Dairy News Australia – November 2020

Dairy code breach PAGE 5 SUPPORTING FARMERS

How one Queensland processor is supporting family farms.

PAGE 18

FUTURISTIC FARMS

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NOVEMBER, 2020 ISSUE 121 // www.dairynewsaustralia.com.au

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

NEWS // 3

ACCC examines dairy takeover SAPUTO’S PROPOSED acquisition of

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Lion Dairy continues to gather momentum.

The proposed purchase was recently put under the microscope by Australia’s competition watchdog, who encouraged farmers, supermarkets and processors to have their say on the proposal.

The Australian Competition and Consumer Commission sought feedback about the ethics and ramifications of the potential merger between the dairy processors earlier this month.

Lion Dairy and Drinks and Saputo both operate dairy processing plants and purchase raw milk from dairy farmers and milk brokers.

The two companies own the brands including, but not limited to: Devondale, Great Ocean Road, Liddells, Coon Cheese, Dairy Farmers, Masters, Pura, Farmers Union, Dare, Big M and Yoplait yoghurt.

The merger comes after Mengniu Dairy’s $600 million purchase of Lion Dairy failed to secure foreign investment approval earlier this year.

Saputo’s proposed acquisition of Lion Dairy is continuing to gather momentum.

Picture: AP Photo/The Canadian Press, Ryan Remiorz

Lion Dairy is Japanese-owned, Mengniu is Chinese-owned and Saputo is Canadian-owned.

Saputo is in the top 10 of dairy processors in the world and is the top dairy processor in Australia.

Lion Dairy has 10 processing plants and other assets in Australia.

The ACCC is expected to deliver and update on the sale, or a final decision by the end of the year.

Focus on top performers. PG. 21

DAIRY FARMERS GET HELP WITH ENERGY COSTS

Vet to study cow welfare. PG. 23 NEWS �������������������������������������������������������3 – 22 OPINION ���������������������������������������������������������� 6 MARKETS �������������������������������������������������������11 ANIMAL HEALTH ����������������������������23 – 25 MACHINERY ���������������������������������������26 – 31

More than 550 dairy farmers have been awarded grants of up to $20,000 to assist in lowering their power bills through upgrading to more energy efficient equipment.

The grants were awarded under the federal government’s energy efficient communities program to lower power costs so farmers can reinvest in their businesses and employment more people.

Energy Minister Angus Taylor said dairy farmers are at the centre of an industry every Australian relies on.

“With energy a significant cost of doing business in the dairy industry, these grants will help farmers lower

their bills and help ensure the long-term viability of their businesses,” Mr Taylor said in a statement.

“Helping these businesses to cut their power bills by becoming more energy efficient will ease the financial pressures they face while also reducing our emissions.

It’s a win-win.”

Agriculture Minister David Littleproud said energy use in milk cooling, milk harvesting and hot water production is one of the highest overheads in the dairy shed, so anything that can be done to reduce costs will help support the financial resilience of these farmers.

“Many businesses are struggling at the moment and dairy farmers, in particular, are continuing to do it tough in the drought and

the aftermath of devastating bushfires,” Mr Littleproud said.

“These grants will provide welcome support at a time when so many in the agricultural sector are struggling.

New grants have seen 550 dairy farmers get assistance to reduce their power bills.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

4 // NEWS

Better year for Victorian farms RETURNS FOR Victorian dairy farmers have

improved after one of the worst years in the past decade.

The Victorian Dairy Farm Monitor, which records the performance of dairy farms in the three main dairy regions, has reflected the cyclical nature of the industry as it moves towards recovery in 2019-20.

Most of the farms surveyed recorded a profit for the last financial year, but some were still impacted by the tough years prior to 2019-20.

Dairies showed resilience and innovation to lower costs and with a 17 per cent increase in milk price, average earnings before interest and tax was $1.68/kg of milk solids or $346,000 per farm.

Dairies in the south-west and Gippsland regions lifted milk production by sourcing relatively cheaper feed or capitalising on greater pasture availability.

Northern Victorian farms budgeted for high water prices and many chose to purchase fodder in favour of irrigating, which lowered costs and contributed to the better performance.

Most participant farms across all regions are expecting profits and milk prices to either remain stable or increase in 2020-21.

In 2019-20, average earnings before interest and taxes (EBIT) rose to $346,000 ($1.68/kg MS), a significant increase from $85,000 in 2018-19.

All but three farms recorded a positive earnings before income tax performance in 2019-20, lifting the average to the third highest level recorded for the project.

The average return on total assets (ROTA) also increased, up to 5.4 per cent from 0.7 per cent in 2018-19.

Farms were able to grow their business on average as reflected by return on equity (ROE) increasing from minus 3.5 per cent in 2018-19 to 8.3 per cent in 2019-20.

Seasonal conditions across the three dairying regions were characterised by challenges throughout winter and spring 2019, followed by a mild summer and good autumn 2020 rains.

Farms in each of the regions responded differently depending on the relative positions heading into 2019-20.

While nearly all Dairy Farm Monitor Project farms experienced positive profits in 201920, with consistent performance reported across the regions, many farms have not fully

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All A2 beta casein-only producing livestock (A2 cows) currently on the Drumborg farm are not included in the sale and will be relocated to the group’s remaining farms closer to Camperdown.

The ADNG board is reportedly pleased with the $6 million price tag, believing it reflects the strong demand for quality dairy farms in south-west Victoria, a place known as the ‘Golden Triangle’ of the domestic dairy industry.

An oversupply of milk and the two-hour drive from the farm to the processing plant were the main reasons given by the group’s board for selling off the property.

VR4630267

Jun

Gippsland

From the Victorian Dairy Farm Monitor Report.

recovered from the recent years of challenging conditions and lower performance.

In 2019-20, there was greater pasture availability in some regions (south-west and Gippsland) and lower feed prices in the second half of the season compared to the previous year.

This enabled farmers to source relatively cheaper feed and increase their feed and water reserves.

Average milk production increased from greater levels of feeding (6.4 tonne DM/cow in 2019-20, compared to 6.2 tonne DM/cow in 2018-19).

Find out what the top performing farms in each region did in 2019-20. See page 21.

PREMIUM DAIRY FARM FOR SALE A vertically integrated dairy group is selling off a premium farm in south-west Victoria because of an in-house milk surplus.

Australian Dairy Nutritionals Group (formerly Australian Dairy Farms Group) owns dairy farms and a Camperdown processing facility as part of its premium quality ‘farm fresh’ milk business model.

Soon the group will be commissioning an infant formula plant but, even factoring in the anticipated rise in milk demand, the farm in south-west Victoria was deemed unnecessary.

The Drumborg-based farm has entered the market at $6 million, with livestock and equipment subject to valuation.

May

The land and dairy is selling for $6 million plus livestock and associated equipment.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

NEWS // 5

Norco profit GEOFF ADAMS

SUPPLIERS TO AUSTRALIA’S oldest dairy

co-operative in Queensland and New South Wales are receiving an average of about 70 cents litre in farm gate milk price.

Norco is celebrating its 125th anniversary this year and has recorded an operating profit of $5.4 million on a turnover of about $680 million for the 2019-20 financial year.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has forecast an average milk price for Australian dairy farmers this financial year around 47 cents/ litre, down from the 50s in the previous year.

Norco chairman Michael Jeffery said last year’s result was achieved after increasing the base farm gate milk price paid to suppliers during the financial year by $17.1 million in an effort to address the severe increases in production costs experienced on farm.

The 100 per cent farmer owned co-operative mainly processes milk for the liquid milk market and ice cream products, and also runs a chain of rural supply stores.

Chief executive officer Michael Hampson said despite the disrupted year with drought, bushfires and COVID-19 the co-operative was able to increase the base farm gate milk price paid to member suppliers by $17.1 million.

He said the Norco brand accounted for $154.7 million in milk sales during the 2019/20 year, representing an overall growth rate of 15.9 percent.

Mr Hampson said his management team was focused on continuing to post results that would allow its farmer members to reinvest in their own businesses.

“Every decision we make is for the benefit and sustainability of our farmer members, the community and our co-operative,” Mr Hampson said.

“Between drought, bushfires and a global pandemic, the past year has been without precedent, however by delivering change and empowering our people, we have been able to record a large increase in value for our farmers and lay the foundation for further success.

“Norco is ultimately here for our farmer members, our team members and customers and we thank all of them for the contribution they have made to this excellent result.”

Mr Hampson said an increase in consumer demand would also allow Norco to further expand product lines.

“With Australians increasingly community focused when it comes to their purchasing habits, we have conducted extensive research to identify new products for them to enjoy and look forward to meeting their demands soon,” he said.

Norco processed about 214 million litres, up from 195 million litres the previous year.

Asked whether the co-operative was interested in acquisitions and had the capability to expand, Mr Hampson said the company was always looking at ways to increase value to its members.

Norco ended the year with $39 million in reserves.

Mr Hampson said an increase in consumer demand would also allow Norco to further expand product lines.

“With Australians increasingly community focused when it comes to their purchasing habits, we have conducted extensive research to identify new products for them to enjoy and look forward to meeting their demands soon,” he said.

Norco chief executive officer Michael Hampson.

FINE FOR DAIRY CODE BREACH The Union Dairy Company has been fined $10,500 after the Australian Competition and Consumer Commission issued it with an infringement notice for failing to comply with its publishing obligations under the dairy code of conduct.

The code requires dairy processors to publish standard form milk supply agreements on their website by 2pm on June 1 each year.

The ACCC alleges that instead of publishing its exclusive supply agreement on its website, UDC required dairy farmers to fill in an online form with data such as herd size and current processor before they could access the agreement.

UDC, a subsidiary of Warnambool’s Midfield Group and based in Penola, South Australia, also allegedly did not publish a non-exclusive agreement

until about two months after the June 1 deadline.

“Processors must make their milk supply agreements publicly available, rather than putting them behind a portal or other barrier,” ACCC deputy chair Mick Keogh said.

“In failing to properly publish its agreements by the time required by the dairy code, UDC may have made it more difficult for farmers to quickly access key

information and identify the best supply agreement and milk processor for their circumstances.

“We’re also concerned that UDC’s delay in publishing a non-exclusive agreement may have sent the incorrect message to farmers that UDC is not obliged to offer such agreements, and that farmers may have missed out on the option to consider a UDC non-exclusive agreement.”

DAIRY NEWS AUSTRALIA NOVEMBER 2020

6 // OPINION

EDITORIAL

Good news, at last If you’re a Victorian dairy farmer, you might be feeling a bit more optimistic this year.

The state’s latest Dairy Farm Monitor report is painting a positive picture, with returns on the rebound after one of the worst years in the past decade.

The 2019-20 results paint a story of an industry moving towards recovery, buoyed even further by improved seasonal conditions.

The authors of the report have pointed out how dairy farm businesses are going through different experiences in the same year.

In a year that’s had everything from bushfires to a pandemic, it’s good to see the hard work of dairy farmers paying dividends.

Most of the farms surveyed recorded a profit for the last financial year, but it doesn’t mean the effects of tough years prior to 2019-20 aren’t still being felt.

Past high input prices and poor seasonal conditions are making the financial recovery for a number of dairy farmers slower, with several good years needed to build real security.

Most participant farms across all regions are expecting profits and milk prices to either remain stable or increase in 2020-21.

In 2019-20, average earnings before interest and taxes (EBIT) rose to $346,000 ($1.68/kg MS), a significant increase from $85,000 in 2018-19.

All but three farms recorded a positive earnings before income tax performance in 2019-20, lifting the average to the third highest level recorded for the project.

It comes as national milk production also experiences an uptick.

The recent Dairy Australia Situation and Outlook report found the national milk pool will grow for the first time in three years.

Murray Goulburn is close to being wound up.

And it’s largely thanks to favourable weather, lower input costs and relatively firm farmgate milk prices, culminating in “some of the best dairy farming conditions of recent years”.

Pay day for MG shareholders Shareholders of the liquidated co-operative, Murray Goulburn, have received a 43 cents per share distribution.

Most of the assets of the once dominating dairy processor were sold to Saputo in 2018, but a shell company remained to finance litigation and pay for the costs of winding up the company.

The company had its roots in northern Victoria in 1950. Before it was sold it had assets of more than $1 billion and annual revenues of more than $2 billion.

At its height it was the largest buyer of raw milk and employed several thousand people.

A report to the special meeting on June 26 put the total assets of the remaining company at $264 million, with $259 million of that in cash.

The company paid $443 million to shareholders and unit holders immediately after the sale of the company to Saputo.

The liquidators announced an interim distribution of 43 cents per share to be paid on October 19.

Liquidator John Lindholm said a further and final distribution may be made, depending on the outcome of the last remaining legal action.

Advertising Max Hyde 0408 558 938 max.hyde@dairynewsaustralia.com.au Editor Alana Christensen (03) 5820 3237 editor@dairynewsaustralia.com.au Dairy News Australia is published by Shepparton Newspapers Pty Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd.

Regional editor news@dairynewsaustralia.com.au

The north struggled with high input prices and tough seasonal conditions throughout the first half of the season, making good business decisions key before improved seasonal conditions kicked in.

It was a similar story in the Gippsland region, before improved growing conditions helped facilitate a strong fodder harvest.

If you were in the west of the state, milk prices were up, and many were getting a chance to take their profit and reinvest in those much delayed jobs.

It’s a positive start to what many are hoping is a stronger few years across the nation, as the dairy industry continues to grow from strength to strength.

Publisher Shepparton Newspapers Pty Ltd Printed by Newsprinters Pty Ltd Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address P O Box 204 Shepparton, Victoria 3632 Australia

WWW.DAIRYNEWSAUSTRALIA.COM.AU

Dairy News Australia welcomes contributions from stakeholders in the dairy industry, and particularly from organisations wishing to advance the industry.

Contributions and photos can be sent to: editor@dairynewsaustralia.com.au Letters to the editor on topical issues are also welcome.

Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

NEWS // 7

Masterclass for aspiring farm managers THE NEXT generation of Australian dairy farm

managers will soon be able to take their careers to the next level with a new masterclass in dairy farm management.

The University of Tasmania and Dairy Australia have partnered to develop a masterclass to boost the capability of Australia’s dairy sector and address a national shortage of professional training pathways for dairy farm managers.

Dairy Australia learning and development manager Felicity Blackstock said the masterclass would help dairy mangers to maximise farm performance and lead successful teams.

“Attracting people to the industry and building skills are key commitments of the recently launched Australian Dairy Plan and we’re pleased this initiative will help to deliver on these priorities,” she said.

The masterclass will provide practical business management skills including financial management, leadership and human resources, business development and farm systems.

The 12-month course will include online learning and face-to-face workshops at a range of locations across Australia.

Aurora Dairies chief executive officer Ben James oversees large-scale dairy farming operations in Victoria and employs a number of dairy farm managers.

He said the masterclass was a step forward for the industry, which was seeing the number of people employed on farms increase.

“The role of dairy farm manager requires a diverse range of skills to drive farm business profitability and sustainability and the masterclass will support dairy businesses and employees for development in these roles,” Mr James said.

University of Tasmania associate professor Alistair Gracie said the masterclass was being built in collaboration with industry to ensure it supports the future growth of Australia’s dairy sector.

“Running a dairy farm is a complex business and with farms getting bigger and employing more staff, strong people and business skills are

vital to enabling and growing leadership in the sector,” Mr Gracie said.

“The masterclass will provide key business skills, but importantly will also offer networking opportunities for people to meet with and learn from others facing similar challenges.”

The dairy farm management masterclass is open to people working in the dairy industry across Australia.

Expressions of interest are invited prior to the formal application process opening later this year.

For more information, visit: utas.edu.au/ dairy-masterclass

Dairy Australia learning and development manager Felicity Blackstock said the masterclass would help attract people to the industry.

OMBUDSMAN TAKES ACTION The Fair Work Ombudsman has commenced legal action in the Federal Circuit Court against the operator of a dairy farm in the Toowoomba region, in Queensland.

Facing court is Mark Hess, who operates a dairy farm business trading as M.L. Hess Dairy Producer at Maclagan.

The regulator investigated after receiving a request for assistance from a worker — a working holiday visa-holder from France — who had been employed on a casual basis to do general farm work, house cleaning and to milk and feed cows.

A Fair Work inspector issued a compliance notice to Mr Hess in February this year after forming a belief Mr Hess had failed to pay the employee correctly for work he had performed between August and November, 2019.

The inspector believed the employee had been underpaid casual minimum rates and was not paid penalty rates for public holiday work in accordance with the Pastoral Award 2010.

The ombudsman alleges Mr Hess, without reasonable excuse, failed to comply with the compliance notice, which required him to calculate and back-pay the worker’s entitlements.

In line with the ombudsman proportionate approach to regulation during the COVID-19 pandemic, the ombudsman made several attempts to secure voluntary compliance before commencing legal action.

The ombudsman also alleges that Mr Hess also breached workplace laws by failing to issue pay slips to the employee and failing to keep records of the employee’s hours of work.

Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.

“Under the Fair Work Act, compliance notices are important tools used by inspectors if they form a belief that an employer has breached workplace laws,” Ms Parker said.

“Where employers do not comply with our requests, we will take appropriate action to protect employees.

“A court can order the business to pay penalties in addition to backpaying workers.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”

The ombudsman is seeking a penalty against Mr Hess and a court order to comply with the compliance notice, which includes rectifying any underpayments in full, plus superannuation and interest.

Mr Hess faces maximum penalties per contravention ranging from $6300 to $13,320.

A directions hearing has been listed in the Federal Circuit Court in Brisbane on November 13.

A Queensland dairy farmer is being taken to court after allegedly underpaying staff.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

8 // MANAGEMENT

Finding a way into dairying DANEKA HILL

IN A crowd of dairy farmers Justin Walsh stands

out as ‘the young one’ — but he doesn’t feel like an anomaly.

“There are far more young people interested in the dairy industry then people realise,” the 36-year-old said.

“In our area there are so many people who’d try and milk cows if they could ... but they can’t get a start.”

Mr Walsh manages a 280-head milking herd of Holstein Friesians and crossbreeds on the NSW south coast, just two hours from Sydney.

The region has four big processors (Lactalis, Lion, Saputo and Coles) and its proximity to a metro area means milk is in high demand.

Here the biggest threats to dairying are urban sprawl, cashed-up retirees and parents unwilling to leave the farm.

“Our biggest problem is the land prices going ridiculous. If you want to expand it’s really tough,” Mr Walsh said.

“What’s actually happening is less and less people who run the farms own the land they farm now.

“Even within families there is heaps of leasing going on because people can’t afford to buy their own farm right from the get-go.

“Sometimes people are stuck in situations — this is particularly true on family farms, I think — where the younger generation might have some ideas but they don’t get any leeway to implement them.

“We’ve been lucky in that my dad was happy to let me try things, but even we were a little bit in that spot.”

Mr Walsh started leasing his parents’ farm four years ago after 10 years working as co-manager with his father.

In just three years under new ownership, the farm — known as Waljasper Holsteins — has been recognised as one of the most profitable dairy operations in NSW after achieving $3.50/kg of milk solids in 2019, a major drought year.

Justin and Libby Walsh from Waljasper Holsteins. Picture: Dairy Australia

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MANAGEMENT // 9 Mr Walsh credits a driving need to improve for the success.

The high costs on the south coast meant Mr Walsh took on a “fairly significant” amount of debt to get started.

“I think sometimes debt can act as a bit of pressure getting you to improve all the time, and it can be a good thing,” he said.

“The traditional farmers who own everything and have no debt have no incentive to keep pushing things because they are comfortable where they are, whereas we’re at a stage where we can’t afford to run a not very profitable business.”

The first thing the new farmer did once the reins were handed over was look at Dairy Farm Monitor Project data and see what the most profitable farms were doing — then copy it.

The first point of interest was feed.

After seeing the most profitable farms didn’t import more than 40 per cent of their feed Mr Walsh vowed to do the same.

“We have more direct grazing now and the cows are doing the work for us so to speak.

“It’s been a big change and it means we’re spending less time and money feeding cows.

“At the same time we’re milking another 80 cows — a third more cows.

“We’ve become more profitable and we’re doing less work at the same time, that’s the definition of work smarter not harder.”

Next was going from year-round calving to split calving.

“Firstly it increases our efficiency because if we’ve got one cow calving, we might as well check on 10, and when drying cows off we’re drying twice as many and half the year we’re not drying any off,” Mr Walsh said.

Controlling when calves are on the ground also allows him to maximise pasture use.

“Managing your grazing is critical in this area because it can make a huge difference over the course of the year.

“We’ve almost doubled our pasture production since my wife and I took over from Mum and Dad. “We very closely follow the Pastures for Profit principals, and we use the Rotation Right tool.”

Out of all the upgrades rolling out on the farm, Dairy Australia’s Pastures for Profit (FPFP) program has made the biggest impact.

Mr Walsh credits FPFP with revolutionising his farm.

“It’s ingrained in our whole operation now, we are in the process of completely redesigning our whole farm layout so we can re-design our Pastures for Profit system,” he said.

The redesign includes centralising the laneways and making the paddocks a uniform size.

“The idea is if you can make the pasture feed even as much as possible then you can tinker with the grain in the dairy and see the immediate response,” Mr Walsh said.

“We are a high grain input farm so working out the exact amount we should be feeding each day is super critical to how much money we make, so if we can take out the pasture variable, we can really hone in on the grain side of things.

“Otherwise it is really hard to assess what’s going on and see ‘did I make more money or did I make less money by doing that?’.”

Over summer the farm has kikuyu pastures and every year rye-grass and oats are direct drilled into all paddocks on the 135ha milking

block (they also have 100ha of heifer and dry cow blocks).

“We do the whole farm every year. It costs a fair bit of money,” Mr Walsh said.

“We used to only do the rye-grass; the oats are a new thing we’ve been doing.”

He said the crux of the intense farm improvement mission was not to reinvent the wheel, but to bring proven ideas into the fold.

“It was more just trying to transition the business ... focusing on the big settings, to increase the profitability to then re-invest in the farm and lower our cost of production,” Mr Walsh said.

“It’s really easy to get caught up in day-to-day decision making, rather than keeping an eye on the direction of the farm.”

He said farmers could often miss opportunities because they weren’t looking for them.

“There are some fantastic resources out there for people who want to improve.

“I’m mainly talking about the Dairy Australia programs I guess; I sound a bit like a DA spokesperson, but we’ve really tried to use as much of that as possible to help us in all sorts of areas.

“Their employment starter kit for example has been really helpful because my wife and I had never employed someone when we took over, so we didn’t know about that side of things.

“It was an incredible resource to look at and I still look at it from time to time too.”

Mr Walsh had a word of advice to all dairy farmers out there — don’t get in each other’s way, especially when it comes to family.

“One of the things I see happening is that the transition (succession) takes so long, and is so drawn out, that the business really suffers and struggles to recover,” he said.

“Sometimes the business is going backwards

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or stagnating, so the transition needs to be quick — but that’s easy to say when you’re not emotionally invested in it.”

In his own life, Mr Walsh had the opportunity to lease a neighbour’s farm early on but didn’t take the opportunity because he wanted to “do the right thing” and stay with his parents’ farm.

“In hindsight we would have been better off personally if we took that opportunity,” he said.

“We would have been further along. If you wait around too long it can really affect you down the track because dairy farming is not the sort of thing you want to be doing into your 60s and 70s.

“I don’t want to be doing this amount of work for the rest of my life.

“I want to get in now while I’m still relatively fit, build up some wealth and retire.”

Another important piece of advice was to take a break from the family farm and come back with fresh eyes.

For Mr Walsh this break came in the form of a four-year ag-science degree in Sydney.

“I didn’t appreciate it (university) at the time but I knew it was the right thing to do,” he said.

“It gave me more insight into the business management side of it, rather than the technical farming side.

“Now if a sales rep comes or there is a course on I’ve got a leg up in the discussion when it turns technical.

“I can go ‘oh that’s right, that makes sense’ or sometimes ‘that’s complete rubbish, go away I’m not buying that’.

“In hindsight, with that break from the farm, I could see where I wanted to improve it.

“If I hadn’t done that I probably would have kept going like before.”

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

10 // MARKETS

More Asians hungry for milk GLOBAL RESEARCH undertaken by agribusi-

ness specialist Rabobank predicts Australia’s closest and most populated neighbours are going to be this decade’s hungriest consumers of milk.

According to Rabobank’s report on a ‘dairy export boom’ in South-East Asia, the current 12.9 billion litre annual milk deficit across the ASEAN countries will expand to 19 billion litres by 2030.

A milk deficit is when a country consumes more milk than it domestically farms.

ASEAN stands for Association of South-East Asian Nations, and contains a core six economies (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam) and others — more than 650 million people.

Importantly, the ASEAN economic region does not contain China, which has become a risky export country for many farmers.

Rabobank predicts the milk demand will largely come from ASEAN’s six wealthiest countries, known as the ASEAN–6, with Indonesia and Vietnam the standouts.

This predicted growth of 6.1 billion litres in the ASEAN countries outpaces China, currently the world’s largest dairy importer, where the annual milk deficit is forecasted to grow by 4.9 billion litres.

Rabobank senior dairy analyst Michael Harvey co-authored the report detailing the expected opportunities in the ASEAN–6 market.

“The absolute market size of these collective nations is significant, and a growing milk deficit over the next decade in South-East Asian countries will be a major ‘pull’ factor to propel dairy exporters to re-engineer their export growth strategies towards these markets,” Mr Harvey said.

“Given the scale and attractiveness of the ASEAN–6 markets, dairy exporters need to have the right level of exposure.

“And, while there are challenges, Rabobank is very optimistic about the future opportunities for dairy companies in these economies.”

Currently 35 per cent of Australia’s dairy exports go to China, with 30 per cent to SouthEast Asia.

Mr Harvey warned the ASEAN–6 would be a highly competitive market.

“Jostling for position in this market are a mix of strong local players with large and growing market share, established global dairy companies, other international dairy players seeking to broaden their scope into the region, and also major Chinese dairy interests,” he said.

Most South-East Asian locals consume dairy through milk powder, flavoured drinks and yoghurt.

This information comes from the industry report: Dairy export boom beckons in ASEAN–6 — with a push and a pull.

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A passion for fresh food and a growing middle-class in cities like Hanoi, Vietnam, make the ASEAN region a hot-bed for dairy exporters. Picture: Jessica Ball.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

MARKETS // 11

Global dairy balance at risk Key commodity price indicators 7000 6000

US$/tonne (FOB)

5000 4000 3000 2000 1000

Skim milk powder is also expected to increase in Australia and New Zealand.

Relatively mild weather throughout winter saw Australia’s milk pool recovery gain momentum, with milk production growing 3.5 per cent in August.

Favourable seasonal conditions combined with improved feed production outlooks and easing feed prices have continued to drive further optimism.

Similarly, in New Zealand, a mild winter provided drier than average conditions and favourable pasture growth.

In July and August milk production rose 4.6 per cent and 4.7 per cent respectively, with initial forecasts suggesting two per cent overall growth this season.

If realised, this production growth is sufficient to weigh on the market balance unless resurgent global demand can soak up the additional supply.

Measures implemented to mitigate the spread of COVID–19 have impacted demand

Whole milk powder

Butter

from the foodservice sector and adversely affected the economic growth in price-sensitive markets.

This has raised concerns about the robustness of global demand and its ability to support the current market balance.

Since the start of the pandemic, demand for dairy has been relatively muted in many price sensitive markets in South-East Asia and the Middle East/North Africa region.

Any buying has generally been in a hand-tomouth manner with significant hesitation around accumulating stock.

In comparison, China has remained an active buyer and helped to sustain global commodity prices for powders to date.

This robustness in demand seems to be supported by the country’s aim to maintain large inventories for reasons of food security.

While China has been able to financially support these larger stockpiles, South-East Asia and

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Cheddar SOFIA OMSTEDT 3,400 DAIRY AUSTRALIA 3,400 THERE IS no question the world has funda3,150 mentally changed in the short time COVID–19 has been with us.

3,100 Ongoing quarantine measures and increasing3,100 unemployment rates have bitten hard, with governments across the globe rolling out an 3,000 unprecedented level of fiscal stimulus to combat the imminent recession.

3,050 The latest Dairy Australia October Situation and Outlook report describes how the dairy 3,050 industry has fared better than expected, so far.

3,300 Global commodity prices have remained relatively well supported, through a combina3,450 tion of increased retail and (somewhat artificial) government-funded demand.

3,650 However, with global milk supply grow3,900 ing, government stimulus waning and consumption easing in key markets, the question 4,000 remains — how long is this support likely to last?

In the 4,000Northern Hemisphere, nationwide lockdowns coincided with the start of the peak milk production season.

4,000 This left local dairy industries in a precari3,750 ous situation, as on-farm production increased while high-volume dairy demand channels, 3,750 such as schools and restaurants, closed virtually overnight.

3,850 In the European Union, the European 4,050 and processors implemented incenCommission tives to slow milk production.

4,100 Combined with dry conditions in parts of northern Europe, these appear to have been 4,100 fairly effective, especially in April and May. Similarly, in the United States, the onset of 4,100 the pandemic resulted in processor-driven ini4,100 tiatives to subdue milk supply.

Farmers responded by curbing production; 4,100 however, culling was limited by the ongoing challenges 4,050facing meatworks.

Many had to rely on drying-off cows earlier and cutting feed rations, strategies that were 3,900 more easily undone.

3,900 This meant that production was quick to pick up again once limitations were phased out, 3,900 exceeding market expectations in July and August (up two per cent and 1.8 per cent respectively).

4,000 As the Southern Hemisphere progresses 4,100 through its spring flush period, milk production 4,150 4,150 4,100 4,000 3,900 3,900 3,900 3,900 4,000 4,100 4,300 4,300 4,200 KEENAN System 4,200

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other emerging markets have not had the finance for these sorts of buying programs.

While market shocks are not new, the measures taken to combat the COVID–19 virus, such as lockdown restrictions and social isolation, are what differentiates the current economic downturn from previous recessions.

With supply and demand fundamentals out of balance, governments all over the world introduced major economic support packages, which artificially helped to support dairy demand while aiming to subdue milk production growth.

Although these measures have proved relatively effective so far, they are temporary, with governments expected to begin to tail off support.

If this occurs, at a time when milk supply grows, there are significant risks weighing on the market balance in the months ahead.

Sofia Omstedt is a Dairy Australia senior industry analyst.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

12 // NEWS

Seeking a fair go for logo DANEKA HILL The Fair Go Dairy Logo created by the Queensland Dairyfarmers Organisation. If approved by the ACCC, the logo will be rolled out in Queensland in early 2021 on products paying a fair farm gate milk price.

AFTER THREE years of workshopping, the Fair

Go Dairy Logo has been unveiled.

Created by the Queensland Dairyfarmers Organisation, it’s hoped the logo will assist consumers in identifying which brands are paying farmers a sustainable and fair farm gate price, and will provide them with the ability to choose the brands supporting Australian farmers.

The Fair Go Dairy Logo is now in front of the Australian Competition and Consumer Commission, which will review the logo to ensure it does not breach any of the competition provisions before giving it authorisation.

QDO marketing manager Sarah Ferguson said she sincerely hoped Australians will get behind the scheme and support the QDO logo as it reaches its last hurdle.

“We are very aware that a logo that promotes a sustainable and fair farm gate price (SFFP) on an agricultural end-product is breaking new ground,” Ms Ferguson said.

The not-for-profit QDO said the writing of the ACCC application has been an “exhaustive and expensive process”.

“We believe the Fair Go Dairy Logo Scheme will be a significant win for all dairy farmers once it gains traction,” Ms Ferguson said.

“We would encourage any party who feels that this scheme could have a powerful benefit to consumers and to our farmers to submit feedback to the ACCC.” This includes general members of the public, consumer groups, political parties in both state

and federal parliaments, and other agricultural advocacy organisations.

If approved, the QDO plan is to launch the scheme in early 2021 throughout Queensland with a focus on fresh milk, cheese and other dairy products.

Views the ACCC seeks to assist it with licensing, or not licensing, the logo include: ■ Any likely benefit to the public resulting from the arrangements.

■ Whether the ‘Fair Go Dairy’ logo will assist consumers identifying which dairy products are made using milk from fairly paid farmers.

■ Any impact of the scheme on retail prices in Queensland.

■ Any harm of improvements to competition.

■ Any impact of the scheme on the farm gate prices for milk in Queensland.

■ Whether, and how many, farmers are likely to participate in the scheme.

■ The 10-year authorisation sought.

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NEWS // 13

Changes at Holstein Australia TWELVE SEEMS to be a lucky number at Hol-

stein Australia.

The group is saying goodbye to its outgoing director Patrick Glass, who is stepping down after 12 years.

Mr Glass comes from Kerrick Park Holsteins in Gundowring, Victoria, and is also a past president.

The dedicated Holstein enthusiast is being succeeded by fellow Victorian, Jaqueline Suares.

In an uncanny coincidence, the retirement of Mr Glass comes just one year after David Johnston retired following his own 12 years as a Holstein Australia director and president.

Mrs Suares is well known in the dairy industry through her work with DataGene and Dairy Livestock Services, and as deputy chair of WestVic Dairy.

In her downtime, Mrs Suares runs the Master Breeder herd Calderbrae Holsteins in Victoria’s Western District with husband Ross.

At the same AGM meeting held in early October, the second director position was filled by South Australian Gino Pacitti, from the Fleurieu Peninsula’s Misty Brae Holsteins.

Both have been elected for three-year terms.

The combined vision of the new directors

is to position Holstein Australia to survive the external challenges facing the dairy industry.

Mrs Suares said past wisdom needed to be honoured while scientific advances in genetics and technology were embraced to ensure the Holstein breed continued to underpin the profitability and sustainability of dairy farms in Australia.

“If we do not adapt and embrace the opportunities and requirements of the contemporary Australian dairy farm, we run the risk of becoming obsolete,” she said.

Mr Pacitti thanked Holstein Australia members for their vote and said he would ensure the association was “well positioned to meet any challenges ahead”.

At a board meeting following the AGM, vicepresident Garry Carpenter of Garerley Holsteins on Tasmania’s Gunns Plains was appointed federal president.

Jenny Grey of The Pines, Kiama, NSW, took up the vice-president position.

Mr Carpenter said both Mrs Suares and Mr Pacitti were long-term Holstein enthusiasts and advocates, and he said it was “particularly healthy” that four strong candidates stood for the two available board positions.

GARDINER HAS NEW CHAIR A veterinarian who specialises in research management has scored the top job at the Gardiner Dairy Foundation.

Len Stephens commenced his role as chair in mid-October, and has family connections to dairying in Gippsland where he worked early in his career before becoming the inaugural director at the Victorian Institute of Animal Science.

Dr Stephens is also a former director of Dairy Australia.

Outgoing chair Bruce Kefford said he was delighted to see Dr Stephens in the role.

“He brings to the chairmanship a wealth of experience in corporate governance and leadership, science, stakeholder engagement and project management across several agricultural sectors,” Dr Kefford said.

In accepting the position, Dr Stephens

said those involved with the dairy industry had a unique dedication to improvement and innovation.

“So I’m very glad to be back,” he said.

“It’s the right time to be back too. The extensive contributions and work that has been done on the Australian Dairy Plan has created a clear way forward.

“I am acutely aware that I have joined a team at the point where we must get cracking on the implementation.”

Dr Kefford said the dairy plan was a unique opportunity, bringing together people from across the dairy value chain to deliver a single plan.

“It provides a very good road map to a more profitable, confident, and united future for the industry,” he said.

The Gardiner Dairy Foundation is a not-for-profit hub which supports projects beneficial to the Victorian dairy industry.

New Gardiner Dairy Foundation chair Len Stephens with chief executive officer Clive Noble and retiring chair Bruce Kefford.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

14 // NEWS

Dairy farmer wins award

THINK ABOUT HAY SAFETY

SOUTHERN HIGHLANDS dairy farmer Cressida Cains has

won the 2020 NSW/ACT AgriFutures Rural Women’s Award.

Ms Cains said work would now begin to get her project Dairy Cocoon up and running, which will enable farmers to create industry and product specific business plans.

“I’m so proud to be a part of this amazing award and have the opportunity to turbocharge my project,” she said.

“It will include a range of business tools, information and education, as well as an online community to facilitate connections and support that meets the needs of the dairy industry.”

NSW Agriculture Minister Adam Marshall congratulated Ms Cains and awarded her with a $10,000 Westpac bursary, which will be used to develop her project Dairy Cocoon.

“Cressida is an outstanding winner and is passionate about supporting small scale farmers to adapt and grow their businesses,” Mr Marshall said.

“She will use her bursary to create an online platform and support hub that will assist dairy farmers to develop and produce their own unique branded products.”

Mr Marshall also congratulated runner-up Tammy Galvin of Narrandera, who will receive a $1000 NSW Government Leadership Skills and Development Bursary.

“I have no doubt we will see many great things from both these women in the years to come,” he said.

Regional Youth and Women Minister Bronnie Taylor said the awards were a great way of acknowledging the essential role women play in regional NSW. “It is fantastic to see women leading positive changes in industry in rural and regional communities through their unwavering courage, resilience and innovation,” Ms Taylor said.

Robertson dairy farmer Cressida Cains is the winner of the 2020 AgriFutures Rural Women's Award.

The NSW/ACT AgriFutures Rural Women’s Award is supported by Westpac, Country Women’s Association of NSW and the NSW Government.

Southern NSW Westpac Agribusiness regional general manager Sam Gaston said the award provided a platform for women to leverage their talents and passion for the benefit of their industries.

SAVE ON FERTILISER TURN EFFLUENT IN TO HIGH GRADE FERTILISER WITHCAN BIOFORCE LOOK WHAT WE DO…

They’ve got a day for everything these days, and National Hay Safety Day is making sure farmers don’t forget their basics.

October 25 proudly stands as the one day in the year that can call itself a ‘Hay Day’, and on that day Feed Central launched a new video and poster on hay safety.

The idea is to stimulate family discussion on the topic.

Feed Central general manager Cieran Maxwell said the video and free poster were a timely reminder that making and storing hay is risky business.

“We’re in the middle of the season so it’s an opportune time to remind everybody that hay can be dangerous,” Mr Maxwell said.

On top of spontaneous combustion resulting in shed fires, haystacks can also crush people by falling.

Feed Central is urging parents to make sure their children don’t play in hay sheds.

“The days of young kids playing in the haystack are long gone,” Mr Maxwell said.

“It can be fatal if one of the modern big square bales falls on them.”

The video and poster touch on five key issues: baling up good bales, storing hay well, preventing fire, moisture checks, and taking care when stacking, loading and handling hay.

The video features Ted Ford, the eight-year-old son of Feed Central manager director Tim Ford, doing a mock hay inspection.

Mr Maxwell said a lot of family members get involved in hay production.

“It’s a labour-intensive harvest and everyone should be talking every day about the risks and what can go wrong and how to prevent accidents,” he said.

Feed Central is sending out free copies of the poster to anyone who calls, and the Hay Safe Day 2020 video cane be found on Feed Central’s YouTube channel.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

NEWS // 15

Apply for tertiary scholarships APPLICATIONS ARE now open for $30,000

higher education scholarships available to students from dairy communities.

Every year the Gardiner Dairy Foundation offers seven tertiary scholarships to students starting full-time study.

To be eligible, the students need to be pursuing careers which will directly benefit the dairy industry or dairy communities.

Each scholarship offers up to $10,000 a year for three years.

Gardiner Dairy Foundation chief executive Clive Noble said the scholarships were an investment in people from dairy communities who will contribute to the “vibrant dairy industry”.

“We encourage students to return to dairy regions to share their new skills,” Dr Noble said.

“The scholarships help to overcome the significant financial disadvantages faced by rural students moving away from home to study.”

Former scholarship recipients have benefitted from being able to dedicate themselves to study without having to rely on part-time work.

The seven scholarships are named after dairy industry stalwarts: Niel Black, Shirley Harlock, Jakob Malmo, Bill Pyle, and Doug Weir.

Veterinary graduate Mitchell Dodds received the Jakob Malmo scholarship in 2014 and this year achieved his dream of becoming a practising vet at West Gippsland Vet Care in Warragul, Victoria.

Mitchell Dodds received a Gardiner Dairy Foundation Tertiary Scholarship to help support his university studies. He is now a practising vet in west Gippsland.

“From a financial point of view, the Gardiner Dairy Foundation Tertiary Scholarship enabled me to really focus on my degree,” Mr Dodds said.

“It’s difficult to work while studying veterinary medicine when you have 50 contact hours a week in the first two years.”

Hayden Jones, recipient of the Bill Pyle scholarship in 2013, said the scholarship helped him in moving to Melbourne and living on-campus.

“It meant I didn’t have to find a part-time job to support myself. I know some people who kept up part-time work while they studied but

I would have really struggled to do that,” Dr Jones said.

Applications must be submitted by December 3.

For more information, visit: gardinerfoundation.typeform.com/to/LrK1j9.

Completed applications must be submitted to: scholarships@gardinerfoundation.com.au

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

16 // NEWS

Perth’s milk run wins awards DANEKA HILL

WESTERN AUSTRALIA’S very own Brownes

Dairy has won the business world’s equivalent of an Oscar after bringing back the morning milk man.

To be entirely correct, the Perth-based marketing team from Multiplier Media won the award, after the dairy company launched household deliveries during the peak of Perth’s COVID–19 pandemic.

Labelled ‘The return of the Milkos’ the campaign was a massive success in WA’s city corner.

The launch post on Facebook reached more than 600,000 people in two days.

About 10 per cent of Perth’s population accessed the Milko web portal on the first day.

The award was a Gold Stevie — an internationally recognised mark of great business and ideas.

Multiplier Media and Brownes Dairy received the recognition for their efforts keeping the West Australian community connected during the COVID–19 lockdown.

It’s not the only award going into Multiplier’s cabinet — the Milko campaign also won Social Idea of the Year at the Mumbrella Awards and was named “best COVID pivot” by the Australian Financial Review.

Even post-lockdown (in Perth at least) the delivery service retains 9000 subscribers, with an average delivery order of $25.

Delivery is free after a minimum spend of $10.

Brownes Dairy sales and marketing director Natalie Sarich-Dayton said the Milko service “struck a chord of nostalgia” among Perth residents.

The return of the ‘milko’ run in Perth involves the delivery driver texting families when they are close, so a laundry basket can be placed out front for the driver to drop the order into.

“There’s also a lot of relief. Milk is one of those essential items that can cause stress in the household when you run out,” Ms SarichDayton said.

Multiplier Media’s managing director Heidi Cuthbert worked on the campaign.

“The Multiplier team really enjoyed helping Brownes to spread the word about Milko, to promote the roll-out of the door-to-door milk service,” Ms Cuthbert said.

“The Brownes Milko is now on track to be a $1 million retailer in 2020.

“We have created the modern milko, a new revenue and marketing stream which is fully incremental to our existing business.”

The company is far from the first to switch to home deliveries, but it is unusual in the fact

that specific brands rarely peel off and do their own deliveries separate from farmers’ markets and the supermarkets.

WA’s home-town pride in the company is visible in its success, and evident in the fact that State Premier Mark McGowan personally took part in the company’s recent launch of a WA-made cheddar cheese product.

The drivers will text a household when they are close by, and families will leave a laundry basket out the front of their house for the vendor to drop the ordered dairy products into.

This ad-hoc COVID-safe method has worked so well it’s being continued indefinitely.

More than eight products can be ordered, including milk, yoghurt and juice.

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NEWS // 17

What’s on in South Australia DAIRYSA HAS released a comprehensive

list of all get-togethers, upskilling courses and projects being held over the next few months.

In November, there are six events — two of them dairy discussion groups and one the highly anticipated 2020 Young Dairy Network Forum.

RSVP as early as possible to events so DairySA can gauge interest.

■ November 17: River and Lakes Dairy Discussion group, farm visit and peat soils visit.

■ November 18: Mt Gambier ladies’ lunch.

■ November 19: Farm business fundamentals online (a six-week program to help with managing the farm).

■ November 23 and 24: 2020 Young Dairy Network Forum at Tailem Bend, for both farmers and service providers. Registration essential.

November 26: Barossa Mid-North and Mt Torrens Dairy Discussion group (quality feeds and understanding feed tests).

Interest is still being sought for a bushfire and emergency preparedness course. The course will focus on farm readiness solutions.

In December, there are four events with confirmed dates. These are: ■ December 1: Dairy Australia’s Our Farm Plan program. One-to-one farm business planning support and help to reach farm goals.

■ December 1: People in Dairy Discussion Group (via Zoom).

■ December 1 to 13: Artificial insemination course on the Fleurieu Peninsula. All spots taken at time of print. Another course will be held in March but spaces remain limited.

Most farmers spent time on a waiting list — get your name in ASAP if interested.

■

December 8: Cool Cows. Seeking expressions of interest in this course (both Central and South-East regions).

A further seven events are being held in December, but don’t have an exact date confirmed. These are: ■ Cups On Cups Off: Still up in the air is the Cups On Cups Off course for using milking cups. Dairy SA is awaiting confirmation of a date for this upskilling opportunity, and it may fall in November or December.

■ Breakfast: The annual Dairy Farm Monitor and Situation and Outlook breakfast. This year it is open to all service providers and farmers in Central and South-East regions.

■ Barossa: The Barossa Mid-North end-ofyear get-together.

■ Mt Torrens: The Mt Torrens end-of-year get-together (likely December 10).

■

River and Lakes: The Rivers and Lakes endof-year get-together (likely at Wellington/ Murray Bridge).

■ Fleurieu: The Hills and Fleurieu end-of-year get-together.

■ South-East: The South-East end-of-year get-together.

January has just one event scheduled — a rearing healthy calves workshop pencilled in for mid to late January.

It might feel like a long way away, but March 2021 already as a few events lined up.

The first is the sought-after AI course on the Fleurieu Peninsula (nearly full) and the second is the DairySA central conference on March 18.

Anyone wishing to discuss details or RSVP should contact DairySA regional extension officer Beck Burgess via email at: beckburgess@dairysa. com.au or phone 0438 262 966.

■

DairySA has plenty of events planned for the coming months.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

18 // NEWS

Processor saves family farms DANEKA HILL

ROSS HOPPER might be the first processor Dairy

News Australia has ever done a feature story on.

He doesn’t own a farm or have any cows, but what Mr Hopper does have is a factory that has saved dairy farms in his region and produces a trusted Queensland brand.

Family support, the Guernsey cow and good old fashioned stubbornness made it all possible.

The Maleny Dairies logo likely rings a few bells for Sunshine State locals — the cartoon Guernsey cow, the shady green and the honest packaging.

For those outside Queensland, this might be the first time you’re hearing about it.

“We’re a Guernsey milk brand,” Mr Hopper said.

“That’s what my dad had and it’s now our point of difference. You can’t charge a gourmet milk price with Friesian milk, because everything else is Friesian milk.

“We pasteurise 260,000 litres of milk a week at the moment, and we’ve got the ability to go up to 500,000 litres.

“We’ve got 12 farmers who supply us, and all of their herds are majority Guernsey or Jersey, which is our second choice breed.”

Maleny Dairies products are stocked across Queensland in IGA supermarkets, and in the southeast corner the cartoon Guernsey can also be found in all Woolworths and Coles supermarkets.

Despite 18 years in the business and paying the highest farm gate milk prices in Queensland, Maleny Dairies is yet to fail.

In fact, Mr Hooper just put in a new pasteurising machine, lifting the factory’s capacity to 13,000 litres an hour — and he didn’t need to sell off any essential organs to the bank.

“We just do our plans and see where we can save money. We do our sums,” Mr Hopper said.

The 49-year-old used to be an earthmoving business owner and tow truck man before his and wife Sally’s careers suddenly took a turn into dairy processing.

Sally and Ross Hopper are owners and directors of Maleny Dairies.

It all began with the dairy industry’s deregulation in 2000.

“Dad said he was going to sell the farm because of deregulation,” Mr Hopper said.

“He could see the writing on the wall, but we said ‘don’t sell it, don’t sell it’.

“We wanted to keep the land but he said if you’re not interested I’m going to sell it.”

The ultimatum given out by old Harold Hopper made his two sons, Ross and Keith, join forces.

Keith sold his beef properties out west and took over the dairy farm, and Ross bought a slice of land to construct a factory.

“We knew if we were going to make it through deregulation we’d needed to bottle the milk ourselves,” Mr Hopper said.

“I thought how hard could it be? You just bottle what’s in the vat.”

Two million dollars, two years, and a lot of sweat and tears later, Mr Hopper finally had a medium-capacity pasteurising and bottling facility.

Maleny Dairies’ first-ever farmer suppliers were Keith and his wife Sonya.

Within a year another Guernsey dairy farm was added.

Guernsey herds aren’t as rare as you’d assume in the Sunshine Coast hinterlands; the red and easy-going breed was the cow of choice on local farms until 15 years ago.

At the time deregulation had been around for a few years and was starting to get its claws in — processors were pressuring for quantity over quality and farmers begun crossing their Guernsey cows with Holstein-Friesians and converting.

Luckily, Maleny Dairies was already bottling and picking up suppliers before these farms got too many generations deep with HolsteinFriesian genetics.

“The Guernsey milk is a huge difference and it’s a hit with customers … we like the butter fat to be at 4.5 per cent, and the protein to be up there,” Mr Hopper said.

The business supplies fresh milk, yoghurt, custard and cream products throughout Queensland.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

NEWS // 19 This year Mr Hopper is paying 77 cents/litre to his farmers.

It’s a good price, and a big difference to other major processors in the Scenic Rim region, who are paying in the low 60 cents.

“We pay farmers properly because we know if we pay the right price they can invest in their farms. We’re here to look after them, not flog them,” Mr Hopper said.

Knowing your processor’s own brother and neighbours are on the books alongside you probably gives Mr Hopper’s farmers peace of mind as well.

The on-farm factory is capable of making full-cream and low-fat fresh milk, fruit yoghurts, custard and creams.

Milk leaves the farm the day it’s collected from the cows and gets bottled hours after arriving in the factory’s vats.

“Within a few hours it’s in a bottle and on a moving truck. We send out 12 semi-loads a week to our two distribution centres,” Mr Hopper said.

One centre is in Caboolture, the other on the Gold Coast.

“We have 50 workers, a mixture of full-time and casual. It isn’t hard to hire because we train people from the ground up,” Mr Hopper said.

“Robots handle all the crates, really a human shouldn’t touch the product. All the repetitive and menial work is done by machines.

“Most of our staff are drivers, maintenance staff, office and such.”

Maleny Dairies has one semi-milk tanker that drives every night between the farms.

“The furthest drive it has to do is to Toowoomba. They are a Guernsey farm, so we had to have them,” Mr Hopper said.

“We are starting to spread further, and who knows where this could end up, especially with the Rockhampton factory shutting down.”

One improvement Mr Hopper is proud of is the shelf life.

“We’ve got it to 18 days, and it’s working very well for our regional customers, ‘cause we can beat all the other manufacturers for date.

“When someone comes in for their weekly shop, they go for the furthest date they can find.

It makes sense.”

Making the most of Maleny’s growing tourism dollar, Mr Hopper also runs a tourism side-gig on the family farm, operating tours and calf feedings.

More than 50 people are employed by Maleny Dairies.

It’s important educational work, considering most people have burning questions when it comes to farm practices.

“We are upfront with what we do and we do get the vegan warriors ringing up.

“They ask what we do with the bull calves and I tell them a tour is $14, they can see for themselves.

“It just wrecks them, they want to get in an argument with you but when you say ‘bring your camera, we’ll answer all your questions, it’s $14’ it blows the wind out of their sails. Of course, they don’t come along.”

In its heyday, Maleny had 300 dairy farms. In 2000 it had 33. Today it has eight.

All bar one of those eight farms are supplying Maleny Dairies (the odd one out supplies Maleny Cheese, a fellow local business).

“There would be no farmers left in Maleny if we hadn’t set the factory up,” Mr Hopper said.

Maleny Dairies is currently sending out 12 semi-loads of product to its Caboolture and Gold Coast distribution centres each week.

The factory is completely robotic.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

20 // NEWS

Top marks for internships DAIRY INTERNSHIPS are making an impact

among university students, exposing young people who’ve never set foot on a farm to an industry calling out for skilled workers.

Raised in Melbourne, Rachel Lee knew nothing about dairy when she started her sixyear double degree in pharmaceutical science and chemical engineering at Monash University.

“I actually wanted to go into make-up and cosmetics, but as I progressed through my degree, I realised that maybe that wasn’t where I wanted to go,” Ms Lee said.

Four years into her degree Ms Lee applied for an internship through the Monash Industry Team Initiative (MITI) Dairy Program.

The internship placed her at Warrnambool Cheese and Butter, where she helped engineer a water tracking project.

“I had never worked in a manufacturing plant before and it seemed like a really great opportunity,” Ms Lee said.

“I learnt just how many different kinds of people it takes to run a plant like that, and how they have to work together to make sure the operation runs smoothly.

“I had such a great experience I decided to apply again for the 2019–20 summer period at Lactalis, where we looked at optimising milk movements between farm and manufacturing plant.

“Being able to do MITI has made me see there is definitely space for me within the dairy industry.”

After completing her internship at Lactalis, Ms Lee was offered a casual position as a milk logistics analyst, working one day a week to fit around her studies.

Lactalis Australia national inbound logistics manager Andrew Sutton was the one to offer Ms Lee the job, which she spends transforming Excel models for the business.

“Rachel picks things up very quickly. I’ll give her a project and she knows automatically what the second and third stage is going to be,” Mr Sutton said.

Mr Sutton commended the MITI program.

“Essentially, we treat the students as part of the team for that period of time,” he said.

“We take them to farms and the farmers really like showing them what they have done.

“When farmers see exceptionally talented young people interested in what they are doing, they get interested and spend the time with them.

“At the very least, it opens the students to a potential vocation in the dairy industry.”

The Gardiner Dairy Foundation has been sponsoring the MITI internship program since 2014, exposing more than 200 students to the dairy industry through the well-regarded program.

Raised in Melbourne, Monash University student Rachel Lee turned her career away from makeup and towards dairy after experiencing the industry through internships.

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Part One: Statewide DAIRY NEWS AUSTRALIA NOVEMBER 2020

FROM THE EXPERTS // 21

Physical measures

Focus on top performers Feed consumption

$1.22 $1.22

North

South West

Gippsland

$0.00 Earnings Before Interest and Tax (EBIT) results from the surveyWest farms in three regions.

Statewide North South Gippsland

FIGURE 5. DISTRIBUTION OF FARMS BY ROTA FIGURE 8. ESTIMATED TONNES OF HOMEGROWN FIGURE 5. DISTRIBUTION OF FARMS BY ROTA FEED REMOVED 40

35

40 30

10

35 8 25

30 20 1525

6

0

0

Statewide

North

Grazed Pasture

South West

15% to 20% 15% to 20%

5

10% to 15% 10% to 15%

20 4 10 515 2 010 5% to 10% 5% to 10%

resulting in the 5% average ROEhowever, being above ROTA ROE between and 10% therethe were a greater (Figure 6). The average interest and lease costs were

$1.60 $1.68 $1.20 $1.40 $1.00 $1.20 $0.80 $1.00 $0.60 $0.80 $0.40 $0.60 $0.20 $0.40 $0.00 $0.20 Statewide

0% to 5% 0% to 5%

Return on Total Assets and Equity

numbers, liveweight, average distance walked to and from $2.20 the dairy and milk production. The ME imported from $2.00 $2.07 ME other feed sources is subtracted from the total farm $2.20 requirements over the year to give estimated total ME $1.80 $1.83 $2.00 $2.07 produced on farm. The ME produced on farm is divided $1.60 $1.68 into grazed $1.80and conserved feed, using records of the $1.83 $1.40 amount of conserved fodder produced.

-5% to 0% -5% to 0%

Return on Total Assets and Equity

Estimated homegrown feed consumed is calculated

FIGURE 4. AVERAGE EBIT from the total ME required on farm, determined by stock

-10% to -5% -10% to -5%

Proportion of ME consumed on farm

Earnings Before Interest and Tax

Appendix Table 3 provides further information on purchased feed in each region and Appendix Table 2 on the homegrown feed removed FIGURE 4. AVERAGE EBIT per milking hectare.

Seasonal conditions affected dairy farm performance across Victoria, according to the latest Dairy Farm Monitor Report.

EBIT ($/kg EBIT ($/kg MS) MS)

Earnings Before Interest and Tax

Number of farms

Farms in the top 25 per cent had lower 2020 rains. overhead costs, compared to the average. The The average diet ofFarm a DFMP Part One: Statewide The latest Victorian Dairy Monitorfarm consisted of grazed average overhead costs for the top 25 per cent Report found (48% farms inof each the regions pasture theofdiet), concentrates (29%), fodder (23%) responded differently depending on the relative was $2.29/kg MS in 2019–20, slightly higher than andPart other (1%). However, the regional One:feed Statewide $2.25/kg for the topdifferences 25 per cent group in 2018–19. positions heading into 2019–20.

The top performing group recorded an EBIT show that pasture made up more of the diet on Gippsland While nearly all Dairy Farm Monitor Project of $2.87/kg MS, up from $1.93/kg the previous farms experienced in 2019–20, farms thanpositive thoseprofits in the South West while the NorthMS have year.

The top 25 per cent recorded a higher milk with consistent reported across the lowestperformance at 36% of the diet. the regions, many farms have not fully recovered price and demonstrated more efficient milk with higher milk solids sold at lower from recent years of challenging conditionsof production Inthe the North, the proportion grazed feed in the diet costs, compared to the average. and lower performance. reduced in comparison to last year, falling from 44% ingroup had Farms in the top performing Following are some points identified by the greater pasture consumption 2018-19 to 36% in that 2019-20.

A decrease in the pasture Dairy Farm Monitor Report contributed Improved operational efficiency saw average EBITcompared to the average. towards the success of themeasured top performing farms availability, as byinhomegrown feed removed increase from $0.25/kg MS 2018-19 to $1.68/kg MStop inperforming When compared with the in the regions. from the milking area, fromenjoyed 8.7 saw tlast DM/ha down toincreased 6.6 t while 2019-20 (Figure 4). All fell regions improved economic group year, grazed pasture Improved operational efficiency average EBIT DM/ha inVICTORIA 2019-20.

The challenging seasonal conditions feed NORTHERN performance with farms in the North experiencing the increase from $0.25/kg MS inconserved 2018-19 to decreased. $1.68/kg MS in Grazed pasture was 5.6 tonne DM/ha in The top 25 per cent of participants in the north in largest the firstimprovement half of 2019-20 combined with high by $1.67/kg MS.prices Gippsland 2019-20 (Figure 4). Allincreasing regions enjoyed improved economic had a higher proportion of homegrown feed as 2019–20, up from 4.8 tonne DM/ha for the top also recorded $1.56/kg MS more profit, taking the offarms allocation water lessinatthan 100%group allocation performance withand farms the North experiencing performing in 2018–19. Conserved feed percentage of metabolised energy consumed average EBIT to $2.07/kg MS in 2019-20.

South farms Reliability Wateraverage, Sharewas (HRWS) contributed largest improvement increasing bytonne $1.67/kg Gippsland 1.7 DM/ha MS. inWest 2019–20, down from 57 of per High cent compared to the regional increased their EBIT performance by $1.12/kg MS, with an 3.4 t onne DM/ha in 2018–19. butto lower than the top performing farms last this reduced pasture$1.56/kg growth.MS The herd’s diet was the farms also recorded more profit, taking year (68 per cent). average $1.83/kg MS in quantities 2019-20. averageofEBIT togreater $2.07/kg MS in 2019-20.

South farms supplemented by of hay andWest silage fed The higher percentage of homegrown feed GIPPSLAND increased their EBIT performance by $1.12/kg MS, with an onby the milking area, which 2.2 t DM/cow Thethe top regions 25from per cent of farms in Gippsland used the increases top 25 per cent wasEBIT reflected in increased the all The in across indicate thatin had similar physical characteristics to the region average of $1.83/kg MS in 2019-20. total water useto for 3.1 theset farms (826 mm/usable 2018-19 DM/cow in 2019-20. the improved performance was more than thewater result of average for rainfall, use and labour ha), which was eight per cent higher than the an average $1/kg MS increase in milk price.

The improved efficiency.

The increases in EBIT across all the regions indicate that average all participant in the north.

Theofamount offarms pasture increased in the diet of South There were noticeable differencesof performance was also combination higher the improved performance wasto more thevolume result offor herd They produced 20 per cent more homegrown West herds from 44% ina2018-19 49%ofthan in 2019-20.

There size, stocking rate, production per cow and feed (one DM/100 mm/ha) compared to milktonne solids sold, greater pasture availability for some farms average $1/kg MS increase in milkfarms price.

The improved per hectare and estimated grazed pasture per wasangreater pasture availability with able to graze the average (0.8 t onne DM/100 m m/ha). and lower variable costs. hectare. performance was also a combination of higher volume of 0.4 DM/ha onefficiency the milking area than last year, while Theythad a lowermore water use of The top performers appeared to have utilised milk solids sold, greater pasture availability for some farms 3.9 conserved tonne DM/Ml of feed irrigation water compared In 2019-20, most farms were able to turn around their remained similar 2.2 tresources DM/ha.

The advantage use theirat physical to similar to andDM/Ml lower to 4.1 tonne forvariable the average. costs. that of the average for the region, with the key financial position.

While the six monthsof provided of concentrates increased asfirst a proportion the diet from The top 25 per cent farms spent $3.96/kg MS performance differences being in homegrown challenging seasonal conditions, particularly for toin30% this year.

Of theable same 21 farms, 13those farms Inup 2019-20, most were to turn around their on28% variable costs 2019–20, 14 farms per cent lower feed utilisation and cost control. farms in the North and those located in east Gippsland, than thefinancial average oftheir northern Victoria farmsthe andlevels, top 25overall per cent participants received position.

While firstThe six months provided increased concentrate but supplement ansecond average milk price of year $7.11/kg slightly higher (five per cent) than last year’s top they have been able to use the half of the toMS, an conditions, particularly for those usechallenging declined asseasonal farms fed less improvement silage as ofa19result of the per cent from last year with performing farms. increase their cashflows and build equity through feed farms in the North and those located in east Gippsland, improved pasture availability. a range of between $6.74/kg MS and $7.69/kg MS. Generally, they spent similar amounts on and water reserves.

The better financial position of these There was a large proportion of farms in the they have been able to use the second half of the year to herd and homegrown feed costs and less on shed Gippsland sample that changed milk processors is supported by theofand sentiment that 73% of all feed farms costs farms and purchased feed than the average all build equity increase their cashflows through during the year. participant farms. are expecting their business returns to remain stable or system and water reserves.

The better financial position these This was either to find a of payment Compared to the northern Victorian average, improve in the coming year.

Refer to Part Five of this report that better suited supply pattern or farms is supported by the sentiment that their 73%milk of all farms they had higher feed inventory change and lower looking for companies that were offering for details on expectations for profit and costs. are expecting their business returns to remain stable ora higher water inventory change.

FIGURE 7. SOURCES OF METABOLISABLE payment for their milk.

Theimprove top performing farms spent less on Refer in the coming year. totop Part Five of this report In the 25 per cent and the average Figures 16, 26average and 36 in the regional sections present the of the ENERGY overhead than the due mainly to for sample, milk income accounted for 92 per cent forcosts details on expectations profit and costs. range in cost EBIT received by participant farms this year. their lower labour (employed and imputed of gross farm income. labour).Figures The topsections 25 per cent also experienced 100% 16, 26 and 36 in the regional present thea 12 per Their imputed and employed labour costs cent decline in grain and concentrate feeding, range in EBIT received by participant farms this year. were 24 per cent and five per cent less than with a similar 11 per cent decline in variable costs 80% the average, respectively, as supported by their to $2.95/kg MS. The second largest variable cost was fertiliser ROTAonwas in kg 2019-20, an increase from higherAverage labour efficiency a per5.4% cow and 60% at $0.57/kg MS, six per cent higher than in 2018– MS bases.

0.7% in 2018-19. The improved economic performance is 19 at $0.54/kg MS. The elevated fertiliser price shown by a greater number (35% of all recording Average ROTA was 5.4% in 2019-20, anfarms) increase from per tonne this year can account for the increase SOUTH-WEST VICTORIA 40% in this cost category rather than an increase ROTA between 5% and 10% (Figure 5).

All but three farms 0.7% in252018-19.

The improved economic performance is in Farms in the top per cent (ranked according quantity applied. to return on total by assets) were characteristic of (35% of all farms) recording recorded aapositive ROTA performance. shown greater number 20% Overhead costs for the top 25 per cent higher milk production measured per cow and ROTA between 5% and 10% (Figure All but three remained5). similar to that of lastfarms year at $1.65/ Mostand farm businesses were per hectare, higher labour efficiency, baseda mix of owned and borrowed kg MS. The top 25 per cent were lower in all 0% recorded a positive ROTA performance. on cows/FTE and(finance kg MS/FTE.loan). The average capital ROE was 8.3%, upMS compared cost categories per kg Statewide North overhead South West Gippsland The homegrown feed cost categories that to the average. from -3.5% recorded in were 2018-19.

Most farms achieved Most farm businesses a mix of owned and borrowed contributed mostGrazed to the increase were fertiliser The slightly largerSilage herd size, better labour Pasture Concentrate Hay Other between and 10% however, there was were a greater capital (finance The average 8.3%, uppaid labour costs.ROE This increased by 155% perloan). cent to $0.58/ efficiency ROE and mix of imputed and of farms recording a higher therefore kg MSnumber as farmers applied greater quantities from -3.5% recorded in 2018-19.

Most farms achieved enabled a ROE, better ability to spread costs this year.

Gippsland farms also increased the amount of pasture as a percentage of ME in the diet and grew more homegrown feed per milking hectare compared to the previous year. While there were regional differences in pasture availability across Gippsland, the average pasture intake increased from 56% of ME in the diet in 2018-19 to 60% in 2019-20. Homegrown feed increased from 9.1 t DM/ ha in 2018-19 to 9.8 t DM/ha in 2019-20 as farms both grazed and conserved greater quantities. Hay and silage feeding levels decreased from the previous year, while concentrate levels remained the same at 1.6 t DM/cow on average on usable area. This led to farmers feeding less purchased feed per cow in 2019-20, on average.

Number farms Home grownof feed removed (t DM / milking ha)

The contribution of different feed sources to the total of fertiliser in in 2019–20 than 7. theThis previous year, ME consumed on the farm is presented Figure GEOFF ADAMS taking advantage of the consistent rainfall events. includes feed consumed by the milking herd, dry cows They were rewarded with pasture grazed SEASONAL CONDITIONS across thethe threeusable area. Figure 8 shows and young stock across increasing by 0.4 tonne DM/ha to 4.7 tonne DM/ Victorian dairying regions were characterised by the estimated grazed and conserved feedfodder removed on stable ha and conserved totals remaining challenges throughout winter and spring 2019, at 2.2 t onne DM/ha on the milking area. the milking area. and good autumn followed by a mild summer

Gippsland

Conserved Feed

Grazed pasture remains a substantial part of the diet in all regions.

FIGURE 6. DISTRIBUTION OF FARMS BY ROE

DAIRY NEWS AUSTRALIA NOVEMBER 2020

22 // NEWS

NLIS rules protect industry RICHARD SMITH

AUSTRALIAN CATTLE prices have been

surging throughout 2020.

With the lift in the Eastern Young Cattle Indicator, combined with increasing restocker activity, many cattle producers may be considering taking advantage of these high prices by selling or buying calves.

As calf buying transactions are increasingly occurring online, it is important sellers and buyers are aware of the National Livestock Identification System (NLIS) requirements and the consequences that can occur if requirements are not being met.

If you are considering buying or selling cattle, it is a requirement at dispatch, all cattle regardless of age (including calves) must be tagged with an NLIS (cattle) tag, have a National Vendor Declaration and any previous movements onto the property of dispatch are recorded on the NLIS database.

If you are looking at purchasing calves through a saleyard, cattle scale operator or public auction (conducted by a registered livestock agent), it is the responsibility of the person operating this business to notify the NLIS database of the movement.

You can check this yourself by logging in to the NLIS database at: nlis.com.au/Login/ If calves are purchased through private transactions (including Facebook and Gumtree) or online auctions (for example AuctionsPlus), a property-to-property NLIS transfer must occur.

The NLIS transfer must be completed within two days (48 hours) of the livestock arriving at the new property. It is the responsibility of the buyer/receiver of the calves to notify the NLIS database of the transfer.

The only time an NLIS tag can be replaced is if the NLIS tag falls out or is damaged and cannot be read electronically.

In these instances it’s very important the correct NLIS tag is used — post-breeder NLIS tag (orange tag) for introduced livestock and breeder NLIS tags (white tag) for livestock still on the property of birth.

NLIS ear tags are used to track cattle movement, protecting the red meat industry from disease outbreaks. Not fitting calves with NLIS tags and not keeping their details up to date puts you at risk of legal penalties and fines.

If you are thinking of buying or receiving a calf, it is important to note that all Victorian properties must have a Property Identification Code (PIC) to have one or more cattle (including calves).

In following these steps you help protect Victoria’s food safety reputation by maintaining Victoria’s ability to trace and control diseases, and by being able to quickly trace livestock for any residue, disease or food safety issues if they occur.

All calves must be identified with the appropriate NLIS tag prior to pick up.

If your calves do not have the appropriate NLIS tags, you are risking legal penalties and could be issued with infringement notices, worth up to $495.

You are also risking the integrity of national red meat industry.

To maintain Australia’s whole-of-life cattle identification, producers are encouraged to be

familiar with NLIS (Cattle) requirements and to do their part by tagging their animals correctly and ensuring movement records are up to date.

For information about NLIS, contact the Victorian NLIS helpline on 1800 678 779 during business hours or visit: agriculture. vic.gov.au/livestock-and-animals/ national-livestock-identification-system Richard Smith is an Agriculture Victoria dairy extension officer.

MAKING CAMEL MILK MORE AFFORDABLE We could be witnessing the camel milk industry’s next big step.

West Australian camel milk farm Good Earth Dairy has developed a ‘unique agritech’ way to produce camel milk for below AUD $3 per litre - a massive feat considering their only competitor has a production cost of $12 per litre.

The business has spent five years and over $4 million perfecting their camel herd, milking process, and developing the IP needed to significantly drop milk prices.

Good Earth Dairy co-founder and chief executive Marcel Steingiesser said with the novel IP to reduce costs and increase yields, camel milk is now a viable disruptor in the lucrative infant formula industry.

“And we intent to enter that market with the support of this equity crowdfunding campaign,” Mr Steingiesser said.

The business has launched an equity crowdfunding campaign on Australian

crowdsourcing website Birchal in an effort to raise $1.2 million, a sum which will go towards breaking into the infant formula market.

Camel milk is ideal for infant formula and other specialised health products because it is naturally lactose free and promotes gut health.

Good Earth Dairy’s ground-breaking IP was co-founded by cameleer Stephen Geppert, ex-government employees Henry and Marcel Steingiesser, and former Western Australian politican Kim Chance.

Currently all milk being produced by the dairy is sold in over 50 stockists throughout Western Australia.

The company is aiming to list on the ASX in early 2021 while also creating a sustainable, ethical agricultural industry focused on large scale production of ‘pure Australian camel milk’.

Good Earth Dairy is WA’s first commercial camel dairy. The 800-hectares farm is located in Dandaragan, two hours drive from Perth.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

ANIMAL HEALTH // 23

Vet will study cow welfare DANEKA HILL

KYABRAM VET, Dixie dairy farmer, university

student and now Nuffield Scholar — Lucy Collins has a lot on her plate.

The multifaceted dairy cow enthusiast said she was honoured and humbled to receive a 2021 Nuffield Scholarship.

“I’ve known about the Nuffield Scholarships since I was a child,” Dr Collins said.

“Growing up in South Gippsland my first poddy calf was given to me by a Nuffield Scholar and he was really well respected in the community.”

With the help of the scholarship’s global study program and $30,000 bursary, Dr Collins will investigate the value of introducing animal welfare benchmarking on dairy farms.

“My university studies are centred on animal welfare as well but they are more about the public’s perceptions of welfare and education,” she said.

“The scholarship will complement those studies, and vice versa.”

The aim of the scholarship is to identify the best dairy farm welfare methods globally and help farmers achieve high standards.

Key welfare issues include calf rearing and bobby calf management, debudding and pain relief, calving induction and lame cows.

“The idea is to help farmers see where they are at risk of not meeting industry standards, helping them compare between themselves, and letting them see the average welfare standard in their region,” Dr Collins said.

She will also look at marketing opportunities in the ethical and high welfare space for Australian dairy products.

“Animal welfare forms a huge part of the debate around our industry’s social sustainability.”

As a vet in northern Victoria, Dr Collins performs many welfare checks on dairy farms.

The increase in welfare check requests over time was what got her thinking about animal welfare policies in the industry.

“I felt we were seeing a push as vets on dairy farms to provide welfare checks and increase oversight,” she said.

READY TO PUT YOUR REPRO FIRST? CHOOSE PRODAIRY.

Dairy News Australia columnist and Kyabram vet Lucy Collins.

“Most of these checks are requested by a farmer’s processor and involve the vet highlighting what a farmer is doing well and what they could improve in.

“To ensure future profitability and viability, our industry needs to be both proactive and progressive in this space.

“It is imperative we continue to strive towards more ethical practices that will foster

and maintain confidence among Australian consumers and overseas markets.”

Dr Collins will investigate and assess welfare practices and assurance schemes in the United Kingdom, European Union, United States and Canada.

Lucy Collins is a columnist for Dairy News Australia.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

24 // ANIMAL HEALTH

What to expect when expecting DR LUCY COLLINS

MANY MANAGEMENT decisions on dairy farms are made around the reproductive performance of the herd.

Knowing who is pregnant, when they conceived and when they are due to calve is essential to good planning, budgeting and monitoring for the seasons ahead.

Pregnancy testing can be achieved by either rectal examination by experienced operators using manual palpation of the uterus and an ultrasound probe to confirm the presence of a viable foetus, or laboratory testing of milk or blood to detect levels of pregnancy hormones.

Both have advantages and disadvantages.

Either way, good record keeping is paramount to maximising the value of the pregnancy test.

Similarly, having enough labour available to set up, move cattle, read IDs and record results will help ensure the experience runs smoothly and efficiently for all involved.

Armed with pregnancy testing data, you can: ■ Determine your herd’s performance, compare to previous years and benchmark against industry averages (including sixweek or 100-day in-calf rates).

■ Make informed decisions about genetic selection, culling, feed budgeting, labour requirements, transition management and drying off.

■ Assess the success of your heat detection, artificial insemination and non-cycler management programs.

■ Achieve early intervention in problem cows.

■ Calculate appropriate bull power, depending on number of cows that conceived to AI. Historically, concerns around the risk of damaging the embryo may have discouraged some farmers from performing early pregnancy testing on their herd (usually six to 12 weeks after mating start date and again six weeks after joining finishes).

However, several scientific papers have shown no increase in early pregnancy losses or deformed calves in dairy cows manually pregnancy tested around the 35-day mark.

An ultrasound will undoubtedly improve accuracy during these early stages and has the added benefit of assessing the health of the embryo.

Kyabram veterinarian Lucy Collins says good record keeping maximises the value of a pregnancy test.

After about 15 weeks, the operator’s ability to age a calf by ultrasound is reduced — so you are essentially getting less bang for your buck — and a single dry-off pregnancy test will basically give you a yes or no answer that late in gestation.

Early pregnancy testing assists in the detection of phantom or non-cycling cows, allowing interventions with plenty of time and giving those cows a better chance of conceiving earlier into the joining period.

You may also find a reasonable proportion of cows that were submitted for joining and assumed to be pregnant but haven’t held and require a treatment program to return ovarian cyclicity.

It is worth noting that if you only retest empty cows at the second pregnancy test, you may miss a proportion of cows that were detected pregnant but aborted after the first test.

These cows may or may not have returned for another joining, and subsequently could be either empty or pregnant to a different AI or bull date — possibly calving much later than expected next season.

Using return-to-heat is an unreliable method of pregnancy detection, as not all cows that have been joined and showing no signs of heat will be pregnant.

A cow may be empty but not recorded as cycling because heat detection failed, she had a non-visible oestrus, she had an early pregnancy loss or she has cystic ovaries.

A brief note on heifers — early rectal pregnancy testing allows for optimum transition management and close assessment of your reproductive performance.

Testing all heifers 12 weeks after MSD and then retesting all those not detectably preg-

nant another six to eight weeks after joining finishes will help you identify late calving and empty heifers.

Aim for a six-week conception rate of over 85 per cent. If below 80 per cent, seek advice.

Regardless of your pregnancy testing method, it is important to remember that even with good mating records natural variation can result in cows calving up to two weeks either side of their expected due date.

For further information, seek advice from your regular trusted reproduction advisory team and get a copy of Dairy Australia’s InCalf book.

Lucy Collins is completing her dairy residency with The University of Melbourne. She works for Apiam Animal Health as an on-farm veterinarian in Kyabram, and alongside her partner on his 600-cow dairy farm in Dixie.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

ANIMAL HEALTH // 25

Kind words calm cows GEOFF ADAMS

UNDERSTANDING COW behaviour plays an

important role in managing the herd for northern Victorian farmers Laurie and Gayle Clark.

And knowing how cows react to human voices plays a part in keeping the peace in the milking shed.

Gayle believes the cows get to know people who have regular contact with them and react well to caring behaviour, including talking and stroking.

Like many larger farms (they have about 650 cows in two herds at Katandra West), the Clarks rotate a number of milking staff through the rotary shed, and Gayle believes the cows quickly identify voices they are unfamiliar with.

As a result she asks staff to keep their voices down and only use vocal commands in certain circumstances.

“For owner operators who are in the shed 100 per cent of the time, the cows get to know the one person and build up a sense of trust,” Gayle said.

“But where you have multiple people they can sense a difference and that might trigger a fear response.

“But the cows do get to know you.

“Laurie knows them well enough to approach a cow having difficulty calving in the paddock.

“He can quietly walk up to her and making a low noise, like a calf, he can approach them and they don’t appear to be frightened at all.”

Conversely, Gayle knows cows move away from unfamiliar or loud noises.

In the milking shed, the Clarks have a radio playing, usually on a commercial station, at relatively low volume, so the sound doesn’t mask any issues that arise with the milking plant.

Moss Vale dairy farmer Jane Sherborne admits to talking to her cows.

She agrees they appear to enjoy the attention, however, she points out that the strongest forces driving cows would be fear, comfort and hunger.

“If you are offering food to them, while you are talking to them, they will run right through you to get to the feed.”

Jane said they obviously react negatively to loud noises, for example, when the fear and flight reflex kicks in.

“If a kangaroo jumps into the yard, and they do that sometimes here, they will take off, no matter what you say.”

Her own cows have names, as well as numbers, because with increasing herd sizes, and the introduction of computer software in record keeping, numbers are easier to work with.

Jane believes cows will respond to their own names if they are used often enough and associated with a pleasurable experience, like offering food.

But there is that fear/comfort/hunger reflex kicking in.

Jane and her family have a 300-cow herd in the NSW Southern Highlands, and at the moment they don’t employ additional labour.

One of Jane’s responsibilities is rearing the calves, a job she knows is often delegated to females on the farm.

But she is quick to point out that all women don’t necessarily make the best calf rearing managers, as she has good workers from both genders doing the job.

Gayle Clark said she had also read that cows prefer classical music.

Psychologists at the University of Leicester, in the United Kingdom, played music of different tempos to herds of Friesian cattle in a 2001 study.

Beethoven’s Pastoral Symphony and Simon and Garfunkel’s Bridge Over Troubled Water were a big hit in the milking shed. But noisy tunes elicited no production response.

C

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CM

MY

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CMY

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COWS ENJOY A GENTLE CHAT Cows enjoy the sound of a human voice — but are more relaxed by a face-to-face chat than listening to a recorded voice through a loudspeaker, according to a new study in Austria.

The research, published in Frontiers in Psychology, was conducted using mostly Simmental heifers on the farm of the University of Veterinary Medicine, Vienna.

“Cattle like stroking in combination with gentle talking,” Annika Lange from the university said.

“In scientific contexts, a recording of a human voice speaking gently could be used to relax the animals, because it can be difficult to repeat the same phrases in the same way during experiments.”

The team of scientists wanted to find out if cows respond differently to the sound of recorded voices compared to a human talking directly to them.

“Our study suggests that live talking is more relaxing for our animals than a recording of a human voice,” Dr Lange said.

“Interactions may be less positive when they become artificial through standardisation.”

The team worked with a herd of 28 cattle, comparing the benefits of either stroking the animals while playing a recording of an experimenter’s voice, or stroking while speaking to the animals directly.

After monitoring the animals’ responses during the experiments, the researchers found live talking was the best mood enhancer for their bovine friends.

Heart rate variability was higher when cattle were spoken to directly, indicating they were enjoying themselves. After this treatment, heart rates were lower than after listening to a recorded voice, showing that the animals were more relaxed following the live chat.

How does a chilled cow behave?

“When relaxed and enjoying the interaction, the animals will often stretch out their necks as they do when they groom each other,” Dr Lange said.

“Additionally, it is thought that ear positions may indicate mood — hanging ears and low ear positions appear to be linked to relaxation.”

The study remarked that low-pitched vocal interactions with drawn-out vowels are considered part of positive, friendly milker behaviour.

Both in practice and in research, gentle interactions with cattle often include gentle tactile stimulation in combination with talking in a gentle, soothing voice.

There is evidence that calves recognise recorded samples of their mother’s calls and the playback of recorded calls of calves stimulated milk production in cows and lowered their heart rate

DAIRY NEWS AUSTRALIA NOVEMBER 2020

26 // MACHINERY & PRODUCTS

New baler is contractor’s 21st SITTING IN the cab of his new John Deere

6215R tractor, Thomas Haymes co‑ordinates the operation of his contracting business, while taking in some of south Gippsland’s most stunning farming country.

Based in Yarram, Haymes Contracting is a family-owned and operated hay, sowing and silage enterprise.

The business is headed up by Mr Haymes, a fourth-generation dairy farmer who decided to take on the contracting arm of the business five years ago.

“Dad has always had a hay contracting business as a side to the dairy and I was naturally attracted to that line of work, as I really love operating machines,” he said.

“We do everything from cultivation and seeding works to round bales and bulk silage.”

Following behind the 6215R, is a new John Deere C451R variable-chamber wrapping baler.

The baler was recently added to tackle increased demand for silage, and became the Haymes family’s 21st John Deere baler.

An in-demand business, Haymes Contracting produced 28,000 bales last year and wrapped 20,000.

“We looked around at a few other combis (variable-chamber wrapping balers), but the John Deere model just suited us best,” Mr Haymes said.

“It has three powered fixed rolls and two large diameter belt driving rolls inside the chamber, with a high capacity, high performance twometre-wide feeding system.

“We expected another high standard John Deere — but it’s so much more.

“It now has a wrapper on the back which always works, so you really don’t even have to think about it.

“When it runs out of wrap, it tells you and you can just change the roll and that’s the only time you have to get out and do anything.

“Even the roll arms are hydraulic, so you never have to lift anything higher than your waist.

“It saves us so much time and, with the updated fast release system and the 35-rpm wrapping arms, it means we can bale faster than ever.”

Mr Haymes has also noticed a difference in production levels with the high capacity premium rotors and a more versatile, productive pick-up.

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

MACHINERY & PRODUCTS // 27

Quad bike standard now law ALL NEW and imported second-hand quad bikes

sold in Australia must now meet the first stage of the Federal Government’s mandatory safety standard after it came into effect on October 11.

Now all new and imported second-hand quad bikes sold in Australia must be tested for lateral static stability, display the angle at which the quad bike tips onto two wheels on a hang tag at the point of sale, and carry a roll-over warning label on the quad bike.

The owner’s manual must also include rollover safety information.

Additionally, the quad bikes must be fitted with a spark arrester that conforms to the Australian or United States standard, and meet certain requirements of the United States or European quad bike safety standards.

These relate to equipment such as brakes, clutch, throttle, tyres, drive train, handlebars and foot wells, maximum speed capabilities and the provision of safety information through warning labels and hang tags.

“This first stage of the standard is a significant step in improving the safety of quad bikes in Australia, and addressing the extremely concerning rate of injuries and fatalities caused by quad bike accidents,” ACCC deputy chair Mick Keogh said.

“Consumers will now be able to have confidence that quad bikes they buy will meet a certain level of quality and safety.”

Safe Work Australia data shows 152 people have died from incidents involving quad bikes since 2011, including 23 children.

It is estimated that hundreds of people also present to hospital emergency departments each year as a result of quad bike-related injuries.

There have already been 16 fatalities this year, double last year’s toll.

The ACCC is working with state and territory Australian Consumer Law regulators to conduct surveillance activities to ensure suppliers are complying with the standard.

Non-compliance may attract fines and penalties.

Consumers and businesses can make a complaint to the ACCC if they believe they have seen or have been sold a quad bike that does not comply with the requirements of the standard.

Stage two of the safety laws, which require the fitting of operator protection devices and minimum stability requirements for new and second-hand imported general use quad bikes, will become mandatory in October 2021.

For more information, visit www. productsafety.gov.au/news/make-sure-yourquad-bikes-meet-the-new-safety-standard or www.productsafety.gov.au/news/newquad-bike-safety-standard-helps-you-checkcompare-and-take-care

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

28 // MACHINERY & PRODUCTS MACHINERY brand Lely has announced a brand new stable of smart-tech machinery for the dairy barns of the future.

The three new robots are the Lely Sphere, Lely Sphere N-Capture and Lely Horizon — all launched at the Lely Future Farm Days event in early October.

The Sphere collects waste in barns, separating manure and urine, and delivering waste to the Sphere N-Capture system.

The N-Capture then converts and manages emissions, creating three valuable types of fertiliser.

Lely head of innovation Korstiaan Blokland said the practical robot was easy to deploy and played an important role in making dairy farms more sustainable and circular in their supply chain.

“Lely Sphere is designed to help dairy farmers exploit the valuable nutrients in manure to

DUTCH

Glimpse of hightech future

A visual concept for the Horizon management system — complete with cow name, her visits to the automatic milking parlour, milk production and more.

the maximum,” Mr Blokland said.

On four test farms the Sphere reduced ammonia emissions in barn systems by about 70 per cent.

The Sphere has been in development since 2015 and has been operational since 2017.

The third big announcement was the Lely Horizon, a new management system labelled the “next step towards a bright future in dairy automation”.

It will be replacing the Lely T4C system over the course of 2020 and 2021.

Lely senior product manager Freddie Ruijs said in a world where data and digitisation was key, the dairy farm could not be left behind.

“At Lely we feel it is time to use all available, relevant data in an intelligent way,” Mr Ruijs said.

“That is exactly what Horizon is all about.

It connects equipment and suppliers on the farm ... data is processed into actionable information

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DAIRY NEWS AUSTRALIA NOVEMBER 2020

MACHINERY & PRODUCTS // 29 that is always accessible on any device in a userfriendly way.”

Imagine being able to search how much grain you fed in March, cow #919's fertility data since her first pregnancy or be tipped off when a cow is showing signs of ketosis.

The Horizon was created with the help of more than 100 farmers and 75 engineers, designers, vets , and AI specialists from seven countries over a two-year period.

The Lely Future Farms Day 2020 featured several other space-age machines, including the fully automated Lely Exos harvester, which specialises in collecting fresh grass from pasture and feeding the clippings to cows.

Lely chief executive Andre van Troost said important results have been achieved by the company in the past two years.

The ideal farm Lely is working towards is a place where repetitive tasks are all automated and cows can move freely, behaving naturally with guaranteed welfare because their robotic carers are working 24/7.

“We live in a rapidly changing world where the population continues to grow,” Mr van Troosts said.

“We desperately need farmers, because we expect the demand for food to increase by 70 per cent by 2050.

“The impact of farming on the environment is also coming under increasing scrutiny, and regulations are becoming stricter.

“Dairy farmers therefore have to change the way they work to guarantee their future.”

Lely will be focusing its Future Farm machines on the Dutch market, but says the tech has international potential.

SPACE-AGE FEEDING SYSTEM They say automation is coming for all our jobs, and it turns out not even our paddocks are safe after plans for a fully automated, electric, fresh grass harvester and feeder were announced.

The concept is still in the first stages but Dutch machine maker Lely is backing its ‘paddock-roomba’.

The use of an automated machine to cut fresh grass and feed out immediately to housed cows could be a big step forward for barn system dairy farms.

Lely head of innovation Korstiaan Blokland said the Lely Exos machine would be a breakthrough in optimising grassland use.

“The nutritional value of fresh grass is 10 to 20 per cent higher than that of silage grass, because there are no significant losses during harvesting, conservation and feeding,” Mr Blokland said.

“Good roughage has always been important for the health and milk yields of cows.”

By feeding cows fresh grass instead of silage, farmers will be able to produce more milk from their own grassland.

“This unique system is based on an electric vehicle that autonomously mows, loads and dispenses grass in the barns. Exos provides fresh grass frequently, day and night,” Mr Blokland said.

“This system operates 24 hours a day, so it’s not limited by manpower or time.

“With Exos, Lely is introducing an innovation that is fully compatible with the transition to sustainable and circular dairy farming.”

Results from test farms have shown a dairy farm can save 2¢/litre of milk by using their pastures in this manner.

The Lely Exos machine will remain in the research and development stage for some time, where it will be tailored to meet the daily needs of dairy cows and to make the most of the long grass-growing season.

The Lely Exos machine is a fully automated, electric, fresh grass harvester and feed dispenser.

Talk about being handed things on a platter! The Lely Exos machine is a fully automated, electric harvester which collects fresh grass right from the pasture and delivers the clippings to the cow.

DAIRY NEWS AUSTRALIA NOVEMBER 2020

30 // MACHINERY & PRODUCTS

New generation of balers WHY THEY didn’t call the McHale baling machines the McBales we’ll never know.

Over the past decade the McHale V6 range has become a work horse of choice for making bales from 0.6 to 1.68 metres.

Now the next evolution has been announced — the McHale V8 Chamber Baler Range.

McHale marketing and sales director Martin McHale said the new V8 balers had expanded on the V6 range, which is recognised worldwide for making wellshaped, high density bales.

“Our new V8940 and V8950 have brought baling to a new level with higher density, increased bale size, better intake and easier maintenance,” Mr McHale said.

The V8s can produce a bale up to 1.9 m in diameter as well as a far denser 0.6 m to 1.9 m bale (up to 30 per cent more crop per bale than a V6 bale).

The company says key features include: ■ New pick-up with a choice of cam track or cam-less.

■ Larger lateral feed augers.

■ Larger rotor.

Adaptive intake (auto adjust to material flow).

■ Selectable knives (the 15 knives can be engaged and disengaged from the tractor cab).

■ Drop floor unblocking system (means blockages can be fed through in three simple steps).

■ Bale chamber with three heavy duty endless belts.

■ High performance netting system (can take rolls of net up to 1310 mm in width, capable of 180 degree wrap around to prevent any net slippage while feeding).

■ Automatic greasing.

■ New panel design.

■ Expert plus control console (large graphic display, from the tractor cab the operator can adjust core size, bale size, core density, bale density and revolutions of net per minute).

■ Bale kicker.

It’s hoped the V8 change will have a greater lifespan and higher levels of reliability because of its heavy-duty components, designed to be rugged enough to handle tough crops and ground conditions.

■

The new McHale V8 950 baler, at work baling straw.

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MACHINERY & PRODUCTS // 31

Case IH changes dealerships ON THE cusp of a busy harvest season Case IH

has made wholesale changes to two Queensland and four NSW dealerships.

The six dealerships — all operated by Wideland Ag until recently — have been put back under the care of Case IH dealers after Wideland Ag cut ties with the brand.

The dealerships are Tamworth, Gunnedah, Narromine, Gilgandra, Toowoomba and Dalby.

According to Case IH Australia/New Zealand general manager Pete McCann this change happened due to customer feedback and the company’s focus on providing the highest level of customer service.

“Our dealerships are well known for their customer relationships and service capabilities and this latest round of changes will only strengthen that,” McCann said.

“Some of the strongest performers in our dealer network are taking on these new branch locations.”

Three Rivers Machinery is now operating the Narromine and Gilgandra Case IH branches,

Kenway and Clark owners (from left) James Fowles, Gemille Hayes and Peter Burey. The three will be taking over the Gunnedah and Tamworth Case IH branches.

Three Rivers management team (from left) Kate Whiteley, Ray Watson, Ruth Plunkett and John Plunkett. The team will be taking over the Narromine and Gilgandra Case IH branches.

while Kenway & Clark has taken on the dealership in Gunnedah and will open the new Tamworth branch.

The Toowoomba and Dalby dealerships are currently working through new arrangements.

Mr McCann assured customers they would receive the highest level of service and support during and after the changeover.

“The dealerships expanding into these communities are proven performers within our dealership network,” he said.

“While certain manufactures prefer a dealer network made up of just a few ‘super dealers’, at Case IH we strive to have a connection with the local community through a network of locallyowned operators.”

Mr McCann said replacing a single branch dealer with “exceptional existing dealer groups” strengthened the locally-owned operators and maximised opportunities.

Case IH is a brand of agricultural equipment, supplying balers, harvesters, tractors and numerous other machinery.