Dairy News Australia - October 2018 - With West Vic Region by Dairy News Australia

OCTOBER, 2018 ISSUE 96

WEST VIC REGION

Terry Place on his Pomborneit farm.

Strong relationships drive farming success RICK BAYNE

AS PART of a big dairy farming family, Terry Place has always been good at dealing with people. Mr Place still works closely with his dairy farming brothers and his ability to develop a good relationship with staff led to him being

named the 2018 Great South West Dairy Awards Best Employer. His 485 ha farm is at Pomborneit near the Stony Rises, famous for its stone wall fences and rocky land. Mr Place has been on the farm for 25 years, starting from scratch and building a successful enterprise. His brothers Ray, Glen, Chris, Peter and Steven still farm in the region.

Surviving fire, low prices, bad seasons and a crook back, at 60 years old Mr Place has stepped back from milking but remains active in all other aspects of the farm. At the start, Mr Place and wife Jo ran the farm, with Jo also working as a nurse. “I was lucky enough to have a big family behind me,” he said. “Until my father passed away we worked

under one umbrella. About six years ago we broke it up but we still work together. If something goes wrong we all help. “When we came here there was nothing — six paddocks over 600 acres, no water, no tracks, no dairy — nothing. We had to put in everything, including the house.” Continued page 7 >

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DAIRY NEWS AUSTRALIA OCTOBER 2018

2 // WEST VIC REGION

Chair’s message

Tackling problems together IT’S ALWAYS a challenge to write an article six weeks ahead in the world of dairy, as it is a constantly moving beast. The season is changing so rapidly from 14 degrees one day to 22 the next. It was so wet under foot and now it has dried out and I suspect much harvesting has occurred already in the region. Home-grown feed is so super-important every year but more so than ever this one. With grain costs increasing to an unsustainable level and hay expected to be scarce, we are going to need

to grow and harvest as much of our own feed as possible. We have to take this opportunity to reduce our exposure to the fodder shortage and high feed prices, which are expected to continue for the next 12 to 18 months. We at WestVic Dairy are here to support your decisions and offer as much advice as you need. We have one-on-one support available, short podcasts and digital information, an increase in our awareness programs and collaboration with

our service providers to bring you the necessary and timely tools. We know farmers are time poor and we will make sure we offer other ways to get information and networking opportunities to you. Remember, I am a farmer too and the WestVic Board is acutely aware of the situation we are all in and are facing. Whatever we need to do, the board and staff will be aiming to deliver it. Let’s also keep an eye on our neighbours and mates and make sure we can signpost if they

need a hand. The staff at WestVic can help with any inquiry you have. Please — my one wish is don’t be too proud to ask for help! We are much stronger if we tackle this season together and make important business decisions early and look after our wellbeing. • Simone Renyard WestVic Dairy chair

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DAIRY NEWS AUSTRALIA OCTOBER 2018

WEST VIC REGION // 3

Dairy Dairy Farm Farm Monitor Monitor Project Project

2017-18 2017-18 South South West West Victoria Victoria Overview Overview

Cost crunch hurts farms Return on total assets andand milk price Return on total assets milk price

In 2017-18 only 18 of the 25 participants in the In 2017-18 only 18 of the 25 participants in the South West had a positive EBIT South West had a positive EBIT

The Dairy Farm Monitor Project provides industry and The Dairy Farm Monitor Project provides industry and government with timely, farm level data for targeted government with timely, farm level data for targeted strategy and decision making. strategy and decision making.

2016-17 2017-18 2016-17 2017-18

$261k $149k $261k Average $149kearnings before interest & tax

Encourages the application of whole farm analysis Average earnings before interest & tax Encourages the application of whole farm analysis principles on from Victorian farm businesses. “While over two-thirds of farmers predict their and tax (EBIT) the previous year, compared with the previous year (67 of the 75 $119k $9.00 halved $26k principles 12% $9.00 on Victorian farm businesses. $119k $26knetimprove, Averagewill farm income business returns many participants $259 000 per farm to $147 000 per farms), the range was narrower this year.” Victoria, as dairy farmers had to supplement their falling from $8.00 Average net farm income 10% $8.00 017-18 South West Victoria Overview In South West Victoria, 25 farms are analysed. 10% production with high-priced fodder. were concerned about seasonal variability in the Ms Waterman said all Victorian dairying farm. lower pasture South West Victoria, 25 farms are analysed. 2017-18 South West Victoria Overview In $7.00 4.2% 1.9% $7.00 4.2% 1.9% coming year. regions had challenging seasonal conditions Return on total assets fell from 4.2 per cent The 8% annual Dairy Farm Monitor Report has Average return on total assets ax 8% total assets and milk price $6.00 Return on Average return on totalissue assets $6.00 the average net farm income “Input costs were the major identified in 2017–18, with reduced rainfall comparedReturn to revealed that, despite an eight per cent jump in to 1.9 per cent, with In 2017-18 only 18 of the 25 participants in the on total assets and milk price Dairying in South West Victoria 6% 12% $9.00 $5.00 6% 4.3% -1.1% Dairying in South West Victoria In 2017-18 only 18 of thethe 25 participants in thein decreased homeReturn on total assets and milk price $5.00 for the coming 12 months, while milk price and previous year resulting to $24,000/farm and return on equity milkFarm priceMonitor to $5.80/kg MS, the steep rise inandalso halved Thethe Dairy Project provides industry South West had a positive EBIT -1.1% $8.00 12% 4.3% Average return onidentifi equityed as concerns 10% The Dairy Monitor Project provides industry and $4.00 South West had a positive EBIT climate variability were also 4% Farm grown feed as a percentage of ME (metabolisable to negative 1.1 per cent. feed costs is aff ecting dairy farmers’ bottom lines. government with timely, farm level data for targeted Average return on equity $4.00 12% 4% 2016-17 2017-18 $7.00 government with timely,followed farm level forhot targeted 8% 10% over the longer term.” $3.00 said the results energy) strategy and decision making. reflected the With a wet winter bydata a long, and$6.00 Ms Waterman 2016-17 2017-18 Approximately 1,280 farms consumed. in South $3.00 2% Approximately 1,280 farms in South $261k $149k strategy and 2%decision making. 6% West Victoria produce 2.18 Input costs continue to be a problem for the “As abillion result, purchased feed and agistment10% despite improved dry summer, dairy farmers struggled to maintain$5.00 challenging seasonal $2.00$2.00 conditions, $261k $149k Average earnings 8% West Victoria produce 2.18 billionbefore interest & tax Encourages the application of whole farm analysis Farm profitability was influenced byof surveyed farmers $4.00 milk prices. litres of milk per year, accounting 0% region, 24 per cent costs increased by 16 per cent across the state, their4%earnings, Average earnings before interest & tax 8% 0% Agriculture Victoria farm business Farm profitability waswith influenced by $1.00$1.00 litres of milk per year, accounting Encourages the application of whole farm analysis $3.00 principles on Victorian farm businesses. 6% $119k 22% of national$26k milk output from $1.55/kg MS in 2016–17 up to $1.80/kg MS pointing to that as their key concern, while milk “Return on total assets for (RoTA) remained specialist Claire Waterman revealed. 2% for 22% of national milk output -2% on $0.00 principles Victorian farm businesses. 6% $2.00 $119k -2% $0.00 $26k net farm income 06-07 07-08 08-09 10-11backwards, 11-12 11-12 12-13 12-13 13-14 14-15 14-15 15-16 16-17 16-17 17-18 price (22 per cent) and fodder and pasture (17 per in 2017–18.” constant at17-18 2.5 per cent across state onAverage “Southern Victoria went which 06-07 07-08 09-10 08-09 09-10 10-11 13-14 15-16 and the 34% of Victoria's. 0% 4% Average net farm income $1.00 and 34% of Victoria's. In South West Victoria, 25 farms are analysed. 4% 11% in milk price cent)increase were also concerns for south-west Victorian She said farmers’ expectations about their average, however, there is notable variation was a bit of a surprise,” she said. 4.2% 1.9% Return on total assets MilkMilk income (net)(net) -2% West $0.00 income In South Victoria, 25 are analysed. Return onfarms total assets 11% increase in milk price 4.2% Average 1.9% dairy farmers. business returns forassets the 2018–19 season were2% The 25 farms involved in the report saw profits between the regions,” she said. return on total to $5.80/kg MS 2% to $5.80/kg MS Return on total assets Milk income (net) Average return on total assets “While fewer decrease inprice, 2017–18, with earnings beforeavailability interest 0% seasonal conditions, of feed and airying inMilk South West Victoria Milk price, seasonal conditions, availability of feed and farms recorded a positive result cautious.

Dairy Dairy Farm Farm Monitor Monitor Project Project

07-08

08-09

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Milk price (net,$/kg MS, includes inflation)

17-18

4.3% -1.1% Dairying in South West Victoria Milk price, seasonal conditions, availability feedtotal and other factors affected return onoftotal assets. other factors affected return on assets. Physical farm characteristics 4.3% Average-1.1% return on equity Physical farm characteristics other factors affected return on total assets. Average return on equity SOUTH-WEST REGION Approximately 1,280 farms in South On average, participant farms in the South West PROFILE On average, participant farms in the South West Approximately 1,280 farms in South West Victoria produce 2.18 billion maintained stocking rate, increased herd size but maintained stocking rate, increased herd size but Future expectations for 2018-19 West Victoria produce 2.18 billion Future expectations for 2018-19 Future expectations for 2018-19 Farm litres of milk per year, accounting decreased milkprofitability production perwas cow.influenced by decreased milk profitability production perwas cow. influenced by Farm litres of milk per year, accounting for 22% of national milk output 3% 5% for 22% ofofnational milk output Only 72% of farmers expect business $ and 34% Victoria's. 3% 5% returns to improve and 34% of Victoria's. of farmers expect business 11% increase in milk price 72%72% of farmers expect business $ $ OnlyOnly 11% increase in milk price returns to improve returns improve to $5.80/kg MS Concerns as reported byto farmers: to $5.80/kg MS

2017-185%South West Victoria $ $ Overview

3% 3%Return

fodder

06-07

07-08

08-09

09-10

10-11

11-12

12-13

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rainfall,Return it was on a long, summer. Milk income (net) total dry assets rainfall, it was a long, dry summer. Milk price, seasonal conditions, availability of feed and Milk price, availability other factorsseasonal affectedconditions, return on total assets.of feed and Farms supplemented dairy herd dietassets. to other factors affected return on total Farms supplemented dairy herd diet to manage dry conditions. manage dry conditions. 71% in fodder purchases to $0.22/kg MS 71% in fodder purchases to $0.22/kg MS Future expectations forcosts 2018-19 18% in concentrate to $1.52/kg MS Future 2018-19 18%expectations in concentratefor costs to $1.52/kg MS Feed inventory by 2.5 times to Feed by 2.5 times to Only 72% of farmers expect business $0.17/kg MS. $ inventory $0.17/kg MS. Only 72% of farmers business $ returnsfodder to improve Farms utilised reservesexpect as pasture Farms utilised fodder reserves as pasture returns to improve availability by 1.3 t DM/ha. availability by 1.3 t DM/ha. Concerns as reported by farmers: Concerns as reported by farmers:

of rainfall received. Despite of rainfall received. Despite receiving of long termfeed average Milk solids sold Home grown Milk solids sold Home grown feed receiving of long term average ofdry metabolisable 502 rainfall, kg MS/cow it was a62% long, summer. of metabolisable 502 kg MS/cow rainfall, it was 62% a long, dry summer. energy consumed

Average herd size Average herd size 378 cows 378 cows

811 mm of rainfall received. Despite -2% mm of rainfall received. Despite 811 receiving 101% of long term average Return on total assets Milk income (net) receiving 101% of long term average

811 mm 24% Project 811 mm101% 24% Dairy Farm$Monitor Dairy Monitor Project 101% 2017-18Farm Gippsland Overview

22% farms in the 17%West 22% 17% On average, participant South On average, participant farms in theherd South West maintained stocking rate, increased size but MS maintainedmilk stocking rate, increased herd size but decreased production per cow. MS Milk price Pasture/ Input costs decreased milk production per cow.

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Physical farm characteristics Physical farm characteristics S

Return on total assets (%) Return on total assets (%)

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Return on total assets (%)on Return

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5% Acknowledgements FarmFarms Monitor supplemented Project is provided with funding support the Victorian Government and Dairy Australia. 17% 22% 24% on total assets and milk price -- Dairy dairy herdand diet to from Acknowledgements Dairy Farm Monitor Project is provided with funding and support from the Victorian Government and Dairy Australia. manage dry conditions. 22%& Resources, Dairy 17% 24% This project is delivered primarily through partnerships between the Department of Economic Development, Jobs, Transport Australia and service providers.

Return on total assets and milkThis price Despite challenging operating conditions, project is delivered primarily through partnerships between the Department of Economic Development, Jobs, Transport & Resources, Dairy Australia and service providers. manage dry conditions. 71% in fodder purchases to $0.22/kg MS

Pasture/ Inputinformation costs Further - Refer to the Dairy Farmin Monitor Project Victoria Annual Report 2017-18 for further information www.agriculture.vic.gov.au/dairyfarmmonitor In 2017-18 only 18 of the 25 -participants in EBIT the $9.00 Pasture/ Input costs 71% fodder purchases to $1.52/kg $0.22/kg MS Dairy Farm Monitor Project provides industry and Further information - $9.00 Refer to the Dairy FarminMonitor Project Victoria Annual Report 2017-18 for further(84%) information -had www.agriculture.vic.gov.au/dairyfarmmonitor 21 out of 25 farms a positive 18% concentrate costs to MS fodder © The State of Victoria Department of Economic Development, Jobs, Transport and Resources Melbourne 2018. Unless indicated otherwise, this work is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. fodder 18% in concentrate costs to $1.52/kg MS The Dairy Farm Monitor Project provides industry and South hadotherwise, a positive EBIT The of Victoria Department of Economic Development, Jobs, Transport and Resources MelbourneWest 2018. Unless indicated this work is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. government with timely, farmTo©Tolevel data forvisittargeted viewState a copy of this licence, creativecommons.org/licenses/by/3.0/au $8.00 $8.00 a copy of creativecommons.org/licenses/by/3.0/au 10%10% It isview a condition of this this licence, Creativevisit Commons Attribution 3.0 Licence that you must give credit to the original author who is the State of Victoria. Feed inventory by 2.5 times to government with timely, farm level data for targeted 2016-17 2017-18 in the Return on total assets and milk price It is a condition of this Creative Commons Attribution 3.0 Licence that you must give credit to the original author who is the State of 2016-17 Victoria. 2017-18 strategy and decision making. $7.00 he Return ontotal total assets andmilk milk price e Return on assets and price Feed inventory by 2.5 times to $0.17/kg MS. $7.00 ax 8%strategy Milk solids sold verage herd size Home grown feed and decision making. 12% $9.00 $0.17/kg MS. viders. 8% 12% Farms utilised fodder reserves as pasture $261k $6.00 $129k $144k Milk price Pasture/ Input cos 12% $9.00 Milkkgsolids sold 62% herd size Home grown feed .verage of metabolisable 502 MS/cow 378 cows $9.00 $149k $6.00 utilised Farms fodder reserves as pasture $8.00 Milk price Pasture/ Input cos availability by 1.3 t DM/ha. fodder 62% of metabolisable 502 kg MS/cow 378 cows nitor energy consumed Encourages the application of whole farm analysis 6% 10% $5.00 $8.00 Average earnings before interest & tax Average earnings before interest & tax $8.00 10% availability by 1.3 t DM/ha. fodder energy consumed Encourages the application of whole farm analysis $7.00 6% 10% tralia licence. $5.00 principles on Victorian farm businesses. $7.00 ence. $7.00 $4.00 interest & tax 8% 4% est tax $6.00 8% principles on Victorian farm businesses. $6.00 $35k $26k $50k st &&tax 8% $119k cknowledgements - Dairy Farm Monitor Project is provided with funding and support from the$6.00 Victorian Government and Dairy Australia.

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Concerns Constant 3% 3% as reported by farmers: 5%

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Advertising manager: James MacGibbon | 0409 103 745 nd service james.macgibbon@dairynewsaustralia.com.au providers.

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Source: Dairy Australia & Agriculture Victoria.

Farm profitability was influenced by Farm profitability was influenced by

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DAIRY NEWS AUSTRALIA OCTOBER 2018

4 // WEST VIC REGION

Applying farm philosophy to bigger dairy picture RICK BAYNE

AS A WestVic Dairy director, Matt Glennen is

Matt Glennen with employee Tom Stuart.

keen to ensure industry money is well spent — and he applies the same philosophy to his farm. At 30, Mr Glennen is investing in a long-term future in dairy. His farm at Dixie has a full range of up-to-date infrastructure and the addition of a new outpaddock will lead to significant herd expansion. He’s confident the new 180 ha paddock will be a good investment and he’s always on the lookout for more innovation and expansion. His parents John and Helen bought the farm in 1987. Since then it has more than doubled to the current 300 ha with the addition of three adjoining parcels of land. Mr Glennen has bought the 180 ha outpaddock 10 km away at Boorcan, taking possession in August. “A lot of our young stock had been going out on agistment for weight gain,” he said. “That was costing us around 25¢/kg MS so we’re converting that 25 cents into buying the

land and cover interest costs while getting the benefits for growing our own animals out and cutting more silage and hay.” It will also benefit the main farm. “Our calves used to stay here but with the new outpaddock we can free up another 30ha.” The Dixie Park Farm Trust, comprising Mr Glennen and his parents, milks about 500 mainly Holstein cows; with the new block that will increase to 560 and eventually 600, while retaining the stocking rate of 1.8 to 1.9 cows/ hectare. “It’s a show of confidence in the industry, but I’m lucky to have family backing,” he said. “There are a lot of first generation young farmers doing it tough and we’ve got to look after them and make sure they get through.” Mr Glennen joined the WestVic Dairy board about a year ago, keen to bring a young perspective and make sure farmer levies are channelled into the right areas to provide a positive return for farmers. He’s keen on the Focus Farm program. “People are interested in seeing the figures and what they can do on their farms. You have to

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DAIRY NEWS AUSTRALIA OCTOBER 2018

WEST VIC REGION // 5 be a businessman, you can’t just be a farmer. You have to drill in on your figures.” He applies that philosophy to his business; all developments and expansions during the past decade have been made with the bottom line in mind. Underground drainage has been a big investment on the wetter country when cashflow has allowed. “Depending on how wet it gets we are probably utilising 1.5–2 tonnes/ha more each year,” he said. They use DairyBase to compare to the top 25 per cent of dairy farm businesses in Australia. Cow manager tags were introduced this year for heat detection. “We were spending $400 to $500 on scratchies and paint; this system cost about $112 per cow,” he said. “With a lifespan of seven years, it’s a small investment each year. Data has shown that in-calf rates improve and the amount of silent heats that the system picks up, that we normally wouldn’t, should help a lot.” They store grain in three silos and use their own disc mill to crush the bought-in grain, but improvements to pastures are even more beneficial. “We crush our own wheat on farm and have a concentrate pellet,” Mr Glennen said. “This year I ran out of the concentrate pellet and thought I’d see how they go without it and production and cow health hasn’t changed. Once pasture quality declines it will be re-introduced. “With the tight year ahead, extensive summer crops will be sown to provide a cheaper protein source. At the moment we’re feeding about 5.2 kg wheat, and the rest of the

diet is grass.” Growth this year has been slow after a late autumn break. “We had to sow 95 per cent of the farm, a lot with Italians. We’ve used it before to top up paddocks but this year, because it’s such a late break, we needed to make sure we had feed and Italians were the quickest way.” The farm grew about eight tonnes of pasture last year and all summer feeding was from home-grown silage and from irrigated maize crops. The farm purchased 200 tonne wheaten hay and also cut a wheat/clover silage crop at Lake Bolac. This 140 tonne DM hasn’t been used and at a cost of $120/tonne DM was cheap feed. “We had 100 tonnes of dry matter put aside in a pit three years ago when we had excess,” Mr Glennen said. “Last year when we had such a good autumn break we fully fed on grass from early May so we didn’t have to feed the maize. “Now we’ve got one pit up our sleeve each year. We’ve got 300 tonnes of maize which we’ll be able to start feeding in March when we start calving.” In the past four years he cut grain feed from 2.2 tonnes back to 1.8. A new 55 rotary dairy with Easy Draft and Easy ID was built 11 years ago. The herd test data allows cows to be individually fed, saving an average 800 g to 1 kg each day. At the moment the average is 5.2 kg but the higher producers still get 6 kg. About 90 per cent of the herd calves in autumn with the rest in spring, but they plan to return to a March to May calving. “Spring calving isn’t as profitable,” Mr Glennen said. “We’re using sexed semen on our heifers

rewarded for John, Helen and Matt Glennen have been producing quality milk.

The Glennen family farm at Dixie.

Matt Glennen with employee Tom Stuart in front of the silos on the farm at Dixie.

About 90 per cent of the herd calves in autumn with the rest in spring, but the Glennens plan to return to a March to May calving.

and each year we’re getting better at growing out animals. We’re close to rearing 200 heifers and they seem to be holding pretty well in calf.” At the moment he is keeping everything because of the expansion but will consider selling heifers in the future. “In the past we haven’t had the area to breed extra calves. We’ll now probably AI the lot, and having used genomic testing the past three years will allow us to enter the local or export markets.” They cull any that can’t get in calf and those that have a third dose of mastitis, improving the quality of the herd. A new calf shed used for the past three seasons has opened opportunities with space for 150 calves, much better than the previous 50. “The old shed was full within two days,”

Mr Glennen said. “We had a salmonella outbreak four years ago and lost 25 because we had too many calves in a small area. That was when we made the call to get a new shed and it’s working really well.” The farm runs as a trust. Mr Glennen has one-third ownership and plans to go to full ownership. His parents John and Helen remain fully active on the farm and they are supported by full-time worker Tom Stuart and a regular milker. Mr Glennen is keen to expand where profitable. “At the moment 600 is a good cap from a workforce and infrastructure point of view and because most silage etcetera is done ourselves, any more we’d have to start a second dairy — but I’d be tempted if something came up.”

DAIRY NEWS AUSTRALIA OCTOBER 2018

6 // WEST VIC REGION

MANAGING A FODDER SHORTAGE HIGH DEMAND and successive years of low production has created a fodder supply shortage across Australia’s dairying regions, causing headaches for farmers sourcing feed. When pasture is limited and supplies of fodder, or more precisely long fibre, are reduced, the temptation can be to just go and buy whatever feed is available. However, carefully planning likely feed requirements and actively managing bought feed quality, supply and price risks is the best approach. Here are some tips for success as you progress through the five steps involved in managing a fodder shortage:

Step 1: Calculate your monthly feed demand and feed deficit A monthly feed budget ensures you know what quantities of each feed you need to buy to meet your milk production and liveweight targets. When doing your monthly feed budget, ensure it: ■ Is based on an accurate head count. ■ Uses realistic metabolisable energy (ME) requirements of your different classes of stock. ■ Includes good estimates of pasture and other home-grown feeds available. ■ Makes allowance for feed wastage based on your feeding system. If necessary, seek help from an adviser.

Step 2: Calculate your bought-in feed requirement for each month Consider immediate and longer term options for closing your feed gap, including: ■ Stimulating more growth of winter pasture and crops. ■ Feeding more grain/concentrates safely. ■ Extending your forage reserves with alternative fibre sources. ■ Drying off early and culling cows. Determine what feeds you can buy to fill each month’s feed deficit: ■ What are their dry matter, metabolisable energy (ME), crude protein (CP) and neutral detergent fibre (NDF) contents? ■ What are their effective fibre values? ■ How do they compare in terms of dollar value per unit energy and per unit protein? ■ What limits are there on the daily feeding rates of specific feeds? ■ What risks — for example, ruminal acidosis, mycotoxins (fungal toxins) and chemical residues — need to be managed when using specific feeds? Formulate diets for each class of stock — milkers, dry cows, yearlings and calves — that: ■ Are nutritionally balanced, meeting daily energy and protein requirements for target milk production/growth rates within animals’ appetite limits. ■ Will maintain sound rumen function.

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Make realistic allowances for feed wastage, based on your feeding system. Revise your feed budget when circumstances change (for example, available feeds and number of animals to be fed).

Step 4: Store feeds

Step 3: Buy feeds

Step 5: Feed diet to herd

Work out what you can afford to pay (break-even and target feed prices). When assessing a particular feed to buy, firstly check its physical quality, making sure that you have a representative sample. Things to look for: ■ An unusual appearance or consistency. ■ Material too wet or too dry. ■ Any contaminants or foreign materials, which may reduce nutritional value or cause digestive problems. ■ Signs of mould, which can increase the risk of mycotoxins (fungal toxins).

Consider your feed-out area/facility and feeding equipment. ■ Check there is adequate area, feed trough space and access to drinking water. ■ If feeding a partial mixed ration (PMR) using a mixer wagon, ensure the mix is not under or over processed. Use ration conditioners such as water, molasses or oil to reduce fines, sorting of feed and rejection or wastage of feed. ■ If you don’t have a mixer wagon and must feed two or three fibre sources separately, consider how you will best do this to regulate cows’ feed intakes, and avoid excess competition and wastage. ■ Offer cows the right amount of feed at the right time of the day — don’t overfill troughs. ■ Sequence feeds carefully during each 24–hour period. ■ Offer cows fresh, palatable, high quality feed at all times. Don’t put fresh feed on top of old feed. ■ Clean feed-out surfaces regularly. ■ Discard any spoiled/mouldy feed ingredients.

■

Increase certainty of feed supply and predictability of feed costs by confirming verbal agreements with feed suppliers by mail, fax or email (in writing). The key points you need to cover are: ■ Quantity. ■ Quality. ■ Price. ■ Delivery period. ■ Delivery point. ■ Payment terms. A pro-forma that covers all these key points is the Grain Trade Australia Contract Confirmation, which can be used for any feed, not just grain. To download a blank copy, go to: dairyaustralia.com.au/feedshortage

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• This is an excerpt from a Dairy Australia article called ‘Managing a fodder shortages’. For further information, go to the Dairy Australia website.

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WEST VIC REGION // 7

People skills key to sucess < Continued from page 1

After 10 years and expansion into neighbouring blocks, it was getting too big a job, prompting the Places to employ staff. “They were all locals; blokes I’d grown up with or younger ones I’d known,” he said. “They were all good; never had a hassle with anyone. They’d learn here then go on to other farms.” Now their son Grant and nephew Tim work on the farm, along with a part-time employee and weekend milker and other experts when needed. “We’ve gone up in staff numbers,” Mr Place said. “I’m still going to have some debt by the time I finish so I might as well start to enjoy myself and take some time off.” Grant, a builder by trade, was keen to return to the farm and Mr Place hopes he will be part of a succession plan. Grant has just bought a house nearby from his grandmother’s estate. With typical farmer modesty, Mr Place says he doesn’t do anything special and his fellow award nominees were just as deserving. He points to communication as the core to success as an employer. “You’ve got to have interaction both ways; every day we’ll sit down and talk about what’s happening.” A focus on safety, flexibility and learning things “the right way” round off the positive work environment. “We’ve all had our kids work on the farms and the last thing you want is to hurt them or anyone else, so we look out for safety and make sure everyone is taught the right way.” He’s also flexible with staff, making sure they get time off when needed, including weekends.

Mr Place continues to develop the farm, adding a new dairy five years ago and new crop options. “The 200 acres we’ve leased has been a really good block for us because I get young stock over there and use it for fodder conservation.” A new rotary dairy was built when the farm was settled, but it was replaced about five years ago. “There was nothing wrong with the dairy but the cows had grown too big,” he said. “It was an internal rotary, but when the cows started getting bigger they’d push and slip off a bit. We trashed everything inside the shed and started again, going from a 40 internal to a 44 external.” The other three dairies on the broader family farms are all 50s, but Mr Place wasn’t going to change the shed. The upgrade cost a bit more than $300 000 but he would have doubled that with a totally new shed. “The boys fly through miking, quicker than I ever did,” he said. They milk 410 cows, a figure reduced after the 2009 Black Saturday fires burnt part of the farm. “I tried to keep it a closed herd so didn’t go out and buy cattle. We lost a lot of topsoil so that knocked us around for a few years. We had to re-sow everything.” With family back-up — even though brothers Ray and Steve lost more — the farm recovered. Mr Place recently stood down after 18 years as Pomborneit Fire Brigade captain. He recalls the devastating 2009 fire. “It was tough when your wife says we need the truck here because the house is about to burn and I had to say we can’t get it there. Luckily other people heard and came down and saved the house.” However, he said the recent St Patrick’s Day fires were worse. “I couldn’t imagine how it would be losing a house, cattle or dairy; we were lucky,” he said. Mrs Place now also works three days a week in fire recovery. Mr Place remains open to new ideas. “You’ve got to read and listen and talk to your contemporaries and find out what they’re doing and what works for them.” The farm rears 200 to 250 calves each year, previously on a split system but now seasonal,

Terry Place was named Best Employer in the 2018 Great South West Dairy Awards.

The farm rears 200 to 250 calves each year, previously on a split system but now seasonal, starting in March.

starting in March. “Twice a year wasn’t succeeding the way I wanted,” he admitted. “Now we have a better in-calf rate and we can look after the calves better.” They also rear about 30 mop-up bulls a year, use them for four to six weeks and then sell them as another income source. In the past few years Mr Place has added red wheat in some of the rocky country and this year is trying pea and oats for the first time to get bulk feed. “After buying the land next door, I haven’t bought any feed for two years.” He believes the awards are good recognition

for the industry. “It’s not just about the individual person; it’s recognising that the whole industry has people willing to go that little bit extra.” Although at the mercy of world prices, Mr Place sees a bright future for Australian dairy. “There are going to be more people in the world; China’s dietary needs are changing and they don’t make any more land,” he said. “People bag authorities for different things but I’m glad AQIS is doing its job properly so our milk has a good name.”

g but Terry Place has stepped back from milkin farm. the of ts aspec other all in active remains

The 485ha farm is at Pomborneit near the Stony Rises, famous for its stone wall fences and rocky land.

DAIRY NEWS AUSTRALIA OCTOBER 2018

8 // WEST VIC REGION

Sustainability not just planting trees STEPHEN COOKE

SUSTAINABILITY IS not just about shelter

belts and planting trees, it’s about the financial stability of your business, according to Yandoit dairy farmer Robert Morrison. Mr Morrison, his wife Belinda and their son, Nick, won the Natural Resource and Sustainability Management Award at the recent Great South West Dairy Awards. The Morrisons, who farm at Yandoit near Daylesford, were recognised for ‘their excellent resource management practices, including extensive protection of remnant native vegetation and good nutrient management such as effective utilisation of limited amounts of dairy wastes and irrigation water’. The Morrison family first settled the land they currently farm in 1856, with Mr Morrison’s grandfather establishing the farm irrigation system. Although they have a water right of 102 Ml, they only use 20 Ml a year to water lucerne. “We have kept accurate records of the way the watertable behaves,” Mr Morrison said. “The irrigated lucerne keeps the herd going through summer and provides valuable protein in the diet. “With past seasons drier, hotter and windier, we need to look at growing more feed in spring to fill the gap. Instead of just watering lucerne,

we may start another couple of annual paddocks in the autumn. “Now more than ever we need to be right on the ball in terms of staying one step ahead of the game. We need seed and fertiliser ready to go to take full advantage of the rain events whenever they occur.” Mr Morrison said they could have wet summers and dry winters, with major rain events occurring at any time. “If we don’t get rain in spring, we need to look at summer crops and what will grow here.” The area has been described as marginal land (or “Merino sheep country”) by some. “It’s not, because it comes down to management,” Mr Morrison said. “You need to work within your parameters, including soil type and rainfall. We tissue test then apply trace elements after that.” The Morrisons have recently invested in a new hayshed and silo to help protect themselves against drought, but believe investing in soil Belinda, Robert and Nick Morrison. health is just as crucial. “You’re flying blind unless you soil test, and fertiliser is too expensive to apply where you don’t “To do their work justice requires correct soil need it,” Mr Morrison said. “Every time the tanker drives down the road, conditions and that’s up to us.” Lucerne is irrigated and sorghum can also be nutrients are lost to the farm and they have to be grown successfully, receiving some nutrients from returned to the soil.” Mr Morrison paid credit to the work achieved the effluent pond. Lucerne is cut for silage then strip grazed by plant breeders with drought-tolerant species.

through summer. The herd can be grazing lucerne until as late as June. The farm comprises 150 ha and they milk 110 cows off 41ha, producing 500 000 litres a year. Cows produce 30 tonnes of milk solids annually, with protein of 3–3.2 and fat of 4–4.5.

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DAIRY NEWS AUSTRALIA OCTOBER 2018

WEST VIC REGION // 9

A Gallagher Australia tumble wheel system is used for strip grazing.

Silage is pressed into bales with a wool press.

Cows use the new feedpad every day after milking. The bark slivers are turned into compost.

They begin calving in autumn and calve through until spring. They aim to calve 40 per cent in autumn, 20 per cent up to spring and 40 per cent in spring. “If a cow doesn’t get in calf, we don’t stress. We give high producing cows that don’t get in calf time,” Mr Morrison said. “We used to be autumn calvers but we don’t know when feed will come — autumn or spring — so it splits our risks.” He uses a Gallagher Australia tumble wheel system for strip grazing and back fencing, saying they are far superior to pig tail post fences and can be shifted in a matter of seconds. “This revolutionised our grazing management in so many ways and was a major leap forward. “We balance the green feed with roughage, giving cows the fibre they need. We grow good quality feed high in protein, and buy in roughage, which is local and cheap.” They direct drill the a large portion of the

farm with annuals. “Our management enables us to gain considerably more feed than we could have without management.” Pastures are predominantly annual clover and rye-grass, with some perennials. “We like the quantity of the annuals as we need to grow as much feed as possible in a short amount of time. We don’t have the rain of south-west Victoria or the irrigation of northern Victoria, although they can’t rely on that either at the moment. “We used to be in 24 inch (576 mm) rainfall and it’s probably 22 inches now (528 mm). In a dry year we might have two to three months of rain and we need to make every drop count.” The Morrisons have fenced off a creek running through their farm to restrict access from their herd, and planted a wildlife corridor of natives, including wattles and local species of eucalypts. The corridor runs through three farms, providing a haven for native wildlife,

including an endangered species of bird, and providing protection for their herd as well. Nick began work on the farm after school, keen to continue the family tradition. He receives 10 per cent of the milk cheque. “It’s important that he’s connected with the productivity of the place. It shouldn’t just be a wage or a promise that one day this will be his,” Mr Morrison said. A new effluent dam and feedpad were recently installed near the dairy, helping improve both the environmental footprint and profitability. The feedpad is lined with bark slivers, which capture the effluent. This is then pushed into a compost heap. Cows enter it after every milking all year round, feeding on silage and then fibre. Removing the silage feeding from paddocks has reduced pasture damage. “It’s been a good way of capturing nutrients and dispensing it further away from this general area,” Mr Morrison said.

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Five hectares of Moby barley is planted each year, over-sown with clover and rye-grass. Once this is ensiled, compost is spread on the paddocks, which are then sown back to pasture. Leftover compost is applied where soil tests dictate it will be most beneficial. Lucerne is also over-sown with chicory. “If lucerne is struggling we’re not afraid to drill into it to boost winter productivity.” Each year the Morrisons put aside the equivalent of a load of grain into a Farm Management Deposit. “I’m always worried about the perfect storm of low prices and poor seasons,” Mr Morrison said. “We haven’t had to draw on it yet. There’s only been one year where we haven’t turned a profit on the farm. “Some say a farm this size shouldn’t exist but we farm according to the environment in which we’re accustomed to.”

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10 // WEST VIC REGION

Make the most of spring HEADING INTO spring, it is crucial that we maximise pasture growth to ensure that we are able to produce and conserve as much high-quality forage as possible.

Setting paddock rotations maximise pasture quality

Through most of winter, pasture quantity was far more limiting on most farms than quality. Normally, in early spring, as pasture growth and leaf appearance rates increase, our focus needs to shift to managing for quality. Paddock rotation length generally needs to be shortened to help maintain grazing pressure

and ensure high quality pasture is available by reducing the rotation length. Whether soils are drier than average or still moist, pastures will be in a much better position to give greater yield responses if they have not been over-grazed. Try and maintain a rotation based on leaf

stage; the focus should be on grazing at the 2 to 2.5 leaf stage and leaving 4 cm to 6 cm residual pasture after grazing. This will ensure that pasture quality is maintained and shading at the base of the sward is minimised.

Locking up paddocks — how many and which ones? As spring progresses, it is important to only drop paddocks out of the rotation for conservation that are surplus to the herd’s requirements. In most years on a majority of farms, pasture growth will generally exceed herd requirements in early to mid-September. This year, however, depending on climatic conditions and management — for example, if your pasture has been continually over-grazed (that is, grazed before the two-leaf stage and the grazing residual is below 4 cm) or if pastures have been moisture stressed or too wet — the spring surplus will be unpredicatable and will likely have reduced yields. A simple strategy to determine how many paddocks to lock up is to graze paddocks in the same order each rotation, and if the next paddock is beyond the ideal leaf stage, skip it and drop it out of the rotation until it is ready to be cut for silage or hay. If pasture growth slows and you need more grazing area, use the ‘dropped out’ paddock with the least mature pasture (or, alternatively, increase the rate of supplements fed per day). Other things to consider when deciding which paddocks to lock up include: ■ How easy will it be to get machinery into and onto this paddock if it rains heavily? ■ Pasture composition — is it a rye-grass or rye-grass/clover mix with minimal weeds? ■ Is the paddock to be used for a follow-up summer crop and when does it need to be sown in relation to soil temperature, soil moisture and trafficability? ■ Is the paddock close to sources of water for irrigation? ■ Are potassium levels in soil excessive? Silage from these paddocks may be undesirable for feeding to transition cows.

Key messages • Maintain pasture quality by grazing at the 2 to 2.5 leaf stag e. • Keep post-grazing pasture residuals at 4 cm to 6 cm. • Lock up the true surplus for conservation and cut at canopy closure to ensure quality. • Consider using nitrogen (N) fertiliser at rates between 20 and 60 kg N/ha to improve pasture growth rates.

• This is an excerpt from a Dairy Australia article called ‘Making the most of spring feed’. Go to the Dairy Australia website for more information.

Freecall: 1800 039 047 www.genaust.com.au

DAIRY NEWS AUSTRALIA OCTOBER 2018

WEST VIC REGION // 11

Day showcases innovation AN INNOVATION Day has showcased the latest developments in agriculture across all commodities and provided hands-on workshops about how to implement these new ideas on-farm. About 120 people, including farmers and service providers, attended the day at Deakin University’s Warrnambool campus in September. It was a collaboration between WestVic Dairy and the Great South Coast Food and Fibre Action Plan. The workshops and presentations focused on current and future technology and innovations, such as the use of bio-digesters, virtual fencing, satellite imaging and much more. A highlight of the day for many people was speaker Mark Trigg, who owns a dairy farm at Bungaree, outside Ballarat. In his keynote session, ‘Turning Poo to Power’, Mr Trigg outlined his farm set-up, which is unusual for the Western District — his 350 cows are 100 per cent housed in a barn. In a partnership with Gekko Industries, the Trigg family has come up with a methane digester. The system consists of a pump and press, six shipping containers each containing a bladder, and a 35kVa generator. The waste is pumped into the first bladder, where it is broken down by bacteria, excreting methane. This methane is harvested and used to fuel a power generator. The waste continues to move from one shipping container bladder to the next, which each containing a different variety

of bacteria. About 18 days after the process starts, out comes an odourless, organic material which can then be used as a solid fertiliser. Meanwhile, the methane harvested is converted to electricity by the onsite generator. The generator supplies about half the power the dairy farm requires. In the future there could be a ‘stage two’ with extra containers added to the digester, with the potential of generating sufficient power to make the dairy self-sustaining. There is also the option to sell the organic fertiliser by-product for a premium. Other guest speakers included Food Agility CRC chair Anne Astin and Dairy Australia managing director David Nation. WestVic Dairy regional manager Lindsay Ferguson said it was great to be working so closely with the Food and Fibre Council to bring a

Elsi Neave and Shaun Martin, both from Colac.

first class conference to farmers from all sectors. “Agriculture is one of the most innovative industries and we are very proud to be able to showcase that,” Mr Ferguson said. “Our program really had something for everyone in agriculture, beef, wool, cropping and, of course, dairy.”

Jo Newton and Alem Gebre from Agriculture Victoria and Jason Hecker from Up and Running Technology Services, Koroit.

Jane Young of the Great South Coast Food and Fibre Council with farmers Mary Knight from Strathkellar and Kate Dorahy from Nareen.

Andrew Wood from Fonterra in Gippsland, Lionel Clayton from ACM and Jess Harmsworth from Coprice.

Bungaree dairy farmer Mark Trigg with Rural Bank’s Shane Dean.

Dairy farmers Mike Waite from Ecklin South and Giselle O’Keefe from Winslow.

Focus Farms Expression of Interest WestVic Dairy is seeking expressions of interest from dairy farmers across the WestVic Dairy region for their next Focus Farm, starting in January 2019.

The Focus Farm project focuses on farm businesses while integrating farm family needs. The project aims to improve proﬁtability through strengthened understanding of operational costs, maximising home grown feed and managing risks to the business.

The Focus Farm will operate over two years with funding provided by Dairy Australia and WestVic Dairy.

This is achieved by close monitoring of farm activities and expenditure and support from an experienced farm facilitator and support group made up of farmers and local service providers.

Expressions of Interest should be submitted by COB, Friday, 9th November. If you would like further information or an Expression of Interest form please contact Laurie Hickey on 0439 833 484. Expressions of Interest forms can be found at westvicdairy.com.au

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