Dairy News Australia May 2016

Looking beyond the blame game. PAGE 20 SAFETY PUSH Warning to all farmers PAGE 6

WESTERN HIGH WA dairy confident to invest PAGE 13

MAY, 2016 ISSUE 69 // www.dairynewsaustralia.com.au

DECISION TIME Farmers forced to make tough choices as Murray Goulburn milk price shock ripples through the industry . PAGES 4-5

A NEW generation of variable balers...

THE LELY WELGER RP 160 V SERIES MEETS ALL YOUR NEEDS! The NEW Lely Welger RP 160 V series of balers are the most versatile balers yet!

Contact Lely Australia TODAY on 1300 964 306 or visit our website www.lely.com.au, or contact your closest Lely dealer for more information.

www.lely.com.au

innovators in agriculture

SKIOLD DISCMILLS • More utilisation out of your grain!

• Mill pinched or small grain • Mill two or three different grains at once • Quiet operation • Easy to adjust grinding degree • Minimum maintenance • Exceptional durability on wearing parts • Low power consumption • Capacity up to 12 t/h • No V-belts or chain drives • Two grease nipples one pump every 500 hours • Tried and approved by Australia's best farmers!

• European quality and manufactured

CALL US FOR MORE INFORMATION! CONTACT: Phone: 0755 477 588 martin@vacmillsolutions.com.au

& SKIOLD & Vacuum Milling Solutions • www.vacmillsolutions.com.au

DAIRY NEWS AUSTRALIA MAY 2016

NEWS // 3

Keen on green Green pastures from some early Autumn rains were a welcome sight to visitors at this year’s Dairy Innovation Day at Elgin Dairies in Boyanup, Western Australia on April 28. Owners Darren and Sharon Merritt showed how they are investing with confidence in the future of WA dairy. See page 12-13

Farm World fun.

PG.16-17

Qld farm eyes three million litres.

PG.22-23

Breathing space for Murray Darling farmers RICK BAYNE

Warning on antibiotics use.

PG.30

NEWS �������������������������������������������������������3-11 AROUND THE REGIONS �������������� 12-17 OPINION ����������������������������������������������18-19 MARKETS ������������������������������������������ 20-21 MANAGEMENT �������������������������������22-24 ABVs ���������������������������������������������������� 25-29 ANIMAL HEALTH ���������������������������30-31 MACHINERY & PRODUCTS �������������������������������������� 32-34

FARMERS IN the Murray Darling have received some much needed good news, following the recent meeting of the Murray–Darling Basin Ministerial Council.

“The changes they’ve announced are in line with what industries have been asking for,” chair of Australian Dairy Industry Council (ADIC) Basin Taskforce, Daryl Hoey, said.

“It will give us more breathing space to allow adjustment packages to be better measured and laws to be considered over the 12 months.”

The council reached agreement on key areas that will provide for a second sustainable diversion limit (SDL) adjustment step by June next year, and to consider a range

of projects to improve outcomes.

It is expected the agreement will deliver a significant reduction in the water recovery needed to achieve Basin Plan outcomes.

There are also moves for a wider range of complementary projects, such as carp control, to provide triple bottom line benefits under the Basin Plan.

Projects are expected to be completed over the next eight years, providing a welcome boost to regional economies and the health of the Basin’s rivers and to meet stakeholders’ expectations of the SDL adjustment.

Ministers on the council agreed on the principles that would guide the implementation of the SDL adjustment package Mr Hoey said the best thing about the announced changes was

the emphasis on socio-economic impacts.

“It shows the socio-economic analysis needs to be done, which we’ve been saying for a long time,” he said.

“We need to look at the affect the plan is having on communities and farmers in the Basin and we finally appear to be getting some traction there.”

Mr Hoey said it was pleasing that authorities were listening and “keeping the politics out of it”.

“They’re trying to find measures and different rules around water and regulations to achieve the goals; a while ago states would have been very parochial saying there’s no need to change and it’s everybody else’s fault.”

The changes are welcomed good news for many dairy farmers across

the Basin who dealt with a long, dry summer.

The changes mean water can be secured by means other than the government going into the market place to purchase it, Mr Hoey said.

“If we can get the same environmental outcome with less water by running the river differently, putting in different regulations or technologies, or changing the rules about how water is used between states and accounted for, then that’s all positive because less water will be taken out of the consumptive pool and farmers will have more water to compete for and use.”

So far only 15 of the 37 nominated supply measures have been modelled, which have an estimated SDL offset of 370 gigalitres.

JANTEC ELECTRONIC HERD IDENTIFICATION

PREMIUM QUALITY MILK CellSense is the answer.

Automatically identify cows with high cell count.

(03) 5222 8891

www.jantecsystems.com.au

DAIRY NEWS AUSTRALIA MAY 2016

4 // NEWS

MP calls for heads to roll RICK BAYNE

A SOUTH West Victorian MP says

heads should roll from the Murray Goulburn dairy co-operative board.

Member for South West Coast Roma Britnell has called for resignations from the board over what she described as “a budgeting debacle” that has left local farmers furious.

However, Mrs Britnell has stopped short of calling for a total spill and said that continuity was needed to steer the company back on course.

At the same time Mrs Britnell, who is also a dairy farmer and Murray Goulburn supplier at Woolsthorpe, has urged suppliers to stick by the co-operative for the long-term good of the dairy industry.

During a supplier meeting at Camperdown, Mrs Britnell made her call for the board to be held accountable for not letting suppliers know earlier about problems in meeting targets.

“It is devastating news two months before the end of the financial year and the buck stops with the board,” she said.

“They should have called it when the international market was plummeting. The market was telling us it needed to be done but MG was telling us they had the value-added capacity to work through it.

“I’m calling for resignations of board members who have been there long enough to know better and should have acted earlier to alert suppliers. They now need to do the right thing and resign.”

Mrs Britnell would not specify names and numbers but did single out non-farmer member Peter Hawkins who has been chairman of the Finance, Risk and Audit Committee since 2009.

“We don’t need to spill the board

“This is a long-term investment and cause chaos,” she said. “We still need steady hands and continuity to despite the short-term pain,” she said.

Two MG board members have steer the ship back on course, but the ones who’ve been through this before aleady resigned since the April 27 announcement. need to resign.”

Gippsland dairy farmer Max JelMrs Britnell said elections would be needed in regions where there bart has departed due to poor health, are resignations “so the people can while director Kiera Grant, who was appointed to the decide”. board just seven “The Western Vicweeks ago and had torian election proplanned to stand for cess might be where election at the next everyone vents but annual general meetI’m not convinced ing, announced her all the members out exit on May 3. of Western VictoManaging director ria need to go,” she Gary Helou and chief added. financial officer Brad Mrs Britnell said Hingle announced she had been inuntheir resignations on dated with calls from the same day as MG angry farmers in the MG chairman Philip Tracy. cut its milk prices. past few days.

MG chairman, Philip She said the company’s value-added strategy was heading Tracy said he believed history would in the right direction but MG needed judge Mr Helou as a visionary leader to modernize and grow the capacity of who delivered a strategy that has farmers to increase the pool of poten- transformed the industry.

“Gary has made a significant contribution to MG and has been “The buck stops with a powerful driving force behind our transition to become a globthe board.” ally recognised, ASX-listed food business.”

Mr Helou said: “While maintaining this price has proven to be diftial board members.

However, she maintained that ficult in current market conditions, I dairy farmers need a co-operative and firmly believe MG has the foundahoped suppliers would stick with MG. tions in place to support a strong “Farmer control and working col- and successful business in the years lectively to ensure we have market ahead.”

MG management and board were power is very important,” she said.

“We need to remember where and facing suppliers across Victoria last how the milk price is determined. If week, and will be in Tasmania on we continue to have a farmer-owned Tuesday (May 10).

Meetings in NSW and SA were still company we will have input.”

As a farmer, Mrs Britnell said she to be advised at the time of going to and her husband Glenn were remain- press. ing with Murray Goulburn.

Burra Foods holds price but not incentive MADELEINE BRENNAN

IN THE wake of the Murray Goulburn

announcement, Gippsland processor Burra Foods confirmed it will hold its base farm gate milk price, but would “likely struggle” to pay the Burra Supply Incentive (BSI).

Poowong farmer and Burra supplier Luke Wallace told Dairy News he was disappointed the supply incentive would not be paid, and will cost his business around $22,000.

He said the dry season has forced him to buy in more hay, the recent bill of which was $12,000.

“What annoys and frustrates me about this is that why do Burra wait until now, after the MG news, to then come out and tell us that they it’s unlikely they will pay the BSI? “They would already have to know that was going to be the case, so why not come out two, three, four weeks ago?”

“It’s just an excuse to pull their price back, because they only have to compete with them (MG).”

Mr Wallace said it was not just Burra Foods “but all the processors who seem to follow MG on price when they should be acting as independent businesses”.

“Why do they set their price on someone else’s business?” he said.

The news came as Burra Foods told suppliers last week it had sold a majority stake of the business to a Chinese company, subject to foreign investment review board approval.

Inner Mongolia Fuyan Farming Co Limited will be the majority shareholder following a 12 month strategic review, the company said.

“While we received a number of quality proposals and comprehensive offers, interestingly none from

Dairy-Tech Refrigeration Registered Packo Dealer Australia

The dedicated milk cooling specialist • A Packo milk tank and system to suit all herd sizes, pick up schedules, and entry temperatures • Simple one button operation to activate either cooling or wash modes • Packo’s Patented fully automatic Rotojet cleaning system, ensures every square inch of the inside vessel is clean and hygienic.

• The choice is yours- Direct expansion or a glycol chilling tank • Pre, instant cooling systems available

New & Secondhand systems / Wash system upgrades for any make-model tank Call Dairy-Tech Refrigeration today for a no hassle quotation

Phone 03 56623277 email pgoiris@dairytechrefrig.com.au Web www.dairytechrefrig.com.au

an Australian based business, this agreement will best match our key objective of enhancing market access and raising additional capital to fund the continued growth of our Korumburra processing facility,” the company told suppliers.

The majority shareholder in Fuyan is China Mengniu Dairy Co Ltd, a dairy manufacturer and distributor listed on the Hong Kong Stock Exchange.

Burra said the capital injection would help it achieve its long-term growth strategy to increase production from the current 60,000mt to 100,000mt per annum by 2020.

Existing shareholders including Burra Foods’ founder, Grant Crothers and Japanese dairy distributor, ITOCHU Corporation have maintained a combined 21% interest in the company with Mr Crothers continuing in his role as managing director/CEO. “The new shareholder structure will provide Burra Foods with vastly improved access to new high value milk and nutritional powder markets, facilitating low risk growth up the value chain, and access to additional capital,” Mr Crothers said in a media statement.

“We have always been about maximising value from the milk solids we collect and process and have taken a very cautious approach to China, appreciating the significant risks that come with the increasing opportunities available.

“There are only winners in this deal as the new structure enhances the future for our loyal milk supply partners, provides ongoing employment for our dedicated staff, while ensuring increased and stable supply to our existing customers whether they are located in Australia, Japan, China or other parts of the world,” he said.

DAIRY NEWS AUSTRALIA MAY 2016

NEWS // 5

Price shock could signal last straw ria (UDV) estimates the decision will cost the average MG supplier between $127,000 and $150,000 over the next FARMERS ARE revisiting their books three years if milk prices remain around and considering their future after pro- the current level.

MG supplier from Kerang in Viccessor Murray Goulburn’s (MG) shock decision to slash its milk price last toria’s north, Andrew Leahy , said the decision will see some farmers in the month.

Fonterra has also followed in their district leave the industry.

“I wouldn’t be surprised if we had a footsteps, announcing a step down $5kg/MS as Dairy News went to press 10% shake-out across northern Victoria,” he said. last Thursday.

UDV president Adam Jenkins is not The industry is left reeling after MG cut the current season milk price by 15% prepared to predict the number of farmand told suppliers they would receive a ers that will leave the industry, but said depressed payment for the next three it is important that people make decisions early. seasons.

“It’s a major disappointment and a MG blames the downgrade on a financial shortfall of up to $200 million disruption in the whole dairy industry,” caused by the appreciating Australian he said.

“People are still coming to terms dollar and weak international demand.

The United Dairyfarmers of Victo- with what that means for their busi-

CAMERON WILSON

ness, for our industry, and with what that means in terms of being able to fill current markets.”

He encouraged farmers to take stock and not to panic.

“Take a step back, take a breath, look clearly at your business … If people choose to leave that’s their choice and we should admire those people that have made the choice sensibly to exit with their head held high.”

Mr Leahy said the timing of the announcement left farmers with few options to mitigate the financial damage.

He estimated it will wipe in excess of $100,000 off his business, sending a predicted break-even season into the red.

“By cutting the price so late in the season we’d already committed to what we are doing, it’s all done,” he said.

GM PASTURE: Proc

essors say no PAGE 4 PARTNER FARMS

Sharing knowledge PAGE 25

NEXT GEN

Pasture focus lifts stocking rate PAGE 26

MAY 2015 ISSUE 58 // www.dairynew saustra

lia.com.au

BIG CALL MG

forecasts final 2015/16 price of $6.05/kg but can it be done?

PAGE 5

A year ago Murray Goulburn were talking up prospects for a $6.06kg/MS.

“We would have done things a bit Get a Great Deal On Your New the Manure Spreader Tod suppliers, differently, maybe sold a ay capacity of other processors to accept few more cows.

“We just bought 100 ML of water, more milk and the ultimate impact on total milk supply will take months to probably wouldn’t have done that.” www.landaco.com.au Freecall: 1800 358 600 Mr Leahy has supplied MG since determine.

“The million dollar question is 1983, prior to that his parents supplied ‘what sort of ripple effect is this going the cooperative.

He said previously loyal MG sup- to have’?”

“If this is a 12 month cycle well and pliers are now considering looking to good, but if this takes us into a three other processors.

“I’ll be straight up, I rang one of the year cycle (of depressed milk prices) other companies to see if they were then you would think there will be a fairly substantial rationalisation in our taking people,” he said.

Mr Jenkins said the movement of industry.”

60TVA

75TVA

90TVA

150TVA

*stock available for immedia

te delivery

Fonterra follows MG lead Pellett said.

Managing director Fonterra Oceania Judith Swales said the price change reflected the reality of the supply and demand imbalance that is affecting global dairy commodity prices, compounded by the recent

FONTERRA SUPPLIERS are reeling after the

company announced the full 2015/16 season price will be reduced from $5.60 to $5 kg/MS. It has also announced a support loan up to 60c per kg/MS that is repayable from 2018 onwards, so farmers can receive an equivalent of $5.60 for the challenging current season.

Woolsthorpe supplier Linda Roache said she was bitterly disappointed by the cut but said it was expected.

“If they were going to hold they would have come out last week and said that so this was expected, but we’re still not happy about it,” Mrs Roache said.

“It’s an 11th hour call; we’ve already made all our decisions and spent all our money. It makes everything that much harder.”

Mrs Roache said farmers would struggle even at $5.50 in the current conditions.

“Five dollars will hurt; there’s no doubt about that. It’s a tough year; we’ve had to buy water to wash our dairy because there’s been no rain for our catchment.”

However, Mrs Roache hoped the price drop wouldn’t be backdated. “It

Tony Marwood

says nothing about being retrospective so it could have been a lot worse, but it’s still bitterly disappointing,” she said.

Bonlac Supply Company director and Gippsland farmer Aubrey Pellett said the price reduction was an unfortunate commercial reality.

“It’s unfortunate; nobody wanted it to come to this but the milk price now reflects much more closely a return.

Mr Pellett said the price meant farmers would have to do some tough budgeting.

Despite the price drop they will be able to access the cash they were expecting this season in the form of a loan.

“Fonterra recognises next year is likely to be tough so as a farmer I’m grateful no repayments are required next year,” Mr

strength of the Australian dollar.

“The reduction in the farmgate milk price is the last thing farmers want to hear – however, it is unlikely to come as a surprise.

“With around 40% of Australia’s milk exported,

our ongoing message has been that Australia is not immune to the global dairy challenges, that the milk price did not reflect current reality and that farmers need to budget conservatively.”

Bonlac Supply Company (BSC) chairman

Tony Marwood said while the price reduction would be tough for Fonterra’s suppliers, Fonterra has acted responsibly throughout the season.

“We know that Fonterra has done all it can to send the right price signals and keep suppliers

informed. While today’s news will be difficult, it is good to see that Fonterra is showing its ongoing commitment to its Australian suppliers with the short term support and, importantly, longer term commitment to paying market returns.”

DAIRY NEWS AUSTRALIA MAY 2016

6 // NEWS

Farmers ‘heads in the clouds’ CAMERON WILSON

COLIN GRAY is in the

kitchen of his Gippsland home when we meet, sitting in the motorised wheelchair he’s been confined to since a farm accident nearly five years ago.

He’s dressed in jeans, a polar fleece and an open neck shirt revealing the tracheostomy tube in his neck.

He ’s wearing a cap with the logo of a local pasture seed company.

“Do you want to shake hands, I can still shake hands,” he says.

Colin is paralysed from the chest down.

It’s taken him three years of daily exercises and regular therapy to develop the grip in his right hand.

“The biggest thing

about my accident was losing my finger use,” he says. “When you look at farming you use your fingers every day, and I lost all that.”

He can now pick up a pen, do the farm bookwork and, significantly, he has the strength to drive his modified car.

With ingenuity and determination he’s also found ways to get through some basic daily tasks.

“For shaving myself I have a bit of milk tubing on the handle and I worked out a way of applying the shaving cream,” he says.

“For feeding myself I have the same thing, a spoon with a bit of milk tubing on it. “But don’t get me wrong, I still need help.”

The kitchen window looks out over the

SOME USEFUL HEALTH AND SAFETY RESOURCES: ■■

Farm Health and Safety Overview Checklist www.thepeopleindairy.org.au Asks 15 yes/no questions to provide a starting point for working out what you need to do to make your farm safer.

■■

Safety Protocols Template www.thepeopleindairy.org.au A 5 page list of safety protocols that can be included in an employee induction kit and modified to suit your farm.

■■

Farmer Safety Shop www.farmerhealth.org.au/shop A place where you can buy approved safety equipment and personal protective equipment (PPE) from a trusted source at a fair price.

■■

Safety of Quad and Side-by-Side Vehicles on Australian Farms www.farmsafe.org.au A practical management guide which includes 10 principles for quad and sideby-side vehicle safety on farms

■■

Stress Tool www.farmerhealth.org.au/health-centre/ stress-tool Practical tips on managing stress during challenging times.

Gippsland farmer Colin Gray, pictured with daughter Robyn Mitchard, is paralysed from the chest down following an on-farm accident nearly five years ago.

PICTURE: CAMERON WILSON.

paddocks where his Dad taught him to farm.

It’s the same Warragul property where he milked cows for 45 years, and the place where he and his wife Jenny raised their two kids.

Prior to the accident, at Jenny’s insistence, the couple were preparing for semi-retirement.

There were plans to travel Australia with a camper trailer, picking up contract work along the way.

The share-farming agreement they had entered into would see Jenny and Colin free to spend more time away from the 220-hectare property and its 275-head milking herd.

Colin doesn’t go into detail about the accident in late September 2011 that dramatically changed those plans.

He reveals that it happened during a quiet time on the farm.

Calving and joining was done and Colin was turning his mind to his daughter Robyn’s

in intensive care followed, accident,” Jenny says. imminent wedding.

“In the morning you then 16 months of He also reveals the just can’t get up and get accident involved a tractor rehabilitation in hospital. out of bed, it just doesn’t It was a further 12 and machinery. happen that quick. months before the “I don’t actually know “His morning care is couple’s home was what happened exactly,” about three hours from modified so they could he says. when he gets up to when return.

“I’ve looked at the he’s sitting in the chair.

The emotional and situation about 20,000 “The requirements of times and to this day I still mental recovery took even each day before you even can’t tell you exactly what longer.

“Jenny made me a bit of look at the farm are quite happened.” taxing.” a diary and it took me two Colin was left laying The financial cost is on his back for almost five years before I could read taxing too. it,” Colin says. hours after the accident, The home “There are cards the C5/6 spinal injury modifications, the new that I’ve never opened, meaning he was unable to bed and hoist, the car it’s just one of those answer the phone ringing in his pocket with calls from “I think the ordinary people, the friends and ordinary farmer, they don’t understand family, worried after he’d failed the implications of a serious accident.” to come home equipped for a wheelchair, things. It took me three for lunch. plus the host of machinery years emotionally and Later that afternoon and technology now psychologically to accept Jenny discovered her needed to keep Colin it.” husband.

For Jenny these are the alive and comfortable He was taken by in his home cost about consequences farmers helicopter to Melbourne, don’t see, the true costs of $500,000. Around-thehypothermic, severely clock care is $300,000 a injured and close to death. a farm accident. year.

“I think the “I said to my brother, Those costs are partly ‘I’m stuffed’ as they loaded ordinary people, the covered by insurance ordinary farmer, they me in the chopper,” Colin and the TAC, a critical don’t understand the says. financial contribution that implications of a serious Three separate stints

is only available because Colin’s tractor had current registration and insurance.

“I think people need to understand the implications of not spending $70 a year on motorbike registration or $80 a year in tractor registration,” Colin says.

Looking back, Jenny and Colin agree they could have been more diligent with farm safety.

Not that they were careless. The ATVs were fitted with roll over bars, equipment was well maintained and there were clear rules to keep visitors and workers safe.

They were experienced, innovative and successful farmers.

“To say I was doing anything stupid, well I wasn’t. I’d just say I was in the wrong place at the wrong time,” Colin says.

“I think farmers walk around with their heads in the clouds. They are naive to the implications, the cost and the consequence of an accident.”

Manure Spreaders, Stirrers & Mixer Wagons

Vacuum tankers up to 2,500-30,000L

Solid Spreaders 8 to 24 cubic metres

Tatoma Mixer Wagons 6m3 to 45m3

Talk to the MIX & MUCK experts Tom 0419 851543 | muckrunnerptyltd@hotmail.com | www.pichonindustries.com

DAIRY NEWS AUSTRALIA MAY 2016

NEWS // 7

Call to action on dairy’s high injury and death toll Norton said fostering a culture of safety was the responsibility of everyone on staff and started with THE DAIRY industry identifying the worst must abandon its ‘she’ll hazards first. be right attitude’ to “An OH&S plan is safety if it is protect its important but it doesn’t workforce and attract need to be a thesis,” he new participants to the said. “It needs to focus on industry. the things that are going Speaking at the to cause the greatest harm Australian Dairy Industry Council’s annual business to your people and then support them to be able breakfast in Melbourne to work through fixing on April 14, chair Simone those.”

Jolliffe said with two Fonterra field services deaths on dairy farms area manager Robyn in 2016 so far, and 39 Mitchard said it was a deaths between 2001 and liability if farm bosses 2013, a culture shift was only had information in desperately needed. their head and not written “We cannot go on like this,” she told the audience down.

“You’ve got to be able of farmers, processors and to extract a lot of the industry representatives. things at an operational Research undertaken level so that someone else by the Australian Centre for Agricultural Health and in the business knows Safety showed there was a what’s going on,” she said.

“If you are out of serious incident on a dairy farm every day of the year. business through an injury, or even worse, a “There are about 340 death, someone needs incidents per year, and to be able to that’s a continue the very much operation.” understated “There are Mrs Jolliffe figure,” about 340 said protecting said Dairy incidents the mental Australia’s and physical program per year, wellbeing of manager and that’s a the workforce for industry very much is a “top workforce understated priority” for planning ADIC, working and action, figure.”

Bill Youl.

– Bill Youl across the supply chain Mr Youl and with said the external injury toll partners. presented a loss of up to This was especially $12 million every year, but important in difficult the real driver for united seasons when concerns industry action should be around costs were high. that people, including the “Across the board children living on farms, dairy is facing challenging were getting injured or times,” chair of the killed.

“We are hurting people, Australian Dairyfarmers’ people and human we don’t want to do, capacity policy advisory no-one wants to do that,” group John Versteden said. he said.

“Whether it be due to Mrs Jolliffe highlighted the need for more farms to unpredictable weather and drought, or volatile have formal occupational commodity prices, health and safety (OH&S) protecting our people plans – and for those that and being vigilant about do to act on them. their safety becomes more “We must move from timely than ever before.” the knowing to the doing, He said it was not assessing risks where appropriate and rectifying only the right thing to do, but could benefit farm the situation.” businesses in positive Lion’s leader for safety ways. and well-being Josh MADELEINE BRENNAN

“It encourages teamwork, a caring environment and ensures that our people are as productive as they possibly can be.”

He said there industry needed to work harder to drive the uptake of health and safety resources, such as those already available through Dairy Australia.

The Dairy Industry’s Sustainability Framework has set a target of 100% of on-farm and manufacturing workers to have completed OH&S training by 2020 and zero workplace fatalities.

Mrs Jolliffe said the industry is falling behind on both accounts.

– Quad bike helmet review, p.33

Quad bikes continue to be the leading cause of death and serious injury on Australian farms, outranking tractors.

AUSSIE SUPER COMBY ›› Square Bales ›› Round Bales ›› Silage

Side Feed 2000 Wagon

Super Comby EX

NEW SUPER AUSSIE COMBY DESIGNED SPECIALLY FOR AUSTRALIA CAPABLE OF CARRYING 8 FOOT BALES ACROSS THE FLOOR Other models also available Contact ALLAN WILKINSON 0400 260 540 | allanapw@gmail.com

Robertson building Feedout Wagons since 1977

DAIRY NEWS AUSTRALIA MAY 2016

8 // NEWS

Cow loan scheme to help new entrants RICK BAYNE

LIKE MANY dairy farmers, Damian Murphy

started building his asset base by buying cows.

Now a couple of decades later he’s initiated a United Dairyfarmers of Victoria campaign to make it easier for the young farmers of today to start building their herd.

The 44-year-old Gippsland farmer says he was lucky to have family backing when he made his first investment in cows, but many others don’t have that luxury.

The UDV policy council has developed a new plan to help young farmers wanting to progress in the industry to buy dairy cows and

overcome restrictive lending policies of the banks.

Mr Murphy, a member of the council, said buying lenders would only finance 25-33% of the value of the cow, substantially less than the usual 80-90% for new machinery.

“If a young farmer wanted to buy a $100,000 tractor they only have to come up with 10% deposit. If that same young farmer wanted to spend $100,000 on cows they would have to come up with $60,000$70,000.”

Mr Murphy said banks had traditionally seen cows, currently costing about $1300 a head, as a fairly risky proposal and there was not much competition for cow loans.

“This is one of the first things young farmers will go for so banks don’t have a rapport with them,” he said.

The UDV believes its new plan could make a big impact on the next generation of farmers and encourage more people to enter dairy.

It will see established farmers act as an unsecured creditor on a young farmer’s cow loan.

The established farmer would nominate a cow or cows in their herd as collateral. The cows would be available in a pool to be accessed for security on a young farmer’s loan but would

Damian Murphy

remain on the established farmer’s farm as part of their herd.

If the bank determines the farmer has the cash flow and skills to raise the herd but not the deposit, it could go to the UDV pool and negotiate to access cows in the pool to cover security for a loan.

Mr Murphy said that with assured collateral and necessary risk checks completed, the loan risk would be distributed 50% to the bank, 30% to the next generation farmer and 20% the UDV. The young farmer would also be assigned a mentor in their region to give advice and assist with making business decisions. They would also make available production data, budgets and cash flow information to their mentor.

If the young farmer defaults on the loan, their assets would be called in first.

“The bank won’t give numbers but the default rates are very low,” Mr Murphy added.

Mr Murphy stressed the cow would stay on the established farmer’s property and only leave if the young farmer defaulted on the loan.

The UDV policy council would initially act as overseers of the scheme but Mr Murphy said the UDV input would be kept to a minimum to reduce administration costs.

The scheme is now moving to the legal stage to establish the trust.

The idea came from Mr Murphy’s own experiences and his 2012 Nuffield Scholarship study into young farmer finance schemes.

“I guess it was my spark but it’s been the forward thinking of the UDV policy council that allowed it to progress and be refined to the point where the banks are now really keen on it,” he said.

Mr Murphy started as an employee on his parents’ farm near Leongatha and has been on the property for 16 years.

He says the industry is well placed to welcome newcomers.

“We’re lucky in dairy,” he said. “In the past five years there’s been a resurgence of the industry image and agriculture in general and the amount of young people who’ve become involved. We need to leverage off that and make the most of it.”

Mr Murphy said other countries had finance and tiered loan systems that better supported young farmers to buy cows.

UDV president Adam Jenkins the scheme would give the next generation of farmers a start while giving more established farmers a chance to give back to the industry.

“It’s a good opportunity and sets up things for the future,” Mr Jenkins said.

Next gen given better access to UDV THE UNITED Dairyfarmers of Victoria is preparing for the next generation of farmers with a program to introduce newcomers to the industry decision making process.

The UDV will appoint two ‘next generation farmers’ from each district to attend all policy council meetings.

They won’t have voting powers but UDV president Adam Jenkins said they would learn from the experience and help the industry to better understand the needs of emerging farmers.

“We have scholarships and other programs but we need to do better in providing the next generation with an opportunity to be engaged,” Mr Jenkins said.

“We need to understand what’s important to their business.”

Mr Jenkins said the program would provide a platform for managers, employees and share farmers to be involved in policy debate.

The scheme is believed to be unique within farming organisations.

“I know different boards have associate directors for the younger generation but I don’t know of any in the agricultural field,” Mr Jenkins said.

The program is aimed at not only young people but more mature farmers who have recently entered the industry.

“When you’re advocating you want to understand what is affecting people who’ve just entered the industry,” Mr Jenkins said.

“They will have a different outlook to someone who’s been in the industry for 50 years and not far off retiring. It’s good to gauge both ends of the spectrum.”

There will be no age limit on the program. The policy council meets 8-9 times per year.

Mr Jenkins said under the scheme young farmers who are not official paid members of the UDV could deliver industry issues from and to members and other farmers within their districts.

1300 767 596

info@onfarmsolutions.com www.onfarmsolutions.com

Reduce teat spray usage!

EFFICIENT & AFFORDABLE

AND FOR THE HERRINGBONE...

Better than a manual teat sprayer and no labour unit. Two nozzles deliver highly accurate bursts of teat spray.

• Reliable and durable

• Labour saving device • Highly accurate • Low teat spray usage The original Teatwand 400 remains in the product range.

• Optimal droplet size • The better alternative Distributor for:

Dairy Equipment Co Ltd

DAIRY NEWS AUSTRALIA MAY 2016

NEWS // 9

Young farmers look to the future JEANETTE SEVERS

YOUNG DAIRY farmers

will need to be more business and technology savvy than their predecessors, and be willing to move around to pursue the best opportunities and partnerships.

That was the message from a range of speakers at the inaugural young farmers conference at Lardner Park’s Farm World in Gippsland last month.

The diverse agenda included succession planning, virtual fencing, support networks for career success, the importance of agricultural production to Victoria’s economy and mental health.

Farmer and University of New England researcher, Zac Economou, spoke about the possibilities and limitations of virtual fencing, using collars on livestock to remotely graze animals.

While the possibilities were virtually endless, the research had been fairly limited; and global animal welfare activism could limit its adoption.

“Sheep and cattle are fast learners – a couple of hours into the trial, they’ll stop pushing against the boundary with a 100% success rate. As far as production benefits, it is the holy grail of rotational or strip grazing.

“But the research has been on small numbers of livestock grazing on small land areas or in barn systems in Europe,” Mr Economou said.

“There needs to be a lot of adaptation for Australian livestock farming systems.

“Overseas, there are significant concerns about the electric charge zapping the animals and in Australia legislation varies between states.

“While there’s a perception of risk, people will think it is a very risky system to take on.”

In Australia, technology to support this and other systems was also an issue.

“There’s an over-promotion of wireless products – it needs to be robust, needs to have

compatibility with handheld devices and how long the battery in your phone or tablet works for,” Mr Economou said.

“So solar powered charging devices using remote GPS could work; you don’t want to be taking all collars off your cows and hanging them up to charge.

“And, the bottom line, it needs wireless connection to work – which we know is not possible in a lot of rural Australia.”

The future of dairy was larger farms, employing more people in a range of modalities – share farming, joint venture ownership, equity investment and direct employment – according to Shane Hellwege, Dairy Australia.

“By 2025, our growth in milk production will be 11.5 billion litres,” Mr Hellwege said.

“But the number of dairy farms will be reduced; and the average herd size for farms will be mid-high 400s.

“Whereas in 2015, 35% of farms were owner-operator with 49% employees (including owner-operators), that will grow to 60% employees by 2025.

Or, in real numbers, growth from 24,000 now, including owner-operators, to 25,000 employees by 2025, with less owneroperators.”

He said learning needs and skills development would change, with more standardised practices across farms.

This would also make for a more mobile workforce.

“There will also be a growing need for high level technical and business management skills,” Mr Hellwege said.

Dairy consultant John Mulvaney said the historic concept of normal farming should be “buried and dead” – especially that of owning land in order to build a capital asset.

“Land is so expensive. Australians need to become open to variable equity ownership schemes that already work overseas, in Britain and New Zealand. It’s possible to own a herd and mobile plant in 4-5 years, with-

out owning land,” Mr Mulvaney said.

A panel of young farmers offered frank advice on building succession planning into daily operating and business management systems.

Allowing the younger operatives to make mistakes was a common thread.

Separating each partners’ business within the overall strategy also helped.

Damian Murphy, Stuart Jennings, Robert Bayley and Tim Paulet speaking at the conference. Photo: Jeanette Severs

Water is the lifeblood of the farm You need a high quality steel tank you can rely on

RECEIVE A FREE TANK LEVEL GAUGE when you purchase a tank of over 60,000 litres.

T & C’s apply. While stocks last.

Tankworks water tanks are 100% galvanised construction with a true corrugated profile, configured to suit your specifications and requirements and placed exactly where you want it.

24,000 to 378,000 litre capacities Choose your own colour from our range Full on-farm installation service 20 year construction and anti-corrosion warranty Available direct from Tankworks or through selected resellers Phone us today to start creating your own steel water tank

1300 TANK 4U 1300 826 548 www.tankworks.com.au/rural

DAIRY NEWS AUSTRALIA MAY 2016

10 // NEWS

Budget delivers modest wins to develop ag sector FEDERAL TREASURER Scott Morrison delivered a modest, mostly positive Budget for the Australian agricultural sector in last week’s Federal Budget, with small businesses set to reap the rewards, according to WAFarmers president Tony York.

Key agricultural highlights include a tax cut for small business, an increase in the unincorporated small business tax discount, $15.9 million over four years to build an advanced analytics capability to support biosecurity and a new National Water Infrastructure Loan Facility.

“For the most part, we are happy with the modest gains for the agricultural sector delivered in the 2016 Federal Budget,” Mr York said.

“Agricultural competitiveness, infrastructure and transport, tax, public finance and small business, and water and natural resource management were all addressed.

“Small businesses in particular are set to reap the rewards – a 2.5 per cent reduction off company tax rates (from 30 per cent to 27.5 per cent) from 1 July this year for companies with an annual turnover of less than $10 million is quite significant.

“Additionally, the increase of the unincorporated small business tax discount from five to eight per cent from 1 July 2016 for small businesses with a

turnover of less than $5 million, plus the streamlining of GST reporting for businesses with a turnover of less than $10 million will present greater opportunities for growth.

“We also warmly welcome the Federal Government’s injection of $15.9 million over four years to develop an advance analytics capability aimed at better targeting biosecurity efforts, which will safeguard our valuable agricultural resources against threat.”

Mr York said the 2015-2016 Federal Budget saw gains for the agricultural sector with the announcement of the $4 billion Agricultural Competitiveness White Paper, and that this year’s gains would build on those.

Though largely pleased with the results, Mr York acknowledged there was a glaring hole in the Budget.

“The Budget did not include any changes to the proposed increase in tax payable by backpackers, despite fierce campaigning from key industry stakeholders, including WAFarmers,” Mr York explained.

“By neglecting to apply recommendations from industry to the proposed backpacker tax, we believe the government has seriously jeopardised the future of the Australian agricultural sector, among others. It is definitely a failure on their part.”

DAIRY NEWS ON THE GO CHECK OUT THE LATEST NEWS AND INFORMATION AT

Ag fund offers hope VICTORIAN DAIRYFARMERS

want to tap into a $200 million Agriculture Infrastructure and Jobs Fund to upgrade the state’s power supplies.

The United Dairyfarmers of Victoria moved a two-pronged motion at its annual conference to call on the State Government to take responsibility for funding a comprehensive upgrade of power lines and to advocate to Infrastructure Victoria to explore upgrading energy sources in the south west dairy region by tapping into the $200m fund.

The move was prompted by Tyrendarra farmer Bruce Knowles (as highlighted in last month’s edition of Dairy News).

Mr Knowles, (pictured above), welcomed the support.

“It’s a very good result and I think it gives us a good chance to get something done,” he said.

The UDV wants SWER and single phase lines supplying dairy farms to be converted to three-phase sources.

UDV president Adam Jenkins said inadequate and ailing infrastructure was a widespread problem across the state.

“It’s not just the Tyrendarra area without three phase power; there are patches throughout Victoria,” he said.

“A lot of the infrastructure is getting older and there has been a lack of investment in upgrades so we need to advocate now to make sure we’re staying ahead of the curve when it comes to power.”

The motions were put by the Wannon branch which believes the lack of three-phase power is limiting dairy industry development.

Infrastructure Victoria will be tasked with ensuring Victoria’s immediate and long-term infrastructure needs are identified and prioritised

based on objective, transparent analysis and evidence.

The State Government $200 million Agriculture Infrastructure and Jobs Fund is being established from the lease of the Port of Melbourne.

The Fund will support investment in agricultural infrastructure and supply chains to boost productivity, increase exports and reduce costs so farmers, businesses and industries can stay competitive.

The Victorian Farmers Federation is also expected to debate a motion about infrastructure requirements at its annual conference in July.

Mr Knowles said additional support from the VFF and the general community would prove the need for improved infrastructure.

“It’s not just for dairy; it’s for everyone. If we can show community support I’m confident something will happen.”

Tighter ties with VFF on water issues

www.dairynewsaustralia.com.au Available every month

just look for the arrow!

THE UDV wants to ensure dairy farmer voices are being heard in decision making about water, voting at its annual conference to actively engage with the Victorian Farmers Federation (VFF) Water Council.

President Adam Jenkins said northern Victorian dairy farmers use just over half of the available irrigation water in the Goulburn Murray Irrigation District and produce about 25% of Australia’s milk.

Water policy issues within the VFF are dealt with by the VFF Water Council and the UDV is bound by VFF

policy positions and needs to reflect those positions in representations with media and other public opportunities. Mr Jenkins said the motion was designed to ensure everyone heard the voice of dairy farmers.

“We want to make sure people understand the value of all our commodities to the Victoria and Australian economies,” he said.

“Dairy provides a good economic and sustainable business for the region and water is the biggest issue facing the region, along with the volatility of the market and milk pricing.”

Mr Jenkins said northern Victoria was like many other parts of the state and facing escalating issues from the lack of rain.

The high cost of purchasing water, around $300 a megalitre, is stressing many farms, particularly younger enterprises that don’t have access to permanent water.

“It is pushing the boundary of economics but we hope to get connection programs sorted so $300 a megalitre may go further than before with modernisation of facilities,” Mr Jenkins said.

DAIRY NEWS AUSTRALIA MAY 2016

NEWS // 11

Research bridges gap between raw and processed milk PAM TIPA

NEW ZEALAND

researchers are about to begin looking at how to gain the health benefits of drinking raw milk without risking the pitfalls.

Dr Alison Hodgkinson of AgResearch is partnering with Maori-owned milk processor Miraka to look at producing ‘Growing Up’ milk for toddlers which retains the natural protection of raw milk against allergies.

She says many epidemiology studies in Europe show a connection between drinking raw milk and fewer allergies.

“Surveys of thousands of people have found that farming people who drink raw milk have a lower incidence of allergies – all types of allergies,” Dr Hodgkinson explained to Dairy News.

“It’s not just people on farm drinking the raw milk and getting the benefit; the city dwellers who get farm milk and drink it have reduced allergy risk.”

She says they don’t advocate people drink raw milk because it contains bacteria and has limited shelf life. People who drink it from farms tend to get it fresh every day.

“There are strict rules and regulations about making the milk safe; the trick is to make the milk safe in such a way that it retains some of that benefit.”

The project is looking at how to retain immunetype proteins in milk after processing; normally they get damaged during heating.

Under a Primary Growth Partnership for the last three years, Miraka has worked extensively on manipulating the processing which will allow them to retain some of this immune activity, she says.

“We are now going to see what benefits retaining some of those proteins that are in an active form might have in reducing allergy and seeing if that is what is happening in raw milk,” she says.

The project was successful in the New Zealand government’s High Value Nutrition funding round late last year.

Dr Hodgkinson told a High Value Nutrition conference in Auckland last month that it is well known that allergy is on the rise and it is a major health issue in many countries – in particular food allergy.

“Two to three percent of infants in their first year of life will develop a cow milk allergy and 5% of children develop food allergies. The majority of these children will grow out of the problem. But persistent sensitisation is leading to an increased risk of later allergy.” A proportion of infants start with dermatitis and go on to develop food allergy, hay fever and asthma.

“Ideally we would like to reduce the risk of children developing allergies.

There’s good evidence to suggest there are good opportunities for this in the first 1000 days of life – that’s from conception through to two-three years of life.”

However an experiment with mice has shown

that feeding mice different milks gives a different allergy response.

“Our hypothesis is that a safe milk product using special processing techniques to preserve heat sensitive components will retain health bene-

fits associated with unprocessed milk.

“Miraka will develop a Growing Up milk product for toddlers and in our research plan we will develop and validate models that demonstrate this product has protec-

tive effects.”

They will identify potential biomarkers that could be used in clinical trials.

They will also look at the optimal timing and dose to get the best effect from the product.

Huge savings and rapid investment return with our solar system

Dairy Farmers! Finally,

Solar Power That Works For You! This innovative Solar Concept provides you free power while the sun is shining to run milkings, chillers, pumps and any other daytime loads, while also providing you with free Hot Water.

Solar Power that provides electricity and Hot Water, without the high install cost and maintenance requirements of Solar Thermal. These systems are sure to provide you with huge savings and rapid investment return.

New CEO role LIVESTOCK SA and the South Australian Dairyfarmers’ Association will welcome a new chief executive officer this month – Andrew Curtis.

The CEO position is a joint role between Livestock SA and SADA – a first for both advocacy groups in South Australia.

Mr Curtis will replace current Livestock SA CEO Deane Crabb and SADA CEO Ken Lyons. Mr Crabb will step back to a policy officer role within Livestock SA while Mr Lyons is taking on a leadership role with successful South Australian milk brand SADA Fresh.

Livestock SA president Geoff Power said the joint role recognises the common issues faced by producers in both industries and that there is significant synergies that can be captured for both organisations.

Dr Alison Hogdkinson, AgResearch.

Contact BRETT or ROBERT HEKMAN

03-5148-9479

www.rockyselectrical.com.au

DAIRY NEWS AUSTRALIA MAY 2016

12 // AROUND THE REGIONS

WESTERN AUSTRALIA A BUMPER crowd of more than 400 turned up to this

Western Dairy regional manager Esther Jones with Darren Merritt, Elgin Dairies.

year’s Dairy Innovation Day in Boyanup on April 28.

Organised by Western Dairy and hosted this year by Darren and Sharon Merritt of Elgin Dairies, the day was an opportunity for farmers in the region to catch up, see some of the latest technology, products and machinery and tour the Merritt’s farm.

The day was capped off with a three-course dinner and presentation of the WA Young Farmer of the Year Awards.

The event’s auction was a highlight, hosted by local legend ‘Tiny’ Holly, whose colourful auctioneering style helped raise more than $6000 for some of the state’s young dairy farmers to tour New Zealand.

PICTURES: MADELEINE BRENNAN

Paul Bloom from Coopers Animal Health demonstrates how to orally prescribe the Trifecta triple action drench.

Kahlia Beers and Kirsty Mobila from CSBP, Kwinana.

Western Dairy’s Esther Jones, Kirk Reynolds and Jessica Andony.

WAFarmers Dairy Council president Phil Depiazzi, who will step down from the role in July, pictured with wife Leanne at the dinner.

Brain Armstrong, Northcilffe, with Dean Barbetti from Waterloo

New from Bale Up Hayfeeders Our modular feed pad model, the next level in feed pads, comes in 4 metre units. Buy 2 ‘bookend’ units and add as many open ended centre units as you need. No more feed on the ground and extremely low waste, and like all our feeders comes with our rolled corrugated floor.

$2600

incl GST per unit

Bale-Up Hayfeeders

Phone: 0458 590 766 • Fax 03 5859 1137

er Standard cow feed $2200 inc gst

Calf feeder $1980 inc gst

rsgarth@hotmail.com www.baleupfeeders.com

WA Young Farmer of the Year winners Brentin Mathews (left), who works for Peter and Grant Evans and family, Busselton (Employee category) and Lachlan Fry, Bengar (Owner/ share farmer category) are pictured with Browne’s managing director Tony Girgis.

DAIRY NEWS AUSTRALIA MAY 2016

AROUND THE REGIONS // 13

Elgin shows confidence to invest MADELIENE BRENNAN

DARREN MERRITT

doesn’t do things by halves.

The third generation farmer, who opened his farm, Elgin Dairies at Boyanup, to visitors as part of Dairy Innovation Day last month, will soon start milking his spit herd of 740 Holsteins in the farm’s new $1.7million dairy.

And with next to no sickness or mortality rates, he’s already reaping the rewards of his newlybuilt calf shed, which comfortably houses up to 120 calves and is easier to clean.

It’s an operation that puts both the comfort of animals and staff top of mind.

Darren, who runs the business with wife Sharon and their children Natalie, 25, Chad, 23, and Jesse, 17, said with a five year contract secured two years ago with Harvey Fresh, it was time to lift the bar.

“I like to do things well or not at all,” Darren said.

“And as the saying goes, if you keep doing as you’ve always done you’re going to get what you’ve always got.

“So it was time for change, to do things a lot better and get more professional.”

After a couple of trips to the US seeking out ideas, Darren chose a 24-aside rapid exit herringbone from DeLeval.

He designed the 36m x 22m dairy, which includes a 10 metre lean to on both sides (one for

the milk room and plant and the other for cattle treatment), with a 10m x 32m staff area on the front which includes a kitchen and office.

“I realised I’ve got to build a dairy not for myself but for my staff because it wasn’t me that was going to be milking 700 cows too often, I’d be running the rest of the business.”

He says the parallel herringbone allows for two staff in the dairy at once in a clean and comfortable environment.

“The staff get a real relationship going amongst themselves and so the work is not so tedious and boring.”

Attracting good staff, as well as inspiring his own children to continue to work in dairy, was a key reason for the investment.

“It’s easy to get negative,” he said. “Some older farmers think ‘I’ll just run this old shed out and get out, retire’.

“And while they have that mentality the son is going to look at their father and think ‘well I’m not going to put up with that old tractor, I’m not going to milk in that old dairy’.

“If you’re not making the investment then the next generation are going to think, ‘well I’m not going to step into your boots’.

“But if you make the investment and make the workplace a whole lot more enjoyable and exciting it gives them a different outlook on farming.”

Darren said being in WA and knowing there would always be strong

demand for local milk also helped inspire the decision to invest.

“There’s not going to be oversupply here.”

With recent rain, Darren said they’ve had a good season, with production up this year from 6.3 to 6.5 million

litres, averaging about 8000 litres per cow.

Since buying his brother’s farm in 2008, and then leasing more land from neighbouring cattle properties, it’s clear Darren has had a firm idea of where he wanted to take the business.

“I left school very early, I didn’t complete year 10, but it’s all I’ve ever done and I’ve spent a lot of hours doing it and if you do something that long you become good at it I suppose.

“Plus I just like milking cows and growing grass.”

Darren Merritt in his calf shed.

PASTURE

THE CHEAPEST FORM OF FEED.

REDUCE YOUR FERTILISER BILL AND GROW MORE GRASS WITH TOW AND FERT.

Multi1200

Multi 1000

Multi 4000

The Tow and Fert allows you to dissolve your own urea to reduce your enabling you to apply multiple fertilisers or animal health products or herbicides in one application.

Talk to us about the cost reduction you can achieve right now.

TF TOW AND FARM by metalform

1300 630 279 Call us for your FREE demo now: WWW.TOWANDFARM.COM.AU

Dairy News aUsTraLia february 2016 DAIRY NEWS AUSTRALIA MAY 2016

18 // markets 14 // AROUND THE REGIONS

New South Walesto dairy Western Australia Price slump not unique Investing in people Sam on a mission

tHe world economy has veered into some difficult and dangerous waters, suggesting 2016 will be a long hard year of slow recovery in prices SAM NICHOLSON is on a in global food commodity markets – mission to inspire more young including dairy.

“Hire for character train for skills,” people to join the dairy industry.

AS The MANY dairy farmers would already perfect storm has struck.

Steve said.

“It’s a bit of a mantra.”

The recently-appointed know, managing cows is a lot easier than Major food and oilseed commodity When it came time to redesign his dairy DairyNSW Young Dairy Network managing people. prices are at low points in the cycle and calf shed, Darren also kept staff com(YDN) coordinator wants to attract But as Steve Stanley from Team Smart with inventories high. It’s not just food fort top of mind. a new generation of farmers to an told the large crowd at WA’s Dairy Innoof course, oil and other major metal “If there’s good people to be had out industry with a bright future. vation Day last month, it is possible to get commodities are at prices not seen for there, we want to be the point of differ“There are so many opportunities great performance from your people – proabout a decade. ence and whereageNDa they end up.” for a variety of jobs in this industry vided aredemand preparedside, to make it a priority, Onyou the China, the fresh Local beef farmer Paul O’Meehan – you don’t just have to be a milker and perhaps seek out professional advice. largest growth economy in the world, sTeve speNcer said he was six years into a program that putting cups on,” he said.

Darren Merritt, from Elgin Dairies, has the brakes on. changed how he managed staff, and that Sam (pictured) hopes has This been working with Steve for the past year started with little regular reviews of values, procedures and Australia can follow the lead of 8change months. in OPEC’s production stance, the supposed break-even costs of operations had transformed his business.

New Zealand where he spent the He has five casual milkers working for and little hope for collaboration given production of crude oil for most major “I don’t see myself as the boss, I see past year studying agriculture at him said setting core values as aand team, exporters. newand tensions between Saudi Arabia myself as the coach of a footy team,“ he Massey University, after winning for everyone to work by, had made a signifHistorically, there has long been Iran. said. a Dairy Australia Farm Business icant difference.

The outlook suggests a sustained a close correlation between crude He said having an independent mediManagement scholarship.

The staff, which includes the couple’s This points to a bigger worry, that Low oil prices have combined producers. petroleum glut, unless there is a strong oil prices and the prices for major Hemisphere ator – such as an HR consultant – had “I was inspired by the of sanctions to weaken the Russian the world economy will be adversely three children, also developed a key motto Low oil prices can be a friend to amount dairy with surge in demand – which I’ll come back food commodities, including dairy stopped any becoming too perinvolvement young people haveeconomy, in for the farm: No compromise. No excuses. ingredients and have made a bad financial affected by the slowing of China – more producers. anddiscussions feed grains. to later. sonal and had instead created a culture of the industry in New Zealand,” Sam No exceptions. than the economists at the IMF and Cheap fuel can lower the costs of situation far worse in Venezuela.

On the demand side it makes sense This is playing out like a “game feedback for everyone said.

“Whencase you’ve got everyone working The effect in these dairy markets will World Bank are currently suggesting. milk production, reducing equipment weak economic activity reducesin the theory” study.

The OPEC cartel in – constructive “Thecommodity study helped to youngand people butpredict, he adds that Metal business. are cost our offuture the sameadirection, just ticks,” prices me are low be uneven hard to as the costs as people well as the for fuel and can weaken some and energy“Young started price wareverything to dominate the demand understand more of the science there are good models, such as share “Everyone, including me, has a chance farmers and the ones with new Darren said. dependence on oil, production costs, largely because construction activity fertiliser. global energy market in the third food markets. behind the farming and then farmingfood andbuying lease farming, get a grilling, gets put through the ringer Lowideas. to doalso everything He also longer hires “the first person to industrial outputsystem in China have government activities which and and crudeWeoilneed prices make we While the trends lines move quarter ofno 2014, signalling their intent put what I learned in the classroom can provide pathways. a bit,” Paul said. can to get them involved.” that comes down the driveway”. to increase production and drive uncannily together, it doesn’t mean oil biofuel production less attractive, the financial states of oil economies stalled.

“You can start as a relief milker into “Wethe talkchanges about all the things we want Sam, 23,more is one two YDN is he too fussed if that low-cost person has is behind Lowpractice.” metal commodity markets can vary significantly. potentially ensuring feedof supplies in dairy and grain outNorcompeting alternate says there’s a and confident vibe and eventually buy your own cows the person to stop doing, start doing and coordinators in New South Wales dairy experience; fitting into the team and several developed developing But the developing world including harm Sam which helps support margins, even technologies (such as shale oil) and prices. about dairy in New South Wales, and build equity.

I want to create continue doing.” and covers the mid-coast and the right attitude mattered most.

Dairy prices have slumped low due when dairy prices fall. This has certainly MENA has a number of large dairy economies, weakening investment renewable production using corn and thoughand farmers stilldown have to to affect cope awareness these different trickling that are alsoof oil importers whose activity case forregions.

Northern Hemisphere buyers to excessive supply from abundant grass been theHunter soybeans. with environmental challenges and pathways,” he said.

The part-time YDN job connects economies should benefit from lower household sentiment and discretionary So much for the planet! This is about growth, low feed grain prices and the suppliers. price volatility.

The YDN job was advertised him with the broader farming spending.

However, low oil prices have mixed fuel and energy costs. short-term painful price competition loss of a couple of big buyers from the “Overall it’s quiteAustralia positive,”ishea whileoil Sam was inmeanwhile New Zealand and Post-mining-boom community and he is still heavily Weak prices also effects on dairy markets. to knock out rivals, and ensure a finite global market. said. he was so keen that he flew home for involved in his family’s lease farm In the developed EU and US ensure low prices for palm oil, used good example of this.

Grains and oilseeds markets are energy resource remains the dominant “The Trade with Agreements with parents, Geoff improves and Megan,widely at anasinterview.

The US Free is another, analysis a competitor and substitute cheap fuel well-supplied due to good weather in economies, choice for industry and consumers. with key export markets, the “It’s a great personal Lansdowne near Taree. suggesting that low oil prices are likely Prices have been driven to levels most major regions – our enemy El household budgets, freeing up a bit for dairy ingredients. westernisation of diets and the development opportunity and a In his YDN role, Sam promotes So on balance – what does the to hurt rather than help that economy not seen since 2004, well below Nino tends to be kind to many Northern more cash for dining out. many learning curve Legendairy they household stay lowerincomes longer, indespite futuregreat hold for oil prices andfor the me,” globalhe if rising We’vethe alreadyindustry’s seen US food service Asian countries will create many said. communications initiative via social lower costs of running SUVs and road grow strongly in 2015 soaking up more economy? opportunities Sam grew up theindicator 300ha leased networks and organising fleets. and there are a lot One important buton odd of transport cheese media and milk.

The question is of resources to help are farmers to family farm and loved the freedom social and educational events that So dairy commodities not alone whether it can keep that growth rate economic conditions is the Baltic Dry improve their business and their and connection to the land and develop and build the capacity of as bottom-dwellers – most hard and soft Index of shipping costs. surging in 2016. profitability.” cows. young farmers improving The prices are at historic lows, index has long been a forward commodity Lower fueldairy costs can by improve On reasons the home front, things are “When you’re a dairy farmer their knowledge, skills, confidence – including some that economic prospects for countries indicator of the fortunes of the world for many looking good for the farm which you have a sense of being part of and leadership abilities. dependent on fuel imports, lowering economy, and is now the lowest since are interrelated. a mixed herd 220 cows. is a community,” “The objective is to attract The unwinding of of this situation its inception in 1985. he said. “You get milks overall costs ofmain manufacturing and “We’ve had a good spring attached to the land around you and retain young people in the dairy This largely reflects the slowing the same for them as it is for dairy.and transport, including shipping and more aroundwill Christmas has set and in youand build industry,” he said.

Dairyrain demand be stimulated outa relationship of China as with it improving the affordability of dairy of trade up a good season.

It should progress the cows and nurture them from “A lot of people just think a dairy transitions to a consumer-led economy with more affordable food and imports. to an ideal season,” Sam said. early age. one. farmer up there at a ridiculous consumer goods. from an a trade-driven On the othergets hand, are risks time Sam’s ultimate is to own “When I was at school I’d help and milks cows, but there’s a lot Low milk prices dream will eventually It also reflects the build-up of for dairy demand, as low oil prices a farm, following in his dad after school and on the holidays more to it than that.

Programs like will slow can harm the economies in some capacity with the promise that China discourage production, supplyparents’ footsteps butwill expanding with new something kepttwo-way up when trade) I went to and Legendairy and the Young stockpiles reduce to normal (and -its hunger Ifor major oil-producing regions whichDairy ideas and technologies. boarding school and when I studied Network show how attractive the levels. are also large dairy importers, such as would just keep growing.

“I sobering want toreality always open to Agricultural Business Management industry is.”East, North Africa The forbe dairy is that The index suggests the demand side those in the Middle Steve and Darren opportunities,” he said. at Charles Sturt University in Sam says the capital costs of speaking to the audience (together known as MENA), Russia and of the oil market will be sluggish for these effects may take all of 2016 to at Dairy Innovation Day. Source: getting into dairy can scare some develop and then some.Dairy Australia someOrange. time.

Venezuela.

worth the effort

NEVER MISS A STORY

KEEP UP-TO-DATE WITH OUR MONTHLY NEWSLETTER

DAIRY NEWS AUSTRALIA MAY 2016

AROUND THE REGIONS // 15

Murray Dairy Stepping up or stepping back?

DON’T MISS your chance to see the last of the cur-

rent round of Stepping Up Stepping Back workshops in the region. These sessions been developed to assist those looking to take the next step in their dairy career, and those who are looking to transition out in an effective way. The one-day workshop is designed to be interactive and inclusive. Participants will also receive a resource kit to take away. Thursday 12 May at Tangambalanga Community Centre Time: 10.30am – 3pm Lunch is provided.

Contact Sarah at Murray Dairy on (03)5833 5928 or email saraht@murraydairy.com.au to RSVP.

SubTropical New look website QUEENSLAND DAIRYFARMERS

Organisation has launched its new look website. The site allows members greater accessibility to news and membership content. QDO encourage you to take a look and provide feedback on the content and usability of the site.

Visit www.dairypage.com.au

Western Vic Don’t miss a great night out THINGS ARE gearing up for the 2016 Great South

West Dairy Awards. The nominations are finalised with an impressive number of south west farmers, employees and service providers in line for well-deserved commendation. The awards, now in their 11th year, recognise the best and brightest in the industry. Nominations have been received in each of the eight major categories which include; Farm Business Manager, Employer, Employee and Sharefarmer of the Year, Young Farm Leader, Natural Resource Management and Sustainability, The Honour Board and Farm Photo of the Year. Event coordinator Liza Fahey was thrilled with the high number of quality nominations. “It is great that we can all come together and celebrate the great work dairy farmers do every day of the year, during the good times and the tough times.” Thursday, May 19 at Deakin University Warrnambool. Tickets on sale now through WestVic Dairy Ph: 5557 1000.

Tasmania Attract the right staff to your dairy business THIS TWO-DAY workshop will help people employing

and managing staff with recruitment and inducting people into your business. Workshop presenters Penny Williams (dairy consultant) and Sharni Radford (NCDE/TasTAFE AgriBusiness trainer) will provide fantastic information to help you with any staff recruitment questions. Using the ESKi (Employment Starter Kit initiative) and the People in Dairy website, participants will get hands on experience in how to recruit, select, induct and supervise the right person to suit the job. Deloraine May 17 & 31; Scottsdale May 18 & June 1, 9.30am to 2.30am .

Cost $98 (ex GST) phone 6477 7480 or email admin.primaryindustiesnw@tastafe.tas.edu.au

READ IT ALL WITH US ONLINE

www.dairynewsaustralia.com.au

B&DEL0023A

BREAKING NEWS MANAGEMENT STORIES MACHINERY REVIEWS AND MUCH MORE...

delaval.com.au

South Australia Herd innovation and business inspiration THE DAIRYSA Innovation Day 2016 will hear from some of the dairy industry’s leading researchers on the latest tools and innovations in managing transition, as well as be inspired in operating and building your business. The session will be

examining transition feeding, temperature control, using technology to manage cows and methods for improving milk production. In the evening, from 6.30pm, don’t miss out on the dinner for a night of guest speakers, networking, a superb

two-course meal and the opportunity to get together with old and new friends.

Thursday, June 2 from 9.30am at The Barn Palais, Mount Gambier.

Contact Rebecca Hehir on 0418 951 324 or RHehir@ dairyaustralia.com.au

DAIRY NEWS AUSTRALIA MAY 2016

16 // AROUND THE REGIONS

Crowds welcome Farm World’s dairy theme Gippsland JEANETTE SEVERS

AN INCREASED 14% attendance, to

57,000 people over four days, was attributed to the theme ‘Dairy – an industry on the move’ at this year’s Farm World at Lardner Park, last month.

“It was a very strong theme that pulled together exhibitors, trade stalls, sponsors and events,” said Angela Betheras, chairman of Lardner Park Events.

A total 750 exhibitors, also an increase, reported good interest in and sales of equipment across the field days.

The crowds were obvious throughout each day and many young families turned out for the event.

The annual women in agriculture lunch kicked off Farm World’s first day.

Guest speakers this year were Janet Moxey, Dr Sinead De Gooyer and Kelly Ward, all involved in the dairy industry.

“The lunch has become an established part of Farm World and Thursday is now known as Ladies Day,” Angela Betheras said.

“About 190 women attended the lunch and heard about joint venture partnerships, day-to-day management of a dairy farm, health issues including mental health, share farming and using social media to tell stories about dairy in Australia.”

The following day saw technology discussed during breakfast, where investment was compared against return on asset.

“Australian farmers are very innovative and are at the forefront of developing technology,” Angela Betheras said.

“We were asked ‘were we prepared to adopt technology in agriculture?’ and the overall assessment was only if purchase was supported by a valid reason to spend the money.

“Purchasing technology, like any farm asset, had to be balanced against improving production – for example, was it better to invest in more land to plant crops or would investing in new technologies achieve a similar return?

“Farmers are conservative investors in equipment and technology, compared to mining companies.

“The bankers attending this event revealed that, rather than production returns, it is low interest rates causing farmers to borrow money to invest in capital assets like equipment and technologies.”

A new event this year was the young farmers conference.

“Every year we have a new event and this year it was the young farmers conference,” Angela Betheras said.

“We’ll repeat it and I think we’ll extend the succession planning panel session – that generated a lot of discussion and I think we need to give it more time.”

2

1

3 4 5

3

6

DAIRY NEWS AUSTRALIA MAY 2016

AROUND THE REGIONS // 17 1. Lardner Park Events board chairman, Angela Betheras.

2. Kylie, Travis and Jetta (20 months) Hamilton, Nar Nar Goon, were looking at tractors at Farm World, including this New Holland T6020.

3. Alice Peillon, Drouin, with Coopers Animal Health, worked at the Brown Wigg stand and tried out a can-am AWD Outlander with 50 litre Goldacres spot spray unit.

4. John O’Reilly thanked Lloyd Missen, Gormandale, for buying the Leicht’s Stockman’s Cattle Crush, manufactured in

Australia and among the range of equipment on show at Farm World.

5. Dairyfarmers’ children, Claire (5), Matthew (7) and Rachael (4) Finger, Yanathan, enjoyed yoghurt at the Burra Foods stand.

representatives, Melina Bath and Senator Bridget McKenzie, flew the flag and saw more than 500 people during the four days.

8. Tony Gasperini, a dairyfarmer at Korumburra, admitted his 200 milkers in the herringbone dairy had to contend with manual movers and automatic cup removers; but he was looking at the mini swinging brush at the DeLaval stand, with Patrick Hunt.

6. Stu Mackie, Meeniyan, an ex dairyfarmer, now works with Semex and spoke about their global database of bulls, SemexWorks, to help dairyfarmers select bulls to lower risk and breed out problems in the herd. The software program now contains genomic, proven and sexed semen results.

7. National Party state and national

9. Tim Clark, Leongatha, and his sons, Owen (15 months) and Rhys (3) looking at a Toro zero-turn mower.

PICTURES: JEANETTE SEVERS

7

Want hassle free heat detection?

Let CowScout™ do the hard work for you.

CowScout™ gathers cow activity data and eating data, in real time.

CowScout™ is a standalone system which can be fitted to any dairy parlour.

8

Why Choose CowScout™?

• Activity monitoring to increase in-calf rates • Data collected 24/7 and sent in Real Time • Operates alongside any herd management software, working alongside HDx & FDx eartag ID Want to know more?

Speak to your local GEA Farm Technologies dealership or call GEA Farm Technologies on 1800 789 100 to find out more.

9

• Expected battery life approximately 10 years • Eating monitoring to better monitor herd health • Read on a tablet or smart phone with alerts sent to email

DAIRY NEWS AUSTRALIA MAY 2016

18 // OPINION RUMINATING

EDITORIAL

Big questions but not all for MG

MILKING IT...

Gone bananas THE LATEST plant product expected to lead a retail revolution in Colorado, US, isn’t green — it’s yellow.

Trying to make up for poor sales of cow and soy milk, WhiteWaveFoods, Denver, is stocking its Colorado, Indiana, Michigan and Ohio stores with a devious concoction -- banana milk.

Sir Bananas, the product’s cute moniker, is a blend of 2% milk and banana that boasts 7g of protein per serving. It’s also available in a chocolate banana flavor, for those who prefer milk other than in its natural state.

Print us a milk, mate

Hi-tech from Pakistan

TRIALS ARE underway to determine if milk can be produced by 3-D printers, according to the American Council on Science and Health.

They reckon it might be useful to astronauts on long journeys (Mars, anyone?), and NASA is looking into it.

Basically, the process involves ‘printing’ sodium caseinate, a main protein found in milk, then adding the required other ingredients to form... ‘milk’.

Along with the milk, the astronauts might also be able to print a pizza — as long as the printers work in zero-gravity conditions.

THE LATEST in wearable technology is being called the ‘fitbit for cows’.

A startup called Cowlar is making a tracking device to be worn by cows and buffaloes, and the creators claim it could help farmers increase their milk yields by as much as 15%.

Cowlar’s website says the product uses motion sensors to track the cow’s activity and core temperature, and relays that data via the cloud in text messages to farmers so they can better detect disease. It also allows monitoring when the animals are in heat.

Cowlar is based in Pakistan, where outdated agricultural techniques drag on average milk yields compared to more highlydeveloped countries.

Advertising Chris Dingle chris@dairynewsaustralia.com.au

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

Leaping for joy A VIDEO showing Swiss cows’ delight at being let out to pasture after a long winter has struck a chord worldwide, attracting massive viewing since its posting to Facebook last week.

The Pfister family’s cows in Bözen, Aargau, are shown jumping and leaping as they get to pasture for the first time in five months under sunny spring skies.

“It’s one of the most beautiful moments in a farmer’s year,” the family wrote under the video.

Non-farmers love it too: the video has had 1.2 million views and nearly 22,000 ‘likes’ since last month.

No surprise to farmer Reto Pfister. “We just wanted to amuse ourselves and our friends, nothing more,” he told journalists.

0417.735.001

WHERE to begin with the questions for Murray Goulburn?

How did you get is so wrong? Has the unit trust experiment failed?

Is it right to saddle your suppliers with a debt burden for the next three years? How will you even start to repair the broken relationship with once-loyal farmers?

What was the outgoing payment to Gary Helou worth?

The list goes on ...

As the country’s biggest milk processor MG had industry responsibilities, not the least of which is setting a benchmark milk price that affects farmers on Australia’s east coast.

MG has let the industry down and let it down badly at a very bad time.

Chairman Philip Tracey has acknowledged the co-op has work to do to rebuild trust amongst suppliers.

That is an understatement.

But broader questions for the industry should also be asked.

Where to from here? Will our sector recover? How long will it take? And is the sector working together to ensure the number of dairy farms doesn’t continue to decline?

It’s true the optimism that surrounded MG’s closing milk price of $6.05/MS was met with caution at the time. As the season wore on and global factors failed to shift, reality sunk in and most farmers never anticipated more than $5.60kg/MS. As MG works to recover farmer and investor confidence, there is a roll for the other processors to pick up the slack.

Setting the right farm gate milk price is a tight balancing act where cents are as important as inches.

Cut too low, and processors risk supply and more farmers leaving the industry. Too high, and they risk their own bottom lines plus putting farmer’s budgets in the red with misplaced confidence.

So far, there’s been a mixed response from processors with some holding price, while others following the MG lead.

Processors must take a genuine look at the value of milk and set a fair return for farmers, with due consideration to the very real market challenges that currently exist.

Ultimately there will be no shareholder returns without a viable industry.

We shouldn’t all have to pay for MG’s mistakes.

Editor Madeleine Brennan

0402.715.577

editor@dairynewsaustralia.com.au

Publisher Brian Hight

Production Dave Ferguson Becky Williams Sub Editor Pamela Tipa

Web Cameron Wilson Published by RNG Publishing Ltd

Printed by Newsprinters Pty Ltd

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.

WWW.DAIRYNEWSAUSTRALIA.COM.AU

Head Office Top Floor, 29 Northcroft Street, Auckland 0622, New Zealand Phone +64.9.307 0399 Fax +64.9.307 0122 Postal address O Box 331100, Takapuna, P Auckland 0740, New Zealand

DAIRY NEWS AUSTRALIA MAY 2016

OPINION // 19

Was Tasmania’s summer a glimpse of its climate future?

DROUGHT, FIRES,

floods, marine heatwaves – Tasmania has had a tough time this summer.

These events damaged its natural environment, including world heritage forests and alpine areas, and affected homes, businesses and energy security.

In past decades, climate-related warming of Tasmania’s land and ocean environments has seen dozens of marine species moving south, contributed to dieback in several tree species, and encouraged businesses and people from mainland Australia to relocate.

These slow changes don’t generate a lot of attention, but this summer’s events have made people sit up and take notice.

If climate change will produce conditions that we have never seen before, did Tasmania just get a glimpse of this future?

Hot summer After the coldest winter in half a century, Tasmania experienced a warm and very dry spring in 2015, including a record dry October.

During this time there was a strong El Niño event in the Pacific Ocean and a positive Indian Ocean Dipole event, both of which influence Tasmania’s climate.

The dry spring was followed by Tasmania’s warmest summer since records began in 1910, with temperatures 1.78˚ above the long-term average.

Many regions, especially the west coast, stayed dry during the summer – a pattern consistent with climate projections.

The dry spring and summer led to a reduction in available water, including a reduction of inflows into reservoirs.

Is warmer better? Not with fires and floods.

Tourists and locals alike enjoyed the clear, warm days – but these

conditions came at a cost, priming Tasmania for damaging bushfires.

Three big lightning storms struck, including one on January 13 that delivered almost 2,000 lightning strikes and sparked many fires, particularly in the state’s northwest.

By the end of February, more than 300 fires had burned more than 120,000 hectares, including more than 1% of Tasmania’s World Heritage Area – alpine areas that had not burnt since the end of the last ice age some 8,000 years ago.

Their fire-sensitive cushion plants and endemic pine forests are unlikely to recover, due to the loss of peat and soils.

Meanwhile, the state’s emergency resources were further stretched by heavy rain at the end of January.

This caused flash flooding in several east coast towns, some of which received their highest rainfall ever.

Launceston experienced its secondwettest day on record, while Gray recorded 221 mm in one day, and 489 mm over four days.

Flooding and road closures isolated parts of the state for several days, and many businesses (particularly tourism) suffered weeks of disruption.

The extreme rainfall was caused by an intense low-pressure system – the Climate Futures for Tasmania project has predicted that this kind of event will become more frequent in the state’s northeast under a warming climate.

Warm seas This summer, an extended marine heatwave also developed off eastern Tasmania.

Temperatures were 4.4˚ above average, partly due to the warm East Australian Current extending southwards.

The heatwave began on December 3, 2015, and was ongoing as of April 17 – the longest such event

recorded in Tasmania since satellite records began in 1982.

It began just days after the end of the secondlongest marine heatwave on record, from August 31 to November 28, 2015, although that event was

B&DEL0023E

ALISTAIR HOBDAY, CSIRO; ERIC OLIVER, UNIVERSITY OF TASMANIA; JAN MCDONALD, UNIVERSITY OF TASMANIA; MICHAEL GROSE, CSIRO

less intense.

As well as months of near-constant heat stress, oyster farms along the east coast were devastated by a new disease, Pacific Oyster Mortality Syndrome, which killed 100% of juvenile oysters at

delaval.com.au

some farms.

The disease, which has previously affected New South Wales oyster farms, is thought to be linked to unusually warm water temperatures, although this is not yet proven.

TO PAGE 21

Summer fires got close to the Hofings’ farm at Mawbanna, in Tasmania’s central NW region. PICTURE: COURTESY DAIRYTAS.

DAIRY NEWS AUSTRALIA MAY 2016

20 // MARKETS

Looking beyond the blame game we are still inextricably THERE HAS been plenty written co-operative. part of a global market In the short-term it about the dramatic slump in the earnplace. ings and milk price outlook for Aus- seems that Murray GoulDairy companies tralia’s largest farmer-owned dairy burn’s competitors will have different business continue to honour milk company. models, product and I don’t wish to add to the newsprint price estimates for the market mixes – and difcolumn space on what, why or how that current 2015-16 season ferent abilities to flex. which were made prior to happened at Murray Goulburn.

Over time, some It is now fact, it can’t be undone, and 27 April. will do much better They will do this with there is little merit or therapy gained in FRESH AGENDA STEVE SPENCER than others in outmaintaining the rage and spending time some difficulty given the performing the price realities of the dairy comon recriminations. extracted from a comWhat’s more useful is to consider the modity markets.

It’s the coming seasons that matter. modity manufacturing base – “addingeffect of this sudden downturn in availDespite what will be claimed, with value” as it is unfortunately termed. able milk prices from MG on the AusBy our reckoning, the commodity tralian dairy sector as a whole, and on a 20-30c/kg milk solids finance charge individual producers considering the against their largest competitor’s milk value of milk is close to $4.50kg/MS in pool, Bega, Warrnambool, Fonterra and 2015/16. market and industry outlook.

At present, with spot and forward The outcome has implications for others will be under significantly less almost every dairy farmer in the indus- pressure to optimise farmgate prices – prices in the market, we have trouble try, who can expect milk prices in the other than the need to ensure they can getting our estimate of commodity coming years to be lower than what reliably collect enough milk for their returns for the 2016/17 season to land above $5kg/MS. might have been in prospect if MG had business needs.

Dairy product prices – on average That was the situation in the indusmanaged to deliver on this year’s foretry prior to 2013 and – will have to rise more than 15% (as casts. that will be the case a season average) to get there, but by This event has a for the next two sea- 25% before we can be confident milk is number impacts – on “..we have sons at least as the worth more than $5.50 again. leverage, confidence and If the A$ falls – as currency punteffects of this event reputation – in that order. trouble ers are suggesting – that farmgate price are unwound.

Leverage getting our result will be easier to achieve.

Confidence “Leverage” here refers estimate of Companies can and will add to this Years of research to the ability of a large commodity into what mostly commodity return via their various farmer-owned milk buyer affects the confidence activities. But it all comes back to what to positively influence returns for of dairy farmers have the biggest player can achieve, and how milk prices paid by its the 2016/17 shown that a positive much of the strategy can deliver in addicompetitors. season to belief in the industry’s tional income.

In recent years, MG has land above What are the chances of either of future depends on focused on improving perthe outlook for milk those market outcomes? formance in milk prices, $5kg/MS.” On our present outlook, a recovery prices. forcing its competitors to While MG’s bal- in dairy prices is gradually underway, match or better it. ance sheet will be used but won’t really make any headway until When the major farmer-owned buyer of milk has been to sustain most of the current season’s early next year when slower growth in weakened, effective leverage at farm- promised milk price, the prospects for Europe and New Zealand ensures global the next few seasons matter most for export supply slips behind import gate can’t be sustained. demand.

Almost every dairy farmer in the producer confidence.

Right now, those supply and demand Dairy commodity prices drive the eastern seaboard of the industry is adversely affected, in terms of available value of milk in the industry – despite totals are running neck and neck curmilk prices, by a weakening of the major lower industry exports than previously rently, but stockpiles of powder and

Almost every dairy farmer in the eastern seaboard is adversely affected by a weakening of the major co-operative.

Almost every dairy farmer in the eastern seaboard is adversely affected by a weakening of the major co-operative.

cheese are still building.

Talk of the $A falling into the low US70c range has been going for ages, but recovering mineral commodity prices may work against that.

There has been an expectation created in Australia’s production sector that outperformance of the commodity value is readily achievable.

In reality, it is hard for a dairy company with a large pool of milk to sustain that outperformance over time, but some have been very good at it.

It needs a combination of outstanding management execution, high-quality assets and strong market and/or product and process innovation.

Promising outperformance without consistently ticking all those boxes leads to disappointment.

What also unsettles confidence is a broken promise or shattered belief.

Time and actions to ensure performance exceeds expectation will be required to fix that in the future.

But what of the confidence of investors – providers of debt and external equity?

Investors in the dairy farm sector are always interested in the capacity for

Australian processors to perform well on milk prices, and despite this latest stumble, comparisons with our neighbours over the ditch are still favourable.

Reputation The news of this event quickly went across the dairy world.

I was in meetings with US and European industry participants in Chicago when news broke, and it quickly became the talking point of the event.

All of a sudden the external perception of the Australian industry was in discussion.

Does this make Australian milk supply any less attractive to international customers? No. Does it make them question the stability of milk production over time? Perhaps.

Does it mean we might figure less in their plans for securing a growing pool of high-quality milk supply in future?

Maybe.

This aspect of reputation won’t be enhanced in the short-term, but this also comes back to confidence, and whether milk producers can take stock, adapt and press on.

Time will tell.

Lean times ahead for Oz dairy Export demand remains strong Dairy NewS aUSTraLia june, 2012

agribusiness // 17

DAIRY AUSTRALIA’S

next Situation and Outlook report will be released on June 1, as a challenging season for many farmers approaches its end.

The impacts of a deep and persistent trough in international dairy markets have hit Australian farmers with renewed vigour in recent weeks.

Many farmers in southern, export regions have seen 2015/16 farmgate prices cut, and there is a growing sense that the 2016/17 season will be a difficult one for balancing the books.

Farmers in domestic-

slightly. focused regions are Supply continues to also likely to feel some With season 2011/12 only a few incremental change in milk production (year-on-year) weeks from ending, attention is now outpace demand however, impact, and growth in focused on 2012/13 milk prices as farmand inventories in many overall Australian milkstrategies for the coming ers consider year. In some domestically-focused parts of the world (most production will be a regions, renegotiated contracts incorgLobaL impacT conspicuously Europe) are difficult ask. porating lower prices and reduced ‘tier JohN DropperT one’ access are undermining farmer building.

The same confidence market and supply stability. For GLOBAL IMPACT private label DROPPERT contracts and promany to farmers in export-oriented Shifts inJOHN A relatively stable trough has failed regions, a lower price outlook relative to cessor rationalisation have seen milk domestic market has significantly dent milk the current season not only adds to the companies adjust their intake requirechallenges helped buffer the supply in most of theof doing business, but seems ments and pricing to meet the changto contradict the positive medium term ing demands of a highly pressured retail Australian industry in total spot pricesmarketplace. and weak world’s majoroutlook dairyof Asia-driven dairy Lower contract prices andexports to Greater demand a lack of alternative supply opportunithe face of international China are up 16% in comparables, dairy exporters. growth.

Dairy Australia’s indicative outlook ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle up around–4% on 2011 for the yearheadwinds. to East maintain consistently higher ecolimited manufacturing Despite isterms for the southern prices – has though demand grown in capacity.volume Europe and US farm gate milk published in the recent Dairy 2012: Sit- these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that support Despite some WMP volumes are still most importing regions continue to power ahead uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. Howsurge in supply has outpaced finished theperiod.

March 2012 quota yearslowing, up ever, theoverall ita dairy consumption and a growing opening price and range of $4.05-$4.40/kg trends down over the over the past 12 months, in year-on-year terms, MS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. for supermarket sales Exports to Southeast with overall tonnages up favourable weather in New This situation has seen of the scales between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish tip in favourcategories of buyers in dairy marthis season upcontinued 10% on last year - a huge 2008 countries report the widernearly market picmajor dairy Asian 6%. In the seasons following the Zealand has led toconsiders a much ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreatremain relatively to grow, strong Despite an absence of farmers smaller decline than many ing steadily over recent months. Butter exported.

Argentina is also enjoyprice recovery, in is with at play; the key theme of the current sit- modity prices are down some 30% from their production growth, but a sigregions have seen solid ing being that of re-balancing in the export-oriented unchanged from growth insolid milk powder the breakneck growth of had expected,uation even after a global supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have dairy supply chain.

February’s S&O report. categories, while exports recent years, China has second season of bruising Farm gate prices In regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. have subsequently been reduced in producing drinking milk, many farmers ern Hemisphere amongst those expand- ing South America.

Dairy spreads continue volumes to the Middle been responsible for a margins.

Despite wider economic uncer- most exporting regions. The average face a re-balancing market in the form ing output as their margins increased. basic farm gate price while for milk in France tainty, demand has remained This season, con-and of renegotiation of supply contracts to grow strongly, East Japan have eased resilient large proportion offavourable this; weather With attractive and reduced access to ‘tier one’ supply.

ditions have further enhanced milk

as importing countries like China and

for example, dropped 12% from 32 Euro

cheese volumes increased by 1.7% for the(AUD 12 months cents/litre in March 41c/L) to 28 cents/litre (AUD 36c/L) in April. toEuro March 2016.

Profit margins are under pressure in the growth in US,Ongoing and in NZ Fonterra has announced the final payout for the 2011/12 season block and ingredient has been cut from NZ$6.75-$6.85/kg MS to NZ$6.45-$6.55/kg MS offset (AUD$4.96cheese segments $5.04). falls in sliced and smooth Effectively, global dairy markets are rebalancing.

Lower prices cream cheeses , withwill both slow production growth and stimulate specialty/entertaining demand, and as this occurs we will ultimately see acheeses price recovery.

Key factors and deli also to watch on the global scene will be the performing well (up 17% rate at which milk production overseas slows in response to lower prices, the and 4.3% respectively). impact of the current financial worries on The consumer confidence, the path of value of cheese China’s economic growth, and the value sales grew by 1.8% in yearof the Australian dollar.

Demandterms, for exported dairy prodon-year with strong ucts remains a positive and will congrowth in the value of deli tinue to grow with the middle class in large specialty emerging markets such assales China, and cheese with changes in diet and with increasing helping offset price falls urbanisation - and also in conjunction global population growth.

Locally, inwith the unit cost of block the domestic market is supported by a and ingredient cheese growing population and stable percapita consumption. Whilst the dairy categories. market is currently a challenging place to be a seller,volumes all signs indicate balSales forthat fresh ance will ultimately return.

milk are holding steady, while volumes and values for yoghurt and dairy snacks have eased.

Infant formula continues to sell strongly, with growth of over 30% in sales through the supermarket channel, though the balance of Australian consumption and grey market exports is much less clear.

The 2015/16 season has been characterised by challenging seasonal conditions for many farmers.

Rainfall across the country has been variable but generally below TO PAGE 21

DAIRY NEWS AUSTRALIA MAY 2016

MARKETS // 21

Lean times ahead for Oz dairy FROM PAGE 20

average, and while April was forecast to provide a much needed autumn break, rainfall for the month was lower than predicted.

Constrained pasture growth has coincided with a tight market for hay, while lower international grain prices have taken some time to flow through to the Australian market.

For irrigators, low allocations and high demand have driven temporary water prices to post-drought highs.

Fertiliser remains a

bright spot, and a more favourable rainfall outlook suggests farmers may be better placed to take advantage of an ongoing global oversupply to grow more feed on farm, where cash flow allows it.

Confidence amongst farmers, as measured by the National Dairy Farmer Survey, showed a modest fall on average (down 1%) from 2015 to 2016, based on the annual survey conducted in March.

However, industry developments will significantly impact confidence, as the

Was Tasmania’s summer a glimpse of its climate future?

challenges that lie ahead influence budgets for the upcoming season.

A global market turnaround remains some way off, though the Australian market remains

Dairy commodity price history.

Source: Dairy Australia.

stable and some relief from elevated input costs is likely.

There is little doubt however, that 2016/17 will be a difficult season for many.

REAL DEAL LOADER OFFER

bonu S loa der*

FROM PAGE 19

Compounding the damage Tasmania is often seen as having a mild climate that is less vulnerable to damage from climate change.

It has even been portrayed as a “climate refuge”.

But if this summer was a taste of things to come, Tasmania may be less resilient than many have believed.

The spring and summer weather also hit Tasmania’s hydroelectric dams, which were already run down during the short-lived carbon price as Tasmania sold clean renewable power to the mainland. Dam levels are at an all-time low and continue to fall.

The situation has escalated into a looming energy crisis, because the state’s connection to the national electricity grid – the Basslink cable – has not been operational since late December.

The state faces the prospect of meeting winter energy demand by running 200 leased diesel generators, at a cost of A$43 million and making major carbon emissions that can only exacerbate the climate-related problems that are already stretching the state’s emergency response capability.

Is this summer’s experience a window on the future?

Further study into the causes of climate events, known as “detection and attribution”, can help us untangle the human influence from natural factors.

If we do see the fingerprint of human influence on this summer, Tasmania and every other state and territory should take in the view and plan accordingly.

The likely concurrence of multiple events in the future – such as Tasmania’s simultaneous fires and floods at either end of the island and a heatwave offshore – demands that governments and communities devise new strategies and mobilise extra resources.

This will require unprecedented coordination and cooperation between governments at all levels, and between governments, citizens, and community and business groups.

Done well, the island state could show other parts of Australia how to prepare for a future with no precedent.

• This article first appeared in The Conversation www.theconversation.com

MF5600 SERIES | 85 – 120 HP THE ULTIMATE LOADER TRACTOR Fully integrated loader system from factory Unrivalled visibility due to the steep nose bonnet design and Visio roof option

Brake to neutral and shuttle sensitivity adjustment for customised operation Fuel efficient and powerful AGCO POWER engines

Proven Dyna-4 transmission with Autodrive allows automatic shifting from 1st to 16th gear Unique Power Control Lever for full transmission control on the shuttle

CONTACT YOUR LOCAL MF DEALER FOR A REAL DEAL MASSEYFERGUSON.COM.AU | FREECALL 1800 802 914 * Offer ends 30 June 2016, while stocks last. Bonus loader offer applies to the purchase of selected MF5608 or MF5609 tractors. Tractor price includes MF941 Standard loader only.

Consult your local Massey Ferguson dealer for full terms and conditions.

MASSEY FERGUSON®, MF®, the triple-triangle logo® is a worldwide brand of AGCO. © 2016

DAIRY NEWS AUSTRALIA MAY 2016

22 // MANAGEMENT

Eyeing three million running one third as fresh milkers and two thirds in the main herd on quite different diets.

QUEENSLAND They have been FARMERS Paul and growing herd numbers by Linda Roderick aim to using sexed semen for the produce up to a million past two years and took more litres of milk a year the opportunity to buy in by adopting a partial WHO: Paul and Linda 40 crossbred and Friesian mixed ration feeding Roderick heifers. system and splitting their WHERE: “We thought we’d sell milking herd.

Harrisville some excess animals for Per cow production WHAT: export, but after a couple is expected to lift from Partial mixed ration of good years season8000 to 9000 litres and wise, we decided to keep their milking herd is constraints to production them,” Paul said. rising from 240 and will The property produced on their 220ha property be reassessed at 300.

1.9 million litres last Paul is fifth generation with summer seasonal financial year, up from 1.7 conditions particularly on the property Tredegar in the previous 12 months. challenging.

Park at Harrisville and “We are aiming to “We thought we after 20 years working reach 2.5 million, but probably reached a with his parents David think 3 million litres and Gwen he and his wife production peak at about could be achievable,” he 8000 litres per cow and are now taking over the said. to milk more cows we family business.

The fresh With milkers are expansion “We’ve suffered some intensively plans in mind, terrible heat-related setbacks fed for about Michael in the past with production the first Sweetnam dips of 10 and up to 20%. And 100 days of was this year lactation, but engaged as herd it takes time to recover back still get up to co-manager to normal production.”

25% of their to share the diet from increasing grazing in winter and needed to build a new feeding and nutritionspring. feed pad,” Paul said. focused workload.

“We want to get them “But at the same time Paul is an active to peak production more to maximise profits we participant in industry quickly and then hold need to make the best research programs and them at this plateau for use of available pastures is excited about the longer.” which will always be our potential of improving Paul said there had cheapest feed input.” milk yield through already been benefits with Their milking herd genomics. new heifers settling into was split in June last year However, he said with the aim of eventually a smaller herd quicker there were physical GORDON COLLIE

Paul Roderick and Michael Sweetnam at the covered feed pad.

PICTURES: GORDON COLLIE

and with reduced early lactation weight loss.

Getting physically well-developed early milkers is expected to provide long term benefits in better body weight which should flow into better reproductive performance.

The early lactation herd will jump from 84 to 98 milkers to fit with their

DAIRY NEWS ON THE GO CHECK OUT THE LATEST NEWS AND INFORMATION AT

www.dairynewsaustralia.com.au Available every month

just look for the arrow!

14-a-side herringbone.

The dairy has been improved with the addition of a roof over the holding yard.

“It provided an immediate benefit during the peak heat last January when we also operated overhead sprinklers,” Paul said.

“We’ve suffered some terrible heat-related

setbacks in the past with production dips of 10 and up to 20%. And it takes time to recover back to normal production.”

The property comprises about 80ha devoted to cropping and pasture production with the balance tropical grasses.

About 90% can be irrigated with a 400

megalitre licence from Moogerah dam.

Depending on seasonal conditions, there is a mix of full cultivation, minimum tillage and zero tillage with kikuyu mulched down and oversown.

By far their best pasture production is annual ryegrass with other paddocks oversown

DAIRY NEWS AUSTRALIA MAY 2016

MANAGEMENT // 23

litres

PICTURE GORDON COLLIE

feed ration with more emphasis now on grain at the feed pad.

The new roofed feed pad is 42m long and 5m wide with 2.4m side aprons designed to feed about 120 cows at a time.

Paul said there were plans to build two 42m by 5m free standing shade structures either side of the feedpad to provide comfortable cow loafing areas out of the hot sun.

The dairy receives a 4 cents a litre incentive payment from February to May with 2 cents in June and July.

“There is also a 10 cents a litre incentive for milk production over and above the previous year and we are looking forward to taking advantage of that while the herd is in expansion phase,” Paul said.

“I think a price somewhere around 60 cents a litre should see Queensland production consolidated with not much growth. Anything below that and the northern industry will continue to decline.”

Soon your farm must be NPE free.

Like we’ve been for almost 10 years.

KontACT® RTU Advanced

DeLaval Spray & Dip RTU

delaval.com.au B&DEL0030

ryegrass with clover and chicory which provide cheapest feed bulk from mid-May to the end of November.

The pad feeding system really comes into its own during the summer months when grazing is restricted to a forage crop such as lab lab, kikuyu and lucerne.

“Our feeding program can change almost daily with the mixed ration adjusted to maximise available fresh grazing.

“You can’t fight the seasons and in summer the fresh milkers will get a totally mixed ration with the main herd available pasture and a partial ration.”

They make their own lucerne hay and grow barley and corn for silage production.

Paul said a crop of soybeans made high protein silage which was a good pasture substitute during the summer months.

About 500 tonnes of grain is brought in each year split between bail feeding and the prepared

Oversown ryegrass with clover and chicory provide cheapest feed bulk from midMay to the end of November.

KontACT® Concentrate

Introducing Teatsan

DAIRY NEWS AUSTRALIA MAY 2016

24 // MANAGEMENT

Small herd, big universe RICHARD COSGROVE

Dairy farmer Stu Parker combines his loves of cows with a love for astronomy.

WHETHER IN AUS-

TRALIA or New Zealand, many dairy farmers might

L A I C E P S T R O REP NEXT ISSUE: JUNE CALF REARING

The most successful dairy farmers know that future production and therefore profit is made or lost at calf rearing. Young stock are the farm’s future earners. In this special report we focus on the best practice in calf rearing, featuring the latest in techniques, technology, nutrition and animal health.

BOOKING DEADLINE: June 1 MATERIAL DEADLINE: June 7 PUBLISHED: June 14 CONTACT: CHRIS DINGLE | T: 0417 735 001 E: chris@dairynewsaustralia.com.au

recently have been looking into the night skies for stellar inspiration.

That’s just where one farmer, from North Canterbury on New Zealand’s

south island, goes to relax after a hard day on the farm.

Oxford dairy farmer Stu Parker has 250 cows on his 95ha property, and he has a backyard observatory where he searches the sky looking for Supernovas.

Stu is a part of BOSS the Backyard Observatory Supernova Search - and to say he’s good at is an understatement: he’s only the sixth amateur in the world to have discovered a hundred supernovas, and he’s still searching - the current tally exceeds 120.

His wife Lynn describes him as a part-time farmer and a professional astronomer, but it wasn’t always this way.

Dairy News had originally contacted Stu to get his opinion on a Lincoln University study which found small herd dairy farmers were generally happier with their lot.

Stu had been a large herd farmer in Southland, then he shifted back to North Canterbury to a small herd six years ago.

In Southland the Parkers milked 700 cows as contract sharemilkers as well as milking 250 cows on their own farm some distance away.

It was full on, Stu racking up 35,000km one year driving between the farms.

At one stage they realised they hadn’t had a day off in three years and Lynn hadn’t left their farm in nine weeks.

After some family members died, the Parkers realised you couldn’t put a price on your sanity and they moved to North Canterbury.

On bare land near Oxford they started from scratch, rediscovering life.

Saying that he couldn’t go back to a big herd, Stu finds small herd farming more enjoyable, saying you can truly get to know your cows and have a better quality herd; the couple have excelled at pedigree breeding Friesians.

Being a member of Ambreed for 26 years, they were delighted to have a bull accepted by the firm, and they also have a stunning line of heifers coming through this year.

Saying that the scale can be difficult, he said: “You can’t do anything about the payout so you have to focus on your farm and your cows; that’s where you can make a difference.”

They recounted that when they were sharemilking the payout was at one stage (NZ)$3/L, of which they were getting only half.

It’s obvious the Parkers have a bond with their cows: when it’s milking time many of the cows will come over for a scratch or rub while waiting their turn in the shed.

Stu says some farmers will think he’s soft, but when recently faced with a dying cow of 16 years standing on the farm, he opted to have a vet euthanase the animal and he buried her on the farm.

He asks, ‘what’s the point of sending her off to the works and getting $500 for her when she has given many thousands of dollars to the business over those 16 years?’

The Parkers have done some big farm things like centre pivot irrigation and a winter shed for the 60-odd cows they winter milk.

He describes the shed as necessary for maintaining condition in the harsh snowy winters Oxford can experience.

Downsizing has allowed him to have a bit more of a life; Stu says he’ll step back a bit when the downturn comes right.

Not wanting 100% of their focus to be on the farm is how he expanded his astronomy hobby.

Joining the supernova search has given him a new challenge. A supernova is a star at the end of its life, going out in a huge explosion whose after-effects are visible from earth.

With the discovery of his first supernova in 2009, he has gone from strength to strength, recently buying a new 16inch telescope from Italy.

He now trips overseas to speak at international conferences or to compare notes with other members of the project - impossible if he were still farming a large herd.

DAIRY NEWS AUSTRALIA MAY 2016

ABVs // 25

Breeders at the top of their game “She was one of our most successful cows.

In addition to all the top ABV bulls, she produced 10 daughters which all classified Excellent.

“Her influence will continue through her daughters and we also have a full sister to our two Tbone ranked bulls Edison and Ensign,” Alan said.

Cairnbrae Stud which was founded in 1946 has enjoyed success with Estelle bloodlines over many years with more than 100 members of the Cairbrae Jerseys have two top sires in the top 8.

PICTURE: ELLAWRIGHT.COM

George Wagner pictured with Wrangler (also inset), who ranked number two behind his brother Geemcee.

PICTURE: GENETICS AUSTRALIA.

cow family now in their herd.

Alan and his wife Janine have continued the long family tradition of breeding excellence since they took over in 1976.

Top New Zealand bloodlines were an early mainstay and from the 1990s US genetics have been introduced with great success.

Alan has travelled all over Australia for more than 30 years inspecting the best Jerseys as a breed classifier.

“We have used our

knowledge to breed functional dairy cows that suit our environment.

“We have never tried to breed a show cow, but when a good cow comes along we give her the opportunity to compete in the show ring. We’ve bred royal show winners in most states,” Alan said.

VFoske (V Foske) and Arbobama (Beaulands Obama) were in the number 1 and number 2 spots for the Red Breeds.

VFoske’s BPI was $287, significantly ahead of Arbobama at $202.

PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com

expected to strongly appeal to Holstein producers.

Both bulls are embryo IN A unique feat of transfer, sired by a genetic excellence, two deceased Manoman bull leading dairy studs have in the US out of a top each produced the top ranked pair of bulls in the ranking member from the latest Australian Breeding Janea cow family.

“We lost the dam Values (ABVs) for a couple of years ago, Holsteins and Jerseys.

The latest release ABVs but we’ve still got the bloodlines, flushing a full were published by the sister to the top ranked Australian Dairy Herd Improvement Scheme on bulls,” George said.

The Janea cow family April 11. has had a profound Underlining their influence and is still depth of quality, both strongly represented in Rengaw Holsteins and the Rengaw stud herd.

Cairnbrae Jerseys have The stud was also placed the 8th ranked registered in 1968, with sire in their respective real genetic advances, breeds. including ABV success For Rengaw principle coming from the 1990s.

George Wagner from “We’ve been Winnaleah in north-east pleased with the Tasmania, dominance in acknowledgement of our the latest ABVs is just the latest accolade in a career breeding success and recognition as the top spanning 50 years. influencing Holstein herd The productionin Australia,” George said. focused producer has Cairbrae leads the way been ranked the number THE top ABV Jersey one Holstein herd in bull Elton (Cairnbrae Australia and bestowed Jaces Elton) has had a the Holstein title of huge influence on the Master Breeder.

George has now ceased breed.

Cairnbrae stud active dairying with his breeding herd transferred master Alan Carson from Irrewillipe East in south to the property of his west Victoria, said the daughter and son-in-law bull had been in Courtney “Our sires AI since 2009 and Jared and had steadily Ireland near are proven to Lockington all-rounders climbed reach the in northern with good number 1 Victoria. fertility, ranking as a 12 “I’ve got the last of components year old.

“It’s very my young and low cell unusual to bulls here on counts.” have a bull so agistment, highly rated but I still for so long. They usually take an active interest in tend to come and go quite breeding, flushing about quickly,” Alan said.

10 cows a year,” George The latest ABV scores said. were aggregated from “We have always used 4437 daughters across 464 the best bulls available with production our main herds, more than 10 times other top ranked sires. aim and it has reflected Cscedison (Cairnbrae in our herd performance Tbone Edison) was over many years. ranked the second Jersey “Our sires are proven bull with Cairnbrae all-rounders with good fertility, components and Tbone Ensign at number 8. low cell counts.”

Ensign is the highest The top ABV Holstein rated udder bull and bulls are full brothers expected to be extremely with Geemcee (Rengaw popular with Jersey Manoman Hummer) breeders. ranked number 1 and All three bulls are Wrangler (Rengaw closely related sires from Manoman Wrangler) the same cow, Cambrae number 2.

Alfs Estelle, making the George said the deceased dam one of the second-placed bull most influential Jerseys in Wrangler was highly Australia. ranked on type and was GORDON COLLIE

DAIRY NEWS AUSTRALIA MAY 2016

26 // ABVs

Visual appraisal of cattle ‘a waste of time’ MICHAEL PORTEUS

AN AUSTRALIAN

geneticist who has won a top American science award for his groundbreaking work on genomics says visual appraisal of dairy cows is largely a waste of time.

Melbourne University professor Mike Goddard picked up his US National Academy of Sciences medal in April amid indications that his work on genomic selection in dairy cattle might also lead to benefits for human health.

Prof. Goddard also has advice for those dairy

farmers who may still be relying on visual appraisal only of dairy cattle: it is largely a waste of time, promoting skinny cows with poor fertility.

He wants all breeders to work with the Australian Dairy Herd Information Service (ADHIS) and urges them to upgrade the

way they upload their data to ADHIS to help progress on fertility.

Prof. Goddard also says the hybrid vigour produced by cross-breeding is the closest thing farmers will ever get to a free lunch.

The hybrid off-spring can then be crossed back

with either parent breed, and “you are always ahead”.

Prof. Goddard apologised before he answered a question about the visual appraisals used in classification and show rings.

“Sorry to be impolite,” he said. “But it’s largely a waste of time. We’ve got

Australia’s best new Holstein sensation Rengaw Manoman

WRANGLER Man-O-Man x Shottle x Goldbullion

✓ Breed Leading BPI 291/69% ✓ High Milk Solids +.32%P +.35%F ✓ SCC Improver 122 ✓ Improves Fertility 105 ✓ Calving Ease 102 ✓ Solid Type 104 ✓ Semen Fertility +2.9/389 obs ✓ A pedigree that features farmer favourites Goldbullion, Shottle and from the same cow family that produced the ever popular JUDGE! April 2016 ABV

Rengaw Man-O-Man Wrangler

Bradley Cullen

Proving the world’s best genetics for Australian farmers and conditions and standing in Australia!

Wrangler daughter bred by Steven & Jodie Huth, Cooriemungle, Vic

Freecall: 1800 039 047 www.genaust.com.au

ourselves into a few misleading situations.

“For example, a long time ago, before we knew how much milk each cow gave, a cow that was not too fat – in fact positively skinny – was probably giving more milk than a cow that was fat.

“A preference for skinny cows developed.

“But when you know how much milk the cow gives, there’s absolutely no benefit of selecting for skinny cows.

“But people have continued to select for skinny cows – calling it dairy character or angularity – as well as selecting for milk yield.

“What that has done is decreased fertility, and decreased hardiness.

“Because one reason a cow is skinny is that there is something wrong with her.

“Secondly, the cows that are really skinny don’t cycle and don’t get pregnant.

“This traditional philosophy of selecting for dairy character should have been abandoned years ago as soon as we started measuring milk yield.”

Prof. Goddard grew up in Melbourne where he studied to be a vet.

He worked on the genetics of guide dogs and tropical beef cattle before specialising in dairy genetics.

He said genomic selection uses DNA markers all over all of the chromosomes to identify a trait. Previous practice had looked for a couple of markers you hoped would work.

In 2000, Prof. Goddard began work with Norwegian visiting scientist Theo Meuwissen on simulations of an entire dairy cow genome. They published a paper in Genetics in 2001 with another Melbourne scientist Ben Hayes – who now heads the dairy cattle genetics program at the Dairy Futures CRC. This paper is now seen as the foundation of genomics.

The US National Academy of Science’s says that the principles of genomic

Prof. Goddard

selection come from the landmark paper.“The trio showed that it should be possible to identify individuals with high genetic value by using thousands of molecular genetic markers covering the entire genome,” the academy notes.

“Genomic selection has now been applied to other animal species, such as pigs and poultry, as well as plants, such as cotton, rice, and wheat.

“And the concepts behind genomic selection have even proved useful in the field of human genetics and the search for predictors of disease.”

Prof. Goddard says a third of dairy inseminations in Australian now use straws from genomically-tested bulls and that most advanced countries have switched dairy breeding to genomic selection.

The next stage is pushing the boundary for how young animals can be used for breeding. “We are working hard to make genomic selection as accurate as we can for all of the important traits,” he said.

He believes yield can and must increase: “I think it can get a lot higher. It always seems like you’ve reached the pinnacle, but in fact we always manage to get more still.

“You’ve got to run more cows per person, and you’ve got to get more milk per cow.

“People worry correctly that increasing milk yield puts more stress on the cow. We have to select not only for increased milk, but for all the other things that we want.

“It’s a matter of getting that combination right.

You identify the bulls that have got the most profitable daughters, and whose semen doesn’t cost too much.”

DAIRY NEWS AUSTRALIA MAY 2016

ABVs // 27

Genetics keep getting better WHEN IT comes to finding the best bulls to use over Australian dairy herds, they keep getting better and better, as demonstrated by the April 2016 release of Australian Breeding Values (ABVs).

Daniel Abernethy from the Australian Dairy Herd Improvement Scheme (ADHIS) said this release had improvements in reliabilities across all traits, giving dairy farmers even more confidence in their bull choices.

As an example, the reliability of the Balanced Performance Index (BPI) has increased by 5.8% in Holsteins and 2.5% for Jerseys (see table).

“In the world of genetics these numbers represent significant improvements,” Daniel said.

The increases in reliability came from the addition of genotypes for 30,000 females in 100 herds into the reference population, through the GINFO project.

GINFO is a major delivery of the Dairy Futures CRC in its last six months of operation. Ginfo is a

collaboration involving the DairyFutures CRC, ADHIS, Holstein Australia, Jersey Australia and the Victorian Government (DEDJTR).

Genetic gains are making solid improvements across Australia’s dairy herds.

For example, after 20 years of declining dairy cow fertility, the genetic trend has turned around and improved every year since 2011 year. It is now about 5% higher than cows born in 2011, and similar to cows born in 1996.

Michelle Axford, from ADHIS, said this was an example of the gains that can be made through increased emphasis of fertility in Australian selection indices, particularly in the Balanced Performance Index (BPI) and Health Weighted Index (HWI).

“We can expect further gains as the focus on fertility in indices has increased further in the past couple of years,” she said.

“On top of that, bull companies and farmers are paying extra attention to the Daughter Fertility ABV when making their

final bull selections.

“We are now seeing the direct benefits on farm. Cows with higher daughter fertility ABVs get back in calf sooner – that is they have higher 6-week in calf rates.”

Michelle said the simplest way to improve the genetics of herds for fertility was to choose bulls from the Good Bulls Guide or app with a high Daughter Fertility ABV (>104).

She said recent research had given dairy farmers more choice for bulls with better fertility ABVs and more confidence in those bulls.

“The reliability of the Daughter Fertility ABV has improved significantly and there are more bulls with much higher Daughter Fertility ABVs to choose from. This is the outcome of collaborative work between ADHIS and the Dairy Futures CRC,” she said.

To find out more about the changing dynamics of Australian dairy herds, download the Australian Dairy Herd Improvement Report 2015 from www. adhis.com.au.

(Source: ADHIS)

DID YOU KNOW? ■■

At an average of 14% of total assets, the dairy herd is the second largest asset for many dairy farms. Genetics is the main tool farmers use to develop and grow this asset

■■

In the past decade genetics has contributed 30% of productivity growth

■■

■■

Genetics is permanent and is compounding from generation to generation which means that every breeding decision counts.

Poor breeding decisions have a long term impact on herd productivity Younger Holstein cows (born in 2012) are about $100 per

Daughter Fertility 4.5 2.7 2.4 1.2

■■

■■

ADHIS uses world’s best practice in genetic evaluation which means a team of highly respected scientists use complicated statistical models to independently evaluate bulls and produce Australian Breeding Values for 40 traits for thousands of bulls. Farmers, on the other hand, need a no-nonsense approach to cutting through the complexities to find

■■

The milk solid yields of herd recorded cows have increased by almost 100 kg/ cow/year since 1999

■■

Not only do the daughters of higher genetic merit sires produce well, they are just as likely (if not more likely) to last in the herd compared to daughters of lower genetic merit sires

■■

Source: ADHIS

Fertility, Type and Production...

Glomar

SUPERLUCKY-ET

NEW RELEASE

• #1 Available Australian Genomic +298 gBPI • Positive components • Great type with high, wide rear udders

A2 A2

Supersire x Goldwyn x Roumare

Average increase in reliability (%) BPI Young genomic bulls Holstein 5.8 Jersey 2.5 All genotyped bulls Holstein 3.4 Jersey 1.2

a team of bulls that best improve their herd. This is why ADHIS produces the Good Bulls Guide to help farmers breed better herds by using better bulls in the least confusing way

year more profitable than their counterparts born in 2000. This is the result of the breeding decisions farmers and bull companies have made

dam: Glomar Goldwyn Lucky 4319-ET VG-87 (photo Bradley Cullen)

Overall Type

AVAILABLE SEXED

7.1 2.4

29HO18045

No-Fla

MERIT-ET

A2 A2

• 5 Star TransitionRightTM sire • Extreme health trait improver • #1 available daughter fertility bull in Australia • Medium size cows

4.2 1.3

Altagenuity x Altagreatest x Freddie

Araluen Park Bandanna

CSCBANDANNA

A2 A2

• 4-Star TransitionRight sire • # 2 Australian Genomic sire +279 gBPI • Above average daughter fertility • Adds teat length TM

CSC

CENTRAL SIRES CO-OP LTD.

Tbone x Valerian x Outinfront

CSC

*gTPI is a servicemark of Holstein Association USA, Inc

CENTRAL SIRES CO-OP LTD.

GET SOCIAL WITH DAIRYNEWS Keep up with the latest stories from by following us at

(l-r) dam: No-Fla Greatest 33143-ET GP-82 (photo Maggie Murphy) TBone dtr: Wallacedale Tbone Melys EXC92. (Photo Simon Tognola)

DairyNewsAustralia

DairyNewsOz

CHECK OUT THE LATEST NEWS AND INFORMATION AT www.dairynewsaustralia.com.au

Profit from Genetic Progress Scan the QR code to view the ABS Australia website

FOR SERVICE AND ADVICE YOU CAN TRUST 1800 ABS BULL www.absglobal.com/aus

we

dairying

At LIC we’re continuing to build our genetics, monitoring and service offering in Australia.

Australian dairy farmers can now benefit from our collaboration with CRV to access the best genetics from New Zealand and the higher input genetics provided by the CRV range from The Netherlands and USA through one provider, LIC. Couple this with LIC’s know how and expertise in technician services, automation, heat detection and inline sensors and you have a semen supplier that delivers you, the farmer, so much more value on farm.

FREEPHONE: 1800 454 694 Email: admin@livestockimprovement.com.au www: licnz.com.au

DAIRY NEWS AUSTRALIA MAY 2016

ABVs  // 29

Australian Breeding Values April 2016 GOOD BULLS GUIDE FOR HOLSTEIN - Balanced Performance Index - Australian Proven Bulls INDICES

Rank Bull

Bull Name

BPI $

1

Geemcee

Rengaw Manoman Hummer-ET

296

2

Wrangler

Rengaw Manoman Wrangler-ET

3

Goldcrest

4

PRODUCTION TRAITS

BPI Rel

ASI Rel

SURVIVAL

No. Dtrs

No. Herds

77

45

20

102

232

77

44

23

272

218

84

67

221

277

199

97

79

165

289

261

274

88

199

258

Jet Star Manoman Trickin

268

75

198

Janek

Rengaw Jardin Janek

264

77

9

Delsanto

Manna Farm Del Santo

248

10

Sholtz

St Clair Sholtz-Twin

11

7H8081

12

CONFIRMATION TRAITS

WORKABILITY

DAUGHTER FERTILIITY

FEED SAVED

Dtr Fert

Feed Saved

Rel

Source

Over Type

Mam Syst

Type Rel

Milk Spd

Temp

Like

64

98

101

75

101

103

103

68

104

64

-105

39

GAC

106

64

104

102

75

100

102

102

67

105

65

-72

39

GAC

32

104

63

101

102

71

103

100

102

67

97

71

101

38

GAC

416

40

107

85

105

103

89

99

99

102

85

108

91

-47

41

SEM

89

100

31

103

68

108

101

81

102

101

101

74

98

75

-158

41

GAC

175

96

285

48

108

80

106

98

88

100

104

103

89

104

89

-98

43

UVS

255

172

84

45

27

106

68

105

101

78

105

101

101

70

107

63

-52

39

GAC

212

248

184

88

92

28

106

64

104

104

71

101

103

103

74

102

72

48

37

ABS

92

177

266

234

99

2087

287

99

90

106

111

97

100

102

103

98

97

94

26

47

GAC

244

75

167

242

182

85

64

35

106

66

104

102

72

100

104

103

67

99

74

-126

38

ABS

Ensenada Taboo Planet ET

242

92

209

248

97

99

753

145

110

94

104

109

98

100

103

103

96

102

96

-76

47

GAC

Niels

Hill Valley Niels

241

73

191

263

148

84

63

31

106

59

105

104

62

97

102

102

70

100

70

-29

33

ABS

13

Buddha

Bushlea Perfector Bold-ET

240

91

185

213

157

99

2107

318

104

84

102

101

97

100

102

102

98

103

92

-23

47

GAC

14

Canbee

Country Road Roumare Canbee

238

85

154

248

238

95

277

76

102

76

104

103

90

104

103

102

89

95

79

-45

44

ALT

15

29HO12470

Indijks Babylon

237

89

165

210

169

97

503

113

104

84

102

99

89

100

100

101

92

108

88

-114

44

ABS

16

29HO12772

Ballycairn Oman Pello

232

79

187

184

121

88

59

25

106

74

99

97

81

101

101

102

75

110

78

-36

41

ABS

17

YJ

Gallrae Tennyson YJ

228

73

170

212

128

83

59

27

106

62

104

101

72

100

100

100

67

110

70

-104

38

ABS

18

Carlana

Kaarmona Carlana

227

73

158

219

169

82

52

29

104

64

103

104

75

101

100

101

69

98

71

-95

38

GAC

19

Roufector

Bundalong Roufector

225

78

145

256

212

88

87

36

103

69

109

107

77

105

103

104

75

95

76

-64

40

ALT

20

Opaleye

Dilee Planet Ollie 958-ET

225

71

185

242

157

82

56

30

105

60

106

111

68

99

101

103

67

102

68

11

36

GAC

HWI

TWI

ASI

69

191

230

258

291

69

201

259

Topspeed Goldyn-ET

291

74

234

Homanifold

Mainstream Manifold

291

88

5

Christmas

Emu Banks Christmas-ET

278

6

Cogenttwist

Cogent Twist

7

Trickin

8

Survival

Rel

Rel

Rel

GOOD BULLS GUIDE FOR JERSEYS - Balanced Performance Index - Australian Proven Buls INDICES

Rank

Bull

BPI $

Bull Name

PRODUCTION TRAITS

BPI Rel

HWI

TWI

ASI

ASI Rel

No. Dtrs

SURVIVAL

No. Herds

Survival

CONFIRMATION TRAITS

Rel

Over Type

Mam Syst

Type Rel

DAUGHTER FERTILIITY

WORKABILITY Milk Spd

Temp

Like

Rel

Dtr Fert

Rel

FEED SAVED Feed Saved

Rel

Source

1

Elton

Cairnbrae Jaces Elton

312

93

225

330

208

99

4437

464

106

96

108

106

97

104

105

104

99

100

98

-118

44

ABS

2

Cscedison

Cairnbrae Tbone Edison

296

75

165

304

274

86

82

35

103

63

103

103

71

103

103

102

76

95

69

-242

34

ABS

3

Raceway

Aberdeen Valerian Sandown-ET

286

81

214

289

211

91

119

45

104

70

106

111

82

104

104

105

81

100

77

-46

39

GAC

4

Cscambition

Riverside Ambition

286

75

242

258

188

86

68

28

103

64

102

106

71

104

101

102

74

103

72

109

34

ABS

5

Navarian

Colnarco Navarian

284

75

220

285

195

86

76

36

105

61

106

109

65

102

102

104

75

103

72

-29

32

GAC

6

Strzelecki

Araluen Park Strzelecki

273

70

197

198

242

80

55

18

104

60

101

97

73

102

103

105

70

101

59

78

35

GAC

7

7J1038

All Lynns Louie Valentino

271

84

210

350

135

94

186

44

112

76

114

112

85

104

107

107

82

97

85

-175

40

GAC

8

Cairnbone

Cairnbrae Tbone Ensign

263

74

191

338

178

85

69

25

104

62

113

120

70

99

100

101

71

100

69

-139

34

ALT

9

Vipor

Nowell Viper

263

72

219

267

173

83

53

21

104

61

104

112

69

106

103

103

67

104

72

55

33

AGR

10

Crvmarvarie

Wallacedale Marvarie ET

235

72

167

239

189

84

69

21

103

60

110

107

70

103

107

103

71

104

61

-47

34

CRV

GOOD BULLS GUIDE FOR RED BREEDS - Balanced Performance Index - Australian Proven Bulls INDICES

Breed

BPI $

V Foske

U

287

Arbobama

Beaulands Obama

U

3

Randersdavid

R David

4

Arbbonjovi

5

Rank Bull ID

Bull Name

1

Vfoske

2

BPI Rel

PRODUCTION TRAITS No. Dtrs

No. Herds

98

347

40

108

141

92

85

36

178

41

97

259

127

138

118

99

76

87

79

173

164

77

160

182

147

84

153

124

CONFIRMATION TRAITS

DAUGHTER FERTILITY

WORKABILITY

Over Type

Mam Syst

Type Rel

Milk Spd

Temp

Like

80

106

105

86

101

103

104

92

105

106

53

102

100

56

105

100

103

80

49

110

80

100

101

81

100

100

100

1284

200

102

86

98

100

86

102

100

93

96

37

95

56

93

90

64

90

63

92

82

37

103

57

102

106

57

50

96

154

22

104

76

96

101

66

HWI

TWI

ASI

88

201

286

206

202

76

151

206

U

182

87

167

Bosgowan Bon Jovi

U

172

90

Arbdmax

Louvic D Max

U

164

6

Arblever

Louvic Lever

U

7

GEDBO2263

G Edbo

U

ASI Rel

SURVIVAL

Survival

Rel

Feed Saved

Rel

Source

88

-142

40

VIK

102

65

-16

28

GAC

88

104

89

-26

38

VIK

102

97

104

93

-16

40

GAC

102

98

77

102

59

-68

32

GAC

99

96

99

75

104

69

98

28

GAC

105

102

102

82

101

85

162

34

VIK

Rel

Dtr Fert

FEED SAVED

Rel

DAIRY NEWS AUSTRALIA MAY 2016

30 // ANIMAL HEALTH

Antibiotic resistance an emerging global problem PERHAPS ONE of the greatest medical breakthroughs of our age was the discovery of penicillin by Alexander Fleming in 1928.

New antibiotics were rapidly discovered which revolutionised the means by which infectious diseases were treated.

Suddenly, common human infections became easily curable and outbreaks of infectious disease were readily controlled.

However, just a few years after the golden age of antibiotics, warning signs of developing resistance were observed.

Just as Fleming had predicted, previously susceptible bacteria were developing drug resistance at an alarming speed.

Although the magnitude of this problem is still unclear, it is proposed that abuse and misuse of antibiotics is largely responsible for the development of resistance.

In an effort to slow this phenomenon, in 1955 penicillin was no longer freely available to the public, in lozenges and creams, and instead became ‘prescription only’.

In less than 100 years after antibiotic discovery, we now face a grim scenario for the generation to come where most antimicrobials might no longer be effective.

Human and veterinary medicine may once again enter an era where common bacterial infections could once again prove lethal.

What is antibiotic resistance?

Antibiotic resistance is the ability of a bacteria to survive and multiply in the presence of an antibiotic agent that would normally inhibit or kill this species of bacteria.

iDAIRY®

antibiotic solutions are Bacterial populations readily available or when can quickly modify the use of antibiotics themselves to resist for a particular disease antibiotics and then pass condition are clearly not these resistance traits to effective. the next generation of Antibiotics may be bacteria. used therapeutically Sharing of resistance in animals for treating genes with other types specific bacterial of bacteria has also been THE VET GROUP diseases. seen.

GEMMA CHUCK They may also be Antibiotic resistance used for non-therapeutic is just one mechanism by which bacteria have adapted to survive purposes such as prophylaxis and and is nearly as old as the discovery of metaphylaxis.

Veterinarians often prescribe antibiotics themselves.

A concerning fact in the modern antibiotics to animals that are not world is the rate at which antibiotic currently ill with a particular disease, resistance often develops and how but are at high risk of acquiring an quickly it spreads across the globe and infection.

For example, an animal may be amongst different species of bacteria.

Worryingly, more bacteria have also treated with antibiotics after having developed multiple drug resistance undergone surgery (prophylaxis) or which severely limits therapeutic herds may be given antibiotics if they options for infections in both animals are at risk of suffering an outbreak of infectious disease due to high and people. risk of exposure to disease agents Antibiotics in food-animals The use of antibiotics in animals (metaphylaxis).

In the dairy industry, mass closely parallels their discovery and administration of antibiotics is often usage in humans.

In the 1940s, the first antibiotic was practiced during dry-cow therapy introduced into food animal medicine. to help prevent mastitis or prior to Subsequently newer antibiotics were transportation of livestock over large discovered and made available for food distances to help prevent respiratory animal species and their use became disease.

Prophylactic or metaphylactic use widespread to treat a multitude of of antibiotics can aid in the control infectious diseases.

Antibiotic usage in food animals and prevention of numerous animal improves more than just animal well- diseases.

However, this use of antibiotics being but also has economic benefits for food animal producers along with should never be intended to replace the a safer public health sector. However, need for good management practices, the unnecessary or wasteful use of given that the use of antibiotics will antibiotics should be avoided when non- eventually lead to resistance.

TH1848M 25-8-15

“we make farming ezy”

ONLINE SPECIAL

www.technipharm.com.au

PACIFIER

™

Storage of effluent is taking a whole new turn with an ECOBAG™ Cost effective with limited engineering needed.

Almost no smell and no crusting ever PLUS the added benefit of less evaporation of valuable N!

Nothing grows grass like Rainwater….

Now you can create RAINLIKE water™ Want to know more? Contact us today

TOP TECH™ HIGH LIFT GATE

SPEED SENSITIVE TEATSPRAYER™

Cows hard to get into the dairy parlour for milking?

The Top Tech™ high lift gate is sensitive and does not bulldoze the cows.

A reliable management system resulting in less stress for cows and staff.

MILK CHECKER™

practices and animal husbandry will help reduce the usage of antibiotics on farm and it is important to report periods of increased antibiotic treatments to your veterinarian.

Only use antibiotics in dairy animals for the specific reason for which they have been prescribed, at the specific dose rate and for the specific duration of treatment.

If the effectiveness of an antibiotic has decreased over time, report this to your veterinarian immediately.

A holistic approach to disease prevention is required to create a sustainable farming system that does not rely solely on mass-medication with antibiotics.

This is critical to the future of dairy farming, veterinary and human health.

Note: The author would like to acknowledge the “Get Smart on the Farm” program by Michigan State University, the University of Minnesota, and the Centers for Disease Control and Prevention, USA. • Gemma Chuck is a vet with The Vet Group, Victoria, Australia.

MAGNATION

ECOBAG™ conditions may apply, all offers plus GST and freight, all IP rights reserved

How can we slow down antibiotic resistance?

Prudent or judicious use of antibiotics is “the optimal selection of drug, dose and duration of antibiotic treatment”.

In addition to this, inappropriate and excessive treatments should be reduced to help slow the emergence of antimicrobial resistance.

In the dairy industry this means that veterinarians and dairy farmers have dual roles of protecting animals from pain and suffering, while safeguarding the interest of public health.

Guidelines for antibiotic usage on-farm should be developed in conjunction with your veterinarian.

Each farm will be different and it is important to review these guidelines frequently.

Good records are essential to help determine the pattern of antibiotic usage from season to season and from year to year.

Record keeping also prevents antibiotic-treated animals from contributing to the human food-chain.

Improvement of farm hygiene

Special $1195 N0RMALLY

$1495

High SCC? Possible penalties and treatment cost?

Test for infections with instant results.

Instant indication of infection level, instant results on treated and retested milk before it goes back into the vat. Ezy Quik and instant results

ANIMAL CONTROL UNIT

Cow teat condition abismal? Cost of treatment and labour for manual spraying high?

Invest in an automatic teatspray system.

All your cows teatsprayed correctly every milking and a reduction in labour and cost.

DAIRY HANDLER + GROOMER™ NZ’s most popular Hooftrimmer.

Lame cows and treatment a real hassle?

Cow care and staff safety compromised?

NEW

Fresh cows on the platform?

A neuro immobiliser relaxes the cow and a relaxed cow will get used to milking more easily.

Reduced labour, less staff frustration and better overall animal wellbeing. *Conditions apply.

All prices exclude GST, Insurance & freight.

$N1 595 ormal ly $1795

NEW...NEW...Scan the Code using your smartphone .

Walk throug h headlock

Get a professionally designed hoofcare handler.

Cows lame feet treated early and staff kept safe.

For more solutions to make farming ezy... FREE Ph: 1800 124 034 Go online: www.technipharm.com.au

DAIRY NEWS AUSTRALIA MAY 2016

ANIMAL HEALTH // 31

Lessons from history ROD DYSON, DAIRY FOCUS

THE LAST significant

in-season drop in the price of milk to suppliers was in 2008, and that doesn’t take a long memory to recall – it is hardly ancient history!

The price drop in 2008 triggered a range of responses, some of which produced significant lessons which shouldn’t be forgotten.

In terms of milk quality and mastitis control there are three lessons that should probably be recalled now to avoid history repeating itself.

Dry-off Many farms which made radical changes to their dry-off routine (mainly in terms of product selection & cow selection) suffered a significant “blow out” in terms of cell counts and cases of mastitis in the following lactation, resulting in costs that were way in excess of the saving made at dry-off.

Many of these farms also had significant longer term effects on their milk quality and mastitis control.

This does not mean it is not possible to cut some costs at dry-off, but the lesson from 2008 is that understanding what effect each compromise has on the risk of mastitis will allow an informed decision to be made, and also give an opportunity to potentially alter other management areas to reduce that risk.

Also consider that whilst every compromise has an effect, some changes have a lesser risk than others, and some changes may have “workarounds” that will help to manage the change in risk.

If you think you need to make compromises at dry-off, make sure you have a discussion with your advisers about how to minimise the risks, and how to best manage the changes in risk that are likely to result.

Items to consider in that discussion will include product selection (in terms of both cure rates of existing

infections and prevention of new infections), and cow selection (in terms of which cows should be treated and how to choose them).

As an example, if you were considering removing teat sealant from your dry-off treatment protocol, the main effect will be to increase the risk of new infections, especially around calving.

After discussion, you may decide that the increased risk is a risk you do not want to take at all, or you may choose to limit the risk to a certain group of animals (e.g. the heifers), or you may choose to consider a “work-around” in terms of altering your calving management for either the whole herd, or that particular group of animals, in a way that reduces that risk at calving.

Also, if you are considering selective treatment of cows, don’t be surprised if your adviser suggests a different cell count threshold for treatment than you might have expected.

Culling Already many herd managers are talking of reduced numbers for next season.

Selection of cows to cull is always based on many factors, but cell counts and mastitis are always in the mix to be considered.

Countdown has given us good guidelines to use when considering cows for culling.

Firstly, cows that have had three or more clinical cases of mastitis in a lactation should appear on most preferential culling lists.

However, the use of cell counts for culling requires a bit more thought, as just culling the cows with the highest cell counts at the most recent herd test may not give the best outcome.

A number of factors including a cow’s age, production, udder conformation and history of dry cow therapy and clinical cases should also be taken into account.

As an example, an older cow with a history

of high cell counts after having being treated with dry cow therapy should generally be higher on the preferential cull list than a young cow that has never had dry cow therapy, even though the younger cow’s cell count may be considerably higher.

This is because the

cow that has never had dry cow therapy is likely to have a greater chance of cure with that therapy than a cow that has already failed to cure before.

It is likely that taking a little time to work through your cull list will give you a better outcome.

Replacements Another lesson from 2008 is that some farms that chose to reduce costs and gain extra cash by selling replacement heifers subsequently found it to be a long hard road to rebuild the herd at a later date.

Not only that, but their ability to cull cows

for any reason was also severely compromised for some years afterwards.

In summary, some hard decisions are likely to be needed. Also, there is no single answer to any of these situations or questions, and every farm is different.

However, it is almost

certain that an informed decision with some forward planning to cover any changes in the farm’s milk quality and mastitis risk profile is likely to give a far better outcome.

History has given us some lessons to learn from, and now is the time to heed those lessons.

DAIRY NEWS AUSTRALIA MAY 2016

32 // MACHINERY & PRODUCTS

Emissions and automation gains from Fendt 310 Vario JEANETTE SEVERS

IT IS the little “one

percenters” that farmers look for to make a difference in their production systems, whether it is dairy or another agricultural industry.

So it is for Fendt, the German manufacturer of one of the top of the range tractors available in the Australian market, which is achieving the highest level of emission control against European standards.

“It’s called ‘AdBlue’ and it neutralises emissions,” said AGCO’s Chris Dalton, who had several of the tractors on show at Farm World in April.

“When too many emissions build up, the injection system will use selective catalyst reduction to neutralise them with ‘AdBlue’.

Chris Dalton shows it is a simple way to AdBlue.

“Consequently, low level emissions will be produced.”

The additive is a 32.5% solution of urea which converts nitrous oxides into nitrogen and water.

‘AdBlue’ is consumed at an average 7% of the diesel consumption.

The effect is to lower the carbon footprint of the entire enterprise and, possibly, use less diesel which saves money.

Those claims, of course, are also dependent on operator use, quality of fuel, terrain, use of the tractor and such things as maintenance of the machine.

“The tractor is always driven at the lowest engine speed possible – which means automatic efficiency,” Chris said, speaking at last month’s Farm World expo in West Gippsland.

“We’ve had a lot of interest from farmers in

the Fendt 310 Vario.”

The latest model (pictured) – the S4 – used about 50% less ‘AdBlue’ than its predecessor model – the SCR – for better emission control, Chris said.

With the focus on precision agriculture globally as well as in Australia, Fendt has stepped up to the mark, with automated operating sequences.

The VarioGuide is a guidance system accurate to within 2cm and, with all electronic controls united in one terminal for the first time, there is integration across tracking, the camera, auto-steering and documentation systems.

A ball-head joint in the bracket enables the terminal to be pivoted so the operator can view it at all times. There is also night mode, so the display can be dimmed for the operator’s comfort.

Basically, using icons and data packages, the information the operator needs is all there visually in an easy-to-see and assess manner on the terminal.

The operator’s manual is easily accessed by pressing the help button.

The multi-function joystick is also pretty easy to work with – basically,

Chris Dalton, AGCO, with Fendt 310 tractor.

you don’t need a high level of learning to know how to use it.

The terminal and joystick are only set up for right-hand use, but operators can utilise

the seat swivel to get a large panoramic view of surrounding terrain, Chris said.

Fendt also claims to be able to integrate all machinery operations

through the one system – useful for corporate or large family farming enterprises.

While Fendt is the top of the range for machinery, with 2% of

the total tractor market, AGCO also manufacture top-end Massey and Valtra tractors and export the three brands worldwide, through a dealer network.

Valtra T234

Not just a good looker TRACTORS HAVE come a long way in design, as seen if you compare today’s machines with yesteryear favourites like the MF 135 or the Ford 4000.

Nowadays these workhorses have more exterior curves than Marilyn Monroe, and interior finishes fit to make automobile makers cry.

One such ‘modern’ tractor, the Valtra T234 from the AGCO camp,

recently won a prestigious Red Dot Design Award for 2016 in a competition that drew 5200 entries from 57 countries being judged by 41 design professionals from around the world.

The Valtra T4 series is the result of seven years R&D, and is the first of a new generation of tractors where technical innovations and a whole new look are brought

together.

The clean exterior lines look good, and underlying design work has focused on usability, ergonomics, safety, durability, serviceability and productivity.

Incidentally, the fourth-generation Valtra have also won international awards including Machine of The Year 2015. www.valtra.com.au

DAIRY NEWS AUSTRALIA MAY 2016

MACHINERY & PRODUCTS // 33

A quad bike helmet that really works for farmers MARIAN MACDONALD

THIS NEW helmet for

quad-bike-riding farmers will save lives because it works.

Not just because it’s tough and protective but because it’s not the sort of helmet you rip off as soon as you’re out of sight of the boss.

Most farmers refuse to wear helmets and I can understand why.

I’ve tried wearing a road bike helmet (in line with official expectations) to bring the cows home on a sweltering Sunday afternoon.

A road bike protects your head all right – that is, for the few minutes before heat exhaustion sets in.

Road bike helmets are made for riding motor bikes on a road, fast.

Not at 2km/hr behind 250 cows, each throwing out the same body heat as a 1500kW hair dryer (I’m not joking, they do).

As a result, we’d decided to wear equestrian helmets compliant with AS/NZS 3838.

Designed to protect a rider from a nasty fall at speed, they provide more protection than a pushbike helmet and better ventilation than a motor bike helmet.

Why hadn’t we chosen a helmet rated for agricultural quad bike use, you ask?

Because there wasn’t one.

New Zealand has developed such a standard – NZS 8600 All Terrain Vehicle Helmets – but, for reasons I can’t fathom, Australia has not adopted it or chosen to follow suit.

Australian inspectors will still expect you to wear a road bike helmet, unless you can prove you have done a proper risk assessment.

Despite it all, the Quadbar people have finally designed and made a helmet especially for Australian farmers, the HQ Stockman 2.

We were sent a compli-

mentary sample helmet to test on the farm.

Suffice to say, Wayne’s old equestrian helmet is gathering dust and we’ll be buying another Stockman.

The helmet is light and comfortable enough to forget you’re wearing it and the ventilation is just as good as the equestrian helmets we’ve been using.

What it has over the equestrian helmets is added protection.

The HQ Stockman 2 meets NZS 8600 standard as recommended by both the Queensland and NSW coroners.

The helmet is so strong, it passes the test used to gauge the protectiveness of road bike helmets, although only based on one impact, rather than two, as Quadbar’s Dave Robertson explains: “The ‘Impact energy attenuation test’ is the same test for the Australian motorcycle (and USA DOT motorcycle) standards however the test is repeated a second time on each location on the helmet for motorcycle helmets,” Mr Robertson said.

“Helmet expert, Dr Terry Smith from California USA, at the Qld coroner’s inquest went to a lot of trouble to explain that the second test is to ensure protection in a case where the ‘head strikes twice in the same location’ and must not be interpreted as providing double the protection.

“The speed impact is the same on both tests and the protection must be below 300g.

“The level of protection of a motorcycle helmet is in the fact that it can withstand a second impact on the same location on the helmet which is more likely at higher speeds.

“It (motorcycle helmet) is not tested at a higher speed than NZS 8600 however will most likely withstand multiple impacts.”

If you’re riding a quad on the farm without a helmet, get a Stockman.

It’s the sort of helmet you forget to take off and

it might just save your neck.

NOTE: A helmet compliant with NZS 8600 called the AgHat came

on the market a couple of years ago but we didn’t adopt it at our farm because it had no ventilation.

• This column was republished with permission from http://milkmaidmarian.com

Trusted - Dairy Effluent Equipment

Increase pasture growth.

Applying farm dairy effluent wherever and whenever conditions allow, has been proven to be one of the best ways to increase pasture growth.

Check out some of Nevada’s Case Studies online.

Having a slurry tanker provides you with a simple, low-cost effluent system that allows you to spread those valuable nutrients over the entire farm, bringing you one of the highest returns-on-investment.

Phone 1800 344 124 now to speak to your Nevada regional consultant to discuss your farming operation.

Electric Pond Stirrers

PTO Pond Stirrers

Pond Booms (Pump Pontoons)

Fertigator (Portable Irrigators)

Slurry Tankers

Phone 1800 344 124 to speak with your regional consultant.

Trusted for Safety & Reliability.

www.nevadanz.com

DAIRY NEWS AUSTRALIA MAY 2016

34 // MACHINERY & PRODUCTS

Lely offers versatile balers Dealers at Lely’s forage conference were shown the new features of the Welger RP 160V round baler by international specialist, Sjors van Deursen.

DURING THIS year’s Agritechnica in Germany, Lely introduced a new series of variable chamber round balers that offer ultimate flexibility.

The versatile Lely Welger RP 160 V baler series guarantees high quality output, wellshaped high density bales and is user friendly.

Udderly efficient tractors

6D Series

VALUE

6M Series

VERSATILITY

6R Series

PREMIUM

Value-spec with the right amount of features:

There’s nothing basic about this versatile workhorse:

Premium comfort meets do-it-all performance:

✓ 74.5 – 96 kW (100 – 130 hp) ✓ Open operator station or climate controlled cab ✓ Transmission options up to 31 km/h

✓ 82 – 145 kW (110 – 195 hp) ✓ Open operator station or ComfortCab with all-around visibility of 310 degrees ✓ Transmission options up to 40 km/h

✓ 82 – 156 kW (110 – 210 hp) ✓ ComfortView™ cab with 20% more room and easy to operate CommandARM™ console ✓ Transmission options up to 50 km/h

We make choosing the right tractor easy, so you can focus on your herd. Our reliable 6 Family tractors have all the features you need to make your farm more efficient while keeping you comfortable during long days. Right now you can receive $2,000* towards a maintenance plan or extended warranty when you purchase a 6D, 6M or 6R cab tractor.

Plus, get a low 1.49% p.a.† finance rate on all 6 Family tractors.

Compare models and get a quote from your local dealer today.

Nothing Runs Like a Deere™ * Offer available with the purchase of 6D, 6M & 6R tractors with cab only at participating dealers before 31/07/2016. Offer excludes open operator station configurations. † Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Valid on new 6 Family tractors at participating dealers delivered no later than 31/10/2016. Offer is based on 20% deposit, GST back and 36 month term. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 31/07/2016.

JohnDeere.com.au/Udderly

A newly designed and thoroughly tested bale chamber ensures the high performance of this baler series which will replace the well-known Lely Welger RP 415 and RP 445 series balers.

The Lely Welger RP 160 V series consists of two basic models: - The RP 160 V Classic; has a basic setup and is well suited for drier crops.

- The RP 160 V; has a heavy duty power split gearbox for the heaviest conditions as a rotor feed nonchopper baler or can be fitted with the Mastercut 13 knife or Xtracut 17 knife chopping systems.

The model configurations available along with the advanced features of the Lely Welger RP 160 V series are sure to meet the demands of both farmers and contractors in all kinds of situations.

The Lely Welger RP 160 V baler range features the 2.25m five-tine-bar high capacity camless pick-up.

The cleverly designed segment plates and the short distance from the pick-up to the rotor ensures excellent crop throughput.

Thanks to the newly designed geometry of the bale chamber, bale formation is enhanced from the start.

Together with the renowned Constant Pressure System (CPS) this baler series delivers exceptionally high density and well-shaped bales.

High and consistent bale density reduces costs and ensures a rapid start of the fermentation process in baled silage, resulting in higher feed quality.

Lely is dedicated to the continuous improvement of user friendliness of its forage machinery range.

The Lely Welger RP 160 V features the Easy net Loading System (ELS) where net rolls are loaded from ground level saving time and effort.

The easily opened guarding doors allow quick access to the second net-roll storage and increased access to the

machine for maintenance and inspection.

Central greasing banks ensure a high level of comfort for daily maintenance.

The Lely Welger RP 160 V range also features automatic chain lubrication system as standard, which ensures all drive chains are constantly lubricated guaranteeing a longer lifetime.

The Lely Welger RP 160 V’s newly designed drawbar is easily adaptable to any type of tractor. The new storage area for the hydraulic hoses ensures quick coupling to the tractor.

New to the Lely Welger RP 160 V Classic is the Lely E-LINK Control unit.

This unit provides the operator with a clear overview of all baler processes on a colour screen.

The clear button controls give the operator direct access to important functions, with all adjustments and settings that can be made from the tractor cab.

The user friendly E-LINK Pro terminal is standard on the RP 160 V rotor feed non-chopper model and also the RP 160 V models with the Mastercut and Xtracut chopping systems.

The bright touch screen display offers a clear overview by having a lot of space for all useful baler information.

The E-LINK Pro terminal has ISOBUS compatibility, so any tractor can be easily connected, allowing you to use its own terminal.

“The exceptional performance of the Lely Welger RP 160 V is due to a unique design that incorporates a largercapacity variable bale chamber and many options in feeding and chopping,” product manager, balers, Gilles Troff said.

“It has proven not only to create perfect bales across a range of crops and conditions, but is exceptionally user friendly by design.” Source: Lely

N

Id EE E AC FR E C FR TEd QA PE A N TR N CE

CO

THE NExT GENERATION OF FARm dETERGENT HAs ARRIVEd.

AQUAKLENZ HV CONCENTRATE is a low-foaming acid detergent sanitiser, developed specifically for the cleaning of high velocity plants.

Contact one of our Ecolab Territory Managers or call 1.800.022.002 to find out more about the new AQUAKLENZ HV CONCENTRATE product, pricing options and wash programmes.

We work harder so you can work smarter.

Want expert eyes, 24/7?

Problem solved.

Flashmate Electronic Heat Detector ®

A new disposable electronic heat alert product that monitors riding activity to identify when a cow is in standing heat • Easy application – the units are extremely easy to apply and maintain • Detects multiple heats – will flash red again for the next detected heat cycle if AI has failed.

• Improved accuracy - smarter detection, looking for patterns (length, time, frequency) rather than what could be a single event.

• Low experience required - Needs significantly less understanding and skill in correctly identifying heats.

1800 GALLAGHER www.gallagher.com