Dairy Farmer - August 2015

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DAIRY August 2015

FARMER

Take-over talk Interview with Michael Masters Pages 24-27 Volume 62 Issue 8

Latest news, advice and kit launches

LIVESTOCK EVENT Pages 32-44

Special preview of this year’s event UK DAIRY DAY Pages 46-54

Cow comfort key in automated system

ON-FARM FEATURE Pages 10-12

MILK PRICES Pages 56-58

Tip of the month: Don’t overtrim on claw length – p36

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LEADER

a word from the

EDITOR y any account the recent Global Dairy Trade auction was an unmitigated disaster for dairy prices with all time lows for most, if not all, commodities.

And more bad news is on the way, as at the moment there seems little chance of curtailing the surplus and flipping the market round from excess to equilibrium.

The trouble is now we are operating on the world stage, we are governed by that scenario and its consequent effect on prices. So what can be done?

Domestically we have already seen the furore round Grahams Dairies’ 7ppl, and whatever the right or wrongs of that particular case, there needs to be a hefty deterrent for unnotified extra production.

On the EU front, Commissioner Hogan stands firm and apparently chooses not to see the hardship dairy farmers are going through, particularly in the UK where we have a currency whammy as well. He is far from

B

Contacts

inclined to increase intervention thresholds, which currently would deliver us the princely sum of 12.5ppl.

But in the absence of new outlets or political intervention, the only sure way of turning the market round is to bring global supply into check.

Now the New Zealanders look as if they are taking that path if their cull numbers are anything to go by, as they realise they cannot make money at the sort of disastrous prices forecast for them.

So will price alone do it, particularly as we start to see autumn feed costs kick in?

That extra litre to spread overheads may no longer be the salvation it once was, and the battle looks set to change to one more of cutting back to staunch a growing cash haemorrhage!

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

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

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

Production Editor Gillian Green 01772 799 417 gillian.green@briefingmedia.com

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

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ISSN 1475-6994

© 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.

AUGUST 2015

DAIRY FARMER

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THIS MONTH

CONTENTS august Volume 62 Issue 8

Cow comfort On-farm

Ayrshire dairy unit’s high welfare and environmentally friendly standards

10-12

Comment

4-6 14-15 62-63

Latest news Potter’s View Good Evans

Regulars 10-12 56-58 64

On-farm feature Milk Prices Finance

Game changer

Robotics

World’s first fully automated external rotary parlour unveiled in Germany

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22-23

DAIRY FARMER

AUGUST 2015

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THIS MONTH

32-44

Livestock Event Special feature

Full report from this year’s Livestock Event, latest technology, advice and winners

Preview

UK Dairy Day Special preview of this year’s event

Profit & tax

Finance

Pat Tomlinson offers advice on offsetting tax burdens

64

46-54

AUGUST 2015

DAIRY FARMER

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NEWS News in brief

Incomes down £3.35m a day

JUK dairy farmers are collectively having to cope with incomes which are £3.35m lower than last year.

Taking April, May and June as being the flush months, and multiplying the milk volumes by the Defra average milk price (which includes some big aligned prices), farmers earned a total of £943m through the flush, some 24.4% and £305m lower than the £1.248m earned in 2014. (This was 11.5% and £123m lower than the £1.066m in 2013).

The reduction amounts to £3.35m per day.

Arla rises up ranks

JArla Foods is the biggest riser in The Grocer’s annual ranking of the world’s largest FMCG (fast moving consumer goods) suppliers, according to the magazine. The 2015 Global 50 ranking, produced with OC&C Strategy Consultants, showed Arla rising nine places to 36th as sales grew 9% to $11.3bn last year, despite tough conditions for the global dairy industry.

Rowbottom stands down

JPaul Rowbottom has decided to step down as FFA co-ordinator in Derbyshire.

FFA says this was a decision taken by Mr Rowbottom ‘as he wishes to focus more on his animal feed business’.

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DAIRY FARMER

Surplus milk and soaring pound hold prices down

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he most recent Global Dairy Trade (GDT) auction did little to lift spirits, as prices fell back further by 10.7%.

In fact, the last auction (July 15) saw prices fall to practically their lowest ever level. WMP saw its second lowest price, with SMP, cheddar and butter all posting their lowest prices to date.

The auction has now fallen for a record nine times in a row and an average price of just over $2000. Volumes traded

were 31,691 tonnes, and there looks to be more milk coming as New Zealand moves into its new season.

JThe gap between the 10% highest and 10% lowest paid milk producers has almost doubled in a year as milk prices have fallen.

Analysis of Kingshay Dairy Manager recording of conventional HolsteinFriesian herds to be published in its Dairy Costings Focus Report 2015 reveals the true range in prices producers actually receive

for their milk, rather than that estimated by looking at contracts.

Forecast However, New Zealand's second biggest milk processor, Open Country Dairy, has slashed its forecast by more than $1/kg milk solids for the season, to a predicted price of $3.65$3.95kg, and Fonterra is expected to follow suit. That represents a price of 11.712.7ppl.

In the EU, SMP prices are hovering fractionally

above intervention prices, and it is widely believed some processors are already trading below the €1698 threshold as intervention selling is on 120 days invoicing. Butter is at €2830 for Dutch, with French at €3000.

Currency Currency continues to go against the UK with the euro trading at £0.69. This means that a 30 euro cents milk price is worth 21.43ppl now compared to back in 2010, when the exchange rate was 88p, it would have had a value of 26p.

Producer gap widens, analysis reveals

AUGUST 2015

Lowest paid It shows the lowest paid 10% of producers’ average price for March 2015 was just 21ppl, only two-thirds the amount received by the highest 10 per cent paid at 32ppl.

Kingshay director Richard Simpson said: “In

spring 2014, the gap between them was just 5.6ppl.

“But as the highest paid producers have seen milk prices fall by less than 4ppl, the ones who were already being paid less have seen prices fall by almost 10ppl, “The gap between them has been steadily widening and is now more than 11.6ppl,” he added.

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DPO gets thumbs up

JBosses of Dairy Crest Direct (DCD) were looking ahead with confidence after its members gave massive backing to plans to become a dairy producer organisation (DPO).

DCD, which represents 1050 farmers supplying 1.5 billion litres of milk, officially assumed DPO status on July 1. A total of 95.3 per cent of the DCD membership across all contracts committed to approve the DPO proposals.

The announcement co-incided with Dairy Crest’s decision to increase the price paid to Davidstow farmers by 0.25ppl to 25.34ppl from August 1 and hold the standard liquid contract at 23.09ppl for August.

The small increase was in recognition of farmers achieving the new farm standards in preparation for the new whey plant at the Davidstow site.

NEWS

NFU points finger at the processors

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hat to do in the current crisis was the topic which exercised minds at the major NFU, FFA and TFA meeting in Shropshire recently.

The NFU’s head of its dairy group, Rob Harrison, admitted there was more milk than the markets could absorb, but despite this did not suggest cutting milk volumes dramatically in the short-term as a solution.

He said: “We must remember we are only 81% self-sufficient in the UK for dairy. We are short of capacity in processing and the market is oversupplied. However, there is a huge potential market.”

He emphasised the market situation was not the fault of larger farmers, spring calvers, or aligned producers, but effectively blamed processors.

“Processors have asked for more milk and farmers have responded to market

signals. As individuals it may be right to increase production, but collectively today it is crazy and this is a fundamental problem in the dairy market.

“It is not my job to tell you how to run your businesses.

However, faced with the choice of increasing output to spread costs or reducing costs by drying off and culling a few, by feeding a bit less and then reducing output, please choose the latter,” he said.

JScotland currently has its lowest ever number of dairy herds but more dairy cows than it has ever had.

In the six months to July 1, figures from the Scottish Dairy Cattle Association

revealed the number of herds fell by 19 to 982, but the total number of dairy cows increased by 1204 to 174,487.

Six new dairies began milking from January to July but, overall, there

was a net loss of 19 herds.

Dumfriesshire registered the largest loss of seven dairy farms and 667 cows, but Kirkcudbrightshire had a one herd net gain and added 808 cows.

Scottish herd numbers hit all time low

AUGUST 2015

DAIRY FARMER

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NEWS

Grahams drops B litres to 7p

JGrahams, the Family Dairy, stunned producers in mid-July by announcing out of the blue it is dropping the B litre to 7p – effectively less than half of the projected AMPE, and less than half the spot value of milk.

Managing director Robert Graham said his firm had little choice, but Grahams’ suppliers were angry at the move.

NFU Scotland’s Milk Committee chairman Graeme Kilpatrick, who is a Grahams supplier, said: “NFU Scotland has continually asked that milk buyers act in a transparent way and give farmers appropriate notice of any major changes to payment terms.

“Milk producers who supply Grahams have been left angered by the way this latest price cut has been communicated,” he said.

Morrisons asks suppliers to cough up

JIn a widely condemned move, which has the Groceries Code Adjudicator crawling all over it, Morrisons has sought impromptu cash payments from its suppliers as the supermarket approaches the close of its six-month accounting period. It is not known if dairy companies have been approached.

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DAIRY FARMER

EU won’t move on intervention price

D

espite the crisis engulfing the European dairy industry, the EU is still refusing to raise the intervention price thresholds.

The call came this month via the Nicholson Report, from Northern Ireland MEP Jim Nicholson, who called for a review of the implementation of the dairy package and the support measures in place for the sector.

In response to the report,

Commissioner Hogan stressed the current measures in place were adequate.

JTesco is to review its Sustainable Dairy Group, which pays around 600 liquid milk producers and about 30 mature cheese suppliers a Cost of Production price above the current market price.

In a letter to suppliers, commercial director Matt Simister said: “We are committed to supporting British dairy farmers and I want to re-assure you it will continue to play an integral part of our dairy business in the future.”

increasingly global nature of markets and a substantial structural changes in the supply chain and extensive consolidation at farm and processor level’ as being reasons for the review.

Solution “Some voices claim increasing intervention prices is the solution. In my view, this would be counterproductive. Indeed, in a situation where production quotas no longer exist, it is of paramount importance that farmers and economic operators follow market signals.

Tesco set to review TSDG

Changes However, he cited the ‘changes in the industry, the removal of quotas, the

AUGUST 2015

Cost He did not state that this year alone TSDG would have cost the retailer around £80m, before the cost of the supermarket milk had been factored into the sum.

Mr Simister also said Tesco would continue to use an independent cost tracker but did not guarantee a COP price.

“Let me also say and be very clear about proposals to increase intervention prices – this would do nothing but delay the inevitable and necessary adjustment and make it more painful.

“As we move towards a market-orientated policy, such a move would give the wrong signal. There is a need to change our mind set: the goal is not to produce as much as we can but as much as we can find a market for.”

Your views sought on milk promotion

JDairy UK’s Farmer’s Forum wants to know your views. It said that in order for them to play an active role in addressing this issue it need your help in answering the following questions: 1. Do you support financial investment in the generic protection and promotion of all dairy products and the education of consumers with professionally researched activity such as promotion, marketing or sponsorship?

2. If the answer is yes, how do you think such activity could be funded?

■ Replies should be sent to farmersforum@dairyuk.org

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DAIRY TECHNOLOGY

The Cox family in Cornwall are the first farmers in the UK to install DeLaval’s innovative Herd Navigator. Ann Hardy travelled to Callington to find out how the system is shaping up.

Herd Navigator makes debut on first UK farm ilk production has taken a new direction on Mearfield Farm in Stoke Climsland, Cornwall, where Peter and Sheila Cox have become the first farmers in the UK to install the Herd Navigator.

The Cox family – including Peter’s parents Brian and Pat – have always been early adopters of technology and designed their dairy unit with upgrade potential.

So, when they chose the DeLaval Voluntary Milking System (VMS) for their 130head herd in 2011, they did so with an eye on the future and the extras which could be added.

“We knew DeLaval robots were designed to accommodate upgrades and we had also heard about Herd Navigator from the outset,” says Peter. “It was a very exciting piece of equipment and I always knew I wanted to add it, in particular because I knew about the power of progesterone.”

Peter refers to one of the three main functions of the system which provides indi-

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DAIRY FARMER

Sheila and Peter Cox designed their unit with the potential to upgrade the technology used on farm.

vidual cow information to help with the management of reproduction, mastitis and energy balance.

Tracking As part of his degree course in agriculture at Devon’s Seale-Hayne College, he investigated the role of progesterone, and he knew tracking the level of this hormone in milk could reveal detailed information about the cow’s reproductive status.

“Being able to measure progesterone on a daily basis is really what clinched it for me,” he says. “This is the function we have got to grips with first since we installed the system in March.

AUGUST 2015

“Previously we would have bought a progesterone kit, but this would only give a snapshot for that day,” he says. “One sample tells you virtually nothing, except perhaps the cow is not pregnant, but this gives a full picture of the 21-day cycle.

“The system learns the progesterone profile of every individual cow and will take a milk sample when required in order to do so,” he says.

The picture built up is said to detect heat with over 95% accuracy and pregnancy with 90% accuracy, while also revealing abortions, silent heats, false activity heats, the quality of heat and the likelihood of

successful insemination.

“I feel as though the system actually looks into the cow,” says Peter. “Everyone has cows which are cycling but are not seen bulling and this will pick them up.

“There are cows in early lactation which are not seen bulling which you previously would not have picked up until around 50 days in milk, but now the vet will investigate at day 30-45,” he says.

Cows in anoestrus are similarly identified, while those with cystic ovaries can be sub-divided into those with luteal cysts and those whose cysts are on the follicle – and be treated accordingly.

The system’s ability to

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DAIRY TECHNOLOGY confirm pregnancy has also been a boon for the Coxes, who say their original plan was to continue to have veterinary confirmation of pregnancy at 35-40 days after service.

Palpation “Every cow which it said was pregnant was also confirmed pregnant by palpation, and the one cow which aborted was identified by the system and similarly confirmed by the vet,” says Peter. “I can see we will potentially move from weekly PDs to monthly, or more ad hoc sessions.”

Vets from the Calweton Group, Callington, are said to have welcomed the introduction of the system which has the scope to significantly change their role.

“It gives them such an insight and allows them to adjust their treatment advice,” says Peter. “I can see vets having more of a consultancy role and agreeing standard operating procedures rather than coming in

to put their arm in a cow.”

The next step for the Coxes is to make as much use of the system for ketosis and mastitis as they have for fertility management.

“We have never had many cases of clinical ketosis but we know at our yield level (the herd is giving 12,000 litres at 4.2% fat and 3.3% protein in 305 days) we inevitably have cows in negative energy balance.

“It will be testing beta-hydroxybutyrate to indicate energy status from four to 60 days in milk, and we will adjust the feeding of propylene glycol in the robots to target cows at risk,” he says.

“It is definitely a learning curve. We are starting to understand the specific parameters for our herd, whether that is identifying the percentage ketosis risk which needs dosing, or finding the optimum time to serve after the progesterone drop.”

For mastitis detection, Peter says the team will decide how and when to respond to different levels of

lactate dehydrogenase – an enzyme released when cell walls burst in response to infection.

“It is always challenging to know what to do with mastitis as about half of all cases will self cure,” he says.

“But this system is now building an LDH profile for every cow and we’ll decide how to act accordingly.”

Benefit Roberto Cosin from DeLaval says: “DeLaval will quote an estimated potential saving for your farm, although of course nothing can be guaranteed as it depends how the system is

System functions

Focus area parameter analysed in milk detection: 1. Reproduction (progesterone) rHeat and silent heat rLikelihood of success at insemination rPregnancy rAbortion rCysts rAnoestrus 2. Udder health (LDH

used,” says Roberto. “It helps you identify and understand, but you need to address the issues to fully benefit from the system.”

Peter says: “It gives you a list of cows which need attention but you then have to use your judgement. You can either opt for the company’s standard operating procedures, or tailor them for your herd.

“It’s not an investment that writes you a cheque every month, but the payback will be long term, and will be seen in fewer days open, better pregnancy rates, better health, less mastitis and more milk.” lactate dehydrogenase) rMastitis rSubclinical mastitis 3. Feeding and energy balance (urea and BHB beta-hydroxybutyrate) rFeed ration – protein rKetosis rSubclinical ketosis rSecondary metabolic disorders

AUGUST 2015

DAIRY FARMER

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ON FARM

Robert Veitch has diversified his farming business over the past eight years and today his Holstein herd resides in a state-of-the-art 200-cow fully robotic milking and feeding facility. Bruce Jobson reports from Tarbolton, Ayrshire.

Cow comfort is key in fully-automated set up obert Veitch has arguably one of the best animal welfare and environmentally friendly dairy facilities in the UK. While his farming roots are set in the lush green pastures of South Ayrshire, his business success is firmly set in concrete. His diversification in 2007 into construction and building design has resulted in the creation of a purpose built facility focused on high-spec cow comfort and welfare.

Robert and his wife, Lindsay, moved to the then 120-acre (now 200) Strandhead Farm in 1996, which had formerly been a traditional family unit. Then the herd consisted of 70 Holsteins milked through a 5:10 swingover herringbone parlour, but Robert had his own very definite ideas on how to develop the dairy herd.

“The mid-1990s were challenging and having purchased the farm, there wasn’t a lot of money for reinvestment in infrastructure and buildings. I was in

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Robert Veitch remains passionate about his herd and the industry.

my late 20s and started doing my on-farm repair and construction work to save financial outlay.”

Challenge Robert started VE-Tech with one volumetric on-site mixer wagon and his next big challenge was the construction of a high-spec dairy unit at neighbouring Brownhill Farm, Tarbolton.

The farm, situated on a hillside, overlooks the town of

AUGUST 2015

Ayr and Prestwick Airport, and the revolutionary high roof design became an iconic symbol of the modern Scottish dairy industry.

“The Brownhill building, with its modern European design, propelled the business forward and was a tremendous advert for VeTech,” says Robert. “From then on we picked up more work and at that time the Scottish Government (SRDP grant scheme) was seeking

to heavily invest in further developing the Scottish dairy industry.

“The timing was perfect and I was at the right place, at the right time, and the quality of our work helped the business expand further.

Today, we have six mixer wagons and 30 employees on the construction side of the business.”

Despite the recent decline in milk prices, Robert remains passionate about his herd and the dairy industry.

He places huge emphasis on youngstock, both in terms of feeding and housing.

“We constructed our own heifer rearing sheds and incorporated appropriately sized cubicles for youngstock. It is essential to remember good herd health and long-term profitability starts at day one. Young calves are fed on colostrum for three days before being introduced to starter pellets with Fermenten.

“Calves have to grow to their full potential as we aim to calve down heifers at 24 months old. We are aiming to reduce age at first calving to 22-23 months, and there-

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ON FARM fore heifers have to be in the region of 350kg at 14 months. A heifer calving down two months earlier will save more than £130 in feed costs. When you multiply that by 100 calves – that is a saving of £13,000 a year.”

Diet Calves are moved round the system until 20 months old and receive a straw and silage-based diet. The heifer shed slatted floors are volume washed on a daily basis in order to help prevent digital dermatitis and to keep feet and cubicles clean. Heifers are subsequently moved into the new unit and calve in the

The Strandhead unit, which spans almost an acre, contains 267 cubicles with a rubber-cushioned slatted floor.

purpose-built facilities.

Dry cows are fed a separate ration incorporating a rumen fermentation enhancer, Bio-Chlor, as part of a partial DCAB diet in order to prevent milk fever and

other metabolic disorders.

“When blood levels are excessively alkaline, cows are more susceptible to milk fever and other related conditions. An individual case of milk fever with all vet

fees and loss in production can cost over £300.

“Feeding the rumen fermentation enhancer helps our animals produce more acidic conditions within the body. The increased acidity

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ON FARM level helps maintain calcium balance and cows are therefore better prepared prior, during and post-calving.

We view this as an essential part of dry cow management and welfare,” he explains.

Calving pens The new unit design has a separate dry cow cubicle section and purpose built close-calving pens. One of the sections is used to house the show cows, which has become a passion for Robert and Lindsay and their two teenage daughters, Jennifer and Heather.

The dairy unit contains 267 cubicles, with a rubbercushioned slatted floor. The building, which covers almost an acre, includes an underground Slurry Air Management System incorporating two-inch PVC piping. The system blows air through a series of non-return valves which eliminates the requirement to mix slurry. Liquid and solids are then separated, allowing the solids to be recycled into green bedding, and the liquid is subsequently applied to the grassland after each cut of silage.

The building therefore has a non-odorous atmosphere, which is supplemented by 250mm of airflow on both sides of a three-metre lightridge, and climate control curtains which respond to data from an onsite weather station. These provide

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DAIRY FARMER

for better ventilation.

The insulated roof panels, which were imported from Belgium, help reduce temperature fluctuations and the slatted flooring is cleaned by a Lely robotic scraper system. The process sprays a water mist onto the surface of the slats as the robot scrapes the flooring, and this helps maintain a clean surface area.

Robert was keen to include the latest technology and the unit includes four Lely A4 robotic milk machines. The system also includes the Lely Time 4 Cows (T4C) programme incorporating management data control, milk recording and an early warning system relating to milk abnormalities, mastitis, heat detection and rumination functions.

Automated feeding He also incorporated a Lely Vector automated feeding system. “Feeding and management should revolve around the cows, not the man. It feeds the herd on an average of 12 times per day.

“Cows are robotically milked on an average of 3.6 times a day. The combination of robotic feeding and management resulted in an increase of eight litres of milk per day, within the space of a few months. We estimate the automated feeding and sweeping up process alone increased production by three litres a day.”

AUGUST 2015

The impressive looking Strandhead cubicle building.

A Lely Vector automated feeding system has been installed at the unit.

The system includes a feed storage area which allows for the selection of a range of diets. The storage area has capacity for three day’s supply and individual diets are mixed within the area and delivered to specific animals and milking groups.

Milk is supplied to Muller Wiseman and Robert is receiving 25ppl (May 2015).

Cost of feed purchase is 8.5ppl, with a margin over purchased feed per cow per day of £5.50p and 15.6ppl.

Concentrate feed rate is 0.33kg/pl and dry matter intake is 25kg.

In January, Robert purchased 60 cows from the

renowned Riverdane herd, owned by Mark Nutsford.

Of the 60 animals selected, only three cows do not contain pedigrees incorporating All-Britain, All-American and All-Canadian animals within their pedigrees.

Long-term, Robert aims to breed show cows as well as high performing, profitable cows, within his environmentally-friendly unit.

“Sexed semen is used on most cows and heifers We are currently using bulls such as Attwood, Beemer, Bracken, Braxton, Doorman, Dude, Glauco, McCutchen and the genomic young sire, Meridian, as part of our selection,” he says.

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AUGUST 2015

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POTTER’S VIEW

IANPotter

This month, Ian Potter takes a look at Tesco’s plan to review its milk contract and what that may mean for the cost of production element, questions the remit of AHDB Dairy, and asks whether we have a plan in place for another Caffe Nero.

L If they don’t engage with the review then it could be more a head shave than a back and sides

“

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DAIRY FARMER

ast month’s article concentrated on Tesco. And so will this one, following its decision to review its TSDG pool.

Back in 2007, Tesco made a pledge (which it endorsed in a March 2010 press release) to recognise the true cost of milk production ‘with additional provisions for making a profit including capital investment and unpaid family labour’.

According to the company, the TSDG was created ‘to address the huge uncertainty faced by dairy farmers caused by contin-uing volatility in the markets, and to ensure farmers are paid above the cost of milk production’. Another subliminal reason was to remove the company from the radar of FFA and its protests, which were rife in 2010 outside its distribution centres. In response to these protests Tesco board director Lucy Neville–Rolfe said: “Tesco remains committed to ensuring British dairy farmers receive a fair price that is above the cost of production.”

So the big question is this: where does this leave Tesco and the TSDG farmers involved in the ‘comprehensive and thorough’ review of the TSDG? Although Tesco has recently stated ‘we want to pay a fair price’ there is no reference to COP. For Tesco aligned producers to defend the status quo in my opinion is pointless.

There will be change and the farmers involved are likely to take a haircut, given

AUGUST 2015

the retail milk price war and the amount Tesco loses on milk. If they don’t engage with the review then it could be more a head shave than a back and sides.

As one of my regular readers and a Tesco man stated ‘a milk buyer – least of all Tesco – cannot afford to pay more than its rivals without gaining value in return’.

Tesco farmers, to date, have delivered little, if any, value to Tesco, despite much advice to do so.

Recent press headlines referring to one of the UK’s richest men’s (Duke of Westminster) ‘American style super dairy’ with 1400 cows as being Tesco’s biggest supplier, is not a headline it will have liked, forgotten or ignored. No matter how good the unit, if I asked 100 Tesco shoppers whether they’d like to see premiums go to the Duke or to 10 family farms instead I’m pretty sure I know what most would say.

I remember the criteria used by Dairy Crest when it recruited 25 farmers for its aligned Tesco pool for delivery into the former Amelca plant at Foston. To be eligible for consideration farmers had to produce less than two million litres and be a traditional, professional family unit.

While referring to Tesco, the NFU does appear to swallow everything drastic Dave Lewis, CEO of Tesco, tells them. Only two weeks ago he informed the NFU of its 100% British vegetable sourcing policy after the NFU asked Tesco to demonstrate it was

**DF Aug p14 15 Potter _Layout 1 23/07/2015 11:31 Page 2

‘Where does this leave Tesco and TSDG’

Ian Potter

rIan is a specialist entitlement broker and dairy industry commentator.

Comments please to ianpotter@ipaquotas.co.uk

delivering on its 2013 NFU conference promise. Despite Drastic’s assurances the next day I examined carrots to learn Tesco failed in three out of 10 outlets I surveyed.

They were selling French ones.

The dairy industry’s lack of funds to properly promote the nutritional benefits of milk is a hot topic among several enthusiastic producers. One of my weekly bulletin readers felt the industry recently missed an opportunity when the TV and press homed in on the ‘sugary drinks effect on children’s teeth’ issue. She believed the industry should have been involved in the debate and promoting the positives of drinking milk. Perhaps it is time for GB farmers to seek change in how AHDB operates. And that brings me to the New Zealand approach to its levy.

Every six years New Zealand dairy farmers hold a levy referendum when they decide whether the levy continues. If farmers are dissatisfied with the levy board’s past or future spending plans they can vote against its renewal. They can even force an interim vote. I can hear some diehard DairyCo (or AHDB Dairy as it is now called following a whopping £60,000 rebranding exercise) bosses wincing at the thought.

Levy paying dairy farmers have the right to challenge AHDB Dairy on whether its ideas deliver real benefit. Some farmers are more radical, believing the levy should be removed and AHDB Dairy should be selffunding and charge those who choose to utilise their services in the same way as consultants do. The theory is simple: if it is good then farmers will pay them.

POTTER’S VIEW

Back in early June, the intimidation of Caffe Nero hit the news and while the instant reaction of some of our industry bodies was to condemn the company, I looked through the telescope from the opposite end and took a different approach.

(See www.ipaquotas.com/QUOTA NEWS.htm 5th June).

Almost all who read it could see my point of view, with the exception of the vocal husband of a Dairy Farmer columnist. Two of the many people who were fired-up and tweeted should, in my opinion, have paused for thought before they did. One was the NFU dairy board chairman who called for a boycott of the chain. Another came from Amanda Ball, head of marketing and communication at AHDB Dairy. She tweeted: “Made my coffee drinking choices easier. As it happens I prefer Starbucks UK or Costa Coffee. No more Nero.”

To me both of them should have known better and the industry’s reaction reinforced my view that we should have helped and supported Nero because it was not the enemy and TB is not its battle. One person who correctly spotted that the Nero bashers were wrong was NFU deputy president Minette Batters, who actively worked behind the scenes with Nero. But where was the rest of the industry in Nero’s hour of need? Were its processor, or our representative organisations, rallying round? No. Where was the crisis management plan?

There wasn’t one. Is there one now, for the next time one of our customers gets targeted? I damn well hope so, but somehow, alas, I doubt it!

AUGUST 2015

DAIRY FARMER

15

**DF Aug p16 17 Bovela 2 (Signed off)_Layout 1 24/07/2015 11:19 Page 1

SPONSORED EDITORIAL

: D V B t u o ing

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Earlier this year, a rigorous plan was put in place on James Montgomery’s Somerset farm, when a suspected outbreak of Bovine Viral Diarrhoea (BVD) started to take its toll on the herd’s reproductive performance. (Dairy Farmer, May 2015)

aking fast action

against both type 1 and type 2

of 22%,” he says. “This has im-

“Health in the calf shed has

was particularly

BVD and the proven ability to pre-

proved further in recent weeks,

markedly improved, with treat-

important for this

vent a pregnant cow from produc-

with the conception rate to all serv-

ments for scours and pneumonia

farm where the

ing a Persistently Infected (PI) calf

ices in May reaching 49% after the

well down since the beginning of

award-winning

if protected before being served.

latest fertility visit.

March,” he says, remarking that

Montgomery’s Cheddar has

“Of course, I am not saying this

BVD will reduce the performance

been made to the family recipe

Prevention

is all down to the vaccination, but it

of the immune system, so leaving

for more than 100 years and has

“The prevention of PI calves is a

is possibly not a coincidence as

animals – particularly youngstock –

traded on its impeccable reputa-

particular advantage, as without

the figure had been fairly static at

vulnerable to a cross-section of

tion for hygienic and culinary

protection these calves can de-

28-30% for many months before,”

other infectious diseases.

quality.

velop if a cow is infected with BVD

he says. “Most of the cows, al-

in her first four months of preg-

though only vaccinated in March,

born to vaccinated dams, even

nancy,” explains Mr Kerby.

would have had protection in early

though the vaccination took place

pregnancy, at the time when BVD

part way through their pregnancy.

The farm’s two herds – one Jersey and one black and white – are run separately, and it was

“Once PIs are born, they act

can cause embryonic death.”

He points out these calves were

“As with the cows’ fertility, I’d

the 260-head Friesian herd

as a continual source of infection,

which had seen a decline in fer-

shedding the virus, infecting other

tility and tested positive for BVD.

animals and making it impossible to

rate is not the only parameter by

the improvement in the calf

The farm’s vet, Mike Kerby

eliminate the infection from a herd.”

which to measure reproductive

shed is attributable to the preven-

performance, it is an easy figure

tion of BVD as the calves have fol-

from the Delaware Group in Cas-

Today – less than a year after the

He says although conception

say it is early to say how much of

tle Cary, acted swiftly as

first symptoms became apparent

to calculate for immediate compar-

lowed this pattern in previous

he knew the devastation an in-

and six months after the vaccina-

isons and will feed through to other

years,” he says. “But if we can pre-

fection could cause. The herd

tion plan began – both the farmer

measures.

vent PIs being born

had already seen its conception

and vet can reflect on the progress

rate drop to as little as 22%.

made to date and consider the

[percentage of eligible cows which

plan going forward.

could become pregnant which do

A vaccination plan was at the

“For example, pregnancy rate

centre of the strategy and all the

“The most striking change has

get pregnant within a 21-day pe-

herd’s adult animals were put on

been in the herd’s fertility,” says Mr

riod] has increased from 12% to

to the course in March 2015. The

Kerby. “In the six months to the end

17% since vaccination,” says Mr

recently-launched Bovela vac-

of January 2015, conception rate

Kerby.

cine was chosen, being the only

was running at a rolling average of

product available with a primary

30%.

Other areas of the farm have also seen improvement, although

course which is just a single in-

“However, from February until

both Mr Kerby and Mr Montgomery

jection. Further features of the

today, this figure has increased to

believe it is too early to pinpoint the

vaccine include protection

37%, representing an improvement

cause entirely.

MIKE KERBY

16

DAIRY FARMER

AUGUST 2015

**DF Aug p16 17 Bovela 2 (Signed off)_Layout 1 24/07/2015 11:20 Page 2

SPONSORED EDITORIAL

A word from the sponsor JAMES MONTGOMERY sey herd has been completely then we should see these improve-

clear, which points to the source

ALLAN Henderson, cattle

producing massive amounts of

ments carry on through to autumn.”

of infection being the neighbours’

business manager at

virus and infecting all cattle

cattle getting in with the adult

Boehringer Ingelheim, says:

with which it has contact.

Annual vaccination

Friesians,” says Mr Kerby. “The Jer-

“BVD is one of the most

However, despite the improve-

sey herd is well protected with

common viral diseases

vaccine in the UK which has

ments already seen, the campaign

arable farmers all round, and if the

affecting cattle throughout

been proven to protect cattle

to eliminate the BVD virus from the

infection had been introduced

Europe, despite vaccines

from BVD type 1 and 2,” adds

herd continues, and this will in-

through the youngstock it would al-

being available for more than

Mr Henderson.

clude ongoing testing and annual

most certainly be in both herds, as

50 years.

vaccination.

both breeds are reared together.”

“We will test autumn-born calves

Mr Montgomery says both herds

“Bovela is the first and only

“Bovela is a unique one-shot primary course vaccine which

“It can cause early embryonic death and irregular

can be used in breeding

as there’s still a chance some will

have been milking exceptionally

returns. Later in pregnancy,

females and in calves from

be born to non-vaccinated fe-

well and the youngstock are grow-

it can cause foetal

three months of age. Control

males,” says Mr Kerby. “And in Au-

ing faster this summer than in the

mummification and abortion.

of BVD depends on

gust, we will also take a group of

previous year.

Work has shown it may also

understanding farm BVD

“There is a sense of relief we are

contribute to cows either

status, identification and

nine-12 months, to see if there’s a

on top of the problem, but it takes a

failing or taking longer to

removal of PIs, biosecurity and

change in their antibody status.

bit longer than that to get the feel-

conceive.

ongoing monitoring, as well as

five-10 bloods from calves aged

“Any evidence of BVD antibodies will result in this cohort being vaccinated before it goes to the

vaccination.

“BVD can affect unborn

ing you don’t have the issue any

“Seeking veterinary advice

calves at any time during

more,” he says.

“Last winter I felt we had far too

pregnancy with varying

on how to best tackle BVD in

bull, but if they are seronegative

many re-absorptions and cows not

degrees of severity. The most

your herd is the best starting

then they will not be vaccinated

cycling which prompted this inves-

sinister presentation is the

point,” says Mr Henderson.

until they calve and enter the milk-

tigation,” says Mr Montgomery.

persistently infected [PI] calf

ing herd.”

“There’s no doubt things are head-

which looks healthy, but is

The bulk tank will continue to be screened every three months in the

I’d like to see them continue

Jersey herd as this is still currently

for longer.”

antibody and virus negative.

“So far the Jer-

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ing in the right direction now, but

AUGUST 2015

DAIRY FARMER

17

**DF Aug p18 20 Breeding_Layout 1 20/07/2015 15:20 Page 1

BREEDING A recent study by Pennsylvania State University suggests the modern North American Holstein breed is derived from only two founder bulls, and of particular relevance to breeders is the suggestion this may be a reason for male infertility. Bruce Jobson reports.

Narrowing blood lines may be cause of male infertility

D

etailed analysis of the Holstein breed has shed light on the possibility that the reduced number of Holstein bulls within the modern population may be linked to infertility.

That means the extreme lack of genetic diversity we now see could be a limiting factor in improving the male fertility traits that are influenced by the Y chromosome.

The study analysed the population structure of paternal pedigrees for Holstein bulls born from 1960 onwards, with this date being chosen owing to the fact routine AI practices evolved during this era. In total 62,897 bulls were born between 1950 and 2013, and divided into seven groups covering each of the decades.

Due to emerging AI usage, only 846 AI bulls were born in the 1950s.

The number of bulls increased in the 1970s to 1990s, and reached a peak of 17,447 in 1990–99. This

18

DAIRY FARMER

Roybrook Telstar (born 1963) traces back to Neptune H, one of two founder bulls of the Holstein breed.

was followed by a slight decrease for the 2000 decade. For the first three years of this decade, 4325 bulls were born. There has been a decrease, partly due to genomic technology, with an estimate of 14,400 bulls set to participate in AI programmes during the current decade.

Analysis of the 62,897 North American Holstein bulls born between 1950 and 2013 reveals the group was descended from only four ancestors, namely Hulleman (1881), Neptune

AUGUST 2015

H (1880), Netherland Prince (1880) and Jacob (1880). Today, Netherland Prince and Jacob, do not have any living descendants, and this suggests only two independent Y chromosome lineages have survived in North American Holsteins.

This extreme lack of genetic diversity could be a limiting factor toward improvement in Holsteins for male fertility traits influenced by the Y chromosome. Retracing the steps using the two

remaining lineages revealed that back in the 1960s there were initially 1821 founders within the North American Holstein population.

Three founders By the 2010 era, only three AI era founders remained – Pawnee Farm Arlinda Chief (1962), Pennstate Ivanhoe Star ((1963) and Round Oak Rag Apple Elevation (1965). From the three founder bulls, Arlinda Chief and Ivanhoe Star shared the same

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**DF Aug p18 20 Breeding_Layout 1 20/07/2015 15:20 Page 2

BREEDING ancestor, Hulleman. All three bulls were born in the 1960s, and a decade later the percentage of their descendants was calculated at 30.92%.

Despite the increase in sires being tested, the three paternal lines reached over 80% by the 1980s and 90s.

Two of the three bulls were dominant in the 2010s with Arlinda Chief (48.78%) and Elevation (51.06%).

Penstate Ivanhoe Star gradually decreased from 10% in the 1990s to only 0.16% by the 2010 era.

Carrier This decline of influence is clearly the result of Ivanhoe Star having been identified as a carrier of two lots of function mutations, namely complex vertebral malformations (CVM) and bovine leukocyte adhesion deficiency (BLAD). Interestingly, an analysis on 220,872 Holstein-Friesian bulls in the Interbull database produced similar results to that of the North American population.

The number of founder bulls listed in Interbull also decreased from the 1960s to 2010s. By the 2010 decade only five founders survived. Alongside the three founder bulls in North America, a further two bulls were uncovered.

These being Roybrook Telstar (1963) and Paclamar Astronaut (1964).

As it happens, Canadian

20

DAIRY FARMER

The one-time popular Paclamar Astronaut (born 1964) also traces back to Hulleman.

born Roybrook Telstar is a descendant of Neptune H, and the California born Paclamar Astronaut is a descendent of Hulleman.

The analysis suggests that, most likely, all of today’s Holstein bulls are descended from the same two ancestors – Neptune H and Hulleman.

Most male AI era founders (above 99%) were eliminated from the breeding populations in the past 50 years (19602010). The influence of Penstate Ivanhoe Star was lost within a couple of decades due to CVM and BLAD – rather than genetic merit. Ivanhoe Star has a Lifetime Net Merit of minus $421, similar to Round Oak Rag Apple Elevation at minus $412, but superior to Pawnee

AUGUST 2015

Farm Arlinda Chief at minus $537.

Random genetic drift may have also played a critical role within Holstein populations whereby a large census population can be vulnerable to a loss of genetic diversity due to a drift in some instances.

Lack of attention There clearly appears to be a lack of knowledge on Y chromosome genes and their specific functions which has resulted in a lack of attention paid to the effect of Y selection.

The rapid decline in Ylineage founders since the 1960s is likely to have eliminated Y chromosome variation and genetic diversity. The loss of Ylineages is therefore a

likely consequence of the combination of intensive artificial selection through the use of widespread AI technology.

Furthermore, this has been compounded as the Y chromosome has never been a direct target for selection within Holstein populations.

The neglect of the Y chromosomes in cattle breeding programmes may be altered by progress in future bovine and other mammalian studies.

But any impact is only likely to happen if relevant traits important to dairy production are found to be associated with Y chromosome variation.

■ The article is based on the recent study by Yue, Dechow and Lui of Pennsylvania State University.

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**DF Aug p22 23 Robotic _Layout 1 21/07/2015 10:23 Page 1

ROBOTIC ROTARY

In what has been dubbed as a ‘game changer’ in milking automation, Louise Hartley reports from Hannover where a world first in robotic milking has been launched.

Robotics do the work in every stall of rotary

W

ith an individual robot arm at every stall, dairy equipment giant GEA Technology launched the world’s first fully automatic external rotary parlour in Germany last month.

Called the DairyProQ and with four prototypes currently running in Germany and two in Canada, the system was described as a ‘game changer’ in dairy automation by GEA’s vicepresident of large project sales, Steve Pretz.

He said: “Farmers have an increasing number of things to look after on-farm and automation will help them cope with these challenges.

22

DAIRY FARMER

The rotary has 40 points, each with its own robotic arm.

“Our customers are not only seeking more efficient and profitable businesses, but young people coming in to agriculture want to ‘work to live, not live to work’.

Dairy farms need to be attractive to young people and automation is key in that.”

Press from around the world gathered in Tichroda, south east Germany, to see the 40-point system which

AUGUST 2015

was installed on farm in June last year.

Milking 200 cows per hour and needing one member of staff to milk, the herd of 400 Holsteins could be milked in just two hours.

The system was installed by father and son Eckehard and Stefan Blottner, who farm 1740 hectares (4300 acres) with pigs, beef, geese, ducks and deer as well as the milking herd in their co-

operative farming enterprise Teichel e.G. Agricultural Cooperative.

On explaining why he made the investment, son Stefan Blottner cited lesser dependence on labour, consistency in the milking procedure, and improved efficiency as the key drivers.

The future Previously running a five-aside auto tandem which required two people to milk, he said: “For herds milking 400 cows or more I believe this the future. We need to keep growing – as individual farms produce more milk, others will have to make less and smaller farms will disappear.”

Dr Blottner said they wanted to move from milk-

**DF Aug p22 23 Robotic _Layout 1 21/07/2015 10:24 Page 2

ROBOTIC ROTARY ing two to three times per day but did not want to spend money paying good staff to milk all day long. At three daily milkings, the parlour runs for six hours per day and requires one person to watch the robots and assist with any cows which need to be manually attached, with another bringing cows in to the collecting yard – the aim is to have one person doing both.

“Put simply, we can now grow the herd without diluting the co-operative’s workforce, a group of highly skilled people we have worked hard to put together.”

Consistency of milking was also a big appeal for the father and son duo.

“For a cow, the best thing we can provide is a consistent milking procedure and the DairyProQ can milk cows more consistently and accurately than any work force,” said Dr Blottner.

Cows are brought into the collecting yard and enter the rotary as normal.

Each robotic arm sits in a stainless steel box within each stall divider.

Teats are cleaned, dried, fore-milk stripped and post-dipped via the liner.

Pre-dipping can also be applied.

“Efficacy of milking is not dependant on staff. Every cow is stimulated properly for a fast milk let down and teats are accurately dipped and performance is never variable.

“It is not about robotics – it is about investing in automation to help you do a better job.”

Since the herd has moved to threetimes-a-day milking, yields have in-

creased from an average of 28kg per cow per day to 33kg, with the highest yielding group hitting 42kg.

Cell counts Somatic cell count has also seen a positive reduction, from 260,000 to 90,000, which could also be due to cows being housed in a new building with a better environment.

The system also claims to have a unique service system. If a robot breaks down the stall can be blocked

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rAlso being launched was GEA’s mono-box milking robot. Geared towards farmers with up to 70 cows maximum, the robot uses the same technology as the DairyProQ rotary. It will be available to UK farmers in 2016.

off, leaving the remaining 39 robots to continue milking. Repairs can then be done in normal working hours.

When probed on cost, GEA representatives said ‘each robotic point costs significantly less than a single robot box’.

The rotary ranges from 28 to 80 stalls, with capacity to milk between 120 and 400 cows per hour. The system is available in the UK, and current predictions are that one will be working here in the next two years.

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AUGUST 2015

DAIRY FARMER

23

**DF Aug p24 25 26 27 Interview _Layout 1 23/07/2015 14:45 Page 1

INTERVIEW

Competition referrals permitting, Dairy Crest’s liquid division is set to be taken over by Muller Wiseman Dairies shortly. Peter Hollinshead talks to Michael Masters, secretary of the producers’ representative body Dairy Crest Direct, about what this means for his members and the industry at large.

Flag up as Dairy Crest waits on starting grid

hings have moved apace lately with the recent figures from Dairy Crest’s liquid division showing profits plummeting from around £19 million to just short of £2m.

On top of that, the Competition and Markets Authority (CMA) has announced it is to further investigate the proposed £80m takeover of the division

by Muller Wiseman Dairies. What is the current mood among your members?

Farmers are naturally unsettled, primarily,

T

24

DAIRY FARMER

I think, because of the milk price rather than the CMA issue. The milk price has fallen considerably in the last year and the economic situation is difficult on many farms.

As for DC profits in its dairies division, the 90% is a bleak figure but you have to remember it is always a year on year comparison and last year DC sold a significant amount of property in inner London which generated a profit of £15m in the previous year’s accounts. This was a massive contributor to the profits last year and there isn’t a similar figure in this last financial year, and so although it looks a big

AUGUST 2015

headline, it is not quite the drop figures would suggest.

If a deal goes through, some supermarkets seem to feel a duopoly would ensue, which would put the pressure on them over farm prices. To what extent do you think such fears are justified?

I don’t think they are justified at all. Having two wellinvested major liquid processors in the UK, which potentially will be Muller and Arla, should be to everybody’s benefit – farmer, processor and retailer – in ensuring we have decently invested facilities for the future. In other sectors like the poultry industry there are already duopolies working perfectly satisfactorily and there’s no reason why that shouldn’t happen in dairy as well.

But intrinsically it must give processors a little more power when they are negotiating prices when there are only two major suppliers?

Naturally one would

imagine the tender process will be quite robust, but then hasn’t it always been.

In the meantime, you have transformed yourself into the UK’s first Dairy Producer Organisation and this has been incorporated into your latest member’s agreement which should have been signed by producers by now – how has this gone down?

The DPO evolution took place over the last year with our elected forum reps and we launched back in May. We sent all information to farmers and have had meetings up and down the country. The attendance has been outstanding and the rationale of the DPO seems to have been well understood and accepted, and we are confident we will have a big sign up to the DPO. I suppose the crucial bit is what does it do for DCD members which you weren’t able to do before?

The crucial difference between the new DCD DPO and what we were before is

**DF Aug p24 25 26 27 Interview _Layout 1 23/07/2015 14:45 Page 2

INTERVIEW the EU and UK Government legislative competition compliance and authority we now have. With the uncertainties we face within the dairy business, ensuring we have proper authority to negotiate contract terms and pricing for the future is going to be more important than ever.

But you were able to negotiate prices before, were you not?

Previous discussions with DCD have been within what is termed ‘discretionary’ pricing. What we have been able to do under the DPO is move from discretionary pricing to pricing

by negotiation, and that is cemented in the core DPO regulations. This gives elected, accountable DPOs the authority to represent up to a third of all milk in a member state with complete competition compliance, and we did not have that right before.

And the new agreement I believe incorporates adherence to the voluntary code – DC accepted that, but what is the position regarding MWD? Both DC and MWD got right behind the code from day one, which was great, and gave some rigour to notice periods of price

announcements and when they were applied – being at least 30 days – and the three months notice ability for farmers if they wished. That decision was a step change in the relationship in how milk pricing was conducted, and it is such a shame there are so few other farmers able to share those benefits.

You currently have 1050 members, I believe, and 700 roughly will go to MWD if the deal goes ahead – will you still have just the one DPO despite serving two purchasers?

We applied to the RPA, which is the UK Authority for DPO registration, for a

single DPO as that is exactly where we were last November. Until the CMA have completed their deliberations it is uncertain exactly how the position will look then.

And what will happen to any who decide not to join your DPO? Anybody who chooses not to join our DPO will remain on discretionary pricing, and we would hope we would be able to encourage those members to join the DPO, but there will be no co-ercion.

If the MWD deal does go through, what will happen

AUGUST 2015

DAIRY FARMER

25

**DF Aug p24 25 26 27 Interview _Layout 1 23/07/2015 14:49 Page 3

INTERVIEW there – will you be looking to recruit members to your DPO from MWD farmers?

We would hope to continue to represent our farmers to the new processor. I hope we will be able to build on the best of both groups – the Muller group and the DC group – as there is a great opportunity to develop an organisation which has electoral accountability and independence and can add some real value to both parties in the farmer/ processor relationship.

But slightly deeper than that, MWD has around 1300 members – you could end up as quite an influential body with getting on for 2000 milk producers – is that a goal you would be aiming for?

As I say there is a great opportunity for farmers working together and developing solutions with their processor, but we are not allowed to talk to our counterparts at Muller Wiseman because of the competition restrictions. Those conversations will have to wait until the deal goes through.

Yes, but if it went through and you had those 2000 members in your DPO it would give you quite a bit of leverage, bearing in mind you now have the authority to negotiate prices, wouldn’t it?

It absolutely would, but to be fair to Muller farmers,

26

DAIRY FARMER

they don’t know all the various aspects about what makes DCD tick and what authority DPO provides – so there is a big piece of work there to explain that and hopefully to encourage them to look at it.

It sounds like a bit of a softly, softly approach and you say you are not allowed to speak to MWD at the moment, but have they given you any unofficial indication about taking on a DPO from Dairy Crest?

Following the announcement of the proposed takeover, all DCD members received a letter from Muller’s Ronald Kers confirming they were looking forward to working with DC farmers and with DCD, and were committed to taking on all contracts and contract provisions, and I am sure they will honour that good intent.

About 60% of your members on standard liquid contracts use your formula pricing – admittedly for only a proportion (around half) of their milk, and this had been a godsend for them with up to 4ppl difference over normal liquid members. However, the formula price has come back from around 32 to just under 28ppl and standard liquid from 32 to 23ppl.

That’s 14% and 29% respectively. Has this structure caused any friction or envy

AUGUST 2015

among your members?

I don’t believe it has.

When you talk about envy, we tend to think of the ‘haves’ and ‘have nots’ to do with retail pools.

When retail pools have been established, farmers selected are appointed, or annointed, by the processor, so the choice is not the farmers.

With offering a formula option we gave our farmers the opportunity to sign up to a proposition if they wished to, and the choice to sign up to 25, 50, 75 or 100% to formula pricing. The choice was theirs and they had three separate opportunities to sign up last year if they wished.

There won’t be any at 100% will there?

Yes, there are a number at 100%.

These formula mechanisms have been looked at elsewhere and some say they will not be sustainable

because of the fact they do create ‘haves’ and ‘have nots’. Do you think formula pricing has a future?

Absolutely. The formula concepts have been great as you give the farmer a choice as to how his milk is priced.

I would like to think in the longer term there will be further mechanisms such as futures and formulas so farmers have a greater ownership on how their milk pricing operates on a month-to-month basis.

Also, because our formula has a 12-month commitment, as and when our contracts move across to Muller – bearing in mind they have already stated they will abide by all the contract terms – our formula will still be in operation to at least 2017 if the deal is not completed until early 2016.

MWD is operating its own formula pricing at the moment, so presum-

**DF Aug p24 25 26 27 Interview _Layout 1 23/07/2015 14:49 Page 4

INTERVIEW ably it is not opposed to the idea of formula pricing?

Agreed. That said, the Muller formula is very different. The DC formula has a blend of markets and also farm inputs, where, as I understand it, the Muller formula is focused on markets alone – AMPE, MCVE and a basket of prices.

You didn’t have any restraint like A,B or C categories under DC – are you likely to meet such things under MWD? We don’t know what the situation will be on the supply and demand balance by the time 2016/17 arrives. I have no objection to A and B pricing so long as you have some transparency as to how those A and B prices are set.

Moving on to the wider front, you say UK production is up 1.6m litres per day over the last two years despite the price collapse.

Are we seeing two-tier production with top earners continuing to expand, or is price alone not a realistic constraint on production?

Price will have a major impact on curbing production but we do have a twotier market at the moment.

Those lucky enough to be on a retail contract in most instances have their production levels capped, so if they decide to produce more milk they won’t be getting the full benefit of

31-32p for those extra litres.

Conversely, the guys at the bottom end currently on 1415ppl, particularly on the former brokering contracts, some of those will be under significant pressure. However, once this amazing 2015 grazing season subsides, those farmers will find it hard to afford concentrate supplements due to high costs and milk production will start to fall quite quickly.

Part of your DPO intention is to develop a futures market for milk to counteract some of this inherent volatility – yet you are quoting an AMPE futures price of around 22ppl for June 2016 against a DCD May 15 price of 23ppl – which is not very encouraging, is it? Do you see ‘futures’ as a vital tool in the years ahead?

It absolutely will be. UK dairy farmers have only really had historic market information to date, and so futures will become a more important tool. Futures will only ever reflect longer term markets but at last we have a crystal ball we can look into with greater certainty than ever before.

Yes, the AMPE futures quoting a gross figure of 2122ppl for June 2016 is hardly encouraging, but far better that we have got some informed data whereby we can start to make some decisions than just sailing on blind.

You don’t have to have 1200 cows to have an efficient business Michael Masters

“

Is the figure you quote for June 2016 a figure set for 30 days?

AMPE futures is about translating the dairy futures trades in butter/ skim milk powder being conducted today for next June, and then converting that in to an AMPE figure so you get a translation figure farmers can understand. Yes, I completely accept it is not exciting at the moment but this will be one of the first markets that does respond when we come out of the present trough.

Just back to the MWD deal, if I may, you do see it going ahead do you… they won’t get cold feet will they?

I sincerely hope not. I think Muller has done a heck of a job in the UK in the last three years.

They have invested hugely in their own facilities, spent £280m on buying the Wiseman assets, they have invested in a butter facility at Market Drayton, bought the Nom yoghurt factory and now got their

cheque book out again to acquire Dairy Crest Dairies.

DCD wishes them well.

OK, on the wider front, will UK producers have to lower their cost of production if we are to compete on the global stage. You talk of some Irish producers signing up to three year deals at 20-21ppl. Is that right?

Some Irish farmers are agreeing to those sort of deals. Farming is a business and cost of production will inevitably have to come down if margins continue to be squeezed as they are.

And do you think that will be principally from econ-omies of scale?

No, not necessarily. There are still some tremendous businesses which are run on a small scale and you don’t have to have 1200 cows to have an efficient business.

Finally, where do you see the UK milk price going in the next 12 months or so?

It’s not looking very pretty at the moment. We have a larger UK national dairy herd than we have had for some time and the BCMS herd registrations for the last couple of years have shown increases.

And with AMPE futures not looking very bright, I expect we are going to see some unpalatable pricing through to the other side of next year’s spring flush.

AUGUST 2015

DAIRY FARMER

27

DF_08_P28 29_DPS 24/07/2015 11:14 Page 21

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AUGUST 2015

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DF_08_P28 29_DPS 24/07/2015 11:15 Page 22

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**DF Aug p30 Dairy Seminar_Layout 1 21/07/2015 10:27 Page 1

DAIRY SEMINAR

The Total Dairy Seminar – formerly the Large Herd Seminar – was held in Gloucestershire this summer and included a strong focus on diets and rumen health. Ann Hardy reports.

Early lactation is one of most critical times

F

eeding dietary fat to reduce negative energy balance and improve fertility in very early lactation is likely to lead to disappointment, according to Jo Leroy, professor of veterinary science, physiology and biochemistry at the University of Antwerp.

In fact, he said the chemical pathways involved would lead the cow to fall into greater negative energy status, which itself would have a detrimental effect on its overall metabolic health, including its reproductive performance later in lactation.

“But it’s far more complicated than that,” added Prof Leroy. He said although the

negative energy itself would have a detrimental effect on fertility, there were also direct effects from some types of dietary fat on the resumption of cyclicity and the quality of the oocyte.

Higher milk fat However, although he acknowledged the cow could produce more milk with higher milk fat in response to dietary fats, he said this effect would only become apparent later in lactation.

Instead of feeding fats in very early lactation, he said the dairy cow’s diet should be glucogenic – containing starchy feeds (such as maize and cereals) which tended to produce propionate in the rumen.

ing this critical period.

“I would advise never to touch dry or transition cows with fats because they suppress appetite,” he said.

Prof Jo Leroy: glucogenic diets.

He said dietary fats might reduce appetite which should be avoided in the early lactation period.

He also said the theory of feeding fats to dry and transition cows to prime the liver to cope with fat metabolism after calving had been contested and was ‘playing with fire’, and again risked the suppression of appetite and dry matter intake dur-

Unsustainable However, he insisted he was not against the use of fats altogether but ‘against their unsustainable use’. After the sixth week of lactation, he said they could be used in the ration at an inclusion rate of up to 2.5%.

“When offered strategically, fats can boost milk production and can stimulate oestrus expression and even the chance of pregnancy,” he said. “But only include dietary fats in the rations of metabolically healthy cows.”

Research shows value of methionine rProducers aiming to improve the metabolic health of their dairy cows may be well advised to add methionine to their transition rations, according to preliminary research presented by Professor Jim Drackley from the University of Illinois.

He said feeding this essential amino acid in its rumen-protected form

30

DAIRY FARMER

improved feed intakes after calving, increased milk yield and components, promoted faster recovery to positive energy balance, improved liver function, increased anti-oxidant capability and protected against inflammation.

Although these improvements had been seen in limited scale research, there were many pathways

AUGUST 2015

involved which substantiated the findings.

“For example, methionine may be involved in getting fats out of the liver as very low density lipoproteins,” said Prof Drackley. Similarly, he said methionine increased the activity of neutrophils – the first line of defence in the cow’s immune system.

He said further work in

Prof Jim Drackley: neutrophils.

methionine was currently ongoing and would be reported this summer.

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**DF Aug p32 33 T EVANS + CHAMP LE _Layout 1 23/07/2015 11:47 Page 1

LIVESTOCK EVENT REPORT Although there was plenty to see and think about at this year’s Livestock Event, for most attendees managing the low milk price would be at the forefront of their minds.

Driving business efficiency key to managing volatility

P

roducers can expect to face at least 12 months of the current milk price and should be continuing to reduce their costs of production.

Targeting a 10% cut in costs remains appropriate on many farms if they are to survive the tough times.

This bitter pill was delivered by Tony Evans of An-

32

DAIRY FARMER

dersons consultants. He said: “I think we have at least 12 months of where we are on milk price.”

Expecting external factors such as exchange rates to bail you out is not going to happen, according to Mr Evans, who said actions taken for the business were far more important.

“Analysis has shown the level of a farm’s profit is de-

Experts in fat nutrition AUGUST 2015

Dairy Da r Farmer Farmer MEGALAC MEGALAC 129 129x410mm x410mm 1 x 10072015 0072015 V V2 R R0 0.in ndd dd 1

termined far more by its costs than its income.

“There are those who think it is everyone else’s fault and those who learn to take good with bad and put things in place to deal with it.”

Precise solutions depended on where a business was placed in its life cycle, but he suggested working out the profit needed to meet short-term cash re-

quirements, identifying any shortfall and addressing how to bridge the gap.

“Additional bank funding is one answer, but reducing costs to raise profits is a better course of action,” he said.

Cutting costs, he added, was being helped by drops in input prices, some of which were oil-driven, currency changes and some because suppliers

**DF Aug p32 33 T EVANS + CHAMP LE _Layout 1 23/07/2015 11:47 Page 2

REPORT LIVESTOCK EVENT had been ‘taking too much’.

“There is scope for dairy farmers to drive harder bargains,” he claimed.

On his farm in Leicestershire, he said he was targeting cuts of 2p/litre, and said this was being achieved through feed costs which were down £40/tonne and fertiliser down £20/t among other input cost reductions.

“We are also postponing maintenance work and challenging cows to produce more from grass,” he said, adding his machinery inventory was set at no more than ‘one engine per person’ so nothing was idle.

He also warned against a widely-held view that pro-

rWisconsin-based judge Jake Hushon took centre stage at this year's Livestock Event and tapped out the Brown Swiss cow, Soulseat Jublend Beatrice, from Robert and Sheila McColm, Stranraer, as his interbreed champion.

Taking the breed title for the third year in a row, the win also makes the EX94 fourth calver the breed’s national champion.

It was also champion Brown Swiss at the UK Dairy Day and UK Dairy Expo last year.

duction should be increased in an attempt to dilute costs over more litres.

Describing this mentality as the ‘burning platform cash flow’, he said this was particularly the case for those on an A/B contract.

“There is zero logic in

increasing milk in the tank beyond what the dairy is expecting to receive,” he said.

Suggesting each marginal litre required 0.6kg of feed in a 6000-litre herd and 1kg feed in a 10,000 litre herd, he said farmers may be paying 19-20p to receive 15p.

“There is no economic sense in putting more in than you get out,” he said.

Urging farmers to take action swiftly, he said: “Front up to it now when you are more in control and have a logical plan rather than manage a crisis,” he said.

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33

10/07/2015 10/07/2015 / 015 11:44

**DF Aug p34 LE New prods_Layout 1 23/07/2015 10:52 Page 1

LIVESTOCK EVENT REPORT

Faster growth rates from high lactose calf pellets

M

ilk producers looking to meet exacting two-year calving targets could get a boost from a new high lactose calf growth accelerator due to be launched this autumn.

It has been successfully used in the pig industry over a number of years and has now been adapted for calf feeding. It is claimed to offer earlier weaning, with less set back, and reduced severity and incidence of nutritional scouring.

Commercial director Ben Helm of AB Neo, a division of the giant AB Agri said: “Axcelera-C can be fed ad lib from day three for the first two weeks of life along with milk powder and straw.

“From two weeks it should be fed at 150g/day

34

DAIRY FARMER

The new supplement claims to boost calf growth rates and improve health.

on top of the starter pellet.”

This works out at 10-12kg of the product to weaning, he said, which costs around

£18 per calf. The benefit of an improved growth rate is seen in earlier calving and better lactation yields.

Making more of cow’s diet

rThe company will also be launching a supplement for dairy cows claimed to ‘unlock the true performance of the ration’ and can replace some of the fats now fed to supply early lactation energy.

Mr Helm said: “OptipartumC contains only a third of the energy of fat and research shows it can replace 50% of

AUGUST 2015

fats in the ration, getting comparable yield performance and saving money.”

The firm claimed to be able to drop fat from 400g/day to 200g and replace with 200g of the product which costs £700/t, compared with the fat at £950.

The supplement contains palatability enhancers to

Trials with dairy bull calves grew at an additional 111g LWG per day over controls, equivalent to an extra 6kg overall to weaning, the firm claimed.

“If they had been heifers that would have been worth 225 extra litres in their first lactation,” said Mr Helm.

It is a 40% lactose pellet and said to drive aggressive intake in young calves, promoting rumen development, with calves starting to cud as early as two weeks.

stimulate dry matter intake and a range of prebiotic sugars with natural plant extracts to digest starch and fibre more efficiently.

The company said it should be fed for at least the first 120 days of lactation at a minimum of 100g/head and for three weeks before calving at 50g/ahead.

**DF Aug p35 LE News_Layout 1 21/07/2015 13:10 Page 1

REPORT LIVESTOCK EVENT

New award for Johne’s control

RABDF launches robotic ARM

JRABDF launched the Association of Robotic Milkers (ARM) at the event..

Initially, ARM will facilitate an exclusive online forum where members can share knowledge and access a network of industry members. It will be moderated by the RABDF, an independent consultant and robot users across the UK. RABDF national co-ordinator, Emily Egan, said: “It is designed to provide a discussion platform for farmers operating what is still relatively new technology.”

Gilmour and Caroline Lawrie won the Murchland cup for a second year.

Ayrshire trophy for second year

T

his year’s Murchland Cup for the best Ayrshire herd in the Gold Cup went to Gilmour Lawrie, Sandyford Farm, Prestwick, Ayrshire, for

the second year running.

Mr Lawrie, along with his wife Caroline, farm in a partnership with their son Kevin and their 167 cows are producing an average yield of 8593kg, with 4.16% fat and 3.35% protein.

JThe winners of the inaugural NMR Herdwise award were Robert and Bryony Symms, from Sherbourne, Dorset, with Tom and Karen Holton from Congleton, Cheshire, as runners up.

The new award aims to highlight herds which have adopted comprehensive management plans and demonstrated how they work alongside their vet to successfully tackle Johne’s in their herd.

AUGUST 2015

DAIRY FARMER

35

**DF Aug p36 LE Report Foot trimming_Layout 1 23/07/2015 11:34 Page 1

LIVESTOCK EVENT REPORT

Are we in danger of over trimming on toe length?

U

K foot trimming recommendations are badly out of date and urgently need to be overhauled to avoid the danger of causing unnecessary pain to our cows.

That was the message from Reuben Newsome, a researcher at Nottingham University Vet School, who has been looking at the optimum toe-trimming length in Holstein dairy cows.

Speaking at the Livestock Event, he said: “The Dutch method states we should measure 75mm from the top of the hoof wall and cut from there.

“But if you cut too short you are going to cut into the soft tissue and cause a lot of pain.”

Experience While he said the present situation may be okay for experienced trimmers who can vary the length depending on hoof size, it may be giving the wrong message to those about to embark on this career.

His work centred on CT scanning some 219 post-mortem claws, and

36

DAIRY FARMER

“

danger of keeping the toe end high and tilting the pedal bone backwards.

“I would say 90mm is too much in most cases. I would say 80 is nearer the mark.”

him, agreed there was a wide variation between 65mm for the Jersey to maybe more than 90mm for a very large Holstein.

Abrasives Before lifting any foot on farm, he always looked for the presence of sand and concrete which acted as abrasives because “you are in danger of overtrimming if you are not careful”.

He said he always felt the sole thickness at the toe before starting work on any cow’s foot.

“In my opinion, more damage is done to the toe area by trimming the walls or going between the claws with the grinder.”

If you cut too short you are going to cut into the soft tissue and cause a lot of pain Reuben Newsome

allowing a 14mm safety zone concluded 90mm should be left before making the cut if shaping to a point.

“We found the minimum safe cut length was 83mm and the maximum was 93 for one cow – even cutting at 85mm was too short for half these cows,” he said.

He added both age and breed would affect this and “if they are first or second lactation it may be alright to cut to 83mm”.

“We recommend, especially for those just starting foot trimming, to leave everything at 90mm – and if we train everyone to 75mm then we’re going to get problems.”

Devon-based foot trimmer David Rowe, with 20 years experience behind

AUGUST 2015

Toe length But while he accepts toe length is important, he said 90mm was slightly too long as this ran the

More damage is done to the toe area by trimming the walls or going between the claws with the grinder David Rowe

“

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**DF Aug p38 LE Gold Cup_Layout 1 23/07/2015 10:47 Page 1

LIVESTOCK EVENT REPORT

Neil Baker takes the Gold Cup

N

eil Baker from Haselbury Plucknett, Somerset, was named the winner of this year’s NMR RABDF Gold Cup at the Livestock Event.

A finalist three times, Mr Baker milks 1800 Holsteins which average 11,772kg at

3.62% fat and 3.25% protein on three times-a-day milking.

The family-owned farm now extends to 692 hectares and recent investments to improve efficiency include a pipeline for liquid manure and an aerobic digester which is soon to be completed.

The herd has an average

Neil Baker, Somerset, won the NMR RABDF Gold Cup for 2015.

SCC of 125,000/ml, a bactoscan of 30 and has reduced mastitis cases by 20% in the last 12 months.

The calving index is 385 days, the average age at first calving is 23 months, and 57% of cows are in calf again within 100 days of their lactation.

Runner-up was Brian Yates from East Logan, Castle Douglas, who manages his 277-cow Holstein herd with his wife Sheila, son Michael and daughter Anna, with herdsman Trevor Hough and farm worker Leslie Crank.

The all-year-round calving herd averages

11,707kg of milk at 3.97% butterfat and 3.13% protein on three-times-aday milking. Average cell count is 108,000 cells/ml and in-calf rate 100 days post-calving stands at 65%.

JBrown and Beer of East Hele, Bideford, Devon, was announced the winner of this year’s Lily Hill Trophy for the best Jersey herd among the Gold Cup qualifiers. It was presented to Maria and Chris Beer

who run 231 cows with Maria’s parents, David and Linda Brown. The herd produces 5695kg on average with 5.97% fat and 3.92% protein, varying seasonally with their spring calving.

Memorial award The Chris May Memorial award for the herd with the highest average lifetime daily yield among Gold Cup qualifying herds went to Nick Cobb, Dorchester.

His 742-cow Holstein herd achieved a lifetime daily yield of 18.99kg of milk a day. The herd’s average milk yield is 12,915kg at 3.59% fat and 3.07% protein.

Brown and Beer takes Jersey trophy

38

DAIRY FARMER

AUGUST 2015

**DF Aug p39 LE Report_Layout 1 24/07/2015 12:50 Page 1

REPORT LIVESTOCK EVENT

Thomas Hildreth receiving the Milkminder Manager of the Year Award from Promar managing director James Dunn.

Promar cup goes to York

he Hildreth family from Curlew Farm, York, took this year’s Promar Milkminder Manager of the Year Award.

Roger, Judith and their son Thomas, run a herd of just under 100 Holstein cows, averaging 10,200

litres, at 3.94% fat and 3.24% protein.

In the year to March 2015, yields have been increased by 700 litres, while feed costs per litre were reduced by more than 0.55pl, with a feed rate of 0.31kg/l. Margin over purchased feed is an impressive £2198.

JThere is no better signal to the cow that she is about to be milked than stripping foremilk, said Alastair Hayton, from Synergy Vets at a Farm Health Seminar.

Although the practice was contentious and had the potential to spread infection, he said this should be negated by pre-dipping.

Recommending the ‘gold

standard’ pre-milking routine of ‘strip, dip, dry, apply’, he said it was essential to hit the target of 60-90 seconds from first udder contact to cluster attachment. Failure to do so was likely to result in the stopstart of bimodal milk flow, potentially leading to slower milking and a greater risk of mastitis.

T

Timing is critical to milk let down

AUGUST 2015

DAIRY FARMER

39

**DF Aug p40 LE Report Clay_Layout 1 23/07/2015 11:32 Page 1

LIVESTOCK EVENT REPORT

Improved results from first cut silage analysis

R

esults of analysis of this year’s first cut silage indicate a higher quality crop than last year bringing the prospect of better performance and lower costs.

Speaking at the Livestock Event, Adam Clay, Trouw Nutrition’s ruminant manager, said that frosts and low temperatures had kept early season grass growth low, meaning grass covers in early May were not excessive and grass was a fresh regrowth. There was a window of good weather for harvesting which had, on average, resulted in a higher quality, if smaller crop than last year.

Energy levels are higher than last year and fibre

levels are lower. This gives the potential for extra production of 0.4 litres/ head/day compared with last year from a 10kg daily dry matter intake of grass silage.

Dry matters There is the further good news of slightly higher dry matters, which have risen to an average of 30.2%, compared with 29% last year.

The drop in neutral detergent fibre (NDF) from 48.3% last year to 46.8% in 2015 impacts on both digestibility and energy.

Average D value has risen from 66.9% to 68.3%, while ME (metabolisable energy) has increased from 10.7MJ/kg DM last year to 10.9MJ/kg DM this year.

Protein content has also

Initial first cut grass silage analysis 2015 (with 2014 comparison) First cut First cut Min Max 2014 2015 Dry matter (%) 29 30.2 16.4 54.8 Crude protein (%) 13.7 14.2 7 22.1 D value (%) 66.9 68.3 58.1 75.8 ME (MJ/kg) 10.7 10.9 9.3 12.1 pH 3.9 3.9 3.5 4.8 NH3N (%) 3 2.5 0.4 10.1 Sugar (%) 3.3 3.5 0.2 9.4 NDF (%) 48.3 46.8 39.3 63.9 Intake potential (g/kg 0.75) 96 99.2 70.9 135.8 Source: Trouw Nutrition GB. More than 1,000 samples analysed.

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DAIRY FARMER

AUGUST 2015

Resample monthly to fine tune the ration to reflect the silage actually being fed Adam Clay

“ improved from 13.7% to 14.2%, sugars are slightly higher at 3.5%, and the average pH is 3.9, which would suggest good clamp stability.

However, Mr Clay stressed the importance of regular individual clamp analysis. He said: “While the average is good there is still a range of figures and every farm is different. So it is important farmers take samples to determine what they have got and then resample monthly to fine tune the ration to reflect the silage actually being fed.”

Winter feeding Mr Clay said considerations for winter feeding to complement typical first cuts could include removing hay or straw from the ration as these would reduce energy density and intakes.

“The slightly higher

silage dry matter should add enough structure and help form a rumen mat.

Despite the generally positive position, rumen health should be closely watched since the lower fibre and the higher rapidly fermentable carbohydrates, including sugars, could raise the risk of acidosis.”

Crimp This may mean switching from dried rolled barley or wheat to using a treated product, such as crimp or caustic-treated cereals, which had a slower fermentation rate.

Maize was also said to be important, lowering the amount of rapidly fermentable carbohydrates and providing by-pass starch, while soya hulls would add a digestible source of fibre without significantly adding to sugars, he said.

**DF Aug p41 LE FCE_Layout 1 21/07/2015 13:19 Page 1

REPORT LIVESTOCK EVENT

Reduce waste by targeting FCE

P

roducers need to look much more closely at their feed conversion efficiency if they are to counter the current low milk prices.

That was the message from Carrs Billington ruminant specialist Duncan Rose, who said there was a lack of precision in the way dairy cows were being fed leading to unnecessary waste.

“We are running at around 1.2 FCE nationally and could get to 1.3 without too much difficulty, and that is about applying the knowledge we have

and being more precise.

“For the average 150-cow herd, a 0.1 shift in feed conversion efficiency is equivalent to £13,000 or 73 tonnes of feed dry matter per annum,” he declared.

Feed costs He said producers all too often thought their feed costs were about a third of their milk cheque, but when everything was accounted for, they were more like half.

Some of the problems arose, he believed, with one diet TMR where late lactation cows were being overfed, and any attempt to

respond by dropping allocations to the average yield would see milk fall away.

“Better to split the herd into two groups with 70% in the high yielders and 30% in the low yielding group, and drop the base diet for the late lactation and longcalved cows,” he advised.

However, he admitted two groups on family farms could easily become a “pain in the butt” and advocated in-parlour feeding or out-ofparlour feeders to help target cows better.

“Anyone would be advised to put feeders in the parlour unless they have a

large herd of 250-300 cows when they can have more groupings,” he said.

Forage On the forage side, he said producers needed to get away from thinking purely in terms of tonnes of silage and concentrate more on digestible nutrients which could involve cutting more frequently.

He said chop length should come down to 2cm, although with young grass silage it may be necessary to add a little chopped straw to the diet to get some effective fibre into the ration.

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Rapid exit with feeding from Pearson JPearson’s Rapid Exit Dispatch herringbone design blends rapid exit configuration with the ability to feed in the parlour.

Intended for use with 85-degree stallwork, it features sequential bailing paddles to ensure cows only enter the furthest units. For exit, front gates and troughs are raised but the paddles are not, leaving cows free to walk for-

wards. As the troughs are lowered the entrance gate can be opened to let in the next row of cows.

The firm also introduced a new design of teat sprayer for rotary parlours which uses the principle of ‘animatronics’. This is based on a nylon block design incorporating steel wire to create a snake-like hose unlikely to sustain damage should it be stepped on by a cow.

JSuffolk firm ATL chose the Livestock Event to reveal details of its new Plant Washer, the firm’s first in-house system.

Previously the company has sourced milking equipment washing systems from outside suppliers.

Designed to completely automate the washing process after milking has been completed,

it can be used with all types of parlour, says the firm, regardless of configuration or make.

The system is fully programmable, with up to eight standard wash cycles available, including dedicated pre-milking and milk stone programme keys.

Different programmes can be stored and automatically selected for different days.

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DAIRY FARMER

AUGUST 2015

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**DF Aug p42 44 LE Machines_Layout 1 23/07/2015 12:03 Page 2

LIVESTOCK EVENT REPORT

Heat detection that does more JPointing out missing a heat can mean the loss of three week’s milk production, Dairymaster’s latest MooMonitor + version of its heat detection system allows farmers to monitor their herd from their mobile phone.

While the focus of the original MooMonitor was whether or not a cow was in heat, the latest model can

now help monitor animal health by analysing 3m ‘data points’ per cow per day, it says, adding benefits of using networking and cloud computing to allow 24-hour herd monitoring.

The mobile app creates two-way interaction, and when the system detects sick cows, it sends an immediate notification to the user’s phone.

JDevelopments from Waikato Milking Systems include a new I-profile beam roller design for its rotary parlours.

The component is said to ensure the roller at the base of the beam remains in contact with the base of the deck. This is said to improve durability over the long term compared with the former design which carried a risk of twisting over prolonged periods of heavy cow loadings.

Also from the firm is an upgraded electronic milk

meter, which puts all operations on the one controller and is linked, via the firm’s Bail Marshal, to a Bail Display which now displays information via a large, two-colour LCD screen. Data shown includes milk yield, flow rates, milking duration and time to peak flow.

Beam roller and electronic milk meter

44

DAIRY FARMER

AUGUST 2015

ADF cluster upgrades made JWhile it looks the same from the outside, cluster specialist ADF Milking has made a small internal change to its latest unit which it says makes a big improvement to the coverage achieved when automatic teat dipping and flushing liners.

The new dual injector (shown next to the teat cup), can also be retrofitted into existing units. This provides the teat dip with its own spray outlet, resulting in greater accuracy and reduces dip use by 20%.

With milking complete, dip is directed through an

upper spray outlet via a gravity-operated valve.

With the cluster removed and the teat cups inverted, sanitiser is sprayed out of the lower spray outlet, each cup being flushed six times in 15 seconds with air blast agitation and drying.

Impulse Air cluster range JSaid to have been designed for ease of handling and minimal weight, Milkrite’s Impulse Claw 300 makes use of a specialist plastic known as Radel PPSU in its construction.

The manufacturer says it has been designed for modern cows with narrow rear teats and strong udder clefts in mind. The claw lid

can be rotated through 180-degrees to allow for a different attachment direction of the cluster.

The new unit is available with or without shut-off, with a number of backflush options and with a variety of ACR brackets. Milkrite’s patented triangular mouthpiece vented Impulse Air liners are fitted as standard.

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**DF Aug p46 UK Dairy Intro_Layout 1 23/07/2015 14:40 Page 1

UK DAIRY DAY PREVIEW

Welcome to UK Dairy Day 2015

K Dairy Day is in its second year, offering the industry a specific autumn dairy event focusing on all the facets of milk production from milk buyers to feeding, through to hygiene and breeding, to management and financial advice.

The theme of this year’s event is ‘Sharing Knowledge’ and features a learning and development zone, with seminar sessions to engage, inspire and educate. The new look layout, with more than 300 dairy businesses located on the ground floor, includes a larger external trade stand area featuring a demonstration area.

UK Dairy Day is hosting a National Show for the

U

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DAIRY FARMER

Event programme rColoured breed judging from 9am rHolstein judging from 12noon rRed Ribbon Sale at 4.30pm rSeminars: 9am-4pm rFoot trimming: 9am-5pm

Event details

Show director Carl Smith says focus will be on all facets of milk production.

The theme of this year’s event is ‘Sharing Knowledge’ Carl Smith

“

Holstein breed and coloured classes for Ayrshire, Brown Swiss, Dairy Shorthorn, Jersey and Guernsey. Nico Bons will be judging the Holstein

AUGUST 2015

classes, with John Suffern and Mark Logan judging the coloured classes.

New for 2015 will be a Red Ribbon Sale, a joint venture with Harrison and Hetherington.

The sale will take place after the cattle show in the main ring and feature the best dairy animals of any breed, hand-picked and specially selected by Glyn Lucas, senior dairy auctioneer.

Time: Wednesday, September 16, 8am-6pm Venue: International Centre, Telford, TF3 4JH. Tickets: £14 before July 31, £16 to August 15 and £18 on the day.

International and under 16 visitors free

Principal sponsors Cogent, NWF Agriculture, Eprinex, Holstein UK, Barclays.

Media partners: Farmers Guardian and Holstein International

To buy tickets, or for more information on UK Dairy Day, visit www.ukdairyday.co.uk Carl Smith, show director

SCR WP_WP 24/07/2015 11:07 Page 1

**DF Aug p48 49 Nutsford_Layout 1 21/07/2015 10:32 Page 1

UK DAIRY DAY PREVIEW

Showman Mark Nutsford believes today’s show cows have to have production credibility and be able to fit in with commercial dairying systems as well. Jeremy Hunt reports.

Show cows need more than type alone to win

T

oday’s show cows are also commercial cows and it is something every dairy farmer should have at the forefront of their mind when they are watching show class judging.

That is the opinion of breeder and showman Mark Nutsford, of the Riverdane Holstein herd in Cheshire.

He says: “Show cows are now coming into the ring straight out of life in cubicles and they go back into cubicles after the show.”

Commercial “They are cows which have been bred for type as well as for production, but first and foremost they are cows which are earning a living as commercial milkers – and

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AUGUST 2015

anyone leaning on the side of a show ring must never forget that.”

He believes that after the initial success of the inaugural Dairy Day, this year’s event will be a great opportunity for commercial dairy farmers to see the real benefits of breeding for type as well as for milk.

“When you look at the average yields of some of the top show cows they are way above what a lot of commercial cows are giving – and they are achieving it from being run within commercial herds.

“For a long time dairy farmers have been brainwashed into believing they need the wrong type of cow – a cow that simply milks.

They end up buying lowerpriced semen from bulls which are high on production but low on type. High production bulls are ten a penny, but using them is a short-term saving because ignoring type means jeopardising longevity and ultimately lifetime production.

“Semen from bulls with high type and high production will cost more but will produce the balance and the longevity that is so impor-

tant,” says Mark.

With no shortage of show cows giving up to 15,000 litres – and two cows in the UK currently heading towards lifetime yields of 200 tonnes – he says this level of production is clear proof of what can be achieved from cows which are kept commercially but have also been bred for type traits.

Riverdane The Riverdane herd, run by Mark and his wife Sue, has shown a host of top Holstein cows over the years and stood grand champion at this season’s Western Spring Show with Riverdane Talented Rose, and also took the intermediate and junior titles on the same day.

So when Mark moves into the centre of the ring as a judge what is he looking for in a modern show cow?

“I want balance, width, good udders, good legs and feet, and plenty of dairy character,” he says.

“And whether you are a breeder who shows or a commercial milk producer, that is what we all want.”

He says the ‘tall and narrow’ Holstein is a thing of the past.

**DF Aug p48 49 Nutsford_Layout 1 21/07/2015 10:36 Page 2

PREVIEW UK DAIRY DAY economically as possible.

“Forage and cereal byproducts remain the cheapest inputs so it makes sense to breed strong, capacious cows with the ability to cope with these feeds.”

Mark Nutsford runs the Riverdane herd in Cheshire and believes type and production go together.

“But there are still a lot of commercial cows being milked which are narrow and do not have the strength of functional traits needed for profitable production.”

As the cost of producing milk comes in for intense scrutiny in every herd, breeding cows that will last longer has never been more important.

But Mark says commercial milk producers must never forget profitable milk production is about having cows which can convert feed into milk as

Bull selection “It’s imperative commercial milk producers start to recognise the financial value of using bulls which will improve the type and functionality of their cows.

“And there are some very interesting results to be published later this year

by Holstein UK which will show the massive correlation between high type and production,” he says.

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**DF Aug p50 51 52 Dairy Day Ada_Layout 1 23/07/2015 13:29 Page 1

UK DAIRY DAY PREVIEW

After taking the grand championship at last year’s Dairy Day, we take a look behind the scenes to see how Bilsrow Gibson Ada fits in back at home in Lancashire. Jeremy Hunt reports.

Last year’s champion has to fit in with rest of herd

T

he impressive fifth calver Bilsrow Gibson Ada has attracted worldwide admiration since standing grand champion at last year’s inaugural Dairy Day, and James Tomlinson rates her as one of his best ever cows.

But despite her fame she spends her days alongside

the rest of the cows in the 270-strong herd.

“For me, a show cow must have the conformation traits to be able to live and thrive with the rest of the herd,” says James, who runs the successful Bilsrow herd with parents David and Sheila at Bilsborrow, Preston, Lancashire.

“Ada is a sociable cow, so right up until she was

washed before we left for UK Dairy Day, she was with the other cows which is exactly how it should be.”

Breeding decisions As a breeder he acknowledges owning a cow as good as Ada means any breeding decisions are a case of ‘damage limitation’.

“You need to use bulls that preserve the best bits of

F

See us at UK Dairy Day

50

DAIRY FARMER

AUGUST 2015

a cow as good as this,” says James. “Ada has an outstanding udder that never changes from lactation to lactation. She is the best-uddered cow we have ever had, but even though she is a very big cow she is still extremely well balanced and fits in with the herd easily.

“As soon as she is PD’d in-calf she re-joins the milkers.”

DF_08_P51_DF_12_P51 24/07/2015 09:55 Page 2

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**DF Aug p50 51 52 Dairy Day Ada_Layout 1 23/07/2015 10:41 Page 2

PREVIEW UK DAIRY DAY James Tomlinson firmly believes the type of show cows now winning in the ring are closer to the type needed by commercial dairy farmers.

“For me, as a judge, that is paramount,” he explains.

“UK Dairy Day gave an opportunity for good cows to come out of milking herds and go into the ring. It’s what we did with Ada, and with 13,500 litres in her current lactation, it confirms she can prove herself in the parlour and in the show ring.”

James says his breeding decisions are not based on trying to produce cows to win in the ring. “Absolutely not. As the herd increases in number, my aim is to breed cows which are balanced and that fit into our cubicle system and will last.”

sales of stock and raising the profile of the herd – not only in the UK but world wide.

“It proves how important a good win can be. So for young people with an interest in Holsteins I would say showing can be a really important part of developing their business.

“It would be easy not to bother showing cows, but if a herd has something special and someone is willing to put the effort in, it can really lift a herd’s profile.”

James Tomlinson says breeding decisions are not based on producing cows to win in the ring.

Commercial producers “These are the type of cows our bull customers want to breed. Ada is extra special and that’s great, but I am not setting out to produce just show cows.

“There was a time when the type of cow winning was too extreme, now things are far more in line with what commercial milk producers want.

“I’m very happy the right type of cows are winning in the ring. There are blips from time to time but in general we are seeing more and more that the top shows are won by cows with the functional traits that every dairy farmer in the UK needs – and that’s good legs and feet, a good udder, a wide rump and a wide chest.

“Anything else, such as the style that makes a good show cow, is a bonus.”

James believes the show ring has an important role to play in helping herds promote their cattle and drive future sales of genetics.

“Winning with Ada at the Dairy Day has been very beneficial in terms of

AUGUST 2015

DAIRY FARMER

53

**DF Aug p50 51 52 Dairy Day Ada_Layout 1 23/07/2015 10:43 Page 3

UK DAIRY DAY PREVIEW The Ada story

James Tomlinson on farm at Bilsborrow with Bilsrow Gibson Ada.

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r“Managing a cow as good as Bilsrow Gibson Ada is a 365 day-a-year job,” says James Tomlinson.

“She may live with the rest of the herd but I check her carefully every day. I know her very well.”

Prior to last year’s victory, Ada had stayed in the fresh group after calving and was never managed as an individual show cow.

“She was washed once a week for a month prior to the event and then clipped off a couple of days before, but that’s all the preparation we gave her.

“She was a bit under the weather the day before the show, but we pulled her round. She always rises to the occasion, she loves being in the ring.

“You can’t force cows to do this but on a show day she enjoys every minute of it. At the Dairy Day she definitely knew when she’d won – but then a lot of people say that about top winners. It is part of what makes them special.”

Gibson Ada’s great-grand dam was a shrewd buy. The Tomlinsons paid around £900 for her at a Europon sale more than 20 years ago, but the jewel in the pedigree was Aitkenbrae Starbuck Ada – ranked as one of the world greats in Holstein breeding.

“Gibson Ada has Starbuck

Ada about six generations back in her pedigree and she has a very strong resemblance to her in terms of her conformation,” says James.

Because of her calving dates she was considered never to be just at the right stage for the big shows so was not shown, although she stood champion at Garstang Show last August.

“As she matured at home, she got better and better,” says James.

Ada, out of a dam by Cogent Design, has produced 10,000-12,000 litres in her first few lactations and has currently given just shy of 13,500 litres with her fifth calf. Her lifetime yield so far is 70,200 litres.

Ada has only produced one heifer calf so far which is by Iota. She is currently in calf to Mincio. All sons have been sold as stock bulls into other herds and include progeny by Jeeves, Goldwyn and Winbrook.

She has not been flushed so far, but a future flushing is not being ruled out, says James.

“Even as a young heifer there was something extra.

We showed her as a milking heifer at Westmorland Show where she stood champion heifer, and a lot of people tried to buy her that day.”

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**DF Aug p54 55 56 Milk Prices (CORR)_Layout 1 24/07/2015 12:42 Page 1

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56

JThe continued over supply of milk into an imbalanced market has duly triggered another round of summer milk price cuts, which for many are unlikely to be the last.

The UK’s major milk buyers have had to respond to the pressure with Arla Foods cutting 1.18ppl from July 6 (0.41ppl attributed to the quarterly change in their currency smoothing mechanism) taking our Liquid standard litre* down to 23.81ppl, while our Manufacturing standard litre* falls to 24.74ppl. Both include the forecast 13th payment of 0.78ppl but not the 0.01ppl b/f reconciliation.

Having held its milk price since the March cut of 1.75ppl, Müller-Wiseman has reduced its price by 1ppl from August, taking our liquid price down to 23.15ppl. Dairy Crest has managed to hold its standard non-aligned liquid price of 23.09ppl from March (previously a floor price) through to the end of

DAIRY FARMER

AUGUST 2015

August, but it remains to be seen given the serious level of weakness in commodity prices if the three major players can hold these price levels as we enter the late summer into autumn.

Positive One piece of positive news was the August 0.25ppl increase for Dairy Crest Davidstow suppliers.

This bonus is paid in recognition of farmers successfully achieving the company’s new Farm Standards, introduced earlier this year in preparation for the production of de-mineralised whey and galacto-oligosaccharide (GOS) for the global infant formula market. The bonus takes our manufacturing price up from 26.17ppl to 26.42ppl. * Our Liquid standard litre is 4%b/f & 3.3% protein and our Manufacturing 4.2%b/f & 3.4% protein. And in both cases with Bactoscans of 30,000/ml & 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.

**DF Aug p54 55 56 Milk Prices (CORR)_Layout 1 24/07/2015 10:16 Page 2

Milk price analyst Stephen Bradley on the latest milk industry developments.

News in brief...

League table

JThis month our milk price league table highlights milk prices paid for April along with our ‘B’ price indicators. The FCStone/Milkprices.com AMPE Futures (gross) for April settled at 19.73ppl, down 2.57pl on the previous month, while our net AMPE price to the producer was down 2.45ppl to 16.74ppl.

Our spot milk price, net to the producer, again showed the nature of its volatility by falling 6.35ppl on the previous month to average 13.30ppl.

To give an indication of how these springtime levels compare with mid summer, the FCStone/Milkprices.com AMPE Futures (gross) for midJuly was around 17.69ppl delivering 14.25ppl net to the producer. Meantime spot milk prices currently around 12ppl return a net figure to the producer in the region of 9.5ppl.

While April prices might seem a little historical, we draw your attention to the last column of the table. This highlights the latest confirmed milk price for each buyer since April to give you an up to date snapshot.

Cheese market in tough times

JMilk prices for cheese are suffering from fall in demand and the value of sterling.

Glanbia Cheese has reduced its milk price by a further 1ppl from Aug’15 following its 0.75ppl cut the previous month. The company’s latest price move takes our Manufacturing prices down 1ppl on the Base price schedule to 22.65ppl, while the constituent option reduces 1.03ppl to 22.91ppl.

Belton Cheese has reduced its price by 1.15ppl from August, taking our Manufacturing price down to 23.75ppl, while Barbers has cut 1ppl from July to 25.56ppl.

Other price moves include Meadow Foods cutting 1ppl from August down to 20.0ppl on our Liquid price, Yew Tree 0.75ppl down to 23.75ppl.

Paynes cut 1.5ppl from July to 21.70ppl and Grahams Dairies cut by the same amount but from the middle of that month to 23.75ppl.

All these prices can be tracked in the far right column of the table delivering the latest announced price from April.

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AUGUST 2015

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57

**DF Aug p54 55 56 Milk Prices (CORR)_Layout 1 24/07/2015 10:14 Page 3

MILK PRICES Latest milk prices from LIQUID PRICES (4% b/f & 3.3% prot) MüllerWiseman – Booths D.C – M&S ∞ D.C – Waitrose ∞^ MüllerWiseman – Tesco Arla Foods – Tesco MüllerWiseman – Sainsbury's D.C – Sainsbury's Arla Foods – Sainsbury's MüllerWiseman – The Co-op Dairy Group Crediton Dairy DC/DCD – Liquid Formula ∞ DC/DCD – Formula Simplified Liquid Arla Foods – AMCo Tesco Blackmore Vale Farm Cream Freshways Arla Foods – AMCo Liquid Arla Milk Link – Liquid Grahams Dairies Dale Farm GB (Kendal) Yew Tree Dairy MüllerWiseman – Standard Arla Foods – Direct Liquid D.C – Standard Liquid ∞ Meadow Foods Lakes Meadow Foods Paynes Farms Dairies Pensworth Dairy First Milk – Liquid 18.60/19.50 Dale Farm NI ≠ Simple Average

MANUFACTURING PRICES (4.2% b/f & 3.4% prot) Parkham Farms Cadbury – Selkley Vale Milk D.C – Davidstow ∞ The Fresh Milk Company – Level Profile ‡ Barber A.J & R.G Arla Foods – AMCo Manufacturing The Fresh Milk Company (Lactalis) Wensleydale Dairy Products Arla Milk Link – Manufacturing Arla Foods – Direct Manufacturing Wyke Farms Glanbia – Llangefni (Constituent) Belton Cheese Glanbia – Llangefni (flat) MüllerWiseman – AMPE/MCVE Formula South Caernarfon First Milk – Cheese Simple Average ‘B' Price Indicators FCStone/Milkprices.com AMPE Futures (gross) FCStone/Milkprices.com AMPE Futures (net) Delivered spot milk (net to the producer)

Mar'15 4.0/3.3 Before Seas'lty

Apr'15 4.0/3.3 Before Seas'lty

12mth Ave May'14 Apr'15

21.94 26.93

21.94 26.80

24.85 29.80

(i) 34.50 34.24 33.00 32.01 31.76 31.60 31.54 31.48 29.84 26.36 28.71 28.64 25.67 26.01 24.91 24.97 24.97 26.50 24.89 25.00 24.15 23.40 23.09 22.04 22.00 23.20 23.40 21.20

(ii) 34.50 34.24 33.00 32.01 31.76 30.98 30.92 30.86 29.84 26.36 28.72 28.65 26.53 25.00 23.87 25.83 25.83 25.25 24.39 25.00 24.15 23.40 23.09 22.00 22.00 23.20 23.40 20.50

Diff Apr'15 v Mar'15

Latest Confirmed Milk Price

(iii) 35.00 34.24 34.19 33.16 32.98 32.37 32.31 32.25 31.69 30.86 30.58 30.51 29.56 29.29 28.90 28.86 28.86 28.81 28.64 28.58 28.54 28.35 28.03 27.25 27.20 26.88 25.79 25.57

(i) v (ii) N/C N/C N/C N/C N/C -0.62 -0.62 -0.62 N/C N/C 0.01 0.01 0.86 -1.01 -1.03 0.86 0.87 -1.25 -0.50 N/C N/C N/C N/C -0.04 N/C N/C N/C -0.70

(iv) 33.00 32.79 31.98 30.93 30.68 30.87 30.81 30.75 28.32 25.36 27.86 27.79 24.51 N/C 23.87 23.81 23.81 23.75 N/C 24.50 23.15 21.00 N/C 20.00 20.00 21.70 22.65

N/C

N/C 32.21 28.65 26.42 23.34 25.56 24.74 22.77 25.57 24.71 21.69 23.85 22.91 23.75 22.65 20.59 23.57 20.70

33.36 30.63 26.17 25.05 26.59 25.95 24.48 26.07 25.90 24.17 24.89 24.71 24.90 24.40 23.25 22.28 22.25 25.59

33.36 29.38 26.17 24.39 26.59 26.85 23.82 26.07 26.79 24.17 24.89 24.71 24.90 24.40 21.00 22.28 21.43 25.36

34.55 32.94 30.90 30.50 30.43 30.01 29.94 29.88 29.83 29.32 29.16 29.01 28.93 28.59 28.40 27.95 27.26 29.86

N/C -1.25 N/C -0.66 N/C 0.90 -0.66 N/C 0.89 N/C N/C N/C N/C N/C -2.25 N/C -0.83

22.30 19.19 19.65

19.73 16.74 13.30

23.93 20.73

-2.57 -2.45 -6.35

Notes to table Prices for both Liquid & Manufacturing tables paid for producer sending 1mltrs/yr on EODC with Bactoscans of 30,000/ml and SCCs of 200,000/ml. Prices exclude capital retentions or AHDB levies also annual / part annual growth incentive schemes not directly linked to dairy market price movement. Liquid price for milk contains 4% b/f and 3.3% protein. Manufacturing price for milk containing 4.2%/b/f and 3.4% protein. (i) Mar’15 prices before seasonality or B pricing. (ii) Apr'15 prices before seasonality or B pricing. (iii) Table ranked on simple rolling 12mth average of monthly prices before seasonality or B pricing. (iv) Latest confirmed milk price (before seasonality or B pricing) at the time of going to press. Arla AMCo prices include amba forecast 13th payment +0.78ppl and before Apr'15 b/f reconciliation of -0.01ppl. Arla Milk Link prices include amba forecast 13th payment +0.78ppl. Pensworth Dairy, ranking price based on the 7mths to Apr'15. ∞ Price includes 12mth rolling profile payment fixed at 1.15ppl. ∞^ Price before seasonality includes 12mth rolling profile payment fixed at 0.52ppl. ‡ Price includes 12mth average rolling profile fixed at 0.57ppl. DC/DCD & MWD Formula prices assume 100% of producer supply. AMPE Futures net to producer includes 5% processor margin while allowing 2ppl for ex-farm haulage & milk testing. Average delivered spot milk price net to producer allows an average 2.5ppl covering haulage from farm to customer + milk testing/admin and margin. Tesco milk prices include the 0.5ppl bonus for co-operation with Promar costings. Milkprices.com cannot take any responsibility for losses arising. Copyright: Milkprices.com

58

DAIRY FARMER

AuGuST 2015

Sandringham Proof_WP 24/07/2015 12:55 Page 1

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DF_08_P60_DF_08_P60 24/07/2015 10:32 Page 22

DAIRY FARMER

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AUGUST 2015

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61

**DF Aug p62 63 Evans_Layout 1 21/07/2015 10:37 Page 1

GOOD EVANS

GOOD Evans

How I came to end up in basket in the dog house This month Roger Evans tells us about his discovery of the fundamental problem with being tempted to make haylage, and how he unexpectedly ended up in the dog basket.

62

DAIRY FARMER

A

lot of my friends around here are beef and sheep farmers.

Most of the silage they make is round baled, but if the weather is fairly settled, they will turn the grass a couple of times and wrap it as haylage.

It always looks a lovely feed for cattle and sheep but there doesn’t look much milk in it to me, but nevertheless last year we made some on a field we were renting. It was cut three days before we baled it and we ran the haybob through it twice.

There were about 80 bales of it. A few wrapped bales can be very handy in the summer as you can feed them to cows which are due to calve and young calves that haven’t been turned out. So we open up the first bales and it looks good and smells even better.

In fact, it smells so good that if it were a bit drier I’m sure you could roll it into a cigarette and smoke it. Which may sound an unlikely analogy, but you’d be surprised what they roll into cigarettes around here.

The trouble was that however great it smelled, nothing would eat it.

So we’ve got 80 bales looking at us and we’re scratching our heads as to what to do with them. What we do now is put a bale on its end, cut the top open, and tip a

AUGUST 2015

bucket of molasses on it, then feed that bale next day. That works fine, it’s all eaten up.

There’s an added bonus as well – we know where all the wasps are!

The family has a fair bit of lawn to mow between them so I have a ride-on mower.

It’s my mower, I paid for it. Well, okay, the VAT man paid for some of it but neither he nor my farm secretary knows that. The mower needs to last a long time as I couldn’t afford to swap it.

The biggest challenge to its longevity is when my grandsons use it. I go to use it yesterday and it’s been moved. So I inspect it for damage, there’s none. The only thing different is that it now carries a can of male deodorant. So it looks as if we have bred a generation of posers and playboys.

I’ve been writing for Dairy Farmer for quite a long time now. I’ve always been honest with you, I’ve always told you about the good and the bad in my life, but mostly the bad because there’s usually an irony, a funny side to the bad.

So today’s bad news is that I now suffer with a condition called ataxia. Ataxia affects your co-ordination, your balance and your speech. You have to concentrate on all three aspects all the time. Which is especially difficult, because, up to now, they are things that you have taken for granted.

**DF Aug p62 63 Evans_Layout 1 21/07/2015 10:40 Page 2

GOOD EVANS

If it were a bit drier I’m sure you could roll it into a cigarette and smoke it

“

I’m not telling you this because I expect or want any sympathy, it’s just if you meet me and I’m struggling to get about or slurring my words, it’s not just because I’ve been in the pub. There is no cure but there’s plenty worse off in life than me. They reckon there’ll be a cure in five years’ time and I intend to hang on in there until then.

Anyway, one Thursday night I’m showered and changed to go to the pub.

Thursday night is farmers’ night, they call it Thirsty Thursday. I go out of the back door and the dog is hanging about waiting to be fed. I usually feed him at bed time but decide to do it now. The dog and dog food live in a sort of outhouse next to the back door, a room that is full of our central heating boiler and all sorts of stuff.

I keep the dog food in a dustbin so he can’t go ‘ad lib’. But the grandsons have dumped their cricket bags next to the dustbin (something grandsons do), and I can’t quite reach it. Instead of moving the bags I try to reach over them, and the dogfeed bag is nearly empty so I have to stretch even more. Then I feel my balance going. I know I’m going to fall over but my main concern in the very dirty floor and my

fairly clean trousers. The dog sleeps in one of those big plastic dog ‘baskets’, it offers a soft landing and is marginally cleaner than the floor.

So I end up on my back in the dog basket, and I can’t get out. Well I could roll out but that would get my trousers dirty. Keeping my trousers clean is what got me into this predicament in the first place. The kitchen door is open so I try to shout Ann to pull me out, but she’s got the TV on too loud and she can’t hear me. So I try to phone her on my mobile but there’s no signal (which is about normal around here). So there I am wedged in this plastic dog basket.

I think I was stuck there about 10 minutes. As I lay there it occurred to me that this is how a tortoise must feel when someone puts it on its back. Eventually, I bite the bullet and roll out on to the floor and get my trousers filthy.

I thought it was all quite funny. They thought it was quite funny at the pub when I told them later, and the dog, who witnessed it all, thought it was hilarious!

■ If any of you would like to send your best wishes to Roger, we have set up a temporary email at revansdf@gmail.com

AUGUST 2015

DAIRY FARMER

63

**DF Aug p64 Finance_Layout 1 21/07/2015 10:57 Page 1

FINANCE

Tax saving has an intrinsic appeal but are we getting carried away by it without thinking through the implications. Pat Tomlinson, who spent 15 years in the banking world and is now with Albert Goodman, explains his case.

Is the tax tail wagging the profit dog?

Once the allowance has been used, the value of the asset(s) for tax purposes is nil

“

A

business pays tax on the profit it makes, and if there is no profit, there is no tax to pay.

Some plan well to minimise their tax liabilities, some pay no tax because they make no profit, and some take action to minimise their tax but make no profit.

It is the last group which has been growing all too rapidly due to the Annual Investment Allowance (AIA) on plant and machinery. This allows businesses to write off 100% of the cost of new machinery against taxable profits in one year.

There should be a link between the amount of new investment

Expert opinion rWe are clearly in an era of very volatile profits from dairy farming, and it is preferable to preserve cash from good years to sustain the business in poorer years.

64

DAIRY FARMER

AUGUST 2015

made on farms that is eligible for AIA and the amount of taxable profit such investment consequently reduced.

It should be pound for pound, but I suspect in reality the expenditure far exceeds the amount of taxable profit saved – because the profits to be reduced were simply not made.

Some important points can easily be missed about the AIA. First, it is only an ‘accelerated’ allowance which would otherwise be available in reducing amounts, usually at 18% of the residual balance per year.

Secondly, once the allowance has been used, the value of the asset(s) for tax purposes is nil. These assets are usually held in a pool for tax purposes and it is common to find the value of those pools to be very low or even nil. The result of this is there are very little capital allowances to be claimed against future profits – and worse still, when machines are swapped in future they are likely to be sold for more than their tax written down value, creating a taxable profit.

Remember, to save £1 in tax, a basic rate taxpayer would need to spend £3.45

on machinery, a higher rate taxpayer £2.38 and a company £5. The saving of £1 tax in each case looks tempting in isolation, but from a cash perspective the business has to spend up to £5 to achieve that saving and so the overall cash impact is entirely negative.

In practice what has often happened is much worse in that the new machines are purchased on HP and so the tax benefit comes in the year in which the profit is made, and the cash cost of buying the machine comes in the next three to five years when profits may not be so good.

Good investment decisions on dairy farms need to take account of the tax and cash impact over a longer cycle than simply the year in question.

This means basing investment decisions on their ability to increase the profit of the business and then, having justified the purchase decision, to identify the best way and time to make the investment to minimise the tax burden and manage the cashflow effectively.

In essence you have to make sure it is the ‘profit dog’ wagging the ‘tax tail’.

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

MACHINERY RY

19-21

Election outcome brings relief and uncertainty to farming

Kit on show at Grassland sland UK

rEU membership now at stake

Limousins sins sell to 9,500gns 00gns

rBadger cull will carry on

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

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

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

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

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

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

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

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

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

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

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

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

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

“I would be nervous if they start

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

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

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

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

MORE ON THIS STORY See page 2.

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MAKE BVD HISTORY AN INNOVATIVE SOLUTION

NOW IN YOUR HANDS

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

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

Herd protection made simple

Reference: 1. Meadows (2010) Cattle Practice 18(3): 202-215 Advice on the use of Bovela or other therapies should be sought from your veterinary surgeon. Bovela lyophilisate and solvent for suspension for injection for cattle contains modified live BVDV-1, non-cytopathic parent strain KE-9: 104.0 â&#x20AC;&#x201C;106.0 TCID50, Modified live BVDV-2, non-cytopathic parent strain NY-93: 104.0 â&#x20AC;&#x201C;106.0 TCID50. UK: POM-V IE: POM. Further information available from Boehringer Ingelheim Limited, Vetmedica, Bracknell, Berkshire, RG12 8YS, UK. Tel: +44 (0)1344 746959. Technical enquiries: +44 (0)1344 746957. Email: vetmedica.uk@boehringer-ingelheim.com.

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