 573 kg/MS with 534 cows; this year they will achieve about 340,000 kg/MS with 570 cows while maintaining 587 kg/MS per cow.

Total farm income is $6.61/kg/MS and EBIT earnings are $2.63/kg/MS. The stocking rate has gone up from 2.1 to 2.25 per hectare, which Mr Kenna says is relatively high for a dryland farm but sustainable.

They send heifers away for agistment because they don’t have any support land; however, an out paddock is on their medium-term agenda.

The Kennas use contractors for all fodder conservation. “We don’t have much machinery; we only have two tractors, a silage wagon and a silage grab but that keeps repairs and mainte-

nance costs down and we can focus better on running and managing the farm,” Mrs Kenna said.

Another initiative over the past three years has been recycling effluent into compost. “It’s a sustainable practice which means we can re-use our effluent and save on fertiliser,” Mr Kenna said.

The Warrnambool Cheese and Butter suppliers, who have four children, say the Focus Farm process has given them more confidence and a bright outlook.

“We feel really supported in the whole process,” Mrs Kenna said.

“It gives us confidence that when we decide something it’s been discussed and reviewed and we’re comfortable with it.”

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DAIRY NEWS AUSTRALIA APRIL 2018

12 // WEST VIC REGION

Loving the best of both worlds RICK BAYNE

MICHAEL HAWKER likes having the best of

both worlds on his family farm north of Heywood in south-west Victoria.

His herd is a mix of Jersey and Holstein cows and crossbreeds, and he enjoys the benefits of both breeds.

When it comes to infrastructure and farming practices, Mr Hawker has a mix of new and old. On the one hand, the introduction of sexed semen and transition feeding has given the farm a major boost; on the other, he’s waiting to replace a dairy which is hitting retirement age.

The farm has been in growth mode over recent years, and the shift to sexed semen and transition feeding has helped facilitate big improvements.

This year the farm peaked at 730 cows, ranging from pure Holstein and pure Jersey to a cross between the two.

Mr Hawker, who farms with his parents Francis and Leanne and sisters Tennille and Kylie, expects to reduce numbers but improve quality.

“We snuck up because there were strong indications from processors that we would see four significant step-ups for the year, which hasn’t transpired at this stage and it doesn’t look promising,” he said.

“We’ve come back down a bit; 730 on this farm is probably pushing the limits, so we’re looking to take a more conservative approach.”

Mr Hawker hopes to maintain production this season by keeping the best cows. The emphasis during the growth phase was on improving breeding, using three rounds of sexed semen.

“We still use a bit of conventional semen that has been stored in the tank but everything we purchased for the past two or three years has been sexed semen.”

The move has been a success, improving incalf rates, timelines, herd health and production.

About eight years ago the Hawkers were calving for 10 months of the year; now they’re down to 12 weeks. This year the bull had only three weeks with the herd and managed to get 50 cows in calf.

“Previously it was long and drawn out process,” Mr Hawker said.

“We were trying to re-build numbers but now where we’re in a comfortable zone. We’ve got plenty of stock on hand and good numbers coming through.”

In the first year of using Ultrasex semen the conception rate improved.

“Once we got the results from the first trial we were going down the sexed semen path. The first year we were five per cent better on conception rate compared with conventional.

“It shouldn’t be that way according to the

Michael Hawker on his Heywood farm.

studies, but I could see we weren’t going to be worse off with conception rate by using sexed semen and we’ve gone up a couple of notches since then.”

There were a number of on-farm changes that paved the way for introducing sexed semen, particularly transition feeding.

“We’ve gone from basically feeding cows hay

to proper transition feed of pre-mix pellets and we’ve moved on from that now and we’re using a total mixed ration.

“The biggest change we’ve made was transition feeding. That’s had massive improvements with the flow-on effects of seasonal production and fertility. It opened up the ability to use sexed semen across the herd and I’m not sure we would

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WEST VIC REGION // 13

Michael Hawker’s herd is a mix of Jersey and Holstein cows and crossbreeds, and he enjoys the benefits of both breeds.

have done so well if we didn’t have the transition diet.”

The Hawkers tried a couple of products that didn’t suit the system and eventually landed on a Ridley pellet that worked. Last season they progressed to total mixed ration.

“I saw some potential benefits and it wasn’t going to cost a huge amount more and it worked quite well,” Mr Hawker said.

“It virtually eliminated health problems and last year we only had to assist 10 cows with calving, which was phenomenally good.

“We also went from bagging pellets into little troughs to a front-end loader bucket of the mix going straight into the feeders. It made

it an easier process.”

Mr Hawker is happy with the herd quality.

“We’re about to start seeing the fruits of good genetic breeding and being able to select our cows on traits rather than just trying to keep the numbers there to keep the milk flowing.”

The number one trait he looks for is profit.

“We like something that will give a good mix of litres and components, but probably components a bit more than total litres.

“We want a cow that’s going to do what we’re here to do — make money — and one that’s not going to give us headaches with lameness or poor udder health; a good all-round cow.”

The mixed herd offers many advantages.

“Generally we want a well-rounded cow that’s not too big. We’re trying to find larger-frame Jerseys to make it easier for them to compete at the feed pad.”

Although he hasn’t crunched the numbers on which cow is best on the farm, he likes maintaining the mixture.

“It’s a bit of a personal preference. I like both and it still works. Holsteins generally give more litres, the Jerseys generally better solids — so we have best of both worlds and both have strong points.”

It’s not a stud farm and while they like to breed nice cows, Mr Hawker doesn’t plan to start showing or registering the herds.

“We like to breed a nice herd; we don’t want cows that only give milk, they’ve got to look reasonable.”

Overall the mixed herd averages about 4.2 to 4.6 fat and protein ranges from 3.5 to 3.7.

“We’re happy with that but over time we’ll continue to make slight improvements as we improve the herd,” Mr Hawker said.

“We’ve kept the number of cows here because they made a margin; now we’re picking the cows that are going to make us the best margin.”

The milking area covers about 400 ha with mostly older perennial pastures that continue to be over-sown, with a small percentage renovated annually.

As a dryland farm they don’t do a lot of summer crops but do have maize, which provides a lot of feed and is relatively cheap.

“It is a bit risky but I haven’t yet seen a crop that didn’t grow from weather condi-

tions, although I’ve seen a paddock eaten by cockatoos.”

Mr Hawker’s top priority is a new dairy, but he’s playing a waiting game.

The 34-unit walk-through was last modified in 2001 with additional bails, but the main building “well and truly pre-dates me”, Mr Hawker said.

They milk about 450 cows in 90 minutes, but that’s with four labour units.

“I’d love a new dairy but that requires some nice milk prices for a while to get me over the line.

“A nice new rotary would save labour and time and allow me to feed cows on an ID feed basis, but the milk price crash wasn’t that long ago and it reminds you of the dangers of being too exposed.”

Michael Hawker is waiting to replace a dairy nearing retirement age

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Topics include - Farm employment from an employee’s perspective - Pathways into the industry - How to progress your career - Support available for employees

This event is sponsored by the Gardiner Dairy Foundation as part of the 2017 Great South West Dairy Awards Field Days.

WHEN: Friday 27th April 2018 TIME: 7pm for 7.30pm start WHERE: Simpson Football Club Lavers Hill - Cobden Road, Simpson RSVP to WestVic Dairy on (03) 5557 1000 or email amanda@westvicdairy.com.au

DAIRY NEWS AUSTRALIA APRIL 2018

14 // WEST VIC REGION

Quad bike safety a priority WORKSAFE HAS begun enforcement activi-

ties to help reduce the risks associated with quad bike rollovers.

Now, if a risk of rollover is identified during a workplace inspection and an employer has not taken reasonably practicable measures to control the risk, an improvement notice may be issued.

An assessment of what tasks the quad bike is used for and where it operates will be undertaken, to determine whether there is a risk of rollover.

Any employer who fails to comply with an improvement notice risks prosecution for breaching the Occupational Health and Safety Act. With enforcement activities starting, Victorian Finance Minister Robin Scott has called on farmers to take advantage of the $6 million quad bike rebate scheme, which is managed by the VFF in partnership with WorkSafe.

“WorkSafe enforcement activities are now under way. I urge farmers to take advantage of the quad bike rebate scheme to help keep themselves, their employees and their families safe,” Mr Scott said.

“Quad bikes are used in many workplaces and employers must make sure that reasonably practicable safety measures are in place. Nothing is

more important than workplace safety.”

So far, the quad bike rebate scheme has paid out almost $2.8 million to either fit suitable rollover protection devices on more than 1820 quad bikes or to help pay for more than 1235 appropriate vehicles, such as side by sides.

WorkSafe’s acting executive director of health and safety, Paul Fowler, said WorkSafe would continue to work with farmers and other workplaces in relation to the risks associated with quad bikes.

However, he emphasised that potential enforcement action was now a reality for those who did not put reasonably practicable safety measures in place.

“A WorkSafe enforcement notice may not be welcomed by some, but it is nothing compared to the trauma of dealing with a fatality or serious injury that may result if the risks associated with quad bike use are not fully addressed,” Mr Fowler said.

VFF president David Jochinke encouraged farmers to take advantage of the rebate, which is ongoing until September 2018.

To find out more and to apply for a quadbike rebate phone 1300 882 833 or visit www.bequadsafe.com.a

HOME-GROWN FEED SAVES TIME AND LABOUR FOR FARMERS who may traditionally buy

their feed from an external source rather than growing it on-farm, there’s one good reason for a change this winter, according to PGG Wrightson Seeds’ product development manager Allan Mudford.

He said home-grown pastures were often the most cost-effective production systems.

“If you’re buying in feed, it’s an extra input cost. Home-grown feed can save you time and labour, enabling you to invest that back into other areas, so that your farm becomes more productive and profitable.”

This year in particular, home-grown feed may be even more cost effective.

“Hot and dry weather conditions last spring and over summer across the country has seen a drop in the available amount of quality hay and silage,” Mr Mudford said.

“This lower supply also means higher current prices for hay and silage.

“The unfavourable conditions has also led to a marked drop in the average nutritional quality of available hay and silage,” However, when it comes to implementing a successful home-grown pasture system, autumn is a particularly important time of the year — and making the right decisions now can significantly affect pasture production

levels and livestock performance.

“Creating optimal home-grown feed supplies depends on a number of factors,” Mr Mudford said.

“Not least of which is the ability to choose the best varieties, in the right place, for greater long-term supply.”

To avoid the common problem of feed deficits, Mr Mudford said growers should consider the long-term goals of their pasture system, rather than merely taking a shortterm approach.

“Careful planning, selection and preparation will give a much better feed production curve — so growers should consider everything from selecting the most fertile areas and choosing the right pasture to sow, to implementing good weed and pest management practices, and also considering the best seed preparation techniques,” he said.

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DAIRY NEWS AUSTRALIA APRIL 2018

WEST VIC REGION // 15

Putting science into sowing DAIRY FARMERS selecting perennial ryegrass varieties for autumn sowing have been urged to back their decision with science by tapping into Dairy Australia’s Forage Value Index (FVI).

The FVI enables farmers to choose cultivars that will deliver the best results based on their location, farming system and forage needs.

Dairy Australia program leader Peter Johnson said the index ranked the performance of 30 of Australia’s most popular perennial rye-grass varieties, relative to typical climatic conditions across the country’s south-eastern dairy regions.

“By giving farmers the tools to put a really strong evidence base behind their decisions, the FVI can make a real difference to farm profitability,” Mr Johnson said.

Australian dairy farmers invest about $80 million each year on renovating pastures with perennial rye-grass cultivars.

“Before the FVI, there was very little independently-tested information on the traits and capabilities of these existing cultivars so farmers tended to stick with what they knew,” Mr Johnson said.

“Now they have an accurate and reliable way to assess the economic value of individual cultivars, it’s a lot easier for farmers to make the decision to invest in pasture renovation and increase their productivity and profitability.”

To be included in the FVI, each cultivar must have seasonal yield data from at least three, three-year trials using strict experimental protocols. Cultivars are then scored by multiplying their seasonal yield against the economic value, as determined by case studies in different dairy regions.

Since its introduction in 2017, the FVI has become a key part of the decision-making process for western Victorian dairy farmer Kevin Wines.

He said the index rankings worked alongside existing knowledge and feedback from local farmers and seed distributors to ensure

the right cultivar selection.

“You talk to your friends and the sellers, consider what you already know and then the FVI is another part of your toolbox in identifying what’s best for your farm,” Mr Wines said.

“I think FVI is probably 25 per cent of the overall decision. If you don’t use it, you are

guessing for a big part of your decision.”

For more information about the Forage Value Index, go to: www.dairyaustralia.com.au/FVI The Forage Value Index is an example of the dairy service levy at work. For more information on this and other levy investments, visit: www. dairyaustralia.com.au

ADVERTISEMENT

The Board of the DemoDAIRY Co-operative Ltd advise that the Co-operative will be wound-up in early April 2018 as all Co-operative assets have been liquidated.

The Board acknowledge the inputs and support of the following groups to DemoDAIRY Co-operative Ltd over the past 27 years.

The founding industry stakeholders who identified the need for a dairy farm resource in Western Victoria and mobilised the necessary support and initial capital.

The initial board and following board members who voluntarily contributed their knowledge and time to develop and manage the DemoDAIRY farm and facilities.

DemoDAIRY staff, farm workers and supporting consultants contributed to the DemoDAIRY story.

The 320 shareholders who provided the core DemoDAIRY funding, particularly the farmers and industry stakeholders with multiple shareholdings.

Shareholders and farmers who attended field days and other activities at DemoDAIRY. Research and extension staff of Agriculture Victoria provided valued inputs and guidance.

Dairy industry (including WestVic Dairy) and government agencies, and other foundations and institutions which funded or resourced research and development investment and activities.

The long-term sponsors of DemoDAIRY: Murray Goulburn Co-operative, Fonterra (Bonlac) and Warrnambool Cheese and Butter Ltd; Genetics Australia; the Commonwealth Bank; DASCO Dairy Hygiene; Richardson and Dennis Insurance Agencies (now Breakwater Insurance Brokers); Stephen Pasture Seeds; National Herd Development; Wheelie Waste and Australian GPS Mapping. Also, Bilyana Grazing and Five Star Stockfeeds.

The Goulburn Ovens TAFE, through the NCDEA, were a long-term tenant of the DemoDAIRY facilities, used the farm for dairy industry training and contributed to upgrading the facilities.

After the co-operative wind-up and repurchase of many of the DemoDAIRY Co-operative shareholdings, about $780,000 will be available to continue the broad objectives of DemoDAIRY to contribute to the development and promotion of the dairy industry in Western Victoria through the new DemoDAIRY Foundation.

The DemoDAIRY Foundation The Foundation has been established as a charity with the purpose of advancing the dairy industry by: A. Promoting the development of dairy resources in South-West Victoria; B. Funding tertiary training in dairy related sciences in the form of grants, scholarships or fellowships; C. Making grants or donations to individuals, for education or research relating to dairy sciences.

A voluntary Board will oversee management of the foundation and its assets. The foundation will be closed end with a life of 10-15 years, depending on the quality of grant submissions and results, and further donations. An Advisory Group of farmers and industry specialists will advise the Board on priority areas for funding and assist in screening grant applications. Initial priority areas will include improving understanding of the economics of milk production innovations and systems, and overall dairy farm profitability.

Applications for the first round of grants / awards will be invited in mid-2018.

In addition to the residual funds remaining after sale of DemoDAIRY assets, the Foundation Board wish to acknowledge the generosity of the following individuals and organisations contributing to the new Foundation.

Agriculture Victoria, D & D J Bell, D A Powell, Sinclair Wilson, Swayne and McCabe

Western Victorian dairy farmer Kevin Wines relies on the Forage Value Index on his farm.

N Baker R, J & V Ballinger Estate of J N Black G Black P M Crothers P & A Crothers L F Davidson

R and J Francis R J & S Harlock C D Hibburt P T Hodgson M & M Holloway A, J & R Jellie S & J Jellie

K Lane M & P Lee M & R McInerney P & J McSween P & J Meade D Morris C O’Keefe

A & A Rea H & J Riches N V Roache R M Saunders J D & J Scott R, R & N Smith F & J Spencer

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Interim enquiries on the DemoDAIRY Foundation should be directed to Ian Teese, itag@bigpond.com or 0427358987

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