Dairy News Australia - July 2018 by Dairy News Australia

One in five farmers want out PAGE 6 DEMODAIRY SOLD NATION WINS TOP JOB

Five-year plan to restore farm. PAGE 27

DairyBio boss to head DA. PAGE 13

JULY, 2018 ISSUE 93 // www.dairynewsaustralia.com.au

MAKE IT HAPPEN Farmers back UDV plan . PAGES 8–9

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DAIRY NEWS AUSTRALIA JULY 2018

NEWS // 3

A group of northern Victorian dairy farmers are looking to pool their milk in an attempt to acheive a more sustainable milk price. From left: David Glass, Nanneella; Brock Clymo, Calivil; real estate agent, John Lillford, Kyabram; Dean Kendrick, Kyabram; and Steve Hawken, Bamawm.

Off the shelf. PG.18

Farmers seek strength in numbers SOPHIE BALDWIN

WA Dairy Innovation Day. PG.25

GRUNT: Rough diamond. PG.30

NEWS ��3–19 OPINION �� 20–21 MARKETS ��22–24 MANAGEMENT ��25–27 ANIMAL HEALTH �� 28–29 MACHINERY & PRODUCTS ��30–34

A GROUP of northern Victoria dairy farmers

are taking matters into their own hands and approaching processors with a collective pool of milk, in a bid to obtain a more sustainable milk price. To date the group, United We Stand (UWS), has more than 120 million litres of milk pledged from different-sized farms across the state and is fielding calls daily from other concerned farmers. One of the organisers, Steve Hawken from Bamawm, said irrespective of herd size, the only requirement was the milk must be premium quality. The group has also received calls from other milk pool collectives across the country. UWS has been working with the ACCC to formalise the group. It is also exploring potential opportunities, aside from supplying a processor. UWS held an information night attended by more than 50 farmers at Kyabram in northern Victoria late last month. Mr Hawken also said the group was looking at establishing bulkbuy options for inputs includ-

ing power, insurance, solar panels and even feed. similar thoughts — which is a reflection of where Mr Hawken said change in the industry was the industry is at.” long overdue. Strathmerton dairy farmer Julian Pinnuck “Processors are scrambling for supply and has been involved in the dairy industry for 35 this is probably one of the best opportunities years. we have had in a long time to implement some He milks 200–300 cows and decided to change and secure a sustainable future for our attend the meeting because his business is industry,” Mr Hawken said. going backwards. “The wheels are falling off the dairy indus“This is our third year as a non-profitable try and it is time to do something positive dairy farm and that’s just got to stop,” he said. about it.” “We won’t be able to continue if things stay Guest speaker John Bell reiterated the the way we are, we need a better price. I think group’s stance that industry change is long the concept UWS are putting forward might overdue. work and a change in the dairy industry is well “Nothing has changed in the industry for and truly long overdue.” the last 50 years. It is time for farmers to Peter Lawlor milks 500 cows at Yalca. unite, and at the end of the day if we all work His 28-year-old son has taken over the runtogether we can go from price takers to price ning of the family farm. makers and take control of the profits and “We have survived the millennium drought, push up the price of milk,” Mr Bell said. the global financial crisis and the Murray GoulHe said a milk shortfall in the industry of burn disaster, being price takers the whole way 1.3 million litres for processors Saputo and Australia's biggest vertical along. The tide needs to turn and we need to Fonterra was a significant opportunity. become price makers or none of us will be mixer dealer “If UWS can attract a significant percentage of milk, we will have a serious negotiating around in the future,” Mr Lawlor said. “Processors have been upgrading their point moving forward. “This has been a positive meeting and it is plants while paying us a pittance while the pleasing to hear there are similar groups with industry is on its knees,” Mr Lawlor said.

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4 // NEWS

It feels like Groundhog Day SOPHIE BALDWIN

NATHAN FERGUSON is concerned about

the future of his business and the industry as a whole. The young farmer will milk 250 to 300 cows this season at Teal Point, near Barham. He said the milk price and the continually rising cost of production was making it harder and harder to get by. “I would just like to be able to run my business and pay my creditors within their terms,” Mr Ferguson said. “The fixed costs to produce milk in northern Victoria are too high and we can’t be expected to continue to absorb these rising costs on a milk price that isn’t keeping up. “We have to have reasonable equipment because we are operating on limited labour and everything needs to be working in good order — labour is hard to find and it is cheaper to just do the bulk of the work ourselves. “You can do a certain amount of things on the cheap but farming that way will catch up with you in the end. “I wouldn’t think there would be too many

people in the industry able to grow their equity at the moment.” Mr Ferguson said volatility of water in northern Victoria was a huge threat to the industry with prices ranging from $80 to $200/Ml this year alone. “Milk companies are doing analysis on our water use because they are starting to realise how exposed they are — volatility in the northern Victorian water industry is not only seriously affecting the farmer, it’s starting to affect everyone. “People tell us to buy low reliability water shares and carryover water — but we never have any leftover cash to implement these type of risk management strategies in the first place. “We can barely handle our normal bills, let alone any additional costs.” This is the sixth season Mr Ferguson has been operating his own dairy business. “The first couple of years were good but the last four have been like groundhog day. It seems like we just finish paying off a particular bill — and bang, it’s back again.” He said a lack of money in the dairy industry put pressure on rural businesses. “Our creditors are stuck in this game along with us; this affects the whole community.”

Nathan Ferguson.

Burra Foods to pay for more fat BURRA SUPPLIERS have the opportunity

to be paid on a 1:1 fat to protein ratio, reflecting the strong market returns for fat. Burra suppliers had the option before the start of the season of selecting either a 1:2 fat to protein ratio or the 1:1 fat to protein ratio. Burra’s opening price for the current season was $5.60 — $5.90 kg of milk solids. This includes the ‘commitment bonus’ offered in July 2017. CEO Grant Crothers said Burra was not looking to grow significant volumes of milk this season but believes the new 1:1 payment ratio will attract interest from higher fat producing herds, which they would be “happy to sign up”. “We have invested heavily in capacity and capability to meet our increasing demand and

believe that higher fat producing herds will support our continued growth,” he said. “We have seen consistent strength in the demand for fat products across our product range and want to both reward and incentivise our supply partners accordingly. “Altering components on farm is not a quick or simple exercise and we recognise that many supply partners have geared themselves towards protein production which is why we are providing the option of either payment system,” Mr Crothers said. “Offering both payment ratios provides our Milk Supply Partners the opportunity to increase the value of their milk, regardless of breed or feed.” Jersey Australia published a report in March

earlier this year calling for a simpler pricing system in Australia, where farmers are paid for milk solids, rather than individual ratios for fat and protein. It welcomed Burra’s decision and called for all processors to provide payment options that reflect the strong market demands for fat. “Jersey breeders in South Gippsland will welcome the move to provide them a fairer return for their higher fat content milk supplied to Burra Foods,” Jersey Australia President Chris MacKenzie said. “Global shortages of butter and milk fat products for processing have led to increased emphasis on fat in farmer payments, however payments for protein still outweigh those paid for fat.

“Burra Foods should be congratulated for being the first processor to move to bring the fat payment in line with protein and we call on all processors to provide payment equality for fat and protein milk components.” Northern Victorian Saputo supplier Stephen Brown, who milks Jerseys on his Gunbower farm, said he was keen to see other processors to follow the lead of Burra Foods. “I want Burra Foods to move here. The 1:1 (fat-protein) ratio would make a huge difference for us,” he said. “Butter fat is what they want but they pay less for it. “If Saputo or Fonterra went to 1:1 they’d have every high solids supplier in northern Victoria.”

DAIRY NEWS AUSTRALIA JULY 2018

NEWS // 5

Fonterra, Saputo announce prices within days of each other FONTERRA HAS announced an opening price of $5.85 per kilo of milk solids for the 2018–19 season and a forecast closing rage of $5.85–$6.20 kg/MS. The New Zealand-based processor announced the opening price 10 days out from the opening of the season — two days after Saputo announced its opening price of $5.75c/ kg. Saputo did not release a forecast closing price, telling suppliers it would “update you as part of our quarterly milk price review process in October, January, April and June.” Fonterra also announced it would increase its farmgate milk price for the current 2017– 18 season to $5.68/kg MS, plus the 40c kg/MS sign-on bonus, for a total cash payout and forecast average closing milk price of $6.08 kg/MS. The increase will apply from July 1, 2017 and will be paid on July 15. Fonterra Australia Managing Director René Dedoncker said next season’s price “reflects what the company can earn in the market”. “Our opening and upgraded forecast closing range are based on a continued positive global

supply and demand outlook, coupled with more favourable currency movements. “Demand is expected to remain strong — especially from China for milk powders and Japan for cheese, as well as butter and AMF globally — and the global dairy market’s current strong prices are expected to continue throughout the new season.

The global dairy market’s current strong prices are expected to continue throughout the new season.” René Dedoncker, Fonterra “Since our last price review, we have achieved positive sales in key cheese export markets, GDT remains at supportive levels, and the short-term weakness in the Australian dollar has given us confidence to update our forecast closing range.” In its letter to suppliers, Saputo Dairy Australia wrote that its opening price “represents

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our current assessment of expected market conditions for the coming year”. “We believe it is responsible and allows room for upward movements if improved market conditions are realised throughout the year.” It added: “We are pleased to report that market conditions have continued to improve in recent months.” Bega Cheese also announced its opening milk price of $5.85 kg/MS. The co-op had planned to maintain its current price until September but announced its opening price less than a week after Saputo. Bega is also offering an additional upfront payment of 25c/kg MS if they sign for two years or 50c/kg MS if they sign for three. Australian Consolidated Milk increased its opening price from $5.90 kg/MS to $6 kg/MS. Lion Dairy & Drinks and Dairy Farmers Milk Co-operative will offer farmers anywhere from $5.82 kg/MS for a variable contract to $6.10 kg/ MS. Koondrook Fonterra supplier Skeeta Verhey said the opening price was a “start” and the closing price range of $5.85 to $6.20 kg/MS was

“competitive” for his business. “It’s north of where we were last year,” he said. Australian Dairy Farmers national councillor Daryl Hoey said companies were being “conservative” because of where the industry had been. “It’s probably not outside of the realms of the expectations of where it would be — but we were hopeful it would be higher,” Mr Hoey said. “The companies being conservative is reflective of where we have come from.”

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DAIRY NEWS AUSTRALIA JULY 2018

6 // NEWS: SITUATION & OUTLOOK

Low farmer confidence to restrict production growth Exiting intentions

30 25

Tight margins and difficult seasonal condifarmer confidence are expected to restrict pro- tions in 2017–18 hit Australia’s northern, domesduction10growth to about one per cent in 2018– tic-focussed dairy regions hardest, prompting an increase in farmers exiting the industry in 19, according to Dairy Australia. DA 5released its Situation & Outlook last those areas. “Hay, grain and irrigation water prices are all month, which revealed these factors would negate a better global market outlook and eroding margins and present significant head0 competition for milk supply. winds for the season ahead, particularly in those domestic National Murray WestVic Gipps NSW Subtropical SA WA TAS Dairy Australia senior industry analyst John parts where dry conditions persist.” Mr Droplastconditions 12 months made planspert to exit Winding down phase said. Droppert said a run of In dry across But an unfavourable northern hemisphere many dairy regions through late Survey summer and Source: National Dairy Farmer 2018 most of autumn was likely to limit the short-term spring meant a predicted European oversupply impact of any price rises on farm balance sheets. failed to materialise. This delivered a brighter HIGH 15OPERATING costs and decreased

outlook for farmers in Australia’s southern, export-focussed dairy regions. “Six months ago, the European supply situation was weighing heavily on the global market outlook and, while risks remain, it is likely to be some time before the amount of milk coming out of Europe builds back to a level that could create a market imbalance,” Mr Droppert said. The June Situation and Outlook report includes the findings of its annual National Dairy Farmer Survey, showing less than half (47 per cent) of farmers across all eight dairy regions remained confident in the industry’s

future, down from 53 per cent last year. The survey was undertaken in March, amid growing concerns at a lack of rain and uncertainty around changes in the processing sector. The trend of decreasing confidence was spread across nearly all regions but farmers were more likely to have confidence in their own operations than in the industry as a whole, with 55 per cent saying they felt positive about their own business. “Overall, farmers are happier with their own businesses but less so about the industry which is a reflection of uncertainty around the structural changes and that will take some time to settle,” Mr Droppert said. The survey highlighted that 80 per cent of farmers remained committed to a long-term future in the industry, while 11 per cent were in the process of winding down. Global Impact, page 24

Exiting intentions

Farmers making or wanting processor changes 60

30 25

50 7

40 9

30 9

14 20

23 17

Murray

Yes, changed company

17 8

National

WestVic

Gipps

4 2

NSW Subtropical

Not changed, but considering it

National

TAS

Murray

WestVic

Gipps

NSW

Subtropical

In last 12 months made plans to exit

Not able to, but desire change

TAS

Winding down phase

Source: National Dairy Farmer Survey 2018

Processors contribute to farmer disappointment SOPHIE BALDWIN

DAIRY FARMER Scott Sommerville has been involved in dairy for almost four decades and says he has never seen things so bad. “This really is the worst state I have ever seen the dairy industry in,” Mr Sommerville said. “It has been the hardest to make ends meet — our costs are just obscene and milk price

is not keeping up. 60 “I think processors are showing a massive lack of foresight in not restoring confidence in the industry. They are building all these plants — but 50 where is the milk going to come from?” The Timmering farmer said the recent Dairy Australia survey which indicated one in five farm40 ers were looking to exit the industry was a good case in point. 30 He said he’d talked to a lot of farmers and

Farmers making or wanting processor changes many of them were saying there was no way they was 20 cents under the average based on 250 wanted their children to dairy farm for a living — it cows; another farmer milks 80–100 and he was 40 cents under and another farmer with a large was just too hard and too stressful. He knows of a lot of people who have already Jersey herd with a flat production curve was 2 sold their farms because they are disillusioned cents under. 7 “A high component flat-production curve herd with the industry. the weighted average — which Mr Somerville said he would like to see every- can’t even make 1 one9paid the same price for 10 their milk and he thinks shows why it is so important to get a budget 13 21 done and not processors’ weighted averages are 6irrelevant. 14 presume that’s the price you will “My budget on my processor’s opening price be paid.” 9

20 23

National

Murray

Yes, changed company

8 25

11 es 4 lum 8o o V t 2 2 k Tan 5,000NSWs Subtropical SA WestVic Gipps WA TAS From 00 Litre Not changed, Not able to, but desire change 50,0 but considering it

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DAIRY NEWS AUSTRALIA JULY 2018

8 // FAIR PAYMENTS

Farmers back simplified system STEPHEN COOKE

NORTHERN VICTORIAN farmers are firm

in their belief that a simplified milk payments system can be achieved and would benefit the entire industry. The farmers met in Kyabram for one of the United Dairyfarmers of Victoria milk price structures meetings that were held around the State. The UDV has recently compiled a set of material forming the basis for a much simplified milk pricing structure including a think tank of industry consultants identifying the points of complexity in the system, and the "Manika" report outlining key components of a simplified system. Consultant Phil Shannon explained the report to farmers, who all agreed it was worth using as a basis for discussions with processors to change the current complex pricing systems. The UDV has received 100 per cent support for the plan from farmers who have attended each meeting. “I think it’s heartening and encouraging to have had this conversation in industry and I am hopeful we will see some changes,” Kyabram farmer Susan Wearden said after the meeting. “Processors need to find efficiencies and this could provide a way to do that,” her husband, Peter, said.

Alison Couston, Stanhope; Rob Schloss, Stanhope; Tim Leahy, Girgarre; consultant Phil Shannon; Craig Emmett, Stanhope; Susan Wearden, Kyabram; Paul Price, Lancaster; Peter Wearden, Kyabram; David Glass, Nanneella.

Kyabram farmer Peter Wearden said the proposed system should see farms with less than 300 cows, which comprise 50 per cent of the industry, receive more money. “In this system, everyone gets paid instead of bigger farmers getting a larger price,” he said. “Processors will need to listen otherwise there will be less milk. If there’s less milk then it is less efficient for them.” Stanhope farmer Craig Emmett said the

meeting gave him a much clearer understanding of how the payment systems changed over time. “I hope the plan gets some traction and we get something easier to understand,” he said. “We need better price indications on where we should be producing milk. It’s not doing that at the moment. If we have a bumper spring, it makes it hard to meet ratios, so we have to get rid of linked months.” He believes the plan will gain traction with

farmers. “50 per cent of farmers are in that boat. It makes sense. It’s so confusing at the moment, everyone should be behind a similar system. “If they were easier to understand, farmers would make better decisions.” Stanhope farmer Alison Couston believes “resistance will come from those benefitting”. “Hopefully they find their moral compass and think of someone other than themselves.”

New model removes complexity, shares wealth STEPHEN COOKE

A NEW milk price model aims to remove the complexity of the current contracts and provide a more even share of money across all farms, regardless of system or size. The model was overseen by consultant John

Mulvany for the United Dairyfarmers of Victoria, who have gained consensus from farmers on a roadshow through Victoria. They will use it as a lead for discussions with processors in a bid to have a more equitable system installed. The UDV says pricing systems in use today

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push farmers into risk taking behaviour, forcing inefficiency into farming systems and making it difficult to understand how milk payments are calculated. It says this erodes profitability on farm, and ultimately the industry. At the heart of the change is removing elements in current contracts that lead farmers to stop producing milk at the most profitable time, when feed is cheap. Consultant Phil Shannon presented the initiative to farmers at a series of meetings in northern Victoria last month. “If a milk pricing system encourages you to use more feed, it affects your cost efficiencies. That hurts factory efficiencies,” Mr Shannon said. “Milk incentives sway decisions away from natural farming and the lowest cost of production. “Changing patterns of when you supply milk may gain you 20–50c/kg MS or $200/cow. If you pay more than that, you lose.” The proposal states that high cost production systems precludes the next generation of farmers from entering the industry, as farms are more expensive to purchase and run. “Farmers need to match natural resources to produce milk,” Mr Shannon said. “Seasonal calving means calving and producing milk at a time to use natural resources efficiently. This is the foundation of a world export competitive industry.”

“There are hundreds of low risk seasonal calving farms throughout Victoria, all with individual milk production patterns. The solution is to go back to what we did. “If we don’t do something to gain competitiveness on the world market, what will we leave our kids? “If we don’t pull together and work with processors, we head down a slippery path. “Farmers have responded to factories, and raised their COP, meaning factories have to pay more and lose our competiveness.” The report says payment variation across farms is 90c/kg MS, which equates to 67 per cent profit variability across farms. It is farmers entering the industry that are paid the lowest. The report is adamant in removing ‘linked months’, known also as SRP payments, from the contracts. These mean farmers producing a certain percentage in spring need to produce a certain percentage in a later month. The report says these payments can cost farmers for producing too much milk in spring. Farmers will either reduce production in spring, when it’s cheapest to produce feed, or make poor decisions in ‘linked months’ to catch up. The UDV believes removing ‘linked months’ will lead to more profitable decisions being made regarding periods in which to produce milk.

DAIRY NEWS AUSTRALIA JULY 2018

FAIR PAYMENTS // 9

Put farmers back in charge of farm management ADAM JENKINS

MILK PAYMENT structures are too complex.

Enough is enough. UDV has now presented a simplified milk price structure model to hundreds of farmers and industry representatives across the state and the feedback has been unanimous — structures need to be simplified and the time for change is now. It is time for processors to hear the call of industry and act. Processors have put in place a set of practices and pricing components that are working against their suppliers. Complexity, a lack of transparency and incentives that push farmers to take additional risk are all being used to hold supply. A simplified structure can address farming system inefficiencies and confusion around complicated milk payment calculations. We need a payment system that allows us to maximise our comparative advantage; systems that encourage farmers to produce milk efficiently and at a time to suit their natural resources whilst acknowledging the requirements of the processor. It is clear that the current payment systems do not enable or encourage the best farm management decisions, instead increasing production costs, resulting in demand for a higher milk price to create a margin — a downward spiral for processors, farmers and industry. To make matters worse, those with the least milk price bargaining power are those new to the industry. Young and other new farmers with lower volumes and not yet recognized as a reliable supplier of quality milk end up with lower prices, putting them under higher financial strain. These are the very people we need for our future. It is ludicrous for some dairy farmers and processors to say that they are genuinely interested in the future of the industry, when a young dairy farmer building production capability also has to be 25 per cent better at generating profit than his neighbour, simply because of farm size and production volume. Simple payment systems are possible. They

Fine ith dining w

Adam Jenkins.

have been used in the past and there are examples of passable systems in use today, but their adoption requires agreement from all stakeholders. That is why it is important that dairy farmers let their processor staff, consultants and fellow farmers know that they want a simpler system. This includes making changes such as: ■■ An “A + B – C” approach to pricing — Simplifying the structure by removing the unnecessary pricing components and focusing on milk components minus a volume charge. The majority of price variability comes from additional incentives and charges. ■■ Letting farmers manage their own feed regimes by using a simplified seasonal

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A simplified milk price structure will let farmers find efficient production by giving individuals flexibility of farm management. This would result in more milk at lower cost — good for farmers and good for processors. Without it we will likely see the industry dwindle to nothing as new and existing farmers expose themselves to greater risk and wash out. Together we need to tackle a crippling issue for this industry. Change cannot be the effort of a few. Industry needs consensus. Industry needs everyone to work towards the desired outcomes, together. Go to www.FairPayments4Dairy.com for more. • Adam Jenkins is President of the United Dairyfarmers of Victoria.

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dairy go round... PEACE continues to get better and better,” - LOVE Cliff said. RYEGRASS Fonterra will co-host an industry

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Phil Johnstone of Fonterra. breakfast on 27 September 2018 What makes for a harmonious relationship with Reid Stockfeeds. The Fonterra in the dairy industry? Farm Source team will also host Why is it that some business relationships Simon Hood, Fonterra Farm Source their own stand on both days of the work so well, to mutual benefit, and others Regional Manager, said that the Expo, where community members fall apart? Fonterra team are looking forward can meet the team and learn about Are all successful business arrangements Daily milkMajor dunking to being Sponsorcompetition of the 2018 Fonterra products. harmonious and easy, or does it take hard Expo. * One throw “We have eight locally based work, mutual respect and give and take to “What really appeals to us is the people in Gippsland’s Fonterra Farm make it work? * One dollar community nature of this event. It's Source team, and we'll all be at the We learn how a range of relationships, being * Aim well a partnership with the Strzelecki Expo,” Simon said. “Our stall will employee/employer, sharefarming and farm Lions Club, whoguests: have a great Star provide a space where farmers have manager arrangements work so well, for an reputation across theHutchison, region. Being Matt Harms, John extended period and how they reach harmony. an opportunity to have a cup of tea, Allan Cameron & Scott Price, out in the community, shoulder-toTheofpanel members Mark Wilms and sample some product, and a chat Chairman the Dairy Expo Cliffinclude: Wallace and his son to come... shouldermore with our suppliers really Andrew Balfour (Wilfour Farms) and sharefarmer Luke Wallace, Poowong North. with the team.” Michael O’Brien from Nambrok, Paul and Lisa appeals to our values.” Simon said. “We'll also have representatives Mumford and employee Aaron Thomas from Won The Strzelecki Lions Club will be from other Fonterra divisions on site, Wron, Gordon and Sylvia Vagg and farm manager hosting the South Gippsland Dairy Paul Cocksedge from Leongatha South and Matt to chat to farmers and understand Expo in Korumburra on Wednesday Long from Rabobank. the issues that they’re facing. In Plenty of fun to keep the kids 26 and Thursday 27 of September return farmers will be able to learn Proudly sponsored by South Gippsland Shire 2018.raised For 19 years the Club has Blue All money will be donated to Beyond entertained in the Sanders Pavilion Council & Rabobank more about the dairy value chain S O U T H G I P P S L A N D organised the popular communityand the challenges of the domestic based event. Cliff Wallace, Chairman and export markets.” Thank you to the following exhibitors who are the Dairy Expo’s of the Dairy Expo and Strzelecki Simon sees Fonterra’s sponsorship proud sponsors of the Udder as Truth’ showbag initiative… Lions Club member, said ‘The that having a long-term commitment to give • GippsDairy/Dairy Australia • Fonterra Fonterra Farm Source as Major back to the Gippsland community: Dairy Expo operational day at the Expo. Sponsor is a “real plus” for the Expo. “The South Gippsland Dairy Expo • Victorian Hoofcare Services • Federation Training “It’s really positive that New Fonterra important event for the dairy MaxCare • De Wit Trading/the Wrangler Zealand is• an has come on board to support the industry overall. We’re happy to Media and photo opportunity contact: • ProviCo • Browns Stockfeed Pty Ltd support the Expo, so these types of Expo as Major Sponsor, it’s going Deanne Kennedy, Secretary: 0419 878 055 • Rabobank • Coopers Animal Health or deanne@jaydee.net.au events can continue into the future.” to be a great association for many Korumburra Showgrounds, Corner South Gippsland Highway & Charles Street, Korumburra

Sanders Kids Farm Animal

The Big Gippsland Jersey DUNK OFF

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Wednesday 26th & Thursday 27th September 2018 from 9am-3.30pm Korumburra Showgrounds, Corner South Gippsland Highway & Charles Street, Korumburra

This is a Race about Dairy Matt Harms

A game of speed, accuracy and knowledge... Cows Create Careers students from Gippsland schools will go Head-to-Head in a Race about Dairy on Thursday 27th September at 1pm. The first team across the finish line will take out the trophy and the accolade of being the 2018 Dairy Expo Cows, Create, Careers Champions! Proudly sponsored by Federation Training & Dairy Australia

A RACE ABOUT DAIRY

The Big Gippsland Jersey DUNK OFF Daily milk dunking competition

* One throw * One dollar * Aim well

ONFARM CONSULTING Wednesday 26th September at 11am

Love makes the world go round, what makes dairy go round... PEACE - LOVE RYEGRASS What makes for a harmonious relationship in the dairy industry? Why is it that some business relationships work so well, to mutual benefit, and others fall apart? Are all successful business arrangements harmonious and easy, or does it take hard work, mutual respect and give and take to make it work? We learn how a range of relationships, being employee/employer, sharefarming and farm manager arrangements work so well, for an extended period and how they reach harmony.

Sanders Kids Farm Animal

Pavilion

Star guests: Matt Harms, John Hutchison, Allan Cameron & Scott Price, more to come...

All money raised will be donated to Beyond Blue

The panel members include: Mark Wilms and Andrew Balfour (Wilfour Farms) and sharefarmer Michael O’Brien from Nambrok, Paul and Lisa Mumford and employee Aaron Thomas from Won Wron, Gordon and Sylvia Vagg and farm manager Paul Cocksedge from Leongatha South and Matt Long from Rabobank.

Plenty of fun to keep the kids entertained in the Sanders Pavilion

Proudly sponsored by South Gippsland Shire Council & Rabobank

Thank you to the following exhibitors who are the Dairy Expo’s proud sponsors of the ‘The Udder Truth’ showbag initiative… • Fonterra • Federation Training • De Wit Trading/the Wrangler New Zealand • Browns Stockfeed Pty Ltd • Coopers Animal Health • Lely Center Gippsland • Easy Dairy Automation Systems • Gendore Tractors & Machinery Pty Ltd

• GippsDairy/Dairy Australia • Victorian Hoofcare Services • MaxCare • ProviCo • Rabobank • Reid Stockfeeds • Rural Bank

WIN $3,000 CASH!

The Udder Truth!

GOLD SPONSORS

South G ipps land Shire Counc i l

S H OWBAG

DAIRY NEWS AUSTRALIA JULY 2018

12 // NEWS

David Nation to replace Ian Halliday DAIRY AUSTRALIA has appointed DairyBio

Co-Director David Nation to replace Managing Director Ian Halliday. After nine years in the role, Managing Director Ian Halliday last month announced he was leaving DA to take up the role of Consul General and Senior Trade Commissioner to Dubai. Dr Nation was previously the CEO of the Dairy Futures CRC. He is also a Co-Director of DairyFeedbase. Dairy Australia said Dr Nation was chosen from a “global field of candidates”, in part for “his extensive experience across the dairy sector,

THINK BIG PICTURE ON MDBA A robust and transparent test to determine the socio-economic impacts of removing an additional 450 gigalitres (GL) of irrigation water from the Murray-Darling Basin is critical if the impacts to local communities are to be fully understood, according to the Australian Dairy Industry Council (ADIC). The ADIC has urged state and federal water ministers to consider any impacts the test would have on dairy jobs and local communities. It wants the socio-economic

including leading roles in a number of key dairy innovation pipeline projects”. Dr Nation will take the reins from July 30, with Mr Halliday to remain during a handover period. “Having had a variety of roles across the dairy sector, I know how the work of Dairy Australia can make a big difference to the country’s dairy farmers,” Dr Nation said. Dairy Australia Chair Jeff Odgers said Dr Nation was already well known and respected by farmers for his commitment to improving farm productivity through innovation. “David has been building his credentials in

neutrality test currently in place under the Murray-Darling Basin Plan stregnthened. ADIC Water Taskforce Chairman Daryl Hoey said the current test was measured at an individual level rather than a community level. “At the moment, a farmer might sell their water to the Commonwealth and because the farmer received payment, it is considered to have a positive outcome,” Mr Hoey said. “However, there is no evaluation of what the loss of water means for the region and its future viability. “Dairy farmers value our rivers and support the improvements that have been made to the Basin, but irrigation

the dairy industry for many years and the benefits of his science and innovation work will continue to flow through the industry for years to come,” Mr Odgers said. “Not only does David have an outstanding ability to relate to farmers, he has shown he can bring together people from across the government, private and not-for-profit sectors and get the job done. “That skill is invaluable in an operating environment as complex as dairy.” Mr Odgers praised Mr Halliday’s contribution to the dairy industry, including the delivery

communities are worried the current ‘neutrality test’ does not consider community impacts when water is removed. “Any socio-economic test must be fair for all farmers because, as it stands, local dairy dependent communities cannot tolerate more job losses.” Data released last year by the MurrayDarling Basin Authority (MDBA) revealed job losses in Basin communities of up to 40 per cent in agriculture, and up to a 60 per cent loss in irrigation employment in some regions. The MDBA also estimated future water recovery measures would lead to a further 9 per cent slump in the gross

David Nation.

of a globally-recognised industry sustainability framework and the strengthening of Dairy Australia’s regional development programs. “A big part of Ian’s legacy will be the achievements coming out of the DairyBio, Datagene and DairyFeedbase programs, which will have enduring benefits for farmers across the country,” he said. “These are programs that Ian has been passionate about and, given David played such a critical role in getting them off the ground, I’m sure Ian will be satisfied to know they remain in good hands.”

value of irrigated production. Analysis by consultants RMCG found that milk production would be slashed by 235 million litres in the southern Basin alone, putting around 500 jobs at stake in the district. The deal struck between the federal Government and Opposition also includes expressions of interest for on-farm projects which would involve farmers receiving funding to upgrade their irrigation practices providing they return a portion of their water to the Commonwealth. “Unfortunately, these projects simply take irrigation water out of production. The Commonwealth and States must look for water projects that do not take water from the consumptive pool,” Mr Hoey said.

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DAIRY NEWS AUSTRALIA JULY 2018

NEWS // 13

Dairy industry in good hands THE NUMBER of veterinary students wanting to

work with large herds may be declining but Ellie Hodge has no doubt where she will apply her focus in the future. Ellie, 20, of Leitchville, is this year’s winner of the Greenham GOTAFE Dairy Scholarship, valued at $12 000. Keen to keep the momentum up after completing her Science degree, Ellie is in her first year of Doctorate in Veterinary Medicine at the University of Melbourne after being granted accelerated entry into the course. She is one of three daughters to dairy farmers Cameron and Ann Hodge who milk 400 Hol-

steins on their Northern Victorian property. The shared experience of lending a hand in the dairy or hand feeding calves had a deep impact on her outlook. “Mum and dad have always been very open about the challenges of operating a dairy whether it be on-farm efficiencies, the volatility of milk pricing — basically the realities of running a dairy operation.” “When I was about sixteen, the local vet came out to treat a sick cow and I thought this is pretty cool — and later learnt that I could get paid for it!” Ellie now looks up to senior Vets and the love they have for their careers. She understands how

Greenham executive chairman Peter Greenham Snr congratulates vet student Ellie Hodge on winning the $12,000 Greenham GOTAFE Dairy Scholarship.

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rewarding it is to treat multiple species of animals and see positive results, particularly in production animals. “As I have gained more knowledge, I’ve become really interested in the area of animal health in terms of welfare and also production. Unless an animal is in its best condition and its welfare given top priority, it can’t produce to its potential — the two go hand in hand.” Of particular focus, Ellie is keen to investigate further into areas like dairy cow mastitis and preventative measures to this industry wide issue. “We can look at reducing Bulk Milk Cell Counts (BMCC), improving breeding strategies and tightening up farm practices which can decrease losses associated with the condition.” “I’m also keen to look further into antibiotic use and the issues surrounding ongoing use and antibiotic resistance,” Ellie said. With the cost of both an undergraduate

course and doctor of veterinary science exceeding six figures, the scholarship funding takes some of the financial stress away. Executive chairman, Peter Greenham, said the scholarship demonstrates his company’s long-standing commitment to education, innovation and the Australian dairy industry. “It’s very important that younger people see a future for themselves in dairy and agricultural production. We have built our business on servicing the dairy sector and we want to see it prosper to help build strong regional communities and local economies,” Mr Greenham said. Among the criteria considered for the $12 000 prize are personal and academic achievements, the potential benefits and relevance of the chosen study area or career path to the dairy industry (or related industries) and how important the scholarship might be in helping the applicant realise his or her ambitions.

DAIRY NEWS AUSTRALIA JULY 2018

14 // NEWS

Burra exports branded milk to Taiwan

India turns to South Australia to lift dairy knowledge THE OWNERS of India’s largest private

processor Burra Foods has launched its first retail product, Pure Source Milk, which it will export to Taiwan, backed by an integrated marketing campaign heavily focused around Gippsland’s ‘pristine’ farming environment. Burra’s Evan Scicluna said Pure Source is part of a strategy to drive maximum value from fresh farm gate milk in international markets. The one-litre Australian fresh milk packs will initially be exported to Taiwan with a strong focus on regional provenance back to the Gippsland dairy farming families that supply the high quality milk, he said. Each pack contains a Farm Finder QR code that tells the story and provides key information on the farms that supply Burra Foods. “Taiwanese consumers drink over 15 million litres of premium imported fresh milk every year,” Mr Scicluna said. “There is already a positive preconception of Australian agriculture and we plan to take it one step further by promoting Gippsland as Australia’s premier dairy region.” Insights generated by Burra Foods suggest over half of all Asian dairy consumers want to know more about where their milk originated. “Quality and traceability is of the utmost importance to Asian dairy consumers. GIPPSLAND-BASED

DAIRY

“As a product, Pure Source Milk combines great tasting, high-quality fresh milk with our on pack digital platform Farm Finder so that Asian consumers can visualise and experience exactly where our milk comes from.” Burra Foods believes traceability in the dairy supply chain will continue to evolve with technological advances and Victoria’s booming tech sector can play a vital role in substantiating the premium positioning of agricultural products in international markets. The official in-market launch ceremony launch was held on June 19 in Taipei.

Burra Foods will export its new product, Pure Source, to Taiwan.

dairy farm are sending four ‘dairy trainers’ to South Australia this year to improve staff knowledge and herd productivity. Parag Milk Foods, which owns Bhagyalakshmi Dairy Farm in Manchar in western India, will send four of its dairy trainers to South Australia later this year to receive a mix of classroom and hands-on training from TAFE SA lecturers. The trainers will learn about nutrition, housing and calf rearing, among other dairy topics at TAFE SA campuses in Adelaide and in the state’s South East region. The Indian dairy trainers will be certified to train dairy farmers at Bhagayalakshmi. India is the world’s largest producer and consumer of milk and dairy products. TAFE SA staff visited Parag Milk Foods and the Bhagyalakshmi Dairy Farm in April 2016 to undertake a scoping visit ahead of the partnership. In addition, they attended the Global Rajasthan Agricultural Meet in November 2016 — at the invitation of the Rajasthan Government — to gain a greater understanding of the challenges facing the agricultural and dairy sectors of Manchar and Rajasthan, particularly around capacity

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building. South Australia and Rajasthan formalized a sister-state relationship based on an exchange of technical capabilities and research in 2015. The agreement provides collaborative opportunities across key sectors such as water management and farming. Parag Milk Foods Chairman Devendra Shah said the partnership with TAFE SA would help the company improve the productivity of its cows by better educating farmers on best practice for breeding, feeding, animal husbandry and management. “We are aiming to train all of our associated dairy farmers under this initiative,” Shah said. “We are also looking at creating a pool of professional farm hands in various aspects of farm management.” The train-the-trainer partnership between TAFE SA and Parag Milk Foods was facilitated by Austrade. Australian Trade Commissioner in India Mark Morley said Austrade hoped to replicate similar partnerships between Australia and India, and other Asian markets such as Pakistan, Sri Lanka and Bangladesh in future.

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DAIRY NEWS AUSTRALIA JULY 2018

NEWS // 15

Government must act on skilled migrants: ADF DAIRY BUSINESSES are losing up to

$364 million each year in employee turnover, with Australia’s peak dairy farmer group warning the problem will only get worse unless the federal Government acts immediately to solve the industry’s labour crisis. Australian Dairy Farmers, in a submission to the Department of Jobs and Small Business review of the Skilled Migration Occupation Lists, called on the federal Government to overhaul its skilled migration program to reflect workforce needs. “Agriculture is a growth industry in Australia with a target to increase our gross value of production from $60 billion currently to more than $100 billion in 2030,” ADF President Terry Richardson said. “There are many drivers required to achieve this target. A permanent skilled workforce is one of the highest priorities.” Farmers were set back when the Government abolished the 457 visa system which had been used to recruit skilled overseas labour, a decision made on the back of Fair Work Commission findings that 40 per cent of visa holders were no longer employed by a sponsor or being underpaid. “Australian dairy farmers have a reputation for running professional operations and paying above the award rate, but our industry will suffer if we can’t recruit foreigners with either experience on dairy farms or tertiary qualifications in agriculture science from their home country,” Mr Richardson said. “Unfortunately, many of the locals who are being pushed into these jobs don’t have the necessary skills to handle the roles. “They find it difficult to satisfy food safety standards, administer veterinary and other animal husbandry requirements, operate technology or are generally unable to fulfil the obligations of a skilled dairy farm manager or leading hand.” The 457 visa stream was replaced in March by a Temporary Skills Shortage (TSS) visa for short and medium-term employment, but farmers hoping the new visa will solve their labour woes will be disappointed. The Australian and New Zealand Standard Classification of Occupations (ANZSCO), which determines the roles eligible for TSS visas, lists dairy cattle farming as the dairy industry’s only job, overlooking skilled positions including business manager, production manager and senior farm hand. Mr Richardson said the Government needed to overhaul its occupation classification and visa systems to reflect the modern reality of the dairy industry, including providing skilled overseas

workers access to longer visas and a pathway to permanent residency. “Dairy farming is currently listed as a shortterm skill, meaning anyone who comes out on a TSS visa can only stay for up to two years, with the option of a two-year renewal,” he said.

“Skilled migrants will only apply for these roles when they are guaranteed four, not two, years of employment and have a pathway to permanent residence. “Dairy farmers need reliable access to skilled overseas workers and will continue to struggle

President Terry Richardson.

to staff their businesses unless the Government makes drastic changes to the visa classifications.” The ADF submission to the Department of Jobs and Small Business is available at www.australiandairyfarmers.com.au

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DAIRY NEWS AUSTRALIA JULY 2018

16 // NEWS

Ireland’s new vista on dairying PETER BURKE

IRELAND HAS been one of the countries taking

advantage of the European Union’s decision to lift its restriction on milk production in March 2015. Milk production has risen slightly, as have cow numbers and herd sizes. Although the average Irish dairy herd is about 80 cows, Dr Frank O’Mara, Director of Research with the Irish Research Institute, Teagasc, says at least half now have 100-plus cows and herds of over 500 are emerging. The Irish economy depends heavily on farming, and with Brexit likely to force Irish farmers beyond their traditional UK market they are gear-

ing up to make an even greater impression on the global dairy market. To achieve this Teagasc is being funded by the Irish government to set up Vistamilk — run by Teagasc with partners in specialist data, analytics, communications and sensor skills plus dairy companies and agri-tech businesses. “The goal is to position Ireland as a leader in pasture-based dairy systems and the use of precision technologies, so strengthening the Irish dairy industry and developing agri-tech,” Dr O’Mara said. “For the farmer this will improve soil fertility for grass production animals, improve animal health and produce new tools to help do this. “In relation to food, by controlling the whole of milk production we might be able to produce

a more consistent product or products that have particular characteristics that might suit particular markets or the needs of particular consumers.” The aim is to develop better genetics and improve the nutrition of the cow, especially via pasture. But Vistamilk has a wider mandate, notably farm labour efficiency, Dr O’Mara said. “Labour is a big issue in Ireland. Our industry is expanding and farmers are looking for more labour and it’s hard to get. “So there is a focus on how can we use the labour we have more efficiently and how we can make our systems less labour-intensive.” He says due to a combination of the milk quotas and some social factors, the Irish dairy industry has stagnated for the last 30 years.

But this is changing: a large proportion of Ireland’s 18 000 dairy farmers are seeking out new ideas. “Teagasc’s extension service has about 12 000 clients and we run a field day at our main dairy research centre at Moorpark in County Cork. “We would typically get 10 000 – 12 000 farmers so we have excellent connections out to the industry. “This demonstrates that Irish farmers think there is something new for them to get by coming to the field day. “Nothing is for sale at the field day; the only thing you can get there is knowledge, so farmers come to listen to our scientists and researchers to learn about their latest findings.”

Attracting young people DR FRANK O’MARA says attracting young people to careers in Irish agriculture is a widespread problem at every level of the industry — farm workers, managers and at the science level. Teagasc has several programs reaching into secondary schools and the wider community to make people aware of career opportunities in farming. “Especially important is to get rid of

the image of dairy farming as a life of drudgery, long hours and loneliness. “Sure the dairy industry can be that and … a lot of work, but if you are organised and plan things it can also be a very rewarding career.” Teagasc will soon launch a program aimed at attracting young people into dairying. Dr O’Mara said Ireland’s emphasis

remains on training -- practical farm courses or university degrees — in which students spend time in the field, on local farms and sometimes on New Zealand farms. “This is because of the similarity of the farming systems, the scale people get to see in NZ, and it’s a lovely part of the world.”

Dr Frank O’Mara.

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DAIRY NEWS AUSTRALIA JULY 2018

18 // NEWS

‘Career path’ helps buck employment problems STEPHEN COOKE

EMPLOYMENT IS a major problem in US dairy with no immediate solutions on the horizon but a fourth-generation dairy farm is bucking the trend. Fiscalini Farms milks 1500 cows at Modesta in California’s Central Valley. It sells a variety of cheeses throughout northern America and

London and has been awarded World’s Best Cheddar at the World Cheese Awards in London on three occasions. General Manager Brian Fiscalini, the greatgrandson of John who established the family dairy farm in 1914, hosted a group of New Zealand dairy farmers as part of the California dairy tour held in conjunction with the company’s One Conference. Mr Fiscalini said he starts each of his 42

employees on a “career path”. “When we first employ people, some say in two years they want a new career,” he said. “One guy wanted to be a truck driver. All employees receive two days off each week so we sent him to truck school to drive a truck. “He went, looked at how many hours he would work and what he would make, and realised he would be better off here and stayed.” Mr Fiscalini said when employees decide

to leave he knows the end date and with two months remaining begin to recruit. Every employee is from Mexico and two longstanding staff members were first employed by Mr Fiscalini’s grandfather 30 years ago. They have 42 employees in total and he sits down with each staff member individually every quarter. Their performance is reviewed and they are eligible for a pay rise or guided on how to improve facets of their performance. They were the third farm in the country to adopt genomic testing when they started utilising the technology in 2009. Every heifer is tested when born at a cost of $44/head and 10–15 per cent of every cohort tested is culled. Mr Fiscalini is looking to increase the average milk by 900 ml (2lb) every year “and we’re happy with one pound (0.45 litres)”. The Fiscalini Farms herd comprises 95 per cent Holstein, 5 per cent Jersey and a handful of Brown Swiss (owned by a long-standing employee) and 1500 cows are milked three times a day. Cheese is made from Jersey and Brown Swiss milk (based on butterfat component) with Holstein milk sold to Nestle. A variety of cheeses are now sold throughout northern America and London. The herd average 42 litres (94lb) with 3.8 fat and about 3.2 protein. The Holsteins average 42 litres a day, the Jerseys 30 litres (67lb) and the Brown Swiss anywhere between 31 and 36l (70–80lb). Their highest six cows produce about 67 litres (150lb) a day. There are four diets utilised for cow groups. The cheese cows receive a higher fat diet, and slightly more protein. The total mixed ration (TMR) comprises 20 different ingredients, including Integral A+ from Alltech. Other than alfalfa hay, they grow all their forage, which is 70 per cent of all feed required. “We triple crop, then there’s a short season of sudan grass, then winter wheat, which we chop." • Alltech Lienert Australia funded Stephen Cooke’s attendance at the Alltech ONE Conference and tour to California.

Brian Fiscalini said he starts each of his 42 employees on a “career path”.

Every heifer undergoes genomic testing when born at a cost of $44/head and 10-15% of every cohort tested is culled.

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DAIRY NEWS AUSTRALIA JULY 2018

20 // OPINION RUMINATING

EDITORIAL

Time running out for industry to agree

MILKING IT... On the go A group of northern Vic farmers had a crack at deciphering the current milk payment scheme under the tutelage of consultant Phil Shannon. Scanning the room, one farmer mentioned that he thought there may be a few field officers in attendance. “They’re too busy chasing milk!” he was told.

Milk from the desert How long does it take a country to build a dairy industry? One year, Qatar would answer. This tiny Middle East oil powerhouse faces an economic blockade by its neighbours. Until June last year, Qatar imported milk from Almarai, a Saudi conglomerate. Then Saudi Arabia and three other Arab states closed their borders to punish Qatar for supporting Islamist groups and Al Jazeera, a state-owned broadcaster that criticises all the Gulf monarchies except Qatar’s. Overnight the world’s richest country (measured by income per head at purchasing-power parity) was cut off from its food supplies. It first turned to Turkey and Iran. Shoppers got a crash course in Turkish: placards in the dairy aisle of supermarkets explained that ‘süt’ meant milk. Now a 14 000-cow farm in a desert is supplying milk and dairy products to the Qataris. The tiny kingdom will soon be self-sufficient in dairy products.

That ain’t milk North Carolina legislators have made it clear: “If a drink doesn’t come from an animal with hooves, you can’t call it milk”. Part of the state government’s general assembly 2018 farm bill would ban the marketing of milk made from plants, including almond, coconut and soy, from being labelled ‘milk’ in North Carolina after January 1. The products could still be sold, they just couldn’t legally be labelled ‘milk’ under the proposed law. That distinction would be reserved for dairy products like milk from animals, including cows and goats. The legislators note that nearly 200 nations do not allow beverages to be labelled ‘milk’ unless they are animal products. And labelling plantbased liquids ‘milk’ is confusing to consumers, they say.

Advertising James MacGibbon

Cows with guts to sing They say you can’t make a silk purse from a sow’s ear, but this goes pretty close. In a long process, barrels of cow guts are washed, spun and dried into strings that create beautiful music. A UK company has specialised in this niche technique for 100 years and does it for Bow Brand, Highgate, a mass producer of gut strings for leading harpists and harp makers worldwide. Its customers are found in Europe, Asia, north and South America and Africa. The Italian company Salvi Harp is a big customer and it made the strings plucked by the official harpist to the Price of Wales, who played at Kate and William’s wedding reception at Buckingham palace.

0409 103 745

james.macgibbon@dairynewsaustralia.com.au Editor Stephen Cooke 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.

The current milk price structure employed by processors is deliberately convoluted. It doesn’t have to be that way. It certainly shouldn’t be that way. Unfortunately, it’s getting worse and at the expense of the farmer, particularly those milking less than 300 cows (who comprise 50 per cent of the industry). Sign-on bonuses and ‘loyalty’ bonuses are becoming more prevalent as processors try and lock down their supply base. It was difficult enough for farmers to work out how their monthly pay cheque was calculated. Now they have to deduce the actual market price compared to what the processor is offering, and what line the socalled bonuses straddle. It was a revelation for many farmers who attended forums convened by the United Dairyfarmers of Victoria last month. The UDV has compiled a set of material forming the basis for a much simplified milk pricing structure. Part of this was a report which identified the points of complexity in the system. It wasn’t an exercise in kicking the processors. As Phil Shannon explained to a group of farmers in northern Victoria, processors and farmers need to work together to ensure the Australian industry is profitable. Neither party can succeed without the other. The forums did explain how the industry got to this point, and that it needed to work its way out of it. It won’t be easy, as many farmers have added cost to their operation to produce milk in months incentivised by processors. These payment systems have caused the rise in the cost of production, which makes farms less profitable, turning the future generation away. We are at the point where if change is not made, numbers will continue to decline and any chance we had of an export advantage will be gone. Don’t think that a shrinking industry focussed solely on the domestic front is a sustainable plan. It isn’t. The UDV’s Manika report — a payment plan with essentially six points that can fit on one page — is a sound basis for both parties to base discussions on. We implore them to do so.

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DAIRY NEWS AUSTRALIA JULY 2018

OFF THE SHELF // 21

OFF THE SHELF MADELEINEBRENNAN

Cheese drip the new hip

WE ALL know cheese is versatile. It’s one of the great food staples. It can also be a gourmet product and a marketer’s dream, used to sell everything from festivals, to wine and romantic getaways. But it wasn’t until recently that I found out, cheese is also hip. And not as in the ‘parents’ old fondue set kind of hip’ (as fabulous as the 70s fondue party was I’m sure). It’s the ‘inner city hipster with a beard and a top knot’ kind of hip (minus the vegans of course). I’ve come to this conclusion after numerous ads for cheese-themed festivals started popping up in my social media feeds, including that most hipster of trends — food truck festivals. If you haven’t been, a food truck festival is a fancy way for fancy people to eat take-away food without having to go to a drive through. It’s like enjoying Mr Whippy for as a main meal — but in a park. With beer. In Melbourne in May, it was the Fried Cheese Festival, featuring a whole lot of halloumi, mozzarella sticks, truﬄed cheese, American-style Reuben sandwiches and Philly Cheese steaks (which are named after the American city in Pennsylvania, not the brand of cream cheese.) Three weeks later, there was a Mac and

Cheese festival which I imagine involved a lot of people lounging around in elasticised pants eating Mac and Cheese served fifteen different ways (with blue cheese; with truﬄes, as a lasagne; fried as a croquette to imagine just a few …). And then, just last month, a Victorian-based American-style burger food truck business, Real O.G, took the phenomenon one step further: combining the traditional cheese burger with a fondue-style melted cheese, to create Australia’s cheesiest cheeseburger. Owner Frank Rusitovski said the idea originates from a food trend in the USA, where the hamburger bun explodes with cheese. “Cheese is what truly makes a good burger, a great burger,” Frank said. “We wanted to take that feature to the next step, so we’ve made Australia’s cheesiest cheeseburger from premium quality ingredients, sourced locally, so you can taste the high quality produce that Australia is so well-known for.” The ‘Drip it like it’s hot’ Cheese Pour burger invites customers to first pick their favourite style of fresh burger (which usually already contains cheese), choose a flavour (O.G, Chipotle or Smoky) and then pour a generous amount of the melted cheese sauce onto the burger. The pouring cheese is a blend of cheddar,

Australia’s cheesiest cheeseburger adds fondue-style melted cheese to a traditional cheese burger.

mozzarella and parmesan. The photo doesn’t do it justice: I encourage you to check out the video at www.dairynewsaustralia.com.au Footy fans were among the first to get a taste, with the Real O.G now stationed outside Gate 5 at Etihad Stadium on game days. As a Carlton supporter, I’ve been avoiding football matches at Etihad for about 10 years

now. But this cheese pour burger might actually be enough to make it worth the trip. And the good news is, for those who can’t get to Melbourne, the Real O.G roving food truck has also been known to visit regional areas on request. Man Bun optional. • Madeleine Brennan is a lover of dairy and all things delicious.

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22 // MARKETS

FRESH AGENDA STEVE SPENCER

Is there a strategy in Trump’s trade war?

THE TURBULENT regime of US President Donald Trump has overturned virtually every bastion of public administration, in pursuit of delivering on a suite of promises to be a president like no other before. Not only has he attempted to dismantle or reverse almost anything notable that was a legacy of his predecessor, he has walked his country from several global treaties and commitments — on climate change, human rights and the environment. It is like that Seinfeld episode where George tries to attract a girl by being “everything you don’t expect to see in a person”. Trump is keeping the faith with his “base” by talking tough, so they should continue to expect the unexpected and it will all be in their interests. It is clear he has little understanding of or time for rules, just as he aspires to be “above the law” — a claim he used (when he talked of pardoning himself ) in his preparation for allegations that may come from the Mueller

Trump’s motivation isn’t policy — it’s purely about the optics — about looking good and claiming a win in the “deal”. investigation into Russian involvement in his campaign. Trump has gone on a wild, divisive and mostly destructive ride. So, is there a coherent strategy in 2018 US trade policy? Let’s remember the loose threads that drive Trump’s trade “strategy”, which is meant to ensure America comes first, and that there should be more fairness in opening markets. Achieving both is challenging. First and foremost, the agenda is to protect the jobs and livelihoods of “forgotten America” — farmers and manufacturing workers in the middle of the country — especially steel and coal workers. It aims to reduce trade deficits — certainly with specific countries — China, the NAFTA partners and a few others. Further, Trump has often spoken about

correcting inequities in dealing with China — stopping intellectual property (IP) theft, uneven finance and investment laws and removing manipulation of currency. Refreshing the NAFTA accord was promised, but the ante was lifted when punitive tariffs on steel and aluminium were not only levied on Mexico and Canada, but also against the EU and other traditional allies, in the name of national security. Not only does that narrow penalty bring unintended consequences for the cost of manufactured goods and jobs in the US by raising input costs, it brought retaliation from China and Mexico targeted directly at Trump’s support base — by harming US farm commodity markets and trade in manufactured products. Further action is promised. The potential damage to dairy markets is

so far moderate — the US may lose some of its most important cheese market (Mexico) but its largest trade in whey powder (to China, where it has more than half total whey product trade). If these measures remain in place for a while, markets and milk use will adjust, export prices for cheese might suffer as US producers chase sales in other markets. Bigger risks lurk if this drags on with further action and reaction, which will stall the stunning recovery in world dairy markets since early 2018. The wobbles are already appearing. If Mexico strikes at US milk powder trade, it gets much worse for the US dairy industry. If the corn trade with Mexico is disrupted, feed markets will crash further. If China’s broader trade with the US is damaged, the impact on the Chinese economy, and the health of the world economy may worsen. It’s hard to see how a protracted trade war will end well for the US. Trump’s heartland will pay more for

Australian farmers are paid for the production of Milk solids, kgs of Fat + Protein.

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492 kg

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OUTSIDERS

169

14HO07796

GRIFF

168

507HO12997

TARRINO

167

507HO13740

ROLAN

166

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DAIRY NEWS AUSTRALIA JULY 2018

MARKETS // 23 consumer goods, while prices to farmers will be weaker and market access less certain. Trade protection can only reduce the competitiveness of the US economy. Logic says Trump will be motivated to end the trade war quickly to avoid media backlash and potentially weaken strong Republican selling points offered by the faster-growing US economy and tax reform … ahead of mid-term elections in November. A short war will also be good news for investors, as financial markets dislike unpredictability. But relying on logic and consistency with this guy is a huge mistake. Trump appears to care little about societal values, economic facts or the Republican party. He is increasingly operating as an independent rather than being party-bound, which will worsen if November elections go as polls suggest. The GOP likes the current situation, holding all the levers of federal power, despite Trump’s unhinged antics It can get its favoured policies — lower taxes, corporate freedoms, lower welfare — across the line. But the GOP are a party of free traders and running out of time to reverse negative voter sentiment ahead of mid-term elections. Trump’s motivation isn’t policy — it’s purely about the optics — about looking good and claiming a win in the “deal”. After threatening adversaries, exploiting strengths, any master of deal-making aims to bring them back to the table to negotiate a better outcome. That works for property deals, and even war,

but can it apply to the complexities of trading between nations? China’s imports from the US totalled $130bn last year, while US imports from China were more than $500bn. Trump has more cards to play, but so does China which has bankrolled bonds underpinning the US economic recovery. Meanwhile China has begun to make overtures to the estranged G7 members on countering US policies. If Trump was shrewd, he would be able to convert the bargaining position with China into a long-term win, bringing US allies into a bigger play, thrashing out demands on currency, IP, trade and investment with China that the EU, UK and Japan could also adopt. There are a few problems with that proposition, leading an administration that has lost trust and is renowned for incompetence. Trump has burned all key bilateral relationships with a scorched-Earth foreign policy after taking office. Tariffs aimed at several trading partners will provide a reverse of what he intended. In efforts to undo everything, he turned long-time allies into doubters and adversaries. In a world that is already growing in complexity and unpredictability, this Administration has added another layer of uncertainty and risk — even as he delivers on the promise to Trump’s base to “blow it all up”. As he and his team have demonstrated it doesn’t require a high degree of competence to do that.

Donald Trump. (Manuel Balce Ceneta/AP)

The void the US leaves in terms of international rule-making cooperation — imperfect as it was — will be filled, so keep watching … if the

Trump stuff hasn’t already worn you out. • Steve Spencer is a Director of www.freshagenda.com.au

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DAIRY NEWS AUSTRALIA JULY 2018

24 // MARKETS

Tide turns but more needed to lift confidence

GLOBAL IMPACT JOHN DROPPERT

THE NEW dairy season has just commenced, and there is already plenty to keep track of. We have seen some of the highest opening prices ever announced coincide with farmer confidence hitting a multi-year low, more farmers than ever changing processor and the outlook for purchased feed increasingly challenging to say the least. Throw in a great deal of investment in new stainless steel, and the ongoing policy and political debates; 2018–19 isn’t going to be boring. To pull these factors apart, Dairy Australia’s recently released Situation and Outlook report takes an in-depth look at farmer confidence (as measured by the National Dairy Farmer Survey) and recent dairy market developments, drawing out several key insights. The first is that confidence of farmers in their own business’ future has remained steady, whilst overall confidence in the industry has fallen. As part of a regular program to gauge farmer sentiment and priorities, Dairy Australia’s National Dairy Farmer Survey (NDFS) was conducted during February and March 2018. Drawing upon the views of 800 farmers across all dairy regions, the survey found overall farmer confidence has continued to slide. Only 47 per cent of farmers feel positive or very positive about the future of the industry; down from 53 per cent last year and a peak of 75

per cent four years ago. As was the case in 2017, a higher proportion of farmers were confident in the prospects for their own businesses, suggesting that their reasons for a general lack of confidence relate to external industry factors.

In addition to supply moderating, demand has improved, building a far more positive market picture than six months ago. Furthermore, the share of farmers who were happy with the current position of their own business actually increased from 23 per cent to 32 per cent over the past 12 months. This reinforces the contrast between the more positive view of factors closer to home, and concerns about the wider industry. Meanwhile, from a market perspective, conditions have continued to improve in recent months, largely as a result of weather influences dampening milk production in key dairy exporting countries. In addition to supply moderating, demand has improved; with numerous incremental events building a far more positive market picture than

was the case six months ago. In particular, cold weather played havoc with milk production in parts of Europe during the northern spring. The ‘Beast from the East’ saw cows housed for longer than usual and fodder shortages emerge, especially in Ireland. A tight product market (especially for butter) has created some price relief for European farmers, but weather forecasters are in turn predicting a hot, dry summer. New Zealand has also had its share of challenges, and whilst the forthcoming efforts to eradicate Mycoplasma Bovis will likely have a modest direct impact on the global milk balance, they cause significant regionalised pain, and consume a great deal of industry time and resources. Short-to-medium term challenges, combined with the acceptance that what analysts are calling ‘peak cow’ has been reached in New Zealand, suggest supply growth is likely to rely increasingly on yield improvements. Looking ahead, significant downside risks remain, however it is likely to take some time before global milk supply once again builds sufficiently to fundamentally disrupt markets. For Australian farmers, a better milk price this season has provided relief for some on the income front, allowing some progress on recovering the losses of recent years.

Key dairy commodity price indicators 7,000 6,000 5,000 4,000 3,000 2,000 1,000

ay 0 Se 9 pt 09 Ja n 10 M ay 1 Se 0 p 10 Ja n 11 M ay 1 Se 1 pt 11 Ja n 12 M ay 1 Se 2 p 12 Ja n 13 M ay 1 Se 3 pt 13 Ja n 14 M ay 1 Se 4 pt 14 Ja n 15 M ay 1 Se 5 pt 15 Ja n 16 M ay 1 Se 6 pt 16 Ja n 1 M 7 ay 17 Se pt 17 Ja n 18 M ay 18

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The Beast from the East’ played havoc with milk production in parts of Europe during the northern spring.

However, dry conditions across many regions through late summer and most of autumn have pushed the cost of key inputs higher. Hay, grain and irrigation water prices are all eroding margins and present significant headwinds for the season ahead. Late June opening price announcements and the treatment of sign on incentives versus base milk prices have reinvigorated farmer scepticism. Amidst these pressures, Dairy Australia’s forecast approach for 2018–19 season milk production is conservative, foreshadowing growth of around 1 per cent above 2017–18, for a total of around 9.4 billion litres. Incremental improvements to operating margins have delivered modest growth in milk production this season, and are expected to do the same in 2018–19, albeit restrained by increasing costs and ongoing farm exits. However, the data from the NDFS shows that many farmers need more than tweaking at the margins to remain confident about the broader industry around them. Major corporate transactions and the building of new milk processing capacity will likely unleash a further wave of changes to business arrangements and relationships through the supply chain. With dairy markets showing much better signs than many had expected this soon, 2018– 19 may provide the opportunity for the industry to rebuild farmer confidence. • John Droppert is senior industry analyst with Dairy Australia.

27/6/18 11:21 am

DAIRY NEWS AUSTRALIA JULY 2018

MANAGEMENT // 25

WHO:

Mick and Sophia Giumelli WHERE:

Benger WHAT:

Smarter Irrigation

RICK BAYNE

USING WATER in the right place at the right time is the key to future success for a young Western Australian dairy farming family. From Benger, two hours south of Perth, Mick and Sophia Giumelli are transforming their farm to reduce costs and the strategic use of water is making a big difference. They milk 370 mainly Holstein cows with a few crossbreeds on just over 200 hectares. They are predominantly a summer milk producing farm with irrigation. Production is good — clocking in at 2.8–3 million litres a year — but costs are high and the Giumellis are instigating changes to fix that. Mick was raised on a dairy farm half an hour away from their current farm, which was purchased in 2006. The home farm is still used as a run-off block. Staying in dairy has always been Mick’s priority. “I’m a farm kid and we’ve got four young children and we’d be ripping them off if they didn’t have those sorts of experiences,” he said. To do that they need to remain financially competitive. “We go for medium-sized cows, a multipurpose animal that can easily walk, breed and eat. We’re reasonably happy with our production but we can do it better,” Mick said. “We’ve got quite a high cost system that we’re trying to improve.” The farm is part of the DairyBase Farm Monitoring project and recently hosted a Western Dairy innovation day. Mick says the farm monitoring is providing a lot of good feedback, helping them to assess their system and adapt. “We’re on flat, heavy-clay soil so we’re bound to the times of year when we can produce milk.

Water loss causes change in thinking So far this season we’ve had 12 inches of rain and at this time of year it can get quite cold and miserable, so it can be pretty tough going. It’s not the best place to be operating cows in the middle of winter so we focus on a spring calving herd.” They came from a dryland autumn-calving system and changed it to suit the country. Mick said the data and support from Western Dairy were helping them to reassess other options and calving times. “We produce a lot of milk but we’re nowhere near the top 25 per cent of the state in terms of cost of production,” Mick admitted. Their feed costs are significant, both in purchases and conserving. They have been growing maize to boost home-grown feed but with mixed success. “We’ve had some success but also some not-successful crops,” Mick said. “Maize is pretty unforgiving in terms of cost if you get it wrong and that hindered us on a couple of occasions.” A Smart Irrigation trial has been conducted on the fam. “It’s not about costs per-se, it’s more about putting water in the right place at the right time and saving water which in turn saves money,” Mick said. “Water is becoming such a precious resource, more so than it was 20 or 30 years ago. We’ve got to focus on doing the right thing with it because I think there’s going to be more and more pressure on how we use it. We’ve got to get smarter.” The farm has an annual irrigation allocation of 440 megalitres. Last year they got 60 per cent of that; the year before 34 per cent. “We’ve got to adapt and manage around those things. It all relies on winter rain to fill up the dams,” Mick said. They pay a rate on all 440 megalitres and then pay a delivery right, with cost per megalitre rising during a lower year.

350 people attended Western Dairy’s Dairy Innovation Day at Mick and Sophia Giumelli’s Benger dairy farm.

Mick Giumelli, Mick’s parents Margaret and Peter, Sophia Giumelli and Sophia’s parents Tony and Karen Golding at Western Dairy’s recent Dairy Innovation Day.

The aim is to grow more dry matter with less water. During the trial they grew 25.3 tonne crop of maize last summer on just under five megalitres of water per hectare of surface irrigation. “We considered that a pretty massive achievement as we don’t have any reliable summer rain and if there is any there’s not a lot of it.” The maize had metabolised energy of 11.2 megajoules per kilogram of dry matter and a crude protein measure of 9.1 per cent. Water usage efficiency was 4.87 tonnes of dry matter produced per megalitre. Mick and Sophia will continue to embrace new technology in their quest for better water efficiency. They have completed an EM 38 survey of the centre pivot area to test for soil types and moisture and nutrient levels. “Those core samples give us an idea what you’re working with,” Mick said. They are also reducing the level of purchased pellets and instead processing their own who-

legrain to reduce costs. Improving herd fertility is another priority. “We’re not making drastic changes but the Western Dairy monitoring showed we’re not a textbook herd in terms of fertility,” Mick said. The six-week in-calf rate was lower than industry standards but overall conception rate was good at 54 per cent, a little higher than industry standard. The relatively young age of the herd – average 4.5 years – could contribute to that success. “Our focus now is to get more in-calf earlier,” Mick said. “We’re working on cow transition, improving feed pre-calving and getting their weight and condition right, minimising milk fever and sub-clinical milk fever to avoid the metabolic issues that come with that.” The 34-year-old wants to keep improving the farm and will continue to innovate. “It’s about using resources smartly and being prepared when things are tough, and then keeping options open for expansion and diversification.”

DAIRY NEWS AUSTRALIA JULY 2018

26 // MANAGEMENT

Teat-sealing heifers slashes mastitis rates STEPHEN COOKE

ROB AND Jan Mortlock have all but eliminated mastitis in their heifers after taking part in a teatsealing trial. The Mortlocks, who milk 850 head at Yanakie in south Gippsland, teat-sealed 150 heifers last year and 118 this year and recorded one case of mastitis. They plan to teat-seal 270 next year and 350 the following year. “We have teat-sealed cows before but not heifers,” Mr Mortlock said. “It proves it’s worth doing.” The teat-sealing trial was run by Zoetis, manufacturer of Teatseal, with the Tarwin Veterinary Group and other clinics in Victoria and Tasmania. The field trial involved 16 herds and 3555 heifers. A case of mastitis has been costed at $200/ head by the Tarwin Veterinary Group and heifers can lose a quarter for their entire life even if they catch the mastitis early. The cost of teat-sealing is $24/heifer. New Zealand farmers have been teat-sealing heifers for years and the Tarwin Veterinary Group had a trailer built in New Zealand specifically to

make teat-sealing easier. It replicates a herringbone design and fits five well-grown heifers at a time. The business has been teat sealing for one-and-a-half years. “Research over the last 10 years has shown teat-sealing heifers has worked but no-one wanted to do it. Heifers were too small to put in the dairy,” vet David Lemchens said. It requires three or four people doing yard work to get the heifers in, then one vet and three vet nurses undertake the procedure. They can do 450 in a day. The trailer is ideal for outblocks, where heifers are traditionally run with few facilities. Heifers are teat-sealed two months before calving. “Heifers take longer to calve so they are up and down in the mud,” Dr Lemchens said. He said one farmer had 160 heifers and due to a logistical problem could only have half teat-sealed. “Twenty-five per cent of the non-teat-sealed heifers later suffered from mastitis. In the teat-sealed mob, one heifer received it in one quarter.” Mr Mortlock was an immediate convert to teat sealing. “If you save 10 per cent of heifers from getting mastitis, you’re streets in front in future,” he said.

“We had at least 10 per cent getting mastitis so it pays for itself. An animal milking at 80 per cent of its potential is not making money.”

Jan and Rob Mortlock.

The specially made trailer owned by the Tarwin Veterinary Group to teat-seal heifers.

A qualified technician from the Tarwin Veterinary Group teat-sealing heifers.

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MANAGEMENT // 27

New lease of life for former DemoDAIRY RICK BAYNE

THE FORMER DemoDAIRY at Terang in west-

ern Victoria has been purchased by neighbouring farmer, Paul Moloney, who has started a five-year regeneration plan. DemoDAIRY was established in the early 1990s as a research and demonstration farm but its role in the industry changed as on-farm research projects were phased out, and demonstration activities were largely replaced by focus farms, leading the DemoDAIRY board to sell the property. The dairy hadn’t been used for 18 months and many paddocks were run down and while

Mr Moloney said reviving the farm will be a challenge, he’s confident he can make it work. The 161-hectare farm on the Princes Highway backs on to his existing farm of 190 hectares. However, the new farm will stand alone. “I want this place to grow enough grass so we’re not importing anything other than grain,” Mr Moloney said. “I want it to be self-sufficient.” The new enterprise will start on July 4 with 250 cows and will be run by a sharefarmer. Mr Moloney has rebuilt the dairy and started pasture renovations. “The first thing I did was gut the dairy and install new equipment,” he said. “The dairy hadn’t been touched for a long time and had been deteriorating before it was shut down. I

wanted to get back to basics and make it functional and easy to operate.” It’s been a hard summer with many pastures dying and Mr Moloney needed to re-sow about 20 paddocks that were in poor condition. He is using mainly Italian rye-grass, the same as his home farm, and also trialling vetch and oats on restored paddocks. Although the farm will now be a private enterprise, a small plot has been leased to Stephen Pasture Seeds to continue rye-grass trials. He also plans to invite the South Ecklin Dairy Discussion Group, of which he’s a member, to inspect the new-look farm. Mr Moloney hopes to sell the former administration and research buildings and have them

relocated from the site. He then plans to reclaim the land and build a hay shed, machinery shed and calf shed. “We’ve had a few enquiries but nothing concrete,” he said.

Paul Moloney.

Detecting cause of lameness the first step DEAN FRY

LAMENESS CAN be on par with multiple mas-

titis cases as one of the costliest animal health issues on a dairy farm. More than 75 per cent of all lameness in Australian dairies is related to non-infectious lesions, with White Line lesions being the most prevalent. An infectious lesion requires different treatment to a non-infectious lesion (i.e. Footrot). Antibiotics are an essential treatment for a clear case of Footrot (Infectious Lesion), however using them on a non-infectious claw lesion will likely do very little to assist the animal. As global pressure mounts to reduce the use of antibiotics in agriculture, it’s imperative to understand exactly what lesion your cows have to be able to develop a sound treatment and, even more importantly, prevention plan. The first step is the detection of lameness. When animals display an impaired locomotion to their walk (www.zinpro.com/lameness/ dairy/locomotion-scoring) it is demonstrating the first visual reference that the animal is in pain and is not as productive as she could be. Once lameness is detected, the feet need to be inspected. A higher percentage of issues is associated with their claws so the feet need to be safely picked up. More than 75 per cent of all lameness is associated with the rear foot with the lesion occurring on the rear outside claw the majority of the time. Infectious Lesion: Footrot

Footrot signs are inflammation, heating of the hock and often a pungent smell coming from the claws. The anaerobic bacteria that is responsible for Footrot needs a site of entry into the skin. Finding this can be done by using a gloved finger to swipe between the claws looking for any hard object that could cause a wound and removing it. If you are satisfied that it is Footrot, a course of prescribed antibiotics is recommended. Regardless of the lesion, early detection and treatment will lead to a quicker recovery. With Footrot, the cow’s defense mechanism is to wall off the infection internally. Once this occurs, antibiotics find it increasingly difficult to

reach the site of infection. Footrot in Australia is often elevated during wet and stressful conditions and when the animal is struggling to meet energy and mineral demands, in particular, glucose and Zinc. The immune system uses additional glucose when triggered. Ensuring enough metabolised energy is in the diet will assist the immune system. Zinc along with numerous other nutrients are also required. Zinc, an essential mineral, is not stored well therefore it is required as a daily supplement. Maximizing both the level and source of Zinc will help maintain healthy and effective skin (epithelial tissue). This will assist in preventing penetrations and improve the immune response if punctures do occur.

■■

on-farm management programs such as First Step, allowing review of diets for optimum levels of nutrients and detection of antagonists that are known to prevent essential mineral uptake to maximize the source response from both inorganic and Performance minerals. Both infectious and non-infectious

■■

lesions can be controlled with the right management and use of an optimized diet. Feeding proven performance trace minerals to your herd.

Contact 1800 946 776 for more information on lesions, prevention strategies or trimming. • Dean Fry is an account manager with Zinpro Australia.

Footbath

Running an antimicrobial solution in a deep, long, and well-maintained footbath “MAY” help. It will depend upon how well you are able to manage the footbath as to how effective it will be. The footbath will be compromised if: ■■ Cows walk straight into mud/manure after the footbath. ■■ The solution does not cover the entire foot to a depth of at least 15 cm. ■■ There are not two dunks in solution by each claw. Changing the solution after 150 cows have passed through when cows are muddy will help maintain the antimicrobial status of the solution. An ill-managed footbath may actually be worse than not using one at all, so please ensure that you know what lesion you are trying to prevent or control and run the footbath to current best practice. What is often overlooked is the prevention that can be done from within the animal. ■■ Maintaining an effective skin barrier and highly functioning immune system is imperative to the prevention of lameness of both infectious and non-infectious lesions. ■■ Ensuring your cows have enough energy, macro and micro minerals along with adequate vitamins is a well proven method. ■■ Ongoing research at Zinpro has delivered numerous repeated studies across many species of animals where a proven performance response has been seen. ■■ Coupled with this research, Zinpro provides

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DAIRY NEWS AUSTRALIA JULY 2018

28 // ANIMAL HEALTH

Do you have the facts on mycoplasma? APIAM ANIMAL HEALTH GEMMA CHUCK

MYCOPLASMA IN dairy herds is a topical issue. Much of the media coverage has related to farm biosecurity, management options and the decision to eradicate. This article discusses mycoplasma in relation to animal health: how does Mycoplasma cause disease in our herds?

unlike other bacteria, do not have a cell wall. There are many different species of mycoplasma but the species of interest in this article is Mycoplasma bovis. This mycoplasma is adapted to cattle and does not impose a human health risk.

What is Mycoplasma?

How does Mycoplasma bovis spread?

The mycoplasmas are a type of bacteria that,

M. bovis is very effective at evading the immune

I reckon if they could talk, they’d ask for it by name.

system. This results in some infected animals becoming carriers of this disease without showing any clinical signs for many months or years. Intermittent shedding of M.bovis by these carrier animals is associated with stress, for example at transportation, co-mingling, entry into the herd after calving and cold stress. The introduction of an asymptomatic carrier animal is considered the primary route by which M.bovis-free herds become infected. Transmission can be delayed making it difficult to identify the source of infection and outbreaks can occur in seemingly ‘closed herds’. Once a herd becomes infected, M.bovis can be readily transmitted at milking, with udder-toudder spread being the major route of infection. It can also be transmitted by aerosols, nasal secretions, nose-to-nose contact or indirectly via feed, water and housing. In young calves, ingestion of infected milk is a major route of infection. Aerosol transmission is also likely as once disease is established in a calf rearing facility it is very difficult to eradicate, suggesting ongoing transmission from older to incoming calves. Calves exposed to M.bovis-infected milk may become asymptomatic carriers themselves, thus continuing the cycle of infection when they calve into the herd as heifers. Can Mycoplasma bovis be treated?

If we could talk we’d be on TV.

And asking for Champagne with breakfast.

One of the features of mycoplasmas is their resistance to many types of antibiotics. Penicillins and other antibiotics target specific molecules in the bacterial cell wall, resulting in cell wall destruction and death of the bacteria. However, as M. bovis does not possess a cell wall this mode of action is ineffective, meaning that once an animal is infected with M.bovis there is little chance of a cure. Treatment of cows with mycoplasmamastitis is not recommended as these animals often remain intermittent shedders and should be regarded as permanently infected. Treatment of calves with tulathromycin (Draxxin®, Zoetis) has shown some success in experimentally infected calves. In outbreak situations it has shown variable results, most likely due to rapid disease progression and possibly delayed timing of treatment. The likelihood of recovered animals becoming subclinical carriers is unknown. Continued page 29 >

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ANIMAL HEALTH // 29

An unintended consequence ROD DYSON

CAMERON* WAS feeling comfortable.

The expansion plan for the family farm had gone well. He had secured a long term lease on the block next door, added another 50 cows (with plans for more), extended the dairy shed, and employed a labour unit to assist the family on the farm. The new season had started well. It had been a wet spring, but there had been very little clinical mastitis during calving and the spring, and the farm’s Bulk Milk Cell Count (BMCC) had sat comfortably below 150 000 cells/ml all that time. But as they moved into summer, things started to come unstuck. The new labour unit left at Christmas, and with a poor outlook for milk prices, the family decided to continue on without hired help. They seemed to be coping with the workload, although it meant there was often only one person in the dairy for milking. Then the number of clinical cases of mastitis began to steadily increase, although the BMCC had not changed. Cameron had taken the dairy from a 16-a-side swingover herringbone out to 28 units, and until now, it had seemed to be going well. He recognised that now, if there was only one person in the dairy at milking, there was likely to be considerable overmilking. During the upgrade, he had baulked at the cost of Automatic Cup Removers (ACRs), so he arranged to have them

fitted as quickly as possible. Confident that this would solve the problem, Cameron was frustrated that the number of clinical cases did not decrease. In fact, nothing changed — they continued to occur at the same rate! Fortunately, Cameron had milk samples from some new clinical cases of mastitis in the freezer, so the first step was to get those sent off to the laboratory. The lab reported most samples to be Strep uberis, which is an environmental bacteria that is also capable of spreading in the dairy during the milking process. Also, some quick data analysis showed that Cameron’s clinical mastitis case rate was now well above the Countdown trigger point of 2 cases per 100 cows per month during lactation! Armed with this information, we started our farm visit with a look at the environment, and as Cameron had assured us, things were now pretty dry in the summer, with little in the way of risky contaminated areas in either lanes or paddocks. At the afternoon milking, a Dairy Focus Mastitis Risk Assessment of the dairy resulted in a Total Mastitis Risk Score for Cameron’s milking process of 22 points — enough to put him in the “Medium Risk” category. The good news for Cameron was that the milking plant was performing well, the cows had excellent teat condition and were very comfortable during the milking process. But 11 points of Cameron’s 22 point risk score arose from significant issues with teat disinfection.

Due to the milking routine with only one operator, the delay after cups off until teats were disinfected was a minimum of 10 minutes, and often considerably more. The workload of a single person in the dairy also meant the application of teat disinfectant was rushed. We measured the delivery of the teat spray wands and found it would take 3 — 4 seconds to deliver the 20 ml of disinfectant that is usually required to get good coverage. The result was that coverage of teats with the teat spray disinfectant was reasonable, but definitely not great. This meant that after milking, our discussion would centre on a few key items. The 3 – 4 seconds delivery time for teat spray is really not negotiable. Countdown has taught us that unless we are using 20 ml per cow per milking, we are very unlikely to be getting good coverage. Also, if we have 3– 4 seconds, it allows a slower, careful spray technique, which is always better than a “quick squirt” or a “jiggle” beneath the teats!! Solving the delay issue was an interesting discussion. Eventually the agreed solution was to adapt the routine to operate the dairy as if it was two distinct sheds. The rushed routine also meant there was no consistent method for detection of clinical cases, meaning a significant risk of spread from cases not being discovered for a few days. It was decided

But 11 points of Cameron’s 22 point risk score arose from significant issues with teat disinfection.

to ensure an extra person in the dairy on regular basis to enable a herd strip for earlier detection of clinical cases. Implementing these changes would result in a Total Mastitis Risk Score below 15 points, and a “Low Risk” rating. A month later, things had improved dramatically. The BMCC was actually a bit lower, clinical cases of mastitis had “dried up”, now occurring at a rate well below the Countdown trigger point. The lessons here are firstly, whilst overmilking is often blamed for an outbreak of mastitis, in fact it is never the only issue, and ACR’s alone are unlikely to solve a mastitis issue. Secondly, teat disinfection is a cornerstone of mastitis control, and good application of teat disinfectant is a function of both timing and coverage of teats. * Names have been changed for this article • Rod Dyson is a Director of www.dairyfocus.com.au

< Continued from page 28

Pneumonia

Otitis media

Otitis media occurs when the infection spreads to the middle ear. This may be the primary sign

Septic arthritis can occur sporadically but also in outbreaks in calves. Animals usually present with sudden onset non-weight bearing lameness with joint swelling, pain and heat. Multiple joints such as stifle, hip, hock and elbow are frequently affected and calves often have a fever and loss of appetite.. Poor response to treatment is a common feature of mycoplasma arthritis. Diagnosis of M. bovis is challenging due to the asymptomatic signs and intermittent shedding of the pathogen. A herd screen PCR test can be performed on bulk milk as part of routine biosecurity measures. Early identification of the disease is critical if any form of control is to be achieved. Speak with your veterinarian about screening tests or if you are concerned about recurring cases of mastitis, respiratory disease, joint ill or otitis media. • Gemma Chuck is an adviser with Apiam Animal Health.

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Many mycoplasma mastitis infections are subclinical, meaning an infected cow may not show any abnormal signs, with an ‘average’ somatic cell count and milk production. Cows of any age or stage of lactation can become infected, including heifers and dry cows. Clinical mastitis is non-specific but typically involves multiple quarters and a drastic reduction in milk production. Signs of sickness in the cow herself may be mild. Affected quarters may be swollen, usually non-painful and the changes to milk range from mildly abnormal to gritty or thick discharge and may be brownish in colour. A classic feature is a history of recurring mastitis due to resistance to treatment with antibiotics. Return to production is usually slow between cases.

T S

Mastitis

of infection in calves. In early cases, calves remain alert but as the disease progresses they develop a fever and loss of appetite. Signs include drooping of the affected ear and signs of ear pain such as head shaking, scratching or rubbing the ears. One or both ears can be affected. If the ear drum ruptures, a tilt of the head to the affected side may be evident. Severely affected animals may also show signs of circling, drifting and meningitis. Drooping of the upper eyelid(s) may lead to dry eye in one or both eyes.

There are multiple manifestations of M. bovis, the common ones being described below. They may feature as the sole presenting sign or can occur in combination with each other.

What are the signs of M. bovis infection?

DAIRY NEWS AUSTRALIA JULY 2018

30 // MACHINERY & PRODUCTS

GRUNT JOHN DROPPERT AS REGULAR readers may know, there’s something of a restructure happening in both my thinking around machinery, and actual ownership. I don’t want to over-sell this: I’m a hobby farmer. But with a few projects nearing completion, a few mistakes to clean up, and my newfound appreciation of two wheel drive simplicity, some items are on the chopping block. The upshot of course, is that makes room for others! Grand plans aside, I’m also a fan of bargains. When a machine comes up for sale that’s sharply priced, and not too far out of the way, a business case often follows. And so it came to be that I was recently half an hour from home checking out a 90 hp 2WD Case International 895 XL. These machines are classics, with the guts going back to the 1970s, in a lineage that with gradual cosmetic updates, outlasted the merger of International and Case before being passed on to McCormick and hanging around until the early 2000s. They were made in the UK at Doncaster, and due to their very compact size were popular utility and front end loader tractors.

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DAIRY NEWS AUSTRALIA JULY 2018

MACHINERY & PRODUCTS // 31 One discussion thread on a popular online forum auspiciously begins with the question of whether these tractors are ‘as bad as everyone says’. In part, it seems that being a basic, lighter machine sold at a budget price point attracted the wrong type of buyers, and many were put to jobs that the heavier German-built International models or later Maxxum tractors were better suited to.

There is no interior trim to speak of, and what’s left of the radio and air conditioner is mainly a bundle of wires and plastic ducting hanging from the roof. Fortunately, I’m not that stupid, since I’ve got a Chinese wheel loader for my heavy work. Neither, it seems, were the previous owners of this tractor — since it doesn’t have a loader. The history was hard to untangle, as the owner purchased it from a deceased estate, so much is unknown. As best I can tell, it has spent most of its life mowing roadsides on a council contract, operated by someone who (if the bumper sticker is anything to go by) felt strongly about the development of Portsea by millionaires. There is no interior trim to speak of, and what’s left of the radio and air conditioner is mainly a bundle of wires and plastic ducting hanging from the roof.

Most strikingly, it has at some stage been very thoroughly painted yellow then later badly repainted to some shade of red. The result is more of a flecked orange hue, made all the classier by the mailbox stickers used to reproduce the model number on the hood. No expense spared. Despite all the painting over the years, it also features the classic 1980s British tractor rust package, sporting a decent hole on top of the hood, and heavy corrosion of the cabin tinwork. Priced accordingly, this machine is of course right up my alley. And while the digital dash shows random and meaningless numbers that might as well be V/line train performance data, the rest of the machine has so far been difficult to fault mechanically. I have to check the oil every time I start it, as the lack of leaks freaks me out. It’s smooth to drive and turns on a ten cent piece. The gearbox is a bit sensitive and I haven’t worked out the shift pattern yet (or located a manual), but for work where you can find a gear and stick to it, this is fine. Compared to my Ford 7700, it’s like going from a Landcruiser to a Falcon; I can’t believe people drive tractors so close to the ground, let alone put loaders on them. But for the money, if this is the tractor nobody wants, I’m happy to be nobody. • John Droppert has no mechanical qualifications whatsoever, but has been passionate about tractors since before he could talk and has operated many different makes and models in a variety of roles for both profit and fun.

DeLaval launches new robot milker DELAVAL HAS unveiled its new VMS milking system, the V300, across all key global markets including Australia. The company said the VMS V300 has a 99 per cent teat spray hit rate, 10 per cent higher capacity meaning more milkings per station, up to 50 per cent faster attachment time, and lower running costs. The system has a 99.8 per cent attachment rate and capacity to milk more than 3500 kg per day per robot, according to DeLaval. ■■

■■

The system comes with: DeLaval InControl, a new user interface allowing access to information and control of the system remotely. DeLaval PureFlow, a new transparent teat preparation cup, which provides better stimulation to increase milk flows. DeLaval InSight, which provides the latest vision technology for a smooth, fast and accurate attachment.

“highly adaptable” to Australia’s grass-based systems. DeLaval CEO, Joakim Rosengren, said the design of the new VMS V300 system “has farmers and their challenges at its core, allowing farmers to do more with less”. In addition, the DeLaval InService All-Inclusive customer program is a solution where service, consumables, and maintenance services are available for a fixed price. DeLaval InService provides farmers with time to focus on the business of dairy farming with the assurance that every time they milk, the system’s performance is optimised, Mr Thompson said.

DeLaval Oceania Sales Director, Justin Thompson, said the level of data that can be retrieved for each teat via the individual quarter milking and then automated to ensure complete milking every time would provide farmers with a new level of performance. The system has been extensively tested on farms in Europe and Mr Thompson said it was

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32 // MACHINERY & PRODUCTS

Polaris extends side-by-side range MARK DANIEL

POLARIS HAS added a new flagship model

(XP1000) to its Ranger series of utility side-bysides. A ProStar 1000 engine developing 82 hp is mated with a new clutch and redesigned driveline; the clutch is a large-ratio unit for low-speed drivability, and the driveline uses the strongest belt ever fitted to a Ranger. Redesigned under-hood air intakes and a new clutch cover increase the air flow for cooler, longer belt life, and improved geometry produces less friction for increased efficiency and a quieter ride. VersaTrac (turf mode) enables the rear wheels to rotate independently, allowing tighter turns and reduced tearing of delicate surfaces such as fine turf or compacted pathways. Using a dash switch, the driver can toggle from turf mode to 2WD (locked rear diff) to all wheel drive. A new one-piece chassis increases stiffness and reduces flexing, making the machine stronger and more durable. The ride is enhanced by 28 cm of suspension travel, and 27-inch tyres fitted to cast aluminium rims give greater height and 33 cm of ground clearance — an increase of 8 per cent. For precise handling, the vehicle has a reduced steering ratio that gives a tighter turning radius;

and a new front sway bar offers a more responsive ride and improved manoeuvrability. A new distinctive grille behind an enlarged front bumper is designed for added protection, and a new full-body skid plate provides extra protection and durability. At the rear, the cargo box has 11.5 per cent more volume, welded steel corners for stiffness, lock-and-ride rails, eight stake pockets, moulded in-box divider slots and large, reinforced D-rings. The Ranger XP 1000 has 1134 kg of towing capacity. Standard on all Ranger XP 1000 vehicles, the Polaris engine braking system (active descent control or ADC) ensures smooth, controlled descents on steep inclines with or without a load. ADC uses an electromagnetic coil, applying a magnetic force to a bi-directional overrunning clutch, that works with a pair of plates connected to the output hub to the front wheels and crown wheel with lock-up creating front-wheelinduced engine braking. Working in tandem with the rear-wheel EBS system, this achieves 4-wheel engine braking. The vehicle also has three-mode throttle control — performance, standard and work modes — that control the power. Getting in and out is easier with 12.7 cm more clearance, and there is more legroom and more comfortable seats.

The new Polaris Ranger XP1000.

A user-friendly dash layout includes a digital/analogue gauge and four pre-wired accessory switch locations for easier accessory fitment.

A new flip-up passenger seat offers more space for buckets or the farm dog, and six cup holders should keep everyone happy.

DAIRY NEWS AUSTRALIA JULY 2018

MACHINERY & PRODUCTS // 33

Blue light help fills the vat MARK DANIEL

OUR MOODS can be influenced by the season:

think about long summer evenings or short winter days and see which makes you smile. Our in-built adjustment to the changing seasons — the Circadian Cycle — is controlled by melatonin, a pineal hormone produced during the hours of darkness, its pattern mimicking the light or dark phases over a 24-hour period. In doing so, it acts as the daily decoder of seasonal changes in day length, and to regulate the annual breeding cycles of seasonally breeding animals. Light therapy has been used for many years in the equine breeding industry, by keeping mares in loose boxes with overhead lighting to inhibit melatonin production, so influencing breeding cycles to align with the traditional horse birthday of August 1 each year in the southern hemisphere. As long ago as 1978 it was reported that long summer days had a stimulatory effect on milk yields, with studies showing that 16-hour days followed by 8-hour nights could result in yield increases of up to 10 per cent. This increase is thought to be linked to a photo-stimulatory increase in the insulin-like growth factor1 (IGF1). This is particularly relevant given milk shortage and reducing sustainability in the global herd of 252 million cows, 50 per cent of which are grass fed and maintained outdoors. Intensive indoor systems have seen production gains of up to 10 per cent from using light therapy, so can this science be transferred to pastoral-based systems? Dr Barbara Murphy, founder of Equilume, set out to trial light therapy in dairy cows, working with researchers at Teagasc in Cork, Ireland; she developed the Bovine Light Mask. Early research was into understanding how much blue light was required to supress melatonin, equivalent to overhead lights during the evening.

Then came the Bovine Light Mask that uses short-wavelength blue light; trials showed an output of 225 Lux largely mimics the effects of lights-on. That trial had 40 dairy cows in two groups, one as a control with no light therapy, and the other fitted with the light masks that delivered the blue light to the animal’s right eye. Masks were fitted to the group on the day of

calving, with the light source active from 5 pm to midnight daily. Production was monitored for the first twelve weeks of lactation, the results showing an increase of 9 per cent consistently over the first 12 weeks of lactation. Additional trials investigating the use of the mask on winter calving herds are nearing completion and we will learn about those results soon.

Ongoing research points to more applications, e.g. fertility, growth, health and welfare. The device is still at the prototype stage, but it won the Sprout Agritech Global Growth Strategy Award at the recent Fieldays Innovation Exhibit in New Zealand. Murphy says the mask will sell in New Zealand for about NZ$80.

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DAIRY NEWS AUSTRALIA JULY 2018

34 // MACHINERY & PRODUCTS

What to look for in a feed mixer UNIFORMLY MIXED feed components provide better nutrition, improved feed efficiency and cost, and the opportunity to reduce wastage. In dry times, when much of the feed can be purchased off farm with higher costs, efficiency

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Our twin capable of lifting bales up to 1300 kg and gently places the ram bale lift intosystem the chamber. places the bale into the chamber. Roto cut and fine chopped bales can be held up over the chamber to remove Rotoand cutwrap and fine chopped bales can be held up over the chamber to remove net net and wrap Wide dual sided feeding cradle, heavy duty roller chains and protected shafts Wide dual sided feeding cradle, heavy duty roller chains and protected shafts to minimise wrappage. to minimise wrappage. High torque hydraulic motors with 1 ¼ output and 40mm drive shafts High torque hydraulic motors with 1 ¼floatation output and 40mm Heavy Duty axles and hubs with wide tyres ( on drive trailedshafts models ) Heavy Duty axles and hubs with wide floatation tyres ( on trailed models )

WITH WITH OUR OUR RANGE RANGE OF OF 3PTL, 3PTL, 22 BALE BALE TRAILED, TRAILED, TROUGH TROUGH AND AND THE THE NEW NEW MULTI MULTI BALE BALE FEEDERS FEEDERS

WE WE HAVE HAVE THE THE RIGHT RIGHT BALE BALE FEEDER FEEDER FOR FOR YOU YOU www.mcintosh.net.nz www.mcintosh.net.nz

STRENGTH / QUALITY / PERFORMANCE STRENGTH / QUALITY / PERFORMANCE

FOR MORE INFORMATION OR TO FIND OUT YOUR NEAREST DEALER PLEASE CONTACT: FOR MORE INFORMATION OR TO FIND OUT YOUR NEAREST DEALER PLEASE CONTACT:

03 5625 1522 03 5625 0418 5151522 510 0418 515 510 3818 86 ROBERTS CRT, DROUIN 86 ROBERTS CRT, DROUIN 3818 Phone Phone Mobile Mobile

is even more critical. Shane Ryan, Inlon’s Strautmann Product Manager, says when purchasing a feed mixer, farmers should ensure the model will suit Australian conditions. “Aussie farmers often paddock feed, yet many mixers are designed for the large European barn-feeding market, which has less need for strong suspension or heavy duty tyres,” he said. Mr Ryan said the German designed and built Strautmann Verti-Mix has been a proven performer in Australia for more than 28 years. “Its large tyres and tandem sprung axle system are perfect for Australian paddock conditions,” he said. Mr Ryan said power requirements and the speed of mixing are key points to consider. “Strautmann’s Vario2 mixing augers achieves more efficient and faster mixing of fodder. “The unique stepped flight design gives fast low-horsepower mixing, saving both time and money. “Tests comparing traditional pure smooth spiral augers with the stepped flight auger revealed considerably less power required with the new design. This is due to the steps lifting and loosening the fodder as it mixes.” Mr Ryan said speed and efficiency are important, but the mixer must also thoroughly mix the components. From breaking up whole bales and cutting hay and straw, through to incorporating silage, grain, minerals and concentrates, the challenge is to create a uniform feed ration without over processing, he said. “Naturally, you will want your mixer to have a long operating life. “The Verti-Mix stainless steel wear strips prevent auger wear that otherwise occurs, while the 8 mm wall thickness gives 2 to 3 times the life of the 5 mm material often found in other brands. “The 20 mm steel floor is also designed for longer life. “A robust gearbox gives durability through a large-sized pair of tapered roller bearings, double sealing, a large grease chamber, and oil bath for the planetary reductions, thus extending the maintenance intervals.” Mr Ryan said the Verti-Mix provideds flexibility. “With the patented knife system, Verti-Mix options include multiple knife configurations, blade angle, two knife sizes and bale-cutter mounts. “The Vario2 auger can be adapted to your requirements, whether predominantly straw and hay bales, silage or high grain mixes.” Strautmann has a range of discharge door and conveyor options. The standard 1.24 metre side conveyor can discharge into feed troughs or feed rings or onto the floor. The Australian developed 3.5 metre long conveyor is designed to fill self-feeding field bins. With sizes from 10.5m3 to 45m3, in single, twin and triple auger configurations, there is a Strautmann suitable for all applications, Mr Ryan said. Visit www.strautmann.com.au or call 1800 772 407 for more information. • This article was supplied by Inlon.

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