Dairy News Australia February 2016

MG nabs Coles cheese deal from Bega PAGE 9

PARCHED PASTURE Tips for renewal PAGE 28-29

MINE THREAT Expansion could end farm PAGE 6

FEBRUARY, 2016 ISSUE 66 // www.dairynewsaustralia.com.au

LUCK AND GRIT

Siblings Luke Fitzpatrick and Sharon Hannah saved their dairy from fires in Waroona, WA last month, one of 20 affected in the region. PAGE 8

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news  // 3

VDL fight not over. PG.07

Water plan still needs work Rick Bayne

FARMERS could have access to more water at cheaper prices with planned changes to the Water Act 2007. The Australian Dairy Industry Council (ADIC) believes changes accepted by the Federal Government will give farmers more flexibility to trade water, but says more amendments are needed. The ADIC has lobbied for increased trading flexibility for Commonwealth Environmental Water Holders and believes the Federal Government’s support for the recommendations of an independent review is positive news for dairy farmers. However, while the government is supportive of all the recommendations not all will be fully adopted. Chair of the ADIC’s re-formed Water Taskforce, Daryl Hoey, who farms in northern Victoria, said the response was a positive first step but greater improvements in the implementation of the Act and the Murray Darling Basin Plan are still required. “There will be continual meetings over the next few months

Jersey snares IDW win. PG.22

Is fortified milk worth it?. PG.24

News �������������������������������������������������������3-9 IDW 2016 ����������������������������������������������10-11 world ��������������������������������������������������12-13 around the regions ������������� 14-15 Opinion ���������������������������������������������� 16-17 markets �������������������������������������������18-19 management ������������������������������� 20-21 breeding management �����22-23 animal health �������������������������� 24-25 pasture improvement ������ 26-31 irrigation �������������������������������������������� 32 Machinery &   Products �������������������������������������� 33-34

while we’ve still got a chance to change the legislation before the June 16 deadline,” Mr Hoey said. “We’re trying to get the politicians ahead of the game rather than only responding when headlines appear in the paper about water prices.” Mr Hoey said dairy was a flexible and responsible user of water. “We have adapted our practices to be more water-efficient. However, reduced access to water resources is already putting pressure on dairy’s productivity and profitability.” Under the original legislation when water holders sold water, the proceeds had to be used to buy additional water in another part of the market. Mr Hoey said this had been eased and holders can now use money from water sales to improve infrastructure or invest in technology that can achieve similar results but with less water. “Our argument has always been that farmers have had to make huge improvements in the way they use water so it’s not just us going into the market all the time buying water for what we need to do. The environment needs to be under

the same sort of rules. They need to improve the way they use water too, rather than just purchase water all the time.” “This means the environment won’t have to purchase as much water to get the same environmental outcomes. “They’re not in the market pushing the price up which means there will be more water for farmers to purchase and hopefully cheaper as well.” Mr Hoey said flexibility for water holders was the key to helping the industry remain viable and ensuring a balanced approach to achieving environmental outcomes in the Murray Darling Basin. “The government’s stated commitment to continue to work towards achieving a total 650GL supply offset is positive. “Achieving the full amount through environmental works means more water stays in the irrigation pools,” he said. Mr Hoey said there were still concerns about ambiguous wording in the Act. “That the government didn’t agree with submissions to amend the Act to unambiguously state a triple-bottom-line objective or to

strengthen the current implementation of the legislation is of concern. Such an approach is critical,” Mr Hoey said. “There is a need for a robust evaluation of environmental, economic and social impacts before considering an additional 450 gigalitres (GL) of water being taken from agriculture.” The ADIC is also concerned the impacts of water sales are considered only at a farm level. “If the farmer sells the water and gets his money the authority says there has been no impact but the impact is going to be felt at a regional level because you have less business in small towns, less kids at school because there are less farmers, and less water in the region. It’s a poorly worded part of the Act.” Mr Hoey said water prices had come off from pre-Christmas highs. “That’s the market responding to farmers refusing to pay the prices that were being asked,” he said. “It was up to $280-$300 but you can buy small parcels for under $250. Farmers would still like to see it back closer to $200 or less. Hopefully with the rains we’ve had and a good autumn the price will drop even more.”

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

4 //  NEWS

First hand China visit a ‘head spinner’ RICK BAYNE

LIVESTOCK

SELLER Michael Goldby has seen first hand the enormous promise the Chinese market holds for the Australian dairy industry. Mr Goldby, from South West Farmers based in Portland, south-west Victoria, joined a delegation to China in late 2015 with local government, education and agricultural officials. What he saw made his head spin. The group visited the Ground Dairy Group, a company that includes property development, food manufacturing, telecommunications and finance, and has assets worth $7 billion and employs more than 5000 people. Its food manufacturing business includes dairy, brewing and modern agriculture products, such as liquid milk, cheese, yoghurt and more than 100 other dairy products, and organic crops of vegetables. The dairy is the largest manufacturing enterprise with 48 assembly lines for dairy products. One dairy milks 10,000 cows and 15 other dairies each milk 1000-plus cows. “They’re one of the biggest in China; they’re massive and they’re looking for product and heifers,” Mr Goldby said. The delegation also visited the

IN BRIEF Beston extends reach in Asia BESTON Global Food Company, whose interests include both dairies and dairy processing facilities in South Australia, has announced a joint venture with the Sunwah Group in Hong Kong for the marketing and distribution of BFC food and beverage products in Hong Kong, Macau and certain parts of Southern China. In announcing the Joint Venture, the chairman of BFC, Dr Roger Sexton said the arrangements which have been put in place, “filled a gap” in the company’s Asian distribution platform.

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Haoyue Meat Company which slaughters a million cattle and 200,000 sheep each year and processes 600,000 tonnes of feed. The company showed interest in more Australian-bred cattle. Since returning to Australia Mr Goldby has been encouraging local businesses to learn more about trading with the booming Asian markets. He is already following up on one

Michael Golby pictured with two of his hosts at Ground Dairy Group.

export order. “I was absolutely impressed by what I saw,” he said. “There are huge opportunities in both dairy and beef.” Mr Goldby said some local farmers were keen to pursue options; some were sceptical. “The market’s there and it’s growing and they’re absorbing more product. It can only be beneficial going forward if we seize on the opportunities,” he said. “They want to be involved with Australia. If we don’t supply them someone else will. We have the leading edge because of our clean-green image; that’s what they want.” Mr Goldby said he was impressed by the scale of operations in China and their long-term vision. “You might have a picture in your head but with the scale of everything I saw you could add another three noughts at the end of every figure and you still wouldn’t be close,” he said. “We met with government officials and they’re planning 20 to 30 years down the track for food security. We need to see past the next election cycle. “It’s all about food security for them. There are a lot of people to feed

and their eating and lifestyle habits are changing.” Mr Goldby said Chinese officials believe the Free Trade Agreement (FTA) will make it much easier to do business. “All those things are coming in to play and our local farmers can be the first to benefit.” With burgeoning demand for milk powder, raw materials and valueadded product, Mr Goldby sees great opportunity for processors to capitalise, with potential for 25% growth. “It’s probably too difficult for individual farmers but for processors the market is huge – absolutely massive. “It was an eye-opener for me. My head was spinning all week.” The tour itinerary also included visits to technology companies, a university and a meat company. The delegation was organised by Warrnambool City Council. Mr Goldby’s local municipality, Glenelg Shire Council is encouraging local business and industry to learn about the benefits of FTAs and to look at how the region’s food and fibre can be traded on the world stage.

APPLICATIONS for the Rural Industries Research and Development Corporation Horizon Scholarship 2016 are now open. The Horizon Scholarship is for young people who are passionate about agriculture, with a keen interest in the future of ag industries and who are ready to expand their networks and learn new skills. Applications close February 19. Visit www.rirdc.gov.au for more information.

New hotline for transport incidents THE Australian Livestock and Rural Transporters Association (ALRTA) and National Transport Insurance (NTI) have launched a 24hr national hotline to coordinate emergency responses to incidents involving heavy vehicles carrying livestock. ALRTA national president Kevin Keenan said LivestockASSIST “establishes a rapid national emergency response service so that we can minimise harm to drivers and animals in the rare event when things do go wrong”. It includes response options such as vehicle recovery, medical assistance, driver repatriation, trauma counselling and message referral services. Special requirements when an incident involves livestock will also be provided for. The national number is 1800 4 ALRTA (or 1800 4 25782).)

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NEWS // 5

ACCC takes action against Woolworths ‘gap’ payment MADELEINE BRENNAN

THE AUSTRALIAN Competition

and Consumer Commission (ACCC) has begun action against Woolworths, alleging the supermarket giant abused its bargaining position when seeking payments from Tier B suppliers as part of a strategy to reduce its profit shortfall in December 2014. The ACCC alleges that Woolworths management approved a scheme in which Woolworths sought to obtain payments from a group of 821 ‘Tier B’ suppliers – broadly defined as a group of non-market leaders in their category – to its supermarket business.

“Woolworths’ category managers and buyers contacted a large number of the Tier B suppliers and asked for ‘Mind the Gap’ payments from those suppliers for amounts (ranging) from $4291 to $1.4 million, to “support” Woolworths. Not agreeing to a payment would be seen as not “supporting” Woolworths,” the ACCC said in a statement. “The ACCC alleges that Woolworths did not have a pre-existing contractual entitlement to seek the payments, and either knew it did not have or was indifferent to whether it had a legitimate basis for requesting a ‘Mind the Gap’ payment from every targeted Tier B supplier.” It is not yet known whether any dairy companies were targeted because,

according to the Statement of Claim lodged by the ACCC, Woolworths had no accurate written record of which suppliers were approached, which suppliers agreed to make payments, how much money they contributed or on what basis the suppliers agreed to make the payment. The allegations claim Woolworths sought about $60.2 million payments from the suppliers, expecting that while many suppliers would refuse to make a payment, some suppliers would agree. Woolworths ultimately captured about $18.1 million from these suppliers, according to the ACCC. ACCC chairman Rod Sims said the ‘Mind the Gap’ payments were “unconscionable in all the circumstances”.

A common concern raised by suppliers relates to arbitrary claims for payments outside of trading terms by major supermarket retailers. It is difficult for suppliers to plan and budget for the operation of their businesses if they are subject to such ad hoc requests. The ACCC is seeking injunctions, including an order requiring the full refund of the amounts paid by suppliers under the ‘Mind the Gap’ scheme, a pecuniary penalty, a declaration, and costs. The proceedings follow broader investigations by the ACCC into allegations that supermarket suppliers were being treated inappropriately by the major supermarket chains.

In a statement, Woolworths said it had been fully cooperating with the ACCC during the course of the investigation. “We believe our conduct was consistent with Australian and international industry practice to engage regularly with suppliers over product and category performance. “Woolworths believes in working cooperatively with suppliers. “Woolworths was the first major supermarket to agree to sign the Grocery Code of Conduct and is currently implementing the Code across its business.” Woolworths has until February 15 to submit its defence, with mediation between the parties to start in July.

Have your say on misuse of (super)market power FARMERS ARE being encouraged to have their say on the impact of misuse of market power and the establishment of an effects test – specifically an amendment to Section 46 of the Competition and Consumer Act recommended by the Harper Review Panel last year. The recommendation would see the Act changed to improve its effectiveness and weight so that any corporation with a substantial degree of market power cannot legally engage in conduct that lessens, or has the effect of lessening, competition in the market place.

On January 28 the Minister for Agri- ideas. Submissions close on February itive business environment. “Addressing the misuse of market culture and Water Resources, Barnaby 12 and it’s important any measures Joyce, called for producers to have introduced are informed by the power is crucial in determining the Australian dairy industry’s their say on the issue, before future profitability and susthe close of deadline on Feb- “I want any farmers who have ruary 12. experienced anti-competitive tainability,” Mrs Jolliffe said. “Farmers need every “This government is com- behaviour to share their ideas.” opportunity to improve their mitted to rectifying sup– Barnaby Joyce negotiating power for profplychain issues and fostering a competitive and transparent busi- experiences and ideas of people in the itability and returns at the farmgate to be achieved.” ness sector so that all participants in agriculture sector.” Treasurer Scott Morrison said the Australian Dairy Farmers president the market place are treated fairly,” Mr Simone Jolliffe said ADF was continu- discussion paper was necessary to Joyce said. “I want any farmers ing its call for the Federal Government “bring the parties closer together” on who have experienced anti- to adopt stronger misuse of market the issue. “The section 46 debate had competitive behaviour to share their power laws to foster a more compet-

devolved into a binary argument either the ‘full Harper’ or the ‘no Harper’. But there are a range of points that exist between those two options that could reinvigorate the debate on the Harper Review’s proposal with a view to bringing parties closer together on the misuse of market power provision,” Mr Morrison said. To view the discussion paper and make a submission or comment, visit www.treasury.gov.au/ConsultationsandReviews/Consultations/2015/ Options-to-strengthen-the-misuse-ofmarket-power-law

DAIRY NEWS AUSTRALIA FEBRUARY 2016

6 // NEWS

Mining expansion clouds farm’s future GORDON COLLIE

A DARLING Downs

family have staked their future on a new multimillion dollar farming system only to discover it is now under threat from an encroaching coal mine. Noel and Fay Wieck and their son Grant and his wife Kylie planned to build a new concrete feed pad on their property Chelmonte at Brymaroo, but it quickly morphed into a massive free-stall barn complete with robot milkers. The nearby Acland mine had been slated for closure but by the time the first of their Illawarra

cows were housed in 2013 the political winds had changed. Plans for a mine expansion have been revived with the opening of three new open cut pits, the closest of which will be just 1.5km from their boundary. “Our limited groundwater supply is crucial to our survival and modelling has shown there will be a permanent drawdown on aquifers up to 8km away,” Noel said. “When we went ahead with our development there was a guarantee from both sides of politics that there would be no mine expansion.” Expansion of the New

Acland coal mine was first proposed in 2007 and drew a hostile community and political reception. But a scaled down version was given conditional approval in late 2014 by the (QCG) in the dying days of the Coalition Government. QCG Barry Broe found there were 357 registered underground bores in and around the mining area which could be affected. He set conditions requiring proponents to enter into makegood arrangements with potentially affected groundwater users, including provision of an alternative water supply. A draft Environmental

Authority was issued for the project in August last year. Following a period of public submissions, objections will now be heard by the Queensland Land Court, with 10 weeks set aside from March to May. “There are supposed to be make-good provisions to cover any losses, but once water is drained from our aquifer the place simply won’t be viable for dairying,” Noel said. “We will be left arguing for compensation and forced to walk away from our property which has been in the family almost 100 years. “It’s a very stressful

Grant Wieck inside the family’s upgraded dairy. PICTURE: GORDON COLLIE.

time when we are still bedding in our new dairy facility which isn’t even up to full capacity yet. “We are totally reliant on eight bores which give us stock and plant water and only limited irrigation capacity.” In a separate process, the Federal Government is also reviewing impacts on

the New Acland said the company was unable to comment while project was before the courts. Final approval for the mine expansion will rest with the Queensland Government which will have to issue a new mining lease. • Wiecks make every drop count, p. 20.

surface and groundwater in the region. The independent expert scientific committee in its second report last December said there were still significant issues unresolved in a revised groundwater modelling response provided by the company. A spokeswoman for

NSW policy tackles right to farm disputes THE NSW Government has released

a ‘right to farm’ policy which it says will support farmers to operate their businesses without conflict or interference from other land users. NSW Minister for Agriculture Niall Blair said the policy represents “a comprehensive, state-wide approach that includes a series of clear actions to help address right to farm issues”. The actions in the policy include: Reinforcing rights and responsibilities; establishing a baseline and ongoing monitoring and evaluation of land use conflicts; strengthening land use planning; ensuring ongoing reviews of relevant environmental planning

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instruments (include consideration of options to ensure best land use outcomes and to minimise conflicts); improving education and awareness on management of land use conflicts; and considering potential future legislative options, should additional government intervention be required. “Agricultural land covers almost three quarters of the state, which means it will mix with other uses – but we are determined to make sure our farmers can get on with the business of farming and reduce some of the conflicts which may arise,” Mr Blair said. “We made a clear commitment to investigate the right to farm issue. This

where farming is occurring lawfully, it can continue to occur,” Mr Clapham said. “The policy includes measures to address the situation where someone moves into an established farming area and subsequently lodges repeated complaints with the local council about the pre-existing farming activities. “In some local council areas, complaints are made on a weekly basis, causing stress to farming families and in some instances pushing farmers off the land. “The reality is, farming can be smelly, it can be noisy but we need to recognise most farmers are operating within the TH1848M 25-8-15

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law and producing fresh food and fibre for a growing population. “In particular, the importance of near-to-market fresh produce in periurban areas means that we need to embrace these farms and not attempt to harass the farmers until they leave,” Mr Clapham said. Mr Clapham said that right to farm issues would only increase as urban sprawl continued to effectively sterilise productive agricultural land. “It’s not a quick fix but a comprehensive long-term policy solution and we look forward to continuing to work with the NSW Government on this issue and hope that other states follow suit.”

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policy will help develop better planning strategies that are more compatible with agricultural activities.” NSW Farmers welcomed the release of the policy which was a result of a preelection agreement between the NSW Farmers Association and the NSW Liberal and National Parties. NSW Farmers conservation and resource management chair Mitchell Clapham said the policy represented a significant step forward in a long battle in recognising farmers’ lawful ability to continue producing food and fibre for NSW and global consumers. “Right to farm is a long standing policy of our members and means that

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NEWS // 7

Cameron push to halt VDL RICHARD MEREDITH

TASMANIAN BASED

business woman Jan Cameron was in Canberra last week lobbying to stop the sale of Van Diemens Land (VDL) Company to Chinese entrepreneur Lu Xianfeng. The current owner, New Zealand’s New Plymouth District Council’s Taranaki Investment Management Ltd, has sold the business – comprising 30,000 cows covering 20,000ha over 25 farms on the far northwest coast of Tasmania, to Mr Lu’s Moon Lake Investments for $280 million, $30 million more than the failed TasFoods bid in which Ms Cameron was an investor. The sale is subject to a decision of the Foreign Investment Review Board, which was expected at the end of January. At the 11th hour Ms Cameron has launched a new proposal through which she plans to underwrite a ‘locallyowned’ bid that will match the Moon Lake offer. According to her office, Ms Cameron wants Treasurer Scott Morrison to step in as he did with the mooted sale of the Kidman properties to the Chinese. Ms Cameron’s media spokesperson declined to comment on the progress of the lobbying blitz, referring Dairy News to an article in The Australian on February 2 in which Ms Cameron is quoted as saying: “The Chinese are under so much pressure to feed their 1.2 billion people, they’re acquiring the land they need to control the agricultural production. They’re doing this for their food security at the cost of our food security... Once the Chinese buy this land, it will never be resold.’’ The article says Ms Cameron is “claiming the Chinese entrepreneur who has agreed to buy the business for $280 million is a front for the Chinese state”. Mr Lu, 45, who purchased an 85% stake in Australia’s Kresta Blinds in 2014, made his fortune

retailing seafood in China “While we’d love to see the nationalistic fervour Graeme Wood to turn before founding the opposing the the old Gunns woodchip it Australian owned, Jan sunshade manufacturer sale to Mr Lu, in an mill on Tasmania’s east Cameron’s track record APLUS. His spokesman coast into a tourist resort, attempt to put pressure on environmental issues told the Australian media and at Triabunna has on the government to before the two fell out. Mr Lu was keen to find intervene. Tasmanian Liberal turned many Tasmanians other opportunities on They include Senator Eric Abetz against her.” the island state. Tasmanian independent weighed in, “Our plan senator, Andrew Wilkie, labelling Ms is to invest in Nick Xenophon (SA), Cameron’s “Our plan is to invest in the property; John Madigan (Vic), campaign the property; we believe we believe Jacquie Lambie (Tas) as “almost there is massive there is massive potential and Glenn Lazarus (Qld). xenophobic” potential there The Greens have referred and “a deeply there and so we want and so we want the proposed VDL sale to troubling to unlock that and we to unlock that a Senate committee. attempt to have the capacity to and we have Tasmanian Greens circumvent bring in any required the capacity proper process.” Senator Peter Whishto bring in any Wilson said the He warned capital to do that.” required capital committee would the “cringe– Moon Lake Investments to do that,” the seek submissions and worthy” spokesman said. details from a range of campaign could Circular stakeholders around prejudice the Head mayor Daryl potential concerns. advantages conferred on Ms Cameron, Quilliam said: “The fear “As far as I know the Tasmania from free-trade the founder of the that Chinese people will senators haven’t spoken agreements with China, Kathmandu outdoor come and work on the to him (Lu)” Mr Quilliam Japan and Korea. clothing which she sold farm and take Tasmanian in 2006, was earlier said. “They certainly A bevy of jobs is ludicrous. I’m haven’t spoken to me.” independents senators involved in a joint bid not fearful at all. I think Dairy industry bodies, have added their voices to with Wotif founder there’ll be more dairies and more local jobs and they’ll look after the land.” Feelings have been running high on the north-west coast. “There is community support for Mr Lu’s proposal,” Mr Quilliam said. “He wants to develop tourism; he’ll spend money developing the dairy property and irrigation systems. He’ll leave some bush and fence off the Tasmanian devil habitat area. “He’s met with council and we’ve seen some of his plans, which are not publicly available. He’s going to keep the present management.” Side Feed According to the 2000 Wagon Tasmanian The Mercury newspaper the Circular Head Progress Group has warned potential investors not to get involved with Ms Cameron’s proposal saying her potential investment in Australia’s largest dairy farm would not be welcomed. “There would be a community backlash against anyone involving themselves with her bid,” said group president John McNab. “Banks and other potential investors have now been warned Other models also available that to disregard the community’s feelings Contact ALLAN WILKINSON on this may be at their own peril.” 0400 260 540 | allanapw@gmail.com Mr Quilliam said:

Jan Cameron

Australian Dairy Farmers and Tasmanian Farmers and Graziers said they considered the sale a commercial issue and did not wish to make further comment. Meanwhile, the legal stoush between TasFoods and the owners of VDL over its failed bid to buy the property has been

resolved. In a statement to the ASX, TasFoods announced it had reached a settlement agreement with the current owners of VDL, New Zealand’s New Plymouth District Council. The settlement will see TasFoods get cash compensation of $1.25 million.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

8 // NEWS

Farmers face long recovery after WA blaze CAMERON WILSON

DAIRY FARMERS burnt out by last month’s bush fire in in south-west Western Australia are expecting to feel the impact of the damage for at least another 12 months. The bushfire, which was caused by lightening strike in early January, killed two people and destroyed 140 homes in the town of Yarloop south of Perth. About 400 farms around the shires of Waroona and Harvey were also damaged, including 20 dairy farms. The damage included burnt fencing and loss of standing dry feed and fodder. WAFarmers Dairy Council estimates it will cost the affected dairy farmers an average $70,000 per farm to replace the lost fencing, with the worst hit facing damage bills of about $200,000. Dairy Council president Phil Depiazzi said most farmers were covered by insurance for fodder losses but not for the fencing damage. “Quite a number of the boys have got insurance but not enough to cover the size of the disaster, they are well and truly under insured as far as their fencing goes,” he said.

“Most guys are OK on the fodder side of things, most guys have got insurance there and that’s covered it, plus we’ve had good donations of fodder. “But that might get a bit tight later on because we didn’t have a great finish to the season and because quite a lot of dry feed has been burnt, those guys are going to need hay to get their animals through to the end of May or whenever we get the rain.” Dairy farmers around the area were also forced to dump an estimated 1 million litres of milk after power cuts and road closures disrupted processing and milk collection. Luke and Vicki Fitzpatrick were among the affected farmers, the fire burning paddocks and fencing on their dairy farm about 100km south of Perth. Despite the significant damage to their property, Mr Fitzpatrick said they were among the more fortunate farmers. “I don’t know how the whole farm didn’t go up to be honest, even now there’s black leaves across all the paddocks,” he said. “We didn’t lose any animals, but we lost about 50ha of dry feed and about

5km of fencing.” Mr Fitzpatrick said he has also had to manage animal health problems since the fire, due to his180-head herd missing three successive milkings. “My cell count went from 50 to 300 on that first milking and about a week later I had a mastitis outbreak, which I’ve now got under control,” he said. “I did get five cows with clinical mastitis and one got black mastitis. So it just shows that dairy cows are right on the limit and a bit of stress and things fall over.” While the repairs to fencing and other farm infrastructure are now underway, Mr Fitzpatrick said it could take a year or more for some of the worst affected farms to repair their pastures. “There’s going to be an ongoing loss because you think about the area that’s been burnt, there’s no seed on the ground at all,” he said. “It’s a bit different over here than over in the east, we’ve got annual pastures and we rely on them to drop their seed on the ground so that it all regenerates with the next autumn rain. “Now that’s all gone so it’s basically a clean slate, it’s like concrete, there’s

Luke pictured with his wife Vicki and two children with hay donated by the community after the fire. PHOTOS: SHARON HANNAH

nothing there at all. “It really depends on the individual property, but we could be feeling the affects for a year or more.” Mr Depiazzi said WAFarmers is now seeking cash donations to immediately assist farmers. “The issue is trying to raise funds

and dish it our pretty quickly because the guys are obviously spending money now on fencing and they may have a few cash flow issues if they don’t get a bit of assistance.” Donations can be made via the WAFarmers web page or by calling (08) 9486 2100.

‘THIS FIRE BROUGHT US CLOSER TOGETHER THAN WE EVER THOUGHT POSSIBLE’ DAIRY FARMERS work

hard but nothing can prepare you for a bushfire. Siblings Luke Fitzpatrick and Sharon Hannah (pg 1) spent four days fighting fires last month on the family dairy farm at Waroona, about 100km south of Perth. “We were awake for 40 hours and then had to set our alarm and get up every hour to put out spot fires,” Sharon said. “This fire brought us closer together than we ever thought possible.” The 140ha property was one of 20 dairy farms damaged by the devastating WaroonaHarvey bush fire in early Jan-

uary. The Fitzpatrick’s lost about 5km of fencing and 50ha of pasture, but saved the dairy, livestock and two homes on the property. “I’ll be honest mate, it’s bloody terrifying. I can’t say it clearer than that,” Luke said. “As the fire was coming my wife was putting out spot fires around the house with water out of the pool in a bucket.” Luke’s wife Vicki evacuated with the couple’s two young children. Luke, Sharon and six friends stayed to fight the blaze. “My worker Leigh, he was awesome, and my sister too, she was amazing,” Luke said.

MIX AND MUCK

“It’s emotionally draining because you are on the edge of losing your livelihood and everything you’ve worked for. “It’s really made me realise what a fantastic community we have around here, to have all these people come in to help, it’s quite overwhelming.” Despite the damage Luke considers himself one of the fortunate farmers. “When things had calmed down around here we went into Yarloop and around that area and it made me feel very fortunate, very lucky that someone was on our side because many farmers and the town of Yarloop were annihilated,” he said.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

NEWS  // 9

MG nabs Coles cheese from Bega RICK BAYNE

MURRAY GOULBURN has won the five-

year national private label contract to supply Coles brand Australian cheese, replacing Bega Cheese as the supplier. Bega shares dropped by 11.5% on the back of the news but have since regained some ground. MG managing director Gary Helou said the deal was part of the cooperative’s ongoing push to secure “critical mass” in the Australian dairy foods market and would underpin and support the company’s growth plans. “Ultimately these investments are being made to support our drive

to deliver sustainably higher and more stable farmgate prices and returns over the long term,” Mr Helou said. The deal and plans by MG to invest $145 million in its Cobram cheese plant were welcomed by United Dairyfarmers of Victoria (UDV) president Adam Jenkins who said it should give the industry more certainty. “From a UDV perspective it’s always encouraging when a major processer enters into a long-term contract,” Mr Jenkins said. “It gives us some stability and it’s recognition that the product we make is pretty good. “It’s good to have one of the major Australian producers that’s farmer-

Will $5.60kg/MS hold?

owned take on that challenge.” Mr Jenkins said he didn’t see a problem with MG supplying Coles brand products, which are traditionally marginally cheaper than brand names. “I think it’s quite exciting for them to be playing in this space and have

that long term contract. It bodes well for their suppliers and the industry.” Long-term Bega adviser David Williams said the company was better off without the contract. “If it was up to me, I wouldn’t have even been bidding to keep this contract going because there is just no margin in the

thing for Bega. “My attitude would be get out of there as soon as you can, do your own brand,” Mr Williams told Fairfax media. “This no-margin stuff where you are competing against MG, Fonterra and Saputo, is just not going to make any money. “For me, it’s a nothing

thing, in fact it’s a bloody good thing because we have now got milk that we can put into branded product – stuff we are doing with Blackmores and other deals.” MG started a 10-year partnership with Coles in 2014 to supply daily pasteurised milk for its private label brands in Vic-

toria and NSW. The cheese deal will generate about $130 million in additional sales each year and deliver a stable stream of profits to MG over the life of the contract, according to Mr Helou. • What do you think of the deal? Email editor@ dairynewsaustralia.com.au

Sonik – fast, reliable winter feed

WARRNAMBOOL CHEESE and Butter has told

farmers it is maintaining the opening average price of $5.60kg/MS, saying that world dairy prices seem to have bottomed out and market conditions were relatively stable although there had been little improvement in prices to date. WCB said the market may not see real recovery in the short term and recommended farmers remain cautious in their planning for the remainder of the year. Meanwhile, Fonterra Australia milk supply manager Matt Watt has said it has been conducting its January review and “will communicate the outcome to our suppliers”. “As we flagged in the spring, the price outlook this season is not strong and we are recommending suppliers budget at current farmgate price.” Mr Watt said both domestic and international factors are currently being considered. “The global dairy market has been challenged for over 12 months now, with weaker Asian demand and higher European production off the back of a strong northern hemisphere season contributing to a significant supply-demand imbalance,” he said. UDV president Adam Jenkins said $5.60kg/MS was in line with market expectations though still short of the benchmark $6.05kg/MS farmers were hoping for. “We were hoping for a step-up but that’s not looking likely,” he said. “The market is still very volatile and we understand that, but it’s going to be an interesting autumn in certain areas where it’s so dry that the cost of production of milk will be quite high and we hope they understand that.” Mr Jenkins reiterated his call for early information to help planning. “If it is going to be $5.60 then I applaud the companies for saying where it is. That’s a good early signal. At least you know where you are and if there are no step-ups we can look to the next lot of prices in the New Year. “When they get the indications it’s important that they pass them on as soon as possible so we can all plan forward together.”

Trial Data

To view the performance of Sonik in trials, visit our web site: www.cropmark.com.au/Trial-Data.aspx

Sonik – rapid establishment and strong winter activity Take the worry out of winter feeding. Sonik is the winter feed champion, with rapid establishment and strong growth rates over autumn, winter and spring providing the feed platform you need for great livestock performance.

SONIK IS AVAILABLE FROM YOUR LOCAL SEED MERCHANT OR FARM MERCHANDISE OUTLET

Sonik is ideal for over-sowing into run-out or damaged pastures, rejuvenating paddocks or for full cultivation as short term (1-2 year) specialist pastures. Sonik has excellent tiller density for higher yield, persistence and better ground cover.

For further information on Sonik, contact our regional agronomists: North & East Victoria, NSW: Adam Sheedy – 0428 132 096 Western Districts, SA, Tasmania: Bruce Hume – 0427 607 375

Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037

www.cropmark.com.au

DAIRY NEWS AUSTRALIA FEBRUARY 2016

10 // IDW 2016

Fierce and fearless Bette inspires women in dairy EIGHTY-ONE YEAR

old Bette Hall from Penola in South Australia has some sound advice for women in the dairy industry: “Don’t let the naysayers get to you. Stay positive.” Speaking to the full house at the inaugural Power of Women in Dairying dinner held at International Dairy Week in Tatura on January 19, at which an award was named in her honour, Bette shared memories of her 57-year-long career in the dairy industry – including overseeing the family’s highly successful Palma Holstein stud. She recalled one day a man wrote derogatory comments in the catalogue about her entire sale offering, particularly her best cows. “I looked at what he said and I thought, that says more about you than me really.” Bette is a passionate breeder, astute operator and true lover of Holsteins. “At first we were just a commercial operation, but I suggested to my husband Colin that we could improve the value of our herd by registering, which he agreed to on one condition: that he didn’t have to do any paperwork.” She said she took the time to read everything that was happening in the breed, “particularly the Semex Guide to Balanced

MADELEINE BRENNAN Breeding which I thought was excellent”. She always mated a sire to suit each cow’s unique traits, which she said worked very well “most of the time”. “I love working with cows on a day-by-day basis. I loved buying cattle and if I thought something would suit our herd, I’d buy it.” Bette said she and husband Colin managed a successful operation in what is not ideal dairy country. “We average 620mm a year mainly in the winter months, and five months of the year is without rain,” she said. “But we were able to cut good quantities of silage and hay and always took the time to analyse all the feed and provide for any deficiencies in the grain ration.” When Colin died in 1999, Bette managed the farm for another 12 years before deciding to sell her beloved herd in 2011. The property is currently leased as a beef operation. In one of her many

Lyn Boyd, Bette Hall and Jade Sieben pictured at the IDW Power of Women in Dairying dinner.

canny business decisions, Bette said she waited for the right time to sell her share allocation in Warrnambool Cheese and Butter (WCB). “I made my most money when Saputo bought them out,” she said. “When they got to $9.20, that’s when I sold.” Bette told Dairy News she thought dairying had got harder over the years. “I think it’s very sad that dairy farmers have to work such incredibly long hours for their income, and I think their workload now is quite unrealistic,”

she said. “The price that we get for our product is always too low to pay for the incredible expenses involved in dairying, including the cost of water. “The prices haven’t kept pace with the changes in the industry. “There’s always some reason why we get less for our product.” Paying tribute to Bette on the night, event organiser and Torrumbarry dairy farmer Jade Sieben said Bette was an inspiration.

“I don’t think we had an easier decision than to name this award after you,” Jade said. “You are a great cow woman, a great business women, a great mother and have a great sense of humour. Just what we all aspire to be.” Winner of the Bette Hall Power of Women in Dairy Excellence Award was champion Jersey breeder and Murray Goulburn supplier Lyn Boyd from Brunchilli Farming Trust, Finley, in NSW. Speaking to Dairy News after claiming another vic-

tory at IDW – this time for Brunchilli Excitation Belle who took out the Interbreed Junior Champion Award – Lyn described her love of cows “like a disease”. “I’ve always loved beautiful cows and we love to show,” she said. In 2009, they won all of the in-milk classes at IDW, which she said was “the most wonderful show of our lives”. IDW 2016 still turned out to be a good year, with the her daughter-in-law Brooke’s family taking out the supreme champion

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cow, with Shirlinn Icy Eve, in addition to the junior champion win for Brunchilli. (See more p.22) “The combination of Shirlinn and Brunchilli is pretty good,” Lyn said. Lyn said accepting the Bette Hall was a great honour: “I can die now.” In addition to the award presentation and guest speakers – including local finance guru Tracey Sofra - the event raised funds for a new scholarship which will allow a young woman to attend the World Dairy Expo in Wisconsin, USA.

DAIRY NEWS AUSTRALIA FEBRUARY 2016

IDW 2016  // 11

Kerry McQualter, NAB Agribusiness; Rose Philipzen, Moxey Farms; Carlie Osiurak, NAB Agribusiness.

Joclyn Mackie, Jade Sieben and Robyn Barber.

Zoom – the king of annual ryegrasses TM

Jenny Wilson, Melva Tyson and Sarah Thompson, Murray Dairy at the Power of Women in Dairying dinner.

Event organiser Jade Sieben; Kerry McQualter, NAB Agribusiness; Bette Hall, South Australia.

Trial Data

Kirra Beattie, Kilbarchan Farm, Cobram; Melly Ann Salico, Kilbarchan Farm.

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ZoomTM can provide multiple grazings over autumn and winter before being shut up for high quality silage in the spring.

For further information on Zoom , contact our regional agronomists: North & East Victoria, NSW: Adam Sheedy – 0428 132 096 Western Districts, SA, Tasmania: Bruce Hume – 0427 607 375 TM

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

12 // WORLD

More milk fuels co-op’s growth EUROPEAN DAIRY

cooperative Arla Foods is receiving more milk from farmers than ever before. The co-op also expects its 12,700 farmer owners to ramp up milk production in the coming years. Unveiling its 2020 strategy last month, Arla Foods says the extra milk provides the business with opportunities for global growth to create value for its owners. Since 2007 Arla’s milk volume has grown from 8 billion kgMS to 14 billion kgMS thanks to mergers and (since April 2015), through organic growth in the milk production of Arla’s farmer owners as EU milk quotas no longer exist. It is anticipated that Arla’s farmers will grow their milk production by another 2.5 billion kgMS by 2020, giving Arla more

growth opportunities than ever before. Its new strategy sets out to grow its business in eight global dairy categories and six market regions around the world, as the company moves towards 2020 as one effective and unified. Arla Foods chief executive Peder Tuborgh says while it is launching a new strategy, there is no radical change of direction for Arla. “Over the past years we have prepared for this moment by expanding our size and our competencies. In Strategy 2020 we will focus even more on organic growth and growing our brands through innovation that focuses on what consumers and customers want and need. This will help us create the most profitable growth with our

Peder Tuborgh

farmer owners’ milk,” Mr Tuborgh said. Aria says consumers around the world are looking for ways to make their everyday lives healthier. Arla has now identified eight product categories that will be the central focus for the company’s efforts to shape the dairy market “by offering new products with natural ingredients, great taste and good nutrients that make it easier to live a healthy life.” The eight prioritised

product categories and Arla’s aims are: ■ Butter and spreads: Be global leader in butter and spreads with world class products made from natural ingredients ■ Spreadable cheese: Lead in cream cheese made from natural ingredients and high quality processed cream cheese ■ Speciality cheese: Be leading player in speciality cheese with creatively crafted products and concepts ■ Milk-based beverages: Shape market for nutritious milk-based beverages made from natural ingredients for people on the go ■ Yoghurt: Innovate to build a strong ‘natural goodness’ position for yogurts

Arla Foods is looking to boost growth in six market regions.

Milk and powder: Lead and shape the milk and powder market with nutritious value-added and cost-competitive products ■ Mozzarella: Build global mozzarella position with high quality and cost-competitive products ■ Ingredients: Be the global leader in valueadded whey. “The global dairy industry has developed by a speed seldom seen before, with millions of consumers changing their daily habits and preferences,” he said. “We have analysed consumer needs and trends across dairy categories worldwide and have matched this with our ■

own biggest strengths. This has led us to pursue eight specific categories where we feel Arla can grow a leading position globally or regionally. Our strategic innovation and best resources will be poured into these categories.” Arla will pursue growth in these eight categories primarily through its three global brands of Arla, Lurpak and Castello. It will also focus on six regions. “We have identified the markets in which Arla has the biggest potential to grow a long-term profitable business for our farmer owners. We are stepping up our efforts in the United States and Nigeria, while continuing to build on our

positions in Europe, the Middle East and China. We also remain hopeful that Russia will re-open for business, at which point it will still be a very attractive market for Arla,” Mr Tuborgh said. “We are not pulling out of any markets that are not mentioned, but we will focus our innovation, investments and competences on those lead markets. Over the coming five years we expect about half of our growth to come from outside the EU as we grow market shares while the other half will come from within the EU as we grow in key categories and add value through innovation,” Mr Tuborgh said.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

WORLD  // 13

Farmgate milk price cuts force tough decisions in NZ NEW ZEALAND dairy

farmers will be forced to make more hard decisions in the season ahead, as the country’s processors slash their forecast farmgate milk prices to well below the cost of production. On January 28, Fonterra reduced its forecast farmgate milk price for the 2015/16 season from NZ$4.60/ kgMS to NZ$4.15/kgMS – about $1.25 less than the average break even cost of production of NZ$5.40. The January 28 announcement came as Westland Milk Products and Open Country Dairy also reduced their payout forecasts. DairyNZ said the changes would mean NZ $67,000 less in cash revenue for the average farm producing 150,000kgMS – or NZ$800 million across the sector. Fonterra chairman John Wilson said global economic conditions continued to be challenging and were impacting demand for a range of commodities, including dairy. “Key factors driving dairy demand are declining international oil prices which have weakened the spending power of countries reliant on oil revenues, economic uncertainty in developing economies and a slow recovery of dairy imports into China,” Mr Wilson said. “In addition, the Russian ban on European Union dairy imports continues to push more product on to the world market.” Mr Wilson said there was still an imbalance between supply and demand which continued to put pressure on global milk prices. Since last September, prices on GlobalDairyTrade for whole milk powder (WMP) have fallen 12%, and skim milk powder (SMP) prices are down 8%. “Although New Zealand farmers have responded to lower global prices by reducing supply, that has

yet to happen in other regions, including Europe, where milk volumes have continued to increase,” he said. Chief executive Theo Spierings said while global demand remained sluggish, Fonterra supported the general view that dairy prices will improve later this calendar year. “However, the time frame for supply and demand rebalancing has moved further out and largely depends on a downward correction in EU supply in response to the lower global prices,” Mr Spierings said. “These prices are clearly unsustainably low for farmers globally and cannot continue in the longer term.” He said despite the current challenges, the co-op had confidence long-term international dairy demand will continue its expansion due to a growing world population, increasing middle classes in Asia, urbanisation and favourable demographics. Mr Wilson acknowledged the reduction in the forecast farmgate milk price would be “very tough on our farmers”. “As we confirm the co-op’s performance for the first half of the financial year, we will look at the best way to help our farmers’ cash flows, underpinned by the expected improvement in dividend returns and the financial strength of the cooperative.” Milk production across NZ to the end of December was down 2.6%, with some regions dropping production by up to 9%. Fonterra Shareholders Council chairman Duncan Coull said the drop was a sobering blow. “Looking forward, our farmers will be expecting our cooperative model, which sees shareholders benefit from milk price and the value-add side of the business, to deliver for them in terms of the total available for payout.”

In the interim, he encouraged farmers to seek guidance and support on how to best navigate through the tough times. DairyNZ chief

executive Tim Mackle said tough decisions were being made. “Farmers will be working extremely hard in their businesses and

that can affect health and wellbeing. Many will have to pick up extra work on their farms. Some will be looking for off-farm income opportunities.

They will be looking at all their options and banks will be joining in those conversations,” he said. Mr Mackle said although most farmers

had already done all they can to reduce costs, DairyNZ would be working with farmers to focus on “tight and skilled pasture management”.

The benchmark for production and performance

Trial Data

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Matrix is suitable for all pasture renovation, including over-sowing.

For further information on Matrix, contact our regional agronomists: North & East Victoria, NSW: Adam Sheedy – 0428 132 096 Western Districts, SA, Tasmania: Bruce Hume – 0427 607 375

Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

14 // AROUND THE REGIONS

Tasmania

Murray Dairy

Affected by fires?

Tips in dealing with the dry

THE TASMANIAN Farmers and Graziers Associa-

tion is seeking information from any farmers affected by the recent bushfires. Please let TFGA know if you, your neighbour, or your community has had bushfire damage, including: Infrastructure (fences, buildings), pasture and crop loss, livestock loss, utility issues (power outages, water). The TFGA needs to have an idea of what the damage is and the cost to each business. The information will be collated to demonstrate to Government the extent of the bushfire damage to the sector. Contact TFGA Reception on (03) 6332180 or via reception@tfga.com.au . This image (right) supplied by Dairy Tas is from the Hofings’ farm at Mawbanna, in Tasmania’s central NW region. The Hofings kept a close eye on a fire as it got close to their back fence of the top paddock with young stock. Rain eased the fire threat in some areas of Tasmania, but fire authorities have battled more than 70 fires in January, including the state’s World Heritage Wilderness areas.

A SERIES of Shed Days across the region will provide an opportunity for farmers to share information and get an informal overview of what decisions host farmers have made to deal with the dry season so far and their plans for autumn with water, bought-in feed and pasture management. The Department of Economic Development, Jobs, Transport, Tourism and Resources (DEDJTR) will cover the risks of establishing pastures and the lessons learnt from previous dry seasons. Sessions are being held in Naneella, Finley, Calivil, Stanhope, Waaia, Katamatite, Bamawm, Kyambram and Tongala. Visit www.murraydairy.com.au or phone (03)5833 5312 or admin@murraydairy.com.au

Grinning winners PHILIP AND Edie Bradbury from Harston near Tatura, Victoria are the winners of the classic oval stockfeeder prize delivered on behalf of Waste-Not Stockfeeders and Dairy News Australia at last month’s International Dairy Week. The couple (pictured below), who are retired dairy farmers but still run some Angus cattle, said the feeder will be “very useful” as the old hay ring they were using was wasteful and unsuitable for big square bales. Mr Bradbury said it was “one of the few things we have ever won” and were delighted with the opportunity. He said their granddaughters, from Brunswick in Melbourne, had a hand in the prize, helping the couple get the required signatures at the field day exhibits. www.wastenot.com.au

Western Victoria New face of dairy in Oz WOOLSTHORPE DAIRY farmer

and Victorian Liberal MP for the South-West Coast Roma Britnell (pictured fourth from right), had a busy Australia Day, including attending citizenship ceremonies. “I was very pleased to officially welcome our newest citizens to Australia and to Moyne, from such a diverse range of countries, six of whom are working in the dairy industry. Go the dairy industry South West Coast!”, Mrs Britnell said on her Facebook page.

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AROUND THE REGIONS // 15

Gippsland It’s showtime! THE ANNUAL Korumburra Show will be held February 13-14 at Korumburra Showgrounds, South Gippsland Highway. The show includes an animal nursery, animal events, equine events, exhibitions in the pavilion, amenities complex displays, Miss Showgirl, sideshows, vintage car display, beaut utes, working horse and tractor rally, and a flyball dog competition. Night time events include the South Gippsland Buskers Festival, fireworks display and sideshows. For more email debbejane@bigpond.com The Foster and District Show will be held on Saturday, February 27 at the Foster Showgrounds, Station Rd, Foster, featuring horses, cattle, alpacas, horticulture, food, art and craft exhibits, free family entertainment, show bags and rides, sheaf tossing, dog high jump and more. Visit fostershow.wordpress.com or email fostershow@ gmail.com for more details.

New South Wales Get advice on hiring staff DAIRY NSW will host two webinars about hiring and

retaining staff. On February 10: ‘Attracting staff: Practical tips to recruit the right people to your business’. March 7: ‘Interviewing and selecting staff’. Contact Cam Smith at Dairy NSW for more details or visit www.dairynsw.com.au to register. The sessions will go for one hour and there is no additional charge.

South Australia Event targets niche processors DAIRYSA WILL host a series of presentations and workshops targeting the state’s niche dairy processors followed by dinner and a guest speaker. The forum will help attendees gain insights into how cooperating and collaborating can build a business without compromising competitive edge. What do consumers want? Are you export ready? How do good businesses build resilience? These and other sessions will be covered at the forum on Friday February 26 at the Adelaide Hills Convention Centre in Hahndorf. To register visit http://dairysa-niche-processor-forum. eventbrite.com.au

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

Western Australia Products recalled LION DAIRY and Drinks issued a recall of a number of products manufactured on Saturday, January 23 at its Bentley dairy site in Western Australia “as a precautionary measure”. The company said the recall followed routine internal testing which showed a microbial count in excess of their quality standards. No consumer complaints had been made regarding any of the products at the time the recall was issued (on January 26). Lion said it has undertaken additional testing on all retention samples for these batches, and to date testing has found no evidence of any contaminant known to cause illness. Lion did not provide further comment on the nature of the contamination. Consumer inquiries: 1800 677 852

Sub Tropical Save money on energy costs THE QUEENSLAND Farmers Federation and the Australian Renewable Energy Agency (ARENA) will present a Farming Energy Technology Forum on February 16 at the University of Queensland Gatton campus. The forum will explore the use of a range of renewable energy technologies for process heat and biogas applications on farms and for irrigation systems. Registration is free. Visit www.eventbrite.com.au/e/queenslandfarm-energy-technology-forum-tickets-20858176367

Dairy News AUSTRALIA february 2016

16 //  OPINION Ruminating

EDITORIAL

We are being watched

milking it... A mooving tale A LIFE-SIZED fibreglass cow was stolen from a primary school at Elizabeth Vale, South Australia, after police received a tip-off from a member of the public who had spotted the bovine artwork at a Hillbank address and rang Crime Stoppers. About 9pm on Sunday, December 27, Elizabeth Police attended the home and located the black, green and white cow in the rear yard. The fibreglass cow was stolen from the school in early December. The news was met with a flurry of bad puns on the SA Police Facebook Page such as: “Udderly despicable”, “A mooving tale”, “You are milking this story…” etc etc

Here comes Spider Milk FROM camels to cacti it’s clear there is no end to the weird and wonderful things that can be milked. This time, it’s Australian Tarantulas, the big hairy spiders that nightmares are made of. University of Queensland researchers are milking the furry arachnids in the name of research and the hope the venom might provide useful for a range of medical and biological purposes. A light electric charge is applied to the creature’s 1-1.5cm fangs, causing the muscles to contract and discharge venom into a container. Researchers are regularly bitten in the name of science. It makes the odd kick from a cow seem positively pleasant…

Humans next? THE world’s biggest cloning factory being built in Tianjin, China, will begin cloning cattle in six months. It will have technology sufficiently advanced to replicate humans, the head of the company, Xu Xiaochun, told AFP recently. It aims to clone a million cows a year by 2020 to help meet the rising demand for beef in China, he says. The scientist and entrepreneur says cattle are only the beginning: they plan to clone thoroughbred racehorses, pet dogs and police dogs for searching and sniffing.

Advertising Chris Dingle chris@dairynewsaustralia.com.au

Wisdom of the elders YOU’VE got to hand it to the older generation for never being afraid of telling it like it is. When Dairy News overheard this comment from a grandmother to her grandsons as they looked in the sheds at International Dairy Week last month, we had to have a chuckle: “You can’t be a farmer and not get sh*t on your hands. Trust me.” Presumably the bemused children were not from a farm themselves…

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WE LIVE in an age of scrutiny. From sport to politics to work and home life, it seems almost every news story relates to the increased exposure of formerly private realms to the public sphere in this age of smart phones, You Tube and electronic financial transfers. Just this summer alone we’ve seen phone and bank records uncovered to pursue allegations of match fixing in tennis. Scandals in cricket, soccer and Australian Rules have been similarly exposed. Technology, which initially seems like a benign technology designed to improve efficiency of communication, is actually driving social change by making it easy for anyone to reveal practices they believe unethical and which ultimately damage a sector’s reputation regardless of whether the majority are doing the right thing. Speaking at the launch of a new livestock transport emergency hotline last month Australian Livestock and Rural Transporters Association vice-president Graeme Hoare highlighted the current landscape: “The Australian community is increasingly conscious about animal welfare issues. When incidents occur on the roadside they are highly visible and just about everyone out there has a camera in their pocket,” Mr Hoare said. Yes, it may be the ‘right thing’ to improve the ability of the transport sector to respond to livestock emergencies but was it the threat of public scrutiny that was the real impetus for change? Late last year, New Zealand’s dairy industry was shocked to have distressing ‘undercover’ video of contractors and abattoir workers cruelly mishandling and killing bobby calves. It was not the first time video footage had been used by animal welfare activists to reveal malpractice in the farming sector. This time, however, the industry was well prepared in terms of the procedures and processes it had in place around animal welfare to deal with crisis. It also tackled the issue head on, with members from DairyNZ and the Federated Farmers meeting with members of SAFE to discuss the issues. Without the footage, there may have been no meeting at all. The Australian dairy industry is similarly better prepared, with its Animal Welfare Strategy and calf induction phase out just two examples of its response to community expectations on the issue. Technology is driving change. It is also shaping the narrative. The ship has sailed on whether we want to be scrutinised. The challenge is to ensure all our farms and factories can accept that scrutiny with open arms and therefore shape how our story is told.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

OPINION // 17

Winners and losers of dairy industry is all in the numbers ROSS MCINNES vice-president, Queensland Dairyfarmers’ Organisation

DURING THE recent Coles super-

market vs Campbell Arnott’s marketing dispute around the product Tim Tams, Coles managing director John Durkan made some interesting comments in relation to companies setting prices for their product. Mr Durkan stated there was no justification for Campbell Arnott’s to lift the pricing of some of their biscuit lines by 10%. In the free market of Friedman economics, the very same free markets our major political parties espouse to, a company has every right to set the price for their product. Within this economic model it is up to the consumer decide whether or not they will buy that product at that price and competitive markets sort it out without interference. In theory that is how a free competi-

tive market should work. It’s an interesting comparison then considering Mr Durkan’s reservations of the product supply sector’s right to increase prices. Let’s look at the numbers across some sectors and the increases in prices and income they have seen increase since around say the year 1992: 0% - No increase in milk prices from the regulated price of 1992 in Brisbane to the price of supermarket brands today ($1). +20% - Farmgate price of milk for dairy farmers in southern Queensland going into bottles – this has increased by 20% or about 10 cents per litre since 1992. Out of the 9-10c extra, apart from the increase in input costs, there has been a direct cost of 3-5c due to the increased demands by processors and retailers for longer shelf life milk. This has resulted in more cows culled for mastitis and larger replacement numbers needed. +79% - Consumer Price Index (CPI) increase since 1992.

+80-90% - Increase in Murray Goulburn average export milk price in southern Australia (mainly Victoria and Tasmania). Contrary to claims made by Coles executives that all milk price movements are directly linked to the export price, Murray Goulburn has

“..the supermarket CEOs will continue to laugh all the way to the bank.” seen an average increase of about 3.5% per annum compared with 0.7% in Qld, with domestic and export prices more often moving in opposite directions. +153% - Increase in the average full time wage in Australia from $30,432 to $76,960 since 1992 +188% - Increase in pay of Mem-

bers of House of Representatives and Senators - our elected pollies in Canberra have fared a little better than the average wage with their base salaries increasing from $67,715 to $195,130, with extra allowances on top of that. +700% – This is an estimated increase of executive packages in Australia. The figure however is difficult to quantify give the lack of transparency in executive salary reporting. A Sydney Morning Herald report stated that the average CEO package vs the average wage was 20 times in 1985, peaked at 94 times in 2007 and at 67 times in 2013. The average wage in 1985 was $19,760 so with the multiplier still 67 times that works out at 968%. According to media reports, former Coles boss Ian McLeod in 2013 had a base salary of $1.9million, but with bonuses received $19 million at the end of the year, setting a record for Australia. It is clear who is the main beneficiary of this market domination, particularly when you consider the recent long term contracts to a selected group

of dairy co-ops that supply the supermarket branded milk. Where does the long term milk pricing go with the 10 year contracts that are currently locking $1 milk in place? I doubt that even the most passionate supplier shareholders of the large southern co-op will be happy for their milk to be sold, as the contract wears on, for 80c/litre or less in 2014 value? It is commonly believed that the original deal was signed to allow their branded cheese back on Coles’ shelves after it had been largely removed several years earlier. But the more recent situation of the supermarkets’ store brand cheese taking sales by selling for 30-40% less than theirs may have dampened some of the enthusiasm. One thing is for sure; it is unlikely to propel farmers’ incomes at all, let alone by the national average. One truth remains however and that is that the supermarket CEOs and executives will continue to laugh all the way to the bank.

LETTER A fair payment system is more important than free trade agreements FOR many months now there has been so much huffing and puffing from the ADF, UDV and some high profile people about the benefits of the China Free Trade Agreement for dairy farmers. This will prove to be like other free trade

agreements (FTAs), a big con job that will deliver not one cent extra to farmers. So why do these people keep flogging a dead horse and at the same time do nothing about things like the corrupt payment system we have for our milk?

On a shopping docket from our local IGA store, two items caught my eye: Item one was skim milk powder (SMP) which cost $6990 per tonne equivalent. For this, I as a dairy farmer received $8360 per tonne. Forget about the processors’ cost

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of collection, processing and distributing plus retail margin – the loss is $1370. It is also well known that all our warehouses are full of SMP. Item two was butter, which cost $12,360 per tonne. For this I received $3340 per

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percentage, should we also be looking at collusion? Under this system, the average Jersey farmer will be losing $700 per week or more. In the December issue of Dairy News (page 4) the new ADF president Simone

Jolliffe said she was ready to represent. My question is: Who? Collusion and corruption, or truth and future? The time has come for a full government enquiry into the dairy industry. -Alec McKenzie, Timboon, VIC

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Dairy News AUSTRALIA february 2016

18 //  markets

Price slump not unique to dairy THE world economy has veered into some difficult and dangerous waters, suggesting 2016 will be a long hard year of slow recovery in prices in global food commodity markets – including dairy. The perfect storm has struck. Major food and oilseed commodity prices are at low points in the cycle with inventories high. It’s not just food of course, oil and other major metal commodities are at prices not seen for about a decade. On the demand side, China, the largest growth economy in the world, has the brakes on. This year started with little change in OPEC’s production stance, and little hope for collaboration given new tensions between Saudi Arabia and Iran. The outlook suggests a sustained petroleum glut, unless there is a strong surge in demand – which I’ll come back to later. This is playing out like a “game theory” case study. The OPEC cartel started a price war to dominate the global energy market in the third quarter of 2014, signalling their intent to increase production and drive out competing alternate low-cost technologies (such as shale oil) and renewable production using corn and soybeans. So much for the planet! This is about short-term painful price competition to knock out rivals, and ensure a finite energy resource remains the dominant choice for industry and consumers. Prices have been driven to levels not seen since 2004, well below

fresh agenda steve spencer the supposed break-even costs of production of crude oil for most major exporters. Historically, there has long been a close correlation between crude oil prices and the prices for major food commodities, including dairy ingredients and feed grains. On the demand side it makes sense – weak economic activity reduces demand for fuel and can weaken some food markets. While the trends lines move uncannily together, it doesn’t mean oil is behind the changes in dairy and grain prices. Dairy prices have slumped low due to excessive supply from abundant grass growth, low feed grain prices and the loss of a couple of big buyers from the global market. Grains and oilseeds markets are well-supplied due to good weather in most major regions – our enemy El Nino tends to be kind to many Northern

Hemisphere producers. Low oil prices can be a friend to dairy producers. Cheap fuel can lower the costs of milk production, reducing equipment and energy costs as well as the cost of fertiliser. Low crude oil prices also make biofuel production less attractive, potentially ensuring more feed supplies which helps support margins, even when dairy prices fall. This has certainly been the case for Northern Hemisphere suppliers. However, low oil prices have mixed effects on dairy markets. In the developed EU and US economies, cheap fuel improves household budgets, freeing up a bit more cash for dining out. We’ve already seen US food service grow strongly in 2015 soaking up more cheese and milk. The question is whether it can keep that growth rate surging in 2016. Lower fuel costs can improve economic prospects for countries dependent on fuel imports, lowering overall costs of manufacturing and transport, including shipping and improving the affordability of dairy imports. On the other hand, there are risks for dairy demand, as low oil prices can harm the economies in some major oil-producing regions which are also large dairy importers, such as those in the Middle East, North Africa (together known as MENA), Russia and Venezuela.

Low oil prices have combined with sanctions to weaken the Russian economy, and have made a bad financial situation far worse in Venezuela. The effect in these dairy markets will be uneven and hard to predict, as the dependence on oil, production costs, government food buying activities and the financial states of oil economies vary significantly. But the developing world including MENA has a number of large dairy buyers that are also oil importers whose economies should benefit from lower fuel and energy costs. Weak oil prices meanwhile also ensure low prices for palm oil, used widely as a competitor and substitute for dairy ingredients. So on balance – what does the future hold for oil prices and the global economy? One important but odd indicator of economic conditions is the Baltic Dry Index of shipping costs. The index has long been a forward indicator of the fortunes of the world economy, and is now the lowest since its inception in 1985. This largely reflects the slowing of trade in and out of China as it transitions to a consumer-led economy from a trade-driven one. It also reflects the build-up of capacity with the promise that China (and its hunger for two-way trade) would just keep growing. The index suggests the demand side of the oil market will be sluggish for some time.

This points to a bigger worry, that the world economy will be adversely affected by the slowing of China – more than the economists at the IMF and World Bank are currently suggesting. Metal commodity prices are low largely because construction activity and industrial output in China have stalled. Low metal commodity markets can harm several developed and developing economies, weakening investment activity and trickling down to affect household sentiment and discretionary spending. Post-mining-boom Australia is a good example of this. The US is another, with analysis suggesting that low oil prices are likely to hurt rather than help that economy if they stay lower longer, despite lower costs of running SUVs and road transport fleets. So dairy commodities are not alone as bottom-dwellers – most hard and soft commodity prices are at historic lows, for many reasons – including some that are interrelated. The unwinding of this situation is the same for them as it is for dairy. Dairy demand will be stimulated with more affordable food and consumer goods. Low milk prices will eventually discourage production, supply will slow and stockpiles will reduce to normal levels. The sobering reality for dairy is that these effects may take all of 2016 to develop and then some.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

MARKETS // 19

Here we go again…. Export demand remains strong Dairy NewS aUSTraLia june, 2012

agribusiness // 17

The stability of the many feared earlier in the milk production the could see volumes prove cents/litre in March (AUDfor 41c/L) to 28 incremental change in milk production (year-on-year) Euro cents/litre (AUD 36c/L) in April. ending, domestic market, the season. season to June. more resilient later in have enteredweeks 2016from with anattention is now Profit margins are under pressure in the focused on 2012/13 milk prices as farmtrend towards value However, the tectonic milk flows the season, but even a all-too-familiar outlook. US, Lower and in NZ Fonterra has announced ers consider strategies for the coming the final payout for the 2011/12 season year. In some domestically-focused adding for export, and pressures of European have given Australian recovery through this Internationally, has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incorgLobaL impacT (with more rain) some expansion and sluggish processors room to period would be too late prices remain depressed to NZ$6.45-$6.55/kg MS (AUD$4.96porating lower prices and reduced ‘tier JohN DropperT $5.04). one’ access are undermining farmer input cost relief will all demand from key markets move in adjusting their to offset volumes lost to a – as evidenced by Effectively, global dairy markets are confidence and supply stability. For GLOBAL IMPACT rebalancing. mix Lowerto prices will both private label DROPPERT contracts and profarmers in export-oriented Shifts inJOHN prove valuable as the look set to keep any product optimise slow spring and summer. price falls formany all three slow production growth and stimulate regions, a lower price outlook relative to cessor rationalisation have seen milk Australian industry ‘plays recovery in international returns to ultiDairy Australia’s GlobalDairyTrade (GDT) demand, andin as response this occurs we will the current season not only adds to the companies adjust their intake requiremately see a price recovery. Key factors of doing business, but seems ments and pricing to meet the changthe long game’ in the markets at bay for some lower commodity prices, expectation for 2015/16 auctions for challenges the calendar to watch on the global scene will be the to contradict the positive medium term ing demands of a highly pressured retail hasdemand plummeted following months ahead. time to come. avoiding theproduction ‘step down’ is an overall decrease in year so far. outlook of Asia-driven dairy An ‘average’ autumn rate at which milk overseas marketplace. Lower contract prices and slows in response to lower prices, the a lackon of alternative the embargo major supply opportuniTogether growth. with Dairy Australia’s indicative outlook ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries (western) exporters, challenging seasonal manufacturing capacity. Despite is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of for southern farm gate milk prices – limited published in the recent Dairy 2012: Sit- these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value now considered likely to conditions and uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. persist asita late 2018. and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced Demand for exported dairy prodstubbornly high input dairyas consumption opening price range of $4.05-$4.40/kg 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. The Australian market costs, this has tightened 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 large emerging markets such as China, tip in favour of buyers in dairy marthis season up 10% on last year a huge In the seasons following the 2008 report considers the wider market picremains a steady outlet pressure on Australian ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing well half ofrecovery, the farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction farmers’ margins, despite modity price at play; the key theme of thefor current sit- over regions have seen solid ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Locally, being that in the export-oriented industry’s milk. the bufferinguation effects of aof re-balancing 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. Supermarket stable domestic competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perIn market regions of Australia focused on higher-costsales have subsequently been reduced in capita consumption. Whilst the dairy ern Hemisphere producing drinking milk, many farmers of the major dairy amongst those expand- ing South America. and a more favourable Despite wider economic uncer- most exporting regions. The average market is currently a challenging place face a re-balancing market in the form ing output as their margins increased. categories displayed exchange rate. season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that balof renegotiation of supply contracts This 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. divergent trends over the But whileand southern hemisphere exporters are most recent 12 month experiencing a noticeable period. While dairy spreads supply response, continue to grow strongly, growth in the northern ASEAN-Australia-New austraLian DairY, milk and cheese sales hemisphere persists. rice and wine exporters to Zealand FTA (AANZFTA). are sales In particular, European “Protectionistas sentiMalaysia are the biggest are steadier, ment over agricultural winners in a free trade values for yoghurt and milk production goods is rife and growagreement (FTA) signed snacks, although continues tobetween rise; the two coun- dairy ing across the globe, so to provide portion pack austraLian FooD in this context it is pleas(200-330ml) configuratries last month. company Freedom Foods volumes continue to seemingly impervious to ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a to forge an agreement seven years of negotia- shrink. new milk processing plant ucts. global market influences. with Malaysia that has The NSW location will tions, allows a liberalised to cash in on growing Atwith farm With the northern dealt somelevel, sensiprovide access to the most licensing arrangement demand in Asia. tive agricultural issues for Australian liquid milk Australian The plant, to be built in sustainable and economic milk spring flush just around not effectively covered by exporters and allows southeast Australia, will be source of milk. Pactum has production the corner, the global AANZFTA,” saysfinished Fraser. strong links to the Austraaccess for higher value the first Australian greenSealing the deal: Malaysian trade minister Mustapha Mohamed “While under the down retail products. fields expansion in UHT in lian dairy industry and will December 2015 industry is again seeing with Australian counterpart Craig Emerson after signing the deal. AANZFTA agreement expand its arrangements It guarantees Aus10 years. 0.2% for the season to the prospecttralian of stronger most of Australian agriwith dairy farmers for wine exporters Freedom’s wholly but also through technical Despite the compleers through streamlining culture’s key interests supply of milk. The new the best tariff treatment owned subsidiary Pactum date, and down 4.6% for prices pushed back. or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, plant will increase scope Malaysia gives any counAustralia will run the much remains to be done border’ restrictions.” the month itself. dairy and rice are two sec- laration processes and try. It also allows open plant. Some of its products for Australian milk supply Ongoing supply The FTA was signed on for Australia’s farmers to improved marketing – value-added, sustainable arrangements from tors where incremental will be sold in Australia. A solid start to the growth is theaccess prominent May 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improveand export focused. 2023 for Australian rice The company says by Australia’s Trade and of the Asian region and commodities. ments have been negotiInitially the plant will with all tariffs eliminated given Asian consumfactor keeping the market season was followed Competiveness MinisThe Malaysian market beyond. ated under the Malaysian produce 250ml and 1L by 2026. ers’ rising incomes and slowing growth is worth about A$1 bildepressed, butThe prices ter Craig Emerson and his He says the NFF will UHT packs from a process National Farmers’ byFTA. improving diets, demand Malaysian counterpart now throw its attention lion into Australia agricul“This trade deal wasthanks line capable of 100 milFederation says the trade through there will grow for qualspring, are ultimately a function towards ensuring agricul- Mustapa Mohamed. tural exports – including also particularly imporlion L. The processing and deal will improve interity dairy products from margins dry its fourth-largest of the supply/demand Emerson says Australia ture remains front and tant for sectors such and being national market access tighter low-cost production bases packaging plant will emit centre in completed FTAs will be as well-positioned sugar export market and as dairy that have been many less carbon, use less water, Australian agricultural conditions such as Australia, whose across balance, andfor dairy in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disand be more energy-effigoods. milk is well regarded. demand hasn’t“After kept pace. as Malaysia’s closest tradChina and Indonesia as market. advantage in Malaysia cient than equivalent seven years of regions. The new plant will ing partners in ASEAN, With an annual economic immediate priorities. compared with New ZeaUHT facilities in Austranegotiation, the NFF is allow Pactum to meet December was Demand growth tends “These are all markets and in some cases better. growth at about 5%, land which already has lia and SE Asia. Pactum under no illusion of how growing demand for The FTA will guarantee Malaysia forms an impor- with enormous growth a completed FTA expects site preparation to challenging it has been to generally UHT dairy milk, and add hotwith and dry, to be less volatile than tariff-free entry for 97.6% opportunities and where tant part of the ‘Asian Malaysia in place.” begin in October 2012 and complete this FTA with to capacity for valueJanuary offered that of supply; priceNFF vice presi- whilst of current goods exports significant barriers to Century’ story and the The FTA also sigstart-up by mid-2013. Malaysia,” added beverages at nals some administrative Pactum makes UHT dent Duncan Fraser says. little its Sydney factory. Pactum relief; cooler opportunity this presents trade in agriculture still from Australia once it volatility is often caused enters into force. This will for Australian agricultural exist, not only through benefits for Austraproducts for private label The FTA will fill a is expanding its capabiliand rainfall by supply overshooting, rise to 99% by 2017. tariffs that restrict trade producers, says Fraser. lian agricultural exportand proprietary customers. number of gaps within the temperatures ties at the Sydney plant towards the end of the then falling short of month may provide the demand. 016-017.indd 17 6/06/12 1:41 PM reprieve many farmers In recent months, have been waiting for. growth in global demand Queensland is seeing the has been relatively small, largely coming from price impact of further industry exits, whilst Western sensitive countries, and Australia continues to been on a slowing trend grow (albeit more slowly) as inventories have built as a result of the high up. Many south-east prices on offer to many Asian countries continue Dairy News Australia will focus on new pasture varieties farmers. to stock up on relatively in our March issue to capitalise on rising farmer interest. Elevated prices for affordable dairy products, This special report will update farmers on new varieties of grain and hay, combined while the pace of exports pasture seeds, recent trial results, and sowing and fertiliser hints. with lower milk prices, to the Middle East has It will also include case studies featuring farmers who have have reduced the scope moderated. and incentive for farmers Subdued demand had success with newer varieties. to draw on alternative from Greater China BOOKING DEADLINE: February 24 MATERIAL DEADLINE: March 1 feed sources to maintain remains a feature, while PUBLISHED: March 8 or grow production. on the other hand, global CONTACT: CHRIS DINGLE At the same time, exports to Japan have T: 0417 735 001 high beef prices have demonstrated their strongest growth in years. encouraged many to cull E: chris@dairynewsaustralia.com.au underperforming cows. Demand from Russia, Early action by many hitherto the world’s brought forward the second largest single volume impact. country dairy market, DAIRY MARKETS With season 2011/12 only a few

Malaysia FTA benefits dairy Freedom

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Dairy News AUSTRALIA february 2016

20 //  management

Efficiency at the heart of d gordon collie

GRANT Wieck is a fourth generation dairy farmer, with the Wieck family settling in the Darling Downs in 1921. The dairy herd expanded up over 100 cows in the 1990s with the acquisition of more land aiming at feed selfsufficiency. The current aggregation is about 800ha of which 450ha is devoted to cropping and 200ha to silage production. “Our natural grass pasture is not very

productive and we don’t rely on it at all,” Noel said. Growing ryegrass or lucerne is ruled out due to insufficient water. “There has been a long term change in seasonal patterns and we can’t produce milk from a continuous supply of rain-grown green feed any more. Our rainfall is just too variable. We had two effective falls last year and only one so far this year,” Grant said. With increasing reliance on feeding a mixed ration, the family started planning to build an all-weather concrete feed pad.

Six large ceiling fans operate non-stop during hot weather.

Who:

Wieck family Where:

Bymaroo, Qld What:

Modernisation

Grant said they considered setting columns for a roof to be added at a later stage. Then the idea of building a large free stall barn evolved and discussion of future robotics quickly became a reality. “It became the best option for us to build the whole facility at once,” he said. Their project is very much an international effort. The roof design is from the USA, the cow stalls and bedding from Canada

with an Irish feed mixing system and Dutch milking robots only the second in Australia. The complex is 125m long and 25m wide to the roof columns with a 2.5m roof overhang covering the feed pads down either side. The massive roof is 4.2m high at the eves and 12m in the middle with an open ridge cap providing a one metre ventilation gap. “We thought that would allow sufficient air flow, but there were some hot days last summer. The cows were not eating and production took a real hit,” Grant said. This led to the installation of six 7.2m diameter ceiling fans which operate nonstop during hot weather and have been regularly switched on to refresh the air in the shed. The shed is fitted with 266 cow stalls with 10 veterinary stalls in the centre of the complex adjacent to the robotic dairy. The stalls are The free stall barn is fitted with 266 cow stalls with 10 veterinary stalls in the centre of the complex adjacent to the robotic dairy.

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Noel and Faye, Kylie and Grant Wieck in their robotic dairy. Pictures: Gordon Collie.

configured in two head to head rows the length of the shed either side of a central laneway. With crossover lanes and feedpad access lanes also the length of the shed, cattle have plenty of room to move about freely. The cow bedding is a mat comprising shredded car tyre infill with an 18mm coarse particle foam layer and an impervious polyvinyl cover. The bedding is covered in a thin layer of sawdust mixed with lime. The soiled back end of the stall is cleaned with a mechanical sweeper each morning and fresh sawdust applied.

Grant said with limited water supply they decided to install automatic manure scrapers which traverse the three main

The dairy includes solar power and water harvesting to make the most of every resource.

laneways every two hours, taking about 40 minutes to travel the length of the shed. “We were looking at

DAIRY NEWS AUSTRALIA FEBRUARY 2016

MANAGEMENT // 21

dairy upgrade a water demand about a megalitre a week to install a flood wash system and were pretty wary of such a big water commitment,” Grant said. The shed manure is scraped into pits from where it is regularly shifted with a front end loader and spread over a drying pad. The manure is then stockpiled for spreading over the paddocks as a valuable nutrient supplement. “We have been milking about 200 cows during the transition to robotics and when the shed is at full capacity we think annual manure production will be about 5000 tonnes,” Grant said. Two Insentec Dutch robots were installed with each serving two milking stalls. Fresh cows can milk as often as every four hours with the interval lengthened up to nine hours as the lactation progresses. Milk production which had been averaging in the low to mid 20 litres a day had yet to improve in the new system. “But we think it is quite possible to see our moderately-sized red cows achieving a daily average in the high 20 litres once they settle in,” Grant said.

Grain, predominantly milled wheat, and meal is fed while the cows are milking with eight main combinations selected electronically based on milk production. Home grown silage is the core of their mixed feed ration with pit storage capacity of about 3500 tonnes. They make the best of a limited irrigation supply with a centre pivot which can be shifted between three sites. Barley, corn and sorghum are all grown for silage and a percentage of green chop up to 20% dry matter is incorporated in the daily feed mix. Grant said they were happy with total feed costs running at about $5 per cow per day. This figure has been as low as $3.70 when they are growing all their own feed. A 30Kw solar system was installed on the new roof which has halved the power cost of their dairy and barn. Tube coolers are a feature of their robot milkers with ambient water plumbed in under the floor to assist cooling. From the milkers, all refrigeration is achieved using chilled glycol with another stage of tube coolers further reducing the milk temperature to

Home grown silage is the core of their mixed feed ration with pit storage capacity of about 3500 tonnes.

around 7 to 8°C when it goes into the vat. The direct expansion vats have been converted to cool with glycol and a coldroom is also run with chilled glycol. Grant said the family was still on a steep learning curve with

their new system with herd management and reproduction emerging as critical issues to lifting production. “We’ve got tremendous potential and I’d like to think we can realise a lot of it in another 12 months,” he said.

Automatic manure scrapers which traverse the three main laneways every two hours, taking about 40 minutes to travel the length of the shed.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

22 // BREEDING MANAGEMENT

Jersey reigns supreme at IDW THE JERSEY breed reigned supreme

at International Dairy Week after a 91/2-year-old cow was named Interbreed Grand Champion in Tatura. Excitement built as IDW director Brian Leslie announced there was a tie between the eventual winner, Shirlinn Icy Eve EX95, and the Holstein supreme cow, Windy Vale Contender Rose. A countback of first preference votes was required to split the two.

1

Australia Grand Champion sponsored by Royal Agricultural Society of Victoria is Shirlinn Icy Eve Shirlinn Jerseys from Tamworth NSW.

2

Grand Champion Ayrshire Exhibit - presented by Australian Ayrshires is Cher-Bar Rippa Lasselle C Liebich Jervois SA.

3

Grand Champion Holstein - Paringa Holsteins, Invergordon.

4

Grand Champion Illawara Llandovery Ja-Bob Stella - Hayes Family Girgarre VIC

5

Grand Champion Brown Swiss Exhibit - Tandara Dynasty Fortuna 2 - Tandara Brown Swiss Dingee VIC

6

Grand Champion Guernsey Wintergreen Brave Weave, Joyce Family, Kyabram, VIC.

Shirlinn Icy Eve EX95 is Australia’s highest classified Jersey, and won champion jersey and supreme champion all breeds at the Sydney Royal from 201214. She was exhibited by father and son, Brian and Todd Wilson. The Grand Champion Holstein was awarded to the intermediate champion, Paringa Fever Opa, exhibited by Paringa Holsteins, Invergordon.

In a change to this year’s IDW, the senior champions competed for the Royal Agricultural Society of Victoria senior interbreed title. This was because in-milk cows are no longer shown at the Royal Melbourne Show. In the past, the best exhibit from each breed would compete for the IDW Australian Grand Champion title. The champion Ayrshire was awarded

to Cher-Bar Rippa Lasselle, exhibited by Cheryl Liebich, of Boldview farms, from Jervois, SA. The champion Guernsey went to Wintergreen Brave Weave, owned by the Joyce family, of Kyabram, and Kevin Gass. The Hayes family, Llandovery Illawarras, Girgarre, won all three champion titles for the Illawarra breed. Grand champion was awarded to the champion

cow, Llandovery Ja-Bob Stella. Another exhibitor that swept the pool was the Govett family, Tandara Brown Swiss, Dingee, who won ribbons for champion cow, intermediate champion and reserve junior champion, among others. The champion Brown Swiss exhibit was awarded to Tandara Dynasty Fortuna 2. The Govetts also claimed the champion ribbons at last year’s IDW.

2

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PHOTOS: FLEUR FERGUSON

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

BREEDING MANAGEMENT // 23

30 million reasons to use more AI “IF YOU invest dollars and a little more time in AI and genetics you will make more money, it is that simple,” said Dairy Australia program manager for genetics and data management Matthew Shaffer. The statistic was revealed in the Australian Dairy Herd Improvement Report 2015 which analysed the productivity of AI bred Holstein and Jersey cows in the national herd of herd recorded cows. The total number of Jersey cows in this analysis was 55,633 (35,199 AI bred, 20,434 naturally bred) and the number of Holstein cows was 315,574 (219,303 AI bred and 96,271 naturally bred). The average value of the extra annual production for each AI bred Jersey and Holstein cow was $234 and $288 respectively, making a grand total of over $30 million ($5 million for Jerseys, $28 million for Holsteins) of lost production every year for the naturally bred herd recorded cows. Dairy Australia’s Mat-

thew Shaffer and Michelle Axford of the Australian Dairy Herd Improvement Scheme (ADHIS) recommend farmers ensure they have enough replacements sired by AI bulls from the Good Bulls Guide. “Having the right genetics makes all the difference not only in terms of your cow’s health, temperament and milk production outcomes but also the bottom-line profit you can make in your farm business,” said Mr Shaffer. “Don’t fall short with your AI program and give it that extra bit of time as the upfront costs will pay dividends for over the lifetime of the cow.” Ms Axford said in 2015, for example, AI bred Australian Holsteins produced 25kg of more fat and 23kg more protein than those naturally bred, creating an additional annual production value of about $288 per cow. “The figures are a little lower for AI bred Jerseys, but no less impressive and that means if you have 100

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more AI bred Holstein or Jersey cows in your herd, you can expect between $23,400 and $28,800 of extra production value every year,” she said. • Source: Dairy Australia.

AI bred Australian Holsteins produced 25kg of more fat and 23kg more protein than those naturally bred.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

24 //  ANIMAL HEALTH

Considered feeding fortified milk? In recent times, there has been much discussion relating to enhanced nutrition (or accelerated growth programs) in milk-fed calves. One option to achieve this is by feeding fortified milk. This article gives an overview of fortified milk feeding and the factors to be considered prior to starting a program. What is ‘enhanced nutrition’? Enhanced nutrition systems aim to increase calf dry matter intake from milk or milk replacer through the provision of a higher daily volume split over more feeds or by feeding a milk feed that has a higher overall total solids component. What are the potential benefits of pre-weaning enhanced nutrition? Pre-weaning nutrition and thus pre-weaning average daily gain (ADG) has lasting effects on subsequent lactation and reproductive performance. Many studies have investigated the positive effect of increased energy and protein intake during the pre-weaning period on days to puberty, days to conception, calving live weight and first lactation milk production. It has been estimated that for every additional 0.1kg per day of pre-weaning ADG, there is an increase in first lactation milk yield of 155kg. Calves fed on a higher plane of nutrition during this period are able to combat disease challenges better than calves fed on a lower plane of nutrition. What is fortified milk? Fortified milk is “the addition of calf milk replacer to whole milk”. This provides a high energy, high protein feed in a smaller volume than would otherwise be required to achieve a similar nutritional content if using whole milk or calf milk replacer alone. High protein and energy allows optimal growth rates to be achieved without the need to feed high volumes of milk. Feeding fortified milk can help overcome the challenges associated with high volume feeding programs which rely on feeding 20-25% body weight in milk volume daily. Whole milk is about 12.7% dry matter which is made up of protein, fat, lactose and minerals. In comparison, fortified milk can be fed at 14-19% dry matter, containing more energy and protein than an equivalent volume of whole milk alone. Considerations before feeding fortified milk Unfortunately there is no ‘one size fits all’ protocol for feeding fortified milk to dairy calves. Every farm is different and the

Cool cows critical to keeping milk levels high THE IMPACTS hot weather can have on milking

dictate the evenoptimal program tual mix rate of the will depend on fortified milk. the farm’s current High volumes feeding system, of a high total frequency of feedsolids milk feed ing, protein:fat can increase the ratio of the milk risk of abomasal replacer utilised, bloat, bacterial and the nature of overgrowth and the milk to which diarrhoea. the milk replacer THE VET GROUP GEMMA CHUCK The volume is added. threshold will Farms with depend on the individual feeding systems, such as individual pens, overall total solids of the fortified locking head bails or stalls, have milk being fed, which will be depenan advantage over group feeding dent on the above criteria. Many brands of milk replacer systems in that an exact known volume of milk can be fed to each are available and unfortunately they differ in the protein: fat concalf every day. This is especially important in tent, thus adding to the confusion fortified milk feeding programs as of fortified milk even further. One brand can rarely be substiconsumption of large volumes of fortified milk in a single feed can tuted for another and one brand result in diarrhoea and/or aboma- should be used consistently to avoid complications due to changes sal bloat. If only group feeding is avail- to a different replacer. The protein and fat concentraable, then there must be careful consideration of the frequency tion of the milk replacer contribute of feeding, the calf milk replacer to the overall total solids concenused and the mix rate to which it is tration of the fortified milk feed and differences in these will result added to whole milk. Regardless of feeding system, ad in a difference in overall total solids lib fresh water must be available to for the same mix rate. For example, 75g of a 20:20 (20% protein, 20% all calves from birth. Feeding of fortified milk to fat) milk replacer added to 1 litre of groups of more than 10 calves is whole milk (estimated total solids strongly discouraged as there will of 12.7%) will result in overall total be minimal control over the vol- solids of 18.8%. However, if the same mix rate is umes consumed by each calf. Frequency of feeding will also used with a 28:22 (28% protein, 22%

fat) milk replacer, the overall total solids will be 19.6%. Additives to milk replacer such as pre-biotics, pro-biotics and coccidiostats can also increase the overall total solids but their volume of contribution is unknown. The overall estimation of total solids concentration is just that: estimation. It is based on the total solids of whole milk being 12.7%. However, if milk from the second to eighth milking after calving are used (transition milk), total solids concentration may be higher (~19%). This will increase the overall total solids of fortified milk even further. Whole milk from Jersey breed cows tends to be higher in total solids and this needs to also be considered prior to embarking on a fortified milk feed program. Fortified milk has been used very successfully in many dairy herds. The latest research in Australia demonstrates important increases in growth rates during the preweaning period compared to calves fed on conventional diets. The potential benefits in our Australian pasture-based system are also yet to be determined and further research is required to assess if fortified milk feeding programs are cost-effective when all benefits and costs are considered. It is recommended to discuss fortified milk feeding options with your health advisor prior to embarking on a tailored program.

herds are well-known and dairy farmers throughout mainland Australia employ shade and evaporative cooling, with supporting herd management strategies, to prevent heat stress and keep their milking cows both fully productive and comfortable. The effects of heat stress on dry cows – those in the last two months of pregnancy - have been less well understood, but recent research has brought to light new findings, according to Dr Steve Little, Capacity+ Ag Consulting, for Dairy Australia. “The research clearly shows that if cows suffer heat stress through the dry period it affects the development of their udder and placenta and suppresses their immune system,” Steve said. “Heat stress on dry cows has a dramatic effect on the development of mammary tissue in the udder and that leads to decreased milk production in the following lactation. Researchers have shown that this decrease can be up to five litres per day for up to 30 weeks,” he said. In addition to lost production, heat stress on dry cows also affects placental development leading to smaller, lighter calves being born, and a greater risk of health problems around calving such as mastitis and retained membranes. When a dry cow experiences heat stress, it increases the body temperature of her foetal calf. This alters the calf’s metabolism and gene expression. These changes are long-lasting, affecting the calf’s health and performance well beyond birth into adulthood. Calves heat stressed in utero are more susceptible to infection pre-weaning, are less fertile as maiden heifers and go on to have decreased milk production in their first lactation. “The effects of heat-stress on dry cows are serious and there are negative long-term impacts on the overall productivity of the herd and consequently on business profits,” Steve said. To minimise the threat of heat stress and its effects on dry cows and their unborn calves, Steve recommends farmers who dry cows off over the hot months of the year ensure their early dry cows and transition cows have access to adequate shade and cool drinking water at all times. “As per the milking herd, the aim should be to protect dry cows from direct sunlight, particularly during the hottest part of the day. Four square metres of shade per head at midday is recommended. “If existing natural shade from trees in paddocks used for dry cows is inadequate, then alternative paddocks should be sought. Portable or permanent shade structures are also options. Longer term, the aim should be to establish more tree belts along dry cow paddocks and springer paddocks,” Steve said. • Further information on shade structures and on-farm cooling techniques can be found at www.coolcows.com.au . Source: Dairy Australia

DAIRY NEWS AUSTRALIA FEBRUARY 2016

ANIMAL HEALTH // 25

Gauge levels matter to health and bottom line ROD DYSON

DURING A recent farm visit, routine milking time testing of the milking machines in this dairy quickly showed that the system vacuum was at 39 kPa – very low for a highline swingover herringbone. We immediately went looking for the dairy’s vacuum gauge, and after a brief Sherlock Holmes detective effort, we finally found the gauge way up high in the middle of a mass of pipework, facing towards one side of the herringbone. In this position it was impossible for a person in the pit to read the gauge, and even standing on one platform of the herringbone, regular prior yoga sessions would have been needed to twist our bodies enough to easily read the gauge. Once found, we could see that the gauge was reading 46 kPa, a significant difference to what was actually happening in the milking system. A change in milking system vacuum level of this magnitude can result in changes to milking performance that you might readily notice - extra cup slip, difficulty attaching cups at cups-on, clusters that do not drop off as easily at cup removal, unsettled cows, swollen or discoloured teats after cup removal, etc. However, even smaller changes in vacuum level can have an effect, often long before the change reaches the stage where you see these more obvious signs. We regularly see farms where an unnoticed change of only 1-2 kPa in the system vacuum level has had a significant impact on teat condition, greatly increasing the risk of mastitis, but without causing any of the above signs. These relatively small changes in vacuum are often difficult to notice from one milking to the next and can be very hard

to define by eye on the dial of a typical analogue gauge - and if you are in the dairy shed every day, it is even more difficult to notice a small change. Recently, at a couple of programmed farm visits, we discovered that vacuum levels which had previously been set at the ideal level for the farm had unknowingly changed. On most of these farms, that effect was immediately evident in our teat scoring, and on a couple of the farms, mastitis levels and cell counts had also started to increase. What are the key lessons and how can we avoid these risks? ■ Vacuum regulators and vacuum gauges are not “set and forget”. Like all mechanical systems, they need to be checked and serviced regularly ■ AMMTA milking machine standards specify that the vacuum gauge should be in a position where it is easily read ■ Analogue dial gauges can be difficult to read, and are more prone to “sticking” – if you have to tap the gauge to read it, the gauge needs replacing ■ Digital gauges usually have large, easily read numerals It should be part of every milking routine, to check the vacuum gauge after the plant has started to ensure nothing has changed from the previously set level. If the vacuum has changed, a technician should be called to investigate why and reset the vacuum to the correct level Whilst it is possible to install monitoring equipment that will alert the operator to changes in vacuum, these systems are relatively expensive. An effective option for most farms is to install a digital vacuum gauge in a highly visible position and then to ensure that it becomes part of the milking routine to check the gauge at every milking, commonly

immediately after start up. Pictured is an example of an installation clearly showing the vacuum level, and also that the vacuum in this dairy has started to “creep” away from the ideal level

which has been recorded on the wall below the gauge. These installations are simple, relatively inexpensive and can help to prevent a change in your vacuum causing you costly increases in

mastitis risk. Talk to your milking machine technician about the best option for your plant. • Rod Dyson is principal veterinary consultant and team leader at Dairy Focus, based in Tongala, Victoria.

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Dairy News AUSTRALIA february 2016

26 //  pasture improvement

Smart irrigation systems could make better decisions than you RESEARCHERS at the Tasmanian

Institute of Agriculture (TIA) are using sensors and autonomous technology to develop a system that not only tells you when to irrigate your pasture, but then goes ahead and does it for you. Not only will the system automatically irrigate pasture, it will also apply variable volumes of water to the same paddock, which could save farmers time, water and money. Research and development team leader at the TIA Dairy Centre and chief investigator on the project, Dr James Hills, said the end goal is an autonomous machine interface that collects information about the pasture, water use, soil and climate and then uses crop modelling processes to make decisions about when and where to apply water. The development of this autonomous system is part of a bigger three year project that is looking at the use of irrigation water in pastures by collecting data on water use, energy use and pasture production from five sites across Tasmania. The project is supported by funding from the federal Department of Agriculture and Water Resources as part of its Rural Research and Development for Profit program, as well as Dairy Australia and TIA. From the data collected at the five sites, the team will work with farmers to make changes to improve water use efficiency and will continue monitoring the sites to measure the success of these changes. Dr Hills said gathering this benchmarking data is an essential step

to getting the most out of the new irrigation schemes. “Significant investment in irrigation infrastructure in Tasmania from both federal and state governments provides the opportunity to increase our agricultural productivity, but we need to make sure we are doing it properly and in a way that is going to be sustainable,” Dr Hills said. “To introduce management strategies that increase efficiency we really need that baseline data. We need to know the facts and figures for water use to know how you can improve on that use.” The five trial sites have been selected to give enough variability across different topography and soils that are likely to be irrigated. Mr David McLaren, project officer at the TIA Dairy Centre, is on the ground installing the sensors and data logging equipment at the sites and will also oversee the data collected in the field. “A big part of the project will be to visualise that data, so that when it comes to making management decisions we can very quickly know what to do through a visual display of data, and not have to interpret numbers,” Mr McLaren said. “The devices on site will have an interface that you can connect to from your smartphone or tablet so you can start to look at real-time values of pressure, temperature and energy without being physically on site, which is a real advantage.” In its third year the project will trial an automation system at one of the sites to see how this type of system could be

Research and development team leader at the TIA Dairy Centre Dr James Hills with project officer David McLaren.

used to save farmers time and effort. “We are very interested in how far we can go using a system with a machine interface as opposed to a human interface,” Dr Hills said. To do this, the team has linked with

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The National Centre for Engineering in Agriculture at the University of Southern Queensland, which has developed a control platform called VARIWise. The VARIWise system has been

developed and tested in cotton, but this is the first time it will be applied to a pasture based system. Installation of the sensor and logging equipment on the five sites was completed in October.

DAIRY NEWS AUSTRALIA FEBRUARY 2016

PASTURE IMPROVEMENT // 27

Growing gene technology for more ryegrass

Dr Luke Pembleton

and by Agriseeds in New Zealand, was on-farm trials to validate the initial

yield under a range of environments,” he said. “We still need to explore broadscale dryland irrigation, fertiliser application, weather and soil conditions and persistency of the

findings. “We’ve modelled three times genetic gain in biomass, through genomic selection; and similar improvements for other traits like persistency. Now we want to measure

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cultivars, by grazing them with animals.” For the future, it is science that can be adapted to other pasture species, such as other grass species and forage crops, as well as cereals.

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performance gains in one generation that would have previously taken 10-20 years of breeding. “A lot of research we do is direct collaboration. It enables faster registration of varieties, which has direct consequences for JEANETTE SEVERS dairyfarmers – they get quicker access to the new pastures,” Dr Pembleton Seeds and Agriseeds. said. “The focus is “The dairy industry is on developing seed an important contributor technology that can be to the Victorian economy, practically applied to so it is vital that research change the nutritive profiles – to breed pastures that improves production for dairy farmers is faster and increase forage accessible to them.” quality and quantity,” Dr A major achievement Pembleton said. of the research was “Getting a genetic measuring the sugar fingerprint of a cultivar and protein content of helps us understand the pastures, to quantify genetic diversity, and offers a new more effective energy output as this affects cow health, growth method for varietal and production. registration, and species It was a significant step. classification. “We were able to “But it’s also important improve energy content of that the pasture is the current elite cultivars palatable for cows and by more than 10%,” he cost effective for the seed said. companies to apply this “Trials are planned to research and dairy farmers measure the consumption to grow the grass. of that grass against “Modern research is production and animal focussed on developing growth.” new cultivars faster while Balancing protein being cost effective. needs against nitrogen use “One of the benefits efficiency of the pasture is reducing the length of would also be undertaken the breeding program, so farmers get quicker access in field trials. Up to now, trials of the to new grass cultivars.” new elite ryegrass cultivars One of the new were small and controlled, technologies being but Dr Pembleton said the developed, F1 hybrid next step, to be undertaken breeding, was assisting at Hamilton in Victoria the research by delivering

LE •

to identify elite cattle genetics has been adapted to develop ryegrass pasture cultivars with improved resilience and yield. One of the scientists leading the development is Dr Luke Pembleton, based at AgriBio, a Victorian government and La Trobe University joint venture research facility, Bundoora. “It’s the same technology that’s been applied to bulls and we’re applying it to pastures,” Dr Pembleton said. “Ryegrass is the first grass species to receive attention, because improving dairy pastures has immediate gains for the dairy industry, a critical commodity to the Victorian economy.” Dr Pembleton is a scientist who has walked the talk. He grew up in the dairy industry – his father managed a dairy in Queensland – and studied an agriculture degree. “I built a strong passion for agriculture growing up and when the opportunity came up to join this team, studying the practical application of biosciences and molecular tools in the dairy industry, I grabbed it,” he said. His research is co-funded by the Victorian Government, Dairy Australia, Dairy Futures CRC and the Royal Barenbrug Group, a seed production company with subsidiaries Heritage

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28 //  PASTURE IMPROVEMENT

Control what you c

Surge Italian Rye. PHOTO: NOTMAN PASTURE

THE TEAM at Notman Pasture Seeds, based in Gippsland, Victoria, share their tips for pasture planning and improvement for the months ahead. “The aim on most farms is to have more home grown feed, therefore achieving a greater amount of total energy harvested per hectare,” regional and sales and research manager Adam Fisher said. “With this in mind, farmers should focus on the factors that influence

GROW MORE FEED

pasture growth and consumption: water, good plant coverage of ground, the appropriate plant material, adequate soil fertility and condition, Nitrogen levels and stocking rate. Any of these that are under their control should be looked at.” Adam said he recommends setting target dates as part of your pasture plan. “February is for protecting your most productive pastures,” he says. “Plan re sowing early and

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seek advice on annual grass seeds and barley grass areas. Control weeds in finished crops and soil test if required, to know for sure what you are dealing with.” Adam said it’s important to keep pastures short in March with a 22 to 30 day rotation. “Sow pasture seed, add fertiliser and spray if required. And don’t forget: sacrificing paddocks can save pastures in an extremely dry season.” He said April is a good time to continue sowing and monitor for pests. “Earth mite, Lucerne flea, grubs or slugs, it’s important to take action when required. Consider using Barrier U2 endophyte if cockchafers or

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Have stocking rate to consume this feed.

Tips for sowing ryegrass ■■ Successful germination of seed depends on good contact between the seed and the soil to maximise soil moisture and nutrients ■■ For both direct drilling and conventional sowing ensure both seed and fertiliser are sown together at a depth of around 10mm. Establishing ryegrass without clover ■■ Use DAP at 150 kg/ha if Olsen P is below 20. If 20 – 25 use 80kg/ha. If 25+ use 20kg/ha. ■■ Drill into soils to one cm depth, prefer dry soils and low pasture

Sacrificing paddocks can save pastures in an extremely dry season. black beetles are a problem. “Keep grazing pastures as early as possible in May, as soon as plants will not pull out,” he said. “Control weeds and pests, apply fertiliser and lift the rotation to 25 to 30 days.” Adam said by June all weeds should be controlled and the rotation can be lifted again to 28 to 38 days. Peter Notman said that as long as permanent pasture remains the mainstay feed of the dairy industry in southern Australia, protecting pastures from over grazing and weed infestation is of upmost importance. “There is great opportunity to increase yield in general but I believe in July growth rates of 40kg/ha can be reached therefore achieving one tonne of pasture grown per month during this period. “ Key factors to influence pasture growth and consumption ■■ Water ■■ Good plant coverage of ground ■■ The appropriate plant material ■■ Adequate soil fertility and condition, P. K. S, pH etc. ■■ Nitrogen at 1-1.5 Kg/ day when moisture is available

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cover Spray green growing pasture with Glyphosate at 150ml/ ha this would suit both dryland and irrigation when there is no more than 15% fibrous rooted grasses If flood irrigation has a large amount of summer grasses eg, Paspalum, Couch, cultivation after heavy Glyphosate application would be preferred If spraying only, then increase sowing rate by 50% (This method applies for dryland bent grass areas also.) In Gippsland and other high rainfall areas, sow before mid-April In the low rainfall areas sow before end of April, worked soil gives better results In the Macalister Irrigation District it is important to have planted before midApril, so plants can be established before frost cools soils Seed rates: Direct drilling 25kg/ha – Cultivated soils 30kg/ ha Fertilise for high yields, growth for short terms - up to 50kg DM/ha/day Use Nitrogen at 25– 40kg N per month if feed can be utilised Use soil test to

DAIRY NEWS AUSTRALIA FEBRUARY 2016

PASTURE IMPROVEMENT  // 29

u can to get most out of pastures

Adam Fisher and Gavin Notman inspect dry pasture.

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■■

■■

determine rates of Phosphorus, Potassium and Sulphur Control weeds e.g. Capeweed when plants are 25 to 50 mm high Graze early, as soon as plants won’t pull out (75mm -3 inches) Do not drill into soils with root mat.

Pasture establishment in root mat soils Peter says most root mat soils have low soil PH. “If PH is below 5.4 in (water) apply 2.5 tonne /ha of fine lime and incorporate this into the soil prior to planting,” he said. “Not controlling existing pasture or not breaking down root mat often causes failures when direct drilling pastures.” Peter said the use of a high application rate of Glyphosate followed 10 days later by two passes

with a disc, could then be followed by a power harrow and a seed box. “The soil clump size should not be more than 5 cm.” After sowing, harrow with mesh and roll. Planting pastures in irrigated soils “The planting window is wide for spray irrigation,” Peter said. “From mid to late February to late April. The ideal timing to optimise the result is considered to be mid-March for autumn.” Peter said if flood irrigation has a large amount of summer grasses eg, Paspalum, Couch, cultivation after heavy Glyphosate application would be preferred. “If spraying only, then increase sowing rate by 50%,” he said. “When there is no

more than 15% of the area covered with fibrous rooted grasses and pasture cover is low, spray pasture with Glyphosate at 150 ml/ha. “The next day pasture can be drilled then irrigated. Around eight to 10 days later this can be grazed. “Fertiliser should be applied as per standard recommendations.”

growing generally before moisture starts to decline. They have poorer quality and in many cases are 1.5 MJME lower than the later season cultivars. “The main aim should be to grow feed when every day moisture is available. With this in

mind, we are for mostly recommending late flowering cultivars for perennial ryegrass. “These cultivars seed on average at least 21 days later than Nui and can remain at an energy content of 11.5 MJME even into the early December period. “Early season cultivars like Kangaroo Valley would be close to 3 MJME/ kg lower at this stage.” Peter said for annual pastures the same principle applies, however when cropping within six months of planting date, an early season cultivar could be used in this case. “We believe these late flowering perennial ryegrasses are as persistent as most early flowering cultivars and can deliver a lot more energy over the season,” Peter said. “With the short-term ryegrass late flowering cultivars are generally more persistent also. “

Why use short term ryegrass? “Short term ryegrasses are generally used in areas where there is trouble getting persistence with perennials,” Peter said. “This could be mostly be caused by lack of soil moisture and/or occasionally too much moisture causing pugging.” He said farms where there is a calving pattern requiring a high winter feed requirement often use long season Italian ryegrasses. “It’s important not to use annuals unless cropping again next spring.” He recommends using long season cultivars when selecting Italian Ryegrass. “It has excellent growth in late autumn, winter and early spring compared to Perennials.” Use annual ryegrass “when quick autumn and winter feed is required and you are planning to crop in spring.”

Permanent pasture establishment of ryegrass and white clover Adam said permanent pasture establishment requires more attention to detail than annual pastures do. “Weed and pest control are vital here,” he said. ■■ Timing: Be opportunistic. March/ April are key times to plant. ■■ Pre-planting weed control, use Glyphosate. ■■ Address drainage and soil fertility issues. ■■ Ensure seed soil contact, light harrow and roll. ■■ Monitor and control pests, seek advice. ■■ For post planting weed control, select a broad leaf herbicide. ■■ Graze as soon as plants won’t pull out approx. 75mm (3 inches). ■■ Avoid pugging. ■■ Continue to monitor soil fertility. www.notmanpasture.com.au

Vat Buster Perennial Rye. PHOTO: NOTMAN PASTURE

Selecting ryecrass cultivars (long and short term) “Past selection guides have often talked about when do you require the extra feed - winter or late in the season? “ Adam said. “Early seeding cultivars have often been suggested to be more persistent in dry environments. But these early flowering grasses cease

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30 // PASTURE IMPROVEMENT

Barley grass a growing p “I reckon we will need WITH BARLEY grass barley grass chaff,” to treat paddocks at least plants running up to head Andrew said. every second year in order “The barley grass in spring and summer, to keep the barley grass at many Hills and Fleurieu was competing strongly bay,” he said. dairy farmers in the South and I reckon reducing The Jensens have relied Australian dairy regions the persistence of our on three strategies to have recognised how pro- perennial ryegrasses. control barley grass: either lific this weed is becoming Further inaction was not winter spraying with an option for us.” on their farms. Shogun herbicide; Barley grass is a “Further inaction was spraytopping common weed in after silage cuts many Hills pastures. not an option with low rates However, unlike for us.” of glyphosate local beef and sheep – Andrew Jensen, herbicide; or pastures, this spinyKentish Downs Dairy. completely headed annual grass reseeding seems to be getting pastures at the much more prolific end of winter. They have since in dairy pastures in recent Andrew has sprayed invested in aggressively years. many infested ryegrass controlling barley grass Andrew and Sonya pastures with Shogun, as necessary in most Jensen operate Kentish spraying no later than midpaddocks in the last three Downs Dairy at Parawa, July and prior to the stem years. and after ignoring this elongation stage of the Andrew explained weed for several years, barley grass. were faced with bad barley that they have recovered The Shogun usually the situation at Kentish grass infestations in most Downs, but that they have gives very good barley paddocks. grass control and, while only reduced infestations “By then half of ryegrasses survive, their and contained - not our spring silage cuts regrowth is markedly eradicated - this weed. comprised trashy, spiny

slower for a month after spraying. “With the lack of spring rains in recent years, we

sometimes get lighter silage cuts in the spring after spraying Shogun,” he said.

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PASTURE IMPROVEMENT // 31

g problem for barley grass to shoot up seed heads evenly a few weeks after his silage cuts then spraytopping paddocks with low rates of glyphosate. “Spraytopping seems to control barley grass reseeding, with 80 to 90% reductions in barley grass density in the following year,” Andrew said. “Ryegrass growth is minimal after spraying, but seems to regenerate okay in the following year. “Regardless, any paddocks treated with Shogun or spraytopped

are always oversown with extra ryegrass seed in the following year.” On occasions the Jensens have also completely sprayed out their worst-infested paddocks and resown perennial ryegrass at the end of winter. Even then, they have sometimes still seen a smatter of late barley grass germinations in the newly spring-sown pasture. Andrew agrees that barley grass is becoming more prevalent on local dairy farms and that using

multiple strategies is the best way to tackle barley grass. “We are only containing barley grass levels in our pastures and we will need to spraytop paddocks regularly to keep this weed at bay,” he said. Andrew and Sonya would support new research to better understand and more effectively control this weed. • Source: DairySA

FACTS AND TIPS FOR MANAGING BARLEY GRASS BY DAIRYSA FORAGE PROJECT OFFICER GREG MITCHELL ■

Barley grass seems more prevalent in dairy pastures where high rates of nitrogen fertiliser are applied

■

It also seems to have a developed a more staggered germination pattern, making control even more difficult.

■

There are no perfect sprays or treatments to selectively control barley grass in perennial grass pastures.

■

Don’t rely heavily on any one method but instead use the range of available strategies to control this weed. For example, treat just a few paddocks with winter Shogun spraying, a few others with spraytopping, and maybe completely resow a couple of the worst-infested paddocks at the end of winter. This approach reduces the risk of any one strategy creating a big gap in seasonal pasture supply.

■

Note that phalaris and cocksfoot pastures can be badly damaged by Shogun or spraytopping with glyphosate.

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

32 // IRRIGATION

Solar powered pump has Is your irrigator stuck? outlying areas covered MARK DANIEL

THE DEVELOPMENT

of a solar powered pumping system by New Zealand company, Isaacs Pumping and Electrical, has opened up the possibilities for farmers looking for a guaranteed water supply to outlying areas of the farm, which are often as not connected to the national grid. This potential to bring

areas into production, and increase stocking rates, has been developed over two years with help from the Callaghan Innovation Group. The e-pump is fully automated, and takes tried and tested pump technology, and combines it with a circuit board based controller system to optimise the solar power being generated, whilst protecting the industrial spec continuous motor, all

housed in a stainless steel protective cover. Power generation is achieved with a six panel set-up situated near the pumping equipment. The pump used has been around for 50 years, so is well proven, but users can specify a pump of choice if required, although the Isaacs preferred unit is able to tackle clean or dirty water. The e-pump is able to deliver to a head of 120 metres at a rate of around

Outer paddocks not connected to the national grid can be supplied water with the help of solar power.

20 litres per minute during daylight hours, and large distances from point A to B can be achieved within the limitations of frictional losses within the delivery pipe. As director Gavin Streeter explains “the aim would be to pump to a header tank at the highest point, and allow gravity to take the water back down to the troughs and livestock”. As well as obvious interest from around NZ and Australia for the agricultural market, the company has also had requests for systems for hunting and tramping huts in remote locations, as well as enquiries from organisations providing development and aid assistance throughout the world.

TALK TO a farmer about their centrepivot irrigator and you will inevitably find yourself talking about the problems caused by wheel tracks or ruts, about irrigators getting stuck and breaking drive mechanisms (usually in the middle of the night). Wheel ruts have, up to now, been an unavoidable consequence of operating a centre-pivot irrigator. Because the wheels track along the same path on each and every revolution, the ground on this path becomes slightly depressed and from this point on water collects in these depressions and they become a rut. Over time this rut becomes more of a problem putting strain on the irrigator making it more difficult to drive the wheels, and inevitably results in machinery failure. Filling the ruts is only part of the solution. The job needs to done well with the ruts filled properly, safely and efficiently. New Zealand based ICS Farm Machinery manufactures the ICS Rutbuster. This unique piece of machinery is locally designed and manufactured by the New Zealand owned and operated company.

It’s a safe, efficient method of dealing with irrigation ruts in a single pass. The Rutbuster’s one man operation makes it easy to fill ruts of virtually any depth, there’s no grading of overflow, as required by other systems, and no need to compact after filling the rut. The Rutbuster is safe to operate as the tractor wheels straddle the rut rather than drive in it and unlike other machines, the Rutbuster fills to the fence line, resulting in a well-filled, tidy rut. www.icsfarmmachinery.com

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MACHINERY & PRODUCTS // 33

Zetor bringing sexy back FROM TIME to time we all find our-

selves having to adjust paradigms, challenge long-held beliefs, and overturn the wisdom of the ages. Sometimes, we are called upon to do this, only to conclude we are being fed such complete and utter tripe that the originally-held conviction must not be so far from the truth after all. Sometimes, it’s hard to tell. As a case in point, I recently happened upon a very, very interesting article published by the BBC in the United Kingdom. This article described a design concept produced by Czech manufacturer Zetor, as ‘the world’s sexiest tractor’. Now one is best advised to keep one’s various pursuits in life well separated, if you know what I mean, but the concept of a ‘sexy’ (let alone THE sexiest) tractor in the world cannot be summarily dismissed. For anyone who knows their tractor manufacturers, the involvement of Zetor only adds to the curiosity factor (I’m trying not to say incredulity). Emerging from behind the Iron Curtain, Zetor (from the Czech Republic) has a similar historical reputation in Australia as the Belarus brand in producing rugged, cheap machines of arguable quality.

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Some seem to last forever, while others are the subject of horror stories. As it happens, Zetor has done its fair share of innovation, reportedly being an early developer in four-cylinder diesel engines, diesel injection, factory-built cabs, and mechanical front-wheel drive (MFWD). Some models used to be re-badged as John Deere machines, with budgetconscious buyers sometimes referred to as having ‘gone through that phase’. The later ‘41’ series models of the 1990s were the last sold in Australia before the local distributor folded. Whilst far from any definition of ‘sexy’, these machines did at least look half decent, and I’ve often wondered about buying the (now very cheap) examples sometimes offered for sale. Regrettably, I’ve never had the opportunity to drive one, though a couple of people along my road own

examples that seem to be lasting the test of time. Admittedly, one has had a new engine, and its owner has admitted he ‘might have bought something else if he knew how much he’d be using it’. High praise indeed. But back to the ‘sexy’ Zetor. This machine has had its exterior styling designed by Italian design house Pininfarina, a company made famous by some of its iconic designs for Ferrari. Pininfarina allegedly made the subject Zetor look ‘sensual, yet muscular’, with ‘slick Formula One looks meshed with Transformers-like brute strength’. I’m still not even sure what to make of that. The new look will be rolled out across the range; and doesn’t seem to incorporate any new technical features as yet; though it will reportedly be accompanied by expansion of the product portfolio and ‘development of the distribution network’. It’d be nice to see Zetor back on the ground in Australia to put the new products to the test, but in the meantime we’ll have to be content with the assessment of Pininfarina’s chief creative officer, who says the new styling ‘expresses the strength and durability of Zetor machines in a way that also communicates emotion and passion’.

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ACCOUNTANTS say dairy farmers will benefit from Dairy Australia’s new Standard Chart of Accounts with higher quality information for analysis leading to better informed decisions made on-farm. Developed by Dairy Australia in response to requests from farmers and service providers, the Standard Chart of Accounts will also drive consistency in how the dairy industry reports and discusses farm business performance. Phillipsons accounting services director, Colin Wright, said a standardised way of recording income and expenditure was of great value to

the dairy industry. “It will make it easier for the accountant to provide information to farmers that will allow them to compare their business performance over time, versus other farms and assist in the budgeting process. Mr Wright said the fact the Standard Chart of Accounts also links with the farm business management tool DairyBase was another positive, enabling comparative analysis and information sharing valuable to farmers. Kyabram-based accountant, Pete George, said the new Standard Chart of Accounts that draws heavily on Murray Dairy’s Financial Records

Guide for Dairy Farmers, would also assist consultants analysing financial data for their clients. A partner at M&S Group Accounting, Mr George works with 150 dairy farmer clients and three Dairy Business Network (DBN) groups in northern Victoria. “The consultant-led DBN groups I am involved in will find this new Standard Chart of Accounts very useful because they will receive better and higher quality information to help them make decisions,” Mr George said. To download the Standard Chart of Accounts visit www.dairyaustralia. com.au or www.dairybase.com.au

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DAIRY NEWS AUSTRALIA FEBRUARY 2016

34 // MACHINERY & PRODUCTS

Disc mill performance inspires multi purchase MARK BLAND from

Foster in South Gippsland is pretty impressed with the performance of his disc milling system. His recommendation of the Skiold disc mill has seen them purchased by three other farms in his family and two other local dairy farms. Mark has been on the family farm here for 18 years, having grown up on a dairy farm in Welshpool. He wanted to keep milking when he left school, so after a couple of other jobs he was back on the farm. The Foster property encompasses about 600ha with a further 160ha leased for the dry cows and heifers. Mark and his wife, Nicky, with four children aged between three and 10, are milking 1000 Holsteins off about 400ha. They have a 50 unit rotary shed, without automatic cluster removers. They grow their own hay and silage, just about all ryegrass, and it is all dryland farming with no irrigation.

WORKING CLOTHES CHRIS DINGLE

Mark had run roller mills for processing their grain for about 15 years and said they required continual maintenance. “We were replacing rollers about every 15 months and they needed regular adjustment.” He heard from a mate who was using a Skiold disc mill and when Mark asked him if they were worth changing to, the mate said: “Don’t hesitate, go for it.” The disc mills are manufactured by Skiold in Denmark, makers of feeding, feed milling and ventilation systems for livestock producers, and they have been going for 100 years. They claim that their disc mills are suitable for grinding many different

types of raw materials, including pellets with a diameter of up to 12mm. The mills are marketed in Australia by Skiold and Vacuum Milling Solutions, based in Jimboomba, Queensland. Mark went ahead with his purchase and they have now had a Skiold SK5000 model for 14 months. He said that they were very happy with the way it has performed. “The disc gives a better job and it is maintenancefree. The result is consistent and a proper crush. “The cows can’t utilise any whole grain and we have eliminated that. The machine is reliable and long-wearing.” So far they have put about 3000 tonnes of barley through the disc mill. They only crush barley which is bought in for the purpose. That works out to seven tonnes per day which takes about two hours. Mark said there is a big difference between grinding barley and wheat as the barley is ground to a finer result.

The SK5000 can deliver up to 6000 kg/hour. Other models which are available are the SK2500 with a capacity of up to 2500kg/hr, and the SK10, for large farm operations and commercial businesses which has a throughput of up to 12,000 kg/hour. There are no V-belts or chain drive on the mills and it is a simple process to adjust the grinding degree during operation, to optimise the structure of the feed. It can handle all types of grain suitable for the dairy industry and can even grind wheat, barley and corn together. The discs are made of tungsten carbide steel so that the grinding process, instead of crushing the grain, gives a better meal quality. Other advantages are its very low noise level in operation, exceptionally long durability of wearing parts, and high capacity with low power consumption. Due to its compact construction, the disc mill has been easily

Mark Bland from Foster with one of his three Skiod disc mills. PICTURES: CHRIS DINGLE

incorporated into the existing set-up on the Bland farm. At Foster the Blands feed 8kg/cow/day of canola, barley and mineral pellets in the bail. They have six full-time employees and Mark said everybody can operate the disc mill, which is usually

run during every second milking. There are four dairy farms in the Bland farm, Mark’s brother and two sisters, and on his recommendation they have purchased Skiold disc mills, plus two other local farmers are now using them. Mark said they are all happy with them. On the Foster property they have incorporated a Jantec electronic ID system for drafting, health treatment, mating, pregnancy confirmation, CellSense to identify cows with high somatic cell

counts and Yield Sense. Mark said they were looking at production feeding in the future. All the cows are spring calving and at the moment the herd is self-replacing. They are using AI only this year. “As far as the future goes, we are pretty settled at the moment and will continue on with the present cow numbers,” said Mark. Other machinery on the property includes five John Deere tractors, two Claas mowers, a couple of Welger round balers and Lely rakes.

L A I C E P S T R O P RE NEXT ISSUE: MARCH FARM WORLD SHOW PREVIEW In the March issue of Dairy News we’ll be previewing Farm World. One of the largest field day events in Australia, Farm World attracts visitors from throughout Victoria, southeast of South Australia and Tasmania. It has grown to be Victoria’s largest regional agricultural event, attracting more than 700 exhibitors and 50,000 people through to Lardner Park Events in Drouin between 7th-10th April. Farm World allows exhibitors to launch new products, generate sales and leads, highlight industry changes and provide an opportunity to develop and maintain contacts. Make sure farmers know where to find you at Farm World by advertising in our preview. BOOKING DEADLINE: February 24 AD MATERIAL DEADLINE: March 1 PUBLISHED: March 8

CONTACT: CHRIS DINGLE | T: 0417 735 001 E: chris@dairynewsaustralia.com.au

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