Dairy News Australia - August 2019

$34 m Koroit plan PAGE 12

AT THE DAIRY SYMPOSIUM: PAGE 18

AUGUST, 2019 ISSUE 106

// www.dairynewsaustralia.com.au

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DAIRY NEWS AUSTRALIA AUGUST 2019

NEWS // 3

Quality target in the West. PG.20

Hay making feature. PG.28

Rain will be key to cow value lift: agents THERE’S OPPORTUNITY in current cow

Big spend at Koroit. PG.12

NEWS ....................................................3–32 OPINION ..................................................... 6 MANAGEMENT ................... 8–11, 14–15, 20—21, 25 HAY MAKING .................................. 28–31 MARKETS ...................................................3 ANIMAL HEALTH ..........................26–27 MACHINERY....................................33, 34

values for those who have feed, according to a cow leasing and agricultural finance company boss.

This comes as livestock agents continue to report tough selling conditions, as farmers in northern Victoria battle either expensive or no irrigation water as well as rising costs, while farmers in southern regions have been reluctant to purchase, awaiting the season break.

CowBank managing director Rod Banks said there was “upside” now as good cows were selling at a discount, in some cases between $500 and $700, on previous levels.

The reduced values correlate with high supply and lack of demand as dry conditions bite, forcing feed costs to sky rocket and many farmers out of the industry.

This has meant demand for cattle has been quiet, but Mr Banks said, for those who have feed, the numbers stack-up.

“One client completed a budget which meant 200 additional cows into their herd

would deliver another $50 000 income at a cost of $16 000 — each cow worth $800 each,” he said.

“There’s big opportunity, upside to cow values.”

“We’ve been parking cows with clients, a couple of hundred cows, and then you think you can buy good cows for $1000 to $1200 that would normally be $1500 to $1700.”

He said there was some interest in purchasing farms with the people looking to buy the herds attached to the farm. Mr Banks said this would only increase into the future as the farm gate milk price outlook was positive.

“The learning out of this period, farmers who are going the best are those who have not cut, they’ve kept feeing their cows and haven’t lost cow condition,” he said. “They might be milking 10 to 15 per cent less, so less numbers but the same production per cow.”

Flanagan Marketing Services’ Lawrie Flanagan said the rain would make all the difference to cow demand.

“It has been hard enough to sell cows at the moment, prices are $1100 to $1400, and anything a little off-the-pace or a little older (is cheaper),” he said.

“The chopper market has been keeping values up, (a good framed Friesian) has been selling $800, $900 or $1000, (so replacement cows) are not much more than chopper price really.”

Charles Stewart agent at Camperdown Malcolm Hallyburton said there wasn’t much demand as local farmers didn’t have feed and everyone was waiting on rain.

“Grass would turn everything around, but farmers are also sitting back to see what the milk price does when it comes out,” he said.

Charles Stewart and Dairy Livestock Services conducted a dispersal at Colac in April where 41 heifers and cows averaged $1568. The mixed-age and condition offering had various calving dates from April to October. The sale clearance was 73 per cent.

DAIRY NEWS AUSTRALIA AUGUST 2019

4 // NEWS

Queensland price push A QUEENSLAND dairy farmer is calling for a

base milk price of $1.50 a litre in a desperate bid to save the failing industry.

David Janke wants the dairy industry — suppliers, processors and supermarkets to forget the last eight years and move forward as a united front, starting with a base milk price of $1.50 a litre for all milk sold into the fresh milk market.

David and his wife Cindy have been milking cows just out of Toowoomba for 40 years but 2019 could possibly be their last if things don’t change dramatically.

His 320-cow dairy farm will be the next statistic.

David said the doubling of fodder prices, drought conditions and poor milk price over the last eight years have pushed his business and those of many others to the brink.

“For the first time in 40 years we might not be able to sow a summer crop, if we don’t get drought breaking rains before October we are finished — we can’t afford to buy in fodder unless

we start to receive a fair price for our milk,” David said.

He believes the introduction of cheap $1 milk has decimated the dairy industry.

“Twenty years ago, a litre of milk was $1.30 in Queensland — a price of $1.50 doesn’t even cover the cost of inflation over that time.

“A flat milk price all the way through will benefit everyone and with a bit of sense we can have a good viable industry again, we can’t sell milk for less than what it was 20 years ago.

“If people think $1.50 is too much, the cost of a litre of milk in New Zealand is $3”.

The Jankes recently opened up their dairy farm to government ministers and representatives in a bid to illustrate the devastating position the industry is in.

“We had a great reception but I am not giving up the pressure, we need to get the message out to everyone. The National Dairy Plan needs to implement what we suggest or we are not going to get anywhere.

David and Cindy Janke.

“I have had a few phone calls and there is 110 per cent support behind me.”

David is now working hard to get representatives from Coles and Woolworths on farm.

“They don’t seem to want to get out of their airconditioned offices but I am keeping the pressure up,” David said.

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NEWS // 5

Fonterra assures milk prices sustainable FONTERRA’S FARMGATE milk prices are

being funded out of its operations, not being propped up by other places in the balance sheet, the company’s managing director Rene Dedoncker has told suppliers.

Mr Dedoncker recently concluded a tour of the major milk regions in Australia and has been talking to suppliers about price forecasts and the company’s position.

He has been reassuring suppliers the prices are sustainable.

“I can look any farmer in the eye and say: ‘We can afford this,’ ” Mr Dedoncker said.

“Does it have the potential to be better? It does. But do we need to see certain things play out? Certainly. But it’s too early to predict what it could be.

“But the price we have put out there is one that has been earned and we are confident in paying.”

Fonterra reviews its prices every two months.

Asked about differential pricing in different regions, Mr Dedoncker said he had been making the offers “crystal clear”.

In northern Victoria, pricing was around a minimum volume and a higher quality standard.

“The reason for that is that with cheese contracts, like at Stanhope, we have to guarantee milk to that product.

‘The $6.80 farm gate milk price is available to everybody, if you can meet the higher standards you can make a choice.

“In other regions we have a variety of different options, In Gippsland there is premium for A2 conversion, in Tasmania there

is an opportunity for growth, and in West we have agreements for servicing our Woolworths contracts.

“The special offers are not for everyone, but we have been clear to suppliers about what they are.”

Fonterra announced earlier this year it would be closing its Denninton plant in western Victoria, which raised some questions about the future of other factories.

However Mr Dedoncker said the Stanhope and Dennington plants were very different.

“Dennington is a much older asset and focussed more on commodity powders.

“At Stanhope we have a plant which is probably the most modern cheese plant in the southern hemisphere. At Stanhope the agility we have built in, has really come to the fore.

“Granted, it’s not running to capacity but we have enormous flexibility.”

Fonterra’s recently upgraded Stanhope cheese making facility is not working to capacity but is still generating income for the company, Mr Dedoncker said.

The company has ploughed millions of dollars into upgrading the plant but has not been able to run at full capacity with milk volumes falling in northern Victoria and the rest of the state.

Fonterra has been transferring milk to the factory to keep it running at optimum level.

Mr Dedoncker said the factory was playing a part in Fonterra’s successful cheese business in the consumer and food service sectors.

“We are the largest cheese player in the country and we have the number one brands.

Fonterra Australia chief, Rene Dedoncker.

“That business has had its best year ever.

“Our branded products are doing very well and have had the best year ever.

“We will make more cheese this year than last; year.

Cheese is earning a premium in sales for consumer food service and international ingredients.

Mr Dedoncker told Dairy News Australia Fonterra was maintaining its milk share in Australia.

He said the declining volumes going through the factories was forcing them to look long and hard at the business.

“We are proactive about the choices we make”.

In the ingredients business, with products like Bellamys organic, and the baby formulas and powders, Fonterra has been reviewing its arrangements and turning away from deals which were not making money for the business.

“Bellamys is an example where we both make money from the agreement.

“But where we have trading companies coming and going depending on the price, we are cutting that off.

“We are doing less ins the tradeable stuff. We are not waiting on this, we have already made the choices.

“The good thing is that we have options and we are exercising them.”

FUNDING CUT A dairy lobby group will no longer receive funding from processors after a three-year agreement ceased on June 30.

In a statement Australian Dairy Farmers (ADF) announced the agreement, which had seen 11 processors contribute to funding the Australian Dairy Industry Council (ADIC), would not be renewed.

“Despite the important policy work undertaken by the ADIC, we understand there has been a perception among some farmers that the ADIC funding arrangement may blur the focus of ADF priorities and messaging, including our representation of farmer interests,” the statement read.

“We believe that the conclusion of this arrangement will allow ADF to pursue its extensive advocacy agenda free from questions around our independence.”

The lobby group said it will maintain discussions with processors through the Australian Dairy Products Federation (ADPF), which forms the ADIC along with the ADF, but no formal arrangement has been finalised.

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6 // OPINION

EDITORIAL

Problems heard, now let’s solve them Well, the dairy plan talks have produced the problems.

Now, we get to the hard part − solving them.

The last workshop held to discuss a plan for the industry was held at the end of July, and has produced a shopping list of issues the industry wants addressed.

There will be no surprises here, although for some in the industry there will be a measure of discomfort with the outcomes.

Dairy farmers are generally not happy with their representation and their leadership, although this finding would be common for many industries and it has to be said that kicking around your duly elected representatives has almost become a national pastime.

And we’re not particularly generous when it comes to rewarding the people who represent us.

Membership of the state farm lobby groups is not that strong, so it’s hard to see where the drive for a more energetic body will come from.

Our leaders will be the ones charged with implementing and running the new dairy plan, so it is vital that they develop some trust and confidence.

We will be asking them to pursue a more transparent pricing system that gives farmers more confidence to implement appropriate strategies, make decisions about better marketing, find ways of encouraging future, younger farmers, and represent the industry in defending its role in a modern, social-media obsessed society.

A day-in-the-life of chopping pillows Todd Heffernan is more accustomed to chopping silage than chopping pillows, but last year’s House Rules winner, opened up about his experience at the recent Dairy Symposium held at Bega.

The Bega farmer and his partner, Amanda, took out the grand prize in the reality television home renovation show House Rules last year.

Todd shared with the audience “a day in the life of” the show; getting up at 6am, getting “miked up” with the audio equipment and doing the video stories that are peppered throughout the show. Work came to a halt at about 6.30pm.

“We studied till about one or two o’clock in the morning and then up at 6am. So, it was pretty full-on,” Todd said.

“I was chopping pillows one week and doing pretty good and the Mrs was happy, and the next week I chopped a pillow on the bed and she lost her sh** pretty much!

“We didn’t have a clue to start with. I couldn’t see myself being on TV.’’ “We decided early on that if we were going to commit to anything, we wouldn’t half do it.”

Todd said the couple also learnt the show relied on some drama.

“We worked it out pretty early in the piece,

they do want you to fight on TV and make a reality show, Home and Away stuff.

Amanda said she appreciated her house now. “We’ve got insulation!” she said.

Todd and Amanda’s experience included a trip to the hospital, where he was given nine stitches after cutting his finger almost to the bone.

After the renovation, Todd and Amanda’s final assessment came to a value of $1100000 (originally $850000).

“To come out of it about $250 000 up, was pretty good,” Todd said.

Advertising Max Hyde 0409 103 745 max.hyde@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 AUGUST 2019

NEWS // 7

Tahlia’s 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 Britain staying and working with Holstein UK members, and will also take part in the South West Dairy Show, the UK’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 Ms McSwain’s greatgrandfather moved from Victoria to set up the farm with humble beginnings — six Jerseys and 38 ha as part of the Western Australia 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 officer, 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 Gillian 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.

Tahlia McSwain.

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8 // MANAGEMENT

Will and Rob Russell on their Bega Valley farm.

Embracing technology a family trait GEOFF ADAMS

TECHNOLOGY HAS been a recurring theme

for the seven generations of the Russell family.

More than 135 years ago their pioneering ancestor, Daniel Gowing, worked the scenic Bega Valley with an innovative steam powered plough.

Now descendant William Russell has an

ambition to ramp up technology on the 242ha dairy farm, which straddles the main road on the gentle hills between Bega and Tathra.

He has already used soil moisture monitoring to push yields higher in maize growing and has plans to implement further change.

Will grew up on the Jelgowry property with his sisters and parents Rob and Pip, but left to pursue a career in engineering and has now returned to

the farm, where he concentrates on the pastures and cropping while his dad manages the herd.

The farm is powered by a herd of about 300 mostly Illawarra cows, calving right through the year, which provides a flat production line and generates about 2.25 million litres annually or about 6600 litres/cow.

The property has a historical association with the red breed but over the years the herd became

dominated by Jerseys.

When the farm gained access to the Sydney and Canberra liquid milk markets with less emphasis on fat and protein, Rob said they moved back to the Illawarras.

“I don’t have a particular issue with any breed; but I have a strong belief in using different breeds for different reasons, and the Illawarras are good for us.’’

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MANAGEMENT // 9 Although mostly self-sufficient in fodder about 40 per cent of their dry matter diet is bought in.

The cows graze pasture with a Kikuyu base oversown with annual rye grass and homegrown silage is mostly maize and lucerne.

They feed about six to seven kilograms of bought in concentrates in the dairy which works out at about two tonne/cow/year.

He uses the web-based DairyBase software to measure and compare the farm business performance over time.

The 104ha of irrigated land is supplied from an 800Ml allocation from the Brogo dam, and irrigation comes through centre pivot (25ha), sprinklers (24ha), K-line pods (5ha) and hard hose (50ha).

The remote soil moisture sensor gives Will an objective guide on irrigation timing.

“The thing with irrigation is that it’s one more job that you don’t want to do until you have to, so there is a tendency to put it off. This tells you when the crop needs it,” Will said.

Their last Pacific 624 maize crop yielded about 23 dm tonne/ha which was better than they have been able to achieve previously.

The family has trialled a software pasture management program and then intend to implement it this summer to improve paddock performance and to produce better quality silage.

Will has one eye on robotic milking but there is a complication which mitigates against adoption of the technology at the moment.

The farm is split by a busy main road and that complicates cows volunteering for an automated milking system.

Will is wrestling with that issue, but in the meantime is wanting to implement a cow ID system, and a paddock management software.

The farm employs two full-time staff.

With such an enduring family heritage, there has been a need to talk about family succession and Will is happy that discussions have been open and frank.

Rob and Pip will be looking to wind down their working hours, but still want to remain involved.

Will has found his engineering background and experience working at Bega Cheese to be useful in managing a farm.

For a number of years, his job involved continuous improvement on a new line and that meant examining data to gain improved outcomes or better labour efficiency.

“You try to chip away at it, and get better at what you are doing. That’s what I am trying to do,’’ he said.

Illawarra cattle dominate the 300 strong herd.

The first of a number of soil moisture sensors used to guide irrigation.

A historic steam plough that once worked the Russell farm at Bega.

DAIRY NEWS AUSTRALIA AUGUST 2019

10 // MANAGEMENT

A tough goodbye, but change welcomed SIMONE SMITH

WHEN MARK Billing was putting cups on cows on a Sunday morning in early July, he felt different.

“I was thinking we are not worrying about volumes, or what Fonterra is going to do next,” he said.

“We have signed a contract that guarantees the opening price …a fairly simple contract which was easy to comprehend, but the best thing was the guaranteed minimum price.”

It had been exactly a week since the milk from his family’s 450-cow herd had started being processed by Australian Consolidated Milk, when Dairy News visited the western Victorian farm.

The move to a new milk processor ended a 100-year association with the company that became Fonterra.

Mark said he felt “a bit strange” when the Fonterra tanker left his Larpent dairy farm for the last time.

This move followed four generations supplying the company that made the long-standing local butter brand Western Star.

Mark said comprehending the fact it “isn’t our brand anymore” was tough. “That’s a little bit strange, but again that’s more of a heart thing than a head thing,” he said.

Changing milk processor was drawing a “line in the sand” according to Mark and his wife Sam. “We are a lot happier,” Sam said.

“We were able to make the decision, for the first time in our business lives, about who we

were going to supply.

“Previously, that decision had always been made due to coming through the generations for farming. We just followed on.

“Now there’s a line in the sand. We said, ‘Right that’s it, we are making a decision about how we are running the business from now on.’ ” The Billings were not alone in swapping milk processors at the end of last season.

Dairy Australia, in its Situation and Outlook report released in June, said about 25 per cent of the 1000 farmers it surveyed had indicated they had changed processors.

This statistic has only been recorded since 2015 when 10 per cent of farmers swapped processors, but prior to this it has been estimated only three to four per cent changed the signs on their front gate each year.

There may have been a rush to sign contracts and complete agreements before the start of the new season on July 1, but Sam and Mark insisted the idea of moving processors was first floated three years ago.

“Without a shadow of a doubt, the May 2016 issue was probably the real motivator about actively looking at other companies,” Sam said,referring to the Dairy crisis which was triggered by an unexpected drop in the farm gate milk price.

“But prior to that, we had started to become more aware of what was happening within different companies.

“We have now moved from blindly supplying one particular company that we had for nearly 100 years, to one where we are able to run this business like a business.”

Larpent farmers Mark and Sam Billing investigated many milk processors before deciding to move to Australian Consolidated Milk.

Sam said they had seen some significant increases in their input costs in recent years and found they were not keeping pace with these costs by being loyal to their previous supplier.

“We really struggled in the 2016–17 year with the clawback, but following on from that, we sat back and realised that for the first time, we were unencumbered by who we could supply and that was when we actively started looking,” Sam said.

“Previously, there had always been a reason to stay (shares, sentiment, involvement with the processor at a board level), and that’s what kept us for so long.”

Mark said they “nearly left” Fonterra last year, but at the end of the 2017–18 season staying with the processor seemed like the best financial option.

“Begrudgingly we stayed and as it turned out, we were not better off financially, but you never know these things at the start,” he said.

“We really would have been better off moving earlier.”

Mark said the decision what to do this season was “pretty much a no-brainer”.

“The money that was on the table from a range of processors was pretty good,” he said.

“There is still a petty tight margin with our costs. The milk price is great, but our costs are pretty significant too.

“So, we sat down and did seven income estimations all up and laboured over our production profile with each of them, right down to a month-by-month basis and there were two that came up reasonably well for us.”

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DAIRY NEWS AUSTRALIA AUGUST 2019

MANAGEMENT // 11 Settling on ACM, Mark and Sam said they liked the business’ model, structure and the fact it wasn’t reliant on export markets.

Mark said he especially liked selling to a domestically focused processor which was Australian owned. He, as part of the Fonterra forum — a group of farmers which advised Fonterra — had become more concerned about Fonterra’s global performance and how its move into China had been “consistently backfiring and putting huge pressure on their balance sheet”.

Fonterra Australia managing director René Dedoncker responded by saying the “fundamentals” of the business were strong, pointing to the global demand for dairy and committed to its future in Australia.

“Our credit rating agencies have publicly recognised the strength of the co-op’s underlying business and that’s why we continue to have an A-band credit rating,” he said.

“Notwithstanding, our global performance is not where it needs to be and the co-op is doing everything it can to turn that performance around and is undergoing a full strategy review.

For example, we have unwound the Darnum joint venture with Beingmate, giving us back 100 per cent ownership of the site.”

Mr Dedoncker said Fonterra continued to “pay a competitive milk price” but admitted “we still need to work hard to rebuild trust with our farmers as the events of 2016 still weigh heavily on their minds”.

For the Billings, looking ahead they are optimistic, but admit there is a long way to go.

Financial pressures from the May 2016 farm gate milk price drop still linger and stress had been compounded due to the extended dry season.

These concerns took a toll on Mark.

“I went through a really bad patch in February-March, I crashed big time,” he said.

“It was the culmination of everything. What happened three years ago, current issues on farm, the juggling of industry roles I had at the time, the weather, the bills and everything. It only really lasted four to five weeks and then I felt normal, if that is the right word.

“It is amazing when you start to talk about it with people you discover how widespread it is.

“We don’t farm in northern Victoria and we don’t know how the hell we would go up there, it is bad enough here. But now we have this milk price and if we can take it through to next year, and the grain guys have a good year, we will be able to stabilise our inputs and get a good season.”

The Billings are adjusting their business to ensure their farming system suits the variable seasons. This includes changing their pasture base to ensure longevity from pastures.

“We are pretty much going back to all diploids,” Mark said.

“Considering the seasons that are now being thrown at us, we are adjusting our feed base to these seasons and growing as much feed as we can. That’s always been the aim but more so now.

I feel a lot better than I did back in February.”

The Billings are also looking to be less reliant on milk income. Now they are 90 per cent focused on milk, but are hoping to move this to 70 per cent by joining later calving cows to beef as well as selling registered Holstein bulls.

Financially, the family believes this time next year it would have caught up from 2016.

Happy to have changed milk factories, Mark and Sam said the true relief was still to come.

“I think at the end of the day it doesn’t matter how good the season is, if you have hundreds of thousands outstanding with people around town and the bank and all that sort of stuff, you are never going to be hugely positive,” Sam said.

The Billing family from Larpent are one of many dairy farm businesses which has moved processors this season. Pictured are Biddy, 11, Bella, 9, Henry 7, Tom, 14, Mark and Sam.

“You have to get on top of that financial aspect to appreciate how necessarily good it is sometimes too. We had a really great calving year this year, but we are not going to see the benefits of that for another couple years and we are still dealing with the issues from what is left over from a few years ago.

“That won’t happen until we can get back to even footing, where the income generated is really only being spent on costs accrued in that particular year.”

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DAIRY NEWS AUSTRALIA AUGUST 2019

12 // NEWS

$34 m Koroit plan LOCAL FARMERS stand to benefit with con-

struction starting on a new $34 million lactoferrin plant at Bega Cheese’s Koroit site.

The new plant will create six to 10 ongoing permanent full-time jobs and potentially lead to higher milk cheques for suppliers.

Site manager Chris Evans said the lactoferrin plant would derive a high value protein out of Bega’s current milk pool with more potential for growth.

“It’s a fantastic development for the people of Koroit and surrounding districts and ultimately an investment such as this will hit the bottom line of farmers,” Mr Evans said.

“Once Bega pays for the initial outlays, farmers will see benefits through their milk price.”

The plant will extract and separate lactoferrin for use in manufacturing infant formula, producing more than 30 tonnes a year primarily for export markets.

Bega’s Tatura lactoferrin plant, which has been operating for nearly 20 years, is also being upgraded to raise its output to meet strong international demand for the product.

Bega Cheese bought the former Murray Goulburn Koroit processing plant for $250 million last year after Saputo was forced by Australia’s competition watchdog to sell it as part of its $1.31 billion buyout of MG. It will celebrate its first birthday in Koroit on August 17.

Mr Evans, who has worked on the site for 25

years, said the new plant was a show of confidence for the future of dairy in the region.

“It’s putting the site into a niche market with a high value-add and high-return product. It’s fantastic that Bega not only acquired the site but is willing to spend capital on its development,” he said.

There is enough supply in the current milk pool for the plant to be fully utilised across the year but Bega intends to chase more suppliers.

“The knowledge around lactoferrin is still in its early days and there are strong opportunities for growth,” Mr Evans said.

Bega executive general manager − ingredients, Mark McDonald, said the plant was on track to be completed March to June next year.

Mr McDonald said lactoferrin was a protein found naturally in milk.

“It naturally occurs in mother’s breast milk and provides immunity so there is a massive application for use in infant formula,” Mr McDonald said.

It also has wider usage possibilities to improve skin quality, grow hair, bone health and other immunities.

The vast majority of the Koroit product will go into infant formula export, with contracts already in place for international markets.

Mr McDonald said Koroit was an obvious site for Bega to expand its lactoferrin production.

“We’ve got adequate milk supply and Koroit

Bega Cheese HR business partner Matt Berg.

has significant growth opportunities in the future,” he said.

In addition to construction jobs, there is strong demand for ongoing positions at Koroit.

HR business partner Matt Berg said there had been 782 applicants for six operator positions, plus a further 85 for lab technician roles.

“We thought there would be extra because of the Fonterra closure but that only accounts for 40 to 50 applications,” Mr Berg said.

“It’s a bigger job for us but it means we get a higher quality of applicants to consider.”

Most of the applicants are from south-west Victoria but there are also people looking to

relocate from Melbourne.

When the new plant is operational, the site is expected to have 132 employees.

There will be six extra operators for the new plant and there could be more positions in support services such as maintenance and quality control.

“It’s looking really positive for us at the moment,” Mr Berg said.

“The site has had more recruitment in the past six months than it had in the previous five years. It’s better to be on the recruiting end than the other way around.”

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DAIRY NEWS AUSTRALIA AUGUST 2019

14 // MANAGEMENT

A love of shorthorns inspires breeder SIMONE SMITH

STRIKING-UP A conversation in a paddock

at Timboon was a step towards kicking a huge business goal for one Dairy Shorthorn breeder.

It was during the International Red Breeds Conference when Dylan Jewell got talking to a breeding company representative from New Zealand.

“He said, ‘You wouldn’t happen to have a bull that’s white?’ ” Dylan said.

“I said ‘Yeah, and he’s polled too.’ He said, ‘He wouldn’t happen to be A2?’ I said I’d find out for him and get him tested. He came back

positive for A2.”

That simple conversation enabled Dylan, a self-confessed hobby farmer, to achieve a first of many breeding goals.

It was easily the biggest thing the artificial insemination technician had done with his own breeding.

“I’ve AIed 60 to 70 thousand cows and helped people achieve their breeding goals and then to achieve one of my goals finally, it was a big thing,” he said.

“To think I started off with a couple of calves, things were a bit tough, and then to have that finally happen, it was one of the many goals ticked.”

Dylan grew up in Warrnambool and while he

Dylan Jewell grew up in town, but his passion for breeding started at school.

He’s pictured with his Kanangra Dairy Shorthorn herd at Woodford.

always had an interest in animals, it was showing cows and rearing calves while at school that really sparked his interest.

He then worked on local dairy farms and for the past eight years has been employed as an AI technician, developing his interest in genetics and improving herds.

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An early photograph of Australian Dairy Shorthorns.

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Shorthorn calves from Arraluen Dairy Shorthorns at Beeac, six months after, he bought another two from Tuerong Dairy Shorthorns at Stanhope, and Kanangra Dairy Shorthorns was born.

“I was just interested in a different breed,” he said of buying Dairy Shorthorns.

“I didn’t know anyone who had them and I like to do things differently.”

DAIRY NEWS AUSTRALIA AUGUST 2019

MANAGEMENT // 15

Agistment for the cattle was initially tough to source for Dylan, during the first few years, and it is why he only has six females.

“I had them 40 minutes out of town and whenever I went to do a program on them, the Angus bull had always walked through the fence.

“Eventually I got them at a place in Wangoom and I was able to start with a program, I’ve been here (Woodford) for two years and that’s why numbers are slowly increasing, and everything is pure bred.”

Dairy Shorthorns were once a dominant breed in Australia. The Dairy Shorthorn Association of Australia describes them as a “moderate framed animal”, although bulls don’t have any problem getting to more than 1000 kg.

They come in three colours: red, white and roan.

The association’s marketing material said the cows breed regularly, calve easily and exhibit great longevity. They have a quiet temperament and are adaptable to all climates in Australia and are bloat resistant. They can be either horned or naturally polled.

As the national herd has shrunk, it is becoming harder to source genetics, according to Dylan.

“The gene pool is so small, and they are a breed that’s not dominant like it was in the 1960s,” he said.

“I think the big advantage of me working in the AI industry is the connections I’ve made over the years and being able to find who’s got some semen left over or source bulls that may not be coming in and help them get in.”

Dylan sources a lot of semen from the United Kingdom but is also able to purchase from Australia as the Dairy Shorthorn Society has semen available for sale, if it is required.

Some of the bulls Dylan has used include: Twells Heather King 15, a bull from the 1980s, UK bull Oxton Boundless and Tregear Poynings Trumpeter 6.

Using old semen, there is both “good and bad” points, according to Dylan.

“My theory was I was looking for anything but at the same time, when I found those two doses (of Twells Heather King 15) a lot of that bull was either not in pedigrees anymore or not close, he’s pretty far back,” Dylan said.

“I was able to reintroduce it. The bull was a good bull at the time, he had a lot of sons and daughters back in the day, but as time’s gone on the breed dwindled a little bit and I was able to reintroduce him. He was a long way back in cow Kanangra King Deano’s pedigree so I was able to

use him on her and the result was that bull New Zealand is interested in.”

As a hobby farmer, Dylan said Dairy Shorthorns were perfect for “his situation”.

“They are easy to transition over and put them out in the paddock to rear calves,” he said.

“I don’t have to worry about them getting mastitis or anything.”

Describing them as “hardy and durable” he said they were a “great dual-purpose breed”.

“They are just an easy-going breed,” he said.

“I’m a hobby guy, but if I was to go big scale, I’d have no worries just having them as my animal as a big commercial breeder.

“Fertility is awesome with them. I calve them down middle of winter and they survive, and the vet bill is basically non-existent.”

Dylan said Dairy Shorthorns converted feed well, and were cost effective animals.

“I love coming out here, putting some grain on the ground and talking to them,” he said.

“It makes my day, when people want to hear about them; you can never shut me up, I just keep talking about them and they are different colours. You never know what you are going to get.”

Looking ahead, Dylan wants to build numbers and sell bulls into AI, to dairy or beef farmers.

He said the Dairy Shorthorns made great vealer mothers but were also productive in the dairy with good butterfat and protein.

Having spoken to several dairy farmers about using the Dairy Shorthorns as a cross in dairy herds or as mop-up bulls, he knows there’s a market. He believes affordable semen would stimulate interest among dairy farmers.

For now, though, he will be hitting the ring at the Royal Melbourne Show next month with a string of four.

It will be his first time back in the showring since 2011 and will coincide with the World Shorthorn Conference, which will be in Australia during that time.

The conference includes a tour through South Australia, Victoria and NSW with delegates stopping-in to watch the Dairy Shorthorn judging at the Royal Melbourne Show. The breed gets judged as part of the beef show because it’s a dual-purpose animal.

Malcolm Douglas is the Australian Dairy Shorthorn Society president.

His family had commercial Dairy Shorthorns at Harcourt back in the early 1900s and in 1977 he and his brother started a stud called Tuerong.

In 1989 the stud moved to Stanhope.

A Kanangra Dairy Shorthorn heifer on agistment at Woodford.

“Some people have hobbies like collecting stamps or beer cans, our hobby was to start a Dairy Shorthorn stud!” Malcolm said.

The herd has since been dispersed; the first sale was four years ago and the second in 2016.

Malcolm said the Dairy Shorthorn Association of Australia now has 40 members and these were mostly in Victoria, Tasmania and NSW, with one in Queensland.

He said there were commercial herds in Western Australia. Most association members classify as “full-time farmers”. In Australia most Dairy Shorthorns are used as vealer mothers.

The decline of the breed is due to many factors, according to Malcolm.

“First there’s specialisation, the Dairy Shorthorn is suited to mixed farming operations,” he said.

“For example, in our family situation we had an orchard, sheep, pigs and milked cows. Back in the ‘70s specialisation came in, you either focused on breeding beef or purely dairy, attributes which didn’t fall in the Dairy Shorthorn basket.”

Malcolm said the breed didn’t embrace artificial insemination like other cattle breeds and this meant it lost “impetus”.

“The breed was so reliant on England for its genetics,” he said.

“When England had foot and mouth and mad cow problems the door virtually slammed in our face.

“To this day, the Dairy Shorthorn in Australia tried to maintain itself as the original dual-purpose breed that came from England.”

Malcolm said this steadfast dedication to English genetics could have been to the breed’s detriment.

He said Shorthorn cattle could be traced back to the 16th century in Great Britain; it is the oldest recorded breed existing in world today.

As Shorthorn breeders from across the globe prepare to converge on Australia, Malcolm explained how international conferences helped open the genetic pool for Australian breeders.

“I found that when I went to my first conference in England in 2010, I was able to make contacts with people. It was quite advantageous, that one-on-one contact.”

White Dairy Shorthorn bulls are sought after

by Holstein herds trying to breed Blue Roans or “front paddock cattle” according to Malcolm.

Some beef herds also chase the white bulls to join with Hereford or Angus.

When asked if Dairy Shorthorns would become popular again, Malcolm said, “I’ve got to be honest, no, it just doesn’t suit specialisation.”

The World Shorthorn Conference will be held at Wagga Wagga on October 3 and 4.

For more information, contact Malcolm Douglas on 0429 956 906.

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DAIRY NEWS AUSTRALIA AUGUST 2019

16 // NEWS The award for Barry Irvin was presented by NSW parliamentary secretary to the minister for agriculture, Michael Johnsen, and accepted by senior milk supply officer, George Went on Mr Irvin’s behalf. Dairy Connect chair George Davey is on the right.

Dairy award for Bega chief BEGA CHEESE executive chair Barry Irvin

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has been recognised for his role in the industry, awarded the University of Sydney’s Dairy Research Foundation 2019 Dairy Science Award.

Presented at a major industry symposium at Bega, the award is sponsored by advocacy group Dairy Connect and was accepted by Bega Cheese senior executive Roger Went on behalf of Mr Irvin.

Dairy Connect chair George Davey said it was critical to publicly salute the vision and drive that had created a billion dollar international food production, processing and distribution business from regional beginnings on the NSW south coast.

Mr Irvin has been executive chair of Bega Cheese for 20 years and led the company through the deregulation of the industry in 1999.

Bega, which initially had one manufacturing site that produced 3500 tonnes of cheddar annually and employed about 80 people, now has domestic and international sales of more than $1.2billion.

The company produces about 230 000 tonnes of cheese, milk powders, infant formula and nutritional products, exporting to more than 40 countries and employing about 2000 people.

Mr Irvin is extending his leave by six months as he undergoes chemotherapy.

Bega Cheese said Mr Irvin had appointed long-time director Max Roberts as his alternate director and chairman in his absence.

Bega announced last month that Mr Irvin would step aside to recover from surgery, but gave no further details.

In an update on July 8, the company said Mr Irvin’s chemotherapy was to treat the cancer that had been dealt with in his surgery.

Mr Irvin became chairman of the Bega cooperative society in 2000 after returning to the dairy industry from a stint in finance.

He has been executive chairman of Bega Cheese since 2008 and was at the company’s helm when it listed on the ASX in 2011.

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DAIRY NEWS AUSTRALIA AUGUST 2019

NEWS // 17

Advocacy, transparency major themes for plan MORE THAN 130 delegates representing all

Australian states and elements of the supply chain in the dairy industry met over two days in Melbourne on July 30 and 31 to frame the key elements of the Australian Dairy Plan.

The two-day workshop follows 25 regional consultations across Australia attended by more than 1000 people.

The workshop was opened by the independent chair John Brumby, who highlighted the importance of the industry working together to develop a plan to restore profitability, boost

confidence and lift the performance of the industry as a whole.

Workshop representatives agreed key themes for the ADP included: ■■ Transformational change to reform industry structures and strengthen advocacy to be more effective, united and efficient.

■■ New measures to increase transparency and help manage market risk including the establishment of a functioning milk price market and new risk measures backed by government legislation.

■■

■■

■■

A significant increase in marketing and promotion to ensure the community values dairy products, the dairy industry and dairy farmers.

Increased effort and new initiatives to attract and support the next generation of farmers.

A heightened focus on building farmer capability and increasing and stabilising margins on farms through measures to improve productivity and improve farm costs.

A wide range of other important issues including climate change, social license and animal welfare, on-farm productivity, research and development, and skills development were also discussed and will form part of the plan.

Mr Brumby said there was a real appetite for change across the industry and a recognition that business as usual wouldn’t do the job.

“The industry has been declining in size and is at a critical tipping point,” he said.

“Bold new measures are necessary to take the industry forward.”

RETAIL MILK PRICE INCREASED Three major supermarkets have lifted the retail price of milk in a move supported by dairy advocacy group, Dairy Connect.

German supermarket ALDI and Australian supermarket giant Woolworths acted first, followed by Coles.

Aldi has increased its retail milk prices across Australia by 10¢/litre.

Aldi will now sell its home-brand one-litre milk for $1.29, up from $1.19, while its two-litre milk will now cost $2.39 and three litres will set you back $3.59.

From July 26, the Woolworthsbranded fresh milk range will sell for: one litre $1.29, two litres $2.39 and three litres $3.59.

“We have recently increased the retail price of our entire fresh milk range,” an ALDI Australia spokesperson said.

Dairy Connect chief executive officer Shaughn Morgan welcomed the announcement.

“The ALDI statement confirms our long-held belief that the farm gate price paid to dairy farmers has been too low and reflected commercial ‘market failure’,” Mr Morgan said.

“It’s important to ensure that as much as possible of the ALDI price increase flows through to the farmers.”

Dairy Connect chair Graham Forbes said relationships along the supply chain needed to be restructured to ensure viability into the future.

“Retailers, processors and farmers all need to be successful because there is a risk that Australian consumers will soon be drinking imported milk,” Mr Forbes said.

“We need to ensure a ‘win-win’ for all because, with the large number of dairy farming enterprises closing on a weekly basis, Australia is on the verge of importing foreign milk.”

Woolworths said since February it had seen farm gate prices increase significantly.

“As a result of these farm gate price movements, we have been paying our suppliers even more for milk and other dairy products across the category over recent months,” a Woolworths spokesperson said.

“Due to these ongoing wholeof-market cost pressures, we have reviewed and adjusted the price of Woolworths milk.”

Coles said it would increase onelitre milk to $1.29, two-litre will set you back $2.39 and three-litre is now $3.59.

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DAIRY NEWS AUSTRALIA AUGUST 2019

18 // NEWS Pictured during a break at the Bega Dairy Reserch Symposium last month were, from left, Greg Duncan, Jessica Pearce from Bega, Ebony Martin from Bega and Will Russell from Bega.

Pictured at the Bega Symposium in July were Ryan Apps, left and Luke Apps from Bega.

DAIRY ADVOCATE CALL FOR ALL STATES

Forward thinking and a selective breeding strategy allows the Dornaufs to achieve their farm goals.

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Improvement is the name of the game for third generation dairy farmers Nick and Bek Dornauf.

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There’s always room for improvement

The dairy industry would be best served if the NSW Government’s proposal for an independent dairy advocate was extended to all states, according to Dairy Connect.

The NSW Government promised the appointment of an advocate in March to establish a fresh milk crisis taskforce and to drive a marketing campaign, but has not yet announced who will fill the position.

Dairy Connect chief executive Shaughn Morgan, told Dairy News the advocate position needed to be independent of government, so it could make public comment without being constrained by public sector rules.

Mr Morgan said the appointment of an advisery council needed to be formed with all stakeholders, processors, industry groups and supermarkets.

“They will need to find out what underpins the industry in NSW and to find out some solutions for some of the issues we are encountering,” he said.

“I think the advocate is really important in that regard.

“Dairy farmers have to have confidence and the processors need to know it is independent. If the advisory council doesn’t work, it won’t be able to achieve what it needs to do.”

Mr Morgan said matching appointments in other states would be beneficial to the national industry.

“NSW can’t go it alone. At the end of the day we need to be working together. Everyone is talking about leadership and this whole concept plays into that,” Mr Morgan said.

“Victoria takes a slightly different tack to us, so the UDV is looking at issue slightly differently from mandatory code to transport subsidies.

“Once they see the benefits that flow from this position in NSW, I hope that will be the catalyst for them to talk to their government.

“There are some very similar issues: skyrocketing fodder costs, electricity prices, milk supply agreements with unfair clauses,” Mr Morgan said.

Asked about the announcement

by Coles it would enter into direct contracts with suppliers, Mr Morgan said while the mandatory code was not yet in place, Coles should comply with the spirit of the code.

“The code is not yet in place and it is not retrospective so it won’t apply to the five-year contracts Coles is reaching,” he said.

DAIRY NEWS AUSTRALIA AUGUST 2019

NEWS // 19

Team unity draws top 100 accolade LOOKING AFTER, and retaining staff, is one

of the keys Tasmanian dairy farmer Mark Griffin uses to maintain and improve milk quality.

This dedication, along with accurate record keeping, has placed his dairy business in the top 100 nationwide for milk quality this year.

The 800-cow three-way crossbred herd is milked through a 50-bail rotary with a springbased calving pattern and had an average monthly bulk milk cell count of 70 000 throughout 2018.

Improving the system along with the effort and attitude of the farm team are key contributors to the success.

Mark regularly encourages his team to suggest ways to improve milk quality and take an active role in preventing mastitis.

He believes keeping the cows calm and handling them gently reduces their stress levels and increases the quality of the milk.

“Attention to detail is crucial — it doesn’t matter if you milk 1000 cows or 100 cows. You have to support your staff, lead by example, and provide flexibility of lifestyle,” Mark said.

The farm has a very high staff retention rate which Mark believes plays a major role in business profitability.

After deciding to take the farm’s milk quality to the next level and break into the top 100, Mark decided to refresh his knowledge and

pursue more training to further improve the dairy herd’s performance.

“I always recommend refreshers — even if you only pick up one or two new things at training courses, it makes a big difference to your overall system.

“You can also create networks and talk to other farmers about what has worked well and what hasn’t worked well for them,” Mark said.

Ambic in-line mastitis detectors have been fitted on each set of cups and are closely monitored by the cups-off operator at every milking.

If mastitis is detected during milking, that bail is not used for the rest of the milking to prevent cross-contamination.

“All heifers are teat sealed to reduce the risk of mastitis at calving, with a goal of saving costs in the long-term by reducing the number of mastitis cases and increasing lifetime productivity of those animals,” Mark said.

All staff receive training on-farm before they are tasked with teat sealing, with the farm team recognising that hygiene is crucial to milk quality.

Herd testing is conducted monthly and the data is used to identify cows which require dry cow treatment.

Higher cell count cows averaging more than 200 000 throughout the lactation will be treated with a broad-spectrum dry cow therapy at the

Mark Griffin believes retaining well -trained staff on his Tasmanian dairy farm is one of the many important keys to improving and maintaining milk quality.

end of their lactation.

Milk cultures are collected at calving time and prior to dry off to ensure the most effective dry cow therapy and mastitis treatments are administered.

A ‘traffic light’ system of different coloured paint dots has also been implemented to monitor the herd, with a yellow dot placed in the middle of the udder of cows that are suspected to be at risk of mastitis.

Cow behaviour is actively monitored by all team members, with Mark believing that knowing the herd is crucial to noticing behavioural changes in particular cows.

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Believing prevention is better than cure, the farm has switched to a premixed iodine teat spray. Not only has this saved time it also achieves a more accurate consistency.

Glycerine is added to the iodine after calving in the wetter months and this has improved teat condition and cow comfort dramatically.

“All staff in the dairy wear milking gloves, and if mastitis is detected at cups-on or cups-off, the milking glove that came into contact with mastitis bacteria is thrown in the bin and a new glove put on,” Mark said.

“Mastitis cows are always milked last to prevent cross contamination.”

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DAIRY NEWS AUSTRALIA AUGUST 2019

20 // MANAGEMENT

Rodney, Justin and Nicole May.

Mays top dairy farmers in all seasons IF YOU are going to be a dairy farmer you

might as well do it near Cowaramup in Western Australia.

The town is home to 42 Friesian sculptures and dairy farmer of 55 years Rodney May, his wife Nicole and their four children.

The May family sit amongst the top 100 farmers for milk quality and the top five in Western Australia.

The family milks 230 cows on 235 ha along with a 202 ha lease.

The Mays attribute their secret to success to keeping a close eye on cow health and wellbeing, maintaining thorough hygiene practices, and having a son, Justin, who was passionate about the industry taking the lead in the dairy.

“To be in the top one hundred farmers in the country for milk quality means a lot to us — it’s fantastic,” Nicole said.

“A healthy cow in most cases will produce more milk and more profit.”

Justin is a WA College of Agriculture Harvey graduate and has carried out most of the milking since he left Year 12 in 2016.

To prevent mastitis, Justin monitors the cows at each milking and removes freshly calved cows from the calving paddock to milk soon after calving.

All freshly calved cows have their teats sprayed with iodine before and after milking for up to four days.

“To keep the teats clean we also keep cow tails trimmed and we upgrade laneways when necessary by compacting and keeping them free of manure and dirt,” Justin said.

“We advise all staff members, especially new and inexperienced people, to maintain good standards of hygiene.”

These standards include teat spraying and wearing new milking gloves at each milking, as well as keeping rubber ware and liners in good condition and changing them as required.

The dairy is positioned in the middle of 65 separate paddocks so the herd does not walk more than one hour to come home for milking.

The rapid exit dairy has 15 cows each side and doubled up, featuring automatic cup removers and an automatic drafting gate controlled by ALPRO. The family also own some well-trained working dogs who are responsible for bringing the herd to the dairy while the family prepares for milking, pet ostrich Reena also does her bit watching over the calves in the home paddocks.

“Three quarters of our cows calve between the end of January and mid-May and the rest calve before October,” Nicole said.

Despite the industry accolades, the family has no plans for expansion just yet — preferring instead to continue doing what it does best in the cow capital of Australia.

DAIRY NEWS AUSTRALIA AUGUST 2019

MANAGEMENT // 21

Family wins 13th milk quality award A FOCUS on producing high quality milk has

enabled second-generation subtropical dairy farmers Dallas, Adrian, Glen and Melvyn Zischke to weather a tough, high input cost season.

The Darling Downs farmers were recently announced the number one farm for milk quality in Queensland, their thirteenth successive win.

The brothers operate a 120-cow, dryland farm near Toowoomba.

“We’ve been in dairy farming all our lives, and we’re very proud to be Milk Quality Award winners for the 13th year in a row,” Dallas said.

“We always try to maintain high milk quality, for the sake of getting all our bonuses and keeping up our profitability.”

As a supplier of Norco, the Zischkes’ milk quality sees them earn a premium of up to 11¢ per litre on top of their base milk price which has a huge impact on the bottom line.

Their secret comes down to sound management and effective herd monitoring.

“It’s all about management,” Dallas said.

“We do monthly herd recording, which lets us keep track of cows with high bulk milk cell counts and make informed decisions.”

As well as actively tracking the BMCC of each cow, the Zischkes stay across best practice for mastitis prevention, including by using Dairy Australia’s Countdown resources.

“We teat spray every time, and we always have. At drying off, we treat every cow with a dry cow treatment to prevent mastitis, every day, you have to stick to it — it’s about consistency,” Dallas said.

The Zischkes have always relied heavily on home-grown fodder to feed their herd, but tough weather conditions last season presented a major challenge.

“We’re usually very self-sufficient and grow our own hay, but the weather hasn’t been in our favour,” Dallas said.

“We bought in hay last year at over $500 per tonne, which was very expensive.”

Brothers Dallas, Adrian, Glen and Melvyn Zischke from the Darling Downs in Queensland just took home their 13th milk quality award in a row.

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PRICES IMPROVING Rabobank’s monthly agribusiness report has found global dairy commodity prices found some support in July.

Rabobank senior analyst Michael Harvey said growth in global milk production remains quite modest.

Meanwhile, import purchasing remains robust across a number of key markets.

Risks to the global market remain evenly balanced.

Global dairy demand will be vulnerable to weaker macroeconomic settings, and buy-side stocks are building. However, milk supply growth looks set to remain in check as farm margins slowly recover.

Australian milk production declines accelerated in May. National milk production fell 13.6 per cent in May. There were falls in production across all reporting regions.

Mr Harvey said from retail to farm gate, milk prices have continued to improve.

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DAIRY NEWS AUSTRALIA AUGUST 2019

22 // NEWS

Trespassers must face full weight of law VICTORIAN LAWS should be bolstered to

protect farmers’ human rights from animal activists and give police the authority to dole out on the spot fines of up to $12 000 for farm trespass offences, the Australian Dairy Farmers has told an inquiry.

Peak farmer group Australian Dairy Farmers will push the Victorian Government to crack down on people who trespass on farmland, arguing that animal activists are causing “undue hardship to farmers” by falsely presenting the

dairy industry as condoning and hiding animal abuse and undertaking criminal activities against dairy farmers.

In a submission to the Victorian Government’s inquiry into the impact of animal rights activism on Victorian agriculture, ADF is urging the government to: ■■ Expand the scope of the Charter of Human Rights and Responsibilities Act 2006 (Vic) to deal with animal activists, extremists or any other private citizen impinging on

■■

■■

■■

another person’s human right; Increase trespass fines to $12 000, in line with existing laws in Western Australia, and empower police to issue fines on the spot; Provide more transparency around convictions and sentencing for farm trespass; and Change the Livestock Disease Control Act 1994 (Vic) that enables farm trespassers to be prosecuted for causing an animal disease to claw back costs from offenders.

Currently, the Summary Offences Act 1966 (Vic) offers a fine of up to $4000 or six months’ jail time for trespass offences.

ADF president Terry Richardson said the current penalties were not an effective deterrent and offenders must be held accountable for their actions.

“Animal activists trespassing onto farms or committing other crimes should be held to account by the criminal justice system,” Mr Richardson said.

“No-one is above the law and farmers have a right to farm without the threat of invasion, sabotage or biosecurity outbreak posed by animal activists.

“Farmers are suffering from increased stress and fear of being attacked by activists sometime in the future, just for doing their jobs.”

Previously, the ADF, through national farmer group the National Farmers’ Federation, successfully pushed the Federal Government to broaden the Privacy Act 1988 (Cth) to cover offences committed by extreme group Aussie Farms, which has exposed the activist organisation to fines of up to $2.1 million.

The ADF has also supported new laws put before federal parliament in July to introduce new offences for the incitement of trespass, property damage, or theft on agricultural land, with penalties of up to five years’ jail time.

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Bega Cheese has cut its full-year earnings guidance after the drought and exit of many farmers from the dairy market led to competitive pressure it says “has never been stronger”.

The dairy processor on August2 said it increased its milk intake for the 12 months to June 30 by 41 per cent to a record 1.06 billion litres, in a market that shrank by 733 million litres.

Bega said it had incurred extra costs in the last financial year, with more to come in FY20, as it pursues greater production and logistics efficiency.

Bega now expects normalised earnings before interest, tax, amortisation and depreciation of between $113 million and $117 million, compared with the $123 million to $130 million forecast at its half-year results announcement.

“There has … been greater competitive pressure from processors and this pressure has never been stronger than in the last quarter of FY2019 and in setting the FY2020 milk price,” Bega Cheese said in a statement.

Bega has also been seeking to diversify beyond dairy, most notably through 2017’s purchase of a suite of products that included Vegemite.

Bega shares were valued at $4.43 before the start of trade on August 2, down 46 per cent since October 2017.

DAIRY NEWS AUSTRALIA AUGUST 2019

MARKETS // 23

Value change in the Australian milk market THE START of 2019–20 has seen record high

milk price announcement as processers compete for a smaller national milk pool. Cost of production is elevated, due to high cost of feed, electricity and purchased irrigated water, which is impacting farmer margins.

While global commodity markets remain well balanced, a majority of milk produced in Australia is sold on the domestic market. Thus, value creation in Australia is the most direct way to drive returns. This is especially true in domestic focused dairy regions, where global influences have a longer lead time.

Of all milk produced in Australia roughly 65 per cent is sold on the domestic market as liquid milk or manufactured dairy products. This varies significantly between states, from 100 per cent in Queensland to less than 30 per cent in Tasmania.

Liquid milk is the key dairy product sold in the domestic market (largely for practical reasons) and one of the most heavily featured in media over the past year. Following the implementation of the $1/litre price policy in early 2011, the share of private label milk sold grew to reach a peak in early 2016.

Consumers respond to media campaigns Over the past eight years, consumers have quickly changed their purchasing behaviour follow various media campaigns.

The ‘permeate’ controversy, generated one example of a rapid consumer response. Over a

few weeks, sales of private label milk plummeted and forced retailers to follow the lead of branded product lines in eliminating permeate, in order to attain customers.

The most effective media campaign against sales of private label milk sales occurred in 2016, when prime-time television panel news program The Project released a segment called ‘Milked Dry’.

They urged consumers to purchase company branded products to support dairy farmers. In addition to a sharp immediate response (an approximate 10 per cent change in market share virtually overnight), full year sales data showed private label share of the total fresh milk market drop more than 7 per cent.

This demonstrated consumers’ willingness to pay more for a product if they believed it benefitted the farmer.

Interestingly in late 2018 when retailers introduced a ‘drought levy’ on private label milk, consumers chose to purchase more private label milk as it was advertised as an effective way to support dairy farmers.

Growth in domestic market The end of the $1/litre milk price point has generated additional value growth in the domestic market since the start of 2019. Evidence from Dairy Australia’s Domestic Sales data suggests that an additional $25 million has been added to the dairy supply chain since the $1/litre price

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point was removed, during the first quarter of 2019.

While the increase in the price of private label milk has captured attention, unit value growth for other smaller dairy product segment continue to deliver additional money to the dairy supply chain.

This has been particularly true for sales of flavoured milk and deli-style cheese.

Flavoured milk is a significant value creator for dairy companies, due to its premium retail price and growing demand across the country.

It is likely to remain an important product in the future, due to its ability to generate value growth in the domestic market.

Deli cheese also continues to grow in popularity with Australian consumers and deli cheese sales made up 17 per cent of cheese sold. This

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marked an increase of almost 6 per cent compared to 2009 as it is becoming increasingly popular to consume a wide range of cheeses.

Deli cheese is retailed at a significantly higher price compared to chilled cheese and continued to be the main driver of value growth.

Rain will be of paramount importance to improve conditions this season and relieve costpressures on farm.

While domestic value growth won’t change farmers’ cost of production, it can provide some grounds for optimism about the opportunities that do exist, even in a challenging market.

DAIRY NEWS AUSTRALIA AUGUST 2019

24 // NEWS PROGRAM GAINS MOMENTUM More dairy farmers are turning to beef genetics as they look for diversified income streams, with ABS’s InFocus beef on dairy program booming.

ABS beef key account manager Fletch Kelly told a farmer workshop at Noorat that the beef-on-dairy program was quickly gaining traction in Australia as a replacement for conventional semen.

“Farmers want milk from all cows but don’t necessarily want heifers from all cows; that’s where beef genetics come in,” Mr Kelly said.

“It’s a growing trend, effectively giving farmers a 13th or 14th milk cheque through a diversified income stream.”

The InFocus program encompasses sexed semen and beef-on-dairy to accelerate genetic gain.

“More farmers are using sexed semen on younger animals, including heifers, and choosing to use beef semen on a lot of their cows,” Mr Kelly said.

“You still want to get milk from all animals, but you don’t necessarily want to breed replacement heifers from them.

“Instead of doing that, you use Sexcel sexed genetics on heifers and animals of higher genetic merit, then high fertility InFocus Angus semen over the rest to create an F1 animal, a cross between Holstein/Jersey and Angus.”

The advantages are that you harness the genetics to generate replacement stock from animals with higher genetic merit.

The concept has been going in the United Kingdom for many decades and it has been booming in the United States, particularly with Jersey herds, and now in Australia over the past year.

“Some dairy producers don’t even use conventional semen any more, they just use sexed semen on their heifers and higher producing cows and for the rest they use beef semen,” Mr Kelly said.

ABS’ InFocus program also provides an Angus F1 supply chain opportunity in Australia. Animals are taken from farm at 110 kg and enter the supply chain through accredited InFocus rearers, then move to feed lots and are sold as beef cows into the meat value chain.

Stephen Gleeson assesses his herd for workability and has a practical view about how that works.

Giving back to the industry fuels breeding passion STEPHEN GLEESON knows all too well the value of a good temperament when it comes to breeding dairy cows.

“Good workabilities are pretty close to production when I select bulls,” he said.

“It is no good having a top producing cow, if she upsets the whole run and kicks the machines off five times through milking; I can do without that.”

Stephen, his sister Margaret and mum Freda, run Montana Park Jerseys, a 120-cow herd at Purnim north of Warrnambool in western Victoria.

The family have been recording the

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workability traits of heifers for 28 years, something Stephen says is vital to helping the greater industry.

“It is important to be fair and honest in all the information that gets collected and goes into the computer,” he said.

“If you were doing workabilties on a heifer and give her a good score for ease of milking and she was actually slow, you are not being fair to the breeders or the bull company or anyone else who is going to use that bull.

“An assessment that is not accurate, is not fair. To the best of my ability I always try to be fair and honest.”

Workabilities are the traits that refer to how easy it is to have a cow in the herd. They include milking speed, temperament and likeability.

Each has its own Australian Breeding Value.

Milking Speed and Temperament are included in DataGene’s three breeding indices: Balanced Performance Index (BPI), Health Weighted Index (HWI) and Type Weighted Index (TWI).

To maintain the dataset of workabilities the industry relies on dairy farmers like the Gleesons to score these traits for each heifer during her first lactation.

“If they do nothing wrong, we usually say they are pretty well liked,” Stephen said.

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MANAGEMENT // 25 “If they are really quiet, we give them a good score for likeability.”

The Gleesons generally score about 25 to 30 heifers in December each year. With Stephen and Margaret doing all the milking, they find it relatively easy to fill-in the paperwork that is required.

“What we usually do, when the sheet comes with heifers that have got to be done, we run a copy off and take it to the dairy,” Stephen said.

“We then check the number and put a score down as we are milking. It is easier that way, rather than doing it while sitting at the table inside and have to think ‘cow 500 is she quiet or placid?’

“I don’t mind doing that, I think it helps. It costs a lot of money to prove a bull and they deserve to get the most accurate report they can.

“It is very important because, say you are a farmer and you buy 50 doses of bull at $25 (a dose), you are hoping to get a good return on that. If an artificial breeding company says this bull does XYZ, based on a proof, but then the bull doesn’t come-up, it is not very good for the farmer and not very good for the industry.”

DataGene extension officer Peter Williams said the industry wouldn’t have quality and consistent database without farmers like the Gleesons contributing accurate information year-after-year.

“There’s a number of ways to score workabilities and the way Stephen records it in the dairy ensures the information is accurate and timely,” Peter said. “That’s the best type of information.”

Farmers can also report workability scores on their heifers through the HerdData app,

Easy Dairy, Mistro Farm or direct to their herd test centre.

The Gleesons use mostly Australian bulls and the swag of sires includes those which have been genomically tested.

Stephen uses the Australian Breeding Value system to help select bulls, focusing on production and type and generally looks to corrective mate individual cows.

“I probably look to the higher bulls, for example, I might pick out some bulls I like and go and look at their figures.

“Say, the first two bulls are all right, they seem to be pretty good with their numbers, but the third bull might not be so much. So, I might only use a small amount or not use him at all.

“ABVs help with selection. It is like herd testing cows, in a way, you always want to breed from best cows, with bulls always want to breed from best bulls that way you are enhancing your herd all the time.”

The Gleesons only use artificial insemination and have herd tested bimonthly for the past 28 years.

“The first thing we look for is the Production Index, to see how they are performing,” Stephen said.

“Particularly for the heifers and if a particular bull doesn’t have any daughters and this is his first crop of daughters, we like to see how they are going.

“We use the Production Index for culling too. If cows are continually at the bottom end of the list. First of all, we would probably look at why; if it’s just low-producing cows, we would look at culling at the end of the season. Getting

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Workabilities are the traits that refer to how easy it is to have a cow in the herd.

rid of the bottom ones all the time helps lift the whole herd.”

The Gleesons’ breeding approach has seen the herd achieve an average Balanced Performance Index of 87, ranking 15 out of 283 Jerseys milk recording herds for BPI. Stephen has worked as an artificial insemination technician and joins all the cows himself.

“We pregnancy test all the herd and start seven or eight weeks after joining,” Stephen said.

“Last year we preg tested a bit over 110 to 112 cows and there were only three not-in-calf.

“Joining starts in September, then I AI until

about Christmas time. Anything after that not in calf, that’s it.

“My sister and I, we visually assess the cows.

Even down the paddock I have a notebook and we check the cows as they are coming into the yard, compare the notes and then get the cows for tail painting that way.”

The Gleesons haven’t used sexed semen; Stephen said their priority has been to get cows in calf as he has a market for bulls. He grows them out and sells them to local farmers as bulls to run with heifers or as mop-ups.

DAIRY NEWS AUSTRALIA AUGUST 2019

26 // ANIMAL HEALTH

Winter warmers WITH MUCH of Australia blanketed by a cold

and wet winter, our attention once again turns to calves and the challenges associated with rearing during these chilly months. Some farms will observe an increase in morbidity (sick calves) and mortality (dead calves) during inclement weather. A lot of this is due to pathogen survival under these favourable conditions but other factors such as housing and nutrition also play an important role in outcome for the calf. This article discusses the nutritional requirements of the young calf and how these are affected by environmental temperature.

Maintenance vs growth?

The protein and energy requirements of a calf are divided into two categories based on their use for maintenance and growth.

Maintenance describes the amount of energy and protein needed to support normal bodily functions, including maintaining body temperature. Maintenance requirements are related to body size with bigger animals having higher maintenance needs.

Growth requirements account for the

nutrients required to build body tissues. The nutrients the calf consumes are used to support maintenance first with any nutrients fed in excess of maintenance needs being used for growth. Nutrients needed to support growth logically increase as growth rate increases.

Calf growth is affected by many factors but daily intake of protein and energy are the most important.

Frequently, energy intake is the first limiting factor to growth. If a calf consumes more energy than she needs for maintenance, the “extra” energy can be used to convert dietary protein into body tissue. However, if a calf consumes less energy than required for maintenance, there is no energy available for growth. Diets must provide enough energy to support growth and enough protein to be used for that growth.

Feeding too little of either nutrient, or feeding the wrong ratio of energy to protein, will limit growth. Nutrients are provided by liquid feeds (milk and milk replacer) and calf starter, with intake and composition of both these feeds affecting growth potential.

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DAIRY NEWS AUSTRALIA AUGUST 2019

ANIMAL HEALTH // 27

calf grows due to the production of heat from fermentation in the rumen and increase in body mass. For example, the thermoneutral zone for a one month old dairy calf is 0°C to 25°C. Within this zone the amount of body heat produced by the calf equals or exceeds the heat lost from the body through various means. Breed, hair coat, wind, precipitation, mud and solar radiation will also affect the thermoneutral zone.

Environmental conditions also affect maintenance energy requirements. Calves housed in drafty, wet, cold conditions have higher maintenance energy requirements than those housed in draft-free, dry environments. Newborn calves are particularly vulnerable to these changes in temperature. A calf is born with a supply of brown fatty tissue that releases energy as heat, but in extreme cold conditions this energy reserve may be used up within hours of birth. When the brown fat energy reserve runs out, a calf uses the energy designed to maintain its body temperature and may fail to gain weight.

If the environmental temperature falls below the thermoneutral zone, the calf uses more energy from the diet to maintain its core body temperature. The table (right) shows that when the environmental temperature drops from 20°C to 5°C, calves less than 3 weeks of age require 40 per cent more energy from the diet just to

maintain core body temperature. This does not allow any partitioning of nutrients for growth.

Required increase in energy needs as environmental temperature decreases

Required increase in energy needs as environmental temperature decreases

Environmental temperature It is recommended that young calves should be fed extra energy during cold weather to satisfy the increase in maintenance energy requirements and improve the chances of increased growth during this critical period. This can be accomplished by increasing the volume of liquid diet being fed or by adding additional milk solids to the diet (fortifying the milk).

Australian research has shown important increases in growth rates during the pre-weaning period in calves fed fortified milk compared to calves fed on conventional diets. Research has also shown that calves fed on a higher plane of nutrition are less likely to succumb to sickness than those fed inadequately in relation to their environment. This supports the need to provide additional nutrition to young calves during winter when the risk of disease and exposure to the elements is greatest.

Always speak with your veterinarian prior to embarking on a change in calf nutrition as inconsistent feeding can result in gastrointestinal upset and diarrhoea.

Environmental temperature °C

Colostrum key to calf development Agricultural Innovation in Wagga Wagga has identified opportunities to improve the health and productivity of Australian dairy calves.

The research findings are based on a survey of more than 100 dairy farmers and the analysis of colostrum, blood and faecal samples collected from 23 farms.

Research leader Angel Abuelo — now based at Michigan State University — said colostrum management was a key factor that could be improved in Australian dairy production systems.

“Colostrum is the milky fluid produced by cows soon after giving birth and it plays a key role in developing a newborn calf ’s immune system,” Dr Abuelo said.

“Less than 20 per cent of colostrum samples collected in this study met the standards of immunoglobulin content and microbiological quality.

“This suggests that a large number of calves are at risk of receiving poor-quality colostrum, making them more susceptible to illness.”

The research also identified a need for better calf feeding hygiene to prevent the spread of disease and more judicious use of anti-microbials to treat neonatal calf diarrhoea.

Birth to 3 weeks

>3 weeks

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Dr Abuelo said there was also scope for veterinarians to become more involved in calf health programs in Australian dairy farms.

“More research is also needed to investigate the factors that influence a farmer’s decision to adopt these practices,” Dr Abuelo said.

The research, An investigation of dairy calf management practices, colostrum quality, failure of transfer of passive immunity, and occurrence of enteropathogens among Australian dairy farms by Dr Abuelo, NSW DPI dairy development officer Peter Havrlant, Graham Centre acting director Associate Professor Marta Hernandez-Jover and Charles Sturt University honours student Natalie Wood is published in the Journal of Dairy Science.

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DAIRY NEWS AUSTRALIA AUGUST 2019

28 // HAY MAKING

HAY AND SILAGE FEATURE GOOD RAINS EASE HAY SHORTAGE Demand for hay has eased throughout much of the country, according to Dairy Australia.

In regions such as the Goulburn Valley, southwest Victoria, southeast South Australia, central South Australia and southwest Western Australia, good grass growth and consistent rainfall is helping ease local demand.

It is postulated that the ease in demand in regions such as the Darling Downs and central west NSW is attributed to many farmers in the region waiting until next season to buy more hay.

Hay supplies throughout Australia remain tight with many farmers finding it difficult to source hay and straw.

Despite more hay coming onto the market from regions such as the Goulburn Valley, southwest Victoria, southeast South Australia and central South Australia much of the hay moving and in sheds is already committed.

Cereal hay prices have firmed this week in Bega. Lucerne prices have firmed this week in Gippsland, southwest Victoria and southeast South Australia. No other price changes have been noted this week.

There is a lot of hay being transported around the country of varying quality. We caution buyers and recommend feed-testing and viewing fodder before purchasing to be sure of quality of the feed.

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DAIRY NEWS AUSTRALIA AUGUST 2019

HAY MAKING // 29

Agronomist urges early nitrogen programs DAIRY FARMERS are encouraged to start

nitrogen programs early this season to maximise spring pasture and fodder growth.

Incitec Pivot Fertilisers technical agronomist Lee Menhenett said where there was adequate soil moisture, nitrogen could be used from late winter to stimulate growth.

“Opportunities to capitalise on spring fodder conservation are always relatively short-lived, even in good seasons, and replenishing on-farm fodder reserves is especially important for many dairy farmers this year,” Mr Menhenett said.

“Sometimes it’s a good idea to take advantage of soil moisture and good growing conditions when they are available, because we don’t know what will be around the corner.”

Mr Menhenett said responses to nitrogen in spring were typically 15 to 30 kg of dry matter/kg of nitrogen applied and the cost of growing this additional feed was easy to calculate.

“For example, by applying 40 kg/ha of nitrogen, an additional 600 kg of dry matter/ha can be grown in spring assuming a nitrogen response rate of 15 kg of dry matter per kg of nitrogen. If we value nitrogen at $1.30 kg, the additional dry matter would cost $52/ha or $87/tonne of dry

matter standing,” he said.

Mr Menhenett suggested that dairy farmers fertilise the grazing area as well as the fodder conservation area.

“Growing more feed on the grazing area allows more space to be set aside for fodder conservation,” he said.

To get the best results from nitrogen, he said pastures and crops must have adequate soil moisture.

“Stored soil moisture needs to be in excess of 50 mm for significant dry matter responses to nitrogen and a minimum of 5 to 10 mm of rainfall or irrigation is also required after application.”

Mr Menhenett suggested using robust nitrogen rates of 40 to 60 kg/ha of nitrogen per application in improved grass-based pastures and 50 to 60 kg/ha of nitrogen in hay and silage paddocks.

On the second cut in hay and silage paddocks, when soil mineral nitrogen rates can be low, he said rates of up to 80 kg/ha of nitrogen could be considered.

“Good base soil fertility with phosphorus, potassium and sulphur is also required for good

Nitrogen can be used to stimulate growth from late winter according to Pivot technical agronomist Lee Menhenett.

nitrogen responses. These can be topped up or maintained by using BoostaTM fertilisers or blends.”

Turning to timing, nitrogen fertilisers should be applied immediately post grazing because nitrogen responses decreased by one per cent for every day application is delayed.

“Allow at least four weeks between nitrogen application and mowing,” he said.

“It always helps to be proactive and prepared when it comes to hay and silage. Be ready to reduce the grazing area early and allocate more paddocks for conservation, have the stack site or shed prepared and be willing to cut earlier rather than later if rain is coming or the contractor is ahead of schedule.

“Don’t forget that quality is king — don’t be tempted to leave it too long chasing quantity.”

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DAIRY NEWS AUSTRALIA AUGUST 2019

30 // HAY MAKING

Innovative baler set to forge new ground HAY SEASON is a busy time for farmers and contractors.

There is no time for unreliable equipment or misshapen bales.

And that’s where farm machinery company Kuhn comes in.

Its quest to produce a top quality, densely packed and perfectly shaped bale, across all crop conditions has led to the development of the next generation of balers and the new KUHN LSB 1290 iD large square baler; a baler with innovative features designed to boost efficiency, improve overall bale quality and ultimately increase profitability.

Marketing manager and baler product specialist Michael Murer said the KUHN LSB 1290 created perfect high-density bales that needed less handling, used less twine and ultimately reduced transport costs and storage space.

“First and foremost is the LSB 1290 iD double plunger design, developed and patented

by KUHN, which produces bales 25 per cent denser than those from conventional machines,” Michael said.

“The special TWINPACT plunger is a patented system and a revolutionary development that creates 60 tons of even pressure across the entire bale, creating 25 per cent more density than competitor balers.”

Achieving extra density requires twice the force exerted by a conventional plunger and to counter this, the TWINPACT plunger is divided into two parts compressing the bale in two steps, without creating extreme forces on the machine.

Avoiding massive peak loads means there is no greater power requirement.

“Put simply, we can achieve high density without more horsepower to reduce running costs and deliver environmental savings too,” Michael said.

He said the machine’s main intake function was another key feature that set the machine apart from its competitors.

“Our integral rotor is a simple, maintenancefree intake system that ensures even feeding, regardless of crop conditions.

“The short distance between rotor and pickup yields an outstanding crop flow and it also makes possible higher forward speeds for outstanding productivity.”

The cutting version, OmniCut, has 23 knives with individual hydraulic protection to ensure perfect cutting quality regardless of working speed and crop. Operators can easily select the various knife group configurations using just two levers.

Rob Addinsal from Victoria runs an Angus beef farm in addition to his hay contracting

The new KUHN LSB 1290 iD large square baler is a baler with innovative features designed to boost efficiency, improve overall bale quality and ultimately increase profitability.

business and has been using the LSB 1290 iD for the past 12 months.

“It’s easy to operate and cheap to run. It’s increased our profitability because it’s just more efficient. It puts more hay in a bale, there’s less cartage and less time when the bale is out on the field,” Rob said.

Rob said the backup service offered by Kuhn

is why he is a returning customer.

“They’ve been out in the paddock with me at 5 am. It’s the level of service that keeps me coming back.”

Kuhn prides in innovation believes the KUHN LSB 1290 will forge new ground in Australia.

For more information visit www.kuhn.com.au

DAIRY NEWS AUSTRALIA AUGUST 2019

HAY MAKING // 31

Vic dominates fodder comp VICTORIAN HAYMAKERS have scooped

the pool in the 2018–19 Feed Central national hay quality awards, winning four of the five major titles.

Frank Fanning from Kyabram had the best lucerne hay feed test analysis and the best lucerne visual appearance score in Victoria and across Australia.

Richard Wilken from Warracknabeal also scored the national and state double for the best vetch hay feed test analysis and visual appearance score.

Tom White from Hopetoun had the best cereal hay visual appearance score in the state and country.

NSW farmer Richard Baker won the national award for the Best Cereal Hay Feed Test Analysis.

Other Victorian winners were Col Radcliffe, from Kerang, with the best canola hay visual appearance and Simon Goode, from Sutherland, with the best cereal feed test in the state.

The 2018–19 awards were launched in Queensland by Australian Fodder Industry

Association cheif executive officer John McKew. Feed Central managing director Tim Ford said the annual awards had been heavily impacted by drought, but some producers had defied the conditions to produce good quality hay.

“We were very impressed by the efforts of some growers to excel despite the drought,” Mr Ford said.

“With record high prices and a very aggressive selling season, they could have sold their product at any quality, but they went to great effort to make good quality hay.”

He added that the drought had led to some very good product.

“Dry conditions always make good quality hay, but we haven’t had the quantity this year.”

Mr Ford said the success of Victorian producers reflected the more extreme drought conditions in northern Australia.

“The success of Victorian producers is testimony to where most hay was produced.”

Field inspector and Feed Central area manager, Steve Page, said Mr Fanning’s double award

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was particularly noteworthy as he had recovered from a shed fire which destroyed good quality hay.

Alex Peacock does contract cutting and baling for Mr Fanning.

“The crops were very well grown, conditioned and cut,” Mr Page added.

He said that Richard Wilken was a massive hay and grain producer who consistently made high quality product, while Tom White had endured a difficult season because of the conditions but still produced good crops.

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The awards recognise and encourage growers to aim for high quality hay.

“They help to set a benchmark of quality that will improve the consistency of hay in Australia, which leads to better returns for suppliers and better outcomes for end users,” Mr Ford said.

Hay listed with Feed Central in preparation for sale is inspected on-farm by a certified Feed Central inspector and is eligible for entry in the competition.

More details can be found at www.feedcentral.com.au.

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DAIRY NEWS AUSTRALIA AUGUST 2019

32 // NEWS

Experts to help farmers activate soil biology A NEW project on six western Victorian dairy

farms will bring in leading soil specialists to help farmers improve their soil, plant and animal health.

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As part of the drive to advance Australian agriculture to a more sustainable form of farming, Kim Deans from Integrity Soils will lead a collaborative team to help farmers improve their

TOW AND Fert

by Tow and farm

soil health and farm productivity by activating soil biology.

The project will identify soil and animal health constraints associated with a lack of soil

health and develop strategies to improve soil health and ecosystem function.

The joint Heytesbury District Landcare Network and Central Otways Landcare Network project is funded by the Department of Agriculture and Water Resources Smart Farms Small Grants and will engage more than 100 farmers in south-west Victoria at field days, workshops and on-ground activities.

The work will build on the success of HDLN’s Keeping Carbon on the Farm project and COLN’s Gellibrand River Sustainable Dairies Program to improve run-off efficiencies and develop an ecological checklist for farmers.

HDLN Landcare co-ordinator Geoff Rollinson said the project would support farmers to use regenerative farming techniques such as applying biological stimulants, adaptive grazing management and revegetating paddocks to improve soil health. Tests will quantify soil and pasture improvements over the next two years.

“There is a consumer-driven desire for food to be produced with less or no chemicals, herbicides, pesticides and synthetic fertilisers. What happens at the point of production flows through the whole food supply chain,” Mr Rollinson said.

“Improving soil health will improve root depth of pastures, nutrient uptake by plants and pasture growth. This will help farmers to cut back on costly inputs which will be good for the soil and for their budget.”

COLN Landcare co-ordinator Andy Gray said farmers would work with the consultant to test some of the actions they could take to improve their soil and ecological systems.

Mr Gray said dairy farmers test for cell count, calcium and fat but should also value the mineral content of soil.

“If we valued what is coming through the soil to the cow and the milk and make available as many nutrients as possible, we would see better land values,” he said.

“Other grazing enterprises have come up with regenerative farming programs to improve the mineral density of their soil by using natural biological inputs as opposed to synthetic fertilisers.

“We aim to get dairy farmers understanding the role of soil biology, so they no longer need to use synthetic fertilisers.”

Kim Deans, supported by Integrity Soils team leader Nicole Masters, will visit twice during the project to work with the farmers and run workshops.

The project is in conjunction with Corangamite CMA and Agriculture Victoria.

For an expression of interest form contact Geoff Rollinson on 0427 983 755, email geoff@ heytesburylandcare.org.au or Andy Gray on 0414 560 296, email andygray@coln.org.au To register for email updates about the program and to get involved in field days email geoff@heytesburylandcare.org.au with the subject title — Add me to Activating Soil Biology mailing list.

DAIRY NEWS AUSTRALIA AUGUST 2019

MACHINERY // 33

Airdrill answer to seeder search SMALL AND middle-sized farm operators

looking for a seeder need look no further than John Shearer and its new electric drive mounted airdrill.

Available in sowing widths of 4.5 m and 6m, with sowing spacing options of 125 mm (5”) or 150 mm (6”), the electronic drive system replaces traditional chains and sprockets notably reducing maintenance.

Calibrating seed and fertiliser rates are made much easier than ever before, with control via a tablet from the comfort of the tractor seat or next to the airdrill.

Both models feature a transport width of less than 3 m allowing producers to sow into paddocks at wider sowing widths than conventional seed drills, while retaining a narrow width for transportation and generous under frame clearance.

The airdrill has a two-compartment hopper with a total capacity of 2400 litres and the fiverow frame has been optimised for maximum trash flow and features long lead between rows.

High-flotation tyres are fitted as standard, the centre section features two 400/60–15.5 tyres, while the wider 6 m model benefits from the addition of a 12.5/80–15.3 third tyre for extra flotation, both models have 215/85r16 tyres fitted

to the wings.

During the design phase particular attention was given to a number of aspects including ease of filling the hopper and strength of the frame and axles, along with ease of calibration and cleaning.

The distribution module consists of two 266 mm fluted metering rollers which are easily accessible via inspection doors.

Shut off gates stop the flow of grain and fertiliser and allow the rollers to be inspected or cleaned without emptying the hopper. In addition, no roller changes are required when changing from pasture seed to cereal.

The complete distribution module is easily removed for servicing.

The fan is driven by a hydraulic motor with an oil cooler/heat exchanger a standard feature on all models.

For rising and lowering, the airdrill is fitted with a hydraulic cylinder phased to maintain level sowing across the width of the machine and two 4´´ x 16´´ cylinders are used when folding for transport.

The new John Shearer mounted airdrill can be fitted with various optional ground tools including double disc openers, JSL ‘630’ spring release tines assemblies or coil tines.

Coil tine models are equipped as standard with Baker T blades and the ‘630’ tine units with super seeder points.

A dual seeding kit is available in lieu of the standard single boot and a front coulter bar kit is available for all models.

The John Shearer Airdrill is perfect for farm operators and contractors looking to tackle those small to mid-sized jobs.

Finding options REGULAR READERS will know well my per-

sonal position on using contractors to get things done. To be clear, they provide valuable services to a great many farmers, and an arguably more valuable supply of partially-depreciated farm machinery to many others. But DIY is more my thing.

One exception to the rule has been any sowing requirements. Unfortunately, seed drills are expensive, and equally unfortunately, my lukewarm attempts to win the lottery have thus far been unsuccessful. Anyone who has scoped out the seed drill market knows you’ve generally got three options.

Option 1: Spend somewhere between a new ute and a new tractor on a very nice, highly functional

brand-name manufacturer machine that will last you years and years. For 10 acres a year? Maybe not.

Option 2: Used Connor Shea. Legendary machines, heaps of them around, but there are just too many ‘parts needed’ Facebook posts these days for my comfort.

Option 3: ‘Budget’ imports. We all wear them, some people eat them, many people complain about them, but they are …affordable. Generally not affordable enough, however.

The equation changed for me when I saw an ad for the Network Seeder range. This turns out to be a Chinese manufactured machine with heavy design input from the importer.

We all know the business model, and some

Real News in Real Time Log on to keep up to date with industry and breaking news from around the country every day.

www.dairynewsaustralia.com.au

Airdrills fitted with spring release or coil tines can also be optionally specified with double walking press wheel assemblies and harrows.

For further information see a John Shearer dealer or visit johnshearer.com.au

companies do it a lot better than others. In this case, the machine is simple and highly modular.

Every model in the series has the same basic components. Each comes with a set of tynes that can be swapped for the disc undercarriage if preferred.

Oh, they’re between half and two thirds of the price of any comparable import I can find. And I spent years looking.

Naturally, I had one in the paddock within a month. It is beautifully simple to set up and use, as long as you take your time at the start.

The trade-offs are the bin size (tiny) and the level of travel in the points (at least for the discs).

It doesn’t take much for a row to be airborne over a rut. And they aren’t big machines — the widest is 16 row. But who cares? I can sow when I want.

GRUNT JOHN DROPPERT I can sow the smallest area I can turn the tractor in, if I want. I can sow any exotic crop I like without anyone else having the opportunity to judge me for it. If I want.

It’s not sold as a direct drill, but that is so far the only way I’ve used it — oversowing a paddock that insects had punched massive holes in. I’m sure I wouldn’t win any awards for seed placement, and in the no-till situation its closing capabilities left a little to be desired.

It dealt okay with mud build up, but I suspect a tilled, dry paddock would have been much more to its liking.

However, it dumped the right amount of seed on the right area, and most importantly, the stuff is growing! Much like my mortgage …

DAIRY NEWS AUSTRALIA AUGUST 2019

34 // MACHINERY DAIRY LABEL ACTION URGED Dairy farmers are urging the Federal Government to change the country’s food standards in a bid to ban plant-based products from using the term ‘milk’ on labels and in marketing.

Peak dairy farmer group Australian Dairy Farmers has written to Federal Agriculture Minister Bridget McKenzie and Ministerial Food Forum chair Richard Colbeck requesting a review.

ADF is calling for a holistic review of labelling and marketing on non-dairy alternatives, including possible changes to the Food Standards Code, and the development of additional regulations to prevent plant-based alternatives from evoking the qualities and values of dairy.

ADF president Terry Richardson said the “dishonest” labelling and marketing strategy gave the misleading impression that plant-based products had a nutritional equivalency with dairy milk.

A 2017 survey by Dairy Australia showed 54 per cent of respondents bought plantbased milk alternatives because they perceived them to be healthier than dairy milk.

Market research firm IBISWorld estimates Australia’s plant-based ‘milk’ product industry has grown at an annual rate of 4.1 per cent over the five years to 2018–19, to $165.8 million today.

“Australia needs to restore truth in product labelling so that consumers can make more accurate food and beverage choices,” Mr Richardson said.

“Over the past decade, a growing number of plant-based products have cropped up, using the name ‘milk’, co-opting the look and feel of dairy milk right down to the packaging, and trading on dairy’s reputation to gain a marketing advantage.

“We have seen a growing number of plant-based products on supermarket shelves over the last decade, gaining a marketing advantage by using the name ‘milk’ and coopting the look and feel of dairy, while claiming to have nutritional equivalency with dairy milk.”

A ban on plant-based products using the ‘milk’ label would bring Australia into line with other countries, after the European Court of Justice in 2017 mandated that dairy terms could not be used on plant-based products, even with clarifying terms.

“We are calling for changes to the food standards so that consumers trying to make a healthy choice at the supermarket have the benefit of transparent and accurate product labelling,” Mr Richardson said.

The call comes on the back of the recent ministerial forum inquiry into misleading descriptions on meat and dairy alternatives.

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(From left) Case IH Australia/New Zealand general manager Pete McCann, Bordertown branch manager David Rogerson, Forbes branch manager Monica Langfield, Birchip branch manager Josh Hamilton, O’Connors chief executive Gareth Webb, Shepparton branch manager Brendan O’Connor, Horsham branch manager Zach Holmes, West Wyalong branch manager Anthony Davies, Agriculture Australia/New Zealand – CNH Industrial managing director Brandon Stannett, and O’Connors Group operations manager Rowan Bennett.

Award hat-trick for O’Connors CASE IH dealer O’Connors has claimed a hat-

trick of wins after being named Case IH Dealer of the Year 2019 (three branches or more) at the annual awards ceremony on the Gold Coast last night.

The family-owned business was started in Birchip, Victoria, in 1964, and has since expanded to become the largest dealer in the Case IH network, with branches in Birchip, Warracknabeal, Horsham and Shepparton in Victoria; Corowa, Forbes, West Wyalong, Grenfell and Condobolin in NSW; and Bordertown in South Australia.

Employing 200 staff, O’Connors has won the same award three years in a row.

O’Connors chief executive Gareth Webb said it was an honour to receive the title and was a credit to everyone within the business.

“This is definitely something we didn’t see coming but we’re thrilled to take this award home again this year, and it’s a privilege to win this in the company of some terrific dealers,” Mr Webb said.

“This is also recognition of the passion, dedication and excellence of our team and the belief of our customers who have ensured our ongoing growth.

“This is the culimination of what has been a huge year for all of us at O’Connors and we’re excited for the future and what it holds.”

Case IH General Manager for Australia/New Zealand Pete McCann praised the efforts of O’Connors.

“What an amazing achievement by O’Connors, which in the past 12 months has gone from strength to strength with the expansion into the NSW central west, making it our biggest dealer in Australia,” Mr McCann said.

“This award proves though that the team hasn’t taken its eyes off the core values of the business: customer service, industry knowledge and after-sales support.”

Mr McCann said O’Connors continued to raise the bar for Case IH’s whole network and strived for improved service, efficiencies

and productivity.

“This award is well deserved and isn’t based on any one part of the business.

“It takes into account the results in every department and proves O’Connors are not only doing it right, they’re doing it well,” Mr McCann said.

Other top performers in the Dealer of the Year (three branches or more) included Farmers Centre 1978 in Western Australia (Albany, Katanning and Lake Grace), Kenway and Clark in NSW (Moree, Goondiwindi, Inverell and Wee Waa) and South Australian dealer Ramsey Bros (Cleve, Cummins, Kimba, Murray Bridge, Riverton and Wudinna).

The winner of the Dealer of the Year (two branches or less) was Larwoods Ag Services in Kadina, South Australia, with the business also taking home the award for Dealer of the Year — Service.

Special mentions in the Dealer of the Year (two branches or less) category went to TTMI (Trafalgar in Victoria and Longford, Tasmania), NSW-based Intersales (Leeton and Temora) and Farmers Centre in Western Australia (Esperance and Ravensthorpe).

The dealer of the year results rely on an objective ranking, based on factors including finance and business management, performance in sales and marketing, and parts and servicing, Advanced Farming Systems (AFS) Certification and total market share.

D ays Machinery Centre in Casino, NSW was named Dealer of the Year — Most Improved; Boekeman Machinery in Western Australia (Dalwallinu, Dowerin, Northam and Wongan Hills) was Dealer of the Year — Parts; Farmers Centre in WA was Dealer of the Year — Wholegoods; Agnorth in Ayr, Queensland, was Dealer of the Year — CNH Industrial Capital (two branches or less); and Ramsey Bros in South Australia was crowned Dealer of the Year — CNH Industrial Capital (three branches or more).

To make sure your cows aren’t covered in flies and lice this Spring, look for the oil-based Demize™️ Pour On which doesn’t bead, drip or run like water-based formulations can. Demize Pour-On contains 25g/L ZetaCypermethrin for the control of synthetic pyrethroid-susceptible house fly, buffalo fly, stable fly and cattle lice on beef and dairy cattle.

ALWAYS REFER TO REGISTERED PRODUCT LABEL FOR FULL INFORMATION Do not apply the product as a single spot or to areas of the skin that have pre-existing lesions. Do not retreat animals for three weeks after last treatment. As this product may cause skin irritation it is recommended that it be used with care on lactating dairy cows as animals may kick whist in the dairy for up to 72 hours after treatment. MEAT WHP: Do not use less than 14 days before slaughter for human consumption; MILK WHP: Zero (0) days; ESI: DO NOT USE less than 28 days before slaughter for export. Elanco, Demize™️ and the diagonal bar are trademarks owned or licensed by Elanco or affiliates. ©️2019 Elanco, or its affiliates. AC-E0057 PM-AU-19-00119