Dairy News Australia - June 2019 - With Murray Region

JUNE, 2019 ISSUE 104

MURRAY REGION

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DAIRY NEWS AUSTRALIA JUNE 2019

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Chair’s message

Facing the future “The goal is clear, a strong, confident, agile and forward looking dairy industry in the Murray region. An industry that transforms challenges into opportunities, is profitable and continues to support the communities that depend on its prosperity. Owning our own future will be the key to success.”

This paragraph is quoted directly from the document Future Focus — Dairy Industry Strategy, Murray Region 2019, and highlights the importance of the “next step” or the broader strategy for dairy — the Australian Dairy Plan.

Just as Future Focus is an important document in identifying and recognising key trends, issues and opportunities in our region, the Australian Dairy Plan will serve the same function, but on a national scale.

The objective of these national conversations is to achieve cohesion and focus through the collective effort of those who are key to our industry, and give direction to all industry players across the board.

To achieve this, it’s important that the Murray regional voice is heard, given our unique set of challenges and opportunities in running our dairy businesses.

Regional consultations will be held across our region in June, so I encourage each and every one of you to come along and contribute to this important conversation. For more information on locations please contact Murray Dairy direct or if you can’t make it in person, you can also contribute to the Dairy Plan through a confidential online platform called Our Say. To find more information, or to have your say online, visit dairyplan.com.au These past few months have been busy ones for us at Murray Dairy, with a very successful Regional Stakeholder Tour held at the beginning of April. A wide segment of our industry was represented on this tour, centred around the development and ongoing management of our feedbase systems which, ultimately, have a significant impact on farm profitability.

As part of a regional Feedbase Strategy, Murray Dairy has identified and is developing four key investment areas which will encompass nine projects around feedbase systems, designed to address the specific challenges facing our region in this space.

There will be more information available on these projects in the coming months as Murray Dairy seeks expressions of interest for various projects around feedbase and water. I would like to personally thank the three farm families who opened their farms to us and shared their valuable time and knowledge with the visiting group.

By the time you read this column, the Murray Muster will be an event of the past — I hope as many of you as possible attended the event, being our major showcase for the year. Over the two days, guests had the opportunity to hear from Australian and international speakers with new research and rigorous discussion on automation, consumers and climate.

In closing, much of our region had varying degrees of rainfall in May; wherever you farm, I hope you managed to receive enough to lift the spirits and see the germination of new pasture. · Karen Moroney Chair, Murray Dairy

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MURRAY REGION // 3

Farmers share business philosophies SOPHIE BALDWIN

FIVE DIVERSE dairy farmers, with five differ-

ent farming systems, formed a panel as part of day two of Murray Dairy’s Murray Muster, held in Kyabram during May. The panel spoke to the group about their own businesses and management, their own opinions and where they see the future of the industry in 10 years time.

RACHELLE MOON Rachelle Moon milks 120 cows on 105 ha with her husband Carl at Numurkah.

The couple run a small operation and want to keep it a family run enterprise with the couple supplying the bulk of the on-farm labour.

Despite continued challenges, they are heading into their fourth season and are constantly looking at ways to improve their business.

The couple is focusing on improving soil health to retain as much soil moisture as possible to grow more feed and is looking to establish long-term relationships with fodder suppliers.

When it comes to water management, Rachelle and Carl are looking at owning a third of their water requirements, leasing a third and purchasing a third on the temporary water market.

Rachelle said they have been fortunate the last rain allowed them to carry over water and she said the biggest question looming over the industry at the moment was next season’s allocation.

Rachelle said they are looking to the future a little differently and would like to diversify into agritourism (their farm has a lot of creek frontage) and are also looking at some sort of on-farm milk processing.

Remaining small and keeping the business a family operation is very much their main goal.

MARCUS LANG Marcus Lang milks 2000 cows with his brother and parents across 485 ha and three farms at Tatura.

The brothers took over the running of the

family operation in 2015 which fortunately includes access to other water assets including recycled sewage water and shallow ground water.

Marcus said challenges do arise from managing these types of assets and working on water ownership takes out some of the peaks and troughs and allows the business to keep the cost of production around the mid four dollar mark.

Marcus believes people need to work with the assets they have and farming in northern Victoria is not all doom and gloom, the challenge is to keep learning and developing new skills and management.

He said the millennium drought has changed the face of dairying, but people need to move past that now and make a choice to find a way forward and for his business, has included growing crops including wheat and vetch.

Marcus remains haunted by his decision to not buy temp water when it was $45/Ml because it was to “dear” but he said you have to take the emotion out of your decisions and if water prices are ever below the long-term price average, grab it.

Last season, the Lang family business plan changed week by week and contrary to what they thought, they ended up milking additional cows quite by accident, which in the end turned out to be a good thing.

Purchasing more land is an option they will be looking at in the future.

ANDREW TYLER Andrew Tyler milks 850 cows on 485ha. He has been farming in the Goulburn Valley for 30 years and he believes it is still the best place to grow feed and make milk in the country.

He believes dairying has a firm future, it might just have fewer farmers across a bigger footprint.

His business owns 40 per cent of its water requirements and responding to water opportunities is going to be a key to a successful future — including knowing the water dollar value where you can and can’t make money.

This season he grew 100 ha of corn.

The business is focusing on doing the one

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(L-R) Rachelle Moon, Andrew Tyler, Marcus Lang, Scott McKillop and Erwin Van den Berg. percenters well which has included improving the nutrient balance of soils and spreading manure for fertiliser.

He is looking to improve the management of his cows including the dry herd, and is looking into the possibility of some sort of shade shed in the future for dry cow comfort.

Andrew said Australia was an expensive place to do business, so it was important to do it as well as possible.

ERWIN VAN den BERG Erwin Van den Berg milks 1200 cows on 600 ha at Katamatite with his brother.

They used to run a seasonal operation but now calve every day of the year.

Erwin thinks a barn type system is the way of the future but uncertainty around water security in the Goulburn Valley is preventing him from investing in his current property. He is debating whether to sell up and move his operation to another area.

Erwin believes the whole dairy industry needs to be profitable to be successful and he remains seriously concerned about the number of good farmers exiting the industry.

He is not happy with any of the bodies representing the dairy industry and he believes Dairy Australia has lost its connection to grassroot farmers and its head office should be in a rural town like Kyabram, not Melbourne.

He said he hasn’t invested in any infrastructure on his own farm for many years but would spend $5 million on a robotic/barn system tomorrow if he knew there was a solid future.

He believes milk price now needs to be set at

$7 /kg minimum and processors need to commit to a sustainable price and give suppliers honest answers.

He said the government has prioritised the environment and the GMID is now seriously broken.

SCOTT McKILLOP Scott McKillop milks 380 cows on 200 ha in north-east Victoria. Irrigation may not be a problem he encounters but he very much runs a simple system where maximising rainfall and pasture growth and conservation, are keys to success.

Scott bases all his business decisions on profit, not production and two key points he follows are stocking rate and rainfall.

He is a founding member of the Mountain Milk Co-operative which commenced trading in July 2018 — to create security and ensure a sustainable long-term milk price not only for his own business, but other suppliers as well.

He is also passionate about dairy creating strong and vibrant rural communities and he doesn’t like the disparity in pricing by processors based on volume.

Scott is investing in technology including collars and automated spraying to reduce some of the menial labour tasks and make everyday management that little bit easier.

The McKillop farm has been in the family for 150 years and Scott is determined to hand it over to the next generation in a sustainable and strong position.

DAIRY NEWS AUSTRALIA JUNE 2019

4 // MURRAY REGION

Aid for hard pressed farmer A SOCIAL media post from Yalca dairy farmer Steve Dalitz prompted a couple working on a south-east Gippsland farm to come and help him during the trying conditions.

The post, which was written on Facebook’s Show Some #dairylove page, revealed that Steve had put his farm up for sale due to the dry conditions.

Jess Mumford and Alfie Jessup visited the region, assisting farmers with machinery maintenance.

“Steve had written a post on the page saying he has just put his farm up for sale because of the impacts of drought,” Ms Mumford said.

“This really hit home for both of us and Alfie sent Steve a message saying how sad it is to hear his circumstance and offered to donate his time.

“Like many farmers around the district, Steve didn’t have any farm work available (he already had an employee who he was struggling to find work for), however Steve noticed Alfie was a mechanic by trade and asked if we would like to come up to the northern district and service his and some of his friends’ farm vehicles.

“He also got us in contact with Lindy Morris from Aussie Helpers and they amazingly funded our trip and got us in contact with about seven

more farms that needed tractor and farm vehicle services.”

The couple spent five days in the region, based at Mr Dalitz’s place, travelling as far as Cohuna and Deniliquin.

“I think we went to about 10 farms and serviced 15 to 18 farm vehicles all in five days,” Ms Mumford said.

“It was a pretty busy five days but we would definitely do it all again.

“We never intended to service that many vehicles but when Aussie Helpers asked if we were interested in seeing multiple farms in the region we were more than happy to accommodate.”

Ms Mumford praised the contribution of charity Aussie Helpers and the donation from Cobram Rural.

“Aussie Helpers were fantastic. They never gave us a budget we had to adhere to and they also were willing to help fund any other problems we found while we were servicing vehicles (for example, brakes and small technical issues),” she said.

“We were also incredibly lucky that Cobram Rural donated four 20 litre drums of tractor oil, which was extremely appreciated.”

SUPPORT FOR DAIRY The Victorian Government will provide an additional $2.7 million in support for northern Victorian dairy farmers, who continue to be affected by seasonal conditions and high input costs.

The extra support will put additional financial and business counsellors on the ground for farmers and small business in Shepparton and Swan Hill.

The funding boost will also support Regional Development Victoria to partner with Murray Dairy to re-establish the Rural Skills Connect program — with more than $315 000 to support dairy farming families and farm workers seeking off

farm income to develop new skills and use their existing expertise to gain new employment.

“Our dairy farmers in northern Victoria are still doing it tough after extended dry conditions,” Agriculture minister Jaclyn Symes said.

“This funding boost will ensure they continue to get the support they need to make their farm businesses more resilient.”

The government’s On-farm Drought Infrastructure Support program has received more than 3400 applications since it began in late 2018.

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Fodder in the bank brings peace of mind SOPHIE BALDWIN

THERE HAVEN’T been too many things in the dairy industry that have made people smile this year but for Patho dairy farmers Chris and Jade Jones, the sight of a 150 m long pit of corn has brought some joy.

Of course, the pit didn’t come for free in an expensive water year, but what it has done is given the couple the security of fodder in the bank — if they were just feeding the core herd

of 320 milkers, it is enough feed for half their diet this year.

“Coming off a tough year, the silage means I don’t have to go out and look for hay. It is definitely security for our business once we put it in the pit and had it covered,” Chris said.

This is the fourth season Chris has decided to grow corn and at 40 ha sown, this is by far his largest crop.

It was sown just before Christmas and germinated just after Boxing Day. “I was a bit late getting the crop in the ground, but we had three inches of rain which put me

Jade and Chris Jones.

back a couple of weeks. I knew it was going to be a tough year, but I just decided to grow more corn than I ever had before.

“I haven’t grown a boomer crop yet, but I have noticed different soil types within my farm seem to grow it better, I think we averaged 19.3 tonne/ ha this year.”

Chris likes the bulk of feed the corn crop produces and it has grown to become quite a big part of the cow’s diet over the years.

The silage provides options and takes away some of the reliance on buying in expensive semi loads of hay.

“I actually couldn’t imagine not having it as part of the feed mix now. I would like to say I am only going to feed it to milkers, but the reality is it will probably go to some of the young stock as well.”

The business has been able to hang onto around 70 replacement heifers, something Chris attributes to now calving three times a year.

“We have shorter joinings and have added an extra one in to even out milk flow and help with fertility,” he said.

“We wanted to have enough replacements on hand for when things turn around, but it is a

DAIRY NEWS AUSTRALIA JUNE 2019

MURRAY REGION // 7

fine line managing young stock in a tight feed year when feeding your core milking herd is a priority.”

Growing as much home-grown fodder as possible is something Chris has been working on since he purchased the farm 10 years ago.

The corn has now been resown to wheat and vetch and there is an 18 ha stand of second- and

third-year lucerne.

“I have just sown another 10 ha of Lucerne and I have around 36 ha of a shaftal mix in the ground. Basically, I am trying to grow as much feed as I can to keep the hay trucks and their expensive bills away from the bottom line.

“I would rather cut hay than silage because I think hay is good for cows and they love to eat

it, but at the end of the day, it’s all about conserving and storing as much feed as possible and silage is a large part of that.”

Chris said this season’s milk price will be critical in determining what happens with the industry moving forward.

“They are talking around $7/ kg and that is the only way people will stay in, is if there is money

this year.

“Things are critical, and something really needs to change to ensure we all have a future.

I love dairying and I love my cows and I just want to be able to continue to do what I love.”

A 150m long pit of corn silage will help fill feed gap this year for Chris Jones at Patho. This is the fourth season he has harvested a corn crop which has become an integral part of the cows diet.

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How Now Dairy milks new system RODNEY WOODS PHOTOS: MEGAN FISHER

AN EXCLUSIVE female herd and keeping calves alongside their mothers for longer are the cornerstone characteristics of Congupna’s How Now Dairy.

Co-founded by Cathy Palmer and Dr Les Sandles, How Now Dairy, whose farming practices are a first for Australia — materialised after Ms Palmer wanted to produce dairy products in a “kinder” way.

“When I found out the truth about conventional dairying — that half a million calves a year are slaughtered at five days old — I could not reconcile that with myself and I just figured if I am this passionate about it there’s got to be more people like me who enjoy dairy products but feel there’s got to be a kinder way.”

Rather than the calves heading to an abattoir, they are raised by their mothers until they are fou — months old.

“In September 2016 our first calf was born,

and we left them (mother and calf) alone for a couple of days and then Les carried the calf into the dairy with mum and milked mum and that was the start of How Now. “That’s the only cow we’ve taught the system to. She taught every other cow and they just naturally did it.”

While the herd is now an all-female contingent, at the beginning, in 2016, this was not the case.

“We didn’t have the money when we started,” Ms Palmer said.

“We used beef bulls so then we have the boys and we’d grow them, and they would still go to meat from about three onwards.

“But now we are using sexed semen, so we only have females and the idea is that the girls will spend their time here, get weaned at an appropriate age, which is not two weeks—it’s more like four months, and then they grow up on the farm.”

Ms Palmer said the benefits to the animals’ health from farming this way was obvious.

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How Now Dairy co-founder Cathy Palmer in the dairy with the business’ two litre bottle and milk and the milk vat.

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common challenge for most businesses is finding a balance between reducing inefficiencies and improving productivity. In doing so, successful businesses are persistent in their efforts to continually identify and drive improvements in the current system that reduce costs and increase revenue. This is no different in commercial dairy operations, where producers look to maximise sustainable production and minimise cost, constantly measuring and assessing profitability and return on investment (ROI).

Although efficiency and productivity are both important to successful businesses, they commonly compete with each other, as efficiency looks to strip resources out of the system while productivity attempts to increase production.

In tough years, the high cost of inputs in relation to farm revenue sees many producers adopt a lean businesses model, as it is less risky to cut spending than it is to increase productivity. As a

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worms in early lactation can significantly increase milk volume and the quantity of fat and protein produced. The study, involving more than 2,500 dairy cattle run under commercial pasture-based production systems in Australia, showed that effective worm control in the first 100 days of lactation can increase milk production (47 L), increase milk protein (2.2 kg) and increase milk fat (1.8 kg).2 In milk yield alone, this is estimated to be an increase of 21c/head/day or around $15,750 per year, for a 250 cow dairy herd.*^ Outside of the scheduled dry period, every day that a cow is not producing saleable milk impacts on the profitability of the business. One variable that has a significant impact on the annual production of the herd is the average calving to conception interval. With a shorter calving to conception interval, the herd can start producing milk sooner, increasing the number of days in

production and therefore total herd output.

A recent study3 showed that post calving control of gastrointestinal worms with Epricare can reduce first-calving heifers’ average calving to conception interval by 12.9 days, when compared to untreated cattle. If achieved, this can increase saleable milk output by around 250 L#, at a value of $114 per first-calving heifer in the milking herd.* Although efficiency and productivity can compete within a business, it is possible to find the right balance through assessing the ROI of farm inputs and activities, and selecting the ones that bring the highest returns to your business.

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*Milk price of 44.2c per L ^300 days of lactation #Milk production of 20 L per day References: 1. Coop. R & Holmes. P., (1996) Nutrition and parasite interaction, International Journal for Parasitology, (26), Issues 8–9, pp 951-962, ISSN 0020-7519, https://doi.org/10.1016/S0020-7519(96)80070-1. 2. Little et al., (2000) Effect of Eprinomectin at Calving on Milk Production of Dairy Herds. Proceedings of 17th Annual Seminar of Society of Dairy Cattle Vets, NZVA. 3. McPherson et al., (1999) The Impact of Eprinomectin Treatment on Dairy Cattle Reproductive Performance. AAVP Proceedings, 44th Annual Meeting, New Orleans 1999; 44th Annual Meeting: 41 See product label for full claim details and directions for use. Boehringer Ingelheim Animal Health Australia Pty. Ltd., Level 1, 78 Waterloo Road, North Ryde, NSW 2113 Australia. ABN 53 071 187285. Epricare® is a registered trademarks of the Boehringer Ingelheim Group. All rights reserved. AUS-EPRI-191001

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Investment a nod to future in dairy SOPHIE BALDWIN

SCOTT AND Anna Fitzgerald are looking at

the construction of a 50-unit rotary on the Tongala dairy farm they lease as an investment in efficiency.

The couple has a long-term 30-year lease on the property (including water) with Scott’s parents and are already six years through the lease.

They purchased the 300-cow dairy herd when the lease commenced.

They have a unique and positive outlook on

the industry and are determined to grow their business and improve efficiencies.

“Some people might think we are mad building a rotary on a property we don’t even own but we look at it a different way,” Scott said.

“Mum and Dad had already spent their lifetime paying for the farm and if we did the same, we would effectively be paying for the farm twice and our business would never grow.

“And we need to grow.”

The first change the couple did make was converting the herd to A2.

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Hamish Fitzgerald is hoping to one day be a farmer like his dad.

DAIRY NEWS AUSTRALIA JUNE 2019

MURRAY REGION // 11 a long-term stable milk price was important moving forward.

“We wanted a secure milk price and have been with Kyvalley Dairy ever since. They supported us over our transition and while it has been a big change, it has worked very well, and pricing has stayed steady over the years,” Scott said.

Transitioning to A2 meant selling some of the existing herd and buying in more expensive A2 cows.

Numbers are now up to 380 but the 6.5 hours spent in the dairy each day was testing everybody and hence the decision to build a new dairy.

The couple bought the second-hand platform from Kerang last year and are in the process of installing the rotary at the bottom of their 22-herringbone dairy to save a few dollars and make use of some of the existing infrastructure.

“We wanted to tie in our current infrastructure to minimise cost because we couldn’t afford to build a new dairy on a greenfield site,” Scott said.

He estimates building a new dairy would have cost $1.2 to $1.5 million, their budget is around a third.

In September last year they began the decommissioning process, building a new manure pit and rotary pad.

“We had to build up the land and construct the manure pit because we will be using a lot more water and our old pit would have never coped,” Scott said.

The shed was built over the months of February and March and concreting was completed in April.

Scott Fitzgerald, pictured with son Hamish, is in the process of building a second-hand, 50-stand rotary dairy on the dairy farm he leases from his parents at Tongala.

The platform is going in at the end of May and Scott was hoping to have the dairy up and running by the start of spring calving in July.

“We probably won’t make this deadline which is more due to financial restrictions than time.

It’s been a very tight year and a bit of a juggling act for us.

“In a nutshell we have another big capital project on the go installing a pivot on an out block which we brought forward because of this

year’s water price. The out block has a good spear point on it and it was a resource we couldn’t utilise.”

Completing the pivot enabled a maize crop to be sown in January.

Continued to page 12 >>

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DAIRY NEWS AUSTRALIA JUNE 2019

12 // MURRAY REGION

The rotary will link into some of the existing infrastructure to help save costs.

<< Continued from page 11

“It was a late crop and we have no yields yet (the crop was just being harvested) but we did budget on a 17 tonne/ha crop and it seems like we will comfortably make that, if we didn’t have the maize we would be in the hay market a lot earlier.

“We now have fodder security over winter in a year when it could potentially run out and cost a fortune, it’s actually been a lifesaver.”

The couple is hoping to milk 500 cows and the construction of a new dairy will no longer be a bottle neck to expansion.

“Two years ago we bought a 50 ha block which we will grow maize on over the short term and

lucerne long term because it has good sandy soil. We have also bought a neighbouring farm which will expand our milking platform by half and allow us to grow more feed and agist our young stock.”

Scott said the farm used to have a 260 ha fodder block at Kotupna which his parents now use for beef.

“This left a hole in our business which we replaced with agistment and fodder purchases but in a tough year that puts a lot of pressure on things, it is a hole we are definitely trying to now fill.”

Scott has no idea why he remains so positive about the dairy industry.

“I guess I really enjoy watching my business grow which was something I couldn’t get out of my trade. You do something in spring and see the benefit in autumn, or three years later, and that to me is very enjoyable.”

And with a family of four young children, dairying and growing the business is allowing the couple to achieve a better work/life balance.

“It used to be just Dad and I before Anna and I took over. Initially we thought we could do it ourselves, but we soon got burnt out, so

we decided to employ our first person and now we have two full-timers and three part-timers — growing the herd has allowed us to do that.”

Scott said they will continue to build herd numbers and the focus will then shift to the herd itself and possibly a feed pad in the future.

“We calve three times a year, autumn, spring and summer, which is driven by the domestic milk market. We need a flat milk supply which means our cost of production can creep up, although it definitely spreads out some of the work load over the year, which is a good thing.”

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DAIRY NEWS AUSTRALIA JUNE 2019

MURRAY REGION // 13

California faces similar dairy issues MULTIPLE DEMANDS on irrigation water,

stricter environmental controls and pressures from animal activists are some of the issues that are similar for Californian dairy farmers and those in Australia.

Animal scientist Dr Russ Hovey drew some parallels between the two countries in an address to Murray region farmers in Shepparton as part of the Murray Muster run by Murray Dairy.

Dr Hovey, who grew up in Queensland and is working with the University of California in the United States, also gave a lecture around an udder dissection as part of the Murray Muster.

Dr Hovey said California had a population almost twice that of Australia, but in an area about the size of Victoria.

The dairy industry in the state faced challenges in water resources, environmental regulation, air pollution control, waste disposal, groundwater use and public perceptions on animal management.

Intensive dairy farms tended to be total mixed rations with feed stall operations supplied by double or triple cropping, he said.

Some farms north of San Francisco, which were more pasture-based, mostly sold into the organic market which was popular there.

Dr Hovey said the average herd size was about 1300 cows, heavily capitalised, which created pressures on business operations, with narrow margins.

“Many of our herds are milked three times a day and the operations are pretty much 24 hours a day,” he said.

Adoption of technology was wide-spread in the US, Dr Hovey said.

“Everyone thinks that labor in California is cheap, but that is changing.”

“There is competing pressure from other industries.

“It’s pretty hard to get someone to milk cows when they can go and sit in an airconditioned cab on a tractor.

“There is also pressure to increase the minimum wage at the moment, and immigration challenges.”

Dr Hovey said there was a low adoption of automated milking systems but he expected that to change as labour costs had more effect.

He pointed to a curious difference between the US and Australian economies, where health care is ‘socialised’ in Australia through support systems like Medicare, whereas in the US there was no national health care system, but there was market support for dairy producers through the Federal Milk Marketing Order.

The Federal Milk Marketing Order system was established in the 1930s to set a minimum milk price, determined by the US Department of Agriculture, that dairy farmers are required to receive from milk processors (handlers) in a defined marketing area.

He said the growth of almond farming in California was almost unbelievable.

Dr Hovey spoke to farmers at a dinner organised as part of the Murray Dairy Murray Muster program.

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DAIRY NEWS AUSTRALIA JUNE 2019

MURRAY REGION // 15

Interest aplenty at Water in Focus events MURRAY DAIRY’S Water in Focus events

across northern Victoria in May drew a crowd, with dairy farmers and service providers keen to get an update on water policy and outlooks, and the effects on their farm businesses.

Dairy farmers are feeling the pressure of increasing volatility in the water market, after a season of record-high prices and dry conditions. Coupled with uncertainty around water policy and management, farmers are finding it increasingly difficult to plan how they manage their feedbase.

The Water in Focus events brought together a range of experts — on federal, state and local water policy, regional water allocations and trading, water procurement strategies and irrigation management — to assist irrigators with these decisions.

Independent consultant Claire Miller, formerly a ministerial policy adviser and dairy industry strategist, gave a status update on the Murray-Darling Basin Plan. Her key messages were: ■■ The basin plan is on track to deliver its environmental outcomes on time and in full without the need for further water recovery before 2024 — and maybe not even after then.

■■ However, the political context remains fraught with a high risk that the goalposts may be moved again. Community, industry and company groups are mobilising.

In the short term, water market transparency, lowering conveyance losses and addressing over-extraction in the northern basin are positive ways to address basin plan problems.

Mark Mitchell, from the Department of Environment, Land, Water and Planning, presented an overview of water market trends over the past decade. His key messages were: ■■ Despite speculation, the majority of water in the region remains tied to land.

However, since 2015, the proportion of privately held entitlement not tied to land has increased to 12 per cent (298 gGl). Last year, the majority of water held by investors went back into productive use.

■■ Water use in the GMID has fluctuated significantly over the past 10 years in response to seasonal conditions and water availability. 1,318 Gl was used in GMW districts in 2017–18, 21 per cent less than the volume used in 2004–05.

■■ 429 Gl was used by LMW diverters in 2017–18. LMW diverters’ use has increased steadily since the millennium drought and is now more double the volume used in 2004–05.

■■ Irrigators in the GMID and LMW diverters continue to use more than the volume of entitlement tied to their land and are reliant on the water market and carryover to help meet their water needs.

■■

Water allocation prices generally reflect water availability in the connected southern Murray-Darling Basin, and water availability in NSW has been seen to have a very strong influence on market prices in recent years.

■■ Given that the majority of allocation being bought and sold is by active users, trends in price reflect the market fundamentals of demand and supply.

■■ The reduction of the size of the consumptive pool and the increase in water use for horticulture in the Sunraysia will influence future water share and allocation prices.

Goulburn-Murray Water representatives Mark Bailey and Andrew Shields gave a seasonal update. Their key messages were: ■■ Having experienced low rainfall and low inflows this season, water reserves are low, meaning that there is limited water available for early seasonal determinations.

However with average inflows, allocation against HRWS should reach 100 per cent in all northern Victorian systems by February 2020.

■■ The Bureau of Meteorology’s climate outlook has no tendency towards either a drier or wetter season at this stage.

■■ Carryover will be deliverable this year in the Murray, Goulburn, Campaspe and Loddon systems.

RMCG consultant Daryl Poole highlighted some ■■

strategies for managing risk around water. His key messages were: ■■ Operating in an interconnected water system, industries respond in different ways to water availability and price.

Water use has changed as the agricultural landscape changes and will continue to do so under different climate scenarios.

■■ Most businesses use a combination of water procurement strategies, alongside feed production and procurement strategies. These include: ownership; carryover; leasing; forward contracting; and cash reserves. The suitability of the different options will vary depending on your business position and personal approach to risk.

The event was closed by Rob O’Connor from Agriculture Victoria’s irrigation team. His key messages were: ■■ Dairy farmers are becoming more efficient with their water as they restructure the feedbase to include dryland and irrigation crops, summer-active forages and annuals.

■■ Tools available to optimise water use through irrigation scheduling include Agriculture Victoria’s Weekly Irrigation Requirements summary (based on evapotranspiration) and soil moisture monitoring equipment.

For more information, visit murraydairy.com.au

Work through your decisions with a Taking Stock consultation Dairy farmers can access a free, personalised Taking Stock session with a trained advisor to assist with business planning and work through key decisions.

Consultations can be used across a range of areas, including: Get involved

Once you register, you’ll be directly connected with a trained adviser of your choice. Your session will remain completely confidential.

Contact: Lachlan Barnes, Regional Extension Officer Murray Dairy Ph: 0438 092 352 E: lachlanb@murraydairy.com.au

• Feed and water budgeting • Feed and water procurement strategies • Nutrition planning • Herd decisions • Reviewing your business position • Preparing for EOFY • Succession or exit options

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