Dairy News Australia - April 2018 - With Murray Region

APRIL, 2018 ISSUE 90

MURRAY REGION

Growing up on a dairy farm in Kerang has fostered a love for agriculture that UDV acting manager Ashlee Hammond has carried throughout her career.

Inspired by dairy career SOPHIE BALDWIN

GROWING UP around dairy farming has given

Ashlee Hammond a strong foundation to build her working career in agriculture on.

The trials and tribulations, opportunities and challenges of dairy farming have been a great grounding for her role at the UDV — and have also set up a lifelong love of the industry.

Ms Hammond, 25, has spent the past seven years at university (with two remaining) juggling her studies with positions at the VFF. She was recently rewarded with a promotion to UDV acting manager.

“I love working with farmers and travelling around the region for work. There are so many issues constantly evolving and no two days are ever the same, it is always changing,” she said.

The role is diverse and encompasses many aspects of the dairy industry including budgets, strategic planning, and oversight of policy development.

“I’m now managing a team of five, while managing day-to-day operations. While policy is not ‘sexy’, it is a complex area that is constantly changing and can have huge and rapid impacts across the entire industry.”

Growing up on a dairy farm at Kerang in northern Victoria, Ms Hammond has always been inspired and interested in agriculture.

She completed a Certificate II in Agriculture at secondary school, and went on to study a Bachelor of Agriculture Science at La Trobe University in Bundoora, with honours in ruminant nutrition. She is currently halfway through a Masters of Agribusiness at Marcus Oldham.

“The masters has given me the business

skills that I felt I was lacking after my science degree. I really enjoy study and I am not just doing it for the piece of paper, I’m doing it because I find it interesting and relevant.”

Ms Hammond started working on the Young Agribusiness Professionals committee during her first year of university.

“I was interested in the policy space and wanted to find out more about what that meant, and ended up staying there for three years,” she said.

“I then started working for the VFF, doing reception and casual work and then got a job as a project and policy officer with the UDV in 2015, and my roles have evolved from that point on.”

Ms Hammond said working with the UDV was challenging, but she surrounded herself with a great support network.

“I have still had to prove myself over the years but more and more women are stepping up in the industry and into leadership roles, which I think is great.”

She acknowledges the UDV may not have been that great at promoting its work over the past few years, and she sees that as an area that can be improved.

“A lot of our work is confidential and behind the scenes,” she said.

“It has been a tumultuous few years for the industry and its farmers and I find it very humbling to work for an organisation fully funded by farmers who think we will do a good job on their behalf — protecting them and the industry they love.”

Continued page 5 >

DAIRY NEWS AUSTRALIA APRIL 2018

2 // MURRAY REGION

Chairman’s message

Step back to move ahead RECENTLY WE were fortunate to have Claire

Miller from Dairy Australia present at a number of forums on the current state of water policy reform.

The topics Claire covered included the current political climate and the outcomes it will have on water availability, and the Ernst & Young report on the Murray-Darling Basin Plan and its implications for irrigators.

Claire has been a tireless contributor to the water debate on behalf of the dairy industry and we thank her for the collaborative approach to this task. Sadly, Claire is leaving us and these forums will be her last in her current capacity, however, I feel she won’t be lost to us forever and

I wish her well in her next venture.

What these forums highlighted is that the uncertainties and challenges that water policy, along with fluctuating milk prices and ongoing recovery from the past couple of seasons, have eroded resilience and confidence at farm level.

Volatility in all these factors has, and will continue to, characterise our operating environment.

There will not be a one-size-fits-all solution to how we respond in our businesses, depending on financial situation, resource availability and stage of career.

What we need to do is to take a step back from within the business and look at developing

a strategic plan to help guide our way through the volatility.

A strategic plan allows focus on the goals of what our future business will look like and, more importantly, how to get there.

By doing a plan we will identify the strengths of our business and how to take advantage of any opportunities that arise and also help to identify weaknesses or threats to watch for.

Attacking ongoing issues such as water pricing and feed base, for example, and developing strategies to make sure all available resources are working together to find solutions in a planned way, ensures correct decisions are being made to suit your circumstances and

future goals.

To assist you in planning, Murray Dairy has developed Plan2Dairy, a strategic and risk management program that will be piloted across the region and then delivered more broadly later in the year.

To complement this program, there are a number of farm business management tools and programs now available.

If you are interested in any or all of these programs, please contact the Murray Dairy office for further information. • Rick Cross Murray Dairy chair

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DAIRY NEWS AUSTRALIA APRIL 2018

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Milk production increasing NORTHERN VICTORIAN dairy farmers

have recovered from a difficult start to last season, with milk production jumping eight per cent to the end of last year.

Dairy Australia’s February Situation and Outlook report found that Australia-wide milk production had also experienced a bump of three per cent in the first half of the 2017–18 season.

The report points to farmers finishing this season in better shape than last year, but warns increased Northern Hemisphere milk production could mean challenging times ahead and downward pressure on milk prices.

Slower milk production in New Zealand and good import demand have helped support commodity prices in the short term, but the fundamentals point to significant risk for prices in the months ahead.

The report also outlined considerable changes in milk processing and manufacturing in the region, with Murray Goulburn closing the Rochester plant in January, a contrast to the high level of investment other processors have made in the region.

Australian Consolidated Milk has announced plans for a greenfield milk processing facility in Girgarre, Freedom Foods has announced further upgrades and expansion at its UHT facility in Shepparton and Fonterra has committed $125 million to expand production at the newly rebuilt Stanhope cheese factory.

Dairy Australia senior industry analyst John Droppert said a number of processors had demonstrated confidence in the industry’s long-term prospects.

“The challenge for those processors will be in how they support and grow a profitable milk supply base to realise the potential of their manufacturing footprints while their competitors battle to retain their existing supply base,” Mr Droppert said.

“Amidst the contrasting short and medium-term market signals, any inducement to produce more milk or retain existing suppliers will need to account for risks

that remain in the global market.”

Northern Victorian farmers also received some relief on the commodities market, with water prices averaging $75/Ml, down 56 per cent on the same time last year and almost a third on the prices seen five years ago.

The dry start to spring led to a boost in water trades in northern Victoria, with trade volumes increasing 93 per cent on the previous year to 574 000 Ml. In December, after a few months of above-average rain, trading fell 27 per cent on 2016 levels to 161 000 Ml.

More A2 milk to flow FONTERRA AND The a2 Milk Company (a2MC)

are set to join forces, announcing plans to link Fonterra’s global milk pool and supply chain with a2MC’s brand strength to create more business opportunities.

As part of the agreement, Fonterra will now contact farmers about sourcing an A2 milk pool for products in Australia, with a similar milk pool to be developed in New Zealand with a view towards exporting to South-East Asia and the Middle East.

Announcing the deal on February 21, Fonterra chief executive officer Theo Spierings and a2MC managing director and chief executive officer Geoffrey Babidge said the partnership was designed to generate returns for both companies by growing demand in local and international markets of A2 products.

“The partnership is intended to fast-track market growth and this creates opportunity for our farmers to create additional value from their milk,” Mr Spierings said.

“We continue to see a strong future for dairy based on our existing range of products, including recent additions such as organic, low-lactose and high-protein milk choices that consumers seek out for a premium.

“Consumers like to have choices and the growth of a2MC-branded nutritional powders and fresh milk sales in Australia, for example, shows the potential.

This partnership is all about finding ways to continue to delight our consumers and generate more value for our farmers.”

Fonterra will also exclusively supply nutritional milk powder products in bulk and consumer packaged size for sale in a2MC’s priority markets and explore potential for a2MC-branded cheese and butter in Australia, New Zealand and China.

A jointly owned packaging facility will also be explored as an extension of the arrangements to cater for growth.

Freedom plans capital boost RODNEY WOODS

SHEPPARTON’S FREEDOM Foods plant is set to benefit from the company’s decision to accelerate the raising of capital.

The $200 million that is set to be raised through the introduction of extra shares available to existing and new shareholders will partly go toward the development of a specialised nutritionals platform at Shepparton, which will be aligned to the dairy UHT operations.

The platform will allow for protein standardisation and the ability to separate milk into industrial grade pure protein components for use in the company’s branded products and for sale to key strategic customers.

“We’re looking at accelerating investment on sites, in particular Shepparton,” Freedom Foods chief executive officer Rory Macleod said.

“Shepparton will see a $60 million investment in the next 12 to 18 months. This is one of our prime areas of focus.

“We are looking at increasing capital to give us flexibility for opportunities that come in and to have a strong balance sheet capability over the next year or two,” he said.

The deal will give existing shareholders the option to buy a further three shares for every 29 they own, and a further 20.8 million shares for new and existing shareholders will be available — both at a reduced price of $4.80 per share.

This is not the first time the company has attempted to raise capital in such a way.

“We’ve done a couple of raisings in the last two to five years. We raised $75 million for an acquisition 18 months ago but this is the largest ever; $200 million is quite a big chunk of money,” Mr Macleod said.

All new shares are set be issued by April 15.

The other focus the company has is in Ingle-

Freedom Foods chief executive officer Rory Macleod has announced the company’s plan to accelerate capital raising by introducing discounted shares.

burn, NSW, where a new plant and dairy beverage capabilities facility has been completed.

In more good news, Freedom Foods has agreed to long-term partnerships with milk producers across Victoria and NSW. “We are building more direct supply with farmers, who continue to invest money into their business,” Mr Macleod said.

“Our base product is milk, and consumers want to know where food comes from more and

more, particularly in China and South-East Asia.

“Farmers should be recognised for milk they are producing. The milk comes from Australian farmers, and consumers should know who those farmers are.”

The company said these farm gate agreements represented a win-win for all parties and would deliver premium products to Freedom Foods and guarantee competitive and attractive prices for farmers.

DAIRY NEWS AUSTRALIA APRIL 2018

4 // MURRAY REGION

Thinking outside the box NUMURKAH DAIRY farmer Rachelle Moon would love a crystal ball insight into where the industry might be heading over the next decade.

After attending her first Australian Dairy Conference thanks to a bursary from Australia’s Legendairy Women’s Network, Mrs Moon sees a future full of promise and innovation with a lot of unsolved mysteries.

“I have no idea where it’s going to be in 10 years’ time,” she said.

“The stuff they’re doing and thinking about just blows your mind, and I’m definitely feeling positive. There will always be a market for fresh milk but people will need to think out of the box a bit.”

According to Dairy Australia project manager Natasha Busbridge, who co-ordinates ALWN, helping dairy women attend the conference provided an important professional development opportunity, with one bursary offered in each of the eight dairy regions.

“ADC offers a diverse range of industry highlights and technical topics to attract farmers,” Ms Busbridge said.

“But getting time off-farm, especially for women, can be challenging. All our farmers attending the conference took something away with them to help their business and enjoyed the opportunity to connect with other farmers.”

Mrs Moon farms just outside Numurkah with her husband Carl and children Harry, 10, Heidi, 8, and Johnny, 3, along with 120 Holsteins.

It’s their third season on the farm and Mrs Moon said the family now talked about “our other life” before ownership. “We used to have kids at day care, shuffling things and never doing anything together, now we’re together all the time,” she said.

Carl grew up on a farm while Rachelle lived in Tatura, although she’d held a long-term attraction for dairying after being exposed to the industry through dairy farming friends of the family.

That connection became a reality 14 years ago when the couple met at International Dairy Week,

where she was working in the bar for her netball club and he was showing cattle.

A nurse by profession, Mrs Moon has enjoyed adjusting to full-time farming and family life.

“Carl always said he wanted to milk cows so I said let’s do it now before we get too old. We’re at a good age to embark on something new.”

Their farm, 1 km out of Numurkah on Broken Creek, hadn’t been milked for 10 years and is limited due to the size of the dairy, but the Moons have taken a steady approach in rebuilding.

They purchased Mr Moon’s parents’ farm 10 years ago and used it for cropping and beef before leasing and then selling it to buy their current property.

“We were extremely optimistic and enthusiastic about the challenge and the change, as were the kids,” Mrs Moon said.

On the farm Mrs Moon has taken responsibility for calf rearing.

“It’s hard work and very physical, which I quite enjoy. The first heifer that I reared has just calved and that was very special; a warm and fuzzy feeling.”

A member of the Murray region Young Dairy Network and the Goulburn-Murray Water working party for pricing and tariffs, Mrs Moon said the Australian Dairy Conference gave her plenty to ponder.

“It’s important to get off farm and think about our business and the industry in general, not just be task orientated,” she said.

“I don’t enjoy listening to people talk about cows and grass all day but there was none of that and the topics were challenging and refreshing, such as welfare which shows the industry wants to address the pointy issues.

“It made us think about where we’re heading and ask if there’s something that can make us special.”

She said the impact of technology, including the possibility of creating synthetic milk, meant farmers must diversify and stand out

Numurkah dairy farmer Rachelle Moon says ‘‘there will always be a market for fresh milk but people will need to think out of the box a bit’’.

from the crowd.

“We’re always thinking of what’s next. I’ve seen vending machines in New Zealand where farmers sell milk. If we had a pasteurising plant we could sell it through vending machines. It’s an interesting concept.

“There are lots of options out there.”

Australia’s Legendairy Women’s Network was established to connect and support Australian dairy women. It is an active online community and can be joined at: www.facebook.com/ groups/legendairywomensnetwork

FARMER CONFIDENCE IS DOWN VICTORIAN FARMER confidence levels

have dropped to the lowest level since 2015, a new survey reveals, with dairy among those taking the biggest confidence hit.

Rabobank’s latest Rural Confidence Survey has found that uncertainty remains prominent across the industry, despite a two-year run of positive sentiment.

Commodity prices were cited by 61 per cent of the Victorian farmers surveyed as a key reason they expected conditions to worsen.

However, the prices were mainly a worry for those in dairy, with prices raised as a concerning factor for 78 per cent of dairy farmers.

Rabobank regional manager for southern Victoria and Tasmania, Hamish McAlpin, said despite seasonal uncertainty, the longterm fundamentals for agriculture remained unshaken.

Completed in February, the survey found there were more Victorian farmers expect-

ing the industry to get worse in the next 12 months than get better.

More than one in five farmers now hold a negative view, up from 10 per cent last quarter. However, 55 per cent of those surveyed anticipate similar conditions to last year.

“Now farmers are wondering what’s around the corner as they hope for good autumn rains to set them up for winter and the upcoming cropping program,” Mr McAlpin said.

“While it is still early in the season and there is a bit of time yet with the average break in late April, this year’s outlook all really hinges on when, and how much rain, falls in the rain gauge during autumn.”

He said while there was increased competition locally for milk, the dairy industry continued to face pressure from global markets that were leading to a depressed world outlook for prices, feeding uncertainty surrounding local farm gate milk prices in 2018– 19.

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DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 5

Passion for agriculture grows < Continued from page 1

While Ms Hammond is looking forward to a long career in the dairy industry, she is not adverse to the idea of moving into other commodities.

“I definitely see a long-term career in the dairy industry, but I’m also keen to spend a few years working in a different commodity, to see how it works.

“If you focus on one industry, I think you can get stuck on particular issues, or focus on the negatives, while working across other industries, you can take a break and restart, while still constantly learning.”

She is hoping to see as many dairy farmers as possible, both young and old, attend the UDV Dairy Conference on Friday, May 4 at the MCG. This year’s theme is ‘Everyday Advocacy’.

The conference kicks-off with the annual young farmers’ breakfast, which will feature guest speakers from the 2018 Gardiner UDV New Zealand study tour, and concludes with the president’s dinner.

The conference is free for all farmers, with a charge for the president’s dinner. To register, visit www.vff.org.au/udvconference

It’s been a juggling act for 25-year-old Ashlee Hammond, who has learnt to balance her agriculture studies with her role as UDV acting manager.

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Dairy week was a happy hunting ground SOPHIE BALDWIN

THIS YEAR’S International Dairy Week is just a memory for many people, but for three northern Victorian dairy farmers it is one they won’t easily forget.

Elmar Holsteins from Leitchville won the IDW Grand Champion title with Elmar Goldwyn Jessica 11 — the third time a cow from the Jessica family has won, delighting owners Steve and Deanne Hore.

“We were thrilled to come out with a win,” Mrs Hore said.

“There are a lot of great cows at IDW and we were proud of the way she looked on the day — it’s a great way to gauge where we are heading with our breeding.”

Mrs Hore said Jessica 11 was Reserve Champion Holstein in 2015 and this year it was her chance to shine. As well as being crowned the 2018 champion of champions, she also won the Champion Cow and Grand Champion title in the National Holstein Show.

“She has been a great ambassador for our

family and the Australian dairy industry.”

Today Jessica 11 is back in the herd and, other than an extra pat and hug, it’s business as usual.

“She is an aggressive lead cow and her job is to be first on the platform — she is a very dominant individual,” Mrs Hore said.

“She calved in October to set her up for IDW and we have her on a flushing program at the moment. She won’t go back to IDW — she has achieved as much as she possibly can and we will just breed on from her in the future.”

Mrs Hore said IDW was a great place to show cows, but it also provided the family with an opportunity to catch up with lifelong friends.

“It’s a great chance to catch up with friends across all breeds. When we travel overseas we have friends and connections in a lot of places and that has come directly from our involvement in the dairy industry.”

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Elmar Goldwyn Jessica 11 is pictured with (left to right) owner Deanne Hore, Kelsie Hore, owner Steve Hore, Marty Hore and Brady Hore from Leitchville. The seven-year-old Holstein was crowned IDW Grand Champion, and was also awarded Champion Cow and Grand Champion in the National Holstein Show.

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Australia’s National Brown Swiss Champion Cow and Champion Exhibit Tandara Jolt Sarajevo 55 with owner Ben Govett of Dingee and judge Brian Kelroy.

DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 7

11-and-a-half-year-old has had a great year, taking out an on-farm challenge as well.

“I decided to take her (to IDW) because she was looking pretty good, even though she had been milking for 400 days,” Mr Govett said.

He said despite a decrease in numbers at IDW this year, competition was still good.

“Numbers are probably a reflection of where the industry is. Things are not as bad as last year, but they are still pretty tough — if we have a decent milk price and the weather stays favourable we might be able to get back to square one this season.”

Mr Govett said northern Victoria was a great place to milk cows, despite being at the mercy of water prices and the hot weather.

“Before the drought we were one of the strongest dairying regions in the country and we have some really great dairy farmers and breeders,” he said.

“Gorbro have worked their way to the top and Elmar have been at the top for a long time.”

Mr Govett looks forward to IDW every year.

“It is something I love doing and it is the best couple of weeks for me every year, I really look forward to it.”

Red queen From the moment Cohuna’s Glen Gordon from Gorbro Holsteins purchased Llandovery JR Joan in partnership with Craig Rapley, he knew he was onto a good thing.

Her track record at IDW has been nothing short of outstanding, but 2018 was her time to really shine — she was crowned Champion Illa

IDW National Brown Swiss Champion Cow and Champion Exhibit Tandara Jolt Sarajevo 55 with owner Ben Govett of Dingee and judge Brian Kelroy.

warra and Reserve Champion in the all-breeds section.

“She has won her class every year for the last four, so it was great to see her have her day in the sun,” Mr Gordon said.

He said Joan was an easy and placid cow to work with. “She is aggressive when it comes to food, which makes her a dream to take away to shows — she is happy to eat all day.”

Joan was recently classified EX 94. “To my knowledge that is the equal highest classified Illawarra ever in the country,” Mr Gordon said.

The partners have sold a heifer from Joan and it looks like the bull calf she had this year will be bought by one of the AI companies.

“We have left Joan open this year and we intend to flush her and make a few more calves,” Mr Gordon said.

He said the quality of animals on show at IDW this year was great, even if numbers were down.

“It is a costly exercise to show cattle and if your animals aren’t going to be standing at the pointy end of the show, there is no point taking them — for us an animal needs to be competitive to take her.”

Mr Gordon was also excited by Jessica 11 winning IDW Grand Champion.

“We bought a daughter from that family last year so we are very excited to see where she takes us over the next five years.”

English judge Paul Harrison (left) stands with Glen Gordon of Cohuna and his cow Llandovery JR Joan, which won Best Udder, Champion Cow and Grand Champion Cow at IDW’s National Illawarra Show.

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DAIRY NEWS AUSTRALIA APRIL 2018

8 // MURRAY REGION

Doing the hard yards SOPHIE BALDWIN

NOBODY DAIRY farms for the accolades, least of all Dehne and Sarah Vinnicombe.

But when they were crowned the 2017 Dairy Farmers of the Year, they couldn’t help but feel a little excited and overwhelmed.

“Well, I guess it’s good recognition for all our hard work, but not just mine — my dad’s and the generations before me,” Mr Vinnicombe said.

“I have had a good start but I have had to buy into the business and I have had to make plenty of tough decisions over the years.”

The Vinnicombes farm at Calivil in northern Victoria. They have spent the past few years building up their business and it is now time to find the happy medium.

They currently milk 550 split-calving cows but that number is not necessarily where they will stay — it could decrease or increase depending on the season — but they will always continue to run a split-calving herd.

“You have more options if things come in wet and you can always dry cows off early if you have to. We seem to make the most money when we have a lower stocking rate,” Mr Vinnicombe said.

Self-sufficiency is a huge part of the success of their business, and Mr Vinnicombe works on

the theory that he would rather buy in water and grow his own grass, than buy truckloads of hay.

“I would sooner buy water and grow my own grass — once the hay is gone it’s gone,” he said.

“We generally use around 1800 Ml of water if we get a decent spring break and I like to have a couple of years of water up my sleeve. I don’t actually believe in the carryover rule but it is there so I use it.”

This summer Mr Vinnicombe grew sorghum, so the cows have been on green feed twice a day, sorghum in the morning and lucerne at night.

He has sown 100 ha of shaftal and rye and has another 200 ha to go. He likes to keep his milking platform sitting around 300ha.

“I have a bit more hay to carry over this year because I grew sorghum. I grew more hay last year because I was focusing on quality hay for milking but the hay price has remained pretty stable and grain has gone through the roof.

In an average year Mr Vinnicombe grows about 50 per cent of his grain requirements. “I have locked in a price for the rest.”

Last season the business made the big decision to swap milk companies, after spending the past four decades supplying Murray Goulburn.

“Loyalty has gone now and farmers will be looking for the best-up front price they can get, which is not necessarily a good thing for the industry but it does put the onus back on the

Dehne, Sarah and Henry Vinnicombe.

processors to pay a sustainable price and I think people will be looking for longer term contracts,” Mr Vinnicombe said.

He said a contracted price allowed the business to spend money on capital works if required, pre-purchase water and grain, and allowed the

business to ramp up or down depending on the margin.

“This way of thinking has helped our business and got us out of a lot of trouble over the years and it also helps if you are not in the market the same time as everyone else.”

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DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 9

Dehne Vinnicombe likes to have a feed bank of at least 12 months’ worth of feed conserved for the herd.

He also firmly believes having a high-reliability water allocation has been gold.

“We have given water up to get on-farm works done, but we have also bought it back. We might have saved water through the program but we now have more land in production then we ever have before, so there are no actual water savings to speak of, just efficiencies.”

Sexed semen is another management tool the business has used.

“We have a ridiculous amount of young stock, which also gives us a lot of options. On day one of calving we can end up with 60 heifer calves

in the shed.”

Mr Vinnicombe also relies on his workforce, and said it was important to make them feel appreciated. He uses contractors for silage, while the rest of the work is carried out by him and his workers.

“I don’t milk any more but I do all the sowing, AI and irrigating. I spend a lot of time working more on the business and put a lot of time into OHS — that’s a huge concern and I like to make sure maintenance is always up to date.”

Dairy farming is not always easy, and Mr Vinnicombe has had his fair share of tough times.

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Lucerne is a cornerstone of the diet for the milking herd.

The 2011 flood, which saw him unable to milk his herd for two days, was a huge kick in the guts.

“That flood was pretty tough and we were so helpless back then — Sarah and I were doing all the work ourselves back then. Our family has owned this land since 1904 and it didn’t even flood in the great flood of ‘56.”

The Vinnicombes have set themselves a 20-year plan, and if none of their four kids are interested they will get out of the industry.

“Dairying is great but I don’t want to be doing this for the rest of my life.”

Heading off to the shade, the cows finish their TMR (total mixed ration) on the feed pad.

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DAIRY NEWS AUSTRALIA APRIL 2018

10 // MURRAY REGION

Scholar is spreading the word JOHN KEELY now knows a lot about effluent.

From storage through to management and application, Mr Keely decided to make effluent a part of his Nuffield Scholarship last year, and with the trip done and dusted and the report written, he has come to the conclusion there is still a lot more to learn.

He travelled through Europe, the United States and New Zealand as part of his experience.

“I am so glad I got involved in the Nuffield Scholarship. It was such an incredible thing to do,” Mr Keely said.

“The camaraderie and mutual support has made this an experience I will value forever.

Countless hours were spent sharing ideas and discussing and developing strategies for improving agriculture, whilst enjoying each other’s company.

“It was a great opportunity to not only study effluent but meet lots of great people. It has also taught me to question things a bit more. I think my opinions are now a lot more considered.”

Mr Keely believes the northern Victorian dairy industry is becoming more intensified as herd numbers rise. Pads and loafing areas are becoming a popular way to feed cows.

“This type of management system creates vast amounts of manure build up quickly in small areas,” he said.

“Applying directly to pastures in a raw form can present a number of problems, which include weed control, leaching of nutrients and run-off

from irrigation and significant rain events.”

Mr Keely said there were some strategic ways to use effluent and he has implemented some change on his own farm at Cohuna.

“This year I decided to pump my liquid manure straight into the irrigation channel when I was watering my sorghum.

“It was an effective and efficient way to cover a broad crop area and it meant it could be grazed quicker because I didn’t have to worry about any withholding period.”

He also learned a lot about the application of solid manure.

“I use my solid manure on the areas I crop for cereal and corn. Instead of spreading it out like I used to, I will be working it into the soil which was something I saw quite a lot of throughout Europe.”

He also found the USA Nutrient Management Plan had some merit for application in Australia.

The plan includes: Right timing of application: Greater productivity occurs if nutrients are applied at the right time and right rate; nutrient uptake by plants is at its greatest when they are actively growing.

Right rate of application: Understanding nutrient requirements of the crops and soils and meeting the needs of both without overloading specific elements.

Regular soil testing: Ensures nutrient require-

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Mr Keely said compared to other countries, Australia had quite relaxed effluent laws.

“At small intensive farms in some European countries, especially Denmark, they have needed to be innovative in their application whilst the Netherlands are processing and exporting effluent and manure as fertiliser because they are producing so much.”

As part of the scholarship, Mr Keely also participated in the Global Focus Program, which looked at agriculture from a worldwide perspective across all commodities “It was good to get the big picture on agriculture and it was interesting to see the issues around the countries don’t change no matter where you farm. They might just be treated differently, which is for a reason — whether that be culturally or environmentally.”

Mr Keely said when it came to effluent, the underlying message he got from the trip was it needed to be treated as a fertiliser and not a waste product.

He is the fifth generation of the Keely family

John Keely has learned a lot from his experience as a Nuffield Scholar. Focusing on effluent, he was able to see first-hand some of the world’s most innovative practices.

to farm at Cohuna. The property has been in the family since 1874 and they have a vision to build on sustainable farm management practices.

They milk 310 split-calving cows, with 60 per cent of the herd calving in spring and the balance in autumn.

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DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 11

Maximum efficiency, Maximum profit!

Humour seals deal A COST-EFFECTIVE alternative to a cattle-

feeding trough was awarded the Judges’ and People’s Choice awards at the Australian Dairy Conference’s ‘The Pitch’ competition.

The competition, run for the first time in 2018, set out to find the top ideas, innovations, tips, tools, products or services that deliver immediate on-farm impact.

Katunga’s Paul Stammers beat five other entries with his Feed Buddy 200.

“Someone on Twitter called it the Budmaster 200. At this stage I didn’t have a name and I thought it better have one. I changed it, but liked the 200 on the end,” Mr Stammers said.

The feeder holds up to 80 kg worth of feed and is made from three 200 litre drums.

“If you can use a chainsaw or anything that cuts a barrel, it is easy,” Mr Stammers said.

“I’d been meaning to make something out of 200 litre drums as I didn’t want to buy troughs. I wanted something to make it easier, so I looked at the drums to convert them into the Feed Buddy at little cost.”

The invention, which Mr Stammers uses on a pen of five calves at a time, reduces wastage

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Paul Stammers and his daughter Joss with his invention.

and has improved his herd — apparently.

“Our calves are bigger than that of our dairy friends since we started using it,” he joked. “It only works if it has the Feed Buddy 200 written on it — any other name won’t work.”

Mr Stammers put his competition wins down to the comedy he included in his pitch, with many of the jokes at the expense of the four major milk processors.

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DAIRY NEWS AUSTRALIA APRIL 2018

12 // MURRAY REGION

Genetics may ease heat stress MARTIN AULDIST

THE MODERN dairy cow is highly susceptible to the effects of heat and in the Australian climate, the effects of heat stress cause millions of dollars in lost production every year.

Temperature and humidity that exceed certain thresholds lead to significant declines in milk production, feed intake and fertility.

These problems can be exacerbated in grazing cows because the opportunity for providing shade, sprinklers and fans is often limited to when the cows are at the dairy.

As a consequence, Agriculture Victoria researchers have been working to identify and breed heat-tolerant dairy cattle.

The Genomic Estimated Breeding Value (GEBV) for heat tolerance in Australian dairy cattle was developed by a DairyBio research team led by Thuy Nguyen at the AgriBio Centre for AgriBioscience, validated by an Agriculture Victoria research team at Ellinbank led by Bill Wales, and implemented by DataGene.

The validation involved selecting heifers that were predicted to be either heat-tolerant or heatsusceptible, and exposing them to a mild-moderate heat challenge in a controlled-climate environment.

“We wanted to mimic the daily fluctuation

in temperature and humidity that would occur during a mild to moderate heat event in the temperate climate,” Josie Garner, a member of the Agriculture Victoria research team at Ellinbank, said.

“Therefore we set the temperature to fluctuate between 25°C at night and 33°C during the day, with 50 to 60 per cent relative humidity,” she said.

“We also wanted to simulate the fact that heat events in the temperate environment are commonly sporadic, sudden and short-term, resulting in large temperature increases from generally mild summer conditions.

“The duration of these heat events is commonly four consecutive days, so that is how long our imposed heat challenge lasted.”

The consecutive days are important because they minimise the opportunity for the cows to dissipate body heat and, as a result, the increases in body temperature can accumulate from day to day.

During the 32-day experiment, 24 heifers that had been identified as heat-tolerant and 24 heifers that had been identified as heat-susceptible were exposed to the controlled heat challenge and their production, physiology and metabolism responses were measured.

“What we found was that the genomicallyselected heat-tolerant cows maintained higher

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milk production and feed intake during the heat challenge,” Ms Garner said.

“They also maintained a core body temperature that was 0.6°C lower than heat-susceptible cows — a remarkable finding.

“A proportion of the milk yield difference was directly related to the reduced feed intake, but the experiment also demonstrated thermoregulatory differences between heat-tolerant and heatsusceptible cows.

“The heat-tolerant cows were able to dissipate heat more efficiently via evaporative cooling.

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For example, they had a skin surface temperature that was 1.7 °C higher, which indicates greater heat dissipation through the skin surface.”

Overall this experiment demonstrated that genomic selection for heat tolerance is a promising option for increasing the resilience of the Australian dairy herd in the face of the increasing threat of heat stress.

This research was funded by the Federal Agriculture Department, Dairy Australia and the Victorian Economic Development, Jobs, Transport and Resources Department.

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DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 13

Cool facts on a hot topic HEAT STRESS is an important issue

for the dairy industry in northern Victoria during the summer months. Research at Dookie Dairy aims to better quantify the impacts of heat stress on milk production in a commercial farm context.

To illustrate the impact of heat stress, individual cow milk production records were analysed during a four-day heatwave from February 8 to 11, 2017. During this period daily maximum temperatures were in the range of 36 to 42°C. The temperature-humidity index (THI) peaked at 88 on the afternoon of two of these days.

Cow records showed there was, on aver-

age, a 15 per cent reduction in milk production at the end of the heatwave. There was also a lag in milk production after the heatwave ended, with production not returning to normal until five days later. During this period the cows also had a lower milking frequency.

These production impacts occurred despite the farm manager utilising the shaded areas of the farm, providing drinking water and using fans in the dairy.

The animal physiology research group at The University of Melbourne is currently examining a range of nutritional strategies to reduce the impact of heat stress.

January 1,

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2018

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155

153

125

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DAIRY NEWS AUSTRALIA APRIL 2018

14 // MURRAY REGION

Disease danger follows calving DR KEITH FLETCHER, ROCHESTER VETERINARY PRACTICE

ACETONEMIA (ALSO known as ketosis) is a

disease of recently calved animals that is caused by an energy imbalance.

This means the cow’s energy intake does not meet her energy requirements, resulting in the body breaking down tissue to obtain its own energy sources. Ketones are present in the urine and are the result of fat breakdown that has been prompted by the negative energy balance crisis.

Typically acetonemia presents as rapid weight loss after calving, reduced appetite and a dull and listless animal. In severe cases, cows can become hyper-excitable, salivate and show nervous signs.

Over-conditioned cows and heifers at the time of calving are often more at risk.

As there can be fatter carryover cows calving down in the autumn, it would be a good idea to familiarise yourselves with this disease.

Cattle need glucose for energy, which is obtained from the small amount directly absorbed from the intestines and from other energy sources that are converted into glucose in the liver. The other energy sources are produced in the rumen during fermentation.

Glucose is used for lactose production, therefore milk, so a reduction in glucose will lead to a

reduction in milk.

There are two main types of acetonemia — one is found early in lactation, often in well-conditioned animals, while the other appears during peak lactation.

During early lactation there is a huge increase in energy demands as milk production begins to increase. Glucose demands escalate beyond daily consumption and new glucose needs to be made in the liver.

The problem arises when an over-conditioned animal has fatty deposits within her liver. This reduces the liver function and the liver cannot keep up with the increasing demand for glucose.

Fat is then broken down to produce fatty acids (NEFAs), which ultimately can be converted into either glucose or ketone bodies.

In the presence of adequate glucose intake, the NEFAs are deposited back into the liver, resulting in further fatty deposits, which then further reduces function — and so the cycle continues. Glucose production is reduced and body glucose levels now drop, allowing the NEFAs to be converted into ketone bodies instead.

The result is a very fat cow at calving going off her milk and rapidly losing body weight.

Ketones are detected in the urine and, if you are lucky, you will be able to smell the ketones on the cow’s breath. The smell is the same as nail polish remover (acetone).

Fatty deposits in the liver can be irreversible and life-threatening.

The second type of acetonemia, found at peak lactation, is often a result of insufficient energy intake (either due to an inadequate diet or an illness that is suppressing intake) and glucose storage in the liver.

There is a negative energy balance and the body once more attempts to break down tissue to produce more glucose. In the presence of low glucose levels, the NEFAs are converted into ketones.

The result is commonly a cow that was milking well at her peak, but is now losing weight and going off her milk.

It is very important to remember that these signs could easily be due to an underlying illness such as metritis, mastitis or a displaced abomasum, so a veterinary examination is often helpful in determining the treatment.

Another, less common, cause of acetonemia is feeding silages that are high in energy sources that promote ketone production.

Pregnancy toxaemia occurs during the last stages of pregnancy when there is a negative energy balance due to the increasing foetal demands.

■■

■■ ■■

yarding or transport); decreased rumen capacity due to the large uterus; twins; or concurrent illness.

Cows go down and cannot rise without the aid of hip lifters, or not at all. Veterinary attention is often needed and an investigation into management advised.

Acetonemia is best prevented by good transition diets and the use of rumen modifiers such as Monensin. Ensuring the overall ration has sufficient energy for the demands of production (whether it is calf growth or lactation) is also essential.

The problem can arise if there is: ■■ inadequate energy intake; ■■ interruption to feed intake (for example,

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DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 15

Industry is driving change RODNEY WOODS

A NEW accreditation for milk tanker drivers

will make life easier for both processors and drivers.

Dairy Australia’s people and capability program leader Shane Hellwege said the program’s launch at Strathmerton last month was a “celebration of a couple things”.

“One, it’s a program for tanker operators and they will have a national accreditation once they have completed the training,” Mr Hellwege said.

“The second is the program is the result of dairy processing companies coming together.

“It’s all about farm safety rather than driving trucks. This is an important point.”

The new accreditation will allow milk tanker drivers to follow the same protocols regardless of which company they are delivering to.

“Before, each processor had different programs. Now there’s a new national program,” Mr Hellwege said.

“If McColl’s Transport were delivering to Fonterra and Murray Goulburn, they would have to do different training,” he said.

McColl’s Transport worker Peter Dawson, who received his accreditation at the launch, said the milk tanker driver played a pivotal role in the industry.

“The milk tanker operator is responsible for the health integrity and responsible for the composite sample of the milk,” Mr Dawson said.

Blair Harvey, from SRH Milk Haulage in Newcastle, attended the launch on behalf of her family company and in support of one of their drivers who had received the new accreditation.

Ms Harvey said she got into the industry because of her family.

“My parents, Scott and Regina, started the business and I started in compliance and have been there for nine years,” she said. “(Then) I got my truck licence. I grew up

GOTAFE Werribee representative Bronwyn Turton, who was part of the working group that launched the accreditation program, said the industry called for a national program.

with it and love what I do.”

The national program came about because the industry realised there was a hole that needed to be filled.

“The industry saw the importance and the industry asked for this to see if it was possible,

and it was,” GOTAFE Werribee representative Bronwyn Turton, who was part of the working party, said.

The launch of the new national White Card Accreditation Program was held at Booth’s Transport in Strathmerton.

Chris Thomas, from CT Consulting, and Blair Harvey, who works with her family’s company SRH Milk Haulage in Newcastle, attended the launch.

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DAIRY NEWS AUSTRALIA APRIL 2018

16 // MURRAY REGION

Inspired by the people in dairy A PRIME driver behind the Young Dairy Network in the Murry Dairy region has moved to Dairy Australia headquarters.

Sarah Thompson has moved to Melbourne to take up a new role as program development coordinator in the Workforce Development area.

Ms Thompson is a familiar face from Cohuna to Cobram to Corryong. She has connected with hundreds of farmers and industry professionals across the region through her work with Murray Dairy, running field days, workshops and courses to support farmers to improve onfarm safety, staff management, business governance, career progression, transition and succession planning.

She said it was the people in the dairy industry that had made the biggest impact on her.

“I have loved the past three-and-a-half years with Murray Dairy and it really is the incredible people in this region that have made it such a great experience,” Ms Thompson said.

“I am really looking forward to taking on this new role with Dairy Australia which will allow me to further my work in the ‘people’ space through the development of national programs and then working with all the dairying regions across Australia to deliver them.”

Ms Thompson has been committed to supporting young people in the industry to develop their skills on and off the farm through her work

with the Young Dairy Network and dairy discussion groups, and on the Young Farmer Ministerial Advisery Council, working with Victorian Agriculture and Regional Development Minister Jaala Pulford.

Young Dairy Network chair Mark Palmer said Ms Thompson had been an exceptionally passionate co-ordinator behind the Murray Dairy Young Dairy Network.

“Many of us on the steering committee have had the pleasure of working with Sarah over the past few years,” Mr Palmer, an agronomist at Stephens Pasture Seeds, said.

“Her passion for the industry, supporting and creating opportunities for young people, and ability to see the positives in broadly challenging situations is nothing short of inspirational.”

Ms Thompson will hand on the baton to her colleagues at Murray Dairy.

Melva Tyson, who has been a part of the Murray Dairy team for almost three years, will be taking on the extension officer role in Workforce Development.

Having grown up on a farm and worked in agriculture and industry training previously, Ms Tyson said she was “looking forward to being out on-farm and working directly with farmers because it feels like coming home”.

Lisa Menhennet, currently an extension

officer, will deliver the Farm Safety program, bringing experience from working in similar programs at Tatura Milk.

Harriet Bawden will become the new Young Dairy Network co-ordinator, after finishing up her work on the Accelerating Change project.

“It’s a good opportunity to connect with

younger farmers in the region and make sure that Murray Dairy is addressing the needs of this particular group, which can be different from the broader industry,” Ms Bawden said.

For more information about the staff and programs at Murray Dairy, or for contact details, visit: www.murraydairy.com.au

Sarah Thompson is leaving Murray Dairy for a new role at Dairy Australia.

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DAIRY NEWS AUSTRALIA APRIL 2018

18 // MURRAY REGION

Are you a leader or a manager?

MIKE STEPHENS

Chairman / Owner

IN A previous article we looked at the three

sources of capital in a dairy farm business — human, physical and financial.

Getting the best ‘return on investment’ for each form of capital requires leadership and management. Because both are important, it is useful to examine the differences between the concepts of leadership and of management.

Leadership can be described as an influencing relationship among leaders and followers who intend real changes and outcomes that affect their shared purpose.

Contrast that with management, which is about gathering the resources at your disposal and using them to achieve agreed goals within an agreed timeframe.

Leadership is about the ‘what’, management is about the ‘how’. Leadership involves innovating, initiating and creating, while management is about copying and maintaining the status quo.

Leadership is creative, adaptive and agile and looks at the horizon, not just the bottom line. A good manager does things right, while a leader does the right things.

Doing the right things implies a vision, a dream, a goal, a direction and a path. Many people spend their lives climbing a ladder and then find that the ladder got them to the top of the wrong wall.

Most losing organisations are over-managed and under-led.

The managers accomplish the wrong things beautifully and efficiently. They climb the wrong wall.

Management is about efficiency. Leading is about effectiveness. Management is about systems, controls procedures, policies structure.

Leadership is about trust, about people.

These have been described by Tyson (1961) as the ‘boss’ and the ‘leader’: “The boss drives his men, the leader coaches them. The boss depends

CEO / Owner

Farm Manager (feed supply)

Milking Manager

Plant & Operations Manager

Administration

Milker

Dairy farm organisational chart.

on authority, the leader on goodwill. The boss inspires fear, the leader inspires enthusiasm. The boss says I, the leader says we. The boss fixes the blame for the breakdown, the leader fixes the breakdown. The boss knows how it’s done the leader shows how it is done. The boss says go, the leader says let’s go.”

Understanding the differences in leadership and management and remembering to act accordingly is difficult when the leader and the manager are the same person.

But that is the reality in most dairy farm businesses. Both leadership and management are required at the three levels of the business operating environment: strategic, tactical and operational.

A good way to ensure that everybody understands their roles is to have a clear organisational chart and position descriptions for all employees (including family members) and contractors.

Both documents need to indicate the reporting lines clearly and show areas of responsibility and limits to authority.

Many farming families resist the use of these documents and the lack of clarity which follows is often the underlying cause of an unhappy, sometimes unpleasant, family employment relationship.

In some cases the tension caused through the misunderstanding and lack of clarity surrounding roles and responsibilities leads to such a severe breakdown in family relationships that succes-

sion becomes impossible.

Strong and decisive leadership from the ‘board’, coupled with leadership and management from the ‘CEO’, can increase the chances of successful succession.

So do measurement, monitoring and timely intervention.

The author acknowledges the heavy reliance in this article on the notes from the Marcus Oldham Rural Leadership Program and on “The Leader Experience”, Daft and Pirola-Merlo.

• Mike Stephens is a consultant with Meridian Agriculture, and works with farming families in developing business strategies to enable growth and succession.

Bringing new pastures on line GETTING YOUR grazing rotation right is crit-

ical to maximise your pasture production.

A well-managed rotation will help not only to boost pasture intake per cow but enable a more effective use of supplements.

Establishing a rotation with newly sown pasture feedbase can be challenging. Planning ahead and managing sowing and grazing to fit into your feeding strategy sets a process for grazing that takes away the guesswork and makes it easy for you to manage, especially heading into spring.

Getting started The ideal strategy is to sow a few paddocks at a time to enable these to come into an established rotation.

This would be the perfect scenario but in reality most farms sow everything at once to fit in with contractor and other farm labour availability. So what do you do to manage this?

If all paddocks are sown at the same time, the first grazing will be the hardest to manage

because you will head into some paddocks early (before canopy closure) and other paddocks at canopy closure.

Establishing a rotation is a compromise between coming in a little early to some paddocks and at the right stage for others. If you wait until all paddocks are at canopy closure then some paddocks will be past the best quality feed and milk production will be compromised.

Ideal grazing stage The ideal grazing stage for a rye-grass plant is at two-and-a-half to three actively growing leaves or at canopy closure.

Prior to the first grazing in autumn, the ryegrass plant can sustain more than three actively growing leaves and does not require grazing to stimulate tillering (the production of more ryegrass plants).

Canopy closure is when the pasture canopy is thick to the point that you can’t see the ground beneath. At this stage there is no sun-

light getting to the base of the plant or to the daughter tillers, where growth occurs and yellowing and death of leaves will occur.

Before grazing, new plants must pass the ‘pluck test’ to be sure cows won’t pull them out. Doing a ‘pluck test’ is as simple as pulling firmly at new plants to check whether or not they stay rooted in the ground.

If you can pull out the new plants, imagine what your whole herd will do to the new pasture!

Grazing residuals After grazing, there needs to be a 4–6 cm residual between the clumps. This ensures the rye-grass plant can efficiently grow a new leaf, due to the plant having enough energy stores.

If the residual is less, then leaf size will be compromised; if the residual is greater than 6 cm, then you have wasted some top quality feed.

Cows will graze soft, palatable new rye-grass pastures hard. To prevent overgrazing at the

start of the season, use on-off technique, giving the herd a limited time on the new pasture.

Supplement the diet with hay and silage fed away from the new pastures.

Revising the rotation Growth rates will slow through the autumn and winter as sunlight hours decline. You will need to lengthen the rotation to ensure pasture is grazed at the ideal stage (2.5–3 leaf or canopy closure).

This ensures pasture quality remains high and is able to be supplemented to ensure consistency for the cow’s rumen health and milk production.

This information comes from the Feeding Pastures for Profit program. The program, made up of seven sessions, teaches participants about grazing principles, how to establish a rotation and seasonal pasture management. If you are interested in participating, phone Murray Dairy on 5833 5312.

DAIRY NEWS AUSTRALIA APRIL 2018

MURRAY REGION // 19

Diary dates April

May

Understanding Lameness workshop with Neil Chesterton

Understanding Lameness workshop with Neil Chesterton

Thursday, April 19 Kyabram Murray Dairy

Monday, April 23 Finley Murray Dairy

Understanding Lameness workshop with Neil Chesterton

Employment Basics

Friday, April 20 Kyabram Murray Dairy

Monday, April 23 Echuca Murray Dairy Cups On Cups Off

Stanhope Community Family Fun Night with guest speaker Kevin Sheedy

Thursday, April 26 and 27 Merrigum Murray Dairy

Friday, April 20 Stanhope Look Over the Farm Gate

Employment Basics

Friday, April 27 Tatura Murray Dairy

Mental Health First Aid

Friday, April 20 and 27 Echuca Campaspe Primary Care Partnership

Improving Herds National Muster Bus Trip

Wednesday and Thursday, May 9 and 10 Leongatha (bus from northern Victoria) Murray Dairy Pathways to Leadership

Wednesday, May 23 Tatura Murray Dairy Cups On Cups Off

Thursday and Friday, May 24 and 25 Numurkah Murray Dairy

Event dates and venues will be advertised via Murray Dairy website, local media and the fortnightly eNews.

For information on the events above please contact Murray Dairy on:(03) 5833 5312, admin@murraydairy.com.au or visit www.murraydairy.com.au

Understanding Lameness Importance of facilities and low stress handling Don’t miss this unique opportunity to hear from leading New Zealand vet, Neil Chesterton.

Neil has a passion for seeing a reduction in lameness, but also for seeing people enjoying milking cows and cows being less afraid of people ‘I often hear of cow-flow improving dramatically within two weeks of a team of milkers instituting the ideas discussed at workshops’ The workshop will cover: For more information and to RSVP please contact Ross Read at Murray Dairy on 0438 906 613.

This event is brought to you by Murray Dairy, Kyabram and Rochester DBN Groups and Loddon and Riverina Discussion Groups.

Morning session • Understanding the different lameness conditions and risk factors • Understanding cow behaviour • How to achieve good cow flow

Afternoon session • Laneway design • Looking at entrances, exits and design of the dairy yards It is recommended that all milking personnel attend the day.

Sessions Kyabram Date: Thursday 19 April, 2018 Lockington Date: Friday 20 April, 2018 Finley Date: Monday 23 April, 2018 All events 10am – 2pm.

IRWIN STOCKFEEDS

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Nutrition & Sales Peter Lowry Sales Manager 0409 566 543 Shane Doherty Northern Victoria 0417 500 344 Sarah Walker Northern Victoria 0437 544 752

www.irwinstockfeeds.com.au irwinstockfeeds@irwinstockfeeds.com.au 20 Wood Rd, Kyabram VIC 3620

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