Obstructs

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Profitable, despite challenges

THE 2020-21 season proved to be one of most profitable for Australia’s dairy industry, according to Dairy Australia’s Situation and Outlook Report, December 2021. Following a year of close to record returns, conditions remain supportive for farm profitability. Dairy Australia senior industry analyst, Sofia Omstedt, said last year proved to be one of the most profitable in recent times, as most dairy regions reported their highest average returns since 201314, according to the Dairy Farm Monitor Project. “Gippsland and Tasmania were the only exceptions, where returns were the second best over this period, while in Queensland and New South Wales return on assets was the highest in over decade,” she said. “This helped improve the health of many farm businesses and several factors suggest this momentum can be maintained.” Global dairy markets are contributing to this promising outlook, as commodity prices continue to rise. Global demand for dairy has improved as more countries re-emerge from lockdowns, at a time when supply is tight. Milk production has slowed in the main exporting regions this spring, which has resulted in dairy commodity prices increasing. Freight remains a challenge, and some importers have bought more products to ensure supply, which has further supported commodity values. Additionally, as most Australian COVID-19 restrictions ease, consumers are taking advantage of newfound freedoms, further buoying the domestic market. “Retail sales of yellow spreads and milk have stabilised from the panic-buying highs of 2020 but remain above 2019 levels, and shoppers are also spending more money through food service venues,” said Ms Omstedt. In Australia above average rain, storms and cold fronts have weighed on per-cow yields, caused flooding in some regions and disrupted harvest

The dairy industry is having one of its best seasons on record, but there are still challenges, including labour shortages and rain, storms and cold fronts disrupting and thwarting silage and hay making efforts.

proceedings. Silage-making efforts have been delayed in some regions and less hay is expected to be made this year. Nevertheless, with a significant amount of fodder left in store and plentiful pasture growth, demand remains subdued. Wet weather has also helped to replenish water storages, and the cost of temporary irrigation water has continued to fall. While conditions remain supportive for ongoing farm profitability this season, Australia’s milk pool is unlikely to grow. In addition to weather disruptions, labour shortages present ongoing challenges. As such, strong competition for milk is also expected to remain a feature of the processing landscape into the future. Dairy Australia’s quarterly situation and outlook reports summarise national milk production, key dairy consumption data and international market influences on pricing. The December 2021 report is available at www.

dairyaustralia.com.au/sando

Dairy farmer forum next year

A NEW date has been set for a forum to support dairy farmers looking for long term sustainable options to stay profitable and viable in the industry. The Regen Dairy Forum will take place on February 8 and 9 in Warragul, and will provide the opportunity for dairy farmers to meet with and listen first hand to dairy farmers who have transitioned to profitable and healthy dairy systems. The event, which will include a field trip to a dairy farm, will be hosted by agroecologist David Hardwick from Soil Land Food. It will focus on making a profit and pasture-based dairying, along with pasture, soil and animal health. “Dairying can be an expensive business, but there are farmers out there who have turned their systems around and are more profitable,” he said. “This takes so much stress out of a really demanding profession. “The Regen Dairy Forum will include guest speakers like Greg Bott from Bott Consulting, who has 40 years experience in the finance sector, many of them with Rabobank. “We also have Judi Earl coming along, who has extensive knowledge and experience in holistic planning and grazing management to regenerate farming landscapes.” The event will also provide the opportunity for an on-farm visit to meet a local dairy farmer who has successfully rebooted his dairy farm. Organisers say the forum will be a great networking event to meet other like-minded people in regenerative agriculture. “It can be really daunting thinking about changing the way you farm, which is why networking events such as this forum are really important,” Mr Hardwick said. “Farmers need all the support they can get when trying something new. “The good news is that there will be a number of great stories about dairy farming businesses who

Agro-ecologist David Hardwick, who will host a field trip to a Warragul dairy farm next year, discusses soil structure at a recent Biological Field Day in Brocklesby, New South Wales.

have successfully transformed their farming model. “For example our farm visit will be to a local dairy farm. “The farmer has tweaked his grazing management, amongst other things, which it has significantly improved the water infiltration and holding capacity of his soil. “This has many flow-on benefits,” Mr Hardwick said. The event has limited numbers. To secure a spot, book online through Humanitix by searching Regen Dairy Forum 2022, or by contacting Soil Land Food on david@soillandfood. com.au or 0409 646 565.

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Selling into all major selling centres and direct to abattoirs Free chemical user training for landholders

WELLINGTON Shire’s land managers have an opportunity to attend farm chemical user training free of charge this month. The training is on offer to primary producers and conservation group members as part of the Wellington Weeds and Pest Animal Control project. This project aims to help land managers reduce weeds and pest animals following drought. Two-day training courses will be held at Stradbroke Hall, Stradbroke, on December 20 and 21 and in Maffra on December 22 and 23. Training will be provided free of charge, but is limited to one person per property or farming business. To register or for more information, phone Bonnie Reeves on 0484 002 296.