Dairy News Australia - December 2024 - With West Vic Region

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WEST VIC REGION

TREAT IT RIGHT

Multispecies pastures have added to the McGlade family’s home-grown feed supply and fit neatly into their biological farming philosophy. Pictured are Sally McGlade with granddaughters Sadie, Delilah and Bella. Page 6.

Bega Cobram Cohuna Colac Corryong Dumbalk Eskdale Finley Foster Heywood Howlong Katunga
Kiewa Koroit Korumburra
Leongatha Maffra Numurkah
Orbost Rochester Simpson
Swan Hill Timboon Wangaratta Warragul Wonthaggi Yarram

Waiting for the rain Chair’s message

THIS YEAR has been one to remember, with some months marking the lowest rainfall levels on record.

Undoubtedly, the dry conditions have impacted many farms, including my own.

This year marks the lowest pasture production I’ve ever witnessed in all my years on the farm.

My father, with his decades of experience, agrees that he has never seen pasture production so low.

Increased overhead and feed costs added to the challenge.

Until we receive much needed rainfall, conditions will remain tough.

As we approach mid-summer and autumn with depleted feed reserves and decreased cash flow, it’s clear that more challenging times lie ahead, along with some inevitable stress.

However, it is important to remember that we are not alone in facing these circumstances.

There are confidential support services available from WestVic Dairy, the Rural Financial Counselling Service and Agriculture Victoria.

It’s encouraging to see many farmers reaching out for various types of support, whether it be using water calculator resources or engaging in our one-on-one Our Farm, Our Plan program.

We are fortunate to be in an industry where support is available, with research and

development paving the way for our future.

A challenge over the next few months is managing heat stress in our cows.

With the Bureau of Meteorology predicting a hotter than average summer, it’s important to recognise and understand the signs of heat stress, and to implement strategies to reduce its impact.

The ‘Feeding Cool Cows’ research — a joint initiative between Dairy Australia, Gardiner Foundation and Agriculture Victoria — has identified feeding strategies that can reduce the negative impacts of hot weather on cows, leading to healthier, happier animals which in turn can increase milk production and profits.

If this is something that interests you, several ‘Feeding Cool Cows Research Fact Sheets’ are available at https://dairyaustralia.com.au

WestVic Dairy will also be hosting a Cool Cows workshop in the region this month. Make sure you are signed up to the WestVic Dairy Newsletter or WestVic Dairy on Facebook to register when the details are announced.

It would be remiss of me not to acknowledge the increased fire risk this year.

Many farmers across the region volunteer as CFA members, so are well-aware of the dangers and risks of fire.

Yet, some have not completed their own fire preparedness plan.

It might have been on the to-do list for many years, or it’s been done five years ago and forgotten in a desk drawer since. Now is a good a time to develop or review your fire plan to keep the people you care about safe.

A well-prepared plan can guide you on what to do and when, to protect your family, your staff, your home, critical farm infrastructure and livestock.

Ensure you, your family, and your staff are familiar with the fire safety plan for your farm.

Resources from Agriculture Victoria and the CFA, including templates, can be very helpful. I encourage you to stay vigilant this summer by checking the fire danger rating daily.

Let’s continue to help one another until the rain arrives and embrace the opportunities for growth and innovation in the year ahead.

My best wishes to you, your family and friends for a happy and safe Christmas season.

– Brendan Rea is the WestVic Dairy chair.

Sustainability measures up

GETTING WATER when and where it’s needed has had a transformative impact on the Vallance family farm at Nirranda.

A variable rate irrigation system installed about three years ago has been the key to success, allowing the farmers to make the most of their water entitlement and to concentrate resources where they’re needed.

The family is mindful of the need to look after water, biodiversity and soil and to reduce their waste and emissions.

The farm was purchased in 1995 by Bruce and Andrea Vallance. They now run it as an equity partnership with farm manager Isaac Fynn and their three children: Jordy, Sam and Casey.

Sam and Casey work off-farm, and Jordy worked as a vet for a number of years before transitioning back to the farm full-time two years ago.

“I enjoy that farming can have a positive influence on the environment,” she said.

“There are exciting things happening in agriculture looking at how we will farm in a changing climate. I was lucky to have two careers that I really enjoyed but I’ve always loved the farm.”

Bruce and Andrea are still active in the business but are looking to reduce their involvement. Isaac is responsible for the day-to-day running of the farm, while Jordy, who has oversight of longterm strategy for the business, works alongside Isaac and oversees animal health.

Continued on page 4

CONSISTENT PROFIT DRIVES SOUTH-WEST FARMS

South-west Victorian farms in the Dairy Farm Monitor Project have recorded above long-term average profits for five consecutive years.

Farm profits in 2023-24 were reduced from the previous year as farm incomes were lower, feed inventories were depleted and cash costs were higher, according to the latest project report.

Very dry seasonal conditions led to the lowest pasture production in many years and dairy herds were fed greater quantities (at higher costs) of concentrates, silage and hay to maintain per cow milk production.

The project found nearly all participants headed into 2024-25 with expectations for

lower business returns emanating from a lower milk price, depleted feed reserves, high interest costs and an outlook for a dry 2024 spring.

In 2023-24, variable costs increased from the previous year mostly due to the costs of managing dry conditions.

Feed inventory reserves were depleted on most farms which added to their costs — 22 of the 25 farms reduced their feed on hand (tonnes of dry matter).

The very low rainfall limited pasture availability and feed conservation.

Farmers relied on their carry-over reserves to supplement the lower pasture availability, and many headed into the next season with minimal fodder reserves.

In 2023-24, more supplements were fed — both home-grown and purchased — to maintain milk production.

The price of purchased feeds ($/tonne DM) were mixed with concentrates cheaper in 2023-24 compared to the previous year, while hay was more expensive. Overall, purchased feed costs increased from the previous year.

Victoria-wide, in 2023-24, average farm profits fell nine per cent from the previous year’s high and remained strong compared to the long-term average.

There was variability in profit across the Victorian participants with farm returns increasing on average in northern Victoria.

In contrast, the two southern regions (south-west Victoria and Gippsland) had a decrease in profits from the previous year. Across the state, prices received for milk supply and cattle decreased, leading to lower average farm incomes.

Total costs (variable and overhead costs) were similar to the previous year on average.

Improvements in feed inventory lowered feed costs in northern Victoria and Gippsland, along with lower expenditure on fertiliser.

In all regions, there were increased costs on purchased fodder and all cash overheads which kept total costs high relative to the longer-term.

Bruce, Jordy and Fin in the multispecies plot, which has filled feed gap periods for the Vallance family farm.
Neil Jess Trav Gemma

Sustainability measures up

They milk 830 cows on a 287-hectare irrigated milking platform that allows a high stocking rate with a split calving system and three-way cross of Friesian, Montbéliarde and Swiss Red.

About 140ha under permanent irrigation and 36ha are irrigated for a few weeks at the end of the season and in autumn if needed to utilise the farm’s water entitlement.

“When we bought the farm, we started with a small entitlement for pumped groundwater, but as we purchased blocks around us, some of them came with water as well so that increased our entitlement,” Bruce said.

The farm now has a 708-megalitre entitlement, a benefit that is common in the area and one of the factors making Nirranda such prime dairying country.

They have five centre pivots watering varying areas to make up the 140ha, and 36ha of fixedpoint sprays.

Remote technologies used to run the system ensure they get the best results.

“We have soil moisture probes that are linked by two-way radio back to the dairy that tell us when to start watering,” Bruce said.

“You can look on the screen at the different pivots and see where your moisture levels are sitting. They are linked so you can run them off your phone.

“It will send a text message is there’s a fault and there’s an app so you can adjust the speed settings or move it to another spot.

“It is a better use of resources and time.”

The Variable Rate Irrigation (VRI) system is particularly helpful but this technology has not been previously adapted in the region because iron bacteria in the water blocks the fine sprinkler heads and valves.

Jordy says new water conditioning technology uses resonance frequencies to disrupt bonds between minerals and charged compounds that result in mineral solids being dissolved so the iron bacteria is able to pass through without blocking.

To set up the VRI, an EM (electromagnetic) 38 survey is used to map soil types, elevation, drains and topography.

“It is mapped on the computer and then transferred to the pivot box which has a watering map so the sandy areas will get more, wheel tracks and wet areas will get either none or less,” Bruce said.

“There’s a lot of data and scientific evidence about where you should set the rates. It’s really good for our farm because we’ve got a lot of variation in soil type.”

faster so they get more to start with.”

it decreases our electricity costs because we are watering where we need it,” she said.

Bruce estimates the water savings over the past three years at between 10 and 20 per cent, with a similar saving on electricity.

“It makes our water entitlement go further and it has dried up the wetter areas so we’re getting better growth in those areas because they’re not flooded.

“This is backed by recent studies that have shown up to 20 per cent reduction in water use and a 0.5 tonnes DM/ha increase in pasture production.”

Jordy adds that in traditionally dry areas, pastures are persisting better and living through summer.

“We’re better able to manage the areas that we know get waterlogged through spring. Those areas are performing better because they’re not getting the same allocation as the drier areas, which means we’re growing more and buying in less feed.”

After a trial from 2020-22, the farm is now dedicating four to 10 hectares a year to multispecies pastures.

Bruce said the results so far have been positive.

“I was fairly sceptical when we started about what the benefits would be but they seem to be stacking up,” he said.

“We’re starting to see what is possible with multispecies and there are more gains to be had so we will continue with them and wait and see about animal benefits.”

Jordy said the paddock used for the initial trial was sandy and had trouble establishing pasture.

“Multispecies are working well for our farm,” she said.

“With multispecies, we’ve been able to get a perennial base in that paddock. The persistence of the pasture is great. It’s giving us feed at a time of year when the rye-grass, which is the majority of the farm, is slower.”

The measures have been introduced for sustainability, but with an eye on the bottom line.

“We’re a commercial dairy farm and we’ve been able to integrate these sustainability measures into our business,” Jordy said.

“Every strategy has to be able to stand alone, be profitable and has the added benefit of leaving the land in better condition.

“Sustainable farming practices are worth investing in to help future-proof dairy”

“If we get a heavy rainfall event during summer, you can wait for your swampier areas to dry out,” Bruce added.

During November the Vallance family hosted a multispecies pasture, water efficiency and revegetation field day presented by Warrnambool Coastcare Landcare Network as part of the Building Climate Resilience and Increasing Productivity and Biodiversity on South West Farms project. Continued from page 3

“You have different maps for different parts of the year. When you start irrigating, all of your wet areas get very little water. The sandy areas drain

The system also ensures that cow tracks running through the irrigation don’t get any water and areas around drinking troughs are kept dry.

Jordy says the VRI system allows them to deliver the water requirement that the grass needs for optimal growth, not more or less.

“It increases our efficiency by optimising the pasture growth and allows us to use our water allocation as effectively as possible, and

Jordy Vallance checks her app that monitors the pivot irrigators.
The variable rate irrigation has led to significant water and power savings.
The Vallance herd in the multispecies pasture.
The herd is a three-way cross of Friesian, Montbéliarde and Swiss Red.

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Simple equation for success

TIM MCGLADE has always looked at his farm a bit like a vegie garden — if you treat the soil right, it will treat you right.

That philosophy, developed and consistently improved since changing to biological farming in 2010, has opened a lot of doors for the McGlade family from Scotts Creek.

Tim and his wife Sally were among the founders of Otway Pastures Milk in 2013 and continue alongside the Davis and Whiting families.

The business was built around farms that used home-grown compost instead of synthetic fertilisers and has continued to promote a local product making a positive impact on the environment.

The venture started in 2013 as Green Pastures, a name that stuck for six years before being changed to Otway Pastures.

“Green Pastures has no origin; we’re close to the Otways and it made sense to go down that path,” Tim said.

It started with five farming families. One recently retired and another is planning to sell the farm and decided to leave, leaving the McGlade, Whiting and Davis farms but with plenty of room for growth.

Since the start, the combined farms have grown the business from 1.2 to 1.3 million litres and this year it’s on track to do 3.5 to 3.7 million litres.

The business started over drinks at Ocean Grove when farming friends were lamenting being at the mercy of price cuts and one suggested making their own brand.

Tim admits it was a big risk and subject to a lot of meetings and debates — but he also admits he’s a “shocker” for taking on risks.

“Tony Evans from Camperdown Compost was keen to do something. The criterion was how we biologically farm and compost to utilise all the waste on our farms. At that stage, we were all doing that anyway.”

The McGlades had turned to alternatives as a cost saving measure, and then came to enjoy the environmental and production benefits.

“Our fertiliser bill was going through the roof,” Tim said.

“We started looking at alternatives around 2008 and found out about the waste on our farm that we weren’t utilising and turned it into rich, free fertiliser.”

Today they make all their own compost, only occasionally purchasing back-up supplies. They use a biological spray mix with a lot of trace elements, and nitrogen and some sulphate ammonia if needed.

“We’re trying to look after the soil which looks after the plant which looks after the cows. It’s pretty simple,” Tim said.

“We’ve been doing it for 14 years and I don’t think we’ve put a blend out here in that time. I was a bit sceptical at the start but it’s like a big vegie garden — that’s how we treat it.”

They aim to use all home-grown feed, topped up with a bit of oaten or cereal hay for fibre.

“I try to feed them heavily in the bail for a balanced diet,” Tim said.

They have been successfully trialling summer and winter multispecies crops over the past two years, this year mixing the multispecies with rye-grass for magnificent results.

Although some parts of south-west Victoria have battled a green drought, Tim says the success of the crops could be attributed to the season.

“We’ve had a very dry season with no mud. I’ve never grown so much feed in winter in the whole time I’ve been farming.

“Spring was good, but it has dried off and I wouldn’t be surprised if we started feeding out

silage in the last week of November.”

Tim likes everything about farming but the main thing is growing fodder.

“That has always been my passion to look after the soil and grow as much grass as possible.”

After setting up the family-owned enterprise, Tim says they “went all guns blazing” with big launches in Melbourne and Sydney.

Getting a major retailer on board made the difference.

“Coles was first to give us a crack and we got on their shelves in November 2013,” Tim said.

However, that relationship recently came to an end.

“They have reshuffled things and a few local brands got dropped, including us,” Tim said.

“They took over a plant in NSW and made more room for their own products.

“It was disappointing but we were with them for 10-and-a-half years and they supported us through that. We were lucky to be there for that long.”

The partners could see the writing on the wall.

“They dropped one-litre products and then the low-fat,” Tim said.

“We could see we were getting squeezed so we worked hard over the past two years on building up cafes and independent supermarkets. We knew it was going to happen and had

been preparing for it.”

While the loss of Coles is a blow, Otway Pastures supplies many independent supermarkets and speciality stores in Melbourne and has a major distributor in Sydney.

The brand inspires loyalty.

“Once we get a cafe, they nearly always stick with us,” Tim said.

Sungold manufactures the Otway Pastures milk.

“They contract pack our milk and use any excess in their factory. It’s a good deal for both.”

As the farms have grown, so has milk production, meaning a lot of excess milk goes to Sungold.

“We’ve still got room to grow. It would be wonderful if more farmers came on board.

“We have such a good agreement at the moment that we’d be mad to leave it, but you never know what’s down the track. If we got too big, we’d have to look elsewhere or at building a factory.”

Although the excess milk is subject to price fluctuations, Tim and his partners continue to enjoy the independence of their own brand.

“Dairy farmers, like all farmers, are price takers, not price makers,” he said.

“This idea came about to try to be price makers, to try to get a bit extra by having your own product, and it has worked for us.”

Tim grew up on a family farm five minutes away from his current home. He and Sally bought that farm in 2002 from his parents and currently use it to run young stock and for hay and silage.

All up, the McGlade family owns about 325 hectares across three properties at Scotts Creek and lease about 100ha near Camperdown to grow more feed and run beef.

They milk about 380, mainly Holsteins, with a high stocking rate.

“There’s an area about 60 acres that we don’t milk off because it’s too far for the cows to walk,” Tim said. “We use it for young stock, dry cows and silage.”

The herd produces about 9500 litres per cow. The business partners stagger their split calving seasons to make sure they have an even milk flow.

Tim, 57, is also involved in a contracting business with son Jack, while son Billy manages Monk and Sons Contracting.

The contracting business came about because “the boys are mad on tractors” and were helping out early in their childhood.

The busy lifestyle continues for Tim and Sally, who also have daughters Amie and Hannah and 10 grandchildren.

Tim remains buoyant about the future.

“We’ve seen highs and lows but you always see that in farming.”

Tim McGlade and Lenny (and his toy cow).
The McGlades milk about 380 cows, mainly Holsteins, with a high stocking rate.
Multispecies pastures introduced in recent years have added to Tim McGlade’s home-grown feed.
Otway Pastures Milk started with five farming families. Three remain.
Apart from the farming enterprise, Tim and Jack run a contracting business.

Support reaches $500,000

DEMODAIRY FOUNDATION has now contributed more than $500,000 over the past six years to help develop a better future for the dairy industry in south-west Victoria.

The foundation recently reached the milestone as it continues to support the next generation of dairy farm and agribusiness workers to develop their skills and expand their experiences.

DemoDAIRY Foundation (DDF) was formed in 2018 after the former DemoDAIRY Cooperative near Terang was wound up, with funds from the sale of the property invested into a fund.

The good news is that grants and scholarships are expected to continue for several years.

DDF secretary Ian Teese said that over the six years to June 2024, the foundation provided scholarships and grants totalling $517,475. This does not include the Powell Legacy Fund grants that are also administered by DDF.

Mr Teese said DDF retained more than $500,000 in capital and would continue to support the local industry.

“The plan is to allocate this capital and future income from it to dairy related scholarships and grants over the next three to four years,” he said.

In 2024, DDF awarded scholarships worth up to $5000 per year each to three postgraduate students, three students studying degrees, and 11 certificate and diploma students.

Mr Teese said most previous scholarship recipients were now working on dairy farms or in agribusinesses supporting dairy farms.

One such student is Caitlin Martin, who is working as a graduate agronomist and in retail for AG Warehouse in Colac.

Ms Martin, who lives on her family dairy farm near Camperdown, said her DemoDAIRY Foundation scholarship helped as she completed her agribusiness degree at Longerenong College.

“The course gave me a great start to go out in the industry and now I’ve got a mentor agronomist to support me while I also help with sales in the store,” she said.

Other activities funded by DDF in 2024 include more than $25,000 to support two study tours to New Zealand by young dairy industry representatives, and a four-day training workshop for young dairy farmers on developing skills to work as second-in-charge on larger dairy farms.

In addition, DDF administers the Powell Legacy Fund, which has awarded 11 scholarships valued up to $10,000 each to students with links to the Port Campbell Surf Life Saving Club.

The Powell Legacy Foundation will use all the Federal Government grant allocated in memory of Ross and Andy Powell by June 2025, but the fund has some remaining money from other sources to support continuing scholarship holders for up to two more years.

DDF will hold its annual meeting on

DemoDAIRY Foundation scholarship recipient Caitlin Martin.

November 26 and is looking to fill two director vacancies.

DemoDAIRY Foundation is keen to sponsor more people in the farming industry.

More information can be found at https:// www.demodairy.com.au/scholarships/ or from DDF secretary Ian Teese on 0427 358987 or itag@bigpond.com

Grounds for Growth 2025

Soil and pasture biodiversity event

A first-ever for the Australian dairy industry, Grounds for Growth is focused on the benefits, challenges and practical farmer experiences of adopting multi-species pastures and other practices to improve soil health and function.

• Gain insights from local and international biodiversity experts.

• Hear from dairy farmers successfully using multi-species pastures and other practices.

• Visit biodiverse dairy farms in-person and by virtual tour for a showcase on the latest farm developments.

By joining this event, dairy farmers will be better equipped to make informed decisions about the right soil and pasture systems for their individual farming needs.

When: 4-6 March 2025

Where: Warrnambool, Victoria

For more information and to register interest, scan the QR code or visit dairyaustralia.com.au/groundsforgrowth.

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