Dairy News Australia - March 2019

Dairy processors face farmers PAGE 8 LINGERING BANK ISSUES PAGE 12

PASTURE FEATURE PAGE 27

MARCH, 2019 ISSUE 101

// www.dairynewsaustralia.com.au

OUT OF THE ASHES Fighting back after a devastating blaze PAGE 4

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NEWS // 3

Fonterra lifts price for one factory A DECISION by dairy processor Fonterra

Dairy processors face farmers at Canberra. PG.08

to offer a premium payment to suppliers of its Stanhope factory has opened up a debate about differential pricing.

To try to lift milk supply, Fonterra is offering a 70¢/kg extra payment to northern Victorian suppliers who sign up to a deal requiring a commitment on volume and quality.

Northern Victoria and the southern Riverina have been hard hit by rising feed and water prices, cutting milk supply by about 23 per cent in December compared to the same time the previous year, according to the latest Dairy Australia figures.

Fonterra acknowledged it was not getting enough milk for its recently upgraded Stanhope factory.

Fonterra Australia managing director Rene Dedoncker said the company consulted a group of farmers in the region to ask if the company should take on new contracts, and offer a premium to compensate for high input costs, or reject the contracts.

The answer was to offer a price incentive.

Mr Dedoncker said uniform pricing was the traditional way of doing things in a market

that was reasonably stable.

“But there’s a whole new normal now,” he said.

“We don’t have enough milk. If we want to survive we can’t do things the way we have always done them.”

Mr Dedoncker opened up the possibilities of different pricing for different regions or factories.

Asked if he was worried about explaining it to all suppliers, he said he was trying to be open.

“It’s probably not for everyone. The farmers who can’t be part of that are not pleased and we will be talking to them.

“I don’t think we will see milk return at the rate that it left, so I don’t think it will be a short-term arrangement.”

Mr Dedoncker admitted the company had been struggling to get the throughput it required at Stanhope.

And the company has been losing milk to processors to northern states.

Saputo chief executive officer Lino Saputo Jr said he was opposed to differential pricing but the company could offer some sort

of support to its suppliers in a different way.

“We need to be careful about special deals we make,” Mr Saputo said.

“We have one class of farmers so we will not be doing any special deals in any way, shape or form.”

Fonterra supplier, Bridget Goulding from Katunga said the decision was too late for many farmers to benefit from the offer.

Mrs Goulding said with seasonal conditions the way they were and rising water and feed prices, it was impossible for anyone to change their farming operation.

“From the very start of the season farmers have had to get rid of cows and use different water and feed options because of the high prices and how the season has been,” she said.

“If we were to get that $6.75 at the start of the season, we could have all made changes to meet that (commitment on volume and quality).”

UDV president Paul Mumford noted Fonterra was trying to support its suppliers under seasonal stress, but he urged caution with differential pricing systems.

Sungold field days. PG.16

ACM PRICE LIFT

Bega pasture tour. PG.28

NEWS ����������������������������������������������������4–24 OPINION ������������������������������������������������ 6–7 PASTURE IMPROVEMENTS � 25–32 MARKETS ������������������������������������������������ 22 ANIMAL HEALTH ������������������������� 33–34 MACHINERY & PRODUCTS �������������������������������������35–38

Victorian based processor Australian Consolidated Milk has announced a guaranteed price minimum of an average of $6.50/kg of milk solids for the 2019–20 season, including an offseason price of $7/kg MS. The company announced it was shifting to a nine and three pricing system, introducing a minimum guaranteed price of $6/kg MS for September to November and $7/kg MS for the remaining nine months.

ACM has currently forecast an opening price of $6.70/kg MS for the 2019–20 season.

ACM commercial general manager Peter Jones said the company was conscious of “leading the market” and announcing its pricing early, to ensure suppliers could make decisions early.

“We really wanted to acknowledge how tough it is out there at the moment,” Mr Jones said.

“We can’t control when it rains, we can’t control water price, we can’t control grain price, we can’t control international markets, but we can control our price.

“We could have sat back and waited for our competitors to announce, but we thought let’s get on the front foot and our suppliers can decide.”

Mr Jones said the decision to implement the nine and three model meant ACM would offer a lower price during the peak season when the milk supply had “more exposure” and the market was more volatile.

“We have mechanisms in place to protect that price … We believe we can achieve a strong price,” he said.

The milk price announcement also includes a 6¢/kg MS irrigation water support package for the 2018–19 financial year.

Suppliers will receive a retrospective

payment to be made by mid-March, with further support payments to be included in milk invoices until the end of the financial year.

Organic milk will also shift to the nine and three payment system, with suppliers who have signed a fixed price agreement last year receiving a 16¢/kg MS step-up added to their monthly price for the next two years.

The announcement follows a series of other processors, with Saputo, Fonterra and Bega all announcing stepups this year.

Saputo announced a step-up of 14¢/kg MS for protein and 7¢/kg MS for butter fat, bringing its average farm gate milk price to $6.05/kg MS. Fonterra also currently has an average farm gate milk price of $6.05/kg MS following a 7¢/kg MS stepup, while Bega announced a step-up of 14¢/kg MS.

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DAIRY NEWS AUSTRALIA MARCH 2019

4 // NEWS

Hope springs from the ashes RICK BAYNE

DAIRY FARMING has always been a roller-

coaster ride for Linda and Barry Morgan but having their farm destroyed by the 2018 St Patrick’s Day bushfires was almost the tipping point.

Barry, Linda and their children heroically saved a lot of their dairy and beef cattle, but many were killed. Their paddocks, their fences, their sheds and their machinery were wiped out; their spirit and emotional wellbeing were left in tatters.

Their house survived and Linda says if it had gone up in smoke, they wouldn’t have stayed around to rebuild.

“If it had burnt, we would have just walked away,” she said.

Instead, they have transformed their former beef farm at Elingamite North into a dairy and are just getting back on their feet.

Adding to the distress, at the time of the blaze they were engulfed in an ongoing dispute with the new owners of their previous dairy share farm. They are now no longer involved with that property.

March 17 was horribly hot and windy, but when Linda went to bed there was no sign of fire.

Barry was at a friend’s place but shortly after 10 pm their daughter Kate rang with reports of a fire.

“I looked out the window which was away from the fire and it was bright red from the glow. There was no power. I couldn’t see anything except red,” Linda said.

Within minutes Barry arrived home, saying they would be lucky to have five minutes to escape.

Linda was prepared with tubs of documents, photos, stock records and bills ready to go.

“I put the tubs in the Mini and had it running but was so disorientated I went inside and couldn’t find the keys. So, I took everything out of the Mini and put it in the ute then realised the Mini was running.

“Barry grabbed his tennis rackets and put them in the ute and by then the fire was already at the chook shed.

“We couldn’t see anything and didn’t know which way the fire was coming. There were twigs

and embers and smoke, it was just a bright red glow and so smoky.”

They turned left but quickly realised they were driving into the path of the fire.

“Barry was in the ute in front and did a U-turn so I did the same. We went over all types of branches but we made it back to Cobden.”

With family help, they returned to try to move their cows to safe ground, both the dairy cattle on the share farm and the beef on their own property.

“When we got to the corner, everything was on fire,” Linda said.

“We got to the cows on the share-farm property but we couldn’t get to our farm. The wind was so ferocious and the fire was going so fast.

“We saw one house on fire and there was fire on both sides of the road. We had to drive into one paddock which was on fire to try to get the cows out.

“We were screaming, trying to get them under the tunnel or near the dam.”

They did what they could with the cows at the share farm, losing only three in the herd at that time, and then turned their attention to three tractors.

While moving them to safer ground, their son’s friend’s car ignited.

The fire jumped over the dairy and the house and landed in the calf paddock.

The wind made it turn hard right and it took out another house, before being pushed left with another wind change.

The fire split and also engulfed their 32 ha outpaddock at the Cobrico, claiming more cows.

Their sons rode motorbikes to the farm, using effluent water to douse spot fires near the house.

When they got to their farm, everything was gone except the house.

“All the hay sheds, water pipes, troughs, fences, pastures, hay, silage, all the machinery, our seed drill, our wrapper, rake, all the tools,” Linda said.

“We had five sheds and lost them all. We lost maybe 50 to 70 beef cows, 30 to 40 calves, eight bulls; we had 400 milkers and we now milk 221.”

Getting back to milking was difficult and more animals had to be euthanised by the

Linda and Barry Morgan: “Every cent we got from the milk cheque went into the farm.”

Department of Agriculture as they struggled to overcome injuries.

“We took about four days to milk and when we did the milk was red and the cell count was like a million,” Linda said. Their processor paid for the milk even though it was tipped out.”

They worked alongside a vet to milk to determine which cows could be milked.

As the smoke cleared, the community rallied, with Linda describing the support as amazing.

A counsellor visited, the shire, their insurance company, bank, Blaze Aid, processors and locals all pitched in, even if the Morgans didn’t want to see people or do anything as they suffered through the aftermath of the trauma.

“We fell apart and our whole business fell apart but the bank manager said you can’t leave this burnt with nothing on it, it’s not going to

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be worth anything.”

Barry didn’t want to milk and neither of them wanted to turn their home beef farm back into a dairy.

With the previous share farming no longer an option, they had to come up with another plan.

From May 5, all 70 empty cows were sold, 200 cows were split between three host farms and about 100 were put on an out-paddock, although not long after they had to be moved.

As the 100 were calving those three farms were full, a possible solution emerged during discussions with Blaze Aid when it became apparent a neighbouring farm could be leased.

The 200 hosted cows went back into the herd in June when the leased property was up and running. Due to the difficult conditions, there were ongoing health problems for some of their

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DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 5 cows and their condition had deteriorated.

By mid-July the farm was full and the Morgans tried to sell 80 spare cows without success.

Their beef farm had once been a dairy, but hadn’t been used that way for a decade. Linda and Barry wanted to keep it that way, but they had no other options so they called an old friend, Darren Matthews, who had built the rotary dairy on the share farm.

Darren had retired but Linda asked if he was up for a challenge.

“He came out that night with a torch and said ‘Okay, I’m going to do one more dairy.’ ” They needed a new vat, a feed system and cups but within a few weeks and $80 000 later they had it running and were able to secure a dairy licence.

They were milking about 80 on the home farm, 200 on the leased land but that came to an end when their staff member resigned.

“We brought all the cows here; we waited until the yard was full and we took the rest to the abattoir. We hated doing that; they were beautiful cows but no-one wanted them and we couldn’t fit them.”

The cows were previously milked in a rotary dairy, adapting to their new environment in an 18-swingover wasn’t easy.

“We have to have two people in the yard to encourage them to walk in,” Linda said.

“Once the first cow goes in there’s no dramas but we obviously don’t have a lot of front cows.

“We can only fit in 12 to 14 at a time and they’re not getting any better at it.”

The 222 ha farm had to be direct seeded in April.

“Every paddock was burnt; there was nothing,” Linda said.

“We got another loan from the bank to do permanent pasture. We left it as long as possible

to July before putting the cows back on the paddocks.”

In the meantime, they set up a temporary feed pad area; a big triangle of dirt with rectangle feeders.

“Every cent we got from the milk cheque went into the farm, particularly buying feed and refencing with the help of Blaze Aid,” Linda said.

They got the dairy licence in July and have built-up solid production.

Their beef cows are now on the leased farm, the out-paddock is used for raising heifers and cut for hay and silage.

They lost a lot of calves, partly as a result of the conditions but also due to the difficult times they experienced mentally.

Things are looking up. The vets are happy with the remaining herd and the Morgans changed processors and continue to bring the farm back to life.

They are on a payment plan to get a new silo, they have put in a new bore, brought a big second-hand vat and had sheds replaced.

“The people did the work for next to nothing and Blaze Aid saved us; not just the fencing but in having a Saturday night dinner where they’d cook for the farmers. They were amazing,” Linda said.

One of the volunteers who came to help, a 67-year-old retired dairy farmer, has now stayed on as a part-time employee.

They have received insurance support to build a calf shed and machinery shed and are working with the insurance company for an overall payout.

As the first anniversary approaches, the Morgans are turning the corner.

Without realising the date, Linda booked tickets to see Muriel’s Wedding in Melbourne on March 17.

“I’ve obviously moved on,” she said.

Their milking herd has been cut to 221 but solid production has returned on the back of a good season and new pastures.

A makeshift feed pad area was created on short notice to keep cows off the recovering paddocks.

The St Patrick’s Day fire destroyed the Morgan’s farm but left their house standing.

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DAIRY NEWS AUSTRALIA MARCH 2019

6 // OPINION

EDITORIAL

Ever wondered why any trip to the supermarket, just to buy milk, seems like a long trek?

Protesters’ message unclear DELEGATES TO the Australian

Dairy conference dinner in February had some entertainment on their arrival at the venue.

A group of six members of the Animal Specism Action Collective had set up a protest, which seemed to be saying something about milking

and bobby calves, although the message wasn’t that clear.

A couple of curious dairy farmers who tried to engage the protesters in dialogue didn’t get very far, as they soon discovered that the protesters didn’t want farm conditions improved, they wanted the whole

industry shut down.

In fact, they wanted all industries involving animals shut down, including racing.

Not much common ground for discussion there.

Advertising James MacGibbon 0409 103 745 james.macgibbon@dairynewsaustralia.com.au Editor Geoff Adams (03) 5820 3229 editor@dairynewsaustralia.com.au 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.

Regional editor news@dairynewsaustralia.com.au Senior journalist Alana Christensen

(03) 5820 3237

Publisher

The journey is a little longer because milk is always at the back of the store because supermarket shelf designers know the real value of milk and the importance most shoppers place on it.

Supermarket floors and shelves are cleverly designed to maximise impulse buying and encourage shoppers to buy more than just what they went to the shop for.

Milk is a popular staple, a traffic generator for shops and, apparently one of the few items, like bread, that consumers can quote a price for.

So when Coles decided, more than five years ago, to introduce $1/litre milk, the news went over in a big way.

Coles really had something to hang its hat on, and a real advantage over its rival Woolworths and emerging competitor Aldi.

However, over the years, Woolworths followed suit and Aldi now has private label milk at about $1/litre.

Coles even negotiated a long-term deal with the co-operative, Murray Goulburn, to supply the milk. Practically a farmer endorsement.

Last month in Canberra, farmers were calling this arrangement out for what it was: a lousy deal.

At the Australian Dairy Conference, the new owner of Murray Goulburn, Lino Saputo Jr, used strong language to dismiss the whole notion of $1/litre milk, and his exasperation was matched by many farmers in the room.

It’s true that small increases in the price won’t have much impact at the farm gate, in a complex industry which sends most milk into commodities, rather than liquid milk.

But wouldn’t it be nice if our farmers could earn a few cents more for their hard-earned product, than bottled water and soft drink?

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Dairy News Australia welcomes contributions from stakeholders in the dairy industry, and particularly from organisations wishing to advance the industry.

Contributions and photos can be sent to: editor@dairynewsaustralia.com.au Letters to the editor on topical issues are also welcome.

Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication.

DAIRY NEWS AUSTRALIA MARCH 2019

OPINION // 7

Why more expensive milk wont help farmers much RICHARD HOLDEN (PROFESSOR OF ECONOMICS, UNSW)

THE SUPERMARKET giant Woolworths this week broke ranks and announced it was going to stop selling A$1 per litre milk. It will now charge A$1.10, or A$2.20 for two litres.

Chief executive Brad Banducci made it clear that there was more to the decision than straightforward economics: We’ve heard the outlook will continue to be extremely tough for dairy farmers … This is affecting milk production and farm viability, which is devastating for farmers and the regional communities in which they live.

The Labor Party has been threatening to impose a minimum farm-gate price.

Will what Woolworths is doing help farmers?

Only a bit.

The so-called “milk wars” began on Australia Day 2011 when Coles announced it was cutting milk prices to A$1 a litre.

Woolworths and Aldi followed suit.

The milk market does not just consist of dairy farmers, supermarkets and customers.

There are also the processors — companies such as the ASX-listed Murray Goulburn, Parmalat, Lion and Fonterra — that stand between farmers and supermarkets. Then there is the international market for dairy products like butter, cheese and milk powder.

The biggest determinant of farm gate prices in Australia is not what the major supermarkets do, but world dairy prices.

The Department of Agriculture says 37 per cent of Australian milk production is exported.

Add to that the roughly 35 per cent that goes into locally consumed butter, cheese and milk powder that is subject to competition from imports. You can quickly see the prices of nearly three-quarters of the milk produced in Australia are set globally.

Dairy Australia has a higher estimate. Because even fresh milk is subject to foreign competition, it believes 90 per cent of the annual movement in farm-gate prices comes from changes in international prices.

Those changes are beyond the effective control of Australian farmers and regulators.

Many of them are the result of changes in the exchange rate.

International prices are generally set in US dollars. That means a rising Australian dollar can cut the return to Australian farmers, while a falling Australian dollar can enhance it.

Farmers have been angry at Coles and Woolworths for squeezing prices. Protest rally in Melbourne, 2016. Mal Fairclough/AAP It is tempting to think an increase in retail prices, like the Woolworths 10 cents, would help farmers. But it normally wouldn’t, much.

Someone between the cow and the customer would get the 10 cents, but not necessarily the farmer.

When the Australian Competition and Consumer Commission examined the dairy industry last year it did not obtain any evidence that supermarket pricing, including $1 per litre milk, has a direct impact on farm-gate prices Further, farmers’ lack of bargaining power means they are unlikely to benefit from an

increase in the retail (or wholesale) prices of private label milk or other dairy products Even if processors were to receive higher wholesale prices from sales to supermarkets, this does not mean the processors will pay farmers any more than they have to.

This time it will be different. Woolworths says “every cent of the increase will end up with Australian dairy farmers”. The processors have guaranteed it.

Normally there would be no guarantee that an increase in the wholesale price would flow through to farmers. The processors could pocket it, and the inefficient ones could use it to stay in business, to the long-term detriment of customers.

Banducci said Woolworths was “acutely aware of the budgetary pressures facing many of our customers and have not taken this decision lightly”.

He is right to recognise it will hurt customers.

It won’t, mind you, hurt customers who buy branded milk like a2 — whose marketing success under chief executive Jayne Hrdlicka has pushed the value of the company to A$10 billion, making it bigger than Lendlease, Medibank Private, the AMP and Coca-Cola Amatil. Not bad for a company that didn’t exist at the turn of the century.

Instead it will hurt customers who can afford it the least. For a typical family of four with average milk consumption, the extra 10 cents a litre works out at about A$40 a year.

Dairy farming is difficult, and much of Australia is less than ideally suited to it. Farmers have to contend with volatile prices, drought and isolation.

They are the least powerful players in the “value chain” that runs from cows to customers via importers, processors and supermarkets.

Neither government intervention nor higher retail prices can do much to help them.

■ This article was first published on the Conversation: theconversation.com/vitalsigns-why-more-expensive-milk-wont-helpfarmers-much-112145

Will farmers get a better share of higher milk prices?

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8 // NEWS

Processor panel fronts up to farmers in Canberra

The processors…. From left, Rene Dedoncker from Fonterra, Paul van Heerwaarden from Bega Cheese, Greg McNamara from Norco and Lino Saputo Jnr from Saputo.

The Australian Dairy Conference brought together some of Australia’s biggest dairy processors.

They were called on to answer the question: What keeps you awake at night?

The conversation was chaired by Michael Harvey from Rabobank. Here is an edited account of their comments.

FONTERRA AUSTRALIA MANAGING DIRECTOR, RENE DEDONCKER:

energy prices, water, China and “tradeDrought, issues.

BEGA CHIEF EXECUTIVE OFFICER PAUL VAN HEERWAARDEN:

NORCO CO-OPERATIVE CHAIRMAN, GREG MCNAMARA:

SAPUTO INC MANAGING DIRECTOR, LINO SAPUTO JNR:

I was born on a dairy farm, Mum and Dad The thing that bothers me, is that we have “ “ were sharefarmers. You could say it was in my created a really good industry. I started in

When I am asked by investors and analysts I “ answer: food safety and health and safety.

What keeps me awake is ‘how’. What’s my personal accountability in how I go about effecting positive change.

There are three levels. The personal level. I have a brilliant family with my wife and kids behind me. With my Fonterra hat on, it’s pretty clear to me, our ‘how’ has had to adapt over the last few years. I’m not always proud of every moment. I am proud of the company, but not always proud of some of the moments.

So we have gone on a journey of change.

Its’ the way we stay composed in the heat of the moment, so when the worst happens, we don’t fall into defaults.

When you sit here and you are in control you have a whole range of skills and repertoires available to you, sitting with a great leadership team it’s pretty impressive. But when the pressure rises and you are under the pump, your repertoire shrinks.

If you don’t recognise that and in everyone else, you make poor decisions.

We have recognised that. We are not great yet, but we are getting better at it.

From a personal perspective I am pushing hard to make a difference in how we show up.

On an industry level, when we go home back to our day job, we can fall into trap of falling in a vortex. The absence of solidarity as an industry does keep me awake.

We are quick to say things don’t work.

A small minority, ask why someone else isn’t fixing their problems.

I have heard about the national dairy plan and a bit of whinge from some folks that we have been here before.

How do we change that story?

What are the conditions under which we will make it work?

It will hit a hurdle. Our job is to give it oxygen, not to suffocate it.

If the naysayers get up and we are silent as a majority, it won’t work.

We have to do something about that.

I am willing to put it on notice that Fonterra wants to play a role in that.

blood.

I am very passionate about the industry and optimistic about the future.

We have clearly a few challenges.

When I talk to people socially and they ask what I do, I say I work in the dairy industry and I am often met with a couple of responses, like wanting to talk about something else, or someone might talk about something they saw in the media.

If you look at the media in the last five years and there’s been an article on dairy there’s a good chance it was negative.

We have had ASIC inquiries, ACCC inquiries, Senate inquiries, senior executives of dairy companies in court, class actions, federal and opposition ministers saying things like minimum price systems might be the go, and we know what happened in the wool industry with that system.

There are a lot of positive things happening in the industry and as Rene said, there are a lot of opportunities.

When I think about the industries I have worked in that have been successful, there is one common element, it is growth.

In the last 20 years we have not had growth, we have been in decline or stagnating.

In the industries in a growth mode, life is a whole lot easier. The size of the pie is increasing, you can work together, value to create, creating jobs and creating futures. We do not have that in dairy to the extent that we need to.

So, the reality is it’s complicated and there are some hard decisions to make.

Let’s look at an example. If we look at our investment at Koroit last year. We have spent about $250 million on a factory that can process a lot of milk, let’s say, about 5 or 6 hundred million litres. The capital investment in processing is about 40 to 50 cents/litre.

If you think about a 300 or 400-cow dairy producing a couple of million litres of milk a year it cost about $3 million or $4 million to set it up. That’s about $1.50 to $2 litre., on farm investment.

So, if you are looking across the whole supply chain and saying where do we need to make our investments work, that’s a lot of money on farm to grow supply, and that’s not working.

1979 as a sharefarmer, and we are in this pivotal moment at the moment, where the industry has lost its way. There are lots of good things going on in the industry, but we have just lost our way about how we focus on the issues that matter.

Barnaby Joyce asked me a few years ago to chair the organic sector, and I am not an organic farmer. He wanted to bring the organic sector into the mainstream agriculture and help them understand they have an opportunity to do something more, rather than just a small, niche sector and fragmented.

I spent two years of my life trying to do that, and it was the biggest challenge I have ever had. And they have come so far, thinking about not just the price, but about the profitability and the investment that goes on behind it.

As a chair of a co-operative, my challenge is to actually find those opportunities for our people to grow. I am a great believer that money will find its best value.

I think that if dairy farming is doing quite well, people will invest in it.

The trouble at the moment is that people are disillusioned. Part of my thought process is that I fundamentally believe that dairy has got its governance structure mixed up.

Governance is around setting up the framework for an industry to work. How do we talk to our issues as an industry and present ourselves in an appropriate way to our federal and state parliamentarians?

The reality is that the industry did that fairly well, pre deregulation. We got our issues sorted out and we delivered opportunity for government to create policy to take us forward.

And we just lost our way on that.

We need to back ADF (Australian Dairy Farmers). My view is that we need to back it.

We’ve got a drought, we’ve got a feed crisis, but the industry will get through it.

We need to fix the Murray-Darling Basin Plan, we need to have a drought plan. How do we go about all those things? We need to go with a united voice.

But if we think about what is going on in the Australian dairy industry it is economics at the farm level. And the issue is milk supply. Succession at the farm level.

How do we come up with responsible and practical solutions? Without a strong dairy farming community, we don’t have an industry, all we have is brick and mortar and stainless steel.

It’s not regulations that will solve our problems.

Regulations will only make things more challenging to get product to consumers. So, we need to be creative, we need to be innovative, we need to work together.

I appreciate Rene’s comments about working together. Leaders have to lead. It’s fundamentally as simple as that.

So, when you look at the world market conditions, it has a lot to do with supply and demand.

I think around the world, those that have the ear of the dairy farmers have to educate the dairy farmers that growth is good. But it is only good if it is tempered with growth in consumption. Otherwise we end up with an overhang of inventory dairy stocks then economics will be depressed, and that’s what we have seen over the course of the last couple of years.

And I think it is important to talk about growth in the dairy industry, but value growth.

Not growth just for the sake of growing and trying to mitigate some of our costs.

I think it’s a question of growing in relation to demand and growing value-added products.

I’ve had discussions with Rick Smith from Dairy Farmers of America. If we are going to build a dryer that’s doing skim milk powder and encourage your farmers to fill your plant, I don’t think we are doing a service to the industry.

I am not against construction or innovation, but somewhere along the line, if you are going to build a new plant that is more automated and sophisticated, then perhaps we should retire some old plant. And if sometimes we don’t have the capacity internally, then perhaps out-sourcing to one of our colleagues in the industry might be the right solution.

DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 9

Stage set for milk price recovery: US dairy expert THE SLOWDOWN in global milk supply growth has “set the stage” for a recovery in milk prices for dairy producers around the globe, according to a visiting North American dairy expert.

Out from Chicago as a keynote speaker at the recent Australian Dairy Conference in Canberra, Rabobank’s global dairy strategist Mary Ledman said this supply deficit was likely to be a feature of global dairy markets into the more medium-term, as consumption growth (particularly in developing countries) is pegged to rise at a fast rate that will challenge supply growth to keep pace.

“Our modelling of dairy supply and demand out to 2023 suggests there could be a global trade deficit of 4.4 million tonnes (milk equivalent) in five years’ time,” Ms Ledman said.

“However, that said, if the world is demanding 101.2 million tonnes of milk equivalent, and is only supplying 96.8 million tonnes of milk equivalent, I have no doubt dairy farmers will produce it.”

But these fundamentals bode well for the global market outlook, she said, “with the milk prices of 2015 to 2018 likely to become the ‘new norm’”. That said, prices in 2017–18 had been tempered by intervention stocks in the EU, “and we have already seen the impact of that ‘big bang’”.

“But we are now operating in an unencumbered market, where there are not a lot of government regulations to either support, or retard, milk supply growth,” she said. “And as such, there is potential upside to prices given global stocks are so low.”

markets in China, South-East Asia and Africa”.

“China is so pivotal to the world market these days,” she said, “but what a lot of people don’t realise is that China is the second largest producer of Whole Milk Powder in the world, after New Zealand, and yet they still import 500 000 metric tonnes.”

Implications for Australia Rabobank’s Australian senior dairy analyst Michael Harvey said the recovery in global prices

should flow into better local farmgate prices.

Also aided by the lower Australian dollar.

That said, the local dairy sector faces a number of headwinds, Mr Harvey said.

“The biggest challenge facing the industry is the decline in its milk production with production at two-decade lows. And with a slow recovery in Australian milk production forecast, we are not likely to have more milk to export.”

Mr Harvey said this supply shortage comes at a time when China, the largest export market,

continues to have strong growth demand prospects, as do other key importers such as Indonesia.

Ms Ledman heads up Rabobank’s team of nine dairy analysts based around the world. Prior to joining Rabobank, Ms Ledman held roles at the USDA, Kraft Foods and Stella and more recently, as the director of her own economic consulting firm servicing the dairy industry.

Shrinking global supply growth Ms Ledman, who has been analysing the dairy market for more than three decades, said there had recently been a “change in the big actors on the global dairy stage” — with Europe now accounting for 30 per cent of global production, the United States 20 per cent and Australia and New Zealand (combined) five per cent.

“As such, what happens in Europe, and the magnitude of any change in European production, has a big impact on global trade,” she said.

“For example, if EU production is up by one per cent, that is the basically the same as production rising by five to six per cent in Australia and New Zealand.”

In the US, Ms Ledman said, “you would be hard pressed to find a year where production hasn’t increased”. However, there are signs the US dairy herd is trending lower for the first time in five years, she said.

“Milk production growth is expected to be less than one per cent in the first half of this year, before returning to a growth rate of around 1.5 per cent,” she said. “But this rate of growth will remain dependent on the recovery in milk prices.”

Ms Ledman said US consumption of butter, yoghurt and cheese was on the rise, reflecting the changing taste and preferences of consumers.

“In 1975, per capita fluid milk consumption in the US was around 114 litres of milk a year,” she said, “and that is now down to around 68 litres of milk. But at the same time, cheese consumption has risen to over 18 kg per person, more than double the 7.5 kg consumed in the 1970s.”

And this has seen dairy consumption increase, she said, as the milk equivalent in cheese is double that of milk.

Elsewhere in the world, Ms Ledman said, “there was a re-shifting of the deck chairs occurring, with growth set to come from developing

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DAIRY NEWS AUSTRALIA MARCH 2019

10 // NEWS

National dairy plan unites industry voice STRONG SENTIMENT emerged from February’s Australian Dairy Conference (ADC) with collective agreement for a unified voice to drive change for the national dairy landscape.

ADC president and Tasmanian dairy farmer Ben Geard said there was an overwhelming sentiment and call for a more unified approach from all industry players at ADC 2019 in

communicating the plight of our national dairy industry.

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announcement of Woolworths $1.10 milk and discussions with Federal Government to find better policy solutions moving forward,” Mr Beard said.

“There was an immense show of unity last week at ADC 2019 from processors and industry bodies and we are optimistic that we are on the cusp of significant change for the industry,” Mr Geard said.

“As an industry it is important that we capitalise on this momentum in order to drive significant change and deliver better outcomes for everyone involved.”

More than 400 delegates represented by dairy farmers, processors, industry bodies and service industry representatives echoed suggestions by industry leaders for the need to be more vocal and influential in addressing the need for structural change on the national dairy platform.

Mr Geard said the time to act is now.

“We have people exiting the industry due to the considerable pressures they are facing and others battling to stay above the line. Australian dairy farmers need to have confidence that the industry they are operating in is moving in the right direction under a united banner,” he said.

“At (the) conference, we had chiefs from Fonterra, Norco, Bega and Saputo publicly acknowledging the need for significant change and a willingness to work together to drive this change across the board.

“There has never been a more monumental time to stick our hand up as an industry and have ourselves heard in what could ultimately be a game-changer for the industry.”

Mr Geard said a positive step forward was the development of the Australia Dairy Plan (announced December 2018), a collective vision of the Australian Dairy Industry Council, Australian Dairy Farmers, Australian Dairy Products Federation, Dairy Australia and the Gardiner Foundation, to formulate and define priorities for the industry for the next five years.

“Consultation for the Australia Dairy Plan is expected to roll out in early 2019 and we are hopeful that this will be the key piece of the puzzle required to set the national dairy framework and tackle issues that truly matter to the industry,” Mr Geard said.

“The concept of a national dairy approach is to be applauded but ultimately will be judged on its ability to enact actual change.

“ADC looks forward to following progress of the Australia Dairy Plan and, along with our members, are keen to contribute to its development.”

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12 // NEWS

Farmers bank on debt recommendations JEANETTE SEVERS

ACCORDING TO Australian Bureau of Agri-

cultural and Resource Economics and Sciences (ABARES) figures, in the 2016–17 financial year the average dairy farm owed $937 000 to banking institutions.

Debt has been a key source of capital for Australian farm business, with 96 per cent of $69.5 billion of national rural debt provided by banks, according to a recent report from Deloitte.

Borrowing funded additional land purchases and new on-farm investment, particularly purchasing machinery and vehicles.

In the dairy industry, debt consolidation and borrowing to cover operating expenses was 19 per cent and 26 per cent respectively For Donna Edge and Danny O’Shannassy, of Wyena Holsteins, Carpendeit in south-West Victoria, their level of debt, particularly consolidating loans to cover operating expenses, has seen them make the decision to exit the dairy industry.

While rural financial counsellors have deemed them a viable business, Ms Edge said the banking industry had been less than supportive.

One of the recommendations of the Banking

Royal Commission was that banks needed to ensure farm debts were managed by experienced agricultural bankers, that farm debt mediation is offered and recognise that external factors, including climate, weather and commodity prices had real impacts on farm viability at any given time.

Wyena Holsteins has reduced milking numbers from 150 to 120 cows, in a bid to reduce input costs against a poor milk price return.

“Our average production was 9500 litres/cow.

We’ve dropped back 1000–1500 litres/cow in the past couple of years because it doesn’t justify buying the extra quality feed on the milk price we’re paid,” Ms Edge said.

They were supplying milk to UDP, until it folded — which meant the farm was not paid for the spring milk two years ago.

Needing a cash flow, the couple went to the bank; after six months, the bank came back with an offer to combine the interest only and principal-and-interest loans into one and extend the debt amount, advancing them an additional lump sum — all packaged as a principal and interest loan. They also have an overdraft facility.

“I’ve paid nearly all that extra loan in the past two years and it’s put me under extreme personal pressure, as well as financial pressure,” Ms Edge

Graham Forbes, Dairy Connect President: “It’s important that business bankers have a good understanding of how farms operate; and that farmers understand how banks operate. There also needs to be a cultural change within banks – stop the focus on driving profits. These large institutions need to be focussed on their clients.”

said. Recently, she applied for a reassessment with the local bank and was unsuccessful.

“The rural financial counsellor assessed our business as viable and supported my loan application to the bank,” Ms Edge said.

“Because of bad lending practices in the past, the banks have now changed their practices. They have offered us three months relief on payments, but they haven’t offered farm debt mediation.

“And the person we’re dealing with in the bank is not an agribusiness professional, so doesn’t understand the issues around milk price, dry weather and other issues.

“Dairy farms pour money into rural communities.”

Ms Edge’s fear is that if or until the couple sell the farm and herd, it has to continue operating as a dairy farm under extreme financial pressure.

To diversify income, they have used a beef bull in The Wyena Holsteins herd

the milking herd for the first time. Ms Edge has been looking for work since May 2018, to bring an off-farm income into the business.

Dairy Connect president Graham Forbes said he hoped banks would take on the recommendations from the Banking Royal Commission, of factoring in seasonal conditions and fair treatment in providing financial services. He said there was an onus on dairy farmers to also understand financial services.

“It’s important that business bankers have a good understanding of how farms operate; and that farmers understand how banks operate.

There also needs to be a cultural change within banks — stop the focus on driving profits. These large institutions need to be focused on their clients,” Mr Forbes said.

A northern Victorian dairy farmer agreed.

With a loan of $1.2 million and equity of 65 per

DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 13 cent, this dairy farmer changed banks recently.

“We wanted to deal with a bank where the people cared,” she said.

“The actions of the Big Four banks impact on all the other banks. Banks are very big and each farmer is very small.

“Our current bank appears to want a relationship with us; when we have had health issues, they keep in touch with how we’re managing.

They’re not phoning up to ask us how we are

Broadacre farms

going to pay the debt.”

According to Deloitte, ABARES foresees ongoing difficulty for dairy farms to service debt where relatively low dairy prices impacts income and subdues farm investment.

Agricultural advocate Jan Davis said volatility of income streams in the dairy industry, with lag time between contracts, caused bankers to look with disfavour on dairy farms.

Other b 4%

Debt consolidation 6%

Operating expenses 1%

Farm development 3% Livestock purchase 1%

Machinery, equipment and vehicles 24% Land purchase a 43%

v

Dairy farms Other b 4% Debt consolidation 19%

Operating expenses 26%

Farm Development 8%

Machinery, equipment and vehicles 19%

Land purchase a 24%

Donna Edge, Wyena Holsteins, Carpendeit: While Rural Financial Counsellors have deemed them a viable business, Ms Edge said the banking industry has been less than supportive

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14 // NEWS

Breeding Burpless Bovines

Caeli Richardson was awarded a scholarship to continue her studies, after presenting at the Australian Dairy Conference, with other young dairy scientists.

for cows that produce less methane and efficiently convert feed to milk.

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of methane created greatly depends on the population of microbes in the rumen, and that is determined by the cow’s genetics.

Methane production in cattle also has a strong link to feed efficiency. The feed-energy that goes towards generating methane could be used more economically for milk production.

In a group of cows that eat the same amount of feed and produce the same amount of milk, there will be some cows that release more methane and some cows that release less. Almost 15 per cent of feed-energy goes towards methane, but there is variation. The challenge is to identify the animals that produce less methane and use them to breed the next generation of dairy cows.

Selecting cows for lower methane is also selecting for improved efficiency.

Dairy farmers have already begun to breed for more efficient cows by choosing to breed animals with high breeding values for FeedSaved, a trait released by DataGene in 2015 that identifies the most feed-efficient cows.

Farmers currently use breeding values to rank animals in their herds on a genetic basis.

To generate breeding values, the animal’s DNA is associated with their physical characteristics, in this case methane. This genetic tool predicts which bulls or cows will breed the best offspring.

However, breeding values for methane are not currently available anywhere in the world.

The gold standard of measuring methane is expensive and labour intensive, which leads to small datasets.

Although measurements in these small groups are extremely accurate, the breeding values produced are unreliable and cannot be used in industry application.

Generating methane breeding values is still a work in progress, but results are promising for a cost effective and reliable approach.

To combat the data size problem, researchers are looking at new ways to collect methane data that is cheaper and easily obtained.

One strategy uses midinfrared (MIR) spectroscopy to analyse milk samples collected at routine herd testing. A light is beamed through the milk sample and based on how the light interacts with the molecules in the milk a pattern is produced that is unique to each cow, similar to a signature.

The individualised pattern can then be used to predict a cow’s methane production.

By taking advantage of this technique researchers can obtain large datasets with many animals.

The strategy of using MIR does not replace conventional methods of developing breeding values. Instead, it allows breeding values to be developed for challenging traits that would otherwise have very low reliabilities.

MIR is an inexpensive way to make breeding values more reliable.

MIR is already used for routine traits like fat and protein percent.

The MIR methane measurements are crude compared to the gold standard method.

Hopefully with the help of funding agencies, researchers and farmers, this is a question researchers will be able to answer in the near future.

This research is part of a larger DairyBio project funded by Dairy Australia, The Gardiner Foundation and Agriculture Victoria, led by Dr Jennie Pryce.

■ By PhD student, Caeli Richardson. Ms Richardson is currently completing the first year of her program while working on this project.

DAIRY NEWS AUSTRALIA MARCH 2019

NEWS  // 15

DAIRY NEWS AUSTRALIA MARCH 2019

16 // NEWS

Sun shines on field days SOUTH-WEST VICTORIA’S buoyant dairy

industry has had a day out in the sun, with record crowd numbers attending the 2019 Sungold field Days.

The Field Days at Allansford have been described as one of the best in its 38-year history.

“It’s been a terrific Field Days,” chairman of 33 years, Tony Rea, said of the February 13–15 event.

“I’ve been talking to exhibitors and they say they’ve been having an absolute ball. It’s amazed at how well the exhibitors have gone,” Mr Rea said.

For the first time patrons were offered free entry on the opening day, prompting a big upswing in attendance.

“We’ve probably had the most exhibitors ever and Wednesday would have been the biggest crowd we’ve had on a single day,” Mr Rea said.

“I was worried that everyone might have come for the free day but we had a great crowd again the next day; not as many as the first day but it was certainly good.”

Although final figures were not available, Mr Rea said thousands attended each day. “The

free Wednesday helped to open a new market and give more people an opportunity to experience the Field Days,” he said, “but as usual there was a solid turnout of farmers which is our main market.”

The strong attendance was matched by a positive outlook.

“Farmers are a lot more positive than they were last year, and so they should be,” Mr Rea said. “The exhibitors were also very positive so that’s a good sign.

“There’s no doubt we’re in God’s corner. Dairies in some areas around here have had three inches of rain since last Thursday.

“We’re very lucky.”

Mr Rea said the 2019 event had attracted people from across south-west Victoria and beyond.

“People have come from further afield that haven’t been here before,” he said. “That’s a great promotion for dairy.

“There’s always something new every year; the exhibitors are happy and the patrons are happy; that’s all you can ask for.”

Mepunga East dairy farmer David Crofts with David Ackerley from Dave’s Dairy Services, Purnim.

Dave Ackerley: “I’ve been coming here for 31 years. This year has been up and down a bit, like the industry. There’s not a lot of big work but there’s lots of repair work. Yesterday was a free day and there were a lot of people here.’’

David Crofts: “I get here every year to haver a look to see what’s new and to catch up with people.’’

Timboon farmer Adrian Bond: “I try to come here every year, mainly to catch up with service providers and to see what’s out there. It’s good; there are a few more exhibitions this year.’’

Bostocks Creek dairy farmers Richard and Elizabeth Downs: Richard: “I was here today to receive a cheque from Fonterra Anchor fund for our fire brigade.

We come down for the field days every year, especially to catch up with people we don’t normally see and to look at new machinery.”

Ken McSween,from Glenormiston: “I come here every year. It’s a chance to see a cross-section of the industry and to look at what’s new. Today I’m doing some forward planning, mainly looking at different finance options.’’

Agriculture Victoria dairy industry development officer, Helen Chenoweth with Camperdown dairy farmer Chris Place: Chris: “I try to come her every year. There are generally a couple of things I want to see and some people I want to catch up with. I wanted to have a look at activity monitors and a piece of machinery.”

DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 17

Wednesday was the biggest day for Sungold.

Tyrendarra dairy farmers Ivan and Robyn Nunn: “It’s the first time we’ve been here for a couple of years. It’s good to look at what’s happening and the new machinery and equipment and then make your mind up when you get home.

It’s a good day out.”

Josh Monaghan and daughter Matilda from Whitehouse Fertilisers, Allansford: “I come here every year to have a look and to see a few of our clients. It’s good to see what’s going on. It’s pretty similar to most years, which is good.”

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18 // NEWS

Drought bites Queensland production THE QUEENSLAND dairy industry is in “free fall” according to its leaders and it has nothing to do with the latest floods that have devasted the sunshine state.

Queensland Dairyfarmers Organisation president Brian Tessmann said he feared Australia would become a “net importer of dairy product” soon, based on declines in production due to drought as well as cheap domestic sales such as $1 a litre milk.

He labelled the Woolworths decision, last month, to scrap $1 a litre house-brand milk and deliver 10 cents a litre directly to farmer suppliers as a “good first step”. This would push prices to “easily high fifties (cents a litre) at least”, according to Mr Tessmann.

“Out of the drought levy, farmers are getting about 3 cents a litre and this (scrapping the $1 a litre) could double that to 6 cents a litre,” Mr Tessmann said.

“It currently wouldn’t compensate for the drought, but if it’s a permanent thing it would help with the drought and possibly hold guys in (the industry) and after the drought it could help them expand.

“We are in free fall, so we need to step the

free-fall because if we keep going (this way) it is clear we will become a net importer of dairy products.”

Mr Tessmann said Queensland had about 350 dairy farmers, down “well-over” 250 since the introduction of $1 a litre house-brand milk into supermarkets eight years ago.

Severe floods ravaged parts of Queensland last month, reportedly killing hundreds and thousands of livestock. Mr Tessmann said the local dairy industry wasn’t “severely impacted” by the floods.

Drought continues to hurt the Queensland dairy industry and Mr Tessmann quoted barley at $430 and said feed was being sourced from as far away as South Australia’s Eyre Peninsula and Western Australia.

Last month, Ross McInnes was milking 350 and about to start calving again at his Harrisville farm, an hour south-west of Brisbane. It’s been really dry, and he believed stocks of hay wouldl disappear in the coming six weeks if there was no significant rainfall.

“We are only treading water the moment, putting hay in the shed and then feeding a bit out,” Mf McInnes said.

Queensland production was down 10 per cent year-to-date in December last year, according to Dairy Australia figures. Last season Queensland produced 399 million litres. Australian production, to December last year, was down 5.1 per cent year-to-date.

According to Dairy Australia figures, in 2017– 18 Australia’s gross dairy exports were 30 to 40 per cent of its total milk production. Subtracting imports, the net export figure was about 20 per cent of total milk production.

A dead emu is seen caught on a fence in drought stricken northern Australia.

Photo by DAVID MARIUZ, AAP.

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DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 19

Young dairy go-getter to speak at Herd 19 TWO YEARS ago, young South Australian

dairy farmer Ebony King would have buckled at the thought of speaking in front of 200 people.

Now, she’s ready for the challenge and will be part of a Next Gen Go-getters panel at the Herd 19 conference in Bendigo, Victoria on March 19 to 20.

Ebony’s rise through the industry was fasttracked last year when she won the employee career development category of Dairy SA’s Next Gen challenge.

The success not only led to her inclusion on the panel, it gave her the confidence to take on the opportunity.

Ebony will be one of three young panel members who will provide a practical farming perspective and explain their career goals at the conference panel, which brings together the herd improvement industry’s major players.

Ebony, 20, grew up in suburbia near McLaren Vale but her stock agent grandfather Allan Peglar and herd improvement uncle David Peglar made sure she knew about and loved the dairy industry.

“I’ve always loved cows and had farms in the background,” she said.

After completing an agricultural course through TAFE, Ebony worked on a dairy farm near Clare Valley before moving home to the Fleurieu Peninsula nearly two years ago to work with Wes Hurrell at Yankalilla as assistant herd manager focusing on calf rearing and breeding.

“Watching the herd grow through genomics has been awesome,” Ebony said.

Wes has given Ebony the chance to develop industry connections through Dairy SA discussion groups, the Track Ag Consulting Group and the Next Gen challenge.

“Next Gen was a great opportunity to develop my networking and communication skills,” she said.

Part of the Next Gen challenge involved speaking before a board of four people.

“Talking on stage to a few hundred is going to be a bit different and a bit nerve-wracking.

Ebony wants to work in the herd improvement industry and hopes ultimately to be providing independent breed advice to farmers.

Ebony shows cattle at the Royal Adelaide Show and has worked with Dairy Australia’s Legendairy initiative to host people at the show’s dairy exhibit.

“I love the resilience and family strength of the dairy industry with everything going on with the milk price and environmental factors,” she said.

Ebony is looking forward to taking her message to the stage as she looks to a long-term future in the industry.

“The last two years farming with Wes and having those networking opportunities has really helped me to pursue my goals,” she said.

Supported by Dairy Australia, Herd 19 is a biennial event in Bendigo, bringing together keynote speakers at the cutting edge of herd improvement. With the 2019 theme being “Delivering change in herd improvement”, Herd 19 will hear from overseas specialists from genetics companies about the latest developments in genomics and robotics.

For more information, visit www.ivvy.com.au/event/Herd19

DAIRY EVENT TO BRING RED BREEDS TOGETHER More than 100 people from 10 different countries will join a March conference to learn how red dairy breeds are coming together to grow their success.

The International Red Dairy Breed Federation conference and tour will be hosted by the Australian Red Dairy Breed for the first time in Australia since 2000.

Following the theme ‘Bringing Red Breeds Together’, it will feature a two-day conference in Mt Gambier on March 26 to 27 and a tour from March 22 to March 29 that crosses South Australia and Victoria.

Event organiser Kylie Boston said the event looked set to be one of the best ever.

Visitors from Germany, United Kingdom, United States, New Zealand, Denmark, Sweden, Poland, Estonia and Finland, will join cattle breeders, breed organisations and genetics company representatives from across Australia.

The conference program features experts outlining Australian and international experiences for red dairy breeds, the unique gene characteristics of red breeds, an update on genomics, the European ReDiverse project, latest

Australian and international research, the science of genetics, and a panel session on the commercial realities influencing diversity preservation.

A new addition to the conference is David Kendal, the director of genetic advancement, ST Genetics USA, who will deliver a session on sexing chromosomes, showing how the latest technology can be used to improve genetics.

For more information and to register please contact Ms Boston on 0407 231547 or email kylie.smc@bigpond.com.

DAIRY NEWS AUSTRALIA MARCH 2019

20 // NEWS

Milk production lags amid cost pressure: report DAIRY AUSTRALIA’S February Situation and Outlook report revealed declining milk production and continuing cost pressure on farmers.

Milk production continues to lag behind 2017–18 levels, tracking 4.8 per cent lower for the current season to December and the impact of tough seasonal conditions is placing further pressure on many farmers.

Dairy Australia’s forecast for 2018–19 milk production has been adjusted to reflect a 7 per cent to 9 per cent decrease relative to 2017–18, equating a total of between 8.45 and 8.65 billion litres for the full season.

Whilst some farmers in the southern regions experienced a better than expected later spring and early summer this season, many farmers in NSW, Queensland, east Gippsland and northern Victoria have faced significant seasonal difficulties.

High prices for grain, hay and irrigation water persist with consequences being felt by

the broader industry.

However, global dairy markets reveal healthy import demand with key markets continuing to grow including China (up 3 per cent), Japan (up 5 per cent) and Southeast Asia (up 6 per cent).

Dairy Australia’s senior industry analyst John Droppert said the ongoing growth in markets like China and Japan provided some comfort for the Australian dairy industry in an environment that was proving challenging for many farmers.

“It’s easy to lose sight of the positive in an environment of rising costs of production, a challenging domestic market and tough seasonal conditions. Many farmers have had to make difficult decisions, and the numbers often aren’t pretty, but there are positives to be found in the broader market, Mr Droppert said.

“As well as overseas, there are opportunities closer to home, and premium offerings are selling well in the Australian domestic market generating increased unit value,” he said.

“In addition, this week we’ve seen Woolworths announce plans to increase private label fresh milk prices by 10 cents per litre, passing that amount directly to farmers who supply the product. It’s too early to quantify the full implications of this decision, but for farmers it has been a welcome one.”

With farm input costs likely to remain high in the coming months, Mr Droppert highlighted the value of information and resources such as the Situation and Outlook, to inform farm business decision-making.

“As farmers prepare for autumn and winter, Dairy Australia will be dedicated to providing the latest international and domestic market trends, statistics and facts to Australian farmers, in addition to onground support through the Regional Development Programs,” Mr Droppert said.

The February Situation and Outlook report is available at www.dairyaustralia.com.au

MURRAY GOULBURN SITE TO GO The former Rochester Murray Goulburn factory is expected to go on the market this year, as its new owner prepares to realise the closed site.

Lino Saputo Jr, the chief executive officer of MG’s new owners, Saputo, said the site was likely to go on the market this year.

The Rochester community has been worried that the site would simply be mothballed, as Murray Goulburn has done with some previous vacated factories.

However, Mr Saputo said last week the company’s global practice on redundant factories was to close them and then remove the equipment and machinery, and then sell the property.

The Rochester factory closed about 12 months ago.

Meanwhile, Mr Saputo reassured suppliers that the future of the Cobram factory was sound, after experiencing a cut in supplier numbers and milk volume.

Mr Saputo said his company was spending millions of dollars in the cheese plant, and if necessary would truck in milk supply from other regions.

He said Saputo was looking at a variety of options and would even consider buying milk from other processors if that was required to keep the plant running at optimum level.

Cobram was the founding region for Murray Goulburn and has had a dairy processing plant for almost 70 years.

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DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 21

Barn design specialists to share expertise TO HOUSE cows, or not to house cows is today a big question.

With the days of abundant water and predominately pasture-based farming fast vanishing in various inland Australian areas, there are now many ways to farm — and no one way is necessarily right nor wrong.

Perhaps, the most important question is: “What is right for you?”

A workshop in Echuca on March 26 will bring together a talented group of Australian and international barn design specialists to address key barn design challenges, and their solutions.

Keynote speakers will include international agricultural engineer Joseph “Jake” Martin III, who has worked in the United States, Europe and Asia.

He specialises in barn design, effluent management and cow comfort.

Sue Hagenson is Artex Barn Solutions’ senior dairy specialist. Born in New Zealand and now living in Canada her extensive resumé includes working and living in Uruguay and China.

Ms Hagenson’s understanding of the Australian landscape, coupled with her knowledge of ventilation and cooling cows adds vital intel to the conversation.

Daviesway’s project specialist Nico Polato has 25 years’ experience in the industry, including work in North America. His practical background includes electrical refrigeration mechanical engineering, and he has seen it all at the practical ground level.

All three speakers stress that failing to plan, is planning to fail when it comes to housing cows in hot climates.

The group will be joined by Australian dairyman Colin Thompson who, together with his wife, Erina, milks 320 cows at Silvermere Holsteins in the Lachlan Valley, NSW. Colin will share his thoughts on the impact of their

decision to house their herd.

To attend the event, RSVP Daviesway by March 20 by phoning 1800 666 260.

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DAIRY ROBOT OPEN DAY A new automated milking system in Gippsland will be open for visitors to inspect in April.

The GEA Monobox installation at the Williams farm at Yannathan is the first of its kind in Australia and has been in operation since last November.

On April 12, visitors will be able to see the robots in action and speak to the farmers about their experience so far.

GEA employees in attendance will include technical support staff to answer any technical or operational questions about the robots and area sales managers.

The Westafalia Warragul dealership,, who installed the equipment and are responsible for support and servicing will also be in attendance.

The Open Day is scheduled for April 12 from 10 am to 4 pm.

For further information contact GEA on: 1800 789 100.

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DAIRY NEWS AUSTRALIA MARCH 2019

22 // MARKETS

Global markets remain balanced while Australian milk production continues to fall butter are currently offering better returns than cheese.

The impact of reduced SMP stock overhang and increased butter production are clear on the chart below.

China has now re-entered the market and increased purchases of dairy products.

In 2019 China is forecast to be an active buyer on the world market and looks set to partly absorb some of the extra supply available this year.

6,000

5,000

4,000

3,000

2,000

1,000

Butter

Skim milk powder

Whole milk powder

Cheddar Dec-18

Aug-18

Apr-18

Dec-17

Aug-17

Apr-17

Dec-16

Aug-16

Apr-16

Dec-15

Aug-15

Apr-15

Dec-14

Aug-14

Apr-14

Dec-13

Aug-13

Apr-13

Dec-12

Aug-12

Apr-12

Dec-11

0 Dec-09

Greater China (PRC, Macau and Hong Kong) dairy imports have increased in the last few months following a year of a subdued demand.

Over the year China’s domestic milk production only grew moderately and combined with low levels of imports, stock levels have been run down.

Australian milk production has continued to lag 2017–18 levels, tracking 4.8 per cent lower for the current season to December.

The year-on-year gap has also increased as the season progresses, with December intakes down 7.8 per cent compared to December 2017.

After a period of widespread dry conditions,

With limited feed available and the mercury set to stay high, milk production volumes are expected to continue to fall year-on-year.

Dairy Australia’s forecast for 2018–19 milk production has been updated to reflect the continuing challenges on-farm.

The current forecast is for a national decrease of between 7 per cent and 9 per cent relative to 2017–18.

Global demand is improving and looks set to balance global markets in the months to come.

When and if any improvements in global markets will translate to a better domestic outlook is still uncertain. As the milk pool shrinks however, passing any gains on will become more urgent if access to milk is to be maintained.

7,000

Aug-11

China dairy imports rise

Aussie milk production down

Drop in milk production predicted

Key dairy commodity price indicators

Apr-11

Global markets remained steady to slightly weaker during the final months of 2018 as the strong New Zealand season continued to weigh on the market.

New Zealand experienced a very favourable start to the 2018–19 season, with weather conditions across most dairy regions remaining supportive of pasture growth through the spring.

For the (June to May) season to January, milk production is up 4.9 per cent on a volume basis.

This contributed to a fall in prices of major dairy commodities.

From 2019 global prices have shown signs of recovery.

The GlobalDairyTrade (GDT) platform delivered price increases for the past six events, partly driven by a stronger demand from major markets.

Dec-10

New Zealand weighs on market

Aug-10

continues to play havoc on drought-affected regions. Dairy Australia’s recently released Situation and Outlook report shows that water costs continue to weigh heavily on farm profitability and overall input costs on dairy farms are likely to remain high. While the feed shortage and cost pressures are expected to remain relatively unchanged, many turn their hopes to global markets for better news.

Apr-10

FEED COSTS remain elevated and the weather

Domestically demand for dairy remains stable.

Supermarket sales of milk and yoghurt have remained fairly steady over the past twelve months. Despite this, healthy growth in higher value subcategories, such as flavoured milk, premium dairy desserts and probiotic yoghurts, drove value growth for these major categories.

Cheese sales continued to expand and butter sales grew 0.9 per cent over the past twelve months, marking the first increase in sales volume since the global butter price rally.

The disposal of the European stockpile of skim milk powder (SMP) has been one of the most notable developments on global markets which has helped to improve global commodity prices.

In October, 282 000 tonnes of SMP remained in storage; this has since been reduced to 22 000 tonnes via aggressive selling, particularly in the later months of the year.

The speed of the drawdown has been welcomed as removing a key downside influence overhanging the market.

Worth noting is that most traders are cognisant of the fact that the product has been sold more quickly than it is likely to be consumed.

Hence, much of the product has simply moved from public to private balance sheets.

Nonetheless, recent sales have been at progressively higher prices, and fresh SMP prices are also moving up, to the point where SMP and

USD/Tonne FOB

GLOBAL IMPACT SOFIA OMSTEDT

Domestic dairy demand stable

Skim milk powder stockpile reduced

the late spring-early summer period brought varying degrees of relief.

Much of southern Victoria and Tasmania saw good rainfall through November and into December, extending the growing season and reducing fodder demand.

In other areas, such rainfall was not received, or arrived at inopportune times.

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DAIRY NEWS AUSTRALIA MARCH 2019

NEWS // 23

Scare campaign angers farmers

The on-line map which has randomly identified farms.

animal exploitation.

“We mainly focus on the most exploited groups of animals and in order to achieve a better world for all animals, we encourage individuals and society to significantly minimise the harm they cause predominantly through veganism and animal rights activism,” according to the group’s website.

“We encourage activism by those who are able. We focus on spreading awareness and education regarding the animal exploitation industries in Australia with a means of strategic and problem-solving tactics through taking action.”

“We aim to do this through industry

investigations; civil disobedience, disruptive and non-disruptive public demonstrations; online, political and economic campaigning and by uniting the cause.”

This map is linked with the Aussie Farms Repository which highlights 746 dairy operations in Australia along with 16 videos and 472 photos.

The site highlights the forcible impregnation of cows, removal of calves from cows, the killing of bobby calves, dehorning, tail-docking, illnesses such as mastitis and the slaughter of cows when they are no longer profitable.

They also encourage people to submit facilities to the website.

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“It is pretty insulting. Farmers are animal activists — we work with animals every day and want them to be happy, healthy and productive.

“The best thing we can do is post as many positive images as possible to be proactive.”

Member for South West Coast in Victoria, dairy farmer Roma Britnell, said the campaign was baseless and unfounded and she described the website as despicable and irresponsible.

Mrs Britnell called for the Victorian Government to launch an awareness campaign to counteract the claims so the community could be confident farmers are responsible and care for their animals.

“As an industry we would never condone bad animal practices. As a farmer, I also take it as a personal insult,” Mrs Britnell said.

Mrs Britnell said farmers could now live in fear that their homes may be invaded by animal activists, and she was concerned that the mental health of farmers could be impacted by the campaign.

National Farmers’ Federation President Fiona Simson said the implications could be dire and she demanded Facebook close the page promoting the map and for the group to be stripped of its charity status.

“Farmers’ privacy, their right to farm and most disturbingly, their safety and that of their families and animals, are at risk,” Ms Simson said.

“Australian farmers have had enough and we will not stand by and watch attempts to destroy farms, families and rural communities."

Ms Simson said the NFF had fielded calls from farmers distressed that their name had incorrectly been linked to ‘animal cruelty’.

“They are extremely anxious and very angry that their workplace, and their home, has become the target of extreme and dangerous activities,” Ms Simson said.

MLA said farmers could request removal from the site or file a complaint with the Office of the Information Commissioner and farmers who find images or other media linked to their property that may be the result of trespassing by activists, should promptly refer the page to the police, via Crime Stoppers.

Animal Activists Inc says it aims to abolish

M

AN ANIMAL activist website map that highlights “animal exploitation” farms has left dairy farmers angered and scared.

The Aussie Farms Map of “factory farms, slaughterhouses and other animal exploitation facilities” was launched in January, prompting widespread condemnation across livestock industries, including dairy farmers who say it is an invasion of privacy that could prompt radicals to trespass on farms.

Macarthur dairy farmer in south-west Victoria, Fiona Musson, said she was stunned that activists could publicise where farmers live.

“It frightens me, it’s almost putting people at risk,” she said.

“I fear it is encouraging illegal activity or possible aggressive behaviour with strangers coming to your area.”

Mrs Musson said she and her husband Peter would welcome mature conversations with people concerned about any aspect of animal welfare.

“We’ve hosted many discussion and school groups and if anyone had concerns, we’d be more than happy to invite them here and if there’s anything we can do better we would, but to have this scare-mongering campaign almost encouraging some crazy to try to do something really bothers me.”

The Musson farm is included on the map.

“It bothers me on so many different levels,” Mrs Musson said.

“I felt my personal safety was violated by identifying our farm and that made me very angry, especially as a mum.”

Mrs Musson said the farm and industry had stringent animal welfare guidelines.

“To be the most profitable farm we can be, we need to treat our animals exceptionally well or production would be affected,” she said.

“If you don’t farm sustainably and treat your animals well, you’re not going to have a profitable farm for the future.

“We are always looking at ways to improve all areas of our business, and animal welfare is crucial to this. I feel very saddened by this false negative misinformation.”

Mrs Musson said dairy farmers were already animal activists in their own right.

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DAIRY NEWS AUSTRALIA MARCH 2019

24 // NEWS

Dairy foundation increases tertiary scholarships THE GARDINER Dairy Foundation has

increased the number of tertiary scholarships it awards annually from four to seven.

Three new scholarships in honour of the late Niel Black have been awarded to students in each of the major Victorian dairy regions. The four other scholarships are named in recognition of services to the dairy industry by Shirley Harlock, Jacob Malmo, Bill Pyle and Doug Weir.

Scholarships are awarded to students from Victorian dairy regions who are starting study in 2019.

The 2019 Gardiner Dairy Foundation tertiary scholars are: Carley Einsiedel, Boisdale (Bill Pyle scholarship); Isabella McCluggage, Allansford (Niel Black scholarship); Jasmine McJames-Court, Pound Creek (Shirley Harlock scholarship); Lauren Brewer, Warragul (Doug Weir scholarship); Lauren McIlveen, Camperdown (Jacob Malmo scholarship); Olivia Betts, Granite Rock (Niel Black scholarship); Sharna Hagendoorn, Cohuna (Niel Black scholarship).

Each scholar will receive $10 000 annually over three years to contribute towards costs associated with their studies.

Niel Black left a bequest to the Gardiner Dairy Foundation, part of which will support a tertiary

scholar from each Victorian dairy region.

Mr Black was involved in most aspects of the dairy industry. After studying artificial breeding in the US, he became a pioneer of the herd improvement industry. He was a founding partner of DemoDAIRY research centre in Terang and was an advocate and supporter of the United Dairy Farmers of Victoria for more than 50 years.

“Niel always generously shared his knowledge with newcomers and actively supported the development of young people,” Gardiner Dairy Foundation chief executive Clive Noble said.

The Gardiner Dairy Foundation tertiary scholarships are awarded to students who have been accepted into a course that will benefit the Victorian dairy industry or dairy communities.

The program aims to encourage students to return to the dairy industry on graduating and contribute positively through the skills they have gained.

Dr Noble said a diverse range of skills were needed to ensure the Victorian dairy industry and dairy communities were resilient and adaptable.

“Dairy communities need high-level skills in all areas of dairying as well as in essential areas such as health, education and finance. However,

One of the scholarship winners, Jasmine McJames-Court.

there is a huge cost for students associated with relocating to undertake the higher education and training required to develop these skills,” Dr Noble said.

“The tertiary scholarships support the development of young professionals who may not have had the opportunity to pursue higher education and who intend to bring their skills back to a dairy region in the future. They are an

important investment in our People and Community Development portfolio.”

Applications for 2020 Tertiary Scholarships will open in August.

For more information, visit http://www. gardinerfoundation.com.au/current-projects-industry/ or email Richard Meredith at richard.meredith@gardinerfoundation.com.au

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DAIRY NEWS AUSTRALIA MARCH 2019

PASTURE IMPROVEMENT FEATURE

Lessons from the Bega Valley See page 28

Farmers embrace Knight Italian rye-grass See page 26

Dry sowing strategy See page 32

DAIRY NEWS AUSTRALIA MARCH 2019

26 // PASTURE IMPROVEMENT

Farmers embrace Knight Italian rye-grass THE FAST-ESTABLISHING Knight Italian rye-grass is being embraced by farmers, who are seeing its ability to deliver outstanding growth and performance.

Ballarat’s Graham Fagg, who first began using Knight Italian rye-grass as part of his pasture renovation program, said having recently learned about some of the benefits, he decided to trial it as a winter grazing crop in a couple of his paddocks, with what he describes as “great success”.

Mr Fagg runs 5000 cross-breed merino sheep on 600 ha and sowed about 48 ha with Knight Italian rye-grass across two paddocks in autumn 2018.

“It only needed minimum tillage, and we used an air seeder, sowing with a seven-inch spacing alongside MAP fertiliser at about 100 kg per hectare,” he said.

“We also put it in on its own, with no irrigation.”

He said he chose the Italian diploid variety mainly because of its grazing tolerance, and found it was a lot quicker to establish than other varieties he’d used.

“It seemed to hang on very well,” he said.

“It’s done an exceptional job so far. We had

about 500 ewes and lambs on it, and it’s really lived up to its reputation as a solid grazing crop.

“We’ve seen a number of benefits already.

“It’s definitely improved our livestock nutrition. The stock always looks healthy and they’ve gained good weight.

“It’s also got great palatability, and the vigorous growth has been incredible. I couldn’t get over how much it just kept growing, even through the colder months.

“We had a little bit of cape-weed, and a few redlegged earth mites, but they didn’t seem to stop the rye-grass at all.”

For Stephen Pasture Seeds territory manager Michael Grant, Knight Italian rye-grass is setting the benchmark for Italian rye-grasses, and for several reasons.

“Knight is very quick to establish and can be over-sown into old thinned out old pastures improving these paddocks dramatically.

“A good tip is to sow early and get your seed Kickstart treated to protect the seedlings from redlegged earth mite and other insect pests.

“With the right preparation, Knight’s growth through winter is exceptional.

“Its high winter activity is its main claim to

For stephen pasture seeds: Graham and Heather Fagg in their Knight Italian ryegrass paddock.

fame, and its ability to recover and regrow after grazing is excellent — and in a good season, you can also get a second cut later in the spring.”

YOUR PARTNER FOR PASTURES Dry sowing can be successful when conditions are right and the break is looking to come late. A little pre-planning and knowledge is all it takes. Our Territory Managers can assist with pasture varieties and dry sowing advice to ensure the best result and to maximise home-grown feed right across the season.

Emma McDonald Territory Manager – Gippsland & South Coast NSW 0438 736 943 | emcdonald@heritageseeds.com.au www.heritageseeds.com.au

If you want to know how, call your partners for pasture, Heritage Seeds or go online and watch our new Dry Sowing Advice Video at heritageseeds.com.au/partners-for-pasture.htm

For more information on Knight Italian Ryegrass, visit www.ausweststephenseeds.com.au

DAIRY NEWS AUSTRALIA MARCH 2019

PASTURE IMPROVEMENT // 27

Farmers urged to sow grazing canola GRAZING CANOLA could be the answer to covering bare soils this autumn and offering growth with winter rain, according to a southern NSW agronomist.

Mark Lucas, from Pasture Agronomy Services, Gundagai, said the grazing canola Hyola 970CL was the “toughest thing out” and could go to “hell and back with moisture deficit”.

Mr Lucas said the grazing canola could be sown early in February/March and would deliver rapid growth.

“The Hyola 970CL and Phoenix CL will not run into head unless they go through a cold period,” he said.

He said the canola varieties offered herbicide flexibility, a growth period extending from March to December, and could produce harvest yields of six tonnes/ha.

Ideally, it is sown at 3 kg/ha but the seed is costly at $33 to $35 a kilogram and roughage was needed to supplement the livestock grazing it.

Speaking at a Wodonga conference, Mr Lucas gave the date for sowing autumn pastures as March 10 when soil temperatures would be at 27°C or below in the eastern Riverina.

Mr Lucas said soil tests showed the eastern Riverina and Upper Murray were in good shape with adequate organic matter levels.

Soil audits at four sites revealed phosphorus levels in 2017 of 23 ppm at Gundagai, and Adjungbilly, 26 at Holbrook and 28 in the Upper Murray.

This year, those figures had risen to 26 at Gundagai, and fallen to 19 at Adjungbilly, 23 at Holbrook, and 18 at Upper Murray.

Mr Lucas said the ideal range was 20 to 30 parts per million.

“We have another tough four to eight weeks in front of us,” he said.

“This new challenge in our climate is the only reliable moisture we have is winter with more failed springs in the last decade than the Riverina has even known.

“As a hotter environment happens, we’ve got to look at how grasses respond to that.

“Lush and leafy tetraploid rye-grass have big cell walls and are prone to hot weather.

“Although it is the best nutrition, it is the plant which can bring you undone.”

Mr Lucas said some pasture blends were being modified to cope with hotter, drier conditions.

“If we are putting in a short-term pasture this year, we’ve got to look at something that

TREATY ACTION URGED THE Australian Dairy Industry Council (ADIC) has urged the Australian Parliament to expedite binding treaty action on the already-negotiated trade deal with Peru.

Negotiations were completed with Peru in November 2017, and the agreement has twice been reviewed by the parliamentary Joint Standing Committee on Treaties.

Dairy Council chair Terry Richardson said the industry had been advised that Peru has already signed off on the agreement and does not want Australia to be seen to be lagging behind where improved market access is at stake.

can wag its tail at the end of the season.

“We can’t just have it grow like a normal eastern Riverina pasture which germinates in mid March and stops growing on Melbourne Cup Day. “Those dates don’t fit any longer because we are not getting our spring.”

Mr Lucas said chicory, grazing tolerant lucerne varieties, Strategic Carryover and Stamina blends, and the hardier Italian rye-grasses

would work for many pastures this year.

“We need to have more summer dormant pastures including the Mediterranean fescues,” he said.

“Every time a plant tries to grow in summer, it is using energy out of the crown, depreciating its survival.

“A perennial pasture is the best weed control and gives the cheapest cost of production, so it doesn’t need to be re-sown every year.

“And, Economax will be a big winner this year as we need to repair a bare soil surface as quick as we can.”

Mr Lucas said the long-seasoned Goliath brassica was ideal for nitrogen utilisation post drought in stock containment areas and gave annual grass control.

He said the new ForageMax herbicide enabled Bathurst burr and fat hen to be controlled in canola crops.

Setting new benchmarks for late season quality

Dash annual ryegrass is the newest addition to livestock menus. It is fast establishing, high yielding, high quality and very palatable. And at +24 days relative heading date (relative to Nui = zero) it is up to 10 days later heading, so that higher pasture quality will be maintained for longer into spring, translating into higher stock performance during this critical period.

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

If you are looking for an 8-10 month winter feed, then add Dash to your stock’s diet. It is a great feed and makes great silage and hay.

For further information on Dash contact our regional agronomists: EASTERN VICTORIA, NORTHERN NSW & QUEENSLAND ADAM SHEEDY Ph: 0428 132 096 NORTHERN VICTORIA & SOUTHERN NSW SVEN KOLJO Ph: 0429 375 452 WESTERN DISTRICTS, SOUTH AUSTRALIA, TASMANIA BRUCE HUME Ph: 0427 607 375

Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 www.cropmark.com.au

DAIRY NEWS AUSTRALIA MARCH 2019

28 // PASTURE IMPROVEMENT

Progressive farming on tour A GROUP of 17 Gippsland dairy farmers

Adam Fisher (left) and Peter Notman, both from Notman Seeds with a crop of Lucerne near Cooma.

recently returned from a four-day tour of the Bega Valley after visiting progressive farmers developing high performing pastures and farm operations.

The tour, organised by Notman Pasture Seeds, developed opportunities to engage and learn from fellow dairy farmers in the Bega Valley, visiting leading dairy and fodder operations, networking with Dairy Australia, Far South Coast Development Group, Bega Cheese and Rabobank representatives.

While the current challenging dairy economics were present in most conversations, the group was keen to pick-up farming developments translatable to operations in Gippsland.

The group visited the Ken Kimber’s sustainable large-scale lucerne and Pioneer maize fodder farm at Chakola which supports their 1200 cows at Bega.

On the way north, the group called at Trevor Platt’s Fulham farm where it learnt of his passion for developing dryland into productive irrigated pastures.

Mr Platt has developed blocks to grow crops including sorghum, which provides a more

secure feed for his dairy farm.

The group also saw Richard and Debbie Platts’ operation which optimised daily nutrition and hygiene with automated calf feeding and housing.

One Gippsland farmer remarked that a common thread with all involved was minimising feed costs by planting persistent high performing grasses to maximise the dry matter grown per hectare.

Like so many operations in Gippsland, Bega Valley farmers have adopted new pasture technologies that respond well to fertiliser applications, and bounce back well after hard grazings and drier conditions.

Notman seeds proprietor Peter Notman said the tour concluded with pasture and summer cropping dryland/irrigation operations of exGippsland dairy farmers Mick and Ancret Shipton at Bemboka, and popular couple Ian ‘Toad’ and Mandy Heffernan at Kanoona who featured on House Rules in 2018.

“It was great to hear from Bega Valley dairy farmers on how they tackle local conditions and how this helps grow their own businesses to succeed,”’ Peter said.

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DAIRY NEWS AUSTRALIA MARCH 2019

PASTURE IMPROVEMENT // 29

A Pioneer maize crop at Chakola.

A crop of Top Crop Rape and Milllett grown to provide fodder for Ken Kimber’s dairy herd in the Bega Valley.

A millett crop in Bega. The visiting tour group was wearing boot covers as a biosecurity measure.

Visiting a barn in the Bega Valley, from left, farmer Will Colbert, Todd Whyman, farmer Tim Jelbart and farmer Jarrod Moon.

Ken Kimber’s property grows their own lucerne hay to ensure they have a reliable supply of fodder.

The Platt’s automated calf rearing system.

The tours are run biennially.

A Bega farmer told the visitors that varieties that have performed well in Gippsland had also done so in the Bega Valley with Bullet Annual Rye-grass and Vibe Italian Rye-grass carrying pasture quality longer into spring and had been persistent even under harsh management conditions.

Pressure was evident from dominant species on the moderately fertile soils in the Bega Valley including kikuyu and love grass, which were managed with intensive stocking and rotational crops such as forage rape and millet.

Yanakie dairy farmer Rob Mortlock was impressed with the way the Bega farmers could grow fodder so well with different grass species.

“It was interesting to see Ken Kimber’s Cooma block which was a former vegetable market garden property where they were growing up to 16t of dry matter per hectare and selling about 60 per cent externally.

“Ken Kimber’s farm was a very good set up.”

Other highlights were the calf rearing operation of Richard and Debbie Platt. Where Debbie

raised about 350 calves on the automated system.

He noted the popularity of direct drilling in pastures.

They also visited a young couple who were developing their farm operation on leased land.

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DAIRY NEWS AUSTRALIA MARCH 2019

30 //  PASTURE IMPROVEMENT

Dairy icon not ready to stop have offered a lifetime of learning for Jan and she says others have the same opportunity to develop their skills. “You should go to as many courses as you can,� she said. “You never stop learning as long as you live.

There are simple rules around farming but sometimes they need to be reinforced.�

After school Jan had planned to work on the family farm but her parents told her to pursue a different career. She chose nursing, started in 1963 and focusing on caring for children.

Jan’s father Bob died in 1983, leaving her mother Sylvia to run the farm. “I’d work four nights at Geelong hospital and then go home when I had three nights off because Mum needed someone to help. “In the end I gave up nursing and came home around 1985,� Jan said.

The next year she completed a farm management course at Glenormiston College. “I tried to learn as much as I could about farming; there wasn’t a lot I didn’t know but it helped to hone my skills.�

TIMBOON DAIRY farmer Jan Raleigh has

never been one to buckle under pressure.

As a woman running a dairy farm, she’s defied the odds to develop one of Australia’s top herds.

Now as she grows older, she’s continuing to defy those who tell her it’s time to retire. “People say, ‘Why don’t you sell the farm and go into Timboon?’ but I’d be bored out of my brain,� Jan said. “The more people say to me don’t do something, the more it makes me determined to keep going.�

At 73, Jan has used her stories of resilience and determination to inspire a new generation of farmers as part of an Australian Dairy Elders panel at the Australian Dairy Conference in Canberra in February. “If people tell you that you can’t do it, just do it, have a go,� she said. “Any woman is capable of doing anything they want. If they can’t lift something, they work around it, use the tractor or get someone to help.�

Farming and her previous career in nursing

Jan Raleigh

She had to make major changes on the farm on the Timboon-Scotts Creek Rd to ensure its survival.

At the time, the dairy shorthorn cows were producing only 50 kg of butterfat per cow per year. “We had to try to improve the cows or we’d go broke, and I saw an article about Aussie Reds so thought that’s the way I’ll go.�

Jan kept using the best bull every year, doing her own AI until 2000. The herd improved significantly, and it’s now the fifth top BPI Aussie Reds herd in Australia. “I had the number one herd at one stage, but others have come with small numbers of cows but good cows,� she said.

In March, Jan will host a tour group as part of the International Red Dairy Breed Federation conference.

Jan ran the farm on her own for about 15 years but in more recent years has sought the help of sharefarmers.

Despite some unwanted advice, she has no plans to move off her 165ha, which is boosted

by a leased 190 ha out paddock. “I’ve planted heaps of trees and done a lot of drainage and would love to see it improve more. “The hardest part is finding suitable people to become sharefarmers but I still enjoy it, I’ve had a hip replaced, a knee replaced, but you get over those and you just keep going.�

At the conference, Jan shared stories of the good old days on the farm, while not ignoring how things have changed for the better.

In 1994 Jan was part of one of the first Women on Farms gatherings, teaching women about fencing and “cracking them up� with stories about hiding use of AI from her mother.

She also featured in the Women of the Land book and was rewarded at last year’s Great South West Dairy Awards for having the top BPI herd in the district. “I still enjoy it; I’m happier being out in the paddocks with the cows and calves than being indoors,� Jan said.

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DAIRY NEWS AUSTRALIA MARCH 2019

PASTURE IMPROVEMENT // 31

Autumn management workshop BAFFLED BY the Indian Ocean Dipole? Want

to understand the Southern Oscillation Index?

Are you keen to upskill to better manage climate risks in your own farm business?

A two-day, hands-on workshop will be held at Orbost in March to assist farmers, sharefarmers and employees to develop risk management plans before autumn.

Agriculture Victoria Dairy Extension Officer, Maria Rose, said weather can make or break a farm business, and being prepared is the key to navigating periods of volatility.

“We will talk about the climate drivers, how to interpret them for your local region and how to build on this knowledge by creating practical plans for individual farms,” she said.

“For example, if you are on a floodplain, what are your chances of a flood event? What part of the business would be most affected? Do you have adequate insurance? How much seed do you need on-hand for re-sowing pastures?

“Similarly, what’s the probability of a failed autumn break? How do you prepare for that? Do you forward contract grain? Should you purchase hay and store it at the property of origin? What about destocking or securing agistment?”

A ‘risk matrix’ will be used throughout the workshop to help participants evaluate the cost versus benefits of investments and decisions. For example, dealing with regular power outages or water shortages.

The workshop will be an opportunity to hear from informative speakers and experts, while networking with other dairy farmers and business owners.

“We will talk about the climate drivers, how to interpret them for your local region and how to build on this knowledge by creating practical plans for individual farms.”

Ideally, participants would attend both days to get the most out of the workshop. An optional twohour farm visit is also offered to participants to assist them develop their on-farm plan.

The workshop will be held in Orbost at the DELWP Office located at 171 Nicholson Street on Thursday, March 7 and Thursday, March 14, running from 10.30 am to 2.30 pm.

To register, please contact Maria Rose on 0438 282 205 or email maria.rose@ecodev.vic.gov. au.

For more information about Agriculture Victoria’s support to dairy farmers contact Maria Rose or visit the Agriculture Victoria website: agriculture.vic.gov.au/dryseasons.

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DAIRY NEWS AUSTRALIA MARCH 2019

32 // PASTURE IMPROVEMENT

Sowing into a dry seed bed requires some forethought.

BENEFITS OF dry sowing this autumn

Dry sowing may be an option for southern farmers experiencing delayed autumn breaks.

One of the greatest benefits to dry sowing is that it maximises the length of the growing season, allowing seedlings to become established early and providing valuable fast feed in the winter months.

“Sowing into dry soils before the break requires forward planning to ensure the best results, and some simple tips can improve success,” Heritage Seeds territory manager, Emma McDonald recommended.

“This method of sowing is most likely to be effective in paddocks with low residual pasture growth and limited weed burden. Limiting weed competition is important to emerging seedlings.”

According to Ms McDonald, sowing before the break limits herbicide options for the control of early germinating weeds, therefore it is important to choose species with quick earlygrowth to outcompete any weeds.

Some good fast establishing species to consider include annual rye-grasses and forage cereals.

Sowing into dry soils means that plants experience warmer soil conditions and good early vigour once adequate moisture is achieved. However, it is important to ensure that your seed is sown deep enough to protect it from drying out. For some species such as oats, aim to sow 10–15 mm (approximately half an inch) deeper than the normal sowing rate to ensure adequate seed coverage. Dry sowing can be undertaken with your usual seeding machinery.

There are several known pests such as African black beetle and red legged earth mites that can impact the success of dry sowing. It is recommended paddocks are regularly monitored to identify any possible pest threats and undertake appropriate pest management strategies prior to planting.

“Good planning is the key to achieving fast winter feed,” Ms McDonald said.

“But if you’re not sure what your best options are, get advice — that’s what we’re here for. We want nothing more than to help farmers to grow with confidence and get the most out of their paddocks.”

Now is the time to think about autumn sown grasses.

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DAIRY NEWS AUSTRALIA MARCH 2019

ANIMAL HEALTH // 33

Questions and compromises ROD DYSON

It is now several years since we had been to John’s* farm. Back then he was milking 600 cows in a rotary dairy and had a significant problem with clinical cases of mastitis, mostly caused by Strep uberis.

Some key changes to milking setup, dry-off management and calving management made the difference he had been looking for.

However, John recently called to say he was again having trouble with an increased number of clinical cases of mastitis, and also a steadily rising Bulk Milk Cell Count over the last couple of months.

He is now milking well over 1000 cows, has extended the dairy yard, built a shade shed, a large feed pad and loafing area, and naturally has more staff working on the farm.

It is now a really big operation and I was keen to see the changes, so when John said “How soon can you get here?”, it was very tempting to head off fairly quickly.

But that is not how things work!

The first question I asked was whether John had any recent milk culture results.

I was not at all surprised to hear that no milk cultures had been taken, and nor was I surprised when John said “I’m sure it is all

environmental — it’s just like before!”

However I insisted, and somewhat reluctantly, John agreed to get some milk cultures done. It wouldn’t take long to take a reasonable number of samples and get results as clinical cases were now occurring very regularly.

A little over a week later, we were looking at the results — four samples were reported as E.coli, two were Strep uberis, four were No Growth, and two samples were contaminated.

Now this was really interesting.

While it is still a low number of samples from which to draw firm conclusions, there is a base from which to start working.

These samples had all been frozen after collection. For most mastitis bacteria in Australia, freezing is not a problem, however freezing can significantly affect the recovery rate of E.coli from milk samples.

If some of John’s “No Growth” samples were actually E.coli cases which had been affected by freezing, this would be a highly significant outcome.

Knowing we needed more samples anyway, we decided to collect samples for a few days, refrigerate them without freezing, and then submit them as fresh samples to confirm the early results.

John’s attention now turned to how he should deal with an E.coli problem.

Prevention will begin by reducing the contamination of teats with mud and faecal material.

We will need to review the management and drainage of the feed pad, shade shed and loafing areas, especially in times of wet weather which will greatly exacerbate the risk of teat contamination.

For example, will daily scarifying of these areas help the situation, or make it worse?

Then we will need to look at milking practices required to deal with E.coli contamination and risk — this will largely be about teat preparation prior to cups on.

Will John need to “wash and dry” teats?

Would this be done by staff using an udder hose and paper towels, or mechanically with a teat scrubbing device? When and how often will he need to do this preparation?

Will he need to use pre-milking teat disinfection?

And, just as importantly, how would this affect staffing levels and therefore cost?

John has been on a dairy study tour to the United States and is well aware of what full teat preparation looks like!

He will also need to consider his approach to treatment, and get the best advice from his veterinary advisers.

A number of the recent clinical cases had been very severe, and a few cows had actually died.

John has also heard that some farms don’t treat E.coli infections with antibiotics because in many cases, by the time treatment begins, the bacteria have already gone and it is the toxin they have produced which is doing the damage and causing inflammation of the udder.

If he is going to treat E.coli infections differently, how will he know which cases are actually E.coli? Could he use an on-farm test or culture kit to get the answer really quickly?

And finally, John will need to ensure that he has optimal milking performance, milking routines and teat condition in the milking herd because damaged teat ends are going to greatly increase the risk from contamination and bacteria around the teat orifice.

Clearly John has a lot to consider in the near future!

He will need to work through this process with his advisery team to get the best outcome in terms of cost and results.

Almost certainly, compromises will need to be made, but hopefully it will result in a risk management strategy that is both do-able and viable for John and his farm team.

■ Rod Dyson is a veterinary surgeon and mastitis adviser at www.dairyfocus.com.au

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DAIRY NEWS AUSTRALIA MARCH 2019

34 // ANIMAL HEALTH

Disease focus: Rye Grass Staggers PERENNIAL RYE Grass Staggers (PRGS) is

a common condition of cattle, sheep, camelids, and horses in many regions of Australia.

It tends to occur in late summer and autumn and is caused by a fungus found within the rye grass plant.

Unlike annual rye-grass toxicity, which is seen in spring and early summer when grasses are long, PRGS is seen when pastures are short and dry, with stock grazing closer to the base of the plant.

What causes PRGS? Perennial rye-grass (Lolium perenne) is one of the most commonly sown pasture grasses in Australia.

Most established perennial rye-grass plants are infected with a native endophyte fungus known as Neotyphodium lolii, which grows within the leaves, stems and seeds of the plant.

This fungus produces toxins which can accumulate in the plant, peaking in summer/autumn.

The toxin level can remain high in the pasture for five to six months and silage made during this time may retain similar concentrations of toxin for >200 days. In hay the toxins appear to decline significantly over a similar period.

The fungus does not harm the plant and

actually has many known benefits including increased resistance to insects and drought.

The fungus can only spread to rye-grass plants from infected seeds as it does not produce spores and cannot spread from plant to plant in the paddock. It has a short lifespan (18 to 24 months) in the seed under normal grain storage conditions.

How are cattle affected?

Cattle grazed on pastures containing N. lolii may exhibit signs of PRGS within seven to 14 days of exposure, with younger animals more severely affected. The fungus and toxin occur mainly in the plant very close to the ground, therefore hard grazing of infected pasture is likely to induce ryegrass staggers.

Mildly affected animals develop tremors which become more severe when they are exposed to physical stress such as mustering and external stimuli such as humans, dogs, vehicles and noise.

While PRGS is not in itself fatal, severely affected animals often die of accidental causes such as dehydration, starvation or drowning while seeking water in an attempt to cool down. Animals can also be subclinically affected resulting in production losses such as reduced

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liveweight gains in youngstock, lowered fertility and reduced milk yields.

Prolonged exposure to toxic pasture can lead to permanent neurological damage.

The typical symptoms of rye-grass staggers in cattle include: ■ Behavioural change – more flighty ■ Leg and trunk stiffness causing hesitancy in movement.

■ Tendency to fall, stand with legs splayed out.

■ May kneel on forelegs or ‘dogsit’ on hind legs.

■ Collapse – flexion rather than extension of the legs.

Treatment There is no specific therapy for perennial ryegrass staggers. Cattle should be very quietly moved, without a dog, to a safer paddock with a water trough rather than open water to reduce the risk of drowning.

Collapsed animals should be moved to sheltered areas and provided with shade, food, water and nursing care.

Severely compromised animals should be humanely destroyed on welfare grounds.

Mildly affected animals recover after two to

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three days (sometimes up to 14 days) after they are transferred to ‘safe’ pasture. The recovery rate will depend on the level of toxin in the ‘safe’ pasture.

If other pastures are not available for grazing, feed should be supplemented to reduce pasture intake.

Dairy cows that go down in the milking shed should be left alone, as they usually recover and can walk out on their own within an hour or so.

Prevention Pasture management is key in preventing perennial rye grass staggers.

Since the rye-grass plant and N. lolii have a mutually beneficial relationship, grasses available without the fungus do not thrive as well as those with it.

Over-grazing can cause animals to graze the base of the plant, where the toxin accumulates, so care should be taken to keep pastures leafy, if possible.

Removal of dead litter and cultivation of clover in the pasture can reduce toxin intake as well, although this is often difficult in dry summers.

TIME TO BE VIGILANT ON PINKEYE DR JEFF CAVE, DISTRICT VETERINARY OFFICER, VICTORIA Pink-eye is a highly contagious, painful and debilitating disease that can severely affect animal productivity.

In summer, increased sunlight and dust make the eye more vulnerable to the disease. Long grass and flies help to spread the infection.

Pink-eye usually occurs in young cattle in their first summer. After this initial infection, cattle develop immunity to the disease but may remain carriers of the bacteria, Moraxella bovis, which potentially can lead to future outbreaks in following years.

The clinical signs of pink-eye include clear and watery tears, signs of irritation, an aversion to sunlight, reddening and swelling of the eyelids and cloudiness of the eye.

In a small percentage of cases, an affected eye may form an abscess and rupture, leading to permanent blindness.

While most affected eyes completely recover after three to five weeks, a number may be left with scarring on the surface.

Pink-eye can be treated with sprays, ointments, injections and patches or a combination of these treatments. Extra care should be taken when mustering cattle for the purposes of treatment for pink-eye, as factors such as dust and flies may enhance the spread of the disease.

Attention should also be taken not to confuse pink-eye with other conditions of the eye, such as a grass seed in the eye, eye cancer and other eye infections.

In many cases, an outbreak of pinkeye can be prevented through vaccination three to six weeks before the onset of the pink-eye season.

Other control measures include controlling fly numbers to limit the spread of bacteria from animal to animal, prompt segregation and treatment of pink-eye in affected stock and avoiding unnecessary yarding of cattle during periods where the risk of outbreak is higher.

For more information contact your private veterinarian or your Agriculture Victoria animal health staff through our Customer Service Centre on 136 186 or go to http://go.vic.gov.au/9zysMX.

DAIRY NEWS AUSTRALIA MARCH 2019

MACHINERY AND PRODUCTS // 35

John Deere unveils new rotary cutters JOHN DEERE has introduced a new family of

rotary cutters, which include an all-new deck and cutting chamber design.

The new John Deere Rotary Cutter line-up includes the E-, M- and R-Series that replace the existing John Deere MX, HX and CX Flex-Wing rotary cutter series.

Up front, a new suspended front mount improves machine stability by isolating the movement of the cutter deck relative to the tractor and vice versa.

E-Series rotary cutters include a new 3.6 m E12 along with a 4.5 m E15.

Next up is the M-Series with M15 (4.5m) and

M20 (6.1m) models and the top-end R-Series includes a 3.05 m size, followed by the R15 (4.5m) and R20 (6.01m) models.

“The all-new cutting chamber has been designed from the ground up to control air flow under the deck,” John Deere marketing representative Cristina Guzman said.

“This improves cutting performance and cut material distribution from below the deck while reducing material accumulation on top of the cutter deck.”

Up front, a new suspended front mount improves machine stability by isolating the movement of the cutter deck relative to the tractor and vice versa.

“This helps reduce stress on the machine while delivering a comfortable ride for the driver,” Ms Guzman said.

A new torsional rear suspension system is an option for the M Series and is included in the

John Deere has announced a new lineup of rotary cutters.

base package for the R-Series.

This option further improves machine stability while delivering an improvement on cutting height.

This is the same field-proven technology that’s been available on John Deere windrowers for more than a decade.

E-Series cutters feature a 75 hp gearbox and Category 4 driveline, while a 100 hp gearbox and Category 5 driveline are base equipment on the M-Series, with an option to upgrade to

a higher-performing 125 hp gearbox with Category 6 driveline.

All R-Series Cutters feature a new 125 hp gearbox and Category 6 main driveline for more capacity, improved durability and performance.

For more information and a full listing of options available for the new rotary cutter lineup, contact your local John Deere dealer or visit JohnDeere.com.au

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Find your local dealer www.colacag.com.au or call (03) 5231 6999

DAIRY NEWS AUSTRALIA MARCH 2019

36 // MACHINERY AND PRODUCTS

John Deere powers auger AN ENORMOUS new tube conveyor for shift-

ing grain, designed and built by Queensland industrial engineers Oztec, easily gets all the power it needs from a John Deere 6068T1 industrial engine.

The Oztec range of grain augers and tube conveyors come in a variety of lengths, diameters

and engine sizes to suit any farming operation.

“With a belt conveyor like this you can only run it up to an angle of 25 degrees or the grain starts falling backwards on the belt,” Oztec managing director John Sheehan said “It is 40 m long to get the height needed to fill silos that are 15 m high.

“We could have built it as a shorter self-propelled grain auger, but over that height an auger puts a lot of pressure on the grain.

“The belt is a lot softer on lupins and chickpeas, so it handles the grain more gently.

“That’s the main reason this farmer went with the belt conveyor this long.”

More Grass, Less Fert, Less Cost.

A VERSATILE MACHINE TO SAVE FARMERS MONEY AND TIME

Your pasture can benefit in drought and in hot weather with a Tow and Fert.

It is a constant battle in drought conditions for Farmers however they can still gain the benefit from fertilising by using a Tow and Fert in the following way: The Tow and Fert Multi 1200 is a versatile machine that will save you money and time on the application of your fertiliser products. Seen here on Michael Parks’ farm.

“We have made a significant saving because we are not using the bulky’s to apply the high analysis fertilisers.”

Michael Parks’ story...

Looking across at his neighbor’s farm, Michael Parks could see the results they were getting with the quality of the pasture he could see growing. They were using a Tow and Fert 1000 to spray Nitrogen and other high analysis fertilisers onto their pasture.

Having seen the Tow and Fert operating Michael began to look into the options available. What appealed to him was the ability of the Tow and Fert to mix, dissolve and then spray the liquid Nitrogen in one tank without any additional effort.

Since purchasing the Tow and Fert Multi 1200 Michael says the farm is looking great, “we’ve noticed an immediate response to the evenness of the grass cover, there is no striping now compared to solid application with a bulky.”

The evening or night before the next days milking, fill a Tow and Fert with effluent. Mix in your Urea and leave it to cool overnight.

As your cows are walking up the races for their morning milking, head to the Paddock that is ready to be sprayed and apply last nights mix. It is possible to spray up to a 4 hectare paddock in only 8 minutes using the Tow and Fert 50 nozzels. Your paddock will get the benefit of the morning dew and the 250 litres of effluent per hectare you have applied. Even better still, you will reduce your Urea content significantly saving money.

Then, return to the milking shed to help with the mornings milking.

The Tow and Fert range

Liquid Foliar Spray Machines

What has surprised Michael about the Tow and Fert is its versatility. “We thought we would use the Tow and Fert for Nitrogen and other high analysis fertilisers but we soon realized it was a much more versatile machine than that”.

There are so many advantages to using the Tow and Fert than just high analysis fertiliser application. You’ve got all these other things you can do with it.

KEY STATS: Heriot Park Farm, West Otago, New Zealand 320 cows | 134 ha | Tow and Fert Multi 1200

Multi 1000

Multi 1200

Multi 2800

Multi 4000

For a FREE information pack or on-farm demo CALL

1300 630 279

or email us at neil@towandfarm.com.au

www.towandfarm.com.au

John Deere’s 6068T1 is a six-cylinder 144 hp engine and runs at 1800 rpm.

The 6068T1 features a dynamically balanced crankshaft, forged-steel connecting rods for increased durability, a self-adjusting Poly-vee fan drive that can be matched to specific application requirements, and replaceable wet-type cylinder liners that provide excellent heat dissipation.

It also provides an optional gear auxiliary drive which produces up to 50 hp for geardriven accessories, while standard front-andside mounting points provide easy installation and application flexibility.

“The engine is working well,” Mr Sheehan said.

“We have put a Kensho K27 engine controller with it, which is a computer that provides the engine with greater protection and management.

“It is very easy to operate and has a lot of features which we don’t need to use, but it has very extensive software in it and it goes well with the John Deere product.”

CONDUCT CODE STUCK IN GO-SLOW MODE A mandatory code of conduct for the dairy industry is not expected to be in place before July 2020, Senate Estimates has heard.

Federal Department of Agriculture and Water Resources deputy secretary Cindy Briscoe told Senate Estimates last month that advice had recently been provided to the government about the next steps for the code.

“The consultations we have had with producers in the sector over the last couple of months indicate that, should a mandatory code eventuate through the usual government decision-making process, the earliest it is likely to come into effect would be July 1, 2020,” AGVET Chemicals, Fisheries and Forestry Division acting first assistant secretary Nick Blong told estimates.

“That is subject to several government decisions, of course.”

The proposed mandatory code of conduct would apply to 5800 dairy farms across the country and an estimated 87 dairy processing businesses, and put a number of measures in place including requiring all processors to announce their milk price by a set date, implementing a dispute resolution process and banning retrospective price stepdowns.

A mandatory code of conduct encompassing all processors estimated the annual average cost to the industry at more than $900 000 while the estimated average cost of taking a case to dispute resolution was $2500 per case. Preparation costs for each party could rise to $7 875.

DAIRY NEWS AUSTRALIA MARCH 2019

MACHINERY AND PRODUCTS // 37

Anniversary for New Holland NEW HOLLAND has celebrated the 100th anniversary since the first Fiat tractor rolled off the assembly line.

Model 702 was developed to address the labour shortage in agriculture as World War I was reaching its final stages.

Increasing the sector's productivity was urgently needed and mechanisation was the way to overcome the lack of manpower and to plough effectively the hard soil of the fields neglected during the war.

Model 702 provided the solution with its innovative approach. It was specifically developed to meet the requirements of the widest variety of static and dynamic applications, with its 4-cylinder engine, rear-wheel drive, a steering front axle and rigid rear axle — an unusual choice at the time.

Model 702 also broke with conventional design by adopting the approach of the Fordson tractor that featured a load-bearing powertrain which eliminated the need for a chassis. It differed from the Fordson machine — designed for the loose soil and extensive mostly level fields in North America — in that it was more powerful and perfectly adapted to the difficult soil and frequently sloping fields that European farmers had to deal with.

After extensive field testing, Model 702 was presented to the Italian Authorities in, 1918.

This was the official debut of one of the most iconic tractors in agriculture. It immediately made an impact by winning its first ploughing match.

The following year, on the back of its successful performance in the fields, Fiat signed supply agreements with agricultural consortia across Italy and started production of 1000 tractors.

The first mass produced Fiat tractor was born and the mechanisation of Italian agriculture had begun.

The Model 702 was the first in a long line of tractors that were initially developed to address a specific need and went on to shape agriculture

across the world: tractors like Model 700C, the first crawler tractor in Europe, which broke new ground with a tractive force, stability, and safety on hillsides and muddy terrain that had no equal

when it was launched in 1932.

The following decade saw the arrival of Model 40, another crawler tractor, which was light, safe and economical, as it could run on a wide variety

of fuels cheaper than gasoline. Model 50 was the tractor of the post-war reconstruction: unstoppable and indestructible, it placed Fiat firmly in the lead in crawler tractors.

BUILT TOUGH

Mark Dowling Leongatha, VIC

You expect strength, quality and performance from your farm machinery, and McIntosh Bale Feeders deliver all three.

The new range of McIntosh Bale Feeders are designed to a strength and performance standard with an all steel construction.

Every detail has been carefully thought out to reduce breakdowns and provide trouble free operation for years to come.

SCIENTIST ON MISSION TO SAVE DAIRY WASTE

*optional extras shown

FOR MORE INFORMATION OR TO FIND YOUR NEAREST DEALER PLEASE CONTACT: A scientist with a plan to save dairy waste has won the top cash prize in a competition held as part of the inaugural evokeAG event in February.

About 1200 international delegates heard the presentation, where 13 finalists competed for total cash pool of $25000, in front of an expert panel of judges.

Mathew Jones from CertusBio is a step closer to realising his dream of saving billions of kilos of dairy waste after taking home the top cash prize of $20 000 in the Investment Ready stream.

The Christchurch-based innovator was one of five finalists from Israel, New Zealand and Australia in the agtech sector.

03 5625 1522

0418 515 510 86 ROBERTS CRT, DROUIN 3818

STRENGTH / DURABILITY / PERFORMANCE www.mcintosh.net.nz

DAIRY NEWS AUSTRALIA MARCH 2019

38 // MACHINERY AND PRODUCTS

New era opens in combine harvesting A NEW era in combine harvesting technology and productivity in Australia has arrived with the release of the Case IH 50 series Axial-Flow combines.

“The upgrades in this latest 250 series focus on improving the productivity of the combine as well as the operator,” Case IH Australia New Zealand product manager for hay and harvest Tim Slater said.

“There are several new automated features that assist in maximising the efficiency and performance of the combine, which in turn optimises grain quality and grain savings.

“Ease of operation has also been enhanced, meaning operators of all experience levels can make the most of their time in the cab.

“No matter the conditions and whatever the crop type, the consistency in performance of this new series is what sets it apart.”

The benefits of the new combines include the two-speed electric shift ground drive transmission, more simply adjustable rotor cage vanes, an improved feeder house design and the optional AFS Harvest Command combine automation system.

In addition to the new-look styling, standard

features on the 250 series include enclosed hydraulic powered disc brakes; new front axle and final drives; scalable MFH speed control; improved AHHC control logic; new ground speed adaptive sensitivity (GSAS), which automatically adjusts AHHC sensitivity with speed and new in-cab adjustable pre-sieve.

The Australian market will welcome the 7250, 8250 and 9250 models from the 250 series range, and the 7150 from the 150 Series.

The new 150 Series and 250 Series were launched at the recent Wimmera Machinery Field Days.

“There are several new automated features that assist in maximising the efficiency and performance of the combine, which in turn optimises grain quality and grain savings.”

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