Dairy News Australia - October 2019

Page 1

Fresh Milk Holdings snaps up Coomboona PAGE 4

FEED TESTING POINTERS: PAGE 29

OCTOBER, 2019 ISSUE 108 // www.dairynewsaustralia.com.au

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DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 3

Income hit hard in challenging year AVERAGE EARNINGS by dairy farmers in

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he application of whole farm analysis Victorian farm businesses. NEWS ���������������������������������������������������� 3 – 28

OPINION ������������������������������������������������������� 6 FEATURES ����������������������������������������� 14 – 17 Approximately 3,520 dairy farms in Victoria produced 5.57 billion litres MARKETS ��������������������������������������������������25 of milk in 2018-19. SPRING PASTURE FEATURE �� 26 – 27 ANIMAL HEALTH �����������������������������������29 MACHINERY ����������������������������������� 30 – 34

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Victoria plummeted last year, according to a new report that surveys a sample of 75 farms across the state. Northern Victoria was hit particularly hard, with the worst economic performances in the 13 years the Dairy Farm Monitor Project has been running. The top performing farms in the project have shown timely decision-making combined with a business analysis approach were key strategies to managing the dry conditions throughout the 2018–19 financial year. While profits were mixed across the regions, the project reported average earn- farmers surveyed remained constant at an Workshops organised by Agriculture ings before interest and tax were $85 000 in average of 357 cows. Victoria and held in Echuca and Shepparton 2018–19, half of the level set the year before. Milk price improved 6 per cent to $6.13/kg last week broke down the statistics from the When interest and lease costs are con- MS compared to the previous year, partially report and began a discussion about what sidered, average net farm income across the offsetting the increased costs. strategies could be learned from the last year. state fell to $24,000, the fourth lowest in the “Following a challenging 2018–19 season, Although warned that the future could not project’s history. more than 85 per cent of farmers predicted be predicted, consultants pointed out there Agriculture Victoria’s Farm Business their farm profit will improve for 2019–20 were a number of learnings from the experiEconomist Claire Waterman said there was underpinned by strong expectations for ence of the surveyed farms, including doing a significant variation in profitability across improved milk price and stable or improving farm basics well, early planning, locking in milk production,” Ms Waterman said. the three dairy regions of Victoria. important feed and water decisions and being “The dry conditions have led to a 20 per The report was prepared by Agriculture flexible according to the changing patterns of cent increase in variable costs as a result of Victoria, in collaboration with Dairy Australia. the season. higher irrigation water, concentrates and fodder prices,” Ms Waterman said. “Farmers In 2018-19, 61% more of participant farms (46 feed, of the 75) Farm profit were among the lowest recorded over also spent on making homegrown achieved a positive EBIT the 13 years of the project including fertiliser, hay and silage-making 12% costs.” 2017-18 2018-19 Across south west Victoria’s survey results, $159k $85k 10% earnings before interest & tax net farm incomeAverage improved on the previous 8% year to $27 000 yet remained below the long$50k -$24k term average. Average net farm income 6% In the north of the state, net farm income 4% 2.5% the lowest 0.7% fell to –$85,000, level in the 13-year Average return on total assets history of the project. 2% Across Gippsland, net farm income reduced 0.4% -3.5% 0% return onconditions equity to –$15 000 with Average varied seasonal and profitability results. -2% Despite the increased costs and earlier 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 culling in some regions, herd size among the Farm profitability has been influenced by North South West Gippsland Dry seasonal conditions continued with annual rainfall below the long-term average High input costs provided challenges for Victorian dairy farms

tor Project farm locations 2018-19

uth West

Gippsland

Town/Cities

anges

rage

Below average

Very much below average

Lowest on record

Farm profits expected to improve (86% of responses)

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Dairy Farm Monitor Project is provided with funding and support from the Victorian Government and Dairy Australia. primarily through partnerships between the Agriculture Victoria, Dairy Australia and service providers. Refer to the Dairy Farm Monitor Project Victoria Annual Report 2018-19 for further information - www.agriculture.vic.gov.au/dairyfarmmonitor

ent of Jobs, Precincts and Regions Melbourne 2019. Unless indicated otherwise, this work is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. it creativecommons.org/licenses/by/3.0/au ommons Attribution 3.0 Licence that you must give credit to the original author who is the State of Victoria.


DAIRY NEWS AUSTRALIA OCTOBER 2019

4 //  NEWS

Big losses force shakeup at Fonterra FONTERRA AUSTRALIA has moved to reas-

sure suppliers it is still looking for more milk after media reports circulated that the international company was scaling down its demand for milk in Australia. Fonterra Australia managing director, René Dedoncker, said there would be no change or impact to Australian farmers following the announcement of the Co-operative’s new strategy, and Fonterra had no plans to exit the Australian operation or pull back on milk collection. “Our Consumer and Foodservice business is a high-performing business, delivering strong returns and is a real star. “While the Ingredients returns have been impacted by drought, less milk, and greater competition, we have refocused our Ingredients business to build on our strong customer partnerships to accelerate paediatric (nutritionals) and value-add ingredients.” “We’ll continue to pay our own way in Australia, offer a competitive milk price to our farmers, and deliver a sustainable return to our shareholders,” Mr Dedoncker said.

The NZ dairy giant posted a $NZ557 million ($A514 million) loss partly related to the drought across the ditch. The dual-listed dairy processor said an increase in Aussie milk prices and input costs due to the big dry had necessitated plans to reduce what is the company’s largest milk pool outside NZ. Fonterra’s investments in China, Brazil and Venezuela were written down by a total $NZ547 million, while it took a $NZ50 million hit against its Australian operations in FY19, with drought playing a major role. Chief executive Miles Hurrell said Fonterra would start rationalising its off-shore milk pools over time. The amount of milk collected from Australian farmers in the 2018–19 season was 120 million kilograms of milk solids, 33 million kilograms or 22 per cent lower than the year before. Mr Hurrell maintained Fonterra would not completely back away from Australian milk. “(While we will) focus on New Zealand, that doesn’t mean it will be the extent of our business,” he said on Wednesday. “The drought has

played havoc for Australian dairy farmers and the Australian farmer community … and we’ve made tough decisions. “One of those decisions was the closure of the 108-year-old Dennington plant in south-west Victoria, which cost Fonterra a total $NZ54 million in redundancies and plant and equipment impairments.” Fonterra, which delayed its full-year results announcement so auditors could calculate the unprecedented size of the one-off hits, made the largest single adjustment of $NZ210 million against its New Zealand operations. Fonterra fell short of its $NZ800 million debt reduction target for the financial year, though the $NZ633 million sale of its stake in drug supplier DFE Pharma this week will help it hit the target in FY20. Mr Hurrell said Fonterra had been forced to reassess the value of its assets by changing conditions everywhere. “Many of these calls were painful, but they were needed to reset our business and achieve success in the future,” Mr Hurrell said. “We can’t ignore that we had a number of challenges across the year — these included

Australia.” Fonterra, which scrapped its final dividend and could sell some of its Chinese farms, is looking to refocus closer to home. The company will shift from two central businesses — ingredients and consumer/food service — to three geographically split operations: Asia Pacific, Greater China, and the balance of its worldwide interests. Fonterra is looking for a chief executive of its China operations and also a new global chief operating officer, with Robert Spurway leaving Fonterra amid the transition. “Prior to joining Fonterra, Robert held several CEO positions and he now wants to fulfil his passion for directly running a business again,” Mr Hurrell said. Fonterra’s total revenue edged 1.6 per cent lower to $NZ20.1 billion, but the dual-listed company’s normalised earnings slumped 9.2 per cent. The company’s ASX-listed shares fell 0.66 per cent to $A3.01 by 1022 AEST on Thursday, having lost more than 30 per cent of their value so far in 2019. Fonterra’s stock is less than half the value of the six-year peak of $A6.10 reached in January 2018.

TORRUMBARRY FARM SOLD TO COOMBOONA OWNERS A $20 MILLION Torrumbarry farm sale has put dairy back in the headlines — but for the right reason. The country’s biggest dairy farming operator — Australian Fresh Milk Holdings — has signed an undisclosed deal to acquire the 2051 ha Torrumbarry Estate, which was listed for about $20 million. AFMH is understood to have picked up a further 810ha, made up of several holdings, of adjoining land as part of the biggest land deal in northern Victoria since the

same company splashed out $46 million at Undera late last year. It can also be seen as a massive vote of confidence inthe dairy industry that players on this scale are still prepared to invest, and invest big, in the industry. Torrumbarry Station is the second major AFMH purchase in Victoria in the past year, having snapped up Coomboona Dairy at Undera, between Echuca and Shepparton, for $46 million. AFMH is a partnership between the

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Moxey and Perich families, with Freedom Foods holding a 10 per cent stake. Coomboona, which runs 2500 dairy cows producing about 30 million litres of milk annually, was previously owned by retail giant Harvey Norman but was placed in voluntary administration in March and failed to sell at auction in September. Freedom has a specialty UHT plant in Shepparton which it is currently expanding and has been in the market for expanded milk supplies.

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AFMH also has a large dairy operation in the Lachlan Valley 300 Kms west of Sydney and was reportedly forecast to produce more than 150 million litres of milk last year It also operates the fully-integrated Moxey Farms dairy business at Gooloogong in central west NSW. Torrumbarry Estate runs about 1100 dairy cows, includes about 800 ha of developed irrigation. - With The Weekly Times

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DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 5

Support for Saputo takeover THE COMPETITION watchdog won’t oppose

Saputo’s takeover of Lion’s Tasmanian cheese business, saying most local farmers think there will still be enough buyers to support prices. The Australian Competition and Consumer Commission last month expressed fears that dairy farmers could feel a price squeeze from the deal, but on Thursday said many had expressed strong support for Saputo’s investment in Tasmanian cheese production. "Most farmers were not concerned about the transaction, and told us the remaining milk processors will keep price and non-price terms competitive," ACCC deputy chairman Mick Keogh said. "Ultimately, and on balance, we do not think this acquisition is likely to have the effect of substantially lessening competition.

"While Mondelez-Cadbury, Lactalis-Parmalat and a small Lion-owned fresh milk plant in Hobart will still operate in Tasmania, Mr Keogh warned Thursday’s decision did not set a precedent for future merger or takeover approvals. "The ACCC acknowledges that there is a significant degree of concentration in the Tasmanian dairy sector," Mr Keogh said. "Any further consolidation of dairy processors would cause significant concern. "Saputo, which operates a milk processing plant at Smithton in Tasmania’s northwest, will increase its market share to about 35 per cent with the acquisition of Lion’s facilities in Burnie and King Island as proposed.” The Canadian company will also add the South Cape, King Island Dairy and Tasmanian Heritage brands to an Australian stable

Saputo boss, Lino Saputo.

that already includes Coon, Cracker Barrel, Devondale and Sungold, following the $1.3 billion purchase of Murray Goulburn last year. Mr Keogh said the ACCC also examined the impact the sale by Kirin-owned Lion would have on the supply of cheese in Australia. "Lion focuses on premium speciality cheeses

and Saputo focuses on everyday cheeses," he said. "We considered that a combined Saputo-Lion would face continued competition from domestic cheese producers, supermarket private labels, and cheese importers."

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DAIRY NEWS AUSTRALIA OCTOBER 2019

6 //  OPINION

EDITORIAL

Report points to diverse industry

Big Moo is a gentle giant GOULBURN has its Big Merino and Ballina the Big Prawn. While Robertson dug up the Big Potato. But none of these compare to Glencoe’s Big Moo. Alive and breathing, he runs rings around all the other plastic and/or corrugated icons of the imagination. Big Moo is a gentle giant — a now nine-yearold steer — who captured the hearts of his owners, Joanne and Phil Vines, in the depths of South Australia’s Lower South-East, when he was just a little calf. A littler calf originally destined for the freezer. “We raise calves for meat and Big Moo came to us as one of those,” Jo explained. “He was quiet and gentle and it got to the stage where one of us said to the other ‘there is no way we can put him in the freezer’. “And here he is nine years later,” she said. “It was his temperament that made us keep him and then he just kept growing,” Jo laughed. Growing beyond belief because Big Moo was born with gigantism, a random genetic condition caused by an overload of growth

hormone produced by the pituitary gland. The couple had no idea he had the condition, nor that he would grow to around 190 cm tall (he could be 5 cm each side) and weigh in a hefty 1.5 t. His appetite is also hefty to match, and Big Moo is currently eating his way through $100 worth of lucerne, grain and supplements — every week. “We estimate he is around 1500 kg but he is so big we can’t get him through a crush,” she laughed.

Advertising Max Hyde 0408 558 938 max.hyde@dairynewsaustralia.com.au Editor Geoff Adams (03) 5820 3229 editor@dairynewsaustralia.com.au Dairy News Australia is published by Shepparton Newspapers Pty Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.

Regional editor news@dairynewsaustralia.com.au

The latest Victorian Dairy Farm Monitor Project report is an interesting reflection on the state of the industry and reflects the diversity of the sector across the nation. The authors of the report have pointed out how dairy farm businesses are going through different experiences in the same year. For anyone in the north of the state, 2018–2019 was a shocker. The report found the results were the worst since the project started, although it needs to be pointed out that this represents just 13 years. High water and feed prices, and low rainfall, contributed towards a year when very few of the surveyed farmers could get a return on equity. Slightly better weather in the south west of Victoria enabled farmers to generate extra feed and with improved milk prices, the surveyed farms generally improved their economic position. Gippsland, once again, has proven to be not a homogenous region, with the western zone getting just below average rainfall, while in the east the rain couldn’t be relied on. Average profit figures for Gippsland were down. At the time of going to press, we were waiting for the NSW report, which is likely to show an industry impacted by the ongoing drought. The figures emerging from these surveys indicate how weather dependant the industry remains, despite attempts to control inputs, like water and feed. Processors could add that prices are at a relative high, but that is small comfort when costs are eating away at the margins. Consultants are encouraging farmers to try to plan ahead, lock in feed and water costs early, maintain milk production, aim for the best value out of purchased feed and reduce waste.

Publisher Shepparton Newspapers Pty Ltd Printed by Newsprinters Pty Ltd Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address PO Box 204 Shepparton, Victoria 3632 Australia

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Dairy News Australia welcomes contributions from stakeholders in the dairy industry, and particularly from organisations wishing to advance the industry. Contributions and photos can be sent to: editor@dairynewsaustralia.com.au Letters to the editor on topical issues are also welcome. Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication.


DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 7

Farmers look for southwest rain SOUTH-WEST VICTORIA is emerging as

Australia’s dairy region of choice, with an influx of farmers looking for a potential safe haven from drought conditions. While many sold dairy farms have been converted to beef or sheep over the past year, the trend is starting to reverse with more interest from dairy farmers and corporates and fewer existing farmers putting their properties on the market. Several dairy farmers from northern Victoria, South Australia and New South Wales have relocated to the area and that looks set to continue. The Warrnambool branch of Charles Stewart and Co sold 16 dairy farms last financial year, a higher than usual figure. While 13 of these properties went to beef and some sheep, the final three sales of the year stayed in dairy. Sixty per cent of the farms not going back to dairy were bought by locals wanting to expand their beef and sheep operations. Forty per cent were purchased from farmers outside the region chasing seasonal security and feed, including purchasers from South Australia, central and northern Victoria and Wimmera. In many cases

it was to supplement existing operations for seasonal security. The last three dairy farms sold last year were to continuing dairy operations, with purchasers from north-east Victoria, south-east south Australia and one local. “We had 13 in a row to non-dairy but as soon as people got a whiff of the new prices the tide started to turn, Charles Stewart and co Warrnambool director Nick Adamson said. “That has continued into this financial year, though we don’t have the range of properties for sale at the moment,” he added. Most farms selling to grazing went for $4 – $5000 an acre. “Graziers wanted the land because it was good value and the northerners were chasing feed and water,” Mr Adamson said. The demand was also fuelled by a lack of grazing properties on the market. Mr Adamson said there wasn’t such a large supply of dairy farms this year, a sign that dairy farmers are more positive. Those on the market are expecting $6000 or better. “There’s a sniff that it’s on the way up; there’s more confidence in the industry.”

Mr Adamson said. Mr Adamson said he expected the Warrnambool experience was being replicated in other areas. WestVic Dairy executive officer Lindsay Ferguson said the trend of northern farmers showing interest in the region had been identified late last year. “Anecdotally, we hear that there is a fair number of farmers relocating to the area, although we don’t have specific figures,” he said. A survey at the start of the year showed confidence in the region was at its lowest level but Mr Ferguson there had been an upswing of positivity during the year. Mr Ferguson said WestVic Dairy was working with industry stakeholders in identifying dairy farmers new to the district and making them aware of services and support. “There are quite a few management issues here that differ from

the drier regions and we are keen to hear from any newcomers,” he said. The latest Dairy Australia Situation and Outlook report says a timely autumn break has provided a kick-start for south-west Victoria, buffering the impact of high purchased feed costs. However, cashflow remains an issue for many farmers, and milk production has continued to slip in year-to-date terms as culling is carried out. Overall, Australia’s milk production trails 2017–18 levels by 6.7 per cent, with south-west Victoria exceeding production expectations. In July Victoria’s production was down by 7.1 per cent, while the WestVic region declined by 6.4 per cent. The Situation and Outlook found 68 per cent of WestVic respondents made a profit in 2017–18, but this year 6 in 10 farms expect profit levels to be lower than the five–year average.

STRONG INTEREST IN PROMINENT FARM The sale of a prominent Cooriemungle dairy farm could be the barometer for farm sales this season in south-west Victoria, and the signs are looking good. Selling agent Michael Stewart of Charles Stewart and Co said there had been very strong interest in the farm. “We’ve had very strong interest in the property from dairying interests and also beef and sheep from the local region,

all over Victoria, South Australia, New South Wales and as far as Queensland,” Mr Stewart said. “It has been a terrific cross section of interest and we’re delighted with it.” The expression of interest process has closed and Mr Stewart said the family was hopeful of a positive result. “Because of the quality, presentation and productivity of the property it was

always going to attract strong interest. It’s an indication that things are starting to look far more positive and there’s light at the end of the tunnel for the industry.” The farm was put on the market after the deaths of dairy farmers and Port Campbell surf lifesaving volunteers Ross and Andy Powell earlier this year. The father and son, aged 71 and 32, died on Easter Sunday trying to rescue a

man in rough seas off the coast near Port Campbell. After the tragedy, the family has kept the Cooriemungle farm running, with neighbours and former staff pitching in to help before deciding in August to put it on the market.


DAIRY NEWS AUSTRALIA OCTOBER 2019

8 //  NEWS

Dairy name debate fires up A PROPOSED free trade agreement between

Australia and the European Union is demanding Australia stop using common product cheese names such as feta, mozzarella and parmesan. The demand has angered peak groups, the United Dairyfarmers of Victoria (UDV) and Australian Dairy Farmers (ADF) who estimate the decision will impact Australian dairy products with an aggregate sales value of more than $650 million. Cheese manufacturers could end up paying a staggering $70–90 million per year in the early stages of the planned trade deal to rebrand and repackage products, as well as engage in consumer re-education. Supported by Dairy Australia, the UDV and ADF will lead a series of events across Victoria informing farmers on the impact the ban will have on business. UDV President Paul Mumford said he is cheesed off that the EU is demanding Australia stop using common product names. “We are urging farmers, manufacturers and even consumers to stay informed and learn how they can help us convince the Federal Government that GIs will be another kick in the guts for the dairy industry,” Mr Mumford said. ADF President Terry Richardson said the industry remained anxious dairy would be a major loser out of any trade deal between Australia and the EU. “This agreement must have benefits for both sides, considering the ease of access European dairy manufacturers have to the Australian market,” Mr Richardson said. “An opportunity exists to remove trade barriers that are currently stifling dairy trade between

Australia and the EU, but this deal should free up the trade relationship rather than creates technical barriers such as GIs,” Mr Richardson said. Events will be held at:

Tinamba | Tinamba Community Hall, Monday, October 21, 11.00 am Leongatha | Leongatha RSL, Monday, October 21, 7.30 pm

NATS ACT ON LABEL CONFUSION The Nationals have the labels of soy milk and vegan meat in its crosshairs, with the party pushing for a crackdown on inaccurate food labelling to protect dairy and livestock farmers. The party agreed at its Federal Council on September 14 to lead reform within government to make sure the use of terms like meat, milk and seafood are limited to animal produce. Federal Agriculture Minister Bridget

McKenzie said milk and meat were singleingredient products, unlike soy or almond milk, and plant-based meat. “No self-respecting vegetarian would want to rock along to a barbecue to find that their vegie-burger actually contained meat,” she said. “Just as meat eaters don’t want to find their meat patties are actually made from chickpeas and tofu.” She said there was ambiguity amid

deliberate attempts by some plant-based protein manufacturers to trade on the honest work of meat and milk producers. She plans to raise the issue at the next Australia and New Zealand ministerial meeting on food regulation. Food labelling has emerged as an issue in Europe and North America in recent years, with some jurisdictions regulating the use of milk as a term. In 2018, France outlawed products

predominantly using non-animal ingredients from being called vegetable steak and soy sausages. Delegates at the recent NSW Farmers Association annual conference also voted to call on the state and federal health and agriculture ministers to implement a uniform standard for labelling that would preclude plant-based drinks from using the term milk.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

10 //  NEWS

Business Scholarship A NEW learning program to support business

management capabilities in Australian dairy farming has been launched. Dairy Australia is offering three scholarships over three year’s (2020, 2021, 2022) to Marcus Oldham College Bachelor of Business (Agriculture). The collaboration has been designed to support students through the course and to develop dairy specific business management skills. The course is open to new entrants and those already dairy farming and looking to progress their careers in farm management. Students will undertake an 11-month practical placement on a working dairy farm, as well as complete two years of study at Marcus Oldham College based near Geelong in Victoria. The Marcus Oldham course provides students with the opportunity to learn from people working across the industry including dairy farmers and service providers, as well as explore real life farm scenarios and business challenges. This includes a mixture of face to face and technology-enabled learning experiences involving business management and governance workshops, farm visits and work placements,

in addition to networking and leadership opportunities including attending the Australian Dairy Conference. Marcus Oldham College Principal, Dr Simon Livingstone is delighted with the collaboration. “This important partnership is testament to Dairy Australia’s commitment to developing strong education opportunities for the industry. Marcus Oldham’s programs will provide the level of educational outcomes that the industry needs to ensure the next generation of farmers drive productivity in the dairy industry,” Dr Livingstone said. Dairy Australia Managing Director, David Nation said expertise in business management can often be the deciding factor in whether a farm turns a profit or not. “Our hope is that this course at Marcus Oldham College will enable people to kickstart their farm management careers and be industry ready upon graduation,” Mr Nation said. Applications are open and close on Friday, October 18, 2019. For more information: marcusoldham.vic.edu.au/scholarship/ dairy-australia-farm-managers

TAKEOVER BACKED BY BELLAMY’S BOARD Bellamy’s Organic, a 15-year-old company established in Tasmania, is being taken over by a Chinese company in a deal that values the milk powder company at about $1.5 billion. Bellamy’s entered into a scheme Implementation deed with Mengniu Bellamy’s Australia Limited, under which it is proposed that China Mengniu Dairy Company Limited will acquire 100 per cent of the issued share capital of Bellamy’s via a scheme of arrangement. If the scheme proceeds, it is intended that Bellamy’s shareholders receive a total of $13.25 cash per share. The company earned net revenue of $266 million in the past financial year and recorded a $21 million net after tax profit. Bellamy’s board of directors has unanimously recommend that Bellamy’s shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to an independent expert concluding that the scheme is in the best interests of Bellamy’s shareholders. Each director of Bellamy’s intends to vote all the Bellamy’s shares that he or she holds or controls in favour of the scheme, subject to those same qualifications. Bellamy’s chair, John Ho, said the proposed scheme was an attractive all-cash transaction at a 59 per cent premium to the prevailing share price. “It reflects the strength of the Bellamy’s brand, the dedication of 160 passionate employees and the progress of our turnaround plan,” he said. Bellamy’s deputy chair, John Murphy, added: “Following careful consideration of the offer, the Bellamy’s board has unanimously concluded that the scheme is in the best interests of shareholders.” Bellamy’s chief executive officer, Andrew Cohen, said Mengniu was a pre-eminent dairy company in China and an ideal partner for the business. “This transaction can further deliver on our founder’s original vision of a truly iconic Australian brand and ‘A Pure Start to Life’ for the world. Our employees, our trade partners and local organic manufacturers will continue to grow and thrive with the success of our business.” Mengniu’s chief executive officer, Mr Jeffrey, Minfang Lu, said: “Bellamy’s is a leading Australian brand with a proud Tasmanian heritage and track record of supplying high-quality organic products to Australian mums and dads”.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 11

Grim forecast for cattle industries A NEW report by a private US think tank pre-

dicts massive changes to livestock industries including cattle and dairy within 10 years. By 2030, modern food products will be higher quality and cost less than half the price of the animal- derived foods they replace, the dairy and cattle industries will have collapsed, and the rest of the livestock industry will follow. That’s according to a new report, “Rethinking Food and Agriculture 2020–2030 — The Second Domestication of Plants and Animals, the Disruption of the Cow, and the Collapse of Industrial Livestock Farming,” released by RethinkX, a US-based organisation that analyses and forecasts the scope, speed and scale of technology-driven disruption and its implications across society. “This is primarily a protein disruption, driven by economics,” Tony Seba, RethinkX co-founder and report co-author, said. “This is not one disruption but many in parallel, with each overlapping, reinforcing, and accelerating the others.” “Technology we call precision fermentation

“Industrial cattle farming industry will collapse long before we see modern technologies produce the ‘perfect’ cellular steak.” and a new production model called Food-asSoftware are dramatically driving down the costs and driving up the quality of manufactured proteins,” report co-author Catherine Tubb said. “The industrial livestock industry is one of the oldest, largest, and most inefficient food-production systems in the world. Modern ingredients and the foods are about 10 times more efficient across the board — from land and water use, to feedstock consumption and energy use.” Precision fermentation (PF) is a process that enables the programming of micro-organisms to produce almost any complex organic molecule. Its costs are dropping exponentially because of rapid improvements in underlying biological and information technologies. The cost to produce a single molecule using PF has fallen from $1 million per kilogram in 2000, to about $100 today. Assuming existing technologies and using well-established cost curves, the report projects that these costs will fall below $10 per kilogram by 2025, and that these proteins will be five times cheaper than traditional animal proteins by 2030 and 10 times cheaper by 2035. By 2030, modern food products will cost less than half as much to produce as the animalderived products they replace. At the same time, this new production system has the potential to spur competition and fast iteration of products that are ever cheaper and ever better: more nutritious, healthier, better tasting, more convenient, and more varied, as long as open markets and nutritional standards are protected. The report details the way different parts of the cow (collagen, milk, meat and leather) and the markets they serve will be disrupted separately and concurrently by different technologies and business-model innovations that overlap, reinforce and accelerate each other. The authors refer to this disruption as “death by a thousand cuts”. As product after product that comes from cows faces competition from cheaper, higher-quality modern foods, demand for cow products will decrease, triggering a death spiral of increasing prices for the

industrial livestock industry, decreasing demand and reversing economies of scale. “The key to understanding the disruption of the cow is that PF only needs to disrupt 3.3 per cent of the milk bottle (the key functional proteins) to bring about the collapse of the entire cow milk industry. This is a B2B disruption, not just a simple one-for-one substitution of end products, and does not hinge on changing human behaviour,” Mr Seba said.

“PF proteins are already being produced commercially. Costs are decreasing exponentially while quality and variety increase exponentially. Industrial cattle farming industry will collapse long before we see modern technologies produce the ‘perfect’ cellular steak at a competitive price.” The report analyses the way technology and new models of production flip the current food production system on its head. Instead of

growing a whole cow to break it down into products, PF designs and customises individual molecules to build products. Development is done in a manner similar to the software industry: companies and individuals will build components within layers of the equivalent of a software stack that can be used according to individual needs. The food developer is like an app developer, using the stack that is most appropriate according to market needs.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

12 // NEWS

No reprieve on water prices WATER ALLOCATION prices in the southern

Murray-Darling Basin are likely to remain high in 2019–20, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) latest Water Market Outlook. “Over the past 12 months, water allocation prices have increased dramatically from around $250 per ML in July 2018 to over $600 per ML,” ABARES Head of Farm Performance and Resource Economics, David Galeano said. ABARES modelling suggests a combination of low supply caused by drought, and growth in water demand in recent years explains the observed increase in prices. The latest ABARES Water Market Outlook provides a range of possible allocation prices for 2019–20 under average, dry, extreme dry, and wet seasonal condition scenarios. “Under the dry and extreme dry scenarios, total water availability in the southern basin in 2019–20 would be well below last year but still above levels observed during the worst of the Millennium Drought (2007 to 2009), with ABARES estimating average annual water prices of between $526 and $650 per ML. “Of course, if we do see a shift to wetter conditions, prices are expected to fall quickly and substantially, as they did in 2016–17. “Water supply in the Murrumbidgee region remains highly limited and so we could see

the region’s water trade import limit in force. If this occurs, higher allocation prices would be expected in the Murrumbidgee as occurred during parts of 2018–19. “While the current BOM climate outlook suggests drier than average conditions at least until October, it’s important to remember there’s still much uncertainty. Conditions better or worse than the scenarios tested are possible — and hence water prices higher or lower than those estimated in our latest outlook — remain a possibility.” Water supply remains highly limited in the Murrumbidgee with limited carryover reserves and zero opening general security allocations. Under the dry and average scenarios the Murrumbidgee Inter-valley Trade (IVT) import limit is expected to bind, leading to higher prices in this region compared to other regions in the southern basin. In the wet scenario, the Murrumbidgee reverts to its usual trade position of being a net exporter of water. The Barmah Choke trade constraint is expected to bind in the dry and extreme dry scenarios, leading to lower water allocation prices in the above Barmah trading zones: $491 and $545 per ML under the dry and extreme dry scenarios respectively. The ABARES report found for the southern basin as a whole, 2018–19 has seen the lowest

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Initial allocation forecasts for 2019–20 from state water agencies were also relatively low, further driving up prices towards the end of the water year. Water markets in the southern basin closed the 2018–19 water year at a price of around $548 per ML. ABARES modelling results suggest that a combination of low supply and high irrigation water requirements — due to low rainfall and high temperatures — can explain much of the observed increase in prices in 2018–19. Growth in water demand also appears to have occurred in recent years (likely in part due to maturing almond plantations) and this has also contributed to higher prices.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

14 //  FEATURE

Jerry Jennissen runs more than 200 cows and young stock in Minnesota and has diversified his business with cheese production, on-farm retail and agri-tourism.

Calves are kept in individual hutches at the Jer-Lindy Farms, which supplies the milk to the Redhead Creamery, for Bovine Johne’s Disease management.

A cheesy twist on farm succession SIMONE SMITH  REPORTING FROM THE USA

AS A teenager, Alise Sjostrom told her father she

would take over the family’s dairy farm. But she would not be milking cows. Instead, the redheaded 16-year-old would put her own touch on their registered Holstein business. She would make cheese. This dream became a reality in the autumn of 2014 when the first cheese from Redhead Cream-

ery came off the production line. This farmstead, artisan cheese was made just mere metres from the dairy and barn where Alise’s parents Jerry and Linda Jennissen run more than 200 registered Holstein and Brown Swiss. Now Redhead Creamery sells produce through distributors in capital cities, at markets and online, and has a thriving on-farm café where agri-tourism — including a new annual “Curd Festival” — has further diversified the dairy operation. About 100 pounds of cheese (45 kg) is pro-

duced a week on-farm at North Fork, a town north-west of Minneapolis in the US state of Minnesota. The creamery uses about 7 per cent of the herd’s total production, with cheese production two-to-three days a week. About 12 pounds (5.4 kg) of cheese is produced for every 100 pounds of milk (45 kg), according to Jerry. A pipe runs from the eight-a-side doubleup herringbone dairy straight across to the specially designed cheese-making facility and Jerry explained the creamery has a “waiver” from the United States Department of Agriculture to take

warm milk. Normally the milk would have to be cooled to 45 degrees Fahrenheit (7.2 degrees Celsius). In late July, Alise and her husband Lucas paid $US0.20 cents a pound for the milk ($A0.60¢/kg) for use in the creamery, with the remainder of the farm’s production sold to Minnesota cheese production Co-operative Bongards for about $US0.18 cents a pound ($A0.59¢/kg). Jer-Lindy Farms, which is 101ha, with an extra 27 ha leased, is a separate business to the creamery. Milking 180 cows housed in a barn and feed-

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DAIRY NEWS AUSTRALIA OCTOBER 2019

FEATURE  // 15 ing a total mixed ration, Jerry said his cost of production was about $US17 cents a pound ($A0.55¢/kg) “all included”. Margins are tight and Jerry was coy when asked about how the creamery and agri-tourism ventures had helped the farm’s bottom line. “For the past five years, the creamery has made its payments,” he said. “But there’s been nothing extra for us. “We’ve worked hard to cut costs. We have a long list of things we’d like to replace.” When Dairy News Australia spoke with Jerry, he was waiting for news of how much money he would be eligible for under the US government’s most recent Farm Bill. “It better be coming, I’ve already written the cheques out,” he joked. Like many family farms his size, Jerry lamented the rise of larger farms and how, through scale, they were able to drive down production costs. He said there were about 1600 family farms in his region of Minnesota when he and wife Linda bought their first 16 ha at North Fork 36 years ago, he believed there were less than 400 now. Apart for diversifying the farm business, Jerry believed increasing production would help his business compete with the lower production costs of the large farms. They were also investigating beef production as a second income, and hoped this could be sold through the cheese shop. The predominately Holstein herd averages about 25 000 pounds/milk/cow/lactation (11 340 kg/cow/lactation) with a 4.1 per cent butterfat and 3.2 per cent protein. Genetics is one way they plan to lift production, with the top 15 per cent of the herd genomically tested and mated accordingly. Sexed semen is used on some heifers while older cows have been joined to sexed Angus semen in a bid to develop the beef-arm of the business. “We are aiming to get the bottom 20 per cent of the (dairy) herd joined to beef,” Jerry said. Bull calves stay at the property for one month and then are raised by Alise’s husband Lucas’ parents and sold into the beef market. Dairy heifers are mated on signs of their first heat at 13-months-old. All heat detection is done “with our eyes” Jerry explained, but if a cow shows no signs of heat 90 days post-calving an ovulation synchronisation program will be implemented.

All animals are fed a free choice total mixed ration in barns or stalls. Calves are housed in individual hutches away from the main herd for Bovine Johne’s Disease management and to monitor health and weight-gain and prevent the spread of potential illness. The TMR includes bailage — with lucerne — and a little soybean meal with a salt mineral mix. Pregnant cows and heifers are fed a low-potassium grass hay and the ‘refusal’ from the milking herd. Most of the feed is produced on-farm. The businesses labour cost were “too high” per hundred weight of milk, according to Jerry, but he didn’t provide the figure. He said about eight people were employed across the entire business and each milking included three staff — two milking and one at the back of the yard bringing in cows from the barn. “With the agri-tourism though, we have to spend two-to-three hours more a day getting the farm ready for tourists,” Jerry explained. Wages were $US12-$16/hour ($A17-$23). Farm tours run at the weekend, where Jerry spends a lot of time debunking myths about dairy production and explaining vaccination and health requirements. Last year the family hosted their first Curd Fest with 700 people attending. The festival is a celebration of cheese, but specifically curds, and included live music and farm tours. This year numbers swelled to 1200. There are plans to develop this part of the business. As for the cheese production, Jerry said interest continued to grow with the café also gaining in popularity. Some of the cheeses include Lucky Linda Clothbound Cheddar, aged six-plus months; this won fourth in its category at the US Cheese Championships Contest this year and sixth in its class at the World Championships. Also, North Fork Whiskey Washed Muster, a wheel aged 4–16 weeks, which came third in the Artisan Cheese competition at the Minnesota State Fair this year, as well as fresh cheese curds and Little Lucy Brie — named after Alise’s daughter. When it comes to the succession plan, Jerry has accepted nothing will stay the same. “(The next generation) might be able to make big money out by farming and not milking cows,” he joked. “Perhaps they will have robots.”

Alise Sjostrom is the CEO and president of Redhead Creamery, a farmstead and artisan cheese business in the US. She studied cheese production and worked in several roles within the industry before returning to her family farm.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

16 //  FEATURE

Heading south and going green RICK BAYNE

THE GREEN pastures of Tim Humphris’ new

farm in south-west Victoria seem a world away from Tongala. As he shelters from the spring wind and rain on the Nirranda South property, not far from the Great Ocean Road, Tim says his move from northern Victoria has been a huge learning experience and challenge, and in many ways, a relief. “The best thing is having the ability to grow a lot of grass in the spring and not having to irrigate,” he said. Tim is one of a number of northern Victorian farmers who have relocated to the state’s south in search of more rain. He admits it was very daunting to start. “We arrived in the middle of calving and it’s very different to the clay loam soils we had at home. If we pugged a paddock at home it was gone for good until next season; if we damage a paddock here it just seems to recover.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

FEATURE  // 17

James and Tim Humphris: farming without irrigation and adjusting to the wetter conditions and greener pastures of south-west Victoria.

“It’s like learning again but that’s challenging and really enjoyable. I’m amazed at how much the grass grows over winter; now the unknown is getting ready to cut as much silage as we can to take us through the summer months and minimise what we have to purchase.” Tim realised it would be wise not to come in and try to change the world. “I’m watching what has happened here on the farm in the past, what the neighbours are doing and being a sponge to learn,” he said. The previous owner, Barney Hammond, continues to live onsite and has been a great help with advice. Unlike Tongala, the farm doesn’t have irrigation. “I’m happy about that,” Tim said, “although I might not think the same over the summer months.” A vet for 15 years at Kyabram, Tim fulfilled a long-held dream of going dairy farming 11 years ago, purchasing a 130-ha dairy at Tongala with 300 Aussie Red and crossbreed cows. Like other northern farmers, the critical issue became water. “We only owned about a quarter of the water we used, which exposed us to the

temporary water market,” Tim said. “When supply is tight and demand is high, that’s when the water cost goes up. Our peak water price was around $600 and our minimum was $5. It was heading to where we couldn’t cope with the costs. “If you’re growing perennial pasture, like we were, a water price of $150 is about the maximum you can afford. I could see the writing on the wall.” His water right had been purchased for about $1200 a megalitre and was sold with the farm at $3600 a megalitre to a corporate group that wanted to expand a neighbouring farm. A change in personal circumstances meant Tim could look at relocating, with options in Gippsland and western Victoria. He consulted Price Waterhouse Coopers agribusiness team about connecting with an equity partner and was matched with Brian Hewitt and his son Jonathon, who have a cropping background in the Wimmera and other business interests. “They try to align people with similar philosophies and we seemed to be a good fit, in liking

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to keep things simple,” Tim said. “They were keen to look in the western districts and I could look for larger farms than I would have been able to afford on my own.” Land values were a key in moving west ¬– Warragul cost about $12 000 an acre (0.4 ha), in the south-west it’s somewhere between $5000 and $6 000. Tim moved in on July 15. The Nirranda South property covers 287 ha with a 40-unit rotary dairy. It was milking 350 Friesians; half that herd came with the farm and will be blended with Tim’s cows for a total of about 400. “My preference is for the Aussie Reds because I’m used to them,” Tim said. “I find the big Friesians are a bit slower; they’re always last to the dairy. Mine are smaller but very competitive.” Tim’s cows calved in August-September but his new farm had a May-June system and that will be adopted. Previously all young stock stayed onsite but Tim will use an out-paddock at Beech Forest next to his father’s farm. Production is tracking well, just hitting 10 000 litres this month. Like Tongala, the farm

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has mostly perennial pastures with some annuals on lighter, sandier soil closer to the coast. Tim’s son James, 20, is also working on the farm. While enjoying the new challenge, Tim says the water issue in northern Victoria “stirs me up a bit”. “I feel a sense of relief that I’m no longer exposed to that but at the same time, I feel a sense of concern for my friends in the area who are still doing a great job of managing the situation, but it is stressful. “There’s no obvious solution; it’s a political problem.” Despite leaving, Tim sees a future for dairy in northern Victoria, albeit in a different form. “I think the farms will be a lot larger and they will be feedlot farms, utilising irrigated crops with a cut-and-carry system. The key will be to have the scale to cover your fixed costs. It could be difficult for family farms to take that step.” He also expects more interest in dairy in western Victoria. “I think others will come here. I think it’s a fantastic area for dairy,” he said.


DAIRY NEWS AUSTRALIA OCTOBER 2019

18 // NEWS Key lessons from 2018-19 ■ ■ ■ ■ ■ ■

Careful and early planning; Carefully compare different options; Too many young stock were a burden; Buy feed based on value for money rather than just price per tonne; Maintain reasonable cow numbers and milk production; Do the basics well�

Buying in feed ■

■ ■ ■ ■ ■ ■

■ ■

Tom Farran.

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Strategies for a tough year ECHUCA BASED consultant, Tom Farran, pre-

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Milk price is providing the dairy farms in the region with a chance, therefore: ■ Cutting cow numbers may leave the farm worse off; ■ Reducing milk production is likely to leave the farm worse off; ■ Only rear the number of young stock required; ■ Carefully put together a feed budget and begin to secure feed; ■ Plan early and be fl exible with options; ■ Consider if farming through this year is the best option; ■ Think about the impact decisions this year will have on the future of the business; and ■ Look after yourself�

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DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 19

Jersey journal journey IAN ANDERSON was only two and his sister

Christine, four, when they became the poster children for the first edition of the Jersey Journal in 1969. Fifty years later, the siblings reunited to recreate the photos as the journal celebrates its 50th anniversary. In this fast-changing media landscape, one rural publication has defied the odds to mark a significant milestone. The Jersey Journal celebrated its 50th anniversary in September having survived floods, droughts, recessions and even a name change for its parent body — from Australian Jersey Breeders Society to today’s Jersey Australia. While many industry papers have folded over the years, the Jersey Journal has survived and become staple reading for generations of Jersey breeders. It is printed and distributed bi-monthly to about 900 members and the online version is accessed internationally with Jersey enthusiasts from 36 countries downloading each issue around 1000 times. The journal evolved from the Livestock Bulletin which went out of print in 1971. At the time the Australian Jersey Breeders Society believed there was a need and demand for a specialist publication to focus on the breed. It was the brainchild of state branch members Charlie Gay, of Yarram, and Reg Broad, of Bendigo, who went on to become life members of the society. They were concerned that the Livestock Bulletin had limited news and information for Jersey breeders. An editorial in the first edition said the journal was “dedicated to the interests of Jersey breeders

everywhere and to the dairy industry in general”. The first journal rolled off the printing press at Ruskin Press in North Melbourne on September 30, 1969. Graeme Warrener was the first editor. The journal remains free for all Jersey Australia members and president Chris MacKenzie said it still has a vital role in keeping members informed, sharing success stories and promoting Australian Jerseys to the world. While the journal has changed in style, distribution method and frequency, Mr MacKenzie said it’s still appreciated by members as an informative means of communication. The emphasis in recent years has changed to feature more breeder stories to highlight their achievements and successful farming and breeding practices. “All along it has been there for breeders to use as a means of communication and that hasn’t changed,” he said. “Our members still look forward to it for information from the Jersey Australia board and management and for stories about other farmers,” he said. The international exposure through regular downloads across many countries also strengthens the Australian Jersey brand. “It’s a great way to promote Australian Jerseys into the world,” Mr MacKenzie said. Former Australian Jersey Breeders Society president Lionel Bonde was one of the founders of the journal and remains a dedicated reader who said, “I wouldn’t be without it”. Mr Bonde said the publication was innovative at the time with its commitment to one breed and focus on producing good quality photographs and stories.

Ian Anderson was only two and his sister Christine, four, when they became the poster children for the first edition of the Jersey Journal in 1969.

Tasmanian Jersey breeders Geoff and Ann Heazlewood had a collection of all Jersey Journals until nature intervened three years ago and, the nearby Mersey River ruined that. “We had a collection of journals filed from the first edition until three years ago when the river broke its banks and we had a flood through our

house,” Mr Heazlewood said. “Unfortunately, they were waterlogged and ruined, and we had to throw them out.” “For us it was the original means of communication,” he said. “It was something we very much looked forward to, and still do.”


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DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 21

Challenging conditions hinder growth THE GLOBAL dairy market looks set to remain

firm through mid-2020, as the outlook for demand growth is more than enough to absorb the modest volumes of increasing milk flows, according to Rabobank’s latest global Dairy Quarterly report. The report says that despite higher farmgate milk prices, “dairy farmers in most export regions have struggled to convert improved market conditions to production growth”, with production across the Big 7 exporters (the US, the EU, New Zealand, Australia, Brazil, Argentina and Uruguay) expected to increase by just 0.4 per cent in Q4 2019 and 0.8 per cent in early 2020. Several constraints have prevented supply growth, according to the report, with a warm summer in China and Northern Europe partially to blame. But it is constraints in respective regional markets that have limited, and will continue to limit, farm-level expansions and keep the broader market firm, with the report citing factors such as rising costs of production, lower confidence, capacity constraints and environmental regulations. On the demand side, the report says, there is a noticeable slowing of global economic activity and consumer confidence is waning. Latest data for the 2018–19 season shows Australian milk production falling by 5.7 per cent, a loss of 530 million litres — with falls recorded across all regions. In 2019–20, Rabobank senior dairy analyst Michael Harvey says Rabobank is forecasting national milk production to decline by about 3 per cent. “This takes into account a slow rebuild of the herd and the constraints facing many producers in light of high feed and water costs,” Mr Harvey says. “While there is regional variance, with seasonal conditions reasonably favourable in Gippsland, south-western Victoria and Tasmania, the brunt of the decline in milk production is expected to occur in the Murray Irrigation District where opening water allocations are low.” Despite seasonal challenges, Mr Harvey says “record-high opening prices are on offer across the southern export region with reported weighted average prices ranging between AUD 6.80/kgMS and 7.20/kgMS, including supplementary payments”. The bank, he says, has slightly trimmed its Australian milk price forecast for 2019–20 to AUD6.65/kgMS. “This reflects some weakness in the global butter price, which has come off its highs and is back around its normal trading range,” he says. It also assumes a spot currency of USD 0.67. Mr Harvey says southern export milk prices are currently sitting above this level, supported by intense competition between processors for available milk supply and variance in dairy companies’ product mixes.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

22 //  NEWS

China mission reveals opportunities for Jersey farmers AUSTRALIAN JERSEY farmers could be

major beneficiaries from China’s need for more dairy product while addressing many of the issues confronting the country. China needs 109 million tonnes of dairy to meet current nutritional targets but last year Australia exported only 840 000 tonnes. A recent dairy trade mission to China has identified Jersey as a potential growth opportunity and has sought to clear-up misconceptions about availability of the breed. Jersey Australia general manager Glen Barrett, who was part of the delegation, said Jerseys could be the answer to many of the challenges facing dairy in China. “Their dairy herd is starting to get too big and has fertility, feed efficiency and heat tolerance issues — all things where Jerseys would be far superior,” Mr Barrett said. “It is mostly a Holstein market at the moment but the demand for Jersey is growing, particularly in southern China where the climate is warmer and the Jersey heat tolerance is beneficial.” Fifteen companies joined the fifth Austradeco-ordinated dairy mission to China. The program included industry briefings, site visits,

business promotion, roundtable discussions and participation in the Australia’s National Pavilion at the 2019 China Expo. Jersey Australia was invited by Genetics Australia to join the Austrade mission to develop and expand export opportunities and Mr Barrett said Jerseys could be a significant player. Australia exports an average 10 000 Jerseys per year but Mr Barrett said some exporters were telling Chinese buyers they couldn’t buy Australian Jerseys. “That is incorrect. By weight of numbers, we are a smaller breed but Jerseys are available,” he said. Mr Barrett said having a consistent market would encourage more Jersey breeders to enter the international market. “If the market is inconsistent, it’s hard to breed to supply to it,” he said. “If there was consistent market year-onyear, breeders and farmers would breed heifers to meet that market. If the market is there one year and not the next, that becomes a bit of a challenge.” Mr Barrett said there seemed to be a strong shift away from US Proofs and he also rejected

claims being made about Australian product. “One of the stupidest things I heard is the Chinese are being told they can’t breed Australian heifers to Australian bulls due to inbreeding from international suppliers,” he said. “That’s wrong and if you want Jerseys, they are available.” Mr Barrett said there had been eight to 10 solid conversations with buyers looking for Jerseys with a bull order already resulting from the trip “Jersey Australia is here to help exporters find heifers if they need them and we will provide continued reassurance to buyers in China that Jersey heifers are available.” There are also good opportunities for Australian genetics and embryos. “The feedback was that there is demand for high-value cows and potential opportunities for more elite-level genetics and exports of Australian semen to China,” Mr Barrett said. “There are opportunities to take a collective national approach through the different AI companies and it’s not just China. “There are strong sales of Australian Jersey semen into South Africa, good opportunities

for Jerseys in Rwanda and just last week we had interest from South Korea undertaking an evaluation of Australian Jerseys on their suitability for their dairy industry.” Jersey Australia will maintain contact with potential buyers, reconfirming Jerseys are readily available and providing support in certification and breed assessment. Genetics Australia export manager Rob Derksen said there was a growing need for different types of milk in China. “They have been very volume orientated but there has been a change recently,” Mr Derksen said. “The Chinese are drinking more yoghurts and wanting a higher percentage of fat and protein in their milk and Australian Jerseys can deliver that,” he said. “Jerseys are also generally more heat tolerant and better feed converters.” Mr Derksen said one farmer met on the mission had asked for 1000 A2 Jersey heifers from Australia.


DAIRY NEWS AUSTRALIA OCTOBER 2019

NEWS  // 23

World award for DA leader DAIRY AUSTRALIA’S Helen Dornom recently

received an International Dairy Federation award for her outstanding contribution to the dairy industry at this years World Dairy Summit in Istanbul. Ms Dornom’s career in the industry has spanned 40 years and during that time, she has shown outstanding leadership and service to the dairy sector both internationally and here in Australia. She has worked across many areas including food safety, residues, animal health and welfare, farm management, food standards and sustainability and has always focused on supporting the prosperity of the dairy sector, particularly around enhancing the reputation and integrity of dairy production and dairy products. Ms Dorman joined Dairy Australia when it was formed in 2003, having been CEO of the Australian Dairy Industry Council and Executive Director of Australian Dairy Products Federation. She also previously worked for CSIRO. During her career she has focused on sustainability, research and development, issues management, supply chain, regulatory standards, policy frameworks and export facilitation. She currently works with the Global Dairy Sustainability Framework and Sustainable Agriculture Initiative and has developed guides for the IDF and Food and Agriculture Organization on good dairy farm practices and prudent use of antimicrobial agents. Dairy Australia Managing Director Dr David Nation said they were delighted Helen’s many years of work with the International Dairy Federation had been recognised with this award. “Through her role in helping to co-ordinate the Australian Dairy Industry Sustainability Framework, she continues to make a significant contribution to the sustainability of dairy

farming in Australia,” Dr Nation said. President of IDF Dr Judith Bryans said all of the winners were dairy champions who worked tirelessly to promote their great sector all over the world. “Whether it’s being creative, offering highlevel strategic and technical advice, or helping

the IDF to communicate more effectively with the wider dairy sector, each of these winners has played a key role in ensuring the interests of the industry remain centre stage. Their commitment to the global sector is resolute and is deeply appreciated,” Dr Bryans said. The 2019 Summit brings together around

1000 representatives of the global dairy sector, including government agencies, civil society, academia, farmers, processers and producers from around the world. The 2020 IDF World Dairy Summit was held in Cape Town, South Africa, September 28 – October 1.

The Salters have some high targets for Clear Springs Dairy. We're here to lend them a hand.

Award-winning farmers Tim and Fiona Salter have already made a huge impression on their North Tasmania dairy farm. After just three years at the helm, they’ve picked up the prestigious 2019 ANZ Dairy Business of the Year award. Part of that success has been their decision to change their genetics to a New Zealand-style animal that would suit their farming conditions better. Together with LIC, they are improving their breed mix to create cows that are efficient feed converters, producing their weight or better in milk solids and easy to manage throughout the seasons… and it’s paying off. Production for the 2018-2019 season exceeded their forecasts, so next season they reckon they can reach their goal of 500kgMS per cow. The herd is still young, so the Salters know there is plenty of room for improvement yet, even with their high expectations. Contact us to learn more about how LIC can help with improvement on your farm.

Dairy Australia’s Helen Dornom’s 40 year contribution to the dairy industry was recognised with a recent award at the World Dairy Summit in Istanbul.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

MARKETS  // 25

GLOBAL IMPACT SOFIA OMSTEDT THE BEGINNING of spring has routinely

seen a flurry of activity, both on farms and throughout the wider dairy supply chain. Global markets remained subdued over winter but have now started to see increased activity. While the outcome of the spring flush will act as the main supply-side driver to prices, ongoing disturbances are unsettling otherwise stable dairy markets. Punitive tariff measures and abrupt, politically driven trade policy changes are becoming a more prominent feature of global trade than any time in recent history. So how does this impact the Australian industry? Following a year of falling milk production in most regions, Australia’s dairy exports dropped 2.6 per cent to 819 000 tonnes in 2018–19. This was predominately driven by a decrease in exports to Japan and various Southeast Asian countries. In Japan, Australia has faced increased competition from European manufacturers, with cheese exports from the European Union (EU) growing strongly. The EU–Japan Economic Partnership Agreement entered into force in 2019 and is set to reduce tariffs on cheese for EU exporters. This agreement also contains a protection clause for a wide range of Geographical Indicators (GIs) on different dairy products, such as feta. This has hampered Australian exporters

Trade disputes and their impact ability to sell products to the Japanese market under these familiar generic names. As Brexit negotiations continue, many countries, especially Ireland, are looking to Japan to replace the UK as a future trade partner for cheese exports. The new trade agreement, combined with the uncertainty caused by Brexit, will likely sustain the increase in export competition to Japan. Closer to home, a trade dispute is brewing that could add further volatility to global dairy markets. Indonesia, Australia’s third most valuable export market, has announced intentions to limit dairy imports from the EU and to increase tariffs for EU dairy exporters. This move is in retaliation against the EU’s plan to impose anti-subsidy duties on biodiesel made from palm oil. Currently, this is a temporary restriction but might be permanently implemented in 2020, which would intensify the dispute. The Indonesian trade minister has urged dairy importers to look for new suppliers outside the EU. If this disagreement continues it could temporarily increase demand for dairy products from other markets, including Australia. The most commonly referenced dispute over the year must be the US–China trade war, which is changing global trade dynamics. Following new tariff announcements from the US, implemented in September and December, China announced intentions to cease purchases of

all US agricultural products. Since March 2018, when this trade dispute started, US dairy exports to China have contracted substantially, down 16 per cent in the first year. With the US decreasing their share of the Chinese market, other regions, including Australia, have seen growing demand for dairy products. Australian exports to China grew 6.5 per cent to 245 000 tonnes in 2018–19, predominately led by an increase in milk, SMP and condensed milk exports. Trade disputes can create a temporary opportunity for Australian exporters, but overall, the key impact is the injection of uncertainty into global markets. A reduced presence of US dairy products in China has seen Australian share of

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imports grow; however, it has also resulted in intensified competition from the US in Southeast Asian markets. As a result, Australian exports to key Southeast Asian markets have decreased over the year. Changes to existing trade patterns increase the disruption and enhance the risk of greater price-based competition on the global marketplace as exporters race to secure sales. At a time when Australian processors are paying record farmgate prices, and farmers are hoping fervently for stabilising returns to recover financially, this may ultimately prove an unwelcome turn of events for the Australian dairy industry. - Sofia Omstedt, Dairy Australia


DAIRY NEWS AUSTRALIA OCTOBER 2019

26 //  SPRING PASTURE FEATURE

Potassium: planning and pitfalls BY ALEX GOUDY  AGRICULTURE VICTORIA

AS WE move into the harvest season, using fer-

tilisers to boost yield should be front of mind. Potassium is an important nutrient in spring that affects both plant and animal health. Too little in your soil means reduced pasture growth, however, too much can lead to metabolic problems in cattle. Therefore, it’s important to think about your soil fertility levels and potassium fertiliser use. Being over generous with potassium fertiliser in spring has the potential to cause milk fever and grass tetany next calving season. The worstcase scenario from this is the loss of cows, or in less severe cases, an impact on production and profitability. When soil potassium levels are high, pasture plants can accumulate excess potassium, which can cause a mineral imbalance in cows. A highpotassium diet reduces the uptake of magnesium and calcium in the gut, which leads to milk fever

and grass tetany. Cows are most susceptible to mineral imbalances prior to and up to three months after calving. A lot of potassium is removed in a hay or silage harvest, usually between 60 to 100 kg per hectare. Therefore, many fertiliser recommendations in spring aim to give a boost to pasture growth using nitrogen and replace potassium, phosphorus, sulphur and nitrogen removed in harvested pasture. However, if soil potassium levels are already adequate, the pasture can accumulate additional potassium beyond what is needed for extra growth. This is called ‘luxury uptake’. It can result in hay that if fed to susceptible animals, will predispose them to metabolic problems. Some caution around adding extra potassium fertiliser to paddocks with a high soil level is therefore necessary. The following recommendations can help with potassium fertiliser decisions: 1. If potassium levels are high (Colwell K levels greater than 250mg/kg) additional fertiliser won’t increase pasture production. Cutting back on potassium

fertilisers (and monitoring with soil tests) will save you money. 2. When using nitrogen to boost spring harvest yields, consider using straight nitrogen fertilisers if soil fertility is adequate and nutrients aren’t limiting. 3. Cows susceptible to milk fever and grass tetany should be on a low potassium diet, fed rough hay or straw prior to calving, and kept off feed and paddocks with high soil potassium levels, prior to and soon after calving. Magnesium supplementation preand post-calving will also reduce the chance of grass tetany if you are grazing susceptible pastures. 4. Be conscious of where the hay being fed out was made. If it was on paddocks with high potassium levels, avoid feeding this hay to springers or dry cows. 5. Remember silage and hay removes a large amount of potassium. Be sure to

replace this on these paddocks. 6. Regularly soil test to monitor the potassium (and other nutrient) levels of your paddocks. Potassium levels can change quickly due to leaching and fodder conservation, so make sure tests are done regularly to plan fertiliser use. Testing farm management zones assists to monitor the changes in fertility of certain areas of the farm that are managed differently. 7. Current guidelines for fertility target levels can be found at Dairy Australia’s Fert$mart website: http://fertsmart. dairyingfortomorrow.com.au/ dairy-soils-and-fertiliser-manual/ By considering current fertility levels and fertiliser practices, potassium fertiliser can be used with confidence on your farm. For more information about managing during drought and dry seasonal conditions go to agriculture.vic.gov.au/dryseasons.


DAIRY NEWS AUSTRALIA OCTOBER 2019

SPRING PASTURE FEATURE  // 27

Victorian soil profiles drying out SOIL MOISTURE levels are varying across

Victoria, including in the north, with full information detailed in the latest Soil Moisture Monitoring newsletter. Central Victoria and the north east have crops with high water demands and have consumed all this season’s moisture following below-average August rainfall. There are a wide range of residual moisture levels across the region. August rainfall totals supported crop growth, but in the north, soil moisture is now being actively used by crops. Wet south-west crops have deep soil moisture reserves and to date have not had to use it, as rainfall has met crop demands. Good moisture conditions still exist in the Wimmera and Southern Mallee. Crops that look great and have high yield potentials also have large biomass with a high-water requirement. The Mallee is drying out quickly with a below-average decile August, but crops are well advanced and seeking the last of residual moisture. The monitored paddock in the Werrimull

has no crop, having received only 53 mm GSR. Those paddocks that started the season with no moisture have crops showing signs of stress while paddocks with summer rain plus weed control have crops that are mining the deeper moisture reserves where they exist. Hay versus grain decisions will be analysed on a paddock by paddock basis during the second

half of September. Crops following hay last year are performing better this year than grain on grain in this region. For more detailed information on Soil Moisture Levels and the latest report, visit agriculturevictoria.cmail20.com

WIMMERA SITE FOR SOUTHERN PULSE FIELD DAY Pulse crops will take centre stage in Victoria’s Wimmera next month when the annual Southern Pulse Agronomy Field Day is held as part of the Australian Pulse Conference in Horsham. The field day on Tuesday, October 15, is supported by the Grains Research and Development Corporation (GRDC), PBSeeds, Seednet and Agriculture Victoria. Southern Pulse Agronomy (a GRDC investment) lead researcher, Jason Brand, says the field day will feature new variety releases, an historic variety demonstration, chickpea and faba bean disease management, and advances in herbicide tolerance. “Researchers, industry agronomists and grain marketers will all be in attendance to answer growers’ questions,” Dr Brand, a pulse research agronomist with Agriculture Victoria, said. Located just west of Horsham on the Wimmera Highway, the field day will be from 8.30 am to 2 pm, with a free lunch included. Supported by the GRDC, the Australian Pulse Conference will be held at Horsham from October 15–17.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

28 //  NEWS

Leadership candidates sought THE GARDINER Foundation is offering eight

(Leadership Great South Coast), Gippsland (Gippsland Community Leadership), northwest and central Victoria (Loddon Murray Community Leadership) and northern Victoria (Fairley Leadership). VRCLP CEO, Katrina Baddeley said the experience has changed the life and career trajectory of previous participants and the partnership has supported more than 70 participants. Application opening and closing dates are outlined below: Leadership Great South Coast (LGSC) open until 11 October 2019 — visit www.lgsc.org.au/ The 2018 LGSC program allowed participant Peter Gaffy to grow and develop, both personally and professionally. “I have gained an even greater understanding of the region that I live and work in, and I’ve met some fantastic people and developed a really strong community network. Most importantly, the program has really shown me that you don’t need to be at the top of an organisation to demonstrate leadership. Great leaders have the ability to influence and motivate outcomes at any level,” Peter said. WITH Gippsland Community Leadership Program (GCLP) check http://www.gclp.asn.au/ for WITH details. WITH Sallie Jones’ life was ‘already at capacity’ when she applied. “It was an incredible opportunity to gain an enhanced understanding of the history, opportunities and challenges facing the Gippsland region,” Sallie said. She learnt to understand and enhance her leadership style of influencing employees and ALL STANDARD MARKER RESULTS CAN NOW BE INCLUDED WITH YOUR GEN community volunteers to step up to the plate, whatever their skills. NDARD MARKER RESULTS CAN NOW BE INCLUDED WITH YOUR GENOMIC RESULTS Loddon Murray Community Leadership NDARD MARKER RESULTS CAN NOW BE INCLUDED WITH YOUR GENOMIC RESULTS Program (LMCLP) open until 30 September 2019 — visit www.leadlm.org.au/ Off-Fl BLAD Beta Casein (A2A2) Citrullinemia Emma Dotollo is working onFishy a dairy farm at CalivilCVM in the Loddon Shire. 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and community committees and to contribute positively in their workplaces,” Dr Noble said. “I’d strongly encourage individuals wanting to contribute to a strong Australian dairy industry to apply for a place on one of these programs and take advantage of the great opportunities they offer,” he said. Regions covered include south-west Victoria

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DAIRY NEWS AUSTRALIA OCTOBER 2019

ANIMAL HEALTH  //  29

Know your fodder: feed testing facts THIS SEASON  there is the potential for a

fodder supply shortage across Australia’s dairy regions. In times of low pasture supply, it is essential to carefully plan what the likely feed requirements will be for your herd and actively manage the quality, supply and price risks of the bought-in feed. This helps ensure the nutritional needs of the herd are met while reducing the risk of adverse feeding events, such as ruminal acidosis, exposure to mycotoxins and chemical residues.

Why should I feed test? The quality of a feed can be highly variable and is influenced by a range of management and seasonal factors. However, the only way to know the absolute nutritional value of your home-grown or bought-in feed is to feed test a sample of the feed. The information from a feed test can help indicate how much an animal is likely to consume and how this will affect her growth or milk production. This may impact important management decisions, such as how to effectively utilise the feed and if any additional supplements are required. The results also help quantify the dry matter of the ration and if

Description

there is any opportunity to use alternative, less costly fodder.

Description

Interpretation

Acid detergent fibre (ADF; per cent of DM)

What feed samples do I need? Core samples of your hay or silage can be obtained and tested for nutritional value. Numerous samples should be taken from bales or the feed face (if using pit silage). Silage sampling should be delayed for 6 to 12 weeks to ensure complete fermentation. Well-preserved silage will ferment in 6 weeks, but fermentation will proceed more slowly if the preservation is less efficient. It is ideal to also weigh a representative proportion of round or square bales to enable optimal interpretation of the feed test results. It is recommended to contact your veterinarian or nutritional adviser to discuss feed testing options of your herd. When submitting feed samples for analysis it is important that the samples are representative of the feed the herd will consume and processed according to the laboratory’s requirements.

Dry Matter Digestibility (DMD; per cent)

Metabolisable Energy (ME; MJ/kg DM)

Measures the plant components (fi bre) that are the least digestible, including cellulose and lignin� As ADF increases digestibility decreases, so forages with high ADF are typically lower in energy� Measures the amount of a feed removed after passing through the cow’s digestive system� The higher the digestibility, the better the feed quality� Estimates the amount of energy in a feed available to the animal to perform normal physiological functions� The higher the ME the better the quality of feed� ME is estimated from digestibility� For high levels of production, the energy content of the diet should be above 11 MJ ME/kg dry matter� Examples include:• ■ Concentrate feeds: ~11–13 per cent ■ Hay: ~9–10 per cent ■ Silage: ~9–11 per cent

Interpreting a Feed Test Result Interpretation of the results of a feed test can be summarised as follows:

Interpretation

Sample

Gives details of the sample sent to the lab�

Moisture

Measures the weight before and after drying to give moisture percentage�

Dry Matter (DM; per cent)

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The percentage of the residual feed after removing the water content� Examples include: ■ Concentrate feeds: ~90% DM ■ Hay: ~85-90% DM ■ Pit silage: ~30-35% DM (Less than this may result in poor fermentation) ■ Baled silage: ~35-45% (Less than this may result in very heavy bales with poor fermentation� More than 45% DM will result in inadequate fermentation due to poor compaction�)

Crude protein (CP; per cent of DM)

Gives an estimate of the protein content in a sample� In good silage, there should be only a small difference in the quality of the silage compared to the original pasture� Examples include: ■ Concentrate feeds: ~10-50%, depending on type ■ Hay: ~9-20%, depending on type ■ Grass silage: ~16-17%

Neutral detergent fibre (NDF; per cent of DM)

Measures the amount of fi bre that consists of various components (hemicellulose, cellulose and lignin)� The amount of NDF is negatively associated with the cow’s dry matter intake — the higher the NDF the less a cow can eat� High-quality silage will have an NDF of 50 per cent or less� Hay can range from ~40 per cent (lucerne hay) to 60 per cent (grass hay) NDF�

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DAIRY NEWS AUSTRALIA OCTOBER 2019

30 //  MACHINERY

New Kuhn baler tackles bale capacity THE LONG-AWAITED KUHN SB 1290 iD

baler is arriving on Australian soil offering hay farmers improved profitability, reduced transport costs and efficiency in all crop conditions. Launched at the Henty Machinery Field Days, KUHN Australia marketing manager and baler product specialist Michael Murer said the KUHN SB 1290 iD is designed with simple, efficient techniques like integral rotor and power density that produce rock-hard, perfectly shaped bales. The KUHN SB 1290 iD can work in various crops such as silage, hay, straw, lucerne, maize straw and sugar cane leaves. Where crop cutting is required, the OMNICUT 23 cutting system with individual hydraulic protection on the knives, ensures a perfect cutting quality regardless of working speed and crop type. This new generation large square baler with

robust driveline is designed to achieve high capacity and high bale weights combined with excellent driver convenience. “The SB 1290 iD boosts profitability by producing heavier bales, increasing the compaction by 60 plus tonnes and provides the highest density bale by a margin of 25 per cent over conventional balers,” Mr Murer said. “Even in the most challenging circumstances it achieves this through the TWINPACT double plunger technique that formulates higher density bales whilst using less power and avoiding massive peak loads on the main gear box.” Intake capacity is also one of the most important factors in profitability and the SB series features a high-performance crop intake system. The newly designed crop guard, in combination with a torque increase on the rotor and on the feeder fork driveline, ensures up to 15

The KUHN SB 1290 iD baler offers hay farmers improved profitability, reduced transport costs and efficiency in all crop conditions.

per cent higher intake capacity with increased endurance properties. The KUHN patented torque regulation system on all SB series models ensures a perfect balance between capacity and density. The crank angle position sensor and plunger rod load pins measure the total machine load. Precise machine load measurements are performed throughout the complete plunger cycle. The benefit of this sophisticated measuring method is that extra bale weight can be achieved.

This results in a higher transport and handling efficiency. The smart design offers important accessibility to the inside of the machine during daily inspections and maintenance. For added safety, the knotter deck is equipped with solid stairs and a safety railing. Moreover, the driver can benefit from optimal comfort thanks to the heavy flywheel, the load sensing hydraulics and the torque regulation system.


DAIRY NEWS AUSTRALIA OCTOBER 2019

MACHINERY  // 31

Robot feeder THE FIRST robotic feed pusher in Oceania to

refresh and also remix feed has been installed on a dairy farm in the South Island of New Zealand, with the farm already reporting a promising milk production increase and significant labour savings. DeLaval’s OptiDuo remixes and repositions supplementary feed in barns and on feed pads to ensure cows have constant access to refreshed feed. The robot can be programmed to position and mix feed around the clock, to increase feed intake and reduce waste. “We’re not people who invest in new technology just for the sake of it,” Bruce Eade, who farms pedigree Ayrshires and Holstein Friesians near Gore, New Zealand, said. “We had been pushing feed out with a tractor but when we started autumn calving and winter

The first robotic feed pusher in Oceania to refresh and also remix feed has been installed on a dairy farm in the South Island of New Zealand.

“The DeLaval OptiDuo is helping re-invent the way we give cows access to nutrition, as part of a suite of robotic technology that allows farmers to spend much more time on other parts of their business.” To see more details about the DeLaval OptiDuo, visit www.delaval.com.

More grass More MILK

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“It’s also nice to know that I don’t have to pull my boots back on after dinner and head back down to the barn late at night.” milking, we could justify buying a robot to give the cows automated access to more palatable feed throughout the day and night.” The farm had previously been using a tractormounted tyre to push feed to the winter milking herd, which required a trip to the barn every night after 9 pm. The DeLaval OptiDuo robot works 24/7 and features a twin-spiralled rotating auger that lifts, mixes, and aerates the feed while repositioning feed closer to the fence. It automatically handles varying amounts and types of feed, for example total mixed rations, silage, hay and fresh grass. “I’ve just added an extra run, so the cows are now getting well-mixed feed seven times in 24 hours. We’ve already seen an increase of nearly 1 litre per cow per day in milk production at a time when this is the only thing that’s changed on the farm,” Mr Eade said. “It’s also nice to know that I don’t have to pull my boots back on after dinner and head back down to the barn late at night.” The OptiDuo runs along an induction line and can be easily programmed to alter feed times and frequency. "You can actually smell the freshness of the feed when you walk in the barn. The smell completely changes when the feed is properly aerated,” said DeLaval’s Katrina Lee. “We’re seeing real interest in this technology from dairy goat farmers too. “Automated feed mixing and repositioning helps maximise dry matter intake, minimise feed sorting, and allows cows more time for lying down and ruminating.” The DeLaval OptiDuo has been designed with simple maintenance in mind; no need for a grease gun and there are few parts requiring service. "Animal welfare, farm profitability, work efficiency and food safety are challenges that farmers around the globe face with increasing pressure,” DeLaval Oceania’s Justin Thompson said.

Above: Alan Marx with his Tow and Fert Multi 4000 applying his brew in Taranaki. The Tow and Fert’s versatility is one of the many benefits on farm allowing for multiple products to be applied to pasture in one pass.

ses Molas

DO THINGS YOU HAVE NEVER DONE ON THE FARM BEFORE WITH A TOW AND FERT. Once upon a time there was a separate machine for everything. A bulky spreader for your solid fert, a liquid spray machine for foliar applications like weed spray, and a seed spreader for overseeding your pasture. Farmers would make three trips out onto the farm for the application of these products.

As a specialist liquid spray machine, the Tow and Fert has been designed to enable farmers to dissolve their N fertiliser in the tank in minutes, suspend UFP solid fertilisers in the liquid, spray small round seeds such as chicory, plaintain, clover and swedes, and even apply weed spray when required, all while using effluent as a base liquid.

The revolution in farm machinery technology has continued to make farmers more efficient and the Tow and Fert is at the forefront of this change. Tow and Fert’s patented liquid spray technology means that farmers can now use one machine for all three of the above applications on their farm.

Tow and Fert is not only revolutionising the application of fertiliser for dairy farmers, it is also saving them money by significantly reducing capital fertiliser inputs and helping to increase milk production.

Tow and Fert is a machine that you will quickly come to realise is an indispensable part of your farming system.

“IT’S A MAGIC WAY TO UTILISE ONE MACHINE TO DO A BROAD SPECTRUM OF JOBS ON THE FARM.” Alan Marx on his Tow and Fert Multi 4000 Beneath the shadow of Mt Egmont in Taranaki, Alan Marx is farming 330 cross breed LIC cows on 120 hectares. Running a conventional style dairy farm, Alan was looking for a better way to do things when he came across the Tow and Fert. “I spoke to a contractor who was spraying fert with a Tow and Fert for a friend in Southland. I realised that the machine could do a lot of things that I wanted to do other than urea. This is a very versatile machine and it’s ticked a lot boxes for me in terms of its versatility.” Alan’s farm nutrition system includes a number of different products such as molasses, lime flour, urea, magnesium sulphate and seaweed extract and selenium. “The other thing I’ve done is spread my small seeds, I’m talking about clover, chicory and plaintain. The Multi 4000 has a 6 tonne payload, so half of that is water and the other half is product. I’ll chuck in 40kgs of plantain seed and 40kgs of red or

white clover at the same time. There is no extra labour, no extra machinery costs and the strike through the seed being broadcast through the Tow and Fert is absolutely unbelievable.”

Alan Marx

And as for the results on the farm, “One of the things we’ve noticed on farm is how even the grass is growing and the grass sward is very, very thick. We have got a lot greater plant density since we’ve been using the Tow and Fert. I’ve described the grass to a lot of people as carpet grass, it’s as even as the pile on a carpet.” And when it comes to milk production in the VAT “The results of the improved grass growing are that we are producing more milk. It’s as simple as that.” Multi 4000

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DAIRY NEWS AUSTRALIA OCTOBER 2019

32 // MACHINERY

I want another one! IT’S BEEN  a while now since I sold my Case

backhoe. The sting of losing money on the overall ownership experience has faded at a (more or less) similar rate to the joy of the cash infusion when the sale went through. At the same time however, the steady accumulation of a list of jobs that require some form of excavating capacity is also becoming apparent. There are stumps to clear, wet spots in paddocks to tidy up, drains to clean, and places where new poly pipe would be great. I’m sure you can see where I’m going with this. But before purchasing another machine, it’s important to consider the other options. So here goes! Contractor? Nope. Shovel? Hard pass. Hire machine? Actually, this is a serious option. Loyal readers may recall that years ago I had the use of a 1.4 tonne Caterpillar mini excavator. A beast of a

machine, it was comfortable, efficient and tough. It did a lot of the early work around here, but for regular, minor jobs, hiring is a pain. So what about buying another machine? Scrolling through the list of affordable options, hypothetically, is a depressing (hypothetical) exercise. Another time-bomb backhoe is probably premature, and I don’t have the shed space anyway. One option that has caught my eye is the ever-growing stream of Chinese mini excavators pouring out of containers at warehouses and backyards all over the country. I’d like to think I’ve got some experience now in the Chinese equipment purchasing game. There are some red flags (no pun intended) to watch out for, some trade-offs to accept, and some words in the advertisement that you are never to take seriously.

GRUNT JOHN DROPPERT I’ve been looking, and one of the leading contenders in the limited-budget, limited-aspiration market is the Rhinoceros XN08 mini excavator. “Mini excavator” is actually a dramatic overstatement, given this thing weighs only 800kg. It fits on a pallet, for goodness sake. It has a ONE-cylinder engine. Even my lawnmower is a V-Twin. But it is CHEAP. And there seems to be literally dozens of importers bringing in the same machine, selling it with various claims of reputability, alongside their other Gumtree ads for used tyres, campervans and old forklifts. The Rhinoceros is also known in other international markets, with more than one YouTube video dedicated to reviewing it. There are, naturally, downsides. The foremost being the chance to be taken on parts availability, in the event that something, somehow breaks.

One would expect that given such a machine has about the digging force of a shovel, but without the accompanying operator fatigue, it wouldn’t be too hard to overload and damage. There’s also the mind-numbing irritation associated with the constant ‘putt-putt’ of the single cylinder engine and rattling of every metal-on-metal joint, latch and pivot point. But after an hour or two on the shovel, it’s a mighty tempting proposition.

New range at O’connors SAMASZ AND Elho products were launched

at Shepparton’s O’Connors dealership on September 11. The European brands are new to Australia in the past few years and O’Connors has been selected as the dealership for northern Victoria and the southern Riverina. On display were rakes, front and rear mowers and an Elho silage bale wrapper. "It gives them (farmers) in the Goulburn

and Murray valleys another leading European brand of hay equipment in the area," O’Connors Shepparton sales representative Bernie Teasdale said. "It gives us a good range of availability in a season that has come on us very, very quickly." For those who missed out on seeing the machinery at the launch, O’Connors will be showcasing it at the Elmore Field Days.

The Elho 750S basket rake that was at Shepparton’s O’Connors branch.

O’Connors Corowa sales representative Nick Hill, sales administrator at Corowa and Shepparton David Elford and Corowa sales representative Joe Gorman stand next to the Case 180 tractor pulling the SaMASZ KDF 861W butterfly mower conditioner with mergers.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

MACHINERY  // 33

Henty winner from the west A SOUTHERN NSW designed, and manufac-

tured grouper bin has won the coveted Greater Hume Council Award at the Henty Machinery Field Days. Kaidan and Dallas Boyd, of Clear Ridge Fabrication, from West Wyalong, won the award for their CRF SUPA Bin 42 000. The award recognises the best new Australian designed and built agricultural machine and was judged by a panel of independent judges at the Henty Machinery Field Days. Launched in time for the autumn sowing season, the CRF SUPA Bin 42 000 is the result of growers wanting a bin to reduce fill-up times and contamination between seed and fertiliser for air seeders. Traditionally, the Boyd family crop 3441 ha of

wheat, barley and canola north of West Wyalong. When the drought took hold, the family made the decision to lease out their farm and the two brothers combined their talents as qualified welders. “On the farm, we always wanted a bin like this but had the time and opportunity after leasing the farm to start designing them,” Kaidan said. “We built and delivered our first two bins — a 42 000 litre model, 40 feet long and mounted on a skel trailer, and a 21 000 litre, single six metre bin mounted on a super dog — just before sowing this year.” Mr Boyd said customers had been looking for a bin to take the place of multiple trucks and cut down on fill-up time of an air seeder. He said the SUPA Bin 42 000 achieved both

of these with the added bonus of moving away from tipping trucks in the paddock, resulting in a safer operation. “Growers can use the bin for the purpose of mixing fertiliser straight into the seeder saving the cost of paying a premium price to get it done elsewhere,” he said.

“This bin features our remote-control system for doors, belts and the lighting system. “It is fitted with a zero-contamination conveyor, GX270 Honda engine, roll top tarp, rear and front access ladders and is mounted on a skel trailer using container locks.”

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DAIRY NEWS AUSTRALIA OCTOBER 2019

34 //  MACHINERY

Compact offering from JD hits market JOHN DEERE has developed a completely new

6M Series tractor range, with higher standards of comfort, performance, manoeuvrability and visibility. These replace the previous 6M, 6MC and 6RC Series and include three new four-cylinder models from 90 to 120 hp, featuring a 2.4 m wheelbase.

John Deere has released a new 6M Series tractor range.

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This is a more compact 6M Series tractor than John Deere has offered before, with the low bonnet design presenting a clear view to the front of the machine. In addition, a slimmer steering wheel cowl and the newly designed panoramic window in the cab roof provides full visibility for loader work or operation in confined spaces. Improved manoeuvrability is a result of the short wheelbase, which allows a tight turning circle of only 4.35 m on the new four-cylinder models. Despite their slim design, these full-frame concept tractors feature a maximum permissible gross weight of 10.45 tonnes, which means an unrivalled payload capacity in this class of up to 4.7 tonnes. All these latest 6M Series tractors feature a newly designed cab that is significantly brighter and more modern in appearance, as well as extremely quiet, with a rating of 70dB(A). All the important operating functions are located on the right-hand panel, which has been completely redesigned, while models equipped with the CommandQuad transmission can be optionally fitted with a Compact CommandARM, with the functions located on the armrest. Up to four mechanical or electric SCVs are available — the latter is a new option available for the first time on these tractors. Switches on the electrohydraulic joystick are fully programmable, and direction of travel can be changed on both this and the mechanical joystick via a push-button. Driver comfort is also enhanced by mechanical cab suspension and the proven TLS (triple link suspension) front axle, while 360° LED lighting is optionally available for perfect illumination of night work. Three different gearbox options are offered on the new 6M Series. PowrQuad and AutoQuad are four-step powershift transmissions, while CommandQuad Plus offers fully automatic gear and range shifting without using the clutch. Thanks to EcoShift, the maximum speed of 40 km/hour is achieved at a reduced engine speed of 1590 rpm.

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Two biosecurity and livestock workshops will be held in Tasmania in October. Covering topics including general principles of biosecurity, national vendor declarations, feral cats and toxoplasmosis, weeds and other topics, attendees also have a chance to grab a free biosecurity sign and on farm planner. The events will be held at Longford Bowls Club, Wednesday October 30 from 4-6pm and at the Devonport Bowls and Croquet Club, Thursday October 31 from 4-6pm. The event will be followed by a barbeque dinner. RSVP October 16 to on-farm biosecurity project officer Jacky Sands on 03 6332 1800 or email jacky.sands@ tfga.com.au



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