Looking beyond the blame game. PAGE 20 SAFETY PUSH Warning to all farmers PAGE 6
WESTERN HIGH WA dairy confident to invest PAGE 13
MAY, 2016 ISSUE 69 // www.dairynewsaustralia.com.au
DECISION TIME Farmers forced to make tough choices as Murray Goulburn milk price shock ripples through the industry . PAGES 4-5
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DAIRY NEWS AUSTRALIA MAY 2016
NEWS // 3
Keen on green Green pastures from some early Autumn rains were a welcome sight to visitors at this year’s Dairy Innovation Day at Elgin Dairies in Boyanup, Western Australia on April 28. Owners Darren and Sharon Merritt showed how they are investing with confidence in the future of WA dairy. See page 12-13
Farm World fun. PG.16-17
Qld farm eyes three million litres. PG.22-23
Breathing space for Murray Darling farmers RICK BAYNE
Warning on antibiotics use. PG.30
NEWS �������������������������������������������������������3-11 AROUND THE REGIONS �������������� 12-17 OPINION ����������������������������������������������18-19 MARKETS ������������������������������������������ 20-21 MANAGEMENT �������������������������������22-24 ABVs ���������������������������������������������������� 25-29 ANIMAL HEALTH ���������������������������30-31 MACHINERY & PRODUCTS �������������������������������������� 32-34
FARMERS IN the Murray Darling have received some much needed good news, following the recent meeting of the Murray–Darling Basin Ministerial Council. “The changes they’ve announced are in line with what industries have been asking for,” chair of Australian Dairy Industry Council (ADIC) Basin Taskforce, Daryl Hoey, said. “It will give us more breathing space to allow adjustment packages to be better measured and laws to be considered over the 12 months.” The council reached agreement on key areas that will provide for a second sustainable diversion limit (SDL) adjustment step by June next year, and to consider a range
of projects to improve outcomes. It is expected the agreement will deliver a significant reduction in the water recovery needed to achieve Basin Plan outcomes. There are also moves for a wider range of complementary projects, such as carp control, to provide triple bottom line benefits under the Basin Plan. Projects are expected to be completed over the next eight years, providing a welcome boost to regional economies and the health of the Basin’s rivers and to meet stakeholders’ expectations of the SDL adjustment. Ministers on the council agreed on the principles that would guide the implementation of the SDL adjustment package Mr Hoey said the best thing about the announced changes was
the emphasis on socio-economic impacts. “It shows the socio-economic analysis needs to be done, which we’ve been saying for a long time,” he said. “We need to look at the affect the plan is having on communities and farmers in the Basin and we finally appear to be getting some traction there.” Mr Hoey said it was pleasing that authorities were listening and “keeping the politics out of it”. “They’re trying to find measures and different rules around water and regulations to achieve the goals; a while ago states would have been very parochial saying there’s no need to change and it’s everybody else’s fault.” The changes are welcomed good news for many dairy farmers across
the Basin who dealt with a long, dry summer. The changes mean water can be secured by means other than the government going into the market place to purchase it, Mr Hoey said. “If we can get the same environmental outcome with less water by running the river differently, putting in different regulations or technologies, or changing the rules about how water is used between states and accounted for, then that’s all positive because less water will be taken out of the consumptive pool and farmers will have more water to compete for and use.” So far only 15 of the 37 nominated supply measures have been modelled, which have an estimated SDL offset of 370 gigalitres.
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DAIRY NEWS AUSTRALIA MAY 2016
4 // NEWS
MP calls for heads to roll RICK BAYNE
A SOUTH West Victorian MP says
heads should roll from the Murray Goulburn dairy co-operative board. Member for South West Coast Roma Britnell has called for resignations from the board over what she described as “a budgeting debacle” that has left local farmers furious. However, Mrs Britnell has stopped short of calling for a total spill and said that continuity was needed to steer the company back on course. At the same time Mrs Britnell, who is also a dairy farmer and Murray Goulburn supplier at Woolsthorpe, has urged suppliers to stick by the co-operative for the long-term good of the dairy industry. During a supplier meeting at Camperdown, Mrs Britnell made her call for the board to be held accountable for not letting suppliers know earlier about problems in meeting targets. “It is devastating news two months before the end of the financial year and the buck stops with the board,” she said. “They should have called it when the international market was plummeting. The market was telling us it needed to be done but MG was telling us they had the value-added capacity to work through it. “I’m calling for resignations of board members who have been there long enough to know better and should have acted earlier to alert suppliers. They now need to do the right thing and resign.” Mrs Britnell would not specify names and numbers but did single out non-farmer member Peter Hawkins who has been chairman of the Finance, Risk and Audit Committee since 2009. “We don’t need to spill the board
“This is a long-term investment and cause chaos,” she said. “We still need steady hands and continuity to despite the short-term pain,” she said. Two MG board members have steer the ship back on course, but the ones who’ve been through this before aleady resigned since the April 27 announcement. need to resign.” Gippsland dairy farmer Max JelMrs Britnell said elections would be needed in regions where there bart has departed due to poor health, are resignations “so the people can while director Kiera Grant, who was appointed to the decide”. board just seven “The Western Vicweeks ago and had torian election proplanned to stand for cess might be where election at the next everyone vents but annual general meetI’m not convinced ing, announced her all the members out exit on May 3. of Western VictoManaging director ria need to go,” she Gary Helou and chief added. financial officer Brad Mrs Britnell said Hingle announced she had been inuntheir resignations on dated with calls from the same day as MG angry farmers in the MG chairman Philip Tracy. cut its milk prices. past few days. MG chairman, Philip She said the company’s value-added strategy was heading Tracy said he believed history would in the right direction but MG needed judge Mr Helou as a visionary leader to modernize and grow the capacity of who delivered a strategy that has farmers to increase the pool of poten- transformed the industry. “Gary has made a significant contribution to MG and has been “The buck stops with a powerful driving force behind our transition to become a globthe board.” ally recognised, ASX-listed food business.” Mr Helou said: “While maintaining this price has proven to be diftial board members. However, she maintained that ficult in current market conditions, I dairy farmers need a co-operative and firmly believe MG has the foundahoped suppliers would stick with MG. tions in place to support a strong “Farmer control and working col- and successful business in the years lectively to ensure we have market ahead.” MG management and board were power is very important,” she said. “We need to remember where and facing suppliers across Victoria last how the milk price is determined. If week, and will be in Tasmania on we continue to have a farmer-owned Tuesday (May 10). Meetings in NSW and SA were still company we will have input.” As a farmer, Mrs Britnell said she to be advised at the time of going to and her husband Glenn were remain- press. ing with Murray Goulburn.
Burra Foods holds price but not incentive MADELEINE BRENNAN
IN THE wake of the Murray Goulburn
announcement, Gippsland processor Burra Foods confirmed it will hold its base farm gate milk price, but would “likely struggle” to pay the Burra Supply Incentive (BSI). Poowong farmer and Burra supplier Luke Wallace told Dairy News he was disappointed the supply incentive would not be paid, and will cost his business around $22,000. He said the dry season has forced him to buy in more hay, the recent bill of which was $12,000. “What annoys and frustrates me about this is that why do Burra wait until now, after the MG news, to then come out and tell us that they it’s unlikely they will pay the BSI? “They would already have to know that was going to be the case, so why not come out two, three, four weeks ago?” “It’s just an excuse to pull their price back, because they only have to compete with them (MG).” Mr Wallace said it was not just Burra Foods “but all the processors who seem to follow MG on price when they should be acting as independent businesses”. “Why do they set their price on someone else’s business?” he said. The news came as Burra Foods told suppliers last week it had sold a majority stake of the business to a Chinese company, subject to foreign investment review board approval. Inner Mongolia Fuyan Farming Co Limited will be the majority shareholder following a 12 month strategic review, the company said. “While we received a number of quality proposals and comprehensive offers, interestingly none from
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an Australian based business, this agreement will best match our key objective of enhancing market access and raising additional capital to fund the continued growth of our Korumburra processing facility,” the company told suppliers. The majority shareholder in Fuyan is China Mengniu Dairy Co Ltd, a dairy manufacturer and distributor listed on the Hong Kong Stock Exchange. Burra said the capital injection would help it achieve its long-term growth strategy to increase production from the current 60,000mt to 100,000mt per annum by 2020. Existing shareholders including Burra Foods’ founder, Grant Crothers and Japanese dairy distributor, ITOCHU Corporation have maintained a combined 21% interest in the company with Mr Crothers continuing in his role as managing director/CEO. “The new shareholder structure will provide Burra Foods with vastly improved access to new high value milk and nutritional powder markets, facilitating low risk growth up the value chain, and access to additional capital,” Mr Crothers said in a media statement. “We have always been about maximising value from the milk solids we collect and process and have taken a very cautious approach to China, appreciating the significant risks that come with the increasing opportunities available. “There are only winners in this deal as the new structure enhances the future for our loyal milk supply partners, provides ongoing employment for our dedicated staff, while ensuring increased and stable supply to our existing customers whether they are located in Australia, Japan, China or other parts of the world,” he said.
DAIRY NEWS AUSTRALIA MAY 2016
NEWS // 5
Price shock could signal last straw ria (UDV) estimates the decision will cost the average MG supplier between $127,000 and $150,000 over the next FARMERS ARE revisiting their books three years if milk prices remain around and considering their future after pro- the current level. MG supplier from Kerang in Viccessor Murray Goulburn’s (MG) shock decision to slash its milk price last toria’s north, Andrew Leahy , said the decision will see some farmers in the month. Fonterra has also followed in their district leave the industry. “I wouldn’t be surprised if we had a footsteps, announcing a step down $5kg/MS as Dairy News went to press 10% shake-out across northern Victoria,” he said. last Thursday. UDV president Adam Jenkins is not The industry is left reeling after MG cut the current season milk price by 15% prepared to predict the number of farmand told suppliers they would receive a ers that will leave the industry, but said depressed payment for the next three it is important that people make decisions early. seasons. “It’s a major disappointment and a MG blames the downgrade on a financial shortfall of up to $200 million disruption in the whole dairy industry,” caused by the appreciating Australian he said. “People are still coming to terms dollar and weak international demand. The United Dairyfarmers of Victo- with what that means for their busi-
CAMERON WILSON
ness, for our industry, and with what that means in terms of being able to fill current markets.” He encouraged farmers to take stock and not to panic. “Take a step back, take a breath, look clearly at your business … If people choose to leave that’s their choice and we should admire those people that have made the choice sensibly to exit with their head held high.” Mr Leahy said the timing of the announcement left farmers with few options to mitigate the financial damage. He estimated it will wipe in excess of $100,000 off his business, sending a predicted break-even season into the red. “By cutting the price so late in the season we’d already committed to what we are doing, it’s all done,” he said.
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MAY 2015 ISSUE 58 // www.dairynew saustra
lia.com.au
BIG CALL MG
forecasts final 2015/16 price of $6.05/kg but can it be done? PAGE 5
A year ago Murray Goulburn were talking up prospects for a $6.06kg/MS.
“We would have done things a bit Get a Great Deal On Your New the Manure Spreader Tod suppliers, differently, maybe sold a ay capacity of other processors to accept few more cows. “We just bought 100 ML of water, more milk and the ultimate impact on total milk supply will take months to probably wouldn’t have done that.” www.landaco.com.au Freecall: 1800 358 600 Mr Leahy has supplied MG since determine. “The million dollar question is 1983, prior to that his parents supplied ‘what sort of ripple effect is this going the cooperative. He said previously loyal MG sup- to have’?” “If this is a 12 month cycle well and pliers are now considering looking to good, but if this takes us into a three other processors. “I’ll be straight up, I rang one of the year cycle (of depressed milk prices) other companies to see if they were then you would think there will be a fairly substantial rationalisation in our taking people,” he said. Mr Jenkins said the movement of industry.” 60TVA
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Fonterra follows MG lead Pellett said. Managing director Fonterra Oceania Judith Swales said the price change reflected the reality of the supply and demand imbalance that is affecting global dairy commodity prices, compounded by the recent
FONTERRA SUPPLIERS are reeling after the
company announced the full 2015/16 season price will be reduced from $5.60 to $5 kg/MS. It has also announced a support loan up to 60c per kg/MS that is repayable from 2018 onwards, so farmers can receive an equivalent of $5.60 for the challenging current season. Woolsthorpe supplier Linda Roache said she was bitterly disappointed by the cut but said it was expected. “If they were going to hold they would have come out last week and said that so this was expected, but we’re still not happy about it,” Mrs Roache said. “It’s an 11th hour call; we’ve already made all our decisions and spent all our money. It makes everything that much harder.” Mrs Roache said farmers would struggle even at $5.50 in the current conditions. “Five dollars will hurt; there’s no doubt about that. It’s a tough year; we’ve had to buy water to wash our dairy because there’s been no rain for our catchment.” However, Mrs Roache hoped the price drop wouldn’t be backdated. “It
Tony Marwood
says nothing about being retrospective so it could have been a lot worse, but it’s still bitterly disappointing,” she said. Bonlac Supply Company director and Gippsland farmer Aubrey Pellett said the price reduction was an unfortunate commercial reality. “It’s unfortunate; nobody wanted it to come to this but the milk price now reflects much more closely a return. Mr Pellett said the price meant farmers would have to do some tough budgeting. Despite the price drop they will be able to access the cash they were expecting this season in the form of a loan. “Fonterra recognises next year is likely to be tough so as a farmer I’m grateful no repayments are required next year,” Mr
strength of the Australian dollar. “The reduction in the farmgate milk price is the last thing farmers want to hear – however, it is unlikely to come as a surprise. “With around 40% of Australia’s milk exported,
our ongoing message has been that Australia is not immune to the global dairy challenges, that the milk price did not reflect current reality and that farmers need to budget conservatively.” Bonlac Supply Company (BSC) chairman
Tony Marwood said while the price reduction would be tough for Fonterra’s suppliers, Fonterra has acted responsibly throughout the season. “We know that Fonterra has done all it can to send the right price signals and keep suppliers
informed. While today’s news will be difficult, it is good to see that Fonterra is showing its ongoing commitment to its Australian suppliers with the short term support and, importantly, longer term commitment to paying market returns.”
DAIRY NEWS AUSTRALIA MAY 2016
6 // NEWS
Farmers ‘heads in the clouds’ CAMERON WILSON
COLIN GRAY is in the
kitchen of his Gippsland home when we meet, sitting in the motorised wheelchair he’s been confined to since a farm accident nearly five years ago. He’s dressed in jeans, a polar fleece and an open neck shirt revealing the tracheostomy tube in his neck. He ’s wearing a cap with the logo of a local pasture seed company. “Do you want to shake hands, I can still shake hands,” he says. Colin is paralysed from the chest down. It’s taken him three years of daily exercises and regular therapy to develop the grip in his right hand. “The biggest thing
about my accident was losing my finger use,” he says. “When you look at farming you use your fingers every day, and I lost all that.” He can now pick up a pen, do the farm bookwork and, significantly, he has the strength to drive his modified car. With ingenuity and determination he’s also found ways to get through some basic daily tasks. “For shaving myself I have a bit of milk tubing on the handle and I worked out a way of applying the shaving cream,” he says. “For feeding myself I have the same thing, a spoon with a bit of milk tubing on it. “But don’t get me wrong, I still need help.” The kitchen window looks out over the
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Gippsland farmer Colin Gray, pictured with daughter Robyn Mitchard, is paralysed from the chest down following an on-farm accident nearly five years ago. PICTURE: CAMERON WILSON.
paddocks where his Dad taught him to farm. It’s the same Warragul property where he milked cows for 45 years, and the place where he and his wife Jenny raised their two kids. Prior to the accident, at Jenny’s insistence, the couple were preparing for semi-retirement. There were plans to travel Australia with a camper trailer, picking up contract work along the way. The share-farming agreement they had entered into would see Jenny and Colin free to spend more time away from the 220-hectare property and its 275-head milking herd. Colin doesn’t go into detail about the accident in late September 2011 that dramatically changed those plans. He reveals that it happened during a quiet time on the farm. Calving and joining was done and Colin was turning his mind to his daughter Robyn’s
in intensive care followed, accident,” Jenny says. imminent wedding. “In the morning you then 16 months of He also reveals the just can’t get up and get accident involved a tractor rehabilitation in hospital. out of bed, it just doesn’t It was a further 12 and machinery. happen that quick. months before the “I don’t actually know “His morning care is couple’s home was what happened exactly,” about three hours from modified so they could he says. when he gets up to when return. “I’ve looked at the he’s sitting in the chair. The emotional and situation about 20,000 “The requirements of times and to this day I still mental recovery took even each day before you even can’t tell you exactly what longer. “Jenny made me a bit of look at the farm are quite happened.” taxing.” a diary and it took me two Colin was left laying The financial cost is on his back for almost five years before I could read taxing too. it,” Colin says. hours after the accident, The home “There are cards the C5/6 spinal injury modifications, the new that I’ve never opened, meaning he was unable to bed and hoist, the car it’s just one of those answer the phone ringing in his pocket with calls from “I think the ordinary people, the friends and ordinary farmer, they don’t understand family, worried after he’d failed the implications of a serious accident.” to come home equipped for a wheelchair, things. It took me three for lunch. plus the host of machinery years emotionally and Later that afternoon and technology now psychologically to accept Jenny discovered her needed to keep Colin it.” husband. For Jenny these are the alive and comfortable He was taken by in his home cost about consequences farmers helicopter to Melbourne, don’t see, the true costs of $500,000. Around-thehypothermic, severely clock care is $300,000 a injured and close to death. a farm accident. year. “I think the “I said to my brother, Those costs are partly ‘I’m stuffed’ as they loaded ordinary people, the covered by insurance ordinary farmer, they me in the chopper,” Colin and the TAC, a critical don’t understand the says. financial contribution that implications of a serious Three separate stints
is only available because Colin’s tractor had current registration and insurance. “I think people need to understand the implications of not spending $70 a year on motorbike registration or $80 a year in tractor registration,” Colin says. Looking back, Jenny and Colin agree they could have been more diligent with farm safety. Not that they were careless. The ATVs were fitted with roll over bars, equipment was well maintained and there were clear rules to keep visitors and workers safe. They were experienced, innovative and successful farmers. “To say I was doing anything stupid, well I wasn’t. I’d just say I was in the wrong place at the wrong time,” Colin says. “I think farmers walk around with their heads in the clouds. They are naive to the implications, the cost and the consequence of an accident.”
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DAIRY NEWS AUSTRALIA MAY 2016
NEWS // 7
Call to action on dairy’s high injury and death toll Norton said fostering a culture of safety was the responsibility of everyone on staff and started with THE DAIRY industry identifying the worst must abandon its ‘she’ll hazards first. be right attitude’ to “An OH&S plan is safety if it is protect its important but it doesn’t workforce and attract need to be a thesis,” he new participants to the said. “It needs to focus on industry. the things that are going Speaking at the to cause the greatest harm Australian Dairy Industry Council’s annual business to your people and then support them to be able breakfast in Melbourne to work through fixing on April 14, chair Simone those.” Jolliffe said with two Fonterra field services deaths on dairy farms area manager Robyn in 2016 so far, and 39 Mitchard said it was a deaths between 2001 and liability if farm bosses 2013, a culture shift was only had information in desperately needed. their head and not written “We cannot go on like this,” she told the audience down. “You’ve got to be able of farmers, processors and to extract a lot of the industry representatives. things at an operational Research undertaken level so that someone else by the Australian Centre for Agricultural Health and in the business knows Safety showed there was a what’s going on,” she said. “If you are out of serious incident on a dairy farm every day of the year. business through an injury, or even worse, a “There are about 340 death, someone needs incidents per year, and to be able to that’s a continue the very much operation.” understated “There are Mrs Jolliffe figure,” about 340 said protecting said Dairy incidents the mental Australia’s and physical program per year, wellbeing of manager and that’s a the workforce for industry very much is a “top workforce understated priority” for planning ADIC, working and action, figure.” Bill Youl. – Bill Youl across the supply chain Mr Youl and with said the external injury toll partners. presented a loss of up to This was especially $12 million every year, but important in difficult the real driver for united seasons when concerns industry action should be around costs were high. that people, including the “Across the board children living on farms, dairy is facing challenging were getting injured or times,” chair of the killed. “We are hurting people, Australian Dairyfarmers’ people and human we don’t want to do, capacity policy advisory no-one wants to do that,” group John Versteden said. he said. “Whether it be due to Mrs Jolliffe highlighted the need for more farms to unpredictable weather and drought, or volatile have formal occupational commodity prices, health and safety (OH&S) protecting our people plans – and for those that and being vigilant about do to act on them. their safety becomes more “We must move from timely than ever before.” the knowing to the doing, He said it was not assessing risks where appropriate and rectifying only the right thing to do, but could benefit farm the situation.” businesses in positive Lion’s leader for safety ways. and well-being Josh MADELEINE BRENNAN
“It encourages teamwork, a caring environment and ensures that our people are as productive as they possibly can be.” He said there industry needed to work harder to drive the uptake of health and safety resources, such as those already available through Dairy Australia. The Dairy Industry’s Sustainability Framework has set a target of 100% of on-farm and manufacturing workers to have completed OH&S training by 2020 and zero workplace fatalities. Mrs Jolliffe said the industry is falling behind on both accounts. – Quad bike helmet review, p.33
Quad bikes continue to be the leading cause of death and serious injury on Australian farms, outranking tractors.
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DAIRY NEWS AUSTRALIA MAY 2016
8 // NEWS
Cow loan scheme to help new entrants RICK BAYNE
LIKE MANY dairy farmers, Damian Murphy
started building his asset base by buying cows. Now a couple of decades later he’s initiated a United Dairyfarmers of Victoria campaign to make it easier for the young farmers of today to start building their herd. The 44-year-old Gippsland farmer says he was lucky to have family backing when he made his first investment in cows, but many others don’t have that luxury. The UDV policy council has developed a new plan to help young farmers wanting to progress in the industry to buy dairy cows and
overcome restrictive lending policies of the banks. Mr Murphy, a member of the council, said buying lenders would only finance 25-33% of the value of the cow, substantially less than the usual 80-90% for new machinery. “If a young farmer wanted to buy a $100,000 tractor they only have to come up with 10% deposit. If that same young farmer wanted to spend $100,000 on cows they would have to come up with $60,000$70,000.” Mr Murphy said banks had traditionally seen cows, currently costing about $1300 a head, as a fairly risky proposal and there was not much competition for cow loans. “This is one of the first things young farmers will go for so banks don’t have a rapport with them,” he said. The UDV believes its new plan could make a big impact on the next generation of farmers and encourage more people to enter dairy. It will see established farmers act as an unsecured creditor on a young farmer’s cow loan. The established farmer would nominate a cow or cows in their herd as collateral. The cows would be available in a pool to be accessed for security on a young farmer’s loan but would
Damian Murphy
remain on the established farmer’s farm as part of their herd. If the bank determines the farmer has the cash flow and skills to raise the herd but not the deposit, it could go to the UDV pool and negotiate to access cows in the pool to cover security for a loan. Mr Murphy said that with assured collateral and necessary risk checks completed, the loan risk would be distributed 50% to the bank, 30% to the next generation farmer and 20% the UDV. The young farmer would also be assigned a mentor in their region to give advice and assist with making business decisions. They would also make available production data, budgets and cash flow information to their mentor. If the young farmer defaults on the loan, their assets would be called in first. “The bank won’t give numbers but the default rates are very low,” Mr Murphy added. Mr Murphy stressed the cow would stay on the established farmer’s property and only leave if the young farmer defaulted on the loan. The UDV policy council would initially act as overseers of the scheme but Mr Murphy said the UDV input would be kept to a minimum to reduce administration costs. The scheme is now moving to the legal stage to establish the trust. The idea came from Mr Murphy’s own experiences and his 2012 Nuffield Scholarship study into young farmer finance schemes. “I guess it was my spark but it’s been the forward thinking of the UDV policy council that allowed it to progress and be refined to the point where the banks are now really keen on it,” he said. Mr Murphy started as an employee on his parents’ farm near Leongatha and has been on the property for 16 years. He says the industry is well placed to welcome newcomers. “We’re lucky in dairy,” he said. “In the past five years there’s been a resurgence of the industry image and agriculture in general and the amount of young people who’ve become involved. We need to leverage off that and make the most of it.” Mr Murphy said other countries had finance and tiered loan systems that better supported young farmers to buy cows. UDV president Adam Jenkins the scheme would give the next generation of farmers a start while giving more established farmers a chance to give back to the industry. “It’s a good opportunity and sets up things for the future,” Mr Jenkins said.
Next gen given better access to UDV THE UNITED Dairyfarmers of Victoria is preparing for the next generation of farmers with a program to introduce newcomers to the industry decision making process. The UDV will appoint two ‘next generation farmers’ from each district to attend all policy council meetings. They won’t have voting powers but UDV president Adam Jenkins said they would learn from the experience and help the industry to better understand the needs of emerging farmers. “We have scholarships and other programs but we need to do better in providing the next generation with an opportunity to be engaged,” Mr Jenkins said. “We need to understand what’s important to their business.” Mr Jenkins said the program would provide a platform for managers, employees and share farmers to be involved in policy debate. The scheme is believed to be unique within farming organisations. “I know different boards have associate directors for the younger generation but I don’t know of any in the agricultural field,” Mr Jenkins said. The program is aimed at not only young people but more mature farmers who have recently entered the industry. “When you’re advocating you want to understand what is affecting people who’ve just entered the industry,” Mr Jenkins said. “They will have a different outlook to someone who’s been in the industry for 50 years and not far off retiring. It’s good to gauge both ends of the spectrum.” There will be no age limit on the program. The policy council meets 8-9 times per year. Mr Jenkins said under the scheme young farmers who are not official paid members of the UDV could deliver industry issues from and to members and other farmers within their districts.
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DAIRY NEWS AUSTRALIA MAY 2016
NEWS // 9
Young farmers look to the future JEANETTE SEVERS
YOUNG DAIRY farmers
will need to be more business and technology savvy than their predecessors, and be willing to move around to pursue the best opportunities and partnerships. That was the message from a range of speakers at the inaugural young farmers conference at Lardner Park’s Farm World in Gippsland last month. The diverse agenda included succession planning, virtual fencing, support networks for career success, the importance of agricultural production to Victoria’s economy and mental health. Farmer and University of New England researcher, Zac Economou, spoke about the possibilities and limitations of virtual fencing, using collars on livestock to remotely graze animals. While the possibilities were virtually endless, the research had been fairly limited; and global animal welfare activism could limit its adoption. “Sheep and cattle are fast learners – a couple of hours into the trial, they’ll stop pushing against the boundary with a 100% success rate. As far as production benefits, it is the holy grail of rotational or strip grazing. “But the research has been on small numbers of livestock grazing on small land areas or in barn systems in Europe,” Mr Economou said. “There needs to be a lot of adaptation for Australian livestock farming systems. “Overseas, there are significant concerns about the electric charge zapping the animals and in Australia legislation varies between states. “While there’s a perception of risk, people will think it is a very risky system to take on.” In Australia, technology to support this and other systems was also an issue. “There’s an over-promotion of wireless products – it needs to be robust, needs to have
compatibility with handheld devices and how long the battery in your phone or tablet works for,” Mr Economou said. “So solar powered charging devices using remote GPS could work; you don’t want to be taking all collars off your cows and hanging them up to charge. “And, the bottom line, it needs wireless connection to work – which we know is not possible in a lot of rural Australia.” The future of dairy was larger farms, employing more people in a range of modalities – share farming, joint venture ownership, equity investment and direct employment – according to Shane Hellwege, Dairy Australia. “By 2025, our growth in milk production will be 11.5 billion litres,” Mr Hellwege said. “But the number of dairy farms will be reduced; and the average herd size for farms will be mid-high 400s. “Whereas in 2015, 35% of farms were owner-operator with 49% employees (including owner-operators), that will grow to 60% employees by 2025. Or, in real numbers, growth from 24,000 now, including owner-operators, to 25,000 employees by 2025, with less owneroperators.” He said learning needs and skills development would change, with more standardised practices across farms. This would also make for a more mobile workforce. “There will also be a growing need for high level technical and business management skills,” Mr Hellwege said. Dairy consultant John Mulvaney said the historic concept of normal farming should be “buried and dead” – especially that of owning land in order to build a capital asset. “Land is so expensive. Australians need to become open to variable equity ownership schemes that already work overseas, in Britain and New Zealand. It’s possible to own a herd and mobile plant in 4-5 years, with-
out owning land,” Mr Mulvaney said. A panel of young farmers offered frank advice on building succession planning into daily operating and business management systems.
Allowing the younger operatives to make mistakes was a common thread. Separating each partners’ business within the overall strategy also helped.
Damian Murphy, Stuart Jennings, Robert Bayley and Tim Paulet speaking at the conference. Photo: Jeanette Severs
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DAIRY NEWS AUSTRALIA MAY 2016
10 // NEWS
Budget delivers modest wins to develop ag sector FEDERAL TREASURER Scott Morrison delivered a modest, mostly positive Budget for the Australian agricultural sector in last week’s Federal Budget, with small businesses set to reap the rewards, according to WAFarmers president Tony York. Key agricultural highlights include a tax cut for small business, an increase in the unincorporated small business tax discount, $15.9 million over four years to build an advanced analytics capability to support biosecurity and a new National Water Infrastructure Loan Facility. “For the most part, we are happy with the modest gains for the agricultural sector delivered in the 2016 Federal Budget,” Mr York said. “Agricultural competitiveness, infrastructure and transport, tax, public finance and small business, and water and natural resource management were all addressed. “Small businesses in particular are set to reap the rewards – a 2.5 per cent reduction off company tax rates (from 30 per cent to 27.5 per cent) from 1 July this year for companies with an annual turnover of less than $10 million is quite significant. “Additionally, the increase of the unincorporated small business tax discount from five to eight per cent from 1 July 2016 for small businesses with a
turnover of less than $5 million, plus the streamlining of GST reporting for businesses with a turnover of less than $10 million will present greater opportunities for growth. “We also warmly welcome the Federal Government’s injection of $15.9 million over four years to develop an advance analytics capability aimed at better targeting biosecurity efforts, which will safeguard our valuable agricultural resources against threat.” Mr York said the 2015-2016 Federal Budget saw gains for the agricultural sector with the announcement of the $4 billion Agricultural Competitiveness White Paper, and that this year’s gains would build on those. Though largely pleased with the results, Mr York acknowledged there was a glaring hole in the Budget. “The Budget did not include any changes to the proposed increase in tax payable by backpackers, despite fierce campaigning from key industry stakeholders, including WAFarmers,” Mr York explained. “By neglecting to apply recommendations from industry to the proposed backpacker tax, we believe the government has seriously jeopardised the future of the Australian agricultural sector, among others. It is definitely a failure on their part.”
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Ag fund offers hope VICTORIAN DAIRYFARMERS
want to tap into a $200 million Agriculture Infrastructure and Jobs Fund to upgrade the state’s power supplies. The United Dairyfarmers of Victoria moved a two-pronged motion at its annual conference to call on the State Government to take responsibility for funding a comprehensive upgrade of power lines and to advocate to Infrastructure Victoria to explore upgrading energy sources in the south west dairy region by tapping into the $200m fund. The move was prompted by Tyrendarra farmer Bruce Knowles (as highlighted in last month’s edition of Dairy News). Mr Knowles, (pictured above), welcomed the support. “It’s a very good result and I think it gives us a good chance to get something done,” he said.
The UDV wants SWER and single phase lines supplying dairy farms to be converted to three-phase sources. UDV president Adam Jenkins said inadequate and ailing infrastructure was a widespread problem across the state. “It’s not just the Tyrendarra area without three phase power; there are patches throughout Victoria,” he said. “A lot of the infrastructure is getting older and there has been a lack of investment in upgrades so we need to advocate now to make sure we’re staying ahead of the curve when it comes to power.” The motions were put by the Wannon branch which believes the lack of three-phase power is limiting dairy industry development. Infrastructure Victoria will be tasked with ensuring Victoria’s immediate and long-term infrastructure needs are identified and prioritised
based on objective, transparent analysis and evidence. The State Government $200 million Agriculture Infrastructure and Jobs Fund is being established from the lease of the Port of Melbourne. The Fund will support investment in agricultural infrastructure and supply chains to boost productivity, increase exports and reduce costs so farmers, businesses and industries can stay competitive. The Victorian Farmers Federation is also expected to debate a motion about infrastructure requirements at its annual conference in July. Mr Knowles said additional support from the VFF and the general community would prove the need for improved infrastructure. “It’s not just for dairy; it’s for everyone. If we can show community support I’m confident something will happen.”
Tighter ties with VFF on water issues
www.dairynewsaustralia.com.au Available every month
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THE UDV wants to ensure dairy farmer voices are being heard in decision making about water, voting at its annual conference to actively engage with the Victorian Farmers Federation (VFF) Water Council. President Adam Jenkins said northern Victorian dairy farmers use just over half of the available irrigation water in the Goulburn Murray Irrigation District and produce about 25% of Australia’s milk. Water policy issues within the VFF are dealt with by the VFF Water Council and the UDV is bound by VFF
policy positions and needs to reflect those positions in representations with media and other public opportunities. Mr Jenkins said the motion was designed to ensure everyone heard the voice of dairy farmers. “We want to make sure people understand the value of all our commodities to the Victoria and Australian economies,” he said. “Dairy provides a good economic and sustainable business for the region and water is the biggest issue facing the region, along with the volatility of the market and milk pricing.”
Mr Jenkins said northern Victoria was like many other parts of the state and facing escalating issues from the lack of rain. The high cost of purchasing water, around $300 a megalitre, is stressing many farms, particularly younger enterprises that don’t have access to permanent water. “It is pushing the boundary of economics but we hope to get connection programs sorted so $300 a megalitre may go further than before with modernisation of facilities,” Mr Jenkins said.
DAIRY NEWS AUSTRALIA MAY 2016
NEWS // 11
Research bridges gap between raw and processed milk PAM TIPA
NEW ZEALAND
researchers are about to begin looking at how to gain the health benefits of drinking raw milk without risking the pitfalls. Dr Alison Hodgkinson of AgResearch is partnering with Maori-owned milk processor Miraka to look at producing ‘Growing Up’ milk for toddlers which retains the natural protection of raw milk against allergies. She says many epidemiology studies in Europe show a connection between drinking raw milk and fewer allergies. “Surveys of thousands of people have found that farming people who drink raw milk have a lower incidence of allergies – all types of allergies,” Dr Hodgkinson explained to Dairy News. “It’s not just people on farm drinking the raw milk and getting the benefit; the city dwellers who get farm milk and drink it have reduced allergy risk.” She says they don’t advocate people drink raw milk because it contains bacteria and has limited shelf life. People who drink it from farms tend to get it fresh every day. “There are strict rules and regulations about making the milk safe; the trick is to make the milk safe in such a way that it retains some of that benefit.” The project is looking at how to retain immunetype proteins in milk after processing; normally they get damaged during heating.
Under a Primary Growth Partnership for the last three years, Miraka has worked extensively on manipulating the processing which will allow them to retain some of this immune activity, she says. “We are now going to see what benefits retaining some of those proteins that are in an active form might have in reducing allergy and seeing if that is what is happening in raw milk,” she says. The project was successful in the New Zealand government’s High Value Nutrition funding round late last year. Dr Hodgkinson told a High Value Nutrition conference in Auckland last month that it is well known that allergy is on the rise and it is a major health issue in many countries – in particular food allergy. “Two to three percent of infants in their first year of life will develop a cow milk allergy and 5% of children develop food allergies. The majority of these children will grow out of the problem. But persistent sensitisation is leading to an increased risk of later allergy.” A proportion of infants start with dermatitis and go on to develop food allergy, hay fever and asthma. “Ideally we would like to reduce the risk of children developing allergies. There’s good evidence to suggest there are good opportunities for this in the first 1000 days of life – that’s from conception through to two-three years of life.” However an experiment with mice has shown
that feeding mice different milks gives a different allergy response. “Our hypothesis is that a safe milk product using special processing techniques to preserve heat sensitive components will retain health bene-
fits associated with unprocessed milk. “Miraka will develop a Growing Up milk product for toddlers and in our research plan we will develop and validate models that demonstrate this product has protec-
tive effects.” They will identify potential biomarkers that could be used in clinical trials. They will also look at the optimal timing and dose to get the best effect from the product.
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New CEO role LIVESTOCK SA and the South Australian Dairyfarmers’ Association will welcome a new chief executive officer this month – Andrew Curtis. The CEO position is a joint role between Livestock SA and SADA – a first for both advocacy groups in South Australia. Mr Curtis will replace current Livestock SA CEO Deane Crabb and SADA CEO Ken Lyons. Mr Crabb will step back to a policy officer role within Livestock SA while Mr Lyons is taking on a leadership role with successful South Australian milk brand SADA Fresh. Livestock SA president Geoff Power said the joint role recognises the common issues faced by producers in both industries and that there is significant synergies that can be captured for both organisations.
Dr Alison Hogdkinson, AgResearch.
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DAIRY NEWS AUSTRALIA MAY 2016
12 // AROUND THE REGIONS
WESTERN AUSTRALIA A BUMPER crowd of more than 400 turned up to this
Western Dairy regional manager Esther Jones with Darren Merritt, Elgin Dairies.
year’s Dairy Innovation Day in Boyanup on April 28. Organised by Western Dairy and hosted this year by Darren and Sharon Merritt of Elgin Dairies, the day was an opportunity for farmers in the region to catch up, see some of the latest technology, products and machinery and tour the Merritt’s farm. The day was capped off with a three-course dinner and presentation of the WA Young Farmer of the Year Awards. The event’s auction was a highlight, hosted by local legend ‘Tiny’ Holly, whose colourful auctioneering style helped raise more than $6000 for some of the state’s young dairy farmers to tour New Zealand. PICTURES: MADELEINE BRENNAN
Paul Bloom from Coopers Animal Health demonstrates how to orally prescribe the Trifecta triple action drench.
Kahlia Beers and Kirsty Mobila from CSBP, Kwinana.
Western Dairy’s Esther Jones, Kirk Reynolds and Jessica Andony.
WAFarmers Dairy Council president Phil Depiazzi, who will step down from the role in July, pictured with wife Leanne at the dinner.
Brain Armstrong, Northcilffe, with Dean Barbetti from Waterloo
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WA Young Farmer of the Year winners Brentin Mathews (left), who works for Peter and Grant Evans and family, Busselton (Employee category) and Lachlan Fry, Bengar (Owner/ share farmer category) are pictured with Browne’s managing director Tony Girgis.
DAIRY NEWS AUSTRALIA MAY 2016
AROUND THE REGIONS // 13
Elgin shows confidence to invest MADELIENE BRENNAN
DARREN MERRITT
doesn’t do things by halves. The third generation farmer, who opened his farm, Elgin Dairies at Boyanup, to visitors as part of Dairy Innovation Day last month, will soon start milking his spit herd of 740 Holsteins in the farm’s new $1.7million dairy. And with next to no sickness or mortality rates, he’s already reaping the rewards of his newlybuilt calf shed, which comfortably houses up to 120 calves and is easier to clean. It’s an operation that puts both the comfort of animals and staff top of mind. Darren, who runs the business with wife Sharon and their children Natalie, 25, Chad, 23, and Jesse, 17, said with a five year contract secured two years ago with Harvey Fresh, it was time to lift the bar. “I like to do things well or not at all,” Darren said. “And as the saying goes, if you keep doing as you’ve always done you’re going to get what you’ve always got. “So it was time for change, to do things a lot better and get more professional.” After a couple of trips to the US seeking out ideas, Darren chose a 24-aside rapid exit herringbone from DeLeval. He designed the 36m x 22m dairy, which includes a 10 metre lean to on both sides (one for
the milk room and plant and the other for cattle treatment), with a 10m x 32m staff area on the front which includes a kitchen and office. “I realised I’ve got to build a dairy not for myself but for my staff because it wasn’t me that was going to be milking 700 cows too often, I’d be running the rest of the business.” He says the parallel herringbone allows for two staff in the dairy at once in a clean and comfortable environment. “The staff get a real relationship going amongst themselves and so the work is not so tedious and boring.” Attracting good staff, as well as inspiring his own children to continue to work in dairy, was a key reason for the investment. “It’s easy to get negative,” he said. “Some older farmers think ‘I’ll just run this old shed out and get out, retire’. “And while they have that mentality the son is going to look at their father and think ‘well I’m not going to put up with that old tractor, I’m not going to milk in that old dairy’. “If you’re not making the investment then the next generation are going to think, ‘well I’m not going to step into your boots’. “But if you make the investment and make the workplace a whole lot more enjoyable and exciting it gives them a different outlook on farming.” Darren said being in WA and knowing there would always be strong
demand for local milk also helped inspire the decision to invest. “There’s not going to be oversupply here.” With recent rain, Darren said they’ve had a good season, with production up this year from 6.3 to 6.5 million
litres, averaging about 8000 litres per cow. Since buying his brother’s farm in 2008, and then leasing more land from neighbouring cattle properties, it’s clear Darren has had a firm idea of where he wanted to take the business.
“I left school very early, I didn’t complete year 10, but it’s all I’ve ever done and I’ve spent a lot of hours doing it and if you do something that long you become good at it I suppose. “Plus I just like milking cows and growing grass.”
Darren Merritt in his calf shed.
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Dairy News aUsTraLia february 2016 DAIRY NEWS AUSTRALIA MAY 2016
18 // markets 14 // AROUND THE REGIONS
New South Walesto dairy Western Australia Price slump not unique Investing in people Sam on a mission
tHe world economy has veered into some difficult and dangerous waters, suggesting 2016 will be a long hard year of slow recovery in prices SAM NICHOLSON is on a in global food commodity markets – mission to inspire more young including dairy. “Hire for character train for skills,” people to join the dairy industry. AS The MANY dairy farmers would already perfect storm has struck. Steve said. “It’s a bit of a mantra.” The recently-appointed know, managing cows is a lot easier than Major food and oilseed commodity When it came time to redesign his dairy DairyNSW Young Dairy Network managing people. prices are at low points in the cycle and calf shed, Darren also kept staff com(YDN) coordinator wants to attract But as Steve Stanley from Team Smart with inventories high. It’s not just food fort top of mind. a new generation of farmers to an told the large crowd at WA’s Dairy Innoof course, oil and other major metal “If there’s good people to be had out industry with a bright future. vation Day last month, it is possible to get commodities are at prices not seen for there, we want to be the point of differ“There are so many opportunities great performance from your people – proabout a decade. ence and whereageNDa they end up.” for a variety of jobs in this industry vided aredemand preparedside, to make it a priority, Onyou the China, the fresh Local beef farmer Paul O’Meehan – you don’t just have to be a milker and perhaps seek out professional advice. largest growth economy in the world, sTeve speNcer said he was six years into a program that putting cups on,” he said. Darren Merritt, from Elgin Dairies, has the brakes on. changed how he managed staff, and that Sam (pictured) hopes has This been working with Steve for the past year started with little regular reviews of values, procedures and Australia can follow the lead of 8change months. in OPEC’s production stance, the supposed break-even costs of operations had transformed his business. New Zealand where he spent the He has five casual milkers working for and little hope for collaboration given production of crude oil for most major “I don’t see myself as the boss, I see past year studying agriculture at him said setting core values as aand team, exporters. newand tensions between Saudi Arabia myself as the coach of a footy team,“ he Massey University, after winning for everyone to work by, had made a signifHistorically, there has long been Iran. said. a Dairy Australia Farm Business icant difference. The outlook suggests a sustained a close correlation between crude He said having an independent mediManagement scholarship. The staff, which includes the couple’s This points to a bigger worry, that Low oil prices have combined producers. petroleum glut, unless there is a strong oil prices and the prices for major Hemisphere ator – such as an HR consultant – had “I was inspired by the of sanctions to weaken the Russian the world economy will be adversely three children, also developed a key motto Low oil prices can be a friend to amount dairy with surge in demand – which I’ll come back food commodities, including dairy stopped any becoming too perinvolvement young people haveeconomy, in for the farm: No compromise. No excuses. ingredients and have made a bad financial affected by the slowing of China – more producers. anddiscussions feed grains. to later. sonal and had instead created a culture of the industry in New Zealand,” Sam No exceptions. than the economists at the IMF and Cheap fuel can lower the costs of situation far worse in Venezuela. On the demand side it makes sense This is playing out like a “game feedback for everyone said. “Whencase you’ve got everyone working The effect in these dairy markets will World Bank are currently suggesting. milk production, reducing equipment weak economic activity reducesin the theory” study. The OPEC cartel in – constructive “Thecommodity study helped to youngand people butpredict, he adds that Metal business. are cost our offuture the sameadirection, just ticks,” prices me are low be uneven hard to as the costs as people well as the for fuel and can weaken some and energy“Young started price wareverything to dominate the demand understand more of the science there are good models, such as share “Everyone, including me, has a chance farmers and the ones with new Darren said. dependence on oil, production costs, largely because construction activity fertiliser. global energy market in the third food markets. behind the farming and then farmingfood andbuying lease farming, get a grilling, gets put through the ringer Lowideas. to doalso everything He also longer hires “the first person to industrial outputsystem in China have government activities which and and crudeWeoilneed prices make we While the trends lines move quarter ofno 2014, signalling their intent put what I learned in the classroom can provide pathways. a bit,” Paul said. can to get them involved.” that comes down the driveway”. to increase production and drive uncannily together, it doesn’t mean oil biofuel production less attractive, the financial states of oil economies stalled. “You can start as a relief milker into “Wethe talkchanges about all the things we want Sam, 23,more is one two YDN is he too fussed if that low-cost person has is behind Lowpractice.” metal commodity markets can vary significantly. potentially ensuring feedof supplies in dairy and grain outNorcompeting alternate says there’s a and confident vibe and eventually buy your own cows the person to stop doing, start doing and coordinators in New South Wales dairy experience; fitting into the team and several developed developing But the developing world including harm Sam which helps support margins, even technologies (such as shale oil) and prices. about dairy in New South Wales, and build equity. I want to create continue doing.” and covers the mid-coast and the right attitude mattered most. Dairy prices have slumped low due when dairy prices fall. This has certainly MENA has a number of large dairy economies, weakening investment renewable production using corn and thoughand farmers stilldown have to to affect cope awareness these different trickling that are alsoof oil importers whose activity case forregions. Northern Hemisphere buyers to excessive supply from abundant grass been theHunter soybeans. with environmental challenges and pathways,” he said. The part-time YDN job connects economies should benefit from lower household sentiment and discretionary So much for the planet! This is about growth, low feed grain prices and the suppliers. price volatility. The YDN job was advertised him with the broader farming spending. However, low oil prices have mixed fuel and energy costs. short-term painful price competition loss of a couple of big buyers from the “Overall it’s quiteAustralia positive,”ishea whileoil Sam was inmeanwhile New Zealand and Post-mining-boom community and he is still heavily Weak prices also effects on dairy markets. to knock out rivals, and ensure a finite global market. said. he was so keen that he flew home for involved in his family’s lease farm In the developed EU and US ensure low prices for palm oil, used good example of this. Grains and oilseeds markets are energy resource remains the dominant “The Trade with Agreements with parents, Geoff improves and Megan,widely at anasinterview. The US Free is another, analysis a competitor and substitute cheap fuel well-supplied due to good weather in economies, choice for industry and consumers. with key export markets, the “It’s a great personal Lansdowne near Taree. suggesting that low oil prices are likely Prices have been driven to levels most major regions – our enemy El household budgets, freeing up a bit for dairy ingredients. westernisation of diets and the development opportunity and a In his YDN role, Sam promotes So on balance – what does the to hurt rather than help that economy not seen since 2004, well below Nino tends to be kind to many Northern more cash for dining out. many learning curve Legendairy they household stay lowerincomes longer, indespite futuregreat hold for oil prices andfor the me,” globalhe if rising We’vethe alreadyindustry’s seen US food service Asian countries will create many said. communications initiative via social lower costs of running SUVs and road grow strongly in 2015 soaking up more economy? opportunities Sam grew up theindicator 300ha leased networks and organising fleets. and there are a lot One important buton odd of transport cheese media and milk. The question is of resources to help are farmers to family farm and loved the freedom social and educational events that So dairy commodities not alone whether it can keep that growth rate economic conditions is the Baltic Dry improve their business and their and connection to the land and develop and build the capacity of as bottom-dwellers – most hard and soft Index of shipping costs. surging in 2016. profitability.” cows. young farmers improving The prices are at historic lows, index has long been a forward commodity Lower fueldairy costs can by improve On reasons the home front, things are “When you’re a dairy farmer their knowledge, skills, confidence – including some that economic prospects for countries indicator of the fortunes of the world for many looking good for the farm which you have a sense of being part of and leadership abilities. dependent on fuel imports, lowering economy, and is now the lowest since are interrelated. a mixed herd 220 cows. is a community,” “The objective is to attract The unwinding of of this situation its inception in 1985. he said. “You get milks overall costs ofmain manufacturing and “We’ve had a good spring attached to the land around you and retain young people in the dairy This largely reflects the slowing the same for them as it is for dairy.and transport, including shipping and more aroundwill Christmas has set and in youand build industry,” he said. Dairyrain demand be stimulated outa relationship of China as with it improving the affordability of dairy of trade up a good season. It should progress the cows and nurture them from “A lot of people just think a dairy transitions to a consumer-led economy with more affordable food and imports. to an ideal season,” Sam said. early age. one. farmer up there at a ridiculous consumer goods. from an a trade-driven On the othergets hand, are risks time Sam’s ultimate is to own “When I was at school I’d help and milks cows, but there’s a lot Low milk prices dream will eventually It also reflects the build-up of for dairy demand, as low oil prices a farm, following in his dad after school and on the holidays more to it than that. Programs like will slow can harm the economies in some capacity with the promise that China discourage production, supplyparents’ footsteps butwill expanding with new something kepttwo-way up when trade) I went to and Legendairy and the Young stockpiles reduce to normal (and -its hunger Ifor major oil-producing regions whichDairy ideas and technologies. boarding school and when I studied Network show how attractive the levels. are also large dairy importers, such as would just keep growing. “I sobering want toreality always open to Agricultural Business Management industry is.”East, North Africa The forbe dairy is that The index suggests the demand side those in the Middle Steve and Darren opportunities,” he said. at Charles Sturt University in Sam says the capital costs of speaking to the audience (together known as MENA), Russia and of the oil market will be sluggish for these effects may take all of 2016 to at Dairy Innovation Day. Source: getting into dairy can scare some develop and then some.Dairy Australia someOrange. time. Venezuela.
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DAIRY NEWS AUSTRALIA MAY 2016
AROUND THE REGIONS // 15
Murray Dairy Stepping up or stepping back? DON’T MISS your chance to see the last of the cur-
rent round of Stepping Up Stepping Back workshops in the region. These sessions been developed to assist those looking to take the next step in their dairy career, and those who are looking to transition out in an effective way. The one-day workshop is designed to be interactive and inclusive. Participants will also receive a resource kit to take away. Thursday 12 May at Tangambalanga Community Centre Time: 10.30am – 3pm Lunch is provided. Contact Sarah at Murray Dairy on (03)5833 5928 or email saraht@murraydairy.com.au to RSVP.
SubTropical New look website QUEENSLAND DAIRYFARMERS
Organisation has launched its new look website. The site allows members greater accessibility to news and membership content. QDO encourage you to take a look and provide feedback on the content and usability of the site. Visit www.dairypage.com.au
Western Vic Don’t miss a great night out THINGS ARE gearing up for the 2016 Great South
West Dairy Awards. The nominations are finalised with an impressive number of south west farmers, employees and service providers in line for well-deserved commendation. The awards, now in their 11th year, recognise the best and brightest in the industry. Nominations have been received in each of the eight major categories which include; Farm Business Manager, Employer, Employee and Sharefarmer of the Year, Young Farm Leader, Natural Resource Management and Sustainability, The Honour Board and Farm Photo of the Year. Event coordinator Liza Fahey was thrilled with the high number of quality nominations. “It is great that we can all come together and celebrate the great work dairy farmers do every day of the year, during the good times and the tough times.” Thursday, May 19 at Deakin University Warrnambool. Tickets on sale now through WestVic Dairy Ph: 5557 1000.
Tasmania Attract the right staff to your dairy business THIS TWO-DAY workshop will help people employing
and managing staff with recruitment and inducting people into your business. Workshop presenters Penny Williams (dairy consultant) and Sharni Radford (NCDE/TasTAFE AgriBusiness trainer) will provide fantastic information to help you with any staff recruitment questions. Using the ESKi (Employment Starter Kit initiative) and the People in Dairy website, participants will get hands on experience in how to recruit, select, induct and supervise the right person to suit the job. Deloraine May 17 & 31; Scottsdale May 18 & June 1, 9.30am to 2.30am . Cost $98 (ex GST) phone 6477 7480 or email admin.primaryindustiesnw@tastafe.tas.edu.au
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South Australia Herd innovation and business inspiration THE DAIRYSA Innovation Day 2016 will hear from some of the dairy industry’s leading researchers on the latest tools and innovations in managing transition, as well as be inspired in operating and building your business. The session will be
examining transition feeding, temperature control, using technology to manage cows and methods for improving milk production. In the evening, from 6.30pm, don’t miss out on the dinner for a night of guest speakers, networking, a superb
two-course meal and the opportunity to get together with old and new friends. Thursday, June 2 from 9.30am at The Barn Palais, Mount Gambier. Contact Rebecca Hehir on 0418 951 324 or RHehir@ dairyaustralia.com.au
DAIRY NEWS AUSTRALIA MAY 2016
16 // AROUND THE REGIONS
Crowds welcome Farm World’s dairy theme Gippsland JEANETTE SEVERS
AN INCREASED 14% attendance, to
57,000 people over four days, was attributed to the theme ‘Dairy – an industry on the move’ at this year’s Farm World at Lardner Park, last month. “It was a very strong theme that pulled together exhibitors, trade stalls, sponsors and events,” said Angela Betheras, chairman of Lardner Park Events. A total 750 exhibitors, also an increase, reported good interest in and sales of equipment across the field days. The crowds were obvious throughout each day and many young families turned out for the event. The annual women in agriculture lunch kicked off Farm World’s first day. Guest speakers this year were Janet Moxey, Dr Sinead De Gooyer and Kelly Ward, all involved in the dairy industry. “The lunch has become an established part of Farm World and Thursday is now known as Ladies Day,” Angela Betheras said. “About 190 women attended the lunch and heard about joint venture partnerships, day-to-day management of a dairy farm, health issues including mental health, share farming and using social media to tell stories about dairy in Australia.” The following day saw technology discussed during breakfast, where investment was compared against return on asset. “Australian farmers are very innovative and are at the forefront of developing technology,” Angela Betheras said. “We were asked ‘were we prepared to adopt technology in agriculture?’ and the overall assessment was only if purchase was supported by a valid reason to spend the money. “Purchasing technology, like any farm asset, had to be balanced against improving production – for example, was it better to invest in more land to plant crops or would investing in new technologies achieve a similar return? “Farmers are conservative investors in equipment and technology, compared to mining companies. “The bankers attending this event revealed that, rather than production returns, it is low interest rates causing farmers to borrow money to invest in capital assets like equipment and technologies.” A new event this year was the young farmers conference. “Every year we have a new event and this year it was the young farmers conference,” Angela Betheras said. “We’ll repeat it and I think we’ll extend the succession planning panel session – that generated a lot of discussion and I think we need to give it more time.”
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DAIRY NEWS AUSTRALIA MAY 2016
AROUND THE REGIONS // 17 1. Lardner Park Events board chairman, Angela Betheras.
2. Kylie, Travis and Jetta (20 months) Hamilton, Nar Nar Goon, were looking at tractors at Farm World, including this New Holland T6020.
3. Alice Peillon, Drouin, with Coopers Animal Health, worked at the Brown Wigg stand and tried out a can-am AWD Outlander with 50 litre Goldacres spot spray unit.
4. John O’Reilly thanked Lloyd Missen, Gormandale, for buying the Leicht’s Stockman’s Cattle Crush, manufactured in
Australia and among the range of equipment on show at Farm World.
5. Dairyfarmers’ children, Claire (5), Matthew (7) and Rachael (4) Finger, Yanathan, enjoyed yoghurt at the Burra Foods stand.
representatives, Melina Bath and Senator Bridget McKenzie, flew the flag and saw more than 500 people during the four days.
8. Tony Gasperini, a dairyfarmer at Korumburra, admitted his 200 milkers in the herringbone dairy had to contend with manual movers and automatic cup removers; but he was looking at the mini swinging brush at the DeLaval stand, with Patrick Hunt.
6. Stu Mackie, Meeniyan, an ex dairyfarmer, now works with Semex and spoke about their global database of bulls, SemexWorks, to help dairyfarmers select bulls to lower risk and breed out problems in the herd. The software program now contains genomic, proven and sexed semen results.
7. National Party state and national
9. Tim Clark, Leongatha, and his sons, Owen (15 months) and Rhys (3) looking at a Toro zero-turn mower.
PICTURES: JEANETTE SEVERS
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DAIRY NEWS AUSTRALIA MAY 2016
18 // OPINION RUMINATING
EDITORIAL
Big questions but not all for MG
MILKING IT... Gone bananas THE LATEST plant product expected to lead a retail revolution in Colorado, US, isn’t green — it’s yellow. Trying to make up for poor sales of cow and soy milk, WhiteWaveFoods, Denver, is stocking its Colorado, Indiana, Michigan and Ohio stores with a devious concoction -- banana milk. Sir Bananas, the product’s cute moniker, is a blend of 2% milk and banana that boasts 7g of protein per serving. It’s also available in a chocolate banana flavor, for those who prefer milk other than in its natural state.
Print us a milk, mate
Hi-tech from Pakistan
TRIALS ARE underway to determine if milk can be produced by 3-D printers, according to the American Council on Science and Health. They reckon it might be useful to astronauts on long journeys (Mars, anyone?), and NASA is looking into it. Basically, the process involves ‘printing’ sodium caseinate, a main protein found in milk, then adding the required other ingredients to form... ‘milk’. Along with the milk, the astronauts might also be able to print a pizza — as long as the printers work in zero-gravity conditions.
THE LATEST in wearable technology is being called the ‘fitbit for cows’. A startup called Cowlar is making a tracking device to be worn by cows and buffaloes, and the creators claim it could help farmers increase their milk yields by as much as 15%. Cowlar’s website says the product uses motion sensors to track the cow’s activity and core temperature, and relays that data via the cloud in text messages to farmers so they can better detect disease. It also allows monitoring when the animals are in heat. Cowlar is based in Pakistan, where outdated agricultural techniques drag on average milk yields compared to more highlydeveloped countries.
Advertising Chris Dingle chris@dairynewsaustralia.com.au
Dairy News Australia is published by RNG Publishing Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written
Leaping for joy A VIDEO showing Swiss cows’ delight at being let out to pasture after a long winter has struck a chord worldwide, attracting massive viewing since its posting to Facebook last week. The Pfister family’s cows in Bözen, Aargau, are shown jumping and leaping as they get to pasture for the first time in five months under sunny spring skies. “It’s one of the most beautiful moments in a farmer’s year,” the family wrote under the video. Non-farmers love it too: the video has had 1.2 million views and nearly 22,000 ‘likes’ since last month. No surprise to farmer Reto Pfister. “We just wanted to amuse ourselves and our friends, nothing more,” he told journalists.
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WHERE to begin with the questions for Murray Goulburn? How did you get is so wrong? Has the unit trust experiment failed? Is it right to saddle your suppliers with a debt burden for the next three years? How will you even start to repair the broken relationship with once-loyal farmers? What was the outgoing payment to Gary Helou worth? The list goes on ... As the country’s biggest milk processor MG had industry responsibilities, not the least of which is setting a benchmark milk price that affects farmers on Australia’s east coast. MG has let the industry down and let it down badly at a very bad time. Chairman Philip Tracey has acknowledged the co-op has work to do to rebuild trust amongst suppliers. That is an understatement. But broader questions for the industry should also be asked. Where to from here? Will our sector recover? How long will it take? And is the sector working together to ensure the number of dairy farms doesn’t continue to decline? It’s true the optimism that surrounded MG’s closing milk price of $6.05/MS was met with caution at the time. As the season wore on and global factors failed to shift, reality sunk in and most farmers never anticipated more than $5.60kg/MS. As MG works to recover farmer and investor confidence, there is a roll for the other processors to pick up the slack. Setting the right farm gate milk price is a tight balancing act where cents are as important as inches. Cut too low, and processors risk supply and more farmers leaving the industry. Too high, and they risk their own bottom lines plus putting farmer’s budgets in the red with misplaced confidence. So far, there’s been a mixed response from processors with some holding price, while others following the MG lead. Processors must take a genuine look at the value of milk and set a fair return for farmers, with due consideration to the very real market challenges that currently exist. Ultimately there will be no shareholder returns without a viable industry. We shouldn’t all have to pay for MG’s mistakes.
Editor Madeleine Brennan
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editor@dairynewsaustralia.com.au Publisher Brian Hight Production Dave Ferguson Becky Williams Sub Editor Pamela Tipa Web Cameron Wilson Published by RNG Publishing Ltd Printed by Newsprinters Pty Ltd
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DAIRY NEWS AUSTRALIA MAY 2016
OPINION // 19
Was Tasmania’s summer a glimpse of its climate future? DROUGHT, FIRES,
floods, marine heatwaves – Tasmania has had a tough time this summer. These events damaged its natural environment, including world heritage forests and alpine areas, and affected homes, businesses and energy security. In past decades, climate-related warming of Tasmania’s land and ocean environments has seen dozens of marine species moving south, contributed to dieback in several tree species, and encouraged businesses and people from mainland Australia to relocate. These slow changes don’t generate a lot of attention, but this summer’s events have made people sit up and take notice. If climate change will produce conditions that we have never seen before, did Tasmania just get a glimpse of this future? Hot summer After the coldest winter in half a century, Tasmania experienced a warm and very dry spring in 2015, including a record dry October. During this time there was a strong El Niño event in the Pacific Ocean and a positive Indian Ocean Dipole event, both of which influence Tasmania’s climate. The dry spring was followed by Tasmania’s warmest summer since records began in 1910, with temperatures 1.78˚ above the long-term average. Many regions, especially the west coast, stayed dry during the summer – a pattern consistent with climate projections. The dry spring and summer led to a reduction in available water, including a reduction of inflows into reservoirs. Is warmer better? Not with fires and floods. Tourists and locals alike enjoyed the clear, warm days – but these
conditions came at a cost, priming Tasmania for damaging bushfires. Three big lightning storms struck, including one on January 13 that delivered almost 2,000 lightning strikes and sparked many fires, particularly in the state’s northwest. By the end of February, more than 300 fires had burned more than 120,000 hectares, including more than 1% of Tasmania’s World Heritage Area – alpine areas that had not burnt since the end of the last ice age some 8,000 years ago. Their fire-sensitive cushion plants and endemic pine forests are unlikely to recover, due to the loss of peat and soils. Meanwhile, the state’s emergency resources were further stretched by heavy rain at the end of January. This caused flash flooding in several east coast towns, some of which received their highest rainfall ever. Launceston experienced its secondwettest day on record, while Gray recorded 221 mm in one day, and 489 mm over four days. Flooding and road closures isolated parts of the state for several days, and many businesses (particularly tourism) suffered weeks of disruption. The extreme rainfall was caused by an intense low-pressure system – the Climate Futures for Tasmania project has predicted that this kind of event will become more frequent in the state’s northeast under a warming climate. Warm seas This summer, an extended marine heatwave also developed off eastern Tasmania. Temperatures were 4.4˚ above average, partly due to the warm East Australian Current extending southwards. The heatwave began on December 3, 2015, and was ongoing as of April 17 – the longest such event
recorded in Tasmania since satellite records began in 1982. It began just days after the end of the secondlongest marine heatwave on record, from August 31 to November 28, 2015, although that event was
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ALISTAIR HOBDAY, CSIRO; ERIC OLIVER, UNIVERSITY OF TASMANIA; JAN MCDONALD, UNIVERSITY OF TASMANIA; MICHAEL GROSE, CSIRO
less intense. As well as months of near-constant heat stress, oyster farms along the east coast were devastated by a new disease, Pacific Oyster Mortality Syndrome, which killed 100% of juvenile oysters at
delaval.com.au
some farms. The disease, which has previously affected New South Wales oyster farms, is thought to be linked to unusually warm water temperatures, although this is not yet proven. TO PAGE 21
Summer fires got close to the Hofings’ farm at Mawbanna, in Tasmania’s central NW region. PICTURE: COURTESY DAIRYTAS.
DAIRY NEWS AUSTRALIA MAY 2016
20 // MARKETS
Looking beyond the blame game we are still inextricably THERE HAS been plenty written co-operative. part of a global market In the short-term it about the dramatic slump in the earnplace. ings and milk price outlook for Aus- seems that Murray GoulDairy companies tralia’s largest farmer-owned dairy burn’s competitors will have different business continue to honour milk company. models, product and I don’t wish to add to the newsprint price estimates for the market mixes – and difcolumn space on what, why or how that current 2015-16 season ferent abilities to flex. which were made prior to happened at Murray Goulburn. Over time, some It is now fact, it can’t be undone, and 27 April. will do much better They will do this with there is little merit or therapy gained in FRESH AGENDA STEVE SPENCER than others in outmaintaining the rage and spending time some difficulty given the performing the price realities of the dairy comon recriminations. extracted from a comWhat’s more useful is to consider the modity markets. It’s the coming seasons that matter. modity manufacturing base – “addingeffect of this sudden downturn in availDespite what will be claimed, with value” as it is unfortunately termed. able milk prices from MG on the AusBy our reckoning, the commodity tralian dairy sector as a whole, and on a 20-30c/kg milk solids finance charge individual producers considering the against their largest competitor’s milk value of milk is close to $4.50kg/MS in pool, Bega, Warrnambool, Fonterra and 2015/16. market and industry outlook. At present, with spot and forward The outcome has implications for others will be under significantly less almost every dairy farmer in the indus- pressure to optimise farmgate prices – prices in the market, we have trouble try, who can expect milk prices in the other than the need to ensure they can getting our estimate of commodity coming years to be lower than what reliably collect enough milk for their returns for the 2016/17 season to land above $5kg/MS. might have been in prospect if MG had business needs. Dairy product prices – on average That was the situation in the indusmanaged to deliver on this year’s foretry prior to 2013 and – will have to rise more than 15% (as casts. that will be the case a season average) to get there, but by This event has a for the next two sea- 25% before we can be confident milk is number impacts – on “..we have sons at least as the worth more than $5.50 again. leverage, confidence and If the A$ falls – as currency punteffects of this event reputation – in that order. trouble ers are suggesting – that farmgate price are unwound. Leverage getting our result will be easier to achieve. Confidence “Leverage” here refers estimate of Companies can and will add to this Years of research to the ability of a large commodity into what mostly commodity return via their various farmer-owned milk buyer affects the confidence activities. But it all comes back to what to positively influence returns for of dairy farmers have the biggest player can achieve, and how milk prices paid by its the 2016/17 shown that a positive much of the strategy can deliver in addicompetitors. season to belief in the industry’s tional income. In recent years, MG has land above What are the chances of either of future depends on focused on improving perthe outlook for milk those market outcomes? formance in milk prices, $5kg/MS.” On our present outlook, a recovery prices. forcing its competitors to While MG’s bal- in dairy prices is gradually underway, match or better it. ance sheet will be used but won’t really make any headway until When the major farmer-owned buyer of milk has been to sustain most of the current season’s early next year when slower growth in weakened, effective leverage at farm- promised milk price, the prospects for Europe and New Zealand ensures global the next few seasons matter most for export supply slips behind import gate can’t be sustained. demand. Almost every dairy farmer in the producer confidence. Right now, those supply and demand Dairy commodity prices drive the eastern seaboard of the industry is adversely affected, in terms of available value of milk in the industry – despite totals are running neck and neck curmilk prices, by a weakening of the major lower industry exports than previously rently, but stockpiles of powder and
Almost every dairy farmer in the eastern seaboard is adversely affected by a weakening of the major co-operative.
Almost every dairy farmer in the eastern seaboard is adversely affected by a weakening of the major co-operative.
cheese are still building. Talk of the $A falling into the low US70c range has been going for ages, but recovering mineral commodity prices may work against that. There has been an expectation created in Australia’s production sector that outperformance of the commodity value is readily achievable. In reality, it is hard for a dairy company with a large pool of milk to sustain that outperformance over time, but some have been very good at it. It needs a combination of outstanding management execution, high-quality assets and strong market and/or product and process innovation. Promising outperformance without consistently ticking all those boxes leads to disappointment. What also unsettles confidence is a broken promise or shattered belief. Time and actions to ensure performance exceeds expectation will be required to fix that in the future. But what of the confidence of investors – providers of debt and external equity? Investors in the dairy farm sector are always interested in the capacity for
Australian processors to perform well on milk prices, and despite this latest stumble, comparisons with our neighbours over the ditch are still favourable. Reputation The news of this event quickly went across the dairy world. I was in meetings with US and European industry participants in Chicago when news broke, and it quickly became the talking point of the event. All of a sudden the external perception of the Australian industry was in discussion. Does this make Australian milk supply any less attractive to international customers? No. Does it make them question the stability of milk production over time? Perhaps. Does it mean we might figure less in their plans for securing a growing pool of high-quality milk supply in future? Maybe. This aspect of reputation won’t be enhanced in the short-term, but this also comes back to confidence, and whether milk producers can take stock, adapt and press on. Time will tell.
Lean times ahead for Oz dairy Export demand remains strong Dairy NewS aUSTraLia june, 2012
agribusiness // 17
DAIRY AUSTRALIA’S
next Situation and Outlook report will be released on June 1, as a challenging season for many farmers approaches its end. The impacts of a deep and persistent trough in international dairy markets have hit Australian farmers with renewed vigour in recent weeks. Many farmers in southern, export regions have seen 2015/16 farmgate prices cut, and there is a growing sense that the 2016/17 season will be a difficult one for balancing the books. Farmers in domestic-
slightly. focused regions are Supply continues to also likely to feel some With season 2011/12 only a few incremental change in milk production (year-on-year) weeks from ending, attention is now outpace demand however, impact, and growth in focused on 2012/13 milk prices as farmand inventories in many overall Australian milkstrategies for the coming ers consider year. In some domestically-focused parts of the world (most production will be a regions, renegotiated contracts incorgLobaL impacT conspicuously Europe) are difficult ask. porating lower prices and reduced ‘tier JohN DropperT one’ access are undermining farmer building. The same confidence market and supply stability. For GLOBAL IMPACT private label DROPPERT contracts and promany to farmers in export-oriented Shifts inJOHN A relatively stable trough has failed regions, a lower price outlook relative to cessor rationalisation have seen milk domestic market has significantly dent milk the current season not only adds to the companies adjust their intake requirechallenges helped buffer the supply in most of theof doing business, but seems ments and pricing to meet the changto contradict the positive medium term ing demands of a highly pressured retail Australian industry in total spot pricesmarketplace. and weak world’s majoroutlook dairyof Asia-driven dairy Lower contract prices andexports to Greater demand a lack of alternative supply opportunithe face of international China are up 16% in comparables, dairy exporters. growth. Dairy Australia’s indicative outlook ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle up around–4% on 2011 for the yearheadwinds. to East maintain consistently higher ecolimited manufacturing Despite isterms for the southern prices – has though demand grown in capacity.volume Europe and US farm gate milk published in the recent Dairy 2012: Sit- these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that support Despite some WMP volumes are still most importing regions continue to power ahead uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. Howsurge in supply has outpaced finished theperiod. March 2012 quota yearslowing, up ever, theoverall ita dairy consumption and a growing opening price and range of $4.05-$4.40/kg trends down over the over the past 12 months, in year-on-year terms, MS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. for supermarket sales Exports to Southeast with overall tonnages up favourable weather in New This situation has seen of the scales between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish tip in favourcategories of buyers in dairy marthis season upcontinued 10% on last year - a huge 2008 countries report the widernearly market picmajor dairy Asian 6%. In the seasons following the Zealand has led toconsiders a much ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreatremain relatively to grow, strong Despite an absence of farmers smaller decline than many ing steadily over recent months. Butter exported. Argentina is also enjoyprice recovery, in is with at play; the key theme of the current sit- modity prices are down some 30% from their production growth, but a sigregions have seen solid ing being that of re-balancing in the export-oriented unchanged from growth insolid milk powder the breakneck growth of had expected,uation even after a global supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have dairy supply chain. February’s S&O report. categories, while exports recent years, China has second season of bruising Farm gate prices In regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. have subsequently been reduced in producing drinking milk, many farmers ern Hemisphere amongst those expand- ing South America. Dairy spreads continue volumes to the Middle been responsible for a margins. Despite wider economic uncer- most exporting regions. The average face a re-balancing market in the form ing output as their margins increased. basic farm gate price while for milk in France tainty, demand has remained This season, con-and of renegotiation of supply contracts to grow strongly, East Japan have eased resilient large proportion offavourable this; weather With attractive and reduced access to ‘tier one’ supply.
ditions have further enhanced milk
as importing countries like China and
for example, dropped 12% from 32 Euro
cheese volumes increased by 1.7% for the(AUD 12 months cents/litre in March 41c/L) to 28 cents/litre (AUD 36c/L) in April. toEuro March 2016. Profit margins are under pressure in the growth in US,Ongoing and in NZ Fonterra has announced the final payout for the 2011/12 season block and ingredient has been cut from NZ$6.75-$6.85/kg MS to NZ$6.45-$6.55/kg MS offset (AUD$4.96cheese segments $5.04). falls in sliced and smooth Effectively, global dairy markets are rebalancing. Lower prices cream cheeses , withwill both slow production growth and stimulate specialty/entertaining demand, and as this occurs we will ultimately see acheeses price recovery. Key factors and deli also to watch on the global scene will be the performing well (up 17% rate at which milk production overseas slows in response to lower prices, the and 4.3% respectively). impact of the current financial worries on The consumer confidence, the path of value of cheese China’s economic growth, and the value sales grew by 1.8% in yearof the Australian dollar. Demandterms, for exported dairy prodon-year with strong ucts remains a positive and will congrowth in the value of deli tinue to grow with the middle class in large specialty emerging markets such assales China, and cheese with changes in diet and with increasing helping offset price falls urbanisation - and also in conjunction global population growth. Locally, inwith the unit cost of block the domestic market is supported by a and ingredient cheese growing population and stable percapita consumption. Whilst the dairy categories. market is currently a challenging place to be a seller,volumes all signs indicate balSales forthat fresh ance will ultimately return.
milk are holding steady, while volumes and values for yoghurt and dairy snacks have eased. Infant formula continues to sell strongly, with growth of over 30% in sales through the supermarket channel, though the balance of Australian consumption and grey market exports is much less clear. The 2015/16 season has been characterised by challenging seasonal conditions for many farmers. Rainfall across the country has been variable but generally below TO PAGE 21
DAIRY NEWS AUSTRALIA MAY 2016
MARKETS // 21
Lean times ahead for Oz dairy FROM PAGE 20
average, and while April was forecast to provide a much needed autumn break, rainfall for the month was lower than predicted. Constrained pasture growth has coincided with a tight market for hay, while lower international grain prices have taken some time to flow through to the Australian market. For irrigators, low allocations and high demand have driven temporary water prices to post-drought highs. Fertiliser remains a
bright spot, and a more favourable rainfall outlook suggests farmers may be better placed to take advantage of an ongoing global oversupply to grow more feed on farm, where cash flow allows it. Confidence amongst farmers, as measured by the National Dairy Farmer Survey, showed a modest fall on average (down 1%) from 2015 to 2016, based on the annual survey conducted in March. However, industry developments will significantly impact confidence, as the
Was Tasmania’s summer a glimpse of its climate future?
challenges that lie ahead influence budgets for the upcoming season. A global market turnaround remains some way off, though the Australian market remains
Dairy commodity price history. Source: Dairy Australia.
stable and some relief from elevated input costs is likely. There is little doubt however, that 2016/17 will be a difficult season for many.
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Compounding the damage Tasmania is often seen as having a mild climate that is less vulnerable to damage from climate change. It has even been portrayed as a “climate refuge”. But if this summer was a taste of things to come, Tasmania may be less resilient than many have believed. The spring and summer weather also hit Tasmania’s hydroelectric dams, which were already run down during the short-lived carbon price as Tasmania sold clean renewable power to the mainland. Dam levels are at an all-time low and continue to fall. The situation has escalated into a looming energy crisis, because the state’s connection to the national electricity grid – the Basslink cable – has not been operational since late December. The state faces the prospect of meeting winter energy demand by running 200 leased diesel generators, at a cost of A$43 million and making major carbon emissions that can only exacerbate the climate-related problems that are already stretching the state’s emergency response capability. Is this summer’s experience a window on the future? Further study into the causes of climate events, known as “detection and attribution”, can help us untangle the human influence from natural factors. If we do see the fingerprint of human influence on this summer, Tasmania and every other state and territory should take in the view and plan accordingly. The likely concurrence of multiple events in the future – such as Tasmania’s simultaneous fires and floods at either end of the island and a heatwave offshore – demands that governments and communities devise new strategies and mobilise extra resources. This will require unprecedented coordination and cooperation between governments at all levels, and between governments, citizens, and community and business groups. Done well, the island state could show other parts of Australia how to prepare for a future with no precedent. • This article first appeared in The Conversation www.theconversation.com
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22 // MANAGEMENT
Eyeing three million running one third as fresh milkers and two thirds in the main herd on quite different diets. QUEENSLAND They have been FARMERS Paul and growing herd numbers by Linda Roderick aim to using sexed semen for the produce up to a million past two years and took more litres of milk a year the opportunity to buy in by adopting a partial WHO: Paul and Linda 40 crossbred and Friesian mixed ration feeding Roderick heifers. system and splitting their WHERE: “We thought we’d sell milking herd. Harrisville some excess animals for Per cow production WHAT: export, but after a couple is expected to lift from Partial mixed ration of good years season8000 to 9000 litres and wise, we decided to keep their milking herd is constraints to production them,” Paul said. rising from 240 and will The property produced on their 220ha property be reassessed at 300. 1.9 million litres last Paul is fifth generation with summer seasonal financial year, up from 1.7 conditions particularly on the property Tredegar in the previous 12 months. challenging. Park at Harrisville and “We are aiming to “We thought we after 20 years working reach 2.5 million, but probably reached a with his parents David think 3 million litres and Gwen he and his wife production peak at about could be achievable,” he 8000 litres per cow and are now taking over the said. to milk more cows we family business. The fresh With milkers are expansion “We’ve suffered some intensively plans in mind, terrible heat-related setbacks fed for about Michael in the past with production the first Sweetnam dips of 10 and up to 20%. And 100 days of was this year lactation, but engaged as herd it takes time to recover back still get up to co-manager to normal production.” 25% of their to share the diet from increasing grazing in winter and needed to build a new feeding and nutritionspring. feed pad,” Paul said. focused workload. “We want to get them “But at the same time Paul is an active to peak production more to maximise profits we participant in industry quickly and then hold need to make the best research programs and them at this plateau for use of available pastures is excited about the longer.” which will always be our potential of improving Paul said there had cheapest feed input.” milk yield through already been benefits with Their milking herd genomics. new heifers settling into was split in June last year However, he said with the aim of eventually a smaller herd quicker there were physical GORDON COLLIE
Paul Roderick and Michael Sweetnam at the covered feed pad. PICTURES: GORDON COLLIE
and with reduced early lactation weight loss. Getting physically well-developed early milkers is expected to provide long term benefits in better body weight which should flow into better reproductive performance. The early lactation herd will jump from 84 to 98 milkers to fit with their
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14-a-side herringbone. The dairy has been improved with the addition of a roof over the holding yard. “It provided an immediate benefit during the peak heat last January when we also operated overhead sprinklers,” Paul said. “We’ve suffered some terrible heat-related
setbacks in the past with production dips of 10 and up to 20%. And it takes time to recover back to normal production.” The property comprises about 80ha devoted to cropping and pasture production with the balance tropical grasses. About 90% can be irrigated with a 400
megalitre licence from Moogerah dam. Depending on seasonal conditions, there is a mix of full cultivation, minimum tillage and zero tillage with kikuyu mulched down and oversown. By far their best pasture production is annual ryegrass with other paddocks oversown
DAIRY NEWS AUSTRALIA MAY 2016
MANAGEMENT // 23
litres
PICTURE GORDON COLLIE
feed ration with more emphasis now on grain at the feed pad. The new roofed feed pad is 42m long and 5m wide with 2.4m side aprons designed to feed about 120 cows at a time. Paul said there were plans to build two 42m by 5m free standing shade structures either side of the feedpad to provide comfortable cow loafing areas out of the hot sun. The dairy receives a 4 cents a litre incentive payment from February to May with 2 cents in June and July. “There is also a 10 cents a litre incentive for milk production over and above the previous year and we are looking forward to taking advantage of that while the herd is in expansion phase,” Paul said. “I think a price somewhere around 60 cents a litre should see Queensland production consolidated with not much growth. Anything below that and the northern industry will continue to decline.”
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ryegrass with clover and chicory which provide cheapest feed bulk from mid-May to the end of November. The pad feeding system really comes into its own during the summer months when grazing is restricted to a forage crop such as lab lab, kikuyu and lucerne. “Our feeding program can change almost daily with the mixed ration adjusted to maximise available fresh grazing. “You can’t fight the seasons and in summer the fresh milkers will get a totally mixed ration with the main herd available pasture and a partial ration.” They make their own lucerne hay and grow barley and corn for silage production. Paul said a crop of soybeans made high protein silage which was a good pasture substitute during the summer months. About 500 tonnes of grain is brought in each year split between bail feeding and the prepared
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DAIRY NEWS AUSTRALIA MAY 2016
24 // MANAGEMENT
Small herd, big universe RICHARD COSGROVE
Dairy farmer Stu Parker combines his loves of cows with a love for astronomy.
WHETHER IN AUS-
TRALIA or New Zealand, many dairy farmers might
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recently have been looking into the night skies for stellar inspiration. That’s just where one farmer, from North Canterbury on New Zealand’s
south island, goes to relax after a hard day on the farm. Oxford dairy farmer Stu Parker has 250 cows on his 95ha property, and he has a backyard observatory where he searches the sky looking for Supernovas. Stu is a part of BOSS the Backyard Observatory Supernova Search - and to say he’s good at is an understatement: he’s only the sixth amateur in the world to have discovered a hundred supernovas, and he’s still searching - the current tally exceeds 120. His wife Lynn describes him as a part-time farmer and a professional astronomer, but it wasn’t always this way. Dairy News had originally contacted Stu to get his opinion on a Lincoln University study which found small herd dairy farmers were generally happier with their lot. Stu had been a large herd farmer in Southland, then he shifted back to North Canterbury to a small herd six years ago. In Southland the Parkers milked 700 cows as contract sharemilkers as well as milking 250 cows on their own farm some distance away. It was full on, Stu racking up 35,000km one year driving between the farms. At one stage they realised they hadn’t had a day off in three years and Lynn hadn’t left their farm in nine weeks. After some family members died, the Parkers realised you couldn’t put a price on your sanity and they moved to North Canterbury. On bare land near Oxford they started from scratch, rediscovering life. Saying that he couldn’t go back to a big herd, Stu finds small herd farming more enjoyable, saying you can truly get to know your cows and have a better quality herd; the couple have excelled at pedigree breeding Friesians. Being a member of Ambreed for 26 years, they were delighted to have a bull accepted by the firm, and they also have a stunning line of heifers coming through this year.
Saying that the scale can be difficult, he said: “You can’t do anything about the payout so you have to focus on your farm and your cows; that’s where you can make a difference.” They recounted that when they were sharemilking the payout was at one stage (NZ)$3/L, of which they were getting only half. It’s obvious the Parkers have a bond with their cows: when it’s milking time many of the cows will come over for a scratch or rub while waiting their turn in the shed. Stu says some farmers will think he’s soft, but when recently faced with a dying cow of 16 years standing on the farm, he opted to have a vet euthanase the animal and he buried her on the farm. He asks, ‘what’s the point of sending her off to the works and getting $500 for her when she has given many thousands of dollars to the business over those 16 years?’ The Parkers have done some big farm things like centre pivot irrigation and a winter shed for the 60-odd cows they winter milk. He describes the shed as necessary for maintaining condition in the harsh snowy winters Oxford can experience. Downsizing has allowed him to have a bit more of a life; Stu says he’ll step back a bit when the downturn comes right. Not wanting 100% of their focus to be on the farm is how he expanded his astronomy hobby. Joining the supernova search has given him a new challenge. A supernova is a star at the end of its life, going out in a huge explosion whose after-effects are visible from earth. With the discovery of his first supernova in 2009, he has gone from strength to strength, recently buying a new 16inch telescope from Italy. He now trips overseas to speak at international conferences or to compare notes with other members of the project - impossible if he were still farming a large herd.
DAIRY NEWS AUSTRALIA MAY 2016
ABVs // 25
Breeders at the top of their game “She was one of our most successful cows. In addition to all the top ABV bulls, she produced 10 daughters which all classified Excellent. “Her influence will continue through her daughters and we also have a full sister to our two Tbone ranked bulls Edison and Ensign,” Alan said. Cairnbrae Stud which was founded in 1946 has enjoyed success with Estelle bloodlines over many years with more than 100 members of the Cairbrae Jerseys have two top sires in the top 8. PICTURE: ELLAWRIGHT.COM
George Wagner pictured with Wrangler (also inset), who ranked number two behind his brother Geemcee. PICTURE: GENETICS AUSTRALIA.
cow family now in their herd. Alan and his wife Janine have continued the long family tradition of breeding excellence since they took over in 1976. Top New Zealand bloodlines were an early mainstay and from the 1990s US genetics have been introduced with great success. Alan has travelled all over Australia for more than 30 years inspecting the best Jerseys as a breed classifier. “We have used our
knowledge to breed functional dairy cows that suit our environment. “We have never tried to breed a show cow, but when a good cow comes along we give her the opportunity to compete in the show ring. We’ve bred royal show winners in most states,” Alan said. VFoske (V Foske) and Arbobama (Beaulands Obama) were in the number 1 and number 2 spots for the Red Breeds. VFoske’s BPI was $287, significantly ahead of Arbobama at $202.
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expected to strongly appeal to Holstein producers. Both bulls are embryo IN A unique feat of transfer, sired by a genetic excellence, two deceased Manoman bull leading dairy studs have in the US out of a top each produced the top ranked pair of bulls in the ranking member from the latest Australian Breeding Janea cow family. “We lost the dam Values (ABVs) for a couple of years ago, Holsteins and Jerseys. The latest release ABVs but we’ve still got the bloodlines, flushing a full were published by the sister to the top ranked Australian Dairy Herd Improvement Scheme on bulls,” George said. The Janea cow family April 11. has had a profound Underlining their influence and is still depth of quality, both strongly represented in Rengaw Holsteins and the Rengaw stud herd. Cairnbrae Jerseys have The stud was also placed the 8th ranked registered in 1968, with sire in their respective real genetic advances, breeds. including ABV success For Rengaw principle coming from the 1990s. George Wagner from “We’ve been Winnaleah in north-east pleased with the Tasmania, dominance in acknowledgement of our the latest ABVs is just the latest accolade in a career breeding success and recognition as the top spanning 50 years. influencing Holstein herd The productionin Australia,” George said. focused producer has Cairbrae leads the way been ranked the number THE top ABV Jersey one Holstein herd in bull Elton (Cairnbrae Australia and bestowed Jaces Elton) has had a the Holstein title of huge influence on the Master Breeder. George has now ceased breed. Cairnbrae stud active dairying with his breeding herd transferred master Alan Carson from Irrewillipe East in south to the property of his west Victoria, said the daughter and son-in-law bull had been in Courtney “Our sires AI since 2009 and Jared and had steadily Ireland near are proven to Lockington all-rounders climbed reach the in northern with good number 1 Victoria. fertility, ranking as a 12 “I’ve got the last of components year old. “It’s very my young and low cell unusual to bulls here on counts.” have a bull so agistment, highly rated but I still for so long. They usually take an active interest in tend to come and go quite breeding, flushing about quickly,” Alan said. 10 cows a year,” George The latest ABV scores said. were aggregated from “We have always used 4437 daughters across 464 the best bulls available with production our main herds, more than 10 times other top ranked sires. aim and it has reflected Cscedison (Cairnbrae in our herd performance Tbone Edison) was over many years. ranked the second Jersey “Our sires are proven bull with Cairnbrae all-rounders with good fertility, components and Tbone Ensign at number 8. low cell counts.” Ensign is the highest The top ABV Holstein rated udder bull and bulls are full brothers expected to be extremely with Geemcee (Rengaw popular with Jersey Manoman Hummer) breeders. ranked number 1 and All three bulls are Wrangler (Rengaw closely related sires from Manoman Wrangler) the same cow, Cambrae number 2. Alfs Estelle, making the George said the deceased dam one of the second-placed bull most influential Jerseys in Wrangler was highly Australia. ranked on type and was GORDON COLLIE
DAIRY NEWS AUSTRALIA MAY 2016
26 // ABVs
Visual appraisal of cattle ‘a waste of time’ MICHAEL PORTEUS
AN AUSTRALIAN
geneticist who has won a top American science award for his groundbreaking work on genomics says visual appraisal of dairy cows is largely a waste of time.
Melbourne University professor Mike Goddard picked up his US National Academy of Sciences medal in April amid indications that his work on genomic selection in dairy cattle might also lead to benefits for human health. Prof. Goddard also has advice for those dairy
farmers who may still be relying on visual appraisal only of dairy cattle: it is largely a waste of time, promoting skinny cows with poor fertility. He wants all breeders to work with the Australian Dairy Herd Information Service (ADHIS) and urges them to upgrade the
way they upload their data to ADHIS to help progress on fertility. Prof. Goddard also says the hybrid vigour produced by cross-breeding is the closest thing farmers will ever get to a free lunch. The hybrid off-spring can then be crossed back
with either parent breed, and “you are always ahead”. Prof. Goddard apologised before he answered a question about the visual appraisals used in classification and show rings. “Sorry to be impolite,” he said. “But it’s largely a waste of time. We’ve got
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ourselves into a few misleading situations. “For example, a long time ago, before we knew how much milk each cow gave, a cow that was not too fat – in fact positively skinny – was probably giving more milk than a cow that was fat. “A preference for skinny cows developed. “But when you know how much milk the cow gives, there’s absolutely no benefit of selecting for skinny cows. “But people have continued to select for skinny cows – calling it dairy character or angularity – as well as selecting for milk yield. “What that has done is decreased fertility, and decreased hardiness. “Because one reason a cow is skinny is that there is something wrong with her. “Secondly, the cows that are really skinny don’t cycle and don’t get pregnant. “This traditional philosophy of selecting for dairy character should have been abandoned years ago as soon as we started measuring milk yield.” Prof. Goddard grew up in Melbourne where he studied to be a vet. He worked on the genetics of guide dogs and tropical beef cattle before specialising in dairy genetics. He said genomic selection uses DNA markers all over all of the chromosomes to identify a trait. Previous practice had looked for a couple of markers you hoped would work. In 2000, Prof. Goddard began work with Norwegian visiting scientist Theo Meuwissen on simulations of an entire dairy cow genome. They published a paper in Genetics in 2001 with another Melbourne scientist Ben Hayes – who now heads the dairy cattle genetics program at the Dairy Futures CRC. This paper is now seen as the foundation of genomics. The US National Academy of Science’s says that the principles of genomic
Prof. Goddard
selection come from the landmark paper.“The trio showed that it should be possible to identify individuals with high genetic value by using thousands of molecular genetic markers covering the entire genome,” the academy notes. “Genomic selection has now been applied to other animal species, such as pigs and poultry, as well as plants, such as cotton, rice, and wheat. “And the concepts behind genomic selection have even proved useful in the field of human genetics and the search for predictors of disease.” Prof. Goddard says a third of dairy inseminations in Australian now use straws from genomically-tested bulls and that most advanced countries have switched dairy breeding to genomic selection. The next stage is pushing the boundary for how young animals can be used for breeding. “We are working hard to make genomic selection as accurate as we can for all of the important traits,” he said. He believes yield can and must increase: “I think it can get a lot higher. It always seems like you’ve reached the pinnacle, but in fact we always manage to get more still. “You’ve got to run more cows per person, and you’ve got to get more milk per cow. “People worry correctly that increasing milk yield puts more stress on the cow. We have to select not only for increased milk, but for all the other things that we want. “It’s a matter of getting that combination right. You identify the bulls that have got the most profitable daughters, and whose semen doesn’t cost too much.”
DAIRY NEWS AUSTRALIA MAY 2016
ABVs // 27
Genetics keep getting better WHEN IT comes to finding the best bulls to use over Australian dairy herds, they keep getting better and better, as demonstrated by the April 2016 release of Australian Breeding Values (ABVs). Daniel Abernethy from the Australian Dairy Herd Improvement Scheme (ADHIS) said this release had improvements in reliabilities across all traits, giving dairy farmers even more confidence in their bull choices. As an example, the reliability of the Balanced Performance Index (BPI) has increased by 5.8% in Holsteins and 2.5% for Jerseys (see table). “In the world of genetics these numbers represent significant improvements,” Daniel said. The increases in reliability came from the addition of genotypes for 30,000 females in 100 herds into the reference population, through the GINFO project. GINFO is a major delivery of the Dairy Futures CRC in its last six months of operation. Ginfo is a
collaboration involving the DairyFutures CRC, ADHIS, Holstein Australia, Jersey Australia and the Victorian Government (DEDJTR). Genetic gains are making solid improvements across Australia’s dairy herds. For example, after 20 years of declining dairy cow fertility, the genetic trend has turned around and improved every year since 2011 year. It is now about 5% higher than cows born in 2011, and similar to cows born in 1996. Michelle Axford, from ADHIS, said this was an example of the gains that can be made through increased emphasis of fertility in Australian selection indices, particularly in the Balanced Performance Index (BPI) and Health Weighted Index (HWI). “We can expect further gains as the focus on fertility in indices has increased further in the past couple of years,” she said. “On top of that, bull companies and farmers are paying extra attention to the Daughter Fertility ABV when making their
final bull selections. “We are now seeing the direct benefits on farm. Cows with higher daughter fertility ABVs get back in calf sooner – that is they have higher 6-week in calf rates.” Michelle said the simplest way to improve the genetics of herds for fertility was to choose bulls from the Good Bulls Guide or app with a high Daughter Fertility ABV (>104). She said recent research had given dairy farmers more choice for bulls with better fertility ABVs and more confidence in those bulls. “The reliability of the Daughter Fertility ABV has improved significantly and there are more bulls with much higher Daughter Fertility ABVs to choose from. This is the outcome of collaborative work between ADHIS and the Dairy Futures CRC,” she said. To find out more about the changing dynamics of Australian dairy herds, download the Australian Dairy Herd Improvement Report 2015 from www. adhis.com.au. (Source: ADHIS)
DID YOU KNOW? ■■
At an average of 14% of total assets, the dairy herd is the second largest asset for many dairy farms. Genetics is the main tool farmers use to develop and grow this asset
■■
In the past decade genetics has contributed 30% of productivity growth
■■
■■
Genetics is permanent and is compounding from generation to generation which means that every breeding decision counts. Poor breeding decisions have a long term impact on herd productivity Younger Holstein cows (born in 2012) are about $100 per
Daughter Fertility 4.5 2.7 2.4 1.2
■■
■■
ADHIS uses world’s best practice in genetic evaluation which means a team of highly respected scientists use complicated statistical models to independently evaluate bulls and produce Australian Breeding Values for 40 traits for thousands of bulls. Farmers, on the other hand, need a no-nonsense approach to cutting through the complexities to find
■■
The milk solid yields of herd recorded cows have increased by almost 100 kg/ cow/year since 1999
■■
Not only do the daughters of higher genetic merit sires produce well, they are just as likely (if not more likely) to last in the herd compared to daughters of lower genetic merit sires
■■
Source: ADHIS
Fertility, Type and Production...
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DAIRY NEWS AUSTRALIA MAY 2016
ABVs  // 29
Australian Breeding Values April 2016 GOOD BULLS GUIDE FOR HOLSTEIN - Balanced Performance Index - Australian Proven Bulls INDICES
Rank Bull
Bull Name
BPI $
1
Geemcee
Rengaw Manoman Hummer-ET
296
2
Wrangler
Rengaw Manoman Wrangler-ET
3
Goldcrest
4
PRODUCTION TRAITS
BPI Rel
ASI Rel
SURVIVAL
No. Dtrs
No. Herds
77
45
20
102
232
77
44
23
272
218
84
67
221
277
199
97
79
165
289
261
274
88
199
258
Jet Star Manoman Trickin
268
75
198
Janek
Rengaw Jardin Janek
264
77
9
Delsanto
Manna Farm Del Santo
248
10
Sholtz
St Clair Sholtz-Twin
11
7H8081
12
CONFIRMATION TRAITS
WORKABILITY
DAUGHTER FERTILIITY
FEED SAVED
Dtr Fert
Feed Saved
Rel
Source
Over Type
Mam Syst
Type Rel
Milk Spd
Temp
Like
64
98
101
75
101
103
103
68
104
64
-105
39
GAC
106
64
104
102
75
100
102
102
67
105
65
-72
39
GAC
32
104
63
101
102
71
103
100
102
67
97
71
101
38
GAC
416
40
107
85
105
103
89
99
99
102
85
108
91
-47
41
SEM
89
100
31
103
68
108
101
81
102
101
101
74
98
75
-158
41
GAC
175
96
285
48
108
80
106
98
88
100
104
103
89
104
89
-98
43
UVS
255
172
84
45
27
106
68
105
101
78
105
101
101
70
107
63
-52
39
GAC
212
248
184
88
92
28
106
64
104
104
71
101
103
103
74
102
72
48
37
ABS
92
177
266
234
99
2087
287
99
90
106
111
97
100
102
103
98
97
94
26
47
GAC
244
75
167
242
182
85
64
35
106
66
104
102
72
100
104
103
67
99
74
-126
38
ABS
Ensenada Taboo Planet ET
242
92
209
248
97
99
753
145
110
94
104
109
98
100
103
103
96
102
96
-76
47
GAC
Niels
Hill Valley Niels
241
73
191
263
148
84
63
31
106
59
105
104
62
97
102
102
70
100
70
-29
33
ABS
13
Buddha
Bushlea Perfector Bold-ET
240
91
185
213
157
99
2107
318
104
84
102
101
97
100
102
102
98
103
92
-23
47
GAC
14
Canbee
Country Road Roumare Canbee
238
85
154
248
238
95
277
76
102
76
104
103
90
104
103
102
89
95
79
-45
44
ALT
15
29HO12470
Indijks Babylon
237
89
165
210
169
97
503
113
104
84
102
99
89
100
100
101
92
108
88
-114
44
ABS
16
29HO12772
Ballycairn Oman Pello
232
79
187
184
121
88
59
25
106
74
99
97
81
101
101
102
75
110
78
-36
41
ABS
17
YJ
Gallrae Tennyson YJ
228
73
170
212
128
83
59
27
106
62
104
101
72
100
100
100
67
110
70
-104
38
ABS
18
Carlana
Kaarmona Carlana
227
73
158
219
169
82
52
29
104
64
103
104
75
101
100
101
69
98
71
-95
38
GAC
19
Roufector
Bundalong Roufector
225
78
145
256
212
88
87
36
103
69
109
107
77
105
103
104
75
95
76
-64
40
ALT
20
Opaleye
Dilee Planet Ollie 958-ET
225
71
185
242
157
82
56
30
105
60
106
111
68
99
101
103
67
102
68
11
36
GAC
HWI
TWI
ASI
69
191
230
258
291
69
201
259
Topspeed Goldyn-ET
291
74
234
Homanifold
Mainstream Manifold
291
88
5
Christmas
Emu Banks Christmas-ET
278
6
Cogenttwist
Cogent Twist
7
Trickin
8
Survival
Rel
Rel
Rel
GOOD BULLS GUIDE FOR JERSEYS - Balanced Performance Index - Australian Proven Buls INDICES
Rank
Bull
BPI $
Bull Name
PRODUCTION TRAITS
BPI Rel
HWI
TWI
ASI
ASI Rel
No. Dtrs
SURVIVAL
No. Herds
Survival
CONFIRMATION TRAITS
Rel
Over Type
Mam Syst
Type Rel
DAUGHTER FERTILIITY
WORKABILITY Milk Spd
Temp
Like
Rel
Dtr Fert
Rel
FEED SAVED Feed Saved
Rel
Source
1
Elton
Cairnbrae Jaces Elton
312
93
225
330
208
99
4437
464
106
96
108
106
97
104
105
104
99
100
98
-118
44
ABS
2
Cscedison
Cairnbrae Tbone Edison
296
75
165
304
274
86
82
35
103
63
103
103
71
103
103
102
76
95
69
-242
34
ABS
3
Raceway
Aberdeen Valerian Sandown-ET
286
81
214
289
211
91
119
45
104
70
106
111
82
104
104
105
81
100
77
-46
39
GAC
4
Cscambition
Riverside Ambition
286
75
242
258
188
86
68
28
103
64
102
106
71
104
101
102
74
103
72
109
34
ABS
5
Navarian
Colnarco Navarian
284
75
220
285
195
86
76
36
105
61
106
109
65
102
102
104
75
103
72
-29
32
GAC
6
Strzelecki
Araluen Park Strzelecki
273
70
197
198
242
80
55
18
104
60
101
97
73
102
103
105
70
101
59
78
35
GAC
7
7J1038
All Lynns Louie Valentino
271
84
210
350
135
94
186
44
112
76
114
112
85
104
107
107
82
97
85
-175
40
GAC
8
Cairnbone
Cairnbrae Tbone Ensign
263
74
191
338
178
85
69
25
104
62
113
120
70
99
100
101
71
100
69
-139
34
ALT
9
Vipor
Nowell Viper
263
72
219
267
173
83
53
21
104
61
104
112
69
106
103
103
67
104
72
55
33
AGR
10
Crvmarvarie
Wallacedale Marvarie ET
235
72
167
239
189
84
69
21
103
60
110
107
70
103
107
103
71
104
61
-47
34
CRV
GOOD BULLS GUIDE FOR RED BREEDS - Balanced Performance Index - Australian Proven Bulls INDICES
Breed
BPI $
V Foske
U
287
Arbobama
Beaulands Obama
U
3
Randersdavid
R David
4
Arbbonjovi
5
Rank Bull ID
Bull Name
1
Vfoske
2
BPI Rel
PRODUCTION TRAITS No. Dtrs
No. Herds
98
347
40
108
141
92
85
36
178
41
97
259
127
138
118
99
76
87
79
173
164
77
160
182
147
84
153
124
CONFIRMATION TRAITS
DAUGHTER FERTILITY
WORKABILITY
Over Type
Mam Syst
Type Rel
Milk Spd
Temp
Like
80
106
105
86
101
103
104
92
105
106
53
102
100
56
105
100
103
80
49
110
80
100
101
81
100
100
100
1284
200
102
86
98
100
86
102
100
93
96
37
95
56
93
90
64
90
63
92
82
37
103
57
102
106
57
50
96
154
22
104
76
96
101
66
HWI
TWI
ASI
88
201
286
206
202
76
151
206
U
182
87
167
Bosgowan Bon Jovi
U
172
90
Arbdmax
Louvic D Max
U
164
6
Arblever
Louvic Lever
U
7
GEDBO2263
G Edbo
U
ASI Rel
SURVIVAL
Survival
Rel
Feed Saved
Rel
Source
88
-142
40
VIK
102
65
-16
28
GAC
88
104
89
-26
38
VIK
102
97
104
93
-16
40
GAC
102
98
77
102
59
-68
32
GAC
99
96
99
75
104
69
98
28
GAC
105
102
102
82
101
85
162
34
VIK
Rel
Dtr Fert
FEED SAVED
Rel
DAIRY NEWS AUSTRALIA MAY 2016
30 // ANIMAL HEALTH
Antibiotic resistance an emerging global problem PERHAPS ONE of the greatest medical breakthroughs of our age was the discovery of penicillin by Alexander Fleming in 1928. New antibiotics were rapidly discovered which revolutionised the means by which infectious diseases were treated. Suddenly, common human infections became easily curable and outbreaks of infectious disease were readily controlled. However, just a few years after the golden age of antibiotics, warning signs of developing resistance were observed. Just as Fleming had predicted, previously susceptible bacteria were developing drug resistance at an alarming speed. Although the magnitude of this problem is still unclear, it is proposed that abuse and misuse of antibiotics is largely responsible for the development of resistance. In an effort to slow this phenomenon, in 1955 penicillin was no longer freely available to the public, in lozenges and creams, and instead became ‘prescription only’. In less than 100 years after antibiotic discovery, we now face a grim scenario for the generation to come where most antimicrobials might no longer be effective. Human and veterinary medicine may once again enter an era where common bacterial infections could once again prove lethal. What is antibiotic resistance? Antibiotic resistance is the ability of a bacteria to survive and multiply in the presence of an antibiotic agent that would normally inhibit or kill this species of bacteria.
iDAIRY®
antibiotic solutions are Bacterial populations readily available or when can quickly modify the use of antibiotics themselves to resist for a particular disease antibiotics and then pass condition are clearly not these resistance traits to effective. the next generation of Antibiotics may be bacteria. used therapeutically Sharing of resistance in animals for treating genes with other types specific bacterial of bacteria has also been THE VET GROUP diseases. seen. GEMMA CHUCK They may also be Antibiotic resistance used for non-therapeutic is just one mechanism by which bacteria have adapted to survive purposes such as prophylaxis and and is nearly as old as the discovery of metaphylaxis. Veterinarians often prescribe antibiotics themselves. A concerning fact in the modern antibiotics to animals that are not world is the rate at which antibiotic currently ill with a particular disease, resistance often develops and how but are at high risk of acquiring an quickly it spreads across the globe and infection. For example, an animal may be amongst different species of bacteria. Worryingly, more bacteria have also treated with antibiotics after having developed multiple drug resistance undergone surgery (prophylaxis) or which severely limits therapeutic herds may be given antibiotics if they options for infections in both animals are at risk of suffering an outbreak of infectious disease due to high and people. risk of exposure to disease agents Antibiotics in food-animals The use of antibiotics in animals (metaphylaxis). In the dairy industry, mass closely parallels their discovery and administration of antibiotics is often usage in humans. In the 1940s, the first antibiotic was practiced during dry-cow therapy introduced into food animal medicine. to help prevent mastitis or prior to Subsequently newer antibiotics were transportation of livestock over large discovered and made available for food distances to help prevent respiratory animal species and their use became disease. Prophylactic or metaphylactic use widespread to treat a multitude of of antibiotics can aid in the control infectious diseases. Antibiotic usage in food animals and prevention of numerous animal improves more than just animal well- diseases. However, this use of antibiotics being but also has economic benefits for food animal producers along with should never be intended to replace the a safer public health sector. However, need for good management practices, the unnecessary or wasteful use of given that the use of antibiotics will antibiotics should be avoided when non- eventually lead to resistance.
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practices and animal husbandry will help reduce the usage of antibiotics on farm and it is important to report periods of increased antibiotic treatments to your veterinarian. Only use antibiotics in dairy animals for the specific reason for which they have been prescribed, at the specific dose rate and for the specific duration of treatment. If the effectiveness of an antibiotic has decreased over time, report this to your veterinarian immediately. A holistic approach to disease prevention is required to create a sustainable farming system that does not rely solely on mass-medication with antibiotics. This is critical to the future of dairy farming, veterinary and human health. Note: The author would like to acknowledge the “Get Smart on the Farm” program by Michigan State University, the University of Minnesota, and the Centers for Disease Control and Prevention, USA. • Gemma Chuck is a vet with The Vet Group, Victoria, Australia.
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How can we slow down antibiotic resistance? Prudent or judicious use of antibiotics is “the optimal selection of drug, dose and duration of antibiotic treatment”. In addition to this, inappropriate and excessive treatments should be reduced to help slow the emergence of antimicrobial resistance. In the dairy industry this means that veterinarians and dairy farmers have dual roles of protecting animals from pain and suffering, while safeguarding the interest of public health. Guidelines for antibiotic usage on-farm should be developed in conjunction with your veterinarian. Each farm will be different and it is important to review these guidelines frequently. Good records are essential to help determine the pattern of antibiotic usage from season to season and from year to year. Record keeping also prevents antibiotic-treated animals from contributing to the human food-chain. Improvement of farm hygiene
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DAIRY NEWS AUSTRALIA MAY 2016
ANIMAL HEALTH // 31
Lessons from history ROD DYSON, DAIRY FOCUS
THE LAST significant
in-season drop in the price of milk to suppliers was in 2008, and that doesn’t take a long memory to recall – it is hardly ancient history! The price drop in 2008 triggered a range of responses, some of which produced significant lessons which shouldn’t be forgotten. In terms of milk quality and mastitis control there are three lessons that should probably be recalled now to avoid history repeating itself. Dry-off Many farms which made radical changes to their dry-off routine (mainly in terms of product selection & cow selection) suffered a significant “blow out” in terms of cell counts and cases of mastitis in the following lactation, resulting in costs that were way in excess of the saving made at dry-off. Many of these farms also had significant longer term effects on their milk quality and mastitis control. This does not mean it is not possible to cut some costs at dry-off, but the lesson from 2008 is that understanding what effect each compromise has on the risk of mastitis will allow an informed decision to be made, and also give an opportunity to potentially alter other management areas to reduce that risk. Also consider that whilst every compromise has an effect, some changes have a lesser risk than others, and some changes may have “workarounds” that will help to manage the change in risk. If you think you need to make compromises at dry-off, make sure you have a discussion with your advisers about how to minimise the risks, and how to best manage the changes in risk that are likely to result. Items to consider in that discussion will include product selection (in terms of both cure rates of existing
infections and prevention of new infections), and cow selection (in terms of which cows should be treated and how to choose them). As an example, if you were considering removing teat sealant from your dry-off treatment protocol, the main effect will be to increase the risk of new infections, especially around calving. After discussion, you may decide that the increased risk is a risk you do not want to take at all, or you may choose to limit the risk to a certain group of animals (e.g. the heifers), or you may choose to consider a “work-around” in terms of altering your calving management for either the whole herd, or that particular group of animals, in a way that reduces that risk at calving. Also, if you are considering selective treatment of cows, don’t be surprised if your adviser suggests a different cell count threshold for treatment than you might have expected. Culling Already many herd managers are talking of reduced numbers for next season. Selection of cows to cull is always based on many factors, but cell counts and mastitis are always in the mix to be considered. Countdown has given us good guidelines to use when considering cows for culling. Firstly, cows that have had three or more clinical cases of mastitis in a lactation should appear on most preferential culling lists. However, the use of cell counts for culling requires a bit more thought, as just culling the cows with the highest cell counts at the most recent herd test may not give the best outcome. A number of factors including a cow’s age, production, udder conformation and history of dry cow therapy and clinical cases should also be taken into account. As an example, an older cow with a history
of high cell counts after having being treated with dry cow therapy should generally be higher on the preferential cull list than a young cow that has never had dry cow therapy, even though the younger cow’s cell count may be considerably higher. This is because the
cow that has never had dry cow therapy is likely to have a greater chance of cure with that therapy than a cow that has already failed to cure before. It is likely that taking a little time to work through your cull list will give you a better outcome.
Replacements Another lesson from 2008 is that some farms that chose to reduce costs and gain extra cash by selling replacement heifers subsequently found it to be a long hard road to rebuild the herd at a later date. Not only that, but their ability to cull cows
for any reason was also severely compromised for some years afterwards. In summary, some hard decisions are likely to be needed. Also, there is no single answer to any of these situations or questions, and every farm is different. However, it is almost
certain that an informed decision with some forward planning to cover any changes in the farm’s milk quality and mastitis risk profile is likely to give a far better outcome. History has given us some lessons to learn from, and now is the time to heed those lessons.
DAIRY NEWS AUSTRALIA MAY 2016
32 // MACHINERY & PRODUCTS
Emissions and automation gains from Fendt 310 Vario JEANETTE SEVERS
IT IS the little “one
percenters” that farmers look for to make a difference in their production systems, whether it is dairy or another agricultural industry. So it is for Fendt, the German manufacturer of one of the top of the range tractors available in the Australian market, which is achieving the highest level of emission control against European standards. “It’s called ‘AdBlue’ and it neutralises emissions,” said AGCO’s Chris Dalton, who had several of the tractors on show at Farm World in April. “When too many emissions build up, the injection system will use selective catalyst reduction to neutralise them with ‘AdBlue’.
Chris Dalton shows it is a simple way to AdBlue.
“Consequently, low level emissions will be produced.” The additive is a 32.5% solution of urea which converts nitrous oxides into nitrogen and water. ‘AdBlue’ is consumed at an average 7% of the diesel consumption. The effect is to lower the carbon footprint of the entire enterprise and, possibly, use less diesel which saves money. Those claims, of course, are also dependent on operator use, quality of fuel, terrain, use of the tractor and such things as maintenance of the machine. “The tractor is always driven at the lowest engine speed possible – which means automatic efficiency,” Chris said, speaking at last month’s Farm World expo in West Gippsland. “We’ve had a lot of interest from farmers in
the Fendt 310 Vario.” The latest model (pictured) – the S4 – used about 50% less ‘AdBlue’ than its predecessor model – the SCR – for better emission control, Chris said. With the focus on precision agriculture globally as well as in Australia, Fendt has stepped up to the mark, with automated operating sequences. The VarioGuide is a guidance system accurate to within 2cm and, with all electronic controls united in one terminal for the first time, there is integration across tracking, the camera, auto-steering and documentation systems. A ball-head joint in the bracket enables the terminal to be pivoted so the operator can view it at all times. There is also night mode, so the display can be dimmed for the operator’s comfort. Basically, using icons and data packages, the information the operator needs is all there visually in an easy-to-see and assess manner on the terminal. The operator’s manual is easily accessed by pressing the help button. The multi-function joystick is also pretty easy to work with – basically,
Chris Dalton, AGCO, with Fendt 310 tractor.
you don’t need a high level of learning to know how to use it. The terminal and joystick are only set up for right-hand use, but operators can utilise
the seat swivel to get a large panoramic view of surrounding terrain, Chris said. Fendt also claims to be able to integrate all machinery operations
through the one system – useful for corporate or large family farming enterprises. While Fendt is the top of the range for machinery, with 2% of
the total tractor market, AGCO also manufacture top-end Massey and Valtra tractors and export the three brands worldwide, through a dealer network.
Valtra T234
Not just a good looker TRACTORS HAVE come a long way in design, as seen if you compare today’s machines with yesteryear favourites like the MF 135 or the Ford 4000. Nowadays these workhorses have more exterior curves than Marilyn Monroe, and interior finishes fit to make automobile makers cry. One such ‘modern’ tractor, the Valtra T234 from the AGCO camp,
recently won a prestigious Red Dot Design Award for 2016 in a competition that drew 5200 entries from 57 countries being judged by 41 design professionals from around the world. The Valtra T4 series is the result of seven years R&D, and is the first of a new generation of tractors where technical innovations and a whole new look are brought
together. The clean exterior lines look good, and underlying design work has focused on usability, ergonomics, safety, durability, serviceability and productivity. Incidentally, the fourth-generation Valtra have also won international awards including Machine of The Year 2015. www.valtra.com.au
DAIRY NEWS AUSTRALIA MAY 2016
MACHINERY & PRODUCTS // 33
A quad bike helmet that really works for farmers MARIAN MACDONALD
THIS NEW helmet for
quad-bike-riding farmers will save lives because it works. Not just because it’s tough and protective but because it’s not the sort of helmet you rip off as soon as you’re out of sight of the boss. Most farmers refuse to wear helmets and I can understand why. I’ve tried wearing a road bike helmet (in line with official expectations) to bring the cows home on a sweltering Sunday afternoon. A road bike protects your head all right – that is, for the few minutes before heat exhaustion sets in. Road bike helmets are made for riding motor bikes on a road, fast. Not at 2km/hr behind 250 cows, each throwing out the same body heat as a 1500kW hair dryer (I’m not joking, they do). As a result, we’d decided to wear equestrian helmets compliant with AS/NZS 3838. Designed to protect a rider from a nasty fall at speed, they provide more protection than a pushbike helmet and better ventilation than a motor bike helmet. Why hadn’t we chosen a helmet rated for agricultural quad bike use, you ask? Because there wasn’t one. New Zealand has developed such a standard – NZS 8600 All Terrain Vehicle Helmets – but, for reasons I can’t fathom, Australia has not adopted it or chosen to follow suit. Australian inspectors will still expect you to wear a road bike helmet, unless you can prove you have done a proper risk assessment. Despite it all, the Quadbar people have finally designed and made a helmet especially for Australian farmers, the HQ Stockman 2. We were sent a compli-
mentary sample helmet to test on the farm. Suffice to say, Wayne’s old equestrian helmet is gathering dust and we’ll be buying another Stockman. The helmet is light and comfortable enough to forget you’re wearing it and the ventilation is just as good as the equestrian helmets we’ve been using. What it has over the equestrian helmets is added protection. The HQ Stockman 2 meets NZS 8600 standard as recommended by both the Queensland and NSW coroners. The helmet is so strong, it passes the test used to gauge the protectiveness of road bike helmets, although only based on one impact, rather than two, as Quadbar’s Dave Robertson explains: “The ‘Impact energy attenuation test’ is the same test for the Australian motorcycle (and USA DOT motorcycle) standards however the test is repeated a second time on each location on the helmet for motorcycle helmets,” Mr Robertson said. “Helmet expert, Dr Terry Smith from California USA, at the Qld coroner’s inquest went to a lot of trouble to explain that the second test is to ensure protection in a case where the ‘head strikes twice in the same location’ and must not be interpreted as providing double the protection. “The speed impact is the same on both tests and the protection must be below 300g. “The level of protection of a motorcycle helmet is in the fact that it can withstand a second impact on the same location on the helmet which is more likely at higher speeds. “It (motorcycle helmet) is not tested at a higher speed than NZS 8600 however will most likely withstand multiple impacts.” If you’re riding a quad on the farm without a helmet, get a Stockman. It’s the sort of helmet you forget to take off and
it might just save your neck. NOTE: A helmet compliant with NZS 8600 called the AgHat came
on the market a couple of years ago but we didn’t adopt it at our farm because it had no ventilation.
• This column was republished with permission from http://milkmaidmarian.com
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DAIRY NEWS AUSTRALIA MAY 2016
34 // MACHINERY & PRODUCTS
Lely offers versatile balers Dealers at Lely’s forage conference were shown the new features of the Welger RP 160V round baler by international specialist, Sjors van Deursen.
DURING THIS year’s Agritechnica in Germany, Lely introduced a new series of variable chamber round balers that offer ultimate flexibility.
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We make choosing the right tractor easy, so you can focus on your herd. Our reliable 6 Family tractors have all the features you need to make your farm more efficient while keeping you comfortable during long days. Right now you can receive $2,000* towards a maintenance plan or extended warranty when you purchase a 6D, 6M or 6R cab tractor. Plus, get a low 1.49% p.a.† finance rate on all 6 Family tractors. Compare models and get a quote from your local dealer today. Nothing Runs Like a Deere™ * Offer available with the purchase of 6D, 6M & 6R tractors with cab only at participating dealers before 31/07/2016. Offer excludes open operator station configurations. † Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Valid on new 6 Family tractors at participating dealers delivered no later than 31/10/2016. Offer is based on 20% deposit, GST back and 36 month term. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 31/07/2016.
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A newly designed and thoroughly tested bale chamber ensures the high performance of this baler series which will replace the well-known Lely Welger RP 415 and RP 445 series balers. The Lely Welger RP 160 V series consists of two basic models: - The RP 160 V Classic; has a basic setup and is well suited for drier crops. - The RP 160 V; has a heavy duty power split gearbox for the heaviest conditions as a rotor feed nonchopper baler or can be fitted with the Mastercut 13 knife or Xtracut 17 knife chopping systems. The model configurations available along with the advanced features of the Lely Welger RP 160 V series are sure to meet the demands of both farmers and contractors in all kinds of situations. The Lely Welger RP 160 V baler range features the 2.25m five-tine-bar high capacity camless pick-up. The cleverly designed segment plates and the short distance from the pick-up to the rotor ensures excellent crop throughput. Thanks to the newly designed geometry of the bale chamber, bale formation is enhanced from the start. Together with the renowned Constant Pressure System (CPS) this baler series delivers exceptionally high density and well-shaped bales. High and consistent bale density reduces costs and ensures a rapid start of the fermentation process in baled silage, resulting in higher feed quality. Lely is dedicated to the continuous improvement of user friendliness of its forage machinery range. The Lely Welger RP 160 V features the Easy net Loading System (ELS) where net rolls are loaded from ground level saving time and effort. The easily opened guarding doors allow quick access to the second net-roll storage and increased access to the
machine for maintenance and inspection. Central greasing banks ensure a high level of comfort for daily maintenance. The Lely Welger RP 160 V range also features automatic chain lubrication system as standard, which ensures all drive chains are constantly lubricated guaranteeing a longer lifetime. The Lely Welger RP 160 V’s newly designed drawbar is easily adaptable to any type of tractor. The new storage area for the hydraulic hoses ensures quick coupling to the tractor. New to the Lely Welger RP 160 V Classic is the Lely E-LINK Control unit. This unit provides the operator with a clear overview of all baler processes on a colour screen. The clear button controls give the operator direct access to important functions, with all adjustments and settings that can be made from the tractor cab. The user friendly E-LINK Pro terminal is standard on the RP 160 V rotor feed non-chopper model and also the RP 160 V models with the Mastercut and Xtracut chopping systems. The bright touch screen display offers a clear overview by having a lot of space for all useful baler information. The E-LINK Pro terminal has ISOBUS compatibility, so any tractor can be easily connected, allowing you to use its own terminal. “The exceptional performance of the Lely Welger RP 160 V is due to a unique design that incorporates a largercapacity variable bale chamber and many options in feeding and chopping,” product manager, balers, Gilles Troff said. “It has proven not only to create perfect bales across a range of crops and conditions, but is exceptionally user friendly by design.” Source: Lely
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AQUAKLENZ HV CONCENTRATE is a low-foaming acid detergent sanitiser, developed specifically for the cleaning of high velocity plants. Contact one of our Ecolab Territory Managers or call 1.800.022.002 to find out more about the new AQUAKLENZ HV CONCENTRATE product, pricing options and wash programmes. We work harder so you can work smarter.
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Flashmate Electronic Heat Detector ®
A new disposable electronic heat alert product that monitors riding activity to identify when a cow is in standing heat • Easy application – the units are extremely easy to apply and maintain • Detects multiple heats – will flash red again for the next detected heat cycle if AI has failed. • Improved accuracy - smarter detection, looking for patterns (length, time, frequency) rather than what could be a single event. • Low experience required - Needs significantly less understanding and skill in correctly identifying heats.
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