Dairy News Australia - December 2020

Bega buys Lion................................................. PAGE 3 NEW DEAL

Norco gets supermarket lift with Coles deal.

PAGE 5

‘BEST SALE IN OZ’

Auctioneers dub Gorbro Holsteins the best sale in the country.

PAGE 20

DECEMBER, 2020 ISSUE 122 // www.dairynewsaustralia.com.au

CERTAINTY UNDERPINS GROWTH A refusal to accept the status quo drives success at one Calivil farm.. farm.

PAGE 16

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DAIRY NEWS AUSTRALIA DECEMBER 2020

NEWS // 3

Bega enters the Lion’s den BEGA CHEESE has confirmed it will buy

New indices reflect priorities. PG.X8

Lion Dairy & Drinks for $534 million, substantially boosting its product range and retail presence.

Bega informed the share market of its intention to buy Lion — which produces milk drinks, yoghurt, juices, cream and custard — on November 26.

Executive chair Barry Irvin said the purchase would provide more manufacturing and distribution resources and benefit its supply chain.

Bega Cheese will also gain Lion’s national manufacturing footprint of 13 sites.

Lion Dairy & Drinks, owned by Japanese company Kirin, produces a number of bigname fresh milk brands, including Pura, Dare, Farmers Union, Big M, Masters, and Dairy Farmers.

Lion also has Australia’s largest cold chain

distribution network, which supplies convenience stores.

“The acquisition delivers important industry consolidation and value creation with synergies across the entire supply chain,” Mr Irvin said.

“The expanded product range, manufacturing and distribution infrastructure and brand portfolio realises our ambition of creating a truly great Australian food company.”

A previous $600 million bid to buy Lion by Chinese-based company Mengniu Dairy was knocked back by the Federal Government in November last year, while an offer by Canadian-based processor Saputo, which purchased Murray-Goulburn in 2018, was withdrawn on November 20.

The purchase is expected to be completed by the end of January, and will involve raising $401 million from a share sale to institutions

and retail investors.

Bega currently sources milk from dairy farmers in Victoria and NSW, with the purchase of Lion now opening up supply from Western Australia, Tasmania, South Australia and south-east Queensland.

Bega has been increasingly diversifying in recent years, spending $460 million in January 2017 to buy most of Mondelez International’s Australia and New Zealand grocery and cheese business, including the iconic Vegemite brand, as well as purchasing Saputo’s Koroit milk-drying facility in western Victoria for $250 million and buying a stake in Capilano Honey.

It is anticipated the $560 million purchase will generate more than $3 billion in annual revenue.

Shares in the company stopped trading while it prepared the share sale.

Recycling target for plastics. PG.13

Work smarter not harder. PG.23

NEWS .......................................................3 – 23 OPINION ......................................................... 6 MARKETS ...................................................... 11 ANIMAL HEALTH ............................ 24 – 26 MACHINERY....................................... 27 – 31

Bega Cheese executive chair Barry Irvin at the company’s Tatura Milk factory in northern Victoria.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

4 // NEWS

Ban for former milk bosses FORMER CHIEF executive of Murray Goulburn

Co-operative Gary Helou has been banned from managing corporations for the next three years for failing to disclose critical financial information.

Bradley Hingle, the former chief financial officer has also been banned for three years.

The pair admitted numerous breaches to the Federal Court including failing to inform investors that the now-defunct processor was not going to meet its financial targets.

The court found both men were aware of market sensitive information between March and April 2016, but did not update public statements made in February 2016 that painted a much rosier picture.

Both were directors of Murray Goulburn Co-operative and the Murray Goulburn Responsible Entity Limited.

MGRE was the trustee of the MG Unit Trust, a managed investment scheme that, under the Corporations Act, had to comply with Australian Stock Exchange rules for continuous disclosure.

In handing down his judgment, Justice Jonathan Beach gave a detailed account of the circumstances leading to the breaches.

“Given the nature of the investors that have

been harmed by the relevant conduct and the fact that this is the last of the proceedings,” Justice Beach said.

“They are entitled to have some picture at least as to what occurred.”

The substance of the breaches was Murray Goulburn’s reliance on a boom in Chinese demand for 1 kg bags of adult milk powder, known as sachets.

Sachet volumes in the first half of FY16 had been about triple the sachet volume in the second half of FY15, and in excess of the sachet volume for the whole of FY15.

The February guidance was based on that growth continuing and included a higher farm gate price to farmers.

By April the price had been slashed and Murray Goulburn was demanding dairy farmers repay money.

Chinese New Year suppressed demand, Murray Goulburn struggled with distribution in China and could not fulfil contacts because of production limitations.

As the bad news got worse, between February and April, there was no update to the guidance.

As a result of a separate prosecution by the Australian Competition and Consumer

Commission in 2018, Mr Helou and Mr Hingle had both paid substantial financial penalties and voluntarily agreed not to manage a corporation that carried on business in the dairy industry for a period of three years.

The Australian Securities and Investment Commission pressed on with its own prosecution, the fifth and final case to reach court.

The case survived an attempt to stay or dismiss the proceeding as being “unjustifiably oppressive”.

In considering applications by both former directors to remain as managers of companies they currently manage, Justice Beach said the breaches were “. . . unintentional contraventions by a senior officer of a public company who had an otherwise clear record and was otherwise of good character.”

However, he said the disqualifications were “. . . both necessary and sufficient to serve the interests of deterrence and protection”.

“More generally, the failure by MGRE to disclose that it was unlikely to achieve its profit forecast artificially maintained the market price of the units,” Justice Beach said.

“As a consequence, the market operated on a false basis.

“It is not to be doubted that conduct leading

to such a market distortion is serious to say the least.”

Mr Helou will be able to continue to be involved in a small, privately-owned vegan health food start-up and family trusts.

Mr Hingle can remain as head of finance for a small clothing and footwear company.

The co-operative, which was the largest milk company in Australia, was swallowed up by Canadian processor Saputo.

Former Murray Goulburn chief Gary Helou.

NEW DAIRY AUSTRALIA DIRECTORS Dairy Australia members have elected three board directors.

Six candidates stood for election at the annual general meeting, which was held online due to COVID-19 restrictions.

Tania Luckin and Roseanne Healy were re-elected respectively as a Milk Producer Director and an Agribusiness, Innovation and Change Management Director, while Paul Roderick was elected to the Board for the first time as a Milk Producer Director.

Dairy Australia Chair James Mann has congratulated the new directors on their appointments.

“All three bring significant farming and business experience to assist us best deliver for the dairy industry,” he said.

“Graeme Nicoll retired from the Board and I would like to recognise Graeme’s commitment to the industry over many years in roles with both GippsDairy and

Dairy Australia. Graeme has brought an intelligence and sharp analysis to the work of the board and we wish him well.

“I would like to acknowledge Carlie Barry, Phil Ryan and David Beca for their interest in standing as candidates in our director elections. There has been an unprecedented level of interest from people wanting to become a director of Dairy Australia and support our organisation in being the best it can be in the service of dairy farmers.”

Two additional items of business were approved by members, including the inclusion of profitability as an objective in Dairy Australia’s Constitution and an increase in the available remuneration pool for Directors.

Mr Mann, who was re-elected as chair at a board meeting following the AGM, said it was an exciting time for the dairy industry,

with conditions improving in most dairying regions and the industry committed to delivering on the Australian Dairy Plan released at the end of September.

“2019–20 was a year of contrasts, with dry conditions and damaging bushfires in the first half of the season followed by improved conditions in the back end for most regions. We’ve now seen consecutive monthly increases in national milk production for almost 12 months in a row and there’s cautious optimism for a profitable season for many farm businesses,” he said.

“Our supply chain has worked together very effectively during bushfires and COVID-19. Milk continued to be picked up from farms throughout these crises and this collaboration bodes well for our future, as industry organisations lock into delivery of the Australian Dairy Plan.

“Dairy Australia is focused on supporting the implementation of the dairy plan through our own new strategic plan.”

More information including a recording of the AGM are available visit: www. dairyaustralia.com.au/AGM

Dairy Australia chair James Mann.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

NEWS // 5

Step-ups unlikely GEOFF ADAMS

INDUSTRY FORECASTS of tougher market

conditions for dairy have come to pass this spring, with little prospect of farm gate price step-ups.

The Australian Bureau of Agricultural and Resource Economics and Sciences has forecast the farm gate milk price in Australia to average 47.9 cents per litre in 2020–21, down nine per cent from high levels in 2019–20. This is above the five-year average of 46.9¢/litre.

The big processors are offering about $6.20/kg of milk solids to $6.30/kg MS for northern Victoria suppliers this spring, depending on the supply curve, while smaller companies will go up to about $7/kg MS, according to a Milk2Market report.

Milk2 Market commercial development manager Richard Lange said it appeared the major processors had decided to start the season, the first operating under the dairy code of conduct, with the maximum sustainable price.

The downside to this strategy was the knowledge that step-ups may not eventuate in spring due to the international commodity prices and the foreign exchange rate. “I think suppliers would rather have the money up-front at the start of the season than wait for it to be delivered down the track,�

Mr Lange said.

He said in recent years the processors had

been more aggressive in opening stronger.

Market conditions were different last year and average prices were around $7/kg MS, but conditions this year dictated a price closer to $6.

With the appreciation of the foreign exchange rate of between 10 and 15 per cent and the softening in demand from key markets, processors were in a squeeze.

Having said that, Mr Lange said there were some specialty processors offering better prices and he encouraged dairy farmers to compare prices. “Smaller players tend to want flatter supply curves, so you have to take that into account and adjust any changes in input costs.�

The Australian Dairy Export Index — which looks at milk powder, cheese and butter exports — has been declining since January this year.

On Friday, November 27, Fonterra advised its Australian suppliers there was no step-up coming, following the bi-monthly price review.

The company is sticking to its average farmgate milk price at $6.40/kg milk solids and had narrowed its forecast closing range to $6.40 to $6.55.

The company is looking towards significant improvement in market conditions to achieve the top end of the range but has seen softness in demand from key categories such as Nutritionals.

The other significant factory, foreign exchange rate has strengthened since Fonterra announced its opening price in June, which has offset any gains in commodity prices.

NORCO GETS SUPERMARKET LIFT The Norco Co-operative has secured a landmark expansion deal with major supermarket chain Coles, which is expected to increase the company’s branded white milk volume by 23 per cent over the next 12 months.

The expansion will increase white milk demand by 4.7 million litres and delivering the local product to more consumers across the country.

From October, Australians can expect to see the increased presence of the iconic brand in 390 Coles stores from major metro to rural and regional locations across Queensland and New South Wales.

Norco chief executive officer Michael Hampson said the expansion will support

Norco chief executive officer Michael Hampson.

key farmer objectives and ensure local dairies are sustained well into the future. “The expansion of Norco branded fresh milk into 390 Coles stores across Queensland and New South Wales will create increased demand from our loyal consumers and provide our farmers with confidence in the future� Mr Hampson said. “We can’t thank our customers enough for their overwhelming support, their purchasing power has resulted in more product availability which supports farmers and allows more to experience the high-quality farm-fresh difference that has made Norco famous over the last 125 years.�

DAIRY NEWS AUSTRALIA DECEMBER 2020

6 // OPINION

EDITORIAL

A year of change What a year it has been.

At the beginning of the year, as much of the country was battling bushfires, I doubt many of us would have predicted what was to come.

The year 2020 will be remembered as a year like no other, with coronavirus sweeping the globe.

But for many across the country and in dairy sheds, life continued to go on.

And, remarkably given the turmoil in the wider community, it’s been a pretty good year for most across the country.

There’s been decent rainfall and strong milk prices for much of the country.

And although we can’t expect to see step ups any time soon, there’s a bit more of a positive feeling around the industry.

We’ve seen many changes this year — the mandatory code of conduct came into full effect, the Australian Dairy Plan was released and markets have been subject to the effects of COVID-19.

By the time June 30 roles around the mandatory code of conduct will have ticked off its first full season and we’ll start to get a better idea of the performance and changes its made in the industry.

Big M brands could be back in Australian hands soon.

Big M comes home The iconic milk label, Big M, is back in Australian hands, after a bid by Bega Cheese got off the ground last month.

Lion purchases around 1 billion litres of milk from more than 550 Australian farms each year.

Big M is one of the brands in the former National Foods stable, owned by Kirin Foods, and a part of the Lion Dairy group.

Shares in the dairy company, Bega, were placed in a trading halt on the ASX, pending a company announcement on capital raising.

Now, after a $543 million bid by Bega to buy Lion Dairy, it’s back in Australian hands.

Big M was launched in 1977 by the former Victorian Dairy Industry Authority and proved to be one of the most successful marketing campaigns for milk in Australia.

Lion Dairy comprises brands including Farmers Union, Dare, Vitasoy and Pura.

Bega reported a modest after tax net profit of $31 million for the last financial year, off a total revenue of $1.5 billion, up five per cent over 2018–19 due to strong sales in its international grocery market which grew by 15.1 per cent.

Earnings before income tax fell two per cent to $103 million, down almost two per cent from $104.8 million.

Advertising Max Hyde 0408 558 938 max.hyde@dairynewsaustralia.com.au Editor Alana Christensen (03) 5820 3237 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

At the same time, the Australian Dairy Plan will keep pushing forward with its plans to boost increase Australia’s annual milk production by almost one billion litres, add $500 million of farm gate value for farmers and help create several thousand new jobs.

With regular reporting to mark the industry against these goals, the capacity of the dairy industry is set to be put under a microscope.

It comes at a time when national milk production has been on the rise across the country for almost a year.

But the falling number of dairy farms in northern Victoria has left its mark on the figures — with northern production not reflecting the good conditions of the current season.

As the new year draws to a close and many in the cities wind down for the year, dairy farmers across the country will keep doing what they do best — producing quality milk for the country.

It’s a job that never stops, but here’s hoping you can all find a moment to share with your families and take stock of the year, and that the strong seasonal conditions continue into 2021.

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

WWW.DAIRYNEWSAUSTRALIA.COM.AU

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 DECEMBER 2020

NEWS // 7

Calls get louder for royal commission A UNION which counts dairy workers within

its membership has added its voice to ongoing calls for a federal royal commission into the dairy industry.

There have been numerous Senate inquiries into the dairy sector, but no royal commission.

The Docklands-based United Workers Union has more than 150,000 members — 4000 are dairy workers.

Last month the UWU supported strike action at a Lactalis dairy processing site in Bendigo where 140 workers walked off the job.

Victoria’s Farmer Power and New South Wales’ Dairy Connect started jointly calling for a royal commission in early September.

UWU food and beverages director Susie Allison said a royal commission was an effective way to secure the industry.

“With farmers being an integral part of the dairy industry, the United Workers Union supports the calls from Farmer Power and Dairy Connect for there to be a royal commission into the dairy industry,” Ms Allison said.

Farmer Power chief executive Garry Kerr welcomed the support of the UWU for an industry

“currently in crisis at a representative level” and facing a turning point.

“We call on the Federal Government to ask the Governor-General to instigate a royal commission into the Australian dairy industry so as to resolve the issues faced by our dairy farmers,” Mr Kerr said.

Dairy Connect president Graham Forbes said the royal commission being called for should focus on ensuring the long-term viability of the industry as well as any conflicts of interest.

“We know that action needs to be taken now in order to secure the dairy industry for generations to come and that a royal commission is an effective platform to allow that action to come to light,” Mr Forbes said.

Dairy Connect chief executive Shaughn Morgan said the many reports already done on the dairy industry were now “gathering dust on the shelves of parliament libraries and MPs’ offices”.

He said a royal commission with “judicial powers” would overcome the government gridlock and bring reform to an industry suffering from market failure since 2000.

Victoria’s Farmer Power and New South Wales’ Dairy Connect started jointly calling for a royal commission in early September - now they have the backing of the United Workers Union.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

8 // NEWS

New indices reflect priorities HEALTH AND business performance underpin

The refinements to DataGene’s breeding indices reflect what the herd improvement industry and farmers want, according to Semex national sales manager and Genetic Evaluation Committee member Vaughn Johnston.

refinements to Australia’s dairy breeding indices, as the industry improves how animals are evaluated to reflect the evolution of the nation’s herd improvement priorities.

These updates are expected to make it easier to choose animals to fast-track breeding priorities such as fertility and mastitis resistance.

DataGene has retained its Balanced Performance Index (BPI) and Health Weighted Index (HWI) but adjusted the emphasis of specific traits.

It has also removed the Type Weighted Index (TWI) and replaced it with a top list ranked by Overall Type and Mammary.

These updates were released as part of the December 7 release of Australian Breeding Values.

Breeders wanting specific type information will be able to access the new Type Tables in DataGene’s Good Bulls Guide.

DataGene chief executive officer Matt Shaffer said the changes reflected industry feedback and should make it simpler for farmers to achieve their breeding goals.

“The top animals for BPI are quite different to the top animals for HWI,” Dr Shaffer said.

“This allows farmers to identify animals with greater strength in fertility, for example, if that’s a breeding priority.”

Some changes to animal index values and reranking has occurred. The increased emphasis on health sees animals that are strong for health traits rise in BPI and HWI values and rank.

This doesn’t mean production isn’t a priority though, with bulls which excel in health and

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DAIRY NEWS AUSTRALIA DECEMBER 2020

NEWS // 9

production coming out on top.

“It’s raised the ranking of animals with superior health traits such as mastitis and survival, but they must still have good production ABVs to reach the top of the breed list,” Dr Shaffer said.

The updated BPI remains the best option for choosing animals based on a balance of traits which contribute to a farm’s bottom line, such as production, health, fertility, type, workability and feed efficiency.

Balanced Performance Index BPI changes include: The addition of survival and mastitis resistance.

• An increased focus on mastitis resistance/ cell count.

• Less emphasis on production (Australian Selection Index or ASI).

• Feed Saved has been removed from the Jersey BPI. •

Health Weighted Index The updated HWI is now a specialist index for breeders wanting to accelerate health and fertility traits.

• The biggest change to the Holstein HWI is doubling of weighting on fertility.

• Breeders using the Holstein HWI index should expect a reduced cow size and a cap on production improvement due to the reduced emphasis on per cow milk yield.

• Feed Saved is included in the Jersey HWI. •

Semex national sales manager Vaughn Johnston was involved in the review process

as a member of DataGene’s Genetic Evaluation Standing Committee.

He said the refinements to the indices reflected the priorities for the herd improvement industry and farmers.

“Through the engagement process, the feedback was that traits such as survival, daughter fertility and mastitis resistance were their higher breeding priorities,” Mr Johnston said.

“So, to see bulls with high scores for these traits at the top of the list, is a positive outcome.

It’s reflecting what the industry said it wanted in a breeding index.”

ABS business operations manager Bruce Ronalds is also a member of the Genetic Evaluation Standing Committee.

He said the updates meant breeders could really concentrate on the traits they wanted to see in their herd, without compromising on quality.

“Even with the changes, good bulls will continue to be good bulls on the BPI and HWI,” Mr Ronalds said.

“The clear distinction between the BPI and HWI makes sense. This HWI is a true reflection of the bulls which have the best health traits.

“If you pick bulls from the HWI index, you are well and truly breeding for health traits now.”

Results from the National Breeding Objective survey earlier this year showed daughter fertility was the highest breeding priority.

Australian indices were used by more than three quarters of respondents.

BPI was nominated as the most useful index by 71 per cent of respondents, 24 per cent favoured HWI while 16 per cent chose TWI. Only four per cent of respondents said they

Review process The updated breeding indices follow a sixmonth review, including an industry survey, analysis of farm gate and commodity values for fat, protein, feed and labour, as well as a scientific review.

The refinements to DataGene’s breeding indices reflect what the herd improvement industry and farmers want, according to Semex national sales manager and Genetic Evaluation Committee member Vaughn Johnston.

relied exclusively on TWI. Economic values for feed, labour, fat and protein have been updated to reflect recent markets.

The fat and protein price ratio remains at 0.50 as the Dairy Australia analysis couldn’t identify a significant long-term change in farm gate and commodity pricing to warrant changing the ratio.

If a significant and lasting change occurs, the indices will be updated to reflect this.

DAIRY NEWS AUSTRALIA DECEMBER 2020

10 // NEWS

Smart watch tracks staff BULLA HAS introduced wearable wristwatches

as part of its mandatory uniform in an effort to oversee staff movements as efficiently as possible.

The wristwatches, called Smart Badges, are a form of wearable contract tracing technology which log a person’s movement as they pass ‘nodes’ placed at the entrances to sites and key communal areas.

The badges are being rolled out effective immediately after a successful trial period at Bulla’s Colac site.

Bulla is a major employer in the Colac region providing about 700 jobs locally in the town which was hit by a COVID-19 cluster in September.

Bulla’s people and culture general manager Jacinta Munro was instrumental in the Smart Badge integration.

“The roll-out of the Smart Badge has been met with fantastic employee and union support and it has really been about letting our team know that their wellbeing is our first priority,” Ms Munro said.

“The technology was implemented during one of our biggest recruitment drives to date, in

a year when we have welcomed nearly 200 new team members to our sites in Colac.”

Smart Badge general manager Simon Finlayson said being on the front foot and able to quickly respond in the event of a positive COVID-19 case was a “real game-changer”.

“In a manufacturing environment, meticulously managing the set capacity limits is also now essential with enforced regulation — Smart Badge’s technology will help Bulla manage this using real-time data,” Mr Finlayson said.

Bulla chief executive Allan Hood believed it was the dairy processor’s responsibility to increase safety measures on behalf of the team and the broader local community.

“In additional to being an incredible assurance for the health and safety of our team, the technology has enabled us to effectively manage existing shift segregation, allowing precious minutes to be re-focused back on to our production line, creating assurances for the future of our business as well,” Mr Hood said.

Bulla employs 900 people across its Colac and Melbourne sites.

Visitors and contractors attending Bulla sites must also wear Smart Badges.

The contact tracing badges which all Bulla manufacturing staff must wear.

WATTLE HEALTH CEO RESIGNS Wattle Health managing director and chief executive officer Tony McKenna has resigned, the company’s board has confirmed.

Dr McKenna resigned from his position, which he had held since January, effective from November 6, and has been replaced by current chief financial officer George Karafotias.

Dr McKenna joined the company earlier this year to lead the execution of a vertically-integrated supply chain strategy, with a focus on baby formula.

The plan hit a speed bump when Corio Bay Dairy Group, a key element of the plan, went into voluntary administration on September 1 and all staff were terminated six weeks later.

“As a result of this significant change Dr McKenna indicated to the board that his contributions and interests would be less aligned with the company’s future direction,” a company statement said.

“While this is a disappointing outcome, the board thanks Dr McKenna for his contributions in the past nine months and wishes him success for his future professional endeavours.”

Wattle Health and SPC recently entered into a strategic partnership that will see SPC pay off $20 million of Wattle Health’s debt to complete the construction of the Corio Bay Dairy Group spray dryer in Geelong in exchange for 30 million shares.

Dr McKenna’s resignation was announced to the ASX on November 9.

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MARKETS // 11

Dairy markets remain robust WITH CHRISTMAS quickly approaching,

people from all walks of life are hoping for some normality after what can only be described as a very unusual year.

However, as we have all come to learn in a COVID-19 world, things do not always go as hoped.

Between the final Brexit negotiations, ongoing political uncertainty in the United States, and surging COVID-19 infection rates in the Northern Hemisphere, the end of the year is looking far from uneventful.

While Australians look forward to travelling interstate again and are getting ready to welcome more guests to their homes, people in Europe are strapping in for a smaller, quieter and potentially ‘locked in’ holiday season.

The catch is that this will almost certainly impact demand for dairy from global foodservice outlets as well as influence the amount of product consumers buy in supermarkets.

Consequently, even if you do not plan to hit the beach or the pub over the summer, COVID-19 still has a chance of reaching into your pocket.

That said, so far this year dairy markets have appeared mostly immune to the volatility brought on by COVID-19 and the contracting global economy.

Relatively balanced supply and demand fundamentals have kept dairy commodity prices strong, and while milk supply growth is picking up momentum, demand from China has continued to underpin current values.

However, following the announcement of new lockdowns in Europe, with some countries already pledging to restrict gatherings during Christmas, this market balance is starting to come under serious pressure. The future strength of dairy demand is again increasingly being questioned.

Robust demand for milk powders has managed to support strong prices for both whole milk

powder (WMP) and skim milk powder (SMP) this spring. Oceania WMP prices have remained relatively stable, maintained by ongoing demand from China.

Whilst WMP prices eased during the latest GlobalDairyTrade auction (event #271), fundamentals seems fairly well balanced for now.

The outcome of New Zealand’s milk production season will be the key price driver in the months ahead.

Throughout October, the price of SMP kept increasing in Oceania and were trading at a significant premium to Northern Hemisphere products. Ongoing strong demand from China and other Asian countries has also been keeping commodity values elevated so far.

However, in November the latest GDT auction saw prices decrease, and it appears most buyers are well covered in the short term.

As the COVID-19 outbreak disrupted dairy

GLOBAL IMPACT SOFIA OMSTEDT

supply chains, India has also produced a substantial amount of additional SMP this year, with reports suggesting it is as much as an extra 100,000 tonnes.

With the Indian State Government of Gujarat looking to subsidise the export of SMP, the market balance is likely to be put to the test in the months ahead.

In comparison to powders, milkfat products have been harder hit by this pandemic.

As foodservice outlets make up a considerable share of butter sales, the closure of these channels has weighed on overall demand. In October, some life returned to the milkfat market as retail demand in China picked up.

While prices edged upward, demand remains very uneven and subdued from non-grocery sale channels. Foodservice demand is expected to be further restricted this Christmas season in the Northern Hemisphere, and retail sales may also be

impacted if consumers can not entertain as many people as they normally would in their homes.

Additionally, as several markets, like Japan, still have large SMP and butter inventories on hand, milkfat values may face renewed downward pressure.

During October, cheese prices increased slightly as demand appears to have strengthened, with growing appetites in China and several South-East Asian markets.

Some reports suggest China had been facing a potential cheese shortage, following a surge in consumer demand, which resulted in increased buying to build up stocks.

Following the end of the lockdown in Victoria and growing consumer optimism in Australia, domestic foodservice demand is also predicted to rebound, which, if realised, could add some support to domestic cheese values.

However, any growth in demand in the Southern Hemisphere is likely to be balanced against decreasing purchase appetite in Europe.

In the past few weeks, demand for mozzarella cheese has especially come under pressure with reports suggesting prices may plummet.

In the US, cheddar cheese prices have also started to decrease, as the USDA support scheme has decreased its purchases of cheese products.

This may have implications for global prices in the months ahead.

So while all of us are ready to say goodbye to 2020 and welcome a new year, hopefully without quarantine and lockdowns, it is not likely we will be able to escape the increased volatility brought on by COVID-19.

With surging infection rates, a severe global economic contraction and weaker demand from the foodservice sector, the dairy market balance will be put to the test.

By all accounts, it looks like it may be a bumpy ride to 2021.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

12 // MANAGMENT

Focus Farmers wanted DAIRY NSW is calling for farmers to complete

an Expression of Interest application form to be one of the next selected Focus Farms.

Closing date for applications is December 18.

Interviews will be held in January, with the program scheduled for kick-off in February.

Dairy Australia’s Focus Farms program centres around farming families and enterprises.

It aims to assist Focus Farmers to achieve their stated goals during a defined period in which they are supported by a support group

made up of farmers and local service providers.

The Focus Farm program has been running for almost 20 years, with Focus Farms and their open days giving all farmers insight into how on-farm decisions are made and the impact they have on the broader farm business.

Farmers can use Focus Farms as sources of inspiration and reference points to inform their own decision making.

For more information on the 2021 Focus Farms program, email ifcarly.potts@dairynsw.com.au

NSW dairy farmers are being sought for the Focus Farms program

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DAIRY NEWS AUSTRALIA DECEMBER 2020

NEWS // 13 RECYCLING TARGET FOR PLASTICS The dairy industry’s target to recycle 100 per cent of plastic silage wrap waste on farms by 2030 has received a boost.

A $965,400 Federal Government grant will assist Dairy Australia in reaching the goal and develop a collection and recycling system for plastic wrapping used for silage making on farms.

The project aims to help provide a solution whereby plastic can be recycled responsibly.

Australian Dairy Industry Council president Terry Richardson said the grant

Formula sales take a hit A HEAVYWEIGHT in the baby formula market

has seen its profits take a hit after the COVID-19 collapse of the daigou trade.

A daigou or ‘overseas professional shopper’ is a person who buys products outside China and exports them to Chinese customers.

Daigous are notorious in Australia’s baby formula market, leading to a supermarket cap on how many tins of formula one shopper can buy at once.

The decline in the trade has affected the bottom line of Bubs Australia, who outlined the 34 per cent reduction in profit in a recent quarterly financial report.

The Melbourne-based manufacturer of formula, milk powders, organic baby food and children’s vitamins still made a total gross revenue of $9.4 million in the same quarter (July to September 2020).

Bubs Australia founder and chief executive Kristy Carr said overall sales had remained strong and continued to grow despite the distribution and volatility experienced in 2020.

“Despite this growth in core business areas, our group performance was considerably impacted by the sharp downturn in the domestic daigou channel, particularly in relation to our adult goat milk powder products,” Ms Carr said.

“To address the significant disruption to the daigou channel caused by the sudden border closure and increased international freight costs, we are also working alongside our corporate daigou partners to continue to actively support social marketing with their daigou customers via live-streaming and social e-commerce.”

Bubs Australia expects sales from Chinese onsellers will recover by the end of the year due to signs of a returning daigou market in October’s sale figures and with help from China’s major e-commerce events, especially Singles Day on November 11, China’s largest e-shopping festival or ‘commercial holiday’.

Singles Day has been known to create shortages of baby formula in Australia as daigous stockpile product before the event.

The brand’s new goat infant formula has become a star product for the brand since its launch in early 2020.

Bubs Australia is ranked as the number one goat formula on JD.com and is the fastest growing goat formula brand on Tmall Global — two popular e-commerce sites in the Asian market.

Bubs Australia is the leading producer of goat dairy products in Australia with its own exclusive milk supply.

The brand’s organic cow’s milk formula is supplied by Fonterra from its New Zealand milk pool.

would accelerate a key recycling target within the Australian Dairy Industry Sustainability Framework, which sets agreed sustainability commitments across dairy farming and manufacturing.

“It will enable us to set up collection infrastructure across dairy regions and we are also assessing opportunities to partner with other collection schemes to maximise efficiency of transporting waste to recycling centres,” Mr Richardson said.

Dairy Australia managing director David Nation said the funding would support a

nationwide approach to eliminating the environmental impact of farm plastics over the next decade.

“As part of this project we will work closely with key stakeholders including suppliers, plastics re-processors, farmers and other successful stewardship schemes to ensure that the systems developed remain practical for farmers and commercially realistic for all involved,” Dr Nation said.

“Our industry’s sustainability framework provides the transparency needed to

give the community confidence that our industry is taking responsible action now and in the future.”

The scheme is one of 15 that will help “move the dial” in Australia and shift mindset to see waste as a valuable resource, according to Assistant Minister for Waste Reduction and Environmental Management Trevor Evans.

To download the Australian Dairy Industry Sustainability Report 2019, or for further information, visit: susoz.dairyaustralia.com.au

DAIRY NEWS AUSTRALIA DECEMBER 2020

14 // MANAGEMENT

Breed change boosts business KIM WOODS

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calves and cull cows have been important cash flow tools in a rain-fed Victorian dairy herd this year.

This has come on top of the Fleckvieh attributes of longevity, fertility, robustness and temperament for Richard Humphris of Beech Forest.

Dr Humphris left consulting work as a veterinarian 20 years ago to go full-time dairying.

He milks 200 cows off 110 ha set in a 2000 mm rainfall zone comprising clay loam soils.

He has 69 ha of lower rainfall country for growing out the rising one-year-old and twoyear-old heifers.

“Originally we had a fair proportion of stud Holstein-Friesians in the herd but when we moved (from South Australia) to this high rainfall climate, it was a fair challenge for standard Jersey and Friesian cows,” Dr Humphris said.

“We ran into problems with fertility and mastitis so we moved to a Jersey/Friesian cross using New Zealand sires.

“With the low milk prices, I thought I needed to do something different and saw an advertisement for dual-purpose Fleckviehs about eight years ago.

“It was ideal — a dual-purpose cow producing milk with the value-added beef component.”

Dr Humphris initially used Fleckvieh semen over selected cows and has graded up to the point where matings are 100 per cent Fleckvieh.

Most of the milking herd is now three-quarter-bred Fleckvieh.

Dr Humphris was visited on-farm in 2015 by Dr Thomas Grup of Bayern-Genetik, Germany, and South African researcher Dr Carel Muller.

Dr Muller encouraged him to do simple comparative trials of the Fleckvieh crosses against other crossbreeds through herd testing on longevity and lifetime production.

“We get much greater longevity from the Fleckviehs due to better fertility, less mastitis and a better recovery if mastitis does occur,” Dr Humphris said.

The Saputo suppliers have transitioned to once-a-day milking to reduce stress on the family and herd, and leave extra time for essential farm maintenance and pasture production.

The move also meant they could use the existing 20-a-side swing-over dairy, avoiding extra capital costs.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

MANAGEMENT // 15 In the first year of once-a-day milking, the herd produced 75, 000 kg of milk solids and had jumped to 99, 000 kg by the third season.

The herd averages 3932 litres, 4.9 per cent butterfat, 3.8 per cent protein and 348 kg of milk solids across 287 days.

Last herd test, the highest daily lactation was Flekmaid at (once-a-day milking, second lactation) 31.8 litres, 4.5 per cent butterfat, 3.2 per cent protein and 2.45 kg of milk solids.

Rurex daughter Joygirl showed what Fleckvieh crossbreds are capable of under Australian conditions by producing 6209 litres, five per cent butterfat, 3.8 per cent protein, and 569 kg of milk solids across the 305 day lactation (once a day).

Components over the spring months in the herd are four per cent protein and 4.7 per cent butterfat, increasing to 4.2 per cent protein and five per cent butterfat over the summer.

“The most important thing is their temperament, they are beautiful cattle to work with and they have the other option of beef income,” Dr Humphris said.

“Due to the once-a-day milking and the environment, we find we do need excellent udders with a particular emphasis on udder depth and suspensory ligament.

“If a Fleckvieh has to leave the herd it will mainly be due to a low-slung udder.

“We are getting some really good uddered cows coming through now and that has helped our udder health.

“If they do get mastitis, I have observed Fleckviehs have a better ability to recover — they

Richard Humphris with one of his Fleckvieh cows.

are sturdy, robust cows in this harsh Victorian climate where it can snow in the winter.

“Where another cow may produce more on an individual daily basis, these cows have the ability to go on for a lot longer than our traditional Australian genetics in terms of fertility, lack of mastitis and survivability.

“We have very few problems with lameness compared with our earlier years with other breeds but once-a-day milking does contribute to this reduced lameness.”

Dr Humphris said the Fleckvieh added frame to the smaller crossbred females.

Fleckvieh fertility and once-a-day milking results in high conception rates with 80 per cent on the first service in the August-calving herd.

The couple joins 100 per cent of the herd to Fleckvieh sires, and they have daughters of Round Up, Rijeka, Waldoer, Reumut, Mahango, Waldbrand and Walfried.

“We mop up with Fleckvieh beef bulls — the calves have been one of the most exciting complements to the whole exercise,” Dr Humphris said.

“This year I did not sell one calf for slaughter at five days of age — they all went for pasture finishing to adult animals in the local area.

“I either sold them at one week of age or at eight weeks of age as a reared calf.

“This gives a significant cash flow at the beginning of lactation through the sale of those calves for continuing beef production.

“This results in the equivalent of 50 kg of milk solids start on any other cow in terms of profitability.”

Dr Humphris said the value of cull cows was a bonus on top.

“I recently sold Jersey/Friesian cross cows for $850 compared to $1200 for the Fleckvieh crosses,” he said.

During his career as a vet, Dr Humphris has experienced a range of calving difficulties in cattle.

“At the beginning I was rather cautious about what I would have to face up to with the Fleckviehs calving,” he said.

“But they don’t require assistance unless there is a malpresentation.

“We don’t select sires on calving ease but rather for production, udders and milk quality.

“Our heifers are calved at two years of age — we are not convinced this is the best but it suits our system.”

The milkers are rotationally grazed across perennial rye-grass pastures and fed a mixed grain ration of 2.5 kg in the bail.

Dr Humphris and his wife Christine have travelled to Bavaria, in Germany, to experience the Fleckvieh breed in its native environment and inspect sires.

“We aim to select the highest TMI bulls with a big focus on udder, shape and function,” he said.

“It was enlightening going over there, talking to the breeders and seeing 100 per cent Fleckvieh herds.

“Offering dual-purpose flexibility, they are a breed well worthwhile considering as we face these different economic and climatic challenges.

“We love our Fleckviehs. They have strength, vitality and production of milk and meat, and

The milking herd of about 200 cows are rotationally grazed on perennial pastures.

The robustness and longevity of the Fleckviehcross cow suits the 2000mm climate.

live for the moment.

“The Fleckviehs have a wonderful temperament — they live life to the full — full of grass, full of milk and full of meat. They cycle full-on and conceive full-on.”

For more information on Bayern Genetik, phone George Cassar on (02) 6550 7661.

DAIRY NEWS AUSTRALIA DECEMBER 2020

16 // MANAGEMENT

Certainty and systems underpin business growth WHEN IT comes to business, Jade Clymo

refuses to accept the status quo.

Growth has driven the success of his family farm and underpinned his passion for the dairy industry.

His business now milks 1500 Friesians, a herd expansion of almost 115 per cent in the past decade.

“It is not in our DNA to stay as we are, to put a lid on our herd size,” he said.

“Perhaps we should do it at some stage, but we never have.”

Realistically, the concept of capping the number of dairy cows at their Calivil farm has never truly been considered.

Mr Clymo’s parents Trevor and Jan, who ran the northern Victoria dairy farm before he and his wife Belinda, also endorsed growth.

After all, they share the same DNA. So, in October, when the cows moved into a free-stall American-inspired fit-out of an Entegra barn, Mr Clymo’s parents were supportive of the change.

“They like the growth, they like the progression,” he said.

“It was probably a little bit confronting at the start for them, but now they are happy to sit back and watch it all happen.”

The Clymos’ dairy business trajectory has run counterpoint to the northern Victorian and Australian industries.

Milk production in northern Victoria and the NSW Riverina during the 2019–20 season was down about five per cent compared to 2009–10 levels, according to Dairy Australia.

Compared to the highest production year during the past decade — 2014–15 at nearly 2.4 billion litres — production for this region during 2019–20 was down almost 34 per cent.

The 2019–20 national milk pool was about 8.8 billion litres, down from about 9.4 billion litres 10 years ago.

A plan was ‘brewing’ The rise in the Clymos’ farm size during the past decade wasn’t because they were immune to the climatic and economic

Jade Clymo with his son, 13-year-old Fynn.

pressures which triggered the retraction of the local industry.

In fact, it was quite the opposite.

These strains were the catalyst for the Clymos to act on an idea which had been “brewing” in Mr Clymo’s mind for years.

“With the water and droughts, just the cost of water, it meant we needed to use it better and that just leads to this style of farming,” he said.

“An equal (driver) would have been the size of our herd and where we go from here… there’s just so much pressure on our grazing platform.

“We probably nearly exhausted the land we could walk to. That’s why we had been buying farms where we could cut and carry fodder from, with the vision that — one day — we will build this and these farms will be able to supply fodder for that long-term.”

‘This’ is a 250 m-long by 36 m-wide 18-degree roof pitch Entegra shed, retrofitted with an American free-stall barn design.

It became home to 1200 of the Clymos’ milking herd last month.

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Their later lactation cows will continue to graze, for now.

Inside the shed, cows have individual sand bunkers where they rest. Feed is supplied via a central corridor.

“Sand was a simple system, gold standard for cow health, and we were starting from scratch — not retrofitting sand in,” Mr Clymo said.

“So, we had that opportunity to make it all right for sand from the start.”

Up to 90 per cent of the sand can be recycled through the barn’s flush system which washes it, with the manure, to an area where it’s separated.

International advice helped guide design For the Clymos, the American-inspired barn is a risk management strategy for their business, while also offering security for further expansion.

“To grow some more, it was either duplicate somewhere with a similar system or go down this path,” Mr Clymo said.

“I suppose it was not the easiest path …

the easiest path would have been to duplicate, but I figure it might just double our problems. When it is wet there’s double the tracks, and when it is hot there’s double the lack of shade, so we were more attracted to this.”

Business growth comes with an inevitable increase in staff.

The Clymo farm employs up to 16 people, which meant the methodical operation of the barn made daily tasks easier.

“The really big attraction to this system was the working conditions, which I thought would be more attractive to this generation of workers,” Mr Clymo said.

“Their job is systematic and repeated, it is not in the heat, dust or cold. They are not on a motorbike in the mud, they are on concrete doing the same thing every day.”

The labour component of the free-stall housed-cow system will be one of only a few aspects that the Clymos won’t adopt entirely from the United States.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

MANAGEMENT // 17 Electricity is the other.

“Power price and labour costs are the two things we had to be careful of,” Mr Clymo said.

“We can’t just replicate what they have because in the US they have very low power and very low labour costs.

“This means we haven’t gone berserk on a manure system — it’s quite simple, and the fan settings won’t be the same as the Americans.

They will come on when it is a bit warmer than they do over there.”

The Clymos’ barn has 70 fans.

“With labour, I suppose we have to just try not to replicate everything they do,” Mr Clymo said.

“For example, if there’s 10 steps to the perfect housed-cow and milk-cow, then we might do eight of them. We are going to find out what the two we don’t really need to do are, to save labour.”

The Clymos travelled to the US inspecting free-stall barns and questioning dairy farmers about the keys to profitability in a housed-cow system.

But when it came to the finer details of their barn, they engaged US dairy designer Jake Martin.

Mr Martin first designed a barn for an Australian customer 20 years ago; he has since worked with several dairy farmers throughout northern Victoria and NSW. Do your homework, was his advice for anyone thinking of taking the leap into intensive housedcow farming.

“The most important (thing) for dairy producers to know is that this is a different philosophy of dairy farming,” he said.

“These facilities require a different way of managing cattle, people, equipment and nutrition.”

Outlining the difference between “extensive” grazing farms and “intensive” confinement dairies, Mr Martin said there was more work involved in the latter.

“Milking parlours are operated 12 months each year and up to 24 hours each day,” he said.

“In general, confined cattle will produce more milk, consume more feed and produce more manure than grazing dairies — each of these requires increased effort.

“The bottom-line? From a generalised, oversimplified point of view, grazing farms require less people, equipment, utilities, and daily jobs.

The opposite is true for confinement farms.”

Entegra constructed the shed, and its design consultant Charles McCalman said this was the first time he’d had a client duplicate an American free-stall barn design, without alterations to the structure.

“Because it was based off a set design and

set plan, in my perspective as a salesperson I was a little bit limited in the flexibility of the design,” he said.

“But one thing we could do was make larger bays which helped the economy price per square metre. Through efficient engineering and experience we were able to design and engineer costeffective structures without compromising quality.”

The Clymos won’t be the last to look to the US for their barn design, according to Mr McCalman.

“I’m sure in the next five to 10 years in Australia, as far as barns go, especially northern Victoria which has a similar climate to California, farmers will tend to follow suit,” he said.

Cropping focus to produce quality The Clymos operate 1295 ha in the Calivil district with their children, Libby, 15 and Fynn, 13.

They also grow corn, vetch, lucerne and cereals for silage.

They buy in grain but are “very close” to selfsufficient for fodder, thanks to owning 3200 Ml of irrigation water entitlement.

Removing most grazing from their dairy business and fundamentally using their land to grow crops will require a change in mindset, according to Mr Clymo.

“That part of the business becomes cropping, harvesting and all about feed quality,” he said.

“Whereas with the old system, we were always thinking ‘when do we need the feed?’

“We had to also think about how best to grow the feed to avoid pugging and how best to grow the feed when it was wet. There are lots of other questions we now no longer have to ask.”

Growing better quality and more feed will help reduce costs, while the barn itself will enable the Clymos to better measure individual cow feed consumption.

“Before, our system was ad hoc,” Mr Clymo said.

“When they are grazing you aren’t really sure how much they are eating. Who knows what our old system was converting at (feed to milk), but we think it might have been about 1.2 kg of milk to 1 kg of feed.

“We’ve been to farms, one in particular in America, which was 1.7 kg of milk to a kilo of feed. Whatever that number is, that’s how successful our system will be.”

Milking returns Outside of cost savings, Mr Clymo factored the return on investment to come from a “conservative” per cow increase of 0.5 kg of milk solids a day. Currently the 650–700 kg liveweight herd average is 2 kg MS/day/cow.

Mr Clymo said production would rise in the housed system because of cow comfort and improvements in feed quality and consistency.

Seasonal “dips” in fertility were also expected to disappear.

Uniformity and certainty are at the heart of

the Clymos’ dairy barn. From the “cookie cutter” stalls sitting side by side, to the regimented feeding and milking times — thanks to the ease of the barn’s working conditions.

Mr Clymo is no longer plagued by concerns about how the weather could affect the farm’s year-round milk production.

“Flat milk without infrastructure is a risk,” he said.

“If you are producing flat milk, it means you are producing a lot of milk in winter. If it gets wet, you have a lot of your production pinned on those months and your cows will be doing a lot of grazing, a lot of walking and a lot of pugging.

“I didn’t want to have that feeling of ‘will we get through?’ Or ‘what happens if we get another two inches (50 mm) of rain in May and then another two inches?’

“We had to pay a bit more to get rid of that feeling, but now I don’t have that feeling.”

Managing risk provides the business with security, according to Mr Clymo.

For someone with business expansion pumping through their veins, it’s a reassuringly stable foundation from which he can continue his family legacy.

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18 // NEWS

Weather prompts fire warning GOOD SPRING rains across most of eastern Australia and warmer weather has prompted fire authorities to warn farmers of the dangers of fire ignition related to operating machinery.

Farmers have also been warned of the dangers of spontaneous combustion resulting from storing wet hay.

Victorian CFA District 18 Acting Assistant Chief Fire Officer Gavin Wright has urged all farmers to take care of their hay and crops this bushfire season.

“Fodder conservation and storage is a vital and valuable component of the year-round farming operations, but it is important to ensure haystacks are prepared well and bales are stored safely,” Mr Wright said.

“Keep your haystacks out of the rain to avoid fluctuating moisture content.”

Mr Wright emphasised that if not monitored, haystacks posed a fire danger that could occupy crucial firefighting resources during Victoria’s bushfire season.

“When a haystack ignites, depending on the size of the stack, it can remain burning and smoulder over a long period and CFA crews are often required to monitor it for several days to make sure it doesn’t spread,” he said.

“Haystack fires can start quite easily from lightning strikes, sparks from equipment and machinery, but a major source of ignition is spontaneous combustion of the hay bales themselves.”

Spontaneous combustion can occur when hay has either not properly cured before baling, or not stored to protect it from rain or damp conditions, meaning moisture content in the bales is higher than the recommended level.

This can happen to any hay bales, regardless of size.

After baling, check the heat and smell of the bales before stacking them into haysheds or large external stacks, and leave any suspect bales separate from the rest.

Hot bales will often omit an odour like burning tobacco, and heat inside bales can be detected by inserting a steel rod or crowbar into the centre of a bale or stack of hay.

“If hay is stored in a shed, ensure air can circulate around the haystacks, monitor stacks on a regular basis, check for heat levels and avoid walking on stacks in case they collapse due to internal heating,” Mr Wright said.

Since 2008, CFA has responded to about 1600 haystack fires.

By producing hay in the right conditions and checking bales for heat before stacking haystacks, you can limit the chances of adding this season’s hay to those statistics and save yourself from loss of valuable fodder and other costly impacts of a fire.

For more information, visit: www.cfa.vic.gov. au/plan-prepare/hay-and-fire-safety

Haystack fires are a constant threat.

Important tips: • It is important to ensure hay is well cured before baling.

• Know the history of the hay you purchase.

• Keep haystacks to a limited size.

• Monitor moisture and temperature of your hay regularly.

• Watch for unusual odours such as pipe tobacco, caramel, burning or musty smells.

• Store hay in separate stacks or sheds away from farm equipment and other buildings.

• Keep your hay dry. Protect it from rain, leaking roofs or spouts, and run-off. Cover stacks with tarps or hay caps.

• Don’t stack hay right to the top of a hayshed.

Allow some air to circulate at the top — this helps to carry away moisture.

Temperature guide: To check if your hay is overheating, use a thermometer in a probe or insert a crowbar into the middle of the stack for two hours.

• Less than 50°C (can handle bar without discomfort): Check temperature daily.

• 50°C to 60°C (can only handle crowbar for short time): Check temperature twice daily.

Remove machinery from shed.

• 60°C to 70°C (can touch bar only briefly): Check temperature every two to four hours.

Move hay to improve air flow.

• Over 70°C (bar is too hot to hold): Potential for fire. Call 000 immediately. Avoid walking on top of haystack.

DATA HELPS INFORM DECISIONS Dairy farmer Kate Hand knows the benefits of being able to analyse the business performance of her farm to make better informed decisions.

Kate has run the business side of a 150cow farm at Yarravel, in mid-north NSW, for the past five years with her partner Phill and his family.

The farm has recently entered the Dairy Farm Monitor Project, providing their performance data as part of a wider report to all farmers across the region.

Participation in courses such as Feeding Pastures for Profit and Farm Business Analysis provided the platform for Kate to grow her knowledge in farming administration.

“The money side of it was one part, but managing a business, you have to find out what you don’t know and get better at all the little things,” she said.

“Those little things all add up to profitability.”

It was at these sessions that she developed the knowledge necessary to measure her family’s farm performance.

“Someone said to me on a course, just have a crack.

“And one thing that using DairyBase does, is make you realise how much record keeping you might be missing out on. How much silage is made, which paddock was it made in, that kind of thing.”

While they maintain they don’t want to

compare themselves to other farms too much, Kate said being able to measure key metrics such as production per cow against others was important evidence to record performance.

She said using data helped to plan for the farm’s growth and future investments.

“The data helps you find your ‘sweet spot’. We asked ourselves, ‘how many cows can we keep well-fed, producing well and profitable, based on the size of our farm?’,” Kate said.

Having all their farm’s data in one place provides a benchmark for farm performance every year and informs Kate and Phill’s decision making.

She said this enabled them to see

what areas they need to invest in, and opportunities for growth.

“The data in DairyBase gives us the confidence to take calculated risks and the opportunity to prosper.”

In the past year, DairyBase has shown that their farm’s production has doubled since 2016, a result of improvements in pasture management, ensuring cows were always fully fed and investing in an automatic feed system to more accurately feed grain.”To have made a difference like this to this farm has really fuelled my passion for farming, especially the business side of it.”

For more information, visit: dairyaustralia.com.au/farm-business/ dairybase

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DAIRY NEWS AUSTRALIA DECEMBER 2020

NEWS // 19 WORKERS WIN STRIKE ACTION The first strike to ever be held at the Lactalis Bendigo dairy processing factory has achieved results after two weeks of tough action.

Lactalis put forward a new offer which the 150 workers voted to accept on Saturday, November 14.

The vote signified the end to nine days of employees refusing to work and demonstrating in small groups outside the Bendigo factory.

United Workers Union organiser Tom Czech said the new offer from Lactalis was “substantial” and the workers were “very, very pleased”.

“The company has made a public commitment not to sell the site and to invest $20 million into it,” Mr Czech said.

“This has been matched with an increase in permanent jobs at the site by a third.”

The successful strike has shored up the future of the Bendigo factory as a major

employer in the town, following years of uncertainty around its future.

Previously Bendigo Lactalis workers were paid $10 less an hour compared to their counterparts at the Echuca Lactalis site, something they were told was necessary because the Bendigo site was not as profitable.

The agreed-upon offer has not matched the wages between Bendigo and Echuca, but it has secured a significant wage

increase and a yearly average increase of 6.4 per cent.

“The workers overwhelmingly voted to accept the new offer and they are very happy with the outcome,” Mr Czech said.

“This was the site’s first strike and I think it’s taught a lot of them what supported, united workers can achieve.”

Lactalis is a French-owned dairy company which owns the brands Pauls, Oak, Lemnos, Breaka, Vaalia and Icebreak.

Have a bushfire plan ready AGRICULTURE VICTORIA is urging primary

producers to finalise a clear plan for their livestock in the possibility of a fire emergency.

It advised livestock owners to act early, not get caught trying to move stock as a bushfire approaches, listen to the weather forecasts and observe the environment to help decide when to put their plans in action.

During the devastating bushfire season in 2019 and 2020, primary producers had to move about 160,000 animals to alternative locations across Victoria and interstate urgently — prior, during and post the bushfires.

This was on top of the damaged fencing, destroyed supplementary feed stores, burnt pastures and devastating loss of thousands of sheep and cattle.

Agriculture Victoria said a key factor in minimising the threat to livestock during a bushfire or on extreme fire days was to identify safer areas on-farm where livestock can be moved to.

To reduce potential injury and death to livestock it recommended farmers consider relocating stock to designated low-risk areas during days of high fire danger and Total Fire Bans.

Low risk areas include ploughed paddocks, areas cultivated and kept free of combustible vegetation, bared-out paddocks (provided they are well defended by fire breaks), irrigated paddocks or paddocks containing green summer crops, and stockyards that can be wet in advance.

However, stockyards must be well defended as the fire front passes.

Stockyards have been known to successfully hold livestock during a bushfire, if protected by a firebreak. Agriculture Victoria said consider using a sprinkler system as similar to stock being held together on a hot day, they can suffer heat stress.

All low-risk areas should have sufficient drinking water to enable stock to remain in the area for extended periods of high fire risk and high temperatures, be protected by firebreaks and be free of leaf, twigs and bark build up.

Areas where there are dams and swamps are another possible option.

It is crucial not to open gates that may allow stock access to public roadways, as any animals will be a hazard to traffic in smoky conditions.

Agriculture Victoria said when it comes to horses not to lock them up in small areas or stables, as they are good at moving themselves to safe, open areas and usually suffer minimal burns if left to do so.

It’s important to remove rugs, halters and flyveils as the plastic may melt, and metal buckles can burn if hot enough. Agriculture Victoria suggested rope halters for easier handling and management.

For assistance in preparing a farm and livestock bushfire plan, visit agriculture.vic.gov.au/ agriculture/emergencies or contact the Agriculture Victoria Customer Service Centre on 136 186.

For more information on stock containment areas for emergencies, go to go.vic.gov.au/Ex53E4

y r e v e g n i reach n i r e m r a dairy f ntry the cou

ISSUE: FEBRUARY & MARCH

PASTURE IMPROVEMENTS Dairy Farmers across the country will be preparing their pastures through autumn. They will be looking to produce high yielding and quality pasture to assist in improving milk production and quality whilst minimise feed costs throughout the year.

The February and March editions of Dairy News Australia will include an extensive Pasture Improvement Special Report to assist farmers in making the best decisions for their pastures.

This is your opportunity to influence dairy farmers buying decisions nationwide.

BOOKING DEADLINE: AD MATERIAL DEADLINE: PUBLISHED:

February edition January 19, 2021 January 27, 2021 February 9, 2021

CONTACT: Max Hyde Mob: 0408 558 938 E: max.hyde@dairynewsaustralia.com.au

March edition February 16, 2021 February 24, 2021 March 9, 2021

DAIRY NEWS AUSTRALIA DECEMBER 2020

20 // NEWS

‘Best sale in Oz’, no bull DANEKA HILL

A NORTHERN Victorian dairy farm is nearly

Flanagan Marketing Services ran the Holstein sale at Gorbro Holsteins in Cohuna. Pictures: Cath Grey

half a million dollars richer after auctioning off a selection of heifers and cows in what auctioneers are calling “the best sale in Australia this year”.

Stud farm Gorbro Holsteins at Cohuna has a reputation for creating International Dairy Week champions and the reputation paid dividends at the November 13 on-farm auction where bidding went as high as $22,500 for individual Holsteins.

The 57 heifers and cows on offer grossed $427,750 in total with an average sale price of $7504 — only a few hundred dollars off the farm’s record of $7875, set by a 2017 sale.

Before the auction Gorbro Holstein owner Glen Gordon said he was hoping to get “around $5500” as an auction average.

“Anything over that is a bonus,” Mr Gordon said.

Mr Gordon said the farm decided to sell “60 of our best, not for any particular reason”.

“We love breeding cattle and seeing them go to good homes, and you sell cows so you can do it all over again,” Mr Gordon said.

Auction agent Lawrie Flanagan said the sale started off with a bang as the first 12 lots grossed $132,250 and averaged $11,020.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

NEWS // 21 “It is the best sale in Australia this year, without a doubt,” Mr Flanagan said.

When asked why the sale did so well Mr Flanagan said Gorbro Holsteins were “high profile people who knew how to market well”.

“They were the premiere breeders at the last Dairy Week,” he said.

“And they were prepared to sell their very best.”

The top-priced cow was Gorbro Crushabull Jessica ET who will be transported to her new home in Cobargo after fetching $22,500 at auction.

Jessica ET was bought by a syndicate between Rockstar Holsteins in NSW and Weeksdale Holsteins in Ontario, Canada.

The immediate plans for her future include entering an embryo transfer program with some resultant eggs being exported to Canada.

Second top price was for Gorbro Livias Solotatoo for $18,750 to young Western District breeder Isaac Stephens.

The very correct heifer was carrying a valuable heifer calf by stud bull Arrow, due March.

Top-priced milk heifer was Gorbro Lambda Tiffany who

sold to the Chesworth family in Dubbo for $17,000.

The young cow was currently producing 44 litres, 3.08kg MS with a PI of 130 and recently classified VG 85 and champion in the North West On-Farm Challenge.

Red and white heifer Gorbro Asias Unstoppable ET from the renowned international Advent Asia family sold to repeat buyers BRM syndicate for $16,500.

Other strong buyers were Blighty breeders Eloora Pastoral Company which took home two heifers due in March to Arrow for $22,500 — one of those Gorbro Unixtoo Shimmer for $14,000.

Local breeder Ben Govett bought two cows, Gorbro Kingsobrad Tiffany ( joined to Lambda) for $9250 and Gorbro Robins Tatoo for $11,000 (daughter of 94 point Gorbro Goldwyn Robin).

Cattle were sold to multiple areas in Victoria, the NSW South Coast and Hunter Valley, and two head even went to Queensland.

The sale was conducted by Flanagan Marketing Services and Elite Livestock Auctions operated.

Top-priced cow Gorbro Crushabull Jessica ET sold for $22,500 to a Cobargo, NSW and Canadian syndicate. Photo: Cath Grey

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ACCC takes Melbourne tractor business to court A VICTORIAN tractor business is being taken

to Federal Court by the Australian Competition and Consumer Commission over allegedly misleading warranty and after sales services claims.

Trading under the name Agrison in outer Melbourne, AA Machinery Pty Ltd allegedly began breaching Australian Consumer Law from at least August 2017.

Agrison promised online, in print and on social media that its tractors were fully supported by a five-year nationwide warranty, a national after sales network and timely service.

In reality the family-owned business did not have a service network throughout Australia, the warranty was a limited ‘parts only’ warranty, and spare parts were not available in a reasonable time frame, if at all.

A number of Agrison customers contacted the ACCC about the alleged breaches in consumer law, reporting their Agrison machinery had serious defects such as failing brakes and leaking hydraulic systems which Agrison was unable to repair.

Other customers were unable to get correct spare parts to repair their machinery.

ACCC deputy chair Mick Keogh said tractors were a substantial expense for farmers and it was important they work properly and promised support is available.

“We allege that, when deciding to make the significant purchase of an Agrison tractor,

Australian Competition and Consumer Commission deputy chair Mick Keogh.

consumers may have taken into account the false and misleading claims Agrison made regarding the warranty offered and the availability of service, repairs and spare parts,” Mr Keogh said.

The ACCC is seeking orders including: declarations, injunctions, pecuniary penalties and costs.

In addition to Agrison agricultural tractors, the business sells wheel loaders, construction equipment, diesel generators, farming implements and portable buildings.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

MANAGEMENT // 23

Working smarter not harder SMARTER IRRIGATION technology, like soil

moisture probes with real-time telemetry, has become an integral tool for NSW dairy farmer Will Russell, enabling him to grow more feed and increase his herd size.

Will is one of the farmers across Australia who are partners in the Smarter Irrigation for Profit Phase 2 (SIP2) program, which provides an opportunity for dairy irrigators to closely monitor the impact of irrigation optimisation s­ trategies, and take up opportunities to increase their knowledge on the practical tools and ­support available to help in irrigation decisions.

SIP2 is a cross-industry investment of $22 million funded by the Federal Department of Agriculture, Water and the Environment’s Rural R&D for Profit program, along with the industry research and development organisations of five major Australian agricultural sectors.

It responds to a national, multi-sector call for more information on efficiency improvements that can be implemented, without costly capital expenditure, while also exploring the possibilities of new innovations and technologies that may deliver step-change efficiencies for Australian agriculture.

Managing a farm of about 300 cows on a 125 hectare milking platform at Bega on the NSW south coast, Will is a sixth-generation farmer and joined the SIP2 program 12 months ago.

The program’s use of technology to monitor soil moisture ties in with Will’s studies in mechanical engineering.

Getting the right amount of water into the soil is an important part of his farm management.

“Irrigation is a huge part of how we grow feed,” he said.

“We have every different type of irrigation system you can think of, including a 25 ha centre pivot.

“We’ve had 40 or so years of irrigating and some of our systems are old and were the ‘thing to do’ back when Dad was putting the systems in.”

Using technology to make smarter decisions Before joining SIP2, Will was already using technology to monitor soil moisture.

He placed a GDot probe in a laneway that was used often on the farm.

“It’s a more basic system that uses a traffic light rather than a measured data method that

you can check on as you ride past it on your regular duties,” Will said.

After installing three 40 cm EnviroPro soil moisture probes with Wildeye loggers and telemetry across three different soil types under his centre pivot area, as one of the SIP2 Optimisation Sites, Will noticed a considerable change in how he schedules irrigation.

“Up until now, one of our biggest irrigation challenges has been getting the timing of startup right, but with the soil moisture data, this has become a lot easier.

“It’s made the decision-making process easier.”

Before installing the probes, Will said he was always pushing out irrigating until it was sometimes too late, having let the soil moisture deplete too low.

“The technology we use now tells us in black and white ‘we need to irrigate now’,” he said.

The information from the probe loggers is sent in real-time to the Wildeye web platform, easily accessed from Will’s smartphone or PC. These reports show him the status of his soil moisture at-depth and across the different soil types he has the probes located.

The soil moisture tracers communicate how soil moisture levels respond to water inputs, irrigation and rainfall, and evapotranspiration (ETo) outputs.

Having this information for varying soil types is important as the responses can be different, for example, lighter soils will lose moisture more readily and heavier soils may become saturated under the same irrigation management.

“I’ll check the computer at night and see if anything needs to be done; it really helps with planning your week out,” Will said.

Measuring soil moisture to schedule irrigation The key to reading the probes’ data is to ensure a pasture’s soil moisture stays within the Readily Available Water (RAW) zone.

Maintaining your soil moisture within the RAW enables plants to most easily access water and use saved energy to develop.

Accurately monitoring and measuring the soil moisture allows irrigation to be adjusted accordingly.

“Our farm is a farm of two halves. Half is fertile river flats, and the other undulating hill country that is hard to grow pasture on without a lot of water,” Will said.

Will Russell on his Bega dairy farm.

“On the flats you can irrigate a lot of water very quickly, and it’ll handle it.

“On the hills, you want systems that put on small amounts of water regularly to suit that soil type, otherwise you’ll just be wasting the water as it won’t get to the plants.”

Accurately monitoring the soil moisture of the different soil characteristics ensures the ­irrigation scheduling stays as efficient as necessary.

Monitoring the soil moisture also helps Will make decisions during rain events and droughts.

During a bad drought last year when access to water became restricted, Will said the probes were an essential tool to ensure his irrigation was meeting the water needs of his pastures where he wanted to concentrate his efforts.

“We were irrigating flat out. I was checking the probes every day to get a sense of whether we were keeping up with the ETo. “It helped us make calls on where the water was most needed.

“The data allowed us to make decisions to concentrate our irrigation on a set few ­paddocks that we knew were growing pastures efficiently.

“It also helped know which paddocks to drop out of the irrigation cycle.”

Positive outcomes and the bottom line The main differences Will has seen from the use of effective soil moisture monitoring is in

yields, and its effect on the size of the herd his farm can support.

“There is no doubt in my mind that by knowing to start irrigating earlier to keep soil moisture in the RAW, we are producing more feed than before.

“We are growing more feed off the same area, and because of that we’re milking more cows than ever before too.”

Using the soil moisture monitoring probes to irrigate smarter has had its effect on Will’s bottom line.

“Our concentrate and bought-in feed usage hasn’t gone up, we’re growing the feed that the increase requires.

“I think that we’ll see that even more in the next few years.

“It’s really made me focus on getting the cost of production down by growing more feed from the irrigation we do use.”

Will hopes to increase his herd size up to 340 in the next couple of years and said that would be due to irrigating smarter.

“We’re certainly heading in the right direction.”

The Smarter Irrigation for Profit project is supported by funding from the Federal Department of Agriculture as part of its Rural R&D for Profit program and Dairy Australia.

For more information, visit: dairyaustralia.com.au/land-water-and-climate/water/ irrigation/smarter-irrigation-for-profit

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DAIRY NEWS AUSTRALIA DECEMBER 2020

24 // ANIMAL HEALTH

Manage calves to limit scours risk CALVES ARE the future of your herd, therefore

keeping them in the best of health is of paramount importance.

A scours outbreak can be time-consuming, expensive to treat and, if not managed correctly, can result in significant losses.

Calf scours is most common in calves during the first six weeks of life.

It is difficult to control once calves start to scour and become sick. It is therefore vital to manage calving herds to avoid outbreaks.

Scours is caused by an interaction between the environment, health of the calf and the presence of disease-causing agents (pathogens), which include bacteria, viruses and protozoa.

These pathogens are shed in low but increasing numbers in the manure of cows around the time of calving, and in much greater numbers in the manure of scouring calves and unaffected calves up to six months of age.

During a scours outbreak, a rapid build-up of pathogens can occur in the environment.

While the pathogen’s actions vary, their effects are consistent — a loss of fluid and electrolytes associated with diarrhoea leading to dehydration, weakness, and in some cases the death of the calf.

To reduce the risk of calf scours in your herd you should: • M inimise contact between young calves and potential sources of infection by a­ voiding wet, muddy areas or areas with manure build-up; • M aximise colostrum intake by avoiding c­ alving difficulty (dystocia) and poor early bonding. Calves from heifers are most

at risk. Any calf that has not suckled within six hours of birth should be supplemented with colostrum; • Avoid stress, poor nutrition and overcrowding of calves; and • Avoid the introduction of new calf scour pathogens into the herd by not replacing dead calves with bobby calves from another property and not introducing recently purchased animals into the calving herd.

Control measures should be applied quickly when scouring calves require treatment, as the disease can spread rapidly if pathogen build-up is not addressed.

Move all pregnant cows to a new calving ­paddock and do not put any new calves with affected cows and calves.

To successfully treat a scouring calf, supportive therapy is needed to counteract the effects of diarrhoea. The most important aspect of ­supportive therapy is to give an adequate quantity of fluids and electrolytes to replace what is lost in the diarrhoea.

The use of antibiotics may be appropriate but only under veterinary advice.

A key to the success of treatment is to commence it promptly at the first indication of adverse clinical signs.

If these steps are followed, the hope of enjoying a trouble-free calving season is maximised.

For further advice please contact your local veterinarian or Agriculture Victoria veterinary or animal health officer, or in NSW your Local Land Services.

Dr Jeff Cave Agriculture Victoria District Veterinary Officer

There are a number of steps dairy farmers can take to reduce calf scours, says Agriculture Victoria’s Jeff Cave.

DAIRY NEWS AUSTRALIA DECEMBER 2020

ANIMAL HEALTH // 25

COWS NEED A LONG COOL DRINK

Agriculture Victoria is encouraging producers to keep an eye out for photosensitisation in cattle in the coming weeks.

Be wary of lush, green feed WITH SUNNY weather and the green feed of

spring, livestock producers are likely to see an increased incidence of photosensitisation in cattle during the coming weeks.

The term photosensitivity refers to an increased sensitivity to ultraviolet light and resembles a bad case of sunburn.

When grazing lush, green feed, cattle can take in large amounts of the plant pigment, chlorophyll.

After the pigment is digested and absorbed, it passes to the blood from where it is normally filtered by the liver, broken down and passed out of the body.

If an excessive amount of chlorophyll is consumed its end products may not be fully removed and they can build up to high levels in the blood.

This may also happen if the liver function is impaired in some way, for example, by liver fluke damage or damage from certain toxic plants, such as heliotrope.

There are other plants eaten by stock that have high levels of preformed photosensitising pigments. An example in St John’s Wort.

The pigment can accumulate in the surface layers of the skin, and the interaction between the pigment and ultraviolet light results in a burn-like effect in the skin.

This happens on uncoloured, less hairy areas of the skin, such as the unpigmented skin and

teats of cattle and the ears and nose of sheep.

In the early stages of photosensitivity affected animals become agitated because of the burning sensation in their skin.

They shake their heads, rub against trees and kick at their bellies in an attempt to relieve the pain.

Their ears may become swollen and droopy and they will seek shade during the day.

Photosensitivity can be severe enough to put an animal into shock, which can be fatal.

On many occasions farmers only see the end results of photosensitivity where the affected skin begins to lift off as a result of the damage the burn has caused.

If detected in the early stages, antihistamines may help.

There are ointments available for darkening teats which can be particularly useful for dairy cattle.

Affected animals should be moved into shaded areas and taken off green feed.

For further advice please contact your local veterinarian or Agriculture Victoria veterinary or animal health officer, or in NSW your Local Land Services.

Dr Jeff Cave Agriculture Victoria District Veterinary Officer

Ensuring dairy cattle have an adequate supply of drinking water is an important nutrition consideration for dairy farmers.

A cow’s body is between 60 per cent and 80 per cent water, while milk is 87 per cent water.

Water is essential for regulation of body temperature, rumen fermentation, flow of feed through the digestive tract, nutrient absorption, metabolism and waste removal.

Water also has structural and functional roles in all cells and all body fluids.

Keys to success in ensuring dairy cattle have adequate stock water ■ Large volume concrete troughs help keep drinking water cool.

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Locate troughs in shaded areas where possible.

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Avoid running black poly pipe along the ground, as water will become hot before reaching watering points.

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Use high-pressure flow systems that allow rapid refilling of water troughs.

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Design systems to cater for increased demand in hot weather.

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Consider future increases in herd size or changes to farm layout.

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Locate troughs so that water is not contaminated by feed or manure.

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Design and locate systems to allow easy, frequent cleaning.

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Manage manure build-up around troughs.

The following steps explain some of the above points in more detail.

At any location, maximise access and provide multiple water points ■ Make sure cows have sufficient access to water all day. This is determined by trough space and water flow rate into the trough.

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Large volume concrete troughs help maintain supply during times of high demand and help keep drinking water cool.

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Install troughs along the sides of the dairy yard so cows must place their heads through the fence to drink.

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Milking cows usually drink after milking and they can each consume up to 40 litres of water in two minutes. Large troughs on the exit side of the dairy are a must.

High water flow rates are essential to maintain supply at all times ■ Use 75-millimetre (three-inch) water pipes.

■

Maximise heat transfer by providing cool drinking water ■ When cows drink in hot weather, they cool down by transferring body heat to the water.

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Make sure cows have access to water that is kept cool wherever they are during the day or night. The optimal drinking temperature is 15°C to 20°C.

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In hot weather, allow up to 250 litres of water per cow per day — double their normal intake.

■

Water troughs in every paddock will keep cows grazing longer in hot weather. If cows leave the paddock to get a drink they often do not return to graze.

Water for permanently housed cows These guidelines apply where cows are confined 24 hours a day to feed pads or sheds.

■ At least a metre of trough drinking space should be provided for every 20 cows. Provide at least two separate water points for every group of cows and ensure plenty of space around each watering point.

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Water systems should supply at least 20 litres per cow per hour.

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Each trough should be able to hold at least 200 to 300 litres of water with a minimum flow rate of 10 litres per minute.

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Trough volume can be reduced to about 100 litres if the flow rate is increased to 20 litres per minute.

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Troughs should be 600 mm to 900 mm high.

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Water depth should be 150mm to 200mm to maintain cool temperatures and reduce debris accumulation.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

26 // ANIMAL HEALTH

Vaccinate to protect your herd LUCY COLLINS

UNTIL RECENTLY I (perhaps naively) assumed

vaccination for clostridial disease and leptospirosis was a routine part of most dairy herd health programs.

Only since I started asking specific questions about annual vaccination protocols in the milking herd have I realised how many farms do not routinely vaccinate adult livestock.

Young stock are often vaccinated when it can be combined with other health events like disbudding or weaning, but it seems a significant number of adult animals are not protected for clostridial diseases and leptospirosis — or possibly some producers do not realise that annual boosters are required to maintain ongoing immunity.

Clostridial diseases are the often-fatal result of invasion by toxin-producing bacteria known as Clostridium species, which form spores that can survive in the environment for several years.

Cattle are exposed to these spores in a multitude of ways, including: penetrating wounds, trauma during calving, bruising, stress, parasites including liver fluke, and even phosphorus deficiency.

The bacteria are not contagious between cattle, and not all infected cattle will show signs of disease. Clinically affected animals often present as suddenly unwell, and death can occur rapidly following infection.

In Australia, the main clostridial diseases and their common clinical signs are: ■ tetanus — stiff gait, hypersensitivity, convulsions, death; ■ blackleg — severe swelling and lameness, dry cracked skin, depression, fever, death; ■ malignant oedema — contaminated wound, depression, fever, death; ■ pulpy kidney disease — convulsions and death; ■ black disease — abdominal pain, depression, death; and ■ botulism — paralysed tongue, drooling, anorexia, aggression, weakness, paralysis, death.

Leptospirosis is another bacterial disease affecting many animal species and with numerous strains. The two main strains seen in cattle are hardjo-boviss and pomona.

Infection usually persists in the kidneys and is often spread via urine directly from cow to cow, however pigs and rodents can also transmit the disease to cattle.

Leptospires can survive for long periods in wet soil, stagnant water or effluent. Infection

can cause mastitis, abortions, kidney and liver damage in adult cattle and severe disease or death in calves.

Leptospirosis carries the added risk of being transmissible to humans. Contact with urine, foetal membranes or fluids, and aborted or sick calves from affected cows can all result in human infection.

In humans, the bacteria usually enter through cuts or abrasions in the skin or contact with exposed mucus membranes, such as the mouth or eye. A single drop of urine or foetal fluid can be enough to transmit the infection.

Leptospirosis in humans can be a very serious, chronic and even fatal disease. There is currently no routine vaccine available in Australia for humans.

When used appropriately, vaccines such as 7in1 are highly effective against the most common leptospirosis and clostridial strains, and total protection is usually achieved. Animals over six weeks of age must be vaccinated twice, four to six weeks apart.

An annual booster is required to ensure adequate immunity, particularly in high-risk areas.

Cost is roughly $2 a dose.

A separate vaccine is required for animals at risk of botulism (mainly seen in cattle fed mixed rations where feed has been spoiled

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Dairy News Australia columnist Lucy Collins.

or contaminated, or in phosphorous-deficient cattle prone to chewing carcases and bones).

Consulting your veterinarian will help you determine the best vaccination schedule for your herd.

If you choose not to protect your herd with a 7in1 vaccine, you have a duty of care to notify your staff that they may be at risk of contracting leptospirosis.

Similarly, if you work on a farm in close contact with cattle, you should make yourself aware of the current vaccination status of the herd. If children or elderly family members frequent the dairy, vaccination is really a no-brainer.

The author has no affiliations (financial or otherwise) with any companies producing 7in1 vaccines for market in Australia. She does however have a vested interest in not contracting leptospirosis through her work as a veterinarian on dairy farms.

Lucy Collins is completing her dairy residency with the University of Melbourne.

She works as an on-farm veterinarian in Kyabram with Apiam Animal Health, and alongside her partner on his family’s 650-cow dairy farm in Dixie. She is a 2021 Nuffield Scholar supported by Gardiner Dairy Foundation.

DAIRY NEWS AUSTRALIA DECEMBER 2020

MACHINERY & PRODUCTS // 27

Data exchange to fuel fleet INNOVATIVE PLATFORM DataConnect — a

system which allows the real-time exchange of machine data between John Deere, Claas and 365FarmNet platforms — has gone live.

Similar to the way ISOBUS enables different brands of equipment to communicate in the paddock, DataConnect is designed to connect multiple manufacturer cloud platforms, so data can securely and smoothly be exchanged between them.

John Deere precision ag segment manager Ben Kelly said the DataConnect system meant farmers would be able to monitor their entire machinery fleet using their preferred platform, without having to switch portals or manually transfer data from one system to another.

“DataConnect allows customers who have a mixed fleet, or are in the process of transitioning from one manufacturer to another, to have their data seamlessly connect,” he said.

Mr Kelly said one of the greatest barriers to the adoption of digital technologies has been the incompatibility of data between manufacturers, and the landmark partnership with John Deere,

Claas and 365FarmNet was another step towards removing that barrier.

“By simplifying the way farmers collect data across their fleet we are helping them compile high-quality information and insights.

“This is vital given the results gained through precision agriculture are directly linked to the quality of the data fed into the system.”

The structure of direct cloud-to-cloud technology enables a smooth flow of information without any effort or inputs from the operator.

Farmers can view five key machine data sets including current and historical machine location, fuel tank level, working status and speed.

Mr Kelly said access to these data sets would allow customers to monitor their fleet remotely and provide peace of mind equipment is operating in the correct location and completing work as directed.

Farmers do not require any additional hardware and software components to implement DataConnect, and further partners and functionality will be added in the future

The DataConnect cloud concept.

CLAAS machines displayed in the John Deere Operations center.

DAIRY NEWS AUSTRALIA DECEMBER 2020

28 // MACHINERY & PRODUCTS

Machinery financing up 50 per cent FAVOURABLE WEATHER conditions across

many parts of Australia has seen a 50 per cent increase in financing for agricultural machinery as farmers fast track expansion plans, according to Commonwealth Bank’s Regional and Agribusiness division.

And one business that has seen a noticeable difference is Simon Codemo from Griffithbased agricultural equipment supplier, Codemo Machinery Services.

“We’ve seen a really big change in NSW over the past 12 months — obviously the weather and improved seasonal conditions is a big part of this,” Mr Codemo said.

“This weather — combined with low rates, stable commodity prices and the Instant Asset Write-Off scheme — has boosted farmer confidence.

“I’ve definitely seen a boom in sales because of this confidence — we’ve seen demand for both new and used equipment increase across the board.

“For the first time in many years, our customers are harvesting above average yields. Many of our customers are in the process of harvesting their crops right now and yields are looking really good.”

Commonwealth Bank’s Regional and Agribusiness executive general manager Grant Cairns said NSW had led the growth, with lending up more than 100 per cent in the state, compared to the same time last year.

“For many of Australia’s farmers, this year has been a rebound from drought with favourable growing conditions, a successful winter crop in many regions and strong optimism about yields and quality of harvest,” Mr Cairns said.

“Over the past few months we’ve seen financing in the sector increase dramatically — largely driven by farmers purchasing agricultural machinery for this year’s crop season.

“We’ve seen asset finance for ag machinery, particularly tractors and harvesters, increase significantly.

“Across the country, new asset financing for tractors is up 119 per cent — the highest volumes with seen in the past three years — and financing for harvesters is up 108 per cent.”

Mr Cairns said the Federal Government’s expansion of the Instant Asset Write-Off scheme is providing further incentive for farming businesses looking to take advantage of the positive outlook and expand for the future.

“Agriculture confidence is at an all-time high for a number of reasons,” he said.

“Nationally, farm values are up, commodity prices are holding firm, interest rates are at record lows, seasonal conditions have been good, there is strong consumer and retail demand for fresh produce, and there’s government incentives like the Instant Asset WriteOff scheme.

“The trends we’ve been seeing signals a higher confidence across the farming sector,

and that’s good for everyone — for the regional towns where the farms are located, for the whole supply chains that support our food and fibre, for the markets they sell to, and for all of us who enjoy fresh Australian produce.

“Though the international trade environment remains volatile, it’s positive to see so many agribusinesses turn a corner and enter a period of expansion.”

Financing for machinery has jumped 50 per cent in recent months due to better weather conditions and farmers taking advantage of the Instant Asset Write-Off scheme.

Photo: Cath Grey.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

MACHINERY & PRODUCTS // 29

Focus on technology and partnerships NEW JOHN Deere Australia/New Zealand man-

aging director Luke Chandler says he’s going to focus on leading the way in technology and investing in strong relationships to continue to deliver value in his time at the helm.

Originally from Inverell in NSW, Mr Chandler has a 25-year background in agriculture, most recently as chief economist for John Deere at its Illinois headquarters in the United States.

He said he was excited to have the opportunity to apply his global knowledge and John Deere’s leading-edge research and development capability to benefit Australian and New Zealand industries.

“My work looking at global agriculture trends for many years has reinforced how competitive our farmers have to be in export markets without the government support many of our competitors receive,” Mr Chandler said.

“That competitiveness comes from Australian and New Zealand farmers being world leaders in innovation for as long as they’ve been farming.

Technology developments like AutoTrac steering and See and Spray precision chemical application have been a focus of innovation in the part.

“Technology only works well when it’s solving real problems,” Mr Chandler said.

“My predecessor Peter Wanckel has done an excellent job building strong relationships, and I’m fortunate to be taking over with the business in such a strong position thanks to his vision and passion for the industry.

Outgoing Managing Director Peter Wanckel welcomed Mr Chandler’s appointment.

“Luke has worked in agriculture all over the world, and his broad experience in the industry at global leadership levels will bring benefits to Australian and New Zealand farmers,” he said.

Mr Chandler will also aim to grow John Deere’s Construction and Forestry business in the region, which was established in the US in the 1940s to provide a greater scope of worldleading equipment and industry solutions to Australian and New Zealand customers.

DAIRY NEWS AUSTRALIA DECEMBER 2020

30 // MACHINERY & PRODUCTS

Machinery sales at sky-high levels MACHINERY SALES are tipped to hit their

highest levels in 40 years, but questions remain over how supply will keep up with skyrocketing demand.

Demand for machinery has continued to grow all year off the back of the Federal Government’s Instant Asset Write-Off scheme, with the latest figures no exception.

October was another standout month for tractor sales, up more than a quarter on the same month last year and 22 per cent year-to-date.

The result sees the full year on track to exceed the 13,000 unit mark for the first time since the 1980s, according to Tractor and Machinery Association of Australia executive director Gary Northover.

“Whilst there remains considerable buoyancy in the market off the back of the Instant Asset Write-Off program and a very strong year for agricultural product, as previously advised, we

are beginning to see the impacts of the COVID19 pandemic on factories and shipping across the globe and this is now impacting supply,” Mr Northover said.

“Most dealers are not yet reporting lost business, but many are having to keep a sale by offering an alternative.

“This situation is likely to continue for the foreseeable future as, not only is factory output down due to social distancing requirements, the number of cargo ships in operation is also down, further exacerbating the problem.

“We estimate that this has added around 12 to 16 weeks to most deliveries.

“In addition, the supply of parts remains challenging and suppliers are being hit with additional freight charges to get parts into their systems.

“So, whilst the current La Nina weather pattern being experienced across much of Australia, combined with historically low interest rates,

are positives, the picture for supply is challenging and is expected to remain so for some time to come.”

Sales activity hit fever pitch in NSW, up 70 per cent on the same time last year and up more than a third for the year.

Victoria recorded another steady month, up almost a quarter on year-to-date, while Queensland was up about 13 per cent for the year.

Sales in South Australia continue to perform strongly, up 36 per cent YTD, and activity in Tasmania also remains strong, now 28 per cent ahead for the year.

However, it’s a different story in Western Australia as the state battles dry conditions; it remains three per cent behind last year.

Mr Northover said the increase in sales numbers was again due almost entirely to the ongoing strength in the smaller end of the market, supported by the Instant Asset Write-Off scheme.

The under 40 hp (30 kW) range was up 33 per cent for the month and now sits 29 per cent ahead for the year-to-date.

The 40 to 100 hp (30–75 kW) range was again up strongly, by 41 per cent and now 24 per cent ahead for the year.

The 100 to 200 hp (75–150 kW) category was up 12 per cent and still up 28 per cent for the YTD, while sales in the large 200 hp (150 kW) and over range were steady, leaving this category eight per cent behind YTD. Sales of combine harvesters are beginning to improve again.

The full-year picture is likely to be about 15 to 20 per cent up on last year and, while not nearing record numbers of 800-plus units, a figure of 650 to 700 is likely, according to TMAA figures.

Baler sales continue their boom, up 21 per cent for the month, remaining up 31 per cent YTD.

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DAIRY NEWS AUSTRALIA DECEMBER 2020

MACHINERY & PRODUCTS // 31

Investment drives efficiency AS A stayer in an industry plagued by its fair share

of challenges, South Australian dairy farmer James Mann is assembling the pieces of the puzzle for an efficient, sustainable business.

For James and his wife Robyn, who built their 20-million-litre-a-year Donovans Dairy from the ground-up, this ‘jigsaw’ boils down to understanding their profit drivers and demanding a value proposition from every investment, whether that be a new John Deere tractor or acquiring more land.

Investment in land has underpinned their expansion from 120 to 2300 milking cows in South Australia’s lower south-east.

They also make judicious investments in machinery to take their business to the next level.

James believes in outsourcing to the experts and relies on contractors for most of his cropping program, including sowing, silage and about 40 per cent of hay mowing.

But when it comes to activities that bolster the profit drivers of an intensive livestock business — fertiliser and feed — he keeps it in-house and relies on his John Deere fleet.

The most used machine, a 6175M tractor, clocked up 3300 hours in the first 14 months.

The 6M is responsible for feeding out 15,000 tonnes of chopped silage, 3000 silage rolls and up to 1500 bales of hay and straw each year.

It is paired with a 683R front-end loader featuring the new automatic mast latch for quicker connection and disconnection.

With numerous operators needing to sit behind

the wheel, James’ purchase criteria included the ability to ensure consistency and efficiency. This is where JDLink has shone across the Donovans Dairy operation.

"We employ 24 full-time staff and three of these do the feeding out, so technology needs to be easy to use, easy to track and efficient," he said.

"One of the reasons I bought the 6M tractor was it was the most comfortable tractor I had been in but, with the growth of the business, I don’t get to drive it much anymore."

The 6M also has the tick of approval from staff, who requested "a tractor just like the one we already have" when it came time to replace an older 6155M tractor.

Another 6175M tractor will soon join the ranks and, with features such as front and rear PTOs for greater mowing capacity, James is confident it will keep the entire team happy.

Tapping into precision ag benefits Data is king in the dairy industry. The Manns collect herd data twice a day at milking and overlay this with individual cow tests six times a year, coupled with genetic information from genomic testing to paint a picture of how they are turning feed into saleable product.

"We are in the business of converting feed to milk, so we are always looking for opportunities to achieve this, whether that be land, trading stock, meat or technologies," James said.

The same data-driven mindset is now

o

%

extending to forage and crops, and the value that can be extracted from precision agriculture.

Fertiliser is a key input for the Manns, and they rely on their 4240 Universal Display and StarFire 6000 Receiver for in-season repeatability and signal stability.

"JDLink and Gen 4 4240 Universal Display are part of the puzzle to improve our input efficiency," James said.

"We’re involved in a pasture monitoring project run by DPI Victoria and Dairy Australia, using tools such as drones and satellites to identify areas to target inputs, and we can see the potential to integrate technologies like this with GreenStar — it is part of the continuous improvement we strive for in our business."

Homegrown business James is entrenched in Australia’s dairy sector, as chair of Dairy Australia, and has notched up 30 years in the industry. However, a hint of an accent gives away his United Kingdom origins.

He was raised on a mixed farm at Bawdsey, England, and came to Australia in the mid-1980s to study at Marcus Oldham College in Victoria.

In 1989, two years after James graduated from Marcus Oldham, he and Robyn purchased their first property — at Numurkah, near Shepparton in northern Victoria.

They sold it nine years later to trade up to a more sizeable holding over the South Australian border at Wye, south-east of Mount Gambier.

This 600 hectare beef and sheep property was soon transformed and before long they were up and running. They built a dairy and were milking just three months after they moved, expanding the dairy herd from the 400 cows brought over from Numurkah to 1200 head in the first year.

The Manns now farm 1700 ha, including 10 centre pivots over 480 ha of predominately perennial rye-grass and white clover, 40 to 50 ha of corn for pasture renovation and silage production, dryland hay and silage production.

In addition to dairying, the livestock side of the business includes opportunistic cattle trading, composite ewes and finishing Friesian bull calves off as two-year-old steers.

A contract with Lion Dairy & Drinks, and their proximity to milk processors on both sides of the border, enables them to direct product as required.

It took a lot of "sweat equity", plus a good relationship with the bank, but ask James what drove this growth and the answer is simple: "I like to make things happen — I like to see a plan come together."

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