Dairy News Australia - April 2018

PRICE EXTENSION: Bega extends season price. PAGE 3 BACK IN BUSINESS

More changes in WA. PAGE 8

BEST IN TASMANIA Remlap Farms named Business of the Year. PAGE 25

APRIL, 2018 ISSUE 90 // www.dairynewsaustralia.com.au

THE RIGHT STUFF FI 0 N % A N CE

Farmers praise work of volunteers. Page 4

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DAIRY NEWS AUSTRALIA APRIL 2018

NEWS // 3

Lending a hand INSPIRED BY call-outs from the Lions’ Need

for Feed program and the Burrumbuttock Hay Runners, Wunghnu farmer Don Sofra and Tatura farmer Nico Romano (pictured) organised 350 rolls of hay and silage from the Goulburn Valley to help farmers affected by fire in southwest Victoria.

For many in the Goulburn Valley, it’s a chance to pay back the generosity they experienced in 2014, when fire swept through the Wunghnu, Numurkah and Shepparton areas, destroying farmland and livestock.

Following those fires, dozens of truckloads of hay and silage arrived to help affected farmers.

Mr Sofra said it was good to repay the favour.

DairySA Central Conference. PG.10

Effluent powers dairy. PG.27

GRUNT: Comfort not speed. PG.31

NEWS ....................................................3–20 OPINION ..............................................21-22 MARKETS ......................................... 23-24 MANAGEMENT ............................. 25–28 ANIMAL HEALTH .........................29–30 MACHINERY & PRODUCTS ...................................... 31–34

Bega extends price to September BEGA CHEESE will continue its 2017–18 farmgate milk price of $5.63/kg of milk solids through to September.

The company took the unusual tact, saying it wanted to instil some confidence among its suppliers heading into spring and give them some certainty on returns.

The company will announce milk payments for October onwards before September.

Bega Cheese was also offering a once-off 50c/kg of milk solids payment if suppliers agree to a three-year milk supply agreement, and 25c/kg of milk solids for a two-year arrangement.

The move has created mixed feelings amongst suppliers with some surprised at an extension of prices, rather than a new season prices as traditionally occurs.

Others were pleased to be given some certainty through to September.

Murray Goulburn supplier, Bernhard Lubitz, said the extension of the current season price makes it more difficult for farm-

ers to compare prices.

Bernhard questioned whether the extension was in the best interest of suppliers.

“Again this makes it harder to compare milk processors’ milk pricing at the start of the new season and what is truly the price on offer for the whole year,” he said.

“We all know changing supply at any point during the year except at the start of the new season comes at great cost to farmers.”

Mr Lubhitz said sign on payments destroy the ability of farmers to compare the milk payment systems and pricing of the various processors and understand the real price.

“This sign on payment is the biggest step backwards since the flat milk incentives to the industry’s long-term viability.

“If you want farmers milk along with their loyalty just pay the best milk price you can and the same price no matter how big or small or what there supply curve is.

“The only difference on milk price between farmers should be milk quality and that’s all

that should affect it.”

The voluntary milk code of conduct has been championed by industry in part to improve transparency and help farmers compare “apples with apples”.

ACCC Chair Rod Simms renewed his calls for a mandatory dairy code of conduct for further protection of farmers.

He said processors still have mechanisms in place that make it very hard for farmers to switch processors and this had to change.

Mr Simms, talking at the recent Global Food Forum in Sydney, confirmed there are “a number of buyers” interested in Murray Goulburn’s Koroit milk plant.

“The good news is, there’s a lot of people wanting to buy it and that’s a positive for the dairy sector, and particularly the export sector”.

Murray Goulburn has not set a time on when it will announce its opening milk price.

Fonterra Australia has said it will announce its opening milk price in May.

DAIRY NEWS AUSTRALIA APRIL 2018

4 // NEWS

Fire’s out, now for milking BOOKAAR DAIRY farmer Andrew Duyn-

hoven was battling fires on the Saturday night as Captain of the Bookaar CFA team but his mind was already racing ahead on the Sunday morning.

He and another member of his team, Tony Ryan, were organising working generators for farmers who lost power in time for Sunday milking.

Although they received an offer of generators from the army, they could not get clarification of what they were, and therefore whether they would have been of any use.

Tony Ryan is a member of the Bookaar CFA team and an electrician. He contacted Chris Worner from Southern Generators, who put 8 on the back of a truck Sunday morning. He also located electricians to fit them and inspectors to ensure they were isolated from the grid and ticked off.

Andrew then sent texts through his network and helped five farms in need of power.

“We got the five online and once hooked up, the power came back at some of the places, but they were needed at others.

“The Powercorp boys did a massive effort.

I’d hate to think how many poles they put up and the wires connected.”

Other farmers with their own generators were milking and then taking the generator to a neighbour’s place.

People leapt to help the morning after the night before¦—¦someone would put out a call and the responses from others were immediate.

This community spirit could be symbolised by the Australian Lamb Company in Colac who put out a call for food and received a truck full to distribute within hours.

A support centre was set up at Grass Growers in Terang where the UDV and WestVic Dairy helped co-ordinate fodder donations organised

by Burrumbuttock Hay Runners, Lions’ Need for Feed and other volunteers that put out calls for hay.

Helen Chapman and Anne-Marie Burn from south west Health Care, and other community members would visit affected farmers to see what they required and ask how they were.

The work of Helen and Anne-Marie has been appreciated through times of poor prices but their work immediately after the fires was praised.

Members of the Bookaar CFA (bottom row) Andrew Duynhoven, Laurie Walker, Tony Ryan, Michael Nixon, Andrew Powling, (Above) Jack Henzen, Jason Willis.

Volunteers shocked by fire’s ferocity “I’VE NEVER seen fire behaviour like that at night before.”

Colac dairy farmer Mark Billing, who is also a Group Officer at the CFA, reflected on the St Patrick’s Day fires that swept quickly through south west Victoria.

Like other farmers, he was conscious of the strengthening winds that Saturday night, and was settling down with his family for the night when the calls came in.

The strong winds meant the fires escalated quickly, and many in the community that helped fight left their farms and houses unsure of whether they would be safe.

“That surge response from volunteers was phenomenal. It was brilliant,” Mr Billing said.

“The fire behaviour was extreme, it was running so fast. Along with the fire, we had trees down, power lines down. I’ve seen conditions

like that before but not at night.

“To get through that, and not lose anyone, it was a great success.”

Mr Billing said they knew they weren’t going to be able to stop the fire, particularly with no air support at night, so the CFA immediately prioritised asset protection.

Bookaar CFA Captain Andrew Duynhoven said the fire escalated so quickly that the radio went down as the system was overloaded.

They banded together with other trucks and drove to properties to assess risk in a bid to protect as many as possible.

“Embers were being thrown 300–400 metres so you had to keep on top because there would have been no hope of containing it otherwise.”

Mr Billing said the winds of more than 100¦km/h posed a large threat to those on the frontline.

“That wind was ferocious. I was in the command vehicle and had to turn the Ranger around so I could open the door. Other people on the ground reported opening doors and the wind bending them back it was so strong.

During the night the wind changed to a southwesterly, which potentially put the towns of Cobden, Terang and Camperdown under threat, but also brought with it some rain. Further rain followed which helped ease the risk.

“A lot of people here had sleepless nights, a lot were waiting until 2–3¦am to know if their houses and towns would be safe. Most on the ground were farmers themselves.”

The fierceness eased as the sun rose but there was still much work to do on the Sunday.

Mr Billing said it particularly nice to come home on the Monday night and feed his cows.

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DAIRY NEWS AUSTRALIA APRIL 2018

NEWS // 5

Farmers urged to ask for help STEPHEN COOKE

COMPLETE RECOVERY from the St Patrick’s

Day bushfires could take years but affected farmers have been encouraged to ask for a hand.

The display of support shown immediately after the fire in the form of donated fodder, food and people power to help clean up was overwhelming.

The UDV, WestVic Dairy, Blaze Aid, and Lions Group formed a control centre at Grass Growers in Terang, which also acted as a centre for donated fodder.

What goes untold is the crucial element of volunteers from the community who check on their affected neighbours and encourage them to ask for help.

“Some will say, ‘we’re alright, we don’t need help, there are plenty worse off than us, our house is still standing’, but they are down to

their last bale of hay,” says local farmer Andrew Duynhoven.

When reports of donated hay come in, neighbours like Mr Duynhoven have directed them to those who won’t ask.

An estimated 8000ha of pasture has been burnt and BlazeAid estimated about 3000km of fencing was destroyed with a cost of replace in materials of $1 million.

Agriculture Victoria said the fire claimed 24 houses, 80 sheds and 8000 tonnes of fodder and grain.

BlazeAid has been co-ordinating volunteers to help replace fencing on farms. This is on top of many other people from within the community and throughout the state who have left their own farms to provide labour to those who need it.

Thousands of bales of hay have made it to the district, and the UDV and VFF are also asking for financial donations.

WestVic Dairy Industry Leadership Group

said its members would also work with Blaze Aid in coming months to reinstate hundreds of kilometres of destroyed fencing.

UDV president Adam Jenkins said farmers had taken a massive hit.

“You lose one cow that is a big financial impact. So to lose half your herd or a full herd, massive impact and multiple farms are really finding a big impact,” Mr Jenkins said.

“It is a huge financial impact on the livestock and obviously their farms and their mental health and wellbeing.

“Farmers dust themselves off, they go into resilient mode and make sure their cows and livestock are looked after well and truly.”

Anyone with good quality fodder to donate can call VFF on 1300¦882¦833 to register.

The VFF has an agreement with the Victorian Government to facilitate the fodder relief.

This includes reimbursement of freight costs for transport of donated fodder.

PRIME MINISTER THANKS VOLUNTEERS Prime Minister Malcolm Turnbull travelled to Cobden a week after the fires to inspect the area and thank fire fighters and volunteers.

“Nature throws her worst at us time and time again — fires, floods and it brings out the solidarity, the love the community spirit, the resilience of Australians again

and again,” Mr Turnbull said.

“People looked after themselves and looked after their neighbours, knocked on doors, made sure that people were home, that they got out and confirmed that houses they thought were empty, were empty.”

(AAP Image/James Ross)

The Rural Financial Counselling Service is available for immediate assistance and can be contacted on 1300¦735¦578 (24 hour hotline).

WestVic Dairy and the UDV are coordinating support needed for power, water, fodder, agistment and fencing.

Those seeking a helping hand can contact WestVic Dairy on 5557¦1000 or admin@westvicdairy.com.au Agriculture Victoria Animal Welfare assessment teams have been visiting fire affected farms.

For urgent information or assistance with stock losses and injuries, contact AgVic on 5336¦6721.

State and Federal governments have joined forces to offer personal hardship payments of up to $1890 a household, and emergency re-establishment assistance of up to $40¦700 for clean-up, emergency accommodation, repairs, rebuilding (a principal place of residence), and replacing some damaged contents.

WHERE TO GET ASSISTANCE Fodder requests Contact VFF on 1300 882 833 Stock Issues or Stock Loss Contact Agriculture Victoria on (03) 5336 6721 Water requests Contact WestVic Dairy on (03) 5557 1000 Fencing help or materials Contact WestVic Dairy on (03) 5557 1000 Mental Health Confidential counselling assistance contact Dairy Community Support Worker on 0447 321 599 or (03) 55 644 269.

Labour Contact BlazeAid at blazeaid.cobden@gmail.com or 0418 745 994 Other requirements (generators, equipment etc) Contact WestVic Dairy on (03) 5557 1000.

Financial donations can be made to VFF through their website at www.vff.org.au/support

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DAIRY NEWS AUSTRALIA APRIL 2018

6 // NEWS

Goodwill floods in after the fires RICK BAYNE

MADDENS BRIDGE Road at Glenfyne near

Cobden in south-west Victoria is usually a quiet, picturesque dirt track surrounded by native trees.

However, a week after fire rushed through the area; the road is abuzz with activity around Tony Negrello’s farm.

Forest fire management vehicles rush past, electrical contractors and tree removers make sure the farm is safe.

Two trucks laden with hay¦—¦one previously purchased by the Negrellos, the other donated¦—¦are being unloaded and another truck with fencing material has just arrived.

Visitors are there checking on the recovery process, doing what country people do in times of need.

Son Dean sums it up as the support rolls in: “We wouldn’t have survived without all this.”

The Negrellos lost more than 50 percent of their pastures, about 14¦km of fencing and eight cows.

The fire burnt to within a stone’s throw of their dairy, and their house isn’t far behind that.

But Tony realises they’re lucky and lost less than many others in the St Patrick’s Day fires.

“There’s a lot of work to clean up the old fences and put up the new fences but there are lot of people with rubble where their houses used to be,” he said.

“We lost 450–500 acres. It went through all the gullies and around the back of the dairy. We lost plantations around the hills and a bit of hay out the back; there’s only dirt there now but we’ll be all right.”

Tony Negrello.

Tony stayed at the farm till about 10.30¦pm on Saturday, March 17 before deciding to evacuate.

“The whole skyline was aglow,” he said. “If we got trapped here it would be too late. You couldn’t get through on this road. The fire was going that fast we could have easily been pinned in.”

Tony milks about 400 cows and was without power until Monday evening. He borrowed a generator from the Terang Racing Club on Sunday to keep milking in the interim.

“We were back to normal pretty quickly; there were people without power for a lot longer than us.”

The donated hay came from a farm near Warragul that was burnt about 10 years ago. Those farmers are now repaying the generosity they received during their difficult times.

Truck driver Heath Glen and Dean Negrello with the truck load of donated hay.

“If we didn’t have this I don’t know where we’d be,” Tony said.

Insurance should cover fence replacement but Tony isn’t sure how long it will take to get them back to normal.

Tony has been on the farm for 45 years. The Ash Wednesday fires of 1983 came close, stopping about 3¦km from his property.

“This is the first time it’s happened here,” he said. Tony and his family evacuated to the Glenfyne hall but fearing they could be trapped in the

heavily forested area decided to relocate again to Cobden.

“I’ve got a crook leg so I can’t walk fast,” he added.

Tony said farmers should take up the offers of support, such as donated hay.

“They do need hay,” he said. “If there’s not an autumn break they will be in trouble.

“We’ll get the fences in and if we get a good autumn break we should be all right, but you never know what’s around the corner.”

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Tony said farmers should take up the offers of support, such as donated hay. He accepted a load donated from a farm near Warragul burnt out ten years ago.

The fire burnt out up to 200ha of Tony’s farm.

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DAIRY NEWS AUSTRALIA APRIL 2018

8 // NEWS - WA

Hanks back in business RICK BAYNE

AFTER MORE than a year in dairy farming wil-

derness, Dale Hanks is back doing what he does best, but he’s still unsure about where the industry is heading in Western Australia.

Mr Hanks, from Harvey, was forced to stop milking in October 2016 when he and two fellow farmers didn’t have their contracts renewed by Brownes.

“The three of us were treated pretty harshly. We were only small players but three guys were made to wear the full cost of oversupply in the state.”

– Dale Hanks Today that decision still rankles with him, as does what he describes as the lack of support by politicians and lack of communication by the company.

“The three of us were treated pretty harshly,” he said. “We were only small players but three guys were made to wear the full cost of oversupply in the state.

“There was no common sense behind it.”

A new contract offer last November by Harvey Fresh came just as he was starting to lose hope.

This January he returned to full scale milking and he’s now building up the herd and enjoying his second chance.

There were times when Mr Hanks didn’t think it would happen.

“Before October last year I didn’t think we were going to be milking cows again,” he said.

“I’m extremely grateful for Harvey Fresh for taking us on and giving me an opportunity and I hope that relationship can grow.

“You need to value farmers in the supply chain and they’re doing the right thing by us.”

During his enforced time out, Mr Hanks managed to keep his farm and dairy operating but was forced to sell most of his cows which had been bred as a closed herd over several decades.

His connection to Harvey Fresh came through Malcolm Fechney, the new WA supply manager for Harvey Fresh owner, Parmalat.

After his contract was not renewed by Brownes in October 2016, Mr Hanks had to move most of his cows.

“Initially in October all the fresh spring calved cows we put into other herds. All autumn cows that were in calf we dried off and we continued to milk the highest cell count cows, and empty cows, and fed the spring born calves through to Christmas.”

He shut down the dairy at Christmas 2016, sold most of the autumn calving cows in early 2017 and was left with 40–50 crossbred cows and old cows nobody would buy.

“We calved them down and reared a group of calves in March-June period. We bought a heap of bull calves and reared them and dried them off by the end of June.”

The older cows and crossbreds ended up being culled.

In spring 2017 he mated a group of crossbred heifers, “hoping we’d get going again, though we didn’t have a contact”.

“We started calving them down in September and I started milking a group of 60-odd heifers once a day and reared a group of calves AugustNovember, using the milk for the calves.”

Along the way there were discussions with Harvey Fresh and the contract arrived in November for a start in January.

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Harvey farmer Dale Hanks is now supplying Harvey Fresh after Brownes withdrew his contract in October 2016.

In October 2016 Dale had been in a quandary.

“We bought the calves we needed to generate cash flow,” he said.

“We had to do something. The problem is it cost us $100¦000 to keep the farm whether we produced nothing or a pile of milk. In WA there’s a fair option of buying bull calves to rear and the market is reasonable.”

Dale might be a bit unsure about the industry’s future¦—¦with ongoing concerns about contracts and supply¦—¦and a bit jaded by what he’s been through, but he hadn’t wanted to leave the industry; it’s what he knows and is good at.

“People ask now are you happy doing it? It was nice having a break and I’d be happy not to be milking cows but it’s a cash flow and it’s the business we know and we have the infrastructure to deal with it.

“We were good operators and we were highly profitable. We’ve got all the infrastructure. Our dairy is only 19 years old and in good nick ready to go. We’ve got a centre pivot on the place so we needed to do something. I didn’t want to go elsewhere.”

With the new contract he started building a new herd.

“The worse thing is we sold all our heifers because we were offered good money for export orders to Japan," he said. “We have very few of our own cattle left.”

He bought most of a herd from a retiring Harvey Fresh supplier and some new heifers.

At this stage he’s milking about 200 cows, will soon go to 220 and aims to peak at 280–300 by next spring, well below the previous 350–360 mostly Holsteins.

Getting back in the swing of full-time farming wasn’t onerous.

“We just had to add cows and find a staff

During his enforced time out, Mr Hanks managed to keep his farm and dairy operating .

member, not too much,” he said. “Because we were rearing a few calves, the dairy had been kept in order and kept going.”

Production has been a challenge with a herd dominated by heifers but Dale is on target to reach his expectations.

“Over two thirds of the herd are heifers so there’s an upside to when they calve next year there will be more production.”

DAIRY NEWS AUSTRALIA APRIL 2018

NEWS // 9

Prices must reflect milk solids: Jersey Australia JERSEY AUSTRALIA will push for a shake-up of the country’s milk pricing system to make it simpler and fairer with more emphasis on the value of milk solids.

Jersey Australia believes the current payment system is outdated, complex, confusing and doesn’t accurately reflect the true component value of milk solids.

It has called for the system to better recognise the efficiencies and value generated through processing high density milk compared to low density milk.

Board member Jane Sykes said two reports commissioned by Jersey Australia and funded by Farming Together had shown pricing systems don’t necessarily represent the current market value of milk components, to the disadvantage of Jersey and other higher component farmers.

The reports found that higher component milk is 8.5c/kg Milk Solids or 0.6c/litre of milk cheaper

COOMBOONA HOLDINGS IN HANDS OF RECEIVERS Harvey Norman’s troubled joint-venture Victorian dairy investment, Coomboona Holdings, has been placed in receivership.

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They found current milk price systems in Australia are complex and do not show transparency between the market value for milk products and the price paid to farmers for their components.

“It is reasonable to conclude that Jersey profile milk is relatively cheaper to collect and more efficient to process in relation to yields and handling costs than lower milk solids density milk,” the reports state. “There is value in high density milk which is not being recognised in the current payment systems, to the disadvantage of Jersey farmers.”

Ms Sykes said Australia’s payment system dates back to the 1980s. “What other industry hasn’t changed since the 80s? Back then fat was seen as the least desirable product and was priced accordingly. Over the past few years there have been major shifts in the milk market but our prices don’t reflect that.

says the directors of Coomboona appointed Ferrier Hodgson as administrators of the dairy company late last month.

Soon after the appointment of the administrators, lawyers for the National Australia Bank appointed McGrath Nicol as receivers and managers of Coomboona Holdings.

It comes after Harvey Norman’s profit took a $20.7 million impairment hit from

“The fairest and simplest thing to do is make it a single price for milk solids, rather than individual ratios for fat and protein.”

Jersey Australia is advocating simpler milk payments with one price for milk solids, butterfat and protein and an appropriate volume charge that penalises lower solids milk.

Jersey Australia says it hopes to “start the conversation” about simpler and fairer milk prices.

“We won’t be able to change it on our own; we need wider industry support and pressure at the farmer level,” Ms Sykes said.

“We understand not everyone is going to agree with the findings but we need to get the conversation started.”

Jersey Australia commissioned two reports looking at the value of components in milk pricing mechanisms used by the major processors.

The first report in October 2017 used farm data from Jersey and Holstein herds and compared

the Coomboona joint-venture in its halfyear results in February, weighing on the group’s bottom line.

Harvey Norman chairman Gerry Harvey is a director of Coomboona.

The Coomboona joint-venture, in which Harvey Norman holds a 49.9 per cent stake, started trading in September 2015 and incurred mounting trading losses.

Harvey Norman said in its half-year

actual prices received.

The subsequent March 2018 report found milk pricing mechanisms are unnecessarily complicated and do not always send appropriate market signals.

“Consumers are not buying components but finished products, such as cheese, that contain both fat and protein and therefore it is not relevant apply a value to either component,” it states.

Jersey Australia president Chris MacKenzie said the review was needed because Jersey and other high component herds were being unfairly disadvantaged.

“We believe this issue needs to be taken to the industry as a whole because payments are unbalanced and nothing has been done about it since competition payment came in,” Mr MacKenzie said.

“There is growing demand for butter but nothing has been done to reflect that in prices for farmers.”

results in February that a dispute had arisen between Harvey Norman and the other owner of the Coomboona jointventure, Eternal Sound, on a number of matters, including the future direction of Coomboona.

Harvey Norman had also demanded that the Coomboona joint-venture repay $18.5 million in debt to Harvey Norman• Source: AAP

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DAIRY NEWS AUSTRALIA APRIL 2018

10 // DAIRYSA CENTRAL CONFERENCE

Dairy farmer Mike Boerema and nutritionist Laura Tweddle.

Vaughn Johnston and Jason Steinbourne.

Perrin Hicks, Adrian Dauk and Michael Krichauff.

Guest Speaker Judy Wilkinson, dairy farmer Tim Prance and DairySA’s Rick Hinge.

DairySA Board member Greg Gilbert, with Reece and Chelsea Donhardt.

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DAIRY NEWS AUSTRALIA APRIL 2018

DAIRYSA CENTRAL CONFERENCE // 11

No change without proper communication EFFECTIVE COMMUNICATION is essential for instigating change in business, according to Farm Family Facilitator Judy Wilkinson.

Ms Wilkinson¦—¦a consultant specialising in Sustaining Families in Business¦—¦has over fifteen years of experience working with agriculture groups and businesses in communication, succession planning and family business meetings and shared some valuable messages at the recent DairySA Central Conference in Hahndorf.

She has seen the success that healthy relationships can have on management and succession.

“Communication has a major impact in our lives¦—¦with family, business and community¦—¦and there are many elements required to create effective conversations,” she said.

“These include being clear and honest about what you think and feel, being patient and trying not to get angry, avoiding broad negative statements, and understanding that others opinions and feelings are valuable.”

Delegates were challenged to identify the breakdown of communication, with many surprised that it comprises 7 per cent verbal, 38 per cent vocal and 55 per cent visual.

Ms Wilkinson’s presentation centred around facilitating family business meetings and encour-

aged delegates to recognise that: Change activates emotions ■ Effective change often requires help with people’s expectations, bringing clarity to the table, and using appropriate communication or language style ■ Listening is a key component of negotiation and mediation ■ It’s important to value ALL participants ■ There is a communication hierarchy which builds increasing trust ■

All participants should be encouraged to share their feelings She highlighted that conflict is normal, resolution is a skill, disconnection needs to be managed, strategic meetings are crucial to outcomes and that it is important to “Get it Right”.

“It’s important to set clear boundaries between business and family which may include simple approaches such as not discussing farm matters at the dinner table, allocating time ‘off-farm’ and recognising the difference between business and family decisions¦—¦as they can all impact on our connectedness and happiness.”

■

JUST REMEMBER THREE SIMPLE RULES Delegates at the recent DairySA Central Conference in Hahndorf were given three simple rules to remember when looking at TMR and PMR options, during an in-depth presentation by Laura Tweddle, Consulting Nutritionist from Debenham Australia.

The Rules are: ■ Cows Can’t Read ■

Cows Don’t Lie

■

Cows Love Boring

Ms Tweddle said cows would be happy to eat the same thing five days a week and that sometimes we can overcomplicate the situation.

In essence, she stated if cows are not producing how we want them to, then it’s likely they are not eating what we want them to eat.

“And if you are in doubt, go back to the three simple rules.”

Ms Tweddle examined the benefits and pitfalls of each of the systems and provided important reminders to help maximise productivity and health through rumen fill management, examining both the advantages and disadvantages of each dairy system.

She explained that there are several considerations to take into account including: ■ Feed Quality & Feed Intake ■

Rumen Fill & Feed Intake

■

Feed Variation & Feed Intake

■

Ration Formulation & Budgeting

■

Understanding which group of cows to formulate the ration for.

The gains in a PMR System included: ■ An attitude towards feed planning and feeding consistency, to maintain production.

■

An ability to feed with greater efficiency and less wastage.

■

An opportunity to maximise production for the lift in system intensity.

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The gains in a TMR System included: ■ Increased input level.

Increased target production level to match.

■

Reduction of wastage through feeding system.

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DAIRY NEWS AUSTRALIA APRIL 2018

12 // NEWS

China investment drags Fonterra down FONTERRA NEW Zealand

has slashed $NZ405¦million off the value of its investment in Beingmate Baby Child Food, calling the performance of its Chinese partner “unacceptable”.

The writedown¦—¦and a $NZ183¦million settlement with French multi-national food products corporation Danone¦—¦led to a first-half loss.

The net loss was $NZ348¦million in the six months ended January 31, from a profit of $NZ418¦million a year earlier, the company said on Wednesday.

Sales climbed six per cent to $NZ9.8¦billion.

An impairment on its 18.8 per cent holding in

Beingmate was widely expected, given the slide in the unprofitable Chinese company’s share price.

Fonterra invested about $NZ755¦million in Beingmate in early 2015, but had already dialled back the value of the investment in 2017, when it took an impairment loss of $NZ35¦million, reducing the carrying value to $NZ617¦million.

The investment was now being carried at a value “aligned to the current share price”.

Fonterra chair John Wilson said shareholders and unit holders would “be rightfully disappointed with this outcome”.

“Beingmate’s continued underperformance is

unacceptable,” he said.

“The turnaround of the investment is a key priority for our senior management team.”

But he said opportunity still remained in the Chinese infant formula market.

The first-half results also include a $NZ183¦million settlement with Danone, following a dispute over a whey protein recall in 2013 after a botulism scare.

Fonterra declared a first-half dividend of 10¢ a share and forecast full-year dividends in a range of 25 to 35¢.

Mr Wilson said Fonterra’s board “will decide

how the Beingmate impairment and the Danone payment will be treated for final dividend purposes after the end of the financial year when it will have the full picture of Fonterra’s operating performance”.

The company, which is a cooperative in New Zealand, lifted its forecast farm gate milk price to $NZ6.55/kg of milk solids from the $NZ6.40 it projected in December, reflecting an improvement in global dairy prices.

The total cash payout is forecast to be in a range of $NZ6.80 to $NZ6.90.

Freedom Foods accelerates funding for Shepparton plant RODNEY WOODS

SHEPPARTON’S FREEDOM Foods plant is

set to benefit from the company’s decision to accelerate the raising of capital.

The $200¦million that is set to be raised through the introduction of extra shares available to existing and new shareholders will partly go toward the development of a specialised nutritionals platform at Shepparton, which will be aligned to the dairy UHT operations.

The platform will allow for protein standardisation and the ability to separate milk into industrial grade pure protein components for use in the company’s branded products and for sale to key strategic customers.

“We’re looking at accelerating investment on sites, in particular Shepparton,” Freedom Foods chief executive officer Rory Macleod said.

“Shepparton will see a $60¦million investment in the next 12 to 18 months. This is one of our prime areas of focus.

“We are looking at increasing capital to give us flexibility … for opportunities that come in

and to have a strong balance sheet capability over the next year or two,” he said.

The deal will give existing shareholders the option to buy a further three shares for every 29 they own, and a further 20.8¦million shares for new and existing shareholders will be available¦—¦both at a reduced price of $4.80 per share.

This is not the first time the company has attempted to raise capital in such a way.

“We’ve done a couple of raisings in the last two to five years. We raised $75¦million for an acquisition 18 months ago but this is the larg-

est ever; $200¦million is quite a big chunk of money,” Mr Macleod said.

All new shares are set be issued by April 15.

The other focus the company has is in Ingleburn, NSW, where a new plant and dairy beverage capabilities facility has been completed.

In more good news, Freedom Foods has agreed to long-term partnerships with milk producers across Victoria and NSW. “Our base product is milk, and consumers want to know where food comes from more and more, particularly in China and South-east Asia.”

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DAIRY NEWS AUSTRALIA APRIL 2018

14 // NEWS

Power prices rising but solar panels still shine STEPHEN COOKE

DAIRY FARMERS will see a return on any investment in renewable energy, according to Lindsay Anderson, who has four solar panel systems on his Athlone dairy farm.

Lindsay has four five-¦kW solar panel systems feeding into the grid. He installed these in 2010 so receives the premium feed-in tariff of 66 cents per ¦kW hour.

However, even though farmers installing systems today won’t receive this premium price, Lindsay says they will still receive a return on their investment.

Lindsay’s investment cost $60¦000 in 2010. He installed them over a 12-month period and the cost of installation dropped by half in that time.

He puts 23¦000¦kW hours into the grid each year and currently earns $15¦000 a year (net).

“When I first installed it, for every ¦kW of solar I sent out, I could buy six back. This has dropped from six to three with recent power rises.

“We were in credit for power for the last seven years but now prices have gone up so much that this will not be the case.”

Even with current prices, Lindsay said if you were to install a solar system now you would get a 12 per cent return on investment by sending all power generated back into the grid, and up to 27 per cent if you consume all the solar power internally.

“The cost of installing systems is still coming down compared to the rate of power prices which are still going up!”

Lindsay’s system includes a tracking panel system, which boosts yields by 25–30 percent.

However, he would recommend installing more panels than a tracking system as it is better financially.

Lindsay runs an Insentec double box robot dairy, which is powered through an off grid system with 10¦kW (soon to be 15¦kW) solar panels, a small wind generator, a backup 3¦kW DC generator and a bank of 16 lead carbon batteries with a total capacity of 26.4¦kWh. Three four-¦kW inverters supply three-phase power to the robot dairy and ensures the robot can keep operating at full voltage for four to five hours or longer in the case of a grid failure.

Power is only taken from Lindsay’s SWER single phase grid supply when solar and batteries

cannot provide it, mainly at night.

In his case, security and quality of grid supply is becoming increasingly important.

“Recent grid brown outs and spikes across the State have seen a number of dairies damaged,” he said.

“My set-up isolates my robot dairy from these events.”

When the batteries are fully charged, excess power can be used to run hot water or water chilling systems. Lindsay said inverters are now 96–98 per cent efficient.

The robot dairy has VSD drives to enable him to control the surge load. “It meant we didn’t need to install more plant to cover the surge load.”

Lindsay Anderson in the front paddock with the solar trackers.

Fertility Index (FI) is the most complete way to identify bulls that will sire daughters with a high ability to get in-calf early in the mating period.

Fertility Index is made up of Daughter Pregnancy Rate (DPR) – a cow’s ability to become pregnant in an estrus cycle, and CCR and HCR (Cow and Heifer Conception Rate) – the likelihood of a cow to become pregnant to a given insemination.

Genetically, do all cows in your herd have the same ability to become pregnant?

The example below shows the actual performance of the best and the worst cows, based on genomic DPR, within an 800 cow herd. Each point of DPR is expected to correspond to four fewer days open.

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CODE

NAME

FI

DPR

7HO11169

PETRONE

+6.3

+6.2

Qrtl

DPR Ave.

Cows

1st Service CR

All Service CR

Ave. Days Open

7HO11395

MYSTIC

+5.9

+6.0

Highest

3.9

227

50%

48%

106

7HO13398

SUPERFLY

+4.5

+5.1

125

250HO13743

CASPER

+4.8

+4.9

14HO13738

EUREKA

+4.1

+4.4

The highest quarter of this herd has an average of 3.9 DPR and:

7HO13607

MAGICTOUCH

+4.3

+4.2

20% higher Conception Rate (CR) at 1st service.

7HO12601

FRANCHISE

+4.0

+4.1

Lowest

0.0

202

30%

25%

23% higher Conception Rate over all services.

12-17 CDCB-Genomic data

Became pregnant one cycle earlier (19 days).

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DAIRY NEWS AUSTRALIA APRIL 2018

16 // NEWS

Fonterra squeezed Saputo out of NZ SUDESH KISSUN

CANADIAN PROCESSOR Saputo, on the verge of becoming Australia’s largest dairy player, looked at investing in New Zealand 16 years ago.

Saputo chairman Lino Saputo Junior told the recent Australian Dairy Conference that three countries had appealed to the company when it looked at the international market: Australia, NZ and Argentina.

Today Saputo is one of the top three dairy processors in Argentina; if the listed Canadian company gets regulatory clearance to buy troubled Australian co-op Murray Goulburn, it will leapfrog Fonterra to become the largest processor in

CHINA INFANT FORMULA MARKET CHALLENGING The China infant formula market has been very challenging for several dairy companies operating for the last 18 months — not just Fonterra, says Rabobank senior dairy analyst Michael Harvey.

“That challenge comes from the fact that a lot of regulatory change has been taking place,” he said.

Australia.

Saputo Junior says unfortunately the NZ dairy industry was back then controlled 95 per cent by Fonterra.

“We thought that might not be the best platform for us,” he told the conference.

But Saputo Junior and his father -- retired board chairman Lino Saputo -- visited Australia in 2002 and “fell in love” with the assets of Warrnambool Cheese and Butter Company (WCB).

However, WCB said they were not for sale and the Saputos turned their attention to Argentina, in 2003 making their first purchase outside North America; they bought Argentina’s third-largest processor Molfino Hermanos S.A. But Saputo Junior says his company never lost

“That has brought a lot of competition, irrational commercial behaviour in the market, because there is uncertainty around who will have registration, who will not, who will have access to the market, what will that mean in terms of product availability and all those sorts of things.”

Mr Harvey said looking at the long term fundamentals, the infant formular market in China is still a very good market compared to other markets globally.

“It is the bigger infant formula market so it is hard to ignore. It is still growing because their population is still growing,

PREMIUM PASTURE BLENDS

sight of how important Australia could be in developing and serving Saputo’s growing international customers.

In 2013 an opportunity arose when listed Australian processor Bega Cheese made a hostile bid for WCB. The Saputos returned to WCB and renewed their offer to buy the company; by 2013 they had staved off Bega’s bid and became majority shareholders in WCB; last year they bought all the remaining shares in WCB. Saputo Junior then outlined why his company has invested large in Australia. Notably, milksolids from Australia are held in high regard by international customers, he says.

“Every single market, without fail, would com-

demographics still suit infant formula usage and they are relaxing the one child policy.

“So it is still a very good market and it is still growing, so if you are an infant formula company and you want to be in that market you have to be in China.

“It has been challenging, there will always be risks and challenges in the China infant formula market but it looks like in the next 12 months some of the uncertainty should ease a bit because we have no come through a big change of regulation.

“The outlook is for a better market

pare [the quality of our solids] with that of solids from Australia, which has a reputation for high quality … The heritage and lineage are here … fifth- and sixth-generation farmers who know the industry extremely well. Australia is a key dairy producing country; the infrastructure was here [and we would not have had to] develop infrastructure to collect and process milk here.”

Australia’s ability to supply the international market was also a factor. Saputo Junior notes that 40¦—¦50 per cent of Australian dairy products are exported.

“There are not enough consumers here for the total production; regulations here are also favourable. So Australia became an important pathway for Saputo.”

environment for the infant formula market which bodes well for companies operating in that market. It will not be all smooth sailing but things should start to settle down a little bit.”

Shareholders will be frustrated by the Beingmate write-down but Fonterra also faced a lot of challenges in the Australian market as well, Mr Harvey said.

“Fonterra has come out of the challenges in the Australian market as a bigger, more efficient player and hence that is flowing through a better performing business in Australia.”

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DAIRY NEWS AUSTRALIA APRIL 2018

NEWS // 17

Gap year turns into new career IN 2013 Ellie Cowhan decided to take a break

from studying to spend a gap year working on her parents’ dairy farm at Forbes¦—¦five years later she’s still there.

Ellie had planned to use the working break to save for a house before returning to study nursing but today she’s happily continuing as a farmer.

A decision reinforced recently when she attended the 2018 Australian Dairy Conference in Melbourne confirming her love for farming¦—¦and her dislike of big cities!

“They talked a lot about managing change and that’s something we really need to think about,” she said. “We need to change with the times and

Norco looks to increase margins as CEO leaves

the environment around us.”

Ellie works with her sister Alex and her parents Peter and Lindy on their dairy farm, which has been in the family for 30 years.

They milk about 320 Friesians, with Ellie, 22, responsible for herd management, calf rearing and

general farm duties.

Ellie’s study focus has now changed and she has completed a Certificate III and IV in Agriculture and has started her Diploma.

“I study by correspondence with on-the-job training and Mum and Dad are pretty flexible,” she said.

One of six children, Ellie loves the variety of the work and being surrounded by family and animals.

Ellie received a bursary from Australia’s Legendairy Women’s Network (ALWN) to attend the conference and says the information she gleaned will help her family farm to implement positive changes.

Ellie Cowhan.

The benchmark for production and performance

STEPHEN COOKE

THE CEO of dairy co-operative Norco, Ben

White, has left his position only six months into the role.

However, chairman Greg McNamara has taken on executive duties and says Mr White’s departure would not have a negative effect on Norco’s planned domestic and international expansion.

Mr McNamara said “we don’t talk about why people leave” but that Norco was “going from strength to strength”. In a letter to suppliers, he said Mr White’s departure was amicable.

Long-term director, Mike Jeffery, Kempsey has been made deputy chairman.

Norco made a $1¦million profit from sales of almost $560¦m last financial year.

Mr McNamara said the co-op is completing its strategic review¦—¦“a five year view with a 10-year horizon”¦—¦and will continue to expand its domestic footprint. Mr McNamara said Norco milk and ice-cream is now available from Cairns to Sydney, with some retail presence in Victoria.

Norco has lifted ice-cream sales from 45¦m litres to 60¦m litres this financial year. The co-op exports ice-cream to New Zealand, the US, Japan, the Philippines, and China, Mr McNamara said fresh milk remained the co-op’s “bread and butter”.

“Margins are challenging (with fresh milk) but find me a business that doesn’t have challenging margins.”

Norco exports fresh milk to the Philippines and China.

Very dry conditions in the Hunter Valley and Mid North Coast in NSW, and around Toowoomba and Gympie, have hurt their suppliers. Norco currently has 211 supply farms, with 60 per cent in NSW and 40 per cent in Queensland.

“Pricing in fresh milk has been static for the last few years and cost squeeze pressures are starting to mount,” he said.

“We are working on how to increase that margin.”

He said planned expansion in their export markets and increasing efficiency would help this.

“If we hold margin and extend our reach, we can return more to our farmers.”

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FARM WORLD

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M@ WORLD FARM WORLD WORLD FARM 12-15

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12-15 12-15 April 201 April 20

“Food, Fibre, Future” “Food, Fibre, Future” Future” Fibre, FARM“Food, WORLD Farm World, widely regarded as Victoria’s premier regional agricultural event, attracts more than 55,000 visitors and over 800 exhibitors over four days. The event offers a strong focus on the latest in technology, equipment and information and provides an ideal opportunity to get up close and chat with the experts.

Food, Fibre, Future”

12-15 Latest in Farm Machinery & Equipment | Livestock & Agribusiness April 2018

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There’s plenty at Farm World for both professional and lifestyle farmers together with urban pioneers interested in equipment, livestock, DIY passions, sustainable gardening and horticulture, drone Latest Farm Machinery Equipment Livestock Agribusiness Latest ininFarm Machinery &&Equipment | |Livestock innovation and masses of must-have tools.

What would Farm World be without the livestock! &&Agribusiness Come and engage with the cattle breeders and check out the different breeds, watch the young Telstra WomenininAg Ag Luncheon | the The BIGGippsland Gippsland Jersey Milk Off Telstra Luncheon BIG Kelpie pups being trained,Women see the beautiful Alpacas, take a peek|at The Equestrian Expo, or get allJersey Milk Off cute with creatures Food great and&small in theFiesta animal nursery.

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DAIRY NEWS AUSTRALIA APRIL 2018

OPINION // 21 RUMINATING

EDITORIAL

Specific acts of kindness

MILKING IT...

More Grunt A farmer who shall remain nameless had a new tractor delivered when Dairy News visited recently.

It replaced a smaller tractor that was purchased only two years earlier.

“Think I must have come down with a bit of Grunt disease,” he said.

It can be reported that our resident machinery writer, John Droppert, is pleased with the term but also dismissive of the need to purchase anything less than 40 years old.

Getting round the fence

How now Brownes

The tiny Middle East nation of Qatar is expected to become self-sufficient in about two months.

It results in part from efforts of the Gulf State to overcome an air, sea and land bloackade imposed by four Arab countries since June last year.

The company expects to increase the production of fresh milk and yoghurt to 500 tonnes a day, enough for domestic demand, with a surplus of 100 tonnes for export.

With the blockade by its four Arab neighbours in its second year, Qatar has flown in cows from around the world to build its own dairy herd.

Another 3200 cows are being shipped from the US.

It was interesting to receive a media release last month regarding WA processor Brownes, who won an award for their milk at the Sydney Royal Show.

The PR firm involved described the processor as “WA’s beloved dairy company”, which is not the adjective that would come to mind from the farmers who actually supply it.

It always bemuses us to see how much money some processors will pay to market a shiny image focussing on happy farmers to its consumers, yet treat suppliers poorly.

Advertising James MacGibbon

Floating dairy IT has taken a lot of time to get the green light but finally construction of the world’s first floating dairy farm is underway in the Netherlands.

This innovative farm is being built at Rotterdam and will be home to 40 dairy cows when completed.

The idea is that the farm will supply the city with fresh dairy products every day.

The farm will house 40 cows on the floating structure, measuring 40 m x 32 m.

The cows will be able to use a ‘cow garden’ at the top of the structure, with a soft floor which will have the feel of a natural living environment.

We should be completely impressed with this feat of engineering but all we can think of is — what’s the Cost of Production?

Mind you, it is in Europe so that never really matters.

0409 103 745

james,macgibbon@dairynewsaustralia.com.au Editor Stephen Cooke Dairy News Australia is published by Shepparton Newspapers Pty Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.

The St Patrick’s Day fires that swept through southwest Victoria were the worst experienced CFA volunteers have seen.

We were like many people across the country watching events unfold through social media and seeing potentially dangerous conditions throughout the day igniting at night.

As we tuned in Sunday morning for updates, the appreciation and admiration for the selfless acts of courage shown by firefighters was evident.

Not only for their courage but also their professionalism and ability to think clearly in extreme conditions.

No lives were lost and in extreme conditions their quick thinking saved many houses.

This is not to understate the pain that many have felt through the loss of their house, the loss of livestock and the rebuilding ahead due to lost pastures and fencing.

What inspired us was how quickly the community put up their hand to help in a meaningful fashion.

It was the very next morning that people were putting out calls for food, fodder and labour. As soon as the call went out, the response was overwhelming.

People asking for fodder to fill a load found themselves needing to organise more trucks to cart it all.

Knowing fodder was coming, people like Lauren Peterson were organising space to store it.

With farmers reluctant to ask for help (as often happens), community members visited those they knew were affected to make sure they received what they needed.

And this help came from throughout the State and interstate. Farmers who had received fodder and other acts of kindness over the past decade returned the favour immediately.

When people felt the need to do something, they did it. And they know that help will still be required for many months ahead, and they’ll be there then.

Everybody wishes those fires never happened.

Perhaps the only good thing to come of it is the reminder that you’re never alone.

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Shepparton Newspapers Pty Ltd

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Production

Stacey Taylor

0427 124 437

editor@dairynewsaustralia.com.au Regional editor Geoff Adams

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Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address PO Box 204 Shepparton, Victoria 3632 Australia

DAIRY NEWS AUSTRALIA APRIL 2018

22 // OPINION

Open market for milk benefits all SCOTT BRIGGS

MILK PRICES are crucial to the survival of the

Australian dairy industry.

Since early 2016, when Murray Goulburn and Fonterra dropped milk prices and destroyed farmer trust and confidence, a huge amount of inquiry¦—¦by the government, the ACCC, and the dairy lobby groups¦—¦has gone into exactly what went wrong and how to prevent it happening again.

Most of these inquiries identified that farmers are forced by processors to wear more than their fair share of risks.

Things like commodity prices, exchange rates, processor selling decisions, seasonal impacts¦—¦all these risks are being borne by the farmer, with no chance to take control.

This lack of risk sharing is driven by one thing: farmers are forced to dedicate 100 per cent of their milk supply to one customer (their processor).

This means dairy farmers can’t manage the risks they face, and leaves them facing the costs of their processor’s decisions: ■ Price risk: Why can’t all farmers lock in a

fixed or guaranteed minimum price for some of their milk if that suits their business?

■ Management risk: Why can processors cushion themselves from bad decisions around strategy, sales tactics and production simply by adjusting the milk price?

■ The lazy tax: Most processors run underutilised plants for three quarters of the year, under-utilisation that is paid out of the milk cheque. Why can’t farmers have more control over where they sell their milk, to ensure it goes to the processor that is willing to pay top dollar to fill their factory?

Farmers won’t be able to manage these risks until they win the right to sell their product to more than one customer.

No other business in the world, including grains, cattle or wool producers, would accept this and even the most perishable of products, like sugar, are marketed to more than one customer.

In fact, no dairy processing company is willing to work that way. Our major processors have diversified their product offerings, customer bases and even spread their risk across multiple supply regions. For good reason.

Hope is not a strategy.

That’s why Milk Choices advocates an open,

competitive market for milk. Farmers would have a contract with a processor that enables them to on-sell some portion of their milk elsewhere.

Simple.

The on-sold milk would be transferred between processors under the milk swap agreements already in place, and details such as quality, testing and transport would all be dealt with under industry standards that are also essentially in place.

With this choice now available to them, farmers would see huge benefits: ■ More innovative pricing tools, including risk management options ■ More competitive pricing ■ The ability to spread risk ■ Greater confidence ■ A clear price signal ■ Absolute transparency Changing farmer contracts will need either regulation or agreement by the industry. While the right regulation would no doubt be able to give this sort of contractual right to farmers, it doesn’t seem to be being discussed within the Government at present.

An open market for milk is in the interest of processors too. Due to the current system of exclusivity, processors must recruit supply in a

Milk contracts becoming less transparent WHAT THE hell just happened? Just when

farmers wanted and are crying out for more transparency and fairness along with less complexity in milk pricing we get this.

Sign on payments and deferred opening prices to muddy the already murky waters of milk pricing to the point of it now being a pseudoscience.

Bega Cheese CEO Barry Irvin had my admiration with his words and actions since the MG collapse. He planted his flag on the high moral ground with some justification.

Sign on payments, production payments, growth incentives etc are a cancer and will kill the industry if processors persist with these tactics to secure and grow their milk pools.

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short window around the beginning of the financial year.

Any shortfall in recruitment is exceedingly difficult to overcome until the next year, leaving processors then even more at risk to external factors such as seasonal and economic conditions.

For most of the year, processors are unable to manage their stainless steel to ensure optimal utilisation, a huge hidden cost to the industry.

But the bottom line is much more serious.

The investment in stainless steel has not been matched by growth in milk supply.

Confidence on the back of sustainable prosperity at the farm gate is essential to industry survival.

Australia’s global competitors on milk are all seeing their milk price systems changing to ensure more transparency, better risk management, competitive milk prices and the most efficient outcome for the industry as a whole (best milk to highest value).

If we don’t keep up, we will waste away.

• Scott Briggs is a member of Milk Choices, a volunteer group of farmers and dairy industry professionals working to deliver more choice and control to the Australian dairy industry. More details can be found at www.milkchoices.com.au

LETTER TO THE EDITOR

They are morally wrong and an insult to all dairy farmers. In a single move, with the use of the sign on payment as the new weapon in their ever expanding pricing armoury, they have now totally destroyed the ability of farmers to compare the milk payment systems and pricing of the various processors and understand what we are actually getting.

This is nothing more than a reworking of the old practice of processors pricing against MG’s price plus 1cent.

But now it’s being wrapped up and presented as a payment from the future if you decide to accept the offer, not one of competition for milk in that particular season.

Our pricing structures are now starting to resemble electricity and phone contracts¦—¦impossible to compare.

50 cents over three years is about 1 cent a year for your loyalty. When will processors realize these types of practices will not buy and cannot buy the farmer’s loyalty?

The exact opposite will happen¦—¦it will fuel continuing mistrust and resentment towards processors and accelerate it.

This sign on payment is the biggest step backwards since the flat milk incentives to the industry’s long-term viability.

If you want farmers’ milk, along with their loyalty, just pay the best milk price you can and the same price no matter how big or

small or what their supply curve is.

The other issue we now face is the deferral of the opening price for three months.

Again this makes it harder to compare milk processors’ milk pricing at the start of the new season and what is truly the price on offer for the whole year.

We all know changing supply at any point during the year except at the start of the new season comes at great cost to farmers.

As we all know, step-ups are now called loyalty bonuses.

Those step-ups related to the milk you have already supplied do not follow you to your new processor.

It is now time for a voluntary code of practice for milk processors with these basic requirements: ■ All processors must submit their opening milk pricing to Dairy Australia to be announced simultaneously to farmers.

■ All processors must offer a 9/3 milk pricing in their payment offers.

■ Not more than a 40c kg/MS pricing differential between pricing structures offered to farmer suppliers.

■ No special prices or sign on bonuses to attract certain supply types or to individual farmers.

• Bernhard Lubitz is a dairy farmer from Leongatha.

DAIRY NEWS AUSTRALIA APRIL 2018

MARKET // 23

FRESH AGENDA JO BILLS

How the dairy world has changed

What does it mean for Australian dairy farmThis substitution effect has helped curb WMP nal dynamics that are also driving global dairy values, even when New Zealand production has ers with cheese being the biggest driver of milk ter view of global dairy trade, and the way it’s markets. values?

Firstly, the dynamics around butterfat in the undershot market expectations. changed in recent years.

How much cheese and butter Europeans can The key driver for WMP value has switched We have been looking at the international EU have shifted. On the one hand there seems dairy market for a long time, and what has to have been a step change in butter and cream from NZ availability to being driven by the diver- consume themselves really matters¦—¦particularly gent values of fat and protein while being capped in the coming months when spring milk begins struck us more recently is how much the levers demand from European consumers. to flow!

At the same time the large intervention by SMP and substitutes. that drive commodity prices have changed.

In the medium to long term the CommisIt’s a complex picture, with the slow release stockpile and You can only of SMP intervention stocks under the EU Com- sion’s commitment to letting market signals be depressed work with mateprotein prices mission’s current tendering approach adding transmitted to farmers will be important in this rial that is avail- The 90% of the world’s milk that have con- to the uncertainty, although those in Brussels post-quota era in regulating milk flow. able. That’s true isn’t traded is looking more like the The adjustment of European dairying is ongostrained SMP/ would regard it as an opportunity to “manage for most mar- iceberg we hadn’t really paid much ing¦—¦favoured “green-belt” regions will continue butter output. the market”. kets. attention to while we have all been It’s a running joke in our office that EU Ag to grow and, as has been demonstrated already, The proAlthough longed short- Commissioner Phil Hogan has a ready reckoner can compete vigorously in export markets. very little of focussed on the tip!

Other regions will retreat over time. age of butter on his phone which shows how low he can go the world’s milk The large domestic market will always come production is traded¦—¦around 8 to 9 per cent has pushed prices to historically high prices, but on SMP sales to maintain farmgate returns at on a milk solids basis¦—¦it’s data on these ship- lack of product means more marginal demand around 28–30 euro cents and keep the tractors first for European dairy, and continued cheese out of nearby streets! Yeah, we need some new demand will remain the key to future export ments that is the most visible, timely and com- hasn’t really been tested. availability¦—¦and how hard they’ll have to comFor EU manufacturers dealing with additional jokes. plete.

The rhetoric from the Commission at present pete to clear stocks.

Trends in trade and milk production in milk supplies, decisions about where to direct • Joanne Bills is a Director of exporting regions are the focus of most global milk¦—¦toward cheese or SMP/butter¦—¦can be is that there won’t be another rescue of farmgate prices, but that resolve will be tested if they www.freshagenda.com.au finely balanced in the current climate. market discussion.

In determining which way to go, the state head lower.

The 90 per cent of the world’s milk that isn’t traded is looking more like the iceberg we of the EU internal market is crithadn’t really paid much attention to while we ical¦—¦and largely undiscernGlobal dairy markets - the interconnected variables affecting supply and demand fundamentals: ible¦—¦especially to those outside have all been focussed on the tip!

The small volume of milk traded in the world it.

Intervention policy Through the early part of the is often cited as a reason that global dairy marEU milk pool decade, the big story in dairy trade kets are so volatile.

It’s true a small change in production or was WMP, as China hoovered up EU SMP EU cheese demand from the key players can have a big New Zealand’s milk growth.

EU Butter EU WMP WMP influenced values for fat impact on trade balance and commodity prices.

Whey powder It’s no wonder we have all spent a great deal and protein in other dairy comVeg oils of time looking in this direction. Yet 62 per cent modities as it dominated the trade Fat filled powders of milk produced in exporting regions is made story.

As the dominant source of into cheese, which is largely consumed within NZ milk pool WPC/WPI WMP, news on New Zealand prothe US and EU. NZ WMP NZ SMP NZ cheddar NZ Butter While the US has lots of data and has largely duction had a big effect on global operated in its own bubble in recent years the prices. However, in recent years, EU market is much less transparent and is with China’s partial retreat from having an increasing influence on global market the 2013 peak buying frenzy, this US cheddar effect has been less important. dynamics.

US NFDM US Butter The increasing availability While the EU has been a dairy exporter for Whey powder decades, last month’s article highlighted its instead of highly competitive EU US milk pool increased presence across all major importing SMP powder has encouraged subWMP region since Russian embargo and production stitution with cost-effective fatCheese SMP Butter quotas were removed. However, it’s the inter- filled milk powders.

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DAIRY NEWS AUSTRALIA APRIL 2018

24 // MARKET

Can processor competition offset European pressure rt demand remains strong

few now rmming sed cortier mer For ted e to the ems erm and

ook es – Sitan 0/kg nge The picors sitthe

on mers orm acts ply.

DAIRY NEWS AUSTRALIA JUNE, 2012

AGRIBUSINESS // 17

cents/litre in March (AUD 41c/L) to 28 Euro cents/litre (AUD 36c/L) in April.

Profit margins are under pressure in the US, and in NZ Fonterra has announced the final payout for the 2011/12 season has been cut from NZ$6.75-$6.85/kg MS GLOBAL IMPACT to NZ$6.45-$6.55/kg MS (AUD$4.96GLOBAL IMPACT JOHN DROPPERT LAURIE WALKER $5.04).

Effectively, global dairy markets are TOTAL milk production rebalancing. Lower prices will both Shifts inAUSTRALIAN private label contracts and pro- for February was up 2.4 per cent, putting the 2017– slow production growth and stimulate cessor rationalisation have seen milk 2018 season 3.4 per cent ahead on a year-to-date demand, and as this occurs we will ulticompanies adjust their intake requirebasis. mately see a price recovery. Key factors ments and pricing to meet the changThe growth continues to come from the to watch on the global scene will be the ing demands of a highly pressured retail southern, export oriented regions of South Ausrate at which milk production overseas marketplace.

Lower contract prices and tralia, Victoria and Tasmania, whilst drinking slows in response to lower prices, the a lack of alternative supply opportunimilk states such as NSW and Western Austraties lia arepresent flat. challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of limited manufacturing capacity.

Despite Queensland is down signifi cantly on a yearto-date basis (-6.0the perunderlying cent). these challenges, domes- April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value southern regions, the Australian dollar. increased dairy How- ofopening data suggests EU-27 production ticWithin marketthe is stable, with steadyWestern per-cap-VictoThe global supplymilk outlook might suggest processors leadconsumption. with a more conservative price, leaving room for potential step-ups, but faced with a changed industry landscape the the need to secure (or more supply, processors will have position themselves comria shown the weakestand growth, down 3.2 per Demand for exported dairytoprodever, surge in supply hasambitiously, outpaced grow) finished the March 2012 quota year up and itahad dairy consumption a growing petitively. cent for February and just 0.2 per cent ahead ucts remains a positive and will conpopulation providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. on a year-to-date This situation has seen the scales tinue to grow with the middle class in tainty beyond thebasis. current adjustments. production is widely expected to finish Whilst it is still too early to assess the effects In the seasons following the 2008 this season up 10% on last year - a huge tip in favour of buyers in dairy mar- large emerging markets such as China, umes have forced many processors to make sig- concern about the amount of milk coming out of the devastating March bush fires across West- litres. financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing However, whilst a modest recovery on 2016– nificant changes in milk utilisation to optimise of Europe. ern Victoria, the loss of property and stock, as in conjunction modity price recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also Although severe storms and blizzards appear well as disruption caused, will significantly 2017 production (9.015b litres), this still rep- returns. with global population growth.

Locally, prices are down some 30% from their ing solid production growth, but a sigexport-oriented regions have seen solid affected March production, Australian manufacturers have been chang- to have reportedly resents a significant decline on 2015–2016 affect March production. the domestic market is supported by a 2011 peaks, whilst powder prices have nificant supply gap in Brazil prevents global supply growth (see chart) with are estimated to be ing their product mix away from butter/SMP January EU Milk collections Despite natural disasters, growth in milk pro- volumes (9.681b litres). andcent-4 stableperperlost more than 20%. Farm gate prices much ofCompounded this additional from leav-investments higher-cost competitors Northcent year-to-date (using an manufacturing streams in favourgrowing of cheesepopulation and up +3 per by milk manufacturers’ duction volumes is broadlyininthe line with Dairy capita Whilst the for dairy have subsequently inreturns ing South America. ern Hemisphere amongst those expandseason ease of comparison) as the WMP, due been to the reduced better total offconsumption. ered by Australian in capacity across southern Australia and global Australia’s forecasts, putting Australia on track a challenging place mostvolexporting regions. The average market is currently wider uncernorthern hemisphere heads into its spring flush. ingtotal output as their of margins these streams. commodity priceeconomic fluctuations, these lower for production aroundincreased.

9.1 to 9.2¦billion Despite Most of thisthat extrabalproduction will have to be Total returns from SMP/butter haveall signs to stream be a seller, indicate price for milk in France This season, favourable weather con- tainty, demand has remained resilient basic farm gate exported beyond Europe’s customary markets. fallen further in from the last months, ancewith will Dairy ultimately return. dropped 12% 32 few Euro ditions have further enhanced milk as importing countries like China and for example, Incremental change in milk production (year-on-year)

GreenCon sia FTA benefits Concrete & Construction dairy

Middle Eastern demand remains subdued Australia’s Spot Price Report showing a decline in butter prices from around US$6100 at the and Russia is still closed, forcing the EU to beginning of 2017–2018 to around US$5400 now. expand its presence in East and Southeast Asia, Australian SMP production to January has traditionally Australia’s main markets.

As in Australia, European processors have fallen 23 per cent year-to-date, to 130¦000¦tonnes. reportedly been Over the same favouring WMP period Australian www.greencon.com.au Australia is likely to see more and cheese to WMP production All types of rural, industrial, domestic and commercial construction N-Australia-New SMP/butter prohas increased 34 competition from Europe in nd FTA (AANZFTA). duction, meanper cent to almost our major export markets for • Feed pads & freestalls otectionist sentiing Australia is 55¦000¦tonnes, while cheese, which is the single to see more production of chedover agricultural • Steel construction biggest use of Australian milk. likely competition in dar, cream and is rife and grow• Dairies & farm sheds our major export mozzarella cheese ross the globe, so to provide portion pack AUSTRALIAN FOOD • Effluent systems markets for cheese, which is the single biggest varieties are up by 8 per cent, 6 per cent and 5 context it is pleas(200-330ml) configuracompany Freedom Foods use of Australian milk. per cent respectively. stralia has tion for beverage prodGroup Ltd is to build a Ph:managed (03) 5595 1078 Fax: (03) 5595 1644 1 Station Street, Cobden West Crt, Warrnambool EU milk production generally peaks in May, Lower Australian butter production also goes ge an agreement new milk processing plant ucts. some way to explaining increased Australian meaning the effect of increased EU milk proMalaysia that has The NSW location will to cash in on growing duction will likely make itself felt early in the imports of butter. with some sensiprovide access to the most demand in Asia.

So far Australia has manufactured around 2018–2019 season. ricultural issues sustainable and economic plant, to be in and The global supply outlook might suggest pro39¦000¦tonnes ofThe butter (-16 perbuilt cent), fectively covered by source of milk. has conservative opening southeast Australia, will be with a more imported around 16¦000¦tonnes (+8 per cent), cessors leadPactum FTA,” says Fraser. strong links to the Austrathe first Australian greenwhile exports of butter stand at just 5500¦tonnes. price, leaving room for potential step-ups.

Thethe fastest and most efficient way to clean your yard.

Sealing the deal: Malaysian trade minister Mustapha Mohamed hile under lian dairy industryfaced and will fields expansion in UHTininbutter However, with a changed industry It should be noted that this decline Our tanks are specifically designed to withstand with Australian counterpart Craig Emerson after signing the deal.

FTA agreement landscape and the need to secure (or more expand its arrangements production followed 10 years.a 15 per cent fall over the the high volume of water and flow rates to grow) same period to January last year. of Australian agriwith ambitiously, dairy farmers for supply, processors will have Freedom’s wholly successfully clean your yard. to of position themselves In the face of strong ongoing consumer but also through technical Despite the compleers through streamlining e’s key interests supply milk. The new competitively. owned subsidiary Pactum They can be opened by a manual valve or a pneumatic How these new industry dynamics will play demand for butter, and season-on-season or so called ‘behind the tion of this agreement, of rules-of-origin decriffs bound at zero, plant will increase scope Australia will run the valve which can be controlled in the dairy. out, and whether they declines in butter production, it seems likely much remains to be done border’ restrictions.” and rice are two sec- laration processes and plant. Some of its products for Australian milk supplycan offset weaker internathat the trend Australian butter tional prices at the farmgate, remain to be seen.

The FTA was signed on for Australia’s farmers to improved marketing here incremental – value-added, sustainable willofbegrowing sold in Australia.

• Laurie Walker is an industry analyst with imports will continue into the 2018–2019 season.

May 22 in Kuala Lumpur tap into the full potential arrangements for certain t access improveand export focused.

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DAIRY NEWS AUSTRALIA APRIL 2018

MANAGEMENT // 25

Price crunch led family to increase herd WHO:

Remlap Dairies WHERE:

Sisters Creek WHAT:

Dairy Business of the Year

RICK BAYNE

WHILE MANY farms cut cow numbers when the milk drop price hit in 2016, Remlap Dairies in Tasmania went the other way.

Facing a difficult decision in the wake of significantly lower prices, the farm opted to increase cow numbers and maintain a feeding regime aimed at high production.

The decision paid off for Remlap Dairies¦—¦which is owned by Rhys and Cecily Palmer and their son Michael Palmer and his partner Eliza Anderson and takes its name from the reverse spelling of Palmer.

The farm’s success during 2016–17 has led to being named 2018 ANZ Tasmanian Dairy Busi-

ness of the Year, recognising excellence in business management and farm performance.

Apart from the growth decision in the face of adversity¦—¦and a move the year before to delete potatoes from the farming equation¦—¦Michael says not much different happened on the farm in 2016–17.

Instead, he puts the win down to a combination of a good season and a long-term commitment to growth and watching the bottom line.

The Palmers bought the land at Sisters Creek 35 years ago. In the 2016–17 year they milked 920 mostly Holstein Friesians on 290 grazing hectares.

This year they have further expanded to milk 1000 cows on 330 hectares. Considering they started with 133 cows it has been a massive growth curve.

When the price dropped they didn’t panic.

“We had made the decision we wouldn’t cut feed,” Michael said. “We’d done that other times and it affected us for the next two or three years.

“We had extra heifers we were going to sell but decided to keep them and milk them. We thought we could run a few more and it turns out with the season we got we were able to capitalise on it.

“Grass growth wise it was an exceptionally good season so that decision worked out pretty well.”

There are other contributing factors to the

success. In addition to the home-grown feed, mostly from perennial rye-grass, the Palmers are relatively heavy grain feeders and persisted with their high feed ratios. “We didn’t cut that back and it worked in our favour because the price of grain dropped a fair bit,” Michael said.

After adding to the herd, they were also able to cull some lesser performing cows at a good price.

Traditionally big users of fertiliser, they cut back and at the same time the price dropped.

“The main things we used dropped in price and we managed to fully feed and milk more cows,” Michael said.

Rhys and Cecile have always been very specific with budgets and the 2016–17 year was no exception. “We made an early decision on what we wanted to do and we made sure we stuck with those costs. That helped a lot.

“We didn’t do a lot different but we went to Taking Stock sessions run by DairyTas and they helped identify where we could make some savings.

“It takes a tough year sometimes for you to get back in touch with costs.”

Continued page 26 >

t r o p e r l a i c e p

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NEXT ISSUE: MAY ABVs The April release of the Australian Breeding Values (ABVs) makes herd improvement easier for farmers than ever before.

Our special feature will examine which genetics are best for each operation and showcase some of the breeders behind them.

For advertising enquiries, contact James MacGibbon | T: 0409 103 745 E: james.macgibbon@dairynewsaustralia.com.au Eliza Anderson, Susannah Palmer and Michael Palmer on their Sisters Creek Farm, which they own in partnership with Michael’s parents Rhys and Cecile.

DAIRY NEWS AUSTRALIA APRIL 2018

26 // MANAGEMENT < Continued from page 25

The year before the farm had stopped growing potatoes, ending 17 years of a shared system.

“It’s been a very tough season, extremely dry for us and we ran out of water earlier than normal”.

“I couldn’t handle 1000 cows walking past the potato paddock anymore,” Michael said. “I thought we were better off to concentrate on the one thing and do it properly.”

l1LIC

They needed to significantly invest in new machinery to continue the potato operation.

“I was happier to work with the cows than worry about machinery,” Michael said. “It was a good decision; though cows and potatoes work really well if you can do it properly.”

The farm’s growth has continued this season, though Michael says the farm has probably reached its limit.

They are on target to produce between 500 and 600¦kg/milk solids (MS) per cow this year, on a par with last year. In 2016–17 they produced 576¦kg/MS, and 7968¦litres per cow.

“It has been improving over time and I’d like

to do over 600 this year, but I’m not sure we’ll reach that,” Michael said.

“It’s been a very tough season, extremely dry for us and we ran out of water earlier than normal but we’ve had a good autumn break.

We’re up a bit on the previous year.”

During the judging year they grew 11.7¦tonnes home grown feed per hectare on the milking area. The total feed fed was 6.3¦tonne dry matter per cow. Their high input system involved 2.3¦tonne of dry matter concentrate going into each cow.

Total production cost was $4.22 total per kg/ MS.

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Remlap Dairies ‘surprised’ by win REMLAP DAIRIES –owned by Rhys and Cecily Palmer and their son Michael Palmer and his partner Eliza Anderson¦—¦has been named the 2018 ANZ Tasmanian Dairy Business of the Year.

The award, recognising excellence in business management and farm performance, was announced at the Tasmanian Dairy Conference last month.

Michael Palmer said he was pleasantly surprised to win.

“I said ‘you’ve got to be joking’. We were up against people I thought had it in the bag. It’s not that often you get recognition in the industry so it was a nice honour.”

Three of the four finalists hailed from Sisters Creek or nearby. “We must have got something right that year,” Michael said.

“It was a better year in the north-west than in the north-east.

“We’re all good mates and give each other a fair bit of banter over time,” Michael said. “We’re a bit competitive.”

Judges were Tasmanian Institute of Agriculture dairy extension team leader Lesley Irvine and last year’s winner Gerard Mulder Ms Irvine said the Palmers have fined tuned their operation to a point where the business is performing very well.

“They’re getting very good cow production while still maintaining good pasture consumption. The combination of that and the financial performance of the farm led to them being winners,” she said.

“When we did the judging visit they highlighted how important the team is to them with everyone working to the one goal and doing things right and on time.”

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www.licnz.com Michael Palmer accepts the award for ANZ Tasmanian Dairy Business of the Year.

DAIRY NEWS AUSTRALIA APRIL 2018

MANAGEMENT // 27

Cows power their own milking machines STEPHEN COOKE

A NEWLY installed methane digester will produce enough power to meet half the cost of running the dairy barn and robotic milkers on a Bungaree farm.

The digester was being installed when Dairy News Australia visited in November and can process 24,000 ¦litres of effluent a day.

Once the gas has been extracted, the separated liquid and dry matter¦—¦now odourless¦—¦can be spread on the farm.

Mark Trigg¦—¦one of four partners in the dairy and potato seed operation, along with his father Ron, cousin Tony and Dave Lee¦—¦said the dairy barn and digester complemented each other.

The Triggs built a 500-head dairy barn in 2014 and installed DeLaval milking robots in March last year. About 220 of the 300-head herd live in the barn and are so comfortable they do not venture outside.

The barn design sees the manure continuously scraped from a central laneway and into an underground pit. This was previously collected

and spread on pasture, but Mark Trigg said the smell was becoming problematic.

“Effluent has been an issue. In summer time it gives off a fair aroma,” he said.

“We knew about methane in the pig industry for a long time so thought why can’t we do it?

“Essentially, we’re trying to value add manure so we can generate power and recoup power costs.”

Research led them to Ballarat company Gekko Systems¦—¦which primarily designs and produces equipment for the mining sector¦—¦which designed, built and installed the prototype device.

The current system, located next to the barn, comprises 10 cargo containers. Effluent is pumped from the pit under the barn to six containers, where it is warmed to 36 degrees. Bugs produce the gas, which is stored in a separate container and used to generate power.

Once the process is finished, the effluent is run through a screw press to separate it, and liquids and solids will be stored in a new dry bunker and 100,000 litre pit. Mr Trigg said the final product was organic and odourless and would be spread three times a week.

A J Trigg and Sons partners Mark Trigg and Dave Lee in the 500-head barn.

The system includes a 35kVA generator, which should cover 50 per cent of the running costs of the barn, or the equivalent of $10,000-$15,000 to $30¦000 a year.

“We have a 60kVA generator there that just handles (running the barn), and that costs about $4000 a month,” Mr Trigg said.

Continued page 28 >

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DAIRY NEWS AUSTRALIA APRIL 2018

28 // MANAGEMENT

This automatic scraper collects all manure from the barn.

<Continued from page 27

New living arrangements The family purchased the 160¦m by 40¦m barn from China and installed it themselves in 2014.

“It roughly worked out to be the same price to buy steel in Australia¦—¦galvanised and packed from China,” Mr Trigg said.

He said a choice had to be made between the barn or upgrading their 36-stand rotary and improving the farm’s laneways.

The barn gave the additional benefits of sheltering the cows through very wet winters and hot summers.

“They can be knee deep in mud in winter and we can have 30-degree weeks in summer,” Mr Trigg said.

They used straw bedding for the first year¦—¦working through 12 big square bales a week¦—¦before installing foam mattresses with a rubber cover.

Mr Trigg said sand bedding was ideal but

The barn has four DeLaval automatic milkers.

they could not find a dry source of sand. Keeping it dry and clean would also increase the workload significantly. Manure from the generator can also be used but they are undecided on this at this early stage.

“We would like to see mattresses made a bit more comfortable but mastitis can increase with organic matter. However, if you can get better cow comfort, it could be worth it.”

Mr Trigg said getting cows used to robots was easier than the transition from the paddock to the free stall.

“Within five days 70 per cent of the herd were in their bed. For the first couple of days they walked up and down.”

Cows are so comfortable now they don’t want to leave.

“We did maintenance on two robots so took half the herd out and they bellowed for three days, wanting to come back in.”

Cows leave the barn when dried off.

The 500-head dairy barn was built in 2014.

With four robots installed, the barn is limited to 240 cows but there is space to add another four boxes. High production cows are producing more than 60¦litres a day and the average in the barn is 35¦litres, although this has peaked at 38.

Mr Trigg said production had risen, incidents of mastitis were similar and there was more emphasis on foot trimming.

Sexed semen is utilised to build the herd to 500 cows. All-year calving has also been introduced and the robots are providing information to help them fine tune their AI program.

“We’re trying a few different things,” Mr Trigg said.

“We try not to calve too many cows between June-August, and Christmas time. If they are over 300 days in milk and still doing 30-plus litres, there’s no rush to get them in calf.”

There is provision to expand the digester to cope with the extra manure in future years.

Barn changes feed mix The 220 cows get 11¦ tonnes of feed a day. The mix of maize silage, grass silage, canola meal, wheat and minerals (bi-carb, lime, pellets and salt) is fed four times a day.

All fodder and wheat is grown on the 400¦ha property, as well as 60¦ha of seed potatoes.

“We never used to grow cereal crops but we can now,” Mr Trigg said.

“We grow 500 to 600¦ tonnes of wheat now the cows are in the barn and off land that was previously pasture. We had 4 ¦tonne cereal crops last year. It’s a fair saving not buying wheat in.”

As seed potatoes can’t be planted in the same paddock within five years, wheat is planted after potatoes, followed by Italian rye-grass or annual rye-grass, followed by maize.

“We’ve started growing maize again the last few years,” Mr Trigg said.

“We were growing lucerne but you get more bulk and energy in maize.”

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DAIRY NEWS AUSTRALIA APRIL 2018

ANIMAL HEALTH // 29

APIAM ANIMAL HEALTH GEMMA CHUCK

THIS MONTH I am breaking with the tradition of writing a technical animal health article.

Instead, I thought I would share my recent experience during the St. Patrick’s Day bushfires in southwest Victoria.

It had been a pleasantly warm day, probably too warm for many, but I’ve always liked warmer temperatures and to get up to 30oC in March was a nice surprise.

A very long night was met with a panoramic red glow surrounding our property.

Our house sits on the edge of a steep gully with only one way in and out. The towering pine trees at the end of our drive were silhouetted against the volcanic sky.

Flecks of ash were caught in the beam of my head torch and the smell of smoke was increas-

ingly choking¦—¦think Mordor from Lord of the Rings.

By 10¦pm the Camperdown fire had an Emergency Warning and there were now fires in Scotts Creek and Jancourt. There were now 31 different incidents within 10¦km of our house. Things were happening quickly.

More beeps on the phone, signalling new fires

and upgraded alerts. There was debris flying everywhere and now I could also see flames on the horizon at the end of the driveway. No time to waste!

I called my neighbour over the gully nearer Cobden and made the decision to leave. Nappy bag, portacot, pram, my clothes bag, baby food, blankets and torches¦—¦check.

Continued page 30 >

I was met with a panoramic red glow surrounding our property.

My husband was away at a conference in NSW so my 16-month-old daughter and I had spent the day tottering around the park.

After the usual bath-bottle-book-bed routine, she was sleeping soundly in her cot by 7.30¦pm.

It was a hot evening and after feeding out hay for our cows and horse, I idly checked our outside thermometer. It was still 33oC. They had forecast a Severe Fire Danger Rating and given the wind that was whistling around our house I wasn’t surprised.

At about 8.30–9¦pm my phone beeped. It was an Advice warning on the Vic Emergency app detailing a fire in Terang.

As I was scrolling through the app, my phone beeped again. And again. New fires in Terang and Camperdown.

Nothing to worry about I thought; they were expecting this, right? More beeps on the phone.

The frequency of the alerts was increasing and at 9.30¦pm we lost power.

We often lose power in storms so I wasn’t overly worried. Glancing through our bathroom window I glimpsed a red glow on the horizon.

I called my husband, telling him I was going to pack a few things in case we needed to leave.

To be honest, I never really believed I would and my pace and urgency was casual to say the least.

The battery on my phone was nearly dead so I ambled outside to charge it from my car. I

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

If we could talk we’d be on TV.

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Fire fighters put out hot spots near Cobden the morning after the St Patrick’s Day bushfires. Gemma Chuck says the after-effects of this disaster, including supply of fodder and animal health issues, will be prolonged. (AAP Image/David Crosling)

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DAIRY NEWS AUSTRALIA APRIL 2018

30 // ANIMAL HEALTH

< Continued from page 29

Another beep on my phone, checking the app, my heart sank and tears filled my eyes. A new bush fire had been reported at the end of our driveway.

The ground and trees were so dry and we had 30 rolls of hay under the pine trees. I felt we were gone for sure. Despite being cramped in the back of my car with my 16-month-old daughter, two dogs, a cat and a handful of stuff, I suddenly felt very alone.

At the time of writing this we are four days after the bushfires that ripped through our rural communities. I am sitting in my office at home.

I feel hugely thankful that our house survived unscathed, as did our livestock. Our neighbours’ paddock had caught fire during the early hours of Sunday morning, most likely the result of an ember from the main fire front.

But the feeling of gratitude is somewhat masked by the feeling of guilt. Others have not been so fortunate and have lost their homes and livelihoods.

There are no words that I can express to comfort these victims of the fire. But one thing should be remembered: in contrast to the fires that rampaged on Ash Wednesday and Black Saturday, there was no loss of human life during the St. Patrick’s Day fires.

For this we are indebted to our Emergency Services, many of whom are volunteers and farmers themselves.

Real-time live communication and forward planning by response groups and volunteers also

Two very excitable Jack Russells and one freaked out cat. Oh, and a sleepy baby. All bundled into the car.

As I drove out the driveway, narrowly missing flying branches and debris, I wondered if this would be the last time.

In Cobden, there were people everywhere, it was chaos. Thankfully we were directed to a relief centre where, amazingly, volunteers were already organising food and hot drinks.

Community spirit never ceases to amaze me.

More beeps on the phone. The road to our house was now closed and leaving wouldn’t have been an option.

By midnight, there were 64 incidents within 10¦km of our house and at least five Emergency Warnings. This was a living nightmare.

Reality was beginning to sink in for many.

Some people were crying out and shouting; others were silent and shocked. All were dealing with what was happening in their own way.

It was still so warm and the winds continued to howl. Several trees were down in the Cobden township and smaller branches littered the pavements.

By 1¦am my daughter was very hyperactive so I drove around town, in the hope she would fall asleep in the car. After an hour and half of driving I tentatively turned off the ignition. She didn’t stir.

I let the dogs out on a leash and then tried to get a bit of shut-eye in the back of the car. By this time it was 3.30¦am.

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contributed to the efficiency of evacuation and communication.

The after-effects of this disaster will be prolonged. Property restoration, supply of fodder and animal health issues are inevitable, along with the emotional and physical exhaustion that can be forgotten during the recovery phase.

The community effort has been overwhelming and nothing short of amazing. Local gov-

ernment, industry bodies, organisations and volunteer groups have rallied to organise a united response to those who have been affected, directly and indirectly.

Saturday, March 17, 2018 was a long night for our community. For many it is one that will never be forgotten.

• Gemma Chuck is an adviser with Apiam Animal Health.

Think bigger picture when tail docking THE END of tail docking would be a positive step for the welfare of Australia’s dairy herd, according to Tasmanian dairy farmer, Andrew Lester.

Mr Lester, who chairs the Australian Dairy Farmers’ Animal Health and Welfare Policy Advisery Group, said both animal welfare and public perception had to be considered.

The latest Dairy Australia Animal Husbandry Survey found 9 percent of dairy farmers continue to dock tails. Dairy Australia said it mainly occurs in the higher rainfall areas of Tasmania, western Victoria and Gippsland.

The Australian Animal Welfare Standards and Guidelines for Cattle only allow tail docking of cattle under veterinary advice to treat a tail injury or disease. Compliance with these guidelines is now dairy industry policy.

Mr Lester said he had not experienced any problems since ceasing tail docking at his Tasmanian dairy farm 12 years ago.

“We did grapple with how we would manage mastitis and dirty udders and those sorts of things but mastitis levels haven’t been elevated beyond what we had before we stopped docking,” Mr Lester said.

“We also had concerns about the opera-

tor issue of being flicked in the eye with a tail, but we’ve never had any damage from it.

“The tail is obviously something they need to defend themselves against insects.

It’s a comfort thing for them and it’s probably why they have a tail in the first place.

“Two or three times a year we have an extra person in the dairy to trim the dirty and long tails so there is a cost but, when you take into account animal welfare and public perception, I think the benefits definitely outweigh that cost.”

Dairy Australia’s animal health and welfare policy manager Susannah Tymms said tail docking in the dairy industry was largely based on habits, attitudes and tradition, rather than good science or real need.

“Farmers who have given the practice away discover that cows with full tails are just as easy to manage as those without,” she said.

“Switch trimming is one alternative, with excess tail hair trimmed once or twice per year to minimise the problem of dirty tails.

“Other strategies to manage cows without tail docking include calm, consistent milking practices, good dairy design, fly control and the use of tail clips.”

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Livestock are resilient to smoke including carbon monoxide and ash fallout from fires, Victoria’s Chief Veterinary Officer Charles Milne has advised.

The advice comes as peat fires continue to burn in the state’s southwest a week after they began.

Dr Milne said fire was a natural part of the Victorian environment, so it was likely livestock were exposed to smoke, ash and embers from time to time.

"The impact is typically short term and associated with the inhalation of smoke and ash during periods of intense exposure," he said.

"For animals that have not been burnt, there are typically no long term affects for health and food production."

Although, Dr Milne warned pets

such as dogs, cats and horses are more susceptible to peat fire impacts.

"Dogs, cats and horses may have irritated eyes, which can be observed by lots of tears, and respiratory problems, which could include increased coughing or breathing," he said.

For livestock, open-air paddocks will reduce the build-up of gasses and their impact, but every property and species are different, so the levels of smoke exposure will vary depending on the day and wind conditions.

"When it is safe, move your livestock away from the active peat fire.

"Animal owners should seek veterinary advice if they are concerned that their animals are being affected by smoke or ash."

DAIRY NEWS AUSTRALIA APRIL 2018

MACHINERY & PRODUCTS // 31

GRUNT

JOHN DROPPERT

Isuzu SBR tipper keeps on truckin’

I DON’T know much about trucks. Never have.

In my orbit, they’re good for shifting tractors and machinery around.

More generally, while trains are pretty awesome we don’t all live and work next to a railway siding, so it’s trucks that get it done.

Don’t get me wrong, they’re also big diesel brutes that run high horsepower, blow smoke and generally make things happen through pure strength.

I’m naturally very partial to that, so don’t confuse ignorance with a lack of respect. Even if those guys with the specialist chrome wheel nut polishers do make me chuckle.

So imagine my surprise to now find myself owning a (very unpolished) truck.

Look, it’s not a dirt bike, so I haven’t rolled over on all the rural primary school ‘this is better than that’ arguments, but it’s a bit different, and as an outsider, it was a somewhat reluctant purchase.

Continued page 32>

The Isuzu SBR tipper.

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32 // MACHINERY & PRODUCTS

< Continued from page 31

As part of my effort to replace my local friendly disappearing earthmoving contractor, I spent a total of about an hour trawling the dungeons of Facebook and Gumtree to find something that would carry the dirt from my backhoe bucket to my shed site. As cheaply as possible.

Somewhat dangerously, I ended up with only one suitable-looking candidate for inspection the next day, and thus found myself inspecting an old Isuzu SBR tipper.

It had been languishing on Facebook for over a month, and in the photos appeared to have been languishing under some trees for even longer. But in person, things turned pretty quickly.

The vendor was one of the increasingly rare types that is willing to be helpful and honest in exchange for accepting your money, and pointed out straight up where the exhaust was missing a section and the radiator had a cracked hose.

The cab was rusted out to the point that it’ll never be re-registered, but it also had every fixture intact, a NSW street directory from the first owner, and more tools and non-critical spares than my very stationary workshop.

Sensing that this was a definite fit for my collection of Grunt paraphernalia, I bought it on the spot, and haven’t been disappointed.

With the leaky radiator it drinks more water than fuel, brake fluid is a definite consumable,

and takes a while to wake up in the morning.

But it’ll haul its weight in clay fill, and the brakes will put you through the windscreen if you need to stop in a hurry.

Cosmetically, it hasn’t improved; I might’ve smashed the tail lights rocking it out of a slippery situation or two, and had to give it a shunt with the backhoe more than once as well.

On the other hand, it ‘keeps on trucking’, as we truckies say. The dropside tray and standard towball (not very truck like, I know) mean it’s perfect for carting hay as well as fill, and the short term onward sale is looking further away.

After all, it cost less than most farm trailers, and unlike any tractor I can afford, is also (minutely more) passenger friendly.

Old mate told me that the SBR was ‘the truck that made Isuzu in Australia’, and whilst that felt like taking it a bit far at the time, funnily enough it seems to be the case.

At a time where other machines have been falling to bits, it’s been nice to have something that’s up to some heavy lifting.

I haven’t quite priced up a wheel nut polisher yet, but I have to say old farm trucks have earned a newfound fondness. Just don’t tell those kids from school.

• John Droppert has no mechanical qualifications whatsoever, but has been passionate about tractors since before he could talk and has operated many different makes and models in a variety of roles for both profit and fun.

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DAIRY NEWS AUSTRALIA APRIL 2018

MACHINERY & PRODUCTS // 33

New mixer wagon a step forward for Kuhn THE KUHN Profile 24.2 DL double-auger mixer

wagon is brand new to Australia¦—¦and with it comes some special features designed to transform the speed and efficiency of any feed delivery system.

Kuhn product specialist Tom de Greenlaw said feeding systems employing a tractor and bucket, a silage cart, or even some other types of mixer wagons can be time-consuming to use, and uneven in their feed delivery capabilities.

“These less-than-optimal methods for feed delivery can result in issues like aerobic spoilage, which can lead to nutrient loss, and feed wastage, resulting from patchy distribution,” he said.

“Kuhn’s Profile 24.2 DL mixer wagon can eliminate both issues, delivering livestock feed quickly and efficiently, minimizing wastage via optimal distribution.

“This machine is a lot wider at the base, with a lower height and an integrated chassis, making it much stronger and more robust than some lighter machines.

“In addition, its hopper is pressed, creating a more consistent mix, for better overall nutrition. “Plus, there are two scrapers on the bottom of the auger, for faster operation and more even delivery.”

Mr de Greenlaw said the new mixer has a patented weighing system, “which guarantees an exceptional level of precision”.

“It’s been designed to mix large volumes of feed accurately and effectively.

“Feed is distributed directly by chute¦—¦either right and/or left¦—¦and the wide hatch ensures rapid, regular distribution, even with fibre-rich feed.

“Considering its size, this is also a relatively low-horsepower machine, which means that farmers won’t need a huge tractor to run it.

“There’s also a 2-speed gearbox, meaning that you can bump it into a higher gear, for a full cleanout of the mixer.

“And this mixer also has a programmable weighing system, which offers either a ‘simple’ mode for weighing quantities loaded and distributed, or a ‘programmable’ mode for more comprehensive nutrition management.”

Mr de Greenlaw said extra knives can be added onto the augers, enabling operators to chop feed more finely, if required.

“The machines also have two hydraulic counter knives for ease and convenience. Plus, the brakes are hydraulic, making the mixer much

easier to maneuver, even across hilly ground.

“It also incorporates an integrated oversized chassis, ensuring that it can handle all of the torsion effects generated by the hopper, even when

the terrain is rough.

“Essentially, the design ensures that the whole unit retains sufficient ground clearance at all times.”

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DAIRY NEWS AUSTRALIA APRIL 2018

34 // MACHINERY & PRODUCTS

Mahindra unveils seven new models TWELVE YEARS after its introduction into

Australia, Mahindra has delivered seven new models at a dealer conference on the Gold Coast last month.

Customer acceptance of the Mahindra Max sub-compacts has played a solid part in the brand’s position in the 0–50¦hp segment of the Australian market, and now two new variants of the Max have arrived¦—¦Max 28 and Max 36.

Both have 3-speed transmissions with simple hydrostatic foot control, sturdy builds and class-leading lift figures from their Australian-built 4-in-1 buckets.

Both models are built in Japan, in Mahindra’s new Mitsubishi-Mahindra plant. Max 28 HST starts from just $26¦990 with loader and 4-in-1 bucket.

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OUR UNIQUE FEATURES OUR UNIQUE FEATURES  Our twin ram lift system capable of lifting bales up to 1300 kg and gently 

      

Our twin capable of lifting bales up to 1300 kg and gently places theram bale lift intosystem the chamber. places the bale into the chamber.

Roto cut and fine chopped bales can be held up over the chamber to remove Rotoand cutwrap and fine chopped bales can be held up over the chamber to remove net net and wrap Wide dual sided feeding cradle, heavy duty roller chains and protected shafts Wide dual sided feeding cradle, heavy duty roller chains and protected shafts to minimise wrappage. to minimise High torque wrappage. hydraulic motors with 1 ¼ output and 40mm drive shafts High hydraulic motors with 1 ¼floatation output and 40mm shafts Heavytorque Duty axles and hubs with wide tyres ( on drive trailed models ) Heavy Duty axles and hubs with wide floatation tyres ( on trailed models )

Rounding out the product release at the top end are the all new larger 80¦hp and 92¦hp tractors¦—¦the Mahindra 7580 and 7590.

The company says these are ideal for primary and secondary tillage, livestock operations, crop protection, haulage and loader applications and a myriad of other basic field applications.

At the heart of both machines is a turbocharged intercooled 4 cylinder in-line diesel designed for three things; reliability, fuel efficiency and a big flat torque curve.

Both models feature twin remotes, twin-speed PTOs and even heavier builds for greater traction and longevity.

These models will be rolled out progressively throughout 2018.

WITH OUR RANGE OF 3PTL, 2 BALE TRAILED, WITH OUR RANGE OF 3PTL, 2 BALE TRAILED, TROUGH AND THE NEW MULTI BALE FEEDERS TROUGH AND THE NEW MULTI BALE FEEDERS

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

STRENGTH / QUALITY / PERFORMANCE STRENGTH / QUALITY / PERFORMANCE

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

5625 1522 5625 0418 1522 515 510 0418 515 510CRT, DROUIN 3818 86 ROBERTS 86 ROBERTS CRT, DROUIN 3818 Mahindra mForce 100P tractor.

Dairy Research Foundation 2018 Annual Symposium 17 - 18 July 2017 at Sydney University, Camden NSW

Revitalising Dairy Production With focus on calf and heifer rearing plus some of the best farmers and innovators in the Australian dairy industry!

WITH KEYNOTE SPEAKER: calving management, feeding pre and post weaning, pros Dr Robert “Bob” James One of the biggest names in calf and heifer rearing in the American dairy industry!

Professor Emeritus at Virginia Tech University and director of Down Home Heifer Solutions, Bob represents decades of research, extension and oneto one work with dairy growers in the US. He brings to the Symposium the very latest on dry cow and

and cons of different calffeeder and individual-group housing systems, accelerated growth on calf and heifers… and much, much more!

Program Includes two conference sessions on day 1 with leading international and local speakers; the traditional symposium dinner; and a field day with our Emerging Scientists programme on day 2.

REDUCED ADMISSION FEE FOR DAIRY FARMERS AND STUDENTS

Ticket sales open soon. Register your interest now!

To Register your Interest: Phone: (02) 8089 1388 Email : tara@ejmevents.com.au Online: www.drfsymposium.com.au

The NEW Benchmark in Calf Milk Replacers

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