Dairy News Australia - December 2017 by Dairy News Australia

Saputo wants to sell MG Trading PAGE 3 NOT HAPPY, MICK NEW BENCHMARK

ACCC inquiry blasted. PAGE 4

Morty Lady 51 named EX97. PAGE 3

DECEMBER, 2017 ISSUE 87 // www.dairynewsaustralia.com.au

TAKING CHARGE Mountain Milk rises from ashes of Kiewa sale. PAGE 6

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DAIRY NEWS AUSTRALIA DECEMBER 2017

NEWS // 3

Saputo wants to sell MG Trading STEPHEN COOKE

SAPUTO WILL sell the MG Trading busi-

NSW Women in Dairy. Page 10

IDW preview. Pages 22-27

Solar-powered robots. Page 28

NEWS ��3–11 OPINION ��12–13 MARKETS ��15–16 MANAGEMENT ��17–18 ANIMAL HEALTH �� 20–21 IDW PREVIEW �� 22–27 MACHINERY & PRODUCTS ��28–30

ness if the right opportunity arises, having failed to convince Murray Goulburn to “carve them out of the deal” leading up to the sale of the co-operative. Saputo CEO, Lino Saputo Jnr, told Dairy News Australia the Canadian company would be open to selling MG Trading if it thought a prospective buyer with retail experience “could do a better job for the community and employees of MG Trading”. “If someone who is in retail business presents themselves as a strategic buyer of those assets I think that would serve MG Trading very, very well,” Mr Saputo said. “We pride ourselves on being high quality, low cost processors of dairy. That’s what we do extremely well. We don’t have a lot of experience in retail stores. “While going through the process with the Murray Goulburn, we had asked if MG Trading could be carved out of the deal, and they could sell it separately. “Unfortunately there wasn’t enough time for them to take on a second process alongside this process (selling Murray Goulburn as a whole). “So we made a commitment to the board that if there was an opportunity for them to carve out MG Trading before close of this transaction, that they’d have every right to sell it and allow those proceeds, whatever they are, to go to current shareholders of Murray Goulburn. “If at the time of closing, MG Trading is still a part of Murray Goulburn, then we will take them on and find the right management for MG trading.” Mr Saputo said the addition of MG’s processing facilities and milk supply would increase the amount of solids they could sell to customers in Asia, including Japan, Taiwan, Korea, the Philippines and China, and broadens the portfolio of products it

can bring to market. Their customers have already shown interest in creams, spreads and processed cheese that MG is producing, and it will enable Saputo to supply infant formula, albeit in a different format MG is currently producing. Mr Saputo said he was “very impressed” with MG’s suite of products. “Murray Goulburn still has the opportunity to come back to its former glory. The infrastructure and personnel are there, it’s just the strategy on how we go to market and at what price.” Mr Saputo is confident the company can grow supply from 1.9b litres to 2.5b litres, saying former suppliers were closely watching from the sidelines. “Murray Goulburn suppliers are very loyal but for economic reasons they had to leave. Now there is much more stability going forward.” In other news, MG has admitted breaching its continuous disclosure obligations and will pay a fine of $650 000. The fine will be paid from money set aside to cover ongoing legal action against the co-op. MG will pay the fine under a deal with the Australian Securities and Investments Commission (ASIC) over its behaviour in the lead-up to last year’s profit downgrade and cut in milk prices paid to farmers. ASIC brought Federal Court proceedings against Murray Goulburn, alleging that from March 22, 2016 to April 27, 2016, it had failed to notify the ASX that it was unlikely to achieve forecasts it made in February. It is not alleged by ASIC that Murray Goulburn deliberately contravened its continuous disclosure obligations. Murray Goulburn Chairman John Spark said MG “takes its disclosure obligations very seriously and has cooperated fully with ASIC during its investigation of these matters”.

Willy and Lisa McKay with Fairvale Morty Lady 51.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

4 // NEWS

Code of conduct must be mandatory AUSTRALIA’S CORPORATE watchdog believes a mandatory code of conduct would address problems caused by bargaining power imbalances between processors and farmers. The ACCC (Australian Competition and Consumer Commission) last month released its interim report into the Australian dairy industry following its 12-month inquiry. ACCC Commissioner Mick Keogh said a mandatory code would address bargaining power imbalances, improve price and production signals, stop practices that transfer risk inappropriately and enhance the competition for farmers’ milk.

The ACCC has found the major supermarkets have leveraged their buying power to lower wholesale processing costs and capture profits from processors. “What’s clear is that processors, often under pressure from supermarkets or export market competition, use their relative bargaining power to shift risks onto dairy farmers,” Mr Keogh said. “The power imbalance is evident in the nature

of contracts between the processors and farmers. These involve uncertain pricing information and contract terms which deter switching. “A code would strengthen dairy farmers’ weak bargaining position and therefore improve competition at the farm gate.” The ACCC says while the recently introduced voluntary code of conduct has improved contract terms in milk supply agreements, it doesn’t go far enough. “There’s been some improvements following the introduction of the voluntary code but, in the ACCC’s view, it is unlikely to fully address the issues that cause detriment in the industry in the longer term. “The voluntary code is not enforceable and processors can choose to not participate or not comply, and there are no negative consequences.” The ACCC recommended additions to the current voluntary code: PROCESSORS and farmers should enter into written contracts for milk supply that are signed by the farmer; MILK supply contracts should not include terms which unreasonably restrict farmers from switching between processors; and PROCESSORS should publish information identifying how their pricing offers apply to individual farm production characteristics to enable

better farm income forecasts. The ACCC also analysed the impact of $1 per litre private label milk on earnings through the dairy supply chain. Mr Keogh said farmers earn the same regardless of whether their milk ends up as private label, or more expensive branded milk. “We don’t think that an increase in the retail price of private label milk would necessarily benefit farmers, and that any additional profit would mainly be captured by the major supermarkets and processors,” Mr Keogh said. The ACCC has found the major supermarkets have leveraged their buying power to lower wholesale processing costs and capture profits from processors. While the supermarkets have kept some of the resulting profits, they have mostly transferred the benefits of these wholesale cost savings to consumers. Other recommendations of the Dairy Inquiry report are: ALL processors should simplify their contracts where possible. FARMERS should ensure they have properly considered the legal and financial implications of contracts with processors. The ACCC is seeking feedback in the interim report by January 31 before releasing a final report in April, next year.

Mick Keogh.

JEFF ODGERS NAMED DA CHAIR Victorian dairy farmer Jeff Odgers was appointed Chair of Dairy Australia at last month’s AGM, replacing outgoing Chair Geoff Akers, who stepped down after 4 years as Chair and 12 years on the Board. Mr Odgers owns a dairy farming business near Shepparton, Victoria, milking 700 cows, and has broad experience in managing large scale farm enterprises in northern Victoria and Tasmania. He served as a Director of Murray Dairy, including Chairman for four years. Gippsland farmer Graeme Nicoll and Western Victorian farmer Tania Luckin were appointed to the Dairy Australia Board.

Report disappoints Victoria, Queensland QUEENSLAND DAIRYFARMERS’ Organisation President Brian Tessmann said the report would “do nothing” to address the issues affecting the Queensland dairy industry. Mr Tessmann said the report “lacked direction and intent to deliver upon what it was established to do”. “While the report acknowledges the major issue affecting our industry, the fact that farmers are carrying the overwhelming burden of risk in the supply chain, it offers nothing in the way of solutions or recommendations to fix it.

“QDO welcome the recommendation for a mandatory Dairy Code of Conduct, however this will not directly address the biggest issue in Queensland, the impact retail prices are having on farm gate earnings. “Over a year of apparent ‘listening’ to dairy farmers the best the ACCC can offer is toothless recommendations that simply rearrange the deck chairs without addressing the crux of the issue, the blatant market failure stemming from the supermarket duopoly.” United Dairyfarmers of Victoria president

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Adam Jenkins was left with mixed feelings about the report, labelling it “benign” and said he was surprised not to see more solutions proposed. “There’s nothing significant that we didn’t understand was an issue,” Mr Jenkins said. “We’re looking for solutions right across the whole supply charge; we can’t solve all that if there’s no solutions put forward. “We know processors have their hands tied by the huge power sitting in the duopoly … I hope we’ll have more processors standing beside us.”

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NEWS – POWER CRISIS // 5

Third world system stops regional growth PETER COLLINS

WESTERN VICTORIAN dairy farmers Oonagh Kilpatrick, Koroit, and Bruce Knowles, Tyrendarra, have spread the message for the past two years that poles and wires should not be overlooked in the climate change debate. They were given a confidence boost at this year’s United Dairyfarmers of Victoria conference in May which adopted four resolutions put forward by the Wannon branch highlighting shortfalls in regional planning. Last month’s Warrnambool meeting called by the Wannon branch of the UDV to address the energy issue drew almost 90 people including dairy farmers, municipal councillors, politicians, business people and householders. They approved a resolution demanding governments collaborate to reduce the cost of energy and provide infrastructure to provide electricity at adequate strength and reasonable cost. There are high hopes a government-spon-

sored pilot scheme will start soon to upgrade single-phase supply lines in the Tyrendarra district where a recent study found all dairy operators were constrained by limitations of power supply. “We need sensible policies that will drive prices down, not ideological dreams that drive prices up,” Mr Knowles said. “At the crux of all this is the necessity for supply infrastructure upgrades — without that there won’t be growth in the regions.” Mrs Kilpatrick, who sits on the UDV policy council, said she had heard of 175 per cent rises in electricity prices for some farmers in the past two years. “This is totally unacceptable and appears to have been caused by historic ineffective longterm planning,” she said. “We are told Australia has gone from being one of the cheapest energy providers to one of the most expensive while still offering what is perceived to be Third World infrastructure in rural communities that politicians say they would like to see grow.

“We need a poles and wire system that will allow proper feed-in and feed-out, thereby benefitting whole communities in the same way citydwelling residents benefit.” Inadequate powerline networks in many prime dairying districts have been cited as hindering regional development. Requested powerline upgrades from singlephase to three-phase would enable access to baseload electricity and provide ability for businesses and households to host renewable energy production and feed into the main grid. Mrs Kilpatrick cited an example of a young farmer located only 12 kilometres from a milk processing factory who had been quoted $385 000 to upgrade from SWER to a single-phasee power feeder line. “If this user-pays up-front practice was removed the farmer could expand,” she said. “Our message is gaining momentum as power bills increase and I encourage all members of farming communities to engage in the discussion.”

Oonagh Kilpatrick and Bruce Knowles have a dogged determination to get a fair deal for power users in rural areas.

Dairy farmers demand action on energy RICK BAYNE

SOUTH-WEST VICTORIAN dairy farmers are demanding government action to secure adequate and affordable energy for the region. Nearly 100 farmers, councillors and business people met in Warrnambool last month to discuss how sky-rocketing energy prices and reliability fears are impacting on their businesses. The Wannon branch of the United Dairyfarmers of Victoria (UDV), based in south west Victoria, hosted the meeting and has vowed to keep up the pressure on governments. While recognising the importance of clean energy, the branch adopted a motion demanding state and Federal Governments collaborate and act to reduce the cost of energy and provide infrastructure that makes adequate elec-

Dairy Australia Commercial Research and Analysis Manager Norman Repacholi highlighted the importance of dairy farming to the economy Basil Ryan, who moved the resolution, said and in generating employment. tricity available at reasonable cost to all areas. “Dairy farms are the seed of regional prosUDV Wannon branch president Bruce the meeting had heard how the region was Knowles said Australia’s power costs had gone coping with “third world” power supplies. “It’s perity and it is important to recognise the diffrom the cheapest to most expensive in the important to keep the momentum going to fix ference one farm can make,” Mr Repacholi said. “The average farm in south-west Victoria will this,” Mr Ryan said. world in just 15 years. Farmers were warned an extra $3760 could reinvest $473 000 back into the community and “This is a disaster for the economy and it looks like going from bad to worse,” be added to their average $18 800 power bills create 3.6 jobs.” Great South Coast Food and Fibre Counthis year and they might also have to foot the Mr Knowles said. Dairy farmers are being forced to buy gen- bill with processors’ extra costs likely to lead to cil’s executive officer Tony Ford said the region was now number two in Australia for farmgate erators to not only secure power but because lower farmgate milk prices. Dairy Australia Manager of Policy Strategy output and was growing at 8 per cent per year, they’re becoming more cost effective, he added. Mr Knowles said the UDV wanted govern- Claire Miller told the meeting the current situa- substantially higher than 5 per cent growth ments and power infrastructure owners to gen- tion was the result of a “perfect storm” of policy achieved in the rest of the country. “However, our share of public investment is failures over the past 10–15 years. erate equitable services for the region. Ms Miller said there were no “short-term low compared to other regions,” Mr Ford said. “Poles and wire infrastructure in the south west is not in good shape but to survive we need silver bullets” but there could be opportuni- “We have latent capacity in the region to grow.” Ford said there was a strong case for for government intervention, affordable cheap electricity and modern, reliThat'sties great thanks. Only othermarket-based thing is can weMr put finance public investment interventions to lower prices, and farmers could able infrastructure and accessibility to 3-phase available to approved customers up in the top right corner as the benefit to cost ratio for investing in 3-phase power was 1.94. undertake energy efficiency initiatives. power,” he said.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

6 // NEWS – VICTORIA

Mountain Milk wants milk on shelves next year VICTORIA’S NEWEST dairy co-op is seeking

a processor and plans to have its first milk on the shelves by mid-2018. The new Mountain Milk Cooperative comprises four farming families from the Kiewa Valley, who produce 18 million litres of milk annually. The new co-op’s chair is Stuart Crosthwaite, a fifth-generation farmer milking 400 cows at Kergunyah South. Mr Crosthwaite said his family, along with three others, received a grant from the $13.8 million Federal Government program, Farming Together, because they wanted to create a more positive outlook for the local industry. Late last month Murray Goulburn announced plans to sell the co-op’s assets, including the local plant at Kiewa, to Canadian-based Saputo Dairy Australia for $1.3 billion. The Kiewa Country Milk brand was also sold. “We felt it was time to act,” Mr Crosthwaite said. “As farmers we want to have more control of our future, and not be directed by outside interests.” The founding group comprises Stuart and Sarah Crosthwaite, Patrick and Kerrie Glass, Scott and Belinda McKillop and Ian and Alice Holloway.

“We are the children and grandchildren of the people who began Kiewa Milk, and who established a proud tradition of co-operative-based dairy farming in the Alpine Valleys region,” Stuart said. “We want to revive that tradition. We are planning to introduce a range of initiatives over the next six months which will build an even stronger link between our farms and our consumers, so people can trust their milk is coming from some of the best dairies in Australia.” He said the co-op planned to start small. “We will be looking to grow by taking on new members, but we need time to organise the business, create partnerships and to build a solid foundation to grow from.” The Farming Together program appointed dairy consultant Patten Bridge to assist the group. “Our vision is to create a new generation dairy co-operative which will provide ongoing benefit and jobs to the communities of north-east Victoria,” he said. “We are currently looking to establish partnerships with milk processors who understand our vision and who are prepared to work alongside us in making this happen.

The four farming families and their advisor: (L to R): Sarah and Stuart Crosthwaite, Kerrie and Patrick Glass, Belinda and Scott McKillop, Alice and Ian Holloway and Patten Bridge.

“Once this is consolidated, we will be exploring options for growth and expanding our footprint in the region.” Farming Together program director Lorraine Gordon said the program aims to help farmers claim better margins and more say in their supply chain as well as building a stronger stake in the

long-term sustainability of their enterprises. The program has launched a free online co-op builder for other groups considering forming themselves into these tax-effective structures. The simple, DIY template is available at www.farmingtogether.com.au

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FORMER AUSTRALIAN Dairy Farmers President, Allan Burgess, has called on dairy stakeholders to reclaim its place as the pre-eminent industry in Agriculture. Mr Burgess, from the Goulburn Valley, shared his wish when accepting the 2017 Pat Rowley Award for Outstanding Service to the Australian dairy industry at the industry breakfast last month. “If I had a final wish, I’d like to see dairy once again as the first ag industry government and the community talk about,” he said. “We had that three years ago.” Mr Burgess first became involved in his local United Dairyfarmers of Victoria (UDV) District Council in the early 1980s. A believer in the ‘power of like minds with a joint vision’, over the following three decades he held numerous positions of leadership including Deputy President of the UDV, Board member of Australian Dairy Farmers Federation, and President of Australian Dairy Farmers.

His commitment to establishing strong research and development structures to support industry growth, meant Mr Burgess was involved in the formation of Dairy Australia and the Dairy Cooperative Research Centre. He was also a key player in the establishment of the Regional Development Program network. With the betterment of farmers always a priority, Mr Burgess recognised the importance of educational opportunities and was a driver in the establishment of the National Centre for Dairy Education. His strong lobbying of the Commonwealth Government also secured assistance for dairy farmers in a number of challenging times throughout the 2000s. In his time as President of ADF, Mr Burgess played an instrumental part in trade negotiations, particularly the three-fold increase in the amount of Australian dairy able to be sold to the United States achieved in the US Free Trade Agreement.

DAIRY NEWS AUSTRALIA DECEMBER 2017

NEWS // 7

Brownes sold to Chinese dairy processor Western Australia WESTERN AUSTRALIA’S 130-year-old Brownes Dairy has been purchased by a Chinese consortium keen to restart cheese production. Brownes was sold by Sydney private equity firm Archer Capital, which purchased the WA processor in 2011 from Fonterra, to the consortium led by dairy giant Shanghai Ground Food Tech. A statement from Brownes said the deal would create access to emerging overseas markets and increase potential for the development of new products and manufacturing capacities. “The consortium was highly attracted to the Brownes Dairy business and operations, its heritage and long history, and the possibilities Brownes offers to grow the Western Australian dairy industry given its strong geographic location on the door step to Asia,” Brownes said. “The consortium expects Brownes to remain the premier supplier of quality dairy to WA customers and looks forward to continuing to service the domestic WA market.” “Not only will we seek to expand into new

products such as cheese, but we will also be better positioned to take advantage of export opportunities and promote the WA dairy industry to a much wider audience.” Brownes managing director Tony Girgis said there would be no disruption to suppliers. Brownes made headlines in June when it was revealed new contacts would penalise suppliers who undersupplied milk. The company had previously not renewed the contracts of four suppliers, forcing some suppli-

ers to quit dairying. Mr Girgis will remain at the helm under the new owners. WAFarmers Dairy Section President Michael Partridge said it was a significant move that would present greater opportunities for Brownes’ suppliers. “The new owner is a Chinese company that has experience in operating dairy businesses in China,” he said. “It is hoped this understanding will gain the

WA dairy industry greater access to markets in China and hopefully other Asian countries moving forward, which can only be embraced as a positive move, particularly if local manufacturing capacities are also developed. “Expansion of cheese manufacturing capabilities would be of significant benefit to the state’s dairy industry and provide greater certainty for producers, particularly after what has been a difficult 18 months due to the lack of access into world markets and in balancing the state’s dairy supply.”

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Tasmania MURRAY GOULBURN sold its Edith Creek

processing facility in Tasmania to Thailand’s Dutch Mill group last month, a day before it closed. Completion of the sale is due early next year and includes land and all assets associated with the site. The deal does not need Foreign Investment Review Board approval because the price fell below its threshold for agribusinesses of $55 million. The Edith Creek facility was one of three closed by Murray Goulburn earlier this year, along with Rochester and Kiewa. Dutch Mill Australia is a local subsidiary of Dutch Mill group of Thailand, a privately held processor and marketer of milk and milk products throughout Asia. Dutch Mill also owns six dairy farms in the Circular Head region of northwest Tasmania surrounding Edith Creek. MG’s Chief Executive Officer, Ari Mervis, thanked Edith Creek employees for “their significant contribution to MG” when he announced the sale. “The decision to close this processing site was difficult to make, however a necessary step on the journey to ensure the competitiveness of MG. “We congratulate Dutch Mill on their acquisition of Edith Creek, and wish them well for the future.” Dutch Mill Australia’s Anthony Guinness said there were no firm plans on what would be produced at the plant. "We’ll be talking as how we best go about that, once we’ve assessed what products can be economically produced at that site," Mr Guinness told ABC Radio.

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8 // NEWS – SOUTH AUSTRALIA

SA wants state-based royal commission into water

Ian Hunter

A ROYAL commission into allegations of wide-

spread water theft from the Murray- Darling Basin is set to begin in South Australia next year. South Australia has also announced it will not support any changes to the Murray-Darling Basin Plan until its integrity can be assured. But the Victorian Government and a number

of water industry commentators have cast doubt on how effective a state-based royal commission will be. South Australian Water Minister Ian Hunter said South Australians had lost all confidence in Mr Turnbull’s ability to deliver the Murray-Darling Basin Plan on time and in full.

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into the basin plan.” Mr Hunter and the Federal Government have a history of locking horns over the Murray-Darling Basin Plan, with tensions boiling over last year after Mr Hunter directed expletive-riddled criticism at then Water Minister Barnaby Joyce over the plan. Mr Hunter has called on federal parliament to not support the sustainable diversion limit adjustment package that would see 605 Gl returned to basin communities. The 36 proposed projects require parliamentary approval in order to be implemented. National Irrigators Council chief executive officer Steve Whan slammed Mr Hunter for his comments and accused him of trying to prevent the basin plan from progressing. “Urging the federal parliament to disallow these amendments is essentially saying they don’t want the basin plan to proceed. If they knock back the 605 Gl in SDL projects, that is a really serious blow to rural irrigation communities,” he said. “Instead of making public statements and trying to get votes in South Australia, he should travel to NSW and Victoria and speak about the level of commitment they are showing and work through these things and all achieve a result, rather than just essentially blowing it up.” VFF water spokesman Richard Anderson urged Mr Hunter to take a breath, saying it was too late and too far into the process for a “dummy spit”. “We know there’s a few issues but you shouldn’t be holding a gun to anyone’s bloody head. He is part of that process and he should be sticking to it,” he said. Victorian independent MP Suzanna Sheed has called for the Murray-Darling Basin Plan to be paused until allegations of large-scale water theft could be investigated. Ms Sheed believed confidence in the basin plan was at an all-time low following a review that was highly critical of compliance levels in NSW and Queensland. However, Ms Sheed questioned how effective a South Australian-based royal commission would be. “To have a single state running a royal commission will eventually be seen as partisan,” Ms Sheed said. Goulburn Murray Irrigation District Water Leadership Forum co-chair David McKenzie believed the plan should be paused for two years. “Almost everyone thinks it is not working properly,” Mr McKenzie said. He said the several reviews, the South Australian royal commission and calls for judicial inquiries showed the basin plan’s implementation was “in almost complete disarray”. “If the public think that it’s not got credibility, then it is a real problem for everyone,” he said. The release of the Murray-Darling Basin Water Compliance Review last month highlighted problems of weak compliance and a lack of transparency across the system. Mr Whan said irrigators had zero tolerance for water theft and they supported strong action. “But this report does not, as the South Australian Premier has claimed, show documented theft,” Mr Whan said. “There are (according to the ABS) 9200 irrigators in the Murray-Darling Basin. This report details five unresolved complaints. “It shows the overwhelming majority of environmental water goes where it is intended. The report highlights challenges in unregulated rivers.” Mr Whan said the report does not justify South Australia’s attempt to stop the plan by reneging on its agreement to a process that includes the Northern Basin Review and Sustainable Diversion Limit Adjustment.

DAIRY NEWS AUSTRALIA DECEMBER 2017

NEWS – QUEENSLAND // 9

Highlighting innovation in the north ORGANISERS OF the inaugural Northern

Australian Dairy Conference are considering holding it as an annual event following its success. The two-day conference, held in Gatton last month, showcased the latest innovation in forage management, herd nutrition and health, breeding and reproduction, markets and drones. More than 100 delegates heard how these technologies and approaches are challenging the status quo of the traditional northern Australian dairy farm.

Paul Judge, Gowrie Junction, Qld, with Fleur Tonge, Casino, NSW.

Tours were held at Chris and Andrew Mullins’ farm at Allora, and the Bourke family farm at Gladfield. The conference was hosted by Subtropical Dairy.

Delegates on Bourke family farm at Gladfield.

Outgoing YDN project manager Vivienne McCollum was thanked by Suptropical Dairy Chair Paul Roderick.

Ross Warren, DAF, Queensland, with Jason McInnes, Radford, Qld.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

10 // NEWS – NSW

NSW dairy women join forces NEW SOUTH Wales dairy farming women have joined forces for their first state conference in 20 years, but it won’t be so long until the next one. The Bale Up Women in Dairy conference in October marked the culmination of the revival of local groups in the Mid North Coast, Bar-

rington, Gloucester and Upper Hunter regions. One of the organisers, Megan Nicholson, said the event was a great success. “The first Women in Dairy conference was more than 20 years ago but it petered out for various reasons,” Mrs Nicholson said. “The local groups reformed around the same

time 18 months ago and were hosting local events but we decided to form a committee to get a state conference going again,” she said. With funding from Department of Primary Industries and Hunter Local Land Services, the 2017 conference attracted 50 attendees to Balmoral Homestead at Muswellbrook.

Karen Hand presents information from a brainstorming session.

“It was mostly attended by dairy farming women, which was pleasing,” Mrs Nicholson said. The conference was opened by Sue McGinn and guest speaker was Lyn Sykes, both of whom were involved 20 years ago with Women in Dairy group. There were education sessions on how to positively deal with social media, technology and automation in the dairy, mindfulness and managing the family business and the home. “Everyone thought it was fabulous,” Mrs Nicholson said. “At the end everyone felt like we need to reconnect and do it annually so we’re planning another conference for 2018.” Mrs Nicholson said the revival of Women in Dairy groups came at an opportune time. “It has been difficult for the industry over a lot of areas in recent years and that was one of the reasons we reformed to support our own communities,” she said. “The conference was great for dairy women to be able to get away from the farm and connect and network and support each other.”

Emily Neilson, Kate Forbes, Lauren McRae, Abbey Smeets, Sophie Cooke. All images: Wendy Fraser

Michelle Phillips from Camel Milk NSW.

Key note speaker Lyn Sykes.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

NEWS // 11

Drawing on experience to help NSW farmers RICK BAYNE

FORMER DAIRY farmer turned rural support worker Peter Brown hopes to change things on the farm and across the industry. Appointed under the NSW Department of Primary Industries (DPI) Rural Resilience Program, Mr Brown will support farming communities in the Lower Hunter, Gloucester and Manning areas. His primary role will be to listen, learn and link farmers to professional services if they need help, but he won’t shy away from supporting them on a broader industry basis. “I hope I can listen to their needs and issues and push them back up through the lines to policy makers,” he said. “If some policies need to be changed we can pass things on so those who make the policies aware of what’s happening.” Mr Brown grew up on a dairy farm and returned 25 years ago. He sold his family property near Taree in June, settling on his 60th birthday. He was treasurer of the Mid Coast Dairy Advancement Group for 15 years and chairman for three years.

“Dairy has been good to us and we enjoyed it but wanted the challenge of doing something different,” he said. “I’ve been through the mill with farming and primary production and this job is all about helping farmers in difficult or challenging times and creating opportunities for farming communities,” Mr Brown said. Mr Brown has a Diploma in Agriculture but says his knowledge of farming provides the perfect base. “You know what they’re facing and what can be done,” he said. Mr Brown supports all rural primary production industries; including dairy, beef, fishing and oyster farming. “The idea is to listen to their needs and issues and link them to someone who is qualified to help. It could be financial, agronomy, herd health or mental health,” he said. “I’m not a counsellor; I just take their needs and issues on board and see what I can do to get someone to help. Farmers are very resilient but sometimes they need a bit of support to build up again.” Mr Brown said networking and socialising

Former Central Coast dairy farmer Peter Brown has taken the role of a rural support worker.

could help. “A lot of farmers feel they’re the only ones facing problems but if you can get them to network with others it helps a lot. It’s surprising how many times you hear the comment that I didn’t realise so many people are facing the same things I’m facing.” Two months into the role Mr Brown said farmers appreciate the support.

“I’m trying to get to as many farmer meetings as I can to get myself known and I’m looking at others ways to help, such as getting farm suppliers on board so they can tell us if something’s not right.” Information on the Rural Resilience Program is available on the DPI website www.dpi.nsw.gov.au

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DAIRY NEWS AUSTRALIA DECEMBER 2017

12 // OPINION RUMINATING

EDITORIAL

High hopes dashed

MILKING IT... Good timing When our friends at the Australian Dairy Conference approached Saputo CEO Lino Saputo Jnr to speak, we don’t believe they had an inkling the Canadian company would be purchasing Murray Goulburn. With the sale expected to occur in the first half of next year, the timing of the conference next February will enable the audience to receive firsthand insight into the process, and the co-op’s future plans. The impossibly handsome Lino is refreshingly candid and open so his responses to questions could create angst amongst the Murray Goulburn PR team. Our dealings with Lino have certainly been in marked contrast to the closed shop approach to information Murray Goulburn took under Helou, which we think bodes well for suppliers.

Amazon is coming Seafood Industry Australia (SIA) Chair Veronica Papacosta packed punch in her 9 minute presentation at the ADIC Industry Leaders’ Breakfast. After telling the audience all presenters had to reduce their agreed time because Federal Trade Minister Steve Ciobo was late, she explained there was a void in the seafood industry with all parts of the supply chain working separately. She was part of forming SIA, which took two years, and has united the industry. SIA now has 50–60 graduates from a young leaders course each year, and has also started preparing for the introduction of Amazon to Australian retailing. What plans does the Australian dairy industry have in place for disruptive technology? In fact, what plans does it have to unite the entire industry?

Listen up!

Only in the UK

Some people still remain squeamish about trying meat or milk produced in a laboratory, and we’re not sure this will help. Rabobank’s Tim Hunt provided an insight into the rise of alternative protein — although meat substitutes will become more popular in the EU, it will be less so in north America and Australia. One source of alternative protein comes through the process of biofabrication, which is also used to recreate human body parts, like an ear. Companies said: “If we can recreate an ear, why can’t we recreate a burger.” And now they are. When science meets commerce — you have a new item on the menu.

This doesn’t surprise us, but we’re still delighted that the surprise literary hit of the UK is The Secret Life of Cows by Rosamund Young, a UK farmer. Her book chronicles the life of Amelia, Desdemona, Charlotte, Dolly and the rest of the herd on her organic farm in Worcestershire. Since its publication last month the book has sold 16,000 copies, and lodged itself in The Sunday Times hardback chart. By contrast, another UK icon, popstar Robbie Williams, has sold no more than 20,000 copies of his biography, Reveal, despite a huge marketing push and being on sale two months longer.

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brettm@dairynewsaustralia.com.au Editor Stephen Cooke

Has any other industry been subjected to as many inquiries as dairy? Are there any other farmers out there who are not cynical whenever a new inquiry is named? Senate inquiries have been commonplace as Governments announce them to deflect genuine calls for assistance from industry leaders and the National Party. With each inquiry, farmers share their insight into what needs to be changed with politicians and their advisers. Each inquiry ends with a long tome of the industry’s ills and woes, which are well known to farmers, and a list of recommendations, which are rarely enforced. Cynicism was set aside slightly when Federal treasurer Scott Morrison asked the corporate watchdog, the ACCC, to investigate, mainly because of the respect for ACCC Commissioner Mick Keogh. Mr Keogh is respected throughout the agricultural industry for his knowledge and clear thinking. However, the interim report released last month has disappointed many for again reiterating known problems and not offering potential solutions. It is well known that there is a power imbalance in the supply chain, with farmers relegated to price takers. There is also consensus that supermarkets hold power over processors because of the power of house brand milk. Labor Senator Chris Ketter was put on the backfoot at the recent QDO conference in Toowoomba when told by farmers that supermarkets are more powerful than the Government, hence the Government’s reluctance to intervene. Ketter denied this, but his protagonists on the day had a fair point. The ACCC has acknowledged this problem in the interim report but has not made any recommendations to fix the problem. Mr Keogh has effectively put all his eggs in one basket — calling for a mandatory code of conduct. It is an important time for the industry to respond to this interim report and stake their claim for stronger and more relevant recommendations for Government to act on. The deadline for submissions is January 31 and the clock is ticking.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

OPINION // 13

Global view to a changing local climate WAYNE JOHNSTON

FOR MANY years now we have been all too

aware that there is a finite supply of farmland, but it turns out we were not quite right. NASA, along with other joint partners, has just completed a survey of the farm land available on a global scale. Much to everybody’s surprise it indicated that there is more agricultural land under production in the world than previously thought — 15 to 20 per cent more in fact. The report shows that global crop land now totals 4.6 billion acres, with India believed to have the biggest acreage of any country. The survey answers the question of how much land we use for agriculture and, just as importantly, where. This will help in determining strategies around things like water and soil to ensure future sustainability into the future. This new information will be a valuable tool as we face the challenges of producing more food for an ever-increasing world population. The other key element of this finding will

be to assist us to address the effects of climate change. Much of this land is situated in regions of the world where even minor changes to climactic conditions will have a significant impact on agriculture. Here in Tasmania we are blessed with some of the best farm land in the world. As I have said before, at some point we are going to have to recognise the need to access reserves to build on our current production capacity. While I understand that some find this confronting, the reality is, without it food production will simply not keep pace. But such changes however cannot be done on an ad hoc basis. Tasmania is now seeing the effects of changing climactic conditions, so we will need to take on board the CSIROs modelling as it relates to the state. For example, there will be no point in accessing land that is subject to unreliable rainfall. Any changes will need to be done based on climate predictions. All indications are that over the coming

leagues who are already doing it tough this early in the season. Forecasts are contradictory, with some suggestion that La Nina will occur later in the season, but it will be short lived and weak. This could translate into little rainfall. No matter what way you look at it, clearly Tasmanian farmers are going to be called on to adapt to an ever-changing environment. • Wayne Johnston is the President of the Tasmania Farmers and Graziers Association.

decade Tasmania will see significant changes in weather patterns, resulting in some parts of the state receiving more rainfall than they currently do and others suffering rainfall deficits. To some extent we are seeing it this year, with the northern parts of the state having a reasonably good season, while the east coast and many parts in the south are near drought conditions. From a state perspective we are much better placed than we were in 2015, but our thoughts must go to our southern and east coast col-

LETTER TO THE EDITOR

Southern pricing structure must be changed to promote growth DOES MURRAY Goulburn really still have

1.9 billion litres of milk from suppliers? That number is being used quite a lot. Fonterra think they can spend $100 million and gain another 500 million litres; Saputo wants its 800 million litres back; ACM is putting a new plant and wants 200 million litres; Freedom Foods wants 200 million litres and UDC wants more milk, not to mention Burra. I don’t know where it will all come from — some magic milk bucket? The pricing structure from Saputo, Fonterra and most other processors is not growth orientated and has to change. Saputo has said it now wants to desperately gain and dominate the Australian domestic

market in the first instance. It’s what it does best, with the rest exported. The problem is, when Saputo gets control of MG, it will put both Saputo and Fonterra back in the same position they held for the last 15 years, at a Mexican standoff regarding the southern milk pool, and its efficiency and the ability to grow it at the 2–3 per cent they are hoping for. Unless they all change their pricing to not cannibalise the spring (call it the seasonal calving /none flat milk curve) nothing will change. They will just go on with the same farcical merry-go-round of pinching supply from each other. The only bright spot is that Saputo has said no more special price deals, everyone gets paid the same.

Now finally Michael Harvey from Rabobank is finally saying the same — that trying to create a flatter peak to trough milk production ratio has done nothing more than add costs and inefficiency to both the processing and farm production systems. The southern milk pool needs $6 kg/MS to grow, along with a flat milk pricing payment system. They are collectively looking for another 1.8 billion litres and are putting in more new stainless steel to process it. We have spare and idle capacity now, making Australia highly inefficient at milk processing with a high cost structure. We do not need more. It’s madness. There seems to be no co-ordinated

approach from our industry leaders in all this. First, we need to fix the milk pricing structure of the southern milk pool, which was once the powerhouse and engine room of the Australian industry, so it once again has a lower cost structure and is highly efficient and resilient to the commodity price cycles we have to deal with and in a position to grow its milk volume over time. We have to stop putting the cart before the horse. Who will now be the voice of reason in all of this? Who will step up to the challenge to be the new farmers’ champion (if we ever had one) — Saputo, Fonterra or our industry leaders? • Bernhard Lubitz is a dairy farmer from Leongatha.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

MARKETS // 15

FRESH AGENDA JO BILLS

The slippery slope of EU dairy policy

IT’S THAT time of the year when we tradition-

ally look back on the year that was. It’s also a time for looking forward to the year ahead — perhaps with trepidation, but I reckon if you’re a farmer there is always hope. Looking back on the year — from a global market perspective — the big story has been butter. I have been around the industry long enough — I started very young — to remember when milkfat was a problem the industry had. Back in the days when fat was bad, it was all about protein. Payment systems have reflected that for a long time — traditionally around 65 per cent of the price farmers received for a litre of milk was for protein. Fat was component non-grata. Fast forward to 2017 and sugar is now the bad guy — fat is not so bad as it turns out. The good news for dairy is natural, tasty fat is even better. While the structural uptick in demand has seemed surprising it’s a shift that has taken years, and reflects the convergence of a number of trends — the MasterChef movement with renewed interest in watching cooking ….if not actually doing it — and using more authentic ingredients. Alternative spreads and oils have fallen from favour because of their highly processed nature, and butter has emerged as an unlikely hero product for the dairy industry — what great news! While demand appears to have undergone a structural change, it isn’t enough to explain the record-breaking prices for butter that have prevailed for most of this year [Graph 1].

It has understandably got some farmers asking to be shown the money. But the fact is, there has been very little product to trade at these crazy values. How can that be? In France #BeurreGate is actually a thing! The absence of butter from supermarket shelves and the threat to croissant consumption is no laughing matter, with stories from The Economist, the UK’s Daily Mail, even the New York Times, as well as the local press grappling with the issue. We recently wrote a blog on our website canvassing the various explanations offered up in the

Record-breaking prices for butter for most of this year have understandably got some farmers asking to be shown the money. media about the “butter crisis”. Most blamed the Chinese demanding more dairy products. Other explanations for this global butter shortage included climate change, tough pasture conditions and lower grade feed in Australia, and EU farmers scaling back production as a result of market liberalisation and lower prices. But do these explanations really add up? Haven’t we all been suffering from a global milk over-supply for a few years — surely there’s enough milk to go around and satisfy this increased demand? In fact, Chinese imports have actually backed off in milk equivalent terms since 2014 [see Graph

Graph 1.

2], and while infant formula sales grab a lot of attention, these products don’t use as much dairy as many believe. So, what would explain this apparent disconnect between demand for a product and its supply? Just as #BeurreGate has hit Europe hardest, as one of the world’s largest producers and exporters of butter, the answer appears to lie there. Because into this golden age, this butter market renaissance, lumbered the EU Commission. Through its SMP intervention program, which it extended over the past 18 months to support EU farmgate prices, the Commission has amassed an impressive stockpile of almost 400 000t, which it has been unable to liquidate. The size of the stockpile and the uncertainty over future policy direction has sunk SMP values so low that for much of the past 12 months, despite record butter prices — cheese has been a more profitable destination for European milk. Processors have however carefully managed to avoid over-producing cheese. Low SMP prices have also deterred other exporters such as New Zealand from directing milk toward butter. This has made it challenging to address shortages, and driven butter values to dizzy heights — although spot prices appear to have hit the ceiling in recent times. Lack of supply and high costs have possibly led to some substitution from end users — taking the gloss off the butter demand revival.

View inside a supermarket in Vaux-sur-Mer last month. Butter is expected to become scarce in France's supermarkets due to a competition between chains. (AAP Image/ NEWZULU/Michel GARDE)

That situation is unlikely to change if a recent proposal from the Commission is passed by EU members. Vexed by the mountain of SMP they are sitting on, and the prospect of even more EU milk growth in 2018, the Commission is proposing to change its policy, so that when intervention opens on 1 March there will no longer be a set buying-in price — but a case-by-case decision … from a committee. This is to avoid further intervention purchases in 2018, which would undoubtedly occur if dairy manufacturers are to address the butter shortage, safe in the knowledge that there would at least be floor under SMP. Under this proposal, uncertainty is cranked up even further. Until the powder mountain is consumed, the butterfat-protein quandary will remain. So while it’s beginning to look a lot like Christmas, many consumers in Europe might be short on the shortbread, it might be hard luck on the hard sauce for the pudding … and time to banish the brioche! • Jo Bills is a director of www.freshagenda.com.au

Graph 2.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

16 // MARKETS

Dairy NewS aUSTraLia june, 2012

agribusiness // 17

forremains global milk surge ortPrepare demand strong

slow milk production through the market trough however the prospective range of outcomes for remain stable for now, and cream cheese has seen of 2014–16, and this growth is continuing (an a revised forecast isn’t expected to severely dent some modest gains largely as a result of the ongoing relative strength of fat pricing. increase of 1.5 per cent for October, matching production. cents/litre in March 41c/L) 28 a few By (AUD the time thistocolumn is published, the Weather conditions remain the bigger variable, the year to date trend). incremental change in milk production (year-on-year) Euro (AUD 36c/L) in April. now deluge of rain headed for southern wetcents/litre could forthcoming Reports suggest that this will begin to moder- with some suggestion that the recent Australia likely toin bethe a distant memory. transition quickly to an excessivelyProfit dry period in are ate as barns fill and cow numbers level off. margins underispressure armBut ashas with the forecast rain, be aware that Either way, there is more milk coming, and the parts of the country. US, and in NZ Fonterra announced ming of deluge could be on the way. But it would take a significant weather anommarket impact is starting to show up. the final payoutanother for theform 2011/12 season used It might not be as bad aly to undo the ongoing recovery; strength in PKE Butter prices have weakened, even as many has been cut from NZ$6.75-$6.85/kg MS as we suspect, but it ncorGLOBAL IMPACT hurt(AUD$4.96to be prepared. (palm kernel expeller meal) imports has been doesn’t MS expressed surprise at the outcomes of the most gLobaL impacT JOHN DROPPERT to NZ$6.45-$6.55/kg d ‘tier JohN DropperT • John Droppert is senior industry analyst with noted as evidence that NZ farmers have suffirecent GlobalDairyTrade (GDT) event (#200). $5.04). rmer Dairy Australia With butter supplies still tight, it had been cient margins to buffer feed challenges. Effectively, global dairy markets are For On a brighter note, cheddar prices appear to THERE’S STILL a month to go, but dairy mar- expected that anhydrous milk fat (AMF — an rebalancing. Lower prices will both Shifts in private label contracts and pronted kets aren’t spreading much Christmas cheer at ingredient form of milk slow production growth and stimulate rationalisation have seen milk ve to thecessor fat) would be the weaker moment. demand, and as this occurs we will ultiadjust their intake requireo the companies Swelling milk production across major export- of the two fat products. mately see a price recovery. Key factors and pricing to meet the changeems ingments Whether this simply regions has again been leaning on dairy comto watch on the global scene will be the ing demands highly pressured retail term modity prices, of a ayear after the most recent extends the potential fall rate at which milk production overseas marketplace. Lower contract prices and mand recovery. for AMF remains to be a large extent, thesupply bad news is in the out- seen. slows in response to lower prices, the aTo lack of alternative opportunirisk for in the US those in south-east Asia and the Middle impact of the current financial worries current commodity priceswith still atflows. The 2012downside milk production tieswith present challenges in a market tlook look, prices considered levels — despite capacity. some exceptions, around 4%ison 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of limited manufacturing Despitepar-is upAMF ces – reasonable to be signifi cant in light ofwhilst early nomic growth rates that support China’s economic growth, and the value ticularly skim milk powder (SMP). 2: Sit- these challenges, the underlying domes- April (leap year adjusted), supplies and modest However, the ongoing in milk pro-databetter suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. market is stable, withgrowth steady per-capor an tic duction can’t be ignored, and barring a signifi- demand, compared to Demand for exported dairy prod40/kg ita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced cant supply shock, there will be further impacts butter. ucts remains a positive and will condemand growth in the market. 2.3% on the previous year. New Zealand ange population providing a degree of cerDespite some recent in 2018. This situation has seen the scales tinue to grow with the middle class in is widely expected beyond the current adjustments. production The tainty commentary around stron- to finish Where is this milk coming from? tip in favour of buyers in dairy mar- large emerging markets such as China, this season up 10% on last year a huge the seasons following the 2008 t pic- In In short, growth in milk production has been ger futures pricing, SMP kets, with commodity prices retreat- with changes in diet and with increasing market influence given 95% of NZ milk financial crisis and subsequent comctors coming from the US all along, it’s beginning to re- prices remain weak. ing steadily over recent months. Butter urbanisation - and also in conjunction is exported. Argentina is also enjoymodity price recovery, farmers in nt sit- emerge Small ebbs and flows from Europe, and before long there will solid production growth, n the beexport-oriented futures markets have but a sig- prices are down some 30% from their with global population growth. Locally, more out of Newregions Zealand.have seen solid ing in meantsupply little to theinphysiThe latter’s per cent in Octo-nificant gap Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a global supply2.7 growth (seeincrease chart) - with calof market so far, though (stacked towards the end in of the month) this additional milka from leav- lost more than 20%. Farm gate prices growing population and stable percompetitors North- hasmuch d on berhigher-cost Euro has helped the world’s amongst biggest dairy have subsequently been reduced in capita consumption. Whilst the dairy South America. ern Hemisphere thoseexporter expand-backing stronger mers pushed limit the downside eff ect of European marketexporting regions. The average market is currently a challenging place into positive growth territory for the season to Despite wider economic uncer- most form ing output as their margins increased. movements. date, a trend which is likely to continue unless racts This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that balThe trickle of product sales from intervention ‘big wet’ of recent times becomes a ‘big dry’ have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. pply. theditions stocks at progressively lower prices continues to over summer. Europe’s numbers are in a similar place, with stoke much commentary and speculation, though 3.2 per cent growth for August extending to more at the end of the day the ongoing existence of this 350 000-plus tonne stockpile remains a decidedly recent months, according to local sources. The disconnect between farmgate prices and bearish influence. Prices for WMP have eased further in the wake the darkening commodity outlook in Europe is commonly mentioned, but only recently has it of the aforementioned October data confirming a begun to look like the signals to slow production recovery in New Zealand milk production. A downgrade of the current NZ$6.75/kg MS growth might be getting passed through. AN-Australia-New the Atlantic, the US never really did farmgate milk price forecast is considered likely, and FTA Across (AANZFTA).

sia FTA benefits dairy Freedom

Foods plant targets Asia

Protectionist sentit overGrowth agricultural in milk production has been coming from the US A downgrade of the current NZ$6.75/kg MS farmgate milk price forecast is considered likely, s is rife and grow- it’s beginning to re-emerge from Europe, and all along, however the prospective range ofFooD outcomes for revised forecast isn’t expected to severely dent cross the globe, so toaprovide portion pack austraLian before long there will be more out of New Zealand. production. is context it is pleas(200-330ml) configuracompany Freedom Foods Australia has managed tion for beverage prodGroup Ltd is to build a rge an agreement new milk processing plant ucts. Malaysia that has The NSW location will to cash in on growing with some sensiprovide access to the most demand in Asia. agricultural issues The plant, to be built in sustainable and economic effectively covered by southeast Australia, will be source of milk. Pactum has ZFTA,” says Fraser. strong links to the Austrathe first Australian greenSealing the deal: Malaysian trade minister Mustapha Mohamed While under the fields expansion in UHT in lian dairy industry and will with Australian counterpart Craig Emerson after signing the deal. ZFTA agreement expand its arrangements 10 years. t of Australian agriwith dairy farmers for Freedom’s wholly but also through technical Despite the compleers through streamlining ure’s key interests supply of milk. The new owned subsidiary Pactum or so called ‘behind the tion of this agreement, of rules-of-origin decariffs bound at zero, plant will increase scope Australia will run the much remains to be done border’ restrictions.” y and rice are two sec- laration processes and plant. Some of its products for Australian milk supply The FTA was signed on for Australia’s farmers to improved marketing where incremental – value-added, sustainable will be sold in Australia. May 22 in Kuala Lumpur tap into the full potential arrangements for certain ket access improveand export focused. The company says by Australia’s Trade and of the Asian region and commodities. ts have been negotiInitially the plant will given Asian consumCompetiveness Minisbeyond. The Malaysian market under the Malaysian produce 250ml and 1L ers’ rising incomes and ter Craig Emerson and his He says the NFF will is worth about A$1 bilUHT packs from a process improving diets, demand Malaysian counterpart now throw its attention lion in Australia agriculThis trade deal was line capable of 100 milthere will grow for qualtowards ensuring agricul- Mustapa Mohamed. tural exports – including particularly imporlion L. The processing and ity dairy products from Emerson says Australia ture remains front and being its fourth-largest for sectors such low-cost production bases packaging plant will emit centre in completed FTAs will be as well-positioned sugar export market and iry that have been less carbon, use less water, such as Australia, whose in the Malaysian market fifth-largest wheat export with South Korea, Japan, g a competitive disand be more energy-effimilk is well regarded.

DAIRY NEWS AUSTRALIA DECEMBER 2017

MANAGEMENT // 17

An appetite for change FARMERS OFTEN report that rapid changes to a dairy cow’s diet can lead to dramatic reductions in milk yield, presumably caused by variable feed intake, disrupted rumen function and possible health problems. This often happens in late spring or early summer when concentrates are introduced into a mostly pasture diet, or in autumn when pasture availability increases and concentrates are withdrawn. A research project by Agriculture Victoria researchers at Ellinbank is focusing on reducing these negative effects by redefining the recommendations around diet changeovers in dairy systems. An initial experiment conducted by PhD student and Research Scientist, Victoria Russo, investigated the use of different strategies for introducing increased amounts of wheat grain (8 kg DM, equivalent to 40 per cent of total DM intake) into the diet of late lactation cows previously being fed only lucerne cubes. The wheat was introduced either rapidly over six days, or gradually over 12 days, and either in large increments of 2.7 kg or small increments of 1.3 kg. The results were unexpected in that they showed that no matter which strategy was used, there were no detrimental effects of grain introduction on intake, milk yield or ruminal pH, and

nor were there any signs of acidosis. “We think the lucerne cubes helped to buffer the pH of the rumen, preventing the drop in ruminal pH that is typically seen when a highly fermentable starch source is fed with fresh pasture,” Ms Russo said. “This suggests that the effects of diet changeovers on rumen function are driven not only by the characteristics of the grain being introduced but also by those of the forage.” In light of the results of that first experiment, Ms Russo then refined a method for assessing the buffering capacity of different forages by titrating them against hydrochloric acid and used it to screen 150 samples of forage, both fresh and conserved. “We found a stark variation in the buffering capacity of different forages,” she said. “There was variation in the initial pH, and also in the amount of acid needed to change the pH of the forage. The more acid that is required, the greater the buffering capacity.” The next step was to pick some forages that showed both good and poor buffering capacity in the laboratory and test them in cows. “We picked two perennial rye-grass cultivars that we fed fresh, as well as rye-grass hay and lucerne hay,” Ms Russo said. “We fed these forages to cows as 100 per cent of their diet for three weeks before suddenly

introducing them to 8 kg DM of wheat per day. “We found that some of the forages were much better at protecting against steep drops in ruminal pH than others. “Following the grain challenge the two hays, in particular, resulted in ruminal pH that didn’t drop as quickly or as low as the fresh forages. Generally these results were in line with what

we had predicted in the lab.” Overall the results so far suggest that the effects of diet changeovers on rumen function are driven not only by the characteristics of the grain being introduced but also by those of the forage. If farmers need to introduce grain quickly it pays to also consider the base forage as a way of preventing dramatic declines in ruminal pH.

PhD student and Research Scientist, Victoria Russo, has investigated the use of different strategies for introducing increased amounts of wheat grain into the diet of late lactation cows previously being fed only lucerne cubes.

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DAIRY NEWS AUSTRALIA DECEMBER 2017

18 // MANAGEMENT

Gippsland farmers act to reduce carbon emissions STEPHEN COOKE

TWO GIPPSLAND dairy farmers have utilised

new technology to undertake an environmental assessment of their farms. The new Dairy EA environmental assessment utilises an holistic approach on farm, measuring overall efficiency and performance to deliver a carbon footprint of the farm and solutions on how to reduce it. Gippsland farmer Simon Coster, Cloverlea, near Warragul, said he decided to complete the assessment as he wanted to find areas in his business to improve. “It also provides a comparison of how our farm does against other farms, as we can benchmark against Victorian farmers or against other pasture-based systems.

“Hopefully I’m leading the field with what we’ve implemented.” Mr Coster had the necessary data at hand and worked with Alltech E-CO2 co-ordinator for Alltech Oceania, Susanne Roth, on his assessment. There are between 300–400 questions asked across the areas of herd size, milk production, heifer management, feed intake, herd health, culling, calving, cropping, feritliser use and fuel and electricity use. The anonymous farm information is sent to E-CO2 headquarters in London and the report shows the contribution of emissions to each source, including manure emissions, artificial fertiliser use, nitrous oxide from manure and grazing, methane from rumen and feed use. Although the report indicates the emission of CO2e (Carbon dioxide equivalent)/kg of milk solids, it also highlights the farm’s strengths and

Gippsland farmer Simon Coster on his Cloverlea dairy farm.

provides steps on how to improve. Jindivick dairy farmer Steve Ronalds had his herd assessed earlier this year. “Our farm result was 30 per cent better than the Victorian average,” Mr Ronalds said. However, he is working on reducing his carbon footprint by 5 per cent. Most farms can reduce their footprint by 5–7 per cent through different methods, including reducing heifer calving age, reducing mastitis, reducing culling rate and achieving a better balance of manure application to fertiliser. Reports have shown the largest dairy herd cost, feed, offers the greatest potential for improving profitability and carbon performance. Mastitis also contribute as it affects a herd’s fertility and productivity. Mr Ronalds established the Gippsland Jersey milk brand, with business partner Sallie Jones, and said it has been good to know what their emissions are when asked by customers. Animal nutrition company Alltech has now conducted more than 6000 assessments in Europe, the US and now Australia.

UK supermarket chain, Tesco, has used the system to assess the carbon footprint of its dairy farmers who are part of the TSDG (Tesco Sustainable Dairy Group). Dr Roth said the DAIRY EA assessments have now achieved accreditation by the Carbon Trust for Australia and each farmer will receive a personalised sustainability and efficiency report. “Assessments are directly linked to physical and financial performance, where custom feeding regimes and management practices can be developed to sustainably improve farm efficiency and profitability,” Dr Roth said. Recent environmental assessments conducted by Alltech E-CO2 on 58 dairy and 11 beef units across Europe has shown how farm efficiency improvements can boost profitability whilst also reducing the carbon footprint of the enterprise. In the study, which was carried out utilising Alltech E-CO2 environmental tools, various herd efficiency improvements delivered an average of €238 (AUS $358) extra per cow per year for dairy and there was a significant drop in carbon emissions.

E-CO2 coordinator Susanne Roth works with Simon Coster on his carbon emissions assessment.

Independent evaluation of pasture performance in WA RICK BAYNE

A NEW WA research initiative that has local

science skills embedded in the suite of Western Dairy services is providing real-time and independent pasture variety analysis. “The objective of having a pasture variety trial in WA dairy regions is to give producers greater confidence in their decision making, backed by independent science and analysis,” said Western Dairy scientist Dr Peter Hutton. Using four replicates of six pasture varieties that are representative of those current sold in WA, Western Dairy undertook five harvests for the season and analysed each for both yield and quality. “Where there is a statistically valid difference between varieties, in a given season and in a given soil type, we can help identify what

is the most profitable variety for a particular farm system,” Dr Hutton said. “We have gone out and purchased the seed from commercial re-sellers to ensure total impartiality.” Six varieties of rye-grass were tested this season on a run-off dairy block at Boyanup: Catapult, Maximus, Wicher, Abundant, Ascend and OreTet. The first year of analysis indicated that on this site and this season, OreTet had the highest yield and energy. Dr Hutton said the initial trial was on relatively infertile soil and results could differ on highly fertile land with better moisture holding capacity. “It is vital to appreciate that the varieties that performed well in this trial may not be ones you’d pick for your own situation,” he said.

“As we keep going with the trials we can build up the library of information on pasture yields and to address relevant issues such as good grazing management; fertiliser and lime application strategies; and pesticide and herbicide applications.” Dr Hutton said farmers and seed companies wanted this sort of independent information. “Farmers can get better informed on the performance on modern rye-grass varieties and know what varieties will suit specific situations,” he said. “It will help them to know their system and be able to ask the right questions when they go to buy seed and importantly understand that there is the potential for significant difference in the profitability of some rye-grasses.” Rye-grass pasture is the most important part of the feed base on WA dairy farms.

Western Dairy research scientist Peter Hutton (right) with South West Catchment Council’s Peter Clifton at the local pasture variety trial in Boyanup, WA.

MANAGEMENT // 19

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DAIRY NEWS AUSTRALIA DECEMBER 2017

20 // ANIMAL HEALTH

The most wonderful time of the year AS THE festive season approaches, many herds

with seasonal or split calving patterns are commencing drying off cows for the onset of the autumn calving period. This article discusses

preparation during the pre-calving period. Although many dairy farmers are very experienced with the procedure of drying off cows, it is worthwhile to have a review at least once

annually. This is particularly important if there are new staff or different facilities from the previous dry-off period.

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APIAM ANIMAL HEALTH GEMMA CHUCK

Dairy veterinarians can offer this service and will often review the protocols leading up to and after drying off, as well as the technique of administering dry cow therapy. In herds where blanket dry cow treatment is not used, vets can assist with interpreting herd test or milk meter data, to identify cows requiring selective treatment. Pre-ordering specific dry cow therapy and teat sealant allows delivery of these products in a timely manner. The drying-off consult is also an opportunity to review the number of cases of clinical mastitis in freshly calved heifers and cows and to determine if the use of a teat sealant would be beneficial. This will vary on a herd-by-herd basis but relies on accurate records from the previous calving period. The management of cows with repeat cases of mastitis, 3-titter cows and cows with chronically high cell counts should also be discussed with your veterinarian, to develop a plan for these cases in advance of the calving period. Some vaccines must be given at drying off to ensure that peak-effect coincides with colostrum production. These ‘colostral vaccines’ are recommended on a farm-by-farm basis and are generally used for the control of calf scour pathogens. A primary course usually involves two vaccines given a specified period apart prior to expected calving. Annual boosters are often required but remember that new heifers calving for the first time and bought-in cows will need the primary course and this should be planned for in advance. Pre-ordering of colostral vaccines will ensure that adequate stock is available when you require it. If you haven’t already done so, now is the time to plan your transition cow ration, in conjunction with your nutritionist or veterinarian. A review of records will help identify if the previous transition cow ration was successful. It is important to monitor how a transition cow ration is performing during the calving period to identify any issues as early as possible. After drying-off, take stock of any drugs used in cows and calves on the farm. It is not recommended to use out-of-date products and these should be safely discarded. Discuss with your veterinarian which drugs will be needed on-hand for cows and calves. A review of drug selection, dosage and administration is recommended. Re-stock appropriate sized needles and syringes for cows and calves, along with a secure sharps-container for safe disposal of used needles. Specific treatment protocols are beneficial for common problems in cows and calves and should be discussed with your veterinarian prior to calving. Treatment protocols help all staff recognise common diseases and how to select an appropriate treatment. Ensure all staff are adequately trained in recognising the stages of labour, when a cow needs assistance and how to assist Continued page 21 >

DAIRY NEWS AUSTRALIA DECEMBER 2017

ANIMAL HEALTH // 21

Keep an open mind when investigating

< Continued from page 20

It is a good idea to have everything required for an assisted calving in a convenient location next to the crush. Equipment used to deal with new-born calves should also be checked and re-stocked as necessary.

Adequate preparation and the right planning can pave the way for a successful calving period. It really can be the most wonderful time of the year! • Dr Gemma Chuck is a veterinary adviser at Apiam Animal Health.

Action list: • Book a dry off review with your veterinarian • Decide on a dry-cow and teat sealant strategy using herd test or milk meter data. • Pre-order required dry cow therapy, teat sealant and colostral vaccines. • Don’t forget the primary course of colostral vaccines for heifers and introduced cows. • Develop a transition feeding plan in conjunction with your vet or nutritionist.

• Check calving equipment and newborn calf care supplies

Be sure building farm colostrum awareness

colostrum first Managing colostrum successfully is fundamental to improving both the health of young calves and the long term productivity of the dairy herd. The Colostrum First program includes: • Review of current colostrum management • Assessment of passive transfer and colostrum cleanliness • Establishment of benchmarks • Monitoring progress

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• Discuss treatment protocols, required medication and prescriptions with your veterinarian.

• Rod Dyson is a veterinary surgeon and mastitis adviser at www.dairyfocus.com.au

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In terms of teat end condition, it is quite common for us to find over 40 per cent of teat ends with hyperkeratosis around the teat orifice that would be classified as either “rough” or “very rough” according to the definitions that Countdown has given us. This means that over 40 per cent of quarters on those farms are at a significantly higher risk of infection due to this damage. Compare that to a farm where teat end condition is very good with only 10 per cent of teat ends having hyperkeratosis that was classified as

is a definitive method by which stark differences in the coverage being achieved can be easily demonstrated. In terms of the overall mastitis risk to the herd, the impact of these factors is often cumulative. A herd with a high level of teat end damage that also has poor teat spray coverage will be at a far higher risk of mastitis infections than a herd with good teat end condition and excellent teat spray coverage. Whilst we have discussed just these two risk factors, it actually then extends across all of the different factors that are assessed and measured during a milking time assessment, which can result in a complex set of findings that will need to be considered and prioritised. Once prioritised, specific plans can then be made to address the key issues that have been discovered. Countdown trained advisers have the tools to conduct these assessments for you, and you may well be surprised at what you discover!

T S

Two of the most common risk factors that we see arising as a problem in these assessments are teat end condition and teat disinfection.

“rough” or “very rough”. With significantly less teats adversely affected, this translates to a significant reduction in the overall risk to the herd. With respect to teat disinfection, the importance of highly effective teat disinfection in mastitis control cannot be overstated. In fact, the Countdown Farm Guidelines tell us quite clearly — “It is one of the most effective cell count and mastitis control measures available, but it only works if it is done thoroughly.” Whilst “done thoroughly” involves a number of factors like product choice, mixing, storage, etc., probably the key element is the actual coverage of teats that is achieved upon application of the disinfectant. It is very common for us to find that the coverage being achieved is much less than what it appears to be at first glance. Often a little time spent observing cows leaving the platform will suggest significant areas of teats that have not been covered, especially the front of teats as this is the most difficult area to get to with the spray. However, the “paper towel wrap-around test”

DURING THE milking process in any dairy, there are a substantial number of factors which can influence the risk of mastitis infections. The Countdown Farm Guidelines and the supporting Countdown Technotes describe these factors very well, and also how to measure and assess them. It takes a reasonable amount of time to conduct all the necessary assessments during milking, and it may not always be possible to complete all the tasks in one milking — especially if it is a relatively short milking or there is only one adviser conducting the assessment. Having now done milking time assessments in literally hundreds of Australian dairies, it would be easy to generalise and assume that the most common risk factors are always likely to be there. However, some recent milking time visits have reinforced for us how every dairy and every herd of cows is different, and also how important it is to enter each milking assessment with an open mind. As an example, two of the most common risk

factors that we see arising as a problem in these assessments are teat end condition and teat disinfection.

ROD DYSON

DAIRY NEWS AUSTRALIA DECEMBER 2017

22 // IDW PREVIEW

Everything for the modern farmer at IDW EVERYTHING THE modern dairy farmer

needs — from the latest machinery and products, the latest genetics, through to seminars on new research — can be found at International Dairy Week, now in its 29th year. The expanded format of this popular event continues to draw farmers from throughout Australia to Tatura in January This year’s event will run from Sunday, January 21 until Thursday, January 25, concluding with the presentation of the RASV interbreed champions and Australia’s grand champion cow. Daily admission is $10 for adults; children are free. Weekly passes can be purchased for $30. Kicking off the festivities is the event’s nondenominational church service — a popular start to the event now in its 22nd year. It will be held on the Sunday morning in the Blackmore & Leslie Complex from 9.30 am — 10.30 am. The next generation of dairy farmers then take centre stage with the Holstein Australia Victoria Youth Challenge Trials at midday, followed by the State Junior Judging final. And it’s another big day from 8 am on Monday with the ABS Australia/Ridley All Breeds National Youth Show, followed by the IDW Youth Showmanship Classes, starting at 3 pm.

Seminars Seminars will be held from 8 am Tuesday, through to midday Thursday. The seminars cover a variety of subjects, including the ImProving Herds project, highly efficient calf rearing systems, lifting production without in-feed antibiotics, cow bedding, correct vaccination, sexed genetics and breakthroughs in sexing technology, breeding for heat tolerance, profitable cow housing, profiting from bobby calves, LED technology, value adding calves and maintaining the industry’s social licence. On Tuesday, the Dairy Farm and Machinery Field Days, proudly sponsored by Dairy News Australia, begin and run for three days, from Tuesday, January 23, to Thursday, January 25.

Machinery Field Days Visitors to the Dairy Farm and Machinery Field Days can expect displays that will cover all

aspects of their farming operation, with businesses from South Australia, Queensland, Victoria and NSW exhibiting. Several sales of elite performers will be held throughout the week, with Elite Ayshire sale starting at 11.30 am on the Tuesday, and the national Guernsey and Brown Swiss sales held at 6 pm that night. The Jersey Showcase Sale will be held at 11.30 am on the Wednesday, with the World Wide Sires Evolution Sale will held that night at 7.30 pm. There are seven cattle shows across the program and the RASV’s highly coveted Interbreed Champion will be presented as part of IDW. Throughout the event, visitors can visit an air-conditioned marquee to see daughters of some of ABS’s best bulls in the flesh, who stand out from the crowd. The ABS Showcase is located adjacent to the Blackmore & Leslie pavilion and will be open every day from 10 am.

Virtual farm tours On Tuesday evening from 7.30 pm at Tatura Park, virtual farm tours will be held in the Blackmore & Leslie Pavilion, “touring” Canadian operation Ferme Blondin, in Quebec, and Carpenter Farms, in Tasmania. Ferme Blondin is a seventh generation farm owned by Simon Lalande and Kim Cote in St. Placide, Quebec.They milk 125 cows in two separate tie-stall facilities. Dann Brady is the sales and marketing manager for the herd, working on the genetics program, managing the embryo sales and marketing of the herd. Blondin is a unique setup as 75 per cent of the income for the farm is derived from genetic sales. Whether it be through live cattle, embryos or bull sales. A new 250-cow free stall facility was built this year to help handle the large number of fresh young cows sold each year. Garry and Bev Carpenter milk more than 850 cows through robots and hope to produce seven million litres of milk. The robots are part of a retirement and lifestyle plan.

Dairy News Australia Farm & Machinery Field Days run from January 23-25.

With the new facilities the Carpenters hope to be producing nearly seven million litres of milk within a season and a half. The national All Breeds Youth Camp will again be held as part of IDW following the success of last year’s event. The camp enables its young participants to develop their leadership skills as well as improving their cattle showmanship.

Women In Dairy dinner The Power of Women in Dairying event — now in its third year — is quickly becoming one of the most popular events at IDW. It will be held on Tuesday, January 23 at 6.30 pm. It’s an excellent opportunity for women who want to create opportunities for networking, learning and inspiration from others working in the dairy industry. And just to share a meal and a laugh. Guest speakers are Di Schubert, who will share her highs and lows — the excitement of having an IDW Chapmion Cow, and the low of losing a third of their herd with botulism. She will also offer insight into her obsession — a 7000 teddy bear and doll collection! A young ambassador from Orygen — the National Centre of Excellence in Youth Mental

Image: Casey Treloar

Health — will also discuss her experiences. The Bette Hall Power of Women in Dairy Excellence Award will also be presented. The Dairy News Australia team will also be at the field days to chat to exhibitors and visitors.

Image: Casey Treloar

More than 900 cows will be exhibited over four days at IDW.

DAIRY NEWS AUSTRALIA DECEMBER 2017

IDW PREVIEW – SEMINARS // 23

Seminars cover complete approach to business Tuesday, January 23 9.30 AM ImProving Herds — Presented by DataGene

ImProving Herds has been a cornerstone R&D Project funded by the Gardiner Dairy Foundation and Dairy Australia and led by Agriculture Victoria with collaborative support from DataGene, Holstein Australia and the National Herd Improvement Association of Australia. ImProving Herds set out to look at how farmers could improve their rates of genetic gain by demonstrating the value of genetics and herd improvement. The project aims to encourage farmers to make informed “evidence based” herd decisions to influence farm profitability and strengthening the dairy industry overall. Data-

Gene’s Project Liaison Manager, Erika Oakes and Genetic Evaluation Manager Michelle Axford will provide an insight into the research outcomes and how these can be implemented on farm.

10.45 AM What the MUC — Presented by MaxCare

This presentation will centre on assisting farmers to move towards highly efficient calf rearing systems. It will include practical tips which can be implemented the next day, along with some interesting case studies from Matthew Petersen’s time in the industry. Matthew has worked in the local dairy industry in Southern NSW for 6 years. He regularly consults to the local dairy region on all aspects of calf health. His focus has centred on peri-calving care, colostrum management, hygiene and infrastructure, calf behaviour, nutrition and staff training. Matthew is proud to work with many farms in the area who continue to exceed industry animal health benchmarks with efficient calf rearing systems.

MIDDAY Lift milk production and improve cow health without in-feed antibiotics — Presented by Provico

Clara Berger from LeSaffre Phileo Animal Care division is nutritionist based in the EU, where antibiotics (including in-feed ionophores) have

been removed from dairy diets due to regulatory constraints. LeSaffre is one of the world’s largest yeast manufacturers with a commitment to animal health and performance. LeSaffre has generated significant trial data to give dairy farmers confidence in using non-antibiotic feed ingredients to increase fibre digestion and milk production, avoid risk of rumen acidosis, reduce SCC and also mitigate the negative production effects of heat stress and feed changes. Clara’s talk offers practical and proven ways of improving rumen and cow health without in-feed antibiotics.

1.15 PM How choosing the correct cow bedding improves health and production — Presented by McLanahan Corporation

During this seminar we will highlight the link between cell count, herd health, stability, comfort and bedding materials on intensive and semi intensive dairy farms. We will discuss the emerging trends in bedding types and re-use practices, along with the new technologies that are available to help dairy farmers reduce risks and the costs associated with adequately housing their dairy cows. Andrew Lenehan is the Technical Sales Specialist at McLanahan Corporation and

has spent his whole life involved in the agricultural industry. He has been involved in Australia’s largest single site dairy farm providing advice and a system to remove the sand from manure and to assist in the drying process to help eliminate bacteria and pathogens.

2.30 PM Vaccination — Getting it right so that you don’t waste your money — Presented by Zoetis

Why, how and when can you get vaccination right? Vaccination will assist with disease prevention, improved herd health and better conception rates thus the potential to make decisions that increase profitability is vital. Andy Hancock, Veterinary Operations Manager (Livestock), will answer these questions and more about vaccinations. Andy graduated from Charles Sturt University in Wagga in 2010 and began his career working at The Vet Group, Timboon. At The Vet Group he was a mixed practice veterinarian with an emphasis on dairy cattle. Between 2013 and 2016, whilst embedded at The Vet Group and still working as a full time clinician, Andy completed the University of Melbourne Dairy Residency Program obtaining a Masters in Veterinary Studies/Masters of Veterinary Science and Membership of the ANZCVS in Veterinary Epidemiology.

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On farm benefits:  Environment & animal friendly  Pasture control  Effluent control  Management control  Reduced labour  Increased production Come have a chat at International Dairy Week or ring on the numbers below.

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Simon Rea - Phone: 0427 676343 David Colson - Phone: 0437 610720 Email: info@dairysheltersaustralia.com.au

DAIRY NEWS AUSTRALIA DECEMBER 2017

24 // IDW PREVIEW – SEMINARS Wednesday, January 24 9.30 AM A new era in sexed genetics and breakthrough in sexing technology — Presented by ABS SEXCEL Sexcel harnesses ABS’s best genetics and is produced through a novel, proprietary technology for sexing bovine semen. This innovative technology does not subject the cells to the high pressures, electric currents and shear forces used to produce the sexed semen historically available to farmers. The result is a superior sexed genetics product that helps customers maximize their profitability in line with their individual economic and herd goals. Data from ABS Global’s Real World Data® (RWD™) database demonstrates that Sexcel achieves a 90 percent relative conception rate when compared to conventional semen and a higher relative conception rate than other sexed semen used by dairy farmers. RWD contains real results from real customers and is sourced from more than 37 million cows from herds located in key dairy markets throughout the world.

10.45 AM What the MUC — Presented by MaxCare This presentation will centre on assisting farmers to move towards highly efficient calf rearing systems. It will include practical tips which can be

Thursday, January 25 implemented the next day, along with some interesting case studies from Matthew Petersen’s time in the industry. Matthew has worked in the local dairy industry in Southern NSW for 6 years. He regularly consults to the local dairy region on all aspects of calf health. His focus has centred on peri-calving care, colostrum management, hygiene and infrastructure, calf behaviour, nutrition and staff training. Matthew is proud to work with many farms in the area who continue to exceed industry animal health benchmarks with efficient calf rearing systems.

MIDDAY Why not to crossbreed — Presented by Holstein USA

Carl Kent, International Marketing Co-ordinator with Holstein USA, will show participants the tremendous genetic gains Holsteins have achieved and the data and reasons why farmers should continue to breed Holsteins without venturing into a crossbreeding program. This presentation was originally presented by Dr Tom Lawlor HAUSA Research Geneticist. Carl travels extensively promoting registered Holsteins and has also spent the last 12 years in the Genetics Division for Genex/CRI.

1.15 PM

9.30 PM

Achievable and profitable cow housing — making it work for Australian conditions — Presented by Daviesway With over 50 years’ experience in the dairy industry, Philip Schultz will share his insights on avoiding the pitfalls of cow housing here in Australia and how, through better planning, design and staged construction, a housing cow system can be an achievable and profitable goal for your business.

Improve Dairy Farming Efficiency and Productivity through LED technology — Presented by Sonaray This seminar focuses on how the latest LED technology can help farmers to reduce installation, operational and maintenance cost as well as improving the well-being of cattle for increase productivity. This seminar will examine the view point of an actual dairy farmer on how the LED has improved his operation; a lighting engineer will present how LED technology works, what are the pitfalls and essentials you must know before deciding and the electrician’s view on installation, lighting plans and simulations. A seminar for the farmers who want to know how the latest technology will help.

2.30 PM Bobby Calves — Industry Opportunity or Threat? — Presented by Murray Dairy

Explore how other countries are turning an industry threat into an opportunity by improving supply chain integrity. Join us and explore dairy and beef rearing systems contexted to consumer product and perceptions in different markets around the world. Peter Havrlant, Development Officer, Dairy at NSW DPI was awarded the Jack Green Churchill Fellowship in 2016. He will provide insights from his recent travel to the USA, UK and EU and work with NSW DPI.

10.45 PM Helping dairying into the future –through value adding your calves — Presented by Dairy Beef Alliance (DBA)

This presentation, hosted by DBA General Manager Peter Wilkinson, will focus on how dairy farmers can value add their existing operations by joining their Holstein Cows to Wagyu. DBA have been producing Holstein/ Wagyu Cross (F1) beef for over 15 years. They are the livestock production arm of meat company Security Foods Pty Ltd. Peter has been working for DBA since the inception of the business in 2001. He has an extensive

DAIRY NEWS AUSTRALIA DECEMBER 2017

IDW PREVIEW – JUDGES // 25

knowledge of the calf rearing and dairy beef industry, prior to becoming the manager of DBA he was the treasurer of the Australian Limousin Society. Peter encourages producers to ask a lot of questions in this presentation to find out what options DBA could offer their enterprise.

MIDDAY Maintaining Our Social Licence to Operate — Presented by Murray Dairy WHAT IS a social licence and why is it important for dairy farmers? While it is natural to focus within our own industry, the reality is that we operate within the wider Australian community and community and consumer perceptions matter. From health and nutrition to animal welfare and environmental sustainability, the political and regulatory environment we operate in — not to mention the market for our dairy products — are all affected by the public’s trust in dairy. But how important is this? Which issues really matter? And what can we actually do about it? Kira Goodall is Issues Management and Government Relations Manager at Dairy Australia. She will be discussing Dairy Australia’s work on understanding consumer perception in relation to social licence issues and how we can be proactive in addressing risks to our social licence to operate.

IDW Seminars will be held at the Tatura Tennis Clubrooms, Albert Street, Tatura ( just over the road from IDW). This information has been provided by the IDW committee.

Australia’s best paraded before international judges More than 900 cattle will be exhibited across seven National Shows at International Dairy Week, inspected by some of the most esteemed judges from around the world. Monday, January 22, 8 am ABS Australia/Ridley All Breeds National Youth Show

BRIAN BEHNKE, USA The youth of the dairy industry have the chance to showcase their skills in show ring etiquette, showmanship, preparation of cattle for showing, washing, clipping, feeding and herdsmanship. They will be judged by Brian Behnke from the USA. Brian was born and raised in Brooklyn, Wisconsin, USA on his family’s farm, Bur-Wall Holsteins, a prominent Registered Holstein farm in southern Wisconsin. Mr Behnke has over 25 years of dairy cattle industry experience including an in-depth knowledge of dairy cattle genetics, sales and farm management. He has undertaken dairy cattle sire procurement for Landmark Genetics and also served as herdsman on two prominent Registered Holstein farms, the 1200-head Roylane Registered Holstein herd in Warden, Washington and the 2400-head Wilcox Farms

Inc in Roy, Washington. While at Roylane, Mr Turner bred numerous bulls for AI including the popular Roylane Jordan. At Wilcox Farms he bred five All-American Nominated animals including the 1999 Unanimous All-American Sr. 3 Yr. Old, Wilcoxview BC Cami, and the prominent sire Wilcoxview Jasper. He has previously worked as a sire analyst with Semex and is now Business Manager for ABS St. Jacobs. He has judged shows throughout the US, as well as in the Netherlands, the Dominican Republic, Colombia, South Korea and Japan.

Monday, January 22, 3 pm IDW Sheri Martin Memorial Youth Showmanship Awards

MARK PATULLO, AUSTRALIA These awards will be judged by Victorian breeder Mark Patullo. Mr Patullo sold his farm at Katunga, where he farmed for 20 years, to work in the AI industry. He now works with World Wide Sires Aus-

tralia, where is he regional sales manager, herd evaluator and sales manager of the World Wide Sires Evolution Sale at IDW. He owns Walmar Ayrshires & Holsteins and has either owned or bred Ayrshire cows that have won Champions at Melbourne Royal, Sydney Royal, Adelaide Royal, Brisbane Royal and Shepparton National Shows. Mr Patullo started judging in his early twenties and has judged throughout Australia and New Zealand.

Tuesday, January 23, 8 am National Illawarra Show

PAUL HARRISON, ENGLAND Paul is a second generation dairy farmer in Northumberland milking 100 cows, 20 pedigree Dairy Shorthorns and 80 pedigree Holstein. Mr Harrison has been involved with showing and judging dairy cattle for over 40 years all through the UK. Both his herds have been successful in the show ring, winning the Holstein Friesian championship and Interbreed Champion at the Great Yorkshire Show in 1996; and the National All Breeds Calf Show Shorthorn Championship in 2012 and 2013 with two different home bred calves.

DAIRY NEWS AUSTRALIA DECEMBER 2017

26 // IDW PREVIEW – JUDGES

Tuesday, January 23, 8 am National Ayrshire Show

BLAIR WEEKS, CANADA Blair Weeks operates Weeksdale Holsteins along with his wife Jaime and his parents Elmer and Sandra. Weeksdale is a Master Breeder herd with a current classification of 26 EX — 35 VG & 18 GP. Blair has been an official judge with Holstein Canada for 14 years, judging numerous shows across Canada, UK and Argentina as well as being associate judge for the Ayrshire breed at the 2016 World Dairy Expo. In 2016 Weeksdale bred and owned the Honorable Mention Grand Champion Holstein at Expo, Weeksdale Judges Harmony EX 95. Mr Weeks has bred, owned or sold numerous All Canadians and All Americans and is an annual exhibitor at World Dairy Expo and the Royal Winter Fair.

Tuesday, January 23, 1.30 pm National Guernsey Show

CHRIS LANG, USA Chris Lang and his family own and operate Springhill Farms at Big Prairie in Ohio. Springhill has had All-American Nominations in four breeds, over 60 All-Ameri-

can and Junior All-American nominations in the Guernsey breed in the last eight years, including five National Junior Champions and has bred and owned the 2016 Intermediate Champion at World Dairy Expo, National Grand Champion and two times HM National Grand Champion. Mr Lang is a board member and type committee member of the American Guernsey Association, President of Purebred Publishing (which produces five Dairy Breed Magazines in the USA) and President of the Ohio Guernsey Breeders Association. His judging highlights include lead judge at the Ohio, Florida, Indiana, Maryland, Illinois and Minnesota State Fairs; Associate Judge at The World Dairy Expo and will be be lead judge National Guernsey Show in Louisville next year.

Tuesday, January 23, 1.30 pm National Brown Swiss Show

BRIAN KELROY, USA Brian Kelroy, based in Wisconsin, is the Dairy Programs Manager at East Central Select Sires covering southern Wisconsin. Prior to joining Select Sires, Brian worked as a Classifier for Holstein USA for seven years and trained classifiers internationally. He currently serves as the coach of University of Wisconsin-Madison dairy judging team. In 2014 the team won the National Intercollegiate Dairy Judging Contest at World Dairy Expo and

the team has finished second the last two years. Brian has also shown and bred animals that have won in the show ring, including Kelroy Rubens Vivian classified EX-95. Brian has judged district, state and national shows throughout the USA, as well as in Japan, Peru and Poland. He served as the Associate Judge for the International Red and White Holstein Show at World Dairy Expo last October.

Wednesday, January 24, 8 am National Jersey Show

PAT NICHOLSON, AUSTRALIA Pat Nicholson is part of a family operation at Girgarre in northern Victoria, running Jugiong Jerseys, milking 550 Jerseys on 220 ha of flood irrigated land. He is the current President of the Northern District Jersey Breeders club and has an extensive background in the development of the breed as a past classifier with Jersey Australia, past manager of National All Breeds Youth Camp and past Sale Manager ‘Northern Lights Sale’. He currently also represents Jersey Australia on the National All Breeds Ethics Committee. Mr Nicholson is a member of both the Jersey Australia and Holstein Australia Judging panels and has been Overjudge for both Jersey and Holstein Judging Schools over the years. Mr Nicholson has judged at Royal Shows throughout Australia, the World Conference Jersey Show at the New Zealand Dairy Event,

the Semex/Holstein Australia Victorian On-Farm Challenge and has been the overjudge at many junior judging and handler’s classes.

Thursday, January 25, 8 am National Holstein Show

KIICHI MATSUSHIMA, JAPAN Kiichi Matsushima, from Key Holsteins in Kumamoto, Japan, has bred 45 head of Excellent cows and is the first breeder to breed fifth generation bred and owned Excellent cows in Japan other than Hokkaido, the prefecture of the major dairy farming area in Japan. He has been exhibiting his cows not only in Kumamoto but at Japan’s National level with very good success. Mr Matsushima is President of the Kumamoto Dairy Co-op and Vice President of the Federation of Kumamoto Dairy Co-op. He is an Adviser to the National Holstein Improvement Council and Supervisor of the Holstein Cattle Association of Japan. He has judged extensively in Japan since he obtained the licence for the accredited judge from the Holstein Improvement Council in 1994 including: The Hokkaido Winter Fair, Shikoku Regional Show, Chugoku Regional B&W Show, All Kyushu Regional B&W Show, Iwate Prefectural B&W Show, Spring Show in Kita-Karuizawa, Chiba Nagai B&W Show, Hyogo Prefectural Show, Hokkaido Bekkai-cho Show, Kanto Regional Show and many more

COMMITTED TO THE FUTURE OF DAIRY Bega Cheese’s vision is to be an Australian dairy industry icon, valuing our heritage, people, customers and community. Embracing challenge. Driving change, building for the future.

AUSTRALIAN OWNED AND OPERATED Come see us at site 14 at IDW to discuss supplying Tatura Milk & Bega Cheese today or call anytime on 5824 6203.

International

e invited to Australia’s ...

Dairy Week International Dairy Week You are invited to Australia’s ...

21 to 25 January 2018, Tatura Park, Tatura, Victoria

21 TO 25 JANUARY 2018

A good place to do business and a goodPark, place to socialise. Tatura Tatura VIC

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Australia’s

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GRAND CHAMPION

25 Jan – from 4.30 pm

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National Dairy Cattle Shows

until late No-

21 to 25 January

o attract visi-

Field Days Display 22 to 25 January

Seminars 22 to 25 January

Cattle Sales Proudly Supported By

Dailybe admission to IDW is $10.00 for adults; children are free. Wanting to involved?

For more information please& visit our website: Field Day Sites, Sponsorship Promotional Packages, Seminar & Workshop

www.internationaldairyweek.com.au

opportunities are now available for dairy businesses wishing to exhibit at IDW 2018.

a u s t r a l i a

Contact Robyn Barber on 0418 656 082 or info@internationaldairyweek.com.au

DAIRY NEWS AUSTRALIA DECEMBER 2017

28 // MACHINERY & PRODUCTS

Solar panels power milking robots on NSW farm WAYNE AND Paul Clarke recently installed

solar panels on their northern NSW dairy farm, Loongana Farm, at Dobie’s Bight, via Casino. The panels power four DeLaval milking robots that make up the farm’s Voluntary Milking System (VMS). The robots milk 300 cows year round, from voluntary grazing traffic over about 180 hectares of pasture. Last week the Clarkes opened the farm gates to share their results with visiting farmers from around the region. “We’ve saved around 25 — 30 per cent of our electricity costs from installing a 35 kW system,” Wayne said. “We’ve run it for two quarters now and we’re really happy with what it’s meant for our bottom line.” Powering its robotic system with solar is a first for DeLaval Australia. “The quality of the power that is provided from the panels is fantastic for the VMS. It’s very reliable, no brown outs or spikes, it’s an exceptionally stable power source,” DeLaval’s National Robotic Milking Manager, David Widdicombe, said. That stability is critical as each robot milks

up to 75 cows each around the clock at roughly 150 — 160 milkings per robot per day. Mr Widdicombe said the farm is now one of its most profitable robotics farms in Australia, thanks also to the Clarkes’ careful use of the DelPro management system that captures and interprets data from the robots.

“We’ve saved around 25 — 30 per cent of our electricity costs from installing a 35 kW system.” “The Clarkes have really put a laser focus on farm management — not only with the solar panels, but also feed efficiencies and their breeding program — they are really extracting every data point from the VMS via DelPro and using it to their advantage,” he explained. Paul Clarke agrees, saying DelPro data has helped him discover that cows consuming more pasture move through the robots more quickly yet produce similar quantities of milk to cows consuming more expensive concentrates.

“We’re starting to use that information in our breeding program to select cows that graze harder, so we can spend less on grain,” he said. His biggest concern before milking with robots was how the herd would cope with the extreme weather events common in northern NSW. “My gut feeling now is that it’s actually better milking through the hot weather with the robots because the cows get to choose where they want to be at a particular time of the day. “When it’s really hot they head for the shade via the robot yard in the dairy,” he said. Mr Widdicombe said the farm is proof that voluntary pasture grazing traffic does work in the heat experienced during Australia’s hot summers. The farm is currently producing around 1.8 million litres of milk annually from fewer cows than it took to produce the same amount from its previous Herringbone system. The long term goal is to get to 2.1 million litres per year without increasing herd size. The Loongana open day was held in conjunction with the Queensland University of Technologies Nitrogen research program.

Wayne and Paul Clarke

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MACHINERY & PRODUCTS // 29

Remote-controlled slope mower puts safety first SLOPES, HILLS and confined areas can pose a challenge when it comes to land clearing but a newly released remote-controlled mower from Inlon is now available. Brian Baschin, a commercial land clearer in the Goulburn Valley, is contracted to mow around dam walls and reservoirs, which he has previously done with a brush-cutter. “A ride-on or tractor-powered reach mower would have given me some extra speed but the roll-over risk is too high,” he said. Mr Baschin arranged a demo of Inlon’s remotecontrolled ‘Spider’ slope mower. “The remote control is the obvious safety feature because it eliminates the risk of being hurt in a roll-over incident. “Another safety improvement is the way the

Spider mulches material and contains it within a cutting chamber so you don’t have stones or debris flicking out. “This feature also gives a cleaner cut overall and doesn’t leave unsightly windrows.” Mr Baschin said it cut his work time in half. “I can get through half a dam wall in a day on one tank of fuel, which is very economical too. “It’s easy to transport around on a small trailer, so that saves time as well.” The Civiline Spider is capable of cutting slopes

up to 40 degrees utilising 4 wheel drive lugged tyres and up to 55 degree slopes with its optional winch system. It has previously won the CIVENEX Most Innovative Product award and a German Red Dot design award. Inlon Product Manager, Glenn Dwyer, said most of the Spider’s components are made of alloys. Visit www.spider-mower.com.au or call 1800 772 407.

Q-companion provides new level of efficiency LOADER SPECIALIST Quicke Australia has released the Q-companion with digital screen and smart sensor technology to give operators improved accuracy and easier, safer control of loader operations. Q-companion allows weighing during the loader lift cycle, displaying the information on a screen in the cab. It also displays current and remaining lifting capacity in the same view. Angle sensors on the top of the loader arm and at the tool carrier end allow the system to display the height and angle of the implement. Implements can be calibrated to level with ease. Calibration settings for up to 10 implements can be stored making the next work session even more efficient. Quicke Australia’s Adam Durston said the company has spent thousands of hours developing and testing the new product, particularly for agricultural applications such as bucket work, bale handling, pallets and big bag lifting. “Like other ground-breaking innovations from Quicke Australia, the Q-companion is all about increasing productivity by delivering more efficiencies,” he said. “It’s a smart product built to very high quality standards, and it’s something farmers have been waiting for. “When it comes to safety, productivity and control, the Q-companion is a big step forward. “It’s a unique system for easily weighing your load while lifting and monitoring the position of your implement and load. “You can also set up maintenance reminders to help prolong the life of your loader and minimise downtime,” he said. Q-companion can be fitted to new Q Series loaders. For more information, visit the website www. quicke.com.au or call your local Quicke dealer.

MULTI 4 BALE FEEDER BE EFFICIENT WITH YOUR YOUR FEEDING SYSTEM IF YOU ARE A LARGE HERD HERD OWNER OR DO MULTIPLE TRIPS FEEDING YOUR HERD, THEN THE NEW MCINTOSH MULTI 4 BALE FEEDER IS THE RIGHT MACHINE FOR YOU

The new McIntosh Multi bale feeder has been carefully designed to handle all types of silage and hay round bales, without fuss. It’s unique self loading system, four bale capacity and clever features, It’s It makes this Multi Bale Feeder, simple and easy to operate. With it it’s rugged construction, dual side feeding capabilities it’s and high capacity design, the Multi 4 bale feeder will save you time, fuel and operating costs.

WINNER of the TMA Best non�powered machine of the year at Farm World 2016 and the Weekly Times Best Imported Machine at Elmore 2016 We feel the McIntosh Multi 4 bale Feeder will also impress you!

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DAIRY NEWS AUSTRALIA DECEMBER 2017

30 // MACHINERY & PRODUCTS

Effective options to manage downer cows DAIRY FARMERS are integrating Steinfort

AgVet’s Pelvic Lift and RiserTank devices to transport and rehabilitate downer cows. The Pelvic Lift is designed to lift and transport cows over both short and long distances. The design enables 50 per cent of the lifting weight to be taken off the hips, when compared to traditional hip clamps, with the other 50 per cent being taken by the pelvis, via the pelvic seat being positioned under the pelvis, well above the udder. Designer and vet, John Steinfort, said the addition of a webbing strap evenly lifts the brisket. “As the cow is lifted horizontally, the animal’s back is straight and aligned, unlike using hip clamps where the hind legs are tilted down, placing further strain on the lower back,” Dr Steinfort said. “Once a cow is lifted she can be stood for longer periods without the traditional damaging effects on the hip muscles. “Hopefully the cow can walk away or if not, be transported and placed in the RiserTank to further assist the recovery process.” Aided by the buoyancy of water, Dr Steinfort

said the RiserTank provides a confined space in wa-ter to enable the cow to stand and feed for much longer than normal. “Up to half of the cow’s body weight is reduced when standing in water. Generally a cow stands in warm water for up to 14 hours. “The water is then drained out and cow is rested overnight within the RiserTank. This process stops the cow to attempt to rise when down within the Risertank. “Attempting to rise unsuccessfully from a sitting position contributes to significant further damage, where they can quickly become crawlers and never stand again.” The cows and heifers are continually left in the RiserTank for the duration of their recovery. When they continue to stand for several hours after water release is the sign they are ready to walk out for final recovery stage in nearby paddock, prior to go back with the herd. Dr Steinfort said research in using the RiserTank has shown an 80 per cent recovery for calving paralysis and downer cows cases, as long as the cows and heifers are lifted in the RiserTank quickly after recognising they are a downer cow.

Use of Steinfort AgVet’s Pelvic Lift and RiserTank devices over the past five years have significantly increased downer cow recovery rates.

“Average duration of recovery time in the RiserTank is 1 to 3 days, with more severe cases having longer recovery times.” According to Xavier Parkinson who milks 900 cows at Koroit in Western Victoria, the RiserTank has doubled their downer cow recovery rate and has helped them in developing a standard procedure to better manage downer cows. The use of the RiserTank has significantly saved on labour with Xavier indicating they

cannot de-vote the time to conventionally lift cows regularly. Sharefarmer Andrew Gaul, who milks 360 cows at Bona Vista in Western Gippsland, said with a downer cow recovery rate of about 85 per cent & cows being valued at $2000 each, the RiserTank has been a good investment. Mr Gaul said the key to achieving the best results is to get cows into the RiserTank as soon as possible.

POWER UP YOUR PASTURES WITH A JOHN SHEARER DRILL

Increase your pastures’ feed density with a John Shearer drill and get the most out of the land you already have. Shearer seed drills are designed and built in Australia for our unique conditions. With variety of sizes and ground-tool configurations available, we have models to suit every region. Every machine is engineered for a long service life and top reliability with parts and support available nation wide.

Call 08 8268 9555 or visit johnshearer.com.au for more info or to find your local dealer.

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