Dairy News Australia - November 2018 by Dairy News Australia

Burra, Fonterra step-ups PAGE 5

Freedom Foods company buys Coomboona. PAGE 14 Minister pushing hard on dairy code. PAGE 6

NOVEMBER, 2018 ISSUE 97 // www.dairynewsaustralia.com.au

TAKING THEIR CHANCES Forging ahead in a risky environment. PAGE 26

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

NEWS // 3

Levy benefits trickle in THE BENEFITS of Australia’s 10-cent milk levy are starting to drip through to Queensland dairy farmers, but it isn’t providing the flow of relief cash that farmers wanted. The Queensland Dairy Organisation is continuing to argue the 10-cent levy should apply to all milk to help farmers affected by drought and high commodity prices. QDO president Brian Tessman said the levy was appreciated but wasn’t giving blanket coverage. “We wanted 10 cents on 100 per cent of milk and we’re still campaigning for that,” Mr Tessman said. “If that happened there wouldn’t have been any of this nervousness in the shops and there would be a lot more coming back to farmers. “At the moment what farmers get varies between 1.5 and four cents because it only applies to some lines. We want it on

Cow prices fall. PG.04

everything.” Mr Tessman said all Queensland farmers were getting some support, but from slightly different paths. Parmalat suppliers receive 10 cents for milk used for Woolworths drought relief milk, but not for the Pauls brand. Farmers are being offered a minimum $1000 a month with additional cash to be distributed per litre. Norco and Dairy Farmers have added a levy on their branded products. Mr Tessman said farmers had to apply to a Coles fund and a committee would decide how it was distributed. “Who knows who gets it? It would be so much simpler to just send it back to the farmers through the processors,” he said. “It is a positive but it could have been so much simpler and so much better.”

Mr Tessman vowed to continue fighting for a blanket 10-cent benefit on all milk. “We’re not finished with it yet; we’re going to keep campaigning to the government, both federally and locally, and the supermarket chains. It seems ridiculous that they’re being so belligerent with it.” Mr Tessman said conditions were still tough, despite some rain in south-east Queensland and northern NSW in October. “Having a bit of green grass is positive but it doesn’t change what you have to buy in for protein and grain,” he said. Australian Dairy Farmers has voiced its support for the extra 10 cents while cautioning that it must be distributed to all dairy farmers. Federal Agriculture Minister David Littleproud has also criticised the handling of the levy, saying the extra money must go to the right farmers.

Farmers bare all for charity. PG.06

Drought battle in Gippsland. PG.08

NEWS �� 3–17 OPINION ��18–19 MARKETS �� 20–23 MANAGEMENT �� 24–29 The milk levy has been giving only partial support to the Queensland industry.

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4 // NEWS

Milk production set to fall FOR MANY dairy farm businesses, the 2018–19

season has shifted from an outlook of recovery and growth to one of drought, feed shortage and rising production costs, likely to result in a milk production fall of five to seven per cent compared to 2017–18. Dairy Australia’s October Situation and Outlook report revealed that while the feed shortage would have implications on milk flows, the Australian market for dairy products had remained stable, with all key product categories showing growth, pointing to ongoing and strengthened support for dairy among the Australian public. Dairy Australia senior industry analyst John Droppert said while farmers’ key priority was to navigate their way through the immediate challenges, on-farm decisions made in the coming months would be fundamental to the industry’s ability to seize the opportunities when seasonal conditions improve. “Domestic sales growth is robust, delivering increases in both volume and value across most key dairy categories,” Mr Droppert said. “Australian milk, cheese and yoghurt sales continue to grow, with Australians purchasing 1.4 billion litres of milk in supermarkets, up 0.9 per cent on last year.” Total supermarket sales volume of cheese grew 1.9 per cent to 150 000 tonnes, while the value of cheese sales also increased 3.9 per cent. “Flavoured milk and cheese categories showed a growth in volume of 4.7 per cent and 1.9 per cent respectively, whilst the traditional yoghurt category, including products such as

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Dairy Australia is forecasting milk production to be down five to seven per cent in 2018-19 compared to the previous year.

Greek yoghurt, saw an impressive 6.2 per cent growth,” Mr Droppert said. “As an industry, the support for dairy products and rural communities has been felt throughout this challenging season, with the entire supply chain, government and the Australian public showing their support for farmers facing drought and the subsequent impacts of high costs of hay, grain and water.” The Situation and Outlook report is released three times a year, providing expert analysis and insights into the latest national and international market trends in the dairy industry, as well as upto-date statistics and facts. The report is available at: www.dairyaustralia.com.au

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SOME DAIRY sales have been postponed as low demand hits clearance rates and prices. This comes as one of Australia’s largest single purchasers of dairy cows revealed prices for Friesians, producing 600 kg of milk solids a lactation, were at a six-year low. Data from agricultural financing and herd leasing organisation CowBank also showed these cows fetched about $1500 earlier this month (November), while the Victorian average farm gate milk price was about 44¢/litre. According to CowBank, the last time the milk price was at this level — November 2015 — these cows were $1 850. “Cows are incredibly buyable at the moment, they are at the lowest price in comparison to earnings since 2012,” CowBank director Rod Banks said. CowBank purchased about 6000 dairy cows last financial year and about 2500 this financial year. But low prices, driven by lack-lustre demand, hurts vendors. Flanagan Marketing Services director Lawrie Flanagan said weather conditions and feed prices in northern Victoria meant there was limited

interest in purchasing replacements, and weather concerns had triggered a conservative approach to buying in other Victorian regions. “We’ve cancelled a few sales that were supposed to be running in spring, now they have been moved to autumn — the market is too hard,” Mr Flanagan said. “Other blokes who have sold their dairy farms, have got to sell their cows, they go ahead with it.” Mr Flanagan said farmers had been weighingup the cost of feeding cows across the warmer months with the potential lower price received if they sell now. He said spring-calved Friesian cows were $1200 to $1500, with $1600 to $1700 for those pregnancy-tested-in-calf for autumn. Last month a Gippsland multi-vendor sale averaged $1480 for 120 Friesians, according to Mr Flanagan. Dairy Australia analyst John Droppert said the volume of chopper cows sold through Victorian saleyards in September was three per cent down compared to September 2017. But year-to-date, cull volumes sold through yards were up 20 per cent and prices were down 15 per cent. “As there was little rain throughout September, high feed costs and unfavourable weather led to farmers continuing to destock,” Mr Droppert said.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

NEWS // 5

Step-up now but less later FONTERRA AUSTRALIA has announced a step-up of 13¢/kg milk solids but revised its forecast closing end-of-season price from $6.20/kg MS to $6.10/kg MS. The company said the price step-up took its average farm gate milk price to $5.98/kg MS. Fonterra Australia managing director René Dedoncker said rising costs for feed and water due to the drought meant cash flow was even more critical for the company’s suppliers. “Receiving this increase in their milk payment now, rather than later in the season, will help our farmers make important decisions on input costs and plan for the remainder of the year,” Mr Dedoncker said. “This milk price is reinforced by our strong Australian business, which is performing well and generating repeatable returns, and is supported by tightening domestic supply of milk and the weakening Australian dollar.” Mr Dedoncker said market conditions were putting downward pressure on the upper end of

the forecast range announced in May. “A weaker currency has only partially offset the impact of an increase in production this season in some other dairy-producing countries,” he said. “As a result, we have revised our forecast closing average milk price range to $5.98 to $6.10/kg MS, down from $6.20/kg MS. “While it is disappointing to have a reduction in the forecast closing price range, it’s important that we provide our farmers with clear, early signals on how the market is likely to impact the farm gate milk price. “We continue to monitor currency and global dairy prices closely and will keep our farmers updated throughout the season with the latest market conditions.”

Fonterra’s milk price has crept closer to the $6/kg mark.

Step-up for Burra Foods suppliers BURRA FOODS has announced a step-

up in its base farm gate milk price, equivalent to $0.13/kg of milk solids across the 2019 financial year. In a letter to suppliers in October, Burra Foods chief executive officer Grant Crothers said this step-up was the result of a softening Australian dollar against the US dollar, rather than market improvement. “Global markets have remained relatively flat so far this season and in the case of the GDT (global dairy trade), every auction bar one has declined since the start of June,” Mr Crothers said. “Thankfully, the Aussie dollar has depreciated by around six per cent since the start of July, which has enabled us to pass on as much benefit as we can to milk supply partners via this step-up.” Mr Crothers said conditions were challenging this year for many farmers, including dairy farmers in Gippsland. “We acknowledge the tough business

decisions our milk supply partners are regularly making caused by dry seasonal conditions.” He said each sub-region was impacted differently, and Burra Foods would continue to regularly review farm gate milk prices considering all market conditions. “We have heard the messages from our milk supply partners about rising input costs and the decreasing availability of feed, which is driving higher prices, so we anticipate this step-up being welcomed. “It’s never too early for a step-up but it is unusual to see them announced before December 1. “We don’t see the market changing in the short to medium term but are continuing to barrack the Aussie dollar down. “Our persistence to maximise value from product mix is never ending and we continue to develop markets delivering superior returns.”

Trade deal a ‘victory’ for dairy AUSTRALIAN DAIRY exports will receive a boost from tariff reductions and expanded access into several lucrative markets after the Senate voted 33 to 15 to ratify the $15.6 billion Comprehensive and Progressive Trans Pacific Partnership (TPP-11). The Australian Dairy Industry Council said the outcome was a significant victory for the dairy industry. “We praise the Federal Parliament for supporting an agreement which will also support the 38 000 people working on dairy farms and in manufacturing plants who contribute $13.5 billion to the Australian economy,” the ADIC said. “The Australian dairy industry now

anticipates Australia being one of the first countries to bring the TPP-11 agreement into force. “The TPP-11 agreement is good news for Australia, and good news for the Australian dairy industry.” The 11 member countries, including Japan (Australia’s largest cheese customer) and Canada and Mexico (two countries that don’t have existing trade agreements with Australia), collectively represent 32 per cent ($1.1 billion) of the total value and 35 per cent (298 000 tonnes) of the total volume of Australian dairy exports. Australia exported more than $540 million of dairy and dairy-based products to Japan during the last financial year.

Milking the TPP-11 The TPP-11 is expected to yield major beneﬁts for dairy exports to the region, including: • Phasing out tariffs over 15 years for cheeses, including natural cheese for the production of processed cheese and cheese for shredding (with the exclusion of mozzarella). • Phasing out tariffs for fresh cheese with a fat content less than 45 per cent. • For other varieties such as processed cheese, there are modest improvements in access. • Major liberalisation of access for whey. • Modest tariff rate quotas established for skim milk powder and butter.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

6 // NEWS

Farmers bare all for a good cause CHEEKY DAIRY farmers in south-west Victoria

and beyond are baring all to support fellow farmers struggling through the drought. A Butts for Bales 2019 calendar to raise funds for Need for Feed disaster relief features the bare bums of dairy farmers and is already making a splash even before publication. The male and female dairy farmers wear gumboots and hats but very little else in the photo shoots, and organiser Tennille Moffitt said the calendar was creating huge interest nationally and abroad. The idea emerged from a topic on a Facebook dairy classifieds and information site run by Tennille’s husband Chris, a former farmer. “Somebody showed similar photos of university students in Sydney and I thought it would be really good to do one just of dairy farmers with their bums and no faces,” Tennille said. “I asked if anyone would be interested and heaps of people came forward. I thought I’d keep it within that group but it’s blown out of all proportion,” she said. “Dairy farmers aren’t appreciated enough so maybe their butts will be appreciated a bit more.” Tennille said the calendar aimed to “not only show the world how beautiful our under-appreciated dairy farmers are, but to help an organisation that has saved the livelihood of many farmers”. Volunteer photographer Stacey Knowles from Ocean View Photography in Warrnambool said

the farmers were happy to strip for a good cause. “It’s a bit of a giggle and a good opportunity to give back to the people who help us, like our farmers,” Stacey said. “We’ve got all ages and all shapes and sizes. The photos are done very tastefully. Most are shot from behind and if not, they’re covered by carefully-placed items.” The photographed farmers range from a man in his 70s to a couple in their 20s. Nine of the 12 are from south-west Victoria, with three contributing photos from NSW. All proceeds from the calendar will go to Need for Feed. Dozens of calendars have been pre-sold, including orders to Canada, Germany and United States. Azeus Print and Design is printing the first 200 copies for free. More information on how to purchase the calendar for $21 can be found on the Butts for Bales Facebook page. PayPal and bank account deposits can be accepted. The calendar will also be for sale at various outlets around Warrnambool. Need for Feed has been supporting communities and farmers across Victoria since 2006 when founder Graham Cockerell donated and delivered a truckload of hay, which was distributed by Cowwar Toongabbie Lions Club to farmers burntout in their area.

A warm day on the farm and a cold drink for the horse. From the Butts for Bales calendar.

You know how it is when you can’t be bothered getting dressed to tell the dog off. From the Butts for Bales calendar.

Minister pushing hard on dairy code FORMAL CONSULTATIONS on a manda-

tory dairy code of conduct are set to get under way soon, with hopes a framework can be agreed to before Christmas. Federal Agriculture Minister David Littleproud said he hoped the code could be in place in time for the start of the next milk season. Dates and locations of consultations will be released shortly, but Mr Littleproud said he was “putting the foot on the accelerator” to get the code planned by Christmas, following drawn out discussions with processors and industry regarding the code. “We want to make sure we get this right;

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we’ve ordered a regulatory impact statement and what that makes sure is that there’s no unintended consequences in implementing this plan, particularly to the farm gate,” he said. “(The Department of Agriculture and Water Resources) have let us down on a couple of things recently in terms of consultation and I’ve made sure that the plan in terms of consultation is a proper one. Sitting and listening to farmers … sitting with processors to make sure we get that right.” The dairy code consultations are as follows: ■■ TAS — Devonport — Thursday, November 8 from 11.30 am at the Devonport RSL ■■ SA — Mt Gambier — Tuesday, November 13

■■

from noon at the Mt Gambier RSL Adelaide Hills — Wednesday, November 14 from 12.30 pm at the Adelaide Hills Convention Centre WA — Brunswick — Thursday, November 15 from 10.30 am at the Brunswick Town Hall Margaret River — Thursday, November 15 from 6.30 pm at the Margaret River District Club NSW — Bega — Monday, November 19 from 11 am at the Bega Civic Centre Nowra — Tuesday, November 20 from 10.30 am at the Nowra Showground Committee Room Wauchope — Wednesday, November 21

■■

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NEWS // 7

Supermarket milk prices not the only problem A ROYAL commission into supermarkets’ rela-

tionship with farmers would not be limited to the dairy industry, Federal Agriculture Minister David Littleproud says. Senior Nationals MPs, including Mr Littleproud, are open to the prospect of a major inquiry after criticising supermarket giants for refusing to put a 10-cent ‘drought levy’ on all brands of milk. “You never say never. If we are to go down that track I would not limit it to dairy,” Mr Littleproud said.

“I think agricultural products more broadly and their relationships to supermarkets, if it was to go down a royal commission level, should be tested rather than just a narrow focus on milk.” Woolworths was first to move, putting a 10¢/ litre levy on specially labelled drought relief milk. Coles argues it has committed more than $12 million to drought-affected farmers while also putting a 30-cent levy on its own brand of threelitre milk. Aldi says it has accepted price increases from suppliers which haven’t been passed on to

THE FORECAST IS FOR BETTER FORECASTS Farmers can expect to get an in-depth and

Australian Bureau of Agricultural and

accurate analysis of their next six months

Resource Economics and Sciences

of rainfall within a decade — that is if the

Regional Outlook conference in

progression in Bureau of Meteorology

Shepparton last month, saying there were

modelling is to be believed.

high hopes for what it could mean for the

The accuracy of weather and climate

future. “Within five to 10 years we expect we’ll

information is increasing, the bureau’s Vernon Carr told the crowd at the

“

have an accurate six-month forecast,”

customers. Mr Littleproud is disappointed the companies have not responded with bigger commitments to his offer to work on helping farmers. “They’ve just used it as a publicity stunt and candidly, I’m not overly chuffed about it.” He reserved his most savage criticism for Aldi. “The big German Aldi has done three parts of bugger all.” Farmers and the Federal Government are continuing to pressure supermarkets over $1/litre milk, which they say is hurting producers.

Mr Carr said. “Imagine if you could confidently predict the rainfall of the year ahead. The value of that is just amazing.” With increasing sources of data collection, from satellites and buoys to radars and real-time data collection, Mr Carr said there had never been more information collected for weather. However, despite one billion pieces of information going into each calculation, Mr Carr said weather forecasting was far

Agriculture Minister David Littleproud.

“It puts a ceiling on the price and on the potential of a commodity,” Mr Littleproud said. “I’m not in favour of it. I think it’s a deplorable thing.”

from perfect. “We’re doing the best we obviously can. We’re keen to ingest more from regional Australia and increase farm networks more so we can get better models,” he said. One thing he said that was often misunderstood was the bureau’s rain predictions. “If we have a range of say 4 mm to 10 mm, the 10 mm is actually 25 per cent probability, while the 4 mm is 50 per cent probability … It’s all probability based now.”

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

8 // NEWS

Drought burden continues JEANETTE SEVERS

DROUGHT IS still holding onto East Gippsland

and Wellington shires, with the lowest rainfall on record received this year, according to the Bureau of Meteorology. The Orbost region recorded 0.2 mm of rain in the last week of October and an evapotranspiration of -22. BOM says soil moisture is very much below average. In the Macalister Irrigation District, the height of Lake Glenmaggie has seen 100 per cent allocation for dairy farmers on irrigated farms. But dryland farmers are suffering. BOM senior hydrologist Paul Feikema said an El Niño was expected in December with significantly reduced rainfall across spring in central and southern Australia. For Newmerella (near Orbost) dryland dairy farmers, Veronica and Neil Joiner, the weather conditions have caused them to make some hard decisions early. Mrs Joiner said they normally milked up to 280 cows but started making decisions in 2016 to help their business through the drought. “We started reducing the herd in September 2016. We usually carry over cows but we sold 30 head,” she said. In May 2017, they sold the empty cows. In late 2017, the couple participated in Taking Stock before asking for an on-farm meeting with a business consultant, to discuss their options to reduce overheads and afford to buy fodder and feed. “Talking about it in July was really hard, but we had no winter so we had to take pressure off the paddocks to make as much silage as we can to keep milking,” Mrs Joiner said. “We also try to make decisions that will benefit us and others.” They expected to calve down 260 cows, but

Veronica Joiner, from Newmerella in Gippsland, Victoria, says the work continues as do the drought conditions. Veronica and Neil Joiner have been able to manage with assistance from GippsDairy programs, their own good management and the CWA.

sold late calvers to take pressure off themselves and the business. Mrs Joiner said the consultant helped them work out a feed budget for 200 cows but they expected to reduce the herd to 180 in February. “We’ve just made some silage, but pellets are now costing more than $500/tonne,” she said. GippsDairy has funded more than 40 on-farm extension officer visits to help dairy farmers in East Gippsland and Yarram district to assess their businesses in the ongoing drought. Mrs Joiner said she had received some funds from the Country Women’s Association of Victoria to pay for groceries and another charity

VFF to seek new partners THE VFF and its dairy commodity group, the UDV, have parted ways with Coles after the twoyear Farmers’ Fund milk agreement came to an end. The agreement saw 40 cents from every twolitre bottle of skim or full cream Farmers’ Fund milk sold in Coles supermarkets going to the VFF initiative, Farmers’ Fund, a fund available to dairy farmers to apply for grants for infrastructure, education or expert advice to help build a more viable business. VFF president David Jochinke said the organisation had decided to look for “new partnership opportunities”. “The Farmers’ Fund agreement was always intended to be a two-year partnership between Coles and the VFF, instigated to deliver grants to dairy farmers in the southern milk pool,” Mr Jochinke said.

“After the initial two-year period, the VFF has reviewed the agreement and decided not to continue with the Farmers’ Fund. “The Farmers’ Fund has provided support to many dairy farmers, but the VFF has decided to explore new partnership opportunities which may provide benefit to a broader spectrum of our members, particularly in light of worsening drought conditions in parts of Victoria.” A Coles spokesperson was pleased with what the fund had achieved during its lifespan. “We are delighted that the Farmers’ Fund has raised more than $2 million, including a $1 million donation from the Coles Nurture Fund and 40 cents from every two-litre bottle of Farmers’ Fund milk sold at Coles supermarkets,” the spokesperson said. ‘‘These funds have resulted in more than 190 grants for dairy farmers over the past two years.’’

organisation had sent the couple a voucher for fuel and groceries. But she was having a great deal of trouble accessing the Farm Household Allowance, even though the Federal Government had promised additional funding for workers to help people with their FHA applications. Mrs Joiner began her application in September and has sought assistance from Rural Financial Counselling Service counsellors and Centrelink several times. She said the forms were difficult to navigate, questions were often replicated and the supporting information was onerous to provide. She had

to scan and upload supporting documents for many aspects of the electronic form. This workload was on top of working on the farm and milking twice a day. “The RFCS counsellor suggested I try on my own for the FHA. They have helped me collate some information. I have spent many days working on this application,” Mrs Joiner said. “I don’t see how anyone can do this on their own. We’re trying to run a business but this is taking up a lot of time. “I only want it so I can buy groceries.”

DRY CONDITIONS TO CONTINUE Farmers are facing more tough times over the next six months with the drought set to intensify in South Australia, Victoria and inland NSW. Bureau of Meteorology agriculture general manager Peter Stone said hot and dry conditions were likely to continue, with an 80 per cent chance of above average temperatures over summer. As a result, a weak start is likely for Queensland’s dryland summer production for next year. “It has been unusually hot and dry in most of Australia this year and the year before and this is likely to continue for the next six months,” Mr Stone told the National Drought Summit in Canberra. Average temperatures will continue to rise, but rainfall figures are harder to forecast, he said. “Drought is normal, as is water surplus in Australia, but it’s not predictable,” Mr Stone said. National water storage is at about 58 per cent, down 12 per cent on this time last year, while in NSW levels are at 37 per cent.

Mr Stone said water storage levels were not expected to rise in the near future, with reduced supply and increased demand likely to see future falls. “This water isn’t only for irrigation, it’s for drinking water in our rural towns,” he said. Australian Bureau of Agricultural and Resource Economics and Sciences executive director Steve Hatfield-Dodds told the summit late last month the current drought was severe in some regions but covered a smaller area than previous events. Climate effects were currently severe, but farm incomes were likely to be less affected than in previous droughts, he said. Dr Hatfield-Dodds warned of tensions between helping drought-affected farmers and promoting the best longterm industry performance. “Supporting drought-affected farms has the potential, depending on how it’s done, to slow the process of farm consolidation and the growth in farm scale,” he said.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

10 // NEWS

Singing the praises of agriculture JOHN LENNON sang about giving peace a

chance, but Cavendish-based agribusiness consultant Bronte Gorringe wants more young people to give agriculture a chance. Bronte, 23, has been living and working around farms her entire life and couldn’t imagine being in another field. She grew up spending time between Cavendish, where her family has a sheep property, and Timboon where they have an agricultural contracting business working with the dairy industry. “I spent all my spare time helping Mum and Dad with our businesses and I worked on a neighbour’s dairy farm from when I was about 11,”she said. “I asked if I could give a hand bringing in the cows and calves on the weekends and it grew from there. I worked about 25 hours per week while I was at school and 12 years later I’m still lending a hand when I can. “Livestock is my passion and I was keen to learn more about animal husbandry and you can’t get better experience than being in the dairy industry.” Bronte spent a year as assistant manager of the farm before studying farm business management at Marcus Oldham College in Geelong. Since completing her studies, Bronte works as an agribusiness consultant with Mulcahy and Co Agri Solutions where her role includes farm

financial management, education and training, succession planning, debt advisery and budget preparation “I was always going to work in agriculture in some shape or form,”she said. “It’s an industry where you need to keep learning.” Now Bronte is encouraging more of her peers to enjoy the opportunities offered by a life in agriculture. Bronte has been delivering workshops with WestVic Dairy Young Dairy Network regional extension officer Heidi Van Es to help young farmers plan for the future. “What I really want to do is encourage other young people to get involved in agriculture; there are so many different fields you can be in within the industry and we need passionate people to be in it.” Bronte said. “There are big job opportunities and there’s so much more to agriculture than productionbased roles.” The Young Dairy Network workshops cover planning for the year ahead and different management tools farmers can use to be better prepared and understand their financial position. The program is expected to expand across the region. Bronte said these workshops were giving young aspiring farmers a good head-start on

planning for the year to come. “They’ve been well received and we hope to run workshops every eight weeks with different topics that are relevant for farming businesses,” she said. In further support for local farmers, WestVic Dairy is continuing to run Farm Business Management workshops and a renewed program of one-on-one support. WestVic Dairy farm business management regional extension officer Laurie Hickey said the series of workshops showed farmers how to enter data accurately and use it to analyse their business. “We want farmers to understand and use the tools like DairyBase and the Standard Chart of Accounts which complement farm business management and allow farmers to realise their farms need to run as a business and they need to fully measure and analyse their business performance and make proper informed decisions,” Laurie said. Dairy Australia is also funding one-on-one consultations under the Taking Stock program, which will roll-out soon across the WestVic Dairy region. This will cover the cost of a consultant working with farm businesses to develop an action plan during tougher conditions. Supporting farmers is also a driver for Bronte, as it means getting out on farms and meeting

Bronte Gorringe.

the farmers. “I spend three days a week on the road visiting farmer clients and talking to them about their finances and their production systems – my vehicle is my office,” she said. “I learn a lot from my clients and have a sound appreciation for all the work that goes into the different agricultural industries and the people who are in it.” For more information on the programs offered by WestVic Dairy, visit: www.dairyaustralia.com.au/WestVic-Dairy

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

NEWS // 11

Fonterra is helping furry fauna

WONDER COW OR WORKABILITY NIGHTMARE?

EIGHT KOALAS recovering from illness will

soon have new homes, thanks to the Fonterra Stanhope team. The northern Victorian factory, which is undergoing an expansion of its cheese plant, has donated leftover materials to a volunteer organisation to help build shelters as part of its Koala Rescue Project. The Dutch Thunder Wildlife Shelter, at Koonoomoo near Cobram on the Murray River, has been looking after native fauna for six years, and the Koala Rescue Project helps to reduce the threat to the local koala population by building quarantine shelters for infected koalas. Fonterra’s Stanhope site manager Jason Wright said the site had been a hive of activity for more than 12 months, with a 200-strong team of contractors making sure the factory was on track to double its cheese processing capability next year. “With an expansion of this size and the amount of equipment being used, there is always the potential for a lot of waste,” Mr Wright said. “We’re really focused on reducing waste where possible, so when the Dutch Thunder Wildlife Shelter approached us for any recycled materials to help build shelters at their centre, we leapt at the opportunity.

Adrian Herman from George Rydell Construction, Frank Di Fede from Fonterra, Ray Parks from Askin Panels and Fonterra’s Stanhope site manager Jason Wright hold a stuffed toy koala. Leftover materials from the Stanhope factory upgrade will help protect koalas.

Stanhope’s Fonterra site is providing leftover materials from its cheese plant expansion to Koonoomoo’s Dutch Thunder Wildlife Shelter.

“For example, there was around 200 m of panel left over from our temporary coolroom. These panels are fully insulated and will form a great base for the shelters.” James Leonard, from Dutch Thunder Wildlife Shelter, said over the past few years there had been a huge increase in the number of

koalas dying in the local area — mainly from sarcoptic mange. “We’ve had over 100 koalas infected in the last 12 months — that’s an average of one every four days,” Mr Leonard said. If you wish to get involved in the project, or know of anyone who may be able to assist, email the team at: dutchthunderwildlife@gmail.com

Dairy farmers are being encouraged to report on the workability scores of first lactation heifers who calved this spring. Whether she’s a slow milker, a kicker or a wonder cow in the dairy, DataGene wants to hear about her. Michelle Axford, from DataGene, said the reports were essential to calculate Australia Breeding Values (ABVs) for ‘workability traits’ such as milking speed, temperament and likeability. “Every dairy farmer cares about workability,” Ms Axford said. “Cows that kick are a safety hazard and slow milkers extend the milking routine,” she said. “And we know that bulls with high likeability ABVs produce daughters that are more likely to stay in the herd for longer.” Workability reports are fed into DataGene’s genetic evaluation system through the HerdData App, herd test centres or on-farm software such as Mistro Farm or Easy Dairy. For more information, contact DataGene by phone on (03) 9032 7191 or email at: enquiries@datagene.com. au or online at: www.datagene.com.au

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

12 // NEWS

Leslie takes on Jersey judging A FAMILIAR face at International Dairy Week is set to take on a new role, with Brian Leslie announced as the Jersey cattle judge for next year’s event. Having founded IDW in 1990, Mr Leslie has continued to be involved in the event through his role as director and auctioneer, and he previously judged the Holstein classes in 2011 and the youth show in 1990 and 2000. Although this his first time judging Jerseys at IDW, Mr Leslie has vast experience judging the breed in Canada, the United Kingdom, New Zealand and around Australia. But, he admits balancing duties during IDW will be a challenge. “Usually when I’m asked to judge I say ‘yes’

REPORT SLAMS ENERGY PROFITS Energy network owners must be living in a parallel universe if they think Australia’s agricultural sector should be pleased to be paying unjustified profits, according to National Irrigators’ Council chief executive officer Steve Whan. The NIC, on behalf of the Agricultural

straight away but when I received this invitation, I took a while to decide because of the workload,” Mr Leslie said. “But I have a very good team around me and after discussions they said they could handle what I would normally do on that day. “I’m looking forward to it. I’ve travelled the world looking at top Jersey cattle, I’ve been fortunate to work with and learn from some of the greatest Jersey breeders as an auctioneer for their sales for nearly 40 years and I’ve sold every record-priced Jersey in Australia.” Mr Leslie said he would look for the same traits as in any breed — good udders, dairy quality and body capacity. Jersey Australia president Chris McKenzie

Industries Energy Taskforce, recently released a report that showed the energy networks had collectively earned economic or monopoly profits of $2.1 billion. “That’s $2.1 billion more profit than is justified,” Mr Whan said. “In response, Energy Networks Australia didn’t bother to deny the profit, instead they stretched the credulity of any Australian energy user by claiming on twitter that ‘higher profits equals lower power bills for customers’.

endorsed the judging appointment. “Brian is a very experienced judge and stud breeder and he has a very good eye for cattle,” Mr McKenzie said. “He has had extensive judging experience with Jerseys in Australia and overseas and we look forward to his involvement.” Mr Leslie said IDW 2019 was shaping up strongly, but said the dry season could have an impact. “But we’ve been through that before and dairy week always seems to come out on top,” he said. “It’s a place for people to go and leave behind some of their concerns and share experiences with like-minded people and it’s a wonderful way to promote dairy cattle.”

“In the interesting logic behind this they try to claim that these excessive profits are the result of ‘efficiencies’ and that these profits will be handed back to customers in future price determinations. “I, for one, feel that these companies are telling us not to worry about the jobs being lost or our export markets disappearing as we become less competitive — don’t worry about a thing because eventually they will give us some of the money back! “As I see it the networks are being

Jersey Australia has announced International Dairy Week director Brian Leslie will judge the Jersey show at the 2019 event. Mr Leslie is often seen running auctions at the January event.

disingenuous, we are quite happy for them to make reasonable profits and be efficient operators. “Let’s be clear we have no problem with incentive regulation and we are not calling for a rate of return regulation. “What this study found is that networks as a group are making super-normal profits because in the real world they are low risk and consequently have low financing costs, not because they are outperforming.”

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

14 // NEWS

Fresh focus on youth HOLSTEIN AUSTRALIA has appointed Kate-

lin Davies as its national youth co-ordinator. Originally from Calgary in Canada, where her family owns a Hereford stud, Ms Davies has many years’ experience within the livestock and youth environments, including with Canada’s beef youth movement and the Canadian Hereford Association. She is the current events and youth co-ordinator for Hereford Australia. She and her husband Ben own the Wild Bear stud on South Australia’s Fleurieu Peninsular.

Ms Davies said effective youth programs could play a major role in attracting, developing and retaining young farmers in the dairy industry. “We’ve got so many young kids right across Australia who are passionate about the dairy industry,” she said. “Youth programs and events not only increase their farming and industry knowledge, but as these kids get older, they provide much-needed networking and social opportunities with the dairy industry at its heart, increasing the participation

NEW OWNER FOR COOMBOONA DAIRIES A company associated with Freedom Foods Group has purchased the troubled Coomboona Dairies operation near Shepparton, once jointly owned by Australian entrepreneur Gerry Harvey. Freedom says it will use the relationship with the large dairy to generate milk for its processing operations. Coomboona Dairies, developed by Asianbased businessman Alex Arena, was placed in voluntary administration in March and failed to sell at auction in September. Freedom has a specialty UHT plant in

Shepparton which it is currently expanding and has been in the market for expanded milk supplies. Coomboona Dairies purchaser, Australian Fresh Milk Holdings, also has a large dairy operation, Moxey Farms, in the Lachlan Valley 300 km west of Sydney. AFMH is a partnership owned by the Moxey and Perich families and other shareholders including Freedom Foods Group. Freedom has a 10 per cent equity shareholding in AFMH. With the acquisition of the Coomboona

Katelin Davies.

of young people in their communities. “We also need to focus on developing the leadership capabilities of young people, and keeping our young and emerging dairy farmers abreast of new technology and genomics to ensure that they can go on to develop more sustainable farming systems into the future.” Holstein Australia chief executive officer Graeme Gillan welcomed Ms Davies to the role, saying the organisation had been looking for a national youth co-ordinator for some time.

Dairies operation AFMH will be the largest dairy producer in Australia, with current operations forecasting more than 150 million litres of production into 2019. Freedom Foods intends to use the supply from Moxey Farms and Coomboona Dairies for its Australia’s Own Kid’s Milk and other dairy product formats. Coomboona Dairies originally comprised almost 500 ha and was planned to be able to handle a herd of about 5000 cows. The dairy business gained significant coverage when Harvey Norman founder and executive chairman Gerry Harvey announced his company had bought 49.9 per cent of the business in 2015.

“I am a firm believer that well-run youth programs are the key to the future of our industry, and we have an obligation to our members, Holstein breeders and to the breed itself to ensure that we do everything we can to secure that future,” Mr Gillan said. As part of her new role, Ms Davies will oversee the return of a national youth camp for 16- to 21-year-olds at Sale, Victoria, in January. Registrations for the All Breeds National Youth Camp opened in early November.

The Freedom Foods factory in Shepparton.

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WORLD NEWS // 15

Ireland marshals its agri-food forces MARK DANIEL

On an Enterprise Ireland Study Tour, Dairy News reporter Mark Daniel observed the Irish dairy industry, noting the country’s food and drink exports were valued about €12.6 billion, split between international markets at 32 per cent (€4 billion), the European Union at 33 per cent (€4 billion) and the United Kingdom at 35 per cent (€4.5 billion). WITH THE UK’s Brexit scheduled for April 1, 2019, discussions are centred on tariffs, with a general call for a ‘soft’ Brexit that would allow present cross-border agreements to apply in the foreseeable future. A December 2017 livestock survey showed the Irish national herd was about 1.34 million dairy cows out of the EU total of 23.5 million head. Numbers increased by 3.7 per cent over the 2016 season to an average herd size of 80 cows and a contribution of 30 per cent of gross agricultural output. Comprising about five per cent of the EU’s total dairy cows and four per cent of Eurozone milk supply, herds are mostly Holstein/Friesian with cross-breeding on the increase largely to Jersey sires. In 1973 Ireland had about 1.34 million

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cows in 97 000 herds; today it has 1.34 million cows in 18 000 herds. Average herd size is 80 cows, versus 14 cows per herd in 1973. Much of the increase in cow numbers occurred in 2015 when the milk production quota was dropped; at that time the average herd numbered 65 cows. Total milk production for the 2017 season was 7 billion litres: 538 million litres liquid milk (down 10 per cent), 222 000 tonnes of butter, 120 000 tonnes of skim milk production and 205 000 tonnes of cheese. Ireland’s milk production represents no more than one per cent of world production. The country claims to be the largest supplier of specialised infant milk formula, particularly to Asian markets. Looking forward, the Irish Agri-Food Strategy is centred on two key initiatives: Food Harvest 2020 and Food Wise 2025. The former seeks to grow food exports to €12 billion by 2020 and to grow milk output by 50 per cent to achieve a Euro market share of seven to eight per cent. Food Wise 2025 is aimed at increasing agri-food exports by 85 per cent to €19 billion, increasing the value of primary production by 65 per cent to €10 billion, and creating an extra 23 000 jobs in the agri-food sector.

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The University of Dublin’s Lyons Farm, at Naas in County Kildare, hosted visiting farmers and journalists, including Dairy News reporter Mark Daniel, during his September visit to the Republic of Ireland. VISITORS TO the University of Dublin’s 235 ha

farm noted its focus on dairying: a €2 million dairy research and education faculty sponsored by seven leading industry names such as Dairymaster, Glanbia, The Irish Holstein Association and Progressive Genetics. Hosted by Associate Professor Karina Pierce, farmers and journalists from Europe and beyond learned the farm has 200 cows in two groups, the first a 60-cow herd of high EBI spring calving cows managed on high input/output, and the second a mob of 140 head split between 80 spring and 60 autumn calvers managed in a grass-focused regime. The farm’s extensive buildings centre on a 40-bail rotary milking plant, configured with four feed lines for trials work, with specialised handling and observation areas for students and visitors. The farm is focused on understanding current and developing new systems of milk production since the European Union quota removal. It recognises that grass-based milk production dominates in Ireland, so is concerned with such challenges as restricted and fragmented land areas

that inhibit expansion, labour use, the environment, profitability and the cost of expansion and sustainability. The main herd has a stocking rate of 3.4/ha over the milking platform, average milk solids output of 625 kg/cow and a six-week in-calf rate of 75 per cent, on a diet of 75 per cent grazed grass and grass silage. For the 2017 season, grass growth amounted to 14 000 kg/ha and silage on the milking platform at 2000 kg/ha, with nitrogen (N) use of 260 kg/ ha, phosphorous (P) at 8.6 kg/ha and potassium (K) at 44 kg/ha. The average lactation was 305 days, with a physical yield of 7548 litres and an overall production average of 2023 kg milk solids/ha over the milking platform. Reproductive performance data showed a 96 per cent submission rate, a first-service conception rate of 69 per cent and a six-week pregnancy rate of 84 per cent (2018). Gross margins were €7045/ha, €2894/cow and a milk price of 38.25¢/litre. Total costs were €3994/ha, €1641/cow and 21.68¢/litre, achieving a net margin of €3051, €1253 and 16.56¢/litre, respectively.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

16 // NEWS

Looking at a changing industry A SHIFT towards partial and total mixed ration

farming systems has been the trend since 2006, especially as the landscape of the dairy industry continues to change. At the Australian Bureau of Agricultural and Resource Economics and Sciences Regional Outlook conference in Shepparton last month, Murray Dairy’s Jenny Wilson spoke about how the industry had changed since deregulation. “Since deregulation in the late 1990s we’ve seen the industry challenged on several fronts. This includes the millennium drought, changes in water policy and the opening up of competitive water markets,” Mrs Wilson said.

“(In the Murray Dairy region) We’ve seen a big shift away from low input pasture-based systems to partial mixed ration systems and total mixed ration systems. “PMR systems that we see in this region are quite variable; and often what we see in a year of improved water availability and price, people often slip back into a high water use scenario — so it’s not a stable system or stable environment.” Mrs Wilson also explained the characteristics of farmers who were doing well during what is a difficult period for the industry. “What we see is those that are planning and have their risk management in place, have water

portfolio options available to them, have equity and are seeking that advice from across the industry — they’re the ones doing well,” she said. Wyuna dairy farmer Russell Pell also spoke at the conference. From the Murray-Darling Basin Plan to the uncoupling of land and water rights, Mr Pell said water had never been more important to farmers. “Securing water for your future is really important … we’re constantly challenged with what we can grow for a megalitre of water,” he said. “I’d hate to think about what would have happened now if we hadn’t modernised our system.” As water became more scarce, Mr Pell said he placed more emphasis on getting the most out of his water and had turned to producing maize, along with a number of other crops. With his maize getting close to four tonnes of dry matter per megalitre, Mr Pell said he also saw his best annual pastures achieve similar results. But he said it hadn’t been easy. “It’s very hard for the average guy to do all this. As an area we really are reliant on dairy,” he said.

Wyuna dairy farmer Russell Pell.

With every million litres of milk employing six people across northern Victoria, Mr Pell said a prosperous dairy industry was a win for all. With unpredictable conditions increasingly being experienced across the country, Mr Pell said the changing weather and climate change were increasingly taking a hold. “In a short span of time it’s changed so much and we’re going to have to live with it.”

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

NEWS // 17

Cows need to keep their cool SOPHIE BALDWIN

AS THE temperature rises in spring, it’s time for dairy farmers to give some thought to heat stress. And that’s not just in lactating cows; studies are showing that dry cows are just as important. A Murray Dairy workshop on the effects of heat stress in dry cows, held in October, delivered some surprising information to the farmers in attendance, giving them some food for thought when it comes to their future management. Presented by Geoff Dahl from the University of Florida in the United States, the workshop was held by Brendon Martin from Allenby Pastoral Co at Bamawm. Mr Dahl is involved in the Department of Animal Science in the university’s Institute of Food and Agriculture Sciences, and has been studying the effects of heat stress on cows for years. He said while most farmers were well aware of the effects of heat stress on the milking herd, dry cows were often forgotten. “The effects of heat stress on dry cows will have significant impacts on the next lactation and the next generation,” Mr Dahl said. Studies by the University of Florida have shown heat stress can reduce production in a

lactating cow by 5 litres/day and, perhaps even more interestingly, calves born to heat-stressed cows show reduced growth rates and go onto produce less milk as mature cows. Mr Dahl said all the studies involved similar genetic merit cows, age and feed regimes — the only thing that differed across them was the exposure to heat. The cows were studied in groups of 20. “The lactating cows were always kept cool and every animal was fed and housed the same — the difference was only ever in the treatment over the six-week dry period. And the more times we did the study the more convincing the data was,” he said. Heat-stressed cows have a lower feed intake compared to cool cows, and cool cows have an improved immune status. “Heat stress decreases gestation and results in reduced placental function — on average they calve four days earlier than cool cows,” Mr Dahl said. The study has also shown immunising cows when they are heat-stressed can reduce the effectiveness of the vaccine. Mr Dahl said even if cows were heat-stressed for a period of three weeks and then cooled, the effects still carried over into the next lactation, although they were slightly reduced.

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The easiest way to tell if a cow is heat-stressed is to observe her respiration rates — anything above 60 breaths for 60 seconds is heat-stressed. “In general I would say heat stress is experienced across all breeds and we can’t say one breed is better than the other because the effects are always the same,” Mr Dahl said. He believed preventing heat stress in dry cows was even more important than the milking herd. “The response on heat-stressed calves is there for life. A heat-stressed calf in utero will never catch up and that is passed down onto their progeny — they always seem to be sitting on the lower limit of normal. “I would be developing on-farm infrastructure to keep cows cool as my priority. You will always get the most bang for your buck by keeping dry cows cool.” Mr Dahl said while shade was certainly better than nothing, fans and sprinklers were the way to go. He urged farmers to bring their dry cows up and pop them under the sprinkler at the dairy as well as the milking herd. Calivil dairy farmer Jade Clymo said the presentation had definitely given him pause for thought when it came to managing his dry cows. “It certainly is a lot more important than I realised and this has given me a lot to think about when it comes to the future management of my

American scientist Geoff Dahl has been travelling the length of Australia talking about the effects of heat stress on dry cows.

dry cows,” Mr Clymo said. Brendan Martin said his priority had always been to care for his lactating herd, which was always brought up and put under the sprinklers during hot conditions. He would love to set up something for his dry herd but he said tough financial conditions were making it difficult to invest in any sort of infrastructure at the moment.

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

18 // OPINION RUMINATING

EDITORIAL

Like it or not, here comes a dairy code

MILKING IT... Cream of the crop Devondale’s Long Life Thickened Cream is back on supermarket shelves, in response to a large-scale campaign by Australian consumers. A relaunched 250 ml pack, which was back in stores late last month, is available initially in Woolworths, selected independent supermarkets and MG Trading stores nationwide. The relaunched product features a re-closable lid. The product was discontinued in 2017 as a result of the closure of the factory in Tasmania where it was manufactured. Due to overwhelming customer sentiment, Devondale brand owner Saputo Dairy Australia decided to relaunch the iconic whippable cream following its acquisition of Murray Goulburn’s activities in May this year.

Milk and honey? Bega Cheese chief Barry Irvin has been busy snapping up brands over the past two years and now it looks like he has his eyes on Capilano honey. Although he hasn’t said Bega wants to buy the whole company, Bega now owns more than 15 per cent of the shares in the iconic Australian honey brand. You will remember that Bega ‘bought back the farm’ when it purchased Vegemite, and also grabbed peanut butter from Kraft, although that move was a little complicated earlier this year with a legal battle with the giant American. According to the last AGM (at which Bega reported a $1.4 billion revenue and $28 million after tax profit), the company is hoping to get an outcome from the court battle next year. In September, Bega announced it had bought about five per cent of the honey maker and in October moved its stake to about 15 per cent. The Bega guys have been busy in the dairy sector as well, buying Koroit factory in western Victoria from Murray Goulburn. We can’t help wondering if Mr Irvin has taken a look at Sheppartonbased SPC, as its owner Coca Cola Amatil has got the business under review.

Barry Irvin has been busy.

Actually he could have made an offer for SPC’s old jam factory at nearby Kyabram, and they would have cornered the Australian breakfast market: dairy, vegemite, peanut butter and then jam! Alas, a couple of Sydney businessman have snapped up the Kyabram IXL factory. Meanwhile, Bega is facing a competitor who definitely wants to buy Capilano. Early in November, the private equity fund, Wattle Hill RHC increased its cash offer for a takeover from about $20 a share to $21.

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Whatever the reservations of some industry groups it appears a dairy code is on its way. Federal Agriculture Minister David Littleproud has confirmed the industry should have a framework to look at before the end of the year with the possibility a new code could be in place next year. This will be something of a surprise to the UDV, which has argued that a mandatory code could take years to create, authorise and implement. Another concern was that the extra costs of the code will eventually be borne by farmers — another impost passed back to suppliers. A mandatory code was one of the recommendations of the Australian Competition and Consumer Commission. Mr Littleproud makes the observation that there is an imbalance in power between dairy farmers and processors, which has been an issue that has dogged the industry for decades. Farmers have been historically difficult to bring together on vital issues, coming from a culture of independent thinking and with a healthy suspicion of organisations and bureaucracies. This has worked against their interests when it comes to lobbying for the industry and in seeking anything like collective bargaining. Hence the smaller number of processors, which face their own challenges with rising production costs and highly competitive international markets, have been able to dictate prices and rules for supply. The Murray Goulburn experience has shown how even a co-operative with a supplier-driven history can lapse into behaviour which could be regarded as unfair. Whether the mandatory code becomes a strangling cost on processor operations will largely depend on the content. What will be interesting to see is how the Federal Government’s agriculture department develops the new code, in view of its difficulty in handling the recent Murray-Darling Basin water consultations.

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Acting editor Geoff Adams Dairy News Australia is published by Shepparton Newspapers Pty Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.

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Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address O Box 204 P Shepparton, Victoria 3632 Australia

DAIRY NEWS AUSTRALIA NOVEMBER 2018

OPINION // 19

Bandaid approach leaves farmers stranded KARRINJEET SINGH-MAHIL

THE OTHER week we sent 20 cows from our

Crossley dairy farm to slaughter. That’s on top of the 15 we sent a few weeks before. These were good dairy cows, profitable and well in-milk. We wanted to keep them. But the sad truth is we probably couldn’t afford to feed them through the summer. Another sad truth? It didn’t have to be this way. Over the last several weeks farmers in southwest Victoria have been culling cows to reduce the size of the Victorian herd, cows that right now are profitable and well in-milk. This is while there is plenty of grass in the paddocks and rain forecast. Why? Because this summer we won’t be able to afford to buy in any feed since prices have skyrocketed. Thanks to the freight subsidies State Governments have offered to drought-affected farmers in NSW and Queensland, all the feed from states

and regions not affected by drought has headed north, so the little we are left with is very expensive and poor quality. Government actions have distorted the market. We made the decision to de-stock now and conserve whatever spare grass we have so we know we can look after the rest of our herd, no matter what the summer brings. Many forward-thinking Victorian dairy farmers are doing the same; mitigating losses and developing buffers. For many of us, this is the only way our businesses will survive. Our businesses will have to shrink and our industry is heading for a significant reduction in milk production. It will take several years for us to rebuild our herds and that means our industry will have to work hard to ensure we don’t lose too much space on supermarket shelves to imported dairy product that is made to far lower quality and safety standards. Will it impact what consumers pay? Perhaps. Or maybe supermarkets will refuse to pass

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any increased costs on to shoppers, instead sending even more farming businesses to the wall, all while our politicians, the architects of this mess, bemoan cheap milk and even cheaper imported cheese. The fact we have no co-ordinated national approach to drought policy is destroying farming businesses. The response to the drought is at best piecemeal. Our political leaders apply bandaids as problems arise, never seeming to realise that every action has a reaction: more feed heading north is just moving feed shortages further south. It is rare that a complex problem has a simple, short-term fix. But that is what we keep getting from our politicians. We need a considered plan, not a lottery. What we need is a national strategy for climate change and agriculture that ensures that the consequences of any decision-making in response to drought are carefully considered. That strategy also needs to ensure that all farmers are supported to make those tough decisions early.

Karrinjeet Singh-Mahil.

Global warming means we are heading into new territory. The recent IPCC report on 1.5 degrees warming made that very clear. Farmers must be equipped with the right information toolkit in order to run profitable and sustainable businesses long-term. Any national strategy for climate change and agriculture is going to be too late to save the Victorian cows currently heading to slaughter. It can make a massive difference, however, to the long-term viability of Australia’s dairy industry. • Karrinjeet Singh-Mahil is a Crossley dairy farmer and a Farmers for Climate Action member.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

20 // MARKETS

What business are you in? There are higher priced dairy products and more milk substitutes than ever — consumers have choices. Many have the capacity and desire to pay more if they receive a benefit — think organic or a2. Increase the price for what is essentially a commoditised, staple product and they may choose to pay it — or they may believe the hype and switch to almond, hemp, oat or soy milk! The game hasn’t only changed on the farm — the consumer landscape is so different, and it’s not going back to the way it was. Disruptions to business models are coming from all directions. Consumers are making choices on more than price. Perceived status (hence the high-priced bottled water), health and environmental benefits as well as animal welfare concerns are increasingly driving food purchase decisions. There are new online and offline players offering more competitive prices, greater convenience and complete traceability — neither supermarkets nor dairy producers are immune from the changes. Each time dairy hits the media as a victim of supermarket power or drought there are more comments about cruelty — and how wiping out

the dairy industry would be a good thing for the planet. Farmers have always enjoyed high levels of respect and admiration from the wider community — but that goodwill is not a bottomless well. It may be whipped up temporarily with media coverage, but is sympathy really enough to sustain the industry into the future? There is no captive market that can be tapped to support on-farm practices that aren’t valued or sustainable. Plant-based diets are increasingly popular and synthetic proteins are attracting lots of investment. To survive and thrive the dairy industry will need to raise it sights and really consider what business it’s in. Who will be paying for dairy in the future and why will they pay for it? What are the benefits of dairy that people have forgotten about or were unaware of? How will the industry help consumers feel good about paying more for — or even continuing to buy — dairy products. In an increasingly complex environment, perhaps the industry needs to sell more than milk and victimhood. Tapping into the ‘what makes dairy special’ — for those that produce and consume it is

key to a sustainable future — and the business models that make up the industry must continue to evolve to meet a changing world, not deny it. Dairy is the business of conjuring a complete, natural nutritious food from grass that needs hardly any processing compared to those other milks. Dairy is the business of linking to centuriesold cultural and food traditions, but it has also innovated to create high-value food solutions to customers that were not dreamt of 20 years ago. At the same time, it’s the business of being part of a community, it’s healthy but also indulgent and delicious. It’s a great story to tell, but is it being told in a way that sufficiently influences choice? Dairy must also be part of the solution to the environmental challenges we face — not just reducing impact, but talking about the carbon that can be captured in well-maintained dairy pastures, the bio-diversity being supported through silvo-culture systems that combine livestock and trees, or the capture of renewable energy. The business you’re in is changing — does it have the vision and the model that will take it into the next 20 years?

Australian milk production (mill litres) vs real farmgate price ($kgMS)

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Reading this you might say it’s always tough, but extended drought conditions that have sapped emotional and financial resources in many regions are taking a particular toll at present. Dairy Australia is now forecasting this season’s milk production will be back where it was in the mid-1990s. In every other sense, the dairy industry seems very different to the way it was two decades ago. Between 1990 and 2000 dairy in this country was on the rise — production through that period grew at an average rate of six per cent annually. The industry growth was driven by strides in productivity that offset an annual decline in average farm gate price of three per cent in real terms during the same period. There was no discussion about the price of milk in supermarkets — although the industry was already well on the way to deregulating the supply chain between processor and consumer. As the industry grew it seemed accepted wisdom that it was exports that would be the way of the future. Industry bodies were focused on lobbying government for favourable trade deals and policy settings that supported efficient milk production. There was a confidence that Australian dairy was ideally placed to competitively supply the growing Asian regions at our doorstep. Fast forward to today and the mood around the dairy industry feels vastly different. With more extended dry periods hitting dairying regions and raising input prices, productivity gains have stalled. While in real terms farm gate prices are in fact much more stable since 2000 than in the decade prior, volatility in income has increased with climate variability. It would be nice to go back to the good old days when things were more stable and dairy was the golden child of agriculture with seemingly boundless potential. Given the discussions recently about legislating how the supply chain works and even milk price increases, it seems some industry leaders feel they can somehow recreate those pre-2000 settings. These days, when the cry goes out for higher milk prices the comparison is often made with bottled water to illustrate the injustice of $1/ litre milk. However, the comparison doesn’t make much sense from a consumer perspective.

1990

IT’S TOUGH being a dairy farmer right now.

FRESH AGENDA JO BILLS

Global dairy commodity prices (USD/tonne FOB) 7 000 6 000 5 000 4 000 3 000 2 000 1 000 n-18

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DAIRY NEWS AUSTRALIA JULY 2018

MARKETS // 21

Challenging season to continue

GLOBAL IMPACT SOFIA OMSTEDT

Australian milk production (mill litres) vs real farmgate price ($kgMS)

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Private8.00 label cheese is closing in on half the market share of the chilled cheese market, 7.00 while higher-value deli cheese grew in popularity. Yoghurt sales continued to grow, driven 6.00 by strong demand for the ‘traditional yoghurt’ category. 5.00 The average retail price of butter grew 36 per cent over 4.00 the year due to higher global dairy fat prices. Inelastic demand for butter in Australia saw sales 3.00 value in the dairy spreads category grow more than 18 per cent in the past year. Global 2.00 dairy demand also remained strong and total exports from the six largest exporters 1.00 grew 3.7 per cent over the 12 months to July. Australian exports increased 4.1 per cent to 745 000 0.00 tonnes, driven by strong growth in liquid milk sales and infant powder exports. During the past year the majority of Australian infant powder exported was destined for the greater China region. Growing demand for Australian dairy products serves as a timely reminder of the longer term opportunities for the industry. However, given current conditions, milk flows will inevitably be impacted this season.

$kgMS

Queensland and NSW are expected to be hit the

10 000 season, which has proved to be a challenging hardest by the ongoing feed shortage and drought one for many dairy farmers. Unseasonably hot and dry weather saw feed conditions on-farm. 8 000 costs surge over winter and have for many farmers negated the benefit of better farm gate prices. milk production is forecast to contract between Alert, indicating a 70 per cent probability of an Dairy Farm Monitor Project data showed all6 000 El Niño forming this year. dairying regions had been affected by the rising five and seven per cent this season. An El Niño, combined with an increased Queensland and NSW are expected to be hit cost of feed. the hardest by the ongoing feed shortage and likelihood of a positive IOD, usually results in While seasonal conditions have proved chal-4 000 drier and hotter weather across Australia. As lenging, the wider market has been much more drought conditions on-farm. Elevated water prices in northern Victoria a result, weather forecasts are not providing settled. Dairy Australia’s recently released Sithave constrained farmers’ ability to respond to much hope for improved climatic conditions uation and Outlook report shows demand for2 000 dairy remains strong in domestic and overseas the increase in feed costs by producing more for the remainder of 2018. While weather and feed issues have domifeed on-farm. The dry weather has also affected markets. 0 growth in the region. nated current news, the wider dairy market has Hot and dry weather over the past six crop Conditions further south in Victoria are formed a more stable picture. months led to a sharp increase in feed costs, The domestic market for dairy products conas demand for hay exceeded supply. Supply of more varied. East Gippsland is affected by a hay has started to increase as new-season crops drought while parts of south-western Victo- tinues to provide healthy demand for dairy. All enter the market, yet demand remains strong. ria are too wet. Dairy farmers in South Austra- key dairy products showed value growth, and all The feed shortage, combined with high irri- lia, Western Australia and Tasmania have been but dairy spreads saw increased volumes sold. Drinking milk consumption continued gation prices and limited rain, has led to a faring better over the past four months. Nevertheless, the increase in feed costs has to shift in favour of full cream milk and the decline in cow numbers. Over the first three recovery in private label sales has persisted. Flamonths of the season roughly 20 per cent more been felt across the whole country. Earlier in October the Bureau of Meteo- voured milk sales grew five per cent, outpacing cows passed through saleyards compared to last year. As a result of these challenges, Australia’s rology updated its ENSO outlook to El Niño the broader category’s one per cent increase.

2018

WE ARE now four months into the 2018–19

Global dairy commodity prices (USD/tonne FOB) 7 000 6 000 5 000 4 000 3 000 2 000 1 000

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

22 // MARKETS

Feeding Asia’s growing appetite for cheese THE RACE is on to win market share in Asia’s

cheese market, with the region offering “a compelling growth opportunity” for Australian dairy exporters in the medium term, according to a recently released report. Despite the robust growth outlook, the report, Asia’s fast-moving cheese markets: Australia’s race to win, by agribusiness banking specialist Rabobank, warns other exporting nations — with a much larger production base and export potential — are also looking to expand their presence in Asia. There is evidence market competition is already increasing, but according to Rabobank senior dairy analyst Michael Harvey, it is set to intensify as leading cheese manufacturers in New Zealand, the United States and Europe invest in production capacity. “Over the next three years, we will see this new processing capacity come on-line, which potentially will be more than sufficient to service the Asian markets,” Mr Harvey said. With “a lot riding on Australia’s ability to succeed in the Asian cheese market”, Mr Harvey said the industry “must play to its strengths” by focusing on maintaining and growing market

share in the high-end segments of the market. Citing investment in dairy innovations and formulations as the way forward, he said tailored products could include improved functionality and desirability (to suit local cooking styles), clean label initiatives, nutritional demands (such as additive-free or sodiumreduced) and the development of snacks tailored to local consumers. “But much of Australia’s ability to grow exports into the Asian region will hinge on the sustainable growth of our milk supply,” Mr Harvey said. “And, while possible, growth prospects are up against hard constraints and seasonal impediments at the moment.” Mr Harvey said Australia’s cheese production had grown in recent years, with close to half a billion dollars injected into the nation’s cheese processing capacity since 2015 to account for 54 per cent of total capital expenditure in dairy processing. “And this bias towards cheese production doesn’t look like abating any time soon, with new processing capacity continuing to come on board, while the tight supply of milk is being

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prioritised for the higher growth and healthier margins offered by cheese and whey streams. “This comes at a time when Asia’s cheese imports are also growing, with China notching up an annual cheese import growth rate of more than 20 per cent between 2012 and 2017. “Meanwhile growth has been around 10 per cent per annum over the same period, in the ASEAN-5 countries of Indonesia, Malaysia, Thailand, the Philippines and Vietnam.” Mr Harvey said growth had been slower in Japan and Korea (at an annual rate of two per cent), however these two countries, together, import three times more cheese than China (importing 340 000 tonnes in 2017, compared with China’s 100 000 tonnes). “China is where the growth opportunities lie for Australian cheese exports, with China’s annual cheese imports set to potentially double by 2023,” he said. Despite Australia’s proximity to the Asian market and its ability to compete on price, Mr Harvey said Australia had “no absolute competitive advantage” in supplying Asia’s cheese market. “As such, if Australia is to succeed in its

A Rabobank report says Australia can tap into the robust outlook for Asian cheese consumption, especially in China.

industry-wide Asian strategy for cheese and whey-derived nutritionals, it must to play to its strengths as an alternative supplier to other regions as well as a reliable supplier to customers demanding high-quality product.” The report found the immediate priority for Australia to increase its cheese exports lies with the industry here sustainably increasing milk production and improving plant utilisation. “While possible — and Rabobank forecasts a modest growth in milk supply over the next five years — there are many headwinds to achieving this, particularly in light of the current season,” the report said.

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

24 // MANAGEMENT

New tool for weed control in forage brassicas

Scott Travers with a demonstration on a Gippsland farm showing that where ForageMax was applied, the weeds were completely removed (the treated area is on the right).

Many regions in eastern Australia are suffering from the effects of below average rainfall and this is causing a rapid decline in the availability — with a corresponding sharp rise in price — of feed, which many dairy farmers rely on to nourish their stock over the summer and autumn months. In the absence of readily available and moderately priced feed from off-farm sources, farmers this spring may want to give serious consideration to sowing increased areas of summer forage crops. Many farmers have been experimenting with various summer forage options for a number of years and the more successful have incorporated one or more of forage rape, turnips, swedes, maize and sugar beet into their farm plans. To successfully grow these feed crops, a number of factors must be considered, including: ■■ Will there be enough moisture at crop establishment to get the crops up and growing as quickly as possible?

■■

What is the best species mix to maximise productivity? Can the weeds and pests be successfully controlled in these mixes? What is the cost benefit of growing your own feed versus buying in feed from another farm? What will this paddock be used for in the following rotation?

Grain and hay prices are likely to hit record levels this summer so buying in feed becomes less attractive to those farmers with the ability to establish their own summer forage crops. Maize is a great option for growers with ample water supplies and irrigation capability but it often struggles in many of the dry, hot areas of southern Australia to give long-term feed security. Swedes, turnips and rape forage brassicas could be a very attractive feed option for many farmers this summer. They are generally a fast growing and a low cost crop which provide a nutritionally balanced and easy to digest food

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MANAGEMENT // 25

in-crop broadleaf weed control in forage brassicas. It maximises the grazing potential of rape and turnips by controlling key problem weeds such as fat-hen, amaranthus (Prince of Wales feather), capeweed, cleavers, deadnettle, fumitory, marshmallow and thistles, allowing crops to flourish. In the past, these forage crops have often been overrun by weeds therefore reducing the number of grazing events, the overall feed value of the crop and causing ongoing weed problems in following years. Use of ForageMax consistently increases brassica dry matter (DM) production. Scott Travers, an agronomist with MG Trading based at Yarram, arranged a recent demonstration on a farm at Calrossie, Gippsland where the dominant weeds were fat-hen, Prince of Wales feather (amaranthus) and stinging nettles. Where ForageMax was applied, the weeds were completely removed. “Everyone who saw the site or photos from the paddock (were) pleased with the results. Weed control was really impressive,” Mr Travers said. ForageMax is best applied early to forage brassica crops to target weeds before they begin to compete for nutrients, water and space. It works most effectively on small, actively growing weeds that are not stressed by drought, frost, insect or disease pressure. ForageMax is rain-fast within three hours, has a short grazing withholding period of only

source, providing your stock with a vital source of energy. Forage brassicas are high in protein, with crude protein content of leaves ranging from 15 to 25 per cent. This can produce excellent livestock weight gains of up to 1.2 kg/day for growing cattle.

“Everyone who saw the site or photos from the paddock (were) pleased with the results. Weed control was really impressive.” - Scott Travers In addition to providing a viable source of nutrition for livestock, forage brassicas also form a useful part of a pasture/whole farm improvement program by providing a ‘break’ in the cycle for weeds and diseases, leaving paddocks in ideal condition for sowing new pastures or other crops. Many farmers moved away from sowing forage brassicas over the past decade due to their inability to control broadleaf weeds and insect problems. Weeds can severely depress fodder crop yield and, in particularly bad situations, livestock will actively avoid feeding within the crop due to weed presence ForageMax is a unique herbicide solution for

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This picture shows how when ForageMax is applied to control heavy weed populations, the yield gain within the crop is stunning.

14 days and can be tank-mixed with insecticides and other agricultural inputs. It must be tank mixed with Uptake Spray Oil to ensure optimal performance. At a turnip demonstration site in southern Australia, the yield from the crop where weeds were controlled with ForageMax reached

10.5 tonne DM/ha. The yield from the untreated portion of the crop was just 3 tonne DM/ha. Thus at an approximate cost of $50/ha for the herbicide treatment this represents a very high return on investment in terms of available feed, particularly when compared to the cost of buying in hay or grain at current prices.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

26 // MANAGEMENT WHO:

Owen and Carlie Barry WHERE:

Carpendeit

No turning back

WHAT:

Building the business in challenging times

RICK BAYNE

OWEN AND Carlie Barry don’t mind taking on a challenge or two. When the dairy crisis was at its nadir, instead of selling cows they leased a second farm. In early 2019 they will move onto their first purchased farm at Carpendeit but at the same time they will continue to lease a farm at Weerite, both in south-west Victoria. Mix this with raising two teenage children and two children aged under three and it’s a recipe for a busy lifestyle, but they are relishing the challenge. Owen grew up on a farm at Alvie, spent six years on a cropping farm on the Eyre Peninsula in South Australia and worked as a truck driver and milker. Carlie was from Ballarat and worked in agribusiness and as a Fonterra area manager while also milking in the mornings and evenings. Delivering grain to farms inspired Owen to return to full-time farming and sharefarming was the logical progression.

He had been approached to do relief milking for two weeks with a 200-cow Jersey herd while also managing his parents’ beef farm at Alvie. The relief work was enjoyable and a few weeks later he was called back to the farm at Dreeite after the farmer had a heart attack. Owen suggested sharefarming. He started in 2010 on a one-third share and went to 50:50 in two years. In 2014 Owen and Carlie started looking for a lease option and found a suitable farm at Tandarook. “Sharefarming was quite controlled and we wanted to lease so we had more control over the business,” Carlie said. “We knew our cows had the genetic potential and breeding behind them that if they were fed to their potential could do really well. “There’s more risk but if everything goes well there’s the potential to be financially a lot better off.” They milk 300 Jerseys on the 280 ha farm on a 70–30 split calving with the bulk in autumn. The cows are producing 136 000 kg of milk solids; an average 1.1 kg MS/kg of body weight, or about 485 kg MS/ cow. “The Jerseys are smaller but they’re more economic and easier to handle,” Owen said. The move south was difficult for the cows who struggled to adapt to the farm conditions. “We had issues with animal health and diseases

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Milk production is up this year in the dairy business.

we hadn’t even heard of,” Carlie said. “The further south you go, the dirt isn’t as fertile. The plants are healthier and your cows are naturally healthier with better soil; down here you have to put out so much fertiliser and then it’s locked up,” Owen added. In 2016, at the height of the dairy crisis, they leased a second farm at Weerite and bought a second herd. “After sharefarming when we were trying to lease a farm, there were a few months where we had to cow-park and it was a nightmare,” Carlie said. “We never wanted to be in that situation again so when the opportunity came up to lease a second farm we did as a back-up if anything happened.” She admitted it was a risk, especially as the cows weren’t as cheap and easy to find as they had expected. “We couldn’t find any Jerseys so bought crossbreds and still paid $1500-plus for them, but we saw the potential and we could grow our cow numbers.” They are on track to have the herd paid off within five years. A young couple is managing the farm for them.

Their lease agreement on the Tandarook property expires next March but the Weerite lease lasts until 2021. “Nothing will change there,” Owen said. “At our new farm our herd may downsize a bit so any spare cows will go to that second herd and we’ll be able to cull the bottom out of the second herd.” All the changes have been with farm ownership as the ultimate goal. “We’ve expanded from a 200 to 300 to 600 herd, the next step was farm ownership,” Carlie said. “We could see it made sense and we were confident of the figures. Mentally and emotionally, if we had to continue leasing for too much longer we probably would have got out of the industry. “Leasing is like renting a house. We’ve been lucky both owners have been good with maintenance but you’re limited when leasing. “When we move to our own farm we’re not going to have a lot of money to spend on improvements but it’s something we can put on our list and work towards. You’ve got no-one else to blame.” Their herd will be moved to the new 170 ha Carpendeit farm.

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MANAGEMENT // 27

The Jersey herd is producing about 485 kg/cow.

Owen and Carlie Barry with children Daisy and Elvie.

“It’s a simple and less labour-intensive farm with good options for putting on a sharefarmer down the track,” Owen said. “The layout is a lot easier; this is a long and skinny farm and the cows have to do a lot of walking up and down hills. Our new farm is all flat and has a simple layout.” Both Owen and Carlie have had back issues and say the new dairy — a 13-a-side double-up with cup removers — is a better option than the lease farm’s 25-a-side swingover. “Our new farm is a one-person dairy and the height is a lot better,” Owen said. As part of an arrangement with the vendor over a 12-month settlement period, Owen and Carlie have access to 60 ha of the farm. “Some crops are in the ground now and after harvesting the silage paddocks we will be cropping them as well,” Owen said. Kale, turnips and chicory have been planted for grazing, barley and Italian rye-grass also with chicory have been planted for silage, and sorghum will

be planted in November for silage and grazing. The aim is to buy minimal feed supplies. “Ideally, I’d love to have some sort of crop year-round so there’s always feed and I think that farm will do it,” Owen said. In their four years at Tandarook, this has been the first season they’ve run out of silage, forcing them to buy in hay. This season is shaping up much better. Despite the difficulties, Owen and Carlie have continued to feed their cows well, including ample supply of grain even though prices have been soaring. Production year-to-date has been the best they’ve had in the four years. Their herd is top priority. They use corrective breeding and purchase top-line semen to build strength and capacity, components, type, udder and workability. Their registered Jerseys have won and scored placings in the Western District Jersey Club onfarm challenge.

The property has diverse feed options to support the herd.

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

28 // MANAGEMENT

Seeing red at global gathering RED DAIRY cattle breeders, breed organisations and genetics company representatives from around the world will converge on Australia next March for a global event designed to bring red cattle breeds together. The International Red Dairy Breed Federation conference and tour is being hosted by the Australian red dairy breeds. The event is held every three years and is in Australia for the first time since 2000. More than 100 people are expected to attend, with registrations already confirmed from the United States, New Zealand and Sweden, and with strong interest emerging from Germany and Denmark. Most dairy areas in Australia will be represented. The conference will centre on Mount Gambier in South Australia, while the tour will take delegates from Adelaide to Melbourne. It follows the theme ‘Bringing Red Breeds Together’ and will run from March 22 to 29, 2019, with an optional extension tour to Gippsland. Organising committee chairman Graeme Hamilton said it was an opportunity for red cattle groups to work together to improve communication between the various red breeds.

“Red dairy breeds fall under many different names across the world and the conference is an opportunity to bring these many groups together to talk about how to enhance red dairy cattle and their promotion,” Mr Hamilton said. “Working together and pooling ideas and resources is the best way to achieve success,” he said. “You learn by listening to top speakers and visiting farms, but the great thing about the conference is building networks and friendships.” Mr Hamilton said red dairy cattle were generally of medium stature, were efficient producers of milk solids and excelled in health traits such as mastitis resistance, fertility, calving ease and disease resistance. The tour begins in Adelaide on March 22 and will involve visits to herds and tourist attractions in central South Australia, the Mount Gambier region, south-west Victoria and Geelong. Delegates will also visit platinum sponsor Genetics Australia’s property at Bacchus Marsh. At the official conference day on Tuesday, March 26 at Mount Gambier, Australian and international speakers will provide updates from around the world on present and future breeding

The conference will bring a focus on Aussie Red cattle.

aspects of the red breeds. New information will be available on traits for feed efficiency and heat tolerance, and a focus on managing breed diversity. Event organiser Kylie Boston said visitors would get the best of both worlds with information at the conference and on-site experiences at farms.

“It’s a rare and valuable opportunity for red cattle farmers to get together to advance the breeds,” Ms Boston said. For more information and to register, contact Ms Boston before February 1 by phone on 0407 231 547 or by email at: kylie.smc@bigpond.com

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

30 // ANIMAL HEALTH

Look out for cancer eye APIAM ANIMAL HEALTH GEMMA CHUCK

What is cancer eye?

THE WARMER weather is just around the corner for many of the dairying regions in Australia. The longer summer days can bring new animal health concerns, one of which is cancer eye. This article discusses the most common types of cancer eye in cows as well as their treatment and prevention.

The most common type of tumour or ‘cancer eye’ in cattle is squamous cell carcinoma. This type of tumour is very invasive and can rapidly spread to the surrounding ocular tissues. The condition is of extreme economic importance, representing 58 per cent of all cancers

I reckon if they could talk, they’d ask for it by name.

If we could talk we’d be on TV.

that result in condemnation of mature cattle slaughtered and 33 per cent of total condemnations in mature cattle (Australian Quarantine Inspection Service, NSW, 2010–2014). Herd prevalence varies from one to 20 per cent and is associated with certain risk factors such as breed, pigmentation, age and exposure to sunlight (UV radiation). Cattle with non-pigmented eyelids and conjunctiva (white-faced cattle) are at increased risk and the disease occurs most commonly in Herefords and white-faced Holstein Friesian cattle. Cancers usually start on the unpigmented skin but can spread to pigmented areas. Older cattle are more susceptible to cancer eye, with the disease being uncommon in cows under five years of age. This is likely related to the increased exposure to other risk factors such as sunlight. Viruses have also been implicated but their importance in the disease is not fully understood.

How is cancer eye identified?

And asking for Champagne with breakfast.

The tumours are found most commonly on the third eyelid, the upper and lower eyelid margin and on the eyeball itself (most frequently where the white of the eyeball meets the clear part of the eyeball, called the limbus). There are four common appearances of cancer eye, three of which are benign and the fourth being highly malignant, meaning it has the ability to spread to adjacent and underlying tissues. ■ Plaque (benign): Small, circular, white elevation on the surface of the eyeball. ■ Keratoma (benign): Hard, raised growth on the eyelids, often with discharge and debris. ■ Papilloma (benign): A wart-like growth. ■ Carcinoma (malignant): Nodular and cauliflower-like. Commonly is bloody, ulcerated, friable, and foul smelling. Can initially appear as one of the other benign forms of cancer eye or can simply arise without any of the benign stages. The benign forms can sometimes regress but the malignant form will progressively grow and invade the entire eye socket and surrounding structures.

How is cancer eye treated? Treatment must be prompt, aggressive and performed by a veterinarian. The success of treatment is highly dependent on the location of the tumour and invasion of surrounding tissues. Tumours can be surgically excised, either in isolation or may involve a more radical procedure such as ablation of the entire eyeball. Surgical excision does not guarantee a cure and a high recurrence rate can be expected in some cases (40 to 50 per cent). Your veterinarian will check the lymph nodes of the head and neck prior to any treatment to help give a prognosis. Cryotherapy (effectively freezing the tumour off with a cryogen such as liquid nitrogen) is also utilised by some veterinarians and is a very useful therapeutic tool. This method works well on small tumours (less than 2 cm diameter) on the eyeball itself but can leave a scar on the surface of the eye that may interfere with future vision.

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

ANIMAL HEALTH // 31

Is it too hot in the ‘kitchen’? ROD DYSON

SUMMER IS almost here, and there will be

some consistently high temperatures as well as some very hot days coming, especially in some of our warmer regions. Unfortunately, heat and sunlight can be an enemy of many products used on farms. One of the more interesting cases is the effect of heat and sunlight on teat disinfectants. In fact, many of our teat disinfectant products have some quite interesting storage warnings on their labels. Most iodine- and chlorhexidine-based products (the most commonly used products in Australia) have one or both of two storage warnings, and the warnings apply to both ready-to-use products and mixing concentrate products. The first warning is a temperature warning — most commonly to store the product ‘below 30°C (room temperature)’, although some even have a storage requirement of ‘below 25°C (airconditioning)’! The second common warning is to store the

product out of direct sunlight. Additionally, there is often a recommendation to store the product in a well-ventilated area. We would need to be chemical engineers to fully understand and explain the implications of these warnings on our products, but a little knowledge may help to understand the basics. For example, the antibacterial activity of iodine-based teat disinfectant products relies on the release of ‘free’ iodine as the product evaporates and/or dries. It doesn’t take much further thinking to see that temperature and sunlight are not ideal companions for these products. It also helps us to understand why some of them also include a warning to keep the product sealed as well as possible and for as long as possible. While there is no suggestion that an hour in hot sunlight will render a product useless, there is an implication that deterioration of the product will be accelerated by continued storage in adverse conditions. Furthermore, this effect is likely to be cumulative, meaning that it is likely to be the sum of

all the storage conditions prior to you actually using the product which will determine if there has been any significant deleterious effect. For example, where, and for how long has the product been stored prior to arrival at your farm? Have they been out in the hot sun at a supplier/ retailer? And if so, for how long? Once they arrive at your farm, how long do you store them before you start using a new drum, and until you have actually finished using them? How can we reduce this risk of deterioration? It goes without saying that these products should be stored on the farm out of direct sunlight and in as cool a place as we can find that is still convenient. Temperatures in most regions commonly exceed 30°C in the summer, and many of our dairy areas will have numerous days over 35°C and some above 40°C. Leaving a bulk drum of teat disinfectant out in the sun on a farm in these conditions for a month or so is simply not ideal. Can you avoid a north-facing location? Is there a room or sheltered part of the dairy shed

accessible to the front-end loader? Could a skillion be erected over the storage site to provide shade and shelter? We have a number of clients who are concerned about storage prior to arrival at the farm. They insist on receiving a freshly delivered drum of teat disinfectant to minimise that risk, especially where the supplier is known to store the product outdoors. Clearly, the risk of deterioration will vary significantly from farm to farm, season to season and region to region. The risk will be lower for larger farms that get through a drum in a short period of time, however, smaller farms using a 1000 litre bulk drum over a period of a few months will logically be at a greater risk. Do you fall into the high risk category for one reason or another? Perhaps now, as the summer heat starts to arrive, it is a good time to review your teat disinfectant storage, because teat disinfection is probably the single most important mastitis control procedure during milking — it deserves the best quality product you can give it.

< Continued from page 30

Another therapy involves exposure of the tumour to ionising radiation such as strontium-90.

Prevention and control of cancer eye Routine inspection of all cows (aged more than three years old) allows early detection and treatment of cancer eye. It is important to always check both eyes as about 30 per cent of affected animals will have lesions on both eyes and sometimes multiple lesions on one eye. Identification of plaques, papillomas and keratomas is preferable as these early stages are much easier to treat and have a better prognosis.

All treated animals should be closely observed on a regular basis for recurrence. Early culling of affected animals is a viable option due to the risks of recurrence and subsequent rejection of the carcase at slaughter. Severely affected animals should be humanely destroyed as soon as possible to minimise discomfort and suffering. In the long-term, cancer eye can be effectively controlled by selection for pigmented eyelids. Eyelid pigment is present at birth, while eyeball pigment usually takes more than five years to fully develop. Both are highly heritable and appear to be genetically related, thus selection for one effectively selects for both.

Know the bug before you use the drug

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

32 // MACHINERY & PRODUCTS

Tractor is a versatile all-rounder THE NEWLY launched Landini Powerfarm 110 RPS tractor is the ultimate combination of loader tractor and general farm tractor for field work, according to its manufacturer Inlon. Inlon offers many features as part of its tractor loader package, including a level-lift PowerArm loader with euro-hitch for quick change of attachments, hydraulic soft-ride, third-function hydraulics and the popular 4-in-1 bucket all as standard. “Combined with the Powerfarm’s powershuttle transmission and its hi-vis cabin roof for loader visibility when raised, the loader package is complete and second to none,” Inlon business development manager Max Allan said. “In addition, the Powerfarm RPS transforms into a great farm tractor for field work. “Let’s start with the UK Perkins 4.4 litre engine, with its legendary performance and class leading 416 Nm of torque; this will give you the grunt you need for heavy PTO and drawbar work. Perkins is, of course, a well-known name you can trust for peace of mind. “The power-shuttle and hi-lo power-shift

transmission gives you 32/16-speeds, including creeper speeds, for the versatility to tackle a wide range of field work. “Whether baling or pulling a chisel plough, the hi-lo power-shift and huge range of gears gives you the flexibility to utilise the 416 Nm to the max.” According to Mr Allan, when working the soil and towing, the 416 Nm of torque and range of gears will get the work done and reach a 40 km/h top speed. “The front and rear wheel braking gives you control and safety for peace of mind,” he said. Creature comforts are not forgotten either. The spacious cabin gives you room to work comfortably, along with the air-seat with arm rests. An adjustable steering column will help you get the best position for the digital console, while simple things make a difference, like the rear windscreen wiper for visibility of the work happening out the back. For more information, visit: www.landini-tractors.com.au or phone 1800 772 407.

Inlon’s newly launched tractor is suitable for all kinds of work.

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

MACHINERY & PRODUCTS // 33

Thrilled with mower win LEWIS SEIFFERT, from Victoria’s Western

District, was the lucky recipient of a special edition GMD 310 disc mower valued at $17 000 after being announced as the winner of a KUHN Farm Machinery competition to celebrate 50 years of disc mower innovation. KUHN’s latest model is packed with special features, including a robust and high performing series 100 cutter bar, suspension spring for accurate ground adaptation, articulated cutting unit to follow ground contours closely and a mechanical safety breakaway that causes the mower to move slightly backward should an obstacle get in the way. Mr Seiffert said he was amazed to find out he’d won. “I couldn’t quite believe my luck when I heard my name had been drawn,” he said. “This is a fantastic mower, and I’m sure it will be worth its weight in gold around my property. “KUHN have always impressed me with the quality of their products, and this one is no exception.” KUHN’s national service manager Jason Vowles and marketing manager Sarah Govier joined Colin Gardner from Western Plains & Motors to deliver the mower to Mr Seiffert and were on hand to help with the set-up. For more information on KUHN’s range of disc mowers, visit www.kuhn.com.au

Lewis Seiffert stands next to his new disc mower.

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DAIRY NEWS AUSTRALIA NOVEMBER 2018

34 // MACHINERY & PRODUCTS

Bridging the gap between slasher and mulcher THE MAJOR range of Cyclone mowers is

BY MARK DANIEL

designed to do the work of a flail-mower, but the rotary layout is said to require up to 25 per

cent less power and so save fuel. Available in cutting widths from 2 m to 5.6m, machines carry from three to eight rotors, each

Save up to

Foliar applied ‘N’ can save YOU money!

47%

of your Urea

(1)

The ability to purchase standard granular urea and dissolve into a liquid in cold water very quickly, can provide a major eﬃciency gain of nitrogen utilisation which results in an approved bottom line from day one.

with four blades, with horsepower rating from 50 to 150 hp. The mowers are made from Strenx 700 MC high-strength steel throughout, making them strong and durable. They are designed specifically for clearing forest margins and for scrubland where ‘sensitive’ environmental work is needed. And they’re good for farm use, easily coping with scrub, saplings, gorse and brush, and ideal for clearing arable stubble such as maize and rape. The undersole discs are made from Hardox 450, a wear- and abrasion-resistant steel. These carry the four impact-resistant, shock absorbing, hardened spring steel blades; these have a cutting height range of 40 mm to 200 mm depending on the model, with the aid of a heavy-duty rear roller assembly. Machines can also be optioned with a side shift unit to allow the operator to adjust the mower 30 cm left or right. In New Zealand’s Bay of Plenty, Tom Grant, of Grant Farms, said the Cyclone mower ideally suited his operation’s agricultural and earthmoving operations. “We’ve done agricultural and earthmoving contracting for the last 37 years,” Tom said. “We’re managing an area of 400 ha in various states of pasture, from rough stuff to good stuff. We plan on making rough stuff into good stuff. “Before, we’d generally just do land clearance with a bulldozer — bulldoze it all into a pile and bury it.” Tom said land management techniques were changing to reduce the impact on surrounding environments. Bulldozing takes lots of time and resources, something farmers and contractors increasingly lack. “We’re doing land clearing mulching — it leaves the root system there and it’s eco-friendlier,” he said. “The Major Cyclone can knock it down and keep pastures in order. And it can chop pretty massive stuff. Prior to that we would get in a bulldozer with a root rake and just root rake it all.” The Major Cyclone mower range is now available from Case IH dealers.

The Tow and Fert is a unique machine that is ‘not just another sprayer’. It has the ability to dissolve urea in cold water and apply it combined with growth stimulants like gibberellic acid or capital fertiliser which results in 2 immediate savings; 1. Reduce your N input without impacting dry matter response 2. Reduce number of passes across the farm by combining fertiliser products To get it on with your own Tow and Fert, call us on 1300 630 279 and we’ll hook you up.

TOW AND FARM by metalform

1) “Urease

inhibitor reduces N losses and improves plant-bioavailability of urea applied in ﬁne particle and granular forms under ﬁeld conditions”, K. Dawar et al, 2011 http://www.sciencedirect.com/science/article/pii/S0167880911002866

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The Major range of mowers is designed to cope with arable stubble or clearing scrubland.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

MACHINERY & PRODUCTS // 35

Taking the drudgery out of moving fences IT’S NOT uncommon for farms to be a family

affair, but the Drumm family at Mullingar in County Westmeath, Ireland, have taken this to new heights with their own agritech invention. Fed up with the chore of moving electric fences — often in the rain and when they would have preferred to be at football training — brothers Charlie and James set out to develop an easier way. Parents Thomas and Laura encouraged them, and the result is Fresh Graze, a device that takes the drudgery out of strip-grazing and helps improve crop utilisation. It won two awards in the recent National Ploughing Championships Innovation Awards — the Agri-Tech Start-up Award and the Overall Start-up Prize. The system automates the movement of the ‘hot wire’ using a pair of robotic drive units at each end of a run, allowing grass to be allocated to a mob of animals on a continuous basis, at a rate that ensures the entire area is consumed before moving again. Three years have been spent on development,

and Thomas said it should be on sale within two years and their costs recouped in 18 to 24 months. In operation, the drive units run on a hightensile steel wire along opposite boundaries, able to work in ‘breaks’ of up to 300 m depending on undulations. The ‘hot wire’ is supported across the span by six-sided spider wheels, and the units are powered by 18V rechargeable batteries that last up to two days. An integral GPS unit shows where the device is operating. It saves time and can be programmed to calculate the best timing for a move, using integral software pre-programmed with stocking rates and a measurement of grass cover. The system can be used to prevent selective grazing and contamination by stock meandering over the crop they should be consuming. This leads to better overall utilisation, better implementation of management decisions and the ability to supply data on where, when and how to whoever needs it. Live data can be delivered to the operator’s

Fed up with the chore of moving electric fences, two Irish brothers came up with an easier way.

phone or tablet to show progress. Also, production data from the milking parlour can be compared to start and end covers to improve sward

utilisation, and this can be monitored to see the effect on milk production or liveweight gains. See: www.freshgraze.ie

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HEAVY DUTY MIXER WAGON For more information contact your local Lely dealer or call 1800 802 914 or visit www.lely-forage.com

DAIRY NEWS AUSTRALIA NOVEMBER 2018

36 // MACHINERY & PRODUCTS

Put these mixers to intensive use A NEW range of Kuhn Profile twin-auger mixers

are designed for intensive use. Capacities range from 18 cubic metres, ideal in tight spaces, to 34 cubic metres for larger scale operations. The Profile range has a compact design for greater volume, with the shape of the hopper allowing up to four cubic metres more capacity than similar machines of the same height now on sale. They embody Kuhn’s ‘long life solutions’ to minimise wear and tear from abrasion and acidity, with K-Nox mixing augers as standard. The whole auger is made of K-Nox (3CR12 stainless steel), from the thread to the central shaft, offering superior resistance to friction and the fatty acids contained in some fodders. A new, standard weighing system is installed on all models in the Profile 2CL range, using four load cells integrated into a cradle, located between the axle and the hopper, with another at the drawbar, to minimise fluctuations and interference. This is said to achieve greater

accuracy irrespective of whether you’re using a single axle, a bogie axle or even a bogie steering axle, stationary or in motion. The as-standard KDW 341 weighing system manages the feed, in ‘simple’ mode for weighing quantities loaded and distributed, or ‘programmable’ mode for detailed nutrition management. Both options allow precise readings to mix large volumes of feed accurately and effectively. For greater ease of use, you can manage weighing operations from the loading station using the KDR 300 display unit. On CL models, feed is distributed on the right and left by a cross conveyor. This outlet can be positioned to the front or rear of the machine. The integrated chassis is oversized to handle the torsion effects caused by the hopper even on rough terrain. And the design ensures the whole unit always has sufficient ground clearance.

The profile range of mixers of of compact design for greater volume.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

MACHINERY & PRODUCTS // 37

Robot keeps feed in line INSTALLING A GEA FR1 feed pusher from

Advanced Dairy Systems in Cobram has been an investment Finley dairy farmer Marcus Flanagan is happy he made. Running a busy and intensive 700-cow operation means time is precious, and Mr Flanagan is always looking at ways to streamline his operation and reduce labour. Before the purchase of the FR1 workers would manually drive the tractor up and down the feed pad pushing the feed back into line for the cows. “It was one of those jobs that took up at least an hour each and every day that just had to be done, now the feed pusher does it for us,” Mr Flanagan said. The pusher can be programmed to run up to 19 hours a day — it needs five hours to recharge. Transponders embedded in the cement every 2.5 m guide the machine as it makes its way up and down the pad and then steers it back to the charging port. Mr Flanagan is the first person in Australia to install this type of technology on-farm He was tossing up between two brands but chose the GEA FR1 because it spins independent of the feed, reducing the problem of the ration being dragged along and piling up at the end of the pad. “I think this is a real cost effective piece of technology,” he said. “I employ a few backpackers and anything I can automate to make things simpler is certainly attractive to me. I am more than happy with the way it is performing.”

The GEA FR1 runs up and down the feed pad pushing the mixed ration back into line for the cows, reducing the need for labour and simplifying management associated with the feeding of 700 cows.

Marcus Flanagan in the charging port of the GEA FR1 feed pusher, which can run for 19 hours before it needs recharging.

DAIRY NEWS AUSTRALIA NOVEMBER 2018

38 // MACHINERY & PRODUCTS

Case IH Farmall tractors are working around the clock for farmers feeding livestock in drought-affected areas.

Turning up the heat on reliable machinery BECAUSE YOUR COWS

ARE WORTH IT!!!

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2 Parkes Road, Forbes NSW 2871 | Tel: 02 6852 3211 www.forbesmachinery.com.au Bob McKeown 0428 451 163 | Ken Sly 0428 451 841 | Peter Nixon 0429 656 895

CHALLENGING WEATHER conditions are testing the mettle of farmers. But as is often the case, testing times also bring out the best in producers — and the machinery they rely on to get the job done. North-west NSW farmer Tony Wilson and his family run Belah Downs, between Pallamallawa and Warialda, where 1000 ha is devoted to running cattle and growing oats, and 400 ha for growing oats and barley for feed, generating between 2000 and 3000 bales a year and 600 to 800 tonnes of grain for the property’s silos. There hasn’t been much opportunity to replenish the property’s feed stocks this year, however, with the family doing everything possible to maintain a core herd of breeders. An inch of rain earlier in October prompted Tony, wife Katrina and son Tanner to sow some forage sorghum, the first outing their two Case IH tractors — a Magnum 340 and Magnum 310 CVT — have had in months. The 340 is fitted with a front-end loader for hay and paddock work, and is used to pull a boom spray, while the 310 CVT is dedicated to the cultivation and sowing side of the business. “We’ve had a series of Magnums since the late ‘90s and we’re still buying them, which says a lot about the tractor,” Tony said. “In the beginning, it was a price decision more than anything, but they’ve got a lot of features we like — they’re easy to use and everything is right where you need it. With the controls, for spraying particularly, with your throttle and gear change in the one lever, that’s a plus. “We’ve got cab suspension in them both too, which means operator fatigue is minimal — it makes a big difference.” East of the Wilsons’ property, up on the New England tablelands, Denis and Jenni Wright have also been busy feeding livestock.

They run a prime lamb, superfine wool and beef operation on two properties between Armidale and Glen Innes. In the 12 months to the start of October, they’d had about half their normal rainfall, meaning the feeding of about 3000 sheep and 300 cows — down from 400 in a regular season — three times a week. It’s a schedule that put their two Farmall JX110s front and centre, with the tractors used for all the general-purpose work around the two properties including feeding, fencing, unloading and moving feed, and a raft of other maintenance tasks. The tractors work with a blade, bucket, hay spike and fork depending on the task. “We wanted something simple and wanted it with a cab — a tractor as easy as possible while being able to handle a range of jobs. The Farmall JX110 works for us — it’s got the (110 hp) necessary power, it’s comfortable and efficient,” Denis said. The Wrights have always fed their stock through winter, so Denis said regular contact with a wholesale hay broker had helped maintain their supply of feed during the drought, with cereal hay for the cattle coming from Victoria, and grain, faba beans and lucerne sourced through local contacts. When it comes to feed, the Wrights are also considering the possibility of buying their own seeder to give them the ability to sow their own pasture and fodder crops “in a timely manner”, rather than being dependent on contractors. Pulling the seeder would be another use for the ever-versatile Farmalls. “I persevered with second-hand tractors for 50 years,” Denis said. “The last new tractor I bought was in the ‘60s and I traded that on the second Farmall JX110, after the first performed so well. They suit our needs down to the ground.”

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2019

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