SPECIAL REPORT: Milk shortage PAGES 6-10
LOCK AND LOAD
Loaders built for economy range PAGE 33
DUBBO DELIGHT Western NSW pays off for Chesworths PAGE 20
JULY 2014 ISSUE 49
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OUT OF THE BLOCKS Strong opening price but where will it close? PAGES 4-5
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DAIRY NEWS AUSTRALIA JULY 2014
NEWS // 3
Global prices fall but should rise next year Tasmanian share farmers Matthew and Lyndal Luck share their tips on climbing the ownership ladder. PG.18
North East Victorian dairy farmer Pat Glass has installed a pre-heat solar hot water system to save on power bills. PG.19
South Gippsland farmer Ed Moore has increased production with a new highenergy feed. PG.29
NEWS ������������������������������������������������������3-13 OPINION ���������������������������������������������� 14-15 MARKETS ������������������������������������������� 16-17 MANAGEMENT �������������������������������18-20
GLOBAL DAIRY prices continue to fall from their February peak but prices have been predicted to recover early next year. In its Dairy Quarterly publication, Rabobank said prices fell during April-June as a result of improved milk production in export regions and the easing of forward purchasing by China. This enabled other countries to re-enter the market and secure their needs at lower prices, with international dairy prices falling 10% to 20% in the three months to mid-June as a result. China bought more than Rabobank and other analysts anticipated in the first five months of the year. Rabobank analyst Tim Hunt said it now appears China also bought far more than they needed. “The pull back in Chinese purchasing has been particularly significant, with evidence that the Chinese industry has accumulated excess inventories after a period of vigorous buying, improved local milk production and weaker local sales,” Mr Hunt said. “Current prices in the international market have dropped below what we see as sustainable in the medium term.” Mr Hunt said milk production growth would slow considerably in the second half of 2014 as lower prices are passed to producers and weather normalises from some of the extremes seen last year in key dairy areas of the world. Consumption in export regions will also slowly improve on the back of higher incomes, employment growth and falling retail prices. “Together these forces should gradually tighten up the market as we progress through 2014,” Mr Hunt said. “However, we expect little improvement in prices until late in 2014 or early 2015, as China works through its accumulated stocks and the world continues to consume the stronger than
BREEDING MANAGEMENT ������21-23 ANIMAL HEALTH ��������������������������24-27 STOCKFEEDS �������������������������������� 29-31 MACHINERY & PRODUCTS �������������������������������������� 32-34
Central Queensland dairy farmer Wayne Bayliss, Miriam Vale, is reaping record production from his cows. Page 10.
expected wave of milk produced in the first half of the year.” Dairy prices fell 4.9% per cent at the first GlobalDairyTrade auction of the month and are down nearly 29% in United States dollar terms to US$3595 a tonne since their recent peak of US$5042 on February 4. The biggest price falls at the latest auction were in short-term Tim Hunt contracts, but prices on longerterm contracts also fell, suggesting buyers were confident of ample supply well into the new season, according to analysts with New Zealand bank, ASB.
“On top of New Zealand’s bumper season, European production this year is thought to be several per cent higher than last year, and US production for the first quarter of 2014 is up about 1% over last year,” ASB said. “Furthermore, the outlook for feed in the US looks good, suggesting US production growth can continue.” Dairy Australia industry analyst John Droppert said the global conditions, and the rising Australian dollar, meant a repeat of the 2013-14 closing price for Australian farmers was unlikely.
DAIRY NEWS AUSTRALIA JULY 2014
4 // NEWS
Global supply weighs on processors’ minds said increased global production on the back of strong prices last season was behind their “sustainable” end of season forecast prices. Fonterra opened at $5.80 per kilogram of milk solids and forecast a closing range of $6.10$6.30kg/MS for the end of the 2014/15 season. Warrnambool Cheese and Butter opened at $5.86kg/MS and said “we believe that average closing prices in the 2014/15 season may exceed $6.20 per kilogram milk solids”. (All prices are quoted by the processors as “weighted average” and the actual price varies widely between suppliers.) In a letter to suppliers, WCB CEO David Lord warns: “We take a cautious approach in this process to ensure that our opening price reflects the most current market outlook and our best assessment of market conditions for the coming year. “It is important that we have confidence that our opening price is deliverable should market conditions deteriorate with room to move upwards as and when expected trading conditions become more certain. “As you will be aware, there has recently been softening in world dairy prices that now appear to have stabilised. “The Australian dollar remains the major wild card with varied outlooks from foreign exchange analysts. Global dairy demand remains strong. “While the key market indi-
announced pay rises for its suppliers in far north and south east Queensland and northern NSW, and unveiled a new pay structure for suppliers in the southern states. The Japanese owned company says the increases of between 1 and 5 cents per litre will see an extra $10 million paid to dairy farmers when compared with prices 12 months ago. Lion will also buy all milk at tier one prices in a move it says will provide greater certainty and confidence. It has previously instigated the two tier system, where it paid its suppliers one price for the percentage of milk it required, and a bargain basement price for all remaining milk. Queensland Dairyfarmers’ Organisation (QDO) president, Brian Tessmann, welcomed the news of the “small-but-welcome price increases”. “It is clear that the rest of the value chain is finally starting to catch-up and notice the value of fresh Queensland milk for Queensland consumers,” Mr Tessmann said. “This follows a small price rise that had also been announced by Norco earlier this month. It lays down the challenge for other processors to do the same.” Murray Goulburn has also lifted prices for its NSW suppliers, with an average opening price of 54.2 cents per litres (milk comprising 4% butter fat; 3.2% protein) – an increase of 3 cents per litre. This price is not subject to step-ups. It is paid for all suppliers to its new Erskine Park facility, opening next month, for its supply deal with Coles. MG managing director, Gary Helou, said the NSW-Sydney market regions and the liquid milk market of south east Queensland remain under-supplied, with milk being transported from the southern region to maintain supply. “This is unlikely to abate in the near future allowing the NSW-Sydney market zone price to remain firm,” he said. Lion’s suppliers in southern Australia can choose variable pricing, opening at $6.35/kg MS with a guaranteed premium “above key competitors’ pricing”; a one-year fixed price for 2014/15 at $6.40kg MS; or a three-year fixed price model at $6.14/kg MS, available for up to 50% of a supplier’s total volume. Lion agricultural procurement director, Murray Jeffrey, said this move reflects Lion’s confidence in the dairy industry in South Australia, Victoria and Tasmania.
cators are positive in the longer term, volatility of external market factors, such as international milk supply growth, market demand, world dairy prices and exchange rates are possible over the short term. “In this environment we need to be aware that this volatility can impact on milk prices paid year to year.” Fonterra Australia managing director, Judith Swales, said market factors would continue to impact prices through the 2014/15 season. “The global environment remains volatile and is evolving rapidly,” she said. “We have recently seen global commodity prices decrease due to increased global production and
Judith Swales
David Lord
our currency has appreciated. But, demand from key importing countries remains strong. “We will continue to provide suppliers guidance on developments in the market as they
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New Zealand, USA and Europe,” he said. Fonterra Australia managing director, Judith Swales, said market factors would continue to impact prices through the 2014/15 season. Ms Swales said the global environment remains volatile and is evolving rapidly. “We have recently seen global commodity prices decrease due to increased global production and our currency has appreciated. “But, demand from key importing countries remains strong. We will continue to provide suppliers guidance on developments in the market as they unfold.”
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unfold.” Murray Goulburn managing director Gary Helou said the 2014/15 forecast closing price was “subject to external factors such as international dairy market prices and currency movements”. Mr Helou said demand for dairy foods remained relatively strong in key markets in Asia and the Middle East. “Strong demand in the world dairy ingredients market led to high prices during the year but these prices have now softened due to increased milk supply from
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PROCESSING CHIEFS have
THE MULTINATIONAL processor Lion has
•
STEPHEN COOKE
Lion lifts northern prices
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6/05/13 11:16 AM
DAIRY NEWS AUSTRALIA JULY 2014
NEWS // 5
Forecast closing prices offset strong opening STEPHEN COOKE
THE JOY of strong open-
ing prices from the major processors last month was offset slightly by the forecast closing prices, which are significantly lower than the closing prices for the 2013/14 season. Major dairy processors Fonterra and Murray Goulburn announced their opening price within hours of each other late last month. Fonterra opened at $5.80 per kilogram of milk solids and forecast a closing range of $6.10-$6.30kg/ MS for the end of the 2014/15 season. (All prices are quoted by the processors as “weighted average” and the actual price varies widely between suppliers.) Murray Goulburn opened at $6kg/MS for its southern suppliers with a
forecast closing range of $6.15 to $6.30kg/MS. In comparison, last year Fonterra opened at $5.60kg/MS and had a forecast closing price of $6; Murray Goulburn opened at $5.60kg/MS and had a forecast closing price of $5.80-$6kg/MS. The gap between the opening and forecast price is not dissimilar, although slightly smaller this season. Some farmers have expressed disappointment that the closing forecast does not resemble this season’s finishing prices. Murray Goulburn announced its sixth stepup for the year, taking its 2013/14 weighted average price to $6.81kg/MS. Dairy Australia industry analyst, John Droppert, said there has always been an element of caution in the forecast closing price.
Michael Harvey
He said the smaller price gap between the opening and closing prices (compared to previous years) is probably because there is more competition for milk; and processors are looking to incentivise their existing supply base to grow. “If they had been able to perfectly foresee this year’s closing price in July 2013 and pay more earlier, there’s a chance we would have seen a much quicker turnaround in milk production,” Mr Droppert
said. “This season, it’s fair to suggest they are trying not to lose the momentum of the last few months whilst managing a falling market.” Rabobank’s senior dairy analyst, Michael Harvey, agrees. “Processors are trying to be aggressive at the start of the year, they want to give that cash flow to farmers as they want more milk. “Prices have opened at a decent level but I don’t see room in the market to get step-ups like last year. “It’s still a good milk price and there should be a margin there.” Mr Harvey said the 2013/14 season was unusual, with some processors announcing six milk price step-ups, when there are traditionally about four a season. In terms of the likely closing price, Mr Droppert
said the main difference between last season and this season was that this time last season processors were looking at a market where pricing was at extremely high levels. “The risk was that it would come down quickly at some point mid-season, undermining returns,” Mr Droppert said.
“What ended up happening was a pair of droughts (in the US Midwest and New Zealand) coupled with already slowing supply (due to low 2012/13 pricing, high grain prices and earlier weather issues in Europe), plus the sudden decline of China’s milk production. “All of these kept prices
up longer than anyone predicted. “This season, the prices have already come down, and given that we still have a supply response unfolding in the Northern Hemisphere (and now even in Australia), the likelihood is that they won’t be back at 2013/14 levels until at least the later part of the 2014/15 season.”
Create the future for your dairy farm
Making sure there’s someone to turn to YOUNG QUEENSLAND dairy farmer Luke Stock is leading a campaign to help farmers to beat mental health problems and stay on the land. The Lockyer Valley farmer hopes to launch a new mental health program specifically for dairy farmers. Mr Stock is the youngest member of the Subtropical Dairy Board and one of just 16 farmers and the only Queenslander in the national Developing Dairy Leaders course. As part of the course he is developing a policy to tackle rural health and farmer depression. “I believe each dairy regional development program, beginning in the Subtropical region, should have a mental health expert with a farming background as a contact point for farmers,” he said. “If I was having mental health issues with our farm, I would be reluctant contact someone not connected with the industry. We need someone who has a rapport with farmers so they will open up and get things off their chests.” A fourth generation dairy farmer, Mr Stock said there was a
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definite need for such a program in the Subtropical Dairy region. “Many farmers are struggling. We’ve had some pretty ordinary floods, a bit of drought and difficulties because of our reliance on the domestic milk market,” he said. He wants to bring fresh ideas and a younger perspective to the Subtropical Dairy Board and hopes his development course proposal will lead to funding for on-farm
mental health help. “I love the industry but we have to encourage farmers to continue,” he said. Mr Stock farms with his parents Alan and Dolores at Glenore Grove. Their farm Daloran Jerseys is in the centre of the Lockyer Valley and milks 110-120 Jersey cows on 72 hectares. The family supplies Paramlat and has been on this farm since 2002.
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DAIRY NEWS AUSTRALIA JULY 2014
6 // NEWS - MILK SHORTAGE
Exports to suffer as fresh milk sales increase DAIRY NEWS AUSTRALIA JULY 2014
6 // NEWS
DAIRY NEWS AUSTRALIA JULY 2014
6 // NEWS
1 billion
Milk production volume (litres)
900,000 800,000
RICK BAYNE
800,000 500,000
432,387,853 457,02,504 432,387,853
529,216,989
2009/2010
QUEENSLAND
Key 2002/2003
2009/2010
800,000
404,327,028 404,327,028 350,320,355 350,320,355 336,6389,426 336,6389,426 328,842,279 328,842,279
NSW total
QUEENSLAND
732,636,822 732,636,822 605,455,801 605,455,801 536,127,770 536,127,770 514,182,577 514,182,577
STATE
457,02,504
NSW total
Key 2002/2003 100,000
529,216,989720,193,438
STATE 200,000
1,032,583,640
300,000
720,193,438
400,000 100,000
1,070,880,271 1,032,583,640
500,000 200,000
1,073,837,904 1,070,880,271
600,000 300,000
1,301,458,278 1,073,837,904
700,000 400,000
1,301,458,278
SA
WA
SA
2012/2013
2012/2013
WA
2013/14 (f)
2013/14 (f)
Milk sales volume(s)
700,000 600,000 500,000 400,000
STATE
NSW & ACT total QUEENSLAND SA
Key 2002/2003
2009/2010
280,748,689
247,144,893
208,355,647
202,403,579
192,763,664
182,797,208
548,979,239
Litres
498,545,172
100,000
403,869,587
200,000
734,738,224
300,000
708,488,227
are struggling to keep up with increased consumer demand for milk. The gap between local production and domestic fresh milk sales is growing – particularly in Queensland - raising concerns about the level of inter-state milk transfer and the potential impact on export availability. While deregulation means the shortfalls are theoretical as there is no restriction on moving milk over state borders, state organisations are touting locally-produced milk as the freshest and cheapest option. They also say the industry needs clear signals from the market and increased base prices to give farmers confidence to increase production. Despite good seasons, restricted cow numbers – partly caused by
Milk production volume (litres)
900,000 600,000
620,277,203
AUSTRALIA’S DRINKING milk states
1 billion 700,000
WA 2012/2013
increased demand for exporting heifers - is limmilk. iting the industry’s abilNational production ity to respond quickly to on farm solutions 8x7
volumes have stabilised but are still 10% lower than a decade ago.
On the other hand, fresh milk sales are continuing on a steady incline fuelled by population growth and a small increase in consumption. Some supply contracts are now stipulating that drinking milk must be produced in the state of consumption, which is having a flow-on effect for sourcing enough supplies for exports and other dairy products. Queenslanders are now drinking nearly 100 million litres more each year than the state’s cows are producing. South Australia has been unable to meet its usual quota for locally produced milk for inter-state sales and in Western Australia production fell below sales for two months earlier this year with predictions that will happen again in 2015. WA Farmers Federa-
Phil Depiazzi
tion dairy president Phil Depiazzi said Lion had been importing milk from other states for its Woolworths contracts but the new contractor, Brownes, would be sourcing solely Western Australian sup-
plies for its fresh milk deliveries. “That will tighten supply even more,” he said. The state produced 22 million litres of milk in February but sales were nearly 27 million, meaning milk from interstate was needed. March sales were about a million ahead of production. “They were two fairly critical months and that is likely to be critical again next year, especially if we’re not getting that milk in from Lion,” Mr Depiazzi said. “Farmers are slightly more positive so that should mean a touch more milk,” he said. “We’ve had a pretty good season.”
Herd reduction limits farmers’ ability to respond on farm solutions 8x7
The Teatwand 400 is placed at the exit bridge and uses it’s own movement along with the movement of the platform to produce an ideal spray pattern.
OR NEW D AJ E M
Spreadeagle leg spreader Flexible spray arm
Feature
Benefit
Moves under the udder
Consistent coverage of all four teats
Self cleaning nozzle
No blockage worries
Sprays from close to the udder
Very economical spray
One spray nozzle and solenoid
Few operating parts
Stationed on platform at exit bridge
Better coverage because cow is stationary
DE
W
0102_0513_OFSDairyNews_80x265AU_FA.indd 1
The Teatwand 400 has 400mm reach on a flexible arm (further than the original Teatwand) allowing the nozzle to position closer to the front teats and so gaining ideal spray coverage on all four teats.
higher prices.” However, he is confident the industry can respond quickly if prices stay reasonable. “It was good to see the new opening prices from Fonterra and Murray Goulburn are in that reasonable space. “That will give farmers confidence to keep their heifers rather than send them for export.”
M AJOR NE
WITHOUT THE LABOUR UNIT
here.” Mr Basham said the long-term effects of pressure on the industry through pricing, drought and
cost had led to lower production in South Australia. “Farmers haven’t been in a position to respond this year, even though prices have improved. “Some have sold heifers overseas and cow numbers have dropped 10-15% over the past five years so that won’t let us respond to that increased demand and
MENT LOP VE
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Mr Basham said. “There is not enough coming from South Australia to meet all those interstate uses that are being processed
•
supermarkets labelled South Australian which means it has to be sourced from South Australia, which has been causing processors to source milk from interstate to meet Northern Territory and some Western Australian demands,”
•
SOUTH AUSTRALIAN processors have been forced to source milk from interstate to meet increased demand from the Northern Territory and Western Australia. SA Dairyfarmers Association president and Mt Compass dairy farmer David Basham said things were “tight” in the state. “Milk is going into local
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David Basham
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6/05/13 11:16 AM
DAIRY NEWS AUSTRALIA JULY 2014
NEWS - MILK SHORTAGE // 7
Reduced processing capacity restricts northern growth choice of market channel, then the farm gate value will only move reluctantly and incrementally”. “Existing farmers can and will increase their production with rational
RICK BAYNE
THE SUPPLY and
demand equation in NSW is reasonably balanced at the moment, according to Dairy Connect chief executive Mike Logan. “On an annual basis, supply and demand is reasonably equal. There is still a small spring surplus and a small autumn deficit. However, if taken to include Queensland, the northern dairy market is probably around 100 million litres short for the year.” Mr Logan said the causes were complex “and not much to do with the farmers”. “There are only small amounts of manufacturing capacity left in the northern dairy industry. This has both limited the farmers’ capacity to access the growing export mar-
kets and limited the farmers’ market choices to the domestic supermarket channel. “Without labouring the point, the $1/litre price in the supermarket channel is not a true reflection of any market, but does have the capacity to put an artificial ceiling on the farm gate value.” Mr Logan said NSW had fewer farmers but they were producing the same amount of milk. “In Queensland there are both less farmers and less milk.” He said the shortage could be addressed through a rise in the farm gate value of milk “but when there is only one
Interstate milk transfer strips money from dairy chain QUEENSLAND IS about 20% short of meeting its own drinking milk requirements, according to Queensland Dairyfarmers Organisation president Brian Tessmann. “Unfortunately, the industry has lost significant capacity in the last three years, especially since the supermarket milk price war began,” Mr Tessmann said. “The industry wants to expand if it is profitable to do so – but the market isn’t giving us that signal at the moment.” Mr Tessmann said there was “no doubt” that $1/ litre milk had impacted adversely on the Queensland farm gate price paid by the two major processors, Parmalat and Lion. “Farmers have not only been hit hard by the depressed farm gate prices but also with significantly increased costs of production such as those associated with electricity and feed grain. “Natural disasters including several major floods and cyclones, followed by an exceptionally dry summer in 2013-14, have also put farm margins under significant strain. “These have all contributed to the number of farm exits we have seen in recent years.” However, he said the industry had the capacity to TO PAGE 10
and longer term market signals. Critical to this will be investment in the farmers’ access to the export market,” he added. Mr Logan said milk
moves north from Victoria to NSW and from NSW to Queensland. “However, more and more of the Victorian surplus is being directed to the export market so the
Victorian surplus is probably not there as it was. This is putting upward pressure on the farm gate price and improving farmer returns.” Mike Logan
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DAIRY NEWS AUSTRALIA JULY 2014
NEWS - MILK SHORTAGE // 9
Short-term growth incentives won’t work markets. “Increasing the base price is the best way forward. The average price last year was 45 cents and that was just break-even
RICK BAYNE
MILK SUPPLY will be
an issue in Western Australia early next year despite incentives for farmers to produce more milk in summer, according to WA Farmers Federation dairy president Phil Depiazzi. “It was fairly critical through February-March,” Mr Depiazzi said. “We’re travelling a bit better now but it’s going to be extremely interesting this coming summer and autumn,” he said. Slight new season price increases and growth incentive payments are giving the Western Australian industry confidence but it might not be enough. Harvey Fresh is offering a growth incentive of a 3.5 cent increase for the summer period plus an additional incentive for new growth above 2014 production. “That will be handy for some guys but others won’t be able to take advantage next summer because of timing of the announcement. The cows and heifers aren’t out there to do a lot,” Mr Depiazzi said. “It’s an issue because so many heifers have been exported.” The WAFF is encouraging processors to give “forward positive signals” to encourage farmers to keep more heifers. “If they’re going out it means in two years’ time they’re not here to produce the milk and it is hard to bring cattle into this state. “That is a limiting factor. We can increase production gradually but there is an inability to respond quickly if there is a real demand for milk in a hurry. There will have to be a gradual increase.”
Mr Depiazzi predicted the state could be selfsufficient for fresh drinking milk but that could be at the expense of other products, potentially putting new export markets at risk. A sustainable price report has advocated higher base prices in Western Australia for the long-term protection of the industry. “We need the industry
for the average guy on two million litres. “The report is saying the price needs to be almost in the mid-50s which might be a pipe
dream but we’ve got to be realistic. “If you want an export market you’ve got to get milk out at a competitive price. It needs a balance.”
Browne’s Milk managing director Ben Purcell said the Western Australian based company had enough milk to fill all its obligations but realised
“milk isn’t on tap”. “We need a fair price out of the market and back to dairy farmers to make sure the industry doesn’t keep contracting,” he said.
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DAIRY NEWS AUSTRALIA JULY 2014
10 // NEWS - MILK SHORTAGE
Pay rise would fuel farm investment RICK BAYNE
CENTRAL QUEENSLAND dairy
farmer Wayne Bayliss, Miriam Vale, is reaping record production from his cows and would like to expand but is being thwarted by low profit margins. “We want to get bigger but we just can’t,” he said. “We’re getting 56-57 cents a litre and our costs are about 53 cents a litre. “We’re waiting to see if we’re going to get a pay rise to do any more investment. We can’t go anywhere at the moment; we need to go up in price to be able to pick up production.” The price dilemma follows three years of floods which destroyed his farming land. This year’s near perfect conditions have resulted in record production but Mr Bayliss, like many farmers, can’t capitalise on the favourable climate. “Our cows have never milked better,” he said. “After three years of just rain, we’ve had a really good season. “I’d like to change the dairy and go 15 a side and go up to 300 cows, but I’d need another block of land
90% of our property where we had improved pasture. We didn’t have any country left. We had 500 head running on 40 acres for weeks.” He is one of 35 farmers in Central Queensland working with dairy brand Pauls and he supplies 5000L per day to the Pauls Rockhampton plant. In the past year, local producers have sold more than 22 million litres of milk to Pauls, allowing them to supply locally produced dairy to the region. Mr Bayliss hopes the trend to $1 milk will end. “We get city people come out for manure and ask ‘what do you do with your milk?’ I tell them it goes to Rockhampton and gets processed for you to drink. “I see people go straight for the $1 milk. I say you’ve got to buy Pauls. Nobody understands. “If you buy $1 milk it’s giving us nothing. Buying Pauls milk directly supports my farm and in turn, my family,” Mr Bayliss said. Despite the hassles, Mr Bayliss wants to stay in dairy and his 15-year-old daughter is keen to follow in his footsteps. “Ten years ago
to run the extra cattle.” Production peaked at a record 23 litres per cow per day but Mr Bayliss is down to a herd of 230 after cutting from 260 last November. “We decided to take precautions. Everyone was saying it was going to be dry and the price of milk in November was terrible. We had to get rid of them to keep going. “I have 34 heifers due to calve in August and I’m thinking about advertising them so we don’t have to struggle so much and to cut costs…but I don’t want to sell them.” Mr Bayliss said he was selling any cow with a problem to counteract booming grain and feed costs. “There were four with a high cell count – they’ve gone,” he said. He has also cut back on herd recording and other regular activities to keep a lid on costs. The farm has needed to reinvest in pastures and apply more fertiliser to repair flood damage. “It wasn’t too bad in 2010 but 2011 and 2012 nearly wiped us out and summer 2013 we had water as far as you could see. “All our summer pastures got wiped out. We’re back to native pasture on
iDAIRY®
because there’s going to be that big a shortage of dairy cattle in Queensland it would cost too much to get back into it. “The most rewarding thing for me is that I can have my children around me all the time. All the girls help out at the dairy in some way and it’s great to have everyone involved.” Mr Bayliss believes the industry can rebound given the right incentives. “If the price comes up
Wayne Bayliss and his family on his central Queensland farm.
Interstate milk transfer FROM PAGE 7
expand with the right signals. “Farmers need a clear signal from the market that gives them the security to invest over the long term. Increasing production, either by expanding farms or starting new farms, is an expensive and time consuming exercise. To do this, we need the right signals and security from the market.” Mr Tessmann was adamant that Queenslanders should be drinking Queensland-made milk. “Queensland milk is the freshest and cheapest source of milk for Queensland consumers. It is in the interest of Queenslanders that the state continues to have access to its own fresh milk supply and is able to support a viable industry,” he said.
He described interstate trans- value chain is finally starting to portation of fresh milk into catch-up and notice the value Queensland as an “expensive trans- of fresh Queensland milk for port equation which simply trans- Queensland consumers.” The increase folfers money from the lows a small price rise dairy industry to the announced by Norco. “It transport industry”. lays down the challenge “The dairy indusfor other processors to try is an important ecodo the same,” Mr Tessnomic driver for the mann said. Queensland economy, “There are places in providing significant South East Asia with no employment and devel- Brian Tessman milk on the shelves for a opment in numerous regional communities,” he added. month. Down the line if the conMr Tessmann was pleased with traction of our industry continues, the “small but welcome” price that same sort of thing may happen increase announced by Lion for here. “The only way to resolve it is to Far North Queensland, southeast get prices back to the farmers to Queensland, and Northern NSW. “It is clear that the rest of the encourage growth.”
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DAIRY NEWS AUSTRALIA JULY 2014
NEWS // 11
Alpine Valleys increase needs culture change think about dairy,” Mr Crosthwaite said. “We’ve got to bring the community along for the ride. “We did a comparative business analysis of beef and sheep versus dairy and if you’re in the top 30-40% of dairy you can be four or five times more profitable than any beef operation. We know the business case is strong but why aren’t people taking up that opportunity?” Mr Crosthwaite said it was important to work on transitions with farmers to help them retire and keep land in dairy. “If we’re going to double milk production in the next 12 years we need that high quality land currently in dairy to stay in dairy,” he said. “We know the northeast has the oldest demographic of farmers in Victoria. We’ve got 200 farms and we reckon 30-35% of those farmers will go out in the next five years. “They have no obvious successor or young generation coming through. If they go out we’ve got no hope of increasing milk production.” The plan recommends professional one-on-one help for businesses to continue in dairy, programs to assist with reducing farm operating costs and providing networks and options for the next generation of potential farmers. “We’ve got to plant the seeds and get people to think about dairy in a positive light. We need to be firing up young people to be ready to take on an opportunity when it presents itself,” Mr Crosthwaite said. He said there were some beef operations in the region considering conversions to dairy. The report says there is an increasing dependence on non-family labour and it includes a workforce strategy to ensure the right people are in place to sustain industry growth. There has been a significant reduction in the number of dairy farms in
the region over the past decade but those remaining have grown in size and output, resulting in only marginal volume loss.
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A NEW plan is calling for an extra 20,000 cows in the Alpine valleys region of northern Victoria in the next decade and for those cows to substantially increase their output. But one of the driving forces behind the plan says it will only succeed if there is community-wide cultural change, improved transition programs and support to “fire-up” interest among young people. The Regional Growth Plan for the Dairy Industry in North East Victoria aims to lift annual milk production in the region from 220 million litres to 400m litres by 2025. The recently released plan calls for cow numbers to increase from 40,000 to 60,000, stocking rates to lift to 1.5 milking cows per hectare, per cow productive performance to go from 420 kg/MS to 535 kg/MS and for farmers to target 3.5-4.0 tonnes of home grown fodder per year. It seeks to maximise high quality land in the region for dairy and will seek an extra 25% of high quality land, and targets a 7% return on assets. It is anticipated by 2025 the region will generate $160 million of farm gate returns and support 550600 full-time jobs. The report says the ambitious predictions are based on the region’s natural biophysical advantages, demonstrated improvements in farming technologies and a strong outlook for the global dairy market ensuring a stable and favourable farm gate price for milk. However, it points out that 60% of farm owners and managers in the region are aged over 50. The plan has been supported by the Alpine Valley Dairy Pathways Project Steering Committee. Committee chairman Stuart Crosthwaite said to reach the goals “we’ve got to change the culture of the community”. “We need a long-term persistent effort of trying to change the way people
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DAIRY NEWS AUSTRALIA JULY 2014
12 // WORLD NEWS
NZ farmers want copter surveillance banned PAM TIPA
PERMANENTLY BANNING helicopter moni-
toring of farm effluent issues would lift a big weight of anxiety off farmers’ shoulders, says a Waikato farmer spokeswoman Lisa Lile. “Farmers are on edge when they hear those helicopters flying over,” the Waikato sharemilker said. “They feel like they are going through customs all the time. They start wondering why the helicopter is flying over or whether something has happened
in the past week that their farm is now non-compliant. There’s that fear of retribution all the time: what’s gone wrong? Why is that helicopter flying over my farm?” Lile wants to see a full ban on flights. She also wants dairy company and council enforcement staff to work together to rationalise inspections. Lile was among farming representatives who spoke to the Waikato Regional Council’s environmental performance committee about stress caused by the helicopter monitoring. The committee has now recommended to the
full council a temporary halt on random helicopter checks pending a review of the council’s enforcement methods. Lile says the pressures of compliance are hitting farmers aged 45-plus. Three farmers committed suicide in one week last month, compliance being implicated in at least one death, she says. Quad bike crashes get huge publicity but little is heard about farmer suicide, she says. Farmers want to comply but smaller farms struggle with the expense of a new effluent system. “The council comes onto the property after doing a
helicopter flyover and says ‘you’re not compliant anymore; you need to do this, this and this’. The farmer gets a price and realises it will cost him $150,000 plus and the council turns around and says ‘I want it fixed yesterday’. You can imagine the kind of stress that is putting on farmers.” Whether the compliance official is helpful or on an “ego trip trying to intimidate people” depends on who you get on the day, she says. Ninety-nine percent of farmers want clear waterways and a clean, green image for New Zealand.
Up to 100 farmers viewed from the sky each year AS MANY as 1000 farms a year were helicopter monitored by the Waikato Regional Council in 20092012. It has since done about 600 inspections a year. In the past five years 24 flights have each monitored 100-135 farms per flight. “From 2009 to 2012, a thousand farms a year were selected on a purely random basis,” a council spokesman says.
“These farms were then grouped in areas and flown over. “Only those farms with possible effluent compliance issues visible from the air were subsequently inspected by ground-based staff. So we ground inspected about 450 farms a year during this 2009-12 period. “From 2012 we have flown over only 600 a year and then ground inspected all 600. This comes after
a letter telling those farmers ‘this is what we will be doing’. After the flight any signs of significant non-compliance are followed up promptly. “We then inspect the rest of the farms after making an appointment. We then work one-on-one with the farmers to make any necessary improvements to effluent systems to ensure compliance 365 days a year.”
“We understand farming is evolving; we want to evolve as well.” But compliance officials – be they company or council – want it done tomorrow, she says. They forget about the need to help farmers become compliant. “They have to understand we can’t just pull $150,000 out of our back pocket and pay for it tomorrow. It is something that has to be worked on.” Pressure for compliance is also coming from all the dairy companies and Quality Control New Zealand which does the on-farm checks for dairy companies. Every farm must be inspected every year by the dairy companies, so all inspections should be aligned so farmers are not hit with a “double whammy”. Quality Control New Zealand could do the checks and report back to councils on farms which may not be compliant in five years. “They could start working with them over how they can become compliant. That will take the stress and anxiety away. They will be able to operate a better farming business because there won’t be the fear of retribution anymore.”
Waikato Regional Council has monitored up to 1000 farms per year from the air.
Having the Fonterra payout plastered all through the media gives the impression farmers have plenty of money for compliance. “But by the time we’ve paid all our expenses we are lucky if we’re earning 20c for milksolids.” At the Waikato hearing she told the councillors “you are not only invading
our farm with your helicopters but our home: it is personal to us”. Ceasing those flights would be a big step in reducing farmer stress: “That’s the one that really stresses farmers out.” She has already had phone calls over the temporary halt to flights. “One farmer said he felt a weight lift off his shoulders.”
WHY NOT CALL AT THE DOOR? THE HELICOPTER monitoring method is intrusive and farmers feel harassed and watched, says Federated Farmers of New Zealand Waikato president Chris Lewis. “What farmers are saying to the regional council is ‘instead of flying over the top of us, make an appointment and we will show you our farm’,” Mr Lewis said. “You may fly over in a helicopter and tick boxes and say you’ve checked the farms but farmers would prefer you to come onfarm, have a look around and discuss issues and work in a constructive way to get better outcomes.” Mr Lewis says until about two years ago the council was doing about 10 helicopter flights a year, inspecting 100-120 farms per flight. This year it’s down to six flights. But Federated Farmers is not asking for a complete ban at this stage; it wants a review. “We would like to see it reduced and some better outcomes for the environment, for farmers and a better [acknowledgement by] the urban public that farmers are doing the right thing for the environment.” Mr Lewis says many older farmers are suspicious of helicopter monitoring, just as they don’t completely trust the internet. “They haven’t grown up with that surveillance. We’ve got to have that level of trust don’t we?” Some farmers face the stress of farming a difficult property and doing the right thing by the environment and everyone concerned. “Some people don’t have a big pot of gold. Being told by people ‘you are doing a bad job’, and needing to spend more money where it is not available can be very stressful.” So are threats to take a farmer to court. Mr Lewis spoke at the hearing and says the regional councillors listened to their arguments and seemed motivated to do better for the farming community. “Hopefully they will engage the farming community to get a better win-win situation; they will get more buy-in to what they’re doing and hopefully better education,” Mr Lewis says.
DAIRY NEWS AUSTRALIA JULY 2014
WORLD NEWS // 13
Irish expansion underway ANDREW SWALLOW
AS EUROPE prepares for the removal of milk quota next April, a researcher says the “dairy expansion train has already left the station” in Ireland. Researcher Laurence Shalloo told a June 10 seminar – ‘Financial Planning for Expansion’, run by Teagasc, the Irish farming and food development authority – that increases in dairy cow and replacement heifer numbers over the past three years* show large numbers of dairy farmers are expanding. But he questions how prepared they are financially, noting that relatively few have detailed business plans, and he highlights the ‘lag phase’ between their buying more cows and getting returns from them. Shalloo says farmers should prioritise spending to conserve scarce cash and optimise their cashflow. Rapid expansion can generate higher returns and get cash in sooner but it’s a riskier approach than gradual expansion. Which is best will likely come down to the person and their attitude towards risk, he says. Another seminar
speaker, Donie Cashman, a dairy farmer and former president of the Irish Farmers Association, reflected on Ireland’s dairy boom in the run-up to quota being imposed in 1984. Cashman told the audience to expect ‘shocks to the system’ and urged them to protect themselves with budgets and plans. There must be sound financial reasons for expansion with proper financial planning, close attention to management accounts and good farm practice, he stressed. Teagasc financial management specialist Kevin Connolly called for a new view of financial planning – from it being just a means to secure finance to a management discipline feeding into multi-year financial plans. Three major banks operating in Ireland told the audience of their experiences of funding expansion, all three highlighting the scarcity of well thought-out financial plans. The bankers also spoke of the difference between preparing a plan to get a funding proposal ‘across the line’ versus a farmers using a plan as a tool
Dairy demand soars in India INDIA IS on track to become the world’s second fastest-growing market for dairy products in 2018, says a market research company. Canadean says India’s rising urban population wants dairy products in convenient packaging. In 2013 there were 378 million living in India’s big cities such as Mumbai, Delhi, Bangalore and Hyderabad, where daily growth is in the thousands. The cities offer higher salaries, but also long working hours, hence growth in demand for packaged food. Dairy products in particular have jumped in popularity. Canadean says the Indian dairy food market is likely to reach $14 billion in the next five years. This would make India the second fastest-growing dairy market (by volume), just behind Brazil. Snack foods such as cheese and yoghurt replace meals for busy consumers, says an analyst at Canadean. These include dairy snacks that offer an energy boost, such as yogurt enriched with extra calcium and protein. Flavoured milk and milkshakes are also set to become more popular, and they are ‘hassle-free’ – no need to add powder or concentrates. Increased availability of re-sealable plastic bottles and lightweight cartons help take milk products outside the home. “The growth of service sector companies in India’s cities will continue to drive consumers to migrate from villages, towns and smaller cities in search of jobs,” says Canadean.
to monitor financial performance in subsequent years. * Dairy cow numbers in Ireland fell steadily from about 1.5m when quotas were imposed in 1984 to about 1m in 2005, remaining unchanged until 2010. Ireland’s Central Statistics Office December
2013 survey of livestock numbers report shows as steady increase since then, to 1.08m in December, with 1-2 year-old heifer numbers also up from 0.8m in December 2011 to 0.9m in December 2013, though no distinction between dairy and beef is made in the young stock data.
Cow numbers are increasing in Ireland.
DAIRY NEWS AUSTRALIA JULY 2014
14 // OPINION RUMINATING
EDITORIAL
Just show us the money
MILKING IT... Almost perfection
We’ve always wondered why those who have taken a vow of meat or dairy abstinence – vegans, vegetarians and the like – want products that resemble those they’ve forsaken. Take NotBacon, for example. It is shaped like bacon and has colours and flavourings to make it look like bacon but, you guessed it, it’s not bacon. Dairy-free fans of the “Wot? No Dairy” raspberry dessert may have been racking their brains wondering how its creators, Vegan Perfection, made it taste just like dairy. It turns out the secret ingredient was in fact dairy. The NSW Food Authority said last month that Vegan Perfection recalled the product because of an undeclared “allergen” – dairy. Guess it’s back to the drawing board with that recipe.
Call it collateral
When milk processor United Dairy Power was late with its payments last month, the dozen or so suppliers involved wondered whether they would see money owed at all. Others wondered how they could force the issue. The company has said all money owed will be paid this month but not before it caused considerable angst. Gippsland dairy farmer Shelby Anderson told his Twitter followers a local farmer in a similar situation a few years ago “took the keys of the tanker and called a taxi for the driver”. “Needless to say, it got resolved!” Well that’s something to keep in mind if it happens again.
Karma bus goes Farming and I shopping Grow It Schadenfreude is the pleasure derived from the misfortunes of others. We’ve been indulging in the current misfortune of Coles, as the ACCC tightens the screws during its investigation into the retail behemoth’s threat of sanctions against suppliers that won’t cough up extra money. The supermarket is currently paying lawyers to respond to the ACCC allegations, utilising all manner of weasel words in its bid to worm its way out of serious allegations. Hopefully dairy farmers, among other suppliers, can take a small amount of satisfaction in watching the instigator of the $1/litre milk being hit by the karma bus. Coles decided years ago to spend millions of dollars cultivating a false image of friend to farmers and consumers, instead of actually doing the right thing by treating its suppliers fairly. It’s nice to see it cop a whack at last.
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Dairy News Australia is published by RNG Publishing Limited. All editorial copy and
“SHOW US a good milk price and we’ll produce more milk.” It’s a sentiment shared by many dairy farmers when they hear of a new scheme to “help them grow”. Processors want more milk. They are desperate for it in all areas of the country. The strong opening prices (in comparison to the forecast closing prices) were deliberate moves to send a signal of confidence in the season ahead. To keep things rolling, in other words. Yet instead of channelling all available money into a strong milk price, most processors retain some for “growth incentives”. As profitability becomes the buzzword of the industry – rightly so, and well overdue, according to many farmers – many processors are now actively encouraging growth. This suits them. However, they’re not using terms like production incentive. It’s described along the lines of “helping farmers grow sustainably”. They’ve been accused of not being transparent with their pricing; now it seems they’re not being overly transparent with their intentions. Instead of putting money into these programs, which once again see the farmers take the risk in a bid to produce more for a higher price, farmers want to know why it isn’t invested into a higher everyday milk price. Farmers will produce more if the long-term signals are there. Short-term incentives are currently being offered in WA to help processors secure supply. However, if there are no cows – and there aren’t as heifers have been sold to help price gaps – short term incentives are mostly useless. If processors share the risk with the farmer in the form of a long-term investment, they will be in the box seat to reap the reward of future growth. Yet most processors won’t offer a system that shares the risk with their supplier. Yes, everyone is at the whim of the dollar and global conditions, but if you want to increase the national milk pool, you need to think outside the square. And take a risk. Spring milk is the most profitable for a farmer, yet it receives the lowest price. We realise the processors have an abundance of milk then but if they want their suppliers to grow, they have to work with them. A genuine price will lead to investment in their business and more milk for all. If we’re hearing that from farmers, then surely the processors are.
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DAIRY NEWS AUSTRALIA JULY 2014
OPINION // 15
Dairy-free diet no cancer cure MATTHEW FLAVEL
MILK AND breasts are
unlikely enemies. However respected geoscientist Jane Plant has a different view. Professor Plant contracted breast cancer in 1987 and for six years she experienced the remission and relapse cycle of the cancer an agonising five times before making a drastic change. She cut dairy products from her diet entirely. This serious decision was based on a link she drew between the low-incidence of breast cancer in China and their populations’ incidental low consumption of dairy. Amazingly within six weeks of this new diet and her continued chemotherapy treatment the lump was gone. After this change the cancer remained absent for 18 years. However it reappeared in a stressful time that also allowed old dietary habits to re-emerge. A switch back to her trusted dairy-free diet, plus starting treatment with a prescribed oestrogen suppressor, the cancer again disappeared. Her experience is certainly both an incredible and surprising story (which she documents in a new book, The No-Dairy Breast Cancer Prevention Program). Surprising stories are the foundation for every great scientific discovery. Before these stories graduate to discoveries however, they must stand up to the rigours of scientific inquiry. News headlines are plagued by declarations that everyday food staples should now be considered poison or alternatively super healers. These titles are often attributed and swapped with little to no compelling evidence. Fortunately the role of dairy products in breast cancer has been extremely well researched. Unsurprisingly, it is not as simple as Professor Plant proposes. The first place to look for evidence on this topic is the Nurse’s Health Study run in association with Harvard University.
This study followed 122,000 female nurses’ lives between 1980 and 1996 in the form of a biennial survey across a broad range of women’s health issues. Due to its scale and breadth, it is one of the most significant pieces of research into women’s health in history. One of the topics covered by this research was this potential link between dairy products and breast cancer. The findings of this study report no association with post-menopausal women and breast cancer. However in premenopausal women with a high intake of low fat dairy a decreased risk of breast cancer was observed. Milk is a good source of calcium and vitamin D, both well demonstrated as serving a protective role against breast cancer. This study showed that these components of milk reduced the risk of breast cancer regardless of fat intake, body mass index and alcohol consumption. These are all well demonstrated risk factors for breast cancer that milk offers protection from. In 2010 the World Cancer Research Fund assessed the full spectrum of research published on the topic. The panel judged that evidence supporting increased risk of cancer from dairy products was at best limited, whilst instead a decreased risk is probable. However Professor Plant calls other components of milk into question as potentially cancer causing. One of the main components she targets is growth factors present in milk. One such growth factor is Insulin-like Growth Factor 1 (IGF-1). There is a growing body of evidence that this hormone may have a role in cancer development. Cows treated with growth hormones such as bovine somatotrophin (BST) produce a higher level of IGF-1 in their milk. Whilst this fact may be relevant in many parts of the world the use of these growth hormones on dairy cows in Australia is prohibited. Therefore our milk has much lower levels of IGF-1 than countries still treating their cows
with growth hormones. Regardless a healthy adult takes almost no IGF-1 from their diet as it cannot easily be absorbed from the intestine. Rather it is made inside the body to facilitate growth. Professor Plant also highlights the role of another growth factor VEGF which
is found at elevated levels in both dairy cows with mastitis and breast cancer patients. This protein is actually produced by the body to do important tasks such as heal wounds and create blood cells. It can also be produced by cancers to continue growing.
Therefore its elevated presence in both breast cancer patients and mastitis cows will not be from a dietary source. This protein’s production is a consequence, not cause of disease. Professor Plant has also argued that meat and dairy produce a more
acidic environment inside the body which is ideal for cancer growth. Here she is advocating what is known as the alkaline diet. The alkaline diet has been widely criticised for lacking a strong research backing for its claims of increasing health by increasing the body’s pH.
This concept does not take into account the body’s incredible ability to maintain its own steady pH. In addition, the body contains a range of different environments from acidic to alkaline. Digestion would be a very different experience if stomach TO PAGE 16
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DAIRY NEWS AUSTRALIA JULY 2014
16 // MARKETS
Beware the US juggernaut produce liquid milk products, the conlion litres in annual milk output for the sumption of which is in decline, and despite renewed industry efforts to first time at the end of June 2014. Around the turn of the century I reinvigorate marketing of milk, shows used to joke about an export market- little sign of flattening and returning to ing manager I’d met from one of the growth. At least 75% of the remainder of US biggest US dairy companies who didn’t milk is processed into seem to have a workcheese. The US food ing knowledge of an service sector is the bigatlas. The US indusgest cheese market in try in those days had the world, and has kept a paltry 4% of the demand growing and global trade in dairy US consumers chewing products, relied through an increasing to some extent on number of burgers, pizzas export subsidies and other takeaway “deliand had a US govFRESH AGENDA STEVE SPENCER cacies”. ernment that bought The farm sector of up surpluses of low the US dairy industry has specification milk fiercely held onto regulation of their powders and butter. That is a far cry from where the US farmgate prices, but these are set by refindustry is looking into the future and erence to prices in the wholesale trade. placing its bets these days. In 2013 that Despite the vicious cycles in prices due share of trade had (according to the US to the working of that mechanism, the exporters council) expanded to 17%, US industry has grown steadily over the with about 15% of all US milk output past decade. One of the big wonders of the dairy being processed into milk powders, trade landscape is that the US industry cheese and butter that was exported. Considerable investments have hasn’t grown faster in recent times. Margins available to milk producers, been made into large-scale milk powder plants and a focus on improving the as illustrated by the surveyed “income over feed costs”, have rarely – if at all – quality of products. The US is now the biggest exporter been this high in history. Since September 2013, this margin of skimmed milk powder (SMP) although a large portion of this is in the has been greater than US15c/litre, peaklower-quality form referred to as “non- ing just over US25c and receding slightly fat dried milk”. One of the incremen- since March this year. The big margins might be available tal earners for the US has been in sale of whey powders – a by-product of its but other factors have held the handmassive cheese industry – which has brake on output. Many dairy farmbecome a meaningful contributor from ers have been repairing their balance sales into feed and other low-grade uses sheets from the effects of post-GFC volatility and the slim margins through in Asian markets. About 25% of all US milk is used to much of 2012 and 2013. Feed quality
THE US dairy industry passed 92 bil-
Steve Spencer belives extra US milk produced this year will be exported.
has also suffered – especially since the deep drought affecting the south-west regions for the past few years – which still exists for many, although prices for corn and soy have fallen sharply on the strength of much higher supply in 2014. With lower quality feed, milk output per cow has been weaker. Any effect on milk output will therefore be lagged. At the end of May 2014 US total milk output was growing at the rate of 1.4% over the same month last year, but for the year to date had expanded just 1.1%. The forecasters at the US Department of Agriculture reckon the US
Australian export index FRESHAGENDA’S AUSTRALIAN export index finished June at
188.4 points, losing 3% over the past month. Most of that movement can be attributed to a stronger Aussie dollar, which gained around two cents against the US currency over the month. Commodity prices have been quieter, powders have lost more ground during June, although less than the previous month. Importantly for Australia, cheddar has maintained its value. Cheese represents the largest proportion of milk embodied in Australian dairy exports, and therefore has a large influence on the index. While the growth in global milk supply continues to keep a lid on prices, the re-entry of buyers in the Middle East and South East Asia, as affordability improves, has provided support for the market. The last GDT auction for June delivered a 0.9% rise in the price index, a welcome change after eight successive falls in previous events.
industry will pick up speed, so that over the full 2014 year it will add 2.4%. That would mean the US will pump out 3.3% more milk for the rest of the year to hit that target. For the seven months to the end of 2014, that growth would equate to about 1.9 billion litres of milk. Here comes the crunch – we reckon just about all of that expansion will either head for the world market or the cold store, as US domestic consumption of dairy is – at the very best – flat-lining. While New Zealand might be growing quickly at present and is expected to continue expansion in 2014/15, even
Dairy-free diet no cancer cure FROM PAGE 15
Whether this is the market taking a breather or finding a floor will be tested in coming months as the NZ spring looms and US milk production growth gathers pace. Larger volumes will be offered in coming GDT events, and it is likely buyers will remain cautious in meeting only immediate needs. For Australian exporters, our stubbornly upbeat dollar will continue to be of concern, as it shows no sign of
falling against the US currency. • The index is a lead indicator of average export returns - based on spot prices, currency movements and export mix. The index measures current market sentiment, but in reality it takes 3 to 6 months for prices to translate into actual returns, depending on the timing of contract negotiations. It was set to 100 in January 2000. For weekly updates, visit http://www. freshagenda.com.au/
if NZ expands at 5% in the same sevenmonth period (faster than the expectations that the CEO of Fonterra has made public), the additional milk it would produce would amount to only one-third of that extra US output. We’d better hope US consumers eat more cheese and that China continues to increase its import orders….or else there will be a lot of milk looking for a home. • Steve Spencer is a director of Freshagenda, a Melbourne-based consulting and analysis firm that provides food value chain insights and solutions to a wide range of clients from farm to retail.
acid became stomach alkaline. It is true that cancer cells grow better in an acidic environment. However again there is no evidence that this kind of environment is caused by diet. There is significant evidence that cancer cells produce an acidic environment rather than simply move into one. The fact the Professor Plant has found a way to manage and continue to beat her cancer is one to be celebrated. It seems however that the dairyfree diet she advocates is not a solution that can be widely applied. As a single case study, her story is also conflicted by her research that has brought her into contact with a range of harmful chemical substances. Her contact with these substances would be at concentrations
that the average person is unlikely to ever meet. Nevertheless her new book offers positive practical steps to beat cancer including tips on exercise, stress and the range of possible treatments. It is however wise to be wary of her claims that dairy should be the newest member at the top of the poisonous foods list. The Cancer Council of Australia in its official position statement reiterates - “There appears to be no significant association between the consumption of dairy products and the risk of breast or ovarian cancer.” The same document promotes the positive role dairy plays as a good source of calcium, protein, vitamins and minerals. • Matthew Flavel is a PhD student in human nutrition at La Trobe University with a background in animal science.
DAIRY NEWS AUSTRALIA JULY 2014
MARKETS // 17
Middle East prime target for value-added dairy Export demand remains strong Dairy NewS aUSTraLia june, 2012
agribusiness // 17
With season 2011/12 only a few
ASIA TENDS to be theattention is now weeks from ending,
incremental change in milk production (year-on-year)
cents/litre in March (AUD 41c/L) to 28 Euro cents/litre (AUD 36c/L) in April. Profit margins are under pressure in the US, and in NZ Fonterra has announced the final payout for the 2011/12 season has been cut from NZ$6.75-$6.85/kg MS to NZ$6.45-$6.55/kg MS (AUD$4.96$5.04). Effectively, global dairy markets are rebalancing. Lower prices will both slow production growth and stimulate demand, and as this occurs we will ultimately see a price recovery. Key factors to watch on the global scene will be the rate at which milk production overseas slows in response to lower prices, the impact of the current financial worries on consumer confidence, the path of China’s economic growth, and the value of the Australian dollar. Demand for exported dairy products remains a positive and will continue to grow with the middle class in large emerging markets such as China, with changes in diet and with increasing urbanisation - and also in conjunction asglobal a mass market with population growth.supplier. Locally, the domestic market is supported by a Apart from the bengrowing population and stable perefits of diversifying capita consumption. Whilst the our dairy market is currently a challenging place market exposure however, to be a seller, all signs indicate that balance willpotential ultimately return. the opportuni-
focused on 2012/13 milk prices as farmfocus for Australian export ers consider strategies for the coming market development, and year. In some domestically-focused renegotiated contracts incorrightly so. regions, gLobaL impacT porating lower prices and reduced ‘tier JohN DropperT access are undermining farmer In total,one’ 70-75% of Ausconfidence and supply stability. For GLOBAL IMPACT tralia’s dairy exports private label DROPPERT contracts and promany farmersby in export-oriented Shifts inJOHN a lower price outlook relative to cessor rationalisation have seen milk volume go regions, to Asian desthe current season not only adds to the companies adjust their intake requireleading to aggressive cost facing consumer, tinations, and strong ments and pricing to meet the changchallenges of doing business, but seems the demandsunits of a highly pressured retail to contradict the positive medium term ing management. stocked several deep. demand growth continues outlook of Asia-driven dairy demand marketplace. Lower contract prices and Packasizes also tend to in markets growth. such as China lack of alternative supply opportuni- In the short term this 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 be much larger (2kg yogurt can manifest itself in and Southeast Asia. for southern farm gate milk prices – limited manufacturing capacity. Despite is up around 4% on 2011 for the year to East maintain consistently higher ecochopping and April (leap yearchanging adjusted), whilst early nomic growth rates that support these the underlying domespublishedwould in the recent Dairy tubs 2012: Sitwere achallenges, common Many readers uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. Howsuppliers based on price sight), reflecting larger be less conscious of the opening price range of $4.05-$4.40/kg ita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced the previous New Zealand demand growth in the market. a degree of(even cer- 2.3% full year average price range population atonthe risk ofyear. comhouseholds thatproviding not only Middle EastMSasandaadestinaThis situation has seen the scales between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish promising quality), with include more children, tion for Australian dairy, In the seasons following the 2008 this season up 10% on last year - a huge tip in favour of buyers in dairy marreport considers the wider market picinfluence given 95% of NZ milk kets, with commodity prices retreatfinancial crisisdomestic and subsequent comsummarises the many factors somemarket manufacturers but often several however, itture is aandregion at play; the key theme of the current sit- modity price recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter maintaining sets ofgrowth, reci-but a sig- Asia staff as well. worthy of attention. ties associated with higher industry looks to position volume destinapricesas areadown some 30% from their uation being that of re-balancing in the export-oriented regions have seen solid ing solid production nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have supply growth (see chart) - pes with to dairy supply chain. allow rapid product Withglobal a relatively affluDairy Australia recently value, lower volume prod- itself further up the value tion for Australian dairy In regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices reformulation with ingreent population and a deep conducted producing three semichain. ucts such as those with exports, and Australia is have subsequently been reduced in drinking milk, many farmers ern Hemisphere amongst those expand- ing South America. Despite wider economic uncer- most exporting regions. The average face a re-balancing market in the form ing output as their margins increased. dients of different specifihistory of dairy consumpnars targeting the top • John Droppert is a Dairy functional attributes are equally unlikely to estabof renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France for example, dropped 12% from 32 Euro have further enhanced cations. milk as importing countries like China and lish and reduced access to ‘tier one’ supply. tion, an ditions enormous variety Middle Eastern destinaworthy of attention as our Australia industry analyst. a dominant presence In the longer term, of local and international tions for Australian dairy: costs are sometimes the United Arab Emirates, brands are available. Bega, Bulla and Lemnos reduced by removing dairy Saudi Arabia, and Kuwait. from products altogether products comprised AusThese seminars were – replacing it with a cocktralia’s branded presence not only anaustraLian opportunity to DairY, ASEAN-Australia-New rice and wine exporters to Zealand FTA (AANZFTA). tail of vegetable-based in many outlets, in addishare the Australian dairy “Protectionist sentiMalaysia are the biggest alternatives to mimic the tionover toagricultural Australian made ment winners in aand free trade story with current goods is rife and growagreement (FTA) signed characteristics of butter or Kraft and Pauls lines. potential customers, but ing across the globe, so to provide portion pack between the two counaustraLian FooD in thisPerhaps context it isunexpectedly pleas(200-330ml) configuratries the last month. company Freedom Foods milk powders. also provided chance ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a This presents a diffigiven their overall market to gain a better underto forge an agreement seven years of negotianew milk processing plant ucts. with Malaysia has majority of The NSW location will a liberalised to cash in on growing culty for Australia in doing share, thethat vast standing oftions, theallows markets dealt with some sensiprovide access to the most licensing arrangement demand in Asia. large-volume business imported retail brands and themselves.for Australian liquid milk tive agricultural issues The plant, to be built in sustainable and economic not effectively by exportersto andthe allows southeast Australia, will be source of milk. Pactum has with Middle Eastern cusfresh delicovered products were Total exports AANZFTA,” says Fraser. strong links to the Austraaccess for higher value the first Australian greentomers, since reflecting deep region grewretail 58% to almost European, Sealing the deal: Malaysian trade ministerAustralian Mustapha Mohamed “While under the products. fields expansion in UHT in lian dairy industry and will with Australian counterpart Craig Emerson after signing the deal. AANZFTA agreement expand its arrangements It guarantees Aus10 years. suppliers tend to compete historical ties as well as 1.6 million tralian tonnes in the most of Australian agriwith dairy farmers for wine exporters Freedom’s wholly Despite the compleers through culture’s key interests supply of milk. The new best tariff treatment owned subsidiary Pactum on attributes other than but also through technical geographic proximity and streamlining five years tothe2012, before 29HO13553 Cordes-Maid 29HO16888 Seagull-Bay RMW scope ARMITAGE or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, plant will increase Malaysia gives any counAustralia will run the price. clever marketing. easing 7% last year amidst MVP-ET STONEWALL much remains to be done border’ restrictions.” dairy and rice are two sec- laration processes and for Australian milk supply x Goldwyn x Oman $30 try. It also allows open plant. Some of its products-ET Man-O-Man +GST The FTA was signed on x will for the Australia’s farmers to incrementalwithimproved – value-added, sustainable accessand arrangements from tors where be soldxinFred Australia. $26 quality and Compared many marketing While soaring prices unprecMogul x Planet x SHOTTLE $30 SHOTTLE Durham • High APR +232 May 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improveand export focused. 2023 for Australian rice The company says +GST +GST Asian markets, edented dairy demand High, • High, wide rear udders • Extremely fertile daughters by Australia’s Trade and of Australian the Asian region prodand commodities. safety of ments have been negoti-products Initially•the plantwide will rear udders with all tariffs eliminated given Asian consum• Excellent • High gTPI +2355 & gAPR +223 Competiveness Minisbeyond. regarded, The Malaysianucts marketis highly under the Malaysian produce 250ml and 1L health traits by 2026. rising incomes and • Increasesers’ Teat Length imported from outside (from China in particular). ated ter Craig Emerson•and his with He says the NFF will is worth about A$1 bilUHT packs•from a process The National Farmers’ FTA. improving demand Calving ease • Plus for fat & protein % Cows Width &diets, Strength in these markets cheaper the region don’t appear Of this 70,000 tonnes Malaysian counterpart now throw its attention lion in Australia agricul“This trade deal was line capable of 100 milFederation says the trade thereHealth will grow for qual• Calving ease • Outstanding Traits towards ensuring agricul- Mustapa Mohamed. tural exports – including also particularly imporlion L. The processing and will improve interity dairy products from suppliers with acceptto carry the same precame fromdeal Australia (9% • Excellent health traits • Improves Protein % Emerson says Australia ture remains front and being its fourth-largest tant for sectors such national market access low-cost production bases packaging plant will emit able are often mium over local brands: centre in completed FTAs will be as well-positioned sugar export market and standards of our export volume), dairy that have been less carbon, use less water, for Australian agricultural as such as Australia, whose in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disand be more energy-effimilk is well regarded. selected. the quality and safety of making thegoods. Middle as Malaysia’s closest tradChina and Indonesia as market. advantage in Malaysia cient than equivalent “After seven years of The new plant will immediate priorities. With annual economic compared with New ZeaUHTPonder facilities in Austranegotiation, the NFF is allow Pactum to meet Higher-value opportu- ing partners in ASEAN, local products tends toanbe East our second largest (l-r) WV-Oakwood 1701 (photo: Kathy DeBruin) and Barhams Legal Bonita-ET EX-90 (photo: Frank Robinson) “These are all markets and in some cases better. growth at about 5%, land which already has lia and SE Asia. Pactum under no illusion of how growing demand for nities that better suit the regarded highly. regional market; worth The FTA will guarantee Malaysia forms an impor- with enormous growth expects site preparation to challenging it has been to a completed FTA with UHT dairy milk, and add tariff-free entry for 97.6% opportunities where tant part of the ‘Asian in place.” begin in October 2012 and complete this FTA to capacity for valuepositioning of theandAustraMany domestically nearly A$300 million inwith Malaysia of current goods exports significant barriers to Century’ story and the The FTA also sigstart-up by mid-2013. Malaysia,” NFF vice presiadded beverages at lian industry are emergmanufactured products do 2013. from Australia once it opportunity this presents trade in agriculture still nals some administrative Pactum makes UHT dent Duncan Fraser says. its Sydney factory. Pactum enters into force. This will exist, not only through for Australian agricultural benefits for imported Austraproducts for private label FTA will fill a is expanding its capabiliing in the provision of rely on ingrediAs shown The in the chart, rise to 99% by 2017. tariffs that restrict trade producers, says Fraser. and proprietary customers. number of gaps within the lian agricultural exportties at the Sydney plant functional products with ents: primarily milk powwe are a relatively small added health or cosmetic ders for recombining. exporter in terms of benefits. 016-017.indd 17 6/06/12 1:41 PM Recombined milks are market share. These products curoften flavoured or proThe largest share is rently have a limited prescessed into cheeses and held by the European other manufactured prod- ence at retail level; mainly Union; New Zealand is a ucts. Fresh dairy products in the form of high calsignificant supplier. cium milks and probiEach of the three coun- tend to be produced from tries visited has its unique the region’s own milk sup- otic yogurts. Health issues such as high cholesterol, plies. attributes, but there are diabetes, osteoporosis and Local farms take the a number of common 29HO13796 Coldsprings Ponder-ET 29JE3506 Tollenaars Impuls Legal-ET form of large, feedlot-style Vitamin D deficiencies are themes. PONDER LEGAL widespread. operations, often reliant The most immediBuckeye x Oman x Patron $24 Impuls x Lemvig x Berretta $24 +GST +GST The current, relatively ately striking to an Austra- on government support in • Super small calves born 4% CE • “Best at ABS since Lester!” – Larry Schirm • Very fertile black cows with impressive udders • Outcross Danish pedigree with impressive longevity low penetration of dairythe form of fodder subsilian observer is the sheer • Unseen consistency in daughters, like peas in a pod based products designed volume of product on dis- dies or rebates. Middle Eastern ingredi- to help manage these play at the retail level. issues presents a window ent customers tend to be The large hypermarkets in major cities devote price sensitive: despite the of opportunity for brand relative wealth of the pop- development and potenseveral times more shelf tial establishment of suswww.absglobal.com/aus l abs.au.info@genusplc.com l Ph: 03 8358 8800 ulation, price controls for space to dairy than retailFax: 03 8358 8888 l Semen orders only, freecall 1800-ABS-BULL tainable premiums. staple products in many ers in Australia. The Middle East is Popular products com- of these markets restrict returns for manufacturers, unlikely to ever surpass monly had 25-30 packs
Malaysia FTA benefits dairy Freedom
Foods plant
ABS
ABS0714_DNA148x220.indd 1
Dam: Ammon-Peachy Shauna-ET VG-87.
Dtr: Kings-Ransom Arm Element-ET.
Dtr: Dairy Ave Stonewall 7577
A B S F O R F E R T I L I T Y, targets Asia TYP E AND PRODUCTI ON
1/07/14 9:26 AM
DAIRY NEWS AUSTRALIA JULY 2014
18 // MANAGEMENT
Hard work pays off for share farmers STEPHEN COOKE
TASMANIAN DAIRY farmer Mat-
thew Luck has a few tips for those who want to emulate his rise from apprentice to 50:50 share farmer but his progress can essentially be traced to one thing – hard work. Mr Luck and his wife, Lyndal, built a reputation as both hard-working and conscientious in their local district in north-west Tasmania. It meant when an opportunity arose to take part in a share farming arrangement with Andrew and Matthew Radford at Riana, they were the first considered. They gladly accepted it and are now milking 320 cows on 110ha, and should meet their original goal of owning the majority of their herd of 320 cows by the end of the season. After leaving school, Mr Luck began a traineeship milking 1200 cows near Deloraine. It was hard work – taking six hours to milk in the morning and 41/2 hours in the evening in inadequate facilities. He then moved to D. and B. Fielding and Sons, where he completed a farming apprenticeship milking 120 cows. (The Fielding family and the Carpenter family have had the biggest influence on the Lucks.) Mr Luck’s progression up the ladder included roles as 2IC and manager (at different farms) but after working as a manager, he became tired of the long
�
Share farmers Matthew and Lyndal Luck with their herd.
WHO:
Matthew and Lyndal Luck WHERE:
Riana WHAT:
Share farming
hours and, although he was on a good wage, wanted the opportunity to capitalise on his time and efforts, and grow his assets. They were then approached by the Radfords about share farming on their property in 2010. At the time, they owned 40 cows and set their goal to own all the cows within a five-year time frame. The Radfords own the 110ha farm and the Lucks leased 210 cows (with the right to purchase) through Moo and You in Launceston. The herd has grown to 320 cows and the Lucks will own 220 plus young stock outright this year. Mr Luck said the agreement is fairly straight forward, with him and Lyndal responsible for all cattle costs, the Radfords responsible for all capital costs, and all remaining costs (including pasture improvement, fertiliser, machinery) are split 50-50. The two parties also take half-shares
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in new machinery, with the Lucks now having a share in a tractor, a mower and a truck. “With grey areas, it’s a bit of give and take. We keep it easy and have never had an argument,” Mr Luck said. (The Lucks actually own the house right next door to the property, having purchased it several years earlier when Matthew was an employee on a farm close by.) The Radfords will pay for renovating the dairy, replacing the 13-a-side double up with a 20-a-side double up, enhancing the already positive working relationship. Mr Luck said milking 270 cows on a 13-a-side can be frustrating, although nothing like one of his jobs where he was milking 330 cows through an 11-aside dairy. “That was a classic case of not looking after your staff,” Mrs Luck said. “On paper it is getting the job done, but on the ground it’s just too much.” Leasing the herd through Moo and You was the only option for the Lucks but has left them with a tremendous
asset. Under the scheme, the cows are leased with an interest rate of 14%, and 20% of new calves are put into the herd. “We couldn’t have done it without the leasing option,” Mr Luck said. They now have a herd of 320 cows, with 270 spring calving and 50 autumn calving, which Mr Luck said works best for their operation and the district, and hope to own the majority of them outright by the end of the season. “We want to get to a stage where we own our cows, then we’ll look at releasing and re-investing the money,” Mr Luck said. The herd is predominantly Holstein with an infusion of Ayrshires and Brown Swiss. Cows are fed 2t of grain each year, and produce 37 litres a day off a farming area of 110ha. “Our aim is 600kg milk solids (per cow), or 190-195,000kg MS for the season,” Mr Luck said. “We averaged 580kg this year and peaked at 634kg. Our average over four years is 600kg.” Their original five-year contract with the Radfords also finishes at the end of the season and Mr Luck said they have
agreed to share farm for another five at least. “We’re excited to see where it can take us,” Mr Luck said. “There are always farms on the market, but we don’t want to buy a farm. “We prefer to invest in cows as they are a liquid asset. Someone will buy your farm when you want to sell, but it may not be at the level you need.” The Lucks are one of about 40 farmers who supply Cadburys. Cadburys, like most processors in Tasmania, want to grow, which gives the Lucks room to expand further if they want. And those tips to young farmers starting out? “Firstly, work hard, and don’t be afraid to start at the bottom and work your way up,” Mr Luck said. “If there aren’t opportunities where you are, talk to your employers and to see if something can be worked out. “If not, then seek out other situations where there is the option to move forward. “Finally, treat everything as your own.”
DAIRY NEWS AUSTRALIA JULY 2014
MANAGEMENT // 19
New investment curbs rising electricity costs RICK BAYNE
KIEWA VALLEY farmer
Pat Glass in Victoria’s Alpine region likes to be on the front foot when it comes to countering cost squeezes. Keeping a profit margin and reducing debt are high priorities for the farm and one new installation is helping to achieve those goals. The farm has recently installed a new solar hot water system which is expected to make a significant dent in escalating energy bills. The Glasses are also experimenting with new soil conditioners as they seek the best way to optimise home-grown feed. The changes are a logical way of doing business, according to Mr Glass who says all farmers need to keep a lid on costs. “The cost price squeezes on the whole industry will force us to research every possible option to retain our margins,” Mr Glass said. “All businesses do it, so should dairy.” Pat and his wife Kerrie will celebrate their 10th anniversary on the 285ha farm (they lease a similar amount of land) in November. They farm with their son Brendan and his wife Sarah. An energy audit of the dairy confirmed that water heating and milk cooling were the two big costs. “Energy is not our biggest cost – that’s still feed - but over the past three years it has been our fastest rising cost,” Mr Glass said.
“How much feed costs is out of our control but we could do something about the cost of energy. It’s worth spending money to reduce exposure to the power bills.” The farm’s previous heating system, installed about six years ago, was no longer working properly, he added. Mr Glass had investigated solar electricity but because about 60% of the dairy’s work is outside sunlight hours this wasn’t going to be viable. “We were going to be generating a lot of electricity and sending it back to the grid at 8c per kilowatt and buying it back for 20 cents. That wasn’t viable so we went down the path of solar hot water.” The farm recently installed a 1600 litre pre-heat solar hot water system which is 1600 litre heated during the day by the sun and then fed into the dairy tank at night. Paul Cooney, from A Class Solar Systems who did the installation, said this meant the water is 40-60°C feeding into the dairy tank at this time of year, about what is expected in winter. “During eightnine months of the year the temperature from the solar tanks can be up around 80°C, which means the water is only heated from 80-90°C in the dairy tank,” Mr Cooney said. The system has been set up based on local weather data and the installation took less than a week. The farm pays about $28,000 per year for
WHO:
Pat and Kerrie Glass WHERE:
Kiewa Valley WHAT:
Solar hot water
energy at the moment and Mr Glass hopes to slice $8000 or more a year from the bill, though this will be influenced by weather conditions. Depending on the weather, Mr Glass expects to pay back the investment in five years. “I’m comfortable with that,” he said. Home grown feed is the big profit driver for the Glass farm and the farm is looking at new methods to improve production and save costs. “Maximising homegrown fodder direct-harvested by the cows is what drives our bottom line,” Mr Glass said. “We’re investigating moving away from some of the chemical fertilisers and shifting to some of the soil conditioners. We’re doing some simplistic experiment work spraying parts of paddocks with different concoctions and seeing what happens. “It’s early days but we’re hopeful.” The exceptional season could be skewering some of the results, regardless of application changes. “We’ve had a fantastic season so we’ve been able to pull back the urea treatment over the past three months,” Mr Glass said. “That might be the magnificent growing conditions that nature has provided us with.” However, he is keeping a lid on things. “It’s a good season but a lot of us are still paying off last season’s bills,” Mr Glass said. “We need a couple of good years to give us a bit of room to reinvest and grow the industry.” The farm has a herd of 500 Holsteins, producing
Pat Glass on his Kiewa Valley farm.
about 8500 litres per cow each year and about 570 kg/MS. “We could push them to 10,000 litres but after first eight you’ve got to pour that much into them
it’s a law of diminishing returns,” Mr Glass said. After the solar investment, the farm’s priority is to reduce debt to pave the way for successful succession plans.
“We built our asset base until we could afford to buy a piece of Kiewa Valley,” he said. They own about 285ha and lease a similar parcel of land. Now in their early 50s,
IDeNTIfy
Pat and Kerry are looking to ease back with a succession plan which is likely to see Brendan and Sarah purchase the herd over the next five years in a sharefarming agreement.
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DAIRY NEWS AUSTRALIA JULY 2014
20 // MANAGEMENT
Move west pays off LUCY KNIGHT
DUBBO MIGHT be a long way from Australia’s more traditional dairy regions, but its climate and proximity to grain and fodder markets have been ideal for growing a family business now embarking on an exciting new marketing venture. With coal mining encroaching on their existing farm and lifestyle, 10 years ago Steve and Erika Chesworth looked west and moved their small Holstein herd and young family from Denman, in the NSW Hunter Valley, to Dubbo, in the state’s Central West. There are only four dairies in the Dubbo region, ranging from 300-800 cows, but according to some experts, it’s one of Australia’s best-kept dairying secrets. The Chesworths today run an 800cow dairy farm on 240ha of Macquarie River flats at Rawsonville, west
WHO:
Chesworth family WHERE:
Dubbo
Steve Chesworth
WHAT:
Milking three times daily
of Dubbo. In October last year they launched their own brand of singlesource milk, The Little Big Dairy Co, supplying a new on-farm factory with milk straight out of their own dairy. An unwavering focus on quality at every point of their dairy operation is the cornerstone of the business. With their three children and two of their partners now also working with them,
Central West NSW ripe for expansion INDEPENDENT DAIRY consultant Neil Moss, of SBS Cybus, says Dubbo would be one of the places he would look to first if he were to set up a new dairy. “A key issue for farmers is that proximity to the Sydney market - it’s a long way -but on the flip side Dubbo is strategically placed to reach other major markets in Queensland and Victoria, as well as Sydney,” Mr Moss said. “However the challenges around the distance to markets are offset by being close to grain and fodder sources – that is certainly a big factor in favour of dairying in the Central West.” He believes there are more opportunities for dairy expansion in the Central West with places like Narromine and Wellington also well suited to milk production. “Unfortunately many are not aware of the potential of dairy farming in the inland rivers regions of NSW but there are many reasons why the sector, when talking about expansion, should look to places like this rather than always focusing on expansion in Victoria.”
the family has been able to take the next step from farmers to small-scale processors too. Their registered herd was founded on Mr Chesworth’s father’s Tomargo Park Holstein bloodlines, and the family has built on that base with their own stud, Tomargo Recluse. The Chesworths grow annual pastures on their flats, with a dominant mix of oats, clover and ryegrass. A small area is planted to kikuyu grass, and in summer their pasture mix is up to onethird millet. Five centre pivot irrigators from two bores water the farm, and in drier seasons additional temporary water is drawn from the river. Mrs Chesworth says fortunately buying feed is not an expensive exercise like it used to be with Dubbo’s strong mixed-farming focus a boon for easily accessing quality fodder without crippling freight costs. Most years the farm buys 20003000 tonnes of corn silage from neighbours to feed to milkers with protein meal and wheaten hay. The cows are fed 8kg of dairy meal a day, which is a triticale/ barley/ pellet mix. They have a high stocking rate and run a dry and a fresh herd, with cows run fresh for 180-200 days. The Chesworths were faced with huge financial strain due to drought
only a couple of years after moving to Dubbo, so they made an operational decision to milk their cows three times a day. Mrs Chesworth says both then, and now, it’s been one of the best things for their business. “We have high-flow cows delivering an average 10,500 to 11,000 litres, with a 305-day lactation,” Mrs Chesworth said. “It gives us the confidence to provide a consistent high quality milk supply that is consistent in flavour and which we know we can always deliver.” Milking three times a day increased the dairy’s output by 20%, but required only an extra 2kg of meal per cow. Mrs Chesworth said they kept their staffing down and inputs low and “it turned our situation around in a heartbeat”. “But milking three times a day had other benefits we did not know about,” she said. “Our calving cows are always being monitored, that is a huge plus for us. “We never stop monitoring now. We know our calves are getting their colostrum easily; the calves are healthier. “People often don’t realise that it is easier to staff, our staff are happier, it gives us a great lifestyle as we are inside earlier. Those are really important factors in a family business.” The Chesworths four years ago installed a modern Herringbone 28-a-side double-up BouMatic dairy
plant with a rapid exit and Dairy King feeders. A basement houses milk metering equipment along with a secondary milking plant – this enables all milk unsuitable to be sold (such as high cell count) to be easily diverted during milking. “The technology enables easy management of this and this is what we use to underpin the integrity of the singlesource, traceable branding of The Little Big Dairy Co,” Mrs Chesworth said. “Technology is a powerful tool and we use it throughout our farm and factory. “All our cows are tagged with an electronic transponder, it means every litre of milk is traceable. “Our system won’t allow cups on those cows with unsuitable milk. “That is really important to us because we strive for high quality consistency in our milk production and in our branded milk products, and we need to be able to account for everything from start to finish.” The Chesworths are now producing eight million litres of milk a year, or around 24,000 litres a day. They have a contract with Parmalat but since late last year have been putting around 6500 to 7000 litres each week into The Little Big Dairy Co factory – their own milk label - something they would love to grow over time as the market and their processing capacity increases.
NSW contraction stopped
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PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com
WITH DAIRY supply on the industry’s radar again and expansion a recurrent talking point, the NSW sector and the role it can play in growing milk production is in focus. Milk production figures compiled by Dairy Australia reveal NSW produced 1.07 billion litres of milk. In 2012/2013, broken down by region, southern NSW produced 563.3m litres, NSW north coast 310.5m litres and 197.2m litres in the NSW inland and central region. Victoria produced 6.034 billion litres that year. Camden-based dairy consultant, Neil Moss, SBS Cybus, said the NSW sector is still recovering from “nasty years” under the tiered milk system, selling large amounts of milk
at greatly reduced prices. “This had bad consequences for the NSW sector,” Mr Moss said. “There is generally improved confidence among farmers - I wouldn’t say the sector was back to being vibrant but we’re certainly in a much better place than we were 12 months ago.” Mr Moss said drought conditions had caused some trouble in some areas, with farmers around Tamworth in the NSW Northern Tablelands still facing a precarious situation. The season is “reasonable” on the NSW north coast, but in need of rain, while farmers at Dubbo were experiencing one of their best openings to the season ever. The Riverina was also off to a good
start, and the Hunter Valley and Bega Illawarra areas were also in good shape. “Certainly the contraction we were seeing in the NSW dairy industry over the past two to three years has stopped,” Mr Moss said. “Now we’re facing a shortage of milk. “There are some positive signals out there and people need to start responding to those signals.” Mr Moss said there was not a lot of expansion taking place despite opportunities to do so. He said a contraction in milk production in southern Queensland created an opportunity for growth in northern NSW. – Lucy Knight
DAIRY NEWS AUSTRALIA JULY 2014
BREEDING MANAGEMENT // 21
Pregnancy test through milk or blood samples OVER THE past six months several Australian companies have invested in technology to diagnose pregnancy from milk or blood samples, for example through herd testing services. The industry was introduced to the IDEXX technology at last year’s Herd 13 conference when Neil Petreny, from CanWest DHI, described the enthusiastic uptake by Canadian dairy farmers. To date, Northern Herd, Farm West, HICO and Nugene have signed up for the technology which means that it will soon be available to dairy farmers in most regions except NSW, Queensland and Tasmania. The test can detect cows pregnant at 35 days from a milk sample and at 28 days from a blood sample. The milk sample test is a week earlier than pregnancy testing through traditional rectal palpation. The IDEXX pregnancy test detects pregnancy-associated glycoproteins (PAGs) that spike in a cows system from about 25 days in pregnancy and the farmer usually has the results within one to three days of herd recording. Boyanup, WA, farmer, Ray Kitchen, principal of Carenda Holsteins, has been using the service since it became available through FarmWest in Western Australia in September 2013. “Preg testing with milk samples is quick and easy and a lot less stress on the cows and the operators,” he said. Mr Kitchen also sees it as a way to close up the amount of time cows are empty, which means improved profitability for his 400-cow herd which calves in three batches across the year. “Days empty cost money. Getting cows back in calf sooner means we will be milking more fresh cows than stale cows and that means better profitability.” The first time he tried the service, Mr Kitchen had 50 cows analysed for
WHO:
Ray Kitchen WHERE:
Boyanup WHAT:
Specialised pregnany testing
pregnancy. “We found about two thirds were in calf as a result of a mating program we were running. Early preg tests are a big advantage for a synchrony program. It means we can retreat the empty cows a week earlier so they are ready to inseminate sooner.” A small number of cows receive a ‘re-check’ result meaning the cow may be too early in pregnancy to detect the PAGs or that the cow may have lost an early pregnancy. Mr Kitchen found the logistics of preg testing with milk samples very simple. “I went into our herd records on Easy Dairy to see which cows had been mated more than 35 days previously. Then I circled these cows on the herd recording paper work to order flag them for pregnancy testing. “The results are easy to understand and it’s a 30 second job to update our records in Easy Dairy.” As his herd recording date always falls near the end of a week, Ray usually has the results in time to identify the cows not in calf by the Friday afternoon and then have them cycling Sunday night, ready to inseminate Monday morning. Another advantage of early preg testing through milk samples is accurate
Ray Kitchen believes earlier preg testing through herd recording samples will allow him to close up the amount of time cows are empty. PHOTO: FARMWEST.
calving dates. “That means we can dry the cows off at the correct time. We want our cows to have enough dry period to set them up for a productive and fertile lactation, but if we give them too long we face a
loss of production and income. Now we have a tool to get it just right.” Rod Brasher from FarmWest said providing the service involved considerable investment in a laboratory, testing equipment and software but he was
confident in the value of the technology which had been voted the dairy industry’s best new product at the 2013 World Dairy Expo. • This article was first published in the June-July 2014 Holstein Journal.
Evolution of IDW Holstein sale WORLD WIDE Sires Australia is
the new sponsor of International Dairy Week’s premier Holstein Sale. The sale, to be held on the Wednesday night of IDW every year, will now be known as the World Wide Sires Evolution Sale. IDW, which is held annually in January at Tatura, is the largest dairy expo event in Australia and the Southern Hemisphere. It features many different activities, which are all designed to showcase the Australian dairy industry, and the Holstein sale is one of the week’s main drawcards. The sale, conducted by Dairy Livestock Services with auctioneer Brian Leslie, highlights the best Australian and international Hol-
stein genetics. Leading breeders offer their best animals for the gold class sale and many animals over the years have seen strong international interest and consequently have been sent to all parts of the world. Mark Patullo, of World Wide Sires Australia, will be the evolution sale manager. “Our team believes there is no better way to promote the value of elite genetics than via the ‘premier’ sale of the year,” Mr Patullo said. World Wide Sires Australia takes over the Holstein sale from Semex Australia, which has managed it for the past 20 years. Mr Leslie said he was extremely excited about the opportunity pre-
sented by World Wide Sires to manage the sale. “With World Wide Sires representing the largest breeding organisations in the US, I am looking forward to their knowledge, expertise and enthusiasm in making this sale at huge success,” Mr Leslie said. “I thank Semex for their support and look forward to the new direction with World Wide Sires.” IDW organisers have thanked Semex Australia staff for their work in promoting the sale and growing the quality of offerings over the years, in particular the leadership shown by Vaughan Johnston in ensuring cattle were well prepared for and displayed at the sale.
Tierwil Miles Cindy
PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com
DAIRY NEWS AUSTRALIA JULY 2014
22 // BREEDING MANAGEMENT
New ABV for feed conversion efficiency A BREEDING value
for feed conversion efficiency (FCE) is expected to become available next year. Now in the final stages of development, the FCE breeding value will describe the feed saved for
daughters of bulls identified as being efficient. Dr Jennie Pryce, DEPI’s senior research scientist, says using this breeding value could result in a 5%-10% gain in profit arising from improved feed efficiency in the next gen-
eration of animals and with that improvement compounding in each new generation. A cornerstone in dairy farm profitability is the ability for cows to produce milk as efficiently as possible from the feed available.
In breeding spheres selecting the most efficient animals is not a new idea. The Australian Profit Ranking (APR) uses a liveweight breeding value to identify animals that are efficient converters of feed into profit.
Growing heifer feed efficiency trial at DEPI Ellinbank.
This reflects the animal’s nutritional maintenance requirement because heavy animals
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require more feed for maintenance. The liveweight breeding value is simply an estimate of weight based on the linear type traits of body depth, stature and chest width. So it might be considered a somewhat rough and rudimentary indicator of feed conversion efficiency. Until now it has been the most economical test available. Getting a more accurate measure would have involved putting daughters from each bull through an experiment where the energy levels of everything that goes into the cow and everything that comes out is measured including milk, urine, excrement and gas. The cost was prohibitive but genomics offers a new approach to getting a more accurate indicator of an animal’s genetic merit for feed conversion efficiency. The idea is simple: perform the experiment to determine feed conversion efficiency on a large subset of animals in a traditional progeny test. At the same time genotype those animals to identify the genes or “SNPs” that have a significant effect on feed conversion efficiency performance. Once these genes and their effects are identified, the genotype test (similar to that used for calculating genomic breeding values) can be used to identify which other animals have those genes. This is a different path to the conventional way of calculating breeding values which is simply collecting large amounts of data, be it production or type classification information, and then comparing the performance of animals based on their performance and that of their relatives. Although this sounds like a simple process, developing breeding values from a relatively small group of animals still
requires lengthy trials to generate a breeding value with an acceptably high reliability for breeders to use. The trials were conducted by Dairy Futures CRC scientists. A large group of 6-month-old heifers was fed a strictly controlled diet and compared their individual growth rates. The best and worst performers for growth rate were then selected for what is known as a “high vs. low” trial looking at their efficiency to convert feed into milk and differences in feed efficiency between the two groups were observed, indicating that selecting for feed efficiency in growing heifers will result in efficient cows. The next step was to create a genomic prediction equation based on feed efficiency data from lactating cows. As this requires a large dataset, Australian scientists collaborated with several similar international trials to have enough data to calculate a breeding value. This international collaboration has a twofold effect. The first being the increase in the amount of data that is received but equally important is that it helps our system to more accurately predict genetic animals of elite merit for FCE from other populations. An understandable concern is the potential negative impact on fertility from using a feed conversion efficiency breeding value which selects animals that mobilise body energy into milk. The researchers have been particularly careful to ensure that selection on the FCE breeding value will maintain body condition while achieving an acceptable calving interval. • Rohan Butler is Holstein Australia’s genetic improvement manager. This article was first published in the June-July 2014 Holstein Journal.
DAIRY NEWS AUSTRALIA JULY 2014
BREEDING MANAGEMENT // 23
Well-grown heifers best bet for sexed semen A SOUTH WEST Victorian study has found that dairy farmers can benefit from using sexed semen, particularly in well-grown heifers. The Warrnambool Veterinary Clinic conducted a Fixed Time A.I. monitoring program of both sexed and conventional semen and found that joining heifers with sexed semen at 320kg or more can produce good results for dairy farmers. Speaking at a Warrnambool Veterinary Clinic FarmChat forum at Allansford last month, Dr Jon Kelly said size rather than age was a key factor in reproduction success. Dr Kelly said there were benefits from using sexed semen, including more replacements, better opportunity to cull, driving herd structure younger and as an extra income stream with excess heifers. “The most fertile animal in a herd is a well-grown heifer so farmers should target them rather than cows. Cows are inherently less fertile than heifers,” he said. Sexed semen will result in about 90% heifers and 10% bulls. “Some heifers are only 12-13 months old when joining but it doesn’t make any difference to your result as long as they are big enough. “Using the Warrnambool Veterinary Clinic Fixed Time A.I. program at 320kg you are likely to get over 85% showing heat at the time of A.I. It shows they have all reached sexual puberty.” The trials found sexed semen achieved an average 41% in-calf rate, which Dr Kelly said was worth doing. “One farmer had 26% in-calf rate but the farm only had 70% showing
A favourite with Australian farmers, Holstein sire Shottle turns 15 this month.
Powerhouse Shottle turns 15 Dr Jon Kelly says size rather than age is a key factor in reproduction success.
heat when they were receiving A.I. because they were little heifers,” he said. “Herds with smaller heifers get lower conception rates. Little ones don’t calve as well while bigger heifers are much stronger performers. “If you can’t guarantee a 30% conception rate then the benefits aren’t there and you should go back to using normal semen. It all comes down to the heifers submitted to the program.” He added that Fixed Timed AI is an option for heifers at out paddocks where heat detection is difficult. Farmers should use a team of sexed sires. “Don’t put all your eggs in one basket,” he said. Dr Kelly said the study across southwest Victorian farms confirmed that sexed semen is very different to conventional unsexed semen. “It is a compromised product that gives lower conception rates than conventional semen and should be used in a controlled way,” he said. Dr Kelly said it is also possible to
use sexed semen in the milking herd. “There are a lot more cows than heifers in the herd and we should be having a crack at using sexed semen but in a controlled way. Be wary of the hangover effect. “Be wary of using sexed semen for too long in the joining period and affecting next year’s fertility.” Dr Kelly described the first month of joining as critical for subsequent herd fertility. Farmers should maintain strict quality control, and preferably use A.I. technician they have used in the past and had good results with to carry out the procedure. “Do all that the farm can control really well – A.I. technique, animal handling, heat detection,” he said. Dr Kelly said the dairy industry had successfully bred high producing cows but this came at the detriment of reproduction results. “It can be a vicious cycle that keeps getting worse unless you do something about it.”
POWERHOUSE HOLSTEIN sire, Picston Shottle, claimed fifth place in the top-25 Holstein USA legends in April, just three months shy of his 15th birthday. Born in July 1999, Shottle has had a significant impact on the Australian dairy herd and continues to live at the Genus ABS bull centre at Ruthin, North Wales. Shottle semen has been sold in 36 countries worldwide with the biggest market outside the UK being Australia, Canada and the US. The sire claimed number one spot in the US and Canadian type rankings in 2008, and stood at the top of the Holstein USA’s Top 100 list for seven straight sire summary releases (January 2008 to January 2010). Shottle has been in high demand as a sire of sons, with many progeny tested in all the leading dairy countries – more than 100 sons have been evaluated by Genus ABS alone. ABS Australia operations manager Bruce Ronalds said Shottle has been the most influential sire in Australia, leaving daughters with outstanding type and exceptional health traits. “Shottle again is ABS Australia’s highest seller with four of the company’s top 10 selling bulls being influenced by Shottle including Shottle himself,’’ Mr Ronalds said. “Shottle has had almost 1500 daugh-
ters classified in Australia with over 40% being VG or higher.’’ Gippsland dairy farmer Roger Perrett, Hill Valley Holsteins, Kongwak, was among the first breeders to use Shottle semen and exhibited the 2012 IDW supreme champion, Page House Shottle Noni. Mr Perrett rated Shottle as “right up there with the best bulls ever’’, surpassing the elite sires of Shotime and Prelude. He is milking over 30 Shottle daughters and is impressed with their workability, low cell count and fertility. “Our top cow Noni produced 13,000 litres and plenty of the other daughters in our herd produce over 10,000 litres with ease,’’ Mr Perrett said. “They don’t get mastitis and are beautiful shaped, moderate framed cows. “They have strength, body capacity, bone and longevity – I haven’t culled any yet as they’re still useful cows.’’ Mr Perrett said Shottle progeny were generally 50% black animals favoured by the commercial producer. “They just keep keeping on,’’ he said. ABS Australia is marketing semen from Shottle and conventional and sexed semen from 14 Shottle sons. With an APR of +207, Shottle is appreciated by farmers for stamping his daughters with strength, capacity and functionality, Mr Ronalds said.
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DAIRY NEWS AUSTRALIA JULY 2014
24 // ANIMAL HEALTH
Proper calf rearing improves AI success RICK BAYNE
ALLANSFORD DAIRY
farmers Sam and Christine McCluggage follow a simple calf rearing system that proves size really does matter when it comes to reproduction success. For the past five years the farm has used a fixed time sexed semen A.I. program and has made the development of well-
grown heifers a high priority. All calves are given every opportunity to grow to their genetic potential. The McCluggages aim to rear heifers to a joining weight of 350kg at 15 months and a calving weight of a minimum 600kg as two-year-olds. The program has been worth its weight in milk with bigger bodied heifers producing high in-calf
rates and production and reproduction targets being met. The McCluggages hosted a Warrnambool Veterinary Clinic FarmChat forum last month to explain their successful system that has been overseen by Dr Jon Kelly. Last year the farm achieved a 53% in-calf rate with the sexed semen program – higher than industry expectations of about
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Sam McCluggage (left) with Gavin Lake, Clayton Smith and Alex Craig at a FarmChat forum held on the McCluggage property at Allansford.
40% - which was boosted to nearly 90% after the addition of Jersey bulls. “We were very happy with that,” Mr McCluggage said. “Anything 45 or over is a good result with frozen sexed semen. We’d be happy to get 53% with whatever we used.” This year the farm will rear 300 heifer calves from a 650 herd. “We probably came off a base of 150160 five years ago,” Mr McCluggage said. The farm’s priority is to grow good size heifers to continue the high reproduction rates. “We aim for a young herd with extra numbers entering at the start of calving and well-grown heifers that can produce well and become pregnant,” Mr McCluggage said. “We’ve been able to breed a lot more early heifers and we’ve been able to double the amount of heif-
WHO:
Sam and Christine McCluggage WHERE:
Allansford WHAT:
Calf rearing
ers by joining a big heifer group. “We get probably 60-80 heifer calves right at the very start of calving. “To get your heifers well grown gives them the best chance of conceiving and to have a good healthy calf. The bigger heifers definitely produce better. They’re not that far off their mature herd mates if you get them up to that 600kg plus mark at calving for Holsteins.” The calf rearing program follows up the suc-
cessful A.I. system. “Keeping things simple is the key,” Mr McCluggage said. “We don’t have any automation in our system.” Years ago the calving season started in mid-May but it was brought forward to March 20 as the herd grew bigger and to suit a preference for working with animals while the weather is still good. Calves are removed from their mothers within 6-12 hours and given two litres of fresh colostrum via a tube feeder and then another two litres 12 hours later. Once fed the calves are put in a purpose-built shed set up for protection from wind and rain from the west and south but has the east side open to allow good ventilation. Wood shavings 450mm deep are used as the base of the floor, with an extra 100mm saw dust added later in the season. Five
calves are housed in each pen. Early in the season calves stay in the shed for only 4-8 days unless the weather is poor. They are then moved to small, wellsheltered paddocks. “We try to get the calves out in the paddocks as early as we can, which you can do when you’re an early calver,” Mr McCluggage said. The new-born calves are fed 3-5 litres of fresh colostrum milk once per day, with the youngest calves receiving preference for colostrum. The calves are weaned by sight from 13 weeks, though late calves may stay on milk until 16-18 weeks to help them catch up. Grain feeding continues for a further 6-8 weeks with smaller latter calves offered more to make up growth. Calves in the paddocks have access to an adlib crushed grain mix and fresh water.
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DAIRY NEWS AUSTRALIA JULY 2014
ANIMAL HEALTH // 25
Cow comfort key to stand-off pads COW COMFORT should be a farmer’s top priority in any decision to install stand-off pads. So says DairyNZ, which did a three-year study of standoff pads that help prevent pasture damage in wet weather. The work is reviewed in Stand-off pads – your essential guide to planning, design and management. The research looked at eight North Island farms with stand-off pads during May-August. The Northland and Waikato farms were monitored for hours of pad use, pad stocking density, surface material deterioration and cow comfort. DairyNZ farm systems specialist Chris Glassey says it used activity meters on cows on a stand-off pad in Northland and found that the cows’ comfort levels were wellmaintained over the winter period. “That’s the encouraging bit, the cows liked it,” said Mr Glassey. “Their comfort was measured in time spent lying down. Cows need to lie down for at least eight hours a day and will spend time lying in the paddock, instead of grazing, if the stand-off pad isn’t comfortable and spacious enough. “The key to the Northland pad’s success was designing it correctly with appropriate drainage, then regularly topping up and replacing the surface material (woodchips) to create a surface the cows wanted to lie on.” The new guidelines are to help farmers establish and run stand-off pads that keep cows comfortable, fit with the farm system and prevent pasture damage. “Most farmers are looking for the simplest, most established methods of minimising winter and summer pasture damage,” said Mr Glassey. “New practices and knowledge gained by farmers over the years… are included in the new guide.” Mr Glassey says the research showed that one pugging event during winter can halve pasture production for as much as seven weeks. “About 40% of the ground was bare after moderate treading in winter and pasture took two months to recover, during which time pasture growth fell by 600kgDM/ha. “Through pasture reduction pugging can have an impact on milk production.” North Island farmers wintering herds on wetter soil types and upper North Island farmers using on-off grazing to protect summer pasture are likely users of standoff pads and will find the guide useful, Mr Glassey says. “Despite standing-off being around for some time, larger herds now make it more complex, bringing increased costs. Containment of effluent and greater requirements to meet cow comfort levels are also more important.” For more details see: www.dairynz.co.nz/stand-off-pads
Stand-off pads prevent pasture damage in winter.
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DAIRY NEWS AUSTRALIA JULY 2014
26 // ANIMAL HEALTH
BT diagnosis can prevent milk loss A UNIVERSITY of Melbourne scientist has created a rapid, cost-effective diagnostic tool that will allow for the regular monitoring of bovine theileriosis (BT) in Australia. BT is a tick-borne disease that is similar to malaria in humans. Dr Abdul Jabbar, a senior lecturer in Veterinary Parasitology at Melbourne University, has
used funding associated with a Dairy Australia award to research diagnosing herds against the disease. To date there have been no treatments or vaccines available for BT in Australia and no accurate diagnostic tests available for livestock producers. However Dr Jabbar’s project has improved the understanding of the dis-
“This project will help not only to diagnose but also to regularly monitor BT in Australia.” ease prevalent in Australian cattle. “In 2011 we were approached by a senior veterinarian to investigate an outbreak of haemolytic anemia in beef cattle near Seymour, Victoria,” Dr
Jabbar said. “In this study, we found that the outbreak was associated with pathogenic strains of Theileria orientalis - the causative agent of BT in Australia and first time reported
Dr Abdul Jabbar
theileriosis in Victoria. “Very little was known about the epidemiology, diagnosis and economic impact of theileriosis, therefore we decided to
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across agriculture, fisheries and forestry are awarded a grant of up to $22,000 each to fund an innovative research project that will benefit Australia’s primary industries. Dairy Australia sponsors the dairy category. Dr Jabbar said the award allows for young researchers to develop their career and address important industry projects. “The current project has played a pivotal role in the development of my research career. I am planning to extend my research activities in the field of tick-borne diseases of livestock,” he said. “In the next 12 months, my focus will be to publish the papers originating from this project and also write review articles on the subject.” Since 2001 more than 180 young Australians aged 18 to 35 have benefited from a Federal Government award with successful recipients using their funding for a range of activities including research projects, industry visits, study, training and development, or conferences and workshops.
investigate.” Over the past 12 months and with a team of five researchers, Dr Jabbar has used his 2013 Dairy Australia award to research diagnosing herds against the disease. “This project will help not only to diagnose but also to regularly monitor BT in Australia,” Dr Jabbar said. “We have developed a high throughput assay – or diagnostic tool - for the rapid diagnosis of BT. “Using this, we can detect two virulent and two avirulent strains of Theileria orientalis. “This diagnostic tool will be available to cattle farmers nationally through diagnostic laboratories.” During the course of the project Dr Jabbar also assessed whether BT has an impact on milk production and the reproductive performance of dairy cows. “Results of this study revealed that clinical BT can cause significant milk production losses in dairy cattle,” he said. Dr Jabbar was the recipient of the Federal Government’s 2013 Science and Innovation Award. Winners from
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DAIRY NEWS AUSTRALIA JULY 2014
ANIMAL HEALTH // 27
Managing mud and the problems it brings THE TALK around the
farms in Northern Victoria at the moment is how we manage mud. When farm tracks and laneways are slippery and muddy, and the cows’ feet are soft due to being constantly wet, lameness can become a serious issue. When the cows’ feet are soft and sore, it can take a long time for the cows to walk to and from the dairy. I know the time pressures that dairy farmers are under but it is critically important for foot health, and ultimately herd health, that sore footed cows are not pushed hard to the dairy. When the herd is allowed to walk at its own pace, the cows carefully place their feet and can avoid penetrating injuries to their soles even if the tracks are damaged due to wet conditions. When the herd is forced to walk fast, their heads go up into the air, and their feet are placed indiscriminately and often injuries will occur. When the feet are wet and soft, wearing of the soles can become a serious problem. Very abrasive surfaces to dairy yards or feed pads and sharp turns in exit races can all contribute to excessive sole wear. The use of matting, or other things like straw, sawdust and old carpet can reduce the wear in the short term whilst waiting for the mud to dry out. Lame cows need special care and attention. Carefully examine the foot/feet of any lame cow before just reaching for the antibiotic bottle. Lift the foot safely yourself, or get your veterinarian or a professional hoof trimmer to examine the hoof to rule out things like hairy heel warts, abscesses or stones as they tend not to respond to simple treatment with antibiotics. Recording the cause of lameness can be a very valuable tool. The old saying, “you can’t manage what you don’t measure” applies to lameness as
soft and supple may also be advantageous in really nasty winter conditions. After milking, do not hold cows back in muddy yards, laneways or feed-
pads. Allow them to exit the dairy and walk quietly to a paddock where there is feed (either pasture or hay/silage) available in the cleanest conditions possi-
ble. It is not recommended that cows go straight from the dairy to either a muddy feedpad or standoff/sacrifice paddock. This is to allow the teat ends to close
over, preventing mastitis organisms from entering the teats. Even really waterlogged pasture can be grazed without too much damage
if cattle are allowed only a couple of hours to graze the paddock after milking before being quietly moved off to a sacrifice or standoff area.
ANIMAL HEALTH ROB BONANNO much as nearly any other disease on a dairy farm. By keeping accurate records of not only the treatment given, but also the lesion that was present, it will allow your veterinarian or herd advisor to look for emerging patterns that may indicate causative factors like poor nutrition (laminitis and white line disease), staff rushing cattle to the dairy (sole penetration and abscesses) or hygiene issues indicating too much time standing in slurry (hairy heel warts). I would strongly encourage farms to start keeping records of lameness events if you are not already doing it. Talk to your vet if you need some help with identifying the different types of lesions. Mud also means mastitis. There are a number of ways that you can reduce the incidence. Again, moving the cattle very slowly, at their own pace will not only prevent foot injury, it will reduce the amount of mud and manure splashed on the udders and teats. This reduces the risk of environmental mastitis like Strep., Uberis and the serious and potentially life threatening coliform mastitis bugs. Mud and manure on the teats and udder should be washed off and most importantly, the udder and teats completely dried before attachment of the milking unit. Wet teats will have a rich bacterial soup sitting at the teat end, just waiting for the chance to invade the udder. Post milking, extremely thorough teat spraying using a minimum of 20ml/ cow/milking is essential. Addition of an approved emollient to keep teats
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L A I C E P S T R O P RE NEXT ISSUE: AUGUST 2014 HAY & SILAGE When it comes to Hay & Silage production, preparation and planning are as important as having the right gear. To help farmers prepare and maximise the conversion of grass into milk, therefore into dollars, Dairy News is putting together a Hay & Silage Special Report. This will run in the August issue of Dairy News, distributed free to all dairy farmers. BOOKING DEADLINE: July 30 AD MATERIAL DEADLINE: August 5 PUBLISHED: August 12
CONTACT: CHRIS DINGLE | T: 0417 735 001 E: chris@dairynewsaustralia.com.au
DAIRY NEWS AUSTRALIA JULY 2014
STOCKFEEDS // 29
High-energy pellets give more milk A NEW high-energy feed especially formulated for dairy cows has provided a Jack River farmer with a simple and effective way to increase production, with the added security of reducing the risk of acidosis. Ed and Heather Moore have a 60ha dairy farm near Jack River in South Gippsland and feed their milking cows 6.2kg/day of Castlegate James Super E pellets. The pellets contain a blend of starches, sugars, fat and fibre and a full complement of macro minerals, vitamins and trace elements as well as Rumensin and Acid Buf for
improved rumen health. Castlegate James say the pellet feed will perfectly complement grass, hay or good quality silage. “There’s no need to fuss about with mixing and feeding out, the cows love them and the stomach security means I can rest assured that they are getting enough energy to produce plenty of milk without the metabolic disorders associated with feeding grain,” Mr Moore said. “We have no problem with acidosis even at a high feeding rate.” The sweet taste makes it very palatable, providing increased dry matter
intake, which is important in increasing milk production and live weight gain. The Moores’ cows also receive pasture, hay and silage. And these pellets give them a “...bit more to go on.” “There’s another major benefit, birds don’t like them and that has significant advantages,” Mr Moore said. Cycling has improved since they have been feeding out with Super E pellets so heat detection is a breeze and the calves have also done very well on Super E, he said. The herd is mainly Friesian and Mr Moore is extremely happy with
their production. “We have 150 spring calvers at around day 250 in their lactation and they are still producing,” he added. At one stage the Moores considered feeding a total mixed ration. “Once you go down that path you’re committed and we would need to hire a full-time employee to look after just the feeding,” Mr Moore said. “To me it’s too time consuming and labour intensive. Feeding pellets is a far simpler process.” He explained that Castlegate James has been instrumental in ensuring the smoothness of the feed operation.
South Gippsland farmer Ed Moore feeds 6.2kg of pellets each day.
“Our local territory manager, Neil Cope, ensures we know exactly when the pellets will be
Boost winter pasture growth by 35% NORTHERN
VICTORIA dairy farmer, Evan Bourchier, at Strathmerton says the use of ProGibb SG has boosted feed growth during winter by an estimated 35-40%. “It’s certainly good stuff as far as getting a bit of extra feed during the winter months,’ Mr Bourchier said. “It’s quick and easy to apply and we see the first results in 7-10 days. The extra growth continues for about three to four weeks.” Evan runs 750 dairy cows, mostly Fresians with some crossbreds. He started using ProGibb about eight years ago when it was first launched. “By using it, we can make sure the cows get proper pasture feeding. We
prefer to see them feed on fresh grass rather than hay or grain. You can’t beat green grass for feed. “It turned out that we got enough extra pasture grass left over to cut quite a bit of hay and silage. That provides some extra bulk when needed. And it saves us bringing in hay — which can cost quite a bit. “All up, ProGibb has really reduced our reliance on supplements. We do give the cows vitamins and minerals but the best ones come from fresh pasture.” According to the manufacturer, ProGibb SG promotes growth through cell elongation and is suitable for application to annual diploid and tetra-
delivered and if we need an extra load or to change the schedule, Neil is right on the job. They provide
great service.” Tel. Castlegate James Australasia on 03 8311 2200.
Pasture on Strathmerton farmer Evan Bourchier’s property after ProGibb.
ploid rye grasses, perennial ryegrasses, phalaris, fescue and cocksfoot. ProGibb SG is also suitable for use on native grasses and improved species. ProGibb SG, having nil residues or withholding periods for milk or meat production, is also certified organic and can be incorporated into organic farming systems. Mr Bourchier said some of the observed benefits of using ProGibb SG include increased carrying capacity, animal weight gain and milk production along with significantly reduced reliance on supplementary feed, resulting in greater overall profitability.
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DAIRY NEWS AUSTRALIA JULY 2014
30 // STOCKFEEDS
Look at margin when adding feed FARMERS SHOULD
ensure any stock feed they add to their production system improves their margin, not just their production. The warning was issued by DemoDairy farm management consultant Paul Groves, who has improved the profitability of the western Victorian farm in part by reviewing all feed costs.
“Before you listen to a sales rep saying you will get more production by adding this product, ask ‘does it make me more margin?’,” Mr Groves said. “This farm had a history of putting in more feed to get more production, but it didn’t make more money. “You make more money if you use more home-grown grass but,
more cows does not always mean more grass is consumed. “It’s very difficult to achieve high per cow production, it is almost impossible to do high production and high stocking rate.” Mr Groves said if the 2011-12 costs were repeated, even with the improved milk prices, the farm would have lost
Paul Groves with DemoDairy chairman Bryan Dickson.
$150,000 in the 2013/14 season. “The changes have improved the business by $210,000 at today’s milk price, and will result in a profit of over $60,000.” The DemoDAIRY profit in 2013/14, excluding finance and labour costs will be more than $260,000, or $1,155 per cow. Before the changes were made, the farm was paying $211,103 for feed above industry averages for the amount of milk coming off the property. “Because of the heavy stocking rate, the farm had been pushed into the corner to have buy-in feed. “The production cost per hectare was very high because of $1200 per cow of brought-in feed; it should be about $500 for the level of production that was achieved,” Mr Groves said. He said that on the DemoDAIRY farm, costs
fill the winter feed gap can generate 30 - 60% more dry matter within 3 weeks of application “I’d certainly recommend ProGibb®. We use a fair bit of it. So do our neighbours. It’s all about giving our animals as much fresh feed as we can.” Evan Bourchier Dairy farmer, Strathmerton Vic
Scan here to go to www.progibb.com.au
www.sumitomo-chem.com.au ProGibb® is a registered trademark of Valent BioSciences Corporation, Libertyville, IL, USA.
were brought under control by reducing the stocking rate by about 75 cows to 220 cows, from 2.5 to 1.9 cows per hectare. The farm was achieving more milk solids per hectare than profitable farms, 1248 kg of milk solids per
hectare compared to more profitable farms producing 775, but production costs were prohibitive. “For this farm it all came to adopting a reasonable stocking rate and reviewing costs, particularly feed costs,” Mr Groves said.
“With this stocking rate we have more control. It’s about having the right number of cows for the property and finding out what sort of cows you’ve got and feeding them appropriately. Not every cow is built to do 600kg of milk solids.”
Supplementary feed testing stops production losses THE NUMBER of farmers testing supplementary feed sources has risen compared to five years ago but it is still not enough. All farmers should properly test their supplementary feed sources to avoid compromising production, according to Geraldine Perkins from CRC AgriSolutions. Mrs Perkins said not enough farmers were getting optimum value for their feed investment because they don’t feed test, and many that don’t test are taking an overly-optimistic guess about their feed quality, or are incorrectly estimating dry matter percentages, which can have a big impact on dry matter intake. She also said it was important for industry service providers to encourage their clients to feed test. “If you don’t do it you run the risk of compromising production,” she said.
“If you think your feed is better than it is, you’re not going to hit your milk production targets. The tests will help you to balance your rations more accurately in order to achieve better results. “At the end of the day, there’s no point kidding yourself; you need to know exactly what you’re getting so you can make decisions about adequate supplementation to achieve your desired energy and protein levels.” She urged farmers to not necessarily purchase the cheapest feed options when buying in feed. “Even if something looks expensive on a per tonne basis, it is important to break it down to a cents per megajoule or cents per unit of protein basis to understand the true feed value.” Mrs Perkins said feed found to be low grade could still be used on lower production cows or to supplement dry cows.
Feed tests needed for hay WESTERN VICTORIAN dairy
farmers have been urged to trust their senses but also conduct feed tests to ensure they are buying top quality hay. Mark Lourey, the manager of Feedworks’ domestic hay trading business, Quality Hay Suppliers, told a WestVic Dairy Profitable Feeding System workshop earlier this year that farmers need to know what they are buying. “If you buy hay up on neutral detergent fibre (NDF) and down on metabolisable energy (ME) it will cost you a lot of money,” Mr Lourey said. Mr Lourey said some offers of “bargain” were not really bargains. “Keep your eyes open to know what you’re getting,” he said. Mr Lourey said farmers should try to inspect hay before buying, or use a hay trader to make sure they are buying good quality. “Use your senses…if it smells good, feels good and looks good it probably
is good. The cows will be smelling and tasting the same thing,” he said. “You should follow your gut instinct but also make sure you do feed tests. They cost about $55 but they are a good investment. You want to make sure every mouthful the cows get is good for them.” Mr Lourey said Feedworks sampled more than 10% of bales and conducted at least three feed tests from different sites as a guide to ensure farmers are getting good quality. “We don’t sell unless we look at it first, and all buyers should have the same philosophy.” Mr Lourey said a black spot on cereal hay will indicate rain damage.
DAIRY NEWS AUSTRALIA JULY 2014
STOCKFEEDS // 31
Test results in 24 hours NEW FEED test analysers based in Toowoomba, Shepparton and Charlton will give dairy farmers a 24-hour turnaround in assessing the quality of their feed. The new FOSS NIR DS2500 machine based at Feed Central’s laboratories is described as a major breakthrough for farmers and a new era for feed analysis in Australia. Feed Central managing director Tim Ford said the quick turnaround time would allow farmers to use the information while it is still relevant. “This allows farmers to implement any changes as a result of the feed analysis results before any production implications have occurred,” Mr Ford said. “Customers will get the most out of home grown and bought in grain and fodder by knowing exactly what they are feeding to their cattle and to get the best performance possible from those animals,” he added. “Feed rations are becoming increasingly sophisticated. Even on
a traditional 200 cow family dairy farm knowing that your hay or silage is 10 Metabolisable Energy (ME.) or 9 ME can make a massive difference to your milk production. It will allow you to change other ingredients to maximise milk in the vat the very next day so it is critical to have the information we provide within 24 hours.” Traditional fodder and feed grain analysis labs can take from three days to four weeks to return results to farmers. Feed Central has secured the exclusive Australian licence with renowned USA-based laboratory Dairy One for the FOSS NIR (Near Infrared) machines that produce more than 30 key parameters for each sample. It is the only Australian feed tester providing 24-hour feedback. Mr Ford said farmers across Queensland were appreciating the prompt response and more were realising the benefits of testing. “Feed testing is an
Rations mix boosts milk production MIKE BOYD
USING A mixed ration in conjunction with grazed
pasture can boost milk solids production by increasing cow intake and improving rumen function. These finding were reported by Dr Bill Wales, DEPI research manager, at a Dairy Innovation Day, following Dairy Australia funded research projects conducted at Ellinbank. Mixed rations fed to cows, compared to simple grain mixes, has been shown to increase milk yield and solids production (mostly fat) in early lactation by increasing the amount of feed consumed by cows and the efficiency of conversion into milk. Dr Wales shared his experiences with a group of dairy farmers and service professionals at DemoDairy in May. A full-sized fibreglass digestive tract was used to illustrate the process of digestion in dairy cows, which features the production of about 200 litres of saliva each day. Another benefit from feeding cows with a well-balanced ration, plus pasture, was that the amount of methane (greenhouse gas) lost per litre of milk produced declined. The cows produced the same amount of methane, while producing more milk. More detail and notes from the Dairy Innovation Day are available from Mike Boyd on (03) 5561 9926. • Mike Boyd is with the DEPI in Warrnambool.
investment in the productivity of any herd or farm and now farmers can do this like never before,” he said. Feed analysis is currently available on hay, grain and silage with calibrations only weeks away for TMR (Total Mixed Rations), and pellets. All information is emailed to
customers on a Feed Central Quality Statement for their records. Mr Ford said the company had searched around the world for the most advanced fodder and feed grain analyser machines. “The FOSS NIR DS2500 with its highly accurate optical near infrared technology gives
unmatched performance across the full wavelength range of 400 to 2500nm,” he said. “Whether testing for moisture, energy and protein, or more demanding parameters such as animo acids, ash or fibres, the machines deliver precision results in under a minute, with analyses fully calibrated with Dairy On.”
David Earle
LIFT PRODUCTION WITH TOP QUALITY PELLETS AND GRAIN MIXES Specialised grain mixes and pellets from Castlegate James will optimize milk yield and improve utilisation of pasture. SUPER P is a high-protein pelleted stock feed specifically designed to supplement dairy cattle during times when pasture quality is poor due to dry conditions. Very palatable with a protein level of 15% and high energy formulation (M.E. 12.5 MJ/kg). SUPER E is an exciting high-energy pelleted feed, especially formulated for the dairy and feedlot industries. It contains a unique blend of starches, sugars, fat and fibre, and has been designed to perfectly complement grass, hay or good quality silage. Sweet taste makes it highly palatable, metabolisable energy of 12.7 MJ/kg, protein 9%. To contact your local representative and find out how these exceptional grain mixes and pellets can assist your profitability call 03 8311 2200. Castlegatejames.com.au
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DAIRY NEWS AUSTRALIA JULY 2014
32 // MACHINERY & PRODUCTS
Robot milker phone app provides more freedom A SMARTPHONE app
just released by Lely Australia will enable farmers with their Lely Astronaut robotic milkers to monitor and control the system from their phone, regardless of where they are. Lely said the new Lely T4C InHerd Management tool can make farmers’ operations even more efficient. Darryl Light, from Drouin South, near Warragul, in Gippsland installed two Lely A4 Astronaut robots two years ago. Up until then he had been milking on a 10-stand double-up herringbone originally built for five foot tall milkers. Mr Light is over six foot tall and he chose to go with the robots from an ergonomic view to relieve the labour stresses on him. “My knees don’t ache like they used to standing on concrete plus all the things that are bad for you in that situation,” he said. “I used to say that I milk cows – now I tell people I’m a dairy farmer.” A major feature of the Lely Astronaut A4 cow box is the walkthrough design called the I-flow concept which allows the cow to walk straight in and out of the box avoiding any unnecessary obstacles. The cow friendly design allows for continuous interaction with the rest of the herd to elimi-
WHO:
Darryl Light WHERE:
Drouin South WHAT:
Robotic milkers app
nate unnecessary stress. Mr Light milks 120 Jerseys at Jadell Jersey Stud which covers 93ha (230 acres) with a 28ha (70 acre) out-block. He took over the running of the dairy from his parents, Alan and Beth, a few years ago and now nobody else is involved in the milking. Alan comes over to hose down each morning. “I don’t have to milk twice a day, it gives me another four to five hours a day to do other things,” he said. “But I’m on call 24/7 in case there is an issue with the robots.” Mr Light said he was given the T4C InHerd management app for an early trial. It is applicable to all smart phones and he explained that his phone receives a signal which goes to the server, then to Holland, on to the internet and into his computer – all in three seconds. “It gives me remote operation of the dairy through each cow’s ID.
The Lely T4C InHerd phone app provides a complete overview of the performance of the milking robot.
It provides readouts or alarms of the herd’s performance, so I’m looking at the computer using the phone, from anywhere on the farm - or off it. “It’s a major benefit, not having to write anything down when you’re out and about on the farm, particularly if you see a cow on heat, you just punch in her ID on the phone and it goes into the system.” Mr Light said getting a handle on operating the InHerd management app is a similar process to computer learning. “I handle it myself by working out the program-
mer’s thought processes and it becomes fairly logical.” A major feature of the system is that it provides him with a diary of the day’s tasks relating to management of the herd, so it becomes easier to plan the jobs. “That’s would be excellent if you had a number of workers on the place – everybody would know what jobs are to be done, without having to write them up on a whiteboard.” At the moment the cows are just coming in to be milked twice a day; usually with robots, it is closer to 21/2 times a day.
Gippsland farmer Darryl Light can monitor and control his Lely Astronaut through a new app on his smartphone.
Mr Light said paddock management with the robotic system has been easier than he thought. “I just rotate on the two paddocks, A and B, in place of setting up an A, B and C configuration. There is plenty of grass available. “This app adds another dimension to robotic milking,” he added. “You can run your farm from anywhere in the world.” Lely Australia said the T4C InHerd Management app is a unique mobile tool for obtaining a com-
plete overview of the performance of the milking robot. With this new tool operators will be informed when it is time to replace teat liners, brushes and other parts of the milking robot. When attention or maintenance is needed, items will be marked in red. Farmers can check their cow and herd performance, act immediately and improve their farm results. If the computer senses any issues with the pro-
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grammed milking, it phones Darryl with an alarm. In fact during our visit, the phone rang with a message that the cows hadn’t been in either stall for some time. Mr Light wasn’t perturbed as they weren’t really overdue at that stage according to his own schedule. “This really makes robotic milking what it should be. I reckon it’s great.” • Our regular Working Clothes column will return next month.
DAIRY NEWS AUSTRALIA JULY 2014
MACHINERY & PRODUCTS // 33
New pasture tool in the pipeline ANDREW SWALLOW
A NOVEL pasture meter jointly developed by English and Irish entrepreneurs was unveiled on the Enterprise Ireland stand at New Zealand’s recent field
days event. The Grassometer uses four optical sensors to gauge pasture covers as the operator walks the farm. Its developers believe it is more accurate and convenient than the Platemeter or C-Dax
Four sensors triangulate readings to allow for slopes and enhance accuracy.
now sold. “The data is instantly transferred to your computer or smartphone as you walk the paddock and there’s no converting centimetres of pasture into kilogrammes of drymatter: it’s all done for you,” Sam Hoste, commercial manager of Monford Ag Systems, said. Mounted either on the leg or a probe for wielding from a farm bike, the device takes multiple triangulated-readings of pasture cover each time the foot or probe hits the turf. “There are four sensors and each one takes five measurements to give 20 readings used to give you one answer for that particular point,” explains Hoste. Answers are instantaneous and electronically recorded to build a picture of the cover as the operator crosses the paddock,
either walking or placing the probe from a farm bike. “It can actually produce your pasture wedge for you on your smartphone as you go around the farm.” The device is controlled from the user’s smartphone with data stored in the cloud enabling remote access by, say, farm shareholders or senior managers. Triangulated readings compensate for slopes and GPS positioning in the phone means every reading point is recorded. An audible ‘squelch’ on each reading is designed to reassure the user the meter is working. “If you do want to stop mid paddock and do something else you just hit pause.” But if the phone rings that doesn’t mean you have to stop doing the farm walk; calls
Loaders fit to new New Holland economy range NEW HOLLAND has released its
new TT4 economy utility tractor range, calling the economy tractor market an ever expanding segment. This range of tractors offers three models: the TT4.55, TT4.65 and TT4.75, producing engine powers from 55 to 75 hp. The TT4 is set to replace the original Series TT which was released to Australia in 2005. Since the TT’s introduction, New Holland Dealers have delivered over 2300 units, making it one of the most popular products launched in the Australian market to date. The complete range is ideally suited to a wide range of both agricultural and non-agricultural tasks, including front loader activities, hauling and PTO work. New Holland AP Plus loaders have been specially developed for the New Holland TT4 tractor range. Designed for Australian conditions, and featuring excellent visibil-
ity, their durable performance and solid construction allows operators to handle bigger tasks for longer periods. New Holland says its mechanical level lift system is the best form of operator protection against “rollback” and is designed to meet the stringent standards of the TMA Code of Practice for Supply and Manufacture of Front End Loaders. They also feature the “Cam Lock” attachment system, which secures the loader arm in place and is easily released without the use of any special tools. Designed with service access and visibility in mind the excellent visibility to the bucket is thanks to the loaders mid-mount design, narrow boom arms and small uprights. All key pivot points are fitted with heavy-duty bushes. These can all be lubricated from the side of the loader, with easy to see recessed grease points. New Holland AP Plus Series Load-
ers can be specified with a choice of Standard or 4 in 1 bucket designs. With integrated park stands and colour coded hydraulic couplers these loaders truly are a multipurpose tool. The TT4.55, TT4.65 and TT4.75 models will boast FPT Industrial’s S8000 turbocharged mechanical fuel injection engine. This 2.9 litre powerplant boasts two valves per cylinder and offers maximum torque of up to 300 Nm guaranteeing outstanding productivity for the most demanding applications. Overall vehicle efficiency is further enhanced with a 540 eco PTO speed. This enables the engine to run at a lower working speed for reduced fuel consumption. A new 12 x 12 transmission offering is standard throughout the entire range and is enhanced with the addition of the dash mounted synchronised shuttle control.
can be answered without interrupting the meterto-phone-to-cloud data transmission. If worn on the leg, a two-second calibration on a hard level surface such as concrete or bare ground is required to check the height of the meter, but if permanently fixed on a pole that calibration isn’t necessary after the first use, says Hoste. “If it’s on a pole the height off the ground isn’t going to change.” Trials at the UK’s Harper Adams University and Ireland’s Lyons research centre found a prototype model more or less matched the Platemeter and quadrat test cuts for accuracy. The Grassometer was launched in the UK and
Realtime data is fed instantly to the user’s smartphone and stored in the cloud.
Ireland at the Grass & Muck event in May. Hoste says feedback from farmers was “positive with no negative comments”. A first batch of Gras-
someters is being made and should be available in July or August. In the UK distribution is by farm supply cooperative Mole Valley Farmers. Price is €1600.
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DAIRY NEWS AUSTRALIA JULY 2014
34 // MACHINERY & PRODUCTS
Valtra helps the world overcome colour-hate HAPPILY, MUCH of the world is thetic approach to coordinating moving away from the concept of their equipment – without having discrimination based on the colour to admit it to their mates, since, surely “It was the only one in the of one’s skin. In the world of tractors how- yard”. Aside from their chameleon-like ever, colour-hate is still very much ability to blend in to in vogue. your farm fashion “If it’s red, leave it colour palate, Valin the shed” or “Coltras carry a certain lecting tractors is like degree of ‘cool’ that eating watermelons, extends beneath the you throw out the skin. green” are common This partly barbs traded amongst GRUNT derives from the those huddled in difJOHN DROPPERT innate toughness ferent corners of the borne of their design fast shrinking tractor as logging platforms, and is no manufacturer landscape. And although much of the argy- doubt helped by the standard-issue bargy is now online, woe betide the escape hatch in the roof, designed purchaser of an orange Belarus to allow a safe exit when your tracfrom the bad old days who thinks tor falls through the surface of a frozen lake. he can drink in the main bar. It’s also partly due to some of But one manufacturer has long seen through all this colour rivalry. the quirky technological features I am referring, of course, to that make for satisfying small disValtra, the Finnish manufacturer coveries when driving an earlier that allows purchasers to choose model. Partly, it’s just the fact that the colour (as well as cab style and other options) of tractors when they’re Scandinavian, which itself seems cool enough for many they order. Being common practice in car people. Valtra used to be called Valmet, purchasing, it might not be an original idea but frankly, in this context and originated from a World War II munitions factory. it’s genius. It was owned by the Finnish Virtually any partisan tractor owner can defect to the Finns, government until privatisation in without falling foul of the colour- the early 1990s, after which the jokes they have cultivated and Valmet name (derived from Valtion Metallitehdas - state metal factory) propagated for years prior. The ability to choose the colour was eventually phased out. Since 2004, Valtra has been a of a new tractor also accommodates those who have a more aes- part of the American-based AGCO
agricultural machinery behemoth; allegedly because their Sisu engine division was so impressive AGCO bought the whole company to secure it. You can draw your own conclusions, but interestingly the division has now been renamed ‘AGCOPower’, and its engines are found under the hood of many other AGCO brands including Massey Ferguson and Challenger. In many ways, the now-superseded 6000 series from the 1990s and early 2000s were the definitive Valtra models, embodying the independent uniqueness of the brand. There are many happy owners out there. I once inspected a Valtra 6400 that looked like it had been driven through a dense forest in pitch darkness, by a drunken lunatic. The nationality and professed occupa-
tion of the gentleman owner in question need not be discussed, but it’s fair to say he had a knack for finding the weak points in his equipment. The fact the dealer had the audacity to offer it for sale ‘as is’ was really a testament to how tough these machines are. Despite missing switches and smashed panels, it drove well and by all accounts the eventual buyer found it a reliable machine. If I had a knack for panel beating and hadn’t seen the now-famous Deutz-Fahr DX later that day, I probably would have bought it. • John Droppert has no mechanical qualifications whatsoever, but has been passionate about tractors since before he could talk and has operated many different makes and models in a variety of roles for both profit and fun.
Scud designed for stock yards SUCCESSFUL
ANIMAL
husbandry includes managing hygiene to maintain optimal animal health. Aussie Pumps has been able to assist farmers improve animal welfare by significantly reducing the price of a high pressure water blaster designed for farm cleanup. Called the Aussie Scud 351, this high flow blaster is designed specifically for cleaning down stock yards. It delivers flows to 21 lpm and an effective working pressure of up to 3400 psi when used with a turbo lance. This extra flow washes away animal excrement from concrete surfaces, effectively flushing the area. Prime power for the machine is a 13HP Honda GX390 industrial engine with low oil protec-
tion as standard equipment. Aussie Pumps product manager Hamish Lorenz said the company has reduced prices on its range of pressure cleaners due to the expansion of the manufacturing facility. The heart of the machine is a heavy duty “Big Berty” Bertolini triplex pump capable of developing pressures of up to 3000 psi. For the Aussie Scud 351 blaster, the pump is adjusted down to a pump pressure of only 2500 psi to allow the pump to produce extra flow. The company said this ensures efficient flushing and improved hygiene efficiency. The pump is backed by a three year manufacturer’s warranty. “The machine’s combination of high flow and high pressure means that the operator has the
The Aussie Scud high-pressure high-flow blaster has been designed specifically for cleaning down animal shelters and stock yards.
ability to both efficiently clean and flush at the same time,” Mr Lorenz said. The pump is protected by an Aussie Safety Protection (ASP) system that consists of a ther-
mal dump valve that protects the machine from overheating and a safety valve. The safety valve protects both the machine and operator from pressure spikes.
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