MURRAY REGION
Cream of the crop at Dairy week PAGE 6
Youth takes centre stage
“Never mind the beer, where’s the fresh grass?” this Jersey could be saying while getting prepared for her presentation at International Dairy Week.
WITH RECORD youth entries in this year’s International Dairy Week, the five-day event was an opportunity for future stars of the dairy industry to show their cattle. Many of the entrants, such as 15-year-old Hannah Dee
from Cohuna, have developed strong bonds with their cows, with the competition an opportunity to display the months of hard work that have gone into preparing for the competition.
DAIRY NEWS AUSTRALIA FEBRUARY 2018
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Chairman’s message
Looking forward to a new year I HOPE you all had a merry Christmas and an enjoyable New Year and are now psyched up for a successful 2018. I’m sure there will be challenges ahead, but with careful planning and preparation I’m sure the correct outcome will eventuate. To manage a successful dairy operation requires a complex array of skills. All too often we concentrate on the day-to-day activities and neglect the background preparation and risk mitigation strategy required — I’m no exception. Murray Dairy is running two farm business courses in the coming months — Dairy Farm Business Fundamentals and Dairy Farm Business
Analysis — to assist in developing your knowledge in this area. The courses are run throughout the region, so contact the office or check on our website for more information. Workplace safety inspectors across Australia are increasing the number of dairy farm inspections as part of a campaign to improve farm safety. Some of the key areas they will focus on include: farm employee inductions, quad bike safety, milking operations, belts and guards, chemical use and storage and confined spaces. Dairy Australia has put out a great tip and tools page to assist farmers to prepare for such
a visit. Find it at: www.thepeopleindairy.org.au/ announcements/preparing-for-safety-inspection I wish to take this opportunity to congratulate a former chair of Murray Dairy, Jeff Odgers, on his new role as the chair of Dairy Australia. Jeff is, and will always be, a passionate dairy farmer and supporter of Murray Dairy in all he does. Murray Dairy has had a long and proud history of farmer representation in key positions across our industry representative bodies. The Gardiner Dairy Foundation, with assistance from Murray Dairy, provides up to five
positions for successful individuals to participate in a range of leadership programs. If you would like more information on these programs, please contact the office or visit our website; interviews will be held in the next few months. All the best for the coming year, and remember, this is our industry — it’s a great industry and it will only improve with the efforts of us all together. • Rick Cross Murray Dairy chair
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MURRAY REGION // 3
Newcomers quickly find their feet LORETTA AND Allan Warren might be relative newcomers to the dairy game — they ventured into the industry in 2009 after spending years running a plumbing business — but they certainly haven’t been resting on their laurels. The couple milks 600 split-calving Friesian and crossbreed cows on 620 ha near Kyabram. They initially started out on a smaller 200 ha property but moved to their current farm in 2011. “We moved here because we could consolidate our farming business,” Mrs Warren said. “At the time the Connections program couldn’t guarantee water supply and, because this farm was located on a backbone channel, it offered us water security which was essential for our future.” The farm was previously used for cropping so it offered up a blank canvas, although it did have an old 50-unit rotary dairy which has been refurbished. Twelve months ago, the rising cost of electricity prompted the couple to install a 40 kW solar panel system on the roof of the dairy. The system consists of 160, 260 watt panels. They chose not to install battery storage and may do that at a later date. “We investigated solar for a couple of years before we went ahead — it is quite a significant investment, but it is an investment that will well and truly pay for itself over time,” Mrs Warren said. It costs the Warrens about $13,000 in repayments annually and they have saved about $8500 off their power bill this year. Mrs Warren did expect the savings to be higher, but there were a few hiccups with the initial solar start-up which impacted on solar usage.
Chief calf rearer Maddie Glad does a great job of managing the calves from birth through to weaning.
The afternoon milking is usually started by 3 pm, which takes full of advantage of the afternoon sun. “We have always milked early as that gives our employees a chance to spend time with family and friends. Now, with solar, we have the extra bonus of utilising the sun and our summer milking is very low cost and with the price of power set to go up in the future, our savings over time will be even greater,” Mrs Warren said. The Warrens recently completed an energy audit, through funding from Sustainability Victoria, and they are looking at the opportunities to reduce energy consumption. “We are certainly looking at the audit’s recommendations and utilising the 1:1 funding available for putting in place any of the recommendations,” Mrs Warren said. She said solar power fitted in with their green ethos for dairying by reducing their greenhouse gas emissions. “We love dairy farming and our cows. We place a lot of emphasis on healthy soils, healthy bugs and healthy grass, through our composting program, which produces fewer weeds and helps with water retention and drainage. We aim to look after our land and ecosystems and we have a number of tree plantations and wildlife corridors.” The Warrens have no regrets about embarking on a dairy career later in life and, in preparation for the big change, reared 150 heifer calves so they had a herd when they started. Mr Warren grew up on a dairy farm and it was always a dream of his to end up back on the land and Mrs Warren has surprised herself by how much she enjoys the demands of life on a dairy farm. “It is interesting that’s for sure,” she laughed. “I feel a real sense of achievement growing a clean, green product for consumers. Of course there are ups and downs and challenges but at the end of the day the buck stops with us and we really enjoy the work we do and the dairy industry.” The Warrens are focusing on producing as much home-grown fodder as possible and place a lot of emphasis on caring for their stock and providing a good work environment. Most of the staff has been employed with them for between two and seven years and they are viewed as an integral part of their business, saying “without them we cannot move forward”. Due to the current water climate, the Warrens are gradually moving away from permanent pasture and instead are focusing on annuals and crops to assist with water efficiency. “We have been on the farm for six years and this is the best harvest year we have had. So far we have conserved around 1400 tonne and we have some maize and sorghum planted for summer.” Mrs Warren said receiving 120 mm of rain in December wasn’t ideal and about 25 ha of their summer crop was affected. “We are hoping the damage is only minimal.” Mrs Warren is the secretary of the West Goulburn UDV/VFF branch and firmly believes in the work the UDV/VFF does. “Our branch aims to keep all farmers updated
Farm owner Loretta Warren (left) with her reliable and capable worker Maddie Glad.
A 40 kW solar panel system was installed on the rotary dairy 12 months ago.
The split-calving Friesian and crossbreed herd of Loretta and Allan Warren.
on opportunities and threats to our industry, and provides us with a channel to voice our views and needs,” she said. “I would like to see more farmers attending our meetings and investing in a UDV/VFF membership. After all it is our future. “Many farmers don’t realise the benefits our representative bodies negotiate on our behalf, like saving the diesel rebate and primary pro-
ducers’ rego, along with providing a strong voice around the many voices of animal and environmental activists. “They do a lot of behind the scenes work to ensure primary producers get some breaks and I feel they are well worth supporting.” Looking to the future, the couple may increase the herd to 700 and is continually looking at ways to improve the business.
DAIRY NEWS AUSTRALIA FEBRUARY 2018
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Are you driving your dairy farm without a dashboard? AT THE recent Murray Dairy Accounting Day, Murray Dairy teamed up with Sofra Partners Chartered Accountants to present the ‘why, how and what’ of business management on dairy farms. Mehdi Najmi, an accountant with Sofra Partners, described how management accounts were like the dashboard for your business. They provide meaningful communication with your backers, provide ability for quicker initiation of contingency plans and allow tracking to ensure a business is stable or growing for the next generation or sale. Mr Najmi said overall profits indicated how healthy a business was, cash was the paramedic ensuring it could still function and equity was how much it could withstand. He outlined how banks were after more information and faster turnaround when times were tough. Through good farm business management this could be done confidently and quickly while providing them with confidence in your management.
Bankers are after different calculations, indicators and valuations than the Australian Tax Office and Mr Najmi detailed the variation in expense categories, depreciation and asset value between tax and management accounts. He said Dairy Australia made it easy with the Dairy Standard Chart of Accounts. It gives an easy-to-follow guide of what qualitative and quantitative data to track, how to categorise expenditure, allows easy calculation of key ratios and consistency/confidence in comparing against other dairy businesses. Sofra Partners’ director and senior partner Terry Sofra applied his 30 years of practical business knowledge to dairy businesses. Mr Sofra highlighted how 80 per cent of all businesses, regardless of industry, failed in the first five years and the importance of knowing what stage your business is at: emerging, prominent, irrelevant or obsolete? He said a successful business needed momentum. But the sum in business isn’t ‘mass times velocity’, it is: (A + F)* C where:
‘A is Activity’ (if in doubt or in charge use the information you have and do something); ‘F is Focus’ (stay in touch with what you want to achieve, how to get there and ensure you are completing the task that make a difference) and ‘C is consistency’ (discipline and routine- success doesn’t happen quickly it is the accumulation of doing the right thing most of the time). Mr Sofra explained how every business had challenging and trying periods but knowing what your defining values and driving purpose are would keep good businesses moving forward. Trent Hadfield, a partner at Sofra Partners, noted how accounting had changed dramatically over the past four years and tipped the next four years would see even faster change. This is largely driven by cloud computing giving farmers and accountants instant accurate information and allows everyone to work off a single data set. The technology available now means instant analysis of performance through access to a network of analysis pro-
grams — gone are the days when a business can go broke by the time bankers and accountants could view the books. Mr Hadfield said these programs were userfriendly and with limited tuition they have clients with little background in technology analysing their businesses in a way that used to require significant time and expertise to manage. Working intimately with dairy farmers for his entire career, Mr Hadfield said this was the toughest he had seen it for farmers. “Everyone is running their business better but margins are tighter than ever,” he said. “ The downsides of dairy are it is capital hungry, price taking, low profit certainty and often you’re it — you carry the stress and do all the work. “However capital growth, profit in the long term, you’re the boss and love of dairying are clear reasons people still love doing it and make it work.”
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
MURRAY REGION // 5 HEFTY FINE FOR ANIMAL CRUELTY A 65-year-old dairy farmer from Cooma, who was recently convicted of cruelty charges at Shepparton Magistrates’ Court for failing to feed his cattle, has escaped imprisonment after an appeal was lodged. The farmer pleaded guilty to a total of 19 charges, including 17 charges of aggravated cruelty, under the Prevention of Cruelty to Animals Act 1986. At the time the farmer received a sentence of three months’ imprisonment and was fined $2500 plus service costs, and the imposition of a conditional disqualification order for five years. However, an appeal was lodged and the case was heard at the Wangaratta County Court in early December, when the farmer made a submission that being the sole person caring for his dairy herd, an imprisonment sentence was not a viable option for his animals’ continued care. The Cooma farmer appealed to have his imprisonment sentence converted to a substantial fine, which was granted to the tune of $50,000. The judge said there could be no doubt this was a serious case of animal cruelty, and when he’d first read the summary of facts his initial impression was the sentence imposed was light.
Agriculture Victoria district veterinary officer Hannah Delahunty was called to give evidence on the facts alleged. Dr Delahunty said Agriculture Victoria officers found a herd of 90 dairy cattle in an emaciated body condition, with a number of cattle dead or too weak to stand in June 2016. “The pasture available to the cattle was insufficient to meet the nutritional needs of the herd, which included milking and pregnant cows,” Dr Delahunty said. “Throughout the period of offending, cattle continued to go down through weakness and were not provided with appropriate treatment.” Agriculture Victoria officers euthanased a number of cattle that were down and unable to rise. In submissions to the court, prosecutor Andy Moore handed photos to the County Court to be examined. On top of the $50 ,000 fine, the farmer was imposed with a conditional disqualification order for five years, and ordered to pay service costs. Dr Delahunty said this was a reminder to all farmers that poor seasonal conditions were never an excuse to allow their livestock to become emaciated and starve to death.
DAIRY NEWS AUSTRALIA FEBRUARY 2018
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Champions crowned at Tatura Park INTERNATIONAL DAIRY Week welcomed more than 195 exhibitors from across the country to
Tatura Park from January 21 to 25. With record youth entries and more than 1100 entrants across the six breeds, the event saw Elmar Holsteins’ cow Elmar Goldwyn Jessica 11 named International Dairy Week Grand Champion. National Jersey Show Results Supreme Champion Cow: Bushlea Van Fernleaf 10, owned by F. and D. Borba, M. Senecal, C. Fisher, A. and J. Vander Meulen, B. Cullen and J. Hanford of Koonwarra, Victoria. Champion Cow: Bushlea Van Fernleaf 10, owned by F. and D. Borba, M. Senecal, C. Fisher, A. and J. Vander Meulen, B. Cullen and J. Hanford of Koonwarra, Victoria. Intermediate Champion: Cairnbrae Valentino Daisy 16, owned by A. G. and J. A. Carson of Irrewillipe East, Victoria. Junior Champion: Rivendell Principal Tammi, owned by M. and I. Cole of Wagga Wagga, NSW. National Holstein Show Results Supreme Champion Cow: Elmar Goldwyn Jessica 11, owned by Elmar Holsteins of Leitchville, Victoria. Champion Cow: Elmar Goldwyn Jessica 11, owned by Elmar Holsteins of Leitchville, Victoria.
Intermediate Champion: Avonlea-YF Windbrook Cinnamon-ET, owned by Cinnamon Partners of Finley, NSW. Junior Champion: Sunvale Lotus Donna, owned by Sun Vale Holsteins and L. Orton of Yarroweyah, Victoria.
National Holstein Show Best Udder winner Hawova R Reginald Tamie owned by Shaw, Clarke and Sieben from Torrumbarry is presented with the award by Australian Dairy Farmers’ Jennifer Shaw, Phillis Stephens and judge Kiichi Matsushima.
National Jersey Show Champion Cow Bushlea Van Fernleaf owned by F. and D. Borba, M. Senecal, C. Fisher, A. and J. Vander Meulen, B. Cullen and J. Hanford. Pictured (from left) are judge Pat Nicholson, Alex Walker from Semex and handler Matt Templeton.
National Ayrshire Show Results Grand Champion: Parkville Burdette Katie, owned by James Dillon of Waaia, Victoria. National Illawarra Show Results Grand Champion: Landovery JR Joan 982, owned by Gorbro Holsteins and C. Rapley of Cohuna, Victoria. National Brown Swiss Show Results Grand Champion: Tandara Jolt Sarajevo 55, owned by Tandara Brown Swiss of Dingee, Victoria. National Guernsey Show Results Grand Champion: Rockmar Miami Graceful, owned by M. and R. Shea of Bacchus Marsh, Victoria.
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Elmar Holsteins’ cow Elmar Goldwyn Jessica 11 was awarded International Dairy Week Grand Champion at Tatura Park. The seven-year-old Holstein is pictured (from left) with owner Deanne Hore, Kelsie Hore, owner Steve Hore, Marty Hore and Brady Hore, of Leitchville. Elmar Goldwyn Jessica 11 was also awarded Champion Cow and Grand Champion in the National Holstein Show.
Cairnbrae Valentino Daisy 16 owned by Janine and Alan Carson (far right) led by Brad Gavenlock and pictured with judge Pat Nicholson was named Intermediate Champion in the National Jersey Show.
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MURRAY REGION // 7
Strong showing at dairy week
a u s t r a l i a
Competitors from the Murray region were out in force at International Dairy Week in Tatura from January 21 to 25. With competitors participating in all levels of competition, from youth to senior shows, there was plenty of success enjoyed by the region.
Jessica and Brad Gavenlock from Tallygaroopna brought a total of 26 cows with them for dairy week and were hopeful they’d deliver some strong results at the five-day event.
Andrew Cullen from Tatura puts the final touches on this Holstein ahead of the competition.
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Zoe Hayes from Stanhope was working hard in the stalls as temperatures in Tatura peaked at 41°C on Sunday, January 21.
Springvale Pride 29, pictured with Rory Shepherd from Nathalia, enjoys a much needed break from the sun.
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Nakia Broad, 12, and friend Charlotte Andrew, 11, from Katunga get involved in the preparations, helping to sort the halters.
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
8 // MURRAY REGION
Good lucerne needs good management THE ACCELERATING Change Lucerne Masterclass drew a large crowd of dairy farmers, contractors and service providers to Scott Fitzgerald’s farm at Tongala in December. After a few days of heavy rain, the sun was out, making it the perfect opportunity to get into the paddock to have a look at how the lucerne was performing above and beneath the surface. Presenters included agronomist Luke Nagle, soil scientist Christian Bannan, Australian Fodder Industry Association chair and AusWest Seeds product development manager Frank McRae, Agriculture Victoria research agronomist Kevin Kelly and Accelerating Change project officer Harriet Bawden. Dairy farmers in the region use lucerne as a protein-rich summer feed and to fill feed gaps in late spring or autumn. Having a higher tolerance to water stress and higher irrigated water productivity than perennial rye-grass pastures, it is an attractive feed source for those managing uncertainty in the water market and climate. However, for optimal quality, yield and persistence, lucerne must be managed well. Getting everything right before lucerne goes in the ground is critical to not only establishing a great stand but also the highest possible return on investment.
Planning and preparation is key Preparation for lucerne requires careful thought about crop rotations, weed management and paddock selection in the preceding seasons. Once a crop is in the ground, there is limited opportunity to remediate soil constraints or manage broad leaf weeds. Mr McRae and Mr Nagle said five years’ production from some lucerne varieties under good management and with the right seasonal conditions was achievable, but attention to detail in preparation was key to getting this result. A critical first step of preparation is paddock selection. Lucerne is intolerant of wet soil and poor drainage. By selecting the right bays on his farm, with more freely draining soils and optimal surface drainage, Mr Fitzgerald has seen improved lucerne establishment and yield compared to longer and more uneven bays sown previously, which had higher incidences of waterlogging. Grazing of lucerne must be carefully managed to avoid damaging the stand and may require taking cows on and off within a short timeframe, particularly when it’s wet. Allocating paddocks close to the dairy is best for flexibility in grazing management. For rumen consistency, sow enough lucerne to get a grazing every day through summer (about a 25-day rotation). One of the key focuses of the lucerne workshop was to identify subsoil constraints and discuss remediation. Two different soil pits demonstrated the impact of soil preparation on root development and resulting plant production. A hard pan layer is commonly found throughout the Murray region, especially in duplex soils under flood-irrigated, grass-based systems. Where the soil had not been ripped to penetrate this layer, roots were noticeably shorter and fewer. This can lead to production penalties. It is important to diagnose any subsurface constraints before sowing because by the time production impacts are noticeable, the options for remediation are often limited or not practical or economical to carry out.
Long-term planning is important when introducing lucerne to the feedbase. Paddock rotations can help to control weeds such as couch grass, white clover, wireweed and capeweed, which are most commonly a problem in lucerne. Converting from old perennial pastures into a new species such as lucerne can bring up a multitude of weed issues. Pastures should be sprayed-out well in advance and ideally substituted with a cereal in autumn (if spring sowing) to allow for broadleaf weeds to be controlled before lucerne is established. This will not only provide an opportunity to clean and prepare paddocks in advance, but help to open the soil for lucerne root development. Mr McRae discussed the importance of considering what is grown after lucerne. It is not recommended to follow lucerne with another lucerne stand, as it significantly increases the risk of disease, weed and pest issues. As a deep-rooted legume, lucerne also helps to open the soil and to fix nitrogen, so it works well to follow it with maize or a cereal, to take advantage of good soil fertility and structure.
off’ over irrigation seasons (within reason) and recover to full production. This highlights how flexible lucerne can be in an irrigated farming system, as short-term irrigation strategies to reduce water use can be managed to prevent long-term yield penalties or persistence of the stand. When it comes to water, the thing to remember about lucerne is that it doesn’t like wet feet. Sow lucerne in well-drained paddocks and keep an eye on the rain radar as autumn approaches — it’s best to hold off irrigations at that time if it looks like rain is coming.
Select a variety for your system
Understand soil’s physical and chemical properties Even when agronomic management on the surface is good, less than ideal subsoil conditions will compromise the performance of lucerne. The best way to get a grasp of any soil constraints that may inhibit production is to dig a hole and have a look at what’s going on beneath the surface. Chemical soil tests will not be able to diagnose all subsoil constraints that might be present. Participants at the workshop examined soil pits, enabling them to see the depth of the different soil horizons and look for the presence of plant roots and soil moisture, which are indicative of soil and crop performance. To assess soil structure and condition in a lucerne stand, look not only at the depth of the tap-root and how far it can push down to find water, but also for the smaller network of roots that source most of the plant’s nutrients. The more access the plant gets to nutrients, the more efficient it can be with available water. Mr Bannan identified dispersive soil on the site, meaning the soil has a tendency to disperse, crust and seal-up, impeding the movement of water and roots. Dispersive soils can cause waterlogging, which is detrimental to the survival of lucerne. Dispersion can be remediated with gypsum, which can be applied prior to or at sowing to achieve some soil incorporation. A dispersion test is easy for anyone — it requires placing an aggregate of soil from the desired soil horizon in water and looking at the response. Correct diagnosis of your specific soil conditions is critical to ensure you can address the problem efficiently and cost effectively.
Incorporate organic matter to improve soil structure Where the need for ripping has been identified, rip to a depth that will shatter the identified physical barrier. Ripping can help to shatter hostile soils and subsoils but heavy soils (especially those that slake or disperse) will settle back down if the spaces or ‘rip’ that is created through tillage are not filled with organic matter or incorporated with necessary soil ameliorants such as gypsum
The soil profile in Scott Fitzgerald’s lucerne. The top line shows the depth of soil disturbance reaching only halfway through the ‘A’ horizon (second line), the third line shows the ‘B’ horizon and the circle is root depth.
and lime. Organic matter and ameliorants are critical for stabilising soil aggregates and allowing plants to extend their roots throughout the soil, as well as allowing the movement of water and air. Soils with a high clay content can also be broken open through a natural wetting and drying process which does not often happen in irrigated systems. Increasing irrigation intervals or drying-off bays completely will allow the soil to enact its drying cycle. One way to do this is to include dryland crops that are not irrigated in spring. This also provides an opportunity to incorporate organic matter.
There are an increasing number of lucerne varieties becoming available on the Australian market, with some to hopefully arrive from the United States in the coming years. Mr McRae spoke of the ongoing research and development to improve disease resistance, nutritional quality (leaf to stem ratio and lignin quantity in stems) and persistence in lucerne. Lucerne varieties should be selected for their traits (especially disease resistance) and the suitability for your farm system, purpose and growing conditions. Although lucerne is most active in spring and summer, there are different dormancies available on the market, reflecting their growth habit during the colder periods. The more ‘dormant’ the plant, the earlier growth will slow in autumn and the later it will pick up in spring. Dormancies are numbered three to 10, with three having the shortest growing season and 10 having the longest. Mr McRae suggested lucerne with higher dormancy (‘winter active’) may get two to three additional grazings or cuts for the season but fewer seasons out of the stand, due to potential damage caused by intensive grazing. Although lucerne management can be challenging in this environment, its water use efficiency, flexibility, perennial nature and nutritional characteristics make it an important component of the dairy feed base in the region. Varieties and knowledge of the plant continue to improve, making management easier. The resounding message of the Accelerating Change Lucerne Masterclass was that planning and preparation, with attention to detail, will ensure the best outcomes for lucerne production.
Too much water is more damaging • By Amy Fay and Harriet Bawden, Accelerating Change, Murray Dairy than too little Ms Bawden and Mr Kelly highlighted the research that had been conducted in the region looking at the impact of different irrigation strategies on lucerne. Lucerne provides a good alternative to other perennials, such as rye-grass, where water availability and price is a concern. Research shows that the production of lucerne is linearly related to water use (to the point of meeting plant water requirements). Irrigation management of lucerne can be more flexible than the irrigation management of some alternative forages. Lucerne is able to survive in water-limiting conditions, minimising water usage during stress and becoming semi-dormant. It has a strong taproot system which enables it to source water from depth. The soil pits under Mr Fitzgerald’s lucerne revealed roots at 80 cm to 100 cm, although they have also been known to extend deeper. Irrigation water to lucerne can be ‘switched
Lucerne must be managed well to reap its many benefits.
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Coming out the other side
CAPTIONS (GEOFF TO SELECT/NAME PICS): Luke Nagle demonstrates how lucerne root development can be impacted by soil condition.
line), the third line shows the ‘B’ horizon and the circle is root depth.
Participants hear from Luke Nagle and Scott Fitzgerald about the current lucerne stand. The soil profile in Scott Fitzgerald’s lucerne. The top line shows the depth of soil disturbance reaching only halfway through the ‘A’ horizon (second
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
10 // MURRAY REGION
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No matter which hat is worn, it is important that leadership, management and operational tasks are all directed towards the long-term goals. • By Mike Stephens, is a consultant with Meridian Agriculture and works with farming families in developing business strategies to enable growth and succession.
term direction of the business, the CEO to look at the bottom line and the operations managers to actually do the work. In a dairy business, individuals will often fill a number of roles. It is therefore important for an individual to know which hat they are wearing at any given time.
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and equipment, animals and, in some cases, water for irrigation. Management of each of the areas of physical capital requires appropriate knowledge and a level of skill. The demands on the skill level are increasing as animals become genetically superior, machinery becomes technically more sophisticated and the management of pastures, grazing and water becomes more critical. The financial capital includes the investment the farm family has in the business, the carry-on funds that are required throughout the year and any borrowing for farm expansion. As a family you may be a patient investor, but the bank will not be patient if you cannot meet your commitments. Often those commitments go beyond paying the interest on time. The relationship with the bank will be of upmost importance if you want to borrow to expand. In any business other than a farming business each of those areas of management — human, financial and physical — would have a senior officer in charge. In a farming business it is usual for all of the roles to be undertaken by one person in the farming couple. Within any business, including a family farming business, the roles and responsibilities of the board, the chief executive officer, the operations manager and operators, need to be clear. The board has the responsibility to look at the long-
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THERE ARE a number of future choices open to farming businesses. In short those choices are: retire, die, sell (in any order); hand over the farm to one child with the others unhappy; hand over to one child with all happy; build a multi-generational business; and build and sell a going concern. Whichever path you take it will be useful to have an understanding of the three sources of capital in your business. These are: ■■ Human capital. ■■ Physical capital. ■■ Financial capital. In a farm business, the human capital includes the farmer and the farm family. It is paramount to ensure they have adequate food, clothing and education. Perhaps getting them to start their own business or bringing them into the family business is important. One of the most common factors for a farm business faltering or failing is that the employment relationships are unclear. A lack of clarity can lead to communication breakdowns and the souring of intergenerational relationships. From a human perspective, in addition to family members and other direct employees, the contractors and professionals (like accountants and lawyers) who are used by the company also need to be included as part of the team. The physical capital includes the land, plant
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
MURRAY REGION // 11 PHONE RECEPTION IS POLITICAL BLACK SPOT While the NBN is being rolled out across the nation, Katunga farmers are still waiting for mobile phone reception. The district, north of Numurkah, has experienced poor coverage for a number of years and, despite promises by the Federal Government in the lead-up to the federal election, is still waiting to receive funding after being labelled a ‘priority location’ more than 18 months ago. The Victorian Government has slammed the Federal Government’s Mobile Black Spot Program, vowing to pull $11 million in funding from the third round of the program and go it alone. Victorian Innovation and Digital Economy Minister Philip Dalidakis said the program failed to properly consult when choosing sites and there was complete lack of transparency about how sites were chosen, sparking concerns site selections were fuelled by political interests. Dairy farmer Daryl Hoey struggles to get reception anywhere on his 150 ha Katunga property or in town and holds grave concerns for what the poor reception could mean in an emergency. “It’s an essential service, it’s not a luxury,” Mr Hoey said. “We are entitled to first rate communication services, especially when it comes to life and death situations. “We’re so used to promises being made by governments that we don’t
take notice of it. It’s just another hollow promise.” Katunga resident Paula Hansen was unsure whether the Victorian Government’s decision would deliver mobile towers to the town. “We would love to think that that might happen but we won’t be holding our breath,” she said. More than 140 mobile towers have already been funded in Victoria under the previous two rounds of the Commonwealth program, and 79 of these are finished. VFF vice-president Brett Hosking said the Victorian Government’s decision “reeks of lunacy”. “We’re facing an uphill battle and the governments say all the time they want to help but unfortunately their actions don’t seem to reflect their words,” Mr Hosking said. “The outcome is more important than the politics.” Federal Regional Communications Minister Bridget McKenzie said the Victorian Government was playing “pure politics” and that regional Victoria would be worse off. Both Katunga and Gunbower were identified as eligible locations under the priority locations round of the Mobile Black Spot Program and will be assessed ahead of an announcement regarding which locations will receive funding, expected in the coming months.
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
12 // MURRAY REGION
Five tips for growing better maize FUTUREDAIRY’S Yarcia says management has a big impact on the profitability of a high input crop such as maize. “A profitable maize crop is achieved by optimising both yield and nutritive value,” Professor Garcia said. “Very high yielding maize crops are not necessarily the most profitable as they tend to be higher in fibre and therefore have lower nutritional value.” Prof Garcia has five tips for achieving a profitable maize crop:
Do not apply the full amount of nitrogen fertiliser unless you can ensure water will not be limiting.
If water is likely to be limiting, adjust nitrogen application. For example, N application at both pre-sowing and at V6 stage are highly recommended, but if you need to adjust, save the N for the V6 stage.
Time water application for greatest response. If irrigation water is likely to be limiting, resist the temptation to under-irrigate throughout the whole season. You’ll get a much better response to water by timing water applications to the critical periods at crop establishment (up to about six leaf stage) and the five to six week period around tasselling.
Match fertiliser rates to target yield. Aim to apply at least 80 per cent of nutrient requirements as fertiliser. Soil testing or tissue sampling is the best way to determine fertiliser rates. However, as a rule of thumb, high yielding maize crops remove 10–12 kg N/tonne DM/ha, 2–3 kg P/tonne DM/ha and 8–10 kg K/tonne DM/ ha grown
Time nitrogen applications greatest response.
for
Ideally apply in four stages (if fertigation method is available): pre-planting, planting, at 45 cm high (V6) and at tassel emergence (V12). If this is not
possible, split nitrogen application into about half pre-sowing and about half at V6. If a limited amount of nitrogen is available (for example, less than 120 kg N/ha) it is better to save it for around the V6 stage.
Adjust plant density to nutrient and water availability. Sow for a plant density of about 80 ,00 to 85,000 plants/ha if irrigation and fertigation (or pre- and post-sowing application of N) are available. “With full irrigation and fertilisation regimes we have found that higher plant density (100,000 plants/ha) results in higher yield but overall silage quality drops due to excess fibre content,” Prof Garcia said.
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
MURRAY REGION // 13
On track despite the heat IN MID-JANUARY 2018, the herd at the
Dookie dairy was producing an average of 30 litres/day of milk with 3.2 per cent protein and 3.8 per cent fat content. Pasture was being grazed on a 22-day rotation length. A mix of canola meal and pasture silage was being fed on the feed pad. Irrigation was being applied to pasture every seven to 10 days. Hot weather was a challenge and the cows were utilising shaded areas as required on hot days. Pregnancy testing of the spring calving cows was about to commence. The autumn calving cows will start to be dried-off over the
next few weeks. Ten hectares of sorghum was planted this summer as part of the pasture renovation program. Half of it is currently being grazed and the remainder will be made into silage. Up to the time grazing commenced, the crop received three irrigations and 25 kg nitrogen/ha when the crop reached 60 cm height. Feed analysis of the sorghum crop at 50 cm height in early January indicated it contained 19 per cent crude protein, 10.3 megajoules of metabolisable energy/kg dry matter, 55 per cent neutral detergent fibre and 31 per cent acid detergent fibre.
November 1
December 1
January 1
2017
2017
2018
Cow numbers
158
156
155
Kg milk solids/cow/day
2.2
2.1
2.1
Kg concentrate/cow/day
7.6
7.4
7.2*
0
2.6
4.7**
13.2
11.4
8.7
Area in rotation
55
55
55
Average milkings/cow/day
2.5
2.4
2.4
No. of failures/day
2.5
4
6
No. of cows got/day
15
15
15
Litres/machine/day
1750
1550
1540
Rumination minutes/cow/day
440
440
440
Dookie Dairy Report
Kg fodder/cow/day Pasture (KgDM)/cow
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
14 // MURRAY REGION
When is a dairy farm an avocado orchard? WHAT DOES an avocado have in common
with a dairy farm? Most people would say ‘absolutely nothing’ — unless you are Phil and Brendan O’Neill. The brothers are halfway through establishing an 8500-tree avocado plantation on their Barham dairy farm as a form of diversification. The dairy business milks 600 cows all year round, but the unreliable nature of the industry forced the brothers to look at additional forms of income. Brendan maintains the decision to grow avocados is Phil’s idea, because he is the numbers man of the business. “Phil is the ideas man and good with figures while I am the worker,” Brendan laughs. “We had plans to milk 1000 cows but we are hoping growing avos might be a bit easier instead,” Phil jokes. All jokes aside, the investment is significant and the brothers have used their dairy business to fund their new venture over the past few years. “Phil has been in the industry for close to 40
years and I have been in for 30 and it has always been up and down, but there seems to be more downs lately and you don’t know where you stand half the time, that’s why we have decided to give avocados a go,” Brendan said. The brothers purchased their current dairy property, Milverton, in 2000 after running a couple of smaller farms. They built a 60-unit rotary dairy just before the millennium drought hit. The herd is fed on an elevated 600-cow concrete feed pad with access to a shade shed, which was completed five years ago. The cows don’t graze any green pasture over summer. “The cows are comfortable and happy as Larry on the pad. Our animals are well looked after and that’s what it’s all about — having happy and content cows,” Phil said. They implemented a six-weekly calving pattern to help create a flat milk supply. Their land holding sits at around 485 ha and the milking platform is 280ha. The brothers grow annuals, cut silage and grow maize because they have found that works
Dairy farming brothers Brendan (left) and Phil O’Neill have decided to give growing avocados a go on their Barham property. They say the unreliable nature of the dairy industry has forced them to look at alternative income streams.
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MURRAY REGION // 15
The O’Neills’ avocado orchard with the shadecloth protection.
out the best for them in terms of management and water efficiency. “We changed to annuals during the drought and it worked so well for us we decided to stick with it over the years. We do grow maize sometimes but that didn’t work out for us this year,” Brendan said. The brothers planted their first stand of 2500 avocado trees on a 33 ha sandhill three years ago and they are halfway through planting 3500 this season. They are expecting to start harvesting next year, but managed to get about 100 avocados
this year. “The return per hectare from avocados will be better than anything else we could possibly grow on this block. We used to grow lucerne on the sandhill but we now think it makes better financial sense to buy the lucerne in and grow avocados instead,” Phil said. Trees cost about $30 each and infrastructure costs include six frost fans plus overhead sprays and ground level sprinklers. The frost fans cover a 150 m radius while the overhead misters are necessary to keep the trees cool during the long hot days of summer.
The brothers have also found a unique way to use their mixer wagon. It now has a dual purpose — they use it to feed a mix to the cows and they also fill it with compost and use it to quickly and efficiently mulch the trees. The compost is made from manure from the feed pad mixed with old hay and silage. “I actually never thought I would be growing avocados but I also never thought the dairy industry would turn out the way it has either,” Phil said. “It is a fairly significant investment but I am a big believer in never letting finance get in the way of getting a job done and it is important to do things right from the beginning, it saves you money in the long run.” “This is the best bit of dirt we have on our property and we wanted to really utilise it to the best of its ability to get the most out of it,” Brendan said. The brothers are not really sure what the future holds for them, but after decades of working hard on the dairy side of the operation, they are looking forward to slowing down — even if it is only a little bit. “We might sell the whole dairy operation and concentrate on avocados or we might just scale it right back and only milk 250. One of the kids is keen on the dairy side so we will just see what happens there,” Phil said. In the meantime, the business will continue plodding away. “Once the avocados start producing we will take a serious look at what the future holds for us,” Phil said.
One of the 5000 trees growing on the property.
Upcoming events Dairy Farm Business Fundamentals
Dairy Farm Business Analysis
Dairy Farm Business Fundamentals is a course for farmers wanting to:
Dairy Farm Business Analysis is a 3 day course for farmers wanting to:
• • • • • •
• Assemble analyse and interpret Farm Management Data • Enter data and analyse farm performance using Dairybase • Understand whole farm approach • Key elements of analysis • Setting Key performance indicators • Enter data and analyse farm performance using Dairybase
Have accurate information when you need it. Understand what makes cash and drives profit Make profitable operational decisions Improve cost control Manage risk and increase resilience Create a farm recording system that works for you
Wangaratta Date: Feb 20, 27 and Mar 6 Time: 10 am – 3 pm
For more information contact Murray Dairy (03) 5833 5312 admin@murraydairy.com.au murraydairy.com.au
Kyabram Date: Feb 21, 28 and Mar 7 Time: 10 am – 3 pm
Numurkah Date: March 8, 9 and 16 Time: 10 am – 3 pm Cohuna Date: Mar 13, 20 and 27 Time: 10 am – 3 pm Riverina Date: Mar 21, 22 and 29 Time: 10 am – 3 pm
Kyabram Date: Mar 14, 28 and April 4 Time: 10 am – 3 pm Numurkah Date: April 10, 24 and May 1 Time: 10 am – 3 pm
Riverina Date: Apr 11, 26 and May 2 Time: 10 am – 3 pm Cohuna Date: May 8, 22 and 29 Time: 10 am – 3 pm Wangaratta Date: May 9, 28 and 30 Time: 10 am – 3 pm
DAIRY NEWS AUSTRALIA FEBRUARY 2018
16 // MURRAY REGION
Focusing on the future JOHN AND Elise Pethybridge are approaching
the end of their two-year term as Murray Dairy Focus Farmers. They milk 250 cows off 154 ha at Whorouly in north-east Victoria, and joined the project to improve their business. With help from their support group they are well on their way to achieving their goals, including improving heifer rearing and pasture growth and utilisation. Mr Pethybridge said it has been an interesting and informative couple of years. “The first year of the project was very much down to survival because of industry conditions (milk price drop) and while it was stressful enough just getting through the year, the Focus Farm did help to keep us on track and it gave me the confidence to spend money and grow grass, despite the low cash flow,” he said. Mr Pethybridge said being a Focus Farmer meant you had to learn to take on criticism from your own support group. “Different people have a different insight into the way things can be done and while that may not always be right, it does make you look at things in a new light which is a good thing — part of the support group role is to speak their mind so you do have to have a tough skin and be open to criticism.” Mr Pethybridge said through the group, he
had paid particular attention to pasture growth and improving heifer growing rates. “Our dairy limits us to milking around 270 cows and land size to about 300 (cows) so I don’t think we will be looking at growing our business much more from where it is.” He said focusing on improving the genetic potential of his heifers enabled him to focus on quality animals over quantity. “We are using more and more genomics, sexed semen and culling which is going a long way toward improving the genetic merit of our herd. We are feeding them better and growing more grass has helped our business overall because it is the cheapest source of feed we can produce.” The Pethybridges have also spent a fair bit of time discussing with the group the calving pattern that best suits their business. After much deliberation and discussion they have come up with the following plan: ■■ The majority of the herd will be calved in autumn with the ultimate goal of becoming a total autumn calving herd, although the couple acknowledges it could take a while to get there. Minimising spring joining will also provide answers as to whether the business should/could go to single autumn joining. ■■ Autumn is the preferred calving time because they have fewer issues with herd
Whorouly dairy farmers John and Elise Pethybridge are approaching the end of their tenure as Murray Dairy Focus Farmers.
■■
health. Autumn calving commences March 20 — joining for 10 weeks includes six weeks of AI and four weeks of bulls. Spring calving starts August 15 — joining for four weeks, AI only. This allows spring cows to be dried-off before the tough winter
■■
period and takes pressure off the grazing platform while growth rates are slow. The main aim of spring calving is to get cows back into the autumn calving pattern and the aim of the spring herd is to manage fertility only.
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
MURRAY REGION // 17
Facilitator Phil Shannon addresses the group at the third Focus Farm meeting for the Pethybridge family. Some of the support group and visitors at the Focus Farm field day. ■■
■■
■■ ■■
■■
The couple aims to keep only 40 to 50 animals in the spring herd, with calving to be finished by September 15. Animals shouldn’t make it to a third joining and should be culled based on production before that happens. No heifers will be joined for spring. Over the next couple of years, the top spring calving heifers will be carried forward to calve in March — as 2.5 year olds they will be well grown-out. The couple will continue with a sexed semen program on heifers to maximise replacements and take advantage of the export heifer market. Looking at the Focus Farm project in general,
Mr Pethybridge said it had been a positive experience. “Elise and I took on this project to learn and improve our business and I think there is always an opportunity to get better and improve yourself,” he said. “I tend to internalise a lot of things so I am learning to communicate better. “Elise has taken on the financial burden of running the farm and she has had some great ideas and input and I think being involved in the project has given her a lot of confidence too. “I am glad we decided to take it on and have a go — the more you learn the more likely you are to succeed.”
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DAIRY NEWS AUSTRALIA FEBRUARY 2018
18 // MURRAY REGION
Diary dates February Dairy Farm Business Fundamentals
Tuesday, February 20 and 27; and March 6 Wangaratta Murray Dairy Dairy Farm Business Fundamentals
Wednesday, February 21 and 28; and March 7 Kyabram Murray Dairy
March Dairy Farm Business Fundamentals
Thursday, March 8; and Friday, March 9 and 16 Numurkah Murray Dairy
Dairy Farm Business Fundamentals
Tuesday, March 13, 20 and 27 Cohuna Murray Dairy
Dairy Farm Business Analysis
Wednesday, March 14 and 28; and April 4 Kyabram Murray Dairy
April
May
Dairy Farm Business Analysis
Tuesday, April 10 and 24; and May 1 Numurkah Murray Dairy Dairy Farm Business Analysis
Dairy Farm Business Analysis
Tuesday, May 8, 22 and 29 Cohuna Murray Dairy
Dairy Farm Business Analysis
Wednesday, May 9; Monday, Wednesday, April 11; Thursday, May 28; and Wednesday, April 26 and Wednesday, May 2 May 30 Riverina Wangaratta Murray Dairy Murray Dairy
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Wednesday, March 21; and Thursday, March 22 and 29 Riverina Murray Dairy
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Event dates and venues will be advertised via Murray Dairy website, local media and the fortnightly eNews. For information on the events above please contact Murray Dairy on:(03) 5833 5312, admin@murraydairy.com.au or visit www.murraydairy.com.au
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