AUGUST, 2018 ISSUE 94
MURRAY REGION
Ashleigh, Colin, Karen and Chris Gamble are expanding their dairy operation to enable it to support the four of them into the future.
Farm is family affair SOPHIE BALDWIN
COLIN AND Karen Gamble are proud of the
fact their two children, Chris and Ashleigh, want to take over the family farm. They just worry what about what sort of future awaits this next generation. The rising cost of production, water availability and milk price are putting increasing pressure on northern Victoria dairy farmers, eroding confidence and decimating the industry. The couple hopes there will be better times ahead for the next generation.
“It is really special to see our kids come home to work and run the farm,” Colin said. “It just reinforces what a great way of life dairying can be. Karen and I must have done something right to have both our children wanting to be involved in our family business.” Chris, 31, and Ashleigh, 27, will be the fourth generation of the Gamble family to farm at Bamawm, although Karen made sure they both have had a life away from the farm — Chris is a qualified diesel mechanic while Ashleigh has degrees in beauty and teaching. Both always knew they would end up on the farm. “It was always my plan growing up to eventu-
ally come home and work on the farm,” Chris said. “I learnt my trade but I soon worked out there was no money working in town. I tried my hand at the mines for a while but the farm is my home and where I want to be.” Ashleigh said there was nothing better than working where you live. “I look at Mum and Dad and they are a team. I know farming is challenging and has its ups and downs but it is in my blood,” she said. The Gambles make a tight-knit family unit and they run their business by focusing on each other’s skills. Ashleigh’s passion is the cows and the young stock. She is involved with the animals from the
moment they hit the ground, she does the AI and is involved in all the breeding decisions. “I am very interested in genomic testing and if we can continue to breed from the top of our herd and cull the bottom five to10 per cent we will have a great herd in the future,” she said. “The great thing about dairying is you never seem to stop learning.” Chris is the maintenance man and grass grower and loves nothing more than looking at a green paddock with grass hanging over the fence line.
Continued page 10 >
DAIRY NEWS AUSTRALIA AUGUST 2018
2 // MURRAY REGION
Chairman’s message
Handing over the reins AS WE enter a new season, this year, more than
ever, has highlighted the continual need to plan and monitor your strategy to minimise risk to your business. Hopefully you have made or are making decisions to maximise the coming spring. If you are like me, reserve fodder supply is so low that anything I can grow during the next eight weeks will be a positive. Water budgets, fertiliser application or talking to fodder suppliers should all be on our minds as should farm budgets, cash flows and talking to our bankers. We will be busy, as the spring calving continues, but we need to focus on our businesses to maximise our returns. Murray Dairy is still offering its one-to-one
farm business management mentoring, in conjunction with AgBiz Assist, which is designed to help you get your head around business management processes. These consultations are able to be flexible to meet the needs of any business so it’s certainly worth getting in touch with Murray Dairy if you are looking for some support at this time, even just a second set of eyes to look over your books. This column will be my last as chair of Murray Dairy. Greg Ault and I will step down from the board at the AGM in October and two new directors will take our places. I would like to thank all the current and new directors for taking the time to commit to Murray Dairy; it’s quite a commit-
6 – YEAR
ment of time and effort and at times continually juggling priorities, but as this is our industry we must give back to ensure focus is delivered to the right areas, and you only get out what you put in. Greg is one such character: I first met Greg at a UDV meeting more than two decades ago; I think he has earnt the right to step back a little, but not completely. This is why all organisations need a managed succession program. Not only do we value experience but also need new ideas and future leaders to step into organisations; so to our new directors, thank you for your commitment to the future of our industry. We have a great team at Murray Dairy. Led
by Jenny but contributed to by all; throw in a board comprising a diverse range of skills, and I think we have the right mix to focus on the needs of the farmer base in the region. Of course we should not get complacent, we have had and will continue to have many challenges to our industry and region — and farm profitability, animal welfare and water policy are but a few. But I know working together as a collegiate body with other industry partners is the only way to create a better outcome. Thanks for your time, and I wish everyone a positive season to come! • Rick Cross Murray Dairy chair
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DAIRY NEWS AUSTRALIA AUGUST 2018
MURRAY REGION // 3
Taking a united stand SOPHIE BALDWIN
A GROUP of northern Victorian dairy farm-
ers, that in May called on the dairy community to pool its milk in a bid to obtain a sustainable milk price, has taken the idea a step further and is in the process of legally forming a co-operative. The United We Stand Dairy Farmers group has formally elected a committee, which includes chair Marshall Jacobs from Rochester; secretary Cheryl Hawken from Bamawm; directors Scott Somerville from Timmering, Chris Gamble from Bamawm and Dehne Vinnicombe from Calivil; and spokesman Steve Hawken from Bamawm. Mr Hawken said it was evident from discussions they had had with both processors and dairy farmers that, to be taken seriously, they legally needed to formalise their position. “We have had so much support from the dairy farming community but we now have to do our due diligence and formalise things,” he said. “This isn’t a fly-by-night thing — we are definitely committed to the future of the industry. “We are offering a glimmer of hope. We are not here for short-term gain — we are in this for the long-term and are setting ourselves up accordingly.” Mr Hawken said the Murray Goulburn debacle in 2016 had been a real catalyst for change,
along with milk production shortfalls this season that will leave processors scrambling for milk. “As farmers we need to remember we do have some power — without milk going through their stainless steel, processors don’t have a business. “They have a proven history of paying their suppliers as little as possible for as long as they can and shifting processors will not change the price, but the hole in the factory we leave behind will.” Mr Hawken said the group had had calls from farmers across the country worried about being able to pay for the grain and hay they are currently feeding their cows, let alone making it to the first irrigation in spring. He said milk volumes were in real danger of decreasing even further this year. “Processors should beware — they may not get the milk volumes they are expecting, especially if conditions stay the way they are, production could be down 10 to 20 per cent.” Three months ago the group called for expressions of interest from dairy suppliers interested in pooling their milk and the organising committee phones have not stopped ringing since. Farmers right across the country, regardless of whether they are milking 50 or 500, are worried about making it through the year. Dean Kendrick from Kyabram entered the industry five years ago. “As an industry we can’t continue to keep
Northern Victorian farmers hoping to pool their milk include (from left) David Glass, Nanneella; Brock Clymo, Calivil; John Lilford, Kyabram realtor; Dean Kendrick, Kyabram; and Steve Hawken, Bamawm.
wearing increasing costs,” he said. “Everything comes back on us and when the milk price doesn’t cover these costs the future certainly doesn’t look too bright.” An Australian Competition and Consumer Commission inquiry into the dairy industry released in April found there were significant imbalances at each level of the dairy supply chain, from retailers to dairy processors and processors to farmers. The inquiry found even if processors were to receive higher wholesale prices from sales to supermarkets, this didn’t mean processors necessarily passed it on to farmers. The ACCC said farmers’ ability to capture
their appropriate share of profits would, as in all industries, depend on their bargaining power. It noted most dairy farmers had little bargaining power and limited scope to reposition their business. Mr Hawken said it was time the dairy industry pulled together. “There is no-one representing us with a true farmers’ voice,” he said. “A sustainable price allows our business and industry to grow and will ensure we have another generation of farmers coming along. “The average age of an Australian dairy farmer is in their 60s and that’s frightening and dangerous.”
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DAIRY NEWS AUSTRALIA AUGUST 2018
4 // MURRAY REGION
Tour celebrates club’s birthday A GROUP of Jersey breeders from across the country have travelled around selected Goulburn Valley farms to inspect their herds. Dairy News followed the group on May 29 to two Katunga properties: Ron and Glenyss Baker’s Glenarron Farms and Peter Sprunt’s Yalcara Jerseys. The Bakers, who have help from their son and daughter-in-law Grant and Sally, milk up to 300 cows on the property where they have lived for more than 50 years. “In 1963 we had 57 cows. We’ve been 54 years on the farm, which is not seen often these days,” Mr Baker said. Mr Baker, who moved to the Goulburn Valley from Footscray when he was 14, said he autumn-calved more than he spring-calved, and he believed in twice-a-day milking. “We 40 per cent spring-calve and 60 per cent autumn-calve,” he said. “I don’t believe in milking once-a-day. If they aren’t milking twice-a-day, get rid of them.” Mr Baker said he had Jerseys because of their milking ability. “They milk more often and there is higher potency in their milk,” he said. Mr Sprunt said his father John established the Yalcara Jerseys stud in the 1960s, and he preferred Jerseys over other breeds for a number of factors. “They are not as big as other breeds, they are
easier to handle, their components are higher, that’s what we get paid on, and their feed conversion is far better.” Mr Sprunt, who milks 160 cows, explained what he looked for when purchasing additions to his herd. “I look for strong ribs, a well-attached udder, a long muzzle and a cow that will last years,” he said. The tour was part of the 60th anniversary of the Goulburn Murray Jersey Breeders Club.
Peter Sprunt uses American genetics for his Katunga herd.
Left: Nathan Chilcott from Tasmania and Pat Nicholson of Girgarre check out the cattle.
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MURRAY REGION // 5
Quality milk is family tradition FOR SECOND-GENERATION Wyuna dairy
farmer Jack Young, maintaining great milk quality isn’t just rewarding — it’s a family tradition. Jack’s parents, Julie and Stuart, started farming in the Murray region 25 years ago. Julie instilled in Jack and his brother Alec a passion for milk quality that they still embrace today. With two generations of knowhow when it comes to milk quality, it’s no surprise the Young family farm is one of the winners of the 2018 Australian Milk Quality Awards. The awards recognise farms which have achieved the best milk quality based on annual average bulk milk cell count across Australia’s milk processing companies. Jack employs two full-time staff members — a milker and a 19-year-old farm hand who is keen to learn more about dairy farming. In Jack’s eyes, a big part of learning how to manage milk quality is taking Dairy Australia’s Cups On Cups Off and Countdown courses to learn the industry’s best practice to achieve outstanding milk quality on-farm. “I’ll be encouraging both my staff to do Cups On Cups Off courses. Staff are key to any farm operation and we’ve got to make sure they’re across what’s in these courses,” Jack said. But with the winter months bringing cold and wet conditions, Jack knows it will be as important as ever to pay extra attention to his cows to maintain his milk quality. He’s encouraging
Brothers Jack and Alec Young. The Young family was among the best performers at the 2018 Dairy Australia Milk Quality Awards.
others to do the same. “My biggest tip is to pay attention to dry-off procedures. If you’re not doing your dry-off right, you’re setting your cow up for failure before she’s even lactating,” he said. “It’s just so important to maintain hygiene. That’s the key message, right through your whole dry-off procedure and your whole milking routine. “Make sure you wash your machinery and clean your cows’ teats. It’s about looking after
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DAIRY NEWS AUSTRALIA AUGUST 2018
6 // MURRAY REGION
Young Dairy Network social event
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Above: Young Dairy Network co-ordinator Harriet Bawden and Young Dairy Network steering committee chair Mark Palmer welcomed guests as they arrived at The Vault on July 27.
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DAIRY NEWS AUSTRALIA AUGUST 2018
8 // MURRAY REGION
Industry split on code RODNEY WOODS
FONTERRA AUSTRALIA and Saputo Dairy
Australia have different views on whether a voluntary or mandatory code of conduct is the best way forward for the dairy industry. Fonterra’s managing director René Dedoncker has called for patience when it comes to any changes to the current dairy code. “We absolutely support the voluntary code and we just think it needs time to be tested,” he said. “We need to give it space, give it an amount of time so we know it works before they move to a mandatory code. “A mandatory code is a step too far, too soon, and will have unintended consequences that will make everyone risk-averse and potentially make more costs.” Despite costs also being an issue for Saputo chair Lino Saputo, he is in favour of the Australian Dairy Industry Council’s recommendations. “We continue to support the 11 points listed in the voluntary code of conduct put forth by ADIC, and believe this code should be mandatory for all processors — big and small,” Mr Saputo said. “We believe that a mandatory code of conduct should be managed by dairy industry bodies and the supplier community. “Our only concern in regards to a manda-
tory code of conduct is cost. We want to ensure its regulation/enforcement isn’t onerous on the system. “We are ready and willing to support its implementation in any way we can.” Mr Saputo even provided a recommendation of his own. “We would also like to add a provision stating that step-downs (and claw-backs) should be illegal.” Dairy Connect chief executive Shaughn Morgan and Farmer Power executive officer Garry Kerr agreed with Mr Saputo. As part of its 18-month review into the industry, the Australian Competition and Consumer Commission also called for the code to be mandatory. The UDV is against a mandatory code, saying the ACCC’s review confirmed its concerns about the time a mandatory code would take to develop.
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Gerry’s dairy for sale ADMINISTRATORS FOR Coomboona Holdings are putting up the big Undera dairy business for sale. The company was placed in voluntary administration in March. The dairy business gained significant coverage when Harvey Norman founder and executive chairman Gerry Harvey announced his company had bought 49.9 per cent of the business in September 2015. The multi-million dollar dairy near Undera, which was established by Alex Arena, was originally expected to milk up to 6000 cows and grow a substantial amount of its own feed. The dairy had consistently registered losses, with its 2017 annual report noting a loss of $5.95 million for the year ending June 30, 2017, following a $2.71 million loss for the year ending June 30, 2016. The farm has been listed with Elders Real Estate on instruction from Stewart McCallum and Ryan Eagle of Ferrier Hodgson, and the sale process is being managed by Elders executives Nick Myer and Anthony Stevens. According to Elders, the dairy boasts state-of-the-art technology combined with modern purpose-built infrastructure and a premium quality milking herd originating from some of the world’s highest profile registered Holstein genetics.
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10 // MURRAY REGION
Farming is family’s blood < Continued from page 1
Karen does most of the milking while Colin does most of the irrigating. Each family member steps up in to different roles, depending on the season and who is rostered on. They all work a nine-day fortnight with five days off. “We all have our own strong points and can jump into other roles when needed,” Karen said. The Gambles have been focusing on growing their business so it is capable of supporting the whole family into the future. The milking platform is about 100 ha and they have about 160 ha used for agistment and fodder production, some of which can be irrigated. They calve four times a year and cut their own hay and silage. “We don’t use any contractors at all, we do everything ourselves except for some agronomy and nutrition advice,” Chris said. They are currently milking 320 cows with plans to have herd numbers to more than 450 by the end of the year. “Our farm is not big enough at the moment to support all of us and we can’t continue to go backwards so we are trying to grow our business to a sustainable and profitable level,” Colin said. The family made a huge decision to invest in a 400-cow, cement feed pad last year.
Ashleigh and Chris are the fourth generation of the Gamble family to farm the land at Bamawm.
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MURRAY REGION // 11
Building a feed pad last year has had numerous benefits for the Gamble family’s herd, including increased production and greater cow comfort over the long hot summer.
It is 120 m long, has a full flood wash, sprinklers and loafing area, and there are plans for a roof in the future. They carried out the majority of earthworks themselves, which Colin estimates would have saved them at least $50 000 in costs. “The main reason we built the feed pad was to reduce food wastage,” he said. They believe they are now saving a couple of bales of hay a day, not to mention an increase in production. “Last summer production was up — instead of just surviving the heat the cows were comfortable and milking well. They would come up from the paddock, get under the sprinklers and stay cool on the hot days,” Ashleigh said. Having been farming together since 1984,
Colin and Karen are no strangers to the ups and downs of the industry. In fact in 1985, times were so tough some farmers were shooting their cattle. “We just had to hunker down and do the best we could, it was just he two of us back then, now there are four of us to think about,” Karen said. In 2002 they invested in a new 16-a-side rapid exit dairy with computer ID to cut out a labour unit, the same year milk prices reduced by 25 per cent and the decade-long millennium drought had begun. “It was the worst drought in living memory and that was when we stopped buying the paper because there was so much bad news around,” Karen said. They hunkered down again and cut costs
The Gambles have seen the ups and downs of the industry.
where they could to survive, and today they have no regrets about investing so heavily in the dairy, as it is now one of the keys to success for their business. “It was certainly character building at the time to say the least,” Colin laughed. While there have been many ‘character building times’ for the couple over the years, Karen and Colin are now worried about the future for the next generation. Not just for their family but the whole industry. “I have every confidence in my kids to run the business and do a great job but the financial returns need to be there for them in the future,” Colin said. “The way the industry is at the moment every kick needs to be a winner and if you make the
Ashleigh Gamble.
odd mistake, it just sets you further back down the line.” The Gambles all agree milk price is a huge obstacle moving forward, as is water availability in northern Victoria. The increasing cost of water is putting pressure on all farmers’ ability to produce milk. Ashleigh also believes the industry needs to do a better job of promoting itself. “Our industry needs better exposure about all the great things we do, including the health and wellbeing of our animals,” she said. “There is a huge disconnect which needs to be addressed for our industry to move forward.”
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DAIRY NEWS AUSTRALIA AUGUST 2018
12 // MURRAY REGION
Education goes outside the classroom TESS BLAKE has just spent 12 weeks on work
placement in the dairy industry as part of her final year of a Bachelor of Agricultural Science at Charles Sturt University in Wagga Wagga. Ms Blake’s placement was organised by Murray Dairy and was designed to give her experience across the industry’s service sector, working with agronomists at Advanced Ag and nutritionists at Reid’s Stockfeeds, in addition to the extension staff at Murray Dairy. Here she shares some of her experiences.
Where do you come from originally? I am originally from Cobden down in south-west Victoria but am currently studying in Wagga.
What attracted you to agriculture? I have always been an outdoors and hands-on person. I originally thought I would become a vet but once I started the agriculture degree and all of these alternative career pathways displayed themselves I didn’t even consider transferring at the end of my first year.
What was a highlight of your time at Murray Dairy and why? The whole experience was fantastic, being able to work with the Murray Dairy team and participate in a variety of workshops was really insightful and I learnt a lot. However, the Young Dairy Network tour to NSW was a major highlight. Get-
ting to meet heaps of new and like-minded people as well as getting to see some of the leading dairy production systems in Australia. The technological advancements that some of these systems had implemented to be more selfsufficient and sustainable were unbelievable. We were also exposed to other agricultural industries. It was great to see what else is out there and that across industries there are some similar issues in regards to education and training and, of course, water.
Tell us a bit about the project you completed as part of your placement — what did you set out to learn and what did you find? As part of my studies at CSU I undertook a small research project that saw me interviewing farmers and service providers on a topic of interest specific to dairy farming. I was looking into nutrient management and home-grown feed production. I spoke with five dairy farmers, three service providers and two industry representatives about the changes within dairy systems in the region and where farmers were sourcing information from. I wanted to learn about nutrient management practices on farm and whether this was a key priority for dairy farmers in northern Victoria. Very early into the interviews, I identified that water was actually the main driver for on-farm feed production. Nutrient management did appear to have
In her research project, Tess Blake found water was one of the main drivers for farm feed production.
room for improvement, but water management and crop diversification to increase the water use efficiency were very clearly the key focus for everyone interviewed.
What advice would you offer other students in agriculture?
comes your way. My placement with Murray Dairy has really opened my eyes up to the amount of opportunities out there for young people in agriculture. In order to develop and gain confidence within the industry we need to get ourselves out there, so taking up every opportunity that is on offer is really important.
Be open-minded and take every opportunity that
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DAIRY NEWS AUSTRALIA AUGUST 2018
MURRAY REGION // 13
Making timely decisions MIKE STEPHENS
MOST DAIRY farmers are used to measuring
the production of milk and are aware that they need to be producing solids. That is the basis on which they get paid and in terms of the output per cow, most farmers have a good understanding of their current situation. However, there is room for improvement in measuring the amount of feed which goes into each cow, the cost of that feed and the relative cost of bought feed and/or of buying fertiliser and growing grass. The escalation in the cost of production in the years from 2005 to 2017 has been largely to do with the reliance of brought-in feed rather than the reliance on fertiliser and growing grass. Low-cost producers are not necessarily lowoutput producers. Low-cost producers can have high output in terms of product for sale, but they keep their costs down because the bulk of the feed is produced from grass. Measuring, monitoring and then being able to take the necessary management interventions in time to ensure that goals are met, are all important parts of ensuring the business performs. This measuring, monitoring and interven-
tion extends not only to cows and grass, but also to machinery performance and the performance of people. Annual assessments of a cow’s performance, keep or cull, are important, while annual employee reviews are also important. But in the same way as you can monitor the performance of an individual cow and make appropriate feed adjustments, you need to continually monitor the performance of people and make adjustments. In measuring, monitoring and intervening in the performance of people, it is wise to have much more regular contact than the annual review.
There is real value in regular conversations one-on-one between the supervisor and the employee. The employee can be asked to list one thing that they are going to do which will make the job easier, more enjoyable and/ or make sure that they are more effective. But it needs to done on a regular basis. Just like it is with cows! At the same time as the various managers are monitoring the performance of cows, feed and people, the CEO should be monitoring the financial performance of the business. If you have chosen to grow the business, retire and keep the business in the family, monitoring
financial performance is of extra importance. If you have two children, assume that you require a million dollars to retire, that the generation interval is 30 years, and you want to give the children an equal start. To achieve this, you will need to grow the business by 7.9 per cent annually (see Table 1). That 7.9 per cent is not the return to capital. It’s the growth. If you aim for that you had best concentrate. • Mike Stephens is a consultant with Meridian Agriculture, and works with farming families in developing business strategies to enable growth and succession.
Start $
End $ (start plus 30 years)
Annual % growth in business Annual % growth Total % growth required to keep required of land required annually up with inflation
1
$ 1 000,000
$ 3 365,004
2.9%
4.1%
7.0%
2
$ 1 000,000
$ 4 365,004
2.9%
5.0%
7.9%
3
$ 1 000,000
$ 5 365,004
2.9%
5.8%
8.7%
4
$ 1 000,000
$ 6 365,004
2.9%
6.4%
9.3%
5
$ 1 000,000
$ 7 365,004
2.9%
6.9%
9.8%
No of children
Table 1: Growth required for a viable continuing farm and numbers of children receiving an equal share (assuming there is $1 million required for retirement).
.99%
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DAIRY NEWS AUSTRALIA AUGUST 2018
14 // MURRAY REGION
Turning dreams into reality SOPHIE BALDWIN
FIVE YEARS ago Dean and Sarah Kendrick took a huge leap of faith and bought a dairy farm. Not a strange thing to do really, except Mr Kendrick was a builder in Melbourne and his farming experience was limited to some time spent on his grandparents’ farm when he was growing up. “I used to go there as a kid and I just loved it,” Mr Kendrick said. “The memories and the freedom, it was something I really wanted my own children to experience — not just a patch of dirt the size of a matchbox in the backyard of a house in Melbourne.” In September 2013 that dream became a reality and the Kendricks, including their four children, began their dairying journey on a 50 ha farm just out of Kyabram (although Mr Kendrick did move up three months earlier to learn the ropes from the previous owner). And it seems all family members have embraced the change and now love their life in the country. Mrs Kendrick laughs as she remembers in the early days, Mr Kendrick heading off to get the cows for milking followed by the dogs and a line
of children on motorbikes. “Our neighbour used to kill himself laughing when he saw that,” she said. The decision for the family to buy a farm was not taken lightly and it did take them two years to make the move. Their wish list was to stay in Victoria and they liked what they saw at Kyabram — its close proximity to town and good dirt were attractive, but so was the fact it was a smaller farm. “At 50 ha it could be attractive to anyone and easy to sell if we ever have to but I am hoping that won’t ever be the case,” Mr Kendrick said. “We want to build up something for the kids down the track, something that is sustainable and viable and I would love to be farming with my son or daughter one day in the future.” Starting out with nothing wasn’t easy, but the couple has made the dairy dream come true over the past five years through willpower, determination and lots of hard work. “We started out with no tractor and no cows,” Mr Kendrick said. “We had nothing and knew nothing and it really was a massive learning curve for us all. We chucked ourselves in the deep end and really challenged ourselves, but I always knew in the back of my mind it would be worth it.” The couple initially bought a herd of 80 cows, picking up an extra 20 here and there.
Sarah and Dean Kendrick with two of their four children, twins Bella (left) and Matilda. They have embraced life as dairy farmers after moving to Kyabram from Melbourne five years ago.
This season they will be milking about 150 splitcalving cows. Mrs Kendrick does most of the milking, a job she surprisingly found she loves. “I get a real kick out of watching our cattle
grow, especially the heifers coming through, and life is so much quieter in the dairy then a house filled with four children.” Mr Kendrick feeds the calves, along with help from whoever of the four kids is available at the
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DAIRY NEWS AUSTRALIA AUGUST 2018
MURRAY REGION // 15
time, and it really has been a family effort to get to where they are today. The couple has invested heavily in upgrading the dairy and spent quite a bit of time improving pastures and installing Padman stops to the irrigation infrastructure. The pasture consists of 30 per cent lucerne, 40 per cent permanent pasture and 30 per cent annuals — a mix Mr Kendrick is pretty happy with. “I have met lots of great people who have been happy to share their information and experience with me, along with our farm consultant who has been great as well,” he said. “We are starting to see some of the rewards now as our pastures improve and our heifers start to come through the herd and it really is a great feeling.” Over the next 12 months the Kendricks would
like to be able to automate their Padman stops to help reduce some of the workload. Long-term they would like to build a feed pad to take some of the pressure off their pastures during wet months and to cool the cows off during summer. Like most northern Victorian farmers, the Kendricks are feeling the pinch of tight times. “The first couple of years were good but the last two have been very tough and the biggest worry we face in our future is water,” Mr Kendrick said. “When we moved here we did buy some permanent water so we have a little bit up our sleeve, but it certainly is the biggest threat to our business moving forward. “It is a terrible feeling to struggle to pay your bills, especially when that has never been the way we have done business before. The milk price
isn’t keeping up with the cost of production, which is putting pressure on everything.” The couple says dairy farmers are a resilient group and only the tough ones are left in the industry — but there is a limit to how far and how long people can struggle. “We would like to build stock numbers up but the bigger you are the harder you can sometimes fall so it’s all about growing our business to a sustainable point,” Mr Kendrick said. “It doesn’t seem to matter whether you milk 200 or 600 cows, everyone seems to have the same worries and concerns at the moment.”
Bella (left) and Matilda with three of the family’s five farm dogs – Ted, Roxy and Jessie.
Matilda Kendrick loves the animals and can often be found milking or feeding calves, especially during the school holidays.
The Kendricks’ dairy.
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DAIRY NEWS AUSTRALIA AUGUST 2018
16 // MURRAY REGION
Winter champions crowned SOPHIE BALDWIN
THE FIFTH annual National Herd Development Winter Fair has come and gone, with four-year-old Cairnsdale Sid Anastasia, owned by the Gardiner family from Five Ways in Cardinia, crowned Supreme Senior Champion. Despite tough times in the industry, organisers were pleased with the crowd and quality of cattle on show in Bendigo on July 4 and 5. Associate judge Henry Bevan said the fair had been an amazing experience. “To stand alongside someone like Justin Burdette and judge this type of quality cattle is outstanding,” Mr Bevan said. “It really is a great facility and a real credit to the organisers — this is the first time judging an event like this and it is something I am very proud of.” Kim and Brent Mitchell from Bamawm were delighted when their four-year-old, Mitch Aftershock Irene, took out Reserve Intermediate Champion. Mr Mitchell said she continued to impress. “Irene hasn’t done too much wrong by us and we are pleased she looks so well after calving. She is just an outstanding cow,” he said. “She has given us a Chill heifer calf and an
ET heifer in our autumn drop and we are looking forward to continue to develop from her.” Jane and Murray Polson travelled 13 hours from Taree in NSW to Bendigo for the winter fair, with a team of two cows and three heifers. They left with Reserve Intermediate Champion and Supreme Junior Champion. “We came down for the fair two years ago and did well so we decided to come again this year. We love the concept of the show and it is a good time of the year to show cattle,” Mr Polson said. He said it was important during hard times to get off the farm. “It was a tough year two years ago and we travelled down to the winter fair and it ended up being a real highlight of the year for us. This is a real love for us and it is our hobby — this is always a great, well-run show.” The winter fair will be back in 2019 and organiser Clare Modra said they would continue to tweak the event. “Our numbers were consistent and as always, we had a very strong junior show,” Mrs Modra said. “The quality through the milkers was excellent and there was a lot of online interest in the sale. It has been another good show for us.”
(From left) Wally, Ava, Indi and Ben McInnes enjoy a day out at the winter fair.
Reserve Intermediate Champion Mitch Aftershock Irene owned by Brent and Kim Mitchell from Bamawm.
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DAIRY NEWS AUSTRALIA AUGUST 2018
MURRAY REGION // 17
WINTER FAIR WINNERS Supreme Senior Champion: Cairnsdale Sid Anastasia, JH and CJ Gardiner. Reserve Senior Champion: Mitch Aftershock Irene, Mitch Holstein. Red Senior Champion: Willow Crossing Contender Sallie Red, RJ’s Holsteins.
Renae Anderson from Yarroweyah keeps a keen eye on her charge.
Judges Henry Bevan (left) and Justin Burdette cast their eyes over the line-up.
Reserve Red Senior Champion: Bluechip EV Sweet Apple Imp ET Red, C. Hallyburton, B. Salmon and J. & J. Jennings. Supreme Senior Udder: Cairnsdale Sid Anastasia, JH and CJ Gardiner. Supreme Intermediate Champion: Fairvale Bradnick Josie 118, Bluechip Genetics and Fairvale Holsteins. Reserve Intermediate Champion: Mario Park Atwood Midas, MD and JE Polson.
Sienna Ross from Katamatite was voted by the judges as the up-and-coming talent recipient. Sienna was excited by the win and said it was “incredible” she won out of so many entrants.
Alex Crawford from Gorbro Holsteins at Cohuna.
Bluechip Genetics and Fairvale Holsteins. Supreme Junior Champion: Mario Park Solomon Midas, MD and JE Polson. Reserve Junior Champion: Paringa Solomon Applepie, Pam Malcolm. Red Junior Champion: Eclipse BC Red August Red, Eclipse Genetics and Bluechip Genetics. Reserve Red Junior Champion: Sun Vale Awesome Jodie Red, B. and J. Gavenlock. Youth Junior Champion: Hawova Solomon Tamie, Shaw, Clarke and Sieben. Reserve Youth Junior Champion: Wyena Bmac Caboose, Cally O’Shannassy. Premier Breeder: Bluechip Genetics.
Red Intermediate Champion: Budgeree AA Jodie ET Red, JH and CJ Gardiner.
Premier Exhibitor: JH and CJ Gardiner.
Supreme Intermediate Udder: Fairvale Bradnick Josie 118,
Junior judging overall winner: Katie Anderson.
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DAIRY NEWS AUSTRALIA AUGUST 2018
18 // MURRAY REGION
Strength in numbers SOPHIE BALDWIN
INVERGORDON DAIRY farmer John Bell
believes there is a strong future ahead for the Australian dairy industry, but it must change and evolve to benefit. He said the current farm gate milk price needed significant improvement for a healthy and robust dairy industry. Rising feed and water costs would negatively impact any gains from today’s milk price and further damage an already frail industry. Mr Bell said dairy farmers could improve their profitability by using their collective bargaining power for a better farm gate milk price. “Processors want milk at the lowest possible price, supermarkets compete to sell milk at the lowest price to the consumer — which negatively impacts on producer profitability,” he said. “The options left to dairy farmers are to involuntarily reduce production by leaving the industry or demand a better farm gate milk price to remain viable.” Mr Bell said it might be hard to quantify what was a reasonable price in today’s market, but he believed a flat rate of more than $6.50 kg/MS was not unrealistic — there were already processor benchmarks and price disparity in excess of $6.30 to some suppliers. “There is a shortfall of milk as a consequence of Murray Goulbourn and Fonterra’s actions, which the industry has not yet recovered from. Diversity into A2 and organic milk also adds a new dimension to this shortfall. “If dairy farmers are to increase production to pre-Murray Goulburn and satisfy the demands of processor and consumer, the industry will need more cows. However, there will be a real time lag to reach those previous production levels. “The window of opportunity exists for the average dairy farmer to use their collective
bargaining power for a better farm gate milk price now.” Mr Bell said many Australian dairy farmers seemed unable or unwilling to work together to bring about change. “If we have a united front, we can get a better return on our investment and no dairy farmer would have to rely on government handouts to put food on the table.” As a former Murray Goulburn supplier, Mr Bell was incensed by the lack of corporate governance and the MG board passing its failure onto the suppliers. At the time he was vocal for suppliers to unite and initiate legal action, but a lack of unity — compounded by loyalty and complacency — thwarted any such action. “I was staggered to learn during that period that many farmers were receiving food parcels and Centrelink payments. “Milk is found in most Australian homes and yet farmers were producing it at significant loss to supply the processor, supermarket and ultimately the consumer. “No other industry principals would be subjected to such humiliation.” Mr Bell said the initiative of United We Stand and other like-minded individuals had the potential to become a game-changer in the industry. “Such core groups have commitment and motivation, but they need support and commitment from suppliers. “Many co-operatives evolved from core groups with similar ideals and established a business to represent the interests of farmers. In this instance such a core group, formally structured, would be a conduit for the suppliers to the processor.” Mr Bell has travelled the world extensively, involved in the oil industry for 40 years — working for major oil companies and establishing his own engineering and project management company in Melbourne with offices around the world involved in offshore drilling. “The core elements of my business involved
risk mitigation and leveraging off commodity changes and purchasing power, principles which can be applied in the dairy industry.” In 2014 he decided to change direction and invest in agriculture. He grew up on his father’s cropping farm in the United Kingdom and started work on dairy farms in the early 1960s. “My father used to buy his seed and fertiliser and sell his crops to the same people every year; he had the same misplaced loyalty for co-operatives that many dairy suppliers had for MG,” Mr Bell said. “At the age of 18, I sold his crops for him to new market outlets with a more profitable return. “My father’s traditional suppliers complained about the loss of my father’s business, but they had taken advantage of my father’s loyalty and inability to negotiate for years. “Agriculture is something I understood from my early days, however, farming in northern Victoria has not come without its own steep learning curves. “I bought my dairy farm in northern Victoria because Australia has been my home for 30 years and I firmly believed, and still do believe, there is a positive future in Australian agriculture despite the various negative events of the past few years.” The 435 ha farm is capable of milking 900 cows comfortably, although currently the herd size is sitting around 400. Soil types are sandy loam and clay soil, and about 235 ha are irrigated. The property is currently for sale. Mr Bell believes dairy farming is on the cusp of change. “There is a huge emerging export market in close proximity and new technology ready to be introduced. “Family farms will always be part of the industry, however, corporate farming will bring much-needed investment, embrace technology and open up career paths for the next generation.
John Bell is urging the dairy community to unite and support the establishment of a collective milk pool.
The future of the dairy herd.
“When our prime minister suggests ‘farmers need to show more resilience’, it demonstrates how ignorant the government is to the many challenges facing the industry, which include water traded as a commodity, restrictions on foreign labour and discouragement of foreign investment, which are all damaging to the industry and its future. “Farmers do not need handouts from the government; they need regulation in the industry, domestic and foreign investment and the opportunity for expansion, which will ultimately benefit all Australia.”
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DAIRY NEWS AUSTRALIA AUGUST 2018
MURRAY REGION // 19 A FESTIVAL OF FODDER The Australian Fodder Industry Association has teamed up with Murray Dairy to provide a demonstration and interactive field day, called the AFIA Fodder Festival. The day will be a mix of paddock demonstrations and presentations at the Elmore Field Days site this month. Attendees will have the opportunity to listen to tailored, expert-led presentations in how producers and farmers can work together to achieve the best possible outcome. How to understand mould and yeast counts, how to best balance rations with feed on-hand and how to build and manage long-term business relationships will also be discussed. The AFIA Fodder Festival will be held on Wednesday, August 29, with gates opening at 8 am for a 9 am start, in the Elmore Field Days agribusiness pavilion at 48 Rosaia Rd, Elmore.
Diary dates August Taking Steps Workshop on sharefarming, leasing and shared equity arrangements.
Tuesday, August 14 Milawa
Taking Steps Workshop on sharefarming, leasing and shared equity arrangements.
Wednesday, August 15
Tallangatta
Stepping Back Workshop on farm succession.
Thursday, August 16
Young Dairy Network Animal health and welfare trivia night
Corryong
Wednesday, August 22
Taking Steps Workshop on sharefarming, leasing and shared equity arrangements.
September
Finley
Tuesday, September 11
Cobram-Barooga
Friday, August 17
Dairy Farm Monitor report released.
Young Dairy Network Animal health and welfare trivia night.
Tuesday, August 21
Tatura
Event dates and venues will be advertised via Murray Dairy website, local media and the fortnightly eNews. For information on the events above please contact Murray Dairy on: (03) 5833 5312, admin@murraydairy.com.au or visit www.murraydairy.com.au
Free Dairy Business Management Support Murray Dairy and AgBiz Assist are facilitating free consultations for dairy farmers in the following areas: Business Mentoring A one-on-one consultation to support you to implement a farm business practice or skill, including record-keeping, accounting, budgeting or business analysis. For information or to organise a session, please contact: Lachlan Barnes Regional Extension OďŹ&#x192;cer Farm Business Management P: 0438 092 352 E: lachlanb@murraydairy.com.au
For those who understand basic farm business management but want a hand putting the theory into practice. The aim of this consultation is to help you feel more on top of your farm business management.
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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