Dairy News Australia - Decmeber 2019

Dairy farmers march on Canberra PAGE 7

DAIRY CODE DELAYED: PAGE 3

DECEMBER, 2019 ISSUE 110 // www.dairynewsaustralia.com.au

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DAIRY NEWS AUSTRALIA DECEMBER 2019

NEWS // 3

National code not ready: Dairy Connect THE MOST recent publicly released draft of

NSW pair move into Vic. PG.5

the proposed national dairy code is manifestly different to the draft that was released prior to the last federal election, according to lobby group Dairy Connect.

Chief executive Shaugn Morgan said the new draft contained revised and additional clauses that were not even considered from the last round of consultation.

“We need to start to restore the trust that has been lost as a result of the actions of Murray Goulburn and Fonterra clawback in 2016,” Mr Morgan said.

“More recently this has continued with low farm gate prices and unfair milk supply agreement by processors.”

Mr Morgan said there were numerous problems with this mandatory code.

“They range from poor drafting, unnecessarily complex clauses and not being clearly

stated in ‘plain English’.

“There are substantial changes to the draft code (from the previous draft) and the impact that these changes have upon milk supply agreements,” Mr Morgan said.

“For instance, the previous code provided for no unilateral changes to milk supply agreements.

“Now we find that processors can unlaterally change the agreements if what occurs is ‘beyond their reasonable control’. This phrase is also used in the clause dealing with retrospective step downs. Given this is not defined, what does this even mean? It is too broad and certainly unfair to dairy farmers. It needs to be changed.”

Mr Morgan said if this draft code was in place in 2016, this could have resulted in the Australian Competition and Consumer Commission not being able to take action

against Murray Goulburn for “the horrendous mistakes they made back then”.

“If they argued at that time their actions were ‘beyond their reasonable control’ they could have escaped prosecution. How could this even be considered fair?” Mr Morgan said.

He said other issues were the cooling off period, exclusivity clauses, unfairness in the penalties that could be imposed on dairy farmers and other serious difficulties the draft code puts forward, including a dispute resolution scheme that he has heard was put “up to fail”.

He urged Federal Minister for Agriculture Bridget McKenzie to buckle down and restore the code back to the nine principles that were enunciated by dairy farmers during the last round of consultation and agreed to by the Federal Department of Agriculture.

DAIRY CODE DELAYED: MINISTER MCKENZIE Beefing-up US dairy. PG.12

Heat strategies for summer. PG.21

NEWS ���������������������������������������������������� 3 – 24 OPINION ������������������������������������������������������� 6 FEATURE ��������������������������������������� 12– 13, 19 MARKETS ������������������������������������������ 16 — 17 ANIMAL HEALTH �������������������������20 — 22 MACHINERY ����������������������������������� 25 – 30

Federal Agriculture Minister Bridget McKenzie has conceded it is highly unlikely a mandatory dairy code of conduct will be in place by the start of next year.

The Federal Government has been working on the code for more than three years, but looks certain to miss its January 1 deadline.

Senator McKenzie said she would not rush the regulations to meet “some arbitrary time frame”.

“We either want to get it done quickly or we want to get it done right,” she said.

“I am not going to rush to put out a code that is not going to be fit for purpose and not going to actually work in all eight of our (dairy) regions across the country.”

One Nation leader Pauline Hanson has called for the minister to resign over her “diabolical” handling of the dairy code.

She also took aim at the Nationals for not supporting a bill aimed at putting a minimum milk price in place.

Senator Hanson’s private bill, which was defeated 31 votes to 30 on

November 11, would have tasked the ACCC with determining a base price for milk.

A mandatory code of conduct for the food and grocery industry — including dairy — would have also been established.

NSW Nationals senator Perin Davey said she had hit the phones to see what dairy farmers thought of Senator Hanson’s bill.

“Not one of the farmers I spoke to said they wanted a floor price. They all said they wanted a fair price,” Senator Davey said.

Senator Hanson is angry about the government’s draft dairy code of conduct.

“Senator McKenzie’s handling of this whole code issue has been diabolical, it’s an absolute dog’s breakfast,” Senator Hanson said, calling on the minister to resign.

Senator McKenzie rejected calls for her to resign.

“The private members bill that was defeated today held out false hope to those doing it tough as though one

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measure could ever be the silver bullet to the complex, unique and diverse issues of this important industry,” she said.

The Coalition has been working on the code since 2016, when dairy giants Fonterra and Murray Goulburn cut milk prices paid to Australian farmers.

The wording of the code has changed significantly since being released as an exposure draft in January.

Originally, it expressly prohibited the practice of retrospective price drops for dairy farmers.

It now states processors can change contract conditions if there are “circumstances beyond reasonable control”.

Dairy farmers are concerned regulations meant to protect them from unscrupulous milk processors could do the opposite.

Senator McKenzie was repeatedly asked who asked for the words to be changed, but did not provide a direct response.

“No-one asked for the wording to be changed,” she said.

DAIRY NEWS AUSTRALIA DECEMBER 2019

4 // NEWS

Chinese company buys Lion Dairy THE CHINESE dairy heavyweight behind the

$1.5 billion bid for organic infant formula maker Bellamy’s Australia has agreed to acquire another of Australia’s biggest dairy operations.

China Mengniu Dairy Company will pay Japanese beverage giant Kirin $600 million for the Lion Dairy and Drinks portfolio, the company said in November.

The Lion brands include Dairy Farmers, Masters and Pura milk; Dare and Farmers Union iced coffee; Big M, Dairy Farmers and Pura Classic flavoured milk; Vitasoy soy milk and coconut milk; juice brands Daily Juice, The Juice Brothers and Berri; and Yoplait yogurt, under licence.

The portfolio has been on the market since October 2018, when Lion decided to concentrate on its beer business including James Squire, Little Creatures, Tooheys and XXXX. Lion said it decided to approach Mengniu Dairy after reaching an agreement in April to sell the specialty cheese component of Lion Dairy and Drinks to Saputo Dairy for $280 million.

"The full divestment of the Dairy and Drinks

business will ensure it has an owner that is well placed to grow the business over the long term, while also accelerating Lion’s pivot to becoming a leading global adult drinks business," Lion chief executive Stuart Irvine said.

Dairy and Drinks employs about 2300 people across Australia with others based in Singapore, Malaysia and China, and has 11 manufacturing sites around Australia.

Mengniu Dairy chief executive Jeffrey Minfang Lu said the acquisition would benefit both Lion Dairy and Drinks and Mengniu Dairy as well as providing opportunities for Australian dairy farmers and fruit growers, by opening up a significant channel to China.

The company buys about 825 million "milk equivalent" litres a year from around 280 Australian dairy farmers, as well as 50 million kg of fresh fruit from around 85 fruit growers.

Mengniu said it currently buys milk from dairy processors in New Zealand and Europe, and once the acquisition clears it would step up its purchases from Australian suppliers.

The acquisition is subject to Australian

Competition and Consumer Commission and Foreign Investment Review Board approvals.

It is expected to clear in the first half of 2020, China Mengniu Dairy said.

China Mengniu’s acquisition of Bellamy’s

Australia received Foreign Investment Review Board approval on November 15 and will be voted on by shareholders on December 5.

GOVERNMENT APPROVES TAKEOVER OF BELLAMY’S The Federal Government has approved the $1.5 billion takeover of Bellamy’s by China Mengniu Dairy Company, although the infant formula maker will have to remain headquartered in Australia for a decade and run by a majority Australian board.

Treasurer Josh Frydenberg has backed the Foreign Investment Review Board’s view that the acquisition is not contrary to Australia’s national interest, but has imposed conditions including that majority of the Bellamy’s board of directors will have to be Australian resident citizens.

The Treasurer also requires the Chinese

buyer to invest at least $12 million in infant milk formula processing facilities in Victoria.

This approval will ensure Bellamy’s can continue to support jobs in Australia and strengthen its ability to expand its domestic market as well as its export opportunities, particularly into the growing Asian market,” Mr Frydenberg said.

“The decision will also provide opportunities for the suppliers that contribute to Bellamy’s products, including Australian dairy farmers.”

The Treasurer said the government

welcomed foreign capital and investment, which supports Australia’s output, employment and standard of living.

“The conditional approval demonstrates our foreign investment rules can facilitate such an acquisition while giving assurance to the community that decisions are being made in a way which ensures that Australia’s national interest is protected,” Mr Frydenberg said.

Shares in Bellamy’s, which is number four by market share in the Australian infant formula market, surged by more than 50 per cent on one day in September when

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The board of the Tasmania-based company unanimously recommended shareholders vote in favour of the proposal, but denied it had anything to do with fast- tracking Chinese regulation to allow expansion in the country.

After a lengthy wait, Bellamy’s is still waiting on backing from China’s State Administration for Market Regulations to sell organic formula in stores.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

NEWS // 5

NSW duo moves into Victoria THE DEVELOPERS of a leading NSW dairy

business have invested in two large farms in northern Victoria.

Australian Fresh Milk Holdings directors Michael Perich and Quentin Moxey spoke to a Murray Dairy dinner recently about the principles that drive their business.

Of interest to the 100 people attending the dinner was the choice of the business to invest in large properties at Coomboona and Torrumbarry.

Both men said they had some confidence in the future of dairying and they had invested in the region as part of a strategy to diversify their holdings.

The Coomboona operation, formerly partly owned by retail entrepreneur Gerry Harvey, was recently given permission to expand its herd to 4900.

The company has also purchased and aggregated farms in the Torrumbarry area to create a 4000 ha holding, which will be used to raise heifers.

Their business at Gooloogong in NSW milks about 7200 cows, and the whole business employs more than 200 people.

Mr Perich and Mr Moxey talked about their emphasis on people, their cows and their land, and how they used vertical integration in their business model, raising their own stock and growing their own crops.

“We try to align ourselves to the market and opportunities the market can afford us,” Mr Moxey said.

“If you don’t take care of your people, your cows and your land, you are shot.

“We like cows, this is why we do it. We don’t cut corners on facilities and investment or anything that will get in the way of the cows.

“When it comes to our people, we are essentially a big HR company. We spend a large amount of our time wrapping our arms around that.”

The two men explained how they were putting more structure into the business and had recently completed a strategic planning day with the staff.

“We have always tried to take care of our animals, but we have never had a robust framework to deal with that,” Mr Moxey said.

On areas like safety they were also implementing more structured policies.

Quentin Moxey (left) and Michael Perich speak at a Victorian Murray Dairy dinner recently.

“We are here to build a world class dairy business,’’ Mr Moxey said

Mr Moxey said they were strong believers in vertical integration.

“It all starts with growing crops; we do our own harvests. We do as much as we can, and that includes getting our milk to market.

“Integration is about how can we work together to create more value in a product.”

Mr Perich said they wanted to be in control of their product all the way through the supply chain.

“In terms of growing the feed, managing the water, managing the people, milking the cows, transporting the milk. You want to have that accountability,” he said.

“And that responsibility for the milk all the way through gives us the ability to sell that product to the end customer, because we have that accountability and responsibility all the way

along the supply chain.”

Mr Moxey said northern Victoria was a significant dairy region and he believed it was going to hold some control in terms of balancing national supply.

He said the contraction of supply in Queensland and NSW meant there would be more milk moved north.

“You guys have a big role to play in balancing national supply.

“We think there are some evolving farming systems that will develop here.”

Asked about the impact of high water prices, Mr Moxey said they were moving into the area at a time when temporary water was costing $500/Ml, and they had no background in paying cheaper prices, so they were factoring this into their operations.

Cattle on the Coomboona property near Shepparton.

Australian Fresh Milk Holdings is a partnership between the Perich and Moxey families, the Chinese New Hope Group and Freedom Foods.

DAIRY NEWS AUSTRALIA DECEMBER 2019

6 // OPINION

EDITORIAL

Time for the code Someone once said: handshakes are for people who trust each other; contracts are for people who don’t.

When things go wrong there is a natural tendency to run for the rule book or check out who promised what.

In an increasingly litigious society there is a strong temptation to beat an opponent over the head with a legal challenge or at least the threat of legal trouble.

So, it could be that one of the driving forces behind the push for a mandatory code of conduct is a natural human urge to make rules to “stop this from ever happening again”.

The anger and disappointment that erupted after the clawback, introduced by Murray Goulburn, followed

by Fonterra, has had a searing effect on the collective memory of the dairy industry, and contributed to calls for more rules to prevent a repeat.

But the experience has also provided a catalyst for some deeper thinking about how the industry conducts itself, and may help clarify what dairy people regard as fair.

Many professions have a set of ethical standards classified as codes of conduct and even some dairy businesses have begun introducing their own codes of conduct applying to employees and managers.

Yes, it is a pity when we have to spell out how everyone should behave, when for older generations, it might seem blindlngly obvious that we need to be just fair dinkum with each other.

But we live in a highly competitive world populated by people with differing approaches, standards, views and philosophies.

How can we go in pursuit of the dollar? Where does the responsibility of the board start and finish, and where does that leave our customers, stakeholders and employees?

The time for a mandatory code of conduct has arrived. A voluntary code would be useful, but would hardly meet the demands (and the memory) of dairy farmers. It would be difficulty to measure, problematic to enforce and would lack the teeth of a statutory code.

A mandatory code would ensure that no processor or group of processors could place themselves outside of the enforcement.

Introducing stricter rules will not change human behaviour overnight but it will give positive guidance to corporations and some re-assurance to suppliers.

Darby McClaren is a young man with his sights set on a career in agriculture.

Pictured on the Undera farm of Raymond and Sarah Parker, Darby is only 13, but has already shown cattle at International Dairy Week. The son of Ian and Amanda McClarren of Greytown, he spends some of his school holiday time at Parker’s Glencliffe Illawarra stud, learning about the dairy industry. He is pictured with the cow he raised from a calf, Glencliffe Suzette 817. Darby has bred his first stud Illawarra from her.

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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 DECEMBER 2019

NEWS // 7

Water rally in Canberra DAIRY FARMERS from the Murray-Darling

Basin were well represented in the Convoy to Canberra protest rally held on December 2.

Irrigating dairy farmers were among the thousands of people who marched on the capital to urge governments to scrap the Murray-Darling Basin Plan and to reform water policies.

The protestors say the plan has devastated regional communities, leaving them without schools, doctors and sporting teams. The Convoy to Canberra group said there was water available but government policies were denying farmers access.

It comes as the government launched plans to provide subsidised water to farmers to grow fodder for livestock.

Federal Water Minister David Littleproud said the first 40 gigalitres would be available for farmers from December 9.

"It will help farmers keep their herds healthy so they’re not forced to de- stock," he said.

Earlier in the week, the MP warned there was water sitting idle across the basin.

He said the underuse was puzzling and called on states to make sure farmers were using every drop they could.

"We need to get under the bonnet of this to find why it’s going on," he said.

Protesters want the basin plan "fixed" or scrapped, more dam infrastructure and other Dairy farmers Lauire and Gayle Clarke from Invergordon in measures like carp control to help improve connorthern Victoria travelled to Canberra for the rally. ditions in the Murray-Darling.

HANSON ATTACK OVER DAIRY Pauline Hanson has launched a blistering attack on the Morrison Government over its "pathetic" handling of the dairy industry.

The One Nation leader on December 2 introduced a bill to make the competition watchdog determine a floor price for milk. Senator Hanson tried to bring on her legislation for immediate debate, but the government opposed the move.

The motion was knocked back after a 36-all tie, with Labor and the Greens supporting Senator Hanson.

"You are so blinded, so bloody minded

that you are prepared to actually destroy the dairy industry in Australia," she told parliament.

Senator Hanson repeated calls for Agriculture Minister Bridget McKenzie to resign, accusing her of favouring dairy farmers in her home state of Victoria.

"She has been pathetic in her handling of this," the One Nation leader said.

"This is all about protecting her own interests, not about the farmers out there.

"She said the government had changed the proposed dairy code of conduct to

protect processors’ profits.

"They don’t give a damn about our dairy industry — it’s all smoke and mirrors," said.

The mandatory code of conduct is being finalised after a third and final round of consultation ended last month. The issue inflamed tensions within the Nationals, with Senator Hanson persistently calling for the industry to be re-regulated.

"Get the bloody guts to stand up as an individual and represent your constituency and the people of this nation because they feel as though they’ve been absolutely

forgotten," she told Coalition senators.

The One Nation leader said she had met with dairy industry figures who told her the code doesn’t go far enough to protect farmers.

Labor pledged to ask the Australian Consumer and Competition Commission to look at a floor price for milk before the election. Tasmanian independent senator Jacqui Lambie sided with One Nation, while Centre Alliance senators and South Australian Cory Bernardi backed the government.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

8 // NEWS

Last year was toughest, says DA chair THE 2018–19 season was one of the tough-

est in recent memory, Dairy Australia chair Jeff Odgers has remarked in his annual report.

“Persistent, very dry conditions across all regions significantly impacted the cost of key inputs and farm profitability, yet farmers showed their resilience in the face of these challenges.

“National milk production decreased 5.7 per cent to 8.8 billion litres.

“The Murray region was hardest hit, with high water prices and falling production an ongoing concern.”

Mr Odgers said Dairy Australia worked hard to support farmers through a challenging year.

“A feed shortage planning campaign was launched to help farmers assess the seasonal settings, optimise spring feed production and quickly mobilise procurement. The combined response of our Southbank and Regional Development Program (RDPs) teams made a real difference at farm level.”

Mr Odgers said latest survey data shows nearly two in three farmers (66 per cent) have attended or participated in at least one regional activity or event. This participation rate has risen slowly over the past five years and corresponds

with an improvement in overall farmer satisfaction with engagement.

He said the big issues at stake are well summarised in the Australian Dairy Situation Analysis report produced by Dairy Australia and the partner organisations.

“It shows how the market, in terms of global competition, the supply chain and consumer trends, has evolved faster than our industry.

“The profitability of dairy farming has also become more volatile and increased risk management skills are required. There is a widespread shortage of skilled labour. Industry structure is another area where we can make improvements.

There are also plenty of opportunities for the industry, built on continuing strong demand for dairy products in Australia and around the world.”

The annual general meeting was held in Warragul on November 29.

Mr Jeff Odgers was re-elected and other directors elected to the board were Josephine Rozman and Paul Wood. Director Jan West retired.

Dairy Australia Chair Jeff Odgers.

“The Murray region was hardest hit, with high water prices and falling production an ongoing concern.”

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DAIRY NEWS AUSTRALIA DECEMBER 2019

10 // NEWS

Stress burns to new level for farmers RECENT FIRES that swept through the Cleary

family farm on the mid North Coast in NSW have just added another level of stress to an already tough year.

Sue and Ian, along with son Leo and wife Meaghan, and daughter Meg and husband Michael, milk 350 A2 cows.

They also run 200 heifers and since the fire, are fully hand feeding their entire herd.

The business has embraced technology and are cutting edge farmers.

They have done everything they can to produce milk as efficiently and sustainably as possible, but they are definitely feeling the pressure of a tough year, made even tougher.

The family are grateful the Pappinbarra fire which swept through their property didn’t burn any infrastructure or take any lives, but it has decimated their pasture.

“We have lost 100 acres of grazing pasture and 500 acres of bush area which had pockets of grazing. We have lost a lot of fencing and are in the process of trying to secure our cattle and clean up the mess,” Sue said.

The fire has added another burden to a stressful situation.

“We had lots of things in place to cope with the drought, but the fire has escalated things and made everything much more difficult − it has added extra mental pressure and affected our resilience and coping skills in what was already a very difficult situation.”

The business had prepared for the drought, but the loss of pasture means they will have to

purchase additional hay and hand feed all their stock.

“There is not just the cost of procuring the hay, there is the trouble of sourcing it and feeding it out. This fire has really stretched our resources and our resilience,” she said.

Sue said when the fire first hit over the weekend of November 16 to 17 the family’s first priority was always the welfare of the animals.

“We spent a lot of time watching the weather and having bush nearby made things very unpredictable.”

When Dairy News spoke to Sue a couple of weeks later, the helicopters had returned to the property after a flare up, which excited the grandchildren but not the family.

“Obviously they use water on the property to put out the fires which is a priority of course, but what was once a reasonable water hole is now depleted and that becomes another thing to worry about until it rains and fills up again.”

Sue said while the family had received a lot of help from the community the dairy industry is under enormous pressure.

“This issue is huge. The federal and state governments need to have a better understanding of Australian farmers and the threat they are under and if they want to see fresh milk continue to be produced in Australia, there needs to be a price increase and things need to change.

“We produce a superior product but we are facing a catastrophic situation not just across dairy but all Australian agriculture.”

Ian Cleary fights the Pappinbarra fire which burnt through 242ha of the family’s property.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

NEWS // 11

CEO joins DataGene board GENETICS AUSTRALIA chief executive offi-

cer Anthony Shelly has been elected to the board of DataGene.

He was elected at DataGene’s annual general meeting on November 14, where Gippsland dairy farmer Tim Jelbart was re-elected to the board and chairman Ross Joblin was re-appointed.

Mr Shelly has spent his entire 30-year career in dairy herd improvement, most of it with Genetics Australia and its precursor

Genetics Australia chief executive officer Anthony Shelly has been appointed to the board of DataGene.

FORMER KIWI ON BOARD AT DAIRYTAS DairyTas has welcomed a new fulltime dairy extension officer to the team.

Sian Savage is formerly from New Zealand and brings with her a wealth of dairy experience.

Her passion is the result of managing a dairy farm on a 50/50 share basis with her partner.

Now her cows are leased, she is keen to devote her time to supporting Tasmanian dairy farmers.

Outside of the industry, Sian loves to travel and has worked on a dairy farm in Wales, been a deck hand on a tourist catamaran in Ireland and has driven combine harvesters in Canada.

Prior to having three children, she was a police officer for 10 years.

organisations.

He is also a non-executive director of the National Herd Improvement Association of Australia.

Mr Shelly said he was excited about the opportunity to be more involved with DataGene.

“I’m passionate about the role of genetics and data in helping farmers optimise their businesses, which is essentially what DataGene is all about,” he said.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

12 // FEATURE

Beefing-up US dairy IT’S HOT and dusty and there are pens of cattle

lined-up alongside each other into the distance.

A tractor is moving manure, another is dispensing feed into the long troughs.

The animals stick their heads in and munch, it’s like they don’t even come-up for air. The ration is that tasty.

Others mull around the water troughs, in the middle of the yard.

The black animals have strong muscle definition and an even fat covering − a chunkiness that you would see in steers or heifers at prime markets throughout Australia.

There was no doubt about it, it was a beef feedlot.

So, when the guide, Natasha Mortenson pointed out into the brown dust and told the crowd “these are from our dairy” puzzled expressions stared back at her.

“These are from your Jersey-cross herd?” one person asked. Others shook their head with scepticism.

Natasha explained they were in fact from Riverview Dairy and its closest 6000-head operation as well as other “ranchers” from across the United States.

She said they were known as BeefBuilders − a trademark of the Wulf Cattle Company − registered as the name of dairy-beef cross offspring produced by dairy cows and sired by specially selected bulls.

These sires started with a base of Wulf Limousin genetics. Sires selected to mate with the females are homozygous, black and polled. From there, the sires selected to produce BeefBuilder calves are those whose offspring performs the best in the feedlots and then “on the rail” at the meat processor. These calculations are based on carcass data supplied by meat processors.

Fertility testing is completed every 30 days and assuming a sire has passed all these checkpoints, he is used via artificial insemination in the Riverview Dairy herd. This semen is used strategically to join cows that are not required to supply dairy replacement heifers.

Creating a valuable, terminal cross-bred animal from dairy cows without the carcass penalties that would otherwise be associated with the eating quality and yield of a dairy animal, is the end result.

The dairy-beef strategy is also about adding value to excess dairy calves, making the most of year-round supply from dairy farms to generate

Dairy employee Natasha Mortenson said the large-scale dairy beef feedlot at Minnesota supplies two major multinational meat processors.

revenue in the beef market.

“The success of the BeefBuilders have changed everything,” Natasha said.

“It has allowed the business to grow. We get our own dairy heifers through sexed semen, but the bull calves, especially those with Jersey in them, they had absolutely no value.”

Riverview is a diversified agribusiness which includes 14 dairy farms, five beef operations and cropping land. The latter supplies feed to the

dairy and beef operations. It employs about 1200 full-time staff and the company is now majority employee owned. The operation includes about 95 000 dairy cows and turns-off about 60 000 BeefBuilders a year.

The Riverview headquarters is at Morris in western Minnesota, in the mid-west corn belt, where the original family crop and beef farm became an 800-cow dairy operation in 1995. It was then, more than two decades ago, it opened

its doors to local community investment.

Wulf Cattle began more than 50 years ago selling Limousin and LimFlex (Angushybrid) seedstock. The operation ranks in the National Cattlemen’s Beef Association’s Top 25 Seedstock Producers. Nine years ago, it partnered with Riverview to investigate the potential of BeefBuilder calves after trialling different beef breeds across their cross-bred, Jersey and Holstein herd.

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FEATURE // 13 Now, the Riverview dairy at Morris joins about 55 per cent of its herd to sexed semen for dairy replacements and the rest to BeefBuilder semen.

At Louriston Dairy − another Riverview operation at Murdock in Minnesota milking 9500 cows − the younger herd is joined to dairy semen and the older cows receive beef semen for BeefBuilders. Those joined to dairy get three services from dairy semen and if they return onheat they get two-to-three chances with beef across five-to-six months.

All calves from the Riverview dairies get marked with different colour tags to identify their future. All calves are moved to “warmer” states − those further south − at three to seven days and only return to the farms either on the point-of-calving or once they’ve calved.

Those bred to be BeefBuilders get pink tags and are kept together in group housing. When they reach 600 to 700 pounds they are moved into the feedlot at Morris.

BeefBuilder steers are finished at 1400 to 1500 pounds (635 to 680 kg) with heifers 1300 to 1400 pounds (590 to 635 kg). Natasha said the animals in the feedlot had an average weight gain of 3 pounds (1.3kg) a day from 20 to 30 pounds (9 to 14kg) of feed a day.

Riverview and Wulf Cattle also “feed cattle” through its Breeding to Feeding business.

“Satellite ranches buy our genetics, then their offspring, we buy them back, the BeefBuilder cattle,” Natasha said.

This ensures i’ts finished at the feedlot and

there’s a market for the BeefBuilder offspring.

BeefBuilder offspring can be purchased by Wulf Cattle at a couple of days old, right up to 300 to 400 pounds (136 to 181kg).

Natasha said two huge multinational meat processors purchase most of the BeefBuilder cattle: US company Tyson Foods, a multinational food corporation and the world’s second largest processor and marketer of chicken, beef and pork; and the meat processing arm of Cargill Inc, the largest flour milling company in the world.

According to Wulf Cattle, 90 per cent of its carcasses are United States Department of Agriculture yield grade three or more. Yield grades run from one − the highest yielding carcass − to five which is the lowest. A yield grade is an estimate of the percentage retail yield on the carcass for four cuts − the chuck, rib, loin and round.

Riverview continues to expand its dairy operations in the US as it gains cost efficiencies thanks to large scale production.

Natasha said its BeefBuilder side of the business would grow with the dairy farms.

She told the crowd value-adding the dairy calves not only provided a reliable income stream, it helped them stay “tour ready and YouTube ready”.

Natasha explained this phrase implied the business had nothing to hide and was always operating at optimum animal welfare standards.

Eliminating the “waste” of bull calves was key to this value, while also providing income, she said.

The Riverview Dairy operation includes 95 000 milking cows across 14 farms.

This farm at Morris in Minnesota was the first to convert from a family owned cropping and beef operation to a dairy farm. Up to 6000 cows are now milked on this site with a feedlot nearby for the dairy-beef cross animals.

The dairy-beef cross animals − known as BeefBuilders are reared in feedlots as part of the Wulf Cattle operation.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

14 // NEWS

Levy needed on milk price ECONOMIC “MARKET failure” in Australia’s

dairy industry meant the time was well and truly overdue for the Federal Government to consider introducing an 11¢/litre a litre farm support levy on the price of retail milk, according to dairy industry advocates.

Advocacy group Dairy Connect chief executive Shaughn Morgan said dairy farmers

nationally were beset by drought, low farm gate and high fodder prices, sky-rocketing energy costs, continuing unfair milk supply agreements and shifting consumer demand to plant-based drinks, with lacking “truth in labelling” action.

“Farmer families are exiting dairying because, in current terms, the sector is not delivering a viable economic framework for their farming

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enterprises,” he said.

Dairy farmers were also at risk of being locked into low milk price agreements for up to five years because of delays in introducing a federal Mandatory Dairy Code of Conduct for producers and processors, as recommended by the Australian Competition and Consumer Commission.

Mr Morgan said the new mandatory code should be introduced as early as possible.

He endorsed comments by national consumer advocate Allan Fels who said a helping hand was needed again for dairy farmers, 20 years on from deregulation of the sector.

Former ACCC chairman Professor Fels (who oversaw the introduction of deregulation) said dairy farmers needed to receive a reasonable return for their product to ensure the sustainability of the industry as well as continued supply of Australian milk to customers.

He said the reintroduction of a retail levy of 11¢/litre of liquid milk, which had been originally introduced at the time of deregulation and expired after eight years, could be the answer.

“To my mind, the levy was an adequate solution for that period following the deregulation of the dairy sector and it expired at a time when the industry had adjusted to the new way of

operating,” he told the Weekly Times.

“Obviously, times change and sometimes this form of assistance can be re-examined, particularly in light of the difficulties faced by farmers.”

Former Assistant Minister for Children and Families and current Federal Nationals Member for Lyne, David Gillespie, also called for a temporary retail levy of 10 per cent across all milk lines in February this year.

“Deregulation intended to make the sector more efficient and for a time, it did, but not everything goes to the textbook and outside factors, such as drought and the changing retail environment, mean efficient dairy farmers are struggling,” Professor Fels said.

Dairy Australia has indicated that Australian milk production, for the 2019–2020 season, continues to decline with production down 8.4 per cent since the same time last year. It is anticipated a further drop, during the 2019–2020 season, in national milk production of 3 to 5 per cent to 8.3 to 8.5 billion litres due to a reduced national herd size and high input costs. Australia was producing 11 billion litres at the time of deregulation.

“With dairy farmers continuing to exit the dairy industry and the number of dairy farms reducing, we need action now,” Mr Morgan said.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

NEWS // 15

Group’s charity status revoked THE VICTORIAN Farmers Federation and

the United Dairyfarmers of Victoria have welcomed news that animal activism group Aussie Farms has had its charity status revoked by the Australian Charities and Not-for-profits Commission.

VFF president David Jochinke said common sense had prevailed and the commission had recognised that inciting illegal activity, such as invading farms in the dead of night, was not the actions of a genuine charity.

“Animal activists have been able to openly flout Australian charity laws by structuring their business operations to take advantage of tax concessions and rebates,” Mr Jochinke said.

“This is a great step forward, but there is still a lot more work to be done to ensure farming families and employees can feel safe at home and in the workplace.

Mr Jochinke said “currently, Victoria’s weak trespass laws” did nothing to deter individuals or businesses that invade farms, disrupt businesses and steal livestock.

“As a priority, the Victorian Parliament needs to pass laws that send a strong message to animal activists: if you trespass onto farms, you will be prosecuted,” he said.

As a part of the Inquiry into the Impact of Animal Rights Activism on Victorian Agriculture, the VFF and UDV have called for trespass penalties to be strengthened to $220 000 for individuals and $400 000 for organisations, and $1000 on-the-spot fines.

UDV president Paul Mumford said when the Aussie Farms map was launched earlier this year, farmers across the nation were shocked and angered by the attempt to incite activists to invade farms.

“Our members asked us to join the push to remove Aussie Farms’ charity status. After working behind the scenes, in co-ordination with other agricultural bodies, we are grateful to the ACNC for their strong stance against abuse of the charity status,” Mr Mumford said.

“This is a great win for grassroots advocacy and shows the importance of the agricultural industry uniting in the face of such blatant attacks.”

ACNC commissioner Gary John said charities must stick to their purpose under charity laws.

“Revocation of charity status is the most serious action the ACNC can take,” Mr John said.

The revocation takes away the organisation’s Commonwealth charity tax concessions, including income tax exemption, fringe benefits tax rebates and goods and services tax concessions.

The findings from the investigation will remain private because of secrecy provisions in the ACNC Act. Aussie Farms said the ACNC failed to conduct the investigation independent from external influence due to notifying the animal agriculture industry of its decision in advance.

The group said appealing through the ACNC would be futile and would call for an external review into ACNC’s role.

Animal rights activists protesting in Melbourne. Picture: David Crosling.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

16 // MARKETS

Australian consumers and the value of premium products WITH TEMPERATURES heating up, all eyes

are on southern Australia’s harvest prospects.

As northern parts of the country experience yet another failed harvest, the southern crop will be paramount for any potential impact on current feed costs.

While feed prices continue to keep farmers’ cost of production elevated this season, healthy demand for dairy is supporting a strong milk price.

Supermarkets act as a major sales channel for Australian dairy products and remain vital for value creation throughout the supply chain.

During a challenging year, it’s important to keep track of supermarket sales, as any change in consumer shopping behaviour tends to impact demand for dairy.

Premium dairy products drive value growth Over the course of 2019 consumers have grown increasingly concerned about the wider economy and the potential for a downturn, which has impacted consumer spending.

While consumers have become less willing to spend money on ‘non-essential’ items, sales of premium priced dairy products have driven value growth in the domestic market.

Supermarket sales of yoghurt only grew 0.1 per cent to 233 000 tonne over the 12 months to June 2019, however, value increased 2.1 per cent.

This was mainly driven by sales of premiumpriced yoghurt products, such as sweetened yoghurts (up 9.9 per cent in value) and probiotic yoghurts (up 7.2 per cent in value). The same can also be observed in sales of cheese, which

grew 0.9 per cent in volume to 160 000 tonne but 3.4 per cent in value to $2.5 billion over the same period.

The overall value growth was largely driven by deli-style cheeses, which are retailed at a significant premium compared to other varieties.

Opinions vary on extra value The perception of what is additional value differs significantly between consumers.

Some are willing to pay extra for products perceived as healthy while others will pay extra if they think the product enables them to support a cause.

The ‘drought milk’ launched by retailers is an example of this.

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saw private label milk sales grow.

Sales of private label milk grew 3.5 per cent in the first month ‘drought milk’ was introduced on the market, even though it was retailing at a higher price-point than usual.

It is important to consider that consumer perceptions of product benefits are key to purchase decisions. This can include the idea of a product being healthy to consume or accommodate various diet preferences.

Health-style yoghurt sales surge The health and fitness trend spans across all shopper goods, as consumers are increasingly concerned about purchasing products marketed as being beneficial to their health.

In the dairy space, this trend has been especially evident in the yoghurt market.

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MARKETS // 17 Over the past year, sales of yoghurts that position themselves as healthy have grown exponentially, both in volume and in the number of companies manufacturing this product.

These products are perceived as healthier and thus consumers are willing to pay a significant premium for a small pack-size.

Over the 12 months to June 2019, sales of single-size yoghurt containers grew 14.6 per cent to make up 34.1 per cent of the entire yoghurt market. This surge in growth was predominantly underpinned by fast growing ‘health-style’ yoghurt varieties.

a welcome sign.

While the industry continues to focus on the outcome of the harvest, the value growth in the yoghurt and cheese market highlights the opportunities available in the domestic market for products that capitalise on consumers preferences.

Source: IRiWorldwide

Challenges and growth opportunities Ongoing drought, fires and high feed and water costs continue to create challenges for the industry and milk production is likely to remain subdued this year. Whilst conditions on farm and for processors remain challenging, opportunities in the domestic market are

Yoghurt value growth by category

Consumer campaigns compete with dairy

20% 15%

Per cent

Another trend influencing the market is consumer desire for individualisation and the willingness to purchase products that allow them to express specific views.

This trend is currently being pursued by a nut beverage company as a tactic to attract more consumers.

A company selling oat milk, in Australia and overseas, has launched a social media campaign called “post-milk generation”, which

the future.

encourages consumers to switch to oat milk and share photos on social media of them consuming the product.

This desire for consumers to be recognised as unique individuals has partly driven the 23.9 per cent increase in oat milk sales in the six months to September, at the same time as dairy alternatives sales increased 6.7 per cent. This represents an example of the kind of consumer campaigns the dairy industry will have to compete with in

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DAIRY NEWS AUSTRALIA DECEMBER 2019

18 // NEWS

Breeding progress on track in Tasmania ACCURATE RECORD keeping and data col-

lection has always been at the heart of Mark Kerr’s operation.

But now the dairy farmer from Winnaleah in north-east Tasmania has refocused his business to make the most of this information.

A huge increase in fertility — resulting in a tighter-natural seasonal calving pattern — has just been one of the benefits.

“Since I took over from Dad, we introduced mating programs into the herd, focused on fertility with our breeding and now we have more replacements and we had no inductions this calving season,” Mark said.

“It has taken four to five years to get there, but now, when I look at our Genetic Progress Report all the arrows are heading the right way.”

Mark tracks the progress of his 445-head herd comprising Holsteins and Holstein-Jersey crosses against the national average using DataGene’s Genetic Progress Report.

Mastitis resistance, protein and milkfat have been his biggest breeding gains, despite a focus on fertility, reflecting how he selects his bulls.

“I sit down with the local AI representative in the lead-up to mating season and go through some bulls, they are predominantly Australian from the Good Bulls Guide,” he said.

“Fertility is a non-negotiable; bulls have to be between 104 to 110, and I like them to be ranked as high as possible on the BPI (Balanced

Performance Index).”

Mark said the BPI suits his grass-based system, which includes fodder crops throughout the summer and 4 kg of grain/cow/day in the bail.

“The BPI covers everything that is important to my business.”

The BPI is an economic index, including a blend of productivity, type and health traits to maximise profit — in-line with farmer preferences.

Apart from fertility, Mark has focused on maintaining a medium-frame cow — about 500 kg liveweight — with good feet, as one part of the farm requires an 8 km round-trip to the dairy.

Looking to the future with genomics The herd’s excellent records meant his business was the perfect fit for Ginfo, the dairy industry’s national reference database for genetic information. One of the benefits is that participating herds have their first lactation heifers classified and genomic (DNA) tested.

New to Ginfo, Mark is looking forward to having his next crop of replacement heifers tested and then will test the calves.

“Last season I had 60 surplus calves,” he said.

“The dilemma I had was, ‘Which 60 do I sell?’

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have been selling calves that could have endedup being good cows.”

After success using sexed semen for mating his maiden heifers, Mark had 220 heifer calves this year and only requires 120. This year’s retention decisions will be based on genomics.

Five years into taking over from his farther Darryn, Mark is “looking forward to getting to know the genetics of the herd”.

“I herd test, so I have got information on those cows, and herd testing comes in handy for mating, but to know that a certain cow’s is ‘such-and-such’ BPI and ‘good for this and good for that’ will make mating decisions even better,” Mark said.

As well as helping with breeding decisions, Mark expects genomics to add long-term value to his business.

“I’d like to think, one day down the track, that I’d have the whole herd genomically tested and if I wanted to retire and sell the herd, I’d like to think my cows would be worth a lot more money,” Mark said.

“Also, if I had excess, I could sell to export or another dairy farmer. If they want to buy 60 heifer calves, they should be worth more with more information.

“I can show them a report which will say ‘this cow is this BPI and the bull was this BPI’, it has got to make my cattle worth more. I know if I was buying cattle, the more information the

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better. Into the future, selling to export, there might be a premium for calves that are genetically tested.”

As a fourth-generation dairy farmer, Mark said his father − the third generation − has been surprised by the technological advances in the industry.

“He said, ‘Whoever thought you could DNA test a calf?’ I didn’t ever think we’d be able to.”

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DAIRY NEWS AUSTRALIA DECEMBER 2019

FEATURE // 19

Expanding to meet retail demand

BY JEANETTE SEVERS

A unique milk retail product, marketed as raw and drinkable, is about to scale up and diversify to meet Australian and overseas interest, that sees it looking for new suppliers.

In November, Made by Cow released a triple-cream brie, broadening its range from coldpressed liquid milk, and agreed to a move into flavoured milk to meet retail demand.

The company’s expectation is that will increase product supply by 300 per cent, according to chief executive officer Wade Porter.

The Made By Cow brand is unique in Australia, a high pressure processed (HPP) liquid produced from the milk supplied by a single Jersey herd and sold in 1.5 litre bottles. It is marketed as raw milk, because it is not heat pasteurised.

However, the NSW Food Authority approved the new product as a food product after a 12-week testing schedule, Mr Porter said.

“We received food authority approval for the product, with a lifetime of six weeks, but operate on a 28-day use-by date,” he said.

“The raw liquid milk is poured straight into high-density polyethylene bottles, sealed and put through the processor.”

The machine is the same used for high pressure processing of meat, particularly chicken, juice and airline food.

“HPP technology creates shelf life, that enables a company to produce food without preservatives and other additives,” Mr Porter said.

“We had a look at the milk category and identified an opportunity for a long-life capacity.

“Our technology was able to knock out the bigger bacteria, but the smaller enzymes and nutrients are able to thrive, because they survive the pressure of cold applied at 12 000 kg/ cm squared.”

The liquid milk product was recently picked up by Lion Nathan, to distribute across 12 000 retail outlets in Australia.

Growing consumer interest saw Made By Cow launch a triple-cream brie, manufactured in the Hunter Valley, in November.

The business will also diversify into flavoured milk drinks by the end of this year.

There is now export interest, particularly given the longevity of the product.

“We’re working through some export opportunities in the Singapore region, Malaysia, Hong Kong; they are interested in our product because it fits within their open regulatory environment,” Mr Porter said.

Scaling up product, the manufacturers expect to be operating six-days-a-week, continue to lease equipment and premises at Homebush in Sydney and expanding into a Melbourne processor.

Up until now, Made By Cow has been marketed as single origin milk, from Jersey cows

The high pressure processing unit, used to produce a liquid milk marketed as raw and for human consumption within Australia.

milked on a Berri farm.

They are currently only buying 10 to 15 per cent of the milk produced on that farm, Mr Porter said.

They are now looking for more suppliers to meet forecast increased demand, and milk from Friesian herds too, even though it means they will no longer be marketing their milk as single origin.

“We’ll need to find more suppliers to prepare ourselves for scale. We forecast we’ll be increasing our current business by 300 per cent, through the diversified range and the increase in product going into 12 000 stores,” Mr Porter said.

The single origin Jersey herd, based at Berri in NSW, is no longer enough to supply an increased demand for the Made By Cow products.

DAIRY NEWS AUSTRALIA DECEMBER 2019

20 // ANIMAL HEALTH

Nutrition counters stress EVERY AUSTRALIAN dairy farmer knows

the impact heat stress can have on their herd.

New research has found feeding protected B vitamins can help improve reproduction and achieve higher milk production.

Jefo Nutrition’s Hélène Leclerc said dairy cows adapt to heat stress by modifying metabolism to reduce heat expenditure, resulting in reduced milk production, and reproductive performance will be negatively impacted, resulting in a loss of profit.

“Supplementing a blend of protected B vitamins (folic acid, B12, pyridoxine, pantothenic acid and biotin) during lactation is an innovative option to counteract impacts of the heat stress impact and will improve milk production, component yield and reproductive performance.

“The benefit of supplementing protected B vitamins during heat stress is even higher than under non stressful condition,” Ms Leclerc said.

A study conducted during summer in the north of Mexico, where reproductive

performance is drastically reduced due to heat stress, showed an improvement when the ration was supplemented with a blend of protected B vitamins, in fact, the first service conception rate increased by 19 per cent while 22 per cent more cows got pregnant early at 120 and 150 days in milk.

During another study conducted in the United States with cows under heat stress, the energy corrected milk increased by 3.8 kg/day when compared to non-protected biotin. The increase included higher milk production with 100 g more butterfat and 160g more milk protein.

The Temperature Humidity Index (THI) was developed to identify the point (68) where heat stress negatively affects performance. An example of a THI of 68 would be 24°C with a 30 per cent humidity.

A University of Arizona study showed cows producing 35 kg of milk daily dropped by 2.2 kg of milk per day when the minimum THI was on average 68 (65 to 73), the maximum impact on

milk production will occur 24–48 hours following heat stress.

Cows under heat stress have depressed heat expression due to a lower production of estradiol and quality of ova. Early embryo development is impaired when the body temperature of the dairy cow reached 38.9˚C which explains lower pregnancy and conception rates during summer.

It takes 40–60 days following heat stress before fertility returns to normal.

Recent studies have also shown an association between the effects of heat stress during the breeding period and subsequent reduced milk production of progeny between 82 -399 kg over a lifetime lactation.

What can be done to reduce the impact of heat stress on dairy cows?

The use of cooling systems and a reduction of stocking density are sound management tools along with providing clean water and some nutritional adjustment to the ration.

The take home message on heat stress ■■

■■

■■

■■

The dairy cow will adapt to heat stress by modifying its metabolism to reduce heat expenditure.

Milk production and reproductive performance will be negatively impacted resulting in a loss of profit for the dairy producer.

Supplementing a blend of protected B vitamins (folic acid, B12, pyridoxine, pantothenic acid and biotin) during the lactation period is an innovative tool to provide ammunitions to dairy cows to counteract the heat stress impact and will improve milk production, component yield and reproductive performance.

The benefit of supplementing protected B vitamins during heat stress is even higher than under non stressful condition.

DAIRY NEWS AUSTRALIA DECEMBER 2019

ANIMAL HEALTH // 21

Heat strategies for summer WITH THE prospects of another long hot

summer in front of us, what can you do to minimise the impacts on your cows?

Heat stress can have a very significant impact on your dairy cows, and ultimately your farm income.

Heat stress can: ■ Reduce milk production by up to 40 per cent in severe cases (and this lower production can last for several weeks).

■ Reduce milk protein and fat tests.

■ Reduce feed intake, with impacts on body condition.

■ Impact cow health and fertility.

■ Increase the risk of disease such as mastitis.

Dairy Australia has just released a new publication, ‘Cool Cows — strategies for managing heat stress in dairy cows’. This is part of its highly successful ‘Cool Cows’ program.

The booklet provides a wealth of information to allow dairy producers to recognise the signs and effects of heat stress. It also gives strategies that can reduce its impact.

Whilst we might associate heat stress with temperatures above 40°C, even at temperatures above 25°C, cows begin to feel uncomfortable, and will burn energy to keep cool.

Did you know the main form of cooling used by cattle is sweating?

Sweating is responsible for 70 per cent of the heat loss from cattle with the other 30 per cent mainly from breathing, with a small amount lost from the skin and saliva.

So anything that can be done to assist cows lose heat through evaporative process is worthwhile. Remember that increasing humidity (particularly in the absence of air movement) can significantly increase the impacts on your cows.

What can you do to monitor and implement strategies to reduce the impacts of heat stress?

■

■

■

■

■

■

Monitor cows’ breathing rate — 40–60 breaths/minute is normal, above 60 indicates the cow’s core body temperature is above 39°C, and above 70 indicates significant stress. 90–100 breathes/minute can result in cow death.

Use forecasts and other tools to anticipate the onset of adverse conditions — refer to the Cool Cows website (coolcows.com.au) to help monitor weather conditions.

Provide shade — shade is your best friend in hot conditions. It can reduce radiant heat loads by more than 50 per cent.

Provide cool, clean water. High producing cows may consume up to 250 litres of water per day in hot conditions. The greater the difference in temperature between the environment and the water, the better the result.

Sprinklers and fans — use sprinklers to wet down and cool concrete before cows arrive at the dairy; heat loss from a wet cow increases three-fold when airflow increases.

Minimise walking time.

Overhead sprays can reduce the effect of heat on dairy cows.

Take feed to cows sheltering from heat.

Modify milking times — milk as early as possible in the morning, and after 5 pm in extreme conditions.

There are many other things that you need to take into account with extreme heat events, including nutrition, mating and heat detection, cow (and herd) health and changes to your milking schedule.

Both short and long term planning are essential to minimise the impacts of heat stress.

Monitor your cows, implement short term options such as wetting down yards and providing sprinklers. In the long term, develop a plan to improve access to shade, provide adequate access to cool, clean water, and install fans in the milking shed.

In our environment, heat stress can have significant impacts on cow health and performance, and on your financial performance as a dairy producer.

Investing in keeping your cows cool will have a significant pay-off.

For further information, producers are encouraged to review the information provided in the ‘Cool Cows’ publication, available from Dairy Australia and Murray Dairy, and speak with your farm advisers.

By Adrian Smith is senior lands services officer — mixed farming with Murray Local Land Services.

■ ■

“Heat stress can have a very significant impact on your dairy cows, and ultimately your farm income.”

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DAIRY NEWS AUSTRALIA DECEMBER 2019

22 // ANIMAL HEALTH

Look out for cancer eye THE MOST common type of tumour or “cancer

eye” in cattle is squamous cell carcinoma.

Cancer eye is an invasive and rapidly spreading tumour and is economically important, representing 58 per cent of all cancers that result in condemnation of mature cattle slaughtered and 33 per cent of total condemnations in mature cattle (Australian Quarantine Inspection Service, NSW, 2010–2014). Herd prevalence varies (one to 20 per cent) and is associated with risk factors such as breed, pigmentation, age and exposure to sunlight (UV radiation).

Cattle with non-pigmented eyelids and conjunctiva are at increased risk, with Herefords and white-faced Holstein-Friesian cattle being more frequently affected. Cancers usually start on the unpigmented skin but can spread to pigmented areas.

Older cattle are more susceptible with the disease being uncommon in cows under five years of age. This is likely related to increased exposure to other risk factors such as sunlight.

Viruses have also been implicated but their importance is not fully understood.

Identification of cancer eye The tumours are found most commonly on the third eyelid, the upper and lower eyelid margin and on the eyeball itself.

There are four common appearances, three are benign and the fourth is highly malignant, meaning it has the ability to spread to adjacent tissues.

1.

Plaque (benign): small circular, white elevation on the surface of the eyeball.

2.

Keratoma (benign): hard, raised growth on the eyelids, often with discharge and debris.

3.

Papilloma (benign): a wart-like growth.

4.

Carcinoma (malignant): nodular and cauliflower-like. Commonly is bloody, ulcerated and foul smelling. Can initially appear as one of the benign forms or can simply arise without any of the benign stages.

Treatment Treatment must be prompt, aggressive and

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performed by a veterinarian.

The success of treatment is highly dependent on the location of the tumour and invasion of surrounding tissues.

Tumours can be surgically excised, either in isolation or may involve removal of the entire eyeball.

Excision does not guarantee a cure and high recurrence rates (40 to 50 per cent) can sometimes occur. Your veterinarian will check the lymph nodes of the head and neck prior to any treatment to help give a prognosis.

Cryotherapy (freezing the tumour off with a cryogen such as liquid nitrogen) can also be used and works well on small tumours (<2 cm diameter) on the eyeball itself. Another therapy involves exposure of the tumour to ionising radiation such as strontium-90.

Prevention and control Routine inspection of all cows (>3 years) allows early detection and treatment of cancer eye.

Always check both eyes as 30 per cent of affected animals will have lesions on both eyes and sometimes multiple lesions on one eye.

Identification of plaques, papillomas and keratomas is preferable as these early stages are easier to treat and have a better prognosis.

All treated animals should be closely and regularly observed for recurrence.

Early culling of affected animals is a viable option due to the risks of recurrence and carcase rejection at slaughter. Severely affected animals should be humanely destroyed immediately to minimise discomfort and suffering.

In the long-term, cancer eye can be effectively controlled by selection for pigmented eyelids.

Eyelid pigment is present at birth, whilst eyeball pigment usually takes >5 years to fully develop. Both are highly heritable and appear to be genetically related, thus selection for one effectively selects for both.

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Feed LEVUCELL SC Rumen Specific Live Yeast every day and fine-tune your herd to peak efficiency.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

24 // NEWS

Measuring gain for ryegrass value AGRICULTURE VICTORIA research scien-

tists have developed a quicker and more costeffective way to measure the nutritive value of thousands of individual rye-grass plants, enabling pasture breeders to select for highenergy varieties.

The nutritive value of perennial rye-grass is an important driver of productivity for Australia’s red meat and dairy industries, as it contributes towards the total liveweight gain or milk production of grazing cattle.

However, the nutritive value of rye-grass is traditionally not targeted in pasture breeding programs because it is slow and expensive to measure with destructive sampling and laboratory-based low-throughput methods.

Research conducted at Agriculture Victoria’s Hamilton research centre is helping to overcome this.

In this research, data was collected from

rye-grass plants using a field spectrometer — a scientific instrument which can measure substances in plants such as sugars or fibres.

The data collected by the spectrometer was then used to develop prediction models for eight nutritive value parameters such as protein, fibre and digestibility.

Agriculture Victoria research scientist Chaya Smith said the new field-based model was very promising for pasture breeding programs and farmers.

“This will provide a way to improve the nutritive value of forage varieties that is much faster and cheaper than anything that currently exists,” she said.

The models also provide a tool for selection in breeding programs with a high degree of accuracy comparable to laboratory-based spectrometry.

“The accuracy varies with each of the eight

A more accurate method of measuring pasture value is on its way.

nutritive value parameters, but protein, dry matter and digestibility were 80 per cent accurate,” Ms Smith said.

“For more complex traits such as fibre content, we are collecting more samples from different environments and growing seasons to make the prediction model more robust.

“We are also developing a machine learning approach to improve the prediction of sugar content, which is complex as grass sugar content changes over the course of the day.”

Australia’s grazing industries will benefit significantly from pastures with better nutritive

value.

Ms Smith said improvement in these herbage quality traits would increase the amount of nutrition available for stock and would decrease the need for, and reliance on, costly supplements.

“Eventually, as the model is further developed, it could also be a tool for farmers to check the quality of their pasture in the field, providing relevant, real-time information for decisionmaking,” she said.

This research is part of the DairyBio joint venture between Agriculture Victoria, Dairy Australia and the Gardiner Foundation.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

MACHINERY // 25

New mower targets simplicity and reliability CASE IH has launched a new mower-conditioner

that puts optimum productivity to the fore.

The Case IH DC103 Disc mower-conditioner builds on the pivot Disc DC3 and the DC2 sidepull designs, providing superior cut and crimp and the overall performance customers demand.

Case-IH product manager of hay and harvest, Tim Slater, said the key to the DC103 is its simplicity when it comes to operation, adjustments and maintenance, with the reliability and ruggedness required to get the job done within often demanding timeframes.

“Due to the ongoing drought across many regions, the demand for hay-making equipment has been high, so the launch of this new DC103 has come at a good time for customers looking to upgrade machinery, or for those new to this market,” Tim said.

“It retains everything customers appreciated about its predecessor, the well-established DC102, but then introduces a raft of enhanced features that are now standard, such as revised cutter-bar flotation and additional tilt adjustment and quickchange knives. It’s a practical and user-friendly design that produces outstanding results in all conditions.”

The DC103’s simplicity can be attributed to clean lines with minimal moving parts, and for most in-field adjustments, tools are not required.

Even changing cutting blades is now just a matter of using the tool mounted on the mower conditioner, featuring a quick-change design with a retaining clip and eccentric nut.

Tim says cutterbar flotation is the biggest change on the model, redesigned for simplicity yet providing the best protection in the event of encountering an obstacle.

The range of motion as the cutterbar floats up protects the knives from the obstacle. In addition, each disc also has its own independent protection with a shock hub (frangible splines) that protects the main cutterbar drivetrain if it’s not possible to float over an obstruction.

The new Case IH DC103 Disc mower-conditioner on the job.

Above: Alan Marx with his Tow and Fert Multi 4000 applying his brew in Taranaki.

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“It retains everything customers appreciated about its predecessor, the well-established DC102, but then introduces a raft of enhanced features that are now standard.”

“The cutterbar itself has a really robust design, with each disc having its own enclosed gearbox module. This makes the cutterbar very durable and is ideal for working on slopes as the oil doesn’t run to one end, but is instead retained in each module. Each gearbox module can also be serviced individually,” Tim said.

Contributing to enhanced productivity are the wide conditioning rollers that match well to the width of the cutterbar, providing for optimum processing of the cut crop through the conditioning system that guarantees the best and fastest dry down of hay.

“The swivel hitch and driveline are designed for heavy application and with the double swivel gearbox there is minimal stress on universal joints at the tractor even while performing the tightest of turns,” Tim said.

TOW AND FERT: THERE IS ONE FOR YOUR FARM

More grass More MILK

“This year I have saved $18,000 and 36 tonne of Nitrogen because of my Tow and Fert.”

Ian Maxwell, West Coast, South Island, Tow and Fert Multi 1000 owner.

“The quality of what we are growing here now, compared to what we used to, is just fantastic.”

Ross McKenzie, Riverton, South Island, Tow and Fert Multi 4000 owner.

“We have cut our fertiliser bill in half in the first year and produced the same amount of grass.”

Miah Smith, Atiamuri, North Island, Tow and Fert Multi 2800 owner.

“There are so many benefits to using a Tow and Fert, but time saving is for us, the biggest.”

Mathew Zonderop, Matamata, North Island, Tow and Fert Multi 1200 owner.

“We have made a significant saving because we are not using the bulky’s to apply our high analysis fertilisers.”

Michael Parks, West Otago, South Island, Tow and Fert Multi 1200 owner.

“I recommend to those in environmentally sensitive catchments to seriously look at a Tow and Fert.”

Alistair Neville, Reporoa, North Island, Tow and Fert Multi 800 owner.

“Dairy farmers looking to get that last inch out of their business, this machine will do it.”

Ben Black, Culverdon, South Island, Tow and Fert Multi 4000 owner.

From small seeds to fertiliser “it’s a magic way to utilise one machine to do a broad spectrum of jobs on the farm.”

Alan Marx, Eltham, North Island, Tow and Fert Multi 4000 owner.

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DAIRY NEWS AUSTRALIA DECEMBER 2019

26 // MACHINERY

CFMOTO's all-electric ATV – the Evolution A.

Evolution A wows Milan to look at alternative propulsion methods including all electric platforms to provide a zero-emission alternative.

“The Evolution A is the next generation in CFMOTO ATVs powered by an electric motor and drivetrain housed in an all-new chassis design,” CFMOTO Australia said.

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“The Evolution A might be something you would see on the next moon landing but showcases CFMOTO’s ability to break the mould by looking beyond traditional concepts and pushing the boundaries in its powersport products.”

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“Unique features include the ability for the rider to choose different power modes and change suspension settings whilst driving or on the fly.

“Smartphone integration opens an abundance of features including custom displays, navigation, tracking aids, phone calls, notifications and

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DAIRY NEWS AUSTRALIA DECEMBER 2019

MACHINERY // 27

Pump up your resources on the east coast but other states as well, farmers and homeowners are suddenly realising that preparation is vital.

One company, Australian Pump Industries, has moved into high gear not just to dramatically increase shipments, but to also pull engines forwards from the world’s biggest engine companies.

“We were able to get Yanmar diesels and Honda petrol engines just in time,” Aussie Pumps chief engineer John Hales said.

As farmers and homeowners rush to equip themselves with firefighting protection equipment, fire pumps and hose kits are in urgent need.

Some of the Aussie Pumps key dealers keep running out of stock, particularly in areas around the periphery of major capital cities and regional centres.

Dealers report an influx of tired and often useless Third World fire pumps being shipped in for repair.

“Why would you waste valuable labour at $60 an hour fixing a $250 pump?,” one Aussie Pump dealer said.

“The best place for those pumps is on eBay or as part of a recycling program.”

Climate change impact there’s no doubt that the drought has had a severe impact on terrible fire season conditions.

The amount of moisture stress in trees and scrub has led to huge amounts of material that is tinder dry and ready to burn.

The Aussie Pump team has rushed to print thousands of more copies of their Bushfire Survival Guide to help people living in endangered areas.

“We tell people to either equip properly to fight the fire, that means the right equipment and the right preparation, or get ready to leave,” Mr Hales said.

“We don’t encourage people to be brave enough to fight a bushfire in their backyard just because they have a pump set up and a small tank of water.

“The right equipment and adequate water are essential.”

Diesel’s Are Safer Aussie Pumps are rushing to get more diesel engine drive units into the production program.

“Building diesel drive pumps is now a priority as many home owners have decided to make the investment of a diesel because of the low volatility of the fuel,” Mr Hales said.

The company said diesel is safer, although engines are heavier and more expensive than petrol drives.

“If it’s the matter of saving a few bucks or eliminating a very real risk, it can be an easy decision to make,” Mr Hales said.

“The diesel drive pumps are all fitted with automatic decompression making them easy to start, unlike the old single cylinder clangers of the last century.”

Electric start is also an option, making starting the pump just a matter of turning the key.

“The NPWS mobile units use the Aussie Fire Chief pumps fitted with Yanmar 4.8 hp diesel engines with electric start,” Mr Hales said.

For more information on Aussie Pump’s comprehensive fire pump line up and the free Bushfire Survival Guide, call (02) 8865 3500 or visit: aussiepumps.com.au/

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DAIRY NEWS AUSTRALIA DECEMBER 2019

28 // MACHINERY

Award winning tractor JOHN DEERE is being honoured in the Tech

for a Better World category of the 2020 CES Innovation Awards, which recognise outstanding product design and engineering in consumer technology products.

John Deere is an Innovation Awards Honouree for its new 8RX tractor that integrates artificial intelligence, the Internet of things, and advanced automation to help farmers work more efficiently while also gathering data to make more informed decisions and increase future machine intelligence.

"Our focus remains on providing innovative solutions to help customers meet the many challenges of farming,” John Deere’s Intelligent Solutions Group senior vice president John Stone said.

“We are humbled by this award from a leading technology organisation as it highlights our equal commitment to agriculture, innovation, and technology.”

The CES Innovation Awards program is an annual competition. The Tech for a Better World category honours products that impact society and the world in a positive way.

"The 8RX is a high horsepower row crop tractor with four tracks that integrates smart technology in a user-friendly design," John Deere’s Global Tractor Platform senior vice president Dr Bernhard Haas said.

The new John Deere 8RX tractor is a CES Innovation Awards Honouree in the Tech for a Better World category.

"This award recognises our focus on innovation in precision agriculture that enables farmers to increase productivity as they meet the

challenge of feeding the rapidly-growing global population."

For the latest news and product launch

information from John Deere, visit JohnDeere. com.au or see your local John Deere dealer.

DAIRY NEWS AUSTRALIA DECEMBER 2019

MACHINERY // 29

Fast-tracking with JCB THE WORLD speed record set by JCB with its

1016 hp Fastrac tractor was achieved with the ultimate BKT know-how.

In addition to the revised chassis and powertrain developments carried out by the British tractor maker, this speed machine was also equipped with a tyre specially developed by BKT and capable of withstanding high-speed runs in excess of 241 km/h.

For the task, BKT worked closely with JCB’s engineering team to create a technically advanced tractor tyre capable of handling extreme speeds and loads.

The tyre is a specially constructed 400/80 R 28 RIDEMAX IT 696, based on a tyre usually found in industrial applications and capable of speeds of up to 65 km/h on paved surfaces.

This tyre offers a series of excellent features and among these an outstanding rolling resistance, which turns into fuel savings and a both BKT has joined up with JCB to get JCB tractor Fastrac Two to become the fastest tractor in the world. economic and environmental advantage.

Compared to the classic RIDEMAX IT 696 tyre, on which it is based, this high-speed version underwent considerable changes to meet aerodynamics and enabled two additional steel natural rubber to further improve its grip. achieved a maximum speed of 247 km/h and an the demands of the challenge. belts to be integrated into the tyre, to create And after digitally-created simulations, exten- average speed of 218 km/h.

Firstly, tread blocks were reduced in height much needed rigidity. sive rig-testing followed to obtain the best perThis new speed record was almost 50 per from 27 mm to just 10 mm, to improve stability This also prevented the tyre from generating formance of the tyre, and at speeds that included cent faster than the record of 166.7 km/h set and reduce unwanted movement. excessive heat and stopped tyre growth at high a generous safety margin. in the summer of 2019 at Elvington Airfield in Secondly, the carcase was reshaped to rotational speeds.

With motorbike racer and lorry mechanic York, using Fastrac One — JCB’s first recordbe smaller and narrower — this improved Finally, this tyre has been created with more Guy Martin in the driving seat, Fastrac Two setting tractor.

DAIRY NEWS AUSTRALIA DECEMBER 2019

30 // MACHINERY

Quadtrac journeys full circle AFTER MORE than two decades plying its

trade in Australian paddocks, a very special Case IH Steiger Quadtrac has returned to where it all began.

The Quadtrac 9370 has gone on display at the iconic Case IH factory in North Dakota, United States, after a marathon ocean journey from Australia earlier this year, returning to the place

it was manufactured back in 1996.

It now holds pride of place as the final exhibit on the tour for visitors to the facility.

It’s thought to be one of the first Quadtracs to roll off the Fargo line, before being shipped to Australia and sold to a farmer in Victoria.

For the next 20 years it had just two owners, clocking up a total of 17 000 hours in the field.

The Steiger Quadtrac 9370 is now displayed at Case IH’s North Dakota facility in the United States.

During its working life, the 360 hp tractor performed a variety of tasks, including planting operations that involved pulling an 18.3 m Flexicoil ST 820 direct drill and a 9000 litre air cart.

Over the two decades it earned a reputation for power and reliability, still the hallmarks of the Steiger Quadtracs sold today.

“This tractor is a perfect illustration of why this model is still so popular after more than 20 years,” Case IH Australia and New Zealand general manager Pete McCann said.

“The Steiger Quadtrac changed the face of Australian farming and greatly influenced the tractor ranges of nearly every other ag machinery manufacturer.

The Steiger Quadtrac 9370 at its former “The last owner of the 9370 described it as home, before being overhauled and a reliable workhorse, with very few issues, that brought back to its former glory. could be used across a variety of tasks with outstanding results.

“They were so satisfied with it, that they was marked — the 175th anniversary of Case IH. replaced it with a Steiger 450 Quadtrac.”

The Steiger Quadtrac tractor features four The Case IH Australia and New Zealand team individually-driven, positive-drive oscillating purchased it in 2016 with the aim of restoring it tracks, with an exclusive five-axle design that to celebrate the model’s 20th anniversary. distributes weight evenly and consistently for It took a total of 135 hours to bring it back to increased traction with less compaction.

Each track maintains constant contact with its former glory and the Quadtrac was one of the star attractions at the 2017 AgQuip field days at the ground, allowing for a great ride, optimal Gunnedah, where another significant anniversary pressure, superior flotation and better traction.

BOBCAT TL30.60 TELESCOPIC HANDLER FINANCE FROM $345 PER WEEK!* 3T Capacity

Hydraulic Quick Detach

A/C Cab

2spd Hydrostatic Trans

3 Steer Modes

100hp Perkins Engine

Tropical Cooling Pack

www.clarkfarmequipment.com www.bobcatofaustralia.com.au

*Offer ends 31/12/2019 or while stocks last. Bobcat TL30.60 Telehandler includes Standard Bucket and Pallet Fork. Based on $95,000 + GST, 4.95% finance, GST back in on the 4th month, 20% balloon with 60 equal repayments to approved ABN holders. Freight and assembly charges may be applicable. Terms and conditions apply. Clark Farm Equipment reserves the right to correct any printing error.

MEGA END OF YEAR

SALE ABN HOLDERS ONLY

COMPACT BUSINESS

ONLY

$17,050 INC GST

9M x 13.5M x 4.5M (30’ x 45’ x 15’) Heavy duty building with a large industrial roller door and PA door in zinc.

Add an extra $1,050 for Colorbond.

PAY THE DEPOSIT NOW TO

SECURE THE PRICE UNTIL 30 JAN 2020* Great Openings 15M x 27M x 5.1M $29,540 INC GST

HEAVILY REDUCED PRICES ACROSS THE ENTIRE RANGE ONLY AUSTRALIAN $19,890 TREASURE PLUS

BIG DEEP & HIGH PLUS

INC GST

ONLY

$56,200 INC GST

18M x 36M x 5.7M (60’ x 120’ x 19’) Wide and high openings for large machinery or hay.

TOUGH DOUBLE

VERSATILE FARM SHED

ONLY

$28,130 INC GST

15M x 22.5M x 5.1M (50’ x 75’ x 17’) Great farm shed with three closed sides. Easy to extend.

ONLY

$23,090 INC GST

13M x 18M x 5M (43’ x 60’ x 16’8”) Two large 9M bays. Can be extended at any time.

10M x 22.5M x 5.1M (33’ x 75’ x 17’) Open both 10M ends. Add an end wall for $2,010 or an extra bay for $3,470.

SUPER INDUSTRIAL

“I have built hundreds of Now Buildings Sheds over several years.

In fact, I have built 21 of their sheds over time for the same customer. We have had many referrals on our work and their sheds. Now Buildings have a great product and is backed by a great team.”

Mark Horsburgh, NSW

Paul Trounson, VIC

ONLY

$12,700 INC GST

AWESOME VALUE

10M x 13.5M x 5.1M (33’ x 45’ x 17’) Open both 10M ends, perfect for hay, machinery or workshop.

Add an end wall for $2,010 or an extra bay for $3,470.

ONLY

$30,000

4.9 OUT OF 5 STARS ON GOOGLE

THANK YOU TO OUR THOUSANDS OF HAPPY CUSTOMERS! ONLY

$54,800 INC GST

18M x 40.5M x 5.7M (60’ x 135’ x 19’) Huge clear span openings for large machinery or easy storage. Add an end wall for $4,450 or an extra bay for $5,680.

FARMERS MATE

INC GST

18M x 22.5M x 5.1M (60’ x 75’ x 17’) What a great shed! Industrial rated. Ideal hay or machinery shed. End wall, extra bays or lean-to available.

ONLY

$19,990 INC GST

INC GST

EASY ACCESS

ONLY

$20,990 INC GST

9M x 24M x 5M (30’ x 80’ x 16’8”) Four large 6M bays to suit all storage needs. Lock up bay available at extra cost.

WHAT OUR CUSTOMERS HAVE TO SAY

HUGE OPEN ENDED PLUS

HAY MATE

ONLY

$32,780

15M x 27M x 5.1M (50’ x 90’ x 17’) Outstanding access from both the gable end and 9M opening on the side.

INC GST

18M x 31.5M x 5.6M (60’ x 105’ x 18’5”) Plus a 4.5M (15’) roof extension and large industrial roller doors. Makes an ideal workshop or factory. Colorbond slightly extra.

WHAT PROFESSIONAL SHED BUILDERS HAVE TO SAY “Now Buildings are an extremely helpful, easy to deal with, well-organised company. Their communication is outstanding and their build preparation is well planned. The plans are easy to follow, the materials are always there and the sheds are a good Australian made product. I would 100% recommend Now Buildings to anyone wanting a new shed.”

ONLY

$66,590

THIS WAY THAT WAY

“Would we recommend Now Buildings to family and friends? Yes definitely!!

We have!! The builder who put up our shed has put up a lot of sheds and said it was the easiest shed he has built - instructions fantastic, structure fantastic. It may not be the biggest shed but as we have been in drought for 6 years, it’s what we could afford and it does the job well.”

“We chose Now Buildings because of the value for money the sheds offer & because the variety of design options provided us flexibility. We would recommend Now Buildings to friends & family because once we erected the shed were impressed all over again by the quality of the materials & simplicity of putting it up.”

Anne W, Longreach, QLD 4730

David B, Kendenup, WA 6323

FLEXIBLE STORAGE

ONLY

$21,800 INC GST

TAX SAVING SPECIAL

ONLY

$20,540 INC GST

9M x 18M x 4.2M (30’ x 60’ x 13’8”) Lots of options with two 3M x 3M roller doors, one large industrial roller door and one PA door. Building in Colorbond $23,300.

15M x 18M x 5.1M (50’ x 60’ x 17’) Strong, robust and extendable. Open both ends. Add an end wall for $3,300 or an extra bay for $4,630.

BIG OPENINGS

ONLY SOLID $17,640 PROTECTION

9M x 18M x 4.2M (30’ x 60’ x 13’8”) Enclosed one bay and open three. Large industrial roller door with one PA door in zinc. Add an extra $1,000 for Colorbond.

ONLY

$34,990 INC GST

15M x 27M x 5.1M (50’ x 90’ x 17’) Strong and functional. Extend to 18M (60’) wide for $7,490.

INC GST

10M x 18M x 4.5M (33’ x 60’ x 15’) Open one end for great three sided protection.

MANUFACTURING HIGH GRADE SHEDS IN QLD, NSW, VIC, SA, WA & TAS

THE NOW BUILDINGS ADVANTAGE

100% Australian steel, 100% Australian made, Australian family owned Site specific engineering, heavy duty connection & footing design High grade industrial strength materials and design Gutters & downpipes included, high tensile bolts & class 4 fasteners

Ph 1300 559 668 www.nowbuildings.com.au CALL TREVOR CALL JAMES CALL JOHN

0431 597 160 0413 104 820 0437 699 111

Images are from the Now Buildings range and are for illustration purposes only. Imperial measurements are approximate. Extras pricing in bold is applicable at the shed purchase stage only. Extensions for existing sheds POA. WA and NT slightly extra.

Delivery extra. Now Buildings will not be responsible to honour these prices once they have sold out. E&OE. Prices are Region A, Terrain cat. 2. Reg B available at slightly extra. Prices are based on collection from one of our many depots, delivery is available at an extra charge in most areas. *Order must be placed into full production by 30 January 2020.