Dairy News Australia - December 2018 - With Murray Region

Page 1

DECEMBER, 2018 ISSUE 98

MURRAY REGION

Lachlan Marshall on the feed pad on his Blighty property.

Big move secures future SOPHIE BALDWIN

THE LURE of cheap land, stability of irrigation and access to multiple milk processors was all it took to entice brothers Lachlan and Adam Marshall from south-east Queensland to the Riverina.

The family was looking to secure its future in the dairy industry and Blighty appeared to tick all the boxes — so the Marshalls moved their operation 12 years ago. “We were looking for a stable future and the opportunity to purchase cheap land and along with water security, we thought this was the perfect place to farm,” Lachlan said.

The family came with 400 split-calving cows and a rye-grass based grazing platform. A decade later they are milking 900 yearround calving cows, three times a day, on a total mixed ration — with a central feed pad the basis of all herd management. “We came here to take advantage of a low cost structure but it didn’t take long to become

a high cost, low efficiency system that we had to change,” Lachlan said. Initially the 160 ha milking platform was a split between perennial and annual pasture; now cereal, lucerne and corn make up the majority of fodder grown. Continued page 14 >

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DAIRY NEWS AUSTRALIA DECEMBER 2018

2 // MURRAY REGION

Chair’s message

Take time to plan ahead AS WE near the end of 2018 and another Christmas season is only a matter of weeks away, for many farming businesses the year that started with an outlook of recovery after two very challenging years has turned to one of drought, feed shortages and rising production costs. As I write, many farmers will already be implementing strategies, setting priorities and making some challenging on-farm decisions to get through the coming months. It is important to plan and act now, so if you are unsure of what resources and support are available, use your industry advisers, engage with your local discussion groups and talk with your neighbours and friends for advice and support. I encourage you to ring Murray Dairy and ask what programs are being run in your area that could assist your business. This could be in the form of advice on feed budgets, conserving fodder and understanding your requirements for now until next spring; it could be on acting to secure fodder where cash flow permits; it could be planning and planting

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the leadership and work of our Murray Dairy team, led ably by Jenny Wilson. On average, our Regional Development Program has run three programs a week over the past year, to deliver programs and resources that support our farming businesses in this region. They continue to support discussion groups and dairy business networks who also meet regularly to share ideas and experiences to improve their dairy business management. Finally I would like to wish you and your families a happy, safe and festive Christmas season. Most importantly, remember to take care of yourself and your family, staff and neighbours, and continue to connect with each other on a regular basis, drop in for that impromptu cuppa and chat or find time off-farm to rejuvenate and relax, all important to our health and wellbeing.

summer crops to grow as much feed as possible; it could be water budgeting. Murray Dairy is also continuing to offer the Taking Stock program, providing free expert advice with a consultant of your choice, to assess your individual situation. Understanding where we sit allows us to plan to be in the strongest position to navigate our way through the coming months. As this is my first column as the incoming chair of Murray Dairy, I want to personally thank our outgoing chair Rick Cross and director Greg Ault for their leadership and support over the past six years. It is not an easy job to manage our many commitments, both on and off farm, but we all agree it is time well invested to ensure our industry remains strong, focused and supported. I also want to welcome to the board our two new farmer directors, Tom Acocks (Rochester) and Lachlan Marshall (Finley), who will add another level of diverse thinking to our boardroom discussions. It is also timely to acknowledge and thank

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DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 3

Tough season takes its toll HIGH FEED and water prices and tough sea-

sonal conditions have taken their toll, with this season’s milk production expected to fall by eight billion litres. Dairy Australia’s Situation and Outlook report for October points towards a five to seven per cent milk production shortfall on last year’s production levels. Feed prices increased significantly in the Goulburn and Murray valleys, with the price for shredded cereal hay tripling to $402/tonne, while stockfeed wheat saw a price hike of 71 per cent to $425/tonne on average. High water prices did nothing to ease the pressure, with many dairy farmers unable to invest in growing feed on-farm. The September average for traded water in northern Victoria was listed at $321/Ml by the Victorian Water Register and Murray Irrigation, a jump of 202 per cent on the previous year and an 84 per cent hike on the five-year average. This was despite water use in volume dropping 13 per cent on the previous year, although it remained eight per cent higher than the past five years. Zone 7 (Barmah to Nyah) had the largest month-on-month price increase, jumping $110/Ml from July to August, while both Zone 6

(Hume to Barmah) and Zone 1A (Greater Goulburn) also had substantial increases of $83/Ml and $70/Ml respectively. Dairy Australia senior industry analyst John Droppert said there was some positive news, with domestic sales markets strong, seeing an increase of 0.9 per cent in Australian milk, cheese and yoghurt sales. He said while farmers’ key priority was to navigate their way through the immediate challenges, on-farm decisions made in the coming months would be fundamental to the industry’s ability to seize the opportunities when seasonal conditions improve. “While farmers continue to feel the impact of the feed shortage and increasing cost of production, domestic and global market trends provide a timely reminder that dairy has an important role in Australian diets and improving the nutrition of millions of people around the world,” Mr Droppert said. “Dairy demand has remained robust, with dairy exports from the six major exporters increasing 3.7 per cent over the past 12 months. “Greater China and Japan helped drive this growth, while demand from the Middle East and North Africa region increased for the first time in over three years.”

New hands on the reins MURRAY DAIRY has announced the appointment of its new chair and deputy chairs following the annual general meeting on October 18. Karen Moroney, from the Mitta Valley, will take on the leadership of the organisation, stepping up from her role as deputy chair, which she has held for the past three years. Ms Moroney has served as a farmer representative on the Murray Dairy board since 2013. Replacing her in the deputy chair role are Tony McCarthy of Dhurringile and Andrew Tyler of Tongala, who are also serving farmer representatives. Ms Moroney has been running a dairy farm in Eskdale since 1989, after a career in business administration and management. She inherited her father’s interests in breeding Australian Red dairy cattle and is a longstanding member of the Australian Red Dairy Breed Association. From 1990 to 2016 she was the executive officer of the International Red Dairy Breed Federation.

Ms Moroney said she joined the Murray Dairy board because of her passion for the industry, emphasising she wanted to be a leader that represented people across the dairying community. “I believe that good leadership is not about the leader, it is about encouraging and empowering others,” she said. Ms Moroney acknowledged the difficulties dairy farmers in the Murray Dairy region were currently facing, and said the board would continue to respond while looking at the longer term strategy for the industry. “We have come through two of the most challenging years for dairy that most of us can remember, and this year will be equally as challenging with high input costs and drought experienced by many farmers in the region,” she said. Murray Dairy is due to review its organisational strategic plan in 2019. This will feed into the Regional Dairy Industry Strategy currently being developed by organisations such as Murray Dairy, Dairy Australia, UDV and Committee for Greater Shepparton.

Northern Victoria seasonal breakdowns 2015/16

2016/17

Cash Milk income (net) $/kgMS

5.46

5.13

5.88

Total Farm Cash Income $/kgMS

6.16

5.85

6.25

Total Farm Working Expenses $/kgMS

5.09

4.73

4.74

Farm Operating Cash Surplus $/kgMS

1.06

1.11

1.51

Total Farm Gross Income $/kgMS

6.04

5.92

6.55

Total Variable Costs $/kgMS

4.16

3.35

3.75

Total Overhead Costs $/kgMS

1.94

2.20

2.13

6.29

5.74

5.68

-0.07

0.37

0.67

0.46

0.59

0.55

-0.53

-0.22

0.12

Return on Total Assets %

-0.5

1.0

2.6

Return on Equity %

-5.0

-2.1

1.3

Profit

Cost of Production (includes inventory change) $/kgMS Earnings Before Interest and Lease (EBIT $/kgMS) Finance Costs (Interest & Lease) $/kgMS Net Farm Income $/kgMS Wealth

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DAIRY NEWS AUSTRALIA DECEMBER 2018

4 //  MURRAY REGION

Farmers say no to code ALANA CHRISTENSEN

“NO MANDATORY code, full stop.”

That was the message from one dairy farmer as consultation about a mandatory code of conduct for the dairy industry was held in Shepparton last month. It was a sentiment echoed by many in the room, with a majority of farmers in attendance stating they do not support the measure. A 40-strong crowd attended the consultation on November 27, run by the Department of Agriculture and Water Resources, yet many remained bemused and frustrated about the timing of the consultations, the small number of meetings being held in Victoria and the absence of a draft code to make comment on. A key recommendation of an Australian Competition and Consumer Commission inquiry into the dairy industry, a mandatory code of conduct has received support from Federal Agriculture Minister David Littleproud. But many dairy farmers say it cannot, and should not, go ahead. A mandatory code of conduct would seek to address a number of issues including cooling-off periods when entering and terminating contracts, implementing a dispute resolution

process, prohibiting retrospective step-downs and limiting exclusive supply clauses between processors and farmers. Cobram East dairy farmer Paul Mundy was among those that attended the meeting and voiced his concerns. “It seems absurd that this discussion has gotten his far,” Mr Mundy said. A number of dairy farmers said it didn’t matter whether the mandatory code of conduct outlawed step-downs or allowed farmers to walk away from their contract when one occurred, as no other processor would take their milk in a downturn. Katunga dairy farmer Bridget Goulding said she was disappointed at the amount of time that had been spent to rectify the effects of the 2016 milk price crash after Murray Goulburn implemented retrospective milk price step-downs, soon followed by Fonterra. “All this expense because two dairy companies couldn’t get it together … Just pay us a fair amount … you don’t need a damn thing if you pay farmers fairly,” Ms Goulding said. While the department attempted to ease concerns, stating the introduction of a mandatory code was yet to be agreed to, it did little to calm the crowd. If recommended, a mandatory code of conduct would need to be endorsed by Federal

Cabinet and passed through parliament. Any future changes to a mandatory code would also need to be passed through parliament, leaving many in the room to express concerns that changes could take “years”, all when the current costs and potential consequences of the code are still unknown. Following ACCC reviews of a number of issues — including petrol prices, telecommunications and energy prices — Katunga dairy farmer Daryl Hoey was pessimistic about the prospects of success. “Why would I have any confidence in them to handle this?” Mr Hoey said. It took more than four months for industry to agree to supporting a mandatory code of conduct, with processors, the Australian Dairy Products Federation and the UDV among those voicing concerns. The Australian Dairy Industry Council, which comprises of Australian Dairy Farmers and Australian Dairy Products Federation, said a new mandatory code of conduct would help to clarify and strengthen relationships between farmers and processors. ADIC called for retrospective milk price step-downs to be banned and contract disputes between farmers and processors to be handled through a thorough complaints and mediation process.

“Our aim is to address the information asymmetries that currently exist in the industry and strengthen bargaining power for farmers, while respecting commercial realities and supporting innovation and market dynamics,” ADIC chair Terry Richardson said. The draft ADIC code is the result of an extensive review into the dairy industry’s current voluntary code and recommendations suggested by the ACCC.

Dairy farmers had their say on a potential mandatory code of conduct for the industry at a November 27 meeting in Shepparton.

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DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 5

Family rises to the challenge SOPHIE BALDWIN

STEPHEN AND Brooke Brown might have to reconsider the definition of their Jersey herd after cleaning up at the Murray Valley Jersey Breeders Club On-Farm Challenge this year. The Gunbower couple won junior twoyear-old in-milk and Junior Champion with Blairden Dimension Lily, three-year-old in-milk and Champion Vessel with Blairden Visionbeat Daisy, four-year-old in-milk with Blairden Vanahelm Marlene and Champion Cow and six- or seven-year-old in-milk with Blairden Bosgannon Duchess.

“We didn’t enter a mature class cow or a senior two year in milk so the results are pretty amazing. I don’t want to sound conceited but I have never seen anyone sweep the board like we did,” Stephen Brown said. “I always thought we had more of a commercial herd and we only ever registered cows that won the odd class — we might have to look at it a little harder in the future and make it a higher priority.” Blairden also tasted success back in 2014 when Blairden Destiny Marlene won Champion

Cow. Mr Brown said the Marlene family had been a great performer across the herd and resulted in two champion cows. “They are good long-lived cows with beautifully attached udders. We breed for production and type, which go hand-in-hand and equal longevity in a cow.” The Browns only began their dairying journey in 2006. They purchased their Jersey herd with the farm. “Fred and Peter Bawden never had a stud

herd but they always used registered bulls — that mixed with some Merindah blood seems to have created some good cows. Mum and Dad (Merindah) have been breeding stud cows since 1967,” Mr Brown said. “My mother is a very passionate Jersey breeder and she put pressure on us to enter the challenge initially (in 2009).” The Browns are now looking forward to seeing how their champion cows perform at the next step — the Great Southern Challenge.

Stephen Brown with Blairden Dimension Lily won the two-year-old in-milk and Champion Cow at the Murray Valley Jersey Breeders Club On-Farm Challenge.

Blairden Vanahelm Marlene who won fouryear-old in-milk and Champion Cow at the Murray Valley Jersey Breeders Club On-Farm Challenge.

“They are good long-lived cows with beautifully attached udders.” The only class they were beaten in was the five-year-old category and that was won by Stephen’s parents Hec and Judy Brown from Merindah Jersey stud. They also won best group of five.

Blairden Bosgannon Duchess won the six- and seven-year-old in-milk category.

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DAIRY NEWS AUSTRALIA DECEMBER 2018

6 // MURRAY REGION

Pushing ahead with new ideas SOPHIE BALDWIN

MARCUS FLANAGAN is looking to make management as simple as possible on his 700cow dairy farm at Finley. And he is not afraid to invest in new technology, especially when it comes to reducing labour. Installing a GEA FR1 feed pusher from Advanced Dairy Systems in Cobram has been one such investment.

“My interest and passion is caring for my cows and providing everything they need to milk and produce well.” The feed pusher spins its way along the concrete feed pad pushing the mixed ration back into line, making it easier for the cows to reach their food, reducing waste and, perhaps most importantly, eradicating a mundane but important job from the daily schedule. “We used to have to stop what we were

doing and jump on the tractor and manually push the feed up every single day; it was just one of those jobs that had to be done,” Mr Flanagan said. “The FR1 now saves us at least an hour in labour every single day.” Transponders embedded in the cement every 2.5 m guide the machine as it makes it way up and down the pad and guide its way back to the charging shed. It can be programmed to run up to 19-hoursa-day; it just needs five hours to recharge. Mr Flanagan is expecting the machine to come into its own over summer. “During the hot weather the cows eat a lot overnight when it’s cooler so we can program the pusher to run up and down the pad overnight which will help us immensely. “I am the first person to install one of these in Australia. I saw it at the World Dairy Expo and I was tossing up between two brands but I decided to go with the GEA because it spins independent of the feed, which reduces the problem of the ration being dragged along and piling up at the end of the pad. “I think it is a real cost-effective piece of technology. I employ a few backpackers and anything I can automate to make things simpler is certainly attractive to me.” Mr Flanagan said the pusher could be added to most concrete feed systems. The building of the concrete feed pad has

Marcus Flanagan is more than happy with his investment and is always looking for ways to reduce labour on his Finley dairy farm.

been a considered investment by Mr Flanagan, who is determined the comfort and health of his herd will always come first. The feed pad is stage one of a five-year plan to eventually build a free-stall facility. It has made a huge difference already to cow health and comfort, while saving three tonne of feed a day. “We used to feed the cows in a concrete feed trough,” Mr Flanagan said. “The pad is now saving us at least three tonne a day and based on today’s feed prices that equates to a saving of $1500 daily which is quite significant.” An automated sprinkler system also runs along the rail of the feed pad, which will help

keep the cows cool over summer. This can be programmed to come on more frequently and for a longer duration, as the temperature rises. The milking herd has access to shade and the cows can make their way on and off the pad at their own leisure. “My interest and passion is caring for my cows and providing everything they need to milk and produce well,” Mr Flanagan said. “I have found confining them and bringing the feed to them is better for the cows and much better for the management of my land.” Confining the cows stops the issues of pugging during wet conditions and will allow the business to concentrate on producing more fodder.

The drink troughs on the pad.

Cows spend day and night on the feed pad where they are fed a total mixed ration.


DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 7

The GEA FR1 pushing feed back into line down the feed pad.

“I can see us growing more and more feed and bringing it to the cows over the next five years,” Mr Flanagan said. The milking platform consists of about 400ha. The plan is to grow more corn, cereal and lucerne. “I think we can get better water use efficiency by growing annuals and that is the way we are moving into the future.” Mr Flanagan said he could produce about 2.2  –3  tonne of feed per megalitre of water used.

“Water has become so expensive and we really need to be getting the most out of it, we can’t afford to waste a single drop.” The Flanagans have no permanent allocation and are totally reliant on the temporary market. Mr Flanagan said it had been hard going to receive a text message each month confirming NSW allocations remained on zero. “We are constantly trying to improve our business management and we have put better systems in place to handle these over the years,

Sprinklers have been incorporated into the feed pad design to keep cows cool over the summer months. The automatic system has been programmed to come on more frequently and for a longer duration as the temperature rises.

including improving our irrigation infrastructure and building the feed pad. “We are doing what we can to improve our efficiencies and I think the politicians making decisions need to be more in touch with rural Australia.”

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DAIRY NEWS AUSTRALIA DECEMBER 2018

8 //  MURRAY REGION

Leading by example ALICE COLCLOUGH describes leaving her

banking job to become a dairy farmer as a “baptism of fire”. Little did she know five years ago that a fasttracked succession plan was barely the beginning of the challenges she and husband Justin would face. The couple’s Mitta Park Partnership Dairy Farm, established by Alice’s parents, now milks 230 cows at Tallangatta South and supplies Saputo, previously Murray Goulburn. As a Gardiner Dairy Foundation scholar for 2017–18, Ms Colclough’s participation in the Alpine Valleys Community Leadership Program has allowed her to “reset” her thinking — “acknowledge the challenges, but don’t let them override your life”. “It allowed me to get outside the farm gate and converse with people in other industries,” she said. “To be able to do something that challenged me outside the dairy industry has allowed me to be more creative inside the dairy industry.” Ms Colclough said the program, which has been a fortnightly commitment plus some additional nights away from the farm and family for the past eight months, reminded her to consciously choose to demonstrate the positive parts of the industry. “I want to lead by example and be conscious

to take other people on that journey,” she said. “It’s going to be a challenge and you have misfortune in any job. There’s no denying dairy has some long hours, some physical elements and some tough decisions, but there are also great opportunities about where you work, how you work, and that you get gratification from.” She said “leadership by example” was the most effective way to guide any industry, and the people in it. “Leadership has many facets; great leadership reveals itself in many ways. And everyone has their own way of being a leader. “If their assumption is you have to be the one at the front making all the noise, that will fit very few people. “The people I admire in our area, they are leaders because they demonstrate the right behaviour, are open to sharing information, are humble in recognising where they need to make change if something hasn’t worked, and their path forward is based on research, not a whim.” Having been awarded a Gardiner Dairy Foundation sponsorship for the leadership program, Ms Colclough is conscious of her ongoing responsibilities. As a leader in the dairy industry, she wants to help others think more creatively about how to engage with people outside the industry. That includes sharing with the public the high

skill level and extensive knowledge of those that work in dairy. While Ms Colclough appreciated the empathy shown to dairy farmers recently, she said the “poor you” sentiment had to be transformed into something else — excitement. “I want to create a workplace that demonstrates that if you are outside the industry you should be excited to understand more about dairy farmers or the industry. “There are some really outdated perceptions of what we do. We need to change communication with those outside the industry.” Having a positive workplace that attracts and keeps employees is essential in portraying the industry to others, and Ms Colclough also sees it as a sustainability measure for the business. “How can we employ people in our business to ensure we get some work-life balance so we have enough energy to keep thinking positively about what we do? How do we make our operation welcoming for other people to join at any skill level? “If we all got better at it then the dairy industry gets a better reputation and more people would be open to participating in it.” Work-life balance is a constant juggle for Ms Colclough, who has three children aged under six — twins Hamish and Oliver and their little sister Lily — and something else she hopes to lead improvement in within dairy businesses.

For 2017-18 Gardiner Dairy Foundation scholar Alice Colclough, her move into dairying has seen her face a number of challenges.

Ms Colclough said given the time commitment of dairy farming, having regular support with child care in the home, rather than away from the farm, could take a lot of the stress out of the workplace and off families. “I have just applied a new child care system here with some in-home care, but I am shocked I didn’t know about it earlier. I want the word to be spread about it,” she said. “We are half-an-hour away from child care, so two hours a day driving … we aren’t an isolated case, but I think it is something that can be smoothed out so when there is a time of crisis, there isn’t that added pressure as well. “We live in a kids’ paradise, so it is delightful to be able to share parts of the job with them in the space that we work.”

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DAIRY NEWS AUSTRALIA DECEMBER 2018

10 //  MURRAY REGION

Farms have a ‘green’ side FARMERS ARE looking for recognition that

irrigation water has a dual purpose on northern Victorian dairy farms. Cohuna dairy farmer Jodie Hay wants to highlight the importance of irrigated agriculture as a valuable part of the eco-system, one that has developed over the past 100 years. Jodie and her husband Colin have been farming at Cohuna, close to the Murray River, for the past 25 years. She said she had lost count of the bird species that had found their way onto their farm, particularly this dry year. “Our irrigated pasture is not only growing food for the country, it is also supporting a multitude of bird and animal species here on our farm,” Mrs Hay said. “Irrigated agriculture is not getting the recognition it should for its contribution to the environment, particularly the movement of native birds on our irrigated pastures to feed. If you take away our micro wetlands, where will they get their food from in the future? “Farmers need to be acknowledged for the habitat they create and as farmers we also need

to promote what we do. “The Murray-Darling Basin Plan is concerned about environmental outcomes, but I think they should also be concerned about the impact on our native species as water leaves farms, reducing feeding and breeding grounds. “As irrigation dries up so does the feed source we produce. I wonder if the bush will be able to support increased animal and bird population in the future?” Mrs Hay has documented more than 40 different native species on her 400-cow dairy farm. The Hays have planted thousands of trees over the years and the environment plays a huge role in their on-farm management practices. “We are environmentally conscious,” she said. “We have an effluent system which we re-use as fertiliser on the farm, we capture all our water run-off and re-use it on farm, the yard wash at our dairy is recycled water, we have solar panels and extensive tree plantations. “We employ four part-time workers and use many local contractors and support local business — agriculture is big business and huge

Passionate about dairy farming and the environment, Skeeta Verhey has successfully been combining the two for years.

driver of our economy, it is a very scary scenario as water leaves our region along with the income we can generate.” Mrs Hay believes there is a real opportunity for farmers to work collaboratively with the Murray-Darling Basin Authority to achieve agricultural and environmental outcomes. “Environmental water is a taxpayers’ resource. With the present fodder crisis and drought situation authorities are doing the complete opposite.” Koondrook dairy farmer Skeeta Verhey said farming and the environment could coexist — after all, he has been successfully combining both for years.

He has established a wetland area on a low spot of his dairy farm, complete with an island to protect bird species from predators. “We have dragged logs into there to improve habitat and I recently saw a pair of musk ducks on the wetland amongst other species,” Mr Verhey said. The wetland provides shelter for the cows while supporting a plethora of native species. He has also planted many tree corridors on the farm, some through grants and others off his own back. “Our tree corridors are really starting to stand out and we have every intention to plant more in the future,” he said.

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MURRAY REGION // 11

The re-use dam on the 400-cow dairy farm of Colin and Jodie Hay has become a magnet for birdlife, especially as drought conditions impact the state.

“The agencies that implement these grants never seem to return to look at the results, which is a real shame. I know we will get environmental credits but I would love to send a bill out for the agistment of ibis and other native birds.” Mr Verhey leases a block of land just out of Koondrook, 100 m from the Murray River. “It’s a dry block that we have managed very well over the years.” He said the block was home to woodland bird species, goannas, wallabies, bush rats, snakes and sugar gliders. The old red gums, some hundreds of years old, are fenced off and protected from livestock.

Not only does this block support a healthy native environment, it also produces more than 300 tonne of dry fodder annually, as well as supporting 30 Angus cattle and calves and agistment of the milking herd. “We are changing fence lines and channels but we don’t want to do anything that will hurt the block, especially the big old gums. I love coming out here and walking amongst the trees — it is very relaxing.” Mr Verhey said it was important both the environment and agriculture survive. “Farmers are not the environmental vandals we are made out to be. “We need healthy soils and a healthy

The wetland Skeeta Verhey has established on his 180ha dairy farm not only provides shelter for the dairy herd, it also supports many species of birds and animals.

environment to produce food. Irrigation allows us to add character and enhance wildlife areas and that needs to be taking into consideration.” Mr Verhey said he was concerned about the way environmental water was managed, because communities needed water. “We haven’t had much chance to adjust to the changes in water and water policy, especially when the changes seem to be only going one way. “We need to work together to get the most of each megalitre of water — the set and forget mentality is frightening and we all need to benefit to ensure both agriculture and the environment can thrive into the future.”

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DAIRY NEWS AUSTRALIA DECEMBER 2018

12 //  MURRAY REGION

Not one more drop of water, say farmers

SOPHIE BALDWIN

DAIRY FARMERS and members of the Cohuna community were given the chance to discuss federal water policy when State Member for Murray Plains Peter Walsh and Federal Nationals deputy leader Bridget McKenzie spent the afternoon in Cohuna recently. Cohuna, like many country towns across the region, has been severely impacted by the Murray-Darling Basin Plan.

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Water leaving the area has seriously affected the once thriving dairy industry, which is now impacting on business, schools and the community in general. The majority of the irrigators in the room represented the dairy industry and, in a show of hands, two-thirds indicated they were seriously considering leaving the industry within the next five years. Every person in the room agreed not another drop of water should leave the system and many were angry and incredulous the Federal Government would even consider taking another 450 Gl from the system. Senator McKenzie said she received the message from the November meeting loud and clear and would be taking it back to her party. “There is a lot of pride in this room today and my job is to take all this back, the clear message aligns with my own personal views — one more megalitre leaving this community is one megalitre too many,” she said. “Dairy is my state’s industry and the biggest regional employer in the country — there has already been severe and significant longterm damage to the industry and the broader community.” Mr Walsh said it was ridiculous the MurrayDarling Basin Authority was focusing on an additional 450 Gl when it physically could not even get anywhere near that volume through the Barmah Choke and down the Murray River.

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Cohuna dairy farmer Ross Gordon says South Australia is holding everyone to ransom, and there is a real opportunity to use water that is just lying there evaporating in the manmade lakes of SA. “Put it on the market; it’s water they can’t use and instead of talking about dams it’s time to actually get some built.”


DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 13

Hard work going to waste

Dairy farmers Barry Ashwin from Torrumbarry, Horfield’s Ash Hore, Senator Bridget McKenzie and Gunbower’s Harry Rowlands attend a meeting to discuss water policy in Cohuna in November.

He is also calling for a review of carryover water, saying environmental water appeared to benefit more from the ruling than irrigators. Mr Walsh also said the delivery of 750 Ml of water per day through Hipwells Weir out into the Gunbower Forest in a dry year was “totally offensive”. The visit was organised by Primary Partners managing director Andrew Gibbs, who wanted to give farmers and members of the community

a chance to air their concerns direct to government officials. “I have been disappointed at the lack of action from local government and other government agencies so as a local lobbyist I felt it was time for some common sense action,” Mr Gibbs said. “Senator McKenzie was quick to respond to my invitation and we are grateful for her time.”

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Swan Hill’s Bill Brasser has been developing dairy farms since 1993. He purchased his current property four years ago for $1.5 million; the water was also sold then, to a different buyer for $1.4 million. Mr Brasser owns 1400 Ml of high-reliability water. He has spent $1.5 million dollars developing and lasering 490 ha of the farm This season he has used his water allocation to keep his 700-cow herd milking through to Christmas. At this stage he has no water to get him through autumn and he is looking at a potential temporary water bill of up to $800 000 (last season he used around 3000 Ml). His options are to cull his herd significantly or cease dairying altogether and become a water seller. “That means the $2 million I generate for the economy is gone and the people I currently employ no longer have a job.” Mr Brasser said he was proud to be a major contributor to the economy but he finds it really sad that he could make more money

trading his water. He also has 5650 Ml of lowreliability water and he has only received a five per cent allocation of that in the past decade. “Carryover water has killed the market and there is not enough storage in the system to hold the water that is in the spillable accounts. If you don’t use it, you should lose it.”

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14 //  MURRAY REGION

Change is the only way forward < Continued from page 1

Lachlan Marshall brought his dairy enterprise to Blighty from south-east Queensland 12 years ago. They have changed their business management over the years as increasing water prices have forced them to produce fodder as cost-effectively as possible.

“We started with a partial mixed ration system but the increasing water price over the years has forced us into a TMR and now we don’t graze our cows at all,” Lachlan said. “Removing cattle from the paddocks has actually allowed us to improve our soil health dramatically. We capture our effluent and compost and the humus levels in our soil have improved so much we have been able to reduce our chemical and fertiliser use quite substantially. “I can’t be an environmental vandal and a productive farmer, they go hand-in-hand and investing in both always pays off.” Lachlan said their ability to adapt and change their management practices was one of the reasons why they were still operating. “Learning is the only way forward and if you stop learning, changing and adapting you will get left behind. “As we began chasing efficiencies and saving water became our major drive, we looked at growing corn and it has changed our business — we can get more kilograms of dry matter per megalitre of water and it has been a game-changer.” Lachlan said growing corn had been a monumental learning curve and it had taken eight years of advice from experts here and overseas to succeed.


DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 15

The feed pad has become an integral part of on-farm management. The cows no longer paddock graze but instead spend their time on the feed pad where they are fed and housed.

The business aims for a minimum of 20 tonne/ ha but averages about 23 to 25 tonne/ha. “Corn is the cheapest feed base and most efficient user of water and at the worst case scenario we would use 9 Ml/ha to grow it,” Lachlan said. He estimates 50 per cent of the fodder the business now produces is corn silage while the other half comes from cereals and lucerne. Modernising the irrigation infrastructure has also been part of the business plan, although it has all been done through cash flow without

selling any high-reliability water. “Water is a key asset and the lifeblood and the driver of all our efficiencies around fodder — without water we are just a sheep paddock with burrs and saltbush,” Lachlan said The cows are fed a TMR on the 330 m feed pad which was built in 2016. The feed pad is built close to the dairy and includes four pens — three 275-cow pens for high production, low production and first lactation cows, while the fourth pen is divided up for dry

and sick cows. The pens are harrowed every day to knock off the fresh pats and twice a year the pens are cleaned out and the material is stored and used to fertilise the farm. Separating the herd has enabled the cows to be fed according to where they are sitting in their current lactation. “The feed pad allows us to control feed waste, control diets and keep the cows cool, comfortable and clean. It has improved our management

dramatically,” Lachlan said. The feed pad has a sprinkler system which comes on automatically when it heats up and the cows also have access to shade. The Marshalls have been housing their newborn calves in hutches for more than 20 years. “It has been an excellent way to start the calves off because they provide shelter and protection,” Lachlan said. “As the calves get older they are moved into groups to allow them to socialise and the groups get bigger as the calves get older.” The family currently supplies Freedom Foods, and Lachlan is happy with the relationship the business has been able to establish with the processor. “A contracted milk price gives us the ability to budget and plan, and it takes an unknown risk off the table for us.” Like many of the region’s dairy farmers, Lachlan is worried about the effects poor water policy is having on the dairy industry and his community. “The Murray region has borne the brunt of water retuned to the environment and there needs to be some accountability and fair handedness in policy moving forward. “I employ 20 people who support families and spend in the local community; where do these people find employment if we are not here? “We are a resilient group of people but it is crazy poor policy that is regressing the area and turning the land back to what it was like generations ago and driving it backwards.”

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DAIRY NEWS AUSTRALIA DECEMBER 2018

16 // MURRAY REGION

Time to hang up the milking aprons

The sale, held at Shepparton Regional Saleyards, was a “bittersweet” moment for Graeme Joiner.

SOPHIE BALDWIN

BREEDING STUD cows has been a huge part of the life of Bev and Graeme Joiner from Kyabram. Their stud, Coldara Holsteins, has more than 50 years of breeding behind it after Mr Joiner registered his first cow back in 1967. “I decided to register my own stud and breed cows as another interest aside from milking because it has always interested me,” Mr Joiner said. The Joiners have always had a desire and drive to improve the genetic merit of their herd, which began in the late 1960s when they first began using AI. “Back then people had annual sales to sell their surplus cattle and that was how we got started, buying odd cows when we could afford it, but we always registered them and always bought quality cows,” Mr Joiner said. “I always focused on the type side, I wanted my cows to milk well but look good as well.”

Breeding has brought the couple many years of joy — not only in breeding quality cows but sharing their love with others, especially through showing and sharing their knowledge and, of course, their beloved cows, with the younger generation. Dairying has also brought the Joiners many experiences and friends over the years through their involvement in discussion groups, Target 10 and the local northern Victorian sub-branch of Holstein Australia. “We have come across so many wonderful people over the years and for a time that was what kept us going,” Mrs Joiner said. “Every second Thursday we would go out for dinner, get together socially and swap ideas. We have been involved in the sub-branch for many years and we have hosted on-farm days, overseas judges and many, many great people.” In November, the couple sold 73 spring calving cows at Shepparton. Before the sale Mr Joiner told Dairy News he was petrified, especially considering the current state of the industry. But they agreed their time in the industry they love so much, had come to

Kyabram’s Bev and Graeme Joiner say it’s been a tough decision to hang up their milking aprons.

an end. “We just can’t keep dairying. We are getting on and we have had enough — we are comfortable with the decision to sell and we realise the situation we are in is far less than ideal, but it’s

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DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 17

The couple sold 73 spring calving cows early last month for an average of $2025.

The Joiners will sell their remaining heifers and calves over the next couple of years.

NSW, but not before she placed third in the northern Victoria On-Farm Challenge and won Supreme Champion Dairy Cow at the Kyabram All Australian Show for the Joiners. Buyer Steven Coombes purchased several other lots, including Coldara Monterey Diety for $4200, who recently classified VG 85 on her first lactation. After decades in the business, the couple said the sale was bittersweet. “There’s a lot of mixed emotions. It’s been the culmination of pretty near 50 years of breeding,” Mr Joiner said. “The pleasing thing is it’s not only the people in the industry and the cows we breed, it’s the common interest and the friendships we’ve made all the way through.” Mrs Joiner said given the tough conditions

and current milk and water prices, they were the past 10 years. “There has been a real lack of commitpleased with the results and happy to see the ment to the industry in general from politicows go to good homes. The Joiners had already sold their autumn cians, legislators, UDV, VFF, processors and calving cows back in 2016 and this sale is just the Dairy Australia, who have all let the industry next step on their way to semi-retirement — they down,” Mr Joiner said. “There used to be cows on every corner still have their heifers and calves and these will and before 2000, on our road, there used to be sold over the next couple of years. There are still a few girls making their way be 14 dairy farms — now there is three. “The Goulburn Valley has some of the through the dairy morning and night — the majority of the milking herd has found new best environmentally friendly land to prohomes and the end of an era is fast approaching. duce food and fibre and the ability to genColdara Planet Porscha sold for a top price of “I would have loved to see a young person erate thousands of dollars — providing it has $7700 at the couple’s complete dispersal sale. keen and passionate do the hard yards and take irrigation. She has found a new home at Attunga in NSW, “Poor water policy has been behind the over but unfortunately that didn’t happen for but not before winning Supreme Champion Dairy demise of the whole industry and itEHD has been us,” Mr Joiner said. Cow atSlasher the Kyabram All Australian Show for the Disc Compact Ripper TA A Slasher 40HP Contractor Offsect Joiners. downhill for farming ever since it has been The couple said it hadStd beenRipper hard to watch the 3’4”, 3’10”, 4’6” 10 to ’ demise of the dairying industry, especially over implemented.”

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DAIRY NEWS AUSTRALIA DECEMBER 2018

18 //  MURRAY REGION

Tour shares dairy expertise AUSTRALIAN DAIRY expertise is being shared across the Indian Ocean, with an international study tour program helping to build capacity in India’s booming dairy industry. A partnership between Austrade and Goulburn Ovens Institute of TAFE, the initiative had seen 100 delegates come through the program since it began in 2017, with another study tour planned for December. Incorporating dairy professionals from across the supply chain, including India’s National Dairy Development Board, the study tours aim to expose participants to Australian dairy technologies, best practice and expertise. The study tours have provided the participants from the National Dairy Development Board the

The group toured the Tatura Milk factory to learn about processing in Australia.

opportunity to gain an understanding of the Australian dairy industry through exposure to technical skills education and training, and demonstration of the manner in which research is implemented on-farm. Funded through the World Bank’s National Dairy Development Project, the project aims to build capacity in the largest dairy producing country in the world, which must largely satisfy the domestic demand of its about 1.4 billion people. GOTAFE international and higher education manager Katherine White said the study tours had delivered invaluable lessons for both countries. “It’s been really good for our staff to internationalise our approach and also learn about

A number of delegates from India’s dairy industry have visited Australia to learn more about our dairy supply chain.

the production systems in India, which are very interesting,” Ms White said. “They have been very interested in the co-ops we have, as well as farm management, fodder production, breeding — the whole gambit.” While visiting a number of locations across the state, a specific northern Victoria study tour focused on production within the region from Shepparton to Finley in the southern Riverina. “Overall the aim was to expose them to a mature dairy industry,” Ms White said. “The other way, it’s been really interesting to hear how they manage a co-op and getting that exchange back about how they deal with the different villages.” With much of India’s local dairy production

focused on small-scale farmers who have anywhere between two and 10 cows, Ms White said cold-storage chain management had become a key area of focus for the Indian dairy industry, which must compete with storages that were often open and closed to allow for deposits from village farms. Austrade’s India trade commissioner Mark Morley said the study tour opened up a world of possibilities. “We see potential commercial outcomes for the Australian dairy industry across the entire milk value chain emerging from this training partnership,” Mr Morley said. “This includes the export of Australian high-merit, heat-resistant dairy cattle genetics; Australian products and services in animal breeding, milk production and milk processing; Australian research in climate change-resilient dairy farming, and Australian research in new milk product development.”

Funded through the World Bank’s National Dairy Development Project, the project aims to build capacity in India, which is the largest dairy producing country in the world, satisfying the domestic demand of its 1.4 billion people.

The group, which travelled to northern Victoria earlier this year, visited a number of local dairy farms to learn more about dairy technologies, best practice and expertise.


DAIRY NEWS AUSTRALIA DECEMBER 2018

MURRAY REGION // 19

December reminders Keeping cows cool ■■

■■

■■

High temperatures can impact herd health and farm productivity. Keeping your herd’s core temperature within range will minimise these impacts. Allow for 200–250 litres/cow/day of cool drinking water in hot weather. Avoid walking cows during the hottest part of the day. Be sure to milk and feed cows before 10 am on hot days. Have it done by 9 am on heatwave days. Delaying afternoon milking until 5 pm may increase milk yield by up to 1.5 litres/day.

■■

Do a feed budget to ensure you have enough fodder to get through the summer and autumn. This will also estimate the grain usage and give an idea of the purchased feed bill for the summer and autumn. It’s best to have this plan early. If you are moving to a mixed ration this summer, work with your nutritionist to develop a feed plan to ensure the diet is balanced and milk production is maintained.

particularly if you anticipate you’ll need the feed in spring. ■■

The amount of water applied at the first irrigation in autumn on annual pastures or forages is typically 1 Ml to 3 Ml/ha (this will depend on soil moisture, previous pasture or crop type, timing of dry-off, forage type and soil type). Subsequent irrigations typically require 0.5 Ml/ha. The first irrigation in spring following a dry winter may require up to 1 Ml/ha.

■■

To download the Murray Dairy Feed and Water Budget tool, visit: www.murraydairy. com.au

Grazing sorghum ■■

Be aware of the risk of prussic acid poisoning — integrate sorghum into the diet gradually.

■■

Don’t graze or conserve if the plant is stressed, as prussic acid levels will be high. Water then utilise.

■■

Feed ■■

The Dairy Australia Feed Tools program may help you in the process. Visit: www. dairyaustralia.com.au

Graze around 70 cm high.

Grazing millet ■■

Millet can be first-grazed sooner than sorghum.

■■

Graze at half gumboot height down to tennis ball height.

Water ■■

Thinking about what to sow in autumn, budget for start-up and finishing irrigations,

■■

Keep an eye on children who are home for the holidays. Drowning is the main cause of death of children on farms, most often children under five and visitors to the farm. Always supervise children around dams and channels.

People ■■

With holidays approaching, you may need to look at leave and/or public holiday pay rates for your employees. Note that if a public holiday falls when an employee is on annual leave, the employee is taken not to be on paid annual leave on that day; instead, the National Employment Standards about public holidays will apply. More information can be found at: www.thepeopleindairy.org.au

Free Dairy Business Management Support Murray Dairy and AgBiz Assist are facilitating free consultations for dairy farmers in the following areas: Taking Stock Access a free one-on-one session with a trained adviser through Dairy Australia’s Taking Stock drought response program.

For information or to organise a session, please contact: Lachlan Barnes Regional Extension Officer Farm Business Management P: 0438 092 352 E: lachlanb@murraydairy.com.au

The consultation will help you work through key business decisions and identify actions to take, as well as other support available. The sessions are confidential and personalised to address your individual situation.

Succession, Growth and Transition Consultations A one-on-one consultation for those looking at transition, during which you will discuss your business goals, review your position and understand your options going forward. The aim of this consultation is to help you feel more confident to make decisions about your farm business transition, whether that be buying or selling, expanding or contracting, succession or exit. This project is supported by a grant from the Australian Government through the Building Better Regions Fund.


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