Dairy Farmer July 2015

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DAIRY

MAKE BVD HISTORY AN INNOVATIVE SOLUTION

July 2015

NOW IN YOUR HANDS

Farming finance

FARMER

Barclays’ Oliver McEntyre on lending Pages 70-72 Volume 62 Issue 7

ORBESEAL .

MADE FOR MAXIMUM PROTECTION. ®

DAIRY FARMER JULY 2015

A study from 2010 showed that a major hurdle to effective BVD vaccination is ease of use. Only 52% of the farmers in the study gave the two doses required for primary vaccination at the correct interval. Furthermore, just 24% completed the primary vaccination course at the recommended time prior to service leaving these animals and their calves without proper protection1.

Bumper preview of this year’s event

LIVESTOCK EVENT Pages 28-72

• Over 60% of mastitis cases can start during the dry period1 • 50% of high yielding cows may fail to develop a complete keratin teat plug, increasing the risk of bacteria entering the udder2 • OrbeSeal is tried and trusted to reduce mastitis by 35% with over 10 years on farm success3

Next generation for dairy in Lancashire

ON FARM FEATURE

• The silica component of the formulation increases viscosity to create an effective barrier against new infection Don’t take risks during the dry period.

Speak to your vet about how OrbeSeal can reduce the cost of mastitis on your farm.

Pages 10-12

Meeting calf rearing targets

YOUNGSTOCK Bovela brings innovation to BVD protection: a L2D (live double deleted) BVD vaccine providing 12 months protection against both BVDV types 1 and 2 from a single shot. Bovela prevents the birth of persistently infected (PI) calves caused by transplacental infection. Vaccination with Bovela can be done from 3 months of age. So now you can finally make BVD history. Ask your vet for more information.

Herd protection made simple

Reference: 1. Meadows (2010) Cattle Practice 18(3): 202-215 Advice on the use of Bovela or other therapies should be sought from your veterinary surgeon. Bovela lyophilisate and solvent for suspension for injection for cattle contains modified live BVDV-1, non-cytopathic parent strain KE-9: 104.0 –106.0 TCID50, Modified live BVDV-2, non-cytopathic parent strain NY-93: 104.0 –106.0 TCID50. UK: POM-V IE: POM. Further information available from Boehringer Ingelheim Limited, Vetmedica, Bracknell, Berkshire, RG12 8YS, UK. Tel: +44 (0)1344 746959. Technical enquiries: +44 (0)1344 746957. Email: vetmedica.uk@boehringer-ingelheim.com.

Date of preparation: Feb 2015. AHD8395. Use Medicines Responsibly (www.noah.co.uk/responsible)

1. Mütze K, et al. The effect of dry cow antibiotic with and without an internal teat sealant on udder health during the first 100 days of lactation: a field study with matched pairs. J Dairy Res. 2012 Nov;79(4):477-84 2. Dingwell RT et al. (2004). Association of cow and quarter-level factors at drying-off with new intramammary infections during the dry period. Prev Vet Med.;63(1-2):75-89 3. Rabiee AR & Lean IJ. The effect of internal teat sealant products (Teatseal and Orbeseal) on intramammary infection, clinical mastitis, and somatic cell counts in lactating dairy cows: A meta-analysis. Dairy Sci. 96 :6915–6931 OrbeSeal contains 65% bismuth subnitrate. Withdrawal period: Zero days: POM-V . Further information is available on the product SPC or contact your veterinary surgeon or contact Zoetis UK Ltd, Walton Oaks, Dorking Road, Walton on the Hill, Tadworth, Surrey, KT20 7NS. Customer Support 0845 3008034. www.zoetis.co.uk Always seek the advice of your medicines provider.

Use medicines responsibly (www.noah.co.uk/responsible) AH246/15

Pages 24-27

GOOD EVANS Pages 78-79

Tip of the month: Farmhouse tax net widens – p80 1

0

12:30

**DF July p1 Leader _Layout 1 05/06/2015 11:47 Page 1

LEADER

a word from the

EDITOR

s we went to press, a new furore was hitting the dairy sector with the news Caffe Nero had caved into threats from two animal rights activists that they would target its shops at an antiausterity demonstration later this month.

This led to it banning its milk supplier, Medina, from collecting in the two badger cull zones, which supposedly came as a complete surprise to them, especially as they didn’t actually pick up there.

The coffee chain defended its decision by stating it had invoked the ban for staff safety reasons, but it is clear it had wholly underestimated the gravity of the issue and the press frenzy that would engulf it.

The move was quickly condemned

by Defra and the NFU, with its dairy chairman suggesting producers boycott the chain, and it was likewise savaged by some of the nationals too.

As it happens, Caffe Nero is not

A

Contacts

widely regarded for its ethics. A recent investigation into ethical coffee rankings by Ethical Consumer had the chain fourth from the bottom in the rankings of 14 chains, with it being criticised for ‘having little evidence of environmental or ethical sourcing’.

Come the autumn, the agreed strategy is that the pilot culls will recommence while the activists are equally determined they won’t, and are planning to target other stores.

Stuck in the middle, and trying to do their level best to keep their cattle healthy and alive, are innocent milk producers.

Short-term damage may have been done this time, but for the future it is vital other high street traders stand firm against this sort of blatant intimidation!

Editor Peter Hollinshead 0203 691 5883 peter.hollinshead@briefingmedia.com

Account Manager Mark Jackson 01322 449 624, mark.jackson@briefingmedia.com

Circulation and subscriptions 01635 879 320 subs@dairy-farmer.co.uk

Head of Commercial Solutions Mike Hartley 01772 799 532 mike.hartley@briefingmedia.com

Advertising Production Justine Sumner 01772 799 437 Fax: 01772 796 747 justine.sumner@briefingmedia.com

ISSN 1475-6994

Production Editor Gillian Dixon 01772 799 417 gillian.dixon@briefingmedia.com

Classified Advertisements Ben Lea, Susan Rains, Stuart Boydell 01772 799 454

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© Briefing Media Ltd 2015 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording, or any information storage or retrieval system without the express prior written consent of the publisher. The contents of Dairy Farmer are subject to reproduction in information storage and retrieval systems.

Dairy Farmer, Briefing Media Ltd, Unit 4, Fulwood Business Park, Caxton Road, Preston, Lancashire PR2 9NZ

Origination by Farmers Guardian, Briefing Media Ltd, Unit 4, Fulwood Business Park, Caxton Road, Preston, Lancashire PR2 9NZ. Printed by Headley Brothers, Invicta Press, Queen’s Road, Ashford, Kent TN24 8HH. No responsibility can be accepted by Dairy Farmer for the opinions expressed by contributors.

JULY 2015

DAIRY FARMER

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THIS MONTH

CONTENTS july Volume 62 Issue 7

Rearing targets

Youngstock

24-27 Comment

4-6 8-9 14-15 78-79

Latest news Cowmen Comment Potter’s View Good Evans

New housing helps meet calf rearing targets of larger herd

Regulars 16-19 22-23 74 80

Breeding Vet’s View Workshop tips Finance

16-19

German imports

Breeding

Importing stock proves ideal solution for Devon dairy farmer

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DAIRY FARMER

JULY 2015

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THIS MONTH

28-42

Special preview

Livestock Event 2015 28-42 44-46 48-50 52-62 64-68 70-72

Milk Breeding Forage & Grassland Health & Nutrition Machinery Finance

44-46 52-62

64-68

JULY 2015

DAIRY FARMER

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**DF p4 5 6 News_Layout 1 05/06/2015 09:44 Page 1

NEWS News in brief

Badger fanatics put pressure on retailers

UK milk levels

JAlthough peak milk has passed, milk volumes continue to be high, with production being about 1m litres per day above last year, equivalent to 2%, and also between 3m and 3.5m litres or 8.5% higher than the longterm average.

Overall EU milk production in March was 12.617m tonnes, down 157,000 tonnes and 1.2% on last March.

JA new ‘task and finish’ group has been set up by a cross section of industry organisations including the NFU, NFU Scotland, the CLA, FFA, NFU Cymru, RABDF and TFA. The group will ‘consider a number of initiatives in other parts of the world which are helping farmers manage the volatility of the global market,’ it says. This will include a review of A and B contracts, futures markets and labelling.

Transparency The ultimate aim of the group will be to build greater transparency and trust in the UK dairy sector, and the first step in achieving that is for farmer representatives to work together pursuing common goals, said NFU Scotland.

DAIRY FARMER

it would ‘invade its stores to carry out protests and food fights’. It is also threatening to visit Sainsbury’s AGM on July 8, and has started fund raising to buy 100 shares at £2.50.

JLittle has changed on the global dairy markets. The latest GDT auction saw the index down further by 4.3% with an average price of $2412/tonne. SMP was down 1.3% to $1982 and WMP down 3.1% to $2309.

Here in the UK milk supplies are slightly down and this has bolstered the spot price, albeit marginally, to its current level between 15 and 20ppl.

Cream is also slightly stronger than it was at 98p, but is still behind where it normally is at this time of year with the fruit season starting soon.

I

Industry looks to manage volatility

4

n a worrying development for the industry, coffee chain Caffe Nero announced it has asked its milk buyer not to source milk from the two cull zones as a result of pressure from two badger cull protestors.

In a move which saw the chain ‘bow to animal rights threats’, according to a headline in The Daily Mail, it invoked the ban after learning it is being targeted by protestors on an anti-austerity March on June 20. The company is supplied by Medina, which was not consulted about the decision in advance.

Once the protestors had secured that ‘victory’, it subsequently threatened to target Sainsbury’s and said

JULY 2015

Outraged Rob Harrison, NFU dairy board chairman, was outraged and called for a boycott of the chain.

He said: “I think it is naïve, outrageous and ignorant,” he told sister publication Farmers Guardian.

“I am amazed at the timing of it, after a couple of years, and to start closing ranks is pretty awful.

Would they rather they were sourcing milk in an area where 40,000 cows were killed because of TB

than in an area where they were actually trying to control the disease. It is absolutely nuts they are saying we are going to support extreme activists that are trying to spread disease around our country.”

At the time of going to press, Medina was having urgent meetings with the chain, which declined to answer Dairy Farmer’s questions.

Dairy UK chief executive Judith Bryans told The Daily Mail that ‘the industry wants to have healthy cows and healthy wildlife. Any decision not to take milk from cull zones could have an impact on dairy farmers and consumers yet does nothing to help the situation’.

Little change in global dairy market

Butter Butter has improved marginally too, but not enough to make much of a difference to processor incomes, and cheese is holding its own at the moment –

against the odds – at £2350.

It is under pressure from the high flush milk both here and in Ireland, though, where volumes for May are estimated to be 10% up on last year, and equivalent to an additional 78m litres.

Both Muller and Dairy Crest have kept their price for July, but after increasing its price in April, Arla has had to drop its milk price by 0.84ppl for June.

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Dairy Crest profits crash

JDairy Crest’s profits dropped nearly 60% to £22.1m for the year ended March 2015, down from £54m the year before on revenues of £1.33 billion. In an indication as to why it is trying to sell its liquid division to Muller, profits at its liquid dairy division crashed 90% from £18.8m to £1.8m.

Cheddar sales Cathedral City continues to grow strongly, says the company, which claims it is now Britain’s 16th largest grocery brand, and accounts for over half of all total branded retail cheddar sales.

NEWS

Arla steps up farmer promotion campaign hose of you following the antics in the Rovers Return may be surprised in the commercial break to see a real dairy farmer popping up on your screen.

Following on from its ‘Support our farmers’ promotional campaign launched last year, Arla Foods is embarking on the next stage of its campaign to promote its farmerowned credentials with a major consumer advertising presence.

This kicked off on June 8,

T

with the company’s first TV advertisement in the middle of Coronation Street – which is generally regarded as being prime time viewing.

Products The TV advert follows a typical Arla farmer – Joe Delves – during his morning routine while the rest of the country is waking up and enjoying Arla products for breakfast.

The strapline is ‘let in the goodness’ and the advert, according to the company, ‘reinforces its special farmer

owned status and underlines the commitment and passion of its dairy farmers’.

The move is part of Arla’s strategy to ramp up its new product development, brand visibility and the health credentials of dairy products in general.

So far this year it has launched three new yoghurt products including Skyr, Protein, and a low fat, reduced sugar range, plus a new milk drink Big Milk.

All in all, this year the company has spent £15 million on marketing the Arla brand.

Nottingham’s Milk Race hailed a success

JAn estimated 100,000 people turned out in Nottingham city centre at the end of May to celebrate another successful Milk Race day,

with Laura Trott claiming victory in the elite women’s race and Kristian House winning the elite men’s race.

The race, which initially

ran between 1958 and 1993 as the UK’s leading multistage cycling race, was resurrected in 2013 as a city centre event.

This year it was funded by the Dairy Council and DairyCo, but doubts remain over its future due to a lack of further funding.

JULY 2015

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NEWS

Dairy Crest Direct set to form UK’s first DPO

News in brief New Welsh milk brand launched

JWelsh milk consumers have an all-new Welsh brand of milk to consume called Totally Welsh. The ‘Welsh milk from Welsh cows bottled in Wales’ brand has been launched

by Mark Hunter from Haverfordwest, and processes 400,000 litres of milk each week.

sulting from DCD’s DPO structure have now been integrated into new DCD DPO Member Agreements and into the new Dairy Crest Milk Producer Agreements together with amendments for full voluntary code compliance.

JFonterra has reduced its forecast milk price for this season down to $4.40/kg milk solids (15.8ppl). The overall forecast payout will be $4.60-$4.70 (16.5– 16.8ppl).

Its new season opening milk price forecast has been set at $5.25/kg solids (18.6ppl).

Another co-op, Westland Milk Products, has released its prediction for the 201516 season at $5.60-$6/kg solids (20-21.5p).

airy Crest’s supply group Dairy Crest Direct (DCD), which represents more than 1000 farmers and 1.5 billion litres of milk, is converting itself into a formal Dairy Producer Organisation (DPO) – the first in the UK. The evaluation of the merits of a move to a DPO was funded through a grant from Defra’s Dairy Fund, and its application to the RPA was approved earlier this year.

The status puts DCD on a stronger legal footing to negotiate contract terms and milk prices with DC, says the firm. Currently there is a legal grey area overhanging the situation. It will also enable DCD to build on the existing services provided to all members.

It says: “The changes re-

JIn the April issue, Dairy Farmer carried an article about the new BVD vaccine, Bovela, from Boehringer Ingelheim.

In this article it was stated that: “…there is no evidence that it (Bovela) can’t be given concurrently with other vaccines. However, you can’t mix them and you

shouldn’t give them at the same site.”

The manufacturer would like to make it clear the authorised wording which accompanies Bovela states: “No information is available on the safety and efficacy of this vaccine when used with any other veterinary medicinal products. A decision to

use this vaccine before or after any other veterinary medicinal product therefore needs to be made on a case by case basis.”

Such decisions would normally be made by the consulting veterinary surgeon.

The manufacturer apologises for any confusion caused.

D

Fonterra forecast

Sign up “Members will be invited to sign up to the new agreements and, if accepted, will ensure future pricing and contract options from July will be by negotiation, and not as at present, by discretion.”

DCD chairman, David Herdman, said: “At a time when the UK dairy industry is facing considerable challenges, and when so many dairy farmers have no formal representation at all, I am determined to provide our members with a range of options to help in the

Bovela BVD vaccine use clarification

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DAIRY FARMER

JULY 2015

management of their individual businesses.

“The legitimacy, accountability and rigour provided within a DPO structure helps to future proof effective farmer representation in a fast evolving marketplace.”

The move was fully supported by Dairy Crest and Rob Harrison, NFU dairy board chairman, also congratulated DCD. He said: “Now we need farmers across the UK to recognise the strength they can achieve through being part of a DPO, and crucially we need milk buyers to recognise and work with DPOs once they are established.”

Doubt cast over future of CNP

JIn a Scottish Parliament grilling, First Milk’s new chief executive cast doubt on the future of the firm’s sports nutrition business CNP, stating the co-op had to focus on its core business.

Although respected in its niche market, it has not delivered the profit levels that were expected at the time of its purchase, with Mike Gallacher telling MPs that ‘CNP had been dilutive to the performance of the business’.

A new managing director is now undertaking a strategic review of the business.

**DF Jul p8 9 Cowmen_Layout 1 02/06/2015 13:42 Page 1

COWMEN COMMENT

SCOTT Kirby

Scott Kirby is farm manager at Harper Adams University, after being herd manager at Newcastle’s Cockle Park and an SAC consultant. requently calf and youngstock accommodation relies on old buildings originally built for a different purpose. That was the case at Harper Adams, where in my time calves have variously been housed in an old mill, sheep shed, grain store and straw barn. Without exception each site had problems, and frequently ventilation issues caused respiratory problems.

But as the campus grew, buildings were progressively swallowed up and finally they ended up outside in hutches on woodchip or grass paddocks. In the hutches the main problems became cryptosporidium and coccidiosis, and once present no amount of cleaning or disinfection would clear infection from a woodchip or paddock surface.

Inadequete sites also drain staff as much time gets wasted trying to rig up temporary gates, lighting, water or ventilation, and it all diverts attention away from the effort which makes the difference between calves just surviving or thriving.

Recently we have been able to create a dedicated calf facility. The choice of site was the first challenge. We wanted a position close to the dairy unit so calves could be transferred in and out easily, but with enough separation to reduce any disease risk. We eventually settled on a small paddock which was left by the recent expansion of the pig unit, and this was

F So far we have not seen any evidence of the cryptosporidium or coccidiosis which haunted us in the past

“

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DAIRY FARMER

JULY 2015

sheltered on all sides by hedges and buildings which would reduce driving winds while still allowing free movement of air, and additionally be only 200 metres from the dairy.

The choice of housing became the next question. Capital was limited, so the priority was to maximise calf health and welfare at minimal cost. We had already seen some good results from hutches if we could ensure they were on uncontaminated sites.

However, in choosing to go with hutches we were aware from experience not all hutches are equal. We have found quality of ventilation and temperature stability can vary significantly from one manufacturer to another.

The layout of the site was driven by orientating the hutch lines on a east-west axis to ensure the prevailing wind out of the west would be side-on to the hutches, which meant it was drawing air out of the hutches as it passed over rather than blowing directly into them.

The surface on which the hutches sit is a concrete pad with a 2% fall to provide drainage. There are four separate rows of 19 hutches and when animals move out of a row the entire row of hutches is wheeled to one side for cleaning, and the concrete pad is then scraped, steam cleaned and disinfected ready for the next batch.

The ability to completely clean this area has meant so far we have not seen any

**DF Jul p8 9 Cowmen_Layout 1 02/06/2015 13:47 Page 2

COWMEN COMMENT

The dedicated calf facility with hutches and rearing pens in the background – cleaning is now much easier and mortality averages 3% and DLWG is 0.8kg.

Farm Facts

rFARM SIZE: 1700 acres (688ha) rHERD SIZE: 400 cows Rolling milk yield: 8900 litres/cow rTARGET YIELD: 9500 litres/cow rMILK BUYER: Tesco (Wisemans) rSOIL TYPE: Sand, clay and peat rRAINFALL: 800mm/year.

evidence of cryptosporidium or coccidiosis which haunted us in the past. To ensure this remains the case biosecurity is critical so the site has a perimiter fence and visitors are asked to adhere to a strict hygiene protocol.

The areas between the hutch pads are formed by concrete railway sleepers.

Sleepers have increased considerably in price since they first became available some years ago and work out at about £7/sq m, but still a fraction of the price of laid concrete, and they have the benefit of creating free-draining permeable surfaces which can easily be removed if needed.

It is more than a year since the first calves went through the site. Over that time, mortality has averaged 3% and daily liveweight gain is a healthy 0.8kg which

allows calves to be weaned at eight weeks at double their birthweights.

At weaning the calves are moved to one of eight group hutches across the yard to create groups of five. Each hutch is attached to a covered run providing 4sq m/head, and calves remain in the group hutch through to about four months of age. The run was designed and fabricated on-farm and provides a covered bedded area which can be moved to one side by a telehandler with the animals still inside. This allows the bedding to be cleared every few weeks – a process which typically takes two-three hours for all eight hutches.

Hutches require more labour than group housing or automatic feeding systems, but a well laid out site can minimise this.

JULY 2015

DAIRY FARMER

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**DF July p10 11 12 On Farm _Layout 1 02/06/2015 16:11 Page 1

ON FARM

Milk production is going through some rough times at the moment but, despite this, the next generation of dairy farmers isn’t short on commitment – and none more so than 18-year-old Thomas Hull. Jeremy Hunt reports.

Current low prices fail to dampen enthusiasm

hose keen to get a foothold on the dairying ladder are determined to stick with it despite the problems we’re having over the milk price.

Thomas Hull, who hails from the well-known Fortland Holstein herd in Lancashire and will be the fourth generation of dairy farmers in the family, says: “Those who control what farmers are paid for their milk need to recognise the importance of the next generation of milk producers and value their commitment.”

Mr Hull, who is currently mid-way through a threeyear course at Reaseheath College, has his sights firmly set on eventually returning home to help run the herd at Gibstick Hall Farm, Winmarleigh, near Garstang.

Despite the milk price traumas of recent months he remains confident about the future.

“As the price farmers are paid for their milk is still a big issue, it is even more

T

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DAIRY FARMER

JULY 2015

Eighteen year-old Thomas Hull with father Andrew and leading cow Stauntonvale Shottle Audrey.

important to be as efficient in every aspect of the way cows are managed and the way cows are bred,” says Mr Hull.

Cow numbers While expansion is considered by some to be the best way of protecting a dairy herd from future instability in the milk price, the 200-cow Fortland herd is a prime example of a successful family farm where a big increase in cow numbers is not a likely

scenario for the future.

“I think there will continue to be a place for herds of this size and run as family farms.

“They can offer a route into the industry by providing the next generation with an opportunity to come into a family business. But to make sure family farms like ours can continue to do that depends on the price dairy farmers are paid for their milk.”

Founded in 1957 by Mr Hull’s grandfather Jimmy

and his wife Nancy, the Fortland herd is now run by Thomas’s father Andrew and his uncle Leslie. Jimmy Hull, a past president of the Holstein Society, is still actively involved in the farming business.

The herd has an average yield of 11,000kg at 4.28% butterfat and 3.15% protein, and this is on twice-a-day milking through a 22/22 Fullwood parlour. No concentrates are fed in the parlour.

The herd is run on 400

**DF July p10 11 12 On Farm _Layout 1 03/06/2015 13:42 Page 2

ON FARM acres of peat moss land in the heart of the Fylde and, although dry cows and young stock are summer grazed, the in-milk cows are now housed all-year round.

The TMR meets the cows’ total dietary needs and comprises grass silage, maize silage, wholecrop, soya, soda grain, soya hulls, Megalac and limestone, plus minerals.

Mr Hull says young people are moving into an industry where the level of efficiency applied to the management of a herd of dairy cows has never been more critical to its profitability – and ultimately its viability as a business.

“Management issues such as heifer replacement rates will become even more important in the future. “Although the influence of the bull a cow is sired by is often blamed for passing on failings that curtail the number of her lactations, we are going to have to be more aware of environmental and dairy housing conditions and how they impact on wearability. “These will become high priorities for the next generation of dairy farmers. “Poor fertility is one of the major reasons why cows are culled early and will be another challenging manag-

“

Issues such as heifer replacement rates will become even more important in the future Thomas Hull

ement issue we’ve all got to deal with. “But every part of the way we manage dairy cows – their nutrition, their environment, how we minimise their stress levels when we need to handle

them, and how their genetics can help them to thrive and be profitable – will all play a big part in how we run our herds in the future,� says Mr Hull.

He is currently working in a middle-year placement in Cheshire at Townhouse Holsteins which is owned by the Roberts family – part of his Level 3 extended diploma in agriculture.

But there is no denying Mr Hull has an infectious confidence in the future of British dairy farming.

Having been brought up in a family steeped in Holstein breeding, it is no surprise to learn he retains a deep interest in pedigree black-

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JULY 2015

DAIRY FARMER

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**DF July p10 11 12 On Farm _Layout 1 02/06/2015 16:15 Page 3

ON FARM

Although dry cows and young stock are summer grazed at the 400 acre Gibstick Hall Farm, the in-milk cows are housed year round.

and-whites. He is a keen and successful member of Holstein Young Breeders (HYB) and won the HYB Littlestar award in 2013.

He’s currently a finalist in this year’s Cogent Futures Programme.

Stock judging Since starting judging in 2011 he has won numerous stock judging events both locally and nationally within HYB and the NFYFC. He won the Lancashire YFC’s Junior Stockman of the Year title in 2014 and stood first in the Junior National Reasoned Stockjudging competition for HYB last year.

“Being involved in HYB gives young people the opportunity to visit other people’s herds and see different cows run on all sorts of systems which is

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DAIRY FARMER

JULY 2015

valuable experience,” he explains.

But while he values the importance of the show ring to promote the Holstein to milk producers, he remains acutely aware of the need to focus on functional traits.

“As a young person coming into dairy farming, I think the future profitability of milk production relies more on the type of cows we breed and the type of management system best suited to them.

“Dairy farming has got all sorts challenges to face in the future, but it’s important we stay focused on the traits which will make cows remain productive and help them thrive in a modern dairy system.

“We need to be careful not to get carried away with stature and allow narrow-

If you are determined to have a future in dairy farming, don’t give up Thomas Hull

“

ness to creep in as a result of that. Chest width is something I think we need to concentrate on. Cows which are too tall and too narrow won’t perform to their full potential in a modern cubicle system.

“Holstein cows run in pedigree and commercial herds need strength and balance. We don’t want extreme traits that impact on longevity,” says Mr Hull.

A bull is currently run with heifers in the Fortland

herd but Mr Hull believes greater genetic progress will be achieved via AI and the use of heat detection in heifer groups.

“It is becoming difficult to find a bull which isn’t related to a bunch of heifers, so AI for heifers is something I think we’ll see a lot more of. It will certainly speed up genetic progress.”

Despite everything, he says he’s very confident about dairy farming’s future.

“It’s still hard for youngsters to get started but there are now some good scholarships available and young people should take advantage of them whenever they can.

“If you are determined to have a future in dairy farming, don’t give up. If you want to do it, do it,” he says encouragingly.

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**DF July p14 15 Potter _Layout 1 05/06/2015 10:48 Page 1

POTTER’S VIEW

IANPotter

This month, Ian Potter questions whether a two-tier industry with its aligned and non-aligned producers is sustainable in the longer term, and goes on to look at ways in which we could promote the industry. ow this will not be popular with a certain elite section of the industry, but the gap between the so-called have’s (on retailer-aligned contracts) and the have not’s (those without) has widened to, in my opinion, totally unacceptable levels.

It’s now 10ppl or more, and for me it’s the elephant in the room and has to change.

Retailers are now battling to compete with cheap milk from the discounters, which has sunk to new lows in the Midlands of a gut wrenching 35ppl for two litres (17.5ppl).

Let’s just look at Tesco, with an aligned pool involving Arla and Muller farmers, which is costing them upwards of £80million per annum, and rising! Tesco’s results were the worst on record and its share price almost halved between June and December last year before partially recovering.

Tesco’s producer price is fixed until November 1st and abandoning its commitment to its farmers is certainly not a credible option. But a variation most certainly has to be in the wind, and I think it might be imminent. Some Tesco farmers haven’t helped themselves, preferring to crow about their investment and what Tesco are paying for instead of focusing their efforts on demonstrating the benefits that the extra £80million brings to the retailer. Why haven’t the farmers who

N Through this column I have previously issued warnings like this because the situation is simply unsustainable

“

14

DAIRY FARMER

JULY 2015

benefit, especially Muller Wiseman aligned and Arla directs, stepped forward to promote a common message? Some are even brazenly saying that what Tesco pays for includes some non-dairy costs, which they believe they have been smart in lumping into the cost of production!

Presumably Promar doesn’t spot this!

Through this column I have previously issued warnings like this because the situation is simply unsustainable. The likes of Tesco and Sainsbury’s stepped forward in 2007 with a much-needed sustainable model, but it’s now time for an overhaul.

I do believe Tesco’s, Sainsbury’s and others would not be foolish enough to seek a way out altogether, but they will be acutely aware that it is time for a review because some of their aligned farmers are piling on the extra cows, feeding more concentrate, paying higher rents to grow maize in the belief that it can continue without them giving anything back. On the other side of the fence are my farming friends, Mr Envy and Mr Jealous, who are receiving anywhere between 15ppl and 24ppl and they would love to see their aligned neighbours’ milk price fall closer to theirs. I think, on this occasion, it will.

Those on non-aligned contracts are being forced to change how they do things to reduce cost. Those on aligned contracts receiving 30ppl+ are not, and are highly unlikely to be the most efficient producers.

**DF July p14 15 Potter _Layout 1 05/06/2015 10:49 Page 2

‘For me, it’s the elephant in the room’

Ian Potter

rIan is a specialist milk quota and entitlement broker.

Comments please to ianpotter@ipaquotas.co.uk

Change is in the air and Promar and the processors need to engage with the retailers to be a catalyst for the change rather than sit back. In that case something more drastic might come. Either the farmers deliver more of what the retailers want, or the retailers WILL review the cost of production model. In New Zealand there is a school of thought that low prices will deliver a long-term benefit because it will curb expansion, especially from EU farmers on housed systems. When milk prices were flying high there was talk of New Zealand farmers moving towards housing more cows and abandoning their low cost grassbased cornerstone.

Moving on, back in the summer of 2003 there was a joint press release issued by Milk Link (Barry Nicholls), former MMB Board member Allin Bewes, yours truly, and freelance journalist/my occasional partner in crime Chris Walkland, with the headline ‘Should we, could we, get the Milk Race back?’. The four of us set up a company called ‘The Milk Race Limited’, and I won’t go over which industry organisations and personalities ensured the idea was binned, but they succeeded.

Fortunately, though, only for a decade.

However, back in May I was delighted to have a great day out at Nottingham to see first hand this year’s Milk Race, the third in a row. And what a success it was!

For 35 years the Milk Race was a 10-day round Britain international cycle race and a cornerstone of the dairy industry’s milk promotional campaigns before deregulation. It has certainly risen from the ashes and I was pleased to see Arla, Dairy

POTTER’S VIEW

Crest and the Dairy Council/DairyCo promoting their milk, milk products, farming and the countryside to 50,000+ people of all ages from five to 85 at a major national sporting event.

Congratulations to all who made it happen and I hope its success is capitalised on. I am not qualified to verify whether it’s a cost effective investment of dairy farmers’ money, but to me there are three things which sell products today – pop idols, sex and sporting personalities. The industry has forked out for the first one but not the second! I am very much behind the benefits of using sporting personalities and cycling is both popular and topical.

I do believe as an industry we have to promote the sales of all our dairy products.

That’s why the new Arla TV advert is so fantastic! I wish more companies would do it. The public like dairy farmers and want to support you but some of you are sadly poor, grumpy ambassadors for this exciting industry.

Milk prices continue to fall and as I pen this article the spot milk is back down at 12ppl and it’s five weeks past the UK’s peak production. It’s grim but heaven knows how bad it would have been if Woodcock’s new state-of-the-art 500 million litres/year capacity hadn’t absorbed a chunk of this milk.

Most, if not all, dairy analysts accept that prices will certainly remain low for all of 2015 and some are suggesting it will run through most, if not all, of 2016 until supply and demand are re-aligned. It’s going to get tougher and regrettably there will be casualties.

JULY 2015

DAIRY FARMER

15

**DF July p16 18 19 Breeding_Layout 1 02/06/2015 13:55 Page 1

BREEDING

Importing stock from Germany proved to be the ideal solution for Devon farmer, Pete Johns, as he sought to increase his milking herd quickly after a family partnership change.

German imports meet shortfall in milking herd

henever two brothers in farming go their separate ways, there is inevitably a degree of upheaval. For Pete Johns, who took over his share of a family business in April 2014, replacing his cattle quickly and easily was one of the most important parts of the process.

Pete had been farming at Backway Farm, Shebbear, North Devon, in partnership with his brother, Dave, for more than 10 years, so when the move took place – and Dave departed with his half share of the herd to a tenancy in Cornwall – Pete had many cubicle spaces to fill to keep cash flow moving.

“We’d been milking up to 240 head before we split the herd, but by the time we’d done some culling and Dave had taken his half, we were left with 100 milkers here at Backway Farm,” says Pete.

Having to deal with a drop in milk price of 8.5ppl (down to 26p) since April 2014 made the process all the more challenging, as Pete and his wife, Hayley, took on the commitment of

W

16

DAIRY FARMER

JULY 2015

The herd average is running at 8500 litres at 4.2% fat and 3.35% protein.

the 165-acre (67ha) farm.

“We had to get numbers up extremely quickly to keep the milk cheques flowing,” he says.

Quantities Although he had considered the option of buying stock at his local market, he knew it was important to buy the right quantities of the required type at exactly the right time and did not want to leave this to chance.

Having heard of and spoken to two local farmers who had successfully imported stock from the Germany co-op Masterrind, he decided to approach Richard Marsden, the owner of RM Cattle Imports, who had purchased the cattle on their behalf.

“Richard also farms nearby as the manager of Peter Willes’s Parkham Farms and imports cattle for this large-scale dairying business too,” says Pete.

“My own recollection of the Willes family was through Peter’s father and I remember him buying stock at Holsworthy market years ago, and I recall he would only ever buy the best.

“When I instructed RM Imports to go to Germany on our behalf, I thought that if the stock were good enough for Parkham Farms, they should be far and away good enough for me.”

Having agreed the price, which was £200-£300/head less than if bought in the UK, Pete says the idea became even more appealing.

“I wanted 75 head at this stage so you can see the attraction, as I would have only been able to buy around 60 or 65 head if I had bought at UK prices.”

The import was discussed in detail and Pete was reassured by the guarantee cattle would come from BVD and IBR-free herds, and there was no TB in Germany.

“We were also assured they would come from herds giving 9-10,000 litres and were emailed production figures and calving details of a selection which were available,” he says.

“We rejected a few before we bought if we thought they didn’t have enough milk, their SCC was too high, or perhaps if they were too many days in-milk and not back in-calf.”

Seeking a range of calving dates to help meet a level milk profile and a cross-section of first and second calvers, Pete also says he would not buy dry cows or in-calf heifers close to calving as he feared the loss of a calf on the journey.

After a nail-biting wait as the cattle made their trip across continental Europe and through the UK – un-

**DF July p16 18 19 Breeding_Layout 1 02/06/2015 13:56 Page 2

BREEDING

The imported cattle are now out at grass and have fitted into the herd well.

loading for milking along the route – the first shipment of 56 head arrived at the farm on June 12, 2014.

“For a week before they turned up I hardly slept a wink, but I suppose that is natural instinct when so

much is at stake,” says Pete.

However, he says the cattle arrived looking healthy and he was impressed with the conditions in transit as well as the calibre of the drivers and their attitude to the stock.

“The only thing that struck us was these cattle didn’t seem to understand about grazing and just wanted to stay in the cubicles at the start,” he says.

“Of course it soon clicked

The importer’s perspective

rRichard Marsden founded RM Imports when it became impossible for him to replace the stock for the large and rapidly expanding flying herds he was managing on behalf of Peter Willes in North Devon.

He first imported from France and the Netherlands but later turned his attention to Germany where he felt the quality and consistency of cattle was the best he had seen in Europe.

With the added bonus of a highly organised breed society structure based on co-operative ownership by farmer members, he had confidence in the breeding programmes and was able to forge relationships to cut out the middle men and allow him to deal direct.

Dealing specifically with Masterrind which is the largest European cattle breeding organisation

18

DAIRY FARMER

JULY 2015

Richard Marsden (left) with Mastergen’s Molly Westword.

operating successfully worldwide, his recently appointed colleague, Stephen Ford, now carries out selection trips on behalf of many UK farmers during most weeks of the year.

“We can select the stock for a customer, but we really prefer that they come on the trip and select for themselves,” he says. “We do everything we can to select them right as that means repeat business.”

When buying from Masterrind the prices are set on a monthly basis to

reflect the auction trade.

“This means we pay the same price for every animal and we don’t have to start bartering with farmers,” he says.

Disease free “Animals are all from BVD and IBR-free herds and will be tested Johne’s negative before they qualify for export,” he says. “But in addition to this, the UK farmer can pay for any further tests although these are rarely required.”

Despite the checks and

and now they’re out at grass and have fitted in fine with the rest of the herd.”

Out of a total 75 head (the remaining 19 are coming on a half load in August) Pete says there was one which had PD’d positive which turned out not to be in-calf, but – as had been agreed at the outset – a discount was given for her.

Others have calved and bred well, with just four not currently back in-calf. balances he says people will always have worries and transportation is their biggest fear.

“The reality is that is the last thing to worry about as the trip is far shorter than many think. The cattle are loaded on to straw, receive ad lib hay and are unloaded, milked, fed and watered in a lairage en route,” he says. “I am confident they will arrive freshly calved and unstressed, and cleaner and healthier than many from closer to home.

“Some people actually think I have a big shed of cows ready to sell but the reality is I don’t,” he says.

“What I have is the means to deal directly with German farmers and can take UK farmers to view their cattle.

If they don’t like what they see they are under no obligation and we simply move on to the next farm.”

**DF July p16 18 19 Breeding_Layout 1 05/06/2015 12:23 Page 3

BREEDING “We weren’t sure how to approach the breeding to start with as we weren’t familiar with German sires,” says Pete.

But now he is running the cattle through a mating programme from Mastergen – the UK AI company whose main semen supplier is Masterrind – to pick the best match of sires and to ensure there is no inbreeding.

Cell counts Today he says the herd average is running at 8500 litres at 4.2% fat and 3.35% protein. Cell counts have dropped to an average 120130,000 cells/ml from close to 200,000, but Pete says –

having installed new sandbedded cubicles in July 2014 – it is impossible to say how much of this is due to the cattle and how much is down to management.

What he does know, however, is that he could not have survived with just 100 cows, and is glad he quickly got numbers back up.

“We know it’s going to be tough but we are determined not to let Mum and Dad’s farm go,” he says.

“All going well – and a lot depends on the milk price – we will continue to expand and become more efficient, and will build something more for our two sons to take on.”

Hayley and Pete Johns on farm with their 75 imported cows.

JULY 2015

DAIRY FARMER

19

**DF July p20 Elanco_Layout 1 05/06/2015 09:08 Page 1

SPONSORED SERIES In the second of our two-part series from Elanco, Mark Burnell from Synergy Farm Health offers practical advice on tackling ketosis.

S I S O T E K y the theor

T

wo of the keys to prevent-

problem with fertility leading to

ing ketosis are maintaining

over-conditioned cows.

feed intakes in the run-up

“Look at all of your cows critically

to calving and into early lactation,

at the time of drying off and then

and managing body condition at a

keep a close eye on them through-

fairly consistent score of 3.0.

out the dry period.

But these simple things are

“Cows which look spot-on and

Vet Mark Burnell says fat cows are at the highest risk of ketosis. unavoidable at this stage, it can be

“The test is carried out

cut to a minimum with good

between two and 21 days after

often easier said than done, says

have no previous history of ketosis

planning and design,” he says. “For

calving and, if transition manage-

Mark Burnell from Synergy Farm

and are carrying just a single calf

instance, if you have your calving

ment is working, it will hopefully

Health, a practice which runs

should get through calving and early

pens right next to the group which is

confirm that you’re managing

veterinary services throughout the

lactation well if their management

closest to calving you can quietly slip

transition cows well,” he says.

south-west of England.

and feeding stay on track,” he says.

a cow through just as she starts to

“Looking at dry cow condition

calve – this way there is no social

Barometer

change and the stress of the

Other production diseases

movement is negligible.”

including milk fever and displaced

score is a good place to start and

Cows at risk

you do not want to see many over

“But wherever a doubt exists, we

3.25 or under 2.5,” he says.

now have monensin delivered in a

Once the cow has calved there is

bolus which can be used three to

much which needs watching closely

ter of the success of transition

risk because they are prone to

four weeks before calving and has a

and Mr Burnell says it is important to

management, which Mr Burnell

reduced feed intakes around the

good record of seeing cows out of

monitor any rapid loss of condition,

reiterates should be a high priority

time of calving, but thin cows are

trouble.

cows not cleansing properly, poten-

in any herd.

“Fat cows are at the highest

also susceptible if their nutritional management is poor,” he says.

“The active ingredient in the bolus works by shifting the microbial bal-

tial cystic ovaries, low milk proteins or cows just not coming into milk well.

abomasums also act as a barome-

“Manage your transition cows just as well as your milking cows –

If many are off target in either

ance in the rumen so ultimately more

Getting it all right means it is

scrape them out twice a day and

direction, he says, there are plenty

glucose is produced which becomes

possible to cut out clinical ketosis

bed them up regularly,” he says.

of places to look.

available as energy to the cow,” he

altogether and reduce the sub-clini-

“Remember they’re an important

explains. “This protects her against

cal rate to under 10%, substantially

part of the herd so do not manage

intakes being compromised by

the tendency to drop into negative

less than the national average of

them as an after-thought.

over-stocking, poor feed palata-

energy balance during the transition

around 30%.

bility, insufficient trough space or

period and therefore protects

an inadequate water supply,” he

against the major cause of ketosis.”

this figure in any herd,” he says.

and since it is a gateway disease –

Managing body condition is only

“For instance, are dry cow feed

says.

“Or perhaps we need to look back to the previous lactation where there may have been a

20

“I would recommend monitoring

“Avoiding ketosis is a critical part of any herd’s management,

“This can be done with the Keto-

often at the root of a range of other

part of the story, and Mr Burnell says

Test™, which measures the ketone

metabolic disorders – keeping it

stress can make any problem worse.

body, beta-hydroxybutyrate (BHB),

under control will always pay

in the cows’ milk.

dividends.”

“While a degree of mixing is

For further information contact Elanco Animal Health, Lilly House, Priestley Road, Basingstoke, Hampshire RG24 9NL. Tel 01256 353 131; fax 01256 779 510; email elancouk@lilly.com

DAIRY FARMER

JULY 2015

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New variety selection tion tool Clarity over issues such as the badger cull since the Conservative Party election victory has brought a sense of relief to many farmers, but uncertainty still remains over Europe.

MACHINERY RY

19-21

Election outcome brings relief and uncertainty to farming

Kit on show at Grassland sland UK

rEU membership now at stake

Limousins sins sell to 9,500gns 00gns

rBadger cull will carry on

By Alistair Driver THE Conservative Party election victory has a brought a sense of relief to many farmers in the form of clarity over key issues such as the badger cull, but also a degree of uncertainty over Europe.

By Monday evening, a triumphant David Cameron had re-appointed Liz Truss as Defra Secretary and George Eustice as Farming Minister as he put together his first Conservativeonly Cabinet and Ministerial team.

On Tuesday, a new face, Cumbrian MP Rory Stewart, was added to the Defra team, which otherwise brings much-needed continuity in areas such as the implementation of the Basic Payment Scheme.

United message At a post-election event at NFU’s London headquarters this week, which aimed to deliver a united industry message about the need for the new Government to prioritise food and farming, NFU president Meurig Raymond said he was ‘delighted’ to see Mrs Truss and Mr Eustice back at Defra.

He said the NFU and farming industry shared the Government’s ambition of ‘wanting to grow more, buy more and sell more

British food at home and abroad’ and urged the new administration to ‘champion British farming’.

While a Labour-led administration would have created huge tensions between farmers and Government over the party’s pledge to scrap the badger cull, the Conservative manifesto included a pledge to implement the 25-year TB eradication strategy in full, including culling badgers where disease is rife.

Mr Raymond urged the Government to make further roll out of the cull ‘a top priority’ and called for an announcement ‘as soon as possible’ on the next steps.

But while the Conservative’s pledges on red tape and adopting a science-led approach on issues such as Genetically Modified

crops and pesticides have also gone down well, there are two significant clouds on the political horizon.

One is the likelihood of further cuts to Defra from a Government still intent on austerity measures and the other is Europe.

The Government’s first Queen’s Speech on May 27 is likely to include a Bill paving the way for an in-out referendum on UK membership of the EU before the end of 2017, and even as early as next year.

Mr Raymond said the NFU would be mapping the advantages and disadvantages of EU membership in terms of the Common Agricultural Policy (CAP) and the single market.

“I would be nervous if they start

talking about repatriating the CAP in the re-negotiation talks,” he said.

CLA president Henry Robinson said his organisation would seek to ensure the new Government was clear about the implications for the rural economy of its policy on Europe.

Tenant Farmers Association chief executive George Dunn warned of an ‘uncertain few years ahead on the European question’, while NFU Cymru president Stephen James said Europe was the biggest issue for his organisation.

“We want to stay in Europe because Welsh farmers need CAP payments and access to the single market.”

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**DF July p22 23 Vets View_Layout 1 05/06/2015 12:35 Page 1

VET’S VIEW

VetTechs are starting to carve a worthwhile role for themselves between vet and farmer.

Ian Cure, director in Lambert, Leonard & May Farm Vets based in Broughton, near Preston, reports on how they fit in with his practice routine.

VetTechs are starting to make their presence felt ith the ever present pressure on farm margins, it has never been more important for farmers to account for all their expenditure.

I spent a morning last month huddled round a cup of tea chatting through calf health improvements as part of my Monday morning routine. At the start of winter, the farmer was more than keen to avoid repeats of the previous year.

W

Investment We had gone through his VetInvest report which analyses exactly where farmers spent their money from the previous three years’ invoices. The aim is to try and work with our farmers to make as much of their vet spend as possible an investment.

This comes from focusing on areas where there is a reactionary spend, such as mastitis and calf disease.

Then we try to put in place some prevention measures

22

DAIRY FARMER

JULY 2015

Disbudding calves is just one of the services offered by VetTechs.

which may be a change in behaviour such as parlour routine or on the calf management front, or may involve vaccination.

Whatever the changes over time we always refer back to them to make sure that these measures are delivering a return on that investment.

In this case, calf pneumonia and scour had meant a calf survival rate to weaning of only 63% over the winter. Last month I went to him and his calf survival rate for this winter was 96%. He was thrilled

with the results and his VetInvest showed he had done this without spending any more money. We had picked areas which needed changing and his spend went on more preventative medicines rather than treatments – a true investment.

Calf management One area where we have delivered huge improvements has been in calf management. The introduction of our VetTech service 18 months ago has really

revolutionised the youngstock rearing on many farms. They work alongside the farm vet in a team approach to improve farm health.

VetTechs are now appearing in more and more vet practices and I believe they have an important role to play in improving health and efficiency on farm. I took Sammy, our VetTech, to the farm and worked through a plan of how we were going to approach the problem. Some of it was management and the other was vaccination.

We are aware our clients are getting busier with less and less time to plan and organise effective health care strategies. Buying the best products to prevent disease is one thing, but making sure the right animals get their vaccines at the right time is quite another.

The service shortcuts this hassle and farmers end up with peace of mind that their animals are protected when they need to be. The farm in question had used vaccine in the past, but

**DF July p22 23 Vets View_Layout 1 05/06/2015 12:40 Page 2

VET’S VIEW They have an important role to play in improving health and efficiency on farm Ian Cure

“

openly admitted calves were batched together and often he would miss groups, which is not ideal when disease is circulating.

Vaccination help remains the mainstay of the VetTech activity, and many farmers have reported the service has proved useful in getting the job done at the right time with the right animals.

To maintain your herd’s health it is important to keep up-to-date with any vaccinations needed. The VetTechs will help to inject stock, select the relevant animals and bring correct vaccines prescribed by your farm vet. They will ensure suitable records are kept of the amount of vaccine used, the batch number, the expiry date and all individual animal ear tag numbers. A copy is sent out to you to include in your own records. Any second doses are

booked in automatically so you do not need to remember.

We are also finding farmers value extra help for those little jobs which come along once or twice a month, and that can mean their normal workforce is not tied up and not available for the regular workload.

VetTechs can be slightly more expensive than farm labour but where can you find highly skilled labour which can come and work just for a few hours a week?

Disbudding Our disbudding service is very popular as calves are done regularly at an early age which reduces the stress involved.

They always receive longacting painkiller and all this means there is no check in growth. The farmer in question hated dehorning and often left calves too long which meant it really checked them when he got round to it. As a result they often came down with scour and pneumonia after the dehorning session.

When efficiency is the key word, there is no better way to improve it than reducing how many animal losses and disease instances you sustain.

VetTech jobs Ian Cure says there are so many jobs VetTechs get involved with such as: rDisbudding rVaccination rMobility & condition scoring

rFaecal sampling rFly control utilising our novel fly parasites rKetosis sampling rTB testing admin rYoungstock monitoring – including weighing.

TechTalk

by Norbrook Invest in your adult dairy herd for productivity Previously it had been assumed that after exposure ϐ second grazing seasons, adult dairy cattle would have ϐ substantial enough to cause a problem.

However, a recent year-long abattoir survey has shown that between 83 and 100% of culled dairy cows are infected with gutworms1. Even though the burdens may be lower in adult dairy cattle than their younger naïve counterparts, they may still have a sizeable effect on productivity as a result of the exceptionally high demands placed on our highly bred UK dairy herd.

Laboratory tests are recommended to guide your decision on whether or not to worm your herd. This ϐ ϐ output required; this is especially important in light of the need for preservation of anthelmintics in the face ǡ ϐ dairy farmers.

A bulk milk sample can be taken to gauge the level of infection of gutworms in your whole herd, by measuring the levels of antibody to the gastrointestinal nematode, Ostertagia ostertagi.

High results have been associated with a drop in annual average milk production of up to 1.2kg/day2. The ϐ dramatic in those herds with a high antibody level when compared to those with a lower level, and these include: • Increased Dry Matter Intake by up to 1kg/ cow/day3 • Improved fertility i.e. 20% increase in conception ϐ 4 • Improved milk quality, with regards higher milk fat, protein and overall milk solids5,6 • Increased milk yields of up to 2l/cow/day7 A free bulk milk sample for gut worms is available from Norbrook Laboratories (GB) Ltd, manufacturers of Eprizero Pour On Solution. Please contact your vet or animal health advisor for more details.

1. Gross S J et al., The Veterinary Record, 1999, 144, 581-587 2. Charlier et al., Veterinary Parasitology, 2009, 164, 70-79 3. Forbes et al., Veterinary Parasitology, 2004, 125, 353-364 4. McPherson et al., AAVP, 44th Annual Meeting 1999 5. McPherson W B et al.,N Z Veterinary Journal, 2001, 49, 106-110 6. Kramer L H et al., WAAVP 17th International Conference, 1999 7. Reist, M et al., The Veterinary Record, 2002, 377-379

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**DF July p24 25 26 27 Youngstock_Layout 1 02/06/2015 14:04 Page 1

YOUNGSTOCK With ongoing herd expansion, the decision was taken to rear youngstock at home and this led farm manager Chris McDonald to look for new calf housing at Bays Leap Farm, Heddon-on-the-Wall, near Newcastle. Jennifer MacKenzie reports.

Meeting calf rearing target of larger herd reviously heifer calves had been contract reared off the farm from eight weeks of age, but rearing on-farm with the new regime focused on revolutionary accommodation.

The Roundhouse has brought comprehensive benefits in terms of the numbers of heifers reared, earlier calving at 23 months old and another income

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stream from finished cross-bred dairy heifers and steers.

Back in-house Chris McDonald, who has been farm manager since 1999 for the Mellstrom family at Bays Leap (the former Genus MOET farm), was looking at expanding the herd and bring the youngstock rearing back in-house.

The farm runs to 1550

The feeding area around the building gives animals plenty of space.

acres over two units, plus other parcels of land, and with a view to expanding the herd from 500 cows, sexed semen has been used successfully on cows since 2008.

There are 680 cows in the herd now with 70 dry, and with increasing numbers of heifer replacements, some second and third calvers are likely to be sold this year.

Last year 560 dairy and crossbred calves went through the Roundhouse, with up to 200 housed at a time.

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He says: “The existing calf rearing facilities weren’t up to scratch and with expanding heifer numbers I had to consider what was the best housing for them. Individual hutches were a consideration, but I felt they would be labour intensive and there may be difficulties in controlling disease.

“One of my concerns over traditionally designed rectangular new buildings was lack of ventilation. I saw beef cattle in a Roundhouse in May 2011 and I was sold on the building – the ventilation, the feeding space on the outside of the building and the handling with stock pens surrounding a central holding pen.

“Although the building I saw was set up for older beef cattle, I thought it

**DF July p24 25 26 27 Youngstock_Layout 1 04/06/2015 11:03 Page 2

YOUNGSTOCK

Calf jackets were trialled over the last winter.

Integrated eight cluster milking parlour in the transition cow Roundhouse.

would work well for rearing newborn dairy calves,” he adds.

Which was something of a first, as since the inception

By September 2011, the Roundhouse with a 30metre span and 4.2m to the eaves, was in use at Bays Leap, accommodating

of the building in 2006 there are now about 80 of them in the UK, but it is unusual for the design to be used for dairy calf rearing.

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calves from a day old to 12 months of age. Now, with further expansion of numbers, calves are in the building from a week old to

grow

**DF July p24 25 26 27 Youngstock_Layout 1 02/06/2015 14:05 Page 3

YOUNGSTOCK six months old and last year 560 dairy and crossbred calves went through it with up to 200 housed at a time.

“The building gives the animals plenty of fresh air and, as a result of the conditions, calf morality has been reduced from about 10% to 5%,” says Chris, who works closely with vet Jo Bates, from Farm Veterinary Services, in adopting a preventative approach to health management.

He says it is easier to rear calves of different age groups in the same building.

And it is easy to gather the animals for procedures such as castration and vaccination in the central pen and

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To provide a break from the weather, straw bales are stacked alongside the Roundhouse building.

stress is minimised as moving the calves simply involves opening a gate.

Roller shutters have been fitted and to give calves greater shelter from the cold

north winds, four-foot long plastic stock boards at 1.25m high provide a ‘hedge’ of protection.

A ‘top hat’ of green mesh has been put on the roof’s central ventilation chimney to restrict airflow, and this winter calves have been fitted with jackets. In anticipation of extreme conditions, straw bales are stacked alongside the building as an additional wind break.

Extra production Now heifers are calving at 23 months old giving an extra month of production which adds an average 30 litres a day per animal to milk sales to Arla. Increased milk sales have paid for the building within three years.

The shell of the building cost £55,000 in 2011 and the additional handling system, electrics and concrete brought the total cost to £150,000.

Mr McDonald is also

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hoping the reduced incidence of pneumonia will extend the cows’ production life by up to six months.

Previously, the herd was pedigree Holstein but now it is run commercially with most of the cows being bred to sexed dairy semen – Swedish Red or Dairy Shorthorn – and the remainder of the cows and maiden heifers going to the Beef Shorthorn.

All calves are now reared and the beef cross heifers and steers are finished onfarm at 18 months weighing 650kg and sold on the Morrisons scheme.

Other dairy-bred steers are also finished at 16-18 months old weighing 550600kg liveweight and sold through Carlisle mart.

The herd calves all year round and is milked three times a day through a 36:36 rapid exit parlour, and Mr McDonald’s aim is to maximise milk production which is currently averaging

**DF July p24 25 26 27 Youngstock_Layout 1 02/06/2015 14:06 Page 4

YOUNGSTOCK 10,000 litres a cow a year.

Such is his enthusiasm for the Roundhouse that a second building was purchased and erected in the spring of 2014 next to the first.

This houses the transition cows and also has an integrated eight cluster mini milking parlour. Attention to looking after the newlycalved cows and their calves is important, and the system ensures the newborn animals get adequate pooled colostrum and are then penned separately in the building for up to five days. They are fed milk after each milking through calf feeders with teats for the first week.

Access to feed Transition cows have plenty of access to feed in the troughs around the edge of the building. Once the calves are moved to the main Roundhouse, the freshly-calved cows are moved to another building close to the main parlour

and they are milked twice a day, rejoining the main herd once the milk can go into the bulk tank.

Once the calves are transferred to the original Roundhouse they join a pen of about 20 calves which have access to an igloo for shelter and they are trained on to an automated calf feeder.

They are then transferred into two pens of 60 calves after disbudding, and fed by a Volac parallel feeder which can supply four stations at a time.

The automatic feeders peak at six litres of milk a day. Pelleted feed is added to the diet from about 10 days old and at three weeks old they are moved to a third pen where roughage is added to the diet.

Weaning is by 70 days and the calves stay in the Roundhouse until they are six months old, by which time they have been vaccinated for pneumonia, IBR, BVD, leptospirosis and the male calves castrated.

Newborn calves have access to an igloo for shelter.

With pressure on numbers, Mr McDonald now plans to keep calves in distinct batches and limit pen numbers to 25-30.

This will allow for a thorough disinfection and steam cleaning of pens before new calves are introduced.

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**DF July p28 29 LE Milk Andersons_Layout 1 02/06/2015 14:10 Page 1

LIVESTOCK EVENT PREVIEW MILK With the current low returns and increasing volatility, what does the future hold for milk producers? Tony Evans, of Andersons Farm Business Consultants, gives us his view.

Cost control will be key to surviving tough times ilk prices are unlikely to rally any time soon, so with profits under pressure dairy farmers need to look hard at their own businesses to get through the current tough times. This is the main message from the Friesian Farm model which we use as a basis for our performance predictions.

Friesian Farm runs 150 cows and their replacements on a year-round calving system. The farm comprises 100 hectares, of which 40ha are rented on an FBT. The proprietor provides labour along with one full-time worker (plus casual/relief). Milk yields are in the range 7500 to 8000 litres per cow.

As can be seen in the table, we show the farm’s performance for the previous three milk years based on actual returns and costs. An estimate is given for the current 201516 year, and a forecast budget for 2016-17.

The farm made a small loss before support pay-

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Dairy farmers need to look hard at their own businesses to get through the current tough times.

ments in 2012-13 due to adverse weather conditions and lacklustre milk prices. But the difference between 2012-13 and 2013-14 showed the largest yearly swing in profitability that Friesian Farm has ever seen, thanks to lower costs and a much improved milk price.

During the 2014-15 year we saw the milk price fall sharply. However, because

prices were good at the start of the year, the average for the whole of the year is not as bad as might be thought. Variable costs have declined thanks to cheaper feed and fertiliser. This means that, overall, profits for 2014-15 are reasonable.

It is the current milk year where the effect of the milk price crash is really seen. In 2015-16, the farm

will be starting the year with a low milk price, and even if prices start to climb at the end of the year, the average is likely to be well down.

There will also be changes in support payments with the move to the BPS and the end of the ELS on this farm. The farm is again in a position where it requires support payments to break even.

**DF July p28 29 LE Milk Andersons_Layout 1 02/06/2015 14:10 Page 2

MILK LIVESTOCK EVENT PREVIEW Friesian Farm figures Pence per litre Milk Culls and calves Output Variable costs Overheads Drawings Rent and finance Cost of production Margin from production SPS / BPS (and ELS) Business surplus

2012-13 (Result) 28.8 3.0 31.8 16.7 11.5 3.1 1.5 32.8 (1.0) 2.2 1.2

2013-14 (Result) 32.4 2.9 35.3 14.7 11.3 3.1 1.6 30.7 4.6 2.2 6.8

Looking to 2016-17, it is forecast milk prices will have improved somewhat.

With low cost-inflation in the sector, this will return some degree of profitability to the sector.

Wide range It should be pointed out a single model business such as Friesian Farm cannot demonstrate the wide range of returns currently being seen on British dairy farms. With a difference in farmgate milk prices of 1012ppl, then the financial situation of individual businesses will be vastly different.

However, the low profits forecast for this year will place many businesses under cash flow pressure – especially if they have tax bills to pay from previous (better) years, or loan repayments to make after investing in their businesses. These cash requirements will be in addition to the trading costs outlined in the table.

So what should dairy

2014-15 (Result) 29.4 2.7 32.1 13.2 11.0 3.0 1.7 28.9 3.2 1.9 5.1

2015-16 (Estimated) 25.6 2.8 28.4 12.8 10.8 3.0 1.9 28.5 (0.1) 1.6 1.5

The efficient running of your business is the one thing that you can control Tony Evans

“ farmers do given the circumstances? Andersons suggests the following: ■ Work out how much profit you need to meet your cash requirements – this must be the short term target for the business.

■ Based on realistic projections, what is the gap likely to be between the target amount and actual performance?

■ How is this gap going to be bridged? Additional bank funding is one answer, but reducing costs to raise profits is a far better course of action.

Analysis has shown the level of a farm’s profit is determined far more by its costs than its income, so a

good starting point is as follows.

■ Compare your business against the top 25% operators of similar dairy businesses. Where are the big differences in costs?

Ask what are they doing that I am not? The areas with the largest differences should provide opportunities for the easiest gains.

■ Get quotes for products and services. Compare these to what were charged last year, and what other suppliers are quoting. The dairy industry is operating in a deflationary environment and there is no reason why prices should automatically rise. Indeed, in many

2016-17 (Budget) 27.5 2.8 30.3 12.9 10.9 3.0 2.0 28.9 1.4 1.5 2.9

cases they should be falling.

■ Perhaps set yourself a 10% challenge – try and reduce all costs by a set amount. You will not succeed in all cases, but the cumulative savings will soon mount up.

■ Challenge every item of spending. Some things may not be necessary.

Cost control It’s true that cost control may not be the most ‘sexy’ of subjects. A whole industry of suppliers and advisors has grown up to try and get dairy farmers to part with their money.

But the efficient running of your business is the one thing that you can control.

Remember, in tough times, low costs of production could be the difference between success and failure.

■ Andersons will be available in the Business Management section (Stand BM-157) at the Livestock Event to discuss how your dairy business can prosper.

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LIVESTOCK EVENT PREVIEW MILK

With increased milk price volatility, dairy farmers are being urged to accurately calculate their total average cost of production as a basis for making their management decisions. Promar’s Peter Brown considers how useful the figure can be.

Cost of production data is decision starting point here is no doubt that with increased pressure on incomes it is more important than ever to have tight control of costs, and this means measuring them carefully.

While it is impossible to predict future milk prices, a business can make decisions about cost of production (COP) and scale of business which can help mitigate some effects of price volatility.

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Assessing your farm’s cost of production is an important step before making decisions, says Peter Brown.

It is only by comparison you can make an honest assessment of your performance and identify where improvements can be made, and this requires farms to calculate COP in the same way.

Standard At present there is no standard industry recognised method of calculating COP which makes it difficult, if not impossible, to compare farms and identify strengths and weaknesses.

COP will vary from farm to farm for many valid reasons related to farming system, whether a tenant or owner-occupier, total enterprise mix etc.

Consequently there is a real risk decisions will be made to change business costs based on an invalid comparison and this could be detrimental to the whole business.

The other issue with COP is that, in isolation, it actually tells you little about how robust your business is. To allow

It is only by comparison you can make an honest assessment of your performance Peter Brown meaningful interpretation, COP needs to be assessed alongside total output. As it is calculated on a pence per litre basis, it is open

▼

Viability It is probably true that potentially the best measure to be used in assessing business viability is the total production costs, and many figures are being bandied around the industry for ‘average’ costs, ‘target’ costs etc. But there is a danger COP data can be misinterpreted.

For a management measure to have real value it must be accurate, calculated repeatedly and regularly, and allow meaningful comparison between businesses.

**DF July p30 32 Jul Promar_Layout 1 02/06/2015 16:34 Page 2

LIVESTOCK EVENT PREVIEW MILK â–ź

to variation purely as a result of changes in total production.

What really matters is whether the farm is able to meet its profit requirement which is achieved through a combination of milk output, milk price, cost of production and other income sources.

Profit Profit requirement is the return required to cover drawings, tax, repayments and investment.

It may be possible to achieve a low COP per litre on an extensive low input/low output system, but what if the farm is simply not producing enough output to meet the profit requirement? In this case, trying to address COP will not help achieve profit requirement. What is required is an assessment of ways to increase output.

Equally, if a farm is achieving a high level of output it can possibly exist with a higher COP as the business scale means it is able to withstand the costs

and still achieve the profit requirement. Or it may be possible to identify costs which can be investigated as they appear out of line.

The other concern is COP will vary year on year based on factors including total milk output, forage quality and quantity, the weather and general price inflation.

Therefore, to make sense of COP it is important to look at figures for several years to identify trends.

Working with clients with a range of herd sizes and systems, I recommend backdating COP calculations for at least three years to allow trends to be investigated and the impact of one-off events to be calculated.

Basis The basis for these calculations must be good management accounts to ensure all costs and income have been correctly identified.

Armed with this information, plus details on total milk output and profit requirement, we can

Assessing costs of production Calculating production costs can be of great benefit when making business decisions, but the following should also be kept in mind: rNo standard method Comparing with another farm’s COP is useless without knowing how it was calculated

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rSystemic differences Each farming system has different COPs rRelative importance COP is of most use when assessed alongside output rAnnual averages worth more Taking averages across years can identify effects of specific incidents

I recommend backdating COP calculations for at least three years to allow trends to be investigated Peter Brown

start to investigate COP in a meaningful way across the following five points.

In how many years of analysis was profit requirement achieved? If profit requirement was not delivered in a year, what were the driving factors which stopped you achieving it? Was it an increase in costs, a fall in price or reduced output?

At the current level of COP and output, what milk price is required to achieve profit requirement and how realistic is it to expect this price?

If the price required at current output and COP is unrealistic, we can look at combinations which would allow us to meet profit requirement at a more realistic milk price.

If variable costs are high, we can investigate ways to improve technical efficiency, although this does not necessarily mean cutting costs. More likely it will mean getting a better return on investment and

1

2 3

4

improving efficiency to reduce cost per litre.

For example, by spending more we might be able to improve forage quality to reduce boughtin feeds. Or by investing in OvSync programmes to get cows resubmitted for service quicker we can tighten calving, increasing milk and calf sales.

If technical performance is good, can we carry more cows to increase output and spread costs? Can we justify investment in facilities to allow a reduction in overheads and spread variable costs?

Currently, COP can be a useful business metric but it must be used correctly, which means paying careful attention to how it is calculated and how and where comparisons are made.

It is also important not to consider it in isolation, as injudicious cost cutting could have detrimental short and long-term impacts on the business.

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**DF July p34 35 LE Milk Powell_Layout 1 05/06/2015 11:38 Page 1

LIVESTOCK EVENT PREVIEW MILK As we become more dependent on global markets, the question is how do we go about competing in this brave new world. Ian Powell, managing director of the Dairy Group, gives us his thoughts.

Developing a strategy for survival in post-quota era he milk quota regime ended on March 31 this year after 31 years, but if you were dairy farming pre-April 2, 1984, it is hard to think back that far unless you have a very good memory. .

My recollection was the

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same issues existed then as today, but back then the Milk Marketing Board operated which provided a great deal of milk price stability through end use pricing.

So unless you have farmed outside the UK you will not have experienced a post-quota

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DAIRY FARMER

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Rolling UK milk price against average

Source: Nick Holt-Martyn, The Dairy Group

regime without a monopoly milk seller. The question is what will the business environment be like post-quotas, and what things can you do to manage your business?

The most significant issue will be managing milk price volatility, which most dairy farmers have already experienced over the past 18 months when we saw the average UK milk price falling by 7.9ppl (23%) from the peak of 34.2ppl in November 2013 to 26.3ppl in January 2015.

In the last 30 years the EU has provided a degree of market management through the quota system and intervention buying designed to maintain a protected internal market.

Over the last 15 years this

has been dismantled, such that over the last eight years the EU has operated with farm gate prices linked to, and now mostly driven, by the global market.

The UK is competing in a global dairy market and we can make a useful comparison of how dairy farmers in New Zealand view milk price volatility.

In New Zealand they are targeting their cost of production below the 10year average milk price in the belief not many in the EU can compete at that level.

The short term forecasts are at $NZ 4.50-4.75/kg solids against a longer term figure of $NZ 55.50/kg. Applying a similar approach to the UK

**DF July p34 35 LE Milk Powell_Layout 1 05/06/2015 15:15 Page 2

MILK LIVESTOCK EVENT PREVIEW milk price is shown in the graph.

Surprisingly, the one-year average and the three-year average milk price are the same at 30.3ppl, with the five-year average at 28.7ppl, the seven-year average at 27.6ppl and the 10-year average at 25.2ppl. The 10-year average covers the period which starts before the postintervention era of volatility in 2007, so is perhaps a less worthy indicator.

‘A&B’ prices by some milk buyers, which effectively sets a limit on the higher value ‘A’ volume.

Dairy farmers should be looking at their medium term budget (five year) to examine business viability, cost of production and where improvements can be made in business performance.

Many business accounts end in March, so now is a good time to review and benchmark business performance and to set out a strategy for success in the post-quota era.

Ian Powell: challenge of COP at 28ppl.

Viable Following the New Zealand example, forward planning would need the cost of production to be below the five or seven year level of 28ppl to ensure the business remains viable in the bad years (2010, 2012, 2015), with profits made in the good years (2008, 2011, 2014).

Lowering the cost of milk production down to 28ppl will undoubtedly be a challenge and is likely to involve block calving, significant use of grazed grass for cows giving under 30 litres, and feeding smarter through the winter months.

While the UK may enjoy its large domestic market providing above commodity milk prices, it will be under pressure from lower cost producers within and from outside the EU, for which the only option is to meet the challenge head on and compete to survive.

We should also recognise there is a 12ppl range in milk price between milk buyers, which is currently from 21ppl to 33ppl, and this will be a major factor in managing the business going forward and determining the challenge that individual businesses face.

While EU milk quotas have gone, we are seeing the imposition of

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**DF July p36 37 38 40 42 Milk Gold Cup_Layout 1 03/06/2015 12:42 Page 1

LIVESTOCK EVENT PREVIEW MILK

Six high performance contenders are on their starting blocks for this year’s NMR/RABDF Gold Cup final, and with such a strong field it looks set to be a photo finish. Who is your money on? To help we give you a brief run down on form.

Six top herds all raring to snatch the Gold Cup Judges

rThe six finalists will be judged by RABDF chairman, former Gold Cup winner and Lancashire-based Jersey producer Ian Macalpine, NMR Board member and Anglesey-based producer Trevor Lloyd, and 2012 Gold Cup winner from Worcestershire, Mike Miller.

Presentation

rThe winner of the 2015 NMR/RABDF Gold Cup and the runner-up, who receives the NMR Silver Salver, will be announced at 4pm on the NMR stand at the Livestock Event, NEC Birmingham on July 8.

Messrs Harvey, Dumfries JThis is the second year Messrs Harvey from Beeswing, Dumfries, are in the final. Brothers John and Stuart, with their mother Margaret, run the 208-hectare unit which supports a pedigree

Holstein herd of 322 cows and 340 youngstock.

A strictly ‘hands-on’ family, one member is always part of the threetimes-a-day milking team.

Stuart takes care of the herd’s nutrition, foot

**DF July p36 37 38 40 42 Milk Gold Cup_Layout 1 03/06/2015 12:43 Page 2

MILK LIVESTOCK EVENT PREVIEW NMR RABDF Gold Cup 2015 finalists – production details for year ending September 2014 Finalist

Neil Baker Brian Yates Messrs Harvey Fergus McDowall Arthur Palmer Philip Metcalfe

Qualifying lactations 988 204 278 175 317 667

trimming and fieldwork and Margaret is in charge of youngstock and calf rearing. John, with his background in the pharmaceutical industry, looks after all aspects of herd health and AI, and a team of five support the family.

Herd size has remained static for the past two years after a period of rapid expansion. In the

Yield (kg) 11,772 11,707 12,252 10,445 10,063 10,926

Fat (%) 3.62 3.97 4.15 3.90 4.02 3.58

year ending January 2015, 3.7 million litres of milk were sold to local buyer Lactalis from the all-yearround calving herd.

The Harveys pay particular attention to cow health. This starts with breeding strong cows with good width and feet, and it was the high yields that placed them top of NMR’s most recent annual production report.

Prot (%) 3.25 3.13 3.22 3.29 3.26 3.14

SCC ‘000/ml 126 109 104 126 171 196

CI (days) 385 405 399 384 402 392

Milk Freq 3x 3x 3x 3x 2x 3x

LDY Kg/day 11.93 13.28 16.18 12.60 15.52 14.91

Stuart (left), Margaret and John Harvey, on farm at Beeswing.

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LIVESTOCK EVENT PREVIEW MILK

“We aim to minimise the risk of disease,” says John, who follows a careful vaccination programme for BVD, IBR and leptospirosis and incorporates blood testing and strict calving and colostrum protocols

JFirst time entrant Fergus McDowall, from Kirkcudbright, Galloway, has impressed the judges enough to win a place in the final line up with his 850-cow herd, which is based at Rerrick Park, and managed with help from a team of 16 staff.

Creating a sustainable farming future for his family is at the heart of everything Fergus does.

The original family unit was ‘standing still’ with 180 cows and no space for expansion. So, in 2010, the McDowalls took a huge step and invested in a new greenfield site. “The plan was to expand to 400 cows, but the business went from strength to strength, which gave us the confidence to grow to the size we are today,” explains Fergus.

But he is not finished there. Plans are in place to expand the herd even further, with the construction of a new 200-place cow house set for later this year, which will swell herd size to 1050 milkers. “The 24:48 swing-over parlour

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into a Johne’s control plan.

Post-natal cow care is given particular attention.

“We want our cows to be as well prepared for calving and their lactation as possible so we give close up dry cows a full

DCAB diet and monitor blood ketone levels and urine pH fortnightly.”

Sand bedding They have also switched to bedding calving pens with sand rather than straw to

reduce infection risks – this has helped to bring mastitis cases down to 16%.

Post-calving, cows are given hypotonic fluids as soon as possible to replenish energy and salts.

will be running for 20 hours a day – just about taking us up to full capacity,” he says.

parlour routine, which includes pre-washing with a brush,” he says.

Keeping a close eye on the monthly cost of production analysis helps maximise efficiency for the ‘year-round’ calving herd, and profit for the business currently stands at 5.8ppl.

Together with herd manager Neil Graham the family works hard to maximise herd health and fertility. A number of KPI

targets are set and the percentage of cows in-calf at 100 days post-calving stands at an impressive 50%, and calving interval is 382 days. A nutritionist also visits weekly to assess the herd for condition score, cudding and dung scores.

Fergus is aiming for zero lameness with all cows routed through a footbath every day and the newest sheds have rubber matting in the feed passage.

Fergus McDowall, Kirkcudbright, Galloway

Parlour routine “We’re going to mirror the facilities that we already have – they suit our herd and system really well.

Mastitis incidence is low – 7.5% in 2014, which was just 56 cases in the herd.

And this is, in part, due to the sand-bedded cubicles and the comprehensive

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LIVESTOCK EVENT PREVIEW MILK

Brian Yates, East Logan, Castle Douglas

JThis is the second time Brian Yates from East Logan, Castle Douglas, has entered his 277-cow herd in the Gold Cup competition, having qualified in 2014 too.

Brian manages the herd with his wife Sheila, son Michael and daughter Anna, as well as herdsman Trevor Hough and general farm worker Leslie Craik.

A close look at his business reveals that it is attention to detail which has paved the herd’s way to success. Cows are housed all year round and fed a consistent TMR by

JThree times Gold Cup finalist Neil Baker from Haselbury Plucknett, Somerset, has increased herd size, boosted milk yields and improved herd health, particularly mastitis and fertility rates in the past 12 months.

Herd size has increased by 520 head to 1800 cows and with 55% of the herd being heifers, yields are currently running at just over 11,000 litres sold.

Cows are bedded on deep sand cubicles and housed year round, with the exception of in-calf heifers. “We calve the heifers at 23 months, and I just can’t get them big enough to serve at 12 months if they’re graz-

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monitoring it daily and benchmarking performance. “Changes can be made daily and even remotely,” says Brian.

Feed conversion efficiency stands at 1.63 litres per kilogramme of feed – the Scottish average is 1.34.

In-calf rate The herd calves all year round and its fertility figures are also eye catching. The in-calf rate 100 days post-calving stands at an impressive 65%, with just 3.6% of cows not in calf by 200 days.

“We monitor activity levels using pedometers and the technology in our Westfalia parlour, to help us identify heats

Neil Baker, Haselbury Plucknett, Somerset

ing,” he says. “Instead, we turn them out when they’re pregnant.”

Around 500 heifers are raised a year, but the aim is to increase this to 750 a year at the same time as reducing calving age to 22 months.

To improve herd genetics, he only selects bulls with a lifespan score of at least +0.2, with no poor udder traits, +500 milk yield and which

are cell count improvers.

Everything is inseminated using AI, with 57% in calf by 100 days.

Fertility “We are constantly trying to improve fertility, so we monitor submission rates (72%) and pregnancy rates (26%), and have a fortnightly vet visit,” he says.

He also scores cows’ transi-

efficiently, and we also have regular vet visits to pre-empt fertility problems and deal with any that we do get very quickly.”

Brian is also passionate about breeding. Brian and his son Michael enjoy showing their cattle. “Our cows are proof that you can breed cows with show type and functionality.

We’re looking for lifetime yields of at least 50,000kg of milk across five lactations and for cows that live long and productive lives in a cubicle-based system.”

tion success to monitor how well they come through the calving phase.

“We are averaging around an 80% success rate, which is the percentage of cows that calve without a milk fever, retained placenta, displaced abomasum, metritis score of three or four, or culling incident within 30 days of calving.”

Fortnightly mobility scoring and a rigorous hoof trimming programme have boosted the herd mobility score from 75% to 95% over the past five years. This year they have focused on mastitis, and have reduced it from 25.6 cases per 100 cows last year to 20 this year.

**DF July p36 37 38 40 42 Milk Gold Cup_Layout 1 02/06/2015 17:35 Page 5

LIVESTOCK EVENT PREVIEW MILK Arthur Palmer, Norbury, Staffordshire

JArthur Palmer’s 400-cow herd from Norbury, Staffordshire, is block calving with extensive use made of grazing to achieve average milk yields of more than 10,000kg.

“Block calving allows us to focus our management efforts and make full use of grazing and labour,” says Arthur. “We run an intensive system in winter and a New Zealand system in spring. This suits our milk contract which encourages autumn/winter production.”

Until 2006 this herd was 100% Holstein, but Arthur wanted cows better suited to his simple, grazing-based system and able to convert forage efficiently, so the

herd is now 30% crossbred.

Norwegian Red sires have been used on Holstein cows and Fleckvieh sires are used on crossbred cows to maintain hybrid vigour and produce a three way cross.

These will then be bred back to the Holstein.

JMaking its Gold Cup debut is North Yorkshirebased Metcalfe Farms, a family partnership run by brothers David, Brian and Philip, with retired parents John and Thora, and help from a team of 20 staff.

The herd has been expanding for the past four years, almost doubling from 550 head using a mixture of bought-in and home-bred replacements. Housed all year round and fed a TMR, the 900-cow herd is milked three times a day through the unit’s 32:32 rapid-exit parlour, which is running

for 20 hours each day.

The next step for the business, according to Philip, is installing a new rotary parlour – a 72-point Boumatic.

“This will offer us scope to increase cow numbers even further, possibly by an additional 300 or 400 cows, and ‘future proof’ the business.”

Crossbreds “Crossbreds really suit our system as they produce the milk without the problems.

Fertility is certainly better, with fewer days to first oestrus and a higher conception rate. Longevity has definitely improved. We have several cows in their sixth lactation happily giving over 10,000kg.”

Calf rearing is managed

Philip Metcalfe, North Yorkshire

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Heifer rearing All heifers up to 12 months old are managed away from the main farm at a specialised unit. And another unit takes them from 12 months through to calving at 24 months old. “Heifer

Arthur Palmer with calf rearer Sally Lea.

by Sally Lea. At five to six months old they go out to grass and are not housed again until they enter the milking herd after calving at 22 months old.

Calving begins in August, with most calved by October, and the milking herd is housed from late September. Arthur, along with his main herdsman Leszek and workers Eddie and Dan share the twice-a-day milking through a 30:60 parlour.

Turnout is usually in mid-

February with buffer feeding stopped once the grass growth increases, usually by the end of March.

Health and welfare management is a priority for Arthur, who sells milk under a Tesco contract. Mobility scoring picks up problem cows and they have a routine monthly foot trimming visit. The herd is routinely vaccinated for IBR, BVD and leptospirosis. Calves are screened for BVD and cows screened for Johne’s.

rearing is a job in itself and requires an organised – almost regimental – approach,” says Philip.

Diversifications on-farm include a haulage business, a lorry and repair workshop and an anaerobic digester, as well as two other ‘dairy’ business that include agricultural contracting and

pedigree Holstein sales.

Selling surplus stock from the pedigree Washfold herd also helps with cashflow. Philip is looking for longevity when selecting sires, aiming for age at first calving of 22 months, at least five lactations and a lifetime daily yield of more than 25kg.

**DF_07_P43_DF_07_P43 05/06/2015 11:01 Page 2

Proven dispersal systems

Tried and tested Roto Rainer range Mono progressive cavity pumpsets Specially adapted irrigation booms

See our systems at the Livestock Event 8-9 July

visit www.briggsirrigation.co.uk or call Adrian Colwill 01536 260338

JULY 2015

DAIRY FARMER

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**DF July p44 46 Breeding LE _Layout 1 02/06/2015 17:37 Page 1

LIVESTOCK EVENT PREVIEW BREEDING

Breeding newcomer hosts speakers

JRecently launched breeding company Mastergen will be at the Livestock Event for the first time and will feature a series of presentations on its stand.

Somerset vet and fertility specialist Sally Wilson, from Evolution Farm Vets, will talk about advances in dairy cow fertility (Wednesday), explaining why certain practical measures are so important to achieving good reproductive performance.

Improved range and functionality

D

Theme The Thursday will have a German theme, with Dr Matthias Riedl from Masterrind focusing on the cooperative’s breeding programme.

Carsten Hoops, also from Masterrind, and Steve Ford from RM Cattle Imports will describe the selection and import process for heifers coming to the UK. There will also be special show offers for semen orders placed through the company’s website on the day – said to be the first in the industry to offer genuine e-commerce. rStand GE29

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DAIRY FARMER

airymaster has extended the capability of its heat detection aid with the launch of MooMonitor+.

This increases the system’s operational range to 1km, adds the identification of feeding, rumination, wellness, resting and restlessness to its existing heat detection function, and additionally extends the collar battery life to 10 years.

These changes represent a substantial increase in functionality over the existing MooMonitors and will allow farmers to monitor cattle at pasture or in remote sheds.

The more advanced electronics mean a signal can be received at a lower strength and where a second base station has been needed in

JULY 2015

the past, in many cases only one will be required.

Cloud storage As with the existing MooMonitor, an accelerometer is used to detect the various new parameters and there is no storage of data or software on the farm’s computer. The cloud storage is said to have the security of internet banking and allows the farmer to access real

Viking talks hoof health

JViking Genetics will be hosting a healthy feet workshop during the Farm Health Planning Seminars at the event, and will be focussing on how to improve lameness and hoof health through breeding.

Hoof specialist, Dr Evgenij Telezhenko, will not only describe how the industry works together and

pools data from foot trimmers together with other industry information for use in the calculation of indexes, but will also reveal some surprising breed trends. Results from more than 500,000 cows/year from Jerseys, Holsteins and Reds will show the breeds do not always perform as expected. rAnimal Health Zone

time herd information either from the farm’s computer or from anywhere in the world. This can be done through a smartphone or other mobile device with a secure log in, and there is no limit to the number of devices which can access the farm’s system. The smartphone can also be used to swipe a cow’s tag and immediately see her records.

Payback The cost for 100 cows is around £15,000 and the payback through better health and fertility is said to be two years. It is available through both Dairymaster UK or as PinPoint through Cogent.

Alternatively, it forms part of Cogent’s Precision Reproductive Solutions where it is available for a monthly fee with no up-front cost. rStand MK247

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JULY 2015

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**DF July p44 46 Breeding LE _Layout 1 02/06/2015 17:37 Page 2

LIVESTOCK EVENT PREVIEW BREEDING

Genetic report for heifers

JDairyCo has extended its Herd Genetic Report to youngstock, which will now be included in this web-based service. The report will include each heifer’s genetic index for all production traits as well as fertility, cell counts, lifespan and Profitable Lifetime Index (PLI).

Norway’s focus on health traits rossbreeding specialist Geno UK will be highlighting the increased emphasis on health traits in Norway’s updated Total Merit Index (TMI) for the Norwegian Red breed on its stand at the Livestock Event.

The TMI, which was revised in June 2015, increases its emphasis on health traits other than mastitis, whilst maintaining the importance of fertility and milk production.

This means in addition to ketosis, milk fever and retained placenta, the index will also include traits reflecting fertility-related disorders such as the health of the cow at calving and heifer health.

Udder conformation also increases in importance

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Group averages Group averages will identify areas of genetic progress and an inbreeding co-efficient will help prevent the narrowing of a herd’s bloodlines. The report is available for any milk recorded herd at no charge. To obtain your own herd’s report, visit the DairyCo website or the stand at the Event where you will need your milk recording number. rStand AH116

Easier sire selection JVisitors to the Semex stand will be able to use the SemexWorks program which is a tablet-based app which will shortlist the best bulls to help producers meet economic and breeding objectives. Said to be essential in an environ-

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ment where such a high number of bulls are on the market, it is also available on-farm through Semex representatives and indicates a customised return on investment for the farm’s chosen sires. rStand GE46

Norwegian Red sire Retain is in the top 10 of the breed for health, fertility and calving ease.

from 15% to 18%, which is intended to encourage suitable udder conformation for automated milking systems.

With 40% of cows milked through a robot, Norway leads the world in the proportion of cows milked through automatic systems.

Most of the weighting within the udder index is now directed towards keeping the udder at the appropriate height and keeping the teats placed correctly for robotic systems.

Milk production remains unchanged in the index at 28%, while beef performance also remains static at 6%.

The increases in health and udder conformation have been achieved through small reductions of emphasis in other traits, including mastitis, cell

counts, temperament and milking speed.

The overall effect for the Norwegian Red breed is expected to be a continued increase in milk production alongside an overall improvement in the breed’s health.

“The revised weightings for the Norwegian Red certainly meet the demands of the UK dairy industry,” says Wes Bluhm, managing director of Geno UK. “UK producers are typically looking for improved health and fertility without compromising production.

“And many are appreciating the financial advantages of a herd of healthy, trouble-free cows that can produce high milk yields in a range of systems, and that can also produce a valuable beef calf,” he explains.

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LIVESTOCK EVENT PREVIEW FORAGE & GRASSLAND

New additive for aerobic stability new bacterial silage inoculant has been added to the Ecosyl range which is said to give four days of extra stability compared with untreated silage, and to reduce the risk of yeast and mould growth.

Called Ecocool, the additive features a new strain of Lactobacillus buchneri developed to give better aerobic stability, as well as the globally recognised Lactobacillus plantarum MTD/1, designed to improve fermentation and reduce dry matter losses.

Available for low volume application, it will meet a growing demand for this type of product

A

from large scale farmers and contractors.

“Aerobic stability is becoming an increasingly important issue since many farmers are making higher dry matter grass, cereal and maize silages,” says Derek Nelson from manufacturer Volac.

“During the last five years, average forage dry matter has increased by 5% according to our own analyses of silage taken on

200 farms. Also, with many more farms bufferfeeding or housing cows all year round, the risk of aerobic spoilage is considerably higher.”

The company says if silage is allowed to heat, every 4 degC temperature rise equates to a dry matter loss of around 18.5%.

At a value of about £132 per tonne (for maize silage), a loss of this magnitude due to heating would represent a loss of around £24-worth of every tonne.

Ecocool is available in two versions: Ecocool Grass for grass and legume silage and Ecocool Corn for maize and wholecrop. rStand FF213

Three phosphates in one fertiliser JThree different types of phosphate have been combined into one granule to create a fertiliser which, its manufacturer says, will provide short, medium and long term availability to the growing crop.

Called Multiphos, the product contains monocalcium, di-calcium and

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DAIRY FARMER

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tri-calcium forms of phosphate alongside trace elements, and is said to have an efficiency of use of 75-80%.

This is claimed by the firm to be greater than any other single fertiliser product and notably better than other phosphate fertilisers such as triple superphosphate (TSP),

which is around 30% efficient.

Manufactured by Fertium Expertia UK, it is suitable for use on acid to neutral soils and is said to represent a far more costeffective way of delivering phosphate and other minerals to animals than through feed. rStand FF238

Keep track of your fencing unit

JThe ease with which electric fencing units can be stolen has been addressed by Rutland Electric Fencing. Its new products are two models of GSM smartphone controlled energisers which can be remotely switched on and off, tracked in the event of theft or even remotely destroyed so they can never be used again.

Automated text messages also indicate if the fence is working, broken, or subject to low voltage or a power cut.

Tom Royall from Woodstream Europe, which owns Rutland Electric Fencing, says an immediate notification when a fence is not working is invaluable to farmers, while the facility to switch off a fence without returning to the power source is labour saving.

The cost is £720 + VAT for the mains unit which powers up to 100km of fencing, or £375 + VAT for the 12 volt version for up to 46km of fence. rStand AH126

Micron Bio WP_Micron Bio WP 05/06/2015 10:25 Page 1

**DF July p50 F&G New prods_Layout 1 05/06/2015 12:14 Page 1

LIVESTOCK EVENT PREVIEW FORAGE & GRASSLAND

Avoid losses from spoilage in clamp osses from aerobic spoilage or silage heating is estimated to be costing farmers about £150 million a year.

Good clamp management both during filling and feeding out is the most cost effective solution, according to Volac’s Shirley Heron, who will be on the Volac stand in Forage and Field.

There are some tips that she advises farmers follow: ■ Prepare the clamp well, use full length side sheets.

■ Ensure forage is spread in even layers in the pit, no more than six-inches deep, and consolidate as you go – two tractors on the pit is money well spent.

■ Ensure packing tractors

L

Losses from spoilage are estimated at about £150 million a year.

have narrow wheels to give maximum compaction.

■ Ensure chop length is adapted to dry matter – above 2ins for forages below 20% DM, 0.5-1ins above 30% DM. ■ When packing, try to keep the top saucer shaped so tractor wheels can compact properly at the walls, important for reduced shoulder waste at feed-out.

■ When finished seal

quickly but well. Ideally use a thin oxygen barrier sheet on top, then pull the side sheets over and finally the top sheet.

■ Weigh down the top sheet with touching tyres or use a heavy tarpaulin with gravel bags along edges.

■ If problems persist after following these recommendations then an additive may be the solution. rStand FF2013

On-board real time silage analysis

JFeed consistency is one of the key factors in dairy herd rations and also for the operation of anaerobic digesters.

Greenforage’s new onboard analyser NIR PrecisionFEEDING system performs a real time NIR analysis on each load of silage from the pit.

Dry matter content, protein, crude fat, ash, ADF,

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DAIRY FARMER

JULY 2015

NDF and other elements are detected, and the system uses this information to interact with the feed mixer or anaerobic digestor to adjust the recipe accordingly.

It can be installed on the bucket of the front loader, on the shear grab telescopic handler, on the scraper rake of a self propelled machine, or directly on the feed mixer.

Accuracy of the system is assured thanks to the calibration curves, developed

by Italian company Dinamica Generale, from thousands of readings.

In addition the initial verification involves matching the initial readings of the system with wet chemistry analysis of the same samples. rStand LE315, Hall 20

Effect of compaction JA three-year DairyCo research project has been investigating the impact of both tractor and animal compaction on soil function – estimated to affect 70% of grasslands in England and Wales and potentially costing up to £250/ha in lost productivity every year.

Data so far has indicated first cut silage yields can be reduced by more 20% due to compaction.

Results of tests on sward lifting and spike-slit aeration at units at SRUC Dumfries, Harper Adams University and on four farms across England have shown good improvements in both soil structure and drainage in the project in conjunction with the British Grassland Society.

Aeration can be a much more cost effective option to re-seeding at around £500/ha if the sward is healthy with up to 70-80% perennial ryegrass, says AHDB’s Debbie McConnell.

However, aeration resulted in significant yield losses immediately afterwards if carried out at the start or during the growing season.

Further research is looking at the potential of reduced traffic systems in grassland with tramlines for tractors and GPS systems. rStand FF207

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LIVESTOCK EVENT PREVIEW HEALTH & NUTRITION

Strategy for calf rearing

veryone wants to help you rear your youngstock and they will be at the Livestock Event to tell you precisely how.

From Trouw Nutrition to Volac, and MSD to Cargill, they have all launched systems to put you on track and help stem the losses from sub-optimal performance.

Each is built on the broad assertion better growth of dairy heifers leads to more milk, and each targets 24 months of age at first calving at the requisite maturity and weight.

E

There will even be the UK’s first live calf rearing demonstration at the event, hosted by the Royal Association of British Dairy Farmers (RABDF) and sponsored by De Laval.

Showcasing a range of calf housing and feeding systems, it includes igloos, specialist buildings such as Roundhouses, and there will be seminars from leading specialists.

With so many companies targeting your youngstock, there will be no excuse to let rearing standards slip. rRABDF calf demonstrations will be on the apron outside Hall 17.

Vets lead MSD’s youngstock plan

JMSD Animal Health’s youngstock campaign is to be led by vets to help farmers prevent ‘alarming youngstock losses’.

Called Keeping Britain’s Youngstock Healthy, the initiative is described as a long-term education programme focused on disease prevention.

It is supported by an educational website (www.healthyyoungstock. co.uk) with practical video content and e-newsletters giving topical youngstock management advice.

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About 50 veterinary practices will participate in the first wave, with more ready to sign up in the autumn.

They will use refractometers to detect the passive transfer of immunity to calves, and colostrometers to check the quality of colostrum.

MSD’s Alfredo Sanz Moreno says: “We have made it our mission to reduce the risk of illness to the 2.4 million calves born in Britain every year.” rStand GE60

The event will feature the UK’s first live calf rearing demonstrations.

First nine weeks is focus for LifeStart

JTrouw Nutrition’s LifeStart programme is focused on the first nine weeks of life, a growth opportunity which must not be missed, the company says.

Ruminant specialist Georgina Thomas says calf management sets the cow’s metabolism and helps determine productivity.

The programme requires the use of a LifeStartapproved milk replacer, available through specified feed compounders.

Advice is built on five ‘critical control points’ of cleanliness, colostrum, comfort, calories and consistency, and draws on the company’s research.

This found every extra

gram of growth in the first eight to nine weeks equated to 3.5 extra litres at the first lactation.

High growth rates were dependent on high intakes of milk replacer which Trouw says should be mixed at a rate of 150g per litre and fed at 900g/day.

Ms Thomas says: “Some worry calves would scour, but our research gives us confidence replacer can be used at high levels.”

She says this is because compounders will adhere to its ‘formulation matrix’ which covers the replacer’s physical properties, protein content, amino acids, fat levels and raw materials. rStand FF199

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HEALTH & NUTRITION LIVESTOCK EVENT PREVIEW

Cargill looks at ‘forgotten’ months at grass

JCargill tackle the whole rearing period in their Nurture Calf and Heifer Programme which will be launched at the Livestock Event, including a focus on the ‘forgotten months’ – the grower phase when the heifer is often turned away to grass before it goes to the bull.

The programme will be channeled through the feed supply, with merchants delivering the package.

Launching their training arm, the Nurture Academy, the firm aims to identify weak links and tailor a response based on each farm’s assessment and targets. A score card will be completed with the farmer,

and be regularly revisited and updated.

Using the company’s own model, the scheme aims to achieve growth rates of 750-800g/day and 95% of body weight at first calving.

Guidelines Cargill’s calf and heifer specialist Bianca Theeruth says: “Having targets is not really useful until we tell farmers how to achieve them,” adding that feeding and management guidelines will be identified for each of seven phases.

These are colostrum feeding, pre-weaning, post-weaning, grower,

Cargill’s scheme looks at seven growth stages, says Bianca Theeruth.

puberty, pregnancy and close to calving.

“The programme allows producers to work with advisers to take out the weak links in the system,” says Ms Theeruth. “The aim is to make the impro-

vements to achieve – or maintain – an age at first calving of 24 months with healthy, mature heifers which realise their lifetime potential in the milking herd.” rStand AH162

Volac system aims for two year calving JVolac’s Feed for Growth will be launched at the Livestock Event and is described as an ‘educational platform to help farmers raise better cows’.

Including an online calculator and a set of technical guides, the programme seeks to create a tailored plan for every user.

This includes having individual farm objectives, tracking performance and continually reviewing it to ensure each animal is on target to reach puberty by nine months, first breeding by 13-14 months, with

conception by 15 months.

The online calculator sets growth targets and the level of feed required.

With its strong focus on calving from 23-25 months, the company’s Niall Jaggan points out that 22.5% of live-born heifers fail to make their first lactation, while a staggering 60% fail to make lactation three.

“This is knife-edge economics,” says Mr Jaggan, adding that breakeven does not occur until mid-way through the second or third lactation.

The Feed for Growth programme sets objectives for individual farms.

“This is about bringing feeding right into line with the developmental stage of the animal,” he says. “We do not agree with the terminology ‘accelerated

growth programme’. It is about a biological optimum.” rStand FF213 and at the calf rearing demonstration area.

JULY 2015

DAIRY FARMER

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LIVESTOCK EVENT PREVIEW HEALTH & NUTRITION

Feed combination lifts DM intakes and yields lltech has launched a new feed ingredient which combines two of the company’s existing products, Optigen and DEMP. Called Rumagen, the product comprises a source of non-protein nitrogen and a high quality protein which includes the full complement of amino acids required by the lactating cow.

Particularly intended for use in the transition cow, it is said to boost microbial growth in the rumen whilst allowing the amino acids required by the cow to pass into the hind gut.

This is said to boost dry matter intake by 1-2kg/day and increase peak yield by up to five litres/day.

The extra production is sustained through the lactation, giving an overall increase of up to 1300 litres per lactation.

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Fed for around 20 days before and 30 days after calving at a rate of 300g per day, the cost for this period is £31/cow. This is said to

result in an extra £342 value of milk, giving a net return on investment of around 10:1, or £311. rStand BM181

Extra long footbath for more hoof immersions

JHoofcount has extended its range of footbaths to include a 3.7 metre version which is said to be the veterinary recommended length, and allows an average of three immersions per hoof for every cow pass.

The Hoofcount Excel also incorporates sloping stainless steel sides which are bolted in place as well as a narrower bath, resulting in less solution used and lost.

Like its shorter predecessor, the bath is manufactured from stainless steel and counts the number of cows passing through.

Once the pre-set number of cows has used the bath, it is automatically emptied, washed and refilled with water and chemical.

The cost of the footbath is £6000-£7000 including installation. rStand AH124

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HEALTH & NUTRITION LIVESTOCK EVENT PREVIEW

Blue clay shoes to tackle lameness

JPainting blue clay shoes on to dairy cows may seem an unlikely approach to lameness but health care company, EcoHoof, say it is an effective and nonhazardous means of managing digital dermatitis.

The clay-based product, Blue Clay Shoes, is applied to the hoof where it dries and acts as a poultice, both penetrating small wounds and acting as a barrier to further infection. While the active ingredients are said to remain at the site for two to four days, the blue surface coating flakes off and degrades within around 12 hours.

Active ingredients include zinc oxide and tea tree oil, which the company says will control those secondary infections involved in digital dermatitis which lead to pain and lameness. They recommend the product is used as a preventative measure after routine foot trimming. A 1kg tub treats 150200 hooves and retails through merchants at ÂŁ15. rStand LE319

iPhone app to help identify pathogens

JiPhones users now have a means of instantly measuring somatic cell counts and the main mastitis-causing pathogens using an app and device attached to their phone.

The Dairy Quality Inc system measures milk samples from cows or quarters, or the bulk tank, and is said to deliver results with 97% accuracy.

The measurement is taken using the iPhone camera in conjunction with a lens in the attachment and a dairy quality slide.

The system will allow a history of infection to be built up over time and help with the target use of antibiotics.

Results can be downloaded into an Excel file. The system is currently only available for the iPhone 4, 5 and 6, although it is being developed for other makes of phone.

The price of ÂŁ1692 includes VAT and delivery. rStand AH149

JULY 2015

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**DF July p54 55 56 58 H&N_Layout 1 04/06/2015 11:31 Page 3

LIVESTOCK EVENT PREVIEW HEALTH & NUTRITION

Cubicle mattress on a roll one-piece roll of cubicle matting is to be launched

by Kitt Kraiburg which is said to offer softness, easy installation and optimal hygiene.

The Wela Longline is supplied in a 25-metre roll and gives a cubicle length of 1.83 metres, a thickness of 4.5cm and a ‘sink-in’ depth of 3cm.

Made from top quality vulcanised rubber, the company says it will not

integrated slope means that liquids run off and three fixings per bed are countersunk for a clean finish.

The Wela Longline comes with a 10 year manufacturer’s warranty and costs about £120 per cow place. rStand OS368

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compress over time and offers the same level of comfort for many years.

A ‘pebble’ textured surface is designed for comfort, slip-resistance and

ease of cleaning while sealing lips at the rear edge coupled with a neat closure profile at each end of the roll ensure minimal soiling gets under the cover. An

Optimising dry cow management JElanco Animal Health has branded the 90 days around calving with its own trademark and dubbed it ‘The Vital 90 Days’. Developed to draw attention to the crucial period from 60 days before to 30 days after calving, the company describes this as

a ‘health platform’ which ‘takes transition cow management to the next level’.

Crucial Designed to minimise negative energy balance, ketosis and immune suppression during this crucial period, the platform is

launched with an at-aglance Health Start Checklist for farmers to work through with their vets.

This includes examining cow condition, environment and feed, as well as other areas of management. rStand AH138

Amino acid to boost efficiency

JA rumen-bypass methionine, Ruminox, has been launched by Kemin UK. It contains a combination of GMO-free soyabean and Smartamine M, a rumenprotected methionine which is said to be one of the most limiting amino acids for lactating dairy cows.

Supplying individual amino acids is said to improve nitrogen efficiency and reduce nitrogen loading on the environment as well as improve animal performance. rStand FF226

Teat sealant for drying off with shorter nozzle

56

JA new teat sealant has been launched by MSD Animal Health which can be administered using either a short or long nozzle, potentially avoiding the risk of damage beyond the teat canal.

Called Cepralock, the sealant is designed for use

DAIRY FARMER

JULY 2015

at the time of drying off, either with or without MSD’s dry cow antibiotic. Providing an inert barrier, it is said to significantly reduce the risk of bacterial infection during the dry period.

The launch of Cepralock is being accompanied by an extensive dry cow ther-

apy training and support programme for vets and dairy farmers, which includes correct administration and removal of sealant.

Cepralock is available in packs of 24 or 120 tubes from veterinary practices. rStand AH142

**DF July p54 55 56 58 H&N_Layout 1 04/06/2015 11:34 Page 4

LIVESTOCK EVENT PREVIEW HEALTH & NUTRITION

Pre-mixed calf milk is warmed at time of feed low-cost heat exchange unit for warming milk just as it is delivered to calves has been launched

by Pyon Products. The Heatwave Milkwarmer allows milk to be mixed once daily, stored cold in a bulk container and heated on de-

mand as it is drawn through the warmer by the calf.

Either milk replacer or whole milk can be used and the milk temperature can be set at 20-39degC. Each unit includes teats and teat bars for fixing to the pen and feeds up to 30 calves.

A

Two feed lines give the option of feeding different products to two pens and equipment is included for daily cleaning.

The cost of a unit is ÂŁ385.

It is available through the Pyon Products website or Wynnstay, with further distributors to be announced. rStand AH100

Mini swing brush for calves New pour-on solution

JDeLaval has introduced a mini swinging brush for use by calves which is a scaled down version of its popular cow brush.

The mini brush is heightadjustable to accommodate calves of different sizes, and automatically activates when an animal comes into contact.

Free swinging and able to operate at angles of up to 45-degrees, it can be installed on a wall or post. rStand MK253 and calf rearing demonstration area

JA new pour-on solution for use against internal and external parasites has been launched by Virbac.

Containing the active ingredient eprinomectin, Neoprinil offers protection against gut and lungworms, mange mites, sucking and chewing lice, flies and warbles. It has no requirement for milk withdrawal.

The product is administered using the award-winning Farmpack and Flexibag, which comprise a ruck-sack style bag and an

inner collapsible lining. This is not only said to combine easy application with freedom of movement for the farmer, but also allows the product to be kept for up to 12 months after first opening, with no special conditions for storage.

It is available in 2.5L, 4.5L and 8L packs. rStand AH166

Remote management for computerised calf feeding

JVolac has added a mobile phone, tablet or laptop monitoring system to its Urban CalfMom Lifestart computerised calf feeder, allowing farmers to remotely monitor and manage their calves’ nutri-

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tion and performance.

The program not only enables milk quantity, temperature, time and speed of drinking for each individual calf to be downloaded and permanently stored but also

allows the farmer to remotely adjust the feeding system.

CalfMom LifeStart will also provide a remotely delivered daily health evaluation enabling sick animals to be detected at

the earliest opportunity.

The system is not to be confused with the LifeStart brand launched

by Trouw which has been independently named. rStand FF213 and calf rearing demonstration area

**DF_07_P59_DF_07_P59 05/06/2015 12:19 Page 2

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**DF July NEW p60 61 H&N Cubicle beds_Layout 1 05/06/2015 11:55 Page 1

LIVESTOCK EVENT PREVIEW HEALTH & NUTRITION

Cubicles must be kept dry to reduce mastitis oisture poses the biggest health risk to cows lying in cubicles, and with cows spending up to 14 hours a day lying down, the impact of the cubicle environment on mastitis levels is hugely underestimated.

That is according to vet and dairy consultant Neil Howie who says cubicle management is a job which

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He stresses it is the environmental coliforms which can occur in damp bedding which pose the biggest risk to an increase in mastitis.

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It is important to observe cows and their behaviour in the cubicles Neil Howie

“ “If the bedding is of an organic material and it gets wet, the bugs will grow in it – simple as that.

“The bugs most commonly found in damp bedding are E.coli and Strep uberis, particularly if straw or other organic material is used. Klebsiella is often found in sawdust bedded cubicles.”

Mr Howie says a small amount of moisture, whether it comes on to the bed with the bedding or is delivered by the cows, will desiccate by air-drying if the bedding is not too deep and there is good ‘grooming’ of the beds.

“But if that only happens when the bedding is too shallow to fulfil the other comfort requirements – or does not happen and moisture is allowed to build-up – it is an issue of cubicle bed management that needs to

be tackled urgently.”

With rubber mats, he believes they are too often considered to be doing the sole job of providing comfort.

Misunderstanding “That is a fundamental misunderstanding of the purpose of the mat. There has to be something on top of the mat – and enough so that the mat can’t be seen.

“And if there is a fear by those who apply only small amounts of bedding that more bedding will increase the risk of a build-up of disease, then they have a design problem with the bed.

“But it is equally important to find out what it is about the bed design which is causing the problem.”

There continues to be wide debate over the depth of the bedding used on cubicle beds.

Mr Howie says: “The

**DF July NEW p60 61 H&N Cubicle beds_Layout 1 05/06/2015 11:58 Page 2

HEALTH & NUTRITION LIVESTOCK EVENT PREVIEW rock-solid, when she pushes herself up with her back feet, she sets her feet at 45-degrees to the ground so she can push on the whole of the surface of the foot at that angle.”

Keeping cubicles dry is vital in controlling mastitis levels.

question is how much bedding is needed for the cow to lie on comfortably and yet also enable her to bear her weight on the surface and give her the grip and security she needs to stand with confidence.

“That should be the

benchmark, but to achieve it, it is important to observe cows and their behaviour in the cubicles.”

Mr Howie urges farmers to watch how cows stand up when out grazing. “If you see a cow stand up in a field, unless the ground is

Trauma “If you have got a hard mattress-type bed and they try and do that they actually end up using their toes. So in terms of causing trauma to the foot, it is important to watch what cows actually do to stand up in your cubicles.

“When cows stand up a lot in cubicle beds it is probably because they realise it is too painful to get up once

they’ve laid down,” says Mr Howie.

He admits he is not a big fan of the ‘total summer cleanout’ of cubicles that so often happens when cows are turned out to grass.

“Using a steam cleaner with the best of intentions of getting cubicles really clean can be a waste of time and effort. It drenches the cubicles and as soon as the cows return they’ll bring the bugs back with them.

A cow building is not a sterile environment and never will be.” rMr Howie will be available for discussion at the Envirosystems stand at the Livestock Event.

World Premiere

**DF July NEW p62 H&N Worms_Layout 1 05/06/2015 13:18 Page 1

LIVESTOCK EVENT PREVIEW HEALTH & NUTRITION

Mid-season worm check

he industry steering group Control Of Cattle Worms Sustainably (COWS) is reminding dairy farmers to be proactive and monitor cattle for any signs of worm infections – and in particular young stock destined for 24-month calving.

Dr Andy Forbes, COWS technical representative and honorary professor at the Glasgow Vet School says: “Replacement heifers should be at 65% of their mature body weight by the

T

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DAIRY FARMER

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time they are 15 months old to be able to meet the industry target of calving down at 24 months.

“For each week this 24month target is extended, we can look at an average additional cost of £1171 per 100 cows, and this is a cost to the business which can be easily avoided.”

June and July – typically eight weeks after turnout – is when worm pasture contamination will be building to levels which are more likely to cause clinical or sub-clinical disease. If a worm management prog-

For Holstein and Friesian heifers, I would expect an average DLWG of between 0.7 and 0.8kg per day Dr Andy Forbes

“ ramme has not been implemented, this is when youngstock could be at a greater risk from the impact of worm infection.

Dr Forbes says there are two checks which are useful to perform around eight weeks after turnout – first take at least 10-15 dung samples and have these screened by your local vet.

“When the average egg count is greater than 200, it is likely cattle are at a higher risk of clinical disease, and there is higher pasture contamination,” he says.

Dr Forbes adds that cattle should be weighed at the same stage after turnout to determine average daily live weight gain (DLWG) and ensure they are on target.

“For Holstein and Friesian heifers, I would expect an average DLWG of between 0.7 and 0.8kg per day, and perhaps a little more for larger framed animals. When this falls

below the set target, or a loss of body condition associated with ill thrift is seen, this may also highlight the need to implement worm control measures using anthelmintics.”

Growth rates “Continuing to monitor growth rates throughout the grazing season, ideally at monthly intervals, will identify if and when worm control measures need to be actioned, and highlight if previous treatments have been effective,” he adds.

“And by using a weigh crate or weigh band, farmers can determine an accurate live weight which can be cross checked with the product label to ensure an exact dose is given.”

Seeking advice from your vet or suitably qualified person (SQP) will also help ensure the worm control programme fits the needs of your farm.

**DF July p64 66 68 New Prods Machinery_Layout 1 04/06/2015 11:38 Page 1

LIVESTOCK EVENT PREVIEW MACHINERY A number of companies have chosen this year’s Livestock Event to launch new developments in their product range. Here is a round up of some of the highlights.

Bigger machine for zero grazing rish firm Zero Grazer is adding a new model to the top of its range of machines, with the launch of a new 56cu m version.

The ZG100 model incorporates a 2.45m disc cutting bed, and is equipped with twin axles shod on 710mm-wide radial tyres which can be run as low as 10psi.

The maker, who reckons to have over 300 machines working throughout Ireland, says the new model should suit herds of 200+ cows, and complements its existing 13-50cu m models.

I

The chassis is constructed with high tensile steel, with corner gussets added throughout to increase strength and reduce overall weight.

In addition, a unique square frame rocker bogey

is said to aid machine stability when in the cutting position.

The floor is gearbox and motor controlled, driven by four chains with variable speed discharge.

Improvements claimed in heat detection

JNew from DeLaval is Herd Navigator, a dairy herd management system said to boost heat detection rates when compared with current heat detection aids, such as activity meters. It also provides forewarning of mastitis before it can affect milk, as well as early indication of metabolic disorders before actual symptoms are visible.

The system provides an improved overview of the whole herd, while

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providing information on individual cows, claims the maker.

Its focus areas include reproduction, udder health and feeding, and the system

uses sophisticated biomodelling to provide analytical results which then indicate cows that are in heat, in-calf or have reproduction disorders.

Walk-through feed station from Holland

JThe design of Dutch company Hanskamp’s new walk-through feed station allows cows to walk in at the back and go out through the front, meaning that not only can the cow protect herself with her head, but both feet and legs are less stressed, claims the firm.

An added benefit is a lower rank cow feels safe and comes forward to eat, according to Hanskamp.

The system works by ensuring both front and rear gates move upwards once a cow is ready to leave the feed station. The back gate rises more slowly, thus ensuring the cow can leave the feedstation safely by the front.

The design allows the cow to leave by a straight exit with no hinges or other obstacles on the inside, preventing possible injury.

Each cow keeps in contact with the herd, making redundant the need to train new heifers to use the feedstation, as cows are able to see how the system works.

Kubota WP_Monsanto WP 05/06/2015 15:17 Page 1

**DF July p64 66 68 New Prods Machinery_Layout 1 04/06/2015 11:39 Page 2

LIVESTOCK EVENT PREVIEW MACHINERY

New app for training

JFarmers and agricultural workers attending DairyPro training can now download an app to their phone which will be scanned on entry to the event.

The app dispenses with the need for a membership card and will ensure attendance at the training is officially registered, allowing members to accrue points.

The app is said to be the first step in providing more electronic support for training, and will be extended to prompts, reminders and a record of point balances on the DairyPro register for professional development. rStand BM181

Cowcoon is designed for comfy cows

ilson Agri has introduced the Cowcoon cubicle made from polyethylene and steel, following four years of development, including two years of trials at Liverpool University.

The lower part of the stall partition is made from polyethylene, which acts as a shock absorber and alleviates stress on both the front mountings and the cow.

The polyethylene rail yields with the cow – moving by one or two inches in either direction – and is said to reduce lesions and bruising on cows’ backbones to zero.

The cubicle is designed for superior cow comfort, welfare and longevity, and UK farmers who have in-

W

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and stress-free animal access. Priced at £4500 + VAT, the Red 5 is said to offer similar performance to more expensive crushes, while the Red Q, designed for hydraulic operation from one

JA steel safety cage and platform to protect operators from falling into the slurry tank has been launched by Northern Ireland farmers, Alan and Colette Martin. The Slurrysafe fixes to the concrete wall of a slurry pit and allows the operator to safely agitate and extract slurry. rStand SI298

Pump range for sand-laden slurry

stalled the Cowcoon cubicle as part of the trial have reported longer lying times, reduced lameness and higher production.

The cubicle design is based on the company’s existing C50, with the addition of a second neck rail for added strength. Prices range from £59 for headto-head to £83 for a floormounted single row.

Cubicles come with a fiveyear unconditional warranty. rStand OS386

Tipping foot-trimming crushes

JTwo new foot trimming crushes will be launched by Rosensteiner. Both the Red 5 and the Red Q allow the cow to be tipped for trimming while the whole side opening is designed for easy

Safety cage

central switchboard, is priced at £10,000 + VAT. rStand LE327

JKitt Agri is introducing a range of slurry pumps to complement its separator and sand recovery technology. Designed to handle sand-laden slurry, the E-series pump range – manufactured by US market leader Daritech – is designed to handle a wide range of pressures and flow rates. Running on three-phase power and built from heavy galvanized plumbing tubes and mounting hardware, the pumps have been designed for ease of installation and maintenance, and have interchangeable components.

The most popular 7.5 horsepower model is priced at £9000. rStand OS368

**DF July p64 66 68 New Prods Machinery_Layout 1 04/06/2015 11:39 Page 3

LIVESTOCK EVENT PREVIEW MACHINERY

Kart for easier calf feeding ew from JFC is the Milk Kart, designed to ease calf milk replacer mixing and feeding. With a capacity of 170 litres, the Kart can accommodate a full bag of milk replacer for the feeding of 60-80 calves in

N

one trip, says the company.

The pumped dispenser is

powered by a rechargeable battery which has the ability to empty the tank 10 times in one charge, with a recharge time of 8-12 hours.

A flow meter on the nozzle allows the user to visually measure the amount of milk dispensed to each calf.

The kart has a twist-on lid to minimise spillages and

Monitoring fence performance

Software caters for multiple herds in different locations

JSoftware specialist Sum-It has expanded its Dairy Enterprise software to cater for multiple herds in different locations with the launch of its new Remote Parlour Apps.

They are said to allow its Total Dairy software to be centrally controlled, communicating with a wide

range of systems either locally, by wi-fi or across the internet.

Parlours which are remote from the farm office can therefore still be linked to the firm’s Total Dairy software by using the apps to send actions or pull across milk yield figures without being constrained

contamination, and castor swivel wheels for ease of manoeuvrability, while four-ply wheels are said to make for easy movement on rough terrain. The rear wheels are fitted with brakes.

Prices start at £334 plus VAT, with a smaller 125litre option available.

by having the software on the same PC as the parlour system.

The same applies to linking with heat detection software and feeder systems.

JThe Rutland GSM Smart Phone Control Energiser instantly alerts users via text message when there is little or no voltage in the electric fencing system.

It also allows users to turn the power off on request so the fence can be moved or adjusted without returning to the power source to switch it off.

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3 YEAR

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**DF July p70 71 72 Finance COPY COR_Layout 1 04/06/2015 11:42 Page 1

LIVESTOCK EVENT PREVIEW FINANCE Despite the current milk price and the prospect of increased volatility, banks are still keen to do business with milk producers. Peter Hollinshead talks to Oliver McEntyre, Barclays’ agricultural specialist, about what these loans are being used for.

Demand for investment loans despite low prices ow, in the 12 months since we last met it has been a pretty torrid time for milk producers – how has that impacted on your business?

You’re right, Peter, it has been a difficult 12 months for milk producers and there’s no doubt the volatility in the market is proving a challenge for some. As a result we are seeing an increased demand for working capital to help our customers through these difficult times.

N

And that working capital is mostly to keep the books balanced month-to-month rather than for large investment sums for expansion?

We’re still seeing quite a lot of expansion actually – I’ve recently visited farming businesses which are looking to expand by increasing herd size and investing in infrastructure, but at the other end of the spectrum there are people who, for whatever reason, either because the cost of production is higher or perhaps they’re on a different milk contract, are

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experiencing a much lower milk price and are coming to us seeking capital repayment holidays and perhaps an increase in working capital.

Is there something fundamentally contradictory about people wanting to borrow more money when the industry is in such a plight and the outlook may not be too great for the immediate future?

I think the long-term outlook for the dairy sector is excellent. We are constantly told world population is increasing and demand for dairy products is going to go up by just shy of 2% year-onyear. As I’ve told you many times before, Peter, we like to take a long term view of the industry, despite it suffering short term price pressures.

Has the removal of quotas, or the prospect of it, fuelled a new desire to expand?

It has obviously lifted the lid on the ability to expand, but the biggest thing I would say to those looking to expand is that anyone thinking of going from say 150 to 300

cows must make sure they have a market for that milk and your milk company wants to buy it off you.

Which is proving somewhat difficult at the moment because buyers are not looking to recruit, and in many cases we have got A and B restrictions or quotas, so it is difficult to know where that extra milk will go?

Yes, that’s why it is crucial for any producer wanting to increase their herd size to make sure they have a buyer for that milk and the purchase price is a price they can afford to produce it at.

But no-one really knows what that purchase price will be. When we have increased volatility and we

are more dependent on global markets it is difficult to know when you are on an up cycle or down cycle, and when the industry will return to some reasonable profitability?

It is, but in a volatile market you get troughs and peaks, and when you hit that peak price then is the time to either invest in infrastructure, pay down your debt, pay down the working capital on your overdraft, or set some aside for when the market goes against you.

Following on from that, with the low prices

**DF July p70 71 72 Finance COPY COR_Layout 1 04/06/2015 11:42 Page 2

FINANCE LIVESTOCK EVENT PREVIEW enduring from last spring, have you had many people default on repayment or fail to service their loans?

What we would say to all our customers, and anyone else, is if you feel you haven’t got enough working capital to see you through the next 12 months then sit down and work out what you need and talk to your bank early.

I’m intrigued by your reference twice now to working capital – of the money you put out to dairying in particular over the last six months, what percentage has been for working capital and what percent for investment in buildings etc?

Of the requests in the last six months we have seen more for working capital than before, as some farmers realise their cash flow is going to be tight, but overall I would say the capital we put out for investment far outweighs the amount we put out for working capital.

Okay, how much more or less business have you done this year than last year?

The Bank of England shows the total facilities to UK agriculture from all banks in the UK sits at £19.3 billion, and that figure tends to go up 8% year to year, and our lending is up 11% to the whole of UK agriculture.

Presumably you will want to lend to owner-occupiers

as much as they wish for with the security of a charge over the farm, but how do tenants go on in such volatile times?

I’m aware there is a focus and interest in the industry regarding lending against deeds. What I can say is that at Barclays, the original business plan is important as a first tool to demonstrate the viability of the idea. For any customer experiencing difficulty, the next step would be to speak to us as soon as possible to develop a long term plan. We are happy to support tenant farmers who can demonstrate good management skills and a track record, as serviceability of the debt is key in any lending decision.

But if things did go wrong and you lent to tenant farmers you don’t have that security to fall back on, and banks are very loathe to put themselves in a vulnerable position?

Yes, but it is up to us as a bank to lend responsibly and lend comparative to the risk involved and the ability of a business to service debt, with a little leeway to ride the volatility we see in the agricultural markets at times.

Let me pin you down on that – what per cent of your clients wanting money for investment would be owner-occupiers and what per cent would be tenants

Lending for both working capital and investment is increasing.

as new applicants in the last three-four months?

UK farming as a whole is made up of about 80% owner-occupiers and 20% tenant farmers, and our book roughly represents that split nationally.

What specifically is your lending to the dairy sector?

We can’t give you that.

Okay, is your lending to the UK dairy sector increasing or decreasing currently?

It is increasing at the moment – our overall debt to agriculture is up 11% yearon-year and we are seeing money being lent to the dairy sector in the UK in a similar proportion.

With the trend to larger but fewer dairy farms, the requests you are handling must be larger – how true is the old saying if you owe the bank £1 it is your problem, but if you owe them £1 million it is the bank’s problem?

We lend responsibly on the basis of our customers’

ability to pay us back, so we stress test those figures against fluctuations in milk price, feed price, fertiliser price, and fluctuations in interest rates.

So if you owe us £1 or £1m, that loan has been tested against all sorts of variables which gives the bank and our customers the faith that serviceability can be met.

So are you saying you don’t fight shy of the big loans which you may be looking at now for some of these big producers, even though some may be tenants, and you are still happy with the security that offers?

If we are happy with the management ability of the people borrowing the money and the people running the farm, and we are happy with the security package, then we don’t fight shy of debt whatever its size.

Alright, in practical terms what are your current best offers on both fixed and variable rates?

JULY 2015

DAIRY FARMER

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**DF July p70 71 72 Finance COPY COR_Layout 1 04/06/2015 11:43 Page 3

LIVESTOCK EVENT PREVIEW FINANCE Fixed rates at the moment are still very reasonable as you would expect, with base rate at 0.5% – you could probably entertain a fixed rate of somewhere around 5.5% over 10 years, and on the variable rate you are probably looking at somewhere in the region of 3.5%.

What would most of your clients be going for?

You see a mixture and again it is down to management and personality – it depends on whether you are of a more cautious disposition and wanted to mitigate that risk, or were highly geared.

We do see customers asking for fixed rates with the insurance their repayment is not going to change.

Right, let’s move on to the Livestock Event, where you are principal sponsor again – the banking sector is a competitive sector and you must be as keen as anyone to do business with agriculture. Do you see that as a particular opportunity to

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have exposure to that sector and hopefully business ensues from that, or is it more a flag waving exercise?

We want our customers and those within the industry to know we are there and we are supporting agriculture. By bringing thought leadership and our expertise we hope to bring value to attendees to these events. If we see new business from being at events like the Livestock Event so much the better.

Let’s turn our attention to the future if we may – what’s the bank’s view of the future of UK dairying?

We have a very positive view – six months ago the sector wasn’t looking as bright as it does now. We are getting told the milk price will lift towards the end of the year and as I said global demand is projected to grow just short of 2% year-on-year into the future, so we have a positive long-term outlook not just for dairying but the whole of UK agriculture.

We would all like to have the confidence things will return to a better place in due course but for some people they have to see through the difficult times now, and unless there is some positive indication of things getting better it is difficult to lift that feeling of despondency in the industry, isn’t it?

It is, and dairy farming is hard work and to go out

there and milk cows if you are on one of the lower end contracts, and to sell milk you know you are going to lose money on, means it is exceptionally hard to stay motivated.

Do you find the industry is split into two parts on the lines you allude to – that is those on dedicated contracts may be up at 30p, where those with milk going into the more general market place may be on 20-22ppl.

Do you find that among your clients?

Yes, and all points in between. Only this week I have been on a dairy farm where the price was 29.8ppl and on another where the price was 21ppl.

Specifically money is cheap relatively speaking, and the Bank of England’s Mr Carney seems in no rush to lift interest rates – how long does Barclays see this cheap money going on for?

I’m afraid we don’t do projections on interest rates.

One reason I asked about your view of the future is that of the exchange rates and particularly the euro.

This has collapsed from about 90p a few months ago to nearer 70p, which makes our exports expensive and imports cheap, yet the projection is it will be around at that rate for some time to come. What is Barclays predicting?

Barclays Investment Bank is predicting the euro will continue to weaken as we go through 2015.

Which puts the industry in an even more precarious position, does it not?

It does in a way, but they are predicting any weakening will be at a far slower rate than we have seen previously.

What have they got in mind for it going down to?

Barclays Investment Bank reports the euro is currently 71p – looking ahead, it will hit 69p by the end of 2015, going down further by the end of Q1 2016 to 68p (previous forecasts were 71p and 70p respectively).

The other pressure is a decline in the Basic Payment Scheme – which is often the difference between profit and loss on some farms – does this worry you at all?

Reductions are predicted to be anything between 815% which is income a lot of farms can ill afford to lose.

However, when put into the context of the whole farming business, a reduction of the CAP income should be able to be countered through efficiencies in trading.

Finally, what are you projecting for milk prices for the rest of the year?

I can see the milk price rising at the end of the year and that continuing into 2016.

**DF_07_P73_DF_07_P73 05/06/2015 13:35 Page 2

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JULY 2015

DAIRY FARMER

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**DF Jul p74 Donovan_Layout 1 02/06/2015 15:50 Page 1

WORKSHOP TIPS

WORKSHOP tips with Mike Donovan

This month Mike Donovan shows us how to make our own workshop built sprayer.

Home-built sprayer for behind the ATV eaders may well remember some previous creations by Nigel Whitcombe and his ATV trailed sprayer is as ingenious as any forerunner.

He built it because the standard ATV sprayer which mounts on the rear carrier has a boom which is too narrow and a tank which is too

R

P TOP ThIelps the

ttery rA bltaernator andly so a low rges s discha achine can the m k all day wor

small. They also significantly change the centre of gravity of any ATV, making it less stable on slopes.

What he needed was a lightweight, inexpensive machine which was stable and could cover three or four acres before returning to the yard, and he looked no further than the trailer towed by the ATV. Nigel decided his trailed machine should be powered by the bike’s alternator to cut out the cost of an expensive independent engine, and he opted for an electric Shurflow pump which both

The trailer can be converted back to its original use as an ATV transporter, but the sprayer stays in place throughout the summer.

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The machine is made from all spare parts except for the new Shurflow electric pump and added tractor battery.

sucks and blows. This means he can fill the 60gallon drum from a big water trough using a clean water hose.

Seriously hot It didn't take many hours of use for him to realise the pump was too big for the ATV electrics, and the bike's battery became seriously hot as did the alternator itself. So he acquired a good condition tractor battery and he wired both pump and alternator to it. The battery helps the alternator and discharges slowly so the machine can work all day, and then the battery is trickle-charged overnight.

The four-metre boom has

nine nozzles and folds vertically, and also has horizontal hinges which provide a break-back when it is driven too close to a hedge or fence.

The booms have a spring-loaded chain which pulls them back into position. Boom height is not so variable and is normally set at 24in for his grass work, but can be raised by changing the hole selection.

About Mike

r Mike is a machinery columnist offering tips on building or modifying farm equipment. Sign up for his free newsletter at www.farmideas.co.uk

BFA WP_BFA WP 05/06/2015 12:08 Page 1

Awards

British Farming 2015

Chateau Impney Hotel, Droitwich Thursday 15 October, 2015

Celebrating the creative thinking, innovation and dedication of Britain’s farmers

,,

It’s a privilege being among this special line up of top efficient farmers. My greatest thanks goes to the judges, they did a splendid job, and to everyone involved in seeing our business progress in the last few years and driving my enthusiasm for efficient milk production

,,

Thomas Irwin, Mull of Kintyre, Argyll Dairy Innovator 2014

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DF_07_P76_DF_05_P64 05/06/2015 10:36 Page 22

DAIRY FARMER

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GOOD EVANS

GOOD Evans

My grandchildren think I should be Prime Minister This month Roger Evans contemplates what he would do if he were PM, regrets he didn’t get out of First Milk earlier, and finally wonders why the plough isn’t digging in.

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e moved to a new milk buyer on April 1.

A lot of people were surprised when we gave notice to First Milk (FM) last summer. But the reasons were quite obvious to me.

When prices were going up it lagged well behind so it seemed likely to me that when they went down again it would lead the way. It was the market which was leading FM rather than anything it was doing itself.

This price disparity was something I could no longer afford. I could see clearly there was no strategy or investment to add any value to my milk which was then in what was called a liquid area. And finally I knew if I didn’t move soon there would be nowhere to go. I could see all this in the summer of 2013 and I should really have gone then.

Twelve months delay has cost me dearly. If FM is to be saved then radical decisions will have to be made. It is in an area of the country, from the west of Scotland to the Midlands of England, where they don’t want milk, and its pricing mechanisms spell that out clearly.

This has put the FM members in those

W

JULY 2015

area in a disastrous position, yet they have invested as much cash per litre of milk in to FM as anyone else. FM was created so farmer directors were always in the majority on the board. Nothing has happened at FM since the AGM of 2013 which they haven’t agreed with.

Quite why they are all still there is beyond me.

Good idea My grandchildren think I should have been Prime Minister. I think it’s a good idea. The more I think about it the more it appeals to me. I’d be a sort of Clint Eastwood cowboy Prime Minister, righting wrongs wherever I should find them. I’d try to make everybody happy, but with the proviso some people are only happy if they have something to moan about. So I would cater for them as well.

The adults in my family, come to think about it most of the adults I know, think I should be the President of the National Sarcasm society. I find this very appealing as well. I think I could do both jobs at the same time.

At the end of April we had a biggish area, big for us, of fodder beet and kale to go in. If you remember it was dry then

**DF Jul p78 79 Evans_Layout 1 05/06/2015 15:21 Page 2

GOOD EVANS

Most of the adults I know think I should be the President of the National Sarcasm Society

“

and the ground we were on had been grazed (turnips) during the winter and was hard to plough. My job was to be with the power harrow, but they had my tractor spreading fertiliser. Incidentally, I noticed I’m not allowed to scrape very often either, but I thought it was because the grandsons liked doing it, which is fair enough, but I’ve found out it’s because wooden cow kennels are difficult to weld.

Ploughing problem Anyway, the plough is doing a very good job, considering, and as I am waiting for a tractor, I decide to go for a ride on the one doing the ploughing.

However, we soon develop a problem because the plough starts ‘floating’ out of the ground, so sometimes we are barely scratching the surface.

Naturally, we try all sorts of adjustments but nothing seems to make much difference. But we do notice it’s much more of a problem going downhill.

So Stephen decides he will just plough uphill for an hour to see if he gets onto better ground. He’s not best pleased because the field is more than 40 acres, so this involves a lot of empty running about. As he is a bit grumpy I go home for my tea.

What is puzzling me is why the ploughing was fine and then suddenly it got worse? When I go back after tea, he’s ploughing up and down fine. I’m interested to know what’s happened. So he tells me that because I have bad knees he had lowered the tractor suspension so the step was not so high for me to climb aboard, and he forgot to put it back to the normal working height.

So when he did remember, decent ploughing was once more the order of the day.

Naturally all the time wasted ploughing one way was my fault. “Bet you won’t put that in Dairy Farmer.”

No, and I won’t tell them in the pub either!

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**DF Jul p80 Finance _Layout 1 05/06/2015 11:37 Page 1

FINANCE The annual tax on enveloped dwellings (ATED) was introduced in 2013 as part of a package of measures to make it less attractive to hold high value UK residential property through a ‘non-natural person’ (NNP). Sam Kirkham takes us through the detail.

Property tax net starts to widen

“

The main exemption from ATED for farmers is where the dwelling is a working farmhouse

reviously this ATED charge had only applied to properties valued at more than £2 million, but from April 1, 2015, the lower limit has been reduced to £1m and will be reduced further to £500,000 from April 1, 2016.

The ATED net is widening and will now catch many more properties which are owned by companies or corporate partnerships. A NNP includes a company, a partnership with a corporate partner or a collective investment scheme.

There are some reliefs available to reduce the tax payable to nil, but a return must still be filed to claim the relief, even if there is no liability.

The main exemption from ATED for farmers is where the dwelling is

P

Expert opinion rAll property owners should review their specific circumstances where a company is involved in any way in the business and a residential property is owned or leased.

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a working farmhouse – but the working farmhouse exemp-tion is strictly limited by several conditions: ■ The farmhouse must be attached to the farmland concerned, and not remote from it.

■ The farmhouse must be owned by the NNP carrying on the farming trade, or be owned by an NNP who is connected to the person carrying on the farming trade.

■ The dwelling must be occupied by a farmworker, or former long-serving farmworker, or the surviving spouse of a farmworker or former farmworker. The term ‘farmworker’ is narrowly defined, requiring the individual concerned to have substantial involvement in the running of the trade or in the direction/ control of the conduct of the trade. HM Revenue and Customs (HMRC) interprets this as requiring that the individual must spend at least 20 hours a week in these activities, although it remains to be seen whether the courts will agree with this. The guidance issued

by HMRC makes it clear it intends to look very carefully at contract

farming arrangements.

Other exemptions include when the dwelling is let commercially to an unconnected party, or is held as trading stock (and is not occupied by a connected party), or if the dwelling is occupied by an employee who has less than a 10% interest in the company.

With the reduction in the lower limit, ATED might be problematic for many farmers where a company or corporate partnership owns or leases dwellings.

Care will need to be taken where companies have valuable secure tenancies over residential properties.

The rules may mean the value of a leasehold interest in property tenanted by a company, or partnership with a corporate member, should be aggregated with the freehold value held by the landlord, if the two are connected. If the aggregate value is over the limits then an annual return should be submitted and a tax charge may be due.

Once again, the ‘gentleman farmer’ is likely to come under suspicion if HMRC rejects his farming status for the purposes of the working farmhouse exemption.

DF_07_IFC_IBC _Layout 1 05/06/2015 15:48 Page 1

E Expertise xper tise at your farm gate yo our far m ga atte Local farm managers s Outstanding results s Tailored solutions

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