Dairy News Australia March 2013

milk PAYMENTS: Murray Goulburn revises system PAGE 4 AUSTRALIAN DEBUT New Claas tractors PAGE 34

FLOATING BEDS

Ultimate cow comfort PAGE 23

march, 2013 Issue 34 // www.dairynewsaustralia.com.au

Australian processors stuck in the past, says Murray Goulburn chief PAGE 5

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Dairy NewS AUSTRALIA march 2013

news // 3

NSW farmers Ron and Brenda Graham have seen improvements in milk solids and fertility in their crossbred herd.

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SA farmers Graeme and Vicki Verrall installed the Moo Monitor automated heat detection system with good results.

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Shepparton contractor Barney Young took delivery of his Aitchison Air Pro 4132 direct drill/seeder and can’t wait to have a “real belt at it”. PG.31

News ������������������������������������������������������ 3-12 Opinion ���������������������������������������������� 14-15 Agribusiness ������������������������������ 16-17 breeding management ������18-19 Management ������������������������������� 20-21 Animal Health ���������������������������23-27 farmworld show preview ������������������������������������������28-30 Machinery & Products ��������������������������������������� 31-34

Queensland farmers Greg and Darrell Dennis took cow comfort to new levels when they installed this freestall barn and equipped it with floating sheds. Read more on page 23.

Global prices rise affected milk production, now trade to get through stocks,” he said.

“The issues we are facing today tinued their upward surge with fur- expected to be only 1% higher than is this big pipeline that had to work ther price rises in the first Global the 2011-12 record season.

Murray Goulburn managing its way through, as well as that we Dairy Trade auction of the month.

It’s a further positive sign for the director Gary Helou said lower have an exceptionally high AustraEuropean Union intervention lian currency.”

2013/14 season.

Dairy Australia industry anaThe latest Global Dairy Trade inventories, and a slower secondauction on March 5 shows that the half dairying season in New Zealand lyst John Droppert said dairy comrise of 10.4% on the trade weighted anchored by the ongoing strong modity prices had trended upwards index (TWI) puts the TWI up 18.9% demand in emerging markets, were in recent weeks on the back of a broader slowdown in supply, for 2013 and an increase of as climatic challenges com21.3% for the last six months.

New Zealand drought bined with difficult producSupply concerns due a key driver of the recent tion economics in key global to the drought in New price hikes. exporting regions.

Zealand’s North Island and “That’s a promising sign low global supplies appear to be the driver of the recent price promising signs which should result for 2013/14 opening prices,” Dropin lifting prices during the early part pert said. hikes.

Independent financial analyst New Zealand milk production of next financial year.

He said recently that markets Francis Wolfgram said November has fallen significantly due to the lack of rain experienced through- had turned after low global prices data showed EU milk production caused by oversupply in the four key continuing to slide down 1.4% for out its dairy regions.

Until two months ago, milk pro- dairy regions – Australia, the US, the the month of February. Slower production is matching subdued duction for 2012-13 season was 6% EU and New Zealand.

“About 18 months ago, four product purchasing activity, ahead of last season.

However, Fonterra chairman regions had record production. It preventing a significant build-up of John Wilson said lack of rain has takes 1-2 years for international inventory.

World dairy prices have con-

US data for January shows milk production reached 7.8 billion litres – up only 0.5% at the same time last year which in all shows a flat US production figure.

Global imports of dairy products are showing growth in key markets also. Chinese dairy imports for 2012 were up 26% on 2011.

Smooth Chinese leadership transition and plans to significantly lift domestic consumption should support ongoing demand.

Younger Chinese consumers are driving cheese consumption growth with imports up 36% in 2012.

Demand for infant formula is still strong, there are more than one million internet searches for ‘milk powder/formula’ per day, backed by a 17% increase in infant formula imports in 2012.

Wolfgram said the whole milk powder (WMP) price has been the biggest contributor of the recent GDT rises – up 33.6% since the first auction of the year on January 2.

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Dairy News AUSTRALIA march 2013

4 // news

New price structure released Murray Goulburn will unveil its new

pricing structure for the forthcoming season to its suppliers in a series of meetings this month.

However, MG Shareholder Relations manager Robert Poole told this month’s UDV conference that loyalty payments would not be removed.

The review began last October and recommendations arising out of the review were considered by the board at the beginning of the year.

Changes to the milk payment system will be

implemented in time for the 2013/14 season.

All elements of the current milk payment system, not just the three current options, were to be examined as part of the review, including payments, quality, productivity, growth, pick up and volume charges.

Robert Poole told UDV conference delegates the work was the most comprehensive review of milk payments ever undertaken. He said 33% of farmers were opposed to the current payment system.

Poole said the review would provide transparent analysis of peak versus off-peak production and would balance the profit drivers of the different farm systems Gary Helou of suppliers.

“I think (the payment system) became too complex,” Poole said.

Poole said the complexity arose as Murray Goulburn received com-

petition as a co-op for the first time from the likes of Parmalat, Lion and daily pasturised milk companies after deregulation.

“As a result it got very messy out there and complex.

“We drew a line in the sand this year and said take a good look at that and address issues like complexity. We then went

to farmers about how to make it simpler.”

Western Victoria farmer Roma Britnell asked Poole whether public pressure could change the loyalty payment scheme.

“I said to farmers at a recent meeting, if I was the only one that took it off and no one else did I’d look pretty stupid wouldn’t I? “It’s a hard one, it’s a competitive world and used as a competitive tool.

“Can you change it? I’m very cognisant of ACCC issues, we can’t talk about

milk pricing between companies.”

Poole said that farmer advocacy can cause change. “People call me and push me on issues. It has an effect,” Poole said.

“You need the UDV and farmers in your ear to say this is getting out of whack, Robert. Talk to the board and the team about how to address certain issues.

“It’s about intelligent repetition. Nice clear messages, hammer away at directors and the management team until you get change.

“Intelligent repetition is how you get change.”

Poole said increased focus on the domestic market was not the answer to a fluctuating export market.

“Our domestic market is not a panacea. It is very exposed to world trade.

50,000 tonnes of cheese comes into Australia from NZ every year.”

Poole said Murray Goulburn was trying to perfect the balance of a diverse product mix and optimum factory utilisation to deliver greater milk prices.

Renewed world focus will reward farmers Murray Goulburn managing director Gary Helou says there is significant untapped potential for future dairy export growth to the Middle East and North Africa.

Exports of Victorian dairy products to the Middle East and North Africa (MENA) region were worth $285 million in 2011-12, but Australian dairy accounted for less than 10% of this crucial market.

MENA is the world’s second largest dairy import region and currently imports a combined 1.2 million tonnes of dairy product valued at $3.8 billion.

Victorian Agriculture Minister Peter Walsh officially opened Murray Goul-

burn’s new office in Dubai last month.

It is the first time any Australian company has started a local store run by two locals.

The office is a central plank in the co-op’s plan to build relationships with customers in the region and target their specific needs.

“Demand from MENA nations is forecast to grow significantly and the Australian dairy industry is extremely well positioned to play a key role in meeting that demand,” Helou said.

“Consumers appreciate Australia’s natural pasture-based farming systems and its exemplary food safety record.”

Helou addressed last month’s Dairy

Innovators Forum in Queensland via video link from Dubai.

He told the forum dairy demand from Asia was “insatiable”.

“You’ve heard it before but I’ll restate it because that’s the fundamental driver,” he said.

Helou said markets had turned after low global prices caused by oversupply in the four key dairy regions – Australia, the US, the EU and New Zealand.

“About 18 months ago, four regions had record production. It takes 1-2 years for international trade to get through stocks.

“The issues we are facing today is this big pipeline that had to work its

way through, as well as that we have an exceptionally high Australian currency.

“Those conditions come and go and you cannot rule that out happening in three or four years’ time.

“But the important thing is to look at the bigger picture. I know when you are involved in a farm situation it is hard to get out of the day-to-day issues.

“As a business person running a company like Murray Goulburn you have got to look at the bigger picture and set the path for the industry.”

Helou said the Australian dairy industry missed the boat to revamp its dairy industry like New Zealand did 10 years ago.

He said the New Zealand Government’s decision to force the formation of Fonterra and follow it up with free trade deals has paid handsome dividends.

But while New Zealand’s dairy industry flourished, the Australian industry has struggled through a lack of ambition, he said.

“In the last 10 years as a country, our milk production slipped from 11bL to 9bL. At the same time New Zealand lifted its production from 12bL to 19bL,” he said.

“Something happened in New Zealand but not here. I can only applaud what they did.”

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news // 5

Processors must take blame for milk woes Old-fashioned thinking by processors in the areas of marketing and international exports has hurt the Australian dairy industry, says Murray Goulburn managing director Gary Helou.

Helou told last month’s Dairy Innovators Forum that processors had failed to capture the imagination of domestic consumers through a lack of innovation, and had neglected building relationships with international customers to increase demand for Australian milk.

Helou said farmers must stop blaming the supermarkets for poor farmgate returns, saying processors must take the blame; they are guilty of failing to effectively market milk.

Farmers may shake their heads at

the fact water is dearer to purchase than milk but Helou said they should ask why that is.

“Just take a look at the level of innovation; water bottles are coming in all shapes, with handles and sprays,” Helou said.

“What have we done? When did you last see a sexy looking bottle of milk on the supermarket shelf? Let’s not blame Woolworths and Coles. It’s our fault.”

Helou told farmers the supermarket giants are important to the dairy industry and it’s wrong to continually bash them. “They are important to us and we must look after them; you can bash me and other processors.”

It’s up to processors to imagine a

better product to excite consumers to buy more milk, boosting returns to farmers. Murray Goulburn plans to introduce multipacks of long life milk, similar to slabs of Coke and liquor available at retailers.

According to Helou, Murray Goulburn, as the biggest processor in the country, is taking the lead in lifting the image of milk among consumers. But he warned the industry against focusing only on the domestic market and exporting surplus products.

The days of exporting surplus after meeting the demand from Coles and Woolworths are over, he says. “Today’s consumers in emerging markets don’t want surplus.”

He says Australian dairy processors have been too slow in overseas markets compared to major global players like FrieslandCampina and Arla who have established brands. Both FrieslandCampina and Arla have 20-30 staff working in Dubai, a hub in the growing Middle Eastern market. Murray Goulburn opened its Dubai office last week and has two staff there.

To meet the growing demand from emerging markets in Asia and Middle East, MG also needs to invest in new technology or risk being sidelined by the likes of Fonterra.

MG is spending A$200m to upgrade its manufacturing technology. “If we don’t do this, we might as well give the

game away,” says Helou.

“It’s a sad fact but many processors, including us, have not invested in world leading technologies.

“Australian dairy manufacturing is sub-scale. Our processors are 1/10th the size of our competitors.

“At Murray Goulburn, we are taking our equipment from last century to something 21st century.”

Helou said export was a bad word, signifying you export what’s not needed. He gave an example of the humble cheese slice. Australia continues to produce 21g cheese slices when the world wants 16g slices. “We should have dealt with this 20 years ago and put it out there.”

Innovative packaging excites consumers Innovative packaging has played an

integral part in the success of Western Australia’s Bannister Downs milk brand.

Bannister Downs Farm managing director Sue Daubney told the Dairy Innovators conference the company’s annual growth has come primarily

through word of mouth.

The Western Australian product also appealed to WA consumers.

Bannister Downs Farm has more than 1500 Holstein Friesian cows milked twice daily in a 90 stand rotary dairy. The family business based at Northcliffe has built up from processing 4000 litres a

week eight years ago to 85,000 litres now. They now purchase milk from a neighbour as well, paying 40c/litre from July to December and 60c/litre from January to June.

They built a milk processing facility on-farm where traditional processing techniques takes place.

The processing system, which was set up in 2005, starts with a separation procedure to ensure the correct percentage of fat in all milk. Only the cream is then homogenised to make sure all solids are dispersed evenly. In the final stage of processing the fresh milk is heattreated using a batch pasteurisation method.

The milk is heated to 65°C where it is held for 12 min-

utes prior to a fast cooling process down to 4°C that prevents any bacterial growth.

The milk is then piped from a chilled holding vat into a filling room where it leaves in a sealed pouch.

The decision to use Ecolean pouches was made on both marketing and environmental grounds. Daubney said some customers hate the pouch but love the WA milk, others love the pouch for its environmental benefits.

Bannister Downs is the only company in Australia using the pack (pictured), which was developed in Sweden.

The packaging caught the attention of Coles executives who then contacted Daubney. They

Sue and Matt Daubney of Bannister Downs Farm milk.

now deliver to all 83 Coles stores in WA. “Coles and Woolworths are the market,” Daubney said. “Rather than fight it, we work with them.

“Coles is innovative and we’ve developed a good relationship with them. We’ve never had to

pay for shelf space or instore packaging.”

Now, 15% of their sales go to Coles, 17% to independent retailers and 60% to cafes and restaurants.

The 1 litre packages are sold for a retail price of between $1.85 to $2.60, although the $2.60 price

tag riles her.

Daubney said they achieved a 5% growth in sales the week after Coles introduced their $1/litre milk campaign.

“That shows the customer base wants to know where their milk comes from.”

Dairy News AUSTRALIA march 2013

6 // news

Mass farmer protests fail to sway Government Protest meetings in Victoria and South Australia, further planned demonstrations and a direct meeting have all left Federal Agriculture Minister Joe Ludwig unmoved.

Farmer Power representatives met with Minister Ludwig last month at a meeting hosted by the Victorian Farmers Federation. The United Dairy Farmers of Victoria also attended.

The group asked for cash assistance to help farmers address cash flow problems.

However, Ludwig later said although he recognised the ongoing concern among dairy farmers about their tough financial situation, the Government would not apply any further measures.

Ludwig said he and his parliamentary secretary, Sid Sidebottom, had regular contact with representatives of the dairy industry.

“Australian agriculture is seeing a patchwork effect and while some areas are doing well, others are doing it tough,” Ludwig said.

“For some dairy farmers in Victoria, a range of factors are combining to place pressure on their businesses.

“Dairy Australia is aware of these pressures and is using levies and government funding to support producers through initiatives such as the Tactics for Tight Times workshops.

“The Transitional Farm Family Payment is available to producers to provide some financial assistance.”

The payment is paid at a fortnightly rate equivalent to the Newstart allowance.

It helps farm families experiencing financial difficulty to manage the impacts of climate variability and market fluctuations.

South Australian Dairy Association (SADA) president David Basham is due to appeal to both Opposition Agriculture Spokesman John Cobb and Federal Agriculture Minister Joe Ludwig for help in Canberra this month.

Farmer Power held meetings in Tongala, Warrnambool and Mt Gambier last month and each were well attended.

The Tongala meeting was dominated by presentations by guest speakers, including Barnaby Joyce, Dick Smith, and the local council. Bob Katter was invited up for a few minutes and implored the room to “vote for me”.

Farmers leapt at the chance at the end of the meeting to raise their concerns and these were primarily based on water and uncertainty surrounding irrigation allocations.

Opposition Agriculture spokesman John Cobb travelled to Warrnambool the following day and took questions for 90 minutes from the crowd of 150 farmers.

Although sympathetic, Cobb said there was no silver bullet for the industry.

Up to 200 people attended a meeting at Mt Gambier to discuss the current industry and listen to speakers, including Murray Goulburn representative Robert Poole, Dairy Australia’s Joanne Bills and Grain market analyst Ron Storey.

Farmers travelled from as far away as Blythe in South Australia’s mid-north to Cobden in Western Victoria and they asked questions right throughout the three hour meeting. There are about 290 dairy farms in South Australia.

South Australian Dairy Farmers association president David Basham told the crowd to register their inter-

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He said the process had been successful in the Fleurieu Peninsula in bringing an extra processor to the region and adding competition.

An immediate solution offered by Basham was welfare support for those dairy farmers struggling to put food on the table in the current low price, high cost environment.

Farmers have been called to support another protest movement at Murray Bridge later this month. The March for Milk is expected to attract at least 300 protestors.

Organisers want to highlight trade tariff imbalances between Australia and other nations, a lack of real competition between milk processors in the domestic market, and downward price pressures from major supermarkets.

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Dairy News AUSTRALIA march 2013

8 // news

Australian dairy industry sits ‘at the crossroads’ The Australian dairy industry could cash in on future international demand for world dairy stocks but its business model needs fundamental changes, according to a new report.

Findings from the Horizon 2020 project, funded by Dairy Australia and the Gardiner Foundation, were presented at last month’s Dairy Innovators Forum in a bid to encourage farmer feedback.

The aim of the report is to “raise the sights” above short-term preoccupations which it said has affected industry priorities in recent years. The project explored possible future scenarios for the Australian dairy industry in 2020, which would rely on a repositioning of the industry, establishing a proactive and positive culture, and creating nec-

essary farm business “fitness”.

Steve Spencer, director of consultancy firm Freshlogic which is a member of the Horizon 2020 Working Group, told the forum of farmers that Australian dairy industry sat at a crossroads.

“We haven’t grown as an industry over the past decade and have a diminished global standing and reputation,” he said.

“Poor seasons cut capacity, but the uncertainty has been worsened by our own capabilities and attitudes.”

Spencer said farmers have been faced with an increasingly complex set of management and technical issues on farm due to climate and market volatility.

The production sector has lost the ability to successfully manage and grow

dairy farm wealth over time through inevitable commodity cycles.

The report said rather than seeing opportunity in volatility to harvest the highs and manage the lows, a short-term preoccupation with risk has hampered the dairy sector’s ability to respond to a growing dairy market.

Spencer said the community will demand more accountability for farming practices and impacts in future and there is generally a negative perception that addressing these requirements would add cost and deliver few benefits.

“Our advocacy models are outdated and under-resourced to positively influence these agendas on terms that address industry needs and circumstances.”

The report found global trade has

grown 8% each year since 2006, while trade in 2011 and 2012 grew at 10%.

Since 2001, the value of milk has risen 3.5% per annum, but it has been volatile.

The demand for imports by developing markets will continue to increase much faster than the capacity of exporters to supply.

Spencer said the market wants Australian product as we are well regarded for product quality and integrity.

“The market respects choice and is looking for flexibility and agility.

Options to New Zealand, EU and US product will be sought by customers based on our credentials,” he said.

“We have a good story about our practices and credentials, but we’ve forgotten how to tell it and sell it.”

The report highlighted greater vol-

atility in food and dairy markets in the next decade so it was imperative that the Australian industry built volatility into their expectations and business practices.

The pressure for food industries to account for their sustainable practices is due to pressure from the wider community and is not going anywhere, Spencer said.

The working group concluded that ignorance and resistance will increase the chance that the dairy industry will end up with regulation designed by those that have little or no understanding of dairy businesses.

The key messages from the report are now being shared across the industry and future presentations will be held.

Grazed pasture remains central to success The most significant contributor to farm profit remains grazed pasture.

Specifically, the proportion of pasture directly grazed as a percentage of all feed, according to a new report based on extensive modelling of Victorian dairy farms.

Dairy Australia and consultancy group, XCheque, compiled a report based on modelling of data from the Victorian Department of Primary Industries’ Dairy Industry Farm Monitor Project, which covered 70 farms.

The findings were released at the United Dairyfarmers of Victoria conference this month.

The project was implemented three months ago

substantial investment in It also found that high to examine the changes land and water must maxoff-peak milk percentage in milk supply patterns imise pasture production did not always equate to during the past six years and particularly the perhigh plant utilisation; and and the effect this had on centage of grazed pasture; while off-peak milk perfarm profitability, cost of while farms with a high centage does drive milk production and risk. reliance on suppleIt found that the flattening of Equivalent profitability mentary feed must minimise capital milk curves has can be achieved on a and maximise milk definitely hapwide range of calving production from pened over the patterns and feeding that capital. past 5-6 years.

When asked The report systems. at the conference found the most where a farm’s cost of proincome, operating cost, significant contributor to duction (COP) should be capital investment and farm profit was the proto ensure it remains comportion of pasture directly capital return are not corpetitive in a global market, related with off-peak milk grazed as a percentage of XCheque’s Neil Lane said percentage. all feed.

Equivalent profitability low COP should not be Farms with a high proconfused with low cost. can be achieved on a wide portion of grazed pasture “Some of the lowest range of calving patterns had consistently lower COP systems we’ve seen and feeding systems, the operating costs and were have highest output. report said. generally more profitable Those farmers tend to However, farms with a and resilient.

make better timing decisions and get better output for inputs put in.”

Lane said he would be reluctant to place a number on it but said farmers had to establish what milk price their business can survive at, including debt servicing.

“You need to know your COP including debt serving. If I added those two up and were under $4.50kg milk solids (MS), I would think I would have a very resilient business. If it was over $5.20/$5.30kg MS, I’d be having a serious think about how to get that lower.”

Lane said world milk production grew significantly at about $5.50kg/ MS.

Extensive modelling shows the most significant contributor to farm profit remains directly-grazed pasture.

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Dairy NewS AUSTRALIA march 2013

news // 9

Flood relief fund opened Dairyfarmers’ Organisation has launched a flood relief fund to assist the State’s dairy farmers who have been battered by record breaking rains and flooding from ex Cyclone Oswald.

QDO President Brian Tessmann said the fund was a means of assisting the industry through an extreme crisis point, with an estimated 250 farmers – or about half the industry – in the major flood-affected regions in Queensland.

The flood has seen farm infrastructure destroyed, as well as crops, feed stores and even houses destroyed or damaged.

Farmers have had cattle swept away, others are running short of feed, and have had extreme diffi-

culty milking their cows – but they have been working round the clock to maintain the health and welfare of their herds.

“The fund is set up to directly support dairy farmers and 100% of donations will go to affected dairy farming families,” Tessmann said. “The industry is calling on all those who can afford to lend a hand to do so at this time of crisis.”

Tessmann said that the QDO had set up a similar fund after the 2010/2011 floods and Cyclone Yasi, and it had proven successful in assisting 435 dairy farming families.

“The dairy industry has faced a number of challenges in Queensland in recent years. This fund is a way for people to directly assist flood affected dairy farming families and help

Farmers have had cattle swept away, others are running short of feed, and have had extreme difficulty milking their cows. them keep on producing wholesome fresh milk every day of the year.”

To make a donation contact the QDO on

3236 2955 or visit www. dairypage.com.au The Queensland Farmers Federation said that further funding for

the State Government had worked hard since the flood occurred to present the case of the impact of the disaster and ensure adequate assistance was available for primary producers.

“The impact on communities and individual farms is severe and devastating, and it has been

clear from the outset that significant government assistance would be needed to help farmers back on their feet,” Galligan said.

Part of the funding will fund industry-specific Industry Recovery Officers, which will help guide farmers through the recovery.

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A decision by the Federal Government to tighten the

rules pertaining to 457 visas could make it even harder for Australian farmers to find employees, according to the National Farmers Federation.

NFF Workplace Relations Committee chairman, Charles Armstrong, said the Government’s decision could ultimately hurt Australian farmers.

“As it is, Australian farmers are already struggling to find employees and while many opportunities exist for Australian workers to fill job vacancies on Australian farms, the uptake of these opportunities is often low,” Armstrong said.

“As a result, farmers are forced to look to overseas workers to help fill the labour void.

“The 457 visas provide a potential solution, which is why the NFF has been calling for the extension of these visas to the agriculture sector.

“Unfortunately, what we are seeing is a tightening of the 457 visa program, adding further restrictions on the availability of labour for agriculture and potentially impacting on our sector’s ability to produce food and fibre.

“Given the purpose of 457 visas is to help Australian businesses source the skilled workers they need when they are unable to find suitable skilled labour domestically, we would like to see the visas extended to cover skills not already included – including those required for agriculture.”

The Government announced it would tighten “loopholes” in the scheme as part of its nine-month election campaign.

It said Australian workers were being discriminated against.

ANU demographer Professor Peter McDonald, who is a member of the federal government’s Ministerial Advisory Council on Skilled Migration, told ABC Radio on Wednesday that while he agreed with Labor’s recently announced crackdown to improve the integrity of 457s, he did not support its characterisation of the problem.

Professor McDonald said the rate of rorting in the 457 visa class was ‘’anybody’s guess’’, but he estimated that there were about 2% or 3% of employers who were ‘’behaving badly’’ by getting around the requirements of the system. ‘’I don’t approve of some the statements coming from the government side, which are way too general,’’ he said.

flood recovery announced late last month was a significant and positive step forward for the recovery effort from the Australia Day floods, which is now requiring a similar effort to rebuild farms as was the case two years ago.

QFF CEO Dan Galligan said that industry and

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Dairy News AUSTRALIA march 2013

10 // news

Drought cuts NZ forecast New Zealand milk

production has fallen significantly due to the lack of rain experienced throughout its dairy regions.

Until two months ago, milk production for 201213 season was 6% ahead of last season.

However, Fonterra

chairman John Wilson said lack of rain has affected milk production, now expected to be only 1% higher than the 2011-12 record season.

Milk production was growing in Southland and Canterbury where irrigation was common, he said.

But production was down

“When you put this effect on dairy together with the way meat and fibre farmers have rapidly destocked over summer, New Zealand’s two leading exports are under the gun.” in the North Island.

Wilson said farmers were facing challenging

conditions from the prolonged dry weather. Not many farmers were think-

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ing about increasing production or the share price; they were directing all

efforts to getting through the big dry.

“We are aware of the challenging conditions in some parts of the country,” he said.

Several of the country’s regions have this month been declared officially in drought.

DairyNZ predicts milk production will be down 15% in the North Island for February accounting for $64 million less milk revenue to North Island farmers for the month – on top of $50 million less through lower milk prices.

Minister for Primary Industry, Nathan Guy, said the drought declarations were “recognition that we are now beyond what is a normal dry summer, and into an extreme climatic event”.

Head of the Waikato drought committee, Peter Buckley, a farmer himself, said feedback from farmers was that they were getting desperate. The Waikato had been well set up for feed but that would run out on average this month. Some farmers have dried off and were looking for support.

Buckley said farmers were worried about price spikes for hay, silage and other feed. He had been told orders of palm kernel for March had not come in and there would not be much palm kernel until April.

Many farmers were caught out by how quickly the drought had come on, Buckley said. Good rain had fallen in December and some in January

but air and soil temperatures were warmer. Drains on his farm were dry that had never been dry before and others were reporting the same about their own ponds. “Water is becoming crucial in areas that rely on ponds,” he said.

Federated Farmers president Bruce Wills said dairy production was not just falling in some key areas but starting to crash.

“When you put this effect on dairy together with the way meat and fibre farmers have rapidly destocked over summer, New Zealand’s two leading exports are under the gun,” he said.

“It needs to be remembered that the North Island is now where most of New Zealand’s sheep and beef cattle are located.”

He said very dry areas included North Island’s East Coast, Waikato, Bay of Plenty and the top of the South Island. Taranaki, West Coast and even Southland were also of concern. Horticulture was also starting to find things tough.

Fonterra Shareholders Council chairman Ian Brown said given the negative effect the weather has had on production over the past few months the council was comfortable with the announced forecast payout.

The co-op has not changed its 2012-13 forecast payout range of $5.90 - $6.00/kgMS before retentions for a fully shared-up farmer.

Central North Island farmer Kelvin Thomas was starting to feel the effects of the dry weather last week. “It’s the worst dry spell I’ve ever had in 25 years.” Thomas farms 176ha and is currently milking 500 cows – down from a peak of 550.

He has been once-a-day milking for the last 10 days, when only two weeks prior he was milking every 16 hours. “The last few weeks there has been a dramatic change,” he said.

“Eight weeks ago we were 35% above last season on a daily basis. Currently we are 5% behind.”

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Dairy News AUSTRALIA march 2013

12 // world

Irish gear up for CAP reform PETER BURKE

THE IRISH dairy industry is preparing for the lifting of restrictions by the European Union (EU) that limit the amount of milk farmers throughout Europe can produce. The quota under the common

agricultural policy (CAP) comes off in 2015.

An Irish agricultural scientist from University College, Dublin – Tommy Boland, in New Zealand visiting colleagues and family, says Irish farmers in particular are well placed to take advantage of the new open market.

As far back as three years ago, farmers were holding on to heifers and generally improving the quality of their herds, Boland says.

But some farmers have increased production too early and under EU rules have to pay a monetary penalty for this.

“That penalty clause

has put something of a handbrake on that development, but farmers are putting plans in place for land expansion and even to capture more of the potential that is within their land. I think there are a lot of gains to be made within Ireland to increase the dairy output on the

current land base without displacing other industries and bringing new land into production.”

Boland says there is a lot of variation in the pasture production potential across Ireland, some parts being very good for dairy production and others very bad. With heavy rain-

L A I C SPE T R O REP

The Irish dairy industry is poised to lift milk production as EU milk quotas are lifted in 2015.

fall some of the ‘heavy’ land pugs easily and doesn’t stand up to grazing by dairy cows, he says.

“But in the south west of the country around Kerry and Cork they have excellent dairy production and grass growing conditions. They can carry the cows out on grass for most of the year. As you move north and east towards Dublin the growing season becomes shorter. But within the country there are pockets or micro climates which will allow for very good dairy production.”

Boland says there is much speculation about how much Ireland can increase its dairy production. The Government wants it to increase production by 50% by 2020. Boland says many Irish look at the gains made in New Zealand as the benchmark

for their production and points to the similarities in their grass based production systems. The Irish note the huge growth of the New Zealand industry, while Irish production has stayed static, due to some degree to EU production limits.

But a significant problem for Irish farmers is the scale of their operations and the difficulty in merging farms and creating larger dairy platforms.

“Land mobility (or amalgamation) is much less freely available in Ireland than it would be in New Zealand. There is a strong tie to the family farm and land and it’s not common to mobilise that land. The farms are usually a one man operation supported by the spouse and the family. The scale is small and appetite for amalgamation is also small.”

the Cap and effect

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THE CAP is the control mechanism used by the EU to maintain a balance of production in the EU. The quota system was introduced to prevent stockpiles of subsidised food accumulating in Europe. In the 1970s and 1980s ‘butter mountains’ and ‘wine lakes’ were a feature of the EU as production soared and ultimately farmers were subsidised to reduce production.

Ireland exports 85% of its dairy production and has some strong international brands such as Kerrygold. While Ireland and New Zealand are both exporters, today they don’t compete as fiercely as in the 1970s and 1980s.

Major changes have taken place in the Irish dairy industry. For example in 1975, the average herd size was 9.6 cows. Today it is 60 and is predicted to rise to 80 by 2020. The overall number of cows in Ireland has dropped from 1.3 million in 1975 to 1.1 million today, but Teagasc, the Irish research organization, is predicting cow numbers will come back to 1.3 million by 2020.

The major difference is that the Irish are improving the genetics of their cows and Teagasc forecasts milk production will rise from the present 5.45 million litres to 7.48 million by 2020.

The lifting of the milk quota will also see production rise in the Netherlands and Italy. But it’s widely accepted that Ireland, because of it lower cost production systems, has the greatest potential. Most pundits think the government target of a 50% increase is optimistic.

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Dairy News AUSTRALIA march 2013

14 // OPINION Ruminating

EDITORIAL

One clear voice needed

milking it...

All smiles?

Dairy Farmers Stadium, home of the North Queensland Cowboys for 14 years, is no more.

The naming rights to the home of the National Rugby League team have been sold to another product good for strong teeth – the 1300SMILES dental group.

It’s a sad day for northern farmers and the Dairy Farmers milk brand, both of which gained national recognition every time the Cowboys played host.

Parmalat will save at least $200,000 a year, which is what the new group has paid for the naming rights. Why not give them some free advice on what they could do with that money. Their freecall number is 1800 676 961.

News to Scott

Former Essendon footy club premiership player Scott Lucas was special guest at the recent United Dairyfarmers of Victoria conference dinner held at the MCG. Lucas grew up on a dairy farm and found himself fully utilised in the shed when visiting his parents in January after his father was called out to fight fires.

Essendon have been putting out fires of their own recently following an investigation into the club’s unusual methods to improve performance.

It prompted one dinner quest to ask: “Essendon have been in the news a bit recently. You were there for 15 years. Which Australian actor would you like to see playing you in Underbelly 8?”

Look ma, no hands

Again at the UDV conference, speaker Adam Jenkins, of South Purrumbete in western Victoria, was forced to stop during his address to decipher his hand writing.

He apologised, saying he wrote it on the way to the conference while driving down the Geelong road.

“I trust you weren’t driving,” moderator Kerry Callow inquired.

“It was fine,” he responded. “Hands free.”

Cheese wipes out smiles

Artisan cheese and dairy producers are up in arms after a global supermarket chain wiped the floor with them at the annual Sydney Royal dairy awards.

Aldi, based in Germany but with stores in Europe, US, Britain and Australia, picked up 49 medals, including eight gold, and was named the most successful dairy produce exhibitor at the Royal Agricultural Society of NSW 2013 Cheese and Dairy Produce Show awards.

The results have prompted local crafters of fine cheese, butter and yoghurt to call for an overhaul of the judging system that would pit generic brands against one another only, while boutique producers would compete in separate categories.

Pepe Saya, who supplies butter to Neil Perry’s Rockpool, Aria restaurant and Qantas first class, said while he fully supported the work of the Agricultural Society to grow the dairy industry, he personally stopped entering the awards after Coles started entering its generic brands.

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Dairy News Australia is published by RNG Publishing Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written

Advertising Manager Max Hyde max@hydemedia.com.au

A lot of passion has been displayed at Farmer Power meetings across the country.

It needs to be harnessed for maximum effect. It hasn’t been.

Farmers have rallied at meetings in Victoria and South Australia. On some occasions they’ve listened to the likes of Barnaby Joyce, Dick Smith and other politicians.

On others, the microphone has been thrown open for farmers to get something off their chest. The opening comment at Warrnambool to Federal Agriculture spokesman John Cobb was a lesson on deregulation.

For all the passion displayed, it’s not clear what’s trying to be achieved. Farmers that attend these meetings want help, that’s clear, but short-term or long-term help? Or both? What exactly do they want? And from who?

Steve Jones, who has had a 30-year career in the oil and gas industry, gave the recent Dairy Innovators Forum an example of how to get what you want.

When the Federal Government announced the mining tax, the mining industry sent in the chief executive officers of the three major mining companies operating in the country.

Jones painted the picture.

“Three CEOs and one treasurer behind closed doors. It would have been brutal for Mr Swan. They would have said: You need a deal if you want to win the election, here’s the deal, sign it.”

All four emerged smiling – the three CEOs for good reason.

They got the deal they wanted, leaving the Government to reap $126 million from the tax instead of the projected $2 billion.

In effective negotiations, according to Jones, you have to work out what you need, who your target is, and what frightens them, before negotiating an outcome beneficial to both parties. You also send in CEOs, not lobby groups.

The fragmentation of the industry is not helping farmers.

If the opportunity arose to meet with Prime Minister Gillard, who would be best placed to represent the industry?

Would it be ADF president Noel Campbell? The president of any of the State Farming Groups (and in Victoria’s case, the Victorian Farmers Federation president or the United Dairyfarmers of Victoria president)? Murray Goulburn managing director Gary Helou? Farmer Power spokesman Chris Gleeson?

The industry needs to speak with one voice, and that voice has to be clear. The message that has been broadcast to urban consumers this year is that the industry is stuffed.

Is that really the only message that farmers want to send?

Editor Stephen Cooke 03.9478 9779 or 0427.124 437 editor@dairynewsaustralia.com.au Publisher Brian Hight 0408.558 938

Managing Editor Adam Fricker Production Dave Ferguson Becky Williams Published by RNG Publishing Ltd Printed by PMP Print

permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of RNG Publishing Limited.

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Dairy NewS AUSTRALIA march 2013

opinion // 15

The best dairy farmers to pull on the boots Recently, I attended a gala function in the Jim Stynes Room at the MCG at which the Blokes Who Grew Up On Dairy Farms Team of the Century was named. It was part of The United Dairy Farmers of Victoria Presidents’ Dinner held in conjunction with the 2013 Annual Meeting and Conference held over a couple of hot days in early March.

I had been invited to be part of the evening

by UDV manager Vin Delahunty. Vin and I met in typical Australian bush fashion – at the Murtoa Races. I had once been a part-owner of a Murtoa maiden winner and have since thought of the place as something of a spiritual home. The racing game will do that to you.

In the Wimmera dairy cattle have cameline humps. Yet Vin being Vin has been able to talk himself into a plum role in the dairy industry.

But I digress.

I enjoy speaking at dinners especially, given that I grew up in the country of parents of rural sensibilities, when they involve good country folk. I like talking about the weather, the flow of rivers, the type

grew up on a dairy farm at Camperdown and last milked the cows in January this year when his family was staying there and his father was called out to fight a fire.

Of course, in naming the team on the basis of

opinion john harms

of country people are from, footy and cricket grounds, and the matches played on them.

Given the dinner was going to be at the MCG and that Scott Lucas, a terrific player at Essendon for over a decade, was going to be the guest of honour, I thought I should go in search of those VFL and AFL players who had grown up on dairy farms.

I called for nominations at the sportswriting site www. footyalmanac.com.au, and received plenty.

Certainly more than enough to select a team, which I did. And it soon became obvious that this was indeed the Blokes Who Grew Up On Dairy Farms Team Of The Century.

So I named it at the dinner before interviewing Scott who was named captain. Scott

Backs: Half-backs: Centre: Half-forwards: Full forwards: Followers: Interchange:

such thin methodology, there were always going to be good players left out, which I found out from some very nice hecklers around the room.

So below is the provisional team:

No doubt a few dairy farm champions have been left out. It’s a pretty handy team already.

We can name the definitive team next year.

It will give me an excuse to come back.

• John Harms is co-editor

of The Footy Almanac 2012 - a game by game account of every AFL match of the season written by over 100 writers.

It can be purchased at www.footyalmanac. com.au

Francis Bourke (R) Jeff Fehring (G/St.K) Stephen Theodore (St.K) John Devine (G) Peter Knights (H) Gary Farrant (NM) Brendan Edwards (H) Paul Couch (G) Neville Bruns (G) Doug Farrant (NM) Scott Lucas (E) Gary Rohan (Syd) Adrian Gleeson (Car) Josh Fraser (Coll) Ronny Wearmouth (Coll) Darren Flanigan (G) Anthony Stevens (NM) Garry Wilson (Fitz) Josh Newton (M), Ben McEvoy (St.K), Craig Cleave (G), Smirky Dwyer (St.K)

Many dairy farmers have graced the MCG - the best paddock in the country.

Food industry hardest hit by carbon tax The evidence is in - the carbon tax is hitting Australian industry hard; and it’s hitting the food manufacturing industry the hardest of all. When the food industry hurts, farmers bleed.

The Australian Industry Group (Ai) has released an analysis of 485 businesses that it surveyed over the first six months of the carbon tax, which was introduced on July 1, 2012.

It found that 90% of Australian food manufacturers experienced an immediate cost increase as a result of the carbon tax, but only 11% had been able to pass on this cost increase to consumers.

Why? Because they knew that consumers would resist in the face of cheap imports, imports from countries that do not have a carbon tax regime or many of the other regulatory burdens imposed on Australian businesses.

Those manufacturers are, therefore, having to absorb the extra costs.

capital investments to Across the spechelp reduce their expotrum of industries, Ai sure to carbon pricing; Group calculated that but those are nowhere the tax has increased near as generous or the price of energy by comprehensive as the an average of 14.5%. programs available to That is far greater those industries most than had been anticresponsible for emisipated. Worse still, sions. this increase comes at opinion So the people who a time when the Ausjan davis process the food that tralian dollar is doing we produce qualify for nothing for exports and little trade-exposed industry assiswhen unit labour costs are growing.

The Australian Bureau of Statistics’ tance while facing resistance from the producer price index data on electric- major retailers (and their customers) ity prices show them increasing by to price rises. Therefore, that means 6.7% in the September quarter of 2012 their margins are being squeezed.

If they can’t charge more for their after a 17.2% increase for the previous 12 months. That is a massive hike for products, there is one inevitable conanyone to bear, in anyone’s language. clusion: they will argue that they must Food processors do have access to reduce their costs and, presumably, the so-called competitive grants under prices they pay to those that produce the Clean Technology Program for the food for them to process.

Once again, farmers are the bunnies in the game: they’re being squeezed from both ends. We all know they are price takers, not price setters; so they simply have to grin and bear it when customers put the squeeze on the prices they are paid.

On top of that, they have no way of passing on the huge cost increases they face every day – including the carbon tax, for which (unlike most businesses) they received no compensation at all.

The carbon price in Australia is fixed at $23/tonne until July 2015, at which point the price will revert to market rates. In comparison, as I write this, the European price is €5 ($6.44) after having dropped recently to €2.8 ($3.61).

As the Ai Group comments, “the fixed carbon prices that apply until July 2015 are well above current and projected international prices and are

a major flaw in the current approach”.

Yes. “This considerable additional burden on Australian business could be substantially reduced through early linkage to much lower international prices without compromising Australia’s 2020 greenhouse gas targets.”

Yes. It must be clear to the proverbial visually-challenged Frederick that there is something wrong here. Put aside any debate on the merits of the tax itself, it is clear the current pricing policy is unsustainable.

It’s an election year. The tax is going to be at the top of the political agenda. Any government seeking to be re-elected would now have a long hard look at this policy that is hurting many Australians and making Australian businesses uncompetitive.

• Jan Davis is the CEO of the Tasmanian Farmers and Graziers Association.

Dairy News AUSTRALIA march 2013

16 // agribusiness

Tensions over soaring Fonterra share price sudesh kissun

FONTERRA IS confident a raft of measures announced last week will ease farmer tensions over the soaring share price.

The co-op has been under fire from some shareholders after its share price rose from a launch price of $5.50/ share in November to $7.25/share. Young farmers planning to enter the industry and existing farmers wanting to lift their milk supply say they will struggle to stump up cash to buy additional shares and meet their share standard requirements.

At last month’s Federated Farmers Dairy council meeting in Northland, delegates said some farmers were switching supply from Fonterra to other

The co-op announced a bonus issue of one additional share or unit for every 40 held in April this year. It will also offer flexible contracts to give new and growing farmers more time and options to fully back their milk production with Fonterra shares.

Wilson points out that under recent DIRA changes, independent processors can no longer get 250 million litres of milk from the co-op. So they will look elsewhere, he says. “There will be lot of competition at the farmgate,” he says.

Fonterra Shareholders Council chairman Ian Brown says the new measures will go “quite a long way” in addressing concerns about the share price.

Brown is happy with the way TAF (trading among farmers) is unfold-

processors. Delegates described the high share price as untenable.

Fonterra suppliers must own one share for every kgMS supplied to the co-op. Fonterra chairman John Wilson says this remains the co-op’s guiding principle.

Wilson says he has empathy with farmers planning to grow milk supply. But he points out the share price is set by the market.

He agrees for Fonterra to grow, it needs farmers to grow. But the share price is creating problems for young farmers; so is high price for cows and land, he says.

“Milk is the lifeblood of our cooperative and the five-point plan we have announced offers farmers more flexibility to buy shares to match production,” he said.

Fonterra chairman John Wilson is under fire for the high share price.

ing. But he’s aware of concerns about the high share price and risk of cessations. He points out the TAF market is one-sided as only investors are trading units.

Brown says things

should improve when farmers start trading shares later this year. “We need share trading among farmers to kick in; it will happen, we need to give it time,” he said.

Brown believes the new

contract options will bring some relief for new and existing suppliers. “The proposals go a long way to ensuring enduring farmer ownership and control of Fonterra.

The revised contracts

will enable farmers to come into the co-op without the issue of share price acting as a hindrance and ease the path to farmers becoming fully share-backed suppliers.”

Mixed response to plan from farmers andrew swallow

FONTERRA’S CAPITAL giveaway has

left some shareholders furious and came too late to stop others signing with competitors for next season.

Claims by shareholders council chair Ian Brown that the five-point plan would be “welcomed by

n ralia Aust d and ne desig ctured. fa manu

ng Introduci

the

“It’s only 2.5% [of share capital]: I don’t think it will have a big impact on anything, including the share price.”

With shares at over $7 the cost of increasing supply “would be a bit of a turnoff for some,” while others might be tempted to cash in and supply competitors, as would new conversions, he adds.

all Fonterra shareholder farmers,” further inflamed feelings.

However others spoken to were ambivalent about the move, or welcomed the attempt to ease the constraint on supply growth.

North Canterbury shareholder, Peter Schouten, reckons it’s “a nil sum”.

TAF critic Leonie Guiney says farmers need to think through the longterm implications of the latest move, especially the parallel issue of units to offshore investors such CBA bank which holds 7% of the unit fund.

“If we can’t stop our board doing regular share issues, it is simply a death by a thousand cuts of our co-operative.”

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She questions whether shareholders voting for TAF understood it would lead to unit traders effectively setting the co-operative share price – “even though our board said it wouldn’t” – and the implications of a high share price on milk supply growth.

“Fonterra’s intrinsic value is dependent on having access to most of the milk, and sensible allocation of our capital.

This board is destroying farmer capital and claiming the opposite.”

fonterra’s 5-point plan ■■

A bonus issue of one additional share or unit for every 40 held on April 12, 2013.

■■

A further supply offer enabling Fonterra shareholders to sell the economic rights to some of their shares into the Fonterra Shareholders’ Fund.

■■

A dividend reinvestment plan enabling shareholders and unit holders to elect to receive dividends in the form of shares or units.

■■

Flexible contracts to give new and growing farmers more time and options to fully back their milk production with Fonterra shares.

■■

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agribusiness // 17

Promising signs for opening farmgate pricesstron Export demand remains

Dairy NewS aUSTraLia

agribusiness

WE ARE rapidly approaching the final cents/litre in March (AUD With season 2011/12 a few quarter of a season manyonly Australian incremental change in milk production (year-on-year) Euro cents/litre (AUD 36c weeks from ending, attention is now dairy farmers will want to forget.

The combination of a droughtProfit margins are under pr focused on 2012/13 milk prices as farminduced grain price spike and lower US, and in NZ Fonterra has ers consider strategies for the coming milkdomestically-focused prices has savaged marthe final payout for the 20 year.farmgate In some global impact gins, while Mother Nature has done John Droppert has been cut from NZ$6.75regions, renegotiated contracts incorlittle to extend a helping hand. gLobaL impacT to NZ$6.45-$6.55/kg MS porating lower prices and reduced ‘tier meeting DropperT operating expenses On a more positive note, dairy com- able for JohN $5.04). one’modity accessprices are have undermining farmer trended upwards in (including raw milk purchases) and Effectively, global dairy confidence and on supply stability.

For retaining profits. recent weeks the back of a broader rebalancing. Lower price in private contracts and promany farmers in export-oriented To quantify thelabel impact, Dairy Ausslowdown in supply, as climatic chal- Shifts slow production growth an cessor rationalisation seen regions, a lower price outlook relative to tralia modelling suggests have that at cur-milk lenges combine with difficult producrent commodity prices, a reduction of tion economics in key global exporting demand, and as this occurs the current season not only adds to the companies adjust their intake requirein the value of Australian regions.of doing business, but seems US$0.05 mately see a price recovery ments and pricing toone meet the changchallenges would mean a potential A$0.32/retail That’s athe promising for 2013/14 to watch on the global scen ing demands of a highly pressured to contradict positivesign medium term dollar opening prices, however for the kg MS or 2.4c/L increase in farmgate rate at which milk product outlook of Asia-driven dairy demand marketplace. Lower contract prices and remainder of 2012/13 – with most of pricing for a ‘typical’ export manufacslows in response to lowe a lack of alternative supply opportunigrowth. this season’s manufactured produc- turer. Take the exchange rate down impact of the current finan those in south-east Asia and the Middle in aand market Dairy Australia’s US0.20 thewith flows. 2012 milk production in the US tion already sold indicative outlook ties present challenges Despite is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, for southern farm gate milk prices – limited manufacturing pricecapacity. differenand prices locked “Dairy commodity domes- April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, a published recent Dairy 2012: Sit- these challenges, the tialunderlying is more like in – a in keythe driver prices have trended $1.50/kg MS or of final farmgate data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. uation and Outlook report, is for an tic market is stable, with steady per-capupwards in recent 11c/L. Short term returns will be the Demand for exported opening price range of $4.05-$4.40/kg ita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced changes would exchange weeks on the back of ucts remains a positive an population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market.

MS and a full rate yearataverage price range naturally be fil- international equivalents and sover- relatively stronger currency. The chart which contracted tinue toremain grow divided with the mid This situation has seen theCurrency scales analysts tainty beyond the current adjustments. production is widely expected to finish between $4.50 and $4.90/kg MS. Theslowdown a broader tered by a variety eign wealth funds to invest in as econ- clearly shows that the Kiwis (whose over the path the AUD is likely to take commodity prices large emerging markets su tip in favour of buyers in dairy marthis season up 10% on last year a huge In the seasons following the 2008 report considers the wider market picof other factors omies such as the US, Japan and Europe currency has also seen significant for the remainder of this season, with in US dollars are in supply.” with changes in diet and wit kets, with commodity prices retreatmarket influence given 95% of NZ milk financial crisis and subsequent comtureremitted and summarises the many factors – not least of all experience recession or a slow and inflows from overseas central banks) a Bloomberg survey of 46 financial to Ausurbanisation - and also in ing steadily over disadvanrecent months.

Butter producing exported.

Argentina is also enjoymodity price exchange recovery, at play; the key theme of theincurrent sit- each institutions an AUD range are at a similar competitive shakyisrecovery.

Currency devaluation processor’s rate farmers hedging in tralian-based exporters Australian global population prices are downand some 30% of from their with ingbysolid growth, a sigexport-oriented regions have seenissolid uation being that of re-balancing in the position, US$0.90-1.10

by July.

Whilst this is grow whilst the Europeans Argenefforts someproduction countries such as thebuttage, but suffice to say the effect dollars. domestic market a broad range,the a growing number of is sup tineans –2011 withpeaks, economic problems whilst powder prices have US and Japan are weakening ownprevents nificant supply gap intheir Brazil global supply growth (see chart) - with International dairy supply chain. dairy trade is car- significant. analysts favour a depreciation of the aplenty – are relatively well placed to currencies relative to others – includThe AUD has been kept high relaried out in US dollars – as is the case In regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and AUD overin 2013,capita based on expectations Whil sell USD priced ing the to the USD for much of the past for many commodities.

As farmers anybody tive consumption. have commodities. subsequently been reduced ingAUD. South America. ern Hemisphere amongst those expandproducing drinking milk, many of a strengthening US recovery, lower The advantages of a relatively Whilst the above factors are causdecade by the mining boom, as elevated involved in an export industry is well a challe Despite wider economic uncer- most exporting regions. The average market is currently face a re-balancing market in the form ing output as their margins increased. aware, the US dollar (USD) value of mineral commodity prices and strong ing pain for Australian exporters, our stable economy and strong currency iron ore prices and further interest rate of renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indic the Australian dollar (AUD) is very high purchasing by China and other major NZ counterparts face a similar prob- should not be downplayed however. A cuts by the RBA. will ultimately return 32 Euro toance and in reduced access to ‘tier one’ supply. ditions have further enhanced milk as importing countries like China and for example, dropped 12% fromNeedless say, such an outcome historical terms, having spent most trading partners drive demand for Aus- lem. Figure 1 plots an index of the USD stable economy means credit is more of the past two years above parity. A tralian currency. More recently, despite against the currencies of other four freely available and domestic demand could provide a welcome boost to higher AUD means exporters must pay falls in commodity prices and interest biggest dairy exporters, with the index remains strong, while a strong currency incomes and a helpful springboard to reduces pricing pressures on imported season 2013/14. more of their USD sales earnings to rates, the AUD remains at high levels based at January 2010.

Higher values indicate a relatively inputs such as fertiliser, machinery and • John Droppert is industry analyst with purchase Australian currency to bring due to its status as a ‘safe haven’ curDairy Australia. back to Australia, leaving less avail- rency – a low risk asset for the RBA’s weaker currency, while lower values a milking plant.

Malaysia FTA benefits dairy Freedom WCB profits halved

ASEAN-Australia-New rice and wine exporters to Zealand FTA (AANZFTA).

Malaysia are the biggest Cheese“Protectionist Warrnambool and Butter thissentimonth ment overprofit agricultural winners in a free trade announced a half year net operating after tax of $15.3 million, $15.4 million is rifecompared and grow-with agreement (FTA)a reduction signed of goods the same period last year. ing across the globe, so between the two counAfter elimination of half inventory valuation in year this context it is pleastries last month. adjustments, which the company said would have no ing Australia has managed The deal, signed after impact on full year earnings, underlying operating profit to forge an agreement seven years of negotiaafter tax was $10.7 million, in line with the recent market with Malaysia that has tions, allows a liberalised update. dealt with some licensing arrangement Results for the first half of the FY2013 weresensiadversely tive agricultural issues for Australian milk competition impacted byliquid heightened amongst processors not effectively covered by exporters and allows sourcing raw milk in the local market, resulting in a milk price to revenue ratio of 70.4% versus 63.0% for the preAANZFTA,” says Fraser. access for higher value corresponding period. “While under the retailvious products.

“As indicated guidance, first half AANZFTA agreement It guarantees Aus-in our November FY2013 earnings have been impacted by subdued internamost of Australian agritralian wine exporters tional market prices, a strong Australian dollar and higher culture’s key interests the best tariff treatment than normal raw milk costs,” chairman Frank Davis said. had tariffs bound at zero, Malaysia gives “The fullany yearcounFY2013 outlook remains difficult.

There dairy and rice are twopricsectry. It also allows open has been some improvement in international market tors where incremental access from dollar ing,arrangements however the Australian has remained relatively offsetting market access improve2023high for largely Australian rice price gains.

“In addition, ongoing competition the negotiraw milk ments haveinbeen with all tariffs eliminated market is likely to keep upward pressure on farm gate ated under the Malaysian by 2026. prices paid to milk suppliers.”

The National Farmers’ FTA. “This trade deal was Federation says the trade austraLian DairY,

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Dairy News AUSTRALIA march 2013

18 // breeding management

Cow calving condition boosts bottom line KEEPING A close eye

on cow condition has paid off for one Waikato, NZ, farmer who says it helped him get more cows incalf quicker and drop his empty rate.

Dan Brice is a 50/50 sharemilker with his wife Michelle, milking 210 cows on 59ha near Otorohanga.

“For me it’s about getting the most out of my cows, and for that they need to be in optimum condition all year around; and if they’re not we do something about it, whether it’s feed more or dry off,” Brice said.

Over the last year, he has worked with farm advisors to monitor cow condition after they calculated the value of having the herd calving in good condition to be worth about $37,000 to the business, with more days in milk, more AB calves and fewer empties.

“We worked hard to ensure they calved in good condition last year, because no matter how much you feed them their condition will drop after calving so then it’s about managing that loss so they still enter mating in good

New Zealand farmer Dan Brice calculated having the herd calving in good condition would add $37,000 to his bottom line.

condition.

“With more weight on they will cycle better and have more chance of holding the pregnancy and that will ultimately deliver good milk returns too.

“Last year we lifted our submission rate to 93%, and we couldn’t have done that if the cows weren’t in such good condition.”

But it wasn’t easy and it cost them a bit extra in feed but Brice said seeing the latest pregnancy diagnosis (PD) results makes the hard work worth it – with an 82% six-week in-calf rate and only 8%

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empty after 11 weeks of mating last year.

Despite the recent dry weather in New Zealand, he’s pretty excited about the season ahead.

“We’re stoked about that because the higher our six-week in-calf rate, the more cows we have incalf early so that means more days in milk at the start of the season and before Christmas.

“It looks like this year

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running so the farm is making money again.

“It also means I’ll get good quality young stock born early, so I can rear as many as possible to grow my herd and I can choose to sell some of the bottom ends. They’re still fully recorded AB calves so someone will want them.”

Brice says the days in milk before Christmas will be especially important this year after the summer

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we’ll have about 80% of the herd calved in six weeks which means we’ll be busy but it’s better that way, because we’ll be through the bulk of it before we get tired, and now we can plan to have the systems in place to manage it.

“It’s only small numbers compared to big farms, maybe 15 cows a day, but it means we’ll have production up-and-

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they’ve had and having to dry-off earlier than planned. He had hoped to milk through to the end of April but says the season and the condition of his cows will ultimately determine that decision, with a drought management plan in place.

“They need to be in good condition for calving, and milking them too long now will impact on that so I’ll keep reviewing how fat they are and how much feed we have, to decide how much longer we milk.

“I don’t want them losing more weight now, when I’m only going to get a bit more milk out of them anyway and I know it’s gonna cost us much more in the long run.

“With the cows calving in such a condensed way I will be able to maximise production before Christmas; that’s when you’re guaranteed pasture growth and when they are giving you the most milk.

“So although I will probably be finishing earlier this season, I know that with these results we are set to have a great start to the next one.”

Dairy NewS AUSTRALIA march 2013

breeding management  // 19

Second-cross Reds maintain hybrid vigour A crossbreeding program undertaken by Nowra, NSW, dairy farmers Ron and Brenda Graham has seen improvement in both milk solids production and fertility.

The Grahams are expanding their herd of Aussie Reds (Australian Red Dairy Breed or ARDB). The couple milked 140 Aussie Red cows in the early 2000s.

However, when both their sons returned to the family farm in 2004, they were unable to purchase any Aussie Reds at the time, so increased their numbers by purchasing 50 registered and 100 unregistered Holstein cows from three local herd dispersals.

The larger cows proved a challenge for the Grahams and their existing infrastructure. Even though the Holstein cows on average produced more milk than the red cows, the red

Who:

Ron and Brenda Graham Where:

Nowra What:

Cross breeding

cows out produced the Holsteins in total solids due to their higher components.

They took the chance to sell their remaining pure Holsteins when an opportunity arrived to purchase 100 Aussie Red heifers in 2008.

The Grahams have been pleased with the performance of their Holstein-Aussie Red cows.

Project to genotype 30,000 more cows The Australian research organisation Dairy

Futures CRC and the international cattle improvement organisation CRV have signed a three-year contract for a joint research project for accelerated dairy cattle genomics.

The collaboration aims to increase the reliability of genomic breeding values by at least 10% by 2015.

The collaboration involves the sharing of the New Zealand and Australian Holstein and Jersey reference populations that both CRV and Dairy Futures CRC are using.

On top of that, the project aims to genotype a further 30,000 cows from Australia and New Zealand.

This joint enlargement of the reference population will improve reliability of genomic breeding values for multiple traits and for each country or production system.

New technologies will be developed in order to obtain and use full DNA sequence information as effectively and efficiently as possible in the estimation of genomic breeding values. The continual addition of genomic information and high quality herd recording data is vital to ensure the industry sustains improvements from genomic selection into the future.

The new project will develop an advanced low-cost genomic test for cows, which will make it possible to screen commercial cows and add their information to the reference population.

However, they had bred some Holstein-Aussie Red daughters during this time.

The Graham family wanted the benefits of an all red herd, so they decided to keep mating these crossbred daughters to top Australian and Scandinavian Red Genetics.

However, they wondered what the progeny would be like without the heterosis effect the first-cross gained.

Now, nine years after their initial expansion, the current herd of 400 milking cows contains 42 HolsteinARDB crossbred daughters, and 35 Holstein-ARDB-ARDB (second cross) daughters.

The 42 Holstein-ARDB cows had an average production index (PI) of 101 from their last completed lactation.

They averaged 1.66 units of semen to go in calf during 2012 (only AI is used). Two of the 42 cows are red, the remaining 40 are black and white.

The 35 second-cross cows have an average PI of 103 from their last completed lactation.

They averaged 1.65 units of semen to go in calf during 2012. Seventeen of the 35 cows are red.

The Grahams have also been happy with the improvement in fertility and ease of calving in all these cattle. The also noted the second-cross cows are not as big as the original Holsteins.

They believe the use of top ARDB genetics in the progeny of these cows has maintained the productive ability, while breed characteristics of high fertility, calving ease, and sound feet and legs, have matched the heterosis effect experienced by the first- cross.

Ron and Brenda Graham on their Nowra dairy farm.

The Graham family has also been able to progress towards one of their goals, a completely red herd as any black cows sired by an ARDB bull will have a 50% chance of having a red calf when mated to red genetics.

The Graham family has also been able to progress towards one of their goals, a completely red herd as any black cows sired by an ARDB bull will have a 50% chance of having a red calf when mated to red genetics.

Annual statistics released from ADHIS last month revealed the Australian Red Dairy Breed is currently

the fastest growing dairy breed in Australia.

Last year the number of herd recorded Aussie Red cows continued its trend upwards to 11,043 cows, up from 8993 the previous year.

Since its formation in 1986, the ARDB has quickly grown to become Australia’s third largest dairy breed.

Dairy News AUSTRALIA march 2013

20 // management

Automated heat detection saves time on SA farm clancy burn

In the dry environment of Meningie, SA, the latest in automated heat detection technology is saving the Verrall family time and money.

Graeme and Vicki Verrall, who farm in partnership with their son Peter, have farmed in Meningie, SA for 30 years, running 300 dairy cows on lucerne and veldt pastures.

Their 300 dairy cows are milked each year on a 800ha platform while beef cattle, dairy replacements and between 50 and 150 Friesian steers share another 1600ha. About 700 tonnes of homemade hay is also harvested annually.

In 2002 a new dairy was constructed. The Verralls researched the Irish-designed DairyKing system and a light, airy 26-aside swing-over dairy was built with stall gates, cup removers, a drafting gate and an individual feed system.

Aside from wanting the best for their cows, they recognised that good quality, easy-to-use facilities would help them attract and retain the sort of staff they need.

This line of thinking ultimately convinced them to add the Moo Monitor heat detection system – a collar with a transponder and an activity recorder – from DairyKing. It is distributed in Australia through Genetics Australia.

Graeme said they had tried most of the usual heat detection aids on the market – tail paint, Kamars and scratch stickers, but nothing worked as well as the time consuming technique of sitting in the paddock and observing the cows.

Now in their first full year of use, the Verralls are so confident in the monitors they rely solely on them and achieve detection rates on par or better than the past.

The Moo Monitor works by detecting increases in a cow’s activity levels – behavioural changes such as extra steps, jumping and movements associated with heats.

Data is collected around the clock

The Verralls produce 700 tonnes of hay each year.

Who:

Graeme and Vicki Verrall Where:

Meningie What:

Automated heat detection

and wirelessly transmitted to a base station when the cow walks within 100 metres.

This happens twice daily at the Verralls’s dairy, before milking. Base stations could also be set up at a feed pad or in a laneway.

Even short heats, heats shown in the middle of the night, or cows that show little visual sign of heat are detected.

Non cyclers are also easily identified.

An added bonus is that extreme negative changes in activity are also noted, alerting farmers early to a possible illness or lameness.

This data, once transmitted, is available immediately on the dairy computer or by mobile phone alert.

Audio alerts sound when a detected cow enters the dairy, and as the cluster is put on the cow. If these are missed, the automatic draft can be set. Graeme keeps this option on so regardless of who is milking, cycling cows are drafted for insemination.

Collars are reusable meaning PTIC, dry cows or animals leaving the herd can have their collar removed and reused.

In a split calving herd this could reduce investment by needing less collars.

As the first farmers in Australia to use the system, the Verralls had their fair share of teething problems.

In their first season of use, no one had mentioned that when too far from the base station during the dry cow period, the collars continue searching for a signal, flattening the batteries.

Graeme Verrall inspects which cows are in heat.

The blue Moo Monitor collars detect increases in a cow’s activity levels associated with being in heat.

Achieving the right level of tension was also a process of trial and error.

Erring on the side of caution, Graeme put the collars on slightly too loose and found some of them in the paddock instead of on the cow, but now with removal at dry off and some routine maintenance, the collars are performing well.

Mis-drafts are not common – nearly all cows drafted are found to be in season when AI’d. However the occasional confirmed pregnant cow is drafted causing a few anxious moments, but is usually re-tested pregnant at the

next vet visit and is regarded as “just one of those things”.

Admitting computers are not really his thing, Graeme said his approach is to take the best out of the technology on offer and adapt it to strengthen your own system.

As such, although the software included in the system can be used for many other functions, they stick to the core features of heat detection and automatic drafting.

DairyKing has calculated that each missed heat could cost about $210 per cow in milk (based on three weeks of

milk at 25L/day X $0.40/L), as well as the additional costs of extra inseminations and the potential of culling animals who do not achieve a pregnancy in the desired joining period.

A two-year payback period is average for the investment, taking into account labour costs, missed heats, other detection device costs and extra inseminations.

For Graeme and Vicki, it was well worth investing in a device that, unlike humans, will keep performing at the same standard every hour of every day, year round.

Dairy NewS AUSTRALIA march 2013

management // 21

Peddle pumped with energy savings When Gippsland farmer Greg Peddle wanted a more efficient vacuum pump for his dairy, he didn’t want to buy one off the shelf.

The Peddles run 750 Holstein-Friesian cows at Yarram and use a 60-stand rotary dairy.

They originally used liquid ring vacuum pumps running at high speed. The use of an air regulator provided stable vacuum for milking.

However, this set-up had two major problems – the high horsepower requirement (22 kW) and the length of time it took.

Peddle decided the vacuum pump should have two separate vacuum levels - one for washing and the other for milking.

The pump unit in milk mode was to run at 40 kPA and in wash mode at 50 kPA. Greg Peddle Having dealt with Gippsland Sensors and Controls in the past, they contacted them again for help choosing a robust, but easily programmable controller for their vacuum pump.

To save energy costs, exploration of a more efficient solution based on the programmable ABB controller was made.

Gippsland Sensors and Controls suggested an ABB ACS550 11kW variable speed drive (VSD), citing energy efficiency, reliability and ease of programming.

An 11kw 4pole (1450rpm) motor, direct coupled to a lobe vacuum pump, was recommended to boost dairy productivity.

“With the controller on it, the motor runs between 600 and 2000 rpm,” Peddle said.

“A lot of the time when we milk, it is only running at 850 rpm. As it’s an 11 kW motor, when we run it, we now have more control, meaning we get what we need, when we need it, for less energy costs.

“When we are milking now, the pressure transducer indicates vacuum to the controller and it makes split second adjustments to maintain vacuum at exactly 40 KPA. By replacing our motor and vacuum pump and putting a controller over the pump system we have reduced our KW required by up to 75%, which is quite amazing.”

Peddle said research on technological improvements has opened his mind on further potential energy saving.

“It’s quite amazing – the more we look, the more ideas we have for saving energy. Now we know what to do and what to look for plus understand the new technology a bit better.

“The pay-back period seems relatively short so it is worth doing something.”

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Dairy NewS AUSTRALIA march 2013

animal health // 23

Floating beds an Australian first COW HEALTH and contentment are drivers of an innovative Queensland dairy enterprise which is positioning itself in the public eye.

But Greg Dennis reckons he also gets a bottom line reward for his investment as happy cows are more productive.

He is confident he will recoup outlays such as the $120,000 spent installing floating beds in a new free stall barn so the cows can chew their cud in comfort.

This is an Australian first.

And the installation of robot milkers which take the daily hustle and bustle out of milking.

The new dairy was built with a viewing platform so busloads of visitors can get a good look at the milking process.

And from May those visitors will also be able to buy delicious full cream milk from the on-farm processing plant under construction.

Dennis has taken to the social media airwaves and has become a public ambassador for the industry ahead of the launch of Scenic Rim 4 Real Milk which aims to sell 7000 litres a day produced on the family farm at Tamrookum, south of Beaudesert.

While the move into marketing milk might seem a logical extension to the dairy’s public engagement, Dennis is more sanguine.

He has big bills to pay and the poor returns on offer through traditional channels left little choice Greg Dennis with the feed ration for the herd.

Who:

Dennis family Where:

Tamrookum (via Beaudesert) What:

Floating beds, free stall barn

but to explore the direct sale option. The latest processor contract offer with a 25% price cut was the final clincher.

The family has been down the track of quitting dairying before and don’t really see this as an option after the significant capital outlays committed to rebuilding the business.

Dennis’s father Darrell and uncle Ray had a long tradition of dairying before the family decided to exit the industry at the end of 2003, disenchanted with a price of 35 cents a litre.

A modern rotary dairy was built in 1992 and at its peak the 153ha property was milking 360 cows, then one of the biggest herds in Queensland.

The rotary was cut up and sold to a Darling Downs farmer and the Dennis family diversified into beef production and built a substantial commercial hay growing business.

Dennis said when the decision was made to come back into dairying on improved prices

being offered in 2007, it was intended to be on a smaller scale, retaining other income streams, including his work in the entertainment industry as a disc jockey.

They recommissioned an old herringbone dairy and began rebuilding a herd of quality registered Holsteins.

Dennis admits it took some convincing for his father and uncle to consider robot milkers, but after a tour of facilities in Victoria in 2010 the slab for the new dairy was poured later that year.

Three Lely milking stations were installed and a fourth has since been added. This gives them a capacity to milk 280 cows and herd numbers are building towards 250.

“I prefer to run the system below specification. The cows don’t have much waiting time and it’s a lot less stressful. They can also milk more often and the average now is about 2.8 times a day,” he said.

“The cows are a lot more relaxed not being pushed up for milking in a big mob twice a day and foot health has improved.”

The computerised monitoring of a cow’s movements gives a good guide to heat detection and animals are automatically drafted off for inseminating daily to help achieve a flat milk production cycle.

A Lely Calm calf feeding system is also linked to the robot milkers.

Fresh pasture is still an important component of the diet with twice a day grazing available year round, complemented by access to a feedpad.

Drafting gates change automatically every eight hours and cows have quickly grown used to the routine. The system allows the herd access to one grazing block from noon until 8pm. A fresh paddock offers night grazing until 4am when cows are directed to the feedpad area.

A ration of cracked grain is bail fed at a rate matched to the level of production and stage of lactation, averaging about 4kg.

Another 5kg is fed in a mixed ration with protein,

Darrell Dennis feeds out a mixed ration to the herd.

minerals and hay or silage.

“We aim for a feed intake of about 21 to 22kg of dry matter a day

between the pad feeding and grazing,” Dennis said.

Ryegrass pastures are established annually in

March-April and herbs such as plantain and chicory have been introduced to the planting mix.

“Our summer grazing performance has been much better since to page 24

IN UDDER WORDS...

Dealing with Mastitis during lactation Early lactation is the most common time for mastitis, even in dry years.

Farms that may have cut back on dry cow treatments may be at higher risk of early lactation mastitis in their herd.

Mastitis costs dairy producers a lot of money and time, but by increasing the focus on mastitis management, producers can minimise the level of infection and the cost to their operation.

When using lactating cow intramammary antibiotics it is important to consider the impact of milk withholding periods. The longer cows are out of the vat the greater the overall cost of the mastitis event.

For instance, some mastitis treatments keep cows out of the vat for up to 8 extra milkings which can cost approximately $48 in lost milking income. Farmers need to consider the total time out of the vat , as well as the spectrum of activity of the treatments given, when considering the true cost of the different intramammary mastitis treatments.

Key mastitis control priorities include: • Keeping teats in good condition with disinfectant and emollient

• Regular milking equipment checks and maintenance to ensure correct vacuum pressures and pulses • Washing and drying dirty teats in high risk cows • Monitoring for clinical mastitis, and treating affected cows • General hygiene in and around the dairy Producers should consult with their veterinarian for long term herd mastitis monitoring and control measures.

Your vet can advise you on lactating cow intramammary antibiotics that have both a broad spectrum of activity, and short milk withholding periods, to return your farm to full production as quickly as possible.

Dr. Damian O’Brien, Coopers® Technical Services Veterinarian For further information on dealing with mastitis call Coopers on 1800 885 576 ® Registered trademark.

Dairy News AUSTRALIA march 2013

24 // animal health

Floating beds from page 23

The freestall barn with the floating beds.

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we started direct drilling millet each year into the established pastures, a mix of kikuyu, Rhodes grass, paspalum,” Dennis said.

“Voluntary cow flow is critical to the success of a grazing based robotic system. To achieve this, our pasture management in the hotter months has greatly improved, as the fibre on offer is now of a higher quality and much more palatable.”

Pasture discs are used to create a shallow seedbed and a harrow and roller after planting have enabled significant improvement in early growth rates, while maintaining a firm, all-weather grazing platform.

Dennis said that after a series of extremely wet summers and a battle to keep mastitis cell counts under control, the family had decided to invest about $700,000 in a large free stall barn which was completed last December.

The open-sided structure measures about 100m by 20m with 240 individual cow stalls.

The roof is 4.2m high at the sides and with an 18% pitch, rises to almost 8m.

The shed is on a natural slope of about 4.5 degrees, which helps draw good air flow through for cow comfort during the hottest months of the year.

Cows rest contentedly on a gel-filled membrane bedding system imported from Canada. They are the first Gel Mats installed in Australia.

Manure is scraped from the shed laneways daily and a flood wash system is being considered.

“We expect the shed will make a big difference to our productivity and herd health, particu-

larly during the summer months.

“Study groups have returned home from research trips, skeptical of the economics of such an investment. I strongly believe however, that although the cows are only using the barn for a third of their day, it will positively impact on their overall health 24/7.”

Dennis opened the property up to visitors and tourists, initially in expectation that he would mainly be dealing with school groups.

But word of mouth has quickly spread among bus companies around south east Queensland looking for a venue for retirees and senior citizens to visit.

He offers a commentary and discussion in the dairy for regular busloads of visitors and is looking forward to being able to sell them fresh milk when the new processing plant is commissioned.

The plant will only process full fat milk which will be sold in 1 and 2 litre plastic containers. A niche market is being targeted for milk in traditional 750ml glass bottles with an industrial glass washer being installed for recycling returned bottles.

Dennis said the facility would process both homogenised and non homogenised milk, but he is keen to educate the public about the benefits of milk with a natural fat distribution.

“We’d like to market fresh, healthy milk in as natural a state as possible,” he said.

A range of flavoured milks is also on the agenda after the processing facility is commissioned and bedded down.

avaILaBLe noW

from your local veterinarian or rural reseller For further information visit our website at www.coopersanimalhealth.com.au or call us on TOLL FREE 1800 226 511 ® Registered trademark.

Greg Dennis monitoring the milking.

Dairy NewS AUSTRALIA march 2013

animal health // 25

Feed testing critical as crops show low protein Brett Davidson

A SOFT finish to the winter crop harvest has meant yields came off as most cropping farmers expected. Screenings have been low, but unfortunately low crude protein has been the order of the harvest right across the board for oats, barley and wheat.

Given that wheat is the main component of a supplementary ration for dairy herds, the low protein will be an issue.

Rations will require a higher level of supplementation with a protein source to make milker-quality ration. Most wheat this year is falling into the ASW1 standard specification, and it is not making the higher grades because the protein is below 10%.

ASW1 has no minimum protein requirement, so when buying grain some loads will be a lot more expensive than others, on a cost per kilogram protein basis, as they could test anywhere from between 5%-10% protein.

Dairy cows need between 12-16% protein in their diet depending on their stage of lactation; young stock and growing stock that are developing have need 14-17% protein.

Low protein grain could be a bigger issue on some farms that are grazing

millet and sorghum, or have a cereal and corn based silage as part of their summer feeding program. In these instances, these herds will have to increase their protein supplementation to achieve a balanced diet. Doing so could make balancing the diet very expensive.

Whole cotton seed is very popular this year, and the prices are very attractive at around $240/tonne ex works. But whole cotton seed can only be fed up to 2.5 kilograms/day. Above this level cattle can become very sick as the high oil content is very hard for them to process. There may also not be enough protein to supplement the diet to the appropriate level.

The most popular source of protein is canola meal and it is an excellent source of protein.

It is currently running about $340/ tonne ex works, but when you have to

To manage the risk associated with buying grain you must feed test.

All feed grain should be tested before it comes onto your property and a grain consignment should have the appropriate grade assigned to it so you know what you are getting. Ensure that the feed test supplied applies to the grain you are buying.

All farmers need to be aware of the Grain Trade Australia (GTA) Commodity Standards, which are a critical tool for anyone purchasing, selling, trading, brokering or operating in the commercial grain industry.

You can get a copy of the standards at www.

Oats, barley and wheat are graintrade.org.au, which recording low crude protein levels this harvest. has all of the grain standards with an explanastart adding this into the ration it will tion of their quality parameters. The increase the cost. Lupins are another GTA Commodity Standards is the new alternative but as they are in very short name for the old NACMA grain tradsupply and it may not be a viable option. ing standards that most people will be

familiar with.

Currently F1 barley is cheaper than ASW1 wheat by about $30/tonne, but F1 barley can have up to an extra 15% screenings.

The screenings aren’t usually processed by on-farm feed mills and that grain tends to be wasted with most of it being unprocessed and passing straight through the cow. ASW1 has a 5% screening level.

F1 barley also has no minimum protein level, the same as ASW1, however the reports at the silos are that the barley protein levels are actually coming in lower than that of wheat.

With the combination of potential higher screenings and lower protein levels, wheat might appear to be better but only a feed test will be able to confirm which will be the better option.

The RAPID Feed Analysis service can confirm what you are getting. You can source the yellow RAPID Feed Analysis kits through your milk factory or by contacting George Weston Technologies directly. For more information contact Kris Giddings, telephone (02) 9764 8121 or email kris. giddings@gwf.com.au • Brett Davidson is the dairy livestock officer with the NSW Department of Primary Industries, based in Deniliquin.

Eliminating sub-clinical ketosis in transition cows Rick Carter

Ketosis is a metabolic disease affecting early lactation cows. Ketosis and sub-clinical ketosis occur around calving when feed intake declines and the cow enters a state of negative energy balance. The ketotic metabolic condition progresses when the cow is unable to effectively ‘process’ the body fat that is mobilised to counteract the negative balance in energy supply. The blood level of ketones increases and these can be measured in blood and milk.

For example, beta-hydroxy butyric acid (BHBA) can be measured with handheld meters and test strips.

It is generally recognised that all cows will be in some degree of negative energy balance in early lactation and therefore all cows will be experiencing varying degrees of ketosis which will erode productivity and profitability.

Sub-clinical ketosis is often unrecognised

but associated problems include displaced abomasum (DA), retained foetal membranes (RFM), metritis, delayed return to oestrus and thus impaired fertility.

The cost of clinical ketosis is estimated at $320 per case (not including the reproductive performance cost) and the cost for sub-clinical ketosis is estimated at $125 per case (Dairy Australia Transition Cow Management, 2010). Note that the estimated cost of LDAs is $640 per case.

There are a number of ways to help avoid clinical and sub-clinical ketosis including ■■ Good transition cow management ■■ Managing body condition score to avoid over-fat cow ■■ Ensuring good dry matter and energy intake ■■ Controlling milk fever which acts as a ‘gateway’ disease for many disorders ■■ Chromium and rumen-

protected choline supplementation.

Chromium increases the animal’s sensitivity to insulin and increases the clearance of glucose out of the blood and into tissues for energy utilisation and thus improves the cow’s energy balance status.

Supplementary chromium

can help to increase dry matter intake and so help insure against ketosis and thus ensure milk yield Period

(see table).

While choline is synthesised by the cow herself, this may well be

Control Chromium Difference

21 days pre-calving 10.6 Day 1-35 post17.0 calving

11.4 18.7

+ 0.8 kg/day (7.5%)

Day 1-90 postcalving

23.1

+ 1.7 kg/day (10.0%) + 3.1 kg/day (15.5%)

20.0

insufficient to meet the choline requirement of today’s dairy cows. Choline is needed to help transport fat out of the liver and so plays a part in reducing the risk of fatty liver and ketosis.

Supplementary choline must be in a rumen-protected form. Improved

fat metabolism and consequent increases in milk yield have resulted from supplementing cows with rumen-protected choline across the transition period.

• Rick Carter is technical services manager with Kemin AgriFoods. He can be contacted on (02) 98445700

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Dairy News AUSTRALIA march 2013

26 // animal health

Transition feeding could return $200/head A pre-calving tran-

sition feeding program could cost between $20 and $60 per cow, depending on the approach used, but return up to $200 per cow per year net benefit.

That’s the advice of Dr Steve Little, Dairy Australia’s Feed2Milk program leader.

“Transition cow management is therefore one of the most significant advances in dairy cow nutrition and production over the past 20 years,” Little said.

“For many Australian dairy farmers who are yet to implement a successful transition feeding pro-

gram, it provides a major opportunity for improving cow health, milk production and reproductive performance.”

Getting dairy cow nutrition right in the three weeks leading up to calving will get more cows in calf sooner, he said.

It is also the key to

fewer cow health problems at calving and a highly productive lactation.

“Cows that don’t transition well from springer to fresh milker lose more body weight, have lower milk production and are less fertile.

“The three weeks before calving (the pre-

calving transition period) is the time to get springers ready for lactation and mating. It’s when cows and heifers go through dramatic changes and need a diet that prepares the rumen for a milkers’ ration, meets the demands of the developing calf and udder, and prevents dis-

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eases such as milk fever.”

In the past, Little said the focus has been on managing DCAD (Difference between the Cations and Anions) levels in the transition diet.

However, calcium, magnesium and phosphorus levels in the diet are also important in controlling milk fever and its flow on effects, he said.

“Aim for low potassium, calcium and phosphorus and high magnesium levels in the precalving transition diet.

Knowing the level in all components of the precalving diet of calcium, magnesium, phosphorus and DCAD is the only way to accurately assess milk fever risk.”

Little said farmers feeding the cows more than three kilograms/day of grain or concentrates after calving should be feeding grain or concentrates before calving too. This helps prevent acidosis or grain poisoning by giving the rumen time to adjust to grain in the diet.

“It takes seven days for the rumen microbes to adapt to the higher starch diet fed after calving and at least three weeks for the rumen lining (papillae) to properly develop to absorb

Dr Steve Little

the nutrients.”

Little said feeding an effective transition diet helps cows to return to full appetite sooner after calving.

This reduces the time and depth of negative energy and protein balance after calving. The result is less weight loss, and higher fertility at joining.

Little said a successful transition feeding program helps: ■■ Prevent milk fever ■■ Reduce retained fetal membranes, assisted calvings and vaginal discharge ■■ Reduce acidosis, ketosis and lameness ■■ Save time and money spent on treating sick and downer cows ■■ Increase in-calf rates ■■ Increase milk production over the entire lactation.

No problem in cold stored colostrum A STUDY looking at the wider implications of cold stor-

ing colostrum has given the practice a preliminary all clear.

The Texas A&M University AgriLife Research and University of Florida report notes most studies analyse the effect of refrigeration or freezing on preservation of immunoglobulins, but the impact of such storage on other immunological factors had been unclear.

“Passive transfer of immunoglobulins is the key element; however, colostrum also is an important source of nutrients, non-specific immune factors and biologically active compounds,”the report said.

Researchers looked for differences in health in 489 Holstein Friesian calves fed fresh, refrigerated or frozen colostrum from birth. Each calf was monitored for survival, number and length of illnesses, and average daily gain.

The objective was to assess the performance, health and survival of calves fed fresh colostrum from their dams compared to calves receiving colostrum that was not from their dams and had been treated with potassium sorbate preservative and stored frozen or refrigerated.

Preliminary results indicate colostrum’s origin – fresh maternal versus stored – does not have a significant effect on performance, health and survival.

Dairy NewS AUSTRALIA march 2013

animal health // 27

Breed for feet and improve herd health

A farm consultant appointed to steer DemoDAIRY in

western Victoria back to profitability hopes to have the farm in good shape within 18 months.

Farm management consultant Paul Groves has been appointed by DemoDAIRY as part of a re-focus on making the dairy business operate profitably during tough economic times.

Groves, from near Timboon, will assist the DemoDAIRY Board to implement changes to develop the farm business. He said control of costs would be essential in returning the farm to profitability.

“We can’t manipulate the milk price so like every farm we need to make sure we are controlling our costs,” he said.

Groves will review the DemoDAIRY farm operations at Terang over the next three months and hopes to implement changes in consultation with the board that will return the farm to profitability within 12 to 18 months.

“We don’t have the milk income to do everything as we would want in an ideal world, so we will be looking at better feed budgeting, better cash flow budgeting and making sure the farm is stocked and staffed appropriately,” he said.

“We have to make compromises to make the farm work.”

Groves said that while all dairy farms needed to be controlling costs at the moment, DemoDAIRY faced some specific challenges.

“We have to work with an employee system rather than as an owner-operator and we have been working around the trials that happen at DemoDAIRY,” he said.

Groves said research work was likely to be reduced while the farm was returned to profitability.

He added that it was hoped the farm could become a showcase for operating profitably during tough times.

“We hope to show that a well-managed dairy farm can still make good profits and that young people can be positive about the future,” he said.

Groves said it was important that people realise the DemoDAIRY farm operates under the same constraints as a typical farm.

“The farm needs to make a profit without external funding,” he said.

Groves has been a farm advisor for about five years and prior to that worked for the Department of Agriculture and a stock feed company.

DemoDAIRY chairman and Terang district dairy farmer, Bryan Dickson, said the farm recorded a trading loss of $78,000 last year.

“We don’t expect to be back in profit this year but hope to get there within an 18 months to two-year timeframe,” Dickson said.

Dickson said the consultant was solely focused on driving down the cost of production.

“I would also like to acknowledge the tremendous support we have received from both Dairy Australia and WestVic Dairy in our endeavours to change the farm management structure on the DemoDAIRY farm”.

reason for culling.

The 29-month study, conducted on three farms, correlated milk production with weekly observations of hoof health for more than 5,000 cows, including the visibly lame and dry cows.

Recorded lameness-related hoof conditions included white line disease, sole ulcer, other claw horn lesions, footrot and foot warts.

Foot warts were the most prevalent ailment, affecting over 17% of

cows. The research demonstrated a sizable genetic component to sole ulcer and foot warts, indicating breeding for reduced hoof disease will likely lead to measurable improvements.

The authors add that a breeding program considering hoof-health traits would be unlikely to jeopardise milk productivity.

Oberbauer says more research now is needed to identify the specific genes or DNA regions that are responsible for hoof-health traits.

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Groves appointed to review DemoDairy

the cow’s conformation, particularly in terms of hoof health, also should be considered,” says Professor Anita Oberbauer, lead author of the study published in the Journal of Dairy Science.

Oberbauer says lameness and hoof health are also animal welfare issues that can cause dairy producers to cull, or retire, cows early from their milking herds.

As of 2011 at least 40% of California’s dairy cows were culled annually, and lameness was a top three

Linear somatic cell score

Farm management consultant Paul Groves has been appointed to develop the DemoDAIRY.

DAIRY FARMERS can increase efficiency, reduce carbon footprints and improve health of herds if they consider foot warts and other hoof ailments in breeding plans, researchers at the University of California say.

Increased herd longevity, better milk yield, and reduced inputs and environmental impact are other benefits.

“Most dairy breeding programs select for milk production but the results of this study indicate that

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Dairy News AUSTRALIA march 2013

28 // farmworld preview

The bald facts on new ryegrass Kerri Ross has found One50 perennial ryegrass with AR37 endophyte to be the best fit for their dairy operation at Bald Hills, just north of Ballarat. Animal health and

Bald Hills dairy farmer Kerri Ross has benefitted from planting One50 perennial ryegrass with AR37 endophyte.

productivity is a key driver on the farm and continual problems with heat stress attracted the Rosses to the new variety.

“We didn’t realise until we went to a field day the

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over the first 2 weeks of grazing the new pasture,” Ross said.

“Those results were from one grazing per day so we are excited about what two grazings per day could deliver.

“We also noticed the cows did a great job eating the grass down; it just seemed to be more palatable. We had been having problems maximising grazing utilisation but have kicked massive goals improving pasture utilisation with the One50 AR37.

“As we hadn’t “We also found been doing a lot of that with the early rain the One50 pasture renewal took off with new cultivars AR37 before the others we went home and so we were able to did some thinking graze these paddocks first. and thought AR37 “As far as the was worth a trial.” temperament of the cows, they have improved no end.

With no irrigation on We have always had masthe property the Ross’s sive herd health affects in are reliant on summer the cows, a few strange illrainfall, with Kerri comnesses and heat stress on menting that “it wasn’t a the Vic rye but we saw initypical year for rain with tial improvements from 4 1/2 inches of the farm’s the first grazing on the 25 inch annual rainfall coming in under an hour.” One50 AR37.

“The cows were out This moisture held relgrazing longer – they atively well in the properdidn’t seem to be so hot ty’s clay to light red soils and bothered. setting the farm up for “We have also noticed early summer growth. a difference in the shed.

“We looked at a few options but One50 peren- The cows always seemed to be a bit on edge. After nial ryegrass with AR37 a few weeks of grazing was the best fit for us. We the One50 AR37 we have normally just resowed found them to be a lot with Vic Rye and annuals calmer. As a result we have especially after the 2006 drought but after our 14ha also been able to reduce their dose of magnesium.” trial split into two padRoss said the cost of docks, it convinced us the pasture renewal was about the One50 AR37. initially off-putting.

“The results speak for “While we were conthemselves - within two cerned about the profitdays of the cows grazability to begin with, the ing the new pasture we proof is right there in the noticed a 2 litre increase vat and the seed has paid per cow per day in the vat for itself in terms of procompared to Vic rye and duction and animal health clover pastures. benefits. We are going to “We also noticed the sow another 42ha, with milk fat percentage rise the long term plan to use from 3.9% to 4.1% and the One50 AR37 across the protein levels also rose from 3% to 3.2%. The milk entire milking platform but it is all about getting yield increased straight the pastures ready first to away and the protein and maximise the results.” fat gradually increased effect that the standard endophyte in Vic rye could have on milk production and impact on our cows,” Ross said.

“As we hadn’t been doing a lot of pasture renewal with new cultivars we went home and did some thinking and thought AR37 was worth a trial.”

One50 AR37 is sold through Stephen Pasture Seeds, who will be exhibiting at FarmWorld in Warragul on March 21-24.

check out the latest news and information at

www.dairynewsaustralia.com.au

Dairy NewS AUSTRALIA march 2013

farmworld preview // 29

Spreader an all-rounder When Steve Lynch of Otway Ag Contracting found his belt spreader couldn’t handle the work, he looked at three top brands and chose a Strautmann VS 2004 universal spreader.

The VS 2004 spreader had broadened the range of services he could offer and brought benefits to his own business and his customers, he said.

“Effluent ponds are a problem for many farmers.

You’ve got to get rid of it.

With the Strautmann I can put it where they need it, when they need it,” he said.

“Because lots of people want to use solids from effluent ponds and mix in other materials for compost, I chose a big, low maintenance machine with horizontal beaters.

“One of my customers used to spread urea on his dairy farm every month.

A few years ago, he began using compost and liquid effluent and he hasn’t used urea or super phosphate since.

“As a result, he’s got much more clover in his pasture and his cows are producing more milk.”

Lynch is based in Colac and travels as far as Swan Hill and parts of NSW to his customers.

“If I’m coming out to do a job with the Strautmann spreader, word tends to get around and other people book me while I’m in the area,” he said.

He offers a complete range of applications for liquid and solid effluent, lime and compost spreading, as well as hay/silage, sowing and spraying work.

“The spreader works in well with my 16,000 litre effluent tanker,” he said.

“We can empty effluent ponds and put it straight onto summer crops.”

In the paddocks, Lynch travels at 12-15km/h with the universal spreader, putting on between 5 and 10 cubic metres per hectare.

“You get a very good spread pattern. The material is taken by the horizontal augers, drops down to the spinning discs and gives a wide distribution to the rear and side. It throws heavy compost out to 23-24m,” he said.

The two discs of the wide angle spreading unit each have four adjustable throwing shovels. Discs and augers are protected individually with cam-type cut-out clutches and monitored by speed sensors.

Lynch is a qualified mechanic who trained on

I can load any materials farm machinery. He does and it combines them and his own servicing and has an eye for the fine points of forms rows ready for the compost turner. build and design.

“The steering axle on “The Strautmann VS is a pretty good machine. It’s the back makes it very manoeuvrable on tracks quick and easy to keep the and through gateways and grease up and the chains that’s vital when you’ve got tight. I haven’t had to do such a big, heavy machine.” anything to it,” he said.

• Inlon, the Australian dis“The hydraulic floor drive has infinitely variable tributors of Strautmann speed and the oil flow con- spreaders, will be at FarmNews.pdf 1 1/31/2013 2:27:37 PM troller is in FW theDairy tractor cab. world.

Make informed purchasing decisions at Farm World 2013

• Australia’s premier mixed farming field days with 700 exhibitors.

The latest in farm machinery and equipment, pasture, fertilizers, irrigation, motor vehicles, plants, produce, home and general interest are showcased on over 50 acres of exhibition area

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• The 2013 Farm World theme ‘Agricultural Sustainability’ focuses on how farmers can use resources more efficiently and responsibly with the aim of improving farm profitability and achieving positive environmental outcomes.

M

Saving dairy energy, labour

Y

CM

MY

CY

CMY

Measures to combat rising electricity costs due to impact on dairy farmers substantially soon, and the quandary of ensuring reliable on-farm labour, will be two issues on the minds of many visitors to the Farm World Field Days.

A presentation addressing these issues will be a feature on Friday, March 22, starting at 1.30pm, given by Peter Maguire, managing director of GEA Farm Technologies Australia, formerly WestfaliaSurge.

Maguire worked for 10 years with Graeme Mein at the Milking Research Centre on research and extension work relating to milking cows, cow behaviour and dairy shed design, before setting up Westfalia’s Australian operation in the early 1980s.

The topics he will discuss include heat recovery, using heat extracted during the milk cooling process to heat water for cleaning, the saving of up to 80% of energy use through variable speed drives on vacuum pumps and the savings on both energy and chemicals through ‘green cleaning’.

Another important issue is the growth of robotic milking in both free stall barns and on pasture farms – a huge step in labour utilisation.

An international viewpoint at the presentation will be provided by Mike Creek of GEA Farm Technologies Inc, based in the United States. Mike has had 30 years’ experience in the dairy industry and provides support to GEA Total Solutions worldwide on cattle housing units.

Other attractions include -

K

• An extensive demonstration & presentation program plus free health & hearing tests (see the website for updated details) • The Farm World ‘Coles Animal Nursery’ includes ‘Animals of Oz’ kids can interact with pythons, lizards, marsupials & crocodiles etc.

• Working Draught Horse demonstrations...plus much more • Free bus transfers between Drouin station and Lardner Park to connect with V-Line Services. Timetable info www.vline.com.au/discover

Date : March 21- 24, 2013 Venue : Lardner Park, Warragul www.lardnerpark.com.au

Strategic Partners

Dairy News AUSTRALIA march 2013

30 // farmworld preview

New robot milkers unveiled THE LATEST development in robotic milking is set to deliver faster milking and increased versatility for Australian dairy farmers.

GEA Farm Technologies Australia will release their WestfaliaSurge MIone Multibox automated milking system at the Farm World Field Days.

Peter Maguire, managing director of GEA Farm Technologies, said that the MIone Multibox is a true milking centre, with all features and equipment concentrated in one spot. “The system is individually tailored to each farm’s needs by easily incorporating more modules, from a single milking box up to a maximum of five milking boxes, expanding along with the herd. With the MIone one robotic arm operates with multiple milking boxes.

“GEA FT has always believed in stall to apply the clusters. The robot arm developing the latest state of the art picks up the milking rack and teat-cups, technology and this is the case with moves it under the cow and places the our 3D camera system for teat location cups onto the teats, one at a time.

The camera is continuously watchand attachment on the MIone,” Maguing the udder and the ire explained. cups and monitorWhen a cow enters “A complete ing the movement in the holding area she milking takes real time. Therefore is identified by her ID, six minutes MIone does not and her personal data including teat the need reference data is compared with the to attach the cups and MIone database. If the cleaning.” acts immediately, also cow is not to be milked, she cannot enter the milking box and reacting quickly to changing circumis directed back to the paddock or feed stances, such as the cow moving or pad. If she is to be milked, her milking kicking.

The cups are applied more quickly time feed ration is dispensed as she enters the box, and the robot arm, on than other robotic systems. The robot which the teat positioning 3D camera arm immediately moves on to the next is located, moves quickly to the milking stall after having carried out its task and

does not remain under the cow during milking, allowing for higher throughput by the ability to immediately attach to the next cow. The camera is mounted in a position protected against dirt and possible kicks from the cows.

On the MIone, many functions are incorporated into the one operation. The stainless steel and titanium milk rack is operated by compressed The robot arm moves on air and is quiet and reli- once cups are attached. able. It looks after attachment, cleaning and drying, pre-milking, attachment time as everything hapindividual stimulation of the udder and pens in one step. There is also no risk of cross-contamination between cows the milking.

Teat cleaning happens inside the and teats and the cups cannot fall onto cups. Every teat is cleaned for 15 sec- the floor.

The Multibox principle enables the onds immediately after attachment of the cup. The first milk is separated and handling of more than one milking box discarded. The time for cleaning and with only one robot arm and one supply pre-milking can be adjusted individually unit. It is available from one to five by the operator, but a complete milking milking boxes per system. Rather than usually takes about six minutes includ- having several single boxes in a shed, the ing teat cleaning. This system has been farmer has one system with up to five tested and approved by the Food and boxes. The system can expand with the Drug Administration (FDA) in the USA. growth of the farm by adding a addiMaguire said there is no delay in tional boxes as a later step.

THE PROFESSIONAL SERIES BY AITCHISON SEEDMATIC AIR PRO 4132T MK2

SEEDMATIC PROFESSIONAL RANGE 8122 CT

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Transport width 2.75 m

Compact transport: W 3.2 m H 1.7 m L 3.6 m

›› Excellent trash clearance ›› Straighter lines and unique Aitchison boot design ›› Large capacity seed and fertiliser hoppers ›› Direct drill into existing pasture ›› Direct drill into maize stubble ›› Able to drill in arable conditions ›› Better contour following abilities ›› Sowing width 4.8 m

›› 3.0 m sowing width ›› Narrow 136 mm row spacing with 22 large 25 mm tines ›› Best sowing and fert delivery system accurate to low levels ›› Stainless steel fertiliser bin standard ›› Optional self loading harrow kit also available ›› Large 14” coulters, straight tines and large 550 mm stagger for unrivalled trash handling ability

38 Punt Cobramdealer Contact your local Reese AgriRoad, Aitchison Call John West today for details, or freephone 1800 140 196 (03) 5871 1555 Brendan Prentice 0400 540 Mob: 300 | 0427 www.reeseagri.com.au 711 486

HS West

www.reeseagri.com.au

Dairy NewS AUSTRALIA march 2013

machinery & products // 31

No-till direct drill ideal for dry times

Total solutions for dairying GEA Farm Technologies

working clothes chris dingle Barney Young, ‘Binnowee’,

GEA Farm Technology’s MIone Multibox automated milking system enables you to create a true milking centre, with all features and equipment concentrated in one spot.

A modular system that is economical and animal-friendly, and expands along with your herd.

GEA Milking & Cooling

Barney Young with his Aitchison Air Pro 4132 Mk 2 direct drill/seeder.

High-quality products for manure handling Houle electric effluent pumps and agitators a full line of equipment to cover all applications

GEA Farm Equipment Houle Who:

Barney Young Where:

Katunga What:

Aitchison direct drill/seeder

He is a dedicated Massey Ferguson man and pulls the Air Pro with a 140hp MF7475. “When we sowed the millet it was in pretty hard clay soil, but we had no problems, the tractor wasn’t really working.”

Aitchison recommends a working speed of 6 to 15 km/h.

“I’m impressed”, said Young, “so far I’m happy with the drill, but I haven’t had a real belt at it yet.

“This machine was attractive because it was the right price for my sort of business. Brendan Prentice has been very responsive in helping me set it up, with the calibration, etc. Once we did that I haven’t needed him to come out since.”

He laments a missed contracting opportunity that he had set up with a neighbour. “The bloke came over to have a look at the machine with an engineering mate, who said, ‘That’s well built’, so the neighbour went and bought one himself.”

Folded up for road transport the Aitchison is 2.7m wide – the centre drive wheel folds down to run the seeder when it is ready to go and Young said that calibrating the seed and fertiliser is really easy.

Looking for the most efficient upgrade?

Choose WestfaliaSurge IQ clusters for faster milk out, improved udder health, cleaner milk.

“We are milking 280 cows an hour, without pushing it. We can put the cups on three cows in the time that it took to do two.”

John Watson, Cobram VIC.

GEA Milking & Cooling Call 1800 789 100 for the name of your nearest dealer Email info.auft@gea.com www.gea-farmtechnologies.com.au

GEA Farm Technologies The right choice He said an available option with the Air Pro 4132 is an electronic drive kit and control monitor, but in this case he chose to stay with the ‘manual’ system.

‘Binnowee’ covers 80ha irrigated from the Murray no 5 channel. This year Young is cropping for his own hay and silage; “I’ve got 80 acres (32ha) of lucerne in, some is sold and some still to go”. He is also sharecropping 48ha of lucerne and oats for silage.

He has about eight local dairy farmer customers.

When we visited in late February he was just heading off down the road to a customer to put in shaftal and rye on paddocks that had oats last year, cut for silage and then grazed.

The Aitchison Air Pro 4132 Mk2 is designed for no-till direct drilling and it was ideal timing as the area had just received some rain after the dry early start to the year.

GEA Farm Technologies See the future

GE11329

at Katunga, just north of Shepparton in Victoria’s Goulburn Valley, gave up milking cows about seven years ago, to concentrate more on contracting. He had always done some hay, silage and sowing contracting for neighbours in the area so, as he said, “I had to get a bit more ‘fair dinkum’ about it.”

The machinery he had been using for sowing was getting worn out so he was on the lookout for a replacement. “I did the rounds at Elmore Field Days and then I saw a demo of the Aitchison Mk 1 machine at Goornong a few years back.”

The Aitchison brand comes from New Zealand and its machinery has been around for more than 35 years. They are best known for direct drilling with a range of tyne and disc drills which were originally introduced specifically as pasture renovation tools.

After discussions with Brendan Prentice from Reece Agri, the Australian distributor for Aitchison, and an inspection of their current air seeder, Young settled for the Aitchison Air Pro 4132 Mk2 direct drill/seeder.

“I looked seriously at two or three other options before settling on the Aitchison,” says Young, “but it really looked like it would work well and I traded in the 19 run Duncan Series 1 that I had used for 10 years.”

He took delivery just before last Christmas through Neill Morey at Shepparton Ag, the local dealer for Aitchison.

The Air Pro 4132 Mk2 has a 4.8m working width with 32 tynes at 150mm spacings with coulters in front and press wheels behind.

The tynes have an ‘open stagger’ of 400mm.

The seed boxes hold 1000 litres in the seed hopper and 1500 litres in the fertiliser hopper, and Young has fitted a Grainline auger to make filling the hopper a lot easier.

Setting the depth is a relatively easy process of just winding up or down the linkage-type bars on the press wheels and the front wheels.

Young says he set it at about 15mm to sow 9ha of millet, plus DAP in early January, for a local dairy farmer.

Dairy News AUSTRALIA march 2013

32 // machinery & products

Low-cost disc drill cracks market NEW Zealand company Duncan Ag built the Duncan Enviro DD30 air-seeding drill aimed at markets in New Zealand, Australia, South Africa, UK, Japan and USA. The Enviro DD is a 23-run unit that sows out to 2.87m Features include 550L boxes with wide-opening lids, proven drive system (Duncan Mk4 Renovator) and the disc spring-mount assembly proven in the maker’s Trash Boss range.

It has a leading scalloped disc followed by

a plain disc which opens the seeding slot.

The disc assembly bearings and disc angle come from the Duncan Enviro 3000e. Disc spacing is 125mm – the popular spacing used on the Duncan 24 and 28 run Mk4 Renovators and Duncan Enviro 3000e drills. A press wheel for soil and seed compaction is an option and the transport wheels control sowing depth.

The discs fore and aft of the transport wheels provide the contouring.

The company trialled

the unit in Australia and foresaw New Zealand application. “It’s a drill that takes farmers into the disc arena in a cost effective way.”

South Australia farmer Jared Boshier is quoted as saying his DD30 – the first landed in Australia – “takes the sowing task to a new level of satisfaction”. He says another attribute of the DD30 is easy calibrating and spot-on performance.

Visit www.duncanag. com or tel (03) 9314 9666.

Anthony White, Australian sales manager, Duncan Ag, with a Duncan Enviro DD30 air-seeding drill at last month’s Sungold Field Days.

Built tough for minimal trouble The engineering and qual-

ity build of McIntosh forage wagons ensures trouble-free operation for years, according to McIntosh Farm Machinery.

The company’s silage wagons are built with a true bathtub design, the narrower body suited for feed pad work while still being stable on rolling country.

Fully welded sides and a 5mm steel floor gives the wagon strength and durability with no bolted or riveted joints.

The elevator angle allows the front of the wagon to be fully loaded against and it will start every time without the need to back the load off.

Other features include: ■■ Three floor chains on the 8001400 models; two chains on the smaller 500-700 models.

■■ Floor and elevator chains available in either 10mm or 13mm high tensile chain.

■■ Individual chain adjusters with a

TracMac Farm Equipment managing director Allan Slater with a McIntosh Forage Wagon at last month’s Sungold Field Days.

TracMac is the Australian distributor for McIntosh.

■■

■■

■■

40mm shaft and 24mm threaded rod Heavy duty back door made out of 50x50 box section, which helps prevent bending True bumper bars with extra brace on the corner to improve strength and protect the conveyor 900mm or 1200mm wide con-

veyor belt or centre feed The Titan Series Silage Wagons hold 25 cubic metres and are built for larger operations. It includes a heavy duty 13mm floor, while floor and elevator chains and larger diameter sprockets are designed to handle larger, heavier volumes of material with ease.

Tel (03) 5623 4023

Spreader’s simple design Wagga Wagga, NSW, company Landaco builds spreaders for Australian conditions.

Designed to spread the full range of materials available to all facets of farming, from the lightest granulates, powders and manures to the heavier gypsum and wet lime, Landaco spreaders will convey material of any texture from microfine particles to broken bricks.

Models available range from the compact 3 point linkage belt spreaders through to the massive 25 tonne tractor-drawn Maxispread TS25000.

Today’s spreaders have their genesis in the machines first built in the 1980s, when company founder Norm Connor designed a prototype which dispensed with chain distributors and replaced them with a belt driven spreader, hydraulic spinners and sleek, uncluttered lines.

The company is now managed by Norm’s son, Peter.

The Landaco Agrispread (pictured) features a wide 800mm PVC conveyor, which eliminates bridging of materials and our proven positive belt drive system, with no chains or moving parts exposed to the elements.

The mechanical ground drive system is sealed, grease packed and enclosed to keep it clean and operational.

Landaco manager Peter Connor with the Australian-built TS3000 Agrispread spreader.

The high/low range ground drive reduction is hydraulically engaged or disengaged from the tractor cabin.

The Landaco Agrispread has heavy-duty twin 700mm diameter hydraulic spinners with high efficiency casting vanes as standard, for the fullest and most even spreading.

The recommended spinner RPM range is 750-850 rpm.

Tel: 1800 358 600

Dairy NewS AUSTRALIA march 2013

machinery & products // 33

One less person in milking shed CHRISTINE AND Rich-

ard Lansdaal only installed the ADF (automatic dipping and flushing) milking system in April 2012 but are already impressed with its effectiveness.

Farming 18 years on their 205ha farm near Morrinsville, NZ, they bought ADF because they wanted an all-in-one teat spraying and sanitising system for their 680 Jersey cows.

“Our cell counts were good, averaging about 79,000, but we were finding it only took one heifer with mastitis for it to spread to others”, Christine said.

“So we installed ADF

and it has stopped the spread dramatically, in fact it has knocked our mastitis on the head entirely. It has given us peace of mind that we no longer need to worry about mastitis in the herd.

“ADF has been a great investment for us, giving us peace of mind over mastitis and the fact that cell counts will continue to remain low; it has turned our 48-bail internal rotary shed into a one-person unit.

“We no longer need a person dedicated to teat spraying, which is not a reliable way to do it. Now we are confident all teats, at every

milking, are getting fully sanitised.”

The ADF system aims to reduce mastitis and its spread amongst the herd by automatically spraying the teats while the cups are still on the udder, directly after milking, while the teat canal is still open.

ADF means one less person in the dairy shed for Richard and Christine Lansdaal.

www.adfmilking.com

Red Hot deals on Mid-sized tRactoRs

New robot for every cluster A totally new robotic milking module for rotaries, herringbone sheds or side-by-side parlours has been developed by GEA Farm Technologies, and the prototype was presented at the recent EuroTier Trade Fair in Hannover, Germany.

Designated as the DairyProQ system, GEA Farm Technologies Australia’s managing director, Peter Maguire, said that it is a totally different concept wherein there is a robot milker for every cluster on the rotary platform.

“This is batch milking with robotic labour,” he pointed out.

“The problem of the time taken to put cups on doesn’t really matter any more.

“All phases of milking are carried out by the individual robots – from pre-cleaning the teats, connecting the cluster, obtaining a preliminary milk sample, milking out, post-dipping and removing the teat cups.”

Each individual stall will have all the necessary equipment for each task. The inside of the teat cups are disinfected in between each cow milking, as the external components are also cleaned.

“The unique feature of the milking stall module is the complete automation of the process with one comprehensive system,” said Maguire. “The milking process is fully-automatic at each milking stall, and also permits free access to the animal and the udder at any time in the continuous milking process.”

Each individual robot is controlled by a central computer and using the new software, operators can follow each individual cow on the main display. DairyProQ is linked to GEA Farm Technologies’ Herd Management System DMS 21 and GEA Cow View.

After removal, every liner is automatically sanitised. Within 20 seconds of the end of milking the cluster is ready for the next cow.

The ADF milking system can be installed in any type of dairy shed, new or existing.

Now’s the time to get a special price on mid-sized tractors from Case IH. And, with our 3.9% p.a. finance offer,* talking to your local Case IH dealer about a tractor to suit your needs could really pay off. Visit www.caseih.com for more information.

check out some of these special retail prices available before 31st May 2013:

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*Terms and conditions apply. Special retail prices at participating dealers on selected models until 31st May 2013 or while stocks last. Advertised prices do not include GST. Photographs are for illustrative purposes only and may show features or accessories not included in the advertised price. Tractor prices vary by model and specifications.

Finance is provided by CNH Capital to approved business applicants only. Advertised finance rate based on 30% deposit, 36 months, annual or monthly repayments. Special prices and finance rate may be available on tractor models not specified in this advertisement. For more information talk to your local Case IH dealer.

• 4WD

Dairy News AUSTRALIA march 2013

34 // machinery & products

Front loader factory fitted Marc Smith, New Holland, territory manager, Western Victoria, with the TD5 90 at last month’s Sungold Field Days. The TD5 90 is an entry point tractor retailing at $62,000 plus GST.

The new New Holland TD5 range features an upgraded, brand new 8000 Series engine, offering farmers both greater power and excellent combustion efficiency.

The company says the powerful new Tier 3 engine brings out the maximum in tractor performance while at the same time boasting lower fuel consumption and minimised exhaust emissions.

The VisionView cab features improved 360-degree visibility, greatly reduced noise levels and ergonomically redesigned controls. The entire TD5 range can be specified with either two or four wheel drive axles. The two wheel drive option offers a tight 3.9m turning circle, perfect for traditional farms with tight yards.

The rhythm of life

The four wheel drive variant is still nimble, with a 5.5m turning diameter.

A special feature offered on the TD5 Range is the new Powershuttle, which enhances precision loader work.

The company said this is perfect for livestock applications, offering smooth direction changes and increased productivity.

New Holland has developed its own front loader from scratch, in-house, specifically for the new TD5 range. The loader has a curved boom for increased precision and reduced losses.

The loader’s low mounting brackets guarantee exceptional forward and downward visibility, both when the loader is mounted or when it has been removed. Moreover, the low mounting points have lowered the tractor’s overall centre of gravity, which improves stability when transporting full loads in the fully extended position.

The high visibility roof panel has been engineered to offer farmers the perfect view of your loader at full extension. Operators have a perfect view of the bucket from ground level to full lift height.

Visit www.newholland.com for your closest dealer.

Paul Holdaway, tractor product specialist, Landpower Melbourne, with the new Claas 600 series tractor.

New Claas tractors debut at Sungold YOUR OWN RHYTHM With the Lely Astronaut milking robot every cow has its own rhythm. They can decide whether they would like to eat, rest, or be milked. That gives you the flexibility to manage your own time without fixed routines.

For more information, visit www.lely.com

Evolve. www.lely.com Call Now (03) 5484 4000

TWO new Claas tractors were shown in Australia for the first time at the Sungold Field Days last month.

Claas launched the Arion 600 (six-cylinder) series and Arion 500 (four-cylinder) series tractors, which are built with John Deere Power Systems engines.

The Arion 500 and 600 series tractors have the same controller technology, drivestick and precision agriculture systems offered in the high-powered Axion tractors, but for farmers seeking lower-power machines, in the 104137kW (140-184hp) range.

The CEBIS controller is offered as an optional upgrade for the Arion 500 or 600 or the basic model has a lower level CIS controller. The Axion 900 can be factory-fitted with dual wheels, front and back.

They also include a four-point cab suspension for added comfort, the only tractor in the market to do so.

The new Claas tractors were displayed at the field days on the site of the new Claas Harvest Centre Warrnambool, which was set up late last year.

The Claas Harvest Centre works in conjunction with Landpower Colac.

The centre stocks Claas and Amazone products, including the two new Claas tractors.

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