Time to ask: how are you going? PAGE 12 MILK PRODUCTION SLIDES PAGE 26
JULY, 2019 ISSUE 105
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TRAGEDY AND TRIUMPH FOR A REBORN BUSINESS Battling the highs and lows on a Western District farm, page 10
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DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 3 DAIRY PLAN FOCUS Dairy farmers are calling for better representation and action on a range of industry issues, in the first round of public consultations on a new Australian dairy plan. The first round of meetings finished in June, and the next round of invitation meetings will start in July. Many of the meetings held so far have seen farmers call for unity and better advocacy. Other issues raised included a floor price for milk, more marketing to promote the health benefits of dairy products, and a counter to the powerful influence of major supermarkets. The issues varied across the regions, with water and input costs being common in Victoria. In this issue of Dairy News Australia, we have three pages devoted to feedback on a proposed dairy plan and an interview with Dairy Plan chairman, John Brumby.
Lino Saputo back in Australia. PG.31
Coles goes direct to farmers NORTHERN VICTORIAN and southern Farmers recognised in honours list. PG.19
Young WA farmer UK bound. PG.24
NEWS ����������������������������������������������������3–33 AUST DAIRY PLAN ��������������� 4–5, 8, 13 OPINION ����������������������������������������������������� 6 MANAGEMENT �����������������10—11, 14—15 MARKETS �����������������������������������������26–27 ANIMAL HEALTH �������������������������� 28,30 MACHINERY �������������������������������������������34
NSW dairy farmers are the focus of a Coles push to bypass processors and secure its own direct milk supply. From next month, the supermarket giant will begin sourcing milk directly for its Coles brand fresh milk, and is promising to deliver better value, a fair and competitive farm gate price and more certainty to farmers. Coles has not yet announced a price. Under the sourcing model, dairy farmers can decide between one-, two- or three-year contracts. Those who choose a three-year contract will receive a guaranteed price for two years and a floor price for the third year. Saputo will process and bottle the milk under a toll processing agreement. Coles chief operating officer Greg David said Coles was focused on strengthening the sustainability and long-term resilience of its suppliers. “In addition to offering a fair and competitive price, dairy farmers will have more choice regarding the length of contract and more certainty around income,” Mr David said.
“Over many years, Coles has developed direct relationships with thousands of meat, seafood and fresh produce farmers supplying to our stores; it is a successful model, and we think it can work in dairy too. “If the model works as we hope it will, we will look for opportunities to expand the footprint to other milk-producing regions and potentially other products in the dairy case.” The announcement has been welcomed by Australian Dairy Farmers, the UDV and advocacy group Dairy Connect. UDV president Paul Mumford said Coles’ decision could lead to more competitive farm gate prices, which would be good for the industry. However, he urged farmers to examine any contract closely to ensure they could maximise their benefits from a deal and to ensure the farm supply curve would fit with Coles’ expectations. “This may not be a panacea for all the industry’s problems and this move may only be applicable to some farmers,” Mr Mumford said. Australian Dairy Farmers said more competition for milk was healthy, and the Coles
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deal had the potential for greater transparency within the dairy supply chain between farmers and retailers. However, the ADF called for Coles to commit to ensuring $1-a-litre milk would not return to supermarket shelves. Dairy Connect chief executive officer Shaughn Morgan said Coles’ new sourcing model would provide price certainty for producers. The supermarket giant will also invest $1.9 million in the newly established Coles Sustainable Dairy Development Group to fund research into more sustainable farming practices; adoption of new technology; more efficient use of pasture, feed and water; and support for business development and talent retention. Coles said farmers would have a direct voice in how funds were used. Farmers interested in contracting part or all of their milk production to Coles can send an expression of interest to: milksupply@coles. com.au · Lino Saputo speaks about the new the Coles deal on page 31
DAIRY NEWS AUSTRALIA JULY 2019
4 // AUSTRALIAN DAIRY PLAN
Common themes aired at workshops THE AUSTRALIAN Dairy Plan has certainly got the dairy industry thinking as meetings were held across the country through June and it seems no matter where people farm, issues and concerns are similar across the country. Every state believes the industry needs to be united in advocacy through a single representative body. Milk price is also a major issue — from milk being undervalued by processors through to complicated payment systems. A floor price for liquid milk was also mentioned. Processor pressure (undervaluing milk) and consolidation (too much stainless steel in the country) and supermarket power were common issues, with some meetings calling for the end of supermarket branded products. Educating the Australian public on the clean, green product the industry produces also featured as a popular issue along with promoting the health benefits of dairy — many farmers feel the industry has really let itself down on this particular point. The dairy industry also needs to promote itself on the wealth it generates and the flow-on effect every dollar spent has on rural communities. Research and development is also another area farmers would like to see improved.
Queensland meetings Four meetings, two local engagement meetings at Beaudesert and Nanango and a meeting at Toowoomba (31 dairy farmers in attendance)
and Gympie (23). Gympie: heat stress, infrastructure, nutrition challenges and animal welfare were all brought up as impediments for growing scale in northern dairy regions along with improving systems to recover from natural disasters and resilience against parasites and other insects. Toowoomba: farmers need to swallow their pride and start talking to processors, who are part of the problem and therefore part of the solution. Tasmania meetings Two meetings, Smithton and Deloraine (40). Deloraine: develop a centre for dairy education to train those who want a career in dairy; train people in the science to bring new skills to the industry; develop a scheme for farmers to be able to access finance more easily (maybe an equity position not a debt position) building on what exists. Smithton: improve clarity labelling country of origin; don't allow plant juices to be labelled as milk; health star ratings; develop a group or a body to go around and speak to successful industry people and share their stories, in the media and on social media. NSW meetings Seven meetings, one local engagement at Dorrigo and meetings at Finley (14 farmers), Taree (30), Muswellbrook (14), Lismore (21), Bega (22), and Nowra (23). Taree: investment in major water security infrastructure, for example, dams; introduction of a dairy or agriculture commissioner for advocacy,
i.e. free trade agreements. Muswellbrook: encourage young people under 40 into the industry through government incentives or tax breaks. Lismore: payments for good stewardship, i.e. environmental rebate on products given back to those who comply with standards (regenerative agriculture); two advocacy bodies, one for exporters and one for liquid milk. Bega: give farmers transparency in how funding is raised, spent and a say on where to direct it; protect farmers from animal activists. Nowra: legislative change to create a recognised brand for 'made from Australian dairy'; declare a 'force majure' due to drought and build into contracts; curriculum change to make agriculture taken seriously in schools. Dorrigo: better links to secondary schools for dairy career pathways; pay less research and development levies but pay directly for training courses. Western Australia meetings One meeting was held at Bunbury with 22 farmers in attendance. Bunbury: build a state-of-the-art processing facility in Western Australia and grow farms to support it; investigate changes to the 457 visa to allow right skills on farm. South Australia Two meetings, Mt Barker (20 farmers) and Mt Gambier (30 people all together). Mt Gambier: farmers need to develop a quality over quantity mindset — don't be pushed into
milking more cows. Mt Barker: Canada model, a price you can work within with supply and price management (subject to ACCC approval). Victoria meetings Nine meetings, Wodonga (14 farmers), Cohuna (21), Koroit (38), Cobden (54), Colac(26), Tatura (26), Warragul, Maffra and Leongatha. Wodonga: bring agenda as farmers back to local government, demonstrate our value to local shires that do not support us enough. Cohuna: improve practices that generate negative publicity like bull calves, new industries grow from this? Tatura: get mechanisms to deal with the 'new normal' — how to deal with multiple dry seasons; take back control of our levies with more farmer oversight. Cobden: work towards no special deals, i.e. volume to keep little farms involved; change the culture of dairy to be more positive and unified. Colac: explore ways of producer groups increasing buying power/hedging (subject to approval); free-up Gardiner Foundation funding and disperse. Koroit: learn from New Zealand but more importantly what they are doing recently, i.e. adding value, not volume; help young people get into market by having contracted agreements, i.e. 'lease to buy' arrangements.
FARMERS CALL FOR ACTION ON FORWARD-THINKING The majority of dairy farmers in attendance at the Cohuna meeting were interested in a way forward, rather than dwelling on problems of the past. Young and old, big or small, pasture based or total mixed ration — there was a strong cross representation of different farming business in the room and while the mood was far from upbeat, the people in the room were determined to voice their opinions and navigate their way forward through positive discussion and exploration of ideas. Priority issues were reforms in water policy, milk pricing and developing a simple system so farmers can better structure their business, opportunities to encourage new entrants into the industry (both
young and old), longer term contracts with processors, tackling the disconnect between consumers and the farm gate, along with more uptake by farmers to understand their costs and therefore make better business decisions. When the question was asked of the room — what are the most important changes and key priorities for the dairy plan? — water came out on top. Milk pricing system that farmers can understand to help structure their business, pricing signals that encourage efficiency at the farm gate, spot pricing and contracts came in as the second most important issue, with 57 per cent in support of reforms. Fifty per cent of the room said
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the dairy industry had been terrible and noone had defended the industry at all. “Something needs to change, and we need someone to speak out for us; it is frustrating to see fees go out of our milk check to groups who do nothing for us and don't step in to promote our industry." Cohuna dairy farmer Jodie Hay said the meeting was well run and facilitated but she wanted to see clear objectives, goals and strategies in the plan. “We don't want to see the plan ticked off and put away in some glossy folder. We had some forward-thinking people in the room with some really good ideas who identified their concerns and issues well,” Ms Hay said.
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DAIRY NEWS AUSTRALIA JULY 2019
AUSTRALIAN DAIRY PLAN // 5
Dairy themes echoed at final workshop JEANETTE SEVERS
THE DAIRY Plan consultations in Gippsland
followed a similar path to the 19 that preceded them — with similar issues raised and recommendations made. About 1000 people registered to participate in the nation-wide consultation — in many of the 22 workshops, about half the participants were dairy farmers. Which begs the question, how to engage most of Australia's remaining dairy farmers in shaping this five-year industry plan? Gippsland was the last port of call for the consultation round — with three held across the region, in Warragul, Maffra and Leongatha. Ebony Arms, of Neerim South, attended the Warragul workshop and spoke to Dairy News Australia afterwards. “Ownership of property was identified as a big issue for young and new dairy farmers,” she said. Ms Arms said there was also concern about the morale of dairy farmers, given recent prosecutions for trespass. She took the opportunity to raise her concerns with past Victorian premier John Brumby, who is chair of the Australian Dairy Plan and attended the Warragul workshop. “There was a lot of concern raised about animal activists. I told him prosecutions need to be fairer to the industry; that will help farmers feel proud of their industry,” she said. What was unique about the Maffra workshop was the number of young people among the 24 dairy farmers who participated. This representation was picked up by long-term agri-politician and retired dairy farmer Alex Arbuthnot. “The usual industry people were here at Maffra, but it was good to see the young farmers here today,” Mr Arbuthnot said. “We have exciting opportunities in the industry. Young people want to work in dairy. There are opportunities to use technology on farm. Our industry needs to expand in Asian markets. But energy and water are the two big issues hindering dairy businesses and the cost of production.” According to the workshop facilitators and Gardiner Dairy Foundation chair Bruce Kefford, similar themes emerged at all the workshops. A shakedown of concerns was encapsulated among a 'top four or five' priorities. But what was most interesting were the concerns that
were voiced before being encapsulated under generic headings. The Maffra workshop was attended by about 50 people. The top priorities going forward were consolidating industry representation to one voice; to strengthen and consolidate education and extension pathways; and equal voting was applied to cross-industry emphasis on methods that enable dairy workers and farmers to improve their farming and business management skills, to promote the quality and nutritional value of dairy products and to promote the industry's social licence to operate. Shortly behind was a focus on using technology, including virtual reality, to bring agricultural education and farm tours into the classroom, so children are exposed to learning about how their food is produced. This was a clearly identified pathway to improving community perception of farming and related back to environmental stewardship and the social licence to farm, as well as exposing students to potential careers available in agriculture. Maffra workshop attendee Blake Randall, recently began working on a dairy farm at Boisdale. He said he would never have become a farm worker if he took the advice of school teachers. He was one of a number of dairy farmers at the Maffra workshop who encouraged the development of clearly articulated pathways for agricultural education from primary school to university level. “Education needs to be accessible for workers and farmers. We can't take a lot of time off farm,” he said. “The industry also needs to increase community awareness of the value of farming as a career.” Michelle Axford of Korumburra said research and development was 10 years disconnected and education pathways had crumbled. “We should be looking outside Australia at research and development already undertaken, that complements what we've done,” Ms Axford said. “Don't reinvent the wheel. “We also need strong, accessible education pathways — encouraging professional development among older farmers is as important as mentoring and training activities for young farmers.” Nambrok dairy farmer Steph Bullen said every farmer was responsible for community
Michelle Axford, Korumburra, Raelene Hanratty, Upper Maffra West, and Jennifer Green, Riverslea, at the Maffra workshop. "We need to unite our whole industry," Ms Hanratty said. Ms Axford: "I thought today's process captured the range of ideas today. It's important we now do something about it."
perception about the dairy industry. “The industry needs to be willing to talk openly about issues and practices around good animal welfare and environmental stewardship. Don't be softly, softly on issues,” she said. “Each farmer is responsible for community perception about their farm practices; industry organisations need to communicate how we manage our farms.” Her view was endorsed by Jeanette Howie, of Denison, who said the general community was unaware many dairy farmers had invested significantly in improving agricultural practices to benefit the environment. She said industry advocacy was important to communicate these changes. Concerns were voiced about perceived homogeneity of the industry. Wilco Droppert, of Clydebank, advocated for streamlining industry organisations to one levy-funded representative body. “We need to have our debates and discussions privately, then decide on what our core message is and make that opinion publicly,” he said. “We need to unite our whole industry,” said Raelene Hanratty of Upper Maffra West. Mr Droppert also said it was important to encourage diversity in the industry, for dairy farmers to respect alternate ways of farming and for organisations to actively seek a diverse membership at board level. Mr Droppert's views were endorsed by Lukas Randle, a dairy farmer at Boisdale. “We need to consolidate to one peak body and recognise the value of farmers' time. Today we've seen a consensus for farmers to turn around their view of the industry and be proactive about changing it,” Mr Randle said.
Dairy Australia board director Graeme Nicoll said there were many people willing to advocate for the dairy industry but the challenge was agreeing what the topic of advocacy should be. This reflected the diversity of the dairy industry across Australia. His view was endorsed by Bruce Kefford, who said the challenge in developing a single strategy was to agree about the priorities. “It'll be up to the four partners [Dairy Australia, Gardiner Dairy Foundation, Australian Dairy Farmers and Australian Dairy Products Federation] to make a judgment call on what priorities will benefit and strengthen the industry,” Mr Kefford said. “The number one issue and opportunity is getting more on-farm profitability, from changing business practices and farmers smoothing their costs. Management requirements are critical to meet the challenge of variable markets. “The dairy manufacturers have to be part of increasing farm profit and sharing risk with farmers. “Dairy farmers need profits to provide milk. Manufacturers need milk. Everyone has a vested interest in the supply chain. “The dairy manufacturers can help by offering longer-term contracts, flattening the milk curve and taking price fluctuations out of the margins. “Dairy farmers can help by lowering their costs of production — building relationships with processors for longer-term contracts and forward contracts with fodder suppliers are two available options. “My personal opinion is the peak-trough ratio has to go back up.”
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DAIRY NEWS AUSTRALIA JULY 2019
6 // OPINION
EDITORIAL
Milk contamination concerns News of two milk contamination incidents in Victoria has sent ripples of concern through the dairy industry. Lactalis Australia recalled eight milk varieties sold by Coles, Woolworths, IGA and other retailers in Victoria and southern NSW because they may contain the bacteria E. coli. It comes a week after the company had to recall eight different milk varieties with expiry dates of between June 25 and 28, because of fears they contained a cleaning solution. The discovery of any contamination in fresh milk would be a cause for concern, but two, from the same company, within a week, raises some questions and issues. Australia is proud of its reputation as a producer of high-quality dairy products and in recent years has been leaning on that history to give it a market edge. Food safety is high on the list of expectations for modern, Australian consumers and even the emerging middle classes of our overseas consumers are voting with their wallets on reassurances of food hygiene. Lactalis, an international enterprise owned by a French company, would certainly be aware of the sensitivity of food safety issues. We would like to know if the two recent incidents were connected, how the contamination occurred and what is being done to ensure it doesn’t re-occur, but the company is not really talking, so we can’t be sure. It may be that Lactalis (and the industry) are hoping the issue will blow away and will not reach the eyes and ears of our international trading partners, but in the internet age that would be a forlorn desire. We can only hope that the cause has been remedied and the company is making sure that it doesn’t happen again.
Retired cow hits 25 years An old Holstein cow, now living in retirement, has a special place in the hearts of a Victorian family. Annabelle has turned 25 and is way past milking on the Merrigum farm of Bob and Nanette Casella, in northern Victoria. But she is seeing out her declining years as a guest on the farm. Annabelle lost her mother at birth and bonded with the Merrigum couple’s daughter Kaihla King. ‘‘Her mother died when she was born and I reared her from that point,’’ Kaihla said. ‘‘I remember the simple things from when I was younger like laying with her in the shed. ‘‘When she was only a young cow, she would come up to my bedroom window.’’ Nanette described Annabelle’s love of oats and her proximity to the house. ‘‘I’ve always said when I’m using oats inside that she would come into the house (if we let her),’’ she said. ‘‘The other day she was at the archway (near the walkway to the front door).’’ Despite the family normally culling the farm’s cattle at eight to 10 years old, Annabelle holds a special place
in their hearts. ‘‘She is my pet cow. Annabelle is my one and only girl. I have three boys (children),’’ Kaihla said. ‘‘Five years ago, I went to say my goodbyes, we thought it was the end as she couldn’t get up, but I also gave her a talking to and she was up the next day.”
Kaihla King and Annabelle, with Kaihla’s children (from left) Ayden, 7, Dylan, 2 and Jacob, 5.
Advertising James MacGibbon 0409 103 745 james.macgibbon@dairynewsaustralia.com.au Editor Geoff Adams (03) 5820 3229 editor@dairynewsaustralia.com.au Dairy News Australia is published by Shepparton Newspapers Pty Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.
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Dairy News Australia welcomes contributions from stakeholders in the dairy industry, and particularly from organisations wishing to advance the industry. Contributions and photos can be sent to: editor@dairynewsaustralia.com.au Letters to the editor on topical issues are also welcome. Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication.
DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 7
Milk price competition heats up COMPETITION FOR milk is hotting up with
Bega Cheese lifting its opening price only a month after announcing its initial opening. Saputo has opened at $6.80/kg MS and the company says it won’t be reviewing its prices more than once in three months. Fonterra, at the time of going to print was on $6.60/kg. Bega Cheese has lifted its opening price for next season to $6.75/kg, which means that some northern Victorian suppliers could earn more than $7/kg with incentives. Bega had announced an opening of $6.60/ kg at the end of May, but competition for milk supply has pushed the company to go to $6.75/ kg, just a month later. Bega is paying a 20 cent irrigation rebate to
northern Victorian suppliers and all suppliers who choose to lock in for three years can earn a loyalty payment equivalent to about 17 cents. Milk supply has been declining in recent months due to the cost pressures of irrigation water and grain for feed. Tatura Milk supplier Rob Schloss said the recent 15 cent increase to the opening price, plus the 20 cent payment for supplying milk in the north, brings his opening price to $6.95. “This gives us a lot of confidence for next season and it’s only an opening price too, it might go higher yet,” Mr Schloss said. He is planning on milking 300 this spring, but what happens after that will be totally dependent on seasonal conditions. “There are lots of factors that will come into
play, especially around the water job but a price like that does make sourcing feed at the right price more attractive.” “We need a price like this to encourage people to hang in there, the milk price is one thing, but it is the water job that has everyone worrying.” Parmalat supplier Terry Malone from Bamawm in Victoria is happy with his opening price of $7.05. He is hoping with a bit of extra supermarket money from Coles and Woolworths, that price could creep a little higher. “It all depends on irrigation water and whether or not it rains. Water will be the key to a good year and hopefully there will be cheaper hay and a drop in grain price to make it even better,” Mr Malone said.
The business will be milking about 270 split calving cows this season. April and Steve Kunde from Mincha are supplying Saputo. Ms Kunde said they can’t grumble about their $6.80 opening price. “It’s a better price than we have ever had before so we can’t complain, although of course we would always like more, but everyone has to make a dollar and we all need to survive,” she said. “If our input costs are lower and water is a decent price we will be fine, water is more of a concern for us than anything at the moment.” The Kunde family will be milking 180 this season.
BULLA PUSHES PRICE ABOVE $7 Bulla Dairy Foods, which moved to direct farm supply about two years ago, has become one of the leading price setters for the farm gate. The company, which has factories in Colac, Dandenong and Mulgrave and manufactures chilled and frozen dairy foods, set a $7/ kg price in May but moved to $7.20 in June. Bulla chief executive Allan Hood said the company examined market prospects and realised that competition for milk had increased. “Our business is in growth and we have based that growth on increased supply of quality milk,” Mr Hood said. He said the Bulla name continued to be the top cream brand in Australia. The company has just over 100 suppliers
from around Victoria providing an average between 1 million to 1.5 million litres. Asked about the cost-price pressures on farmers, Mr Hood acknowledged the industry was facing a tough time and said the company had lost some suppliers in the last couple of years when farmers decided to exit the industry. “Hopefully next season we will see a stronger year and costs may become more affordable.” The company will pay a flat $7.20/ kg milk solids through the year, providing a cash boost in the spring, when some processors pay a reduced rate. Bulla applies no stop charge, volume charge or collection charge, so farmers receive 100 per cent of the price. The company also applies a flat payment
model to improve farmers’ cash flow through spring. “We have been procuring milk and cream for more than 108 years in regional Victoria thanks to the continued support
from farmers and the consistency of their excellent milk supply,” Mr Hood said. The company employs about 700 people.
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DAIRY NEWS AUSTRALIA JULY 2019
8 // AUSTRALIAN DAIRY PLAN
Farmers want greater voice WESTERN VICTORIAN farmers want their voice to be heard more strongly as part of future planning for the dairy industry. More than 150 farmers and dairy industry personnel have given a mixed response to the first of the Australian Dairy Plan workshops in western Victoria. A total of 161 people attended the workshops at Koroit, Cobden and Colac, with about 75 per cent of participants being dairy farmers. Cobden had the biggest turnout with 70 people attending. The workshops were facilitated by consultants Nous as part of a nationwide consultation for the Australian Dairy Plan which is collectively being led by Dairy Australia, Australian Dairy Farmers, Australian Dairy Products Federation and Gardiner Dairy Foundation. WestVic Dairy executive officer Lindsay Ferguson, who attended all three sessions, said the reaction was mixed. Mr Ferguson said the top issues at the three sessions were advocacy and how the industry could be best represented to government and other decision-makers in a united way. “Farmers were concerned about getting their voice across better,” Mr Ferguson said. “There were some good questions asked but there was a mixed atmosphere with some farmers not realising who is responsible for advocacy.” Simpson farmer Aaron Crole said he was
pleased the plan was being developed but worried that it shouldn't be ruled by negativity and outdated attitudes. “It's a good step to reassess the industry,” Mr Crole said. “Things have changed since the last dairy plan so we need to keep moving it forward.” Mr Crole said farmers wanted streamlined representation. “It's come out that the advocacy of the industry is too top heavy so it should even itself out. There are too many up at the top; we want the ordinary farm to be heard,” he said. Mr Crole was also concerned that younger farmers be considered. “Older generations have seen a lot of what the industry has been through but it's hard for us younger farmers when all we hear is negativity and we've done that before,” he said. “We haven't been there so we don't know the past and that's frustrating. You don't want the older generation holding the young ones back because they don't want to change.” Rachael McGrath attended the Koroit meeting and hopes the plan will reinvigorate the industry. “There's a huge lack of faith in the dairy industry at the moment and my parents are worried about my future as a young farmer,” she said. Ms McGrath said the plan should try to create more avenues for young farmers to
At the Maffra workshop, Graeme Anderson, Denison, Jeannette Howie, Denison and Leah Woodford, Cowwarr, talked about the need to consolidate dairy industry representation for research, extension and advocacy; the importance of education pathways; and the need to communicate with the wider community about dairy farmers stewardship and animal welfare practices as well as the nutritional value of dairy products.
progress in the industry. She said farmers also wanted more transparency from the processors. “Everyone wants to know how and where they get paid and be able to understand it a bit better,” Ms McGrath said. “I hope something good comes from it. They wanted us to rate what we thought of the day and as much as it was good to have this opportunity, you can't really rate it until you see any outcomes.” Mr Ferguson said comments from the three
western Victorian workshops would be collated as part of feedback from 24 workshops leading to a national forum in late July and development of a draft strategy. “The four bodies needed to refresh their strategic plans and decided to come together collectively to do a five-year plan and then base their own organisational strategies off that,” he said. “The strategy is for the whole of the supply chain, not just for farmers and everyone is encouraged to have their say.”
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DAIRY NEWS AUSTRALIA JULY 2019
10 // MANAGEMENT
Looking for a reason to smile RICK BAYNE
HAPPY COWS mean happy farmers and young Western District farmer Rachael McGrath is doing her best to keep smiling. At 25, Rachael is taking over management of her family farm which has endured years of adversity and setbacks. With a good 2019 opening price and general improvements over the past year, Rachael is confident things have turned the corner. The McGraths have farmed at Orford, North of Port Fairy since the 1940s but that was threatened in 2007 when a worker on a quadbike was hit by a truck as he crossed a road. Not only did they lose their worker in tragic circumstances, they lost their dairy farm. Under legal advice, the McGraths pleaded guilty to culpability for the accident even though it happened on a public road — a plea they later regretted — and were forced to sell their 355 ha dairy farm to pay fines and compensation totalling $3 million. “It was so life-changing,” Rachael said. “There was a girl in the accident who broke her femur and people thought it might have been me on the back of the motorbike. “It took a lot of rebuilding emotionally as well as financially.” The McGraths had kept one property through the legal proceedings and continued as beef farmers until 2010. However, beef wasn’t working financially so in 2010 they built a new dairy 4 km away from their home property on land already in the family and returned to the industry. Rachael farms with her parents Eddie and Anne, uncle Andrew, 70, who keeps the dairy spotlessly clean, sister Maureen who keeps the books and brother Leo. There were positive times — like when a horse owned by Anne, Tears I Cry, won the $600 000 Emirates Stakes in Melbourne, but a lot of challenges. Anne was diagnosed with cancer in 2012 and successfully fought the disease, Tears I Cry was bitten by a snake last year and died and they lost five horse stables, floats and equipment in a shed fire in March. “I said to Mum, can we get this place blessed, I’m sick of bad luck,” Rachael said. This year is considerably brighter and Rachael
is relishing her responsibility. “I did a Certificate IV through RIST last year,” she said. “I didn’t feel confident enough to take on managing the farm without having that study behind me.” She works closely with teacher Janet Hunter, who is now a farm consultant, and with agronomist Bill Feeley from Bade Ness. “We had managers but they didn’t know the way we like to run the farm,” Rachael said. “It’s hard to give control to someone else. With the Cert IV, I felt confident I could manage pastures, nutrition, paddock rotations and soil tests and breeding, and I already knew AI and preg testing from a Cert III at TAFE. “One of my things is happy cows. We have the radio on and don’t talk much to each other
and they come up nice and easy. We don’t use backing gates and they’re happy. We had a farm manager who used dogs and pushed them quite hard but that didn’t work. Our cows are basically pets; they’re easy to deal with.” They milk 400, about 150 pure Jersey, 180 crosses and about 70 Holsteins but they aim to become fully Jersey. “We just joined 115 replacement heifers and about 80 of them were straight Jerseys. We don’t want any more than 420, so next spring calving whatever’s not Jerseys we’ll sell as springers. “We haven’t sold young stock in the past but now we’ve met our quota it’s an option. That’s what I’ve been aiming to do and I wanted a good record as well so it’s a saleable herd.” Jerseys are preferred for their good feed to
milk ratio and high milk solids, and the opening prices for the season are giving Rachael and her family reason to feel confident. “Everyone is pushing for more milk and they’re pushing the price up which is really good to see,” she said. “We supply UDC. The opening price was $6.60 then went to $7, we sit at $6.80 after deductions. “Hopefully the dairy industry keeps going well and there seem to be promising things happening.” Rachael says well-fed cows are happy and good producers, which reflects well on the bottom line. “They’re milking well and this year’s heifers are the best we’ve grown out,” she said. Profit was up about $200 000 during May so Rachael is confident she’s heading in
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MANAGEMENT // 11
the right direction. The dryland farm can’t be self-sufficient but the McGraths are investigating irrigation and have altered their feeding system. “We buy wheat delivered on farm and a premix which has added crushed corn and also includes lime, salt, acid buffer, oil, magnesium oxide, and we add an elite dairy premix pellet, magnesium sulphate and Monensin,” Rachael said. “I didn’t want to cut their feed because it was expensive; they’re milking well and paying for themselves.” With a new milk price focusing on milk solids, Rachael is happy the Jerseys are achieving 1.8 kg/ MS per cow and producing about 22.5 litres, while some Holsteins have topped 40 litres. Their 40-unit rotary dairy with a GEA system and Dairy Plan, automatic cup removers, retention bars, flow meters, automatic drafting system provides good data, though Rachael wants to spend $70 000 to add collars for the cows. “With the collars, if I’m away I can still see exactly what’s going on with heat detection and we can track their walking, rest time and rumen function and pick up sick cows a lot earlier.” They are also boosting home-grown feed, following the cows with urea and gibberellic acid which has led to significant increases to the growth rate. “I wanted to put a bit of weight and energy on them before joining so we’d get a better
conception rate. We haven’t been bad — about 70 per cent — but I wanted to improve that. This year I’ve been checking dirty cows once a week and then Mum and I flush them with iodine and then Metricure if they’re not coming good. Changing management and watching them all the time is improving the rate.” Dry conditions in recent years prompted a change to calving which now starts two weeks later in mid-March, and a general tightening of the system to avoid winter calving while giving those not in-calf a second chance in spring. Rachael has also bought her first show cow, Wallacedale Melvara Melanie, and hopes to follow Leo who has had success with his Wootanga Park Jerseys. Rachael is keen to forge a strong future in the industry. She was sponsored by the Gardiner Dairy Foundation to participate in a New Zealand study tour, took part in a recent Jersey Australia tour and would like to see more support from the industry for young farmers. “I want to stay dairy farming and ultimately own the farm,” she said. “I have 20 cows in the herd and some young stock and we’re looking at possibly trading my cows for a percentage of shares. “The biggest thing is you can’t buy in unless you have family or you’ve made money elsewhere. It’s not a job, it’s a lifestyle and it’s what I enjoy.”
DAIRY NEWS AUSTRALIA JULY 2019
12 // NEWS
Joe urges farmers to talk about mental health The National Rural Health Alliance says that men in regional and remote areas were up to two times more likely to take their own lives. In this article, Jeanette Severs talk to a farmer who has struggled with mental health and has a few words of advice for other men. Joe Megetto.
BY JEANETTE SEVERS
GETTING THROUGH tough times on the farm
was the focus of dairy farmer Joe Meggetto’s presentation at the Climate Risk in Agriculture conference, held at Warragul in June. Mr Meggetto, who runs a 250-head selfreplacing split-calving milking herd on 225 ha at Warragul, has had depression for an estimated 22 years. At one time he carried a couple of bullets in his pocket every day. It was only recently he sought help from his GP. He now speaks openly about his depression, hoping to encourage other men to speak up and get help. From the audience reaction at the conference, his approach engages other men and women. Mr Meggetto bought his first dairy farm in 1991, then leased his parents’ farm from 1994 as a turnout block, when his dad, Mario, retired. More recently he added 121 ha of neighbouring country to the dairy farm. He milks the Friesian-Holstein herd in a 15-aside herringbone dairy. He cuts his own pasture silage and hay, aiming each year to fill three pits with silage cut off 57ha; another 300–350 rolls of silage; and in a good season, 350–550 round bales of hay. “Silage and hay is money in the bank. At the moment, I’m feeding out four-year-old hay,” Mr Meggetto said. “I can milk more cows but I’d sooner conserve pasture for hay and silage production.” He keeps pasture growing through dry summers with irrigation licences on two dams — one 18 Ml and another 48 Ml. His business focus is on growing production by 10 to 15 per cent annually and increasing fat solids in the milk — to this
end he started joining 50 per cent of the herd to Jersey semen. When you look around the farm, the animals are healthy and curious, the machinery is clean and modern, sheds and fences are strong and straight, laneways are well maintained. It looks like a typical dairy farm. Mario continues to work daily on Mr Meggetto’s dairy farm. Initially, it was Mario who saw much of Mr Meggetto’s anger. Michelle Meggetto said she would know what mood her husband was in, because Mario would drop in and recount his day. “If he was really bad at home, everyone copped his attitude,” Mrs Meggetto said. Initially she thought his anger was part of his personality, but she realised it had changed him. “I knew something was wrong, but he wasn’t listening to me,” she said. Mrs Meggetto attended counselling and spoke to friends and family. She tried to protect their children from her husband’s anger. Eventually, she realised he was lonely, even though Mr Meggetto employed a farm worker and engaged with his father every day. “I worked out he was lonely and afraid of being alone,” Mrs Meggetto said. “He wanted people to ask him ‘how are you?’ He didn’t know what I was seeing or why he was doing what he was doing.” At one point, his brother intervened. “I told my brother I was carrying a couple of bullets in my pocket,” Mr Meggetto said. “I would go down the back paddock to feed the cows and I’d sit in the tractor and cry.” The day he told his brother about the bullets, at afternoon milking Mr Meggetto had visitors — local policemen dropped in to inquire how
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he was going. His brother took away most of the guns from the farm. Mr Meggetto tried counselling but struggled to find someone he could connect to. “It’s not one-size-fits-all. You have to find a counsellor who understands you. I want to talk to someone who understands the dairy industry,” Mr Meggetto said. “Half the counsellors out there don’t know what agriculture is. “I was lonely. Farming is very isolated. “A couple of times I phoned a helpline and got an answering machine. That’s not a solution. When someone makes that phone call, they want to talk to a person.” But it took a few more years before Mr Meggetto realised he needed help. Mrs Meggetto asked his best man — another farmer — to speak to him. “I started crying. I was so angry at home. I’d yell at Michelle and the kids, taking it out on them when it’s got nothing to do with them. I thought Michelle was ready to leave and take the kids. I knew I had to do something,” Mr Meggetto said. He took himself to see his local GP and admitted to having suicidal thoughts and talked about being angry and his high-risk behaviour. Since that day, Mr Meggetto has been on anti-depression medication. Sometimes he asks the doctor if he can stop. “I always tell him I’m feeling good and can I go off the medication. The GP says, no, we’ll keep on it,” Mr Meggetto said. “I still have down days and weeks, but I’m coping better. I still think of suicide sometimes — hopefully one day I won’t think of it at all.
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“Seeing my GP was probably one of the best moves I ever made. I’m not cured, but I’ve learned and I’m still learning to manage depression and my life. “I was diagnosed suicidal and what scares me is who would have found me — they don’t deserve that.” Mrs Meggetto now knows the signs to look for. “His tolerance drops and he’s not as talkative. It’s still a challenge for him to share his thoughts and feelings,” she said. A couple of years ago, Mr Meggetto participated in a local calendar initiative to highlight mental health and depression. He also started talking openly about his journey. He has some ideas about how the dairy industry could help farmers. “Dairy processors should have a field officer with mental health training, who farmers can contact,” he said. “It’s about having someone available who knows dairy farming. “Men also need to get better at picking up the telephone and asking, how are you? “Since I opened up about it, I’ve had a good mate admit he’s depressed too; and he went to the GP and is going well. “I want the message to get across, that it’s okay to seek and get help. This condition is very common. “A bit of medication goes a long way to feeling better.” • Anyone needing help can contact Lifeline on 131 114.
DAIRY NEWS AUSTRALIA JULY 2019
AUSTRALIAN DAIRY PLAN // 13
Brumby hears farmers’ concerns THE FIRST round of consultations into the
development of a new national dairy plan has generated a large amount of feedback from more than 1000 people. Dairy Plan chairman John Brumby will have the job of sifting through the comments to get a grip on the concerns of the nation's dairy farmers. Mr Brumby, a former Victorian treasurer and premier who left politics more than eight years ago, is preparing for stage three of the project, which includes national workshops involving dairy farmers, their representative bodies, processors, investors and industry experts. Mr Brumby has had some involvement in agriculture over the years but does not count himself as one of the dairy experts. He was appointed to head the investigation by a group of industry leaders who were applying best practice approaches in planning and development and wanted to find an independent chairperson. "I think there was a resolve to find someone who had no allegiance to one group or another or who would favour one over another," Mr Brumby said. He intends to apply the skills in planning and strategies he has accumulated over years in political life. And why would he choose to accept a job when the industry is facing such huge challenges? "I've always had a passion for regional development, and the dairy industry is such a critical part of our regional economic and community landscape," he said. "I can't imagine a regional Australia without a dairy industry. "When you think about Australian manufacturing today there are not many things we are making or producing any more and selling overseas. "We are producing milk on farms, adding value to that and turning it into infant milk formula, cheese and yoghurts. "I think that's an important issue. "We need to get this right for our regions." The Dairy Plan — set up by Dairy Australia, Australian Dairy Farmers, Australian Dairy Products Federation and Gardiner Dairy Foundation — is expecting to have a report completed by the end of the year, and Mr Brumby said he expected to be able to meet that deadline. He said the summaries produced from the 23 workshops held around Australia have produced about 10 to 15 common issues. "In some areas, where farmers are under intense cost-price pressures, the issues have been around those costs, and in other regions the discussions have been around medium and longer term issues for the industry." He pointed to the Nanango meeting in Queensland, where milk prices and costs were high on the agenda, while in Mt Gambier there
was more focus on issues like marketing, education and the value of milk. Mr Brumby acknowledged that one common issue was the need for strong advocacy for the industry "For many farmers, they are caught in a
perfect storm of costs pressures and prices, and it's causing terrible pain. "They want someone to help them and value their industry." The industry has set aside about $900 000 for the development of the plan.
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DAIRY NEWS AUSTRALIA JULY 2019
14 // MANAGEMENT
Making a moove to a new processor in south-west Victoria SIMONE SMITH
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south-west Victoria. The 240-Jersey herd ambles to the herringbone dairy from paddocks at the foot of Warrion Hill, just north of Colac. There’s been a shower of rain, but the sun’s out and a rainbow appeared across the top of a hayshed, three-quarters full of round hay bales. “I’m feeling pretty confident,” the 28-year-old farmer said of the industry. “There’s not many of us left, so they — the milk processors — are going to have to pay us.” Sarah, like many other dairy farmers in the region, is preparing to swap milk processors and will start the new season with a different sign on the front gate. It’s almost been a year since she leased her family farm, a property just less than 202 ha with bore-fed irrigation, and three years since she started running the business. Farm gate milk price was the driver of her swapping from Fonterra to Australian
Consolidated Milk. “I think with a smaller milk production pool, companies are going to have to pay more to get you and then to keep you,” she said. “It (the price) had to go up, grain’s up, power is up and if the milk price didn’t go up there would be more of us leaving the industry.” Sarah expects to break-even this season but has been able to do some major farm repairs and purchase a 36 ha block. “Dad had always wanted it,” she said. “It is next door, it’s flat, clear land and we can irrigate it straightaway.” The purchase of this block has consolidated the Chant business as they sold an out-block north of the farm. The new land means less travelling, but it will also open the door to build-up herd numbers. Sarah has budgeted on lifting numbers by 10 to 15 per cent and will do it naturally. This year she reared 105 heifers with these ear-marked as replacements and to also provide cash-flow via the export market. Producing and storing large volumes of homegrown feed has been a priority for the Chant
DAIRY NEWS AUSTRALIA JULY 2019
MANAGEMENT // 15
Sarah Chant wants to increase her milking herd by 10 to 15 per cent during the next few years.
family for the past eight years, with a direct drill used to sow a lot more annual pastures and crops. This year almost 202 ha — plus a 40 ha outblock delivered 1200 rolls of silage and 500 rolls of hay — including 100 of rye-grass and the balance oaten hay. This feed is stored and most used for dry cows and as back-up to the irrigated pastures and summer crops including turnips and pasja. Irrigation is available across 53 ha and ensures year-round grazing, but it’s also used to establish newly sown pastures at the beginning of autumn. “Most of the (conserved) feed is dry cow feed but I make sure we have enough silage to get through the season,” Sarah said. “I don’t have to go out and buy hay at the price people are paying at the moment, I have enough to get through.” This past year the season hasn’t been “too bad” overall, according to Sarah, but there were points where rain evaded the region for a little too long. “I was really nervous last spring, all the silage crops were looking pretty desperate but then late September we got rain and it saved the crops,” she said. “We were hoping to do the oats for hay, but they were so dry, we talked about doing them for silage — and then it rained and saved us.” In the dairy, the herd’s grain ration in the bail was maintained. Each cow receives about 6 kg of a crushedgrain mix, made up of mostly wheat, in the bail each day. “I didn’t want to lose production, if you start taking food off cows you start getting trouble such as having issues getting cows in calf,” she said.
“The feed costs are low, because of the irrigation and our summer crops are cheap feed.” Breeding, and especially Jerseys, is a passion of Sarah’s, following in her late father’s footsteps with the registered herd of Warrion Jerseys. She used a variety of sires for joining this year, including Disco, Demos, Chrome, Casino and Jeronimo. “I’m happy with the type in this herd, that’s not to say I will be looking to let it slip in anyway, but I’m going to concentrate a bit more on milk and fertility,” she said. During the 2018 season, the 350-day rolling herd production average was 6034 litres per cow with 510 kg butterfat and protein. The not-in-calf rate this year was 12 per cent, Sarah wants this figure to be below 10 per cent. Autumn joining includes six weeks of artificial insemination and six weeks running with the bulls. In the spring, a beef bull is used for joining over four weeks as Sarah only wants one batch of heifers — the same age — entering the herd each year. Sarah operates the farm with one full-time worker and said that most people were positive and supportive about her role in the dairy industry. “There are a lot more women who are takingover and running the show,” she said about those who are managing farms. “Honestly, I think the only thing stopping us could be the limits we put on ourselves. There’s no reason why girls can’t do it. I just love the cows and I love breeding calves. It is a family tradition.” Storing ample fodder has been a priority for the Chant family of Warrion and has meant Sarah hasn’t had to purchase hay this season.
DAIRY NEWS AUSTRALIA JULY 2019
16 // NEWS
Brendan leading the way for dairy conference DAIRYING HAS always played a major role in the Hehir family. The family, parents Pauline and Terry along with son Brendan, milk 550 cows on an organically certified operation at Wyuna, north of Kyabram. Brendan has just been appointed chair of the Australian Dairy Conference programming committee for 2020. As a Nuffield Scholar, Brendan is no stranger to the ADC format and agenda, with dairy debate and forward thinking in his bloodline (dad Terry is a founding director and visionary of ADC). Brendan will oversee a team of dairy farmers, scientists and industry representatives to shape and form the issues most pertinent to the country’s dairy industry. He said the Australian dairy industry is currently going through a significant change with
many exiting the industry as pressure mounts. “As dairy farmers we need to be more adaptable, more innovative and more sustainable in order to operate successfully,” Brendan said. “ADC is never backwards in addressing the issues that are most relevant and confronting and so we have a big responsibility to keep pushing the envelope and bring topics that both resonate and spark some good debate. “ADC has always been a big part of my life, particularly with Dad being involved in its inception, so to be offered the opportunity to chair is very humbling,” he said. The ADC is hosting its next conference in Melbourne from February 20 to 21, 2020 About 500 dairy delegates are expected to attend the conference designed by farmers, for farmers. “The challenge is to deliver the most topical issues the industry needs to confront.
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Without giving anything away from early discussions, as ADC always manages to do, expect
the unexpected in 2020,” Brendan said.
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DAIRY NEWS AUSTRALIA JULY 2019
18 // NEWS
Farmers braced for tough winter THE NATION’S farmers are bracing for a tough winter, after autumn rains eluded much of the country, hindering crop planting and pressuring livestock producers moving into the colder months, the latest Rabobank Rural Confidence Survey has found. However recent widespread rainfall across Western Australia and parts of South Australia and the eastern states has offered hope of some reprieve for agricultural producers for the year ahead. While the latest quarterly survey of 1000
Australian farmers, released in June, found an uptick in overall rural confidence in the nation, sentiment remained at low levels — with the rural confidence index edging up to a net reading of -1 per cent, from -11 per cent last survey. Rabobank Australia chief executive Peter Knoblanche said while some areas of Australia had welcomed good rains in early May, many key agricultural regions had struggled through a severely dry autumn, waiting for the seasonal break to replenish well below-average soil-moisture levels and depleted water catchments, after such a
prolonged period of dry weather. “This will have been weighing heavily on farmers as the winter cropping season began and as livestock producers moved into winter with poor pasture growth and low dam levels,” he said. Mr Knoblanche said there was now some potential for an average crop for some parts of the WA wheat belt. Meanwhile Victoria, Queensland and NSW all reported an upswing in sentiment — albeit from a low base — and sentiment remained subdued in Queensland and, to a lesser extent, NSW.
Farm business performance and investment While farmer confidence posted some improvement this quarter, investment appetite among farmers was little changed. A total of 19 per cent of survey respondents indicated they were looking to increase investment in their farm businesses over the next 12 months, while a further 64 per cent intend to maintain investment at current levels.
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In Victoria, Mr Knoblanche said, confidence had climbed to its highest level since late-2017, as widespread rains in early May had enabled growers to get their crop in, with follow-up rains received since. Mr Knoblanche said it was the dairy sector which saw the biggest lift in confidence, albeit from low levels, signalling early signs of a recovery in dairy farmer sentiment. “Processors have come into the market with strong milk price signals for the 2019–20 season, and while this has started to drive that lift in farmer sentiment, it has been somewhat muted by the elevated input cost environment for feed and water,” Mr Knoblanche said.
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Rain events Rabobank regional manager for southern Victoria and Tasmania Hamish McAlpin said there was a lot of anxiousness leading up to what was a late autumn break, but widespread falls in early May had started to turn the season around, with follow-up received since. That said, it remains very dry in east Gippsland, although rain was received in the far-east of the region, with farmers battling drought conditions for the past two years. Mr McAlpin said despite the good start for many across the state, spring rainfall would be critical, with soil moisture levels remaining low at depth following “the extended dry” in many parts of the state. The heaviest of the falls, he said, were north of the divide, particularly in the upper north-east regions around Corryong and the Kiewa Valley. “This has seen the catchments for the Murray and Goulburn systems start to wet up and has alleviated the need for temporary water — which spiked around $640 a megalitre a few weeks ago and is now trading around $550 a megalitre — but many rain events will be needed to fill the catchments,” Mr McAlpin said. Confidence boost By region, the biggest lift in confidence (although from a low base) was reported in the Goulburn Murray region, with 58 per cent of surveyed farmers there expecting conditions to improve (up from 28 per cent in the March quarter). Mr McAlpin said this improvement in sentiment had also been driven by the region’s dairy producers, with “competition for milk intensifying as processors try and cover supply shortages out of an already depleted milk pool”. “And it is this competition, together with stronger global fundamentals, that has driven expectations for full-year prices in the 2019–20 season to close at record high levels, with some dairy producers locking in multi-year contracts at elevated prices,” he said. Mr McAlpin said while there was good evidence of a stronger milk price next season, headwinds remained in the form of high feed and water costs. And this was reflected in the survey, he said, with 36 per cent of dairy respondents expecting their prospects to improve (up from 18 per cent), but 33 per cent expecting a similar outcome to last year, and 30 per cent believing conditions could worsen.
DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 19
Henry receives honours in humble stride HENRY BATH has received many awards for
services to the dairy industry and the community of Cedar Creek in Queensland’s sunny north over his 81 years, including a recent OAM in 2019, but the awards do not faze him one little bit. As a fourth-generation dairy farmer, Henry was born in Gympie and has lived his entire life on the family farm at Greens Creek. As well as running a successful dairy business, Henry has devoted his life to family and community. He has led a rewarding and fulfilling life and he firmly believes hard work and good health (no smoking and drinking) helped to lay the foundation. The Bath family have lived at Greens Creek since the farm was selected by first deed by Henry Bath (senior) in 1905. The farm was established as a dairy by Henry senior, milking 50 cows by hand and from those early beginnings, the family would then go on to spend the next 105 years milking on the original selection (with a few additional land purchases over the years). “My dad Viv took over the farm off Henry senior and then my wife Thelma and I started sharefarming in the early 1960s,” Henry said. “We bought 113 acres on one side of the home farm which had a small dairy on it and in 1969 we bought the dairy on the other side to combine our herds together on 600 acres.” At the peak of its operation the family milked 280 cows. “We always had an Illawarra herd until I got involved in the Aussie Red society through Bill Thompson and by the end of the 1990s we had a full Aussie Red herd, sired from imported red semen from Scandinavia.” Henry’s son took over the family farm but sadly, reducing farm gate prices forced the family out of dairy in 2010. “After 105 years we were no longer dairy farmers and it was a very sad day for us. We sold 200 odd milkers for an average of $1600 — back in the old days cattle had a value and your assets had a value, today they don’t.” Over the years the dairy industry has given so much to Henry and he has been involved in many dairy and community organisations: giving back and being part of the community has always figured heavily in Henry’s life. He was a member of the junior farmers and went on to be an adviser for 25 years. “I was involved in establishing a permanent brick building at the show grounds for an animal nursery, in fact I went guarantor for that one. “I was chairman of the Wide Bay Dairy Association which at one point was the largest cream factory in the Southern Hemisphere. I started way before it merged and became a co-op in Ipswich and then it went on to merge into Dairy Farmers.” Henry has been heavily involved in the fire
brigade and received a national medal for his 50 years of service. “I still go to the meetings, but they won’t let me fight fires anymore!” he said. Henry carried the Olympic torch on it’s journey from Cairns to Melbourne in 1956 and again in 2000 for Sydney. “I have had some great honours over the years. “Last year I was selected to carry the Queen’s baton for the Gold Coast Commonwealth Games and people have asked me if I will be around to carry it for Brisbane in 2032, I’ll only be in my 90s then,” he said. Henry has no regrets and he has always tried to do the right thing. He said someone once said to him, ‘I have never heard a bad word from anyone about you’. “I have worked hard over the years and Greens Creek has been a great place to raise a family. “I was married to Thelma for 52 years and lost her six years ago — we were husband and wife and we worked together all the time, but when you are running a business you just have to learn to get along and we had many happy years. “We had two daughters and two sons, and now eight grandchildren and six great grandchildren. “I also have a few great things in my cabinet that have great personal meaning to me, but I am no different now to what I was before all the awards, I am still the same person,” Henry said. Some of Henry’s dairy achievements include: ■■ Queensland Dairyfarmers’ (formerly Dairyman’s) Organisation: past chairman and area representative, Wide Bay District Council, past director, Wide Bay Co-operative Dairy Association. ■■ Lindsay Volz Award, Queensland Dairyfarmers’ Organisation, ‘for service to the dairy industry’, 2011. Farmers in Queen’s Birthday honours list ■■ Margaret Joan Russell from Parkside South Australia received an OAM for services to the community, which includes a significant contribution to dairy — as a member of the Dairy Authority of South Australia from 2011–14, member and deputy chair of the Metropolitan Milk Board, 1984–1993 and chair of the Dairy Authority of South Australia, 1993. ■■ James Leslie Thompson from Swan Hill, Victoria received an OAM for service to the community. His community involvement included a six-year stint in the Dairy Farmers Association as a member from 1968–74, vice-president 1968–69, secretary 1969–74, district council delegate 1969–74 and district council vice-president from 1973–74.
Greens Creek dairy farmer Henry Bath was awarded an OAM for services to the community, which includes a life-long involvement with the dairy industry. Henry is a fourth generation dairy farmer and spent some of his happiest times working on the farm with his wife of 52 years Thelma, by his side.
DAIRY NEWS AUSTRALIA JULY 2019
20 // NEWS
Scientists tell farmers to act on climate change JEANETTE SEVERS
THE SCIENTISTS were the rock stars at the Climate Risk in Agriculture conference, held at Warragul in June. Under discussion was how to build on-farm resilience around climate change and what are the risks and opportunities for doing nothing in the future. Farmers attended from western, northern and north-east Victoria, southern NSW and across Gippsland, along with environmentalists, scientists and government bureaucrats. It was obvious the future of food production is in the hands of farmers who are aware of and developing risk profiles around climate adaptation for their agribusinesses. Dr Andrew Watkins, from the Bureau of Meteorology, set the scene with a description of increasingly dry winters across the eastern states. “By 2030, the Traralgon climate is likely to resemble Bathurst now. By 2050, it will resemble Wangaratta’s current weather pattern,” he said. “By 2090, Traralgon’s topography and climate will resemble the current conditions at Mudgee. “They’re not exactly two towns I would have put in the same basket. Australia will have drier middle months of the year.” Frosts are likely to be more severe and drier conditions are likely. Meteorologists and climatologists worldwide are confident they are able
to forecast weather modelling and conditions as far forward as 2100. “There’s no debate about climate change, it’s here: it’s now up to us as a society how we go from here,” Dr Watkins said. “So we should be debating how we’re going to deal with and manage climate change and its impacts. “Soils are drier, so when rain falls it’s more likely to be sucked up rather than run off into storages and creeks and rivers,” Dr Watkins said. “So expect less runoff from catchment areas into rivers and storages.” That was the theme that pervaded the day. Australian National University’s Climate Change Institute’s professor Mark Howden shared the 2007 Nobel Peace Prize. His message was even more blunt. “The Australian government and industry are failing to meet our agreed global emission reduction targets,” Prof Howden said. “Climate change is not new science, there’s a history of predictions that go back before 1850. “At the moment, we’re heading to a 4 to 5 °C temperature increase, rather than the goal of 1.5 to 2 degrees. “The traditional runoff of rain into dams in Western Australia was 330 Gl. The current realtime scenario is 50 Gl. “The climate change forecast scenarios of 2040 are already happening. The impact will be felt in agriculture, where we’re already seeing a
Charlotte Turner warned about the legal and financial risks of doing nothing about climate change adaptation in agriculture.
20 per cent drop in production.” He called on the Federal Government to openly acknowledge climate change, but warned that the rest of us needed to focus forward without waiting for government.
“We need to grow up and focus on climate adaption for Australia and globally,” Prof Howden said. “Farmers have lots of solutions at their fingertips — they are adaptable and adopters of change
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DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 21 Dr Andrew Watkins and Prof Mark Howden warned about the need for climate change adaptation and how farmers can lead in their industry.
and they are strategic decision-makers. They are hampered in adaptation because some solutions haven’t been invented or developed yet.” Prof Howden advocated for a value systems approach, involving farmers, food processors, logistics operators, transport and institutions. He encouraged farmers to get off the farm to learn about climate change. “Find a physical locality that already reflects the change predicted for your district. Go and visit it and learn from the local farmers how they manage that environment, climate and weather systems,” he said. “Be brave enough to seek your information from many sources. You’re seeking major change. If we don’t make change, we’re going to damage ourselves and our country.” Prof Howden called for a price on emissions and for bipartisan intergovernmental responses to climate change that were integrated with institutional leadership. His view was supported by the last speaker
of the day, Charlotte Turner, of Minter Ellison, who focused on the financial and legal risk of climate change and the liability risk of failing to move to a carbon neutral business situation. She discussed how banks and insurance companies are already viewing agribusinesses through a risk lens that included whether the farmer’s business plan addressed climate adaption strategies and weather impacts.
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She used soil compaction — resulting from changed rainfall patterns and drought — as an example of risk. “With uncertainty comes risk and with risk comes loss and liability,” Ms Turner said. “Climate change is a threat multiplier. In Australia’s eastern states, we have already experienced increased short- and longterm flood risks. Extreme heatwaves have a
significant impact on agriculture. “If the bank doesn’t feel the farmer understands these impacts, they won’t want to loan money for business development or land purchase. It’s about vulnerability to risk and capacity to repay loans. What would be the impact of water scarcity on clients’ vulnerability? Continued page 22 >>
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DAIRY NEWS AUSTRALIA JULY 2019
22 // NEWS
Clydebank dairy farmers, Sandra Jefford and Wilco Droppert, have begun changing their onfarm practices to mitigate climate change. Ms Jefford spoke about their initial and some of their planned changes. They are with Emma Orgill, Regional Agricultural Landcare facilitator in East Gippsland. <<From page 21
“Insurance companies and banks are already assessing the risk of increased heatwaves resulting in compacting soil and inland flooding; and, along eastern and southern coastlines, storm surges and land eroding into the sea. “By 2100, sea level is projected to rise by 0.8 m above present day levels.” She warned loans would be differentially priced based on the farm’s location risk and contain triggers for the farmer to achieve regular sustainability targets. Ms Turner said investment companies were already actioning shareholders’ environmental concerns, by demanding proof of how global emissions reduction targets were being
addressed along value supply lines. Businesses were already shifting their priorities to be attractive to future employees who brought environmental and social concerns with them as part of the conditions of employment. She said these future employment trends were already happening. “Institutional investors are driving change — they want their money to be safe,” Ms Turner said. The University of Melbourne’s Richard Eckard summed up the need for action in his presentation, focused on reducing greenhouse gas emissions in agriculture while growing productivity.
Two dairy farmers were part of a farmer panel at the Climate Risk in Agriculture conference. They spoke about how they were addressing the need to initiate climate adaptation changes on their properties. Clydebank dairy farmer, Sandra Jefford, talked about the innovations she and Wilco Droppert had initiated on their farm and were further researching and implementing, with an eye to weathering climate adaptation. They milk 340 cows. “Our reliable rainfall stopped in 2016. Because half of our farm is dryland, pasture growth is slow,” Ms Jefford said. The rest of the farm is irrigated using three centre pivots, fed by bores. “It takes a lot of energy to get that water out of the ground. We had an energy audit in 2017 and installed solar power at the dairy shed,” Ms Jefford said.
“Government needs to lead but because they are at the tail-end of change and particularly policy change, we need to expect the supply chain to respond to targets,” he said. He warned that Meat and Livestock Australia’s recent carbon neutral announcement for the industry contained codicils that relied on government leadership to change policy. He applauded with caution New Zealand’s recent announcement of a zero carbon emissions goal, which differentiated between carbon
“We're inspired to do more on the farm focused on energy reduction.” They also realise they spend a lot of time checking on bores and pivots. Motivated by the need to learn about available technology, the couple have visited other farms and researched the information and people who can address their concerns. “The question we have asked ourselves is, how can we be carbon neutral? We audited our pasture, learning about plant diversity, soil health and nutrition for the cattle. “We are learning a huge amount and it's enjoyable. “One of the plants we value very highly is chicory. We found if we let it go to seed, we get good regeneration,” Ms Jefford said. Having grown maize as a monoculture, they are now learning how to grow it as part of a multispecies crop.
dioxide and methane gases. “For dairy farmers, productivity goals need to focus on breeding more efficient cattle, with increased fertility and improved utilisation of pasture and feed,” Dr Eckard said. “The Holy Grail is a lower methane-producing animal. We can reduce emissions by 50 per cent now, compared to 50 years ago, using current technologies. “If farmers don’t want to change, then consumers will make them.”
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DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 23
Dairy award for Melbourne scientist A SCIENTIST whose work is boosting the $3 billion-a-year dairy export sector has been recognised with one of Australia’s top awards. Lydia Ong from the University of Melbourne has been presented with ICM Agrifood award at a gala event in Sydney, organised by the Australian Academy of Technology and Engineering. Dr Ong, who is part of the ARC Dairy Innovation Hub at the Department of Chemical Engineering, uses microscopy to study the behaviour
DA BOARD NOMINATIONS SOUGHT FOR THREE POSITIONS Dairy Australia is calling for nominations to fill three vacancies on its board of directors, ahead of elections at its annual general meeting in November. Three serving directors’ board terms are expiring this year. Chair Jeff Odgers and Paul Wood plan to stand again for election, while Jan West will retire from the board. In line with Dairy Australia’s constitution, one of the vacant positions must be filled by a milk producer, with the other vacancies requiring a director with skills in agribusiness, innovation and adoption and one with extensive experience in finance, auditing and risk management. Dairy Australia Board Selection Committee chair David Lord said the board must comprise of a mix of skills that represent all sections of the industry. “With the industry going through particularly tough times, there has never been a more important time to get involved and we are looking for new leaders from right across the supply chain, to take up critical roles in helping dairy meet the challenges we are facing,” Mr Lord said. To stand for election, applicants must undergo a selection process overseen by the selection committee, which is made up of one Dairy Australia board director and four other Australian dairy industry representatives — two nominated by Australian Dairy Farmers and two by the Australian Dairy Products Federation. Alternatively, candidates may stand for election if their nomination is endorsed with the signatures of at least 100 current Group A members. ■ For more information, phone Rimfire Resources’ Mick Hay on 1300 380 701 or (07)38783411
of food components, such as protein and fat on a molecular level. She uses this to work out how to improve processes in the Australian dairy manufacturing sector. Dr Ong said her aim was to improve food quality and minimise waste by improving the texture and microstructure of dairy products. “I am currently working on a range of projects including the microstructure of cheese and the
processing of yoghurt, cheese and milk.” Academy president Hugh Bradlow congratulated the winner. “The ICM Agrifood Awards recognise earlycareer scientists or technologists who have demonstrated excellence, innovation and impact in relation to food and agriculture in Australia,” Professor Bradlow said. “The nation’s future prosperity depends on embracing new technology to address critical
national challenges. “More than ever, we need knowledge creation, technology and innovation that can be harnessed to drive commercialisation and economic and social benefit. Winners of the ICM Agrifood Awards each receive $5 000.
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DAIRY NEWS AUSTRALIA MAY JULY2019 2019
24 // NEWS
Tahlia set to learn on UK exchange FOURTH-GENERATION DAIRY farmer, Tahlia McSwain, from Chapman Hill in Western Australia has been announced as the 2019 Holstein Australia Youth UK Exchange winner. Funded by Holstein Australia, in partnership with Holstein UK, the exchange begins in late September. Tahlia will spend a month travelling the length and breadth of Britain staying and working with Holstein UK members, and will also take part in the South West Dairy Show, the United Kingdom’s largest dairy show, and the All Breeds All Britain Calf Show. The All Breeds All Britain Calf Show is one of the highlights of the UK’s Holstein Young Breeders calendar, featuring showmanship and calf conformation classes for seven dairy breeds. The focus of Tahlia’s trip will be learning, practical on-farm experience, skills development and networking. She will gain first-hand knowledge of dairy farming in the UK and is planning to use that information to further her own career in the family business, Boallia Creek Holsteins. Tahlia, 24, is a Western Dairy Young Dairy Network committee member, Southern Districts Rural Ambassador and graduated from Charles Sturt University with a Bachelor of Agricultural Business Management. She holds a Certificate
III in Agriculture through the National Centre for Dairy Education Australia. In conjunction with her parents, Kingsley and Judy, Tahlia runs Boallia Creek Holsteins, milking 600 Holsteins on the 800 ha property. The farm has been in the McSwain family since 1930 when Tahlia’s great-grandfather moved from Victoria to set up the farm with humble beginnings — six Jerseys and 38 ha as part of the Western Australian Government’s group settlement farm program. Tahlia’s passion in the business is in the breeding and genetic selection of her animals and the science of improving overall milk quantity and quality. She is also focused on the many changes facing the industry and how the next generation of dairy farmers will need to adapt to meet an environment shaped by a changing climate and animal welfare issues. “I’m really excited to be heading to the UK in September and looking forward to gaining a real insight into the differences and similarities in the Holstein world between the two countries,” Tahlia said. “Visiting Holstein operations overseas, understanding the way they farm and operate, is a fantastic opportunity. In an ever-changing world with technology in farming becoming more and
more important to meet the challenges my generation will face, seeing the technologies available in Europe will allow me to bring back ideas for the future of Boallia Creek.” Holstein Australia chief executive Graeme Gillan said Tahlia’s passion, knowledge and commitment to the dairy industry, the Holstein breed and the family business were key in her selection for the exchange. “Our interview panel were impressed with Tahlia’s vision, and how she intends to use the experience she gains in the UK to further both her dairy career and the family business. She will be a great ambassador for the next generation of the dairy industry in Australia overseas,”
Mr Gillan said. “Interest in the Holstein Australia Youth UK Exchange continues to grow, with a record number of applicants this year. Overall the calibre of applicants was very high, and if this is representative of our future dairy farmers and industry leaders, I think the Australian dairy industry will be in very good hands.” The return leg of the exchange program will take place in early 2020 with a young UK dairy farmer spending a month working with Holstein Australia members in Victoria, South Australia and Western Australia, taking in International Dairy Week and a dairy youth camp.
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DAIRY NEWS AUSTRALIA JULY 2019
26 // MARKETS
Australian milk production continues to slide, while global markets present opportunities
GLOBAL IMPACT SOFIA OMSTEDT
THE 2018–19 season will most certainly be
remembered as an exceptionally challenging season for the Australian dairy industry. Universally high feed costs, record high temporary irrigation water costs and widespread dry seasonal conditions have weighed heavily on milk production. Whilst some regions had the buffer of a favourable spring, others endured a long stretch of dry weather, exacerbating farmers’ exposure to purchased feed markets. Dairy Australia’s recently released Situation and Outlook report reveals how farmers have responded to these challenges and shows how international markets continue to impact the Australian industry. Season positives Notwithstanding the fact that for most farmers the 2018–19 season has been one to forget, some things are going right. Global commodity markets have recovered and remain well balanced. The impact of the Northern Hemisphere spring has been pleasantly benign, with European and US milk production growing slowly. At the same time, New Zealand’s milk flows have dropped faster than usual through the Southern Hemisphere autumn. While supply of dairy is growing at a slower rate, demand for dairy remains robust. Dairy exports to Greater China (China, Macau and Hong Kong) grew 4.7 per cent to 2.9 million tonnes at the same time as dairy exports into South-East Asia expanded even faster, up 10.5 per cent to 2.1 million tonnes. The ongoing trade dispute between the US and China has created some disruption to ongoing market balances. It has resulted in US exports into China contracting, while the US has redirected products to South-East Asia. This has seen export competition in the market increase substantially. Despite this, and the disruption brought on by the African swine flu, dairy demand has proven resilient and continues to support pricing. National outlook Nationally, a timely autumn break has provided a kickstart for south-west Victoria, South Australia and parts of Gippsland, somewhat buffering the impact of high purchased feed costs. Cash flow remains an issue for many farmers, and milk production has slipped in year-to-date
terms as culling continues in response. Other parts of Gippsland have struggled, as have northern Victoria and southern NSW, where water prices and availability dominate sentiment. Queensland and NSW have benefited from good rainfall across most areas from March, although high feed prices continue to strain cash flow. Tasmania has experienced slowing milk production due to the pressures of a dry season and increasing grain prices, though some areas recently saw this flip to wet conditions and waterlogging. Western Australia has followed a relatively consistent milk production track following a challenging start to the season, and pressure on feed prices from east coast demand. Drop in production Overall, milk production is well below 2017–18 levels and has continued to decline in year-onyear terms over the course of the year. Dairy Australia’s 2018–19 forecast for a decrease of between seven and nine per cent relative to 2017–18, is unchanged, implying a total of between 8.45 and 8.65 billion litres. Despite positive developments in recent weeks, a significantly smaller national herd, reduced farmer confidence, and ongoing cost pressures will continue to weigh on production in the short term. Hence, Dairy Australia’s initial forecast for 2019–20 anticipates a further drop of between three and five per cent, to a total of 8.1 to 8.3 billion litres.
DAIRY NEWS AUSTRALIA JULY 2019
MARKETS // 27
Supermarket price point The removal of the $1/litre price point for private label fresh milk, has boosted optimism for many in the industry. Following the example set by Woolworths, competitors Coles and Aldi added 10¢/ litre to their two and three litre private label lines, promising distribution of the additional funds to supplying dairy farmers. Together with stronger global markets and
a weaker Australian dollar, this positive domestic market development, has supported a higher farm gate pricing in 2018–19, and looks set to deliver further increases in 2019–20. Nonetheless, with surging costs having outweighed farm gate price increases this season, Australia’s milk production will likely remain under pressure. Substantial rainfall into spring will be crucial to improving the current outlook and is, no doubt, on top of most wish lists.
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DAIRY NEWS AUSTRALIA JULY 2019
28 // ANIMAL HEALTH
Preventing lameness in your herd and replication of bacteria which contributes to this problem. Larger stones and gravel on farm tracks are also more exposed after wet weather. Strategies to prevent lameness: APIAM ANIMAL HEALTH GEMMA CHUCK LAMENESS IN cattle can occur at any time of the year but extremely wet conditions are associated with higher rates of lameness in dairy cows. This is because prolonged exposure to moisture causes the hoof to soften and increases the risk of bruising, penetrating injuries and white-line disease. The skin between the claws and around the foot also softens, leaving the skin more prone to infections such as footrot. Wet muddy environments favour the survival
1. Low-stress cattle handling Calm and patient cattle handling reduces wear and injuries to softened hooves. Allowing the herd to move slowly along tracks will give cows the time to choose where they place their feet. Consider putting slow walkers and young cows in a separate herd to improve cow flow and reduce the competitive pressure between cows. Refrain from hurrying cows with quad bikes, dogs and even the backing gate. Soft hooves are easily damaged by twisting, sliding sideways and turning on abrasive surfaces, such as concrete. Avoid overcrowding in the yard and let the cows move into the shed at their own pace.
WANT TO FILL THE WINTER FEED GAP?
2. Repair track surfaces It may not be possible to re-surface tracks during wet conditions, but some maintenance can reduce further deterioration. Aim to clear drains and cut drainage paths through mud using a shovel and/or tractor blade. By clearing the mud that builds up on the edge of tracks, excess water is moved more easily off the track surface. Large and sharp stones should be removed, and potholes filled with fine screenings and compacted well. Temporary maintenance to tracks includes topping with sawdust, woodchips (at least 300 mm thick) or finely crushed rock/limestone. Severely damaged track areas should be fenced off until more permanent solutions are possible. Placing a log or a 125 mm high concrete nib wall (for the cows to step over) at the lanewayyard junction can reduce the number of stones brought onto the concrete. 3. Protect hooves on concrete As soft hooves are quickly worn down by rough concrete surfaces, it is essential to keep any concrete clean and free from stones. This should be part of a daily routine. Purpose-made protective yard matting, carpet
can generate 30 - 60% more dry matter within 3 weeks of application.
or rubber tiles can be strategically placed on turning areas and laneway-yard junctions to catch small stones brought into the yard. These mats must be cleaned off daily. 4. Ensure the diet is not contributing Insufficient effective fibre or a rapid transition to a highly fermentable diet are risk factors for rumen acidosis. Acidosis (both clinical and sub-clinical) causes inflammation of the sensitive tissues of the hoof. This results in lameness and/or a disruption to the normal growth of horn tissue and poorer quality horn. Any changes to the diet should be made slowly over seven to 10 days, especially when increasing the level of grain/concentrate feeding by more than 2–3 kg/day. Adequate fibre is essential to help prevent rumen acidosis. Aim for the diet to contain 35 per cent NDF, half of which has sufficient stalk length (4–5 cm) to stimulate chewing and saliva production. If dietary fibre is limited, consider including rumen modifiers in the diet. Other supplements such as biotin and zinc can be beneficial to strengthen the hoof but need to be used for at least six months.
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DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 29
Milk contamination explained PROFESSOR IN FOOD MICROBIOLOGY, CENTRE FOR FOOD SAFETY AND INNOVATION, TASMANIAN INSTITUTE OF AGRICULTURE, UNIVERSITY OF TASMANIA
RECENTLY, DAIRY company Lactalis Australia recalled eight varieties of milk over concerns the products could be contaminated with the bacteria Escherichia coli (E. coli). This recall affects several brands of milk purchased at Coles, Woolworths, IGA and other retailers in Victoria and southern NSW with a use-by date of July 2. Milk provides many of the nutrients needed for human growth and development, including protein, fat, carbohydrates (lactose) and calcium. But because milk is such a complete mix of nutrients, it's also an ideal breeding ground for bacteria. This is why milk spoils quickly, particularly when it's left out of the fridge. But the presence of E. coli in food — including the recalled milk — doesn't necessarily mean the food is unsafe. It means the product is more likely to cause illness, and indicates further testing is needed. To minimise risk to public health, it's advised that implicated products are not consumed.
Cow's milk Milk from a cow is laden with bacteria. The bacteria come from the skin on the teats of the cow, and sometimes directly from the milk if the cow has mastitis (a bacterial infection in the udder). The same is true of human breast milk — the milk itself contains bacteria, while bacteria can also come from the mother's skin. But a difference in a cow is that the cow's udder is close to its anus, so contamination of the udder with the cow's faeces is common. Pathogenic bacteria (those that cause illness) that can occur in cow's milk include some strains of E. coli, Listeria monocytogenes (L. monocytogenes), salmonella, Bacillus cereus (B. cereus) and Staphylococcus aureus (S. aureus). While B. cereus and S. aureus can cause unpleasant illnesses, most people recover quickly and completely. But some strains of E. coli and L. monocytogenes can cause more serious illness and even death. A raw (unpasteurised) milk product contaminated with pathogenic E. coli was found to have caused the death of an infant in Victoria in 2014. L. monocytogenes and S. aureus can be present in the milk in the cow's udder, or on the udder itself, while B. cereus is found in the soil on dairy farms and in milking shed environments. E. coli, however, arises from faecal contamination of the udder. While every effort is made by dairy farmers to clean cows' udders before the milking begins, it's not possible to do this with complete certainty. A low risk remains that faecal bacteria will enter the raw milk.
E. coli won't necessarily make you sick E. coli is commonly found in the faeces of warmblooded animals, including mammals and birds. Most strains of E. coli are not harmful. Rather,
the presence of E. coli is widely used in public health management as an indicator of faecal contamination (called an “indicator bacterium”). It's important we measure faecal contamination in food and water sources because gastrointestinal pathogens can be released from the infected host (in this case, the cow) through their faeces. So faecal contamination of food or water represents a risk that a person exposed to those sources would become ill from gastrointestinal pathogens including pathogenic strains of E. coli, salmonella, norovirus, Clostridium perfringens, and many others. Those infected would then be likely to repeat the cycle of infection — that is, to shed the pathogens that made them sick via their faeces into their environment, and from there, to infect other people. E. coli bacteria makes its way into milk from cows' faecal matter. Testing can relatively quickly detect E. coli in foods or water. The presence of E. coli is an indication there is a much greater risk of infections because of the concurrent risk of other pathogens, like those listed above, being present. So from a positive E. coli result, further testing might be conducted to see whether other pathogens are present. Generally, the presence of E. coli is enough to cause alarm and recall of contaminated foods, or to advise people not to swim in water that has been contaminated, to minimise the risk of infections.
“at-risk” products, and removal from sale of all potentially contaminated milk, alongside alerts to consumers. These actions are part of the food safety systems in place in Australia and many other nations. This process was also implemented earlier this month when another eight milk varieties were recalled by the food safety regulator over
This recall shows the system is working This recent recall of milk from Australian retail markets after the detection of E. coli is a very rare event. In this case, the causes of the possible pasteurisation failure remain unknown. The “back-up” testing for E. coli in the milk, however, did reveal a failure in the system that will now be investigated to prevent recurrence. Importantly, the detection of E. coli does not mean the milk is unsafe, but indicates that it could be. The identification of E. coli in the milk initiated a rapid product recall of specifically
concerns they may be contaminated with cleaning solution. This article was first published on the website, The Conversation. Zoe Bartlett, an early career researcher at the University of Tasmania, contributed to this piece.
Calving Cows
Pasteurisation and testing The government has mandated that milk sold in Australia should be pasteurised to eliminate any harmful bacteria and protect public health. This process also extends the shelf-life of the product by reducing other bacteria that cause milk spoilage. Pasteurisation involves heating the milk for sufficient time to eliminate the pathogenic bacteria; usually to 72–74°C for 15 to 20 seconds. The time and temperature of pasteurisation are monitored in real time and, if the conditions are less than required, the “suspect” milk is diverted and not filled into retail containers. As an additional check, the pasteurised milk is subjected to further testing for the presence of E. coli after those processes. These tests, however, typically require 12 to 20 hours to obtain results. Because of all the other safeguards in place, the milk is assumed to be safe for sale and distributed before the test results are obtained, unless the other tests show a process failure requiring a product recall.
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DAIRY NEWS AUSTRALIA JULY 2019
30 // ANIMAL HEALTH
Trace minerals issue universal A TECHNICAL services veterinarian from the
United States visited Numurkah last month to speak about cattle multi-mineral injection Multimin. Dan Tracy addressed a small group of farmers at MG Trading on June 18, and spoke about the research on the product that has been done in his home country. “I’m here to inform and highlight the research that has been done in the US concerning Multimin and highlight, by using it, Multimin has the ability to uphold the immune system, help improve vaccine response and is an aid to help prevent disease in cattle,” he said. Dr Tracy said he’d discovered that northern Victoria dairy farmers were dealing with the same issues as those in the US. “Making that conversion for the milk price, it seems like dairy producers are challenged as they are in the United States as far as trying to make money,” he said. Dr Tracy said using trace minerals would benefit cattle nutrition.
“Our research has found that trace mineral injections can result in improved reproductive efficiency and reduced diseases in cows and calves,” he said. “Fertility and immunity problems can be corrected with mineral injections. “We already know a fair bit about trace minerals as they relate to fertility — but the really interesting stuff is looking specifically at immunity and the potential for overall improvements to animal health. The US is leading the research in this area, and it really is showing us what’s achievable, with some intriguing potential solutions to help boost the overall health of dairy cows and calves.” Dairy producer Darryl Hammond from “Melaleuca Park”, Buln Buln attended the Warragul event, and described the event as a great opportunity to see a lot of independent studies backing up Multimin claims. “Dr Tracy really gave us a sense of confidence with using Multimin in our dairy herd by showing us the independent data backing up what
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we have been seeing visually in our treated animals,” Mr Hammond said. “I learnt a lot about how well Multimin complements vaccines and drenches when used at the same time and I find it interesting to see the gradual improvements to
growth and coat colour in our herd after treating with Multimin.” Also in attendance was Virbac Australia’s new technical services manager for nutrition, Dr Paula Gonzalez-Rivas.
Farm activist inquiry FARMERS ARE being urged to prepare submissions for a Victorian parliamentary inquiry which will look into how to protect farms from invading animal activists. The inquiry follows a series of farm invasions around Australia, and a public demonstration in the Melbourne CBD which shut down traffic for hours. Victorian Agriculture Minister Jaclyn Symes expressed concern about the trespasses but said the incidence of farm invasions was “fairly low”. “But I accept people are concerned about it,” Ms Symes said. “I don’t want our hard-working farmers to be living in fear. “We’ve been very firm in our response.” Ms Symes said there were already offences that carried significant penalties, including fines of up to $4000 or six months’ imprisonment. She had already met with Victoria Police to discuss how they would respond. Ms Symes said the Victorian Government had broadened the inquiry first proposed by the Nationals, and the motion eventually carried was modified. The Legislative Council committee conducting the inquiry has only two MPs with farm experience, but Ms Symes said committee members did not necessarily have to have a close connection with an issue to deal with it effectively. Shadow Agriculture Minister Peter Walsh said establishing the inquiry was a win for farmers, their families and regional communities. “This inquiry is an opportunity for parliament to work together to deliver the laws and penalties that our communities expect and demand,” Mr Walsh said. “Our farmers and communities are
demanding action which is why the Liberal Nationals have fought to establish this inquiry.” He said Nationals Member for Eastern Victoria Melina Bath had taken a lead in developing the debate. Ms Bath, who is also sponsoring a petition to fix farm trespass laws that has gathered nearly 5000 signatures so far, said the inquiry was the first step to deliver the change communities had been calling for. “The Liberals and Nationals are standing up for the rights of farmers, their families and farm businesses who continue to be relentlessly targeted by law-breaking activists,” Ms Bath said. “While the agriculture minister tried to avoid fixing this issue, ongoing pressure from communities in Gippsland and across the state has forced the government to act. “I stand with our farmers in stating that only tougher laws with appropriate penalties will provide the necessary legal protection for our primary producers.” The Animal Justice Party member of the Legislative Council, Andy Meddick, spoke against the inquiry. Mr Meddick’s party is against animal farming and wants to see the dairy industry wound down. Mr Walsh said it was disappointing that not all parties had supported the inquiry. “While Labor finally saw the light and realised they can’t keep ignoring farmers, unsurprisingly The Greens again failed to back the industry,” Mr Walsh said. The committee is inviting written submissions by Friday, August 2, and will then conduct public hearings.
DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 31
Saputo chasing milk WITH SEVEN new companies acquired in the
past two years, Canadian dairy company entrepreneur Lino Saputo could be accused of being in an acquisitive mood. Whether that translates to the Australian corporate landscape, is yet to be seen. The Saputo family acquired the former Murray Goulburn Co-operative last year in a billion-dollar deal, and is also in the process of buying Lion’s cheesemaking business with factories in Burnie, Tasmania and King Island. Asked about what further acquisitions were on the cards, Mr Saputo would only say that he was always looking for opportunities that would benefit the business. Mr Saputo spent two weeks in Australia recently and caught up with suppliers in Victoria, NSW, Tasmania and South Australia. He re-assured the Tasmanians over the new investment and told farmers he wants future products to be targeted at the premium end of the market and was not interested in chasing low-cost, bottom-of-the-market deals. Asked about the transformation of the former Murray Goulburn Co-operative to the Saputo culture, Mr Saputo said it was going very well. However, the supply volume is a major worry for the international company, with output from farms falling right across the board due to cost pressures and seasonal pressures, and with the biggest reductions in northern Victoria and the southern Riverina. The company is trying to build its milk supply over the next two to three years and Mr Saputo said he was optimistic the company could find bigger volumes, l despite the average fall of 10 per cent in output. The company has announced an opening price of $6.80/kg of milk solids for the southern region, which Mr Saputo said was a price intended to both hold existing suppliers and encourage new ones. He acknowledged the company had a responsibility to offer the best price it could to suppliers, while being responsible to its balance sheet. Price reviews were made on a quarterly basis.
As for the recently announced deal to process milk on behalf of Coles, Mr Saputo disclosed that the deal enabled Saputo to leverage a better outcome in its long-term relationship with the supermarket giant. Some suppliers have been wary of the Coles announcement that it was going to engage directly with farmers and have
Saputo process the milk. Saputo has inherited a long-term deal made between Murray Goulburn and Coles for the processing of cheaper, home-brand milk and cheese. Mr Saputo said the new deal brought benefits for both his company and for suppliers who now had a choice, with another
competitor in the market. Mr Saputo said the company was continuing its plans to sell the former Murray Goulburn factory site at Rochester. However, the equipment on the site will be dismantled so that it will not be able to be used for milk processing.
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DAIRY NEWS AUSTRALIA JULY 2019
32 // NEWS
Young Ayrshire breeder headed to UK A YOUNG Victorian dairy farmer will travel to the United Kingdom in October for the International Youth Tour for Ayrshire breeders. Lachlan Forster was one of four applicants vying to be Ayrshire Australia’s delegate and said he was looking forward to seeing if he could pick up any new tricks of the trade that he could use on his family’s Strathmerton farm. “It will be interesting to look at the cows and see the issues they have there and the different ways they farm,” he said. “It will also be good to look at ways they encourage young people in the industry.” Mr Forster said he was looking forward to the trip, run by the Ayrshire Cattle Society of Great Britain and Ireland and aimed at those aged between 18 and 26, considering how difficult the season had been. “It’s something to look forward to away from this drought and tough time at the moment,” he said. “It’s been tough. We’ve had to cut our numbers back pretty heavily — that’s something I haven’t wanted to do.” Mr Forster, 25, said he was unsure how long he would be able to keep his family’s
farm operating. “It’s up in the air at the moment. “I want to stay here, I love this area but the way it’s going it’s getting too hard. “If we keep on going like we are (with high
input costs and a lack of water), we won’t be here in 12 months’ time.” This is not the first time he has travelled overseas. In 2016, he went to New Zealand with the UDV and Gardiner Foundation.
This year’s tour will commence in Northern Ireland on October 11 and travel to Scotland and England, culminating in the All Breeds All Britain Calf Show, which will be held across three days, finishing on October 21.
Lachlan Forster.
NUFFIELD CONFERENCE More than 300 of the nation's best and brightest in farming will come together for the 2019 Nuffield Australia National Conference in Queensland from September 17 to 19. Early bird registrations have opened for Nuffield Australia’s flagship event, which will be held at the Royal International Convention Centre, the home of Brisbane’s EKKA precinct. This year’s theme is based on the three key pillars of ‘Collaborate, Innovate and Cultivate’. The conference opens with the Awards Dinner, followed by two days of seminars, networking events, trade exhibitions, and a
tour of scholar’s farms and agribusinesses across the Darling Downs region on Friday and Saturday, September 20 and 21. Nuffield Australia Interim CEO and 2013 Queensland Scholar Jodie Redcliffe said she was excited to be hosting the prestigious conference on home soil, a state she believes is rich in diversity, innovation and resilience, especially when it comes to agriculture. “Attendees will have the opportunity to hear from returning Nuffield Scholars, who will present the findings of their cutting edge global research. “This year, speakers will cover highly
topical research areas, such as business risk management in variable climates, effective branding to attract premiums, facilitating the uptake of new farm technologies, soil health and regeneration principles, among many others," Ms Redcliffe said. “Other inspiring keynote speakers include former president of the Australian Rugby Union and National Farmers Federation, David Crombie AM, and chairman of the Grains Research and Development Corporation, John Woods. “Our conference is led by scholars and enjoyed by the entire sector. Whether
you’re a primary producer, an agribusiness consultant or a policy maker, access to fresh insights across a range of topics and the connections you make along the way, means the Nuffield Conference is an unmissable event. “The announcement of new scholars provides a first insight into the study topics that will sow the seeds of change for their respective industries.” To register, or to find out more information, visit: nuffield.com.au/2019nuffield-australia-national-conference/
DAIRY NEWS AUSTRALIA JULY 2019
NEWS // 33
China hold-up on dairy sales A REFUSAL by China to accept dairy heifers from a now-clear bluetongue zone is continuing to cause headaches for northern Victorian producers. A bluetongue zone was established in Bamawm in October, 2017, after bluetongue virus was detected in a number of 12-month-old heifers, but the temporary 100 km bluetongue zone was lifted on December 5, 2017. However, 18 months later, China has not recognised the lifting of the exclusion zone and is still not accepting dairy cattle from the area. For dairy farmers like Wyuna's Phil Blain, it means there are even less options for people struggling in poor conditions. “It doesn't help not being able to sell into China,” Mr Blain said. “It just takes the option away.” He said it was particularly frustrating that cows and heifers from the exclusion zone could be bought “for much cheaper” by those in other regions, only to be kept on properties for six months and on-sold to China for more money later on. Dairy Livestock Services manager Scott Lord said it was an ongoing issue, with poor seasonal conditions worsening farmers' frustration. “It's put a lot of financial pressure on dairy farmers,” Mr Lord said. “This time of the year would be the time they'd be looking to off-load suitable cattle, but a lot are carrying additional cows because of it. “We've continually communicated with the Department (of Agriculture) and they are aware
FARM DEPOSITS SCHEME REVIEWED A scheme that helps farmers deal with peaks and troughs in what they earn could be better run, according to the auditor-general. The Farm Management Deposits Scheme — which has been running since 1999 — allows agricultural producers to set aside cash reserves during highincome years, for use in low-income ones. But the Australian National Audit Office has found the administration of the scheme has “not been fully effective”. That’s because compliance arrangements and risk assessment processes have not fully captured elements of the scheme’s design. There also hasn’t been much take up of changes to the policy made in 2016. The changes increased the deposit limit for farmers and gave those in drought- affected areas the chance to withdraw their cash within a year without losing tax concessions. They also allowed farmers to offset debts relating to their business. “Current data indicates that take-up rates of the three policy measures have been low, especially for the loan offset measure,” the ANAO found. It has also recommended a big picture risk assessment, review of data used for the scheme and improved compliance processes. The ATO said in response that it will refine its approach to running the scheme with the agriculture department.
of the financial implications. “Unfortunately it's something that's out of our control.” A department spokesperson said a number of livestock export markets had specific requirements relating to bluetongue virus, including China. “Exports of cattle to China must comply with their importing country requirements, which
are outlined in China's import conditions,” the spokesperson said. “We are committed to working with all trading partners to ensure importing country requirements are met in all cases including our own.” The department has previously held discussions with China on the issue. The bluetongue virus was detected in three 12-month-old heifers near Echuca on October
14, 2017, during pre-export testing, before a further four heifers were found to be affected at the property. The detection of antibodies in the heifers' blood indicates previous exposure to BTV, with one heifer believed to have been exposed to the virus in NSW where it is more prevalent. More than 2500 cows from 98 mobs were tested following the outbreak.
DAIRY NEWS AUSTRALIA JULY 2019
34 // MACHINERY
Air drills integrate seeding technology BUILDINGâ&#x20AC;&#x201A;ONâ&#x20AC;&#x201A;the best features of the 1990CCS
Air Seeder that has been the standard for small grains seeding for the last decade, John Deere has introduced the redesigned N500C Series Air Drills for 2019. These new air drills integrate the latest in seeding technology, including new ProSeries Openers, to provide small grains producers the most productive, accurate and smart seeding tools in the industry. According to Ryan Hough, marketing manager for John Deere Seeding, the N500C delivers on the top requests of producers in improvements to small grains seeding equipment. "Easier meter access, improved seeding accuracy and increased capacity with less compaction were the most common requests we heard from customers," Mr Hough said. "The N500C Air Drill was designed to give operators much easier meter access, and the latest in integrated technology for improved seed placement accuracy, control and confidence, to help them do the best seeding job possible for cereals, canola, soybeans and other crops." The first thing customers will notice on the N500C is the main frame and commodity tank have changed, with the blower mounted in the forward position and a raised platform, to give operators easier meter access to clear blockages
or clean out seed. Unlike chain-driven air seeders, the N500C features electric-drive volumetric meters that offer greater seed population control and foursection variable-rate seeding capabilities with SectionCommand. In addition, new technologies have been added to the N500C Air Drills, including John Deere ActiveCal tank scales for on-the-go seeding calibration from the cab, RelativeFlow blockage for row-to-row seed-flow monitoring, TruSet down force control from the cab, and the SeederPlus app for convenient calibration of meters and weight monitoring for tank scales. "The N500C Air Drills may be the most advanced small grains seeders on the market, giving operators much more control of seeding operations and the ability to monitor and adjust seeding rates, down pressure and other machine functions on-the-go from the cab," Hough explained. "We've even made curve compensation available on air drills for the first time to reduce overlaps and skips around contours and obstacles in the field." The N500C Air Drills also feature the new notill ProSeries Openers for improved seed placement accuracy across a wide variety of soils and ground conditions.
The low-maintenance ProSeries Openers are designed with a narrow seed boot and narrow, flexible press wheel that provides up to 40 per cent more consistent seed depth across the width of the seeder. This results in more even stand emergence, uniform crop maturity and higher yield potential at harvest. Tyler Rumbold, product manager for John Deere Seeding, said something else seeding customers will notice with the new N500C Air Drills, is a new product naming system. The "N" stands for machine type, or notill drill; "5" is the series number; followed by the two-digit tool width; and "C" or product
differentiator at the end, which stands for Central Commodity System. "More importantly, the introduction of the N500C Air Drills with no-till ProSeries Openers is a continuation of John Deere's commitment to meeting the needs of cereal, canola, soybean and other crop growers," Mr Rumbold said. "These new tools offer significant improvements in seeding rate and placement accuracy, capacity, and other production benefits that provide real economic return." The new N500C Air Drills are already available to order with production starting in September 2020
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