**DF Oct Cover_Layout 1 18/09/2015 10:17 Page 1
DAIRY October 2015
FARMER
Cowmen Comment On-farm update from Rosemary Collingborn Pages 8-9 Volume 62 Issue 10
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**DF Oct p1 Leader_Layout 1 18/09/2015 13:57 Page 1
LEADER
a word from the
W
EDITOR
hatever you may think of protests, they do seem to be getting results as FFA warrior David Handley eases himself into more of those company boardrooms. Last month there were a few extra pennies from the retailers for liquid milk and this month Tesco and Morrisons have found a bit extra for cheese. Although there was some controversy as to who should receive the Tesco supplement, it now looks as if First Milk has decided to distribute it to Haverfordwest suppliers only. On top of the UK’s action we have seen unprecedented scenes in Europe with up to 6000 farmers demonstrating in Brussels. In response, the EU conjured up a £300m emergency fund, with about £25m heading to the UK. Just how much will come dairy’s way is anyone’s guess right now. Estimates say it could amount to around 0.17ppl, but remember don’t feel too much guilt about it as it isn’t
Contacts
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really new money – it actually originates from super levy fines. Despite this, desperation is increasingly setting in as can be seen from the latest RABDF survey. Half of all milk producers can see themselves quitting the industry if the situation doesn’t improve soon, it says. So are there any signs things are getting better? Well, the crucial Global Dairy Trade auction, which determines sentiment, has increased again this week, by a whopping 16.5%. Okay, it is from a desperately low base, but it is a sign of positive progress and hopefully heralds the long awaited turnaround. But let’s not get ahead of ourselves, as the GDT SMP is only delivering a price of 13ppl. So there’s still a long way to go!
Account Manager Mark Jackson 01322 449 624, mark.jackson@briefingmedia.com
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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.
OCTOBER 2015
DAIRY FARMER
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**DF Oct p2 3 Contents_Layout 1 18/09/2015 09:38 Page 1
THIS MONTH
CONTENTS october Volume 62 Issue 10
Rose veal
Youngstock
How one South Cumbria producer is maximising herd production by rearing bull calves for rose veal
Comment
4-6 8-9 14-15 70-71
Latest news Cowmen Comment Potter’s View Good Evans
Regulars 18-22 60-62 66 72
Breeding Milk Prices Workshop tips Finance
28-32
Irish dairying
Special feature
24-27
The Irish dairy sector’s ambition to grow output by 50% by 2020 makes it an industry to be watched with some trepidation
2
DAIRY FARMER
OCTOBER 2015
**DF Oct p2 3 Contents_Layout 1 18/09/2015 09:39 Page 2
THIS MONTH
Event report
UK Dairy Day
Now in its second year, crowds caught up on the latest thinking and saw some top quality stock on display
DIY parlour
Workshop tips
66
52-56
Death & taxes
Finance
Sam Kirkham offers advice on Inheritance Tax
This month, Mike Donovan looks at a home-designed fast throughput parlour
72
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DAIRY FARMER
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**DF Oct p4 5 6 News_Layout 1 18/09/2015 10:19 Page 1
NEWS News in brief Organic mozzarella
JGrowing global demand for organic cheese has seen farmer owned co-operative OMSCo (Organic Milk Suppliers Co-operative) secure new export contracts. Its latest export initiative has led to a partnership with privately-owned and independent cheese producer Dairy Partners, to produce organic mozzarella for the US market. Production has already commenced at Dairy Partner’s Carmarthenshire plant, with a planned 800 tonnes of manufacture in the first year. Managing director Richard Hampton says: “Our organic mozzarella launch is really positive news for the UK dairy industry and illustrates the international opportunities for British organic dairy products.”
Dairy exports fall
JThe value of UK food and non-alcoholic drink exports has fallen again, by 5.3%, to a total of £6 billion for the first six months of the year. Figures from the Food and Drink Federation show exports to the EU dropped 7.5%, with strength of sterling to blame. Dairy exports were particularly hard hit, some £157m and 20% down to £619m. Of that, cheese exports – the third biggest food export category after chocolate and salmon – dropped 5% to £220m.
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DAIRY FARMER
Retailers offer some relief for short term
F
ollowing pressure from Farmers For Action, and in an unexpected move, Tesco has said it would be rolling out its TSDG Cost of Production price across its British own label mild cheese and territorial range until the end of February. Farmers supplying First Milk and South Caernarfon Creameries will benefit, and will get 29.93p for the amount of their milk sent to Tesco. But Irish farmers, who provide milk for the retailer’s Value range, lose out. However, although some wanted the Tesco money
applied across all FM’s suppliers, it now looks as if the co-op has decided to distribute it solely to its Haverfordwest Tesco suppliers.
JFollowing extraordinary scenes of mass farmer protests in Brussels, where 6000 farmers reportedly took part, the EU has, among other measures, pledged additional funding to assist farmers. UK farmers will receive just over €36 million, about £26.4 million, under the EU aid package agreed last week. Following a meeting with EU Agriculture Ministers in
Brussels, Agriculture Commissioner Phil Hogan announced the aid would amount to €420m, about £308m, across the EU.
Ring-fenced Under this policy, virtually all the money will be ring-fenced around Haverfordwest and other farmers would not get a look in, despite them investing their 0.5ppl (or, more recently, their 2ppl) in the business for all investments. In addition, Morrisons has also announced it is to increase payments for mild and medium Cheddar over winter. The supermarket
will pay 28.5p/kg (equivalent to a 3ppl supplement) for mild standard and its Savers brand, and a 9.5p/kg (equivalent to 1ppl) for its medium standard. Muller Wiseman has opted to pay the extra money received from Aldi and Lidl as a supplementary payment to its 430 non-aligned milk producers only. If the amount – equivalent to 0.595ppl – had been added to the base price, then some would have gone to the aligned farmers via the proportion of their milk sold outside of the pools, and which receives the base price.
EU dairy aid package for UK farms
OCTOBER 2015
Allocated Most of the dairy fund, 80%, has been allocated on the basis of milk quotas in the last year of the system. The remaining 20% will be allocated using criteria to ensure additional assistance is targeted at member
states which have been particularly hit by the fall in pigmeat prices, the impact of the Russian ban, very low milk prices and this summer’s drought, Mr Hogan said. Under this criteria, the UK will receive the third highest allocation of €36.1m, with Germany at €69.2m, with France, at €62.9m, receiving the most. Irish farmers will receive €13.7m.
**DF Oct p4 5 6 News_Layout 1 18/09/2015 10:20 Page 2
Global Dairy Trade rockets
JFor the third successive auction prices have rocketed on the GDT, with the average index increasing 16.5% to notch up a figure of $2568. WMP increased by a whopping 20.6% to $2495, and SMP by 17% to $1992, but for the latter this is only equivalent to £1300, so there is still a long way to go. In the first week of August the average price for all commodities was $1815, so in two months the auction has increased by $680. WMP has increased by more than $900, from a low of $1590 to its $2495, while SMP has increased from $1419. This auction is particularly significant for SMP because for the first time since summer, the SMP price is higher than the EU intervention threshold price. Arla’s EU origin SMP fetched $1955. Prices are continuing to strengthen for forward contracts too.
NEWS
Seeking help on way ahead
A
group of dairy farm industry experts have joined forces to spark a debate about the future of the sector, and plans are in place to host a UK dairy summit in London on November 3. Cumbria dairy farmer Robert Craig, agricultural consultant Heather Wildman, accountant Rob Hitch and regional agriculture director Neil Wilson, want to lead a wider discussion about the way forward for
UK dairying and engage the thoughts and analysis of business leaders. Operating under the banner of Agrihive, the quartet has drawn together a case study of a dairy farm which has all the characteristics of one which is struggling in the current downturn. The plan is to launch the case study at the Agrihive UK dairy summit in London and collate the thoughts and strategies of people inside and outside farming about what dairy units can do going forward.
JThere is confusion over Defra’s provisional July 2015 milk production figure of 1211m litres, which is 1.1% lower than the previous year. It contrasts with AHDB’s daily milk figures which show deliveries in
July would be about 3% more than last year. Production in August, according to daily figures, was 1207m litres. This is 29.20m litres (2.48%) higher than the same month last year and 91.30m litres (8.18%) higher
Speakers Corner JDon’t forget to join us on the Dairy Farmer/ Farmers Guardian stand at the Dairy Show when we will hear how David Handley and Rob Harrison see things panning out following recent negotiations. After their address will be your opportunity to put your questions to them and get an insight into what retailers and processors are thinking, and how any bonus is likely to be allocated. rPlace: Dairy Show, Bath & West Showground rTime: Wed, October 7 at 11am.
Confusion over milk production volumes than two years ago. Cumulatively we have now produced 6398.00m litres, 141.80m (2.27%) more than last year and 615.20m (10.64%) more than two years ago. The figures are subject to review.
OCTOBER 2015
DAIRY FARMER
5
**DF Oct p4 5 6 News_Layout 1 18/09/2015 10:20 Page 3
NEWS
Efra snubs Handley
JIf there is one man and one organisation which has delivered more money to dairy farmers this autumn, it is David Handley, head of Farmers For Action. This, however, held no sway with the Efra committee, which held an inquiry into milk prices in early September, but failed to invite him. Only the NFU’s chief dairy adviser Sian Davies, Michael Oakes, plus Dairy UK’s chief executive Judith Bryans and policy and sustainability director Peter Dawson, were summoned from the industry, an interesting move considering Dairy UK has a policy of not talking about milk prices for legal reasons. Despite both the NFU and Dairy UK asking for Defra to push for a raising of the intervention price, exactly a day after the EU had ruled it out, Defra Minister George Eustice would not have it. NFU dairy board vicechairman Michael Oakes thought better producer representation and tools to counter volatility were needed, while Dairy UK’s Dr Judith Bryans thought promotional funding ‘from other sources’ was needed to boost the £150m spend from the dairy companies.
6
DAIRY FARMER
Retailers’ pledges start to have impact
R
etailer commitments to increase the price they pay for British milk are starting to make a tangible difference to farmer incomes. Non-aligned farmers supplying Muller Wiseman will receive an additional 0.595ppl ‘supplementary payment’ in their September milk cheques, following 28ppl payment pledges from Aldi and Lidl. Dairy Crest also said extra revenue from Morrisons
and Lidl price promises would be reflected in farmer milk cheques, but it was yet to reveal how much this will be. Discussions were also ongoing at First Milk about how the extra income from Tesco’s commitment to pay cost of production on own label cheese could potentially be spread out among members. In the case of Muller Wiseman, 430 of its 1200 farmers will receive the extra payment, which is based on two weeks’ sales
performance following August 17. It means Wiseman’s standard litre contract farmers, who will see no change in their farmgate price of 22.35ppl for October, but should have seen the extra money last month. Dairy Crest, which is holding its standard litre and Davidstow contract prices at 21.69ppl and 25.34ppl respectively for October, said the wider market remained tough, but the retailer pledges were making a difference.
JBadger culling has started in Dorset, Somerset and Gloucestershire amid anger cull licences were refused for Devon and Herefordshire.
until 2018, with a cull target of 815 per year. The minimum is 615. Further steps to help tackle bovine TB in England have been announced by the Government including a consultation on introducing compulsory testing for all
cattle entering low-risk areas; a consultation on changes to the criteria for future badger control licences (such as reducing the minimum area for a licence); and a call for views on controlling TB in non-bovine animals such as pigs, goats, and deer.
Badger culling starts in some counties
New zone Dorset – the new zone – has a licence running through
Half of producers looking to quit dairy JIntentions surveys are notoriously unreliable, with farmers generally not doing what they say they will do. Which may be a good thing as the latest survey from RABDF reckons ‘almost half of Britain’s dairy farmers are scheduled
OCTOBER 2015
to leave the sector, while 45% of the remaining half planning to continue in production have put their expansion plans on hold’. The survey concluded, in general, it was producers with all-year-round calving herds and a level profile
contract who planned to leave, while those with aligned contracts and/or low cost production systems believed their business had a future. Latest figures show 434 dairy farmers quit in the last 12 months.
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**DF Oct p8 9 Cowmen Collingborn _Layout 1 18/09/2015 10:29 Page 1
COWMEN COMMENT
ROSEMARY Collingborn
Rosemary Collingborn and her husband Joe farm a closed herd of 100 pedigree Friesian type cows, 60 young stock and breed bulls for sale. She has served on the MDC Council, Veterinary Products Committee, the RSPCA Council and was WFU dairy chairman.
I Here in the South West we’re being tied in knots, and trading is becoming impossible
“
8
DAIRY FARMER
like to be cheerful for Dairy Farmer, but sometimes you have to talk about some of the things that have gone wrong rather than about everything that has gone right, so here goes. The summer started off well with a good first cut and we sold our spring calving heifers to help defray the low milk price. This was followed by a drought on the M4 corridor, with some of our second cut going more or less straight into the cows, and we listened bemused to tales of excessive rain and mountains of excess grass in Scotland and Ireland, while we bought in some brewers' grains. Cash flow – what do you do when the cash doesn’t flow? We were getting round the milk price deficit by planning to sell more of our surplus in-calf heifers to the same buyer, but we had an unconfirmed reactor on the pre-movement test. Ironically the milking herd and all the rest of the young stock passed their scheduled TT test the next day. What are the odds of me selecting the only animal out of 200 that would react? Significantly, it was negative on post-mortem. Then I discover we’re not allowed to trade on the open market for four months, after two more clear tests. The in-calf heifers will calve before this, making the herd 25% bigger, and we’ve not enough cubicle space and possibly not enough winter feed, especially since we’ve already opened our
OCTOBER 2015
clamp. Even beef calves have suddenly lost their value. So I am ready to have a good rant about so-called bTB controls. Here in the South West we’re being tied in knots, and trading is becoming impossible as you can’t tell what a pre-movement test will throw up. An ex-Ministry official told me he used to get 200 letters a week about badgers from the Animal Rights lobby and none from farmers. The pro-badger enthusiasts have clout with the public and politicians and we need to look for common ground and get some help for cows as well as badgers. This could be cattle vaccination. It would cost £8.25 to vaccinate a calf, while for a badger it is £682. The EU objects to us vaccinating cattle on the grounds you can’t differentiate between infected and vaccinated cattle, but there is now a DIVA test which tells the difference. The only vaccine available is the human BCG and this is currently being used on badgers. It may be only 50% reliable in cattle, but with cattle you can start off with a clean herd and vaccinate six-month-old calves and build up herd immunity. It is thought 50-90% of badgers are infected with bTB in the hot spot areas and the vaccine has no effect if they already have bTB. I have talked to the RSPCA and they are fully in favour of vaccinating cattle. A NFU/RSPCA joint approach might get the politics sorted out.
**DF Oct p8 9 Cowmen Collingborn _Layout 1 18/09/2015 11:30 Page 2
COWMEN COMMENT
Above: The remaining in-calf heifers are due to calve in the next few months. Right: Clearing has begun on the site for stage one of a new milking parlour.
Farm Facts
rFARM: Family run 185 acres dairy farm in North Wiltshire rHERD: Closed herd of 100 Friesian type pedigree cows rYIELD: 7874 litres rSOIL TYPE: Heavy on Oxford clay rRAINFALL: 749mm rMILK BUYER: First Milk.
Another approach would be to stop testing. The FSA has confirmed no-one has caught TB from eating infected meat and, in milk, TB is killed by pasteurisation. Defra could also help the financial situation – closed herds mean less cattle movement, and to encourage uptake compensation could be increased for closed herds. Grant money could be diverted to help farmers put up extra buildings to house the extra cattle locked in during a breakdown. A sobering characteristic underlines the fate of many new born calves. Our local slaughter house had 250 booked in for killing recently and the day’s work had to be extended by several hours as 400 turned up. Is bTB the culprit? Recently I attended a meeting about Countryside Stewardship, and I
noticed badger gates were included. “That’ll be just the thing for our bridge,” I enthused. The adviser looked at me sideways. “They’re not meant for keeping them out you know.” “Well I was hoping for a non-return gate!” Do other farmers’ wives find it is difficult to snatch a moment of relaxation, and if you do sit down for two minutes it will be interrupted by “It’s alright for some” or “Good, found you... can you make me a cup of tea?” We have just had an optimistic week onfarm, clearing a site for stage one of our new milking parlour. We can’t afford stage two until we can sell some more cattle. Does anyone who’s shut up want any wellbred, good looking pedigree heifers?
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OCTOBER 2015
DAIRY FARMER
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**DF Oct p10 11 12 NEW On Farm _Layout 1 17/09/2015 15:01 Page 1
ON FARM
Fed up with being a price taker, northern farming entrepreneur Peter Crawford decided to take control into his own hands and launched a free-range milk brand. Bruce Jobson reports.
Northern group launches own free range milk brand
A
new premium milk brand, Free Range 180, has been launched as part of a move to help dairy farmers receive a better price for their milk. The initiative has been set up by Peter Crawford, who contract farms a dairy enterprise at Peepy Farm, Stocksfield, Northumberland, and will enable farmers to receive an expected premium of 3-4ppl above their current price. The co-operative concept is based upon member farmers grazing their cows outside at grass for a period of six months or 180 days. The supplying dairy farms involved have to comply with a series of stringent requirements, including environmental, ethical and welfare aspects as part of the scheme, says Mr Crawford. “The supplying dairy herds produce top quality milk and these cows are not confined indoors for a 365day period. The Free Range 180 cows are able to roam outside and have a happy and contented life and graze pastures throughout the
10
DAIRY FARMER
The herd at Peepy Farm, Northumberland, consists of 350 Holstein cows, averaging 9500kg.
spring, summer and autumn months. We aim to differentiate our product on a free-range basis, as well as incorporating other consumer conscious aspects. Ultimately, we aim to be ‘price-makers – not pricetakers’ in an extremely volatile market. “Consumers are very conscious as to how farm animals are kept and where and how milk is produced. They want to know animals lead a healthy and comfortable life and are able to graze freely in a natural environment. Our aims are to
OCTOBER 2015
‘connect’ with consumers and establish a premium milk brand members of the public ‘trust’ on numerous levels.” Herd health Mr Crawford also runs the family contracting business and his own feed advisory company Northern Nutrition, and herd well-being and maintaining a healthy balanced diet is a fundamental aspect of the Free Range 180 brand. Having a correctly balanced diet impacts on quality and he believes consumers will pay
an increased price based upon the ‘taste-factor’ in addition to the environmental and ethical elements. Another animal health aspect of the Free Range 180 brand relates to the ‘five freedoms’ and participating dairy producers are bound by the strict code. Mr Crawford says this ensures animals are free from hunger and thirst, free from discomfort, free from pain and injury, free to behave normally and free from fear and distress. There will also be quality assurance through the Red Tractor logo.
**DF Oct p10 11 12 NEW On Farm _Layout 1 17/09/2015 15:02 Page 2
ON FARM “We have carried out extensive market research over the past four months and consumers have stated a preference for a good tasting product, and that relates to the quality of milk produced,” says Mr Crawford. “We’re not in the market to produce a ‘whitewater’ product. In recent years milk has been devalued both as a brand and a product, and the price farmers are receiving has also been devalued and continually driven down. “Free Range 180 is a brand which ‘adds value’ at the farmgate and all the way through the milk chain to the customer. Over the past
six months consumers have stated a willingness to pay farmers an increased price for British milk. We consider our product and brand as ‘unique’ within the marketplace,” he says. Processor backing Mr Crawford currently supplies more than three million litres per annum from Peepy Farm to locally based Lanchester Dairies. The processor has backed the initiative and will be supplying its milk retailers with the premium Free Range 180 brand alongside its other product lines, according to general manager Gary Halliday.
Peter Crawford aims to differentiate the product on a free range basis.
He says: “Lanchester Dairies has 40 dedicated farmer suppliers in total and we will be offering our customers a choice. We already supply to large sections of the catering trade as well as retail, and Free Range 180 is targeted at a specific market,
albeit there will be an overlap. We are paying our supplier farmers above the current market price and our aim is to hopefully continue to lead on prices, rather than follow. “Some of our customers are backing the initiative on
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**DF Oct p10 11 12 NEW On Farm _Layout 1 17/09/2015 15:03 Page 3
ON FARM
The 180 Free Range milk has developed a ‘unique’ brand.
numerous issues ranging from animal welfare, through environment to the ethical aspect. They are seeking to maintain the British dairy industry and ensure we have complete traceability throughout the system as well as transparency. It’s in everyone’s interest to have a healthy and vibrant dairy industry that helps maintain local services and employment, and helps keep local farm shops and small businesses as well as the dedicated network of agricultural suppliers throughout the rural economy. “Lanchester Dairies is northern-based and supplies customers as far afield as Manchester and Leeds, throughout the entire North East, and up to Glasgow. We’re a family firm operating a diversified farming business, with traditional family values and employing local people. We aim to continue to grow our business and, in turn, this will help our farmer suppliers. Free Range 180 is effectively
12
DAIRY FARMER
‘ring-fenced’ through the Lanchester network of dedicated farmer suppliers as well as our extensive retail network,” he adds. Holstein herd The dairy herd at Peepy Farm consists of 350 Holstein cows averaging 9500kg at 4.5% fat and 3.45% protein, and is 85% self-sufficient in homegrown feed. The high quality milk is a reflection of numerous factors associated with attention to detail, overall herd management as well as diet and animal welfare. The plan is that Free Range 180 will be offered across all three sections of whole milk, semi-skimmed and skimmed varieties. Each sector has its own distinctive colour-coded brand for identification purposes to reflect the increasing consumer choices available. Mr Crawford hired marketing professionals to create the brand concept, the overall design and the brand logo. He says: “I did not want
OCTOBER 2015
Mr Crawford says the logo reflects the ethos of the new 180 brand.
to go down the traditional lines associated with marketing milk products and gave the professionals a clean sheet to create a brand name, brand colouring and logo. No-one else to my knowledge has ever marketed milk as a ‘number’ and the logo reflects the brand ethos.” Mr Crawford says he has a ready made supply of dairy farmers eager to be part of the scheme. Free Range 180 was unveiled in September in a series of closed meetings with Lanchester suppliers, milk retailers and other interested parties. The feedback questionnaire received a 95%100% positive response across a range of concepts, brand identity and marketing related questions. Graeme Bradley, who farms at Quebec, County Durham, is one supplier eager to provide milk for the Free Range 180 initiative. He says: “We milk 150 Holstein cows and the herd grazes outdoors for six months of the year. Like others, we cut
Our aims are to ‘connect’ with consumers and establish a premium milk brand members of the public ‘trust’ Peter Crawford
“
and conserve our summer grass to feed over the inclement winter months when cows are housed. “If farmers are able to receive a premium milk price for a premium milk product, then this can equate to an additional £30,000£40,000 per annum for every one million litres sold. “I already supply Lanchester Dairies and have confidence in knowing the aims of Free Range 180 will connect with everyone involved from the farmer to the consumer. “It’s a ‘win-win’ situation,” he claims.
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OCTOBER 2015
DAIRY FARMER
13
**DF Oct p14 15 Potter _Layout 1 18/09/2015 14:23 Page 1
POTTER’S VIEW
IANPotter
This month, Ian Potter looks at the role of AHDB Dairy, whether its activities are of relevance to most dairy producers, and indeed whether it is being fully accountable to producers in the way it spends its multi-million levy funds.
A This is duplication and, to my mind, AHDB Dairy is spending the money because it has it to spend
“
14
HDB Dairy as it is called now, and indeed AHDB itself, are certainly copping some criticism at the moment. And so far as the dairy sector is concerned, their stance appears to be one of evading those who challenge them, including some dairy farmers. One issue raised with me by several farmers is that of David Ball, who was made redundant as manager of a large Gloucestershire dairy unit last year. After being unemployed for a while, however, he now has a position with AHDB Dairy as its farm buildings senior technical adviser – effectively working under his wife Amanda. The job specification stated AHDB was ‘seeking an experienced person on buildings’, which he may well be, but his Linked-In profile shows no specific reference to this. This prompted me to make enquiries to establish the background to the appointment in terms of how many applications and interviews there were. The response I received was: “It’s not information we would normally disclose”. When I responded, asking whether the position had been advertised in Farmers Guardian, Dairy
Farmer, Farmers Weekly or the like, my two requests were ignored. The appointment may ultimately be a case of AHDB delivering value for money and working smarter, only time will tell. But aside from this, there’s also the issue of the actual job. Employing an expert in buildings right now has been described to me as hiring an expert on how to blow out candles on a birthday cake while the house burns down. A number of farmers desperately need one-to-one help on how to exit the industry, or to involve fresh blood in their businesses. Help here would be very useful. On top of Mr Ball’s appointment comes another job vacancy for an extension officer with expertise in forage and grassland management, another in market intelligence, and yet another senior one in AHDB strategy (Tom Hind). AHDB Dairy now employs well over 30 people I reckon, with the chairman on a pro-rata salary of more than £80,000 a year. AHDB’s credibility is hanging by a thread among a lot of farmers who say it sits in its new ivory tower in Stoneleigh spending levy payers’ money on what it thinks is needed rather than on what levy payers actually want.
STATEMENT: In a statement, AHDB said David Ball’s title was ‘Technical Extension Officer Buildings, Slurry, Milking Equipment and Cow Flow’, that he had participated in a ‘competitive and robust appointments procedure’, and that ‘there is no line management link’ to Amanda Ball.
DAIRY FARMER
OCTOBER 2015
**DF Oct p14 15 Potter _Layout 1 18/09/2015 14:24 Page 2
‘AHDB’s credibility is hanging by a thread’
Ian Potter
rIan is a specialist entitlement broker and dairy industry commentator. Comments please to ianpotter@ipaquotas.co.uk
In fact some of its work is turning out to be deeply damaging. For example, its August research informed farmers ‘there is very little connection between the price of milk in supermarkets and the price farmers are paid’. According to AHDB Dairy this ‘supports the argument the supermarket price war on milk is not to blame for the current crisis’. Really? So there’s no connection between the amount of money that comes in the top of the hopper and the amount that goes out the bottom? And if the retailers feel guilty enough to throw some more money at farmers now, then they must, by their own admission, be part of the problem. If I were a retailer I’d have thrown AHDB’s line back at the farmers and not paid anything. Indeed you would have expected the British Retail Consortium, which represents retailers, to have done such research in an attempt to break the link and derail the work of the likes of FFA. Then there’s its latest August Cheddar price at a jaw dropping average of £2075/tonne – down 8.8% in one month. I tried to obtain clarification from two of its senior dairy analysts as to how such a low price had been calculated. I gave them a list of UK cheese traders asking them to confirm who they had contacted, how many tonnes they said had been traded (eg one tonne or 1000), how the average had been calculated, and exactly what question had been asked? And the response: “It’s commercially sensitive information, however, AHDB does consult other publications to ensure its £2075 figure is true.”
POTTER’S VIEW
For what it’s worth, my research showed a significant tonnage of retailer contracted mild cheese is selling at £2300/tonne, up to £2500/tonne, while, yes, some spot trades are below £2000. But I just can’t come near to a £2075 average. In fact, the EU average price is quoted as £2175 or £100 higher – and our cheese is far superior to EU stuff. David Handley and Michael Oakes (the two chief negotiators for UK dairy now) need all the help they can get in negotiating prices, and they do not need overly low figures undermining their efforts. The next eyebrow raiser involves Promar, which has been awarded a contract to collect data to provide costings. Why? This is duplication and, to my mind, AHDB Dairy is spending the money because it has it to spend. After all, we have TSDG, Sainsbury’s, Kite, Kingshay and Promar all doing costings. There is no market failure for AHDB to address. And besides, if it comes out with costings less than Tesco and the others, or does anything to undermine the work of FFA and NFU, there will be even more hell to pay. Private Eye touched a few raw nerves recently and highlighted the concern among farmers as to how AHDB spends its £65m a year budget. The article questioned whether it has outlived its usefulness, with a third of the money going on staff salaries, and one farmer having described it as ‘a lucrative gravy train’. Levy payers (and I am one) have a right to challenge the cost and the benefits, and AHDB has a duty to respond. It has a lot of work still to do to convince levy payers it is fit for purpose!
OCTOBER 2015
DAIRY FARMER
15
**DF OCT p16 17 MSD Mastitis (signed off)_Layout 1 17/09/2015 15:10 Page 1
SPONSORED SERIES
DRYING OFF ROLE OF DRY
COW THERAPY AND SEALANTS Staff time pressures and lack of training can mean it is easy for drying off strategies to fall short of ideal standards. Aly Balsom finds out about best practice at this crucial stage.
E
mpowering your farm team to understand the hows and whys of drying off will bring big benefits to udder health and set cows up for a productive subsequent lactation. Vet Dave Coombes, of Cedar Farm Vets, believes explaining the role of dry cow therapy and sealants, and the importance of hygiene, is vital in ensuring everything goes well at this critical stage. He says: “It’s important to appreciate there are different reasons for using sealants and antibiotics. Dry cow therapy (long-acting intramammary antibiotic) is used to cure subclinical infection and prevent new infections, so you are looking to work it up into the udder,” explains Mr Coombes. “In contrast, a teat sealant is needed as a physical barrier to stop the ingress of infection. It needs carefully depositing in the teat canal, like a ‘stopper in a bottle’ and should not be massaged up into the udder. If you do massage it up, you risk losing a lot of the sealant and not getting a good seal effect.” Drying off strategy should be formulated with a vet and
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DAIRY FARMER
should take account of individual farm situations. This could involve the use of dry cow therapy with or without a teat sealant, or the use of a sealant alone. With increasing global pressure for farmers to avoid prophylactic use of antibiotics, more producers are adopting selective dry cow therapy and using sealant alone on certain cows. Strategy will be farm dependent and will revolve around good records and vet advice. However, it could involve using just a sealant on cows which have had no clinical mastitis in lactation and have a SCC of under 150,000cells/ml, or no more than two readings with more than 200,000cells/ml. Whichever drying off strategy is used, hygiene should always be the primarily focus.
Hygiene However, Mr Coombes says when using a sealant alone, hygiene becomes even more essential. Failure to stick to squeaky clean practices can lead to bacteria being sealed in the udder which can result in toxic mastitis and even death. Dr Martin Behr, technical manager for MSD Animal
OCTOBER 2015
The teat canal is the last local barrier to infection Dr Martin Behr
Health says careful infusion is also important to limit teat damage and infection risk. “The teat canal is the last local barrier to infection. If you damage it, this barrier doesn’t work as well and it can also decrease the immune response. Long nozzles (on sealants or tubes) are more likely to introduce bacteria into the teat canal and cause damage,” he says. Producers now have the option to choose sealants with variable length nozzles, providing the option to use a long or short length depending on individual cow teat type. Mr Coombes believes putting aside enough time and making sure drying off is a dedicated task is one way to promote a best practice drying off strategy. “The first step is to approach drying off as a task on its own. Milk her out fully
and then bring her back into a clean parlour once you’ve had a cup of tea,” he says. Farmers should then: ■ Put on a clean pair of gloves. ■ Clean off any dry faeces on grossly contaminated udders. Only use water in extreme circumstances and avoid dirty water dripping onto teats. Always thoroughly dry the udder. ■ Starting with the teats furthest away from you (far to near), clean the teats using the wipe provided with the dry cow tube, or cotton wool in surgical spirit. Clean until there is no visible signs of dirt on the wipe. ■ When using antibiotic dry cow therapy, start with the teats closest to you (near to far). Gently insert the nozzle and infuse into the teat. Run your fingers up from the teat end to the base of the udder, so the antibiotic is ‘stripped up’. ■ When using a sealant after the antibiotic, do one quarter at a time and put the sealant in immediately after the antibiotic. This means you do not need to clean the teat again and reduces contamination risk. ■ When applying the sealant (either alone or after
**DF OCT p16 17 MSD Mastitis (signed off)_Layout 1 17/09/2015 15:10 Page 2
SPONSORED SERIES Jeremy Bown (left) with dairy vet David Coombes.
CASE STUDY: Jeremy Bown, Bassetts Farm, Basingstoke ● Jeremy Bown believes staff training on drying off policy is half the reason he has witnessed improvements in dry cow cure rates and bulk somatic cell counts (SCC) in his pedigree herd. Drying off protocols have ensured all members of the farm team are aware of the correct strategy and means hygiene is top notch. Teat sealants are now inserted correctly and not massaged up into the udder to
antibiotic), use your left hand to restrict the teat where it joins the udder. This should stop the sealant from going up into the udder. ■ Squeeze the sealant in and draw out the tube slowly, leaving a small bead of sealant at the teat opening. ■ As best practice, dip teats with a barrier dip to provide added protection. ■ Leave cows to stand qui-
ensure maximum efficacy. Sealants were originally introduced by Mr Bown as a safety net in close-to-calving cows which calve outside from April to October. With limited option to rotate paddocks and the cow’s natural keratin plug tending to disappear close to calving, the sealants were aimed at providing an extra barrier to prevent bugs from entering the teat, in combination with an antibiotic.
etly for 15 minutes to allow for an effective seal to form.
Environment & training Once dried off, cows should be kept in a hygienic environment. At grass, ensure ring feeders are moved regularly and fly control strategies are in place. Inside, beds should be clean and dry. Both Mr Coombes and Dr Behr emphasise training un-
“Sealants have been shown to actually work for me, as I have seen an increase of cows going from high to low (SCC) following the dry period (cure rate),” says Mr Bown who runs 120 Holstein-Friesians yielding 10,000litres/cow/year. In the last 12 months, 14.6% of cows calving had a high SCC (over 200,000cells/ml) at their first milk recording, versus 29% prior to using sealants. The
derpins effective drying off. Dr Behr says: “Training is very important as farms commonly see changes in staff. Regular training makes sure everyone’s at the same level. Have protocols and train staff in their own language. If you don’t, it’s very difficult to ensure consistency.” To fit with this, MSD has produced a series of laminated posters in English
number of cows picking up new infections in the dry period has also dropped from 11% to 8%. “Using sealants has also improved bulk somatic cell count drastically. It has dropped from 200-250,000cells/ml to 106,000cells/ml. We’re also definitely not having to treat as many clinical mastitis cases,” he says. Maintaining a clean environment for dry cows and milkers is also a top priority.
and Polish which are available through vets. It has also developed an online training programme in conjunction with NADIS (www.nadis.org.uk), where farmers can apply for a City & Guilds certificate in dairy mastitis in cattle.
OCTOBER 2015
DAIRY FARMER
17
**DF Oct p18 20 22 Breeding_Layout 1 17/09/2015 15:06 Page 1
BREEDING
The August 2015 US evaluation run produced an unprecedented top seven TPI bulls graduating from one AI stud, namely Select Sires. Bruce Jobson analyses the resulting impact of genomics on the listing.
US top seven reflect early genomic choice
O
hio-based AI giant Select Sires Incorporated achieved a unique top seven listing in the latest (August 2015) US evaluation run. All seven bulls were former genomic young sires which had graduated through the proving system. Six years into genomic evaluations has provided a clearer indication the technology is providing reliable results. There is little doubt Select Sires aggressively adopted the use of genomics as a means to produce the next generation of elite sires. Although the public face of genomics started to evolve in the US in 2008, and subsequently was formally introduced in 2009, the US AI units were involved in developing the genomic data base from the SNP 50 chip in 2006. AI companies were able to provide information dating back to the 1960s, and the use of bulls such as Round Oak Rag Apple
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DAIRY FARMER
Roylane Socra Robust returned to active service as number one US TPI sire.
Elevation, in order to build up the genomic profiles and data sets. As more and more bulls were genomic tested as well as including recent female profiles, this has increased the reliability and accuracy of data being provided to produce genomic young sire evaluations. Robust The sheer size and scale of the US sire evaluation programme – coupled with a cow population of 10 million – has arguably resulted in the most robust system in the world. Furthermore, the sheer scale has produced increasing levels of genetic
OCTOBER 2015
progress within a defined time scale. Perhaps we should first look at a genomic sire we featured following the August 2014 evaluations, Roylane Socra Robust. Although the bull returned to active service as the number one US TPI sire, Robust was not available to UK breeders as the bull was dead. We stated that, as a benchmark, breeders would have to use young genomic bulls that were greater or above the proven figures delivered by Robust. In August 2015, Robust remained within the top six listed gTPI sires at 2514 gTPI points. However, his genetic impact is immense,
having sired four of the top seven bulls in the latest listing. Effectively, with Robust himself, the bloodline dominates five of the top seven places. Furthermore, the top four Robust sons – Supersire, Donatello, Headliner and Sterling – are effectively 'full-brothers' or 100% same bloodline being Robust x Planet matings. Genomics This microcosm confirms genomics is working – perhaps better than many would wish – so let’s have a look at Robust’s profile. Back in August 2010, Robust listed at number three on the Holstein USA Genomic Young Sire list, this being the time his semen was first released. His peer year group was exceptional, with Robust being listed behind two other Select Sires’ bulls, Observer and Bookem. The speed of genomic evaluations provided AI units with the opportunity to effectively test second generation genomic bulls – in other words, unproven
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**DF Oct p18 20 22 Breeding_Layout 1 18/09/2015 11:27 Page 2
BREEDING Aug 2015 Name Release Rank 1 Supersire * 04 2012 Rank 2 Mogul** 12 2011 Rank 3 Donatello* 08 2012 Rank 4 Headliner* 04 2012 Rank 5 Sterling* 07 2012 Rank 7 McCutchen*** 04 2012 Robust is ranked 6. Matings: *Robust x Planet bulls from unproven bulls. Although this allowed the opportunity for any potential bias within the system to be exaggerated, Select Sires sampled 47 Robust sons. This made him a sire of sons before achieving his own proven status. Return to service From the 47 Robust sons tested by Select Sires to date, 26 have received daughter proofs. Five of these bulls have returned to active service, taking the number one, three, four and five listings in August 2015. That is a Select Sires return to service hit rate of about 20% or 1:5. The fifth Robust son, Dante, is listed in 14th position. Across the broader AI industry, Robust has 111 sons listed as AI bulls in the US genetic evaluation file. In April 2015, we featured the potential impact of Mogul, and this Dorcy son has now graduated and lists in second position in the August 2015 gTPI listing. His full brother and Select Sires stablemate, Mixer, lists in 10th position, ensuring Select Sires dominance by posting eight of the top 10
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DAIRY FARMER
Dec 2011 April 2012 2 3 10 24 2 8 33 45 3 ** Dorcy x Marsh
listing. Graduating in seventh position is another bull we featured in April, the Bookem x Shottle son McCutchen. Having focused on Robust, let us take a closer look at how the six other bulls in the top seven listed early in their career. In pole position, Supersire (Robust x Planet) was ranked in second position at the time of his semen release in April 2012 and August 2012. The August 2015 second-placed sire, Mogul, was listed in third position in his peer year group when first released in December 2011. By April and August 2012, Mogul listed in 10th and 28th place respectively. Donatello (Robust x Planet) listed at 24 and 63 in April and August 2012, while Headliner
OCTOBER 2015
Aug 2012 Sons in AI 2 231 28 296 63 9 14 26 37 4 7 134 ***Bookem x Shottle
ranked in second, eight and 14th position in December 2011 and April and August 2012. Sterling (Robust x Planet) listed at 33, 45 and 37th position during the same timescale as Headliner, while McCutchen listed in third and seventh position in April and August 2012 respectively. Five of the seven bulls – Robust, Supersire, Mogul, Headliner and McCutchen – were in the top 20 genomic listing at the time of their semen release.
And all these sires were in the top 50 at the earliest point of their careers. This is a clear indication that genomics is working and the benefit of selecting a number of bulls in order to reduce the risks involved of using lower reliability sires compared to the higher reliability provided by proven bulls. If we now look further into the genomic crystal ball, we see the North American AI industry has placed increasing faith in second generation genomic
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OCTOBER 2015
DAIRY FARMER
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**DF Oct p18 20 22 Breeding_Layout 1 18/09/2015 11:28 Page 3
BREEDING sons being tested. Supersire already has 231 sons on test, Mogul (296), Donatello (9), Headliner (26), Sterling (4) and McCutchen (134). Clearly, Supersire, Mogul and McCutchen are going to be progenitors of numerous sires of sons. Extensively It is also accurate to point out that Donatello, Headline and Sterling could have been used more extensively as sires of sons. However, if good enough their sons will graduate in due course. Another observation we made in April 2015 was the limited breeding 'window of opportunity' provided by faster genomic turnover. It had been hoped that genomics would provide the possibility of identifying ‘outliers’ or ‘outcrosses’ within the population. This concept now appears unlikely to occur due to the increasing pressures of selection intensity. From the
August 2014 evaluation run, we analysed the top 50 genomic LPI sire listing that demonstrated 18 of the top 50 bulls (36%) were bred by Supersire, 10 sired by McCutchen and 7 by Mogul, or put another way 70% of the bulls listed were sired by three bulls. In order to compare with similar like-for-like
age-adjusted females (potential bullmothers), the top 50 (April 2014) genomic LPI heifer listing contained 26, 10 and 10 daughters bred by Supersire (52%), McCutchen (20%) and Mogul (20%), or 92% in total from these same three bulls. Moving forward, as in the case with Robust and
his sons, more 'fullbrothers' or 100% same bloodline siblings will graduate within the same timescale. As to the question of narrowing bloodlines, we will need to use computer mating programmes to help identify and reduce the potential for inbreeding within the herd.
JCanada has been hit by bluetongue, resulting in export certification bans for embryos, semen and live cattle to the EU and about 20 other countries. Three cattle from one farm in Ontario tested positive for bluetongue serotype 13 in August and September. The first identified animal was the result of a routine
test at an Ontario abattoir and this subsequently triggered an on-farm test where two further animals were identified. The disease does not pose any threat to human health or food safety and the effects are mild in cattle and goats. However, bluetongue can cause fatal injury in sheep and wild deer.
Canada’s status as being bluetongue-free has relied on not having any US endemic serotypes found outside the Okanagan Valley area in British Columbia. The Canadian Food Inspection Agency (CFIA) hopes trading partners will recognise the five ecologically distinct Canadian
zones mapped out for such diseases, and therefore only the zone where a detection occurs would be subject to restrictions. However that may not be acceptable to trading partner countries. The outbreak was confirmed the same week Cogent purchased Ontario AI unit, Foundation Genetics.
Mountfield SSI Dcy Mogul ET – Supersire, Mogul and McCutchen are set to be progenitors of several sires of sons.
Export certification ban as bluetongue hits Canada
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OCTOBER 2015
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YOUNGSTOCK South Cumbria tenant farmers, the Masons, are maximising their herd’s production by rearing bull calves as rosé veal. Jennifer MacKenzie reports.
Surplus dairy bulls go into rosé veal market
T
he Mason family has, over the last seven years, developed a niche market for bull calves from their 180cow pedigree Holstein herd. Specialist calf rearing facilities were built for the calves at Heaves Farm on the Levens Hall Estate, near Kendal, to make full use of what is essentially a by product of the dairy herd. The demand for rosé veal from specialist butchers and top restaurants took off and now Roger and Carole, and their son Gary and his wife Jan, supply 100 bull calves a year. They farm 263 acres, 55 of which is owned and 67 are on a 10-year Farm Business Tenancy. The remainder is
Veal calves are fed milk replacer until they are eight weeks old, and then weaned onto a calf pellet.
on a succession tenancy. All is down to grass with the exception of 28 acres of maize grown for silage. The rosé veal system only works because of the family’s attention to detail
and having a guaranteed market when the bulls are finished at seven to 10 months old, and with a demand for most of the carcase components, margins are worthwhile.
Until December 2013, the Masons also reared calves supplied by other local dairy farmers to produce their rosé veal. But since they signed a contract to supply milk to North West
T new name in Dairy Hygiene The
**DF Oct p24 25 26 27 Ystock_Layout 1 18/09/2015 11:33 Page 2
YOUNGSTOCK supermarket Booths, which guarantees to pay above the cost of production and top the milk price league tables, they have simplified the rosé veal operation, rearing only their own bull calves. As one of four Booths’ Fair Milk suppliers – the others are in Lancashire, Yorkshire and Cheshire – the Masons' production has increased to 1.5 million litres annually which is all sold on the Wiseman contract. Fifth generation The Mason family has farmed in the Levens area for more than 100 years and Gary is the fifth generation to farm on the Levens Hall Estate. Eldest son Neil, is a brand consultant in Manchester and he has been heavily involved in the marketing of the new venture, while daughter Lisa is a physiotherapist. “We had always kept the bull calves but we realised that we would have to find a specialist market for the
rosé veal,” says Roger. Not only did they set about finding markets for the new product – Heaves Farm Veal – but they also worked with the RPA in regulating the production standards for rosé veal. Rosé veal is similar to beef but with a smoother texture, a richer taste and is lower in fat and cholesterol. While it is available in the same cuts as beef – steak, roasting joints, escalopes, mince and casserole meat – there are additional special-ities such as liver and shin (Osso Bucco). Unlike white veal where the calf is reared to 16-20 weeks old entirely on milk, rosé veal is fed milk replacer to a maximum of seven litres a day until they are eight weeks old, by which time they have been weaned onto a calf pellet. As a result the rosé veal is much pinker in colour. The enterprise is worthwhile says Roger, with the bulls killing out at about 150kg. One example
Roger and Gary Mason have developed a niche market for their bull calves.
Heifer transponders send data to an aerial fixed on the gable of the barn.
is a seven-and-a-halfmonth-old bull which sold to a local butcher for £4 per kilo, killing out at 171kg which would be more than double the value of a Holstein bull calf sold store
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High yielders (housed): r30kg grass silage r8kg maize silage r0.5kg straw r8kg blend r1.25kg Scotmol (molasses) r0.35kg Megalac r0.05kg yeast r0.1kg acid buff r0.125 minerals Low yielders (out at grass with access to feed at night): r15kg grass silage r0.5kg straw r3kg blend r0.5kg Scotmol r0.125kg minerals Dry cows (housed three to four weeks prior to calving): r16kg grass silage r5kg maize silage r4kg chopped straw r2.5kg blend r1.0kg Scotmol r0.45kg Advanced Precalver 450I/F (complementary mineral fed for non lactating dairy cows).
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down the shed. In addition, neck transponders allow computerised data to be compiled for each calf. By three to four months of age they are transferred from the rearing shed to the straw bedded finishing shed, where by eight months old they achieve a carcase weight of between 130kg and 150kg. They are finished on a specialist 15% protein blend to put on meat not frame. Most of the bulls are sold to Swaledale Foods, Skipton, and are slaughtered at Aireys in South Cumbria. “Rosé veal is 100% welfare friendly in the way the animals are reared,” says Roger. “The world is short of food and it’s such a waste for these bull calves not to come into the food chain.
“It’s not a huge market – and it has to be guaranteed as there are no other viable outlets for this type of animals. We have a large amount of capital tied up in the new building and calf feeders as well as the feed, so we need to protect our end market.” Numbers Herd numbers and yields have been steadily rising with the number of cows in milk increasing to 155 and likely to go to 180. The emphasis is on breeding herd replacements and self-sufficiency, and around a third of the herd are currently heifers. Yields have risen to 9700 litres and are expected to peak at 10,000 litres this year. The herd calves yearround and Roger and Gary
work with WorldWide Sires’ mating programme in selecting genetics to produce a functional cow with the conformation of the bull calves taking second place. Both Roger and Gary carry out AI on the herd, and being keen to closely monitor bulling activity they were one of the first farms to use the Dairymaster-Cogent PinPoint Plus in December 2014. Initially, 120 transponder collars were purchased with the aid of a grant, and now the Masons are looking to purchase a further 100, with grant aid. Bulling heifers are outside in the summer and fitted with transponders which can monitor activity via an aerial on the barn from a distance of 200m in a
The calf rearing shed with automatic feeders – veal bull calves are transferred from here to the straw bedded finishing shed where by eight months old they achieve a carcase weight of between 130-150kg.
OCTOBER 2015
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YOUNGSTOCK
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Welfare Health and welfare is a priority and there is a routine weekly visit by the vet. The herd is vaccinated for BVD, leptospirosis and IBR. Cows are milked twice-a-day in a modern parlour which is part of a purpose-built dairy unit. They are currently fed in three groups through a diet feeder to 28 litres – high and low yielders and a group of 30 heifers – and they are topped up in the parlour at 0.4kg/litre of concentrate. In 2011, Heaves Farm received an award made by the Westmorland Agricultural Society for the best managed farm, recognising the quality of its stock, crops and grassland. Heaves Farm is also part of the Environmental Stewardship Scheme, carefully managing the land to maximise grass production and nutrition, as well as looking after hedgerows, stone walls and wildlife. The farm boasts a bespoke system to collect rainwater from the large area of roofs and this is reused on the farm. In addition, there is a recently drilled bore-hole drilled 186m down into the limestone below the farm, providing natural spring water for the animals to drink.
Bulling heifers are outside in the summer and fitted with transponders to monitor their activity.
V
circle or 2km in a straight line. Activity from resting, feeding and other behaviour is stored in a cloud which can then be accessed by Gary and Roger from their phones and mobile devices – Gary was able to keep check on the herd while on a skiing holiday in France earlier this year. As a result, fertility rates have improved. The activity monitor also alerts any potential health problems with the animals as it detects rumination, feeding timers, resting times as well as activity.
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OCTOBER 2015
DAIRY FARMER
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IRISH DAIRYING
The Irish dairy industry’s ambition, namely of growing output by more than 50% to eight billion litres a year by 2020, makes it an industry to be watched with some trepidation. Ben Briggs reports.
Irish work together to meet expansion target
F
or outsiders it is easy to dismiss Ireland’s talk of 50% growth as rhetoric led by the country’s Government, but speak to some of the industry’s leaders and producers and you will encounter an almost evangelical shared belief about where the industry is heading and how it will get there. With the shackles of quota off, and despite super levy fines in 16 out of 31 years, the industry bodies we spoke to talked about a ‘cohesive project’ which unites farmers, processors, trade bodies, levy boards and Government, and is an approach which in the past has allowed them to market their produce to all parts of the world.
Catherine Lascurettes: cohesive.
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There is a belief there is plenty of potential to reach the 50% increase with the animals already on the ground.
But where did the 50% target come from in the first place? Its origins, as Irish Farmers Association sector chief Catherine Lascurettes and Co Meath farmer Eddie Bannon pointed out, was in the death of the Celtic Tiger property boom which was built on cheap credit and plunged the country in to a debt crisis the likes of which is currently tearing Greece apart. And as the Government searched for hope, and cash, it chanced once again upon agriculture. Ms Lascurettes said: “The 50% growth target for dairying by 2020 emerged in 2010 when we had a Government in dire straits and an economy coping with austerity. There was a
OCTOBER 2015
rediscovery of agriculture as a sector which could create jobs and wealth, so it [the Government] produced a manifesto which set targets for all sectors of agriculture.” Ripples Not that the resurgence of farming has been an easy process, as Mr Bannon explained, with the ripples of the Celtic Tiger fallout continuing to be felt. He said: “Labour is a big problem for farmers because to manage a dairy herd or stock you have to have the right skills and feel for the animals, which many don’t have. “We had a generation go and chase money in
construction and related industries during the Celtic Tiger years and many have not returned, so we have a skills shortage.” But he was clear things were starting to change. “We are starting to see young men get back in to agriculture and dairying and realise it is a sustainable industry and way of life. What they want, however, is to know they can have a good wage, standard of living, holidays and weekends out with their mates, and there is no problem with that.” With the foundations laid and the aspirations in place, there is a belief that with Ireland’s cows currently averaging just 5000 litres, there was plenty of potential to reach the 50% target with the animals already on the ground. “Grass and grazing is what powers our industry over here,” said Mr Bannon. “We have a grass-based system which keeps costs lower than some and means we can ride out price blips like we have at the moment. “What we also benefited
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IRISH DAIRYING from in Ireland is processors who have invested greatly in stainless steel [new equipment] in their plants so we have capacity to process that milk.” Extra milk, however, means extra demand and, as the parlous state of the global industry is testament to at the moment, there seems to be little appetite from buyers as China sits on its hands and the Russian trade ban causes ongoing havoc. Realistic Ms Lascurettes was realistic. She said: “Short-term, there is trepidation but we have not had the same crisis as the UK because we have a more cohesive industry and while our prices are lower, our costs of production are lower as well. “Many are currently at between 28-30 euro cents per litre [20-21ppl] and 30 is a psychological barrier because it allows a margin. Volatility is a big issue and markets are now cyclical and likely to turn quickly. “For the longer term we have an industry with a common project. From Government manifestos to farmers to co-operative processors, there is confidence a really cohesive project is in hand which is not about growing for the sake of it, but is growing because there is increasing demand globally and from emerging economies.”
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This was where, as Mr Bannon and others said over and over, the investment in ‘stainless steel’ would allow the industry, they believed, to grasp the growth opportunities once the downturn subsided. With processing capacity for a range of products and no over-reliance on the liquid milk market, the industry had developed a strong base of brands through which milk was sold globally.
OCTOBER 2015
Ornua, formerly the Irish Dairy Board, is pivotal to ensuring the products find new markets beyond the small Irish population. Representing 85% of all Irish suppliers and finding an export home for their milk, it has built markets in 100 countries and means brands such as Kerry Gold boom on the world stage. Mark Faherty, Ornua group economist, said: “There is a romantic image [worldwide] of a wild
island in the Atlantic and this image has been sustained because there is a truth to it. Family farms and grass-based systems are at the heart of the marketing message and it is one which resonates with customers.” Threat So does the growth of Ireland’s dairy industry present a threat to the UK and others? Not as they saw it. Cormac Healy, of the Irish Dairy Industries
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Association, said the 50% target was ‘massive’ for the Irish economy and showed how important farming was for the country, but it still only represented a small proportion of a much wider global milk pool. Increase Ms Lascurettes added: “We plan to increase by 50% which will increase us from 0.7% of world production to 0.8% of a growing world production. It means we will increase from about 3.5% to 5% of a growing EU production.” Ireland’s industry leaders and dairy farmers might downplay their importance on the world stage, but the investment in processing capacity and brands has seen it lay the foundations for the future. While its farmers are struggling at the moment, the belief in a ‘cohesive project’ is something UK farmers, processors and Government could no
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doubt draw inspiration from. It has been said by many commentators that UK dairying lacks capacity, especially in areas such as milk powder and added value products. And Ms Lascurettes said: “I have said to colleagues at NFU, NFUS or UFU that while the current crisis is price driven, there are bigger and more serious issues within the UK dairy industry and they are structural. “You have struggling co-operatives and divided processors which do not have a vision for growth. More milk is produced but there is no defined collaborative project on how to create new markets for it. “Are they working hand in hand or do you supply a raw material to an industry and manufacturer which does not care,” she questioned. John Jordan, Ornua’s new head of Adams Foods in Leek, Staffordshire, which
OCTOBER 2015
You have struggling co-operatives and divided processors which do not have a vision for growth Catherine Lascurettes
“
handles all of the First Milk cheese contract and packs Pilgrims Choice and others, said the need for UK processors to develop viable export markets was crucial. Ornua is the export body which markets dairy products globally on behalf of its 12 co-operative board members. With Kerry Gold the third biggest butter brand in the USA and largest in Germany, Ornua has been operating in those markets for decades with staff gradually building
relationships with suppliers, showing there were no easy wins when it came to exports. It was a similar scenario in Algeria where Ornua works hard to market milk powder to small retailers, and where Kerry Gold vans are a common sight on the country’s streets. Cheese plant Ornua head of corporate communications, Jeanne Kelly, said the organisation was in the process of building a cheese plant in Riyadh, Saudi Arabia, to service that region. “We have co-ordination throughout the supply chain,” said Ms Kelly. “That co-ordination is crucial because we know what product requirements are in countries such as Algeria and we are able to work with processors to make sure they are meeting them. If you work in independent silos you cannot achieve the kind of access we have seen.”
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**DF Oct p34 39 Nutrition NZ_Layout 1 17/09/2015 14:55 Page 1
NUTRITION Cubicles and robots are not the usual image of New Zealand dairying, but one producer on the North Island seems to be making them work for him.
Robots find their way into NZ grazing system
M
ilking 300 mainly Friesian autumn and spring calving cows with the help of one full-time employee and his wife, who rears the calves, David McConnell has built an impressive set-up by anybody’s standards. Four robotic units handle the milking, but grazing, which is still the main forage, is backed by meal fed during milking and a mixed buffer
ration in the cubicle barn. The cubicle barn itself is flush washed with recycled water, topped with solar panels and features another robot to push up the silage. However, it is the fact Mr McConnell's farm is based in the Waikato region of New Zealand’s North Island, just outside the town of Hamilton, that makes it really stand out. In a country where rotary parlours and spring calving are the norm and cubicles are a rarity, Mr McConnell set out to achieve double the national average
lactation yield, which stands at around 350kg milk solids (MS), or 4000 litres/cow at 8.75% MS. Challenge “There were quite a few reasons why I chose this type of set-up,” explains Mr McConnell. “Mainly, I like a challenge. I was also still enjoying farming, but getting tired of milking cows, and I like developing systems from the ground up. “Having moved back to the Waikato – where I was brought up – after selling
our previous dairy unit in the South Island, I was looking for something that would keep me interested.” Bought in 2012, the unit originally housed a 20:20 herringbone parlour in a typical New Zealand opensided milking ‘shed’. The pit was filled in and the first three robotic milking units installed in August of that year. A fourth unit followed 16 months later. The 150-160 cows milked on the farm in the first year expanded to 180, then 230, reaching 300 at the start of
David McConnell set out to achieve double the national average yield with his system of robots and buffer feeding.
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OCTOBER 2015
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NUTRITION
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OCTOBER 2015
The ration is fed out once-a-day in the morning, when the robot is reset.
2014. Yields were immediately 20% higher than the national average at 420kg MS, rising to 520kg MS by the second year and hitting 600kg MS during the 2014-15 season. “Around 75 cows per robot is the target, and the aim is to produce 210,000kg MS from 300 cows, rather than the 600 cows most New Zealand farms would need,” Mr McConnell adds. “We’re doing that off 70ha of grazing here, plus a 25ha support block growing maize and annual grass for silage.” Cows are fed to yield for the first 100 days of lactation, receiving up to 6kg/day of meal during milkings, which is then reduced to a flat rate of around 3kg/day. The buffer ration is adjusted to maintain around 1450kg DM/ha post-grazing grass cover, with a typical example shown in Table 1. The result is an overall diet supplying 11.2 MJ ME/kg DM at 17.7% crude protein when 3kg of concentrates is fed, with a total di-
gestible fibre (NDF) content of around 37%. In addition, up to 200kg/cow of palm kernel – along with extra grass silage – is fed each year to bulk up the buffer ration as and when needed to reduce grazing pressure and rebuild grass cover. Ration “We feed out the ration once-a-day in the morning, and that is when we reset the robot unit that pushes up the feed,” Mr McConnell explains. “It does this automatically 10-12 times during the day, moving in 200mm with each pass, and we turn it off overnight. “The cows have access to the 300 cow-space cubicle shed and feed passage whenever they’ve passed through the milking units, and it’s up to them when they move on to the next paddock. They tend to loiter in the shed longer during hot days, for example, and we only ever shut them in over night to protect the pasture when the weather is really bad.” The cubicle shed itself is
**DF Oct p34 39 Nutrition NZ_Layout 1 17/09/2015 14:57 Page 3
NUTRITION
Th he mark
This complex looking shedding system determines which paddocks the cows are allowed in to.
flushed washed with ‘green’ water from the effluent lagoon, with solids removed by a separator unit. Solids are spread onto the maize ground, with the effluent spread onto the grazing block through an irrigation system. The farm buildings are situated towards one end of the farm, and the single original race, which provided access to broadly uniform sized paddocks off to the left and right, has been supplemented by two additional tracks running parallel. These split all the paddocks in half to create the necessary network of smaller paddocks needed for the robotic milking
system to operate. The additional paddocks created have no water. “Cows are free to wander back from the paddock when they want, then after milking they have access to both the mixed ration in the cubicle shed and the next paddock along another race,” says Mr McConnell. “Once all cows have been milked, we switch the gates around and set up the next paddock.” Replacements are reared to weaning by Mr McConnell’s wife Glenys, and are then grazed off-farm on contract until returning to calve at two years of age. Cows not in-calf are sometimes carried over into the
Table 1 – Typical spring diet for the mixed herd of autumn and spring calvers Daily feed intake (kg/cow) Fresh weight Dry matter Grazed grass 34.0 8.5 Meal (fed to yield) 3.0-6.0 2.6-5.2 Buffer ration*: Straw 0.7 0.6 Maize silage 16.1 5.0 Grass silage 16.1 4.5 Molasses 0.5 0.4 Total 70.4-73.4 21.6-24.2 * Also includes lime flour (100g/cow), magnesium oxide (25g/cow) and a mineral premix (5g/cow).
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**DF Oct p34 39 Nutrition NZ_Layout 1 18/09/2015 10:57 Page 4
NUTRITION With the system well set up and heading towards target in terms of yield, David was open to the idea of a yeast trial when it was suggested by Philip Harrison of AgriFeeds, which supplies most of the farm’s bought-in feeds. The improved digestibility when feeding the yeast also had a noticeable effect on the volume of manure solids coming off the separator.
next calving group, an advantage of calving in spring and autumn. The final innovation is the 40 kilowatt solar system on the roof of the cubicle shed. Although an increasingly common site in the UK nowadays, it is surprisingly unusual in New Zealand,
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despite the additional sunshine hours most years. “The panels generate enough power to run everything during the day, most days, and we’re just drawing additional power from the grid when we need it. We don’t export any excess power, it’s just not worth it.”
OCTOBER 2015
Live yeast The farm was identified as an ideal location for a farmscale trial into the benefits of including a live yeast in the diet, with the ability to collect individual data across 300 cows, sieve manure samples from the cubicle shed and produce results relevant to both grazingbased systems and those
relying more heavily on mixed rations. The result was a 30% improvement in dry matter digestibility, an average rise in daily milk yield of 2.1 litres/cow, and up to 20kg increase in cow liveweight (LW) in just five weeks. “I had no expectations when we started, it was just an interesting opportunity to see what the yeast would do,” he explains. “The extra milk yield was obvious from early on, and although it was most noticeable in the fresh calvers, there did seem to be a useful increase from most of the cows.” Monitoring changes in overall diet digestibility was
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NUTRITION
The natural choice for healthy growth and performance
is it (E us Pa dm o n v u D ilio nd Sta a ir n) R nd y a Sh at ck 136 o Th w e
Condition “To see the extra milk produced without the cows losing any body condition, and actually gaining weight, was impressive,” Mr McConnell says. “The drop-off when we took the yeast out of the ration was also easy to see from the data coming into the computer each day.” The improved digestibility when feeding the yeast also had a noticeable effect on the manure solids volume coming off the separator. “We usually have to push up the pile of solids every three days, but after the yeast was added, this extended out to around once every couple of weeks,” he adds. “The cubicle barn was also easier to flush, with less sticky manure, and the volume of solids definitely increased again when we took the yeast out. “When we put the yeast back in, the cows responded just the same as they’d done first time around, and we’ve been using it ever since.”
Cows have access to the cubicle shed and feed passage whenever they have passed through the milking units, and showed a 2.1-litre yield lift on the trial.
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critical to understanding where the improvement in milk yield came from. To provide the necessary data, manure samples were collected and sieved using a standard NASCO sieve set for five days each week (Monday to Friday). This was done before the yeast (Vistacell at 4g/cow/day) was added to the ration, throughout the five-week trial, and for two weeks after the yeast was removed. The results showed a rise in daily milk yield over the course of the trial (2.1 litres/cow) and an increase in cow liveweight (up to 20kg) which were matched by a 30% rise in dry matter digestibility. As feed material was more thoroughly digested into smaller particles, a greater volume was able to pass through the progressively finer sieves.
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OCTOBER 2015
DAIRY FARMER
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Facing a winter of low milk prices, producers will be looking closely at the basis of their herd’s ration and, according to Hefin Richards of Profeed Nutrition Consultancy, there may be opportunities to reduce costs provided care is exercised. Ann Hardy reports.
More cereals in ration could lead to acidosis
T
his winter it will probably be more important to review dairy rations than at any other time in recent history, according to independent nutritionist Hefin Richards. His advice reflects the fact not only is the current milk price at a historic low and the economic climate vastly different from the same time last year, but the cost of some types of feed ingredients is also significantly lower. This means there may be scope to lose some costly ingredients from rations, and an opportunity to use more of the lower cost ones. Cereals provide a good starting point, according to Mr Richards, who says there could be scope to safely include more in some rations. With ex-farm prices now hovering around the £105/tonne for wheat and £95/t for barley, he says they provide a cost effective source of energy – which is often a ration’s first limiting nutrient. “Of course there are dan-
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There may be scope to lose some costly ingredients from rations this year, according to Hefin Richards.
gers associated with feeding high levels of rolled cereals as they are high in rapidly fermentable starch which can lead to acidosis,” he says. “But there are opportunities to use caustic-treated grain, which provides a slower rate of starch breakdown and is more rumen friendly. “Grain processed with urea-based products, and moist crimped grain, will also generally be considerably less fizzy and therefore allow for higher levels to be safely fed. “As a rule of thumb I’d say 3kg/day is a safe inclu-
OCTOBER 2015
sion level for rolled wheat in a TMR, although barley and oats are progressively safer,” he says. “Keep a very close eye on cow signs and behaviour if you are feeding any more than 3kg/day.” Opportunity The opportunity to increase this safe level may exist when the cereals are fed alongside high quality, high dry matter (low acid) forage, but also where there are high levels of cow comfort. “Lying time is a nutritional issue – if the cow is lying comfortably and cudding, she is producing bicarbonate which buffers acid,”
he says. “Equally, if she is lame, she is unlikely to lie for as long as a healthy cow, which in turn means she will ruminate less and neutralise less acid.” But where inclusion rates for cereals are edged higher, Mr Richards says a close watch must be maintained for any sign of acidosis. This includes monitoring dung consistency, cudding rate, evidence of regurgitated cud balls, and general demeanour, and also keeping an eye on milk butterfat levels which may go down if rumen health declines. However, if cereals are caustic treated, then as a
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**DF Oct p40 42 Nutrition Acidosis_Layout 1 17/09/2015 15:17 Page 2
NUTRITION rule of thumb, twice the freshweight of caustic treated wheat can be fed than rolled. “For example, instead of safely feeding 2.5kg of dry rolled cereals you may feed 5kg of caustic treated cereals,” he says. This is illustrated by the 2.5kg of dry cereals at 15% moisture equating to a DMI of 2.125kg, while the 5kg of caustic-treated cereals at 30% moisture gives a DMI of 3.5kg. “Although the caustic treated product contains a higher level of moisture, a more stable rumen pH will stimulate forage intake and utilisation,” he says. Relevance With cereals maximised in the ration, attention can then turn to the higher cost ingredients including supplements and licks, each of which should be questioned for its role and relevance. “I don’t subscribe to the view you should throw everything out that looks expensive, but it’s critical to evaluate each ingredient on an individual farm basis. “Similarly, if you put something in two years ago and you left it in because it did a good job, you might actually find that you don’t need it now,” he says. “The forage base will have changed, and concentrate feeds will have been amended, so any issues occurring then are unlikely to
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DAIRY FARMER
Analyse your forage to get a grip of its potential Hefin Richards
“ recur this winter.” This could be the case with an ingredient like molasses which may have been introduced to boost intakes of low palatability silage and to make up for low sugars. “But this year, if your silage sugars are higher – say upwards of 4.0% – and your dry matters better, you are unlikely to need it,” says Mr Richards. “Equally, in the present economic climate it may be more appropriate to make up an energy shortfall with cereals.” Rumen buffers are another potential target which may have been introduced when silage quality was poor. “If you had acidic silage and cereals in the ration, 5p worth of rumen buffer may have been the key that allowed this ration to work,” says Mr Richards. “But if this year’s silage is drier and there are no signs of acidosis, it may be possible to take the buffer out.” Similarly, he says mycotoxin binders are often used as a ‘catch-all’ and including them in a ration is always a safe option. “That was easy a year ago with milk at 30p+/litre but
OCTOBER 2015
is more difficult to justify today,” he says. “For many it may now be best to gradually remove the binder, and only reintroduce it if a problem is suspected. “Alternatively, you could take a risk-based approach, excluding it if you have well-preserved silage with no visible problem and little cereal in the diet but including it if, say, you have high yielding cows on products more susceptible to mould, such as dry forage and moist grain.” Rumen-protected fat should also be up for review according to Mr Richards, particularly for herds paid for A and B quota milk. “It’s important to see whether you are using protected fats effectively and, if you are, you may get the generally projected two litre response,” he says. However, this is less likely to be the case if protected fats are fed after 200 days in milk, when they are unlikely to be cost effective. “If you are using them in early to mid-lactation you are probably seeing the desired response but you must evaluate what’s economic
for your herd,” he says. “If you are on an A and B contract you will need to be mindful of the price you’re receiving for any extra milk, as if it’s around 14p/litre then protected fats will not be economic.” Decisions Every decision must be made on an individual herd basis and with a full and regular analysis of the farm’s own feeds. “There is no blueprint that can be applied across herds and it’s no good dwelling on national averages as every situation – whether for forage quality or milk contract – is subtly different for each herd,” he says. “Analyse your forage to get a grip of its potential and repeat the analysis as time goes on to pick up any change. “It sometimes takes this kind of economic situation to force us to revisit things that can help improve our efficiency of milk production. “The trade may urge you to cover all risks while others may encourage you to throw everything out,” he says. “But in the real world, there are situations which merit the use of some ingredients and others which certainly do not. The devil is in the detail, so I’d suggest you objectively review your own circumstances and come up with a solution which is tailored for your farm.”
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**DF Oct p44 46 47 Nutrition _Layout 1 18/09/2015 13:46 Page 1
NUTRITION
Resurrecting a straw-based product from the 1980s has helped solve an underlying acidosis problem on one Dyfed dairy farm – and paved the way towards future expansion.
Treated straw used to combat high acid load imon and Kim Stanfield, their son Christopher and Simon’s father Malcolm, run a 310-cow herd of Holstein-Friesians at Trefaes Fach Farm, near Beulah, plus youngstock, followers and beef store cattle. The farm covers 500 acres, of which 160 acres is owned and 340 acres rented locally. With a newly-installed 24:48 herringbone parlour now operational and work un-
S
derway on a state-of-the-art cubicle shed with deep sand beds for 270 cows, the Stanfields have plans to expand to 400 cows within the next few years.
Autumn calving Simon says the herd currently tends towards autumn calving, which fits both his milk contract and the way the family likes to focus its efforts in different directions at various times of the year.
“We’re up near 11,500litre average now at 3.9% butterfat and 3.3% protein on just twice-a-day milking,” Simon explains. “We don’t want higher yields at the moment as it would force us to move to threetimes milking before we’re ready for it. But once the new cubicle shed is up, we’ll be increasing production.” The family is upbeat about the future despite the current pressure on milk prices, and is confident
Simon Stanfield’s herd had sub-acute ruminal acidosis which was tackled by using nutritionally improved straw pellets.
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expansion into a higher yielding system is the right route for them. Although they have a grazing infrastructure with a network of tracks and paddocks, once the new shed is up cows will be spending more time indoors. “There’s a big focus on low cost milk from grass at the moment, but we’ve done that and it just doesn’t work for our cows, our farm and our milk contract,” says Simon. “What works for us is a system that lets us monitor the cows closely and manage them tightly around calving and transition in particular.” Mozzarella He explains all their milk goes to Glanbia for mozzarella production, so there is a seasonality bonus for winter milk. “But a bias towards autumn calving also suits us well. Because we rear our own replacements, we can focus on calving when we have lots of time to get cows safely through the transition period. This leaves the spring and summer quieter from a milking, calving and service perspec-
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OCTOBER 2015
NUTRITION Costings table 2kg less straw (540kg @ £90.00/tonne) 100kg less Bicarbonate Add 2kg of NIS (540kg @ £130.00/t) Feed benefit per day Extra milk (540 litres @ 24ppl) Value of extra Butterfat Milk benefit per day Gross herd benefit per day
tive, so we can turn our attention instead to making good silage.” But despite their focus on forage quality, the Stanfields hit a problem last winter when they reached the first cut silage in the clamp. Simon says it was not that the quality was poorer, but that the silage had an extremely high acid load and significantly lower levels of NDF.
Butterfat levels Initially cows continued to milk well, came bulling and conceived on schedule. Then butterfat levels started dropping – falling to 3.3% at one point. Also the cows were looking a little listless and hollow, and their manure was becoming less consistent. Simon says: “We already had straw in the ration at the rate of 3kg per cow per day, so we initially tried increasing the level of processing of the TMR ration to get more straw into the cows. “We suspected sub-acute ruminal acidosis (SARA) and thought the problem was the cows were sorting the ration and not taking in enough fibre. But all we ended up doing was break-
£48.60 £35.04 -£70.20 £13.44
£129.60 £71.37 £200.97 £214.41
ing down the fibre into smaller pieces through overmixing, which exacerbated the problem.” “We then started adding sodium bicarbonate to the ration to try and balance the acidity, but we reached the maximum of 0.4kg per cow per day and still the problem persisted.” They talked the issue through with technical adviser Dr Huw McConochie from Wynnstay. Dr McConochie says: “When it comes to achieving high yields, increasing and maintaining dry matter intake is the key. People often try to boost nutrient intakes by increasing nutrient density, replacing forage with starchy concentrates. This results in a heightened risk of acidosis and often a lower intake of dry matter and energy. Increasing dry matter intakes of rumen-friendly ingredients is far more effective. “Getting the base diet balanced with sufficiently high levels of forage NDF was critical at the Stanfields because they top up in the parlour, which introduces an additional acid load but also displaces some forage intake outside.”
**DF Oct p44 46 47 Nutrition _Layout 1 18/09/2015 13:48 Page 3
NUTRITION Dr McConochie suggested the Stanfields cut out the bicarbonate all together and replace half the chopped straw – 1.5kg per cow per day – with nutritionally improved straw (NIS) pellets. As soon as NIS was added to the diet, intakes went up, cows had better rumen fill, manure became more consistent, and milk constituents recovered. Pellets The pellets are made from chopped straw treated with caustic soda to make the straw both alkaline and digestible. Popular in the 1980s, it fell out of fashion as mixer wagons took over and use in the feed industry has remained at a relatively low level since then. Now, however, modern dairy diets seem to have created a new place for the product. Dr McConochie calculates switching to the pellets produced a small beneficial difference in cost of £13.44 per day, but recovery in milk constituents and yield was worth £200.97, and that was without factoring in potential long-term impacts there might have been on yields, fertility and mobility had SARA continued. (See table). He says: “I actually prefer NIS over straw because it not only adds digestible fibre, which encourages the growth of fibre-digesting bacteria, but is also an effective way of delivering buffering capacity into the
It not only adds digestible fibre but is also an effective way of delivering buffering capacity into the rumen Dr Huw McConochie
“
rumen. However, it is still important to ensure good diet structure to promote an effective rumen mat. “It is also a great feed to maintain butterfats and reduce the acidity in the rumen in grazing cows. However, in extreme circumstances where forages are particularly low in NDF, it’s still important to include hay or haylage in the diet.”
Lactic acid Dr McConochie explains most buffers added to TMR use up most of their buffering capacity before getting to the rumen, so are less effective at buffering the most significant source of acidity – the accumulation of lactic acid. “NIS addresses the two most important factors which contribute to SARA – lack of digestible forage fibre and reduced buffering capacity,” he says.
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**DF Oct p48 50 Nutrition Maize_Layout 1 17/09/2015 15:32 Page 1
NUTRITION Dairy producers should reconsider how they grow, harvest and preserve their forage maize at the end of a typical British growing season in which yeast and mould populations are likely to be high.
High spore count may put maize clamp at risk
M
aize growers may feel that the combination of low temperatures, a wet end to summer and a persistent, cold north wind have made their crop difficult to grow this year, but according to agronomist John Burgess, of seed specialist KWS, it has just been a typical summer. “Yes, it has felt cold at times and August was certainly wet,” he concurs. “But the total accumulation of heat units has so far been average and overall rainfall has not been excessive.”
Growers may need to reconsider their growing options in the light of this season’s results, says John Burgess.
Typical In fact he says UK farmers need to accept these are the features of a typical UK summer and the exceptional growing conditions of the previous year will only rarely be repeated. This means they may need to reconsider their maize growing options in the face of the season we’ve just had, as plan-
ning for a season like 2014 will usually lead to disappointment. “Last year may have lulled some into a false sense of security but, in fact, 2014 was a vintage season for maize that you wouldn’t expect to be repeated more than once in 10 years,” he says. Plan for another year like 2015 is his recommendation, and for those with maize still to harvest,
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OCTOBER 2015
Last year may have lulled some into a false sense of security John Burgess
“ measures can be taken now. High yeast and mould
populations are likely to be features of the 2015 crop as the recent wet August has
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**DF Oct p48 50 Nutrition Maize_Layout 1 17/09/2015 15:32 Page 2
NUTRITION provided the right conditions for their proliferation. Andy Strzelecki, from forage preservation specialist Kelvin Cave, says choosing the right preservative when ensiling maize can deal with both of these micro-organisms which can be responsible for significant dry matter losses in ensiled maize. “Maize silage ferments very easily but is almost always prone to aerobic instability once the clamp is open, so I’d recommend a preservative which can knock out yeasts and moulds,” he says. Storage stability “Using a product which contains high concentrations of the human food preservatives sodium benzoate and potassium sorbate, which are proven to eliminate yeast and mould growth without compromising fermentation, guarantees reliable long-term storage stability,” he adds. However, he warns there is no silage additive on the market which will eliminate mycotoxins which are produced by moulds, and may already be present on the crop if it is diseased at the time of harvest. “If the crop being harvested is already infected you may need to use a mycotoxin binder at the time of feedout,” says Mr
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DAIRY FARMER
The ideal is to get the crop harvested in a clean condition and ensile it well to avoid any spoilage Andy Strzelecki
“
Strzelecki. “But preventing further mycotoxin production in the ensiled crop can be achieved by eliminating the moulds which produce them. The ideal is to get the crop harvested in a clean condition and ensile it well to avoid any spoilage in the clamp or at feedout. “But growers should be aware that yeasts and moulds are not always visible to the naked eye,” he warns. Another feature of the 2015 harvest has been slow and late ripening, which again has been brought about by the lack of heat over summer. Steve Jones, who manages Bridgwater College’s farm in Somerset, says some of his crop has been slow to mature and to reach the dry matter of at least 30% he requires for harvest. “By that time there may be problems with consolidation,” he says,
OCTOBER 2015
observing the crop could be very woody by the time it is dry enough to harvest. This means eliminating air from the clamp will be a further challenge and failure to do so will encourage the proliferation of yeasts and moulds. Nutritional value “Yeasts multiply in the presence of air and feed on lactic acid,” says Mr Strzelecki. “This means the pH starts to rise, moulds grow even faster and the silage becomes aerobically very unstable and loses nutritional value.” His advice is to pay close attention to compacting and sealing the clamp and again to choose a proven preservative for fast and long-term stability. For the future, Mr Burgess says decisions can be taken early in the season to help the prospects for next year. “This year, KWS advocated two strategies,” he
says. “This was to grow maize on land which you’re completely comfortable with and particularly that’s not too heavy, and secondly to choose your seed variety with care. “Rather than choosing the cheapest variety, we recommended using a leading, modern variety sown at a reduced seed rate. This means you’ll let in more sunlight and should get earlier ripening, as well as 1-2% more starch,” he says. “Reducing the seed rate by 5% from 105,000 seeds/ha to 100,000 seeds/ha will more than cover the cost of the more expensive, vigorous, early variety, and farmers who adopted this strategy this year have definitely enjoyed an earlier harvest.” He says managing for an earlier harvest should be an objective for everyone, and although the yield may be lower, the quality can be high. “People who are growing maize should be growing the best crop they can rather than muddling along with a marginal crop,” he believes. “The reality is if they’ve tried an early variety and a reduced seed rate, and they still can’t ripen their maize, then I’d question whether they should be growing the crop at all,” he says.
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**DF Oct p52 Dairy Day_Layout 1 18/09/2015 09:50 Page 1
UK DAIRY DAY Now in its second year, crowds homed in on UK Dairy Day at Telford to catch up on the latest thinking and see some top quality stock on display.
Gearing up to seize wider global market
U
K dairy farmers and milk processors are at risk of missing out on export markets if they lose sight of the world’s longterm market growth potential. Although conditions are currently tough, the industry needs to take a longer term view of global opportunities and position itself to expand and export, once market conditions allow. This message, from Andrew McLay of Promar International, reflects his view that the only room for expansion of UK dairying will have to be from exports.
Describing the UK market itself as ‘very mature’ and domestic growth potential as ‘limited’, he was confident there was ‘plenty of potential left in China’ and significant opportunities in the Middle East and Africa. Good place “The UK is in a fundamentally good place to produce milk but we need more processing capacity to do it,” he said, citing good companies, good technology and good farmers as national assets. However, he said this did not just mean building processing plants but involved product innovation, investing in research and develop-
The supreme Holstein champion was fifth lactation Berryholme Infloence Linda 3, from Francis and David Wright, Helsington, Kendal. Scored EX95 and home bred, she calved in March and was reserve champion at this year's Great Yorkshire Show.
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Andrew McLay: opportunities.
ment, and having a deep understanding of customers and a knowledge of where their markets were moving. “You can’t do that by sitting in England,” he said, suggesting the UK was trailing its competitors. Citing international players Arla, FrieslandCampina, Fonterra and even US companies such as Hilmar Cheese as already well established, he said: “Everyone wants to be part of it.” However, he said there were a few ‘shining stars’ which were exporting UK milk, including Volac (exporting whey powders and protein products) and Glanbia (exporting mozzarella made from British milk). “We need more like them, or for Arla or Muller to
choose the UK as a milk field for export,” he said. However, he added competition was fierce, with almost every country in Europe also planning to expand, leaving only the best to prosper. “If you are producing commodity products you are competing with the lowest cost producers and the most efficient processors,” he said. “But does the UK want to compete in the commodity markets?” Instead he suggested a better strategy was exporting high value products to rich sections of emerging markets which was ‘realistic but not easy’. “For this to happen we need more farmer confidence, more stainless steel and more market development,” he said. “But at the moment we haven’t got enough of any.” Despite concern that a lack of processing capacity may ‘put the brakes on UK production’, he said: “We need to take a long-term view. Emerging markets will grow and someone will supply that milk – it could be the UK.”
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UK DAIRY DAY
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T
he Genus ABS Longlife Cow 2015 is Lliwe Rosette 25 EX95 (8E) (pictured) from B and V Davidson’s Errolston herd, Gretna, Scotland. The cow was born in 1998 and is still going strong in her 11th lactation, with a lifetime yield to date of more than 152 tonnes, outstanding conformation and exceptionally low cell counts, averaging 76 over her productive life. Craig Davidson, who
received the award for the family at UK Dairy Day, said: “She has consistently got back in-calf despite having had two sets of twins and a period of embryo transfer. I wish I could clone her as I will never milk a more profitable long life cow.” Three other country finalists were: ■ England: Amber Lovely Lily 28 EX90, a 15th lactation cow with a lifetime yield of 110 tonnes, owned by J. Hole and Sons,
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**DF Oct p54 55 Dairy Day_Layout 1 17/09/2015 15:15 Page 2
UK DAIRY DAY
Achieving higher margins
B
ritain’s highest margin dairy farms achieve their better financial performance from the same costs of production, according to a landmark annual survey undertaken by Rural Business Research. The top 25% farms achieve a huge extra margin – representing £725 more per cow than the bottom 25% – by producing 1800 litres more milk per cow per year and achieving higher value calf sales. Their extra performance comes despite having similar costs of production to the lower performing herds. Their milk price per litre is just marginally higher than the bottom herds by 1.3ppl. When costs were broken down for this survey – which forms the basis of the John Nix Farm Management Pocketbook – some individual costs were higher for the more profitable herds. These costs included vet and medicine, forage production, consultancy fees, other livestock expenditure such as AI, foot trimming, teat dip and milk recording fees, all of which were greater on the more profitable farms. Ratios However, the top performing herds are spending less on concentrates and bought-in bulk feeds which results in a substantially better milk to concentrate ratio in the higher margin herds. The report authors also made projections for 2016 and said if milk prices remained at an average 24ppl, yields increased by 2.5% and input prices fell, the average 2016 gross margin would be down to £889 per cow – a fall of almost £400 since 2014. They also said the gap between the best and
worst would widen in these circumstances from 45% to 48%. Helen McHoul, lead author of the report, said: “The most profitable farmers are getting a lot more milk for their concentrates. Farms in our lower profitability group spent 11.1p on concentrates per litre of milk whereas those in the top performing category spent only 8.6ppl.
“The big difference separating top performing farms from the lower performing farms is productivity,” she said. “We see little variation in variable or fixed costs. Obviously every farm is different but while milk prices stay at current rates, those farms in the top performance quartile are in a far stronger position to move into the future.”
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**DF Oct p56 Dairy Show Trow_Layout 1 17/09/2015 15:18 Page 1
UK DAIRY DAY
With more details of first, second and third cut grass silages and fermented wholecrop becoming available, a better picture is emerging of winter feeding prospects.
Silage analysis shows potential for more milk
P
roducers may be able to take an extra two litres from their first cut silage this winter, but they must be careful not to precipitate acidosis problems. That is the message from Trouw Nutrition GB coming from the samples it has put through analysis so far this year. Technical director Dr John Allen says: “First cuts combine higher dry matter, better nutrient content and greater intake potential than 2014. Together, these add up to a potential two litres per cow per day more milk than the 2014 average. In addition, more crops are better quality, with 47% of crops samples being more than 11ME. “However, an increase in sugar content combined with lower fibre levels, but greater digestibility, means a higher, rapidly-fermentable carbohydrate content leading to a greater acidosis risk.” The picture from second cut samples is similar. “With an average dry matter content of 32.9%, which is very similar to 2014, but with bet-
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DAIRY FARMER
We expect a higher acidosis risk due to a greater rumen acid load Dr John Allen
ter ME and protein contents, we would expect around 0.6 litres more from second cut silage this year on average. Again, we expect a higher acidosis risk due to a greater rumen acid load, and there may be problems with secondary fermentation.” Third cuts Dr Allen warns it is a little early to comment on third cuts, with only 200 samples analysed, but feed value and milk from forage potential look close to last year and he predicts third cuts will feed well. Initial results from 400 fermented wholecrop samples show a well-made crop. “Compared to 2014 we are seeing a slightly lower dry matter at 40.8%, a similar
Samples Dry matter (%) pH NH3-N of total N (%) Crude protein (%) D Value (%) ME (MJ/kgDM) Sugars (%) NDF (%) Starch (%) Rapidly fermented carbohydrate (g/kg) Acid load (g/kg) Fibre index (g/kg)
OCTOBER 2015
“ ME at 10.2ME, and starch at 23% is close to 2014. These crops could be an excellent complement to grass silage again this year by supporting increased forage intake, but the acidosis risk must be carefully controlled by balancing the supply of fermentable carbohydrates in the ration. “The higher fermentable carbohydrates in this year’s grass silage is equivalent to First cut grass 4200 30.1 4.0 2.5 13.6 68.0 10.9 3.4 46.2
Second cut grass 1400 32.9 4.2 2.3 13.9 66.1 10.6 3.8 47.0
204.6 43.4 188.7
187.6 41.0 191.9
feeding an extra 1kg/day of wheat compared to last year’s silage. So it will be important to select supplements which reduce acidosis risk, such as replacing straight cereals with wheat treated with caustic or ureabased processes or with crimped wheat. “Alternatively consider a more fibrous energy source such as soya hulls,” says Dr Allen. Third cut grass 200 32.8 4.2 2.5 15.1 65.3 10.5 3.5 45.8
Wholecrop
400 40.8 4.1 5.0 8.5 65.2 10.2 43.8 23.0
231.4 45.4 120.5
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**DF Oct p58 24 Hours in Farming_Layout 1 18/09/2015 09:57 Page 1
24 HOURS IN FARMING
WHAT DOES 24 HOURS IN FARMING LOOK LIKE?
T
his is what we, along with our sponsor BASF, set out to show on August 20, and here is just a snapshot of what was achieved. Almost 5,000 farmers and people working in agriculture tweeted during the day with other posts coming in via Facebook, Instagram, email and phone.
The first tweet of the 24 hours was from Scottish dairy and sheep farmer Andrew Paterson.
Almost
0 5,00 ts on
More than
More than
200
500
pos Twitter
posted videos were during or sent to us s the 24 hour
posts on th e FG Insight live feed
The initiative gathered a lot of media coverage, including on radio shows in the UK and was even picked up by Australian broadcaster ABC Rural, which spoke to Ben Briggs.
#farm24 was viewed more than
82 million times
11 A number of #farmingfacts were tweeted throughout the day to highlight the hard work which goes into UK agriculture.
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DAIRY FARMER
OCTOBER 2015
staff
manned the 24-ho ur rota to keep the liv e feed running throughout
#farm24 trended in the top 10 on Twitter throughout the 24 hours rs was from The last tweet of the 24 hou Robinson. es Jam er farm y dair organic
BLANK PAGES_DF_12_P43 18/09/2015 10:49 Page 2
UK
The Farmers Choice
SA 26 Mobile, also available as a static ( finance available ) We stock a range of your hoof trimming needs and spares Call 01362 820254, Text 07511 009981, e足mail cathy@etmalt.co.uk
NEW SERVICE Emergency Breakdown, repairs or service
Call or text TONY on 07745 368538 www.wopa足uk.com
Did you know? Dairy Farmer reaches more dairy farms than any other media brand in G.B. Visit http://www.fginsight.com/readerresearch to view our latest independent media research.
OCTOBER 2015
DAIRY FARMER
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**DF Oct p60 61 Milk Prices_Layout 1 18/09/2015 09:25 Page 1
MILK PRICES
Cow kennels from ÂŁ200 per cow
S SEE EE U US SA AT T THE THE DAIRY DAIRY SHOW SHOW Tel: T el: 0 01772 1772 7 785252 85252
w www.farmplus.co.uk ww.farmplus.co.uk
MILK prices
MWD announces first supplement
60
JMullerWiseman Dairies is the first to announce a supplement payment from the recently agreed minimum price guarantee. This was an undertaking from certain retailers relating to sales of fresh milk in order to support those producers on standard non-aligned milk contracts. With the minimum guarantee having only started from the middle of August, the company has confirmed its August payment as 0.595ppl. This money will be paid on the qualifying litres produced by members of the MWMG who do not receive any benefit from a retailer pool price on any milk volume from Tesco, Sainsbury’s, The Co-operative, Marks & Spencer, or Booths in the relevant month. Our Liquid standard litre price* for August for our producer supplying on the company’s standard liquid contract before this supplement was 23.15ppl. The company expects the Sep-
DAIRY FARMER
OCTOBER 2015
tember supplement to be larger reflecting a full month of price guarantee. However, after sales volumes and raw milk supply are taken into account, the actual supplement level will inevitably be different each month. The company will not treat this payment as part of its market related milk price, and will keep it separate from the wider market factors that continue to impact the underlying base price. Therefore, the supplement will be shown on milk statements as a separate line from the MullerWiseman milk price. Dairy Crest, which is holding its milk price for October, has yet to declare any supplement, but has given DCD its commitment that as soon as payments are received from customers, it will be used in full to supplement the milk price paid to suppliers on standard, non-aligned contracts supplying volumes outside the formulae options.
**DF Oct p60 61 Milk Prices_Layout 1 18/09/2015 09:25 Page 2
Milk price analyst Stephen Bradley on the latest milk industry developments.
News in brief... Barber drops 0.5p
JThe pressure on prices for milk going into cheese continues. AJ and RG Barber has confirmed it has reduced its milk price by a further 0.5ppl from Oct’15. The price move follows the company’s cut of 1ppl from August 4 and takes its total reduction this year to date to 4.77ppl, putting our Liquid* standard litre down 0.5ppl to 23.15ppl. Cheesemakers would relate more to our manufacturing standard litre*, and here then the price reduces 0.52ppl to 24.01ppl. South Caernarfon has also confirmed a further reduction. This takes our Liquid price down by 0.49ppl to 20.35ppl and manufacturing reduces 0.5ppl to 21.03ppl. Crediton Dairy has confirmed it will hold its milk price (25.36ppl for our liquid standard) for October since the penny cut from August. * Our Liquid standard litre is 4% b/f & 3.3% protein while our Manufacturing is 4.2% b/f & 3.4% protein. In both cases it is Bactoscans of 30,000/ml and SCCs of 200,000/ml, 1mltrs/yr on EODC but before B pricing, balancing, seasonality, monthly profile payments, capital deductions or annual / part annual growth incentive schemes not directly linked to dairy market price movement.
AMPE futures down slightly
JThis month our table shows prices paid for June along with our ‘B’ price indicators. The FCStone/Milkprices.com AMPE Futures (gross) for June settled at 17.69ppl, down 0.35ppl on the previous month, while our net AMPE price to the producer was down 0.34ppl to 14.8ppl. Our spot milk price, net to the producer, was up 0.59ppl on the previous month to average 12.69ppl. June also saw the introduction of the regional and creamery specific First Milk prices. In the Liquid table, the Midlands and East Wales balancing price reduced by 1.2ppl to 19.3ppl, while the Scottish Mainland price reduced 0.2ppl to 20.3ppl. Northern England balancing remains unchanged from May. With Tesco agreeing to pay 29.93ppl from the end of August until the end of February next year for all milk supplied into its own label British cheese, it will be interesting to see the level of positive impact this will have within the First Milk producer prices.
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DAIRY FARMER
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**DF Oct p60 61 Milk Prices_Layout 1 18/09/2015 09:26 Page 3
MILKPRICES Latest milk prices from LIQUID PRICES (4% b/f & 3.3% prot) MüllerWiseman–Booths D.C–M&S∞ D.C–Waitrose∞^ MüllerWiseman–Tesco ArlaFoods–Tesco MüllerWiseman–Sainsbury's D.C–Sainsbury's ArlaFoods–Sainsbury's MüllerWiseman–TheCo-opDairyGroup DC/DCD–LiquidFormula∞ DC/DCD–FormulaSimplifiedLiquid CreditonDairy ArlaFoods–AMCoTesco BlackmoreValeFarmCream GrahamsDairies ArlaFoods–AMCoLiquid ArlaMilkLink–Liquid Freshways YewTreeDairy DaleFarmGB(Kendal) MüllerWiseman–Standard ArlaFoods–DirectLiquid D.C–StandardLiquid∞ PaynesFarmsDairies MeadowFoodsLakes MeadowFoods PensworthDairy FirstMilk–NorthernEnglandBalancing FirstMilk–ScottishMainlandBalancing FirstMilk–Midlands&EastWalesBalancing DaleFarmNI≠ SimpleAverage
MANUFACTURING PRICES (4.2% b/f & 3.4% prot) ParkhamFarms Cadbury–SelkleyValeMilk D.C–Davidstow∞ BarberA.J&R.G WensleydaleDairyProducts ArlaFoods–AMCoManufacturing TheFreshMilkCompany–LevelProfile‡ ArlaMilkLink–Manufacturing TheFreshMilkCompany(Lactalis) Glanbia–Llangefni(Constituent) WykeFarms BeltonCheese ArlaFoods–DirectManufacturing Glanbia–Llangefni(flat) MüllerWiseman–AMPE/MCVEFormula SouthCaernarfon FirstMilk–LakeDistrictSolids FirstMilk–Haverfordwest SimpleAverage
'B' Price Indicators FCStone/Milkprices.comAMPEFutures(gross) FCStone/Milkprices.comAMPEFutures(net) Deliveredspotmilk(nettotheproducer)
May'15 4.0/3.3 Before Seas'lty
Jun'15 4.0/3.3 Before Seas'lty
12mth Ave Jun'14 May'15
Diff Jun'15 v May'15
Latest Confirmed Milk Price
(i) 34.50 34.24 32.48 30.93 30.68 30.98 30.92 30.86 28.69 28.72 28.65 26.36 26.53 25.00 25.25 25.83 25.83 24.15 25.00 24.39 24.15 23.40 23.09 23.20 22.00 22.00 23.40 20.50 20.50 20.50 21.94 26.28
(ii) 34.50 32.79 32.48 30.93 30.68 30.98 30.92 30.86 28.69 28.69 28.62 26.36 25.69 25.00 25.25 24.99 24.99 24.15 25.00 24.14 24.15 22.00 23.09 23.20 21.00 21.00 23.40 20.50 20.30 19.30 20.94 25.95
(iii) 34.83 34.12 33.73 32.59 32.39 32.01 31.94 31.89 30.85 30.02 29.95 29.53 28.17 28.08 27.69 27.47 27.47 27.42 27.38 27.20 27.10 26.55 26.47 25.57 25.53 25.48 25.26 23.73 23.72 23.63 23.34 28.42
(i) v (ii) N/C -1.45 N/C N/C N/C N/C N/C N/C N/C -0.03 -0.03 N/C -0.84 N/C N/C -0.84 -0.84 N/C N/C -0.25 N/C -1.40 N/C N/C -1.0 -1.0 N/C N/C -0.20 -1.20 -1.00
(iv) 33.00 N/C 31.98 N/C N/C 30.87 30.81 30.75 28.32 27.15 27.08 25.36 23.71 N/C 23.75 23.01 23.01 23.87 23.75 23.89 22.35 20.15 21.69 21.20 19.00 19.00 21.40 18.80 18.60 17.90 19.69
32.21 29.38 26.17 26.59 26.07 26.85 23.34 26.79 22.77 24.71 23.85 24.90 24.17 24.40 21.00 23.57 21.43 21.43 24.98
32.21 29.38 26.17 26.59 26.07 25.98 23.34 25.94 22.77 24.71 23.85 24.90 22.72 24.40 21.00 23.57 22.00 21.74 24.85
33.96 31.95 29.55 29.20 28.70 28.56 28.51 28.43 27.95 27.56 27.56 27.54 27.45 27.18 26.35 26.30 25.33 25.31 28.19
N/C N/C N/C N/C N/C -0.87 N/C -0.85 N/C N/C N/C N/C -1.46 N/C N/C N/C 0.57 0.31
32.21 28.65 26.42 24.01 24.82 23.91 22.31 23.88 21.74 21.88 23.85 23.75 20.79 21.65 18.54 21.03 20.14 19.88
18.04 15.14 12.1
17.69 14.8 12.69
22.83 19.69
-0.35 -0.34 0.59
Notes to table PricesforbothLiquid&Manufacturingtablespaidforproducersending1mltrs/yronEODCwithBactoscansof30,000/mlandSCCsof200,000/ml.Pricesexcludecapital retentionsorAHDBlevies,seasonalityandbalancingschemes.Excludesannual/partannualgrowthincentiveschemesnotdirectlylinkedtodairymarketpricemovement. Liquidpriceformilkcontains4%b/fand3.3%protein.Manufacturingpriceformilkcontaining4.2%b/fand3.4%prot.(i)May’15pricesbeforeseasonalityorBpricing. (ii)Jun'15pricesbeforeseasonalityorBpricing.(iii)Tablerankedonsimplerolling12mthaverageofmonthlypricesbeforeseasonalityorBpricing.(iv)Latestconfirmedmilk price(beforeseasonalityorBpricing)atthetimeofgoingtopress.ArlaAMCopricesincludeambaforecast13thpayment+0.78pplandbeforeJun'15b/freconciliationof0.01ppl.ArlaMilkLinkpricesincludeambaforecast13thpayment+0.78ppl.PensworthDairyrankingpricebasedonthe9mthstoJun15.∞Priceincludes12mthrolling profilepaymentfixedat1.15ppl.∞^Pricebeforeseasonalityincludes12mthrollingprofilepaymentfixedat0.52ppl.‡Priceincludes12mthaveragerollingprofilefixedat 0.57ppl.DC/DCD&MWDFormulapricesassume100%ofproducersupply.AMPEFuturesnettoproducerincludes5%processormarginwhileallowing2pplforex-farm haulage&milktesting.Averagedeliveredspotmilkpricenettoproducerallowsanaverage2.5pplcoveringhaulagefromfarmtocustomer+milktesting/adminandmargin. Tescomilkpricesincludethe0.5pplbonusforco-operationwithPromarcostings.Milkprices.comcannottakeanyresponsibilityforlossesarising.Copyright:Milkprices.com
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DAIRY FARMER
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**DF Oct p64 65 New Prods_Layout 1 18/09/2015 11:31 Page 1
DAIRY MARKETPLACE
NEW products
Genotyping heifer service
JNMR’s new GeneTracker service can genotype Holstein heifers from a month old, helping increase herd efficiency. With an accuracy rate of between 65% and 70%, dependent on the trait, it is equivalent to data derived from animals at the end of their second lactation, allowing producers to select the best heifers to rear for maximum genetic gain as well as identifying those calves with any weaknesses. Tissue is tested and data is evaluated and processed through AHDB Dairy and Holstein UK. Available to any herd with official milk records, it provides the standard 31 genomically-evaluated herd management traits, as well as a number of key genetic recessive results such as Blad, coat colour and polled. Information is available in iReports which can be customised for each producer. ■ Details www.gene tracker.co.uk or 07967 964 478.
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DAIRY FARMER
This month we feature a new tractor cab design, a high capacity grass rake and a heifer genotyping service.
Upgraded cab design
A
new cab design giving improved all-round visibility, greater interior room, more convenient controls and space for a ‘training’ seat is the major feature of an upgrade package for 85hp-113hp tractors in the McCormick range. The cab has a larger glass area with a narrow header rail creating a
deep windscreen for maximum forward visibility and full-size doors, with no ‘B’ pillars to interrupt
JTwo powerful new high palatability rodenticides from BASF allow farmers to take advantage of recent legislative changes enabling the most potent ‘single feed’ rodenticides to be used both around and inside buildings. Based on flocoumafen, it is proven effective in tackling even the most broadly anticoagulant resistant strains of rats and mice. Storm Pasta is a moist,
non-grain soft block for general purpose use with exceptional rat and mouse palatability. Storm Mini-Bits, a loose bait alternative for indoor and selective
views to either side. ■ Details 01302 757 566, or www.mccormick.agriargouk. co.uk
Highly palatable and potent rodenticides
OCTOBER 2015
area use, is designed specifically for use where non-target species risk is low and as an internal complement to other baits used externally. ■ Details www.basf.co.uk
**DF Oct p64 65 New Prods_Layout 1 18/09/2015 09:20 Page 2
DAIRY MARKETPLACE
Multi Shovel upgraded High output rake from Kuhn JA significantly improved version of the versatile Multi Shovel has been introduced for loaders and telescopic handlers as part of an expanded range of JCB AGRI attachments. The compact heavy-duty shovel has removable side plates and a tough fullywelded grab which opens to 1.67m to handle grass and maize silage, yard manure and bales. A new hydraulic ram design and geometry GOT W A NE CT? U D PRO
creates a 50% increase in clamping force for top performance, and it can also pick up cleanly against a wall because the fork tines are positioned just behind the toeplate when the grab is closed, and more than 200mm back when open. ■ Details at www.jcb.com
JKuhn Farm Machinery’s largest four-rotor trailed grass rake, the GA 15131, offers a maximum working width of 14.70 metres. Adding to the existing range, the GA 15131 Gyrorake uses four 3.65m diameter rotors, the forward pair equipped with 13 tine arms and the rear pair with 15 tine arms. Each tine arm is fitted with four tines. Designed to deliver a high work output, it folds to a compact transport dimension and raking height can be ad-
justed hydraulically as standard. The four rotors work together to create one central windrow and are controlled via a cab-mounted VT50 Series terminal. This is ISOBUS compatible and allows operating sequences to be pre-programmed for easy u-turns. ■ Details on 01952 239 300.
New products are featured in each issue of Dairy Farmer. Please send details and pictures to Jennifer MacKenzie at mail@jennifermackenzie.co.uk, or call 01768 896 150.
Powermix Powermix Pro Pro Diet Feeder Feede
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**DF Oct p66 Donovan_Layout 1 18/09/2015 09:08 Page 1
WORKSHOP TIPS
WORKSHOP tips with Mike Donovan
This month, Mike Donovan looks at a home designed, high throughput parlour.
DIY parlour design speeds up routine
the original parlour. hen Nigel The 32-point built-toDinsdale budget parlour is designed for maximum reliability invited and uses products from me up different manufacturers to Yorkshire to see his including Surge, home-built parlour Boumatic, I was full of Westfalia and intrigue. d Waikato. That’s n -ha econd t of s g in s Cows enter because Nigel rByrtus, capital csosbeen a pa the milking trained as a h ur e parloithin a tight h t area three mechanical kept w udget b engineer and abreast, turn to face outwards which with 360 cows milked puts their back legs against three-times-a-day, his priority was milking speed the rump rail. The 16 each side are bunched up with and throughput. a hydraulic arm before He wanted a shortish parlour with less distance to being prepped for milking. walk, and cows at 90 Less herding degrees to the milker with no in-parlour feeding as he ACRs kick in to remove the clusters and then the front believes that encourages cows to fidget. But perhaps opens, the batch walks out and the next 16 walk in. It is his greatest desire was to have cows entering as a fast, and, with the backing gate, nobody needs to be bunch rather than in single file. there herding cattle. The standard system for Nigel took two years to design the parlour, and then fast exit parlours involves took six months to construct lifting the heavy front with it in a new building next to hydraulic rams so the cows
W
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P TOP TI
OCTOBER 2015
A new batch of 16 enters three abreast before turning to face the front.
The hydraulic arm sweeps down to keep the cattle tight for milking.
can exit underneath, but if there’s a breakdown the whole parlour is out of action. Nigel’s design has a front that rotates on threeinch nylon bearings. If the hydraulics fail the front can be turned by hand, so the parlour is not entirely incapacitated. Both W section and square section crash barriers are used for many parts of the parlour, including
uprights and the parlour fronts, and they show zero sign of age. By using many secondhand parts, capital cost of the parlour has been kept within a tight budget.
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
BLANK PAGES 2_DF_12_P43 18/09/2015 12:32 Page 2
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OCTOBER 2015
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DF_10_P69_DF_08_P61 18/09/2015 12:05 Page 22
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**DF Oct p70 71 Evans_Layout 1 17/09/2015 14:44 Page 1
GOOD EVANS
GOOD Evans
The intriguing case of the Clun water mussel This month Roger Evans follows the fascinating life cycle of the water mussel, looks for a solution to the milk crisis, and finally wonders how it is his kitchen table has become a horizontal wardrobe.
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I
’ve always thought money drives change in farming. It drives that change better than anything else. If you want change to happen, if there’s money thrown at it, it will happen. I live in the catchment area of the Clun Valley. Fortunately, or unfortunately depending on your point of view, there are fresh water mussels to be found in the river Clun. Seemingly, these have to be preserved at all costs. If they disappear there’s a major EEC fine on the horizon. Their preservation has become more important than anything else. More important than housing, more important than farming. All efforts are directed towards keeping the water in the rivers and streams clean. The fact that there wouldn’t be any mussels there anyway if the water wasn’t clean already seems to be of no consequence. This is a renowned stock rearing area and yet there are reckoned to be 1000 fewer suckler cows in the Clun Valley than there were 10 years ago. This statistic is ignored as well, yet cattle are seen as a major factor in the efforts to keep the water clean. They don’t want cattle drinking in rivers and streams. The fresh water mussel has as
OCTOBER 2015
precarious a life as a dairy farmer. Part of its life cycle involves attaching itself to the gills of a trout. Cormorants, otters, mink, herons, fishermen all eat trout, but that apparently is ok. There are small grants available to do stuff, but livestock farmers are expected to find the rest. Now it’s not a good time for livestock farmers to find extra money, and if they want it done they should find all the money themselves! The great and the good, and plenty of others who don’t make it into that category but think that they do, have had plenty to say about the issue of low milk prices. I’ve yet to see a solution, probably because there isn’t one apart from the obvious one of an increased world demand. The most ridiculous one was from a Government Minister who said we should establish more brands for British dairy products. A classic example of having nothing to say but saying something anyway. If there is a lesson to be learned from what has happened in grocery retail over the last couple of years, it is the increased market share of the discounters. It’s put huge pressure on the profits of the other major supermarkets. The upshot of that
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GOOD EVANS
Ultimately it is devaluing food and I can’t spot any good news in that
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is that the majors have reduced milk prices in an attempt to maintain the foot fall in their stores. We see how the discounters’ strategy works every night on our televisions. We get someone with two products in front of them and they say “I like this, and I like this”. One product is usually a branded product and one is own label. The own label product is always a fair bit cheaper but the message is quite clear and that is there is no difference between the two, so why would you buy the dearer branded one? There is usually a humor-ous twist to the advert and people like that, people generally like being amused. My favourite advert of this type is a lady sitting behind two packs of tea bags. One is a well-known brand and the other is a cheaper own label. She says “I don’t like these, and I don’t like these, I like gin.” And the job is done, very effectively, the audience has been shown the comparison between two important products and has been amused at the same time. The important side effect of this strategy has got to be a very real erosion
of the value of brands. The only way the retailers which are under pressure are going to compete with that is to go along the same sort of route. Only when they have similar prices can the comparisons stop. Ultimately it is devaluing food and I can’t spot any good news in that. Quite what politicians thought we could do to reverse this trend is beyond me, and I feel just as clearly beyond them. We’ve had two teenage boys (our grandsons) squatting here most of the summer. There’s clothes everywhere, they wear more clothes in a week than I wear in 12 months. Our kitchen resembles a charity shop that needs tidying up, and our kitchen table has become more of a horizontal wardrobe. As a result of this clothes can get mixed up and I occasionally get these garish, brightly coloured boxers finding their way into my laundry pile. And I wear them. But I don’t wear them like they do. All on show with the belt of the trousers just above their knees. I keep them well covered up. That’s a blessing, I’ll bet you are thinking!
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DAIRY FARMER
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FINANCE
While death may be inevitable, any resultant associated taxes fall more into a grey area. Sam Kirkham, of Albert Goodman, explains.
Nothing is certain but death and taxes Achieving APR on the farmhouse has long been problematic
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I
nheritance tax (IHT) is the tax paid on the value of assets owned by an individual on their death, and as the rate is 40% can be substantial. However, every individual can leave up to the value of the nil rate band (NRB) without incurring IHT – currently £325k. Therefore a husband and wife can leave net assets worth up to £650k without a charge to IHT. For business owners there are generous reliefs in the form of Business Property Relief (BPR) and Agricultural Property Relief (APR). These reduce the value of the assets chargeable to IHT by either 50% or 100% depending on how the business and farm ownership is structured. There is a strict ownership
Expert opinion rThere will be a tapered withdrawal of the additional NRB for estates with a net value of more than £2 million at a rate of £1 for every £2 of the estate over £2 million.
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requirement which means to qualify for either relief the assets must have been owned for at least two years and in some cases seven years prior to death. In addition, APR is only available on the agricultural value of property occupied for the purposes of agriculture – reliance is then placed on BPR. These technicalities are often overlooked during lifetime. For example: ■ Land let on a tenancy granted before September 1, 1995 may only qualify for 50% relief. ■ Where property is no longer occupied for the purposes of agriculture, for example farm shop or livery, APR will not be available. ■ Where the property is used for the purposes of agriculture but the market value is more than agricultural value, then APR is only available on the agricultural value. ■ For BPR, the business must be wholly or mainly trading, so if the overall business includes a large investment activity, such as a property rental business, BPR may be denied. ■ If the business is run by a company but the property is owned by a shareholder, only 50% BPR will be available and only if the share-
holder controls the company. For non-controlling shareholders there will be no relief. ■ Inter-spouse transfers start a new ownership clock so if death occurs within two or seven years of the transfer, relief may not be available. HMRC is increasingly attacking arrangements whereby land is farmed under the terms of a grazing agreement or contract farming. If HMRC successfully argues the landowner is not farming, the landowner will need to have owned the land for seven years to obtain APR and BPR will not be available. Furthermore, APR would be denied on the farmhouse. Achieving APR on the farmhouse has long been problematic and there have been many cases where HMRC has successfully denied APR. In the latest budget a new transferrable NRB was announced. This will apply to one property which was a residence of the deceased and where it is passed on death to direct descendants. The relief will initially be set at £100k in 2017/18, rising in stages to £175k by 2020/21, and is in addition to the existing £325k NRB.
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