Dairy News Australia - October 2019 - With Murray Region

OCTOBER, 2019 ISSUE 108

MURRAY REGION

Strategic move Getting established from a small start at Tongala See page 9

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DAIRY NEWS AUSTRALIA OCTOBER 2019

2 // MURRAY REGION FEED OPTIONS IN A TIGHT YEAR

Workshops

Murray Dairy and Agriculture Victoria are hosting two workshops on transitioning cows onto a temporary feed area or sacrifice paddock over this coming summer.

Presenter’s Paul Wallace from Agriculture Victoria and Ross Read and Lisa Birrell from Murray Dairy will talk about: ■■ regulations around temporary feed areas and sacrifice paddocks

Family succession TRANSITION OR family succession can be a

difficult path to navigate.

A workshop facilitated by Daryl Poole RMCG will focus on how to step back, or plan to transition or exit the industry smoothly, and on your own terms.

Do you know what options you have?

A series of one-day interactive workshop will help participants identify strategies to achieve their succession and retirement vision, plan for transfer of farm business management and ownership using suitable business structures and start the process of developing a ‘game plan’ to ensure a smoother succession transition.

Case studies from real farm cases will also be available.

Workshops will be held from 10.30 am – 3 pm at: Finley RSC Thursday, October 17 Criterion Hotel Rochester Tuesday, October 29 AgVic Buildings,255 Ferguson Road, Tatura, Wednesday, October 30 Shamrock Hotel, Numurkah, Thursday, October 31.

RSVP is a must contact Melva Tyson at Murray Dairy on 0439 667 425

■■

available grants to support your transition

■■

preventing and managing animal health issues

■■

maintaining high standards of animal

Feed systems at Rochester AN IN-DEPTH look at ration and feeding systems with expert Hugh Archibald from Feedworks will be held in Rochester Thursday, October 31.

The day will commence indoors at a venue to be confirmed with the TMR audit process followed by an on-farm visit to Tom Acock’s farm.

The audit covers 11 areas of best management practice that can be easily implemented for better herd health, production benefits and cost savings.

welfare, including combatting heat stress ■■

meeting stock water needs

■■

minimising feed wastage

■■

nutritional considerations

The presentations will be held October 23 at the dairy farm of Greg and Karen Rowlands, Katunga, from 10.30am – 2pm and includes lunch and at Nick Ryan’s 1223 Davies Road Lancaster, Monday October 28, from 10.30am – 2pm including lunch.

RSVP is essential to Lisa Birrell on 0499 220 027 or lisab@murraydairy.com.au

This event is open to anyone who uses or is considering the use of a mixer wagon, with the objective of developing a consistent and efficient ration for productive cows.

Hugh was born and raised in Northern Victoria and has spent a significant portion of his career looking at dairy systems around the world, particularly intensive systems in North America.

He regularly works with producers through the TMR audit process to help build efficiency and improve performance.

The event is hosted by Murray Dairy and will commence from 10.30 am until 2 pm.

For more information contact Lisa Birrell on 0499 220 027 or lisab@murraydairy.com.au

DAIRY NEWS AUSTRALIA OCTOBER 2019

MURRAY REGION // 3

Dairy couple in SBS film THE PLIGHT of struggling local dairy farmers

was highlighted on a national television series which screened in October.

Deniliquin locals Barry and Rosey Warburton featured in the SBS show, Struggle Street, which focused on issues of disadvantage in rural and regional Australia.

The couple caught the attention of SBS and were given the opportunity to share their story about struggling in the dairy industry.

They were filmed at their property from January to April.

Barry, 54, and Rosey, 49, were approached by SBS and while hesitant at first, decided those living in the city needed to know exactly how the drought is affecting their business and lives.

“We got 28 bales of some very old hay donated to us and somehow or other, the SBS group made contact with that drought organisation and we had our names exchanged,” Barry said.

“My wife was extremely hesitant, I wasn’t as much but I had never heard of the show before to be honest so I just thought it would be a good way to get through what is actually happening out in the country.

“It is quite a big thing to be open but that is what we needed to be. We didn’t try and hide anything.”

And according to Barry not only did the story need to be told, but it was therapeutic for the family.

“Doing the show was probably a bit like therapy to me, it really was a way to share what we have been experiencing.

“But being a dairy farmer, because we are always so busy, we don’t have as much time to let things get on top of us or think about how that really makes us feel.

“If you are not doing anything that is when your mind can get on top of you, but with no workforce, there is no shortage of things to do.

“We virtually haven’t been able to get any Federal Government support, but we have been using the rural financial counsellor to sort of help us get through and the only other support has been the NSW rates subsidy.

“So there has not been an awful lot of government help.”

Barry comes from a dairy farming family that can trace its heritage back over 150 years, but

Annabella, Barry, Lincoln and Rosey Warburton take a walk on their dried up dairy farm.

their farm is on its knees with escalating costs, fixed price milk, no government water allocation and a crippling drought.

With their two young children the difference between today’s drought and the one Barry remembers from 10 years ago, times are tougher than ever.

“Everyone in the Deni area is well and truly aware of what the problems are, and that it is with the Murray-Darling Basin Plan,” Barry said.

“Being a dairy farmer, the effects of the drought are hitting home a lot quicker than some of our neighbouring cropping farmers.

“It is a perfect storm because we even had a drop in the milk prices three years ago, so we

have had two years of extremely low milk prices heading into this. There is just nothing left in reserves to cope with this drought.

“We have pretty much got to the stage where we are on that knife’s edge and the only sort of thing that would keep us going is if hay price become relatively cheap. If not, we will just have to stop, even though our milk prices are going to rise.

“So, I am just hoping that the city people will see what the consequences are of having this Murray-Darling Basin Plan.”

The drought isn’t just affecting their business, but their family too.

“From the family point of view, we rarely do

things as a family anymore.

“Currently we have no workforce so for us to go off and do something; one of us needs to stay home to run the property and milk.

They are just one of a dwindling number of dairy farms left in the Riverina, with few left in the local area.

“The sad thing really is that this Riverina area, you could hardly say it is a dairy area anymore because there are so few dairy farms left,” Barry said.

“We did the show purely to reach the city audience so hopefully they can become aware of what it is like and what the reality of being a dairy farmer in this area is.”

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DAIRY NEWS AUSTRALIA OCTOBER 2019

4 // MURRAY REGION

High input costs hit farm profits in the north FARM PROFITS in Victoria’s northern dairy

region fell to record lows in 2018–19, as dry conditions and high input costs continued to plague farmers.

That’s according to Agriculture Victoria and Dairy Australia’s Dairy Farm Monitor Project 2018–19 annual report, which said "farm performance in 2018–19 was ‘all about water’ where temporary water allocation prices averaged $416/Ml".

"The profit performance reflects the dry seasonal conditions and high input costs, with many farmers left with a negative net farm income at the end of 2018–19," the report said.

"Three of the last four years in northern Victoria, (farmers) have recorded below average profits."

The average net farm income in the northern region reduced from $73 000 in 2017–18 to negative $85 000 in 2018–19.

Earnings before interest and tax reduced

from $185 000 to $24 000 across the same period.

The report revealed these were the lowest figures recorded in the project’s 13-year history.

UDV president Paul Mumford said the findings were not a surprise.

"I think the industry as a whole knew the industry was struggling," he said.

"It (the report) delivered what we were all thinking — that the dairy industry has been in crisis for the last 12 months."

Mr Mumford said the drop in farm profits in

the north exemplified why so many dairy farmers were leaving the industry.

"That shows the dramatic problem of the impacts of water are having on local farmers in the northern irrigation district," he said.

Agriculture Victoria’s farm business economist Claire Waterman said there was a significant variation in profitability across the three dairy regions of Victoria.

“The dry conditions have led to a 20 per cent increase in variable costs as a result of higher

irrigation water, concentrates and fodder prices,” Ms Waterman said.

“Farmers also spent more on making homegrown feed, including fertiliser, hay and silage making costs.”

In better news, the milk price improved six per cent to $6.13/kg of milk solids compared to the previous year, partially offsetting the increased costs.

Mr Mumford said despite the good news, farm costs eroded the impact of a higher milk price.

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Zoe makes her mark in Euro event ZOE HAYES’ passion for working with dairy

a heifer based on height and they had to do the best with the animal they had.

“We had to show our skills off on how well we prepared her, and it was a lot stricter than I thought it was going to be,” Zoe said. “There was a lot of emphasis on the health of the heifer and I was lucky I had a pretty good one — she came from a well-known Netherland Stud.”

Zoe said the trip had provided her with connections around the world and she was hoping some of her new-found friends might make the trip over to International Dairy Week in January.

“I got to meet some people I have idolised and to see them in person and how they work was awesome,” she said.

The trip has also inspired Zoe and given her the confidence to travel more in the future.

“Now I have met other like-minded people, I would love to head over to America and the

cows has taken her to places she never thought she would go and opened her eyes to things she never thought she would see.

Most recently, she was part of a five-member Australian team who travelled to Belgium to compete at the European Young Breeders School — a five-day event consisting of both team and individual events involving judging and fitting skills, and a handler’s competition.

The event had 163 competitors from 15 countries.

Zoe came third in fitting, second in handlers and seventh overall — a result she was very happy with.

“I was pretty proud and surprised,” Zoe said.

“This is the first time an Australian team has competed and none of us knew what to expect.”

Zoe said competitors were randomly allocated

Girgarre’s Zoe Hayes travelled to Belgium as part of Holstein Australia’s first ever team at the European Breeders School. She came seventh out of 163 competitors from 15 countries.

World Dairy Expo, and I would one day like to travel to the Swiss Dairy Expo as well,” she said.

“If you are passionate about dairy then it is

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MURRAY REGION // 7 Recipient of the 2019 Holstein Australia Cow of the Year award was Orchard Vale Informer Tiffany (ET) EX-911E, owned by RK and JR Gordon, Gorbro Holsteins and bred by DJ and WM Orchard.

Jenny Grey, The Pines, Kiama NSW, HA board member and Chair of the Breed Development and Conformation Committee presented the award to Glen Gordon, Gorbro Holsteins, Cohuna.

Cohuna top cow JENNY GREY said the cows considered for

this year's Cow of the Year award caused robust discussion. “This cow continues to develop more progeny that class well and show against the best in the country — with 25 daughters in milk, 33 direct daughters, 30 great great granddaughters and one great great great granddaughter. The judges’ agreed Orchard Vale Informer Tiffany ticked a lot of boxes and she impressed with fertility, milk, type and excellent daughter performance," she said.

The Judges’ verdict: “This cow continues to develop with more progeny that classify

extremely well, have heaps of milk, great components and impressive genetic merit.”

She is a past On Farm Challenge state champion. She has 25 daughters in milk with the best of them averaging a PI of 120.4. She has 33 direct daughters including 2 cows at EX91; 5 cows at VG88; 24 VG daughters and 3 GP daughters.

Her biggest impact through her daughters is the ability they have to work and produce milk. Her daughters feature in the top of the Australian genomically tested females including the current number 3 cow and the number 5 cow on BPI in June and has six daughters over 300 for

BPI. This envious record has been achieved with many daughters scattered throughout many different herds. Not only do her daughters have an incredible ability to milk but they also have the ability to show against the best show cows in the country.

Glen Gordon said his interest in the Tiffany family began as a boy, but his ideas about breeding were consolidated on an exchange opportunity in Canada.

“In Canada, I leaned we needed to maximise our cows and make sacrifices to do that. I came back and said I wanted to dry this cow off and

flush her,” Mr Gordon said.

“She’s a once-in-a-lifetime cow and it’s an honour to receive this award for her.”

Other finalists were Elmar Goldwyn Jessica 11-ET (g) EX-92-3E, owned and bred by Elmar Holsteins; Eclipse Damion G Princess-IMP-ET EX-90-1E, owned by Richard Hull and bred by Holland-NRS, Netherlands; Clydevale Mrsam Pisa (g) EX-91-3E, owned by Clydevale Holsteins P/L atf Dee Family Trust and bred by AF and CM Dee. Holsteins Australia 2019 Cow fo the Year, Orchard Vale Informer Tiffany – ET(g) EX-91-1E.

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DAIRY NEWS AUSTRALIA OCTOBER 2019

MURRAY REGION // 9

Transition for Nicholson partnership BROTHERS PAT and Brendon Nicholson have

a proud dairy history, love their Jugiong Jersey herd and the area in which they live.

Their family have been farming at Girgarre for 46 years but like so many others in the Goulburn Murray Irrigation District, high cost of water has forced them into making some pretty tough decisions — the toughest of which has been the decision to sell 65 per cent of their milking herd, which includes all their young milkers and last year’s International Dairy Week Intermediate Champion and Champion Udder, Jugiong Belle 7279.

Pat said selling all the young milkers was something he never thought he would have to do.

“It hasn’t been an easy decision,” he said.

“We have put a lot of hard work and money into our genetics over the years, but selling a portion of the herd will allow us to improve our

equity, pay some outstanding bills and take a bit of the pressure off over another tough season.”

Pat believes there is a good future for Australian dairy, but poor water policy and the Murray-Darling Basin Plan have forced many northern Victorian farmers into a corner.

He said one lesson he had learned from previous drought scenarios was not to repeat the same thing two years in a row — the business had already spent a fortune purchasing fodder last year and it simply wasn’t an option again this season.

“We still have all our young stock and will be milking 150 of the older cows,” he said.

“There is nothing wrong with them, they just have a bit of age on them. Our plan is to rebuild.”

The family plans to continue in dairying, subject to what happens with water.

“I believe there are things starting to happen

REE CCESSORIES I T HFFFRERO ECR E Y EV EER E TV4 0 0O S OSOL AA CC C S CEE ORD RI EI ESS FSS

The Nicholson family from Girgarre hasa made the difficult decision to sell the young portion of their famed Jugiong herd as a management strategy to cope with an out of control water market. Brendon (left) is pictured with daughter Ruby and Pat with son Tyler.

in the water space, but it just depends if they happen quick enough and whether we can hang on in the meantime,” Pat said He said the family had tossed around the idea of moving, but Girgarre was their home and they were entrenched in the community.

“It is just crazy that water has become too valuable to use on-farm and you can make more money out of selling it to the highest bidder.”

Pat said the water crisis was affecting

everyone, even those families who had been on the land for generations.

He said there had been farmers around him who had sold their cows and exited the industry, while others had turned to cropping.

“The industry might never return to where it was, but it has the potential to be good again if we just have access to irrigation.”

The auction was held on-farm at Girgarre but no details were available at the time of print.

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10 // MURRAY REGION

Picasso painters A LIFE-SIZED fibreglass cow has mooved into

Students, Skye Krispyn, Ethan Gruber and Antwoin Morgan, with the Picasso cow at Mathoura.

the gardens of Mathoura Public School.

It is all part of the Picasso Cows Program — a curriculum-linked initiative which brings the Australian dairy industry to life in the classroom.

The school recently received the cow to name and paint, with students letting their imaginations run wild and unleashing their creative talents.

She was named Winnie The Moo and Ryder Douglas’ design, capturing the devastating effect

of drought, was selected.

“This highlights the issues facing dairy farming from a local community perspective,” principal Janice Eddy said.

“Painting was completed over a few weeks and each student took an active role in the process under the guidance of Mr Edgar.

“Winnie the Moo will take pride of place in our gardens. We hope that she will serve as a visual reminder about all facets of the dairy and farming industry that is such an important part of our community.”

The program provides primary schools from around Australia with an engaging and challenging way to learn about the dairy farming industry, its products, health and nutrition benefits, as well as farming practices.

“As part of our health unit, all classes have been completing learning activities that explore the importance of a balanced diet to ensure they are provided with the nutrients that they need to stay healthy and active,” Mrs Eddy said.

“Students are also learning about the importance of building and maintaining strong, healthy bones during childhood and throughout life.”

SENTIMENT LIFTING ACROSS VICTORIA Victorian rural sentiment has staged a strong rally, with the state’s farmers now among the most confident in the nation, the latest Rabobank Rural Confidence Survey has found.

Dairy farmers were behind much of the upswing, with 45 per cent expecting conditions to improve on the back of strong milk price signals — with record high opening prices — and improving seasonal conditions in the southern dairy regions.

But it is a tale of two halves in Victoria’s dairy sector, as milk production continues to tumble in the north of the state as farmers contend with high water and fodder costs.

“Most dairy regions in southern Victoria have benefited from good winter rainfall, but it is the strong price environment that has driven the rebound in confidence,” Rabobank’s southern Victoria and Tasmania regional manager Hamish McAlpin said.

“However, in the north, high water and fodder costs have taken the gloss off the high milk price — with little respite foreseen in coming months.”

With lack of milk and latent capacity in the processing sector driving record high opening milk prices, Mr McAlpin said this was starting to feed into business’ bottom lines, with 65 per cent of dairy farmers expecting a higher gross farm income in 2019–20 than the previous financial year.

Meanwhile, the state’s grain growers retained their upbeat outlook on the year ahead — and are more positive than their counterparts across the country — as Victoria’s crops shape up to be the best in the nation.

Mr McAlpin said the crops were faring well in the Goulburn Valley around Echuca, Shepparton and Benalla, and in southern Victoria around Ballarat and Hamilton.

DAIRY NEWS AUSTRALIA OCTOBER 2019

MURRAY REGION // 11

Business prize for Bonita THE AUSTRALIAN dairy industry has bought

opportunities to Bonita and Merv Koch they could never have envisaged had they stayed in their native New Zealand.

The couple moved to Australia in 2001 with some big ideas and just $6000 in cash.

Today they own and operate a 700 cow A2 dairy operation on 220 ha just outside of Tongala.

Over the past 12 months, the couple has transitioned their predominantly Friesian herd to A2 to secure a premium price for their milk and a sustainable and long-term future.

The decision came after Bonita began Rabobank’s Executive Development Program.

“Farming had taken a back seat while I focused on starting a family. I was looking at becoming more involved again, but I felt I was lacking confidence and motivation, so I decided to take on the program,” Bonita said.

She said her defining moment during the course came when she was told ‘If you are doing the same as everyone else, expect to get paid the same’.

“The program helped set the strategic direction of our business and also gave me the confidence to look outside the square at other options and not stay the same as everyone else,” she said.

Setting goals to transition the business was an extremely important part of the process and

included a plan to change processing companies

by January 1 of this year and supplying A2 protein milk by July 1.

Bonita and Merv successfully negotiated a contract with Freedom Foods and they commenced supply at the start of the year.

“Freedom only have a small number of A2 herds which make it a sustainable and demanddriven market to supply. I like the way they think and the products they make. I am proud to think our milk goes into a product like their Messy Monkey milk drinks, they do a few niche products and I think it’s great,” she said.

Initially Bonita thought they might transition the herd to A2 over a few years but when she sat down and worked out it would cost them $500 000 through production losses, she decided to fast track the process.

The couple had already been using A2 bulls in the herd for 14 years.

They were hoping for around a 65 per cent rate when they ear notched their cattle and were disappointed when the figure was around 55 per cent, although Bonita does attribute the percentage to the fact they have bought in additional stock over the years.

The spring calving A1 herd was sold and replaced with A2 stock and any young stock to calve into the herd in the future will be A2.

The problem of sending A2 milk was made easier by the fact the dairy already had two vats — supplying just meant the herd was simply split in two (they are expecting the entire herd to be A2 by autumn 2020).

The staff must follow strict protocols and keep the herds separate at all times — the A2 herd is always milked first.

Cows are fed a TMR mix on the feed pad every day of the year to keep the diet consistent.

Bonita acknowledges their timing for change might not have been ideal with drought conditions and high feed and water prices, but the couple decided the risk of doing nothing was even greater.

“We feel fairly confident going forward that we can create a larger margin to be able to withstand the seasonal conditions like drought, water prices and high feed costs and even the high costs of labour going forward in the future,” she said.

While changing over to A2 has been a big commitment Bonita said there have been other things they have been able to do within their business to increase profitability.

Half the farm is now sown to a variety of fescue while the other half is sown down to annuals.

They top it in spring when the cows are transitioning off the annuals which freshens it up and the cows have no trouble grazing it over the heat of summer.

The cows are fed a TMR mix on the feed pad every day of the year to keep it a consistent part of the diet, the amount just varies dependent on

what the cows are grazing at the time.

Between bores and permanent water allocations (based on 100 per cent) the couple has around 70 per cent of their water requirements.

There is also a 170 Ml dam which can be filled under right rainfall conditions.

The spring calving cows are joined to wagyu and the calves are reared for a week and sold for $325.

Bonita said completing Rabobank’s business course has given her confidence and motivation to really look at her business.

“Being able to step outside and really look at our business has enabled us to produce a premium product and give us a larger operating margin. We were flying under the radar nicely, but we have had a lot of people ask us recently about the process of transitioning.”

The business plan Bonita generated for the process of transitioning the herd was enough to see her awarded the Rabobank Dr John Morris’ Business Development Prize.

Stepping back or transitioning out of dairying?

Information sessions are being held around the region for farmers who are considering reducing their level of active farm involvement or leaving the industry.

These one-day sessions will give you the information you need to plan for your transition including: • Options for succession and retirement using real farm case studies • Templates and example documentation

• Different business structures to support the transfer of business management and ownership • Where to start, who to talk to

RSVP: Melva Tyson P: 0439 667 425 E: melvat@murraydairy.com.au

Details: Thursday 17 October Finley RSC, Finley Tuesday 29 October Criterion Hotel, Rochester

Wednesday 30 October AgVic Offices, 255 Ferguson Rd, Tatura Thursday 31 October Shamrock Hotel, Numurkah

All sessions run from 10.30 am – 3 pm including lunch

ideas to farm INNOVATION EVENTI N F O R M AT I O N Finger food and refreshments provided

Wednesday 16 October – 9.00am to 12.00noon Corner Nelson/Orchard Streets, Numurkah, Victoria

Interactive workshop aimed to inspire greater efficiencies & increase profits Gain valuable product insights from our talented local & international speaker’s focusing on “Dairy Technology & Calf Rearing” Daviesway thrive on innovation – and, on sharing it. Nothing excites our team more than finding the right solution for our customers and there have never been so many options out there when it comes to new builds, retrofitting or renovating.

SR2 SPRAYING ROBOT The SR2 is a ‘must have’ tool for your rotary milking system.

The benefits to your operation, workers and cows make this machine vital in your pursuit of harvesting the highest quality milk.

For those considering changing to, or are currently using Triangular Vented Liners, International guest Maciej Dyrka – Technical and Sales Manager from Milkrite / InterPuls (Eastern Europe and Oceania) will be joining us.

CR-1 – ELECTRONIC CUP REMOVER Daviesway has released a new Automatic Cup Remover (ACR), which is driven by wi-fi.

MILKRITE TRIANGULAR VENTED LINERS Find out why this is considered the best liner for milking cows.

CALF REARING

NEW

Raising healthier calves is the goal of every farmer.

Brendan Johnson (Daviesway) shares experience gathered from some of Australia’s best calf rearing setups.

PLEASE Wed 9

RSVP

October

NIG