Dairy levy vote change PAGE 7
GENES FOR PROFIT Improving your herd PAGE 8
BACK TO BUSINESS
Jenkins returns to UDV PAGE 13 OCTOBER, 2015 ISSUE 63 // www.dairynewsaustralia.com.au
SUNBURNT COUNTRY El Nino? Climate change? Call it what you like. It’s going to be a long, hot and dry summer. PAGE 9
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DAIRY NEWS AUSTRALIA OCTOBER 2015
NEWS // 3
A locally-made Serafin Ultisow trailed disc seeder has delivered a tailored made solution for Greg Sheppard from Whitfield, in Victoria’s King Valley. Read more, p.31-32. PICTURE: CHRIS DINGLE.
Traveston travesty. PG.12
TPP deal gets over the line MADELEINE BRENNAN
THE AUSTRALIAN
Fonterra’s new 10-year venture. PG.14
Jenkins back to business. PG.19
NEWS ......................................................3-14 OPINION ....................................................18 MARKETS .......................................... 20-21 MANAGEMENT ...............................22-23 BREEDING MANAGEMENT .... 24-26 ANIMAL HEALTH ...........................27-29 MACHINERY & PRODUCTS ....................................... 31-34
DAIRY Industry Council has cautiously welcomed the successful completion of negotiations under the Trans-Pacific Partnership Agreement (TPP) announced by the Minister for Trade and Investment Andrew Robb last week. The biggest global trade deal in twenty years, representing 40% of global GDP, took more than five years to negotiate. In late July, it looked like falling over altogether. ADIC chair Noel Campbell said the deal for Australian dairy is modest, but positive. “We can feel pretty confident in saying it was an OK deal for dairy,” ADIC Noel Campbell said. Like any agreement of this size, which is negotiated behind closed doors, the devil will be in the detail which is not expected for at least
a week. However, Mr Campbell said the industry didn’t anticipate any nasty surprises. In Japan, tariffs will be eliminated on a range of cheeses covering over $100 million in existing Australian trade, and Australia will be given new preferential access for a further estimated $100 million of trade. “We’ll see improvements on our economic partnership and free trade agreement with both Japan and the US,” he said. “We’ll see an improvement in butter and skim milk powder availability and access for the Japanese market,” he said. “And the ratios of Australian cheese to Japanese cheese for blending and processing will also be lifted to 3:1 (Australia to Japan) ahead of the planned 11 year schedule.” In the US, the TPP will lift quotas on some Australian products,
transferring them out of evaporated and condensed milk in to cheese. “It’s 4500 tonnes of Cheddar and 4500 tonnes of European style cheese,” Mr Campbell said. “At the end of the day, these amounts are not huge, but it may be enough for processors to go after that market. It’s a start” Australia will also gain new preferential access into Mexico and the highly-protected Canadian market. Mr Campbell said there was a way to go before the participating countries were negotiating for a truly free market. “We’re disappointed the US hasn’t really come to the table in wanting to have free access,” he said. “The pound for pound deal (where the U.S can sell one pound in Canada and then take a pound from Australia or NZ) is a bit of a nonsense with respect to free trade.” Ratifying the deal will also require the 12
participating countries - Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam - to sign off on the deal in their respective parliaments. “There’s an understanding that if (an equivalent of) 85% of GDP of countries participating in the agreement sign off, it goes ahead. But if any one of the big players pull out, it doesn’t happen,” Mr Campbell said. Candidates in the US presidential race, including republican Donald Trump and Democrat Bernie Sanders, have publicly slammed the deal. Mr Campbell acknowledged the agreement may face similar hurdles at home, with Independent Senator Nick Xenophon labelling the deal a “dud” and the federal opposition indicating they would apply further scrutiny, especially in relation to
pharmaceuticals. He said the ADIC would review the full agreement when it became available to fully quantify the benefits for dairy but early indications show improved opportunities in key export markets. Across the ditch, Fonterra NZ chairman John Wilson says the conclusion of the TPP was a small but significant step forward for the NZ dairy sector. “TPP has been an enormous undertaking,” says Mr Wilson, returning from Atlanta. “While the dairy outcome is far from perfect, we appreciate the significant effort made by Minister (Tim) Groser and his negotiators to get some gains in market access for our farmers. “Dairy has been very hard to resolve and New Zealand has managed to get some progress against the odds. Our team has done well to lift the deal from where it stood at the ministerial meeting in Maui.”
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DAIRY NEWS AUSTRALIA OCTOBER 2015
4 // NEWS
Fodder and sugar beets a dream feed if grown right GORDON COLLIE
FODDER AND sugar
beets are shaping up to be the next big thing in grazing management, with the high yield, low cost option expected to take off in Australia as it has already in New Zealand. And warm Australian conditions up north lend themselves to even higher yields than those seen across the ditch. As the next lowest cost option to pasture, beets have become hugely popular in New Zealand over the last 10 years with an extensive research program led by Dr Jim Gibbs at Lincoln University in the South Island. With Kiwi beets grown for dairy and beef cattle surging to 40,000ha over the last
decade, the specialist expertise developed is now being exported to other countries, with beets already enjoying success from Tasmania to Western Australia and even the Northern Territory. Dr Gibbs, a former Queenslander, has closely followed trials, now in their second year, at the University of Queensland dairy research facility at Gatton campus. A large crowd of farmers keen to learn more attended a Subtropical Dairy field day at Gatton last month to inspect a trial crop which had just started break-feeding and to hear about the latest developments. He said beets had a history of more than 500 years cultivation, but had long been thought toxic to livestock. As well as developing a
system to safely transition cattle to consuming large quantities of beets, Dr Gibbs said there had been tremendous improvement in agronomy over the last five years, resulting in more consistent, heavier crop yields. New Zealand farmers in large numbers were now using beets both as a winter feed and as a lactation supplement. Dr Gibbs said the initial focus had been on strip grazing fodder beets, but a big future is emerging for harvested sugar beets which had a higher percentage of dry matter. The beets were dug out, had their tops cut off and were pushed into windrows and successfully stored in the open for several months. With big herds up to 3000 cows, walking distance to grazing
NZ fodder beet specialist Jim Gibbs (centre) with Oakey dairy farmers Darryl and Leanne Priebbenow. PHOTO: GORDON COLLIE
becomes a factor in favour of harvesting beets and bringing them to the stock. The extensive New Zealand experience in growing and feeding beets will be made available to current and prospective users who subscribe to a new internet database
currently being set up called the Fodder Beet Club. Dr Gibbs said it was crucial that cattle be transitioned to a high beet diet of up to 12kg of dry matter (DM) a day to avoid the risk of acidosis. The rate of beet feeding
should not increase by more than 1kg DM every second day with all changes to existing supplements made slowly. After 14 days, cows needed to be held steady for a week at the beet allocation and supplement levels reached, then have
their beet allocation lifted steadily until they were leaving bulbs behind, an indication they were eating to an ad lib level. “With a successful transition, the classic New Zealand dairy diet is beet and pasture – nothing else,” Dr Gibbs said.
A SLOW STARTER WITH HUGE YIELD POTENTIAL IT may be low cost and high yield, but the fodder beets are not without their challenges in getting established. Speaking at the Gatton field day, Dr Gibbs highlighted the agronomic practices necessary for establishing the vegetable crop and getting it through the first 60 days. He said precision planting to achieve the right depth and seed spacing was critical and bed preparation was important to successful establishment. Beet is not a strong germinator.
Soil moisture is important and seedlings are prone to wind damage. He said the crop lent itself to irrigation with dairy effluent. Achieving a good early canopy cover was the key to smothering out weed competition. “Once you get through the establishment phase it’s bullet proof,” he said. As a bulb crop it did not respond significantly to nitrogen. Key nutrient requirements were sodium and particularly potassium. Boron was a key trace
element. Yield expectations from trials at Gatton were that 30 tonnes plus dry matter a hectare could be achieved. This would be an advantage
of more than 30% over yields typically experienced in New Zealand. The leaf typically contained about 30% of the dry matter with a protein level around 25%. The bulb had a protein level around 10% or less and was low in fibre, but with high sugar content which needed good cow rumen function to digest. The Gatton trial crop of fodder beet was planted into a fine seed bed in April with a 50cm row spacing and a density of 77,500 plants per hectare.
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When feeding off began in September the crop was yielding about 24 tonnes/ha dry matter with 120 cows being transitioned onto strip grazing. Updates from the fodder beet crop trial on the Queensland Agriculture YouTube channel https://www.youtube.com/user/ QldAgriculture/featured Have you tried fodder or sugar beet crops yet? Share your story with Dairy News. Email editor@ dairynewsaustralia.com.au or on the Dairy News Australia Facebook page.
DAIRY NEWS AUSTRALIA OCTOBER 2015
NEWS // 5
IN BRIEF Ag counsellors for Vietnam, Malaysia and Middle East THE Federal Government has announced three new agricultural counsellor positions in Vietnam, Malaysia, and the Middle East, as well as additional counsellors in Bangkok and China. ADIC chair Noel Campbell said the counsellors will help the industry make the most of recent trade agreements as well as open up access to emerging markets.
Dr Gemma Chuck joins WestVic Dairy board THE Vet Group’s Dr Gemma Chuck has been appointed to the WestVic Dairy Board in an industry service provider role, replacing Paul Clarke. The veterinarian, and Dairy News Australia columnist, said she is looking forward to working alongside like-minded people to progress the dairy industry for a sustainable future. “My experiences in the veterinary industry and university roles have allowed me to provide extension services to dairy farmers in this region. With the WestVic Dairy team, I would like to build on these experiences to really make a difference,” Ms Chuck said. WestVic Dairy is run by a board of directors, which is made up of six farmers and two industry service providers who meet eight times per year.
WAFarmers milk heads to China
Farmers will fight to stop ripple effect of suicide FARMERS WILL help
farmers beat suicide in an innovative new digital project, funded by beyondblue through donations from the Movember foundation. The Ripple Effect, a partnership between leading rural advocacy, academic and health organisations was successful in receiving a $440,000 grant in July this year to help prevent the suicide of men in farming communities – and it has taken its next big step. “The Ripple Effect Steering Group was appointed in August, and earlier this week, during Mental Health Week, held its first ever face-to-face meeting of farmers, rural health experts and industry partners,” principal investigator Dr Susan Brumby said. Dr Brumby said The Ripple Effect “is about building a safe, online platform where farmers can feel comfortable to share their experience of suicide
– whether this be through losing someone to suicide, having thought about or attempted suicide themselves, caring for someone who has attempted suicide or been affected by suicide in some other way. “The point of the Ripple Effect is that through our online digital website, farmers can share their stories of what has helped them, learn from others and take action to make positive changes to their own health and wellbeing. “Participation in the Ripple Effect will be anonymous and will allow farmers to ask questions and share their experience with their peers either through video, written word or voice, in addition to accessing information about looking after yourself and where you can find support,” Dr Brumby said. “We understand that rural communities experience severe disadvantage when it comes to inter-
net speed and connectivity – so we will adapt our platforms to cater for this wherever possible. “We are proud to announce our steering group really does bring together representatives from the farming community who have a lived experience of suicide with some of the leading Australian experts in rural health, research and digital design. “The Ripple Effect is about farmers helping farmers. We know through our own experience, that no one tells a story about life on the land, its ups and its downs better than farmers themselves. This is why the Ripple Effect will be the first grassroots digital platform where farmers will have direct input into the content and the way in which they share their experience of suicide and mental health recovery. “We believe through a collaborative approach we can help turn the nega-
tive ripple of suicide into a positive ripple of support,” Dr Brumby said. The Ripple Effect is a partnership between, National Centre for Farmer Health, Deakin University, Sandpit, Victorian Farmers Federation, AgChatOz, Mental
Health Fellowship North Queensland and Western District Health Service • Anyone feeling distressed should call Lifeline on 13 11 14 or beyondblue on 1300 22 4636 or Suicide Call Back Service on 1300 659 467 for counselling support.
WAFARMERS has announced it will be sending its branded milk to China, along with locally-produced honey. The group has formed a partnership with the company Lifeland, owned and operated by CEO Sha Yi, who has lived in WA for a number of years. WAFarmers president Dale Park said group has worked for a long time on the China-Australia Free Trade Agreement. “This gives us the opportunity to understand the Chinese market firsthand,” Mr Park said. The first shipment of WAFarmers milk and honey is expected to leave this month.
Celebrating rural women APPLICATIONS for the 2016 Rural Women’s Award are now open. The award is open to all women involved in primary industries. State and Territory winners receive a $10,000 financial bursary to implement their award idea. Each state and territory winner will participate in leadership development opportunities such as the Australian Institute of Company Directors (AICD) course and will be supported to develop an individual integrated leadership plan. Applications close on Friday, October 30, 2015 and can be downloaded from www.rirdc.gov.au/ rural-women’s-award
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DAIRY NEWS AUSTRALIA OCTOBER 2015
6 // NEWS
Industry and farmers call for show of strength AUSTRALIAN DAIRYFARMERS
and the United Dairyfarmers of Victoria (UDV) have called for a “show of strength” against a union campaign, backed by the federal opposition, which threatens to derail the China Australia Free Trade Agreement (ChAFTA). More than 300 farmers came together at regional roadshows across the state, making a resounding call for the ChAFTA to be ratified by the end of the year. The roadshows started in Warrnambool, touring through Colac,
Timboon, Tatura, Cohuna, Leongatha and Warragul. ADF president Noel Campbell said the dairy industry needed to have its voice heard to make sure the “game changer” deal happens. The ChAFTA took 10 years to negotiate and is worth a projected $11 billion to the Australian dairy industry. Mr Campbell said there was urgency to the campaign for the deal to be signed this calendar year to ensure there is a reduction in tariffs later this year and another in January.
CHAFTA AT A GLANCE: ■
All dairy export tariffs to China would be removed within four to 11 years.
■
Will cost $800 million in tariff charges over 10 years if the deal isn’t done.
■
NZ market share has grown from 21% to 41% in 2014 on the back of an FTA.
■
Volume limitation safeguards will only apply to whole milk powder.
■
Stand to lose $76 million if the deal isn’t signed by end of 2015.
■
China is the largest importer of milk products in the world.
■
600-700 new jobs in the dairy supply chain per year.
Aus dairy market share in China has declined from 11% in 2007 to 5% now.
■
■
Imports have increased more than 45% in the past five years.
He said the first priority for farmers should be a letter and email campaign to local and ALP MPs, but taking to the streets is also on the agenda. “If needed, get on a bus and go to Melbourne and get your friends and neighbours and the whole community behind you. It’s about making a noise,” he said. “I’m not saying go into the streets and go up against the police but make sure the community knows how important it is. Delaying this trade deal means lost jobs and lost opportunities for farmers.” UDV manager Vin Delahunty said contrary to union reports, the FTA would protect jobs in regional Australia and that the union campaign was “not based on facts”, while Mr Campbell also dismissed the campaign saying Chinese companies would have to follow due process on 457 visas and first seek local labour-adding “agriculture generally does not use many workers on 457 visas”. However, he admitted the union campaign had gained traction. “It is clear this campaign has gained significant community following. I hear a lot of talk back on suburban-based radio and I’d have to say it’s probably 10 to one against the ChAFTA.
Noel Campbell speaking at the Warnambool roadshow.
“That’s being very negative for us so we’ve got to tell Victoria the real facts.” In response to a question, Mr Campbell said it was hard to say how many cents per litre (or kg/MS) more farmers would receive under the deal. However, he said there would be significant long-term benefits for the industry. “It’s a significant issue if you want the confidence to invest on your farm, and it would take some of the shock out of losses that we make at certain times.” Mr Campbell told Dairy News he was not confident the deadline could be reached in time, especially given many cross-bench senators have expressed
their opposition to the deal. “It’s really quite frustrating from an industry perspective. We would like to think it could be resolved by the end of the year, but it’s getting harder every day as we get closer to the end of the year. “We were hoping with the change of Prime Minister that we might see an opportunity for the parties to come together but so far that doesn’t appear to have happened.” He said the ADF would continue to pursue a positive result and urge the ALP and cross-benchers to put politics aside “and support something that is clearly in the nation’s best interest”.
Dairy News Australia asked some of the farmers at the ADF/UDV roadshow event in Warrnambool what the China Australia Free-Trade Agreement meant to them. “ANYTHING THAT will be of benefit to our business, you’d be mad not to support it. It shouldn’t have to come to a protest rally in Melbourne. There’s no reason why people should be against it. When it’s explained that the labour situation is going to be exactly the same as it is now, I don’t
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DAIRY NEWS AUSTRALIA OCTOBER 2015
NEWS // 7
Efficiency, cost savings at heart of proposed dairy levy poll changes FARMERS WILL spend
less time voting on their dairy levy in the wake of moves to streamline the process. Australian Dairy Farmers (ADF) is urging support from dairy levy payers for recommendations to opt for a poll only when a change in the levy is being sought. The move would save at least $750,000 but farmers would still have to vote if levy changes are being proposed. Farmers could also force a poll on any issue by bringing together at least 15% of levy payers. Other farmer groups and individual farmers told Dairy News they support the ADF’s move, though some have reservations about the 15% base for initiating a poll and questioned why it cost so much to run the polls. ADF has suggested the change, based on the recommendations of the independent Dairy Levy Poll Process Review panel, commissioned following
Dairy Australia’s 2014 annual general meeting. The panel concluded there are big cost-savings and operational efficiencies gained by making this change. “After the last poll in 2012, the clear message from Australian dairy farmers was that the efforts and funds dedicated towards the poll process could have been better spent delivering dollar value to dairy farmers,” ADF president Noel Campbell said. “It makes absolute sense, and the six-member panel recommendation was unanimous: we only vote when a change is proposed.” Mr Campbell said the panel recommendation included a “failsafe” mechanism. If farmers believe a poll is necessary, they can initiate one by bringing together a group of levy payers representing at least 15% of levy votes. This would activate a Dairy
Australia general meeting where 50% of voters would need to resolve to hold a poll. “This proposal is not about removing Dairy Australia from scrutiny. This is about a direct saving
of at least $750,000 that can instead go directly to industry benefit,” Mr Campbell said. “That’s why ADF supports it, and why we believe dairy levy payers should also
support it.” The industry must endorse to the Federal Government the changes to the levy poll, which would require amending the Dairy Produce Act and its regulations.
“That means achieving consensus, and ensuring we’ve consulted widely and well with levy payers on this matter, and also conducted a simple vote to demonstrate the merit of the proposal. This has to be
wrapped up before the end of this year.” ADF will provide farmers with the opportunity to discuss the recommendations at regional meetings over the next two months.
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CHANGES SUPPORTED AS LONG AS SAVINGS HEAD TO FARMERS SOUTH Australian dairy farmer James Stacey says he supports the cost-saving move but worries the 15% requirement for forcing a poll is excessive. “I understand why they don’t want to be doing reviews if it costs $750,000, but you’d have to ask what that $705,000 is being spent on as it seems a helluva lot of money,” Mr Stacey said. “That’s $120 per dairy farm business. How much of that is doing roadshows?” Mr Stacey is concerned that getting 15% of farmers to support a levy vote is “very unrealistic”. “At the current number that’s 900 farmers. I think there needs to be a genuine mechanism available if a section of levy payers are unhappy with the performance of the business and I think that should be closer to 5%. To get 15% of farmers on an issue is almost a political campaign in itself.” Victorian farmer and Wannon UDV president Craig Dettling said he supports the move to cut polls unless changes are planned. “It costs a bit to do,” Mr Dettling said. “We have to balance up how much it’s costing versus making sure dairy farms feel they are being consulted.” However, Mr Dettling also has concerns about securing 15% of farmers to force a vote. “That seems to be quite a lot. You only need to get 100 signatures if you want to run for a directorship,” he said.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
8 // NEWS
New project to show link between better cows and bigger profits MADELEINE BRENNAN
A FOCUS on demonstrating the link between high-merit genetics and profit will see 25 herds across Australia closely monitored over three years. The $3.3 million project brings together a world-class team of animal genomics experts in a significant collaboration of the dairy industry. Titled, ImProving Herds, the project aims to make herd decisions easier for dairy farmers by demonstrating how to use data to improve herd performance and increase farm profitability. The 25 farms, which are currently being finalised from a number of submissions, will test how
profitability is affected by focused bull selections and genomic testing of females. A further six farms will be used to test the impact of data-driven decisions on profitability. The project will be led by eminent geneticist, Associate Professor Ben Hayes, from the Victorian Department of Economic Development, Jobs, Transport and Resources (DEDJTR), who said the project’s aim was to “unequivocally” demonstrate the value of using hi-merit genetics to improve on farm profit. With only 50% of Australia’s dairy herd recorded, the project also aims to show farmers the financial benefit of taking the time to herd record. “Herd recording is
a wonderful thing for geneticists, because we get this information coming in that we can use for genetic evaluations, but we’d like to have more information coming in,” he said. However, he said it could be tough to sell the idea that farmers herd record just for the sake of scientific research. “So we want to also demonstrate the value of herd recording to profitability.” Associate-Prof. Hayes said another component of the project is to show how selection decisions can have positive environmental outcomes. “We have already seen that the selection that has gone in dairy cattle over the past 30 years has actually reduced the amount of methane that
cows produce per litre of milk,” he said. Farms participating in the project will open their books to rigorous scrutiny and this will be assessed against the genetic merit of the sires used in relation to the Australian Breeding Value’s Balanced Performance Index (BPI). The Gardiner Foundation estimates the current opportunity cost of unrealised potential gain associated with herd improvement to be $25 million in Australian farmers’ profits. Chief executive Mary Harney said: “We are pleased to enable ImProving Herds – it is an imaginative, bold and focused project which aims to lead to significant profitable growth for the
Associate Prof. Ben Hayes speaking at the launch of the project with ImProving Herd’s strategic steering committee chair Craig Lister and genomics and biotechnology researcher Dr Alison L. Van Eenennaam from the University of California. Picture: Gerard Hayes.
Australian dairy industry.” Associate-Prof. Hayes said it was critical the research translated into simple, efficient tools that allowed farmers to make quick, data-driven decisions to increase herd profitability. A new decision-making software tool is expected at the end of the three years. Project partners include
Dairy Australia, Australian Dairy Herd Improvement Scheme (ADHIS), National Herd Improvement Association of Australia (NHIA), Holstein Australia and the Victorian Government. Associate-Prof. Hayes said three things had come together to make the project possible including the improvement in the
reliability of the ABVs, a reduction in the costs associated with genomic testing, and the data used to develop the ADHIS’s Genetic Progress Report. “We just didn’t have those tools before but now we do and we can extend them,” he said. – More in Breeding Management, p.26
Scholarship opportunity will send two students across the Tasman DAIRY AUSTRALIA’S 2016 post-
graduate scholarship program for farm business management university graduates is now open to applicants. The scholarship offers two Australian students the opportunity to study a one year Postgraduate Diploma in Agriculture Commerce in New Zealand at leading dairy education campuses, Massey University or Lincoln University. Recent scholarship winner, Benjamin Vagg (pictured) from Leongatha,
Victoria said the experience of study at Massey University had taken his knowledge to another level. “I can think on a much larger scale now and not just in a farm sense, but also business direction and governance and I have a more business management frame of mind now,” Mr Vagg said. Dairy Australia’s farm business capability program manager, Neil Lane, said the scholarship is part of the industry’s fundamental commitment to
grow capability in farm business management across the sector. “The level of scholarship is significant at $30,000 for the year and recognises that candidates are making a significant personal investment by undertaking further study when options to enter the workforce or continue in a current role are strong,” he said. Mr Lane said the scholarship is an exciting opportunity for graduates to further develop skills and experience in
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farm business management “to a level that will ultimately benefit the wider Australian dairy industry.” The scholarship, first launched in 2012, was developed in collaboration with the New Zealand Centre of Excellence for Farm Business Management, which is a partnership between DairyNZ, Massey University and Lincoln University. As part of the postgraduate program, Australian students study core papers in Agribusiness Management
and Farm Business Management and can select a further two core papers that reflect their own area of interest and expertise. Applications close Friday, November 6. Visit http://www.dairyaustralia. com.au/fbm-scholarship.
DAIRY NEWS AUSTRALIA OCTOBER 2015
NEWS // 9
Poor rainfall and high temps for season ahead GORDON COLLIE & MADELEINE BRENNAN
FARMERS ACROSS
the country are gearing up for what the Bureau of Meteorology says will be a dry, hot summer. And with temperatures across the country soaring in the first week of October, and Total Fire Bans declared on some days already for part of Victoria and Tasmania, it looks like being a long one too. The Bureau of Meteorology said September rainfall was below average for most of Australia, including Tasmania and a broad swathe of the mainland extending across agricultural South Australia, nearly all of Victoria, much of New South Wales west of the ranges, through southern and western Queensland, the majority of the Northern Territory, and most of Western Australia. September rainfall for Australia was third lowest on record and was amongst the 10 driest Septembers on record for Victoria, Tasmania and Western Australia. Speaking at a dairy field day late last month, University of Southern Queensland climatologist Dave McRae told farmers the El Niño weather event, which was borderline in June, is now firmly entrenched and should peak in December. The negative influence of El Niño on parts of Austra-
lia’s weather patterns was expected to decline during April and May but may not dissipate entirely. “There is a 50:50 chance the El Niño will break next autumn, but that means there is also a distinct risk it could continue,” Mr McRae said. He said most weather forecasting models were putting anything like normal summer rain in the unlikely category. The BOM said October to December is likely to be drier than average across the southeast and northeast, with parts of central Australia likely to be wetter than average. Warmer days and nights are likely for Australia, except the northern tropics. A strong El Niño is usually associated with belowaverage winter–spring rainfall over the eastern half of Australia, with 17 of the 26 events since 1900 resulting in widespread drought for Australia. With warmer than average sea surface temperatures in the Indian Ocean, a drier month is likely Australia-wide. Across Australia’s dairy regions, many spring crops have failed to achieve the growth needed for silage. Northern Victorian farmer Andrew Hipwell told Dairy News locals were cutting their losses and making silage from
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pasture that was “only a foot high.” ADF president Noel Campbell said a lot of grain crops would now go into cereal hay. “This can be an opportunity for dairy farmers in respect to cereal hay prices, but it still indicates we’ve got an issue.” Queensland Department of Agriculture and Fisheries (QDAF) dairy specialists Ross Warren and Ray Murphy said there are several things to consider to make the best of a lean rainfall season. Mr Warren said that even in a dry year, storm events could be expected and farmers should be ready to take advantage of any opportunities presented. “Have your country ready. Be ready to apply nitrogen at rain events,” he said. “Remember in tight
seasons, cash flow is king. It could be a good time to cull some cows, taking advantage of high
beef prices and put some money in the bank.” Feed supply could be made go further with
fewer heifers while still feeding milkers well. “It you are facing a dry season, sorghum is a
better option than maize as it needs less water and is a lot more resilient,” Mr Warren said.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
10 // NEWS
If cows can burp less then they can produce more INVESTIGATIONS INTO methane at Ellin-
“So a dairy cow is equivalent to a family motor car in its greenhouse emissions and effect. “Our research has been like an insurance policy, so that if, in the future, Australian dairyfarmers are asked to reduce methane emissions from cows, they will have real options to do
bank Research Farm, Victoria, have uncovered some surprising and unexpected outcomes for milk production and animal health. Several projects measuring methane JEANETTE SEVERS emissions in dairy cows have calculated increased that. weight and milk production responses. “And our research is uncovering a subThe methane creates a loss of energy, so reducing emissions enables the energy to stantial number of practical feeding stratbe metabolised elsewhere, according to the egies, suitable for the Australian dairy industry, for reducing methane emissions. scientists involved. “If you save that energy otherwise lost “Methane is energy and a greenhouse gas, 25 times more powerful than carbon in methane emissions, you should, theoretdioxide,” said Dr Peter Moate, senior ically, be able to convert that into increased production – either body weight or milk.” research scientist at Ellinbank.
Ellinbank Research Station senior scientists Dr Joe Jacobs and Dr Peter Moate are involved in the several research projects measuring methane emissions in cows, against food source, additives, weight and milk production variations. Pictures: Jeanette Severs.
Driving methane emissons down EXPERIMENTS AT Ellinbank
The cows pictured with the various apparatus to assist research.
on 70% forage-fed cows showed methane emissions were 21.1g/kg/ dry matter (DM) intake. “I’ve measured the methane intensity of Australian milk by measuring the cows’ burps and calculating that against milk production,” Dr Moate said. “In 1980, it was 33.6g methane/ kg milk produced. Thirty years later, as the milk production of the cows has increased, it decreased to 19.9g methane/kg milk.” Dr Moate said better genetics, feeding and pastures caused the reduced measures. “So farmers are to be congratulated for their efforts, being efficient and using the benefits of scientific research,” he said. “What can Australian farmers
do to further reduce methane emissions? Well, obviously (feed additive, 3-nitrooxypropanol) NOP is one option when it becomes available. “Several others we’ve researched include fatty feed supplements – cotton seed meal, cold pressed canola, brewers grains, homily meal, grape marc. These contain a high amount of fat and feeding those to cows, you are able to decrease methane emissions by 10-25%. “But it has to be economical – we’re not advocating farmers use these unless it’s economical for them.” Dr Moate said summer, when pastures were dry, with reduced protein and fat, was an ideal time to provide these supplements. The sulphur-hexafluoride (SF6)
technique developed by Ellinbank scientists, to measure methane/kg/ DM eaten by pasture-fed cows, has been adopted in other research. A brass capsule is swallowed by the cow, where it lodges in the rumen. The SF6 is diffused as a gas through a teflon membrane on the capsule’s end, at a constant rate of 5mg/day, mixed with the methane in the cows’ rumen and expelled as burps. Burps were measured using a tube suspended over the animal’s nose which sucked the air through and into a saddle apparatus around its body. “It turns out the cows produce approximately 21g methane/kg/DM eaten; it applies to all diets where there’s more than 70% forage,” Dr Moate said.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
NEWS // 11
Heat tolerance and milk production link TEMPERATURE AND humid-
ity controlled chambers, or calorimeters (pictured right) are being used to replicate the effects on cows of a mild to moderate heat wave event. Farm records were used to identify cows that maintained milk yield figures on hot days and 48 related heifers were bought for the research project. Six cows spend four days in
the calorimeter, where oxygen intake, methane and carbon dioxide emissions and heat production are measured. The cows are fed crushed corn, crushed wheat, crushed barley and rolled barley, to identify any differences in methane emissions. Blood tests taken one week prior to entering the chamber and at day three in the chamber identified genetic changes in milk
production, insulin, glucose and non-steroidal fatty acids. Milk samples were also taken to measure feed conversion and gauge milk secretion ability of mammary glands during heat stress. The blood tests were also expounding genetic markers for feeding efficiency, heat tolerance and milk production phenotype work that can develop breeding
values and feed conversion figures for the Breeding Value Index. Dr Jacobs said identifying genetic markers for different production aspects could help identify cows that maintained milk production or body weight during hot weather. “This research should be able to standardise a temperature and humidity index, to be applied to other animals,” he said.
Calorimeter’s are being used to replicate the effects on cows of a mild to moderate heat wave event.
NOP increases production AN INTERNATIONAL team of scientists from Ellin-
bank and Penn State University, USA, discovered a feed additive included in the diet of 48 barn-stalled dairy cows reduced their methane emissions by 30%. One gram of the feed additive, 3-nitrooxypropanol (NOP), was added to the daily grain feed ration for each cow for 12 weeks. Methane emissions were measured using the SF6 technique. “Adding NOP into the daily feed reduced the cows’ emissions of methane gas by 30%,” said Dr Moate. “About 6% of the food the cow eats is converted to methane gas, which is wasted food and energy. “Considering cows burp about 600 litres of methane daily, if you save the energy it has to go somewhere – we expected it to go into milk or milk fat. “The cows given NOP captured the energy and converted it into increased body weight by one kilogram per week, indicating more energy was available for the cow when methane production is reduced. Importantly, there was no reduction in milk production or composition.” Dr Moate has applied for approval to conduct the NOP research on Australian dairy cows grazing pasture, to determine if the methane inhibiting effect was similar. “No other feed additive has had such a big effect on methane, using such a small amount. So there is a real possibility to add that to feed of cows,” he said.
PASTURE
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sions reduced by 35%. “Wheat feeding is a standard on many Australian dairy farms and it’s likely the amount of methane being produced by those cows is less than we previously thought,” Dr Moate said. Further research about wheat’s anti-methane effect is being undertaken.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
12 // NEWS
Traveston Dam shatters dreams GORDON COLLIE
SINCE HE was a child,
John Cochrane dreamed of owning a particularly choice block of dairy farming country tucked into a horseshoe of the mighty Mary River outside Gympie in Queensland. “I remember first seeing the place when I was 11 years old travelling with my grandfather. It stayed in my head,” he said. ‘It was 350 acres and every square inch was floodplain.” From fourth generation dairying stock, John started his working life as a butcher, but always had a burning ambition to milk cows for a living. “I was determined. But the only way in was to start small, so I leased my first
farm near Gympie with 32 cows,” John said. He built a financial base, buying and trading up land and was on his 17th property when the opportunity came up in 1994 to snare the place he had long coveted. “It was $1.5 million. I wanted it so badly I sold all my other properties and borrowed every cent I could. I was so exposed – you’d never do it today,” John said. He and wife Margaret set about developing the property and building their future in dairying. Cow numbers were ramped up to a peak of more than 1100 and a new million-dollar rotary was about to be commissioned when they got the devastating news that their property was to disappear underwater.
state of contraction John but the government set With severe drought found business was soon about acquiring a lot of gripping south east land and we had no choice, booming. Queensland, the State “I saw a hole in the as the bank’s security was Government in 2007 marketing of dairy cows going under water.” announced plans to build Operating the farm on a – to match them to the the Traveston Dam. leaseback basis, they found right property. It was sad The controversial doing a sale, dam in the lower Mary catchment “We didn’t want to sell, but but there was pleasure in would be big and the government set about achieving a shallow, drowning acquiring a lot of land and successful thousands of we had no choice, as the outcome,” he hectares of said. productive river bank’s security was going They were flats. A storm under water.” still leasing of community their farm, protest appeared not entirely convinced their lives in a holding to be to no avail. the dam would actually pattern. “We never saw it happen. John had always been coming,” John said. “It was such a stupid “We were just finishing off interested in auctioneering idea locating a big dam so the decision was made the yards ready to move to diversify into real estate, here. There were just so into the new dairy when many issues.” conducting livestock and the dam was announced While the State as an election project. The clearing sales and opening dam wall was to be just five a café-restaurant in nearby Government would not concede it had made a Gympie. farms further down the mistake, the decision was Ironically, with the valley. taken out of its hands “We didn’t want to sell, state’s dairy industry in a
John Cochrane. PICTURE: GORDON COLLIE.
when Federal Minister at the time Peter Garrett announced in 2011 that the mega project would be scrapped on environmental grounds. John and Margaret are taking the opportunity to buy back their property from the government, but the long-running dam saga compounded by the collapse in prices to unprofitable levels has left the region deeply scarred. The landscape of the Mary Valley has been plagued by years of uncertainty. John said that of 26 dairies affected by Traveston dam plan, only five were still in business. The couple have contracted out the milking of about 600 cows on a lower-cost farming system based on kikuyu pastures and sod seeded ryegrass
with corn silage. Their herd is predominantly Friesian, but their son Kelvin has taken on the breeding of pedigree cattle with his own stud property at nearby Dagan. “The potential is there to double production again with a focus on more intensive feeding,” John said. “But we basically need another market for our product for that to happen.” He thinks that milk prices would need to improve at least 10 cents a litre to justify capital spending and lift production. “It might happen one day. Queensland is short 100 million litres of milk a year with product shipped from interstate – something has to give at some point,” John said.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
NEWS // 13
Jenkins returns to UDV role and UDV members into the future. Newly-elected vicepresident John Versteden UNITED said: “We are fortunate DAIRYFARMERS to have a person of of Victoria president Adam’s qualities and Adam Jenkins is “back ability leading the UDV to business” after a and I look forward to failed bid to run for state supporting him for parliament. the remainder of his Mr Jenkins (pictured) stood down from his UDV presidency. “Adam will be judged role after nominating by members at the 2016 for Liberal Party preUDV Conference where selection for the seat of his current term expires Polwarth. and I am sure he will He was later endorsed receive a very positive by the UDV Central result,” Mr Versteden Council to return to the added. top job after the Liberals There is no instead selected Colac constitutional businessman Richard Riordan as their candidate impediment to Mr Jenkins resuming his for Polwarth. role. However, he has Mr Jenkins said he returned with a new welcomed Mrs Britnell’s deputy after former UDV pre-selection but didn’t vice-president Roma want to elaborate on his Britnell won Liberal bid or whether he would pre-selection for the consider nominating neighbouring seat of again in the future. South West Coast. Mrs “It’s not worth Britnell “It’s been talking about,” he had also said. stood a good “I’m very down from process but committed at her UDV the UDV at the role during it’s back to business moment. It’s been the prea good process selection now.” but it’s back to process business now.” and later resigned from He added that he the position. was pleased fellow Mr Jenkins was dairyfarmer Mrs Britnell reluctant to discuss his pre-selection nomination was chosen as the Liberal candidate for the safe but said it was good for conservative seat of South dairy and agriculture West Coast. that farmers were “It’s excellent that willing to represent rural Roma was pre-selected,” communities. Mr Jenkins said. “There “It’s great from whatever side of politics if are not many voices for people are willing to stick rural areas and if elected she would be only one their hand up to show leadership and take it to a of not even a handful of farmers in parliament.” higher level,” he said. Mr Jenkins said his “That should be encouraged, particularly if first priority in returning you’re going to stick your to the UDV role was to make sure the China hand up for agriculture Australia FTA is ratified and represent regional before the end of the year. Victoria. I think that’s a “We have to get good thing.” our communities The UDV Council to understand the said it was united in the implications of not view that Mr Jenkins has signing it,” he said. performed exceptionally Nearly 300 people in the seven months he attended VFF/UDV has been in the role as forums across Victoria president and strongly about the FTA. believe that he remains “Everyone was willing the best person to and able to help and talk represent the industry RICK BAYNE
to their communities about what that access will mean,” Mr Jenkins said. He said the UDV and VFF would consider their next course of action in
mid-October. “We need to wait and see. If it doesn’t look like getting signed this year, we will take it further if we need to.”
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DAIRY NEWS AUSTRALIA OCTOBER 2015
14 // NEWS
Fonterra opens new Cobden facility FONTERRA AUSTRALIA’S state-of-theart beverages plant was officially launched last month by Victorian Minister for Agriculture and Regional Development Jaala Pulford in Cobden. The beverages plant will provide Woolworths Select milk across Victoria for the next 10 years. Director Judith Swales said the new multi-million dollar plant expands Fonterra’s existing facility, creating around 50 new jobs. “Australia is a strategic market for Fonterra and our Australian milk pool is the Co-op’s largest milk pool outside of New Zealand. Combined, this makes us the largest dairy exporter in the world,” Ms Swales said. The plant will process and deliver around 115,000 bottles of fresh milk for Woolworths’ Victorian customers every day.
There were plenty of smiles at the launch including Fonterra MD Judith Swales (second left), Victorian Minister for Agriculture Jaala Pulford (centre) and Woolworth’s Ewan Shearer (second right).
10 YEAR DEAL BOOSTS CONFIDENCE FONTERRA SUPPLIERS Peter and Nicole Delahunty milk 250 Holstein-Fresians on about 162 ha on the volcanic soils at Alvi, about 60km from Cobden. Mr Delahunty, who has supplied Fonterra for about 10 years, said he produced around 2 million litres a year, of which 1.3 million is contracted. Average contracts are two to three years, the company said. Mr Delahunty said while
he had always felt confident in the dairy industry despite its ups and downs, the new Woolworths deal helped “flatten out” some of that volatility. “For me being able to get a contract like I’ve been able to with Fonterra gives me some security in what I’m doing,” Mr Delahunty said (NB: Please keep style here to Mr Delahunty). “There’s costs around
producing milk out of season, so being able to contract part of that s a great help to my business and allows me to plan what I’m doing into the future, and hopefully I can grow the business a little bit more,” he said. Mr Delahunty, who will have been dairying for 40 years next year, said he already invested heavily in irrigation systems on farm, to meet the demands of guaranteeing year round milk.
“It’s really your minimum month by twelve,” he said. Mr Delahunty said he was confident he would continue to supply Fonterra for the next ten years, and hopefully beyond. “We pride ourself that we produce milk of a high quality, year round,” he said. “I’d be happy for anyone from Woolworths to come on farm and see where there milk is coming from.”
Australia’s largest dairy up for grabs AUSTRALIA’S LARGEST dairy
farm could change hands before Christmas. The Van Diemen’s Land Company (VDL) in Tasmania, owned by the New Plymouth District Council, is talking to potential investors, as confirmed by VDL governor Keith Sutton. “VDL is dealing with a number of parties looking to invest in the company,” he told Dairy News. “VDL expects an outcome to be announced well before Christmas.” The farms are owned through New Plymouth council’s Perpetual Invest-
ment Fund (PIF), which gradually increased its ownership in the farms to a majority holding over a number of years. The council’s PIF was created from the $259m sale of the council’s shares in lines company Powerco in 2004. Established in 1825, VDL is located in the picturesque northwest of Tasmania, where it owns and operates 25 dairy farms, a dairy support unit and a standalone heifer rearing operation. Including replacements VDL runs about 30,000 dairy livestock.
Keith Sutton
VDL is one of Australia’s oldest companies, established in London in 1824 by 11 men closely connected with the English wool trade and textile industry. VDL became part of the New Zealand publicly listed company Tasman Agriculture Ltd in 1993. This went into voluntary liquidation on October 31, 2001, following a restructuring of its New Zealand Farms, and its shareholders received one share in Tasman Farms Ltd for every share held in TasAg by way of an in-specie distribution.
In June 2004 VDL bought all the shares in Tasman Farmdale Ltd, which owned land in the Circular Head region of northwest Tasmania. Tasman Farms Ltd, an NZ company, is the majority shareholder in VDL, owning 98.42% of shares on issue. In late 2007 the New Plymouth District Council (NPDC) bid to buy Tasman Farms Ltd. In February 2008 this bid was finalised, the NPDC buying 74.33% of Tasman Farms Ltd. NPDC has since increased its shareholding to 100%.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
AROUND THE REGIONS // 15
Gippsland Korumburra Show another sky high success IF YOU weren’t lucky enough to get to this year’s
South Gippsland Dairy Expo in Korumburra, this area shot (right) gives you a pretty good view of the event. Peter Notman, from Notman Seeds, captured the expo from above with the company’s drone. “We had a great couple of days, with plenty of farmers onsite to speak about their preparation for the upcoming spring and summer seasons,” Peter said. You can also see video of the drone’s footage at https://www.youtube.com/ watch?v=IGB4VRaihHs. And as you can see from our selection of snapshots, Peter wasn’t the only one enjoying himself at this year’s expo. Siblings Ryan, 3, Lara, 7 and Kelsey, 5 from Leongatha South thought it was great fun to ‘drive’ a tractor. ls at ying with the anima Zavier, 2, enjoyed pla t. ten ’s eed ckf Sto d the Rei
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Julie Henshaw, Faye Loughridge, Charelle Mackin and Wendy Nieuwerth from Poowong Pre-School volunteered in the kitchen.
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Richard Roew, Rotart et Hydraulics, Wonthaggi with retired dairy farmer Graeme Mabin, Wonth aggi, and Murray Goulburn field services officer Joanne Duffy, Leonga tha.
Melissa Burton, Brown’s Fertiliser’s agronomist Cope, Fish Creek, from Koo Wee Rup, with Jenny gatha. and agronomist Sally Pate, Leon
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Graham’s Seeds ma naging director Frank Templeton, Yar ragon, with Peter Armstrong, Darnum, and Graham’s Seeds agronomist Nic ole Frost.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
16 // AROUND THE REGIONS
Dairy the lifeblood of Stanhope MADELEINE BRENNAN
IF YOU were one of the few cynical
people who thought the Legendairy Capital of Australia campaign didn’t really mean anything, you clearly haven’t been to Stanhope. When Dairy News spoke to local dairy farmer Andrew Hipwell nearly three weeks after the town was named Australia’s first Legendairy capital, he said the town was still abuzz. “People are still very excited, they haven’t stopped talking about it,” Mr Hipwell said. “You see the elderly people with smiles on their faces at the moment, walking around town and yelling out, you know, how great it is.” The small town in the Murray Dairy region, home to just 490 people, is the first to hold the title which has been awarded as part of Dairy Australia’s search for the nation’s most vibrant and resilient dairying communities. Mr Hipwell said the Legendairy cam-
Stanhope Auskickers ahead of their big introduction at the VFL Grand Final.
paign had really helped put the town on the map. “There’s nothing pretty about us,” he said. “We’re just in the middle of northern Victoria on a small bit of flat ground, but people are starting to see what we do and who we are.”
In a piece of fortuitous timing, the town’s junior Auskickers got an opportunity to be part of the half time activities at the VFL Grand Final at Etihad Stadium in Melbourne. “When they ran on to the ground in their maroon and gold they were intro-
Stanhope dairy farmer Noel Gray and his dog Archie.
duced as the Legendairy Capital of Australia, and it was just unbelievable for our kids.” The town will officially celebrate the win with a whole-of-town party on November 12. In the meantime, Mr Hipwell said people were marking the achievement in a variety of ways. “One local fertiliser business is going to put aside a corner of their site at the Elmore Field Days to showcase that Stanhope is the Legendairy capital, and the local postmaster is going to design a post mark. “These are the sort of things the locals are coming up with off their own bat to celebrate it.” He said Stanhope was a really special community and the town was closeknit and very resilient. “The majority of dairy farmers are optimistic; times have been tough but the good times aren’t far away again and our farmers believe that. “ You listen to reports about China buying soon, I mean, water is a big issue around here, the weather, we haven’t had much rain, but local farmers
Andrew Hipwell
around here roll with the times, when times are tough you just get together, and when the good times are there you make the most of them.” Sport plays an important part in keeping the town together, which means the $2500 in prizemoney will be used to build a playground at the local reserve. “To be able to build a decent playground it will just bring more families to the footy and to local sport, and it will be just fantastic.” He said it couldn’t be underestimated the role the dairy industry – and its farmers – played in sustaining Stanhope. “If it wasn’t for dairy, we wouldn’t have a town,” he said. More than 100 nominations were received in the quest to become Australia’s Legendairy capital. A new search will begin in 2017.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
AROUND THE REGIONS // 17
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TAFESA IS offering a short course on artificially
are eligible to access low interest loans as part of the Tasmanian Government’s Agrigrowth Loan Scheme. The scheme supports projects that advance the government’s Agrivision 2050 plan, which aims to increase the value of the
agriculture and agri-food sectors in businesses, from a loan pool of $10 million. For more information, including program guidelines, call Business Tasmania on 1800 440 026 or visit /stategrowth. tas.gov.au/home/grants_ and_funding/grants_and_
Sub Tropical Field day precedes AGM SUBTROPICAL DAIRY is holding its annual general
meeting on November 10 at the Invercauld House Convention Centre in Lismore (NSW) from 4-6pm. All of the industry is welcome to attend and stay for dinner after the meeting. Preceding the meeting, delegates are invited to the Northern Rivers Resource Efficiency Focus Farm Open Day from 12-3pm, looking at what has changed on the farm almost a year on. Email Brad Granzin (brad@dairyinfo.biz) by Friday, October 31.
Western Australia Free networking event for youth AGCONNECTWA IS
heading to Broome to host a free networking event that will give young, passionate people in agriculture the opportunity to meet likeminded individuals. The networking event is the first of its kind for AgConnectWA, a group dedicated to connecting, representing
and providing support for young people throughout the agricultural industry. The sundowner will be held on Friday, October 23, at Matso’s Brewery in conjunction with Northern Beef Futures. The event is free but registrations are essential and can be directed to agconnectwa@gmail.com by October 19.
Free employment basics webinar WESTVIC DAIRY will host a free webinar on Wednesday, October 28 on finding the right employees to suit your business needs. The ‘Employment Series’ session, sponsored by DairyNSW, will provide information on recruitment, including how to ensure you have the appropriate employment classification for your employee and what needs to be considered when writing job descriptions. The one-hour session, presented by Karen Hart, will start at 12 noon. RSVP at www2.redbackconferencing. com.au/Dairy-NSW-28th-Oct-2015
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inseminating livestock for DIY inseminators from October 19. The four-day course includes a mix of theory and practical delivery and covers heat detection, preparation, handling, insemination and record keeping. Cost is $650. The course will be hosted on farm at Donovan’s Dairy, Mt Gambier. Pre-enrolment is essential. Contact Glenda Smith at TAFESA on (08) 8762 8304 to register.
NSW THE DAIRY NSW annual general meeting will be held via teleconference on October 13, 2015. To dial into the teleconference, use the Dairy NSW service number: 1800 062 923. Listen to the automated voice prompt and then key-in the Guest Passcode number followed by the #key: 776057842015# At this meeting, three Dairy NSW board directors’ terms expire this year - two skills based and one farmer director. The Dairy NSW directors meet alternate months with two of their meetings coinciding with the Dairy NSW Members’ Council.
DAIRY NEWS AUSTRALIA OCTOBER 2015
18 // OPINION RUMINATING
EDITORIAL
Turnbull government must deliver quick wins
MILKING IT... Robots finding their place
NZ eyes ‘dairy tourism’
Time for a name Fat is back change? CONSUMERS are returning
IF YOU thought robotic dairies were the stuff of science fiction - or at least something that seemed too expensive to become the norm - think again. According to the NSW Department of Primary Industries there are 34 robotic milking farms in Australia (with at least another seven being installed) representing a total of 136 robots milking around 9,250 cows and producing almost 50 million litres of milk per year. The average AMS farm has 270 cows milked through four robots, with some farms having up to eight. The AMS operate across a range of farming system types (grazing 82%) feedlot/corral systems (6%) and indoor housed systems (12%) and in every dairy state in Australia. Sadly, many of us may still only have the capital for a floor cleaning robot ‘As seen on TV’ for now.
LOOK out Gandalf there’s a new threat to your tourism mantle: dairy tourism. But it’s not the farm-stay, cheese and vino kind that you might imagine. With a schmick new infant formula manufacturing plant set to officially open in November in Pokeno, north Waikato, Yashili’s Terry Norwood has suggested tours of the plant might draw Asian visitors to the area. “Chinese tourists know the Yashili brand; they will use social media to highlight their factory visits and promote New Zealand,” Mr Norwood said. There’s no doubt the $220 million plant -the company’s first outside of China - is impressive, but Dairy News Australia can’t help but wonder if it’s a little bit of wishful thinking that the facility might be a genuine tourist drawcard. Maybe Peter Jackson could include the facility in his next movie?
A RECENT study published in Science shows that people who grow up on farms – especially dairy farms – have fewer allergy and asthma problems than others. Researchers report they were able to pinpoint one possible mechanism for the allergy protection in mice they studied. The research is related to something called the hygiene hypothesis, where a lack of exposure to microbes as a child leads to more allergy and asthma. There’s increasing evidence that farms have the best germs for preventing respiratory problems and allergic reactions later in life. It does make you wonder then, why they call it hay fever?
Advertising Chris Dingle chris@dairynewsaustralia.com.au
to full fat milk according to the latest Dairy Australia milk sales figures. On a YTD basis, full cream milk sales increased by 4%, while reduced fat and no fat dropped 4.7% and 6.8% respectively, compared to the same period last year. Dairy Australia says the trend reflects a consumer shift toward more natural foods, as well as research that shows fat within a balanced diet is not the enemy we once all thought it was when it comes to weight gain and health. If these figures are any sign, consumers are obviously letting their taste buds do the talking.
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IN MAY this year, then Communications Minister Malcolm Turnbull posed for this picture (right) in the ‘Power Issue’ of GQ Magazine. It was an audacious move that, despite his protestations at the time, spoke clearly (again) of his intentions to one day be Prime Minister. Since the last issue of Dairy News, Turnbull, and his internal supporters, have executed a cold, calculated and bloodless coup to remove yet another sitting Prime Minister from office; a move which he has since described as “nothing personal. It’s business”. To the Liberal Party’s (and Tony Abbott’s) credit, the event seems to have so far been pulled off without much of the ruthless sniping that tainted the Rudd-Gillard era. The nation, aided by a media which seems at present to be quite charmed by the new PM, appears ready to move on. The reason for that also lies in the glaring reality that Australia is in desperate need of leadership. It needs a clear run of stable and functional governance that would enable sound policy and economic reform to be debated, scrutinised and then implemented. For longer than one political cycle. In toppling Abbott, Turnbull revealed himself to be cunning. What we need now is for him to be shrewd. The early signs are promising, as they often can be when a new leader comes to power. The decision to transfer the water portfolio to Deputy Nationals Leader Barnaby Joyce in agriculture may have been politically expedient but it also should bode well for the sensible execution of the Murray Darling Basin Plan. On September 23, the Prime Minister challenged Bill Shorten to put forward a “concrete proposal” for a political compromise on the China Australia Free Trade Agreement. We can only hope for the sake of the future of the dairy industry that they, or their advisors, have been in lock down ever since, thrashing out a solution. There are so many priorities for the new Prime Minister: reform of the tax and workplace relations systems, driving investment in regional and rural infrastructure, boosting youth unemployment, aiding growth and sustainability in Australia’s agriculture sector, tackling domestic violence – and that’s just the shortlist. Whether we watch the course of the Turnbull government play out with amazement, bewilderment, anger or a strange combination of all three, one thing is for certain: Australia, regional, rural and metropolitan alike, cannot afford for it to fail.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
WORLD NEWS // 19
West African markets beckons Arla Foods EUROPEAN DAIRY
co-op Arla recently signed two new joint ventures in Africa as part of its expansion plan on the continent. Two strong local partners, Tolaram in Nigeria and Attieh Group in Senegal, will provide the distribution backbone that will help Arla grow and develop its business in West Africa, the co-op says. The move is part of Arla’s strategy to develop new markets outside the EU to make more money from its farmer-owners’ milk. Arla’s ambition in subSaharan Africa is to grow its annual revenue from $158 million to $800m in 2020. “This is to be achieved initially through sales of powdered milk and liquid milk, which is in high demand among the rapidly growing middle class in and around the big cities, and eventually also butter and cheese,” it says. Steen Hadsbjerg, head of the business region in sub-Saharan Africa, says wealthier families are increasingly demanding
safe and affordable nutrition. He says West Africa faces a milk deficit, which Arla will fill with milk powder and other dairy products. “We are here to build a long-term business, and that requires strong local partners. We [will have] two experienced partners in Senegal and Nigeria,” says Mr Hadsbjerg. Arla’s powdered milk products in Africa are sold under the Arla Dano brand. “In Nigeria Arla now has annual revenue of $140m but so far it has been based on various distribution agreements. Now, by placing all its business in the new joint venture company with Tolaram Group, Arla expects to grow its revenue by 2020. “Nigeria is one of the biggest markets for dairy products in Africa,” says Mr Hadsbjerg. “For Arla to succeed in Africa we must succeed in Nigeria. The population is growing at 2-3% per year, and people are young, ambitious and increasingly well educated. “This makes Nigeria a
perfect market for Arla’s Africa strategy, and we expect the new joint venture to start selling in well.” The venture in Nigeria
will be called TG Arla Dairy Products LFTZ Entreprise, owned 50% by Arla Foods and 50% by Tolaram Group. The company will handle
packaging, marketing, sales and distribution of Arla products in Nigeria. Mads Burmester has been appointed managing director.
STARTING UP IN SENEGAL ARLA DOES not now sell any product in Senegal, but by forming a joint venture company with the Attieh Group, the co-op expects to build annual revenue of $56m by 2020. The new joint venture company in Senegal is called Arla Senegal S.A. and is owned 75% by Arla Foods and 25% by Attieh Group. The joint venture will handle packaging, marketing, sales and distribution of Arla products in Senegal, and is expected to be operational before the end of this year.
Kick Off 2016 with Australia’s Dairy & Farm Machinery Field Days
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See www.internationaldairyweek.com.au for booking forms; call Robyn on 0418 656 082 or email info@internationaldairyweek.com.au.
DAIRY NEWS AUSTRALIA OCTOBER 2015
20 // MARKETS
Positive signs but fundamentals still haunt the market Dairy NewS aUSTraLia june, 2012
agribusiness // 17
Export demand remains strong
IMPROVED MARKET
sentiment has seen dairy commodity prices rise cents/litre in March (AUD 41c/L) to 28 With season 2011/12 only a few incremental change in milk production (year-on-year) Euro cents/litre (AUD 36c/L) in April. ending, attention is now fromweeks theirfrom recent extreme Profit margins are under pressure in the focused on 2012/13 milk prices as farmlows. US, and in NZ Fonterra has announced ers consider strategies for the coming Factors the final payout for the 2011/12 season year. Insuch someasdomestically-focused a deteriorating milk contracts incorhas been cut from NZ$6.75-$6.85/kg MS regions, renegotiated gLobaL impacT to NZ$6.45-$6.55/kg MS (AUD$4.96porating lower prices production outlook forand reduced ‘tier JohN DropperT $5.04). one’ access are undermining farmer New Zealand and reduced Effectively, global dairy markets are confidence and supply stability. For GLOBAL IMPACT Global Dairy Tradein(GDT) rebalancing. Lower prices will both private label contracts and promany farmers export-oriented Shifts inAMY BELLHOUSE slow production growth and stimulate a lower price outlook relative to cessor rationalisation have seen milk offerregions, volumes have helped demand, and as this occurs we will ultithe current season not only adds to the companies adjust their intake requireto drive this, but it remains mately see a price recovery. Key factors challenges of doing business, but seems ments and pricing to meet the changyear. Australia is among the in New Zealand; a factor to betoseen whether supply to watch on the global scene will be the contradict the positive medium term ing demands of a highly pressured retail major exporting regions and demand rebalance rate at which milk production overseas marketplace. Lower contractexpected prices and to contribute to a outlook ofwill Asia-driven dairy demand slows in response to lower prices, the alternative supply opportunigrowth. fall in production over the in whicha lack milkofproduction to the extent required for impact of the current financial worries those in south-east Asia and the Middle flows. 2012 milk production in the US ties present challenges in a market with Dairy Australia’s indicative outlook 2015/16 season, following continues to expand. prices to match or exceed for southern farm gate milk prices – limited manufacturing capacity. Despite is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of twodomesrecord-breaking years. Afterthese solid growththe underlying ‘average’ levels in the short April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value challenges, published in the recent Dairy 2012: SitThe bulkdata of the decline 2014/15, Dairywith steady per-capto medium term. suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. tic market is stable, uation and Outlook report, is of for3.8% an in Demand for exported dairy prodMarch 2012 quota year up ever, the surge in supply has outpaced ita dairy consumption a growing opening in price range of $4.05-$4.40/kg expectedfinished to be inthethe Australia’s overall forecast and is Growth milk ucts remains a positive and will conMS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. second half, as per-cow is for a 2% increase in production has largely This situation has seen the scales tinue to grow with the middle class in between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish falls on slowing national production forfollowingproduction defied theconsiders dramaticthefalls season up 10% on last year - a huge tip in favour of buyers in dairy mar- large emerging markets such as China, In the seasons the 2008 this report wider market picpasture 2015/16,financial with a range of subsequent in dairy prices marketand influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing crisis and com-growth ture commodity and summarises the many factors is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction play; the key theme reducedinsupplementary 9.8sitto 10modity billionprice litresrecovery, farmers overatthe past year andof the current uation being that of re-balancing in the export-oriented regions have seen solid ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Locally, feeding to cope with tighter considered likely. a half, and whilst it has global supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a dairy supply chain. margins. there are slowedIninregions many regions, competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perof Australia focused Though on higher-cost have subsequently been reduced in capita consumption. Whilst the dairy America. ern Hemisphere amongst those expandproducing drinking milk, many farmers Growthing in South European wide regional variations, the wholesale adjustment Despite outputpositive, as their margins milk increased. faceto a re-balancing market in themargins form ing production in wider economic uncer- most exporting regions. The average market is currently a challenging place remain needed balance market basicDairy farm gate price for milk in France to be a seller, all signs indicate that balresilient of renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained Source: Global Trade info. the months since the fundamentals still appears if significantly tighter, for and reduced access to ‘tier one’ supply. ditions have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. elimination of quotas most farmers, allowing some way off. has fallen short of some Australia’s second largest encouraging production At the same time, while them to maintain or global markets. market for dairy, grew incrementally grow output. of the more ambitious expansion. global demand continues Despite recent marginprojections, but remains a strongly in the 12 months Culling is reportedly Milk production in to grow, the pace has related unrest, production major factor weighing on to June, and many Southtracking at high levels the key South American slowed since earlier in the increased by over 400 east Asian countries exporting countries has million litres year-onaustraLian DairY, ASEAN-Australia-New continue to take advantage again dipped below yearyear in the six months to rice and wine exporters to Zealand FTA (AANZFTA). of depressed global prices June, roughly half the total ago levels, though recent “Protectionist sentiMalaysia are the biggest to stock up on dairy moves to focus on sales growth across the world’s ment over agricultural winners in a free trade goods is rife and growagreement (FTA) signed products. to Russia and China have four major exporting ing across the globe, so to provide portion pack between the two counaustraLian FooD However, buyers in augmented a largely regions. in this context it is pleas(200-330ml) configuratries last month. company Freedom Foods markets regional focus date. The removal of milk ing Australia has managed tion some for beverage prod-(such as the The deal, signed after Group Ltd is toto build a to forge an agreement seven years of negotianew milk processing Subdued demandplant ucts.Middle East) now have production quotas (and with Malaysia that has The NSW location willneeds tions, allows a liberalised cash in on growing their immediate inventory subsequent supply growth) andtopersistent dealt with some sensiprovide access to the most licensing arrangement demand in Asia. covered, causing the pace issuesThe saw total global has coincided with the tive agricultural issues for Australian liquid milk plant, to be built in sustainable and economic of of imports to moderate. exports to Greater closure of the Russian not effectively covered by milk. Pactum has exporters and allows southeast Australia,China will be source AANZFTA,” says Fraser. to theaccess Austraaccess for higher value first Market fallthe 17% inAustralian volume greenterms strong links market, with the result Sealing the deal: Malaysian trade minister Mustapha Mohamed “While under the industryhave and will retail products. fields in lian dairy prospects benefited in the 12expansion monthsintoUHT June, that exporters with Australian counterpart Craig Emerson after signing theEuropean deal. AANZFTA agreement expand its arrangements It guarantees Aus10 years. from an historic whilst Russia has also seen have been competing hard most of Australian agriwith dairy farmers for period tralian wine exporters Freedom’s wholly of of increased trade plummetPactum (down supply in traditionally ‘Oceaniabut also through technical volumes Despite the compleers through streamlining culture’s key interests milk. The new the best tariff treatment owned subsidiary or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, plantliberalisation will increase scope Malaysia gives any counAustralia will run the over the past 76%). In Russia’s case, dominated’ markets such much remains to be done border’ restrictions.” dairy and rice are two sec- laration processes and try. It also allows open Some of its products for Australian milk supply few years. theplant. embargo on major as South-east Asia. The FTA was signed on for Australia’s farmers to improved marketing – value-added, sustainable access arrangements from tors where incremental will be sold in Australia. Most recently, the (western) exporters Strong Maydomestic 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improvefocused. 2023 for Australian rice The company says will and export Transthe Pacific Partnership likely persist as late as 2018, Initially demandbyfor butterfat and Australia’s Trade and of the Asian region and commodities. ments have been negotiplant will with all tariffs eliminated given Asian consumCompetiveness The Malaysian market beyond. ated under the Malaysian produce 250ml and(TPP) 1L by 2026. ers’ risingto incomes and Agreement was according local sources, a firm cheese marketMinishave ter Craig Emerson and his He says the NFF will is worth about A$1 bilUHT packs from a process The National Farmers’ FTA. improving diets, demand concluded on October 5. greatly restricting demand seen exports fall sharply Malaysian counterpart now throw its attention lion in Australia agricul“This trade deal was line capable of 100 milFederation says the trade there will grow for qualThe Australian from the world’s year-on-year, helped Mustapaand Mohamed. towards ensuring agricultural exports – including also particularly imporlion L. The processing and Dairy deal will improve interity dairy productshitherto from Emerson says ture remains front and being its fourth-largest tant for sectors such plantCouncil will emit (ADIC) national market access low-cost production Industry second largest singlebases packaging to largely insulate theAustralia US will be asfrom well-positioned centre in completeddairy FTAs industry sugar export market and less carbon, use less water, the for Australian agricultural as dairy that have been such asdairy Australia, whose has acknowledged country market. global in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disand be more energy-effigoods. milk is well regarded. completion of negotiations OnThe a brighter note, price movements in recent as Malaysia’s closest tradChina and Indonesia as market. advantage in Malaysia cient than equivalent “After seven years of new plant will delivering modest but global tomeet Japan, UHTasfacilities months,ingwith margins still partners in ASEAN, With an annual economic immediate priorities. compared with New Zeain Austranegotiation, the NFF is allowexports Pactum to
Malaysia FTA benefits dairy Freedom
Foods plant targets Asia
under no illusion of how challenging it has been to complete this FTA with Malaysia,” NFF vice president Duncan Fraser says. The FTA will fill a number of gaps within the
land which already has a completed FTA with Malaysia in place.” The FTA also signals some administrative benefits for Australian agricultural export-
growth at about 5%, Malaysia forms an important part of the ‘Asian Century’ story and the opportunity this presents for Australian agricultural producers, says Fraser.
“These are all markets with enormous growth opportunities and where significant barriers to trade in agriculture still exist, not only through tariffs that restrict trade
and in some cases better. The FTA will guarantee tariff-free entry for 97.6% of current goods exports from Australia once it enters into force. This will rise to 99% by 2017.
growing demand for UHT dairy milk, and add to capacity for valueadded beverages at its Sydney factory. Pactum is expanding its capabilities at the Sydney plant
important gains in global market access, including improving on the Japan Australia bilateral agreement, delivering new access into the highly protected Canadian dairy market, and improved access in the United States. While the benefits of improved market access will be realised in the longer term, in the short to medium term it will be market fundamentals that determine dairy market movements. Supply and demand need to rebalance sufficiently in order that prices can match or exceed ‘average’ levels, and while sentiment seems to be driving some recent resurgence in demand, the wholesale adjustment needed to balance market fundamentals still appears some way off.
lia and SE Asia. Pactum expects site preparation to begin in October 2012 and start-up by mid-2013. Pactum makes UHT products for private label and proprietary customers.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
MARKETS // 21
Can volatility be managed? LAST MONTH we highlighted the amplified volatility the global dairy industry has experienced in recent times. As the current cycle runs its course, there is the predictable discussion about how dairy market volatility can be somehow curbed or at least managed? In New Zealand, the industry most exposed to price volatility, the discussion has taken an interesting turn with the imminent disappearance of Fonterra’s Guaranteed Milk Price Scheme (GMP) after this season. The GMP was introduced back in April 2013, and allowed participating farmers to lock in 75% of their production at a guaranteed price, announced at the start of the season. At the time of the GMP launch Fonterra said: “As well as providing farmers with the certainty they are looking for, GMP also has benefits for the co-op. That’s because we know what a certain proportion of our milk will cost us for the season and this in turn provides us with another selling tool when talking to our customers, some of whom are also looking for price certainty.” After an apparently successful pilot involving 328 farmers and 15 million kgs of milksolids (kgMS), the scheme was expanded
FRESH AGENDA JO BILLS for the 2014/15 season to 60 million kgMS – with farmers given two opportunities to lock in prices – for 40 million kgsMS, June, and the remainder in December. In June this year, with the commodity market clearly sliding, there were reports that the initial June offering of 40 million kgMS locked in at up to NZ$5.25/kgMS was oversubscribed, with more than 400 farms applying to use the scheme. So far so good, right? Well, no - in September came a brief announcement that GMP would cease as, according to Fonterra, it hadn’t gained the widespread support of farmers: “While some have used it to smooth out on-farm incomes, others felt it did not treat all farmers equally and fairly.” The GMP covered less than 4% of Fonterra’s 1,614 million kgMS intake, so in a year that it offered the greatest attraction for suppliers, many would have missed out. The initiative has now
been handballed to the NZX, which has been working on a milk price risk management tool – but with no launch date as yet. So it seems futures and derivatives are at least part of the answer to helping manage price volatility? The Irish industry – one of the most exposed to global commodity markets in the EU - certainly thinks so. The Irish Cooperative Organisation Society (ICOS) recently called for a fully functioning European dairy futures market to allow farmers, or cooperatives on their behalf, to hedge their milk price positions. However, a trickle of trades in an SMP futures product offered on the Eurex exchange completely dried up in May this year and the trade was suspended. Despite the apparent need, it seems the European dairy sector has little appetite for futures. Across the pond, the US has a well-established futures exchange covering milk and key dairy products, and while they are a growing exporter, the bulk of milk output is still consumed domestically. It should all be sunshine, lollipops and snooze-ville when it comes to price volatility, right? Wrong. The chart (pictured) tracks the all-milk price for US dairy farmers before and after milk futures were introduced in the mid-90s – the period
since then has featured considerably more, not less, volatility in price. It is almost inevitable surely, if a futures market is to develop enough liquidity it will include players who are not directly involved in the physical market – sometimes with more or less information than those who are! This can potentially give rise to even greater variability in prices that is often not supported by market fundamentals – but the result of pure speculation. From the other end of the supply chain, major UK retailer Tesco has recently announced it will expand its Tesco Sustainable Dairy Group of direct milk suppliers citing the removal of EU quotas and increased volatility as key factors.
While it seems no one benefits from volatility – from farmers to end users – and the discussion seems to peak when the market bottoms, we are no closer to finding that silver bullet. In addition, most discussion around the industry doesn’t even touch on the whole volatility story for farmers who are also dealing with input prices – mostly feed – that are often just as variable. For many dairy
producers here at home, the answer to effective risk management may be much less sexy than futures and derivatives. It may be entering into a long-term supply contract where that option is available, and at the same time locking in feed – and knowing with certainty what the margin will be for the next three years. For others it may be the deft use of Farm Management Deposits – which will hopefully
become even more amenable in future – to smooth income over years. Whatever the tool or strategy, there also has to be the realisation that managing out price risk often means sharing some of the upside, as well as the downside, with partners up and down the supply chain. This requires a significant cultural change for our industry, and the realisation that while you may not always “win”, you may sleep better at night.
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Price boost sends index to a six month high FRESHAGENDA’S AUSTRALIAN dairy
export index finished September at 170 points, gaining 22.7 points for the month. With the Australian dollar stable at around US$0.70, all the heavy lifting was done by commodity prices – whole milk powder in particular. As concerns about New Zealand’s production outlook grew, buyers returned to the Global Dairy Trade (GDT) platform, which has seen four consecutive price rises since mid-August. Whole milk powder (WMP) has been the key driver, as it accounts for the bulk of product on offer, and has
also recorded the strongest value increases as buyers moved to secure their requirements at what are still bargain prices. This trend has translated to WMP spot prices which rose US$650/t over September to finish the month at US$2,700/t. The recovery in WMP prices has closed the gap between the Australian and NZ price indices as shown below, given its dominant share of the Kiwi export mix. Meanwhile, spot prices for butter gained an impressive $US400/t for the month to average $US3,200/t. With EU
milk output still growing, albeit more slowly, and most of the surplus destined for SMP stocks, price improvements have been a little more subdued. Nevertheless, SMP prices gained US$350/t to average US$2,200/t at the end of September. Finally, cheddar gained US$200/t
to average US$3,300/t at months end. The welcome recovery in prices during September has returned the export price index to April 2015 levels, but the question remains – will the trend continue? Visit http://www.freshagenda. com.au/
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DAIRY NEWS AUSTRALIA OCTOBER 2015
22 // MANAGEMENT
Quest for productivity gains spurs world wide search
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to travel far to see the potential for improved productivity through Australian cultivar research. “We really are leading the world in a lot of things,” said Aubrey. “That’s one of the messages I came home with, especially in the area of pasture-based dairy farming industries.” He singled out the work being done by the Dairy Futures Cooperative Research Centre in Melbourne to develop a hybrid ryegrass and new breeding methods using genomic selection. “There is the potential to improve yield by 10 -20%,” he said. “Once it is commercialised in years to come, we’ll get better and better grasses, faster, and that will be significant.” He also said the development of an Australian cultivar
selection index by Dairy Australia will be a useful tool. “It will allow farmers to ask, ‘Where I am in my region, what’s the best cultivar for me, what’s the best profit potential?” (Aubrey currently uses information from the New Zealand Forage Value Index to select pasture breeds.) In terms of yield potential, he’s also excited by the prospect of fodder beets, which, although used previously in Australia and date back to ancient Greece as a feed crop for cattle (they used to be called Mangels), have only recently come back into favour. “The use of it in the last five years in New Zealand has grown exponentially,” he said. “There are challenges in managing it, but the yield potential of 35 tonnes per
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hectare is hard to resist.” He said he intends to do a trial on his own farm, but is waiting for some of the weed control sprays to become licensed in Australia. “It’s a very slow growing crop in its initial stages, so controlling weeds is critical,” he said. “And you have to be careful from a stock health point of view (they can die from the high sugar content) but from a dairy point of view, it’s not as much of a concern when you are mixing it with other feed. “It’s something that most Australian farmers aren’t currently doing, and you have to ask ‘why not?’” Aubrey said other productivity tools, such as robotic tractors and robotic milking systems, hold real appeal for farmers, especially as costs
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10-year-old son Jackson what he thinks of his Dad’s Nuffield Scholarship and he’ll tell you in no uncertain terms: “He was away for ages!” With partner Jacqui holding the fort on farm, Aubrey’s scholarship, which was sponsored by the Gardiner Dairy Foundation, saw him take several overseas trips in 2014. It was the pursuit of improved productivity – and profit – that led Aubrey (pictured) to apply for the study opportunity, especially to see the emerging technologies and
do more with less. “Productivity is obviously not ‘more is better’ but the reality is usually when you produce more you will be more productive.” As a result, his report focusses on four key areas including improving labour productivity; achieving higher yields from home grown feed; using technology to achieve better management outcomes (known as ‘Precision Dairy’) and improving cow efficiency. It’s a broad scope, with many different examples to draw from. Ironically, Aubrey said in terms of the near horizon, he didn’t have
LE •
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system changes that had the potential to transfer well to Australian pasturebased dairy systems. “Looking outside your own farm gate is essential if you want to improve your current farming practice,” Aubrey said. And look outside he did: first to the Philippines, China, Canada, United States, the Netherlands, France, and Ireland; followed by a second trip to the Netherlands, Germany, Ireland, Sweden and the United Kingdom, and finally to New Zealand and the United States. In determining what to focus on during his travels, Aubrey drew from his own experience of dairying 450
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MANAGEMENT // 23
Investing in the future downsides in terms of two lots of everything: from the progress calving, rearing, joining. Aubrey and Jacqui It wore us down a bit so Pellett have already we decided to only do made on their farm as one calving a year.” first generation dairy They trialled farmers, the future looks exclusive autumn calving promising. The Pelletts moved six or seven years ago from New Zealand in and haven’t looked back. 2002 to take up a lease The decision was made farm - the farm they now in part to accommodate winter milk pricing own. “It’s pretty hard to incentives which help invest in a place if you’re offset the higher rates of leasing because you’re bought in feed. “We took the not sure of your tenure,” he said. “So we bought approach that if it works two thirds of the farm for the farm, in terms of the soil in 2007, with types, suits our the balance five lifestyle and years later, and “We’re is supported have invested still by the pricing significantly in on the structure, then infrastructure journey it’s the right ever since.” approach.” They but They grow added threewe’ve sorghum for phase power, come their dry cows put in extra a long to eat during water tanks, summer, upgraded their way.” supported by water supply a new spray and water irrigator, and also focus reticulation and on getting the best out of improved fencing. In that time they have their winter pasture. “The ability to grow raised their stocking grass during winter has rate, improved per cow increased,” Aubrey said. production (now at 500 A combination of -520 kg/MS per cow good use of nitrogen, per annum) and lifted a winter active pasture yield. perennial ryegrass They’ve made some called “Matrix”and the pretty big system application of gibberellic changes too. “When we came here acid between mid-May and mid-August, has it was a spring calving helped ensure solid herd, then we changed growth. to a 50/50 split,” Aubrey “We’re still on the said. journey but we’ve come a “It worked well, as it long way,” he said. was a way of carrying “There’s always fine over empty cows quite tuning to be done.” effectively, but it had its
Aubrey Pellett pictured on his property in Hill End. PICTURE: MADELEINE BRENNAN.
JUDGING SIMPLY
FROM PAGE 23
of the technology come down. “If and when farm finances allow, I’ll use them in a heartbeat,” he said. “The consistency of what robots can do is so appealing. A robot isn’t late on a Sunday, and doesn’t come in with a hangover. And from an animal welfare point of view, I think robots
have huge potential. Every robotic farm I’ve ever been to, the cows have never looked happier.” Aubrey said the Nuffield Scholarship has fostered an “open minded learning focus” which he hopes will continue to translate into benefits for his farm and his family. Visit http://nuffield.com. au/aubrey-pellett/ to read Aubrey’s report.
L A I C E P S T R O REP NEXT ISSUE: NOVEMBER EFFLUENT & WATER MANAGEMENT In the face of tighter environmental controls and rising fertiliser costs, it pays dividends to manage effluent and water flows more tightly. The next issue of Dairy News Australia will cover best practice in this area and will profile new developments and equipment designed to turn a problem into potential profit. BOOKING DEADLINE: October 28 MATERIAL DEADLINE: November 3 | PUBLISHED: November 10 CONTACT: CHRIS DINGLE T: 0417 735 001 E: chris@dairynewsaustralia.com.au
DAIRY NEWS AUSTRALIA OCTOBER 2015
24 // BREEDING MANAGEMENT
Holstein masters awarded HOLSTEIN AUSTRALIA has announced the
2015 Master Breeders and the winners of its two annual competitions at its Annual Awards Night,
held at Hahndorf, SA last month. The highly-coveted Master Breeder Award recognises the long-term achievement of herds
that have bred at least 300 registered animals over a minimum of 20 years (see breakout). The 2015 Cow of the Year award went to SomeSteve and Deanne Hore, Elmar Holsteins, took out both Premier Breeder and Premier Exhibitor in the 2015 All Australian competition. Picture courtesy Holstein Australia.
relle Leader Lassco EX91-3E, owned and bred by Master Breeders Scott and Nirrelle Somerville from Timmering in Northern Victoria. Guest judge, Mike Huth, Genetics Australia, said Lassco stood out for her outstanding achievements in every category the judges were looking for including lifetime production performance, regular lactations, high components, brood cow performance, show record and influence on the breed as Australia’s Holstein ambassador. “Lassco sets herself apart as a true champion in her breeding performance, with an impecca-
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This year’s master breeders who attended the National Awards Dinner, held in Hahndorf on September 16 (from left): Bridget Liebelt, Grant Liebelt (Grantley), Dianne White, Les White (Dilee), Bev Carpenter, Garry Carpenter (Garerley), Deanne Hore and Steve Hore (Elmar).
ble 87% VG or better on nine progeny,” Mr Huth said. “For me these attributes make Somerelle Leader Lassco a true Australian Holstein Champion.” The competition recognises all-round excellence in production, classification, breeding and overall contribution to the Australian Holstein breed, selected by judges Mike Huth, Genetics Australia, Jon Holland, (Hollodon, Victoria) and Jenny Grey (Holstein Australia Breed Development and Conformation Committee). Meanwhile, the Hore family, Elmar Holsteins, from Leitchville, Victoria dominated this year’s All Australian competition, taking out both the coveted awards, Premier Breeder and Premier Exhibitor. The Semex/Holstein
Australia All Australian is a national photographic competition that recognises excellence in conformation and showing in Holstein females that have been successful at nominated qualifying
showsthroughout Australia each year. The Premier Breeder and Premier Exhibitor awards are based on points allocated to each finalist, honourable mention, reserve and winners in each category.
2015 HOLSTEIN MASTER BREEDERS: ■
■ ■
■
■
■ ■
■
Steve and Deanne Hore (Elmar, Leitchville, Vic) Grant Liebelt (Grantley, Meadows, SA) Andrew and Judy Cunningham (Blaweary, Pelican Point, WA) Garry and Bev Carpenter (Garerley, South Riana, Tas) Sonya & Andrew Jensen (Kentish Downs, Yankalilla, SA) – 2nd MB George Wagner (Rengaw, Winnaleah, Tas) Les and Dianne White and Russ and Amy White (Dilee, Leongatha South, Vic) Russell and Lindsay Guppy (Lynstarr, Kybong, Qld)
Noelene snares Jersey rising star award JUDGE AND Jersey Australia President Peter Ness has completed the judging of the 2015 Rising Star Award. “It was great to be asked to over judge this competition and the quality of all finalists was impressive – congratulations to all exhibitors in this national class”. First place was awarded to Coleshill Leaders Noelene, owned by Daryl Cole and qualified at Wynyard Show Tasmania. “I’ve gone with Noelene in first place due to her impressive angle and openess of rib. It’s this well sprung rib that gives her an eye catching appearance of capacity,” Mr Ness said Homelands Reagans Silvermine, owned by Nikki and Jackie Davies, was awarded second place and also qualified at Adelaide Show led by Jackie. “She has an advantage over third due to her length from shoulder to hip, which con-
Winning heifer Coleshill Leaders Noelene , owned by Daryl Cole. PICTURE: DEAN MALCOLM.
tinues to pin and is evident throughout the body of this stylish heifer,” Mr Ness said. Attaview Brax Inch ET, owned by Attaview Jerseys and qualified at Warragul Fair led by Ellie Hourigan, came third. “Obviously a quality heifer that was not quite as long as the heifer in second place but a worthy finalist.” To view all heifers, visit www.jersey.com.au
Dairy NewS AUSTRALIA october 2015
breeding management // 25
Partnership closes the loop for Tasmanian feeding and breeding service group TASMANIAN agricultural buying and
selling group, ABSG, has entered into an exclusive partnership with ABS Australia to deliver ABS’ proprietary breeding programs, Reproductive Management System (RMS) and Genetic Management
ABSG’s Patrick Dargan.
System (GMS). “We’re delighted to have ABSG as our Tasmanian partners for our proprietary breeding systems,” ABS national sales manager Paul Quinlan said. “The provision of our RMS and GMS programs will create more opportunities for dairy farmers who want to improve their breeding outcomes. “ABSG will work with ABS’ existing resellers in Tasmania who will continue to supply ABS semen and ancillary herd services,” Mr Quinlan said. The new breeding service complements ABSG’s existing feeding and nutrition service, which provides herd wide nutritional advice and distributes a full range of animal feeds and supplements. “The partnership with ABS closes the loop, enabling us to help our clients choose the right bulls for their herd and to set their cows up to maximise production with reproductive and nutritional systems working hand in glove,” said ABSG principal Jack Beattie. Through RMS, dairy farmers can set up a tailored reproductive management plan that adjusts synchronisation and transition management and gets more cows joined more quickly.
This ensures a tighter calving pattern; fewer missed conceptions and less production lost through empty cows. “We want to help our clients by setting their cows up nutritionally and getting more cows pregnant quicker, so they can
“We can select the bull to suit each cow and develop an overall improved breeding system that will produce more milk.” ship more milk out the gate at lower cost to themselves,” Mr Beattie said. GMS combines physical evaluation, pedigree information and the best genomic information available globally to improve dairy herd genetics ‘one cow at a time’. The system matches bulls to each individual cow to ensure the genetic gain targets the traits the dairy farmer wants to improve while minimising inbreeding and eliminating undesirable traits. “With GMS we can set up a system that helps our dairy farmer clients to breed better cows and customise breeding to the traits they want, rather than the shotgun approach,” said ABSG’s Patrick Dargan. “We can select the bull to suit each cow and develop an overall improved breeding system that will produce more milk. “Genetic management can produce an even line of heifers that meets their breeding goals and ensure they maximise genetic gain with each generation of cows they bring in to the herd.” ABS Australia’s technical services manager, Matt Aikenhead will maintain advice and support to ABSG on the implementation of the RMS and GMS
services. “We’re passionate about helping dairy farmers to get to the next level with their breeding,”
Mr Aikenhead said. “These systems are for those who know they want to make that next
leap forward and need the best systems and technical advice to help them get there.”
ABSG principal Jack Beattie.
DAIRY NEWS AUSTRALIA OCTOBER 2015
26 // BREEDING MANAGEMENT
Focus on traits critical to unlocking profit from herd NORTHERN VICTORIAN dairy farmer Craig
Lister - whose herd was below national Holstein breed average genetic merit in 2003 and is now one of the top herds in the country - said herd improvement through a combination of Australian Breeding Values (ABVs) and genomic testing of females did not have to be a complex insider secret: it was a matter of using all the scientific tools and information available to select and decide the best performing animals in the herd to suit your goal. In Mr Lister’s case, it was profitability. “I was trained in business analysis and it always amazed me how, two cows, given the same opportunity, one cow could consistently turn the same resources into more milk solids yet still get in calf, yet still remain healthy, at a level that the rest of the herd couldn’t achieve,” he said. The prospect of achieving an entire herd with this type of performance made
MADELEINE BRENNAN solid business sense. “How profitable would you be, how efficient would you be?” Mr Lister said. He said the value of focusing on genetic traits could not be underestimated. “Irrespective of how good a pasture manager you are, how good your nutrition management is, or how good a business manager you are, it’s still the cow that converts the feed, water and labour resources into the results. “It’s an important step in the chain of our business and we need to give them the priority they deserve.” Mr Lister, who will chair the steering com-
mittee for the new $3.3 million research project ImProving Herds, said he selected for traits he knew to be important for profitability and then chose not to breed from the lower end under the traditional indices. “The benchmarking worked we did with (Ginfo project coordinator) Paul Douglas showed that for all the ideas people have about cows, how they should look and what they should do, the key fac-
“Irrespective of how good a pasture manager you are, how good your nutrition management is, or how good a business manager you are, it’s still the cow that converts the feed, water and labour resources into the results.” tors for profitability were selecting for profitability - no surprises there - and if you wanted cows to survive longer you selected for survival and if you wanted cows to get in calf, you selected for fertility. This essentially reassured
us to keep going down that path.” Mr Lister and wife Sharon were part of the 10,000 Cow project and said the benefits of genomic testing became so evident they now test every Holstein heifer.
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“We don’t necessarily do that to decide which cows to cull, that is one way to go about it, but we just love the extra information it provides from day one, particularly in the traits of fertility and survival, that have been the main advantage we’ve gained from genomics. “If a cow is deficient in that but stronger in other traits, it means you can know then, not in five or six years’ time, that you have to correct for that cow, for the next generation to be a more profitable member of the team. “It’s an amazing tool.” He said the variety of skills required to be a success-
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ImProving Herds steering committee chair Craig Lister pictured with project lead Associate-Professor Ben Hayes. PICTURE: GERARD HYNES
ful dairy farmer meant staying at the forefront of herd management through genetics could sometimes be low priority. “It seems selecting a herd is one of those easy ones that farmers think, ‘oh well, a cow’s a cow, I’ll hand if off to a trusted expert or advisor for selecting my semen and how I’m going to improve my herd’. “What I would urge farmers to think about is, even if genetics is not your key area of interest, arm yourself with enough information so you can ask your adviser the right questions: Is the bull in the Good Bulls Guide? Do they rate in the top 100 for BPI? There are pretty simple ways to make sure that even though you’re not concentrating on genetics, that you are making good solid genetics gains, consistently.”
Dairy NewS AUSTRALIA october 2015
animal health // 27
Temperature is everything when storing colostrum Why would I store colostrum? If colostrum is left at ambient temperature, the bacteria present rapidly overgrow. Bacterial overgrowth in colostrum can be the source of infection for some of the calf-scour pathogens, such as Salmonella and E.coli. Heavily contaminated colostrum can also inhibit uptake of essential antibodies by the calf and therefore increases the risk of failure of passive transfer (where calves do not have adequate antibodies to fight off infection). In the absence of heat-treatment, the firstmilking colostrum will be least contaminated with bacteria and ideally should be fed as soon as it is collected. But if colostrum is not fed within two hours of collection, then it needs to be efficiently stored. When would I store colostrum? On seasonal calving farms, first-milking colostrum will often be fed to new-born calves as soon as it is collected. Good quality colostrum, measuring greater than or equal to 22% Brix using a Brix refractometer, is often in high demand and on these farms there is not usually excess to store. However, even in herds with tight calving patterns, there may be periods where calf-drop is busy, followed by a quieter period before
the vet group gemma chuck another busier period. This is a common scenario where synchrony programs have been used. Good quality colostrum produced from cows during the quieter period can be efficiently stored for use during the impending busy period. Likewise, in year-round herds and in seasonal or split herds where the calving pattern is more prolonged, storage of colostrum is an integral part of a successful colostrum management program and consequently calf viability. Heifers will often calve before the milking herd. Heifers can produce good quality colostrum but they generally produce low volumes. A ‘colostrum bank’ consisting of good quality frozen colostrum collected from the previous calving period, allows adequate colostrum to be fed to calves born to heifers during this period. This is of particular value for heifers in calf to sexed semen where good quality colostrum is
required in large volumes for every calf born. Bull calves also require colostrum but if there is a limited supply of good quality colostrum (>=22% Brix) then this should be preferentially fed to heifer calves. How can I store colostrum? Short-term In the short-term, colostrum can be successfully stored in a refrigerator at 4oC. When there is excess available, colostrum should be refrigerated as soon as possible after collection. Multiple small containers, such as milk bottles or Perfect Udder bags, are preferred as smaller volumes of colostrum will reach the desired low temperature more rapidly than a single large volume of colostrum, such as colostrum in a 20 litre bucket. If larger volumes in buckets are unavoidable, ensure these have a lid and are thoroughly cleaned after each use. Colostrum can become heavily contaminated from collection buckets and feeding equipment Stainless steel collection buckets are preferred as they can be effectively cleaned. A benefit of the Perfect Udder bags over milk bottles is that colostrum can be fed directly from the bag, via a tube or
Colostrum must be frozen if stored long-term.
teat. There is no need to transfer colostrum to another feeder. This alone reduces the risk of contamination. Colostrum kept in a refrigerator at 4oC will have a shelf-life of approximately two days. To prolong the shelf-life of refrigerated colostrum to five to seven days, a food preservative can be added as soon as the colostrum is collected Potassium sorbate is a food preservative used in the human food industry and has been successfully used on many farms in south-west Victoria It works by inhibiting bacterial growth but “will not make contaminated colostrum clean again”. It must be used in conjunction with refrigeration at 4oC The use of potassium
sorbate alone is not only ineffective but also a waste of money. Potassium sorbate with refrigeration can be very useful during quieter calving periods where a busier period is subsequently expected Its use avoids the need for long-term storage For more information on where to source potassium sorbate, please contact your veterinarian. Long-term In the long-term, freezing colostrum is currently the only viable storage method. It is best to freeze good quality colostrum as soon as it is collected, when there is a known excess available. This will allow for the cleanest possible colostrum to be frozen and stored. Colostrum can be stored in small
containers or Perfect Udder bags. Avoid using large containers with a small surface area to volume ratio as these will not thaw very rapidly. A larger surface area allows better heat exchange to thaw colostrum prior to feeding. Perfect Udder bags are ideal for this purpose Regardless of the container used, all colostrum should be stored in a deep freezer. The small freezer compartment at the top of some fridges will not suffice for this purpose as the colostrum is not cooled quickly enough to prevent bacterial overgrowth. Freezing colostrum does destroy some of the beneficial white blood cells. However, it is considered that the benefits of this method in terms of preservation of
antibodies and prevention of bacterial overgrowth far out-weigh this negative effect. Freezing colostrum should not be used routinely during the calving period as alternative, more convenient methods are available for short-term storage. Freezing is particularly useful at the end of calving where supply often exceeds demand. A ‘colostrum bank’ can be acquired for the next season when there may be a shortfall in supply. In a deep freezer, frozen colostrum will last approximately 10-12 months. It is important to write the date of collection on the container so that outof-date colostrum can be discarded. This also applies to colostrum stored in the refrigerator.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
28 // ANIMAL HEALTH
Getting yearling heifers in calf GENETICS COMPANY
LIC asks: have you finetuned your approach to yearling heifer mating? No matter what the payout is, the fundamental principles remain the same. Heifers must reach puberty to cycle and get in calf. Puberty is driven by liveweight in cattle (about 47% of mature liveweight on average); check their weights, record Minda to see how they are tracking, check growth rates and check to see if they are all cycling. Heifers take about 10 days longer to cycle once they calve down as 2-yearolds. Mate yearling heifers 7 -10 days ahead of the main herd to help them next year. Service bulls need to be sound and suitable. A difficult calving or a slow calving pattern as 2-yearolds can set heifers back
badly. Sufficient numbers of high quality healthy bulls is a must for natural mating of heifers. ■ Select bulls carefully to be easy calving and fertile ■ Reject aggressive bulls and monitor bull performance in the heifer mob ■ Yearling bulls: use 1:20 heifers; 2-year-olds 1:30 Underground heifers There may still be time to flush them up, as a group or as poor individuals. Very small heifers are a poor investment. It may be more economic to cut your losses now on the poor performing tailenders. Check the feed plan with your grazier Some synchrony programmes can advance reaching puberty, if the
line is undergrown. Talk to your vet. Keep them growing. They need to catch up before they are 22 months if they are to survive and thrive in the herd Don’t let animal health disasters rob you of pregnancies; create a sound heifer health plan to keep them growing and pregnant. Replacement heifers Replacement heifers are a big investment, in most cases costing over $1200 to rear through to a milking cow. Review your replacement rate and replacement quality; invest the money in the best genetic merit animals. Rear the number that suits your business needs and future plans. If grazing is limited, it may pay to put the money into fewer higher quality animals. Heifers must reach puberty to cycle and get in calf.
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Non-cycling cow options A COW is labelled a non-cycler if it
has not had an observed heat before mating starts, says LIC. Non-cyclers reduce herd reproductive performance and farm profitability by dragging down submission and conception rates and achieving fewer days in milk in the
following year than their cycling herd mates. In most herds, the types of cows that become non-cyclers tend to be the same from year to year. Non-cycling in cows show up as follows: ■ young, first and second calvers,
especially if poorly grown thin cows ■ late calvers ■ health issues ■ breed (Friesians are more susceptible) For cows cycled but not detected, plan to improve heat detection. ■
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DAIRY NEWS AUSTRALIA OCTOBER 2015
ANIMAL HEALTH // 29
Will mastitis happen to you this spring? ROD DYSON
IT HAPPENED last year.
Actually, “it” has happened each year for a number of years. So “it” will probably happen again this year. What is “it”? Will you be affected by “it” this year? Each year we see a number of farms where a mating synchrony program has been accompanied by an outbreak of clinical mastitis – either during the mating program, or immediately after. Milk cultures from these herds nearly always show environmental bacteria to be the cause.
active cows. Even consider moving highly active mating groups of cows during the day if they start to create high risk “muck holes” in a grazing area. Not only does mud and faecal contamination greatly increase the number of bacteria on the teat skin, it can also lead to drying and cracking of teat skin, providing a great environment for bacteria to survive and multiply. Dry, “caked on” mud is also likely to compromise your teat disinfection. Whether wet or dry, this muck on teats can also significantly alter the dynamics of milking, potentially leading
• Rod Dyson is principal veterinary consultant and team leader at Dairy Focus, based in Tongala, Victoria.
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A pre-milking wash and dry program for teats in this group of cows can be used for these periods, either as a preventative measure, or as part of your initial response to a mastitis outbreak. It seems that large groups of cows milling around when on heat significantly increases the risk of environmental mastitis, especially mastitis caused by Strep uberis. And it’s not hard to understand why. Most of this mastitis results from exposure of teats to contamination containing these environmental bacteria. Whilst there are plenty of obvious sources of environmental bacteria on a dairy farm, it seems these groups of highly active cows are often able to create their own pool of “muck” to slop around in. To reduce this risk, plan ahead and avoid paddocks with low or wet areas. Watch out for leaking water troughs, and take particular care with shade areas. Commonly, shade areas under trees are already heavily contaminated areas. These areas should be used judiciously at any time, but be especially careful when you have a group of highly
to more cup slip and cup crawl – both are significant mastitis risks. Whilst preventing extra contamination of teats is clearly the first option to reduce the risk of a mastitis outbreak, the next step to consider is your premilking teat preparation during this period. A pre-milking wash and dry program for teats in this group of cows can be used for these periods, either as a preventative measure, or as part of your initial response to a mastitis outbreak. The addition of pre-milking teat disinfection may also be appropriate for some herds. Finally, monitor cell counts closely and ensure there is a regular process for early detection of any clinical cases – the earlier you treat, the better the success rate, and the lower the chance of further spread. In summary, a little pro-active thought and planning may help you to avoid the pain of an unwanted and expensive mastitis outbreak.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
30 // MACHINERY & PRODUCTS
Deeper drains open wet land to pasture RICK BAYNE
A FARM near Koroit in
south-west Victoria has reclaimed more than 30ha of land after installing a new open drain system. Riverside Dairies, which runs three farms in
the region, has addressed a long-term inundation problem on an out paddock at Kirkstall by simply excavating deeper drains. Farm manager Peter Rochester (pictured) said the low-lying flats used to hold 150-200mm of water
every winter. “We really couldn’t go on to it over winter; it was just too wet,” Mr Rochester said. “On a normal winter there’d still be water there now near the end of September. “It was like a little
shallow lake. It would dry out eventually over summer but all through the winter there’d be six or eight inches of water across the whole flats area.” Riverside Dairies enlisted Tim Beets from TG Drains who used
contour mapping to check the land and then excavated a new deeper drain system with extra cross drains. Mr Rochester said the contour mapping was used to determine if the existing drains – laid by former owners many years
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ago - were deep enough and in the right spot. “They found that the existing drains are probably in the right spot so we don’t have to move them, but they weren’t deep enough,” Mr Rochester said. “The culvert was too high so the water wasn’t draining quickly enough.” TG Drains deepened the main drain by about 700mm for about 1.6km. They also installed three new cross drains to ease the flooding problems. Although it hasn’t been a particularly wet winter, Mr Rochester said the deeper drains that were excavated in March-April were working. “The land that went under water is probably improved that by 20-30%. It’s growing grass this year where it would normally be wet,” Mr Rochester said. The farmer hasn’t planted new pasture this year on the heavy black flats. “We’ll just see what happens,” Mr Rochester said. “There’s existing pasture there and a bit of native grass and it’s growing well.” The land is used to run about 400 young stock
and 80-90 dry cows. As it’s not part of the main farm, the owners didn’t want to spend too much money and hadn’t seriously considered underground drainage. “Because it is essentially an outpaddock or a beef property, there’s a limit to what you want to do. It’s just an open drain system; we don’t have any subsurface drainage, to drain the surface water away and get 30-40ha back to use over winter.” Mr Rochester said the new work just updated the existing open drain system. “What we had before just didn’t work very well.” He expects the cost of installing the new deeper system to be paid back within four or five years. “They have been good this year and they will be even better in really wet years. The fact that we can get the water off a bit quicker means we can utilise the land.” Mr Rochester is also subdividing the paddocks and fencing the drains to make sure the cows don’t make a mess of it. “We’ll put plantations on one side of the drain so we’ll have access if we ever have to clean them. They should look good,” he said. The dry land has also helped to overcome a problem with rushes. “Wherever the water was lying we’d be growing rushes,” Mr Rochester said. “We slashed the rushes but when you remove the water they’ll dry off anyway.” The farm usually receives about 812-837mm of rain each year.
DAIRY NEWS AUSTRALIA OCTOBER 2015
MACHINERY & PRODUCTS // 31
Locally-made disc seeder delivers tailor made solution at Whitfield WHEN GREG Sheppard
wanted a disc seeder with six inch (15.24cm) row spacings for his sowing program, he had a bit of trouble finding a machine to do the job. The 6” spacing gives better ground cover, less chance of weeds coming through, and helps to get ryegrass to persist through the summer. However, “there is not a ‘single disc seeder’ on the market that will get down to those row spacings while following the contour of the paddock”, he told Dairy News when we visited in late September. Greg and his wife Nikki milk 500 cows on their 566ha property at
Whitfield in Victoria’s King Valley. They also lease a further 40ha. It is a self-replacing herd averaging 8000 litres/year and about 600kgMS. The farm has been in the family for about 125 years and Greg’s parents, Brian and Reta, and Brian’s brother Neil are still involved, having been dairying since 1956 when they started off handmilking Jerseys. The sowing is predominantly annual and perennial pastures with some cereal crops and their previous seeder was on seven and a half inch (19.5cm) spacings. So they approached Darryl Serafin of Serafin Machinery at Griffith
WORKING CLOTHES CHRIS DINGLE NSW who manufacture the Serafin ULTISOW trailed disc seeders. They purchased their SCG6040 machine in February this year, prior to the seeding season. “The government’s minimum tillage sowing grant helped,” explained Greg. The machine has a 6m operating width
with 40 discs and had to be converted from the original 36 discs. They bought the bare bar, and local contractor, Scott Flanigan, who also bought a similar machine at the same time, fitted the three seed boxes which are really converted fertiliser bins. Mr Sheppard said that they have a more compact design with the two larger 1600 litre bins mounted side-by–side and the smaller 400 litre bin in front. “They are made of a transparent material so you can see how much seed is still inside.” Platforms on the machine can carry extra bags of seed to allow in-field refilling.
They installed Borgault distributors for the seed and Smallaire at Horsham assembled the fans and heads. “We installed Seed Vue
air seeder venting units on the top of the air lines to show if you have any blocked heads. And an oil tank ensures stable fan speed.”
The seeding operation is managed by a TopCon Eagle E15 rate controller mounted in the tractor cab and Greg said it is very TO PAGE 32
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DAIRY NEWS AUSTRALIA OCTOBER 2015
32 // MACHINERY & PRODUCTS
Seeding solution delivered FROM PAGE 31
easy to calibrate. “You just put a bucket under the chute; let it run for a set time, weigh the bucket and input the measurement into the controller. It adjusts it as you go. “The folding design makes it easy to get
through gates and to move on the road, it only takes 20 seconds to fold.” They pull the machine with a 205hp John Deere 7530 with auto steer, and so far they have worked up 580ha. Eight hectares of that was cereal, the rest pasture. They had fertiliser and oats in the
big bins and ryegrass in the small bin. “The oats germinate first and we graze it off, then the ryegrass comes through,” Greg said. “We are continually looking at our windows of opportunity.” The Sheppards employ three part-time milkers
and two full-time workers who take turns to operate the seeder. “Once we ironed out all the bugs it turned out to be quite simple to run. It is very manoeuvrable, it turns on itself, and the four sets of wheels means that it is stable. If you are pressed for time with a
crook bearing or a flat tyre, you can just keep going.” Greg said the machine has live down pressure which helps seed placement in hard ground. “Darryl Serafin designs and builds the machines and has been good to work with.” They grow about 342ha
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(800 acres) for pit silage and a contractor with a self-propelled chopper was scheduled to come in the next week to start cutting. A 1.9m Silocut block cutter is used for getting the silage out of the pits. They bale their own hay with a Welger baler bought in 2010 and a McHale HS2000 wrapper
follows on behind the baler. Other machinery on the farm includes front and rear Taarup mowers, a Giltrap feed-out wagon, Krone 5XL loader wagon, a 9m Lely tedder and 8m rake. There is an Amazone Ultra spreader, and a 24m GoldAcres trailed machine looks after the spraying. A K-Line 4m Multidisc is used for summer sowing which is rolled in with a FarmPro tyre roller. Brian says they are active in the local farm management groups and Greg thought that the future looks positive: “but that is milk price dependent. We are fortunate here that we are less reliant on the weather with a 1100mm average rainfall.”
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DAIRY NEWS AUSTRALIA OCTOBER 2015
MACHINERY & PRODUCTS // 33 Farmers learn more about DairyBase at a workshop in Colac. PICTURE: DAIRY AUSTRALIA
Web tool helps maximise farm performance to know your business dairy farmers to measure and if are you maximising and compare their farm farm business the money you’ve business over time. management tool invested. After entering DairyBase can play a key “If you know your their farm data into role in lifting business business, you can skills in the dairy industry DairyBase, farmers calculate what the effect can create confidential says western Victorian will be if the milk price dairy farmer Mark Billing. and comprehensive goes from $5.60 to $4.60, Mr Billing and his wife farm reports to help how you will fare in the Sam milk 450 cows on 240 them understand the short term and how that overall farm business hectares near Colac. might change things for performance. The couple have your business in the longMr Billing said by always had a business term.” using DairyBase farmers focus, monitoring In the past, farm could calculate their cost expenditure on their business analysis operation and “Once the farm data had highlighted measuring the value key areas of focus from the dollars they is entered it’s about for the Billings’ spend. what they can do operation, A host of a to get value out of including recent dairy the analysis. People lowering the farmer discussion amount of bought group, Mr Billing’s can look within in feed, growing discussion focused their companies or more grass and on introducing consultants.” getting more DairyBase to 45 effective value from staff. of production which he farmers and he hopes Mr Billing encouraged viewed as crucial. more farmers around “Whether it’s a good or farmers to sign-up to Australia will get to grips DairyBase, which is bad figure, I think people with their farm business should know their cost of funded by the dairy levy management by using production because when at no additional cost to DairyBase. farmers. “It’s true what they say you know that, you know “Once the farm data – you can’t manage it until your business and you is entered it’s about can make the required you measure it. I think what they can do to get DairyBase will play a huge changes. value out of the analysis. “For us we know what role in the industry,” Mr People can look within our cost of production is Billing said. their companies or and that means when the “Quite simply it helps consultants,” he said. milk price is announced farmers figure out what Have you tried makes their business tick. at the start of the year DairyBase? Let us we know what our profit “It’s also fairly easyknow your thoughts margins will be.” to-use and intuitive with on its useability DairyBase can help to pop-ups to guide you and effectiveness. answer a lot of questions when you are entering about a farm business, he Email editor@ your data.” dairynewsaustralia. said. DairyBase is a secure “Realistically you need com.au online tool that enables DAIRY AUSTRALIA’S
Little Cat gets the jump on big job AS A hobby farmer with a distinctly
non-executive-paying job and a tenuous-at-best business case for any piece of machinery I purchase, I often find myself unable to buy a machine for every job. Actually, that probably puts me in a similar position to all but the most luxuriously well-capitalised farmers and contractors. Anyway, if you want to do the job yourself, this obviously means the unpalatable choice between borrowing someone else’s machine (post driver, for example) and the financial pain-for-short-term-fun of a dry hire. Easily my most productive dry hire machine over the last few years has been a Caterpillar 301.4C mini excavator. The little Cat weighs in just over 1.4 tonnes, wields 24 horsepower, and can lift around 700kg if conditions are right. I know I’m going all ‘compact grunt’ on you again dear reader, but bear with me. Despite its diminutive nature, this ludicrously small pocket rocket isn’t just useful for digging sewer pipes in downtown Brunswick. Frankly, it’s about as much Grunt as you can tow behind a dual cab ute.
GRUNT
JOHN DROPPERT And that factor is important. No point turning up to Kennard’s hire on a Saturday morning with the Triton and gesticulating at the nearest 20 tonne dreamboat – not going to happen. I’ll concede that 1.4 tonnes is, at face value, embarrassing by comparison. Each time I’ve hired a mini excavator, I’ve quietly wished for the 1.7 tonne they always tell me they have in stock. But, like all the ‘Golf or similar’ hire cars that turn out to be Hyundais, I always seem to end up with something a little less exciting. But unlike the hire car experience, each occasion reminds me of the old adage (shamelessly adapted) that ‘it’s not how much grunt you’ve got, but
what you do with it that matters.’ I don’t know how, but fuelled with about a litre of diesel and a healthy dose of ambition, the little Cat has never let me down. It has smartly chiselled its way through rock hard clay to lay 300mm pipes and excavated wholesale volumes of dirt from new drain lines. It has laid hundreds of metres of poly pipe for water mains, having the delicate touch to sneak the trench through fences with no fuss. On one ambitious occasion, it clubbed, ripped and pushed its way through a forest of dead chestnut trees. I should note that the machine involved was returned to its rightful owner without a scratch – in my mind a further compliment to its abilities. Who needs a pair of D11 dozers and a chain when you have a 1.4 tonne mini excavator and half a day of hire time left to burn? There’s nothing like that cocktail of time pressure, ambition, a quest for value, and someone else’s machine to get things done. That 1.4 tonnes of the best packaged grunt I can find, certainly doesn’t go astray either.
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DAIRY NEWS AUSTRALIA OCTOBER 2015
34 // MACHINERY & PRODUCTS
CFMoto takes aim at mid-size ATV market
Deere mover now comes as four-track MARK DANIEL
THE WAIT is over: after many
months of speculation and grainy over-the-hedge spy shots, John Deere has released details of the new addition to its nine series stable – the 9RX. Owners of this large prime mover will be able to choose wheeled (9R), twin track (9RT) or now the new four track, centre pivot version (9RX). There are four models, powered by the latest Tier 4 engines -- the smallest 470hp, the largest a mighty 620hp. The smaller 470 and 520hp
units make use of a 13.5L John Deere Powertech engine, the larger 570 and 620hp models use a 15L Cummins QSX plant. Both offer high torque and constant power throughout the rev range. Transmission is via the e18full powershift transmission with ‘Efficiency Manager’. This automatically matches engine load and target speed to shift to the correct speed in the transmission for best performance and fuel economy. From the transmission, drive power is transferred to large diameter drive sprockets and large heavy duty drive lugs to Camso Duradrive 3500 or 6500 belts which transmit
the power to the ground. The 30 or 36 inch (72.6cm or 91.44cm) wide belts are supported by optimally spaced idlers and midrollers which ensure great grip and minimal slippage. Up on top, the operator sits in the Commandview cabin supported by a new four-link mechanical cab suspension giving up to 10cm of movement – much more comfortable. To help the driver get the best performance out of the machine, there is well known JD technology such as Auto Trak for guidance, JD Link for connectivity, and a new Active Command Steering
system (ACS) for easier headland turns and line holding ability at road speeds. A new hydraulic system can support up to eight selective control valves with 235L/min flow; this can be beefed up to 435L/min for high demand applications. “The new 9RX brings to the market John Deere’s 20 years of experience gained with the 8RT and 9RT tractors,” says John Deere product manager for the 9 series, Jerry Griffith. He also notes that customers say the new tractor is easier to manoeuvre and has power to get the job done.
CFMOTO AUSTRALIA has launched their first ATV under 500cc. The move will see the manufacturer produce smaller capacity ATVs for the first time and compete in the mid-size ATV segment (250cc-400cc) which accounted for around 40% of national ATV sales in 2014. The company’s CEO, Michael Poynton, says the introduction of a mid-size ATV has been in the pipeline for some time now and expects the X400 will make an immediate impact once it hits dealership floors this month. “We’ve sold more than 12,000 CFMoto’s in just over five years and have a pretty good grasp on what our customers want from us. The X400 is the result of listening to customers then working with the development team at CFMoto to produce an ATV with a smaller body size which is easier to manoeuvre without compromising on key features required to get the job done,” Mr Poyton said. “With these ATVs starting from $5990 ride away, farmers can now have a powerful liquid cooled EFI 400cc engine with strong Canadian CVTech transmission with two and four wheel drive modes for a price point previously only ever seen on much more basic 250-300cc 2WD ATVs.” The company said it’s this promise of value for money that has seen it “smash ATV sales records since entering the scene in 2009”. The X400 is offered in two models, a standard model and a limited edition (LE) model.
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