Dairy News Australia - August 2017

Fonterra announces early step-up PAGE 5

MILK PRICES Short-term pain for long-term gain PAGE 13

SUPER UPGRADE Overhaul for original Landini PAGE 22

AUGUST, 2017 ISSUE 83 // www.dairynewsaustralia.com.au

SPREADING RISK IN SA Mixed farming provides buffer against falling prices. PAGE 4

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DAIRY NEWS AUSTRALIA AUGUST 2017

NEWS // 3

Milk intake drop won’t affect prices: MG

Farmers tour Canada. Page 16

Milking three times daily. Page 18

New Duncan drill. Page 23

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MURRAY GOULBURN’S expected milk intake this financial year has fallen to 2.3 billion litres, but the cooperative says this should not affect the forecast final milk price range of $5.20–$5.50 kg/milk solids.

The milk intake estimate is 200 million litres lower than originally planned, and more than a third below what it collected the previous season as suppliers have opted to sign with the coop’s rivals.

Fonterra announced its first step-up of the year in part due to the extra milk intake it has been able to achieve this season.

In a statement to suppliers, Murray Goulburn said the reduction in milk intake has not impacted the opening milk price of $5.20/kg MS as the impact of the reduction in milk intake “has been offset by various cost and business improvements compared to budget”.

The co-op did state that if the recent strengthening of the Australian dollar was to continue over the full financial year, this could create some uncertainty in relation to the achievability of $5.50/kg MS. MG has been forced to close several plants this year in a bid to maximise its efficiency, including its Kiewa factory in north east Victoria.

The co-op also announced it has sold its Kiewa Country brand and certain associated assets to a local business that is expected to recommence local manufacture in the future.

Murray Goulburn’s decisions to close plants has affects its relationships with customers.

Rob Hallum, owner of the Central IGA Supermarket in Deniliquin, NSW, said the coop’s decision to close its Rochester and Kiewa plants had also forced him to reconsider his relationship with the company.

He said his decision was based on obtaining the freshest product for his customers, at a reasonable price.

“We have been advised the Kiewa factory in Albury will stop producing milk, with milk processing to be in Melbourne instead.

“It is difficult for us to arrange transport out of Melbourne, and it also adds to the numbers of days lost to production.

“Milk processed at Melbourne will not be

Murray Goulburn has been forced to close three plants, including Rochester (pictured), to maximise its efficiency.

as fresh for our customers, and the shelf life of that product will be reduced.

“So rather than supplying (Murray Goulburn) Devondale milk, we’ll have Sungold.

“It’s the next best company, we believe, in trying to keep things local and fresh.”

Pricing is not the only factor making it difficult for processors to secure supply, with the national milk pool in decline.

Dairy Australia analyst Laurie Walker said Australian milk production for the 2016–17 season totalled a little over 9000 million litres compared to the 9680 million litres produced during the 2015–16 season, a fall of 6.9 per cent.

Monthly milk volumes are down more than 10 per cent at the beginning of the season.

“The most severely affected states have been Victoria and South Australia, down 8.0 per cent and 8.2 per cent respectively,” Mr Walker said.

“In South Australia, most of this decline

was due to lower volumes in the southeast around Mt Gambier, which accounts for over half of the state’s production.”

Volumes out of Mt Gambier were down over 11 per cent to around 270 million litres, while the rest of South Australia’s milk production was by significantly less, around 4 per cent.

Northern Victoria finished the year at around 1750 million litres compared to 2090 million litres the year before, a fall of 16.5 per cent. Western Victoria and Gippsland finished the season down 4.2 per cent and 4.0 per cent respectively.

With the significant fall in volumes out of northern Victoria, the region’s share of Victorian milk production has fallen to around 30 per cent, which contrasts with a highpoint of 41 per cent in 2001–2002, while Gippsland and western Victoria have both increased their share of milk production.

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4 // NEWS

Mixed farming providing worth in tough season STEPHEN COOKE

thought we’d get in early. We’d rather pay for fresh green grass than bring in hay”.

RUNNING BEEF and sheep has suited South

Pasture

Australian dairy farmers Bill and Therese Fiebiger for years, but it’s proven particularly helpful over the past 18 months.

The Murray Goulburn suppliers, based at Keyneton in the Barossa Valley, are milking 180 cows. They also run 200 beef cattle, comprising cows, breeding stock, calves, steers, and a stud Red Angus herd of 20 breeders, and 300 firstcross sheep on 560 hectares.

They also sharefarm a further 80 ha.

“Mixed farming is the way to go, particularly when beef and sheep prices are up,” Bill said.

The Fiebigers were on the cusp of installing robotic milkers before Murray Goulburn crashed prices last year. They reduced their dairy herd and increased their number of sheep and beef as a risk strategy. It didn’t hurt that prices for these commodities were at above average levels.

“Reducing our milking herd by 30–40 cows has made it more manageable for both of us,” Therese said.

The Fiebigers will reduce their milking herd down 5 per cent to another 165 milkers and slowly increase their beef and sheep numbers, to spread their risk and decrease their workload.

Their usually reliable annual rainfall of 500 mm has been absent this year so far but they have a stockpile of hay and silage following a good season last year.

“We’ve had a slow start to the season. Small amounts of rain have kept things ticking over,” Bill said.

“There has been a lot of frost, so everything has stopped growing, which is starting to be a concern.

“People are trying to off-load sheep with the bad start to season, so we could get 100 ewes fairly cheap.”

A good season last year enabled them to carry hay and silage over, which relieves the pressure. They have also sent 50 young dairy steers on agistment nearby so they can preserve their hay and silage.

“The agistment opportunity came up so we

The Fiebigers have always grown Lucerne but are now growing more forage cereals. “They are better than they used to be,” Bill said.

They utilise a split sowing strategy which eliminates hand feeding in winter.

They plant Outback late maturing oats in early March, which gives them plenty of feed during winter and into spring. They combine this with sowing Moby forage barley in early April, which Bill said gives explosive growth through the winter, and follows on with good spring feed.

When renovating, they will plant a cereal crop, followed by a rye-grass crop. Paddocks will then be sown to pasture in the third or fourth year.

They set aside 80 hectares to produce their own hay and silage and want to produce 1000 rolls of each every year.

The lack of rain has made for a drawn out process this year, but they managed to plant 100 ha of oats and vetch in June, as well as 80 ha of annual rye-grass.

“It’s been a pretty unusual season, it’s pretty reliable here usually,” Bill said.

“We average 500 mm of rain and it falls at the right time normally. When we’ve missed out of late, it’s normally in the spring.

“We’ve had a lot of frosts this winter too, which has added pressure.”

Calving The Fiebigers have a split calving — calving 6 weeks from end of January, and again in spring — to create flat milk supply, and to free up time for spring lambing.

They rear all dairy bull calves, growing them out to two years old.

Therese handles calf rearing. A hay shed was recycled into the calf shed and installed with automatic calf feeders for milk and grain seven years ago.

“With calf rearing, you get out of it what you put in. Even though we have automatic calf feeders, you still have to be there. I spend

Therese and Bill Fiebiger have experienced less rain and more frosts than normal on their Keyneton farm.

hours in there making sure they are all drinking and eating.

“We went two years without losing a dairy heifer.”

Calves receive colostrum in the first 36 hours and have access to grain and hay.

“We like them to have grain and hay as quickly as possible because it’s good for their rumen,” Therese said.

Calves are fed a mix of barley, triticale and lupins. Lupins help drive appetite. The Fiebigers installed their own disc mill and mix their own calf feed.

Heifers remain in the calf shed for 65 days and are then moved into a paddock with grain feeders, with grain purchased from growers in Keyneton and Eudunda. They also have access to hay and green pick.

In the last few years they have retained dairy steers, selling them in lots at 4 months and 8 months. They are run with the beef steers and fed homegrown feed. They have fetched prices of up to $5.60/kg.

They set aside 80 hectares to produce their own hay and silage and want to produce 1000 rolls of each every year.

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DAIRY NEWS AUSTRALIA AUGUST 2017

NEWS // 5

Fonterra’s early step-up FONTERRA HAS announced the first step-up

for the season, lifting its opening price by 20¢/ kg milk solids (MS) to $5.50 kg/MS. The forecast closing range has been lifted to between $5.50–$5.80 kg/MS. The increase will apply from 1 July 2017 and will be paid on 15 August 2017.

Fonterra’s additional payment of 40 cents per kg/MS is payable on top of the revised farmgate milk price, and brings the total average cash paid to $5.90 kg/MS. Fonterra Australia Managing Director René Dedoncker said that improved market conditions and the strength of the Australian business supported this step up.

“Since the start of this season our milk pool has grown, and our assets are nearing optimal capacity,” Mr Dedoncker said.

“Coupled with strong demand from Fonterra’s Australian and global customers, this has enabled us to deliver this step up to our farmers.”

Mr Dedoncker said the rally in the Australian dollar was likely to influence the end of season milk price within that forecast range.

“We continue to monitor currency movements closely and will keep our farmers updated throughout the season with the latest market conditions,” he said.

In an update to its suppliers, Murray Goulburn said the potential rise of the Australian dollar against the US greenback could also influence its end of year price.

“While maintaining the forecast FY18 FMP range of $5.20–$5.50/kg MS, if the recent strengthening of the Australian dollar was to continue over the full financial year, this could create some uncertainty in relation to the achievability of $5.50/kg MS,” the cooperative said.

“We will continue to consider all avenues to maximise the available FMP.” Katunga Fonterra supplier Peter McIntosh questioned the processor’s motives after it

announced its latest step-up.

Mr McIntosh said this latest announcement was great, but questioned whether it was market driven.

“It’s got to be competitive advantage they’re looking for,” he said.

“No questions Fonterra would prefer to be the leading processor in Australia.

“We are supposed to be naive enough to accept that this is simply a market-driven variation in price?”

Mr McIntosh questioned whether it was in the industry’s best long-term interests to see Fonterra take advantage of the situation with Murray Goulburn and press for commercial dominance.

However, he said he was happy to accept Fonterra’s price offer, arguing if it benefited suppliers in the short term, it was not a bad thing.

United Dairyfarmers of Victoria president Adam Jenkins welcomed the price step up as positive in “returning cash back into farmers’ pockets”.

BSC agreement to be changed THE BONLAC Supply Company and Fonterra

are working on establishing a new farmer representative model, and will replace the current BSC agreement.

BSC chairman and Echuca dairy farmer, Tony Marwood, said the supplier group has begun to change the way it works with Fonterra over the last 6 months.

He said the change was made to ensure suppliers’ views form a greater part of the bimonthly milk price discussions.

The BSC agreement began in 2005, after Fonterra took total control of the Bonlac cooperative, and was due to expire in 2019.

The agreement includes the clause that the farmgate milk price could not be less that that offered by Murray Goulburn.

“BSC no longer sees the current Benchmark Agreement against the largest Victorian processor Murray Goulburn as appropriate in today’s

Australian dairy market,” Mr Marwood said.

“Our involvement with Fonterra on this most recent price review is just one of a number of steps BSC has underway in progressing towards a new and improved farmer representation model.”

Fonterra announced a 20¢/kg step-up, paid from July 1, less than a month into the season.

Mr Marwood said the step up was an important step in helping to restore supplier confidence and the profitability of their businesses.

“Whilst there has been no increase to the top end of the end of year forecast range of $5.80, we are very pleased with Fonterra’s willingness to step up this early in the season,” he said. ”It’s critical to our cash flows and profitability that we not only receive the best possible price that is reflective of the market, but that we receive it as early as possible.”

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“And that also sends a signal that the global market is becoming more stable and in balance, which is good news for farmers,” Mr Jenkins said.

But Mr Jenkins said the step-up remained market driven, and stressed the importance in the farmgate milk price needing to reflect market prices.

“We don’t want to get too much divergence from that,” he said.

Mr Jenkins remained confident the latest development did constitute a fair reflection of the market.

He described such welcome and timely price improvements as incremental steps in rebuilding trust with suppliers.

“I still think there’s a long way to go, it’s a small step forward,” he said.

“It will be over a number of seasons we see trust and confidence come back into the supplier base.

“Signs are looking much firmer than 18 months ago.”

DAIRY NEWS AUSTRALIA AUGUST 2017

6 // NEWS

Farmers fail to capitalise on ag tech AGRICULTURAL TECHNOLOGY is rapidly developing but the current uptake of ‘sensor technology’ among Australian farmers is limited, according to a report by agribusiness banking specialist Rabobank.

Drawing on insights from 1000 farmers across Australia, the recently-released report, Does sensor adoption make cents?, says the use of sensor technology remains modest.

Questioning farmers across a wide range of regions, production sectors and operation sizes (during its regular quarterly survey of rural sentiment), Rabobank found less than a quarter (23 per cent) were using sensor technology — such as drones, moisture probes and irrigation monitors, as well as yield mapping and electronic identification (EID).

Report author, Rabobank agricultural analyst Wesley Lefroy, said there are “clearly barriers to adoption that are holding back the farm sector from receiving the value promised by digital agriculture”.

“For many farmers, the value proposition (or return on investment) for many sensor technologies simply isn’t articulated clearly enough for farmers to determine they can generate a profit from it,” he said.

Mr Lefroy said the uptake appeared to be higher amongst larger farm businesses, with the survey finding large farms (with incomes above one million) to have the highest uptake of sen-

sors at 57 per cent — compared with a 10 per cent uptake in farming businesses with incomes below $300 000.

The highest rate of sensor adoption is in the cotton industry (78 per cent) and the grains sector (48 per cent), while adoption rates were

limited in dairy (20 per cent), beef (10 per cent) and sheep (12 per cent) — with these sectors generally having a higher proportion of smallscale producers.

Mr Lefroy said the significant cost, time and knowledge needed to extract value from some

Only 20 per cent of the dairy industry are utilising sensor technology, which includes drones, moisture probes and irrigation monitors.

Wes Lefroy

livestock orientated technology was limiting uptake.

The survey found less than 70 per cent of those using the technology were applying the sensor-generated data to support farm decisionmaking, while less than 40 per cent were converting the data into profit.

In order to “close the gap” so farmers fully understand how to use the data and generate profit from it, there are two main issues that need addressing, he said.

“At the farmgate, there needs to be an increased emphasis on having adequate technological resources, and this goes beyond software and hardware management, as farmers also need to have the skills to analyse the data.

“However, for farmers to make this investment, in both time and money, the value proposition of using this technology needs to improve,” he said.

“Tech companies have a big role to play in this, to ensure farmers can easily use the data to assist with decision-making, so ‘after-sales service’ is critical.”

Mr Lefroy said in the age where farmers are generating more and more data, the ownership of data and privacy issues were another concern, while many agricultural producers also lacked the technological infrastructure and connectivity required to fully utilise farm management technology offered by vendors.

In Brief Australian Dairy Conference in Melbourne

Dairy Australia Board nominees GIPPSLAND FARMER Graeme Nicoll, Fish Creek, and south west Victorian farmer Tania Luckin, Heywood, have nominated to fill the vacant positions on the Dairy Australia Board at November’s AGM. Graeme was appointed to the DA Board earlier this year to fill a casual vacancy. He served on the Board of the GippsDairy Regional Development Program for five years and was Chair of that Board for two years.

Correction

Tania served on the Bonlac Supply Company Board from 2014 — 2016 and is currently a member of the Board of the WestVic Dairy Regional Development Program and a member of the Dairy Industry Advocacy Review Team.

Dairy Australia invited applications for the vacancies earlier this year. An Industry Selection Committee conducted the formal process leading to the recommendation of the two candidates to the Dairy Australia Board.

THE AUSTRALIAN Dairy Conference (ADC)

will be held in Melbourne next year.

ADC President and Tasmanian dairy farmer Ben Geard said Melbourne was a central location for Victorian dairy farmers, while the central city venue would be just a short taxi ride from the airport for interstate delegates.

The conference will to be held February 13–15 at the Pullman Hotel, Albert Park.

The farm tours will be held in Gippsland two days before the conference starts.

Northern Victorian dairy farmer Scott Fitzgerald will chair the programming committee.

The conference program and details will be released later in the year. For more information visit http://www.australiandairyconference. com.au/

In the article ‘Fair pricing aim of new Code of Practice’ in the July edition of Dairy News Australia, it was stated that ADIC Interim Chair, Terry Richardson, was also a Director of Warrnambool Cheese and Butter. This was incorrect. Mr Richardson is no longer a Director of Warrnambool Cheese and Butter.

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DAIRY NEWS AUSTRALIA AUGUST 2017

NEWS // 7

Joyce caught out on water WATER USE in the Murray-Darling Basin will be scrutinised in an independent review following allegations of water theft in NSW, the Federal Government says.

The basin-wide review of compliance with regulations governing water use follows allegations in an ABC Four Corners report that billions of litres earmarked for the environment have been diverted for cotton irrigation in NSW. The Turnbull Government says it will seek the basin states’ agreement for an independent examination by the Murray-Darling Basin Authority of whether state laws, water licence conditions and statutory instruments are appropriate and being met.

It will also look at the adequacy of water measurement and monitoring arrangements, and whether governance arrangements are strong enough to prevent water theft or misuse.

“Strong compliance regimes are just as important for irrigators as they are for the environment and basin communities,” Prime Minister Malcolm Turnbull and Agriculture Minister Barnaby Joyce said in a joint statement.

Mr Joyce has been attacked for his description of the Four Corners television program in an informal meeting in Shepparton days after the program was aired.

He described the program as part of a campaign to deprive irrigators of water.

He also told the patrons of Shepparton’s

Australia Hotel that the government had placed the water portfolio in the agriculture ministry to look after rural Australians and to wrest it back off “the greenies”.

Mr Joyce stressed the allegations were only that, at this stage.

“Just like there are cattle thieves, just like there are sheep thieves, there are car thieves,

there are people who break into your house, there are people who steal water, “ he said.

“And if you break the law — and that is an allegation, not a fact, it’s an allegation — if you break the law, then you are going to be dealt with in the same process as any other.”

Australian Dairy Farmers (ADF) said it was concerned about the development of allegations

Barnaby Joyce meets farmers and irrigators in Shepparton last month.

made this past week regarding the misappropriation of water from the Murray-Darling Basin.

Chair of the ADIC Water Taskforce, Daryl Hoey, said there are rules on water extraction and it is only fair to all irrigators and taxpayers that the rules are enforced.

“The allegations on ABC’s Four Corner’s program are serious, and must be independently and transparently investigated to give everyone confidence that water is shared fairly and equitably according to the rules,” Mr Hoey said.

“Notwithstanding the issues raised in the Barwon-Darling River catchment in the northern Basin, we believe the Murray-Darling Basin Plan, overall, is far from broken.”

More than 2000 billion litres of water have already been recovered, mostly in the southern Basin, with improved environmental outcomes already evident five years only after the Plan was signed in 2012.

However, while the Plan is on track to meet its 2750 gL target by 2019, communities are paying a high socio-economic cost as agricultural production declines across some regions.

“The dairy industry is concerned that additional adverse impacts will occur if more water is recovered from irrigators,” Mr Hoey said.

“Any failure to enforce compliance with the rules only adds insult to injury in adversely affected communities.”

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DAIRY NEWS AUSTRALIA AUGUST 2017

8 // NEWS AUSTRALIAN DAIRY GETS GREEN TICK Unilever, one of the world’s largest companies, has renewed its certification of the sustainability credentials of Australia’s milk production for another 12 months.

Australian Dairy Industry Council’s Interim Chair, Terry Richardson, said endorsement from a company like Unilever is a great achievement and reflects the focus that Australian dairy farmers have

for sustainable farming practices.

“The Australian dairy industry is committed to the implementation of actions to support ongoing targets and measures as part of the Australia Dairy Industry Sustainability Framework,” Mr Richardson said.

“We want to ensure that the Australian dairy industry is recognised as sustainable in the eyes of customers around the world so that our farmers and processors can be assured that the industry has a longlasting future.”

In 2013 the Australian dairy industry was the first in the world to be recognised

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The Unilever certification was underpinned by the dairy industry’s Sustainability Framework and reporting progress against similar targets.

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Energy costs could rise 20 per cent DESPITE ACHIEVING dramatic on-farm energy savings during the past five years, dairy farmers face the prospect of a 20 per cent price hike totalling millions of dollars in the cost of electricity and gas to fuel their enterprises.

This is just one conclusion in a report prepared for the Australian Competition and Consumer Commission’s inquiry into retail electricity supply and pricing.

The independent economic analysis, prepared by the Sapere Research Group Limited, was commissioned by the National Irrigators’ Council for the Agriculture Industries Energy Taskforce.

Dairy Connect CEO Shaughn Morgan said the findings “shine a bright light” on complex financial relationships between Australia’s privatelyheld energy producers.

“Sky-rocketing electricity costs mean that Australia was losing international competitiveness for agricultural products and this hit dairy and irrigation farmers hardest,” he said.

“The impact is particularly severe on irrigated agriculture that needed to pump water.

“This impact is analysed closely in a dairy farm energy cost case-study that forms part of the report to the ACCC. “It clearly enumerates how dairy producers are paying twice for energy cost hikes. They pay once at the dairy shed and again at the farm gate in the form of price cuts for their produce.”

Electricity and gas accounted for a significant proportion of costs of dairy production, according to the report.

Dairy Australia has estimated that the total cost of energy for dairy processors was about $160 million a year.

This number was set to rise by tens of millions of dollars as long-term contracts were renegotiated.

Costs are passed back to dairy farmers through a lower farm gate milk price.

Electricity accounted for a significant proportion of a dairy farm’s shed cost, which varied from $17 000 to $40 000 on average per year with a national three-year rolling average $24 200 a year.

In 2012, Dairy Australia, in a response to concerns about the rising cost of electricity, obtained grant funding from the Federal Government to deliver the ‘Smarter energy use on Australian dairy farms’ program whose purpose was to help producers improve their energy efficiency.

The program enabled 1400 dairy farmers, or 21 per cent of the industry, to access personalised on-farm energy assessments, workshops and information resources.

During its five years, the energy efficiency program, average dairy farm electricity costs had risen between 26 per cent and 65 per cent across Australia, with increases averaging 48 per cent nationally.

Around two thirds of the farmers who had had energy efficiency were obtaining the benefits of having identified areas for improvement and were investing in changes.

As a result of this energy efficiency investment, more than half of participating dairies identified significant energy savings that translated into cost savings of up to $2000 per year, 40 per cent made savings of between $2000–$10 000 and 5 per cent — up to $29 000 annually.

DAIRY NEWS AUSTRALIA AUGUST 2017

NEWS // 9

Show Some #dairylove sticks to a positive message COHUNA FARMER Di Bowles has received a there were no rules beyond being positive.

“We’ve stayed very true to the message that highly commended award from the Legendairy Capital Program for her online site, Show Some it’s only positive stuff,” Di said. “We don’t talk #dairylove, which has 13 700 members on Face- about milk price, we don’t have negative photos and we don’t have disagreements. book.

“It’s a safe place to be. We now have a comThe online community was born from the dairy price downturn in 2016 but has a mandate munity — and it is a community — of more than to highlight the positive aspects of the dairy 13 000 people.

“I’m still amazed that daily around 20–30 industry and provide support to those who need people join and we receive around 50 posts.” it.

Di was initially joined Di, a former accounts

by South Purrumbete manager for an insurance “We’re trying to get farmer Cath Jenkins as an company in Melbourne people to think in a administrator of the page, who married Cohuna positive mind-set and but with numbers growing dairy farmer Gary, quickly and the workload increasconverted to the lifestyle, supporting each other.” ing, Jessa Fleming and and started the Facebook group after seeing the online response to the Paul Kent also came on board.

The page also provides mental health support price drop.

“I could see people being negative but also a for farmers.

“There are a couple on it who openly say if it large group of people asking what they could do wasn’t for the page they might not be around,” to help,” she said.

“Some people were asking why are you dairy Di said. “People can say they’re not coping and farming when you’re not getting paid properly? they get real-time interaction and peers checking I’d been using the hashtag ‘#lovewhereIlive’ and on them. For me that’s the best thing out of the thought I really love being a dairy farmer and I whole group.”

Membership consists of about 40 per cent should start a Facebook group.”

The initial push was to promote purchasing farmers and 60 per cent consumers or non-dairy branded over plain labelled dairy products, but people. About 60 per cent are Australian, 10 per

One of Di Bowles’s cows photobombed this selfie.

cent from New Zealand and the rest from overseas.

“I’m so pleased we were recognised for being a Legendairy community — not a town but a community. It really challenges the idea of community — in my definition it’s a group of people who work together.

Punching above their weight BEAUDESERT — the 2017 Legendairy Capital of the Subtropical region — has 34 dairy farms, or 8 per cent of Queensland’s total, but with 47 million litres of milk per year, those farmers produce 11 per cent of the state’s total milk production.

“That shows how great our farmers are,” says Lisa Harrison, a member of the local online Daughters of Dairy Farmers group which is celebrating the town’s success.

The Daughters of Dairy Farmers was formed by Lisa, Rachel Rohan and Jo Mollinger to raise awareness of the challenges dairy farmers face and to encourage consumers to

buy branded milk.

Their campaign to buy branded milk to support farmers has struck a chord and helped to breakdown stereotypes about farmers.

Lisa said the new title has given dairy farmers and the community a lift.

“People are so excited to have that recognition,” Lisa said. “It adds to the town’s reputation for agriculture and put us on the map.”

With the 2017 Legendairy Capital grant, lifesize cutouts of cows will be created and presented by farmers to businesses and schools.

The artwork will be launched at a Legendairy event this month.

Lisa Harrison and Beaudesert dairy farmers celebrate being named the Subtropical Legendary Capital.

“We’re trying to get people to think in a positive mind-set and supporting each other. Back in the old days farmers helped each other all the time. Because we’ve gotten bigger we’ve become more isolated and don’t have as many opportunities to help people. It costs you nothing to give people a kind word, a smile or a like on a photo.”

DAIRY NEWS AUSTRALIA AUGUST 2017

10 // NEWS

WA processors must improve WAFARMERS DAIRY Council President

Michael Partridge has called on processors to recognise the level of investment dairy farmers have in the industry, and to improve their communication.

Mr Partridge was speaking at the 2017 WAFarmers Dairy Conference last month.

“There should always be an expectation that farmers have a home for their milk, and better

Dairy Council President, Michael Partridge, with WA assistant agriculture minister, Darren West.

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communication is needed between processors and farmers to ensure this happens, along with fair and equitable contracts,” Mr Partridge said.

“Farmers have as much invested in the dairy industry as processors do, however not all processors recognise this, and this needs to be reflected in the way we do business with each other.”

Mr Partridge also said flattening the supply curve can come at a significant cost to the farmers, and needs to be reflected in price.

He said a presentation from Dairy Australia’s Neil Lane showed that Western Australian dairy farmers are as efficient and comparable to anywhere else in the world.

“It’s important to recognise our farmers’ capabilities,” Mr Partridge said.

His comments follow revelations from the ABC last month that new contracts issued by Brownes Dairy, would see some farmers fined for under-supplying milk.

The clause would see a fine imposed of five cents for every litre not provided to Brownes, if the farmer meets less than 90 per cent of their monthly quota, according to the ABC. Brownes did not renew contracts with four farmers last year, forcing former dairy farmer Dale Hanks out of the industry.

Brownes has since said the clause to fine farmers for under-supplying would not be included in new contracts.

Delegates at the WAFarmers Dairy Conference.

FNQ farmers earn reprieve PARMALAT WILL purchase milk from rival processor Lion to supply Far North Queensland hospitals, instead of transporting it from its southern Queensland plants.

The Cairns and Hinterland Hospital and Health Service awarded its milk tender to service all of its health facilities to Parmalat and not the Lion-owned Dairy Farmers.

It would have proved detrimental to the region’s dairy farmers, who supply Lion. The contract was for an estimated 8 million litres of milk a year.

Parmalat will now buy the milk from Lion after experiencing a backlash.

Forty local farmers supply the Malanda factory.

DAIRY NEWS AUSTRALIA AUGUST 2017

OPINION // 11

Custard lovers unite OFF THE SHELF MADELEINEBRENNAN

Speaking of wholesome, what do you make of chocolate custard? Too devilish?

For me it brings back many childhood memories of Yogo, and I’m a bit of a stickler for keeping it simple when it comes to flavours.

I like to eat chocolate. And custard. But do we need to combine them?

It’s the same reason it nearly blew my tiny mind to see that Sara Lee has a Rhubarb and

Custard Flavoured Ice Cream. Wowsers!

I hope I’m not alone when I say my favourite way to eat custard is straight from the regular vanilla 1 litre carton, when no-one is looking, and drink it like milk.

The carton says there is 10 servings per pack but I beg to differ.

Want to make fried custard? Visit www.sbs. com.au/food/recipes/fried-custard-leche-frita

AAH CUSTARD … Such a dear friend.

It’s got to be one of the most versatile of substances on earth.

Like Eliza Doolittle, it’s essential form is lovely and common but dress it up with bit of fanciness and it can turn into the fairest of ladies — Crème Patissière anyone?

Just think of all the ways we enjoy it: on its own, with apple crumble, in a vanilla slice, baked in the oven, doused in syrup a la crème caramel or dressed up with a brittle crust of burnt sugar for crème brulee.

Did you know the Spanish like to fry it into a delicious golden ball of gooey goodness?

Being of the generation used entirely to convenience and supermarket choice, it took a long time for me to actually make a custard of my own.

I know what you’re thinking: the shock, the horror, the lazy!

Don’t get me wrong, as a child I many a time sampled by Grandmother’s homemade custard.

Particularly when it came surrounded by puff of pastry. (She never called them profiteroles mind you, they were just ‘cream puffs’).

Nan’s custard was how I learned that custard was in fact closer to white in colour than yellow — and that milk was more than just a great accompaniment to cookies.

These days, even my mother-in-law, a CWA stalwart, buys her custard.

Every Christmas, and most weeknights, she brings out the Brooklea UHT 1 kg carton from the pensioner shopping haven (also known as Aldi) and she finds it does perfectly well as an after dinner treat with some tinned peaches.

My own — and still first and only — attempt to make custard was doomed to failure as I realised half way through heating the milk that I didn’t have any cornflour.

Like a panicked yet slightly cocky Master Chef contestant I decided I would try gluten free plain flour instead.

I stirred and stirred, I may have even tried a spell at one point, but the milk failed to thicken and I was left wishing I had made an omelette instead.

Like most dairy products these days, custard is going through a bit of a makeover.

There’s custard to pour, custard to dollop, there’s even double thick varieties, which means double the decadence.

Snack packs and pouches, cups and cartons — there’s convenient packaging for whenever the custard urge strikes.

Many tricks are tried to lure the likely custard lover, such as the bespoke-sounding Madagascan Vanilla Bean Custard from Wicked Sister which has flecks of the vanilla pod throughout.

Lovers of the Paul’s Farmhouse Gold Milk may have already tried the Paul’s Farmhouse Gold Custard, which has less fat and sugar than the Double Thick variety and as a result has a more wholesome taste and lends itself to larger serves.

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DAIRY NEWS AUSTRALIA AUGUST 2017

12 // OPINION RUMINATING

EDITORIAL

Visa changes must be refined

MILKING IT...

What’s the hurry?

We feel something may have been ‘lost in translation’ when reading a report recently on NZ vet Barney Askin discussing cow lameness.

Askin told farmers the best thing they could do to ease lameness was better management of cows moving to and from the shed while being milked.

We loved this totally un-PC quote: “They say the best person to get the cows in is a smoker.

He ambles and is no hurry.”

However, the next quote made the mind boggle: “They should walk at 2.7 kilometres an hour, that’s 45 metres a second.”

45 metres a second!

You’d need Usain Bolt to bring them to the dairy at that speed.

We’re pretty sure he told those present 45 metres a minute.

NZ follows Australia’s lead Dairy farmers across the world hope that their processors are investing in innovation to create new markets and increase demand for their product.

Those in New Zealand would be disappointed to see their processors resorting to marketing gimmicks.

Taking a leaf from the playbook used in Australia many years ago, Goodman Fielder is marketing its Meadowfresh blue top milk as containing ‘no added permeate’.

Sound familiar?

Not to be left behind, Fonterra has followed suit.

Fonterra is said to be dismissive of its major rival’s new permatefree push, but clearly not enough to take its chances with its customers.

Could you repeat that?

Would you like a guide to translate what your cows mean when they bellow? Or do you reckon you’ve got the gist?

PhD candidate at the University of Sydney, Alexandra Green, is studying cattle bioacoustics, or as she says, “cow-moo-nication”.

Alexandra is recording the vocalisations of dairy heifers and trying to work out what they are saying in response to different farming contexts.

Essentially, early work shows cows will become more vocal when they are stressed or excited, but there is much more to learn.

We’d be surprised if the study turns up anything that Australian dairy farmers don’t already know but it promises to be an interesting journey.

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brettm@dairynewsaustralia.com.au Editor Stephen Cooke

0427 124 437

FINDING and retaining good employees will be harder if the Federal Government maintains its current position on 457 visa reforms.

It’s a frustrating position for the industry to find itself in.

Intuitive, hard-working employees are difficult to find and many farmers have gone to great effort and cost to employ skilled workers from overseas.

The Government’s proposed changes to the dairy sector could lead to roadblocks for farmers and also the processing industry.

The 457 visa, which the Government and the Opposition say have been exploited by employees, particularly in the fast food sector, will be replaced by two new temporary skills visas — a two-year visa and a four-year visa “targeted at higher skills.”

The Government will also cut the number of occupations available for a two-year visa.

The Australian Dairy Industry Council has gone into bat for the industry since the Government’s announcement in April and will have its work cut out for it right up until March, when the visa reforms will be finalised.

On July 1 it found its lobbying has had some impact, when five occupations in the processing sector were reinstated to the skilled occupation lists.

However, the ADIC said ‘Dairy Cattle Farmers’ can only be employed for two years (with capacity for renewal onshore once only), with no pathway to permanent residency. An extra levy has also been applied, which would be paid by farmers.

The changes will have a significant effect on the industry if they go unchallenged and unchanged.

The ADIC is working hard but the Coalition’s junior partner, the National Party, must stand up for dairy farmers and the wider agricultural workforce and show Prime Minister Turnbull and Immigration Minister Peter Dutton what a modern agricultural business requires.

Jobs on dairy farms can’t be filled by contacting Centrelink. The correct attitude is required.

The 457 visa program has been vital to the industry and changes in their current detrimental state are an added burden the Government must remove.

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Stacey Taylor Brendan Cain

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.

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DAIRY NEWS AUSTRALIA AUGUST 2017

OPINION // 13

Now is not the time for short-term thinking modity prices.

Other companies in Ireland wishing to procure milk must always pay as well or better than the cooperatives to secure supply.

FARMING IS a long-term business.

The UK dairy industry does not have this I am concerned that the recent announcement of opening milk prices has resulted in some very benchmark and so the processors pay out a lower short-term thinking amongst some of my fellow per cent of their total revenue to farmers.

As with many things, these differences may milk producers.

A long-term business such as farming requires seem to be small to begin with, but over multiple businesses, over multiple years these small differthinking on a similar timescale.

If we are thinking through a decision to change ences compound.

The dairy industry in Ireland is vibrant and to a different milk processor, we must also consider the motivations of that processor and the growing as farmers look for further opportunities to supply an increasing world population with longer term consequences of that decision.

The majority of milk in Australia is processed high quality dairy products from a low cost base.

On the other hand we see a UK industry that by companies who are in business to make a profit by ensuring that they maximise gap between their has been systematically crushed by multinational revenue and their costs. One of these costs is milk corporations who consistently pay milk prices that are lower. purchased from farmers.

I think we are at A well-managed and an important point well-supported dairy We are often told that for our industry. cooperative has a different The new leadmotive. They are in busi- farmers are price takers but ness to minimise the gap this is only part of the story. ership team at Murray Goulburn between revenue and costs have been given by paying the highest milk price possible, in order to return to the farmer the the task of fixing the issues that have beset the highest possible proportion of their sales revenue. organisation over the recent past and charting a This difference between these motives is night course to a long term sustainable future. They actually need our support to do this. and day.

The degree to which they achieve this will This is highlighted by differences between the dairy industries in the UK and Ireland. Ireland has affect all dairy farmers in Australia, not just a very good climate for low cost milk production. MG suppliers, as it ensures that the benchmark Ireland exports 90 per cent of its milk due to a milk price that all companies must pay to secure relatively low local population (4.6 m people) and supply is a higher proportion of the revenue than Irish farmers have a high level of farmer owner- these companies would naturally wish to pay, given their motivations as corporations serving ship in the industry beyond the farm gate.

On the face of it, the UK has many advan- the interests of their owners.

We are constantly told that farmers are price tages — an ideal climate for low cost milk production and 65 m wealthy consumers right on takers. This is only part of the story, as we have seen in the UK vs Ireland examples. Farmer owntheir doorstep.

Much of the UK dairy production is consumed ership beyond the farm gate determines how large domestically. However, UK farmers have a low a proportion of the returns from the market farmers actually see. level of investment beyond the farm gate.

It is vital for our long-term prosperity that The high level of Irish farmer investment in their milk processors ensures that farmers cap- farmers capture the highest proportion of the ture the maximum proportion of their milk total revenue available.

This is why the most prosperous dairy indusrevenue, regardless of currencies and world comMATTHEW GUNNINGHAM

Matthew Gunningham

tries around the world are all underpinned by well managed and well supported cooperatives — they ‘keep the other companies honest’.

No matter how well intentioned these other companies may be on milk prices, their incentives and motivations cannot fail to pull them in another direction.

A long-term business such as dairy farming requires long-term thinking.

Any decisions to change milk purchasers based on a) projected figures, and b) only for the coming season, is trying to solve a problem across two completely different time horizons using the same thinking. This does not work.

I was farming in the UK in 1994 when the milk market deregulated and it took the dairy companies only two years of offering slightly above the going rate for milk to attract enough farmers away from the cooperative and weaken it to a point of irrelevance.

These companies have had the upper hand for

the past 20 years and UK dairy farmers have been the losers compared to their contemporaries in neighbouring countries.

None of this is easy stuff. There is not a single quick solution.

However, with support from suppliers and a systematic approach to grinding away at the problems, the new leadership team have made a positive start at tackling some difficult issues.

We are already on the path — now is not the time to turn away.

I think it’s as simple as asking yourself: would you prefer a better price this year followed by a worse price forever, or are you prepared to stay the course, recognising the natural motivations of the other industry players to pay less.

Now is the time to apply long-term thinking to ensure brighter future prospects for your own business and the industry as a whole.

• Matthew Gunningham is a dairy farmer at Mawbanna, Tasmania.

Focus on our own plans, not China’s WAYNE JOHNSTON

THE LATEST growth figures for China released recently caused media fanfare about what it would mean for Tasmanian agriculture and also Australia more broadly.

This interest is generated by the significant increase in Chinese investment in Tasmanian agriculture, particularly in the dairy and horticulture. People are concerned that when China sneezes, Tasmania and Australia will catch a cold.

The reality is that this cliche comment does not reflect. While China may be experiencing some level of slow-down, that is the expectation and focus of the Chinese government to ensure

that their economy does not over heat. This does not necessarily mean a corresponding slowdown in Chinese trading partner’s economies.

We need to keep in focus that China has historically had very high and consistent GDP growth over an extended period. The current target of somewhere in the order of 7 per cent is a figure that every other economy in the world can only dream of. By any standard GDP growth in this order is not only substantial, but demonstrates a very healthy economy. As a result, Tasmanian agriculture has nothing to fear from these latest figures.

It is obvious that China will still seek to invest in Tasmania. Any such interest only serves to underscore the confidence that the Chinese

have in Tasmania’s agricultural future.

If we look to the future the predictions are that by 2030 China will be the largest economy on the planet. I often hear concerns raised around China and the purchase of agricultural land. The reality is, that if we are to have a reasonable debate around foreign ownership, we need to be clear that countries such as China are down the list of which countries owning a stake in the Australian economy. The United States and Britain far outweigh most other countries.

The real question is whether foreign ownership, irrespective of its source a fundamental and structural problem for Australia’s future?

What we should be doing as a country and a State is moving our focus from foreign own-

ership to ourselves. We cannot condemn other countries for having a plan and a vision for how they will feed their populations in the decades to come.

What we should be saying, and the questions we should be asking are, where is Australia’s plan for the future? Where is our vision and plan to feed future generations?

It may be that part of that strategy would be to ban and or restrict foreign ownership.

Equally it could and should be about enhancing Australia’s agricultural system, and ensuring that Australian farmers are not only profitable, but sustainable for the long term.

• Wayne Johnston is Tasmanian Farmers and Graziers Association President.

DAIRY NEWS AUSTRALIA AUGUST 2017

14 // MARKETS

Australia caught in game of currency roulette WHILE THE world market for dairy products is in much better shape going into the 2017–18 southern production season, there are still a few risks that may weaken milk prices for Southern Australian dairy farmers.

One of those is the value of the Australian dollar. Our own estimates of the 2017–18 farmgate price are based on an important assumption that the local currency will average US$0.76 for the season.

A few short weeks ago that looked a pretty safe number, but recently the A$ has soared, back past US$0.80 for a short while, settling back below that at the time of writing.

The exchange rate, as farmers never tire of hearing, is fairly critical in the scheme of things.

A 1¢ shift in the A$ against the US, with all else being equal in theory, affects the value of milk at farmgate by 10–12¢/litre.

Lately much of the strength in the Australian So if there is a permanent 4¢ hike in the dollar, and nothing else changes, that could punch a big dollar seems to be due to weakness in the US curhole in full year expectations, potentially meaning rency, which has also fallen against the Euro and even the Japanese Yen. In 2017, after the election opening prices remain as closing prices. of Donald Trump Of course, as the self-prothat depends A 1¢ shift in the A$ against the US, claimed reformist, on individwith all else being equal in theory, this is not how the ual company script was written. exposures to affects the value of milk at farm Trump was currency in gate by 10–12¢/litre. going to take the product pricing and it depends what happens to other cur- shackles off the US economy, spend big on infrastructure and fix the big bad budget deficits. The rencies. I’ll come back to that.

Why has our dollar surged? Well our business US dollar was supposed to strengthen. It wasn’t is not skilled in the analysis and forecasting of cur- always clear how this was going to help boost US rency movements. But we watch developments trade.

It’s done the reverse. The Trump adminisand understand the strong influences, so we can understand the upside and downside risks that tration chaos appears to be worsening, with an lie ahead. So this is my unskilled, layperson view unhinged President more besotted with media of what seems to be out there driving the dollar. opinion, Twitter likes, his hair, and undoing any-

thing Obama did, rather than making sound decisions and listening to experience, ensuring few of his reform agenda items get up.

The financial markets have lost faith in the ability to restructure the US balance sheet and finance big spending plans. As a result, the US dollar has slid more than 10 per cent against the Euro since early March.

Europe’s currency is staging its own revival in the process with a brighter outlook for the big economies in the bloc, and more optimism about leadership with the outcome of Dutch and French elections, where right-wing isolationists were rejected by the people.

When we come back to our dollar, there’s always talk of the influence of “relative interest rates” — the difference between the cost of money in Australia versus the US. With money markets figuring there is a smaller chance of interest rate rises in the US, and ongo-

FRESH AGENDA STEVE SPENCER

ing heat in the property market in Australia, this helps talk up the value of the local currency.

More money would therefore flood into the A$ to get the benefit of higher interest rates compared to the US and other low-interest economies.

This doesn’t always hold — the other big variables that affect the value of the A$ are commodity prices for metals and, in particular, iron ore, due to the importance of those commodities to export earnings and Australia’s trade balance ….even though the mining boom is over, right?

The chart on this page shows the close tracking of the value of the A$ and iron ore prices in the past 4 years. There is clearly something in that.

We can’t look at US v Australia currency rates in isolation. In some dairy commodities, such as cheddar cheese, butter and skim milk powder, where the volume of EU exports is significant, European wholesale prices (expressed in Euros) strongly influence world market prices against which other exporters compete.

With a stronger Euro, the US$ value of prices sought by European exporters will rise, driving higher prices in the trade — and hence a rising A$ may offset only some of the gloss from those gains.

That won’t always work — it depends if another big exporter such as the US itself or New Zealand gets aggressive and seeks to buy greater market share.

Where is the dollar going? Most currency experts sitting in big banks and finance houses tip the Aussie to fall against the US in the coming year.

Some see it falling hard into the low 70 cents territory, and staying there. If that happens, it could be a boon for Australian dairy farmers in the next couple of seasons, sorely needed to improve farm cash flows … and confidence in this industry.

• Steve Spencer is a director of www.freshagenda.com.au

Surging dollar hurts commodity prices THE COMMODITY Milk Value (CMV) lost ground in July. It was a mixed month for commodity prices — but it’s been the surging Australian dollar that has done the damage.

Butter edged to new record heights, as global shortages continue, adding US$50/t to end the month at a staggering US$6050/t.

Despite the high prices demand has remained resilient, however the latest GDT event — where fat prices retreated significantly — might be the early signs that the butter bull market has peaked.

It’s unlikely to retreat too far unless there are significant swings in New Zealand’s spring production towards butter and SMP and away from WMP. SMP remains in the doldrums, shedding US$125/t to US$2,025/t at month’s end. EU inventories continue to weigh on SMP values, and as a result of these dynamics, the ratio of protein to fat fell further during July to 0.84 from a long-term average of 2.48. Importantly for Australia’s export returns, spot prices for cheddar were steady, increasing US$75/t to $4,050/t over the past month.

WMP was steady despite growing expectations of a good season across the Tasman — holding at US$3,100/t at the end of July.

Based on these movements in major commodity prices over July, the commodity milk value lost $0.30 kgMS — finishing the month at $5.65 kg/MS. Looking ahead, downside risks continue to outweigh the upside for the CMV with production growth and more product available in the second half of the year from Europe and NZ. Much will depend on the strength of the Kiwi spring, with the EU likely to be in fairly good balance as domestic cheese demand is expected to absorb much of the milk growth.

The Australian dollar trended 8 per cent higher during July, despite Reserve Bank efforts to talk it down.

About the Commodity Milk Value Freshagenda’s approach to assessing milk price outlooks recognises there are two components of milk prices paid by manufacturers in southern Australia — a commodity value of milk, which reflects the returns from the global market for dairy products, and an additional value captured on top of base commodity returns.

The commodity milk value (CMV) measurement and outlook is based on spot prices and Freshagenda’s forecast fundamental value of major commodity products (cheese, butter, whole and

skim milk powder), based on our rolling outlook for the global dairy trade balance.

Projected product values are converted into a value of milk at farmgate using the industry’s product mix, deducting conversion costs, and converting to Australian dollars per kilogram of milk-

solids.

Between 2011–12 and 2015–16 the CMV has averaged over 80 per cent of final farmgate returns — ranging between 70 per cent and 95 per cent of the final average price paid by manufacturers in southern Australia.

DAIRY NEWS AUSTRALIA AUGUST 2017

MARKETS // 15

Production falls most severe in northern Victoria and SA rt demand remains strong

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Dairy NewS aUSTraLia june, 2012

agribusiness // 17

cents/litre in March (AUD 41c/L) to 28 Euro cents/litre (AUD 36c/L) in April.

Profit margins are under pressure in the US, and in NZ Fonterra has announced the final payout for the 2011/12 season has been cut from NZ$6.75-$6.85/kg MS gLobaL impacT to NZ$6.45-$6.55/kg MS (AUD$4.96GLOBAL IMPACT JohN DropperT LAURIE WALKER $5.04).

Effectively, global dairy markets are AUSTRALIAN MILK production for the 2016– rebalancing. Lower prices will both Shifts in private label contracts and pro17 season totalled a little over 9000 million litres slow production growth and stimulate cessor rationalisation have seen compared to the 9680 million litres milk produced demand, and as this occurs we will ulticompanies adjustseason, their intake during the 2015–16 a fall ofrequire6.9 per cent. mately see a price recovery. Key factors ments andthe pricing meet Broadly, seasontohas beenthe onechanggradual and to watch on the global scene will be the ing demands of a highly pressured retail unsteady recovery, with monthly milk volumes rate at which milk production overseas marketplace.

Lower contract and down more than 10 per cent atprices the beginning slows in response to lower prices, the ofa lack the season. of alternative supply opportuniOver the course of the season, these milk ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries volumes have been slowly and unevenly is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of limited manufacturing capacity.

Despite closing the gap, as can be seen in the chart below April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value these challenges, the underlying domes(Figure 1). Volumes final per-capmonth of the data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. tic market is stable, for withthe steady 2016–17 season were up 2.2 per cent on last year.

Demand for exported dairy prodita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced The changes in milk volumes have been ucts remains a positive and will conpopulation providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. uneven, with the predominantly drinking milk This situation has seen the scales tinue to grow with the middle class in tainty beyond the current adjustments. production is widely expected to finish states of Queensland and Western Australia fintip in favour of buyers in dairy mar- large emerging markets such as China, this season up 10% on last year a huge In the seasons following the 2008 ishing the season up 1 per cent and down 1.9 per influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing financial crisis and subsequent com- market cent respectively.

Northern Victoria finished the year at around 1,750 million litres compared 2,090 million ing steadily over recent months. Butter urbanisation - and also in conjunction is exported.

Argentina is alsotoenjoymodity recovery, farmers Whilst price these states face their own in unique litres the year before, a fall of 16.5%. Western prices are down some 30% from their with global population growth. Locally, ing solid production growth, but a sigexport-oriented regions have seen solid from challenges, they are somewhat separated Victoria and Gippsland finished the season down 4.2%gap and 4.0% respectively. nificant supply in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a global growth chart) - withsouththe moresupply processing and(see export-oriented ern milk pool, and consequently were not much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perhigher-cost competitors in the Northwestern cent, whichbeen contrasts with ainhighpoint 41 per production in processing Cheese directly aff ected by the late season price-step capitaofconsumption.

Whilstforthe dairy Victoria and Gippsland subsequently reduced America.capacity by Warrnamboolhave ern Hemisphere amongst those expand- ing South were broadly similar, cent in 2001–2002, while Gippsland and westand Butter and the new Union Dairy Company downs.

Despite wider economic uncer- most exporting regions. The average market is currently a challenging placehowever, even after siging output as their margins increased. nificant falls, those same costs of production in ern Victoria increasedtotheir facility in Penola it seemsresilient that beyondbasic recent The most severely aff ected states have been be ashare seller,ofall signs indicate that balfarm gate price forhave milkboth in France demand has remained This season, favourable weather con- tainty, northern Victoria were still considerably higher. milk production. headlines, there will be an ongoing struggle to Victoria and South Australia, down 8.0 per cent ditions have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. incremental change in milk production (year-on-year)

and 8.2 per cent respectively.

Furthermore, within these states performance this season between regions has been fairly divergent.

In South Australia, most of this decline was due to lower volumes in the southeast around Mt Gambier, which accounts for over half of the state’s production.

Volumes out of Mt Gambier were down over N-Australia-New 11 per cent to around 270 million litres, while the nd FTA (AANZFTA). rest of South Australia’s milk production was by otectionist sentisignifi cantly over agricultural less, around 4 per cent.

Given is rife and grow-the smaller milk pool available in southeast South Australia, the recent increases

secure supply and maintain a presence in the region.

Within Victoria a similar divergence can be seen in the difference in performance between northern Victoria, and the west coast and Gippsland regions (Figure 2).

Northern Victoria finished the year at around 1,750 million litres compared to 2,090 million litres the year before, a fall of 16.5 per cent. Western Victoria and Gippsland finished the season down 4.2 per cent and 4.0 per cent respectively.

With the significant fall in volumes out of northern Victoria, the region’s share of Victorian milk production has fallen to around 30 per

The gradual drift towards higher cost proPart of this may be explained by relative costs of production between the regions. Lower input duction systems in northern Victoria, with extra costs in the form of cheaper hay and feed grain, risks associated with irrigation and feed prices fertiliser and temporary water prices throughout pose an ongoing challenge to stabilisation and profitable growth of the industry in the region.

2016–17 provided some relief to farmers.

Coming off an extremely dry June, and with Many producers were intent on repairing their balance sheets, and so deferred as much forecasts suggesting a dry spring is likely temporary water prices, as well as prices for hay and on farm expenditure as they could.

Preliminary data from the Dairy Farm Moni- feed grain have all started to move upwards.

Whilst the global market looks more balanced toring Project suggests that the cumulative effect of this has been to lower costs of production in than any time in the last two years, these loomsome cases by as much as $1 kg/MS across Vic- ing seasonal conditions may yet curtail the 2 per cent – 3 per cent recovery in milk volumes DA toria.

After these significant improvements, costs of has projected. to provide portion pack austraLian FooD

sia FTA benefits dairy Freedom

ross the globe, so context it is pleasstralia has managed ge an agreement Malaysia that has with some sensiricultural issues fectively covered by FTA,” says Fraser. hile under the FTA agreement of Australian agrie’s key interests riffs bound at zero, and rice are two sechere incremental t access improvehave been negoti1. nder theFigure Malaysian

his trade deal was

Sealing the deal: Malaysian trade minister Mustapha Mohamed with Australian counterpart Craig Emerson after signing the deal.

ers through streamlining of rules-of-origin declaration processes and improved marketing arrangements for certain commodities.

The Malaysian market is worth about A$1 billion in Australia agricul-

Despite the completion of this agreement, much remains to be done for Australia’s farmers to tap into the full potential of the Asian region and beyond.

He says the NFF will now throw its attention

but also through technical or so called ‘behind the border’ restrictions.”

The FTA was signed on May 22 in Kuala Lumpur

by Australia’s Trade and Competiveness Minis-Figure 2. ter Craig Emerson and his Malaysian counterpart

Foods plant targets Asia company Freedom Foods Group Ltd is to build a new milk processing plant to cash in on growing demand in Asia.

The plant, to be built in southeast Australia, will be the first Australian greenfields expansion in UHT in 10 years.

Freedom’s wholly owned subsidiary Pactum Australia will run the plant. Some of its products will be sold in Australia.

The company says given Asian consumers’ rising incomes and improving diets, demand there will grow for qual-

(200-330ml) configuration for beverage products.

The NSW location will provide access to the most sustainable and economic source of milk. Pactum has strong links to the Australian dairy industry and will expand its arrangements with dairy farmers for supply of milk. The new plant will increase scope for Australian milk supply – value-added, sustainable and export focused.

Initially the plant will produce 250ml and 1L UHT packs from a process line capable of 100 mil-

DAIRY NEWS AUSTRALIA AUGUST 2017

16 // MANAGEMENT

Bigger not always better STEPHEN COOKE

BIGGER ISN’T necessarily better for Canadian dairy farmer Cregg Nicoll, who is constantly assessing his farm in a bid to find the optimal number of cows and maximise production from them.

The fourth generation farmer’s family has owned the farm near Coalhurst, just west of Lethbridge, in southern Alberta, for 100 years, and are currently milking 350 cows.

Country restrictions prevents them from expanding the size of their herd on their farm.

“We looked at the possibility of starting a new farm over the road, but where I’m at, it’s too big of an investment in my dairy career,” Cregg said.

“In this area, you’re looking at about $10 000 an acre. As long as milking 300–350 cows is efficient and profitable, we’ll stay here.”

The cows are housed on the 500 acre (200 hectare) family farm, of which 250 acres (100 ha) is cropped. They own 900 acres (360 ha) of additional land and lease more. They are completely self-sufficient, growing all their own feed, including feed corn silage, barley silage, alfalfa hay, alfalfa silage and barley grain. They purchase protein supplements.

Cregg returned to the family farm in 1996 after completing university. He became a partner in 1998 and the business was expanded.

“We were milking about 130 and wanted to expand to 250. We built a barn for with 264 stalls, extended the parlour and proceeded to grow the herd.

“As we grew, we found 275–300 was our optimum. We then expanded to 350 to try and increase efficiency. When increases in quota came along, we said, ‘let’s get bigger’.”

The Nicolls increased the herd and installed straw packs (straw bedding) to accommodate cow numbers.

“We became better managers as we increased in size and held that level of 400 milking cows for 12 months. Then we noticed milk was going down, breeding performance was down and culling rates were going up. When you increase cow numbers, you reach a tipping point where marginal returns go the other way. So we made the decision to go down 50 cows.”

They now milk 350 cows, with all cows housed in the barn and all young stock housed outside.

Cows remain in the barn all year. They can venture outside into exercise lots but there is no outside grazing.

Cow groups To maximise production with 350 cows, the herd is separated into four groups — a fresh group (cows with 30 days of milk and lower); a sick pen; a high group and a low group (primarily pregnant cows).

With feed costs making up to 30 per cent of

the total cost of production, the Nicolls have also run high and low groups of cows to save money.

The high group receives a different ration, with higher energy and a little more bypass protein.

This ration costs $8.80 per cow compared to $7.70 for the low group.

Alltech nutritionist Eldon Petherick with Alberta farmer Cregg Nicoll on Cregg’s farm.

All lactation cows receive the Alltech product, Optigen (called Optisync in Australia), a non-protein Nitrogen (NPN) source that enables improved feed conversion through the provision of nitrogen for the rumen microbes.

Optisync drip feeds nitrogen consistently over

DAIRY NEWS AUSTRALIA AUGUST 2017

MANAGEMENT // 17

Silage The Nicolls produce their own silage and aim to carryover 10–15 per cent of each commodity each year.

They average 18 t/acre for corn silage, 9–11 t/ acre for barley silage, 6t/acre for haylage on three cuts. They silage the first two cuts of haylage then bale the third cut. They produce 5000 t of corn silage, 3000 t of alfalfa silage and make up the difference with barley silage.

It is all mixed on farm for feed.

AI The Nicolls recently purchased a DeLaval Herd Navigator to assist their breeding. It is attached

Cregg Nicoll showed this Alltech tour group of Australian and New Zealand farmers through his Alberta farm.

to the dairy and reads progesterone levels from samples of milk. It will also detect LDH as a warning for subclinical mastitis.

The Nicolls perform their own AI and prioritise udders, with feet and legs the next consideration.

“We need cows with square udders, they milk out quick and easy, and then the cows are done and off they go.”

Calves Calves are placed in calf boxes for 8 weeks before they are weaned, then moved into group pens of between 5 and 10 head. From here they are moved into a barn in groups of 50.

Calves are fed milk (3 ½ litres per feeding) and a starter ration (a corn/oats/protein pellet) comprising 20 per cent protein.

Alltech funded Stephen Cooke’s attendance at the Alltech ONE Conference and northern American tour.

Cows are housed in a 264-stall barn.

The Nicolls produce their own silage and aim to carryover 10-15% of each commodity each year.

LAND PRICES AND EMPLOYMENT ARE MAJOR ISSUES IN CANADA Rising land prices and a decline in available farm workers are two issues facing Canadian dairy farmers, according to fourth generation Alberta farmer, Cregg Nicol.

“In this irrigation area, you’re looking at about $10 000 an acre. There is a lot of competition from feedlots starting to move east. We call the Picture Butte area ‘feedlot alley’.”

Picture Butte is 27 km north of Lethbridge and has claimed the title of Livestock Feeding Capital of Canada.

Cregg said the falling number of dairy farms in Alberta — there were an estimated 1200 dairy farms in Alberta 20 years ago and about 490 today — has contributed to employment issues.

“One of the biggest issues we deal with is finding guys that want to milk cows,” he said.

“Agriculture doesn’t have the appeal it used to. When we had more farms

in the past, that provided a large group of kids that knew farming and were willing to work on farm. All of a sudden, there are less kids who want to work.”Consumer perspective is another challenge, exacerbated by incidents like that in neighbouring province British Columbia, where a video showed workers mistreating cows. They were recently charged in court.

“I have nothing to hide here, but incidents like that affect us all, even the guys doing it right.”

Canadian dairy industry milk quotas enable farmers to be paid around 80c/litre for milk.

There are no government subsidies, but farmers must pay for quota and not exceed this. The system allows them to purchase more at times through the year.

Cregg said the lowest the milk price has fallen was about 75 cents a litre.

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the whole day, which Alltech says helps better diet utilisation, rumen health and fermentation.

Cregg worked with Alltech nutritionist Eldon Petherick on the benefits of milking a fresh group in 2016 and analysed the results over 12 months.

“We had done some research and wanted to see if we could drive peak milk production. We were happy with the success so we kept going with it. Outside of about one month in summer time, this group performed well at 100 days of milk.

“We feed them high level of bypass and different energy sources instead of starches. We separate them, then move them back into the high group.

“If we were much smaller, it wouldn’t be worth it, but at our size we can take advantage of it.”

The success of the ‘fresh group’ has led to a new conundrum for the Nicolls. The fresh group shares a facility specifically built for pre-calving cows. Cregg now thinks it’s a little too crowded for the calving group and may drop back to 300 milkers.

“When we built this facility — cows were calving well, transitioning well, moving into the parlour then milking well, but extra numbers have stopped that.”

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DAIRY NEWS AUSTRALIA AUGUST 2017

18 // MANAGEMENT

High production cows milked three times a day STEPHEN COOKE

DAIRY FARMER Alex Huisman is no stranger

to milking three times a day.

However, he fine-tuned the process, adding a third milking for 84 high production cows from his herd of 150 head.

Alex moved from Holland with his mother and father, Adrian and Bertha, at the age of 15 in 1994, and now manages the family farm, near Lethbridge in southern Alberta, Canada. He hosted an Alltech tour of Australian and New Zealand dairy farmers in May. Alex milks between 145–150 cows, which are all housed due to winter conditions that can drop to below -35 degrees celsius.

Milking high production cows three times a day has produced an additional 1000 kg of milk — up to 11 400 kg — over 305 milking days.

Under the system, first milking begins at 3 am, the high production group is milked again at 10.30 am and the final milking is at 4.30 pm, with the low group milked first, followed by the high group.

The herd was averaging 38 kg of milk at 3.85 per cent fat.

Although he said the format was working really well, Alex started milking the entire herd three times a day last month because of heat stress.

“The high group was too big so I have split the herd up evenly.”

They are averaging 40.5 kg at 3.75 per cent fat. The drop in fat percentage was caused by heat stress.

Farming Alex’s father was dairying in Holland with his brother and father. “There are so many rules there,” he said. He chose to move to southern Alberta because of the “big open areas”, the fact land was a little cheaper than Canadian provinces of Ontario and British Colombia, and advice that forage harvested in Alberta was of a higher quality.

The warmer conditions in southern Alberta are better for irrigated pastures and cropping, as it can be winter for six months of the year further north.

Alex aims to be as self-sufficient as possible.

Alex and Adrian Huisman on their Alberta dairy farm

On their 210 ha farm, which is irrigated, they grow 22 ha grass, 50 ha alfalfa silage, and crop 66 ha of canola for cash crop. They also grow 52 ha of corn which they chop.

They employ two full-time and two part-time staff, enabling them to take on contract work, including field work and manure handling. Significant infrastructure improvement has been conducted over the last five years.

With cows housed all year, they run a total mixed ration system, feeding a mix of 500 grams of dry grass (grass hay), 2.8 kg of alfalfa hay, 17.5 kg of corn silage, 7 kg of grass silage, 1 kg of alfalfa baleage and 12 kg of concentrate.

“We add 10 kg of water to get the concentrate to stick to the silage better. It boils down to about 25/kg of DM intake per cow per day.”

They purchased their own hammer mill early last year.

“With a hammer mill, you get better processing than rollers, which you have to adjust a lot depending on what barley and corn you get. We get a more consistent mix now.”

All grain is purchased, selected by bushel weight and cleanliness. “We reject it is there are too many wild oats. Ergot has also been a problem lately in barley and wheat. It’s horrible stuff

and can cause pregnancy failure, depending on percentage.”

Housing The Huismans have improved animal and operator comfort by improving the dairy and cow barns.

They initially milked 45 cows through a double 5 parallel parlour but now have a double 12 parallel parlour, house their cows in a 152–freestall barn, and a second barn, with a special needs pen, and dedicated areas for calvers and calves.

“We used to have calves outside, but it could get to 30 below with wind chill. If a calf was born outside you’d better be there, because it’s too cold for them.”

Genetics An ABS mating system is used to select new genetics, with an emphasis on milk, fat and longevity. Sexed semen is used for heifers.

Their 21-day pregnancy rate (eligible cows divided by pregnancies) is between 22–25 per cent, well above the Alberta average of 15–16 per cent. Heifers are first joined at 13–14 months.

Pregnant cows Pre-calving cows are brought to a calving barn 3 weeks before calving. They receive a ration of straw (1.8 kg), corn silage (15 kg) and 5 kg of closeup ration, including Optigen. “It sets them up pretty nice.”

The full TMR ration is produced on farm.

Calves are housed inside because of freezing conditions.

Alltech products Optigen, Yea-Sacc, and Bioplex/Selplex are used for lactation cows. The Bioplex and Selplex products provide a 100 per cent replacement of all inorganic trace minerals in the diet. Part of Alltech’s total replacement technology.

Yea-Sacc is a specifically selected live yeast strain, which Alltech says is proven to enhance digestibility and performance in dairy cows; Bioplex and Sel-Plex are organically bound trace minerals.

Optigen (called Optisync in Australia) is a non-protein Nitrogen (NPN) source that enables improved feed conversion through the provision of nitrogen for the rumen microbes. Optisync drip feeds nitrogen consistently over the whole day, which Alltech says helps better diet utilisation, rumen health and fermentation.

Calves Alex allows cows to lick their calves dry before removing them. Cows are then moved to the free stall barn.

Calves are weaned off milk and onto water, home grown feed that Alex grinds himself and a calf starter. He does not like feeding meal to calves. At 10 weeks, calves receive grain and meal, which he also prepares himself.

Once calves have grown too large for pens, they are moved into outside corrals.

Alltech funded Stephen Cooke’s attendance at the Alltech ONE Conference and tour.

DAIRY NEWS AUSTRALIA AUGUST 2017

MANAGEMENT // 19

Phone app fills missing link MOBILE TECHNOLOGY is making it much easier to keep track of cow records — just ask WA dairy farmer Ken Ravenhill.

“We’ve gone from paper and pens, to laptops and now we are using the HerdData app on a mobile phone to access cow records,” Ken said.

“The technology is making it easier to keep good records and access them whenever you want, wherever you are on the farm.”

Ken and Bonnie Ravenhill own Moonaralla Holsteins at Narrikup, 25 km north of Albany.

The family farm — which includes Ken’s parents, Graham and Jan — milks 1200 Holsteins through a 60-stand rotary and has between eight and 10 full-time staff.

“It means we have a massive amount of records on cows including herd test data, herd health records, calving and breeding records,” Ken said.

“With such a large number of cows we can’t remember them all, so it’s great when you can get an app on your phone which lets you access all that information.

Ken downloaded DataGene’s HerdData app as soon as it became available as a way of accessing herd information anywhere on the farm.

The app synchronises with the home computer program, EasyDairy, as well as DataGene’s and the herd test company Farm West’s databases.

He is currently using HerdData to retrieve information such as cow IDs, cow status, sire and dam details on his phone. The app also allows him to view a range of records including herd test data and performance graphs.

“I can access the data on my phone even if there is no phone signal.

“Having an app on the mobile phone saves having to print lists in the office then carry them around the farm with me — it really fills the missing link in our data system.

“If I’m in the calf pens or out in the paddock and I want to look up an animal I can pull out my phone and look up an animal’s pedigree, BPI or ASI. “I can check when a cow is coming into season, when a cow was last mated and when she is due to calve so I can identify cows for lead feeding.

“I can also look up a cow’s production and cell count and where she sits in the herd when it comes to making decision on which cows to cull.”

The records that can be entered on the mobile phone include calving dates, AI dates and sires, heat detections, dry-off dates, pregnancy test results, sales, culls, health events and treatments.

Herd records entered during the day would then synchronise with the office computer to

ensure no records were lost, even if the phone is lost or broken.

The HerdData app was developed by DataGene — an initiative of Dairy Australia and the Australian herd recording sector, with the assistance of participating herd testing centres.

The Ravenhill family (from left) Heath, Thomas, Ken, Lola (at front), Bonnie, Georgina.

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DAIRY NEWS AUSTRALIA AUGUST 2017

20 // ANIMAL HEALTH

How clean is your colostrum?

APIAM ANIMAL HEALTH GEMMA CHUCK

GOOD QUALITY colostrum helps protect calves against disease in the first 4–6 weeks of life by the provision of antibodies.

Research has shown that the provision of an adequate volume of clean, good quality colostrum as soon as possible after birth has long-term benefits.

These include reduced veterinary costs and increased milk production in the first and second lactations.

However, colostrum can

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become heavily contaminated during the collection, handling and storage processes.

Contaminated colostrum can not only be the source of some major infectious diseases, such as Salmonella, Bovine Johne’s Disease and Mycoplasma, but the presence of these pathogens in colostrum can also inhibit the absorption of antibodies by the small intestine of the calf.

Therefore, calves fed contaminated colostrum are at a higher risk of disease and failure of passive transfer of immunity.

Possible sources of contamination include the teat skin, milking cup liners, hoses or the bucket itself. Sub-optimal cleaning of collection buckets and feeding equipment such as teat or tube feeders will exacerbate this problem.

If allowed to accumulate, colostrum residues can be difficult to remove allowing bacterial overgrowth in hard-to-reach areas. It is ideal to thoroughly wash all feeding equipment after each use, including the sanitisation of tube feeders between calves.

A simple protocol for the cleaning of feeding equipment is outlined below.

For ALL feeding pails and tube feeders at the end of every feeding: RINSE Rinse all equipment with lukewarm water, to remove milk residue, manure and dirt. Do not use hot water at this stage as it causes the milk proteins to coagulate and stick to the surfaces.

WASH Use water as hot as you can stand with gloves on. To a 20 litre bucket (~19 litres of water), add a squirt of liquid soap and 50mls of household bleach (150ppm) — source: S.Leadley, Attica Veterinary Associates. Scrub all surfaces to loosen and remove remaining milk residue. Dump teats in solution. Water should remain >50oC. OPTIONAL RINSE For large milk carts and tanks, rinse with dairy acid wash.

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I reckon he’s been at it himself.

DRY Allow feeders to drain and dry (upside down on top of a pallet) before hanging on racks. Do not stack inside each other.

For the sanitisation of ALL tubes of tube feeders in between calves: 1. The tubes of tube feeders should submerged in a sanitising solution of 160mls bleach in 19 litres of water (500ppm)* in between calves — source: S.Leadley, Attica Veterinary.

2. Several tubes should be used at once and rotated between calves, to allow sufficient contact time of disinfectant.

As bacteria are microscopic organisms it is difficult to crudely assess the cleanliness of colostrum on-farm.

However a simple and inexpensive test (called a Total Plate Count or MUC-Test) allows an objective and comparable assessment to be made. Samples of colostrum should be collected at all stages of the colostrum handling process.

These include immediately after collection from the cow, colostrum from the test bucket and tube feeder and after colostrum has been stored in the fridge or thawed after freezing.

The samples are processed in a lab and the bacteria from colostrum are grown over a 24-hour period in an incubator.

This test will not differentiate the various species of bacteria but will give an overall objective assessment of how clean the colostrum is.

The test is repeatable and comparable and allows monitoring of colostrum handling and storage during the calf rearing period. Speak with your local veterinarian about this service.

• Gemma Chuck is a consultant with Apiam Animal Health.

DAIRY NEWS AUSTRALIA AUGUST 2017

ANIMAL HEALTH // 21

It is tiny, but it is important

colostrum first Managing colostrum successfully is fundamental to improving both the health of young calves and the long term productivity of the dairy herd.

The Colostrum First program includes: • Review of current colostrum management • Assessment of passive transfer and colostrum cleanliness • Establishment of benchmarks • Monitoring progress

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“Our ultimate goal through the combined research efforts is to be in a position where we can dramatically reduce antibiotic use — but that can only happen through preventative measures and early detection,” said Liz. According to Liz’s supervisor and Murdoch’s bovine health and management lecturer Herb Rovay, the strategies for optimal animal health he advocates to quickly identify and fix any flaws in the milk production system before it costs the farmer money.

“Every farm visit I remind myself that most well fed and well managed cows are profitable and very few get sick,” Dr Rovay said.

“The project we are working on with Liz is helping to quantify how much better we can be at that management and in this case in particular relation to mastitis.”

building farm colostrum awareness

V R I

Fourth-year Murdoch vet medicine student Liz Cork and her supervisor Herb Rovay have been in field this month collecting data from Anthony and Mel Anfuso’s dairy farm at Oldbury as part of a mastitis research protect collaboration between Murdoch, Western Dairy and Dairy Australia.

Mastitis is the most prevalent and costly production disease in dairy herds worldwide and the Australian dairy industry has been at the forefront of developing early intervention management strategies This latest study is aimed at further improving early-identification and on-farm management systems and will include an evaluation of the performance of hand-held cellcount devices that if validated may become another tool in the mastitis management kit.

Be sure

T S

WESTERN DAIRY’S VET SCHOLARSHIP STUDENT HITS THE FIELD

Usually between 0.8 mm and 1 mm in diameter, the claw air admission hole is commonly located in the claw itself, either in the metal body of the claw or sometimes in the claw bowl itself.

E

IT IS only a tiny part of your milking plant, and it can sometimes be very unobtrusively placed, but it is critical to the ability of your milking plant to function correctly.

Naturally this tiny part of your plant is the claw air admission hole.

Usually between 0.8 mm and 1 mm in diameter, the claw air admission hole is commonly located in the claw itself, either in the metal body of the claw or sometimes in the claw bowl itself.

In some cases the air admission hole is located in each of the liners, either in the short milk tube or near the mouthpiece of the liner.

This tiny hole has two key functions in the milking process.

Firstly, the air admission hole allows milk to move away from the claw to the milkline.

Milk, like all liquids, does not run “uphill”.

To be able to move upwards in any part of its pathway to the milkline, milk will need to form “slugs” in order to defy gravity, and it needs air to form those slugs.

The air entering the claw through the air admission hole allows those slugs to form and milk can then travel to the milkline.

Hence one of the first signs of a blocked air admission hole is the claw filling with milk as a cow is being milked — because the milk is unable to get away properly.

The second key function of the air admission hole is to allow air to enter the claw at a controlled rate when vacuum is broken at the end of milking to allow cups to be removed.

Otherwise, if there is an effective seal between liners and teats, and no air can enter the claw after vacuum is broken at the end of milking, the cluster will be unable to fall away from the cow, and the only way removal can then occur is by pulling the cups off the cow.

The end result of pulling cups from the cow is to allow blasts of air into the claw as the first cup breaks vacuum away from the teat.

This causes “impacts” which are blasts of air and milk which travel into the other three quar-

ters of the cow with a very high risk of transmitting mastitis bacteria.

Hence this tiny air admission hole plays a key role in efficient milking and effective mastitis control, so it is very important to ensure these holes are kept clean.

The signs of a blocked air admission hole are twofold as described above — the claw bowl filling with milk during milking, and the cluster failing to fall away from the cow after vacuum is broken at the end of milking.

All milkers should be trained to be on the lookout for these clues to a blocked air admission hole.

The air admission hole is commonly blocked by dirt, bits of grass or manure, and in summer it is also quite common for flies to get stuck in the hole.

Naturally these foreign bodies are to some extent assisted to block the hole by the air movement into the hole and hence it is not uncommon to see a fly “stuck” in the air admission hole.

How commonly blockages of the air admission hole occur can vary dramatically from farm to farm.

Some farms hardly ever see the hole blocked whilst some other farms need to have a milking protocol where the cups on operator actually wipes the hole clean prior to the application of the cups to every cow.

Every farm should ensure that all milkers are aware of the location of the air admission hole, the signs when the hole is blocked, and the importance of clearing those blockages.

In addition, a routine of cleaning the air admission hole on a regular basis using an appropriately sized probe to ensure there is no build up in the aperture of the hole should be standard on every farm.

Ensure that you check with your milking machine tech that you have the correct sized probe, as unnecessarily enlarging the air admission hole can sometimes have unintended consequences!

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

S

ROD DYSON

DAIRY NEWS AUSTRALIA AUGUST 2017

22 // MACHINERY & PRODUCTS

Can a Super tractor get any better?

FARMERS WHO owned an original Lan-

dini 60 Series utility tractor are about to have their dreams come true with the launch of the upgraded Super 8860.

The modern styling and improved ergonomics and controls will appeal to both old and new Landini enthusiasts.

‘The original Landini 60 Series was introduced in 1988, and you’ll still find thousands of them working reliably on Australian farms,’ said Inlon Sales & Marketing Manager, Gary Surman.

‘As we approach the 30 year anniversary of the 60 Series, Landini has made the Super even better.

“Many farmers will remember the square shaped bonnet of the old model.

“The new Super 8860 has a rounded, curved bonnet design for better visibility and rounded mudguards for a smooth ride through vegetation.

“Ergonomically, the new 8860 has it all. The gearshift lever on the right-hand side and the range lever on the left are easy to reach, while the shuttle lever adjacent to the steering wheel makes for quick shifting from forward to reverse.

“For driver comfort, there’s a sprung seat and

a sound-proofed rubber floor mat.”

The Super 8860 tractor has retained the features that lie behind its longevity.

“The 4.4-litre Perkins engine has been a true performer over many years in Australia,’ Gary said.

“The horsepower, stability, high-lift capacity and 3-tonne weight mean the 8860 can handle heavy duty applications, while the simple controls make it easy to operate.”

Gary said the Italian-built Super 8860 is the only European-made utility ROPS on the Australian market,.

“It’s built for utility work, hay work, bale lifting and a lot more. “ Safety and peace of mind come as standard with a two-post Roll Over Protection Structure (ROPS) and a 2 year / 2400 hour factory warranty.

For a limited time, farmers in Queensland, NSW, Victoria and Tasmania can trade in their old Landini 60 series to upgrade to a new Super 8860 and receive a free Genuine Factory Canopy.

For more information visit www.landini-tractors.com.au, or call Inlon on 1800 772 407.

The old Landini 8860 Series.

The new Landini 8860 Series.

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DAIRY NEWS AUSTRALIA AUGUST 2017

MACHINERY & PRODUCTS // 23

Contractor pushes pasture renovation with new Duncan drill SOUTH AUSTRALIAN contractor Nick

Pratt’s new Duncan AS6100 folding tine drill is creating a superior finish in pasture renovation, and he expects it will help him grow his seeding operation.

Nick contracts from his home in Penola, 50 km north of Mount Gambier. The business, Emu Ridge Ag Contracting, primarily does hay baling and pasture renovation.

Nick purchased the new 6.1 m wide AS6100 drill in April. He was previously using a 26-row another brand of seed drill with six-inch spacings as his main drill.

“We looked at a few different brands but I had done a dairy study in New Zealand in 1994,” Nick said.

“I feel that farmers in New Zealand are some of the best at growing grass in the world. The Duncan is a true pasture renovation machine and that’s the line we are going down with our contracting.”

Nick likes that the Duncan AS6100 seed drill is a simple machine with few wearing parts.

“It has the coulters on the front, with a Baker boot and rubber-tyre roller on the back. There are L-shaped finger tines for seed incorporation,” he says.

“Our other drill didn’t have coulters. We had very good success without them, but we thought the coulters would probably help handle trash.

The fingers tines weren’t on our old machine but when the seed falls out the back on the Duncan it gets incorporated more.”

Nick says the Duncan AS6100 creates a beautiful finish. His previous drill had separate press wheels that followed the tine as it was drilling, leaving a small V mark.

“The Duncan leaves a better finished product out the back of the machine. It has totally lived up to our expectations. There were a few little teething problems with it but we have sorted those out.”

Nick and his son James have only been using the drill since the start of May and have done about 500 hectares with it, mostly pasture and some cereal cover crops. They have been around to check on the progress of those early jobs and have found a string of happy clients.

James has done most of the work with the Duncan to date, and Nick says it is manoeuvrable and easy to operate once it is calibrated.

“We tow it with a 250 hp Case IH Magnum, which we bought new for the drill because we wanted to make sure we had adequate horse-

Nick Pratt says his new 6.1m-wide Duncan AS 6100 is a good drill to work with and does an excellent job of rejuvenating pasture

power. We are very happy with the set up and we are certainly hoping to build our clientele base over the next couple or three years to expand our contracting business.”

Nick has recently picked up another 120-hectare seeding job, with other new jobs coming on board.

“Seeding is quite seasonal and goes from April through to July, then we start again in August-September and go through until October-November for spring and summer sowing,”

he says.

“With the drilling there is huge potential for more work. With the price of land almost doubling over the last 12–18 months, I feel that farmers need to get more out of the land they have got. With beef prices being on a high, it’s a good time for farmers to improve their pastures.”

Nick purchased the Duncan AS6100 from John Telfer at Hage Tractors and Implements in Naracoorte.

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DAIRY NEWS AUSTRALIA AUGUST 2017

MACHINERY & PRODUCTS // 25

Selecting the right portable generator SELECTING THE right portable generator can have a big impact on performance, reliability, serviceability and the residual value of the asset, according to Redstar Equipment’s Kevin Ennis.

“Selecting a portable generator is simple if you have the right information,” Kevin said.

“Not doing your homework can cost you with most technical and maintenance issues caused by selecting the wrong portable generator.”

A portable generator is a made up of a fixed speed diesel engine spinning an alternator (generator) at 1500 rpm. The alternator is configured to produce the type and voltage of electricity required. There are 3 different applications for portable generators; standby, prime fixed and prime mobile.

“A standby generator application is used when a mains power already exists and a generator is required to act only as back-up if there is a blackout,” Kevin said.

“Subsequently, the generator will usually only run a handful of hours per year, if at all.

“You should select a standby generator based on the quality of the brand, price, availability of parts and access to a local service agent.”

A prime fixed generator is used when the generator is the primary source of power and the generator will remain in one location for most of its life.

“In any prime (running) application, most of the cost of owning or renting a generator is fuel.

The quality of the brand, size, fuel efficiency of the engine and access to parts and service is crit-

FERTAG ACHIEVES ORGANIC STATUS The nation’s largest certifier for organic and biodynamic produce, Australian Organic Ltd, has certified soil amendment and fertilizer FertAg 0–8–0 as organic.

FertAg managing director Les Szonyi said the company is proud of its newly acquired status and looks forward to giving organic farmers an efficient source of organic phosphorus (P) as well as improving soil health and crop quality.

“FertAg 0–8–0 offers organic farmers a source of 95 per cent available P

(8 per cent) which is faster acting in acid soils than the usual sources of organic P — reactive rock phosphate and guano,” Mr Szonyi said.

FertAg 0–8–0 provides soil amendment and fertilizer together in one application to acid soils. It assists in increasing pH to a sustainable level whilst providing useful amounts of macro elements Ca, Mg, Si and P as well as a range of micro nutrients. It is not water soluble and therefore does not

ical for prime fixed generators.

“It is essential to consult a generator specialist to assist you in selecting this type of generator.”

“A good tip to save some costs is selecting a machine with a cheaper frame or canopy because the machine will not be moved around.”

A prime mobile generator is used when the generator is the sole source of power but it will also be moved from site to site on a regular basis.

“Prime mobile generators are commonly used by construction and rental companies.

“Quality of the brand, size and fuel efficiency of the engine is key to saving costs.”

“A robust build and canopy design is essential for the longevity of prime fixed mobile generators.”

Access to quality technical support and careful

leach or wash away.

FertAg 0–8–0 works with the natural soil chemistry to digest soil acid as well as providing minerals in a plant available form. It is high in plant available calcium (23 per cent), magnesium (10 per cent) silicon (11 per cent) and phosphorus (8 per cent) and also acts as an alternative to lime.

Regular application of the organic fertilizer and monitoring through soil tests will show both improvement in soil health and greater availability of nutrients in a sustainable productive way, where also other macros such as N and K can be soil

selection can significantly increase the life span of all portable generators.

Redstar Equipment is a specialist fixed-speed diesel equipment supplier and Australian distributor for Atlas Copco portable energy products. This includes portable compressors, portable generators, lighting towers and pumps.

Selecting a portable generator is simple if you have the right information.

held and be more plant available.

“The science is about FertAg 0–8–0 digesting soil acid to get the soil ph (CaCl) to 6–6.5 where most macro and micro nutrients are plant available and improving CEC to buffer and stabilize soil pH,” Mr Szonyi said.

FertAg 0–8–0’s unique plant available calcium silicates have proven in conventional agriculture to strengthen and ‘sweeten’ plants whether pasture or horticultural produce. This will result in similar increases in the quality and the product shelf life of organic produce.

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LOOKING TO BUY OR SELL A DAIRY FARM? CONTACT US TODAY! For personalised service & professional advice, speak with one of our friendly staff members Michael Downie 0458 241 242

Simon Weatherald 0438 705 270

Lauren McCabe (03) 5833 0221

Ph. (03) 5833 0221 | 295 Benalla Rd, Shepparton VIC 3630 Email: shepparton@landmark.com.au | www.landandwater.net.au

DAIRY NEWS AUSTRALIA AUGUST 2017

26 // MACHINERY & PRODUCTS

Lactipro helps cows transition A NEW natural product released in Australia

is enabling farmers to change the way they feed concentrate to ruminants, suppling energy to the cow faster and more efficiently.

Lactipro is the world’s first commercially available live culture of a patented strain of Megasphaera Elsdenii bacteria. It is APVMA registered and FDA approved.

Dr Mark Connors, General Manager of BEC Biotech, highlighted the potential danger

of transitioning from roughage to grain diets quickly.

“This increases lactic acid production in the rumen which causes acidosis and can lead to a range of problems including poor milk production, reduced feed intake and even death” Dr Connors said.

“Sub-clinical acidosis reduces cow performance but often goes unnoticed”.

Controlling lactic acidosis in dairy cows

whilst increasing energy supply can lead to an increase milk production and BCS, decrease subclinical ketosis and reduced culls due to metabolic disorders.

“Lactipro’s benefits can be different for every farm. In addition to the production benefits other efficiencies including reduced roughage use, faster and more efficient transition to concentrate and the peace of mind from extra protection around acidosis” Dr Connors said.

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The McIntosh beater wagon system is designed to integrate different fodder products together and give you a more even and consistent feeding. This versatile design is ideally suited for feeding onto feed pads or in field conditions. Our unique safety stop technology helps prevent damage to the rotors and floor chains if a blockage occurs. Our modular design, heavy duty PTO drive system, larger drive chains and sprockets are all designed for long life and easy serviceability.

Together with our proven all steel construction bin, 13mm Titan series floor chains, high capacity 900mm or 1200mm wide cross conveyers and heavy duty chassis, the McIntosh Beater wagons have the strength, performance and durability that you can relay on.

With sizes from 12m3 to 21m3 and a host of options to choose from, there’s a McIntosh Beater wagon to suit your individual needs.

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“Its biggest benefit is it allows the farmer to better and more efficiently manage their herd.”

Distributed in Australia by BEC Biotech, Lactipro is produced in a built for purpose, customised fermentation laboratory in Brisbane and managed by a small, highly skilled team led by Dr Connors.

“The most satisfying is when we have customers who have been using Lactipro tell us they have changed their management program because the product allows them to do this. It is rewarding to know you are making a difference.” Dr Connors said.

Monitor cows with SenseTime ALLFLEX HAS released SenseTime — a

cow monitoring system that delivers datadriven information on the reproductive, health, nutritional and wellbeing status of herds.

SenseTime combines cow monitoring technology designed by Allflex-owned SCR, which the company says has been used for more than 10 years on over 5 million cows, with Allflex’s livestock identification technology.

SenseTime is the first cow monitoring system that allows farmers to use either ear tags or neck tags, according to their preference.

The cSense Flex (neck) tags are based on the SCR neck tags already in use on thousands of farms worldwide, and the eSense Flex (ear) tags are the newest and most advanced ear tags on the market.

Allflex says the ear tags are lightweight, durable and simple to install. The company says they have a high retention rate and deliver a high return on investment.

SenseTime also offers farmers business flexibility, with a choice of application plan levels (Starter, Advanced, or Premium), a choice of payment options (upfront or monthly subscription), and compatibility with multiple user devices (PC, mobile phone, tablet, or dedicated SenseTime Panel).

All options can be expanded or changed to fit evolving needs.

The system has convenient single-box plug and play installation, easy upgrades, simple scalability, and integration with herd management systems.

Mobile access and offline operation enable uninterrupted use from anywhere, at any time.

“Decades of leadership in animal identification and heat and health monitoring in dairy cows gives Allflex deep insight into how to help farmers gain ongoing productivity improvements and business growth,” said Allflex CEO Dr. Stefan Weiskopf.

“With the next-generation SenseTime solution we’re building on the experience gained from serving thousands of farmers worldwide, to give them a powerful, flexible solution that meets their needs today, and long into the future.”

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