Dairy Direct August 2014 by McPherson Media Group

Country News PUBLICATION

2014

OF T H AR E

•

ATIONAL RN

I NT E

Issue 13, August 2014

MILY FARM FA

Good results for good operators

» page 15

Winter Fair ticks boxes

» page 24

Opportunity knocks

» page 39

Automation equals happy cows — and people » page 36

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Writers Cathy Walker Alex Bathman Sophie Bruns

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Sales manager Jamie Gilbert jamie.gilbert@countrynews. com.au Published by Country News PO Box 204, Shepparton, Victoria 3632 (03) 5831 2312 www.countrynews.com.au A Country News publication

Country News Reaching Australia’s richest agricultural region

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Dairy Direct Ever feel like there’s nothing new in the world? That was my first thought when a press release promoting “a highly accessible ‘super food’ for all Australians” crossed the desk with news that “fresh milk helps provide many of the essential nutrients important for a healthy diet, specifically calcium and protein”. Gosh. Then I lightened up. If it takes a 6 m-high cow made of milk crates and a pop-up milk bar in downtown school holiday Sydney — complete with “meet the farmers” and “meet the celebrity vet” — then why not? Too bad they couldn’t transport the mud to go with her that most farmers would gladly donate this winter. The dairy industry has worked hard to bridge the gap with urban Australia and teach kids where milk comes from (and what it turns into) as well as encouraging the diversity of careers in the sector. Writing for Dairy Direct we meet inspiring farmers doing innovative things, older farmers ready to swap gumboots for thongs and giving thought to their succession planning or younger people starting out and having a go. Then there are the agronomists, Focus Farm leaders and all the ancillary roles that add to the success of dairy businesses. It’s up to everyone in the industry to spread the word. So if building big cows from milk crates helps spread the message that massages the bottom line, let’s count that as value-adding too. Cathy Walker — Country News journalist and Dairy Direct acting editor 2

AUGUST 2014

contents

Looking forward to spring

Doing Dairy Dairy news

Recent rain has been good for opening irrigation allocations but has also delivered potential for problems It’s hard to imagine that the cold starts and foggy days will soon be coming to a close. It’s been a good winter with better than average rainfall across the region. While spring isn’t too far away we need to continue to work to manage the wet conditions. Mastitis and lameness pose the most immediate health risks to livestock during the prolonged period of wet conditions. This is especially important as we start calving cows and bring fresh cows into the herd. Keeping incidents of mastitis and lameness as few as possible will give the herd the best opportunity to maximise its potential through the season. While we can’t control the weather, we can be taking measures to reduce risks. Calm and patient stockmanship reduces wear and injuries to softened hooves. It may be too wet to re-surface tracks but some preventative maintenance can reduce their deterioration. Simple measures like clearing or cutting drainage paths, removing sharp stones and filling in potholes can have a real impact.

With the irrigation system opening this month, allocations have been announced for all systems. As further rain occurs we can expect a strong season ahead. The cold weather hasn’t stopped farmers from getting out and about. Murray Dairy has recently held a number of great events, with Young Dairy Network ‘Milking Your Fortune’ sessions attracting up to 180 people across Cohuna, Numurkah and Tallangatta. The Udder Doctor session on mastitis had more than 100 people present. A large herd seminar with international export Greg Bethard attracted about 50 farmers from within the region and a number from outside the region. For those who couldn’t get there a video of both sessions will soon be available on the Murray Dairy website at www.murraydairy.com.au Murray Dairy has finished the season as the largest dairy region in Australia with a quarter of the nation’s milk production. That’s 4.3 billion dollars of economic activity regionally. Malcolm Holm Murray Dairy chairman

4–8

Faces of Devondale

Graduates bring new skills to industry

Vet column

Good results for the good operators

Sharper focus on the farm as a business

Wet weather problems are clear as mud

Huge investments in dairy

Drought forces change for the better

Andrews Focus Farm nears its goals

Winter Fair

All in the genes

Prepare now for calving season

Drench resistance studied

Shortening the odds

Unlocking the science of soil

Milking is a pleasure in new dairy

Opportunity knocks for young farmers

Taking the family farm to the next level

Planning to grow economy

Calendar of events

Smarter energy use can save dollars

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Doing Dairy

Sophie Bruns is a dairy farmer from Gunbower with a husband, two daughters and a mortgage.

with SOPHIE BRUNS

A month of mud and swearing A wet June makes even the simplest tasks feel impossible I think it is pretty fair to say that June would have to have been one of the most trying months we have had on the farm ever. I am calling it the month of mud (and swearing) and wasn’t it everywhere. Simple jobs like pushing the cows up became a supreme balancing act as one, you struggled for footing; two, you struggled to actually keep your boots on your feet; and three, you struggled not to yell and curse every time you set foot near the dairy. Getting the cows up was a rally car experience, especially when the cows chose to walk past the open gate and head toward the bush. Some serious ducking, weaving, swearing and mud-spinning on the fourwheeler resulted in a positive outcome although the same can’t be said for my new, expensive prescription sunglasses that remain lost in a puddle somewhere on the farm.

Milking in June hasn’t been a pleasant experience either — the monotony of washing teats and cups and then washing more teats and more cups added what seemed like hours to milking. It just went on and on and no matter how hard I tried, I always seemed to end up with cold wet sleeves even with gloves and an apron on, and I hate being wet and cold. I guess that is one of the unfortunate consequences of winter milking — a wet winter. And with three inches of rain in three weeks, it certainly was that. Throughout it all the cows have held up reasonably well. Our cell count remained in the premium milk band and other than a few foot-sore cows, I think we got off fairly lightly. The addition of an extra 52 ha into the rotation has helped us with production, up

more than 25 000 litres for June. Pugging of paddocks has been a bit of an issue but the only alternative is hay and we all know that doesn’t come for free. We did decide to dry a few of the spring calvers off a little bit earlier to reduce pugging and conserve grass. They have gone for a holiday on the sand hills at our run-off block. June was also the mammoth month of washing. The washing machine seemed to be operating 24/7 — jumpers, shirts, jeans and socks adorned the clothes horse in front of the fire, turning the lounge room into a Chinese laundry. I am pleased to say as I write this now, things have dried out immensely — I even heard my husband say we could do with a shower of rain, it was drying out too much.

dairy news Important year for Bega Tatura Milk Industries and Bega Cheese chairman Barry Irvin has described the Bega Cheese offer to acquire Warrnambool Cheese and Butter as “an important moment in the Australian dairy industry”. Writing to suppliers, Mr Irvin said: “As I reflect on the bid and the 2013–14 year, one of the things I am most proud of is the discipline our team displayed throughout the bidding process and the fact that operationally the company continued to remain focused and execute the key elements of our strategic plan. “It is very noteworthy and less well documented that in the past financial year Bega Cheese has successfully executed a number of significant business development projects. “In the 2013–14 year, Bega Cheese has built 4

AUGUST 2014

and commissioned a new infant formula blending and canning plant at Derrimut in Melbourne, expanded cheddar cheese production at Coburg, expanded lactoferrin production at Tatura, installed and commissioned whey processing capacity at Tatura and significantly progressed planning for the construction of new high value whey processing at our Lagoon Street facility in Bega.’’ TMI is the largest private label cream cheese and infant formula manufacturer in Australia and produces a variety of products including milk powders, cheese, cream

cheese, infant formula and milk protein concentrate. About 50 per cent of TMI’s products are exported, mostly to Asia and Europe, with export sales anticipated at $229 million in 2014. Annual milk payments add up to about $163 million per year.

dairy news Prices reflect international softening Murray Goulburn will pay an average price of $6/kg milk solids for the next season, which the company said was the highest milk price available to suppliers at the start of a financial year and is a seven per cent increase on last year’s opening price.

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Fonterra quoted an opening price for Victorian suppliers of about $5.80/kg and a closing range of between $6.10 and $6.30 while Warrnambool Cheese and Butter’s price was $5.86/kg milk solids.

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The prices are in line with Rabobank dairy analyst Sandy Chen’s expectations for a softer international dairy market.

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“In the short-term we do see dairy commodity prices will be easing,” Mr Chen said. Fonterra’s milk collection across Australia in the 12 months to June 30 reached the same level as the previous season at 120 million kg/milk solids, increasing in the second half due to more favourable market and pasture growth conditions along with new suppliers joining Fonterra.

Forum to attract industry investors Dairy Australia will host an Australian Dairy Farm Investment Forum in Melbourne on Monday, September 15. The forum will provide an opportunity for interested investors to understand the workings of the Australian industry, gain information on different production types and geographical regions, explore case study investment models, examine the industry’s financial performance and gain an overview of Australia’s regulatory and operating environment. Cost is $700 (early bird $600 by August 8) and registration closes on September 5. The event, at ZINC at Federation Square, will include: • A conference program with industry and government experts and specialists sharing their expertise, outlook and strategies, and showcasing Australian dairy industry innovation. • An exhibition area, providing further information and meeting opportunities. • A social program to liaise with participants in a relaxed and welcoming environment.

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dairy news

A prime investment Opening of new milk plant attracts Federal interest An $80 million spend earns you a pick of the political ranks. So Devondale Murray Goulburn went straight to the top when it invited Prime Minister Tony Abbott and Victorian Premier Denis Napthine to open its state-of-the-art milk processing plant in Melbourne. The Laverton North facility is the new home of Devondale’s daily pasteurised milk brand and the processing base for the co-op’s 10–year agreement to supply more than 400 Coles stores with chilled milk for the retailer’s private labels. Devondale Murray Goulburn managing director Gary Helou

said the plant was the first of its kind in the country and the most important dairy asset built in Australia in more than 15 years. “Our entry into daily pasteurised liquid milk is a natural strategic step for the co-operative,” Mr Helou said. Coles managing director John Durkan said Devondale Murray Goulburn would supply 1.3 million litres of milk each week in Victoria for Coles brand milk and Coles would also sell Devondale fresh milk in Victorian and NSW supermarkets for the first time. Mr Durkan said a milk contract of such length and volume was unprecedented for Coles.

Supplement impact on milk production made easy Dairy farmers could soon find it easier to maximise profits when grain feeding, thanks to new research by DEPI

The amount of milk produced by supplementary feeding can be accurately predicted.

AUGUST 2014

Murray Goulburn managing director Gary Helou and Prime Minister Tony Abbott at the opening of the Devondale Murray Goulburn milk plant at Laverton North.

DEPI’s farming systems economics research scientist Janna Heard is developing a tool to help farmers determine short-term milk responses and the amount of supplementary feed they should use to maximise milk profits. “During the 2012–13 season Australian dairy farmers fed an average of 1.6 tonnes of grain and concentrates to every cow on their farms,” Ms Heard said. “It is well-known feeding cows cereal supplements can increase milk production. However, it can be difficult to work out the profitmaximising amount of supplement to feed. “Day-to-day decisions on how much supplement to feed should largely depend on the cost of the supplement and the value of the milk it produces. “The idea is to feed lactating dairy cows to the point where the cost of the additional supplement is equal to the value of the additional milk produced so that the supplement generates more profit than it costs.” Ms Heard said her recent analysis of national and international feeding experiments had revealed the amount of milk produced by supplement feed could be accurately predicted by

easily observable farm characteristics. “The key to maximising profits is in the ability to accurately predict the amount of milk each kilogram of supplement will produce,” Ms Heard said. “Factors including the number of days cows have been lactating, how much pasture and supplement the cows are fed, their body condition score and the time of year are all valid indicators we can use to help predict the amount of milk each kilogram of supplement will produce. “The next step in the project is to build an easy-to-use tool farmers can use to reference these characteristics so they can easily identify the profitmaximising amount of supplement required. “At the end of this project farmers should be able to calculate how many kilograms of cereal supplement should be fed, so that the last kilogram adds to profit.” This research project is supported by Dairy Australia and the Department of Environment and Primary Industries Victoria and is part of an extensive program of research and development aimed at increasing the productivity and profitability of Victorian food and fibre producers.

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dairy news Honoured with OAM Dairy farmer’s commitment to industry is acknowledged Wyuna dairy farmer Terry Hehir has so passionately embraced his industry, he has seriously “infected” other people. Mr Hehir, named in the Queen’s Birthday Honours List with an Order of Australia Medal for services to the dairy industry, enjoys working with others who have commitment and passion. He has helped start numerous organisations, including several rural co-operatives. Mr Hehir sees the award as an acknowledgement for the industry that has brought him so many challenges and opportunities. He has served on dairy industry organisations continuously for about 30 years and played a key role in starting Waterpool, the Australian Dairy Conference and the Organic Dairy Farmers of Australia Co-operative.

Mr Hehir was awarded a Nuffield Scholarship to travel in 1994, studying environmental pressures on intensive dairying and the impact of the General Agreement on Tariffs and Trade. Terry Hehir, pictured with his wife Pauline at their Wyuna farm, was awarded an Order of Australia medal. Nuffield Australia chief executive Jim Gelch said Mr Hehir had gone on to contribute strongly to the organisation, farming operations. serving as chairman of Nuffield Victoria The Hehirs adopted biological farm from 1997 to 1999 and chairman of principles in 2000 and decided to certify Nuffield Australia from 2011 until last their production several years later. year. Mr Hehir is the inaugural chairman of the Mr Hehir and his wife Pauline have Organic Dairy Farmers of Australia regularly hosted overseas scholars at their Co-operative, and still supplies the co-op. Wyuna farm. He said his approach to agriculture had Their son Brendan has a commerce degree changed from just fertilising the plant, to and has decided to join the farm business, an emphasis on overall soil health. recently taking responsibility for the

Robots boost labour efficiency

Northern herds are tops

Labour and lifestyle benefits top the list of reasons for dairy farmers adopting robotic or automatic milking systems (AMS). A FutureDairy study found the labour efficiency on five Australian AMS farms was significantly better than conventional milking systems. Labour efficiency was measured in cows per full time equivalent (FTE) where 1 FTE is 50 hours. The five AMS farms studied by FutureDairy had labour efficiencies ranging from 100 to 273 cows/FTE. Conventional milking systems typically average about 99 cows/FTE (based on the Dairy Farm Monitor Project Victoria, 2012-13). FutureDairy collected information from each of the five farms for three days every month over a 12-month period. In addition, the farmers were surveyed to capture general information about their labour and time management, labour during the transition to AMS and the establishment of roles and routines. All five AMS farmers reported that automatic milking had a positive impact on their quality of life and that their expectations of the impact of the technology were successfully filled. Visit www.futuredairy.com.au to read the full set of case studies.

Daryl and Lani Hoey from Katunga have bred Australia’s top Jersey herd based on genetic merit for profit (Australian Profit Ranking).

AUGUST 2014

Northern Victorian dairy herds include Australia’s top Jersey and Brown Swiss herds and the second top Holstein herd in the country.

Restdown Pastoral at Rochester has the top Brown Swiss herd and Adrian and Jan Hogg of Adlejama Holsteins at Biggara via Corryong, have the second top Holstein herd. Michelle Axford from the Australian Dairy Herd Improvement Scheme said figures released in late July showed there were 10 dairy herds in Northern Victoria ranked in the top 10 for their breed based on genetic merit for profit. “This is a great achievement. Breeding quality dairy cows takes a focused effort over many years. The best progress is made by farmers who have a clear breeding objective to guide their bull selection decisions consistently over the years,” Mrs Axford said. Farmers who herd record can use their Genetic Progress Report to track changes in their herd’s genetic merit over time and the impact of breeding decisions. Genetic Progress Reports allow farmers to compare their herd’s genetic merit with the average and top 10 per cent of their breed in the country. It also includes trends for traits that influence profit such as production, longevity, type, fertility and mastitis. DHIS is an initiative of Australian Dairy Farmers that receives the majority of its funding from Dairy Australia through the Dairy Services Levy.

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Putting a face to the product: Gunbower farmer Roger Brereton with the milk carton that will make him a familiar face on breakfast tables across the state.

Faces of Devondale RTANT

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AUGUST 2014

New campaign has farmers gracing milk bottles supplying milk to Murray Northern district dairy Goulburn for more than 20 farmers are putting “me” years. into milk in a promotional campaign that sees them He is a third-generation farmer featuring on Devondale milk after his grandfather selected bottles. the land in 1894 and runs the farm with wife Elaine, son Kurt, Milk producers from Tongala, along with daughter-in-law Leitchville, Cohuna, Pinegrove Melanie. and Gunbower appear on the bottles, which hit supermarket “I have no plans to retire at this shelves in July. stage, I enjoy what I do,” Mr “A letter turned up in the mail Brereton said. saying that a photographer “We are happy to support the was coming to take my photo,” farmer-owned Murray Goulburn Gunbower dairy farmer Roger Co-operative.” Brereton said. Fellow dairy farmer Adam Sims Mr Brereton has 300 Jerseys on from Pinegrove said he had not a 90 ha farm. told many people yet about his “It’s on Gunbower Island and it’s claim to fame. a beautiful part of the country,” Mr Sims has been dairying Mr Brereton said. for about three years and was “Quite a few people have noticed involved in cropping before that. (the milk bottles). It’s caused a bit of excitement, it’s an honour. He said he expected a bit of friendly flak from friends in “All the grandchildren (Tayla, Melbourne about his milk bottle Macey and Jed) have been appearance. excited to see Pop on a milk bottle.” — Rhiannon Horrell / Riverine Mr Brereton, 72, has been Herald

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Graduates bring new skills to industry Scholarship program targets future of dairy manufacturing Within six weeks of completing Dairy Australia’s 2014 Dairy Manufacturing Scholarship Program, all four new graduates gained employment in the dairy manufacturing industry. Over nine weeks from February to April, Mathew Boyd, Ruby Smith, Rebekah Sullivan and Brooke Smith trained with some of Australia’s leading dairy manufacturers as part of the scholarship program. The participants spent up to five days at the factories of sponsoring companies — Murray Goulburn, Parmalat, Warrnambool Cheese and Butter, Fonterra, Lion Food and Drinks, Bega and Barossa Cheese — where they learned directly from dairy manufacturing experts. Rebekah Sullivan, who The program also included completed a Bachelor industry-specific training of Applied Science in through the National Centre Food Technology, gained for Dairy Education Australia employment as a technical and concluded at Dairy officer at Harry and Larry’s Australia in April, where the Ice Cream within two weeks graduates made impressive oral of completing the scholarship presentations on what they had program. learned from the program and Food Science and Nutrition their career aspirations to 40 graduate Ruby Smith is now industry guests. working as a quality assurance After completing the lab technician at Tatura Milk’s scholarship program, Food infant formula canning facility, Science and Technology based in Derrimut in Victoria. graduate Mathew Boyd, who “I was approached by the hails from a dairy farm at head of human resources for Kerang, applied for a yoghurt Bega/Tatura, who I had met maker position at Five:am, an at the Dairy Australia final organic yoghurt manufacturer presentation day,” Ms Smith based in Carrum Downs, said. Victoria. “He sent me an email describing “The position was posted on the job, and asked me to send Seek, I applied, and received through my resume if I was a job interview the next day. interested. Then the following week I started work,” Mr Boyd said. “The manufacturing scholarship is a great way to be introduced “The scholarship has given me and get to know all the aspects a good overview into the basic of the dairy industry and all and not so basic aspects of that it has to offer.” producing dairy products from milk. It is a once-in-a-lifetime Brooke Smith, who graduated opportunity to gain insight with a Bachelor of Food and into a great area of Australia’s Nutrition with a major in manufacturing industry. Food Science, is now working as a regulatory administration “I found that the dairy industry support officer at IMCD, a was quite a vast and very supportive industry to be in.” multinational company 12

AUGUST 2014

Keeping close to his dairy heritage, Mathew Boyd has made the move from a dairy farm at Kerang to become a yoghurt maker in south-east Melbourne.

involved in the marketing of “Dairy Australia would like food ingredients. to thank all the sponsoring companies who make a fantastic “The scholarship program is well contribution to the program worth doing and will take you by hosting the graduates and 10 steps above other graduates,” providing a great learning Ms Smith said. experience.” “I thoroughly enjoy regulatory work and learning about all Forty-two graduates applied the licences we must attain for the 2014 program and and protocols we must follow. the judging panel had a I enjoy being someone’s point challenging task of selecting of contact when they have the four winners based on their regulatory questions.” academic excellence, work The scholarship program, experience and passion for the which offers four new graduates dairy industry. and diploma holders an Applications for the 2015 opportunity to be trained in scholarship program are the relevant aspects of dairy expected to open in October. manufacturing, has been held To be eligible for the program, annually since 2012. While applicants must have a there is no guarantee of a job, science-based qualification the program has an 80 per cent such as engineering, agriculture, success rate in attracting and nutrition or science at a degree retaining new graduates in the or diploma level, as well as dairy industry. previous work experience in a Dairy Australia program food or related industry and a manager Mani Iyer said the passion for the dairy industry. scholarship program aimed to The program is funded and attract young people into the managed by Dairy Australia dairy industry. and strongly supported by “It is encouraging to see young the dairy manufacturing people who have a passion industry. Go to http://www. for dairy, gain rewarding dairyaustralia.com.au/ careers after completing Dairy Education-and-Careers/ Australia’s Manufacturing Scholarships-and-Awards-V2. Scholarship Program,” Dr Iyer aspx for more information. said.

animal health

A regular column from Rochester Vet Clinic

Lameness in dairy cows There’s no doubt this is a real winter and already people are sick of mud! Our practice has been very busy treating sore feet. We expect there will be more to come. At the moment the main problems we are seeing is soft soles with lots of bruising and ulcers sometimes leading to abscesses but it is a good time to review how to deal with lameness in cattle. You can’t control the weather but you can control the condition of your yards and lane ways. So ensure there is good drainage in areas such as gateways, around water troughs and on feedpads/calving pads. Think carefully about the type of gravel used on the tracks — is it likely to produce a lot of sharp stones? Look closely at the entry and exits to the dairy yard — cows will find it very uncomfortable if they are tracking stones and dirt from the tracks onto the concrete, especially if they have soft hooves. Clean out areas of high mud build-up regularly, such as feedpads and holding yards. And finally make provision for cows to be able to lie down in

clean areas for 11 to 14 hours per day. A useful short-term fix is spreading straw over laneways as it is very cheap, easy to do and the cows really appreciate the softer surface. Ensure good nutrition by feeding a balanced ration to include sufficient fibre for the amount of carbohydrate being fed. Avoid sudden changes in the diet and include buffers and/or ESKALIN in with concentrates. Use regular professional foot trimmers. Preventative trimming two or three times per lactation, starting three to six weeks prior to calving has been shown to markedly reduce the incidence of lameness. Treat lame cows promptly as early intervention greatly increases the chances of quick and complete recovery. Lame cows should be treated as special needs cows and trimmed more regularly. If you do have lame cows in the herd — don’t force them when walking, allow them to go at their own pace. Introduce heifers to concrete four to six weeks before entering the transition group to allow

them to adapt to a non-yielding surface. Also introduce the heifers to the dry group at seven months pregnant to learn social interaction with mature cows. Use footbaths when necessary. Either five per cent zinc or copper sulphate or 10 per cent formalin can be used but the design of the footbath is important to achieve good cover and penetration and the solution must be kept clean otherwise it just becomes slurry. Special mats can be purchased that apply the solution to the cow’s feet as they enter the shed or platform. This means that the cows are standing on a clean surface while the solution is soaking in to the hoof and gives it time to act. — Keith Fletcher Rochester Veterinary Clinic

AUGUST 2014

NTM

Nordic Total Merit Index VH Miracle

The NTM includes every trait that has an economic value to build longevity into your cow. For 30 Years Viking Genetics has been selecting for these traits yet still has leading production world wide! High producing, healthy and long lasting cows. That’s adding value every day!

Elly Geverink

VH Miracle gNTM +38 (Massey x Roumare x Calano)

VH Grafit dtr

By using sires with high NTM you will increase your milk production/total solids, have less mastitis, easier calvings and your cows will stay longer in your herd!

Alex Arkink

VH Grafit NTM +35 (Goldwyn x O-Man x BW Marshall)

VH Basten dtr

Look at these impressive results from a Swedish field study with 150 000 Holstein females from three age classes of recorded cows. This shows that NTM works in real life!

Alex Arkink

VH Basten NTM +26 (D Banker x Lambada x T Funkis)

HOL 1st lactation

NTM -10 or lower*

NTM +10 or higher

Milk, kg

11 % less

11 % more

Difficult calvings, %

32 % more

18 % less

Clinical mastitis, %

84 % more

57 % less

* +/-10 NTM units = +/- one standard deviation.

www.vikinggenetics.com.au · info@vikinggenetics.com.au · Office: (02) 6071 3007 Erik Thompson, Sales Manager 0417 219 156 · Wilco van Eck, Gippsland 0427 973 106 · Jan Andresen, western vic 0419 727 649 AUGUST 2014

Words and pictures: Geoff Adams

Good results

for the good operators

Seminar talks risk, profit and how to generate wealth Generating wealth and dairy farming are not mutually exclusive. Farm consultant Phil Shannon spoke to dairy farmers about risk taking, making a profit and wealth creation at a seminar in Shepparton run by Marcus Oldham College. He took the 25 participants through the steps of moving from farm employment, to management, share-farming and ownership. “We have industry data that shows that if you are good at it — and you have to be good at it — there are still people creating fantastic returns,” Mr Shannon said. “I think the biggest challenge over the last five or 10 years, particularly in the northern region, you have to be able to ride out the lows to take the highs like we are having this year. “The milk price will certainly make a difference this year. There will be a number It’s about what you do with the money you make, Phil Shannon told farms at a seminar of farmers who have grown a fair amount this winter. of wealth or are catching up on what they missed out on in previous years. “A lot of farmers are asset rich and cash poor. “What we do know is that the ones who are rates and a good milk price, which “If you operate a business and generate a profit, good at it are making good returns this year. together should contribute towards then you have a choice as to what to do with “Of course you will always run into people profits. There is now the challenge of that profit. You can buy a boat, a bigger wet farms. But that’s a good problem who are not good at it, or are too busy or tractor, pay a debt … That’s growing wealth, to have compared to five years ago. don’t understand it, and they may be the because you are owning more assets.” • Make the most of the conditions. The ones who are struggling,” Mr Shannon said. He said new entrants to dairy could re-invest “Particularly with the rainfall we have had current milk price and outlook is the money into cows. He said cows made helping build confidence and that has and knowing there is a fair bit of water in more cows, and at the moment the cow been seen in the results of the dairy the dams for next year, there should be good market was fantastic. farmer survey released recently. returns.” “Anyone who bought a cow 12 months ago Among the threats Mr Shannon has made a significant gain on the value of Suggestions for dairy farmers: sees are: those cows,” Mr Shannon said. • Milk a few more cows. In hindsight, • The milk price. It’s always a possible those farmers who took the opportunity “It’s just a matter of what you do with the threat because Australia is an exporter. to milk a few more cows would have operating profit you generate.” • Water security. It has to keep done quite well out of that, particularly He said some farmers had asset growth but raining to fill the dams to enable if they bought cows early last financial were not seeing any cash. farmers to grow cheap feed. year. They would have made an “Dairy is not different to any other business. • Securing labour. But it is an issue that operating profit out of each cow, but also There are people who are good at it, and farmers can have some control over. increased the capital value of that cow. people who are not good at it. Some farmers seem to be able to source • Take well informed risks. Farmers good labour and others see it just as a “There are so many resources out there to help should be risk aware, but generally people become better at farming. this autumn has seen fantastic growth problem, and not as an advantage. AUGUST 2014

Words and pictures: Sophie Bruns

Sharper focus on the farm as a

business

Project’s by-product is new discipline when it comes to planning and budgeting Throwing the farm open as a Focus Farm was a valuable experience on several levels, says Leigh ‘Skeeta’ Verhey.

It has been 12 months since Leigh ‘Skeeta’ Verhey and his partner Angela Turner finished their role as a northern Victorian Murray Dairy Focus Farm, but the skills and information they took from the experience continue to benefit their business today. The couple milks 300 split-calving cows on 170 ha, plus 100 ha leased at Koondrook. This is a long way from the 130 cows and the 56 ha farm they started out with in 2005. Mr Verhey firmly believes his business is in a far better position today than it would have been, and he credits that directly to the Focus Farm experience. “Our involvement in the Focus Farm project really helped us gauge where we are, what our strengths and weaknesses are, and how we can use that information to benefit our business,” Mr Verhey said. “The strong relationships we have created with people through the project has really helped and I have a pool of about 10 farmers who have strengths in different areas that I can ring any time. I call it ‘the nanna effect’ because they have seen our pain and they can offer support, help, information or guidance which is so very important.” He said looking at your business openly and honestly and sharing and taking advice from others was one of the keys to success. “Today we have a sound business structure and better relationships with our accountant, bank manager and farm adviser. We have 16

AUGUST 2014

regular conversations to plan ahead and as soon as the opening milk price and water allocation is announced, we sit down and make sure the budget works. “Our farm adviser is dedicated to the northern Victorian region and we can have good conversations with him about the season. The accountant helps us with physical and financial details and the bank manager knows there is going to be no nasty surprises because he is involved too. “The more data you have on your business the more you can test your performance year-in, year-out and define the areas which make you a profit and the ones that don’t.” Mr Verhey likes to run a pasture-based system with minimum supplementary feeding. “We operate a simple system to try to eliminate risk and always protect our margin. A pasture-based system helps us achieve that goal; we certainly have debt on land but not on hay trucks and we try to keep it that way as best we can.” When it comes to capital investment, Mr Verhey has also learnt a few lessons — including patience. “Before I would just rush out and buy something because we needed it and then worry about paying later but now every purchase is considered and has to fit in with the budget.” The dairy has always been a limiting factor on the farm in terms of efficiency and labour.

This season Mr Verhey has bought a secondhand 26 swing-over dairy with stall gates and is in the process of building it next to his old dairy. “I have learned to do things smarter. Purchasing a second-hand plant and building the dairy to a price takes the worry out of things because I know how much I have to budget. “I certainly think before I spend and every purchase is now well considered. In hindsight we probably tried to grow our business a little too quickly and things could have gone the other way for us, but in saying that I am happy with where we are sitting at the moment. “Northern Victoria is a great place to farm, land prices are relatively good and we can control our farming practices to a certain degree. “If you love what you are doing you always seem to find a way and I think the last decade of hardship has made us better farmers and managers of our natural resources.” While Mr Verhey still remains passionate about the future, he has some concerns about the next generation of dairy farmers. “Dairy farming is big money and a driver of good opportunities — we just need to upskill the next generation so we can continue to have young people on board.”

“

It’s certainly made life so much easier

“

Connections Project

Irrigation system is all about efficiency Ardmona farmer Fraser Pogue changed from a traditional flood irrigation system to centre pivots and sub-surface drip systems. That is why he was keen to have his delivery upgraded through Goulburn-Murray Water’s Connections Project. The Pogue family run 440ha of fully irrigated land at Ardmona, growing corn in the summer and wheat, barley, canola and faba beans in the winter. Three centre pivots irrigate about 150ha, a further 120ha is sub-surface drip irrigation and the remaining flood irrigated. For the full story about Fraser’s irrigation upgrade, visit www.gmwconnectionsproject.com.au AUGUST 2014

Wet weather problems are as clear as mud Extra vigilance needed as poor conditions heighten the risk of mastitis infection While mud is better than dust, wet conditions this winter have created another set of problems for dairy farmers. The increased rain can damage pasture with pugging, as cows’ feet tear up soil structure and increase the risk of mastitis infection. Tatura dairy farmer Mark Williams had to remind himself the mud and its misery will be short-term. “Although, when it gets this wet even light showers can keep things muddy until probably September,” Mr Williams said. “But it’s still 10 times better than a layer of dust.” DEPI dairy extension officer Brendan Ley

AUGUST 2014

then a layer of gravel and a lot of sand,” he said farmers were most frustrated by the waste of pasture and loss of productivity. said. “When pasture is too wet the cows are just “Ideally, a farmer should pre-plan and gravel not as excited to eat,” Mr Ley said. laneways in the summer because once they get really muddy, there are only Band-aid He said coping in extremely wet solutions.” conditions depended on a farm’s layout. He said farmers also needed to implement “Farmers can reduce pasture damage by a high level of hygiene to decrease the having a sacrifice area to graze cows on risk of mastitis. Mastitis can cost a farmer and off. But that can cause more trouble about $250 a case. with the risk of mastitis.” During the past five years, researchers have “They need to wash the teats down but it’s found traditional ‘old routines’ of stand-off just as important to dry the teats.” areas and bare paddocks increased bacteria Mr Ley said it was best to wash with a low exposure to teats in wet conditions. pressure water hose and dry with paper towel. Mr Ley said gravel-based feed pads were better options, but were more expensive. “If there is only dry mud, it’s ideal to just “They have a dirt base, good drainage and brush the mud off.”

Words: Alex Bathman Pictures: Julie Mercer

Four key steps for mastitis control in wet conditions: 1. Wash and dry all teats before cups go on. On wet or muddy days, every teat must be washed and dried with one paper towel per cow. If there is mud/manure on the teat surfaces, mastitis-causing bacteria are more likely to enter the teat during milking. If teats are left wet, cups can damage the teat ends. 2. Strip cows every day to detect, treat and isolate clinical cases. The earlier that clinical cases are treated and isolated, the higher the chance of cure, and the lower the chance of mastitis spreading. Make daily quarter stripping a routine at times of high risk. Always wear gloves. 3. Cover 100 per cent of teat skin on every teat with teat disinfectant. This is critical to mastitis control. One hundred per cent coverage with the correct concentration of disinfectant and emollient helps remove bacteria and heal teat damage. Use a ready-to-use product if water quality is uncertain. 4. Keep teats clean for an hour after the cows leave the shed. Set up feeding and other routines so cows don’t lie down soon after milking. Teat ends remain open for up to an hour after milking. If teats become dirty during this time, there is a high risk of bacteria entering the udder. Reduce muddy areas at the exit of the shed, lanes, holding and feeding areas.

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Words: Geoff Adams Pictures: Julie Mercer

Huge investments in dairy Stanhope factory extension an example of confidence in industry supply from northern Victoria. Fonterra is the latest Goulburn Valley manufacturing company to announce a “This is a demonstration that we are major development, with the completion investing in regional Victoria. We would not have invested here unless of a $10 million investment in milk we thought there was a future in processing capacity in northern Victoria. Stanhope,” he said. It follows the announcement by Murray Fonterra Australia managing director Goulburn of a major investment in the Judith Swales said the investment Cobram factory, the opening of a new UHT strengthened the company’s milk factory in Shepparton, and the start of construction of a $35 million oilseed processing presence in northern Victoria and was another step towards expansion at Numurkah. achieving its goal of having the most The Fonterra project created a new ricotta competitive and sustainable dairy cheese processing and packaging plant at supply chain in Australia. Stanhope and also upgraded other parts of the Stanhope, which employs about Ricotta makers Jess Condell and Georgia Ross at the factory. 130 full-time and part-time staff, new Fonterra Stanhope plant. The expenditure has cemented Stanhope’s also produces milk powder and role in Fonterra’s processing capacity, Fonterra Mr Donnison said there was a move “We need to make sure that we are translating Australia’s operations and ingredients director towards more value-added products rather than what the market returns for milk and getting Bruce Donnison believes. just bulk commodities. that back to farmers. It is about trying to swing Mr Donnison said Stanhope offered the “With the milk that we have today, it is about the wheel towards value-added components opportunity to extend on the current making right choices to get the best returns rather than just commodities.” from products,” Mr Donnison said. cheesemaking facility with a reliable milk

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Words: Geoff Adams Pictures: Julie Mercer

Drought forces change for the better A belief that there were still opportunities for farmers in dairying led Greg Ault to continue when others had pulled the pin on farm life Greg Ault reached a critical stage in his dairy career when he could have walked away from the industry. After years of drought the Rochester farmer was faced with the prospect of a farm permanently without water when the Campaspe irrigation system was closed down. Without access to groundwater, like some had opted for, the prospects looked grim. “We farmed for three years without water,” Mr Ault said. The NVIRP organisation, initially charged with modernising the Goulburn Murray Irrigation District, decided that the system was far too drought-prone and after consulting with irrigators decided it was time to close it. Some irrigators decided to retire and some, like Mr Ault, decided they wanted to persevere. ”We felt our opportunities were still here.”

New Murray Dairy board member Greg Ault.

floods, we’ve had to change. A couple of things impacted on his decision to keep going. One was a desire to “It’s more complex, but we also have more continue in farming (and dismiss a thought options, with supplements, fodder and to move to another region) and the choices over water. opportunity to purchase another property “There are a lot of new skills we have 7 km away that eventually was able to be acquired and we have to continue to learn.” connected to a private pipeline hooked up to the Goulburn irrigation system. He notes a recent survey has found a The 2400 Ml system now provides water high level of confidence among northern to a range of Rochester West properties, Victorian farmers and he said this level and the new farm, which includes a rotary of optimism was often linked to water dairy, also has access to about 800 Ml of availability and milk prices. groundwater. “We’ve had an opportunity to make gains The dry home block now grows crops and in this last season; we just need that to raises young stock for the 350–head dairy continue to further lift confidence.” herd. A long-term member of the UDV, Mr Ault Pursuing his long-term interest in research and development, Mr Ault has recently had been part of the former DC2 district been appointed to the board of Murray council and belonged to the Rochester branch before it became a VFF branch. Dairy after having been chair of the Industry Steering Group during his eight“Dairying has changed in the last 15 years. year membership. With the drought and more recently the

Lunchtime Research Sessions The next Murray Dairy Lunchtime Research Session will be held on Tuesday 16 September from 12 noon at DEPI Tatura, 255 Ferguson Road.

Visit www.murraydairy.com.au

Claire Waterman, Specialist Farm Business Economics, DEPI, will present the latest Dairy Farm Monitor Project data. The Dairy Farm Monitor Project provides profitability and productivity data for a range of farms across Victoria. RSVP (03) 5833 5312. Lunch will be provided. AUGUST 2014

Focus Farm

Andrews Focus Farm nears its goals Mr Andrews believes there is a strong link between herd breed and fertility.

Nick and Jane Andrews with their newborn son Josh.

Nick and Jane Andrews turned the final page of their open books during their final farm field day in June. The Katandra West dairy farmers welcomed their support group, industry professionals and other local farmers to reflect on the past two years as a Murray Dairy Focus Farm. Mr and Mrs Andrews’ focus farm facilitator Phil Shannon presented the day and discussed the challenges they faced and how they were overcome. The farm experienced a bad year in 2012–13 due to low milk prices and a long summer with a

The Andrews’ new dairy under construction.

Save the Date – Murray Dairy Business Forum The Murray Dairy Annual Business Forum will be held on Wednesday 11 February 2015 at the Rich River Golf Club, Moama. A strong line-up of industry speakers will prompt insightful discussions and debate throughout the course of the day. For more information visit www.murraydairy.com.au or call (03) 5833 5312.

AUGUST 2014

Visit www.murraydairy.com.au

Words: Alex Bathman Pictures: Blake Rosenberg

FOCUS FACTS PHYSICAL PERFORMANCE MEASURES Return on Capital (ex. appreciation) Return on Equity Equity %

2011/12 2011/12 2012/13 2012/13/14 Post Actual Estimate Actual Estimate expansion 16.7

8.5

5.7

23.3 5.2

22.3 63

8.6 65

4.8 65

30.5 3.4 69 <50

Murray Dairy Focus Farm facilitator Phil Shannon answers questions at Nick and Jane Andrews’ final field day.

return on investment of just 5.7 per cent — a decrease of 11 per cent. But Mr Shannon said the Andrews were looking at a brighter future with a predicted return of 23.3 per cent this year. “The idea of a Focus Farm isn’t to tell them what to do, but help them find achievable goals,” Mr Shannon said. “We can see how far they have gone by their own choices.” One of Mr and Mrs Andrews’ major decisions was investing in a new rotary dairy. Mr Shannon said upgrading a dairy was often seen as a “necessary evil” and almost impossible to justify with a return on investment. However the old dairy created many occupational health and safety issues and a new dairy would facilitate new technologies.

“It never looks good as a once-off,” Mr Shannon said. “But we’re talking about living the dream, not dreaming the dream.” The Andrews also increased their herd size from 200 Holsteins to a mixed herd of 300 Holsteins and Jerseys. “I do want to move towards a Jersey herd. I’m not here to tell others to make the move but for me it’s about the size of the animal and what you get back,” Mr Andrews said. Mr Shannon said this was another example of how Mr and Mrs Andrews made their business decisions. “The decision was really well planned and thought out and they have done nothing on a whim,” Mr Shannon said. Increasing the herd was a key goal at the beginning of the focus farm process in order

A number of farmers and industry professionals gathered like old friends to reflect on the past two years.

to justify extending the farm and employing a milker. The farm was extended from 95 ha to 129 ha by purchasing land across the road. The Andrews wanted to reduce their work load and enjoy some family time following the birth of their first child, Josh, in November. Mr Andrews said opening his gates to other farmers worked both ways and there were many benefits to having a Focus Farm. “Good criticism is a good driver for a business. It was a good opportunity to get 15 good farmers (the support group) together,” he said. “It has been good to bounce ideas off other farmers who had been through it all before and had more experience.”

What is the nutrient value of your effluent? Murray Dairy will be hosting sessions on understanding the value of effluent management and appropriate application rates.

Visit www.murraydairy.com.au

Monday 8 September 2014 – Lincoln and Louise George’s Farm 2430 Gundowring Rd, Upper Gundowring Tuesday 9 September 2014 – Brett and Chrisanya Findlay’s Farm 491 Upper Murray Rd, Towong Upper Sessions will run from 10.45am for an 11am start until 1pm with lunch provided. RSVP to: Murray Dairy email admin@murraydairy.com.au or call (03) 5833 5312 by Tuesday 26 August for catering purposes. Please bring your own chair and gumboots. AUGUST 2014

Assistant judge Ben Govett runs a careful eye over one of the entries.

Organisers (from left) Clare and Stu Modra, Adam Dee and Russ Robins were delighted with the success of the fair.

Words and pictures: Sophie Bruns

Winter Fair

Holstein breeders get another chance to show off their cattle

The first ever National Herd Development Winter Fair has been given the thumbs up by a happy group of organisers, sponsors and exhibitors. The fair, which was held at the Bendigo Exhibition Centre last month, appears to have achieved its goal of providing Holstein breeders with an opportunity to show off their autumn-calved cows. Organiser Stu Modra said he was happy with the way the fair worked out and, while there were a couple of issues to iron out before next year, everything ran according to plan. “Feedback from exhibitors and sponsors has been very positive and it appears we have achieved our goal of providing a quality event,” Mr Modra said. “The standard of cattle on show was very high and all the classes were well supported,

in particular the youth classes. One of our main aims was to focus on and encourage the youth and I think we really achieved that. “The facility was fantastic and having everyone and everything under one roof appeared to work. It was great to see people out walking amongst the exhibitors and their animals. “None of this would have been possible without the support of the North West subbranch, Holstein Australia, Bendigo council, Bendigo agricultural society, sponsors and exhibitors and the public who just came along to have a look on the day.” More than 200 animals from young calves through to mature cows in-milk were paraded around the ring in 22 classes, in front of international judge Mike Deaver from Sherona-Hill Farm in Wisconsin, United States, and associate judge Ben

Govett from Tandara Holsteins and Brown Swiss at Dingee in Victoria. Mr Govett said it was an honour to stand beside Mr Deaver and judge some of the top cattle in the country. “This has been the highlight of my judging career to date. Mike and I had a lot of discussion especially in the later in-milk classes, and the little things that I have learned not just in judging but in showing cattle too, will certainly be beneficial, after all Mike is a world renowned judge,” he said. “Mike was very impressed with the cattle on show and in particular the supreme champion, he felt very strongly that she could compete and compete well in any world show.” Mr Govett said the show was also a credit to the organisers.

Managing in Wet Conditions Dairy Australia has a range of fact sheets to help dairy farmers manage the health and welfare of cows during wet conditions. For information around topics such as foot health, lameness and mastitis visit www.murraydairy.com.au/wet-conditions or call Murray Dairy on (03) 5833 5312.

AUGUST 2014

Visit www.murraydairy.com.au

Kaitlyn Joyce from Lockington did a great job getting her reluctant heifer to move through the ring.

For Chris and Mary Gleeson, from Elm Banks at Crossley, the trip was certainly worthwhile, after six-year-old Elm Banks Polly Wolly was crowned Supreme Champion. Polly Wolly is sired by Gillette Final Cut out of the dam Elm Banks Dundee Polly, and is proof that anyone with a dream can breed a good cow.

“

Feedback from exhibitors and sponsors has been very positive and it appears we have achieved our goal of providing a quality Stu Modra event.

“

“Her cow family has come up through the appendix system on our farm and she is proof that a breeder can achieve that dream of developing their own good cow families — you don’t always have to buy in genetics,” Mr Gleeson said.

Russ Robins with daughters Kiara 9 (left) and Emily 12, took three heifers to the show.

He said the fair was well organised, the venue was top notch and the cows on show were of a very high standard. Glen Gordon from Gorbro Holsteins at Cohuna was delighted with the way his team performed, especially Heartland Goldwyn Patsy who took out Supreme Best Udder. “We are over the moon to compete against exhibitors of this calibre, and to come away with two class winners and best udder in the show really is a privilege,” Mr Gordon said. With their prefix featuring heavily in the winners’ list, Bluechip Genetics had another successful show with 14 class wins and the crown of Premier Breeder. Principal Dianna Malcolm said they were excited to see several animals, which had sold in their Blue Ribbon sale in June, go on and perform for their new owners. Shepparton residents Debbie Palmer and Peter Hurley purchased Bluechip Finalcut Marion at the recent sale, and she won Junior Champion Holstein and Supreme Junior Exhibit. Scott and Jade Sieben from Brindabella Holsteins at Torrumbarry finished with Reserve Junior in the open show and Champion in the youth show with a heifer they also purchased in the Bluechip sale, Bluechip Alexander Connie.

Youth show junior champion Lincoln Sieben with Bluechip Alexander Connie.

Supreme best udder winner Heartland Goldwyn Patsy, owned by Gorbro Holsteins at Cohuna.

Oliver, Sadie and Darby Jones from Patho enjoyed the face painting.

AUGUST 2014

All in the genes

Brothers’ interest in breeding quality cattle is providing extra income for the farm

AUGUST 2014

“

We conned Dad into buying 10 doses each of a couple of good bulls... and it has grown from there, really.

“

Investing in quality dairy genetics is beginning to pay off for Gorbro Holsteins. Brothers Drew and Glen Gordon along with their parents Ross and Janette milk 650 splitcalving cows near Cohuna and while their main source of income is milk, breeding quality cattle has opened up an additional income stream for the business. The boys have always had an interest in breeding quality cattle, which began in earnest after they attended a dairy youth camp in 1994. “We conned Dad into buying 10 doses each of a couple of bulls — Aerostar and Inspiration — and it has grown from there, really,” Drew said. ”In 1995 we registered our first cow and in

Drew Gordon

1997 registered the Gorbro prefix.” In the early days rather than taking the expensive option of buying in a large group

of registered cattle, the family decided to put their own cows through the appendix system and concentrate on breeding their ideal cow. There have, of course, been cattle purchases over the years but they have always been well considered. “We haven’t focused on purchasing the ‘showy’ type cows but more on cow families. If a cow is backed by five or six generations of VG or excellent in her pedigree then there is a pretty good chance you can breed a good cow from that,” Glen said. “Dad always said, ‘You are better off spreading your risk and buying a couple of cows rather than one big expensive one’ — and I guess we have listened to that over the years.” The brothers have embraced technological

Words and pictures: Sophie Bruns

“

You have to be willing to sell a good cow to bankroll what we do, and that can be hard sometimes...

“

Glen Gordon

advances and regularly flush their own cows and purchase embryos for implanting. Both these options have helped increase genetic merit in their herd. Glen said one of the downsides of breeding good cows was that they had to be sold. “You have to be willing to sell a good cow to bankroll what we do, and that can be hard sometimes, but it’s great to keep an eye on them and see how they progress.” As for the future, Glen and Drew are starting to get into genomics and they would love to one day see one of the great Australian cow families become a top bull overseas.

Erica Quinn from Macorna led Gorbro Stanley Cup Kassie to top honours in the Junior Champion Heifer class at International Dairy Week, and has the trophy to prove it. Co-owner Glen Gordon, holding the lead, was very pleased with the way the Gorbro Holsteins show team performed this year.

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AUGUST 2014

Prepare now for calving season Having your system at its best will mean less stress later for calves and farmers Before calving starts is the ideal time to start thinking about updating your calfrearing facilities. The last thing any farmer needs is to lose sleep over sick or dying calves in the middle of the calving season, when time and energy are in limited supply. There are multiple systems available for raising healthy heifer calves, and many have proven successful. Some farmers house calves in a purpose-built shed (or converted hay shed) until weaning. Others prefer to house calves for their first week of life before raising them in semi-sheltered paddock systems. The use of individual calf hutches is another alternative that gives reasonable success. Regardless of which system you choose, calves need to be raised in a clean and comfortable environment. Five general concepts that should be considered with the design of your calf-rearing system include:

Space Enough space is required for each calf this season, taking into consideration future potential growth in herd size. Allowance for shelter from wind, rain and sun needs consideration. Accessibility of facilities to handle calves and ease of cleaning is important, particularly in regard to sick calves and whether there will be a suitable quarantine area or isolation pen. Orientation, ventilation and drainage Ample ventilation and air circulation in the shelter or shed and the ability to minimise draughts, especially from ground level, is important. Satisfactory drainage requires the calf-raising area to be isolated from potential dairy run-off. Shelter areas in particular need to be located so that waste drains away unassisted or can be easily collected and removed.

Bedding The bedding materials of the shed or shelter areas should have good insulation abilities and provide general comfort. Risks of calves ingesting pathogens from chewing bedding need to be kept to a minimum. Feeding Sufficient space allowance is needed for all calves to have adequate access to feeders, especially milk feeding systems. These need to be located far away enough to ensure minimal contamination of the bedding area. Cleaning The focus of cleaning should be around the ability of hard surfaces in pens to be regularly cleaned and bedding to be easily replaced. A calf-rearing system that takes into consideration the above design and operating concepts, will greatly reduce the risk of having sick and dying calves. — Brendan Ley, DEPI Tatura

PRACTICAL CHECKLIST FOR THE CALF SHED • General repairs and maintenance completed • Breaks or wearing of parts of shelters, walls, fences, gates and feeding equipment repaired and/or replaced • Drainage points operational and unblocked • Bedding is cleaned/new and area sterilised • Good ventilation present and drafts minimised • Feeding system sterilised and clean • Milk feeding equipment sterilised and in good working order, and hay and concentrate feeding equipment working • Animal health equipment such as eartag applicators, needles and syringes, thermometer on hand. Is budding equipment clean and/or working? • Adequate supply of general suitable animal health products on hand, including broad-spectrum antibiotics, electrolytes, anti-diarrhoeal products, navel cord disinfectants, needles and syringes • Disinfectants such as bleach, iodine and lime, and batteries (if required) on hand • Personal protective supplies such as waterproof clothing and disposable gloves on hand.

AUGUST 2014

Worms still a major threat There is a lot of interest in current research on drench resistance in dairy cattle. This is not surprising because until very recently — despite increasing evidence since 2006 of its severity among cattle — the emphasis of concern has been on sheep where it has historically been a major problem. I recently caught up with private veterinarian Stephanie Bullen to find out more about relevant research she is currently conducting in the Macalister Irrigation District (MID) through University of Melbourne. Stephanie’s research is investigating the level of dairy cattle drench resistance on MID dairy farms. The following interview excerpt highlights information that farmers and service providers involved in the dairy industry have been keen to know more about. Why is drench resistance in dairy cattle considered to be more of a problem these days? Compared to sheep, cattle are relatively resistant to the effects of worms after 12 to 15 months of age. Ewes die if they are not drenched, whereas death due to worms is much less common in cattle. However, there is potentially a major threat to current dairy heifer rearing systems that rely heavily on drenching and limited land availability

due to bovine Johnes disease control; often resulting in high exposure to parasites on heavily contaminated pastures. What were the key aims of this dairy cattle drench resistance research in the MID? As there had been no research specifically investigating levels of drench resistance on dairy farms despite relevant cases of drench failure being widely documented, this research focused on the level of resistance to three main classes of drench on 20 dairy farms in the MID. Classified by their mechanism of action, the three drench types tested are more commonly known as: • ‘Mectins’ (e.g. Ivomec, Cydectin, Dectomax) —all pour-ons or injections • White drenches (e.g. Panacur, Flukazole) — oral • Clear drenches (e.g. Nilverm, Nilzan) — oral This drench resistance testing in the MID was carried out on dairy heifers from May 2013 to April 2014. Groups of 60 heifers per farm were included in the trial. Heifers were allocated one of four treatments: (1) no treatment — control; (2) ‘mectin’; (3) white drench; and 4) clear drench. Faeces were collected from all calves 10 to 14 days after drenching; resistance was deemed present in samples with more than five per cent worms

remaining following treatment when compared to the control group — treatment (1). At what point is the research now, and what have been the major findings to date? Data collection on all farms has been completed. All 20 farms had resistance to at least one drench class, the white drenches being the most common (about four in five farms). Findings were variable between farms with no obvious pattern, highlighting that it is not as straightforward as predicting whether a farm will have resistance or not based on current management practices. Resistance is virtually a permanent phenomenon so may be present from practices conducted 10 to 15 years ago. As a specific example in this research, one farm had pronounced white drench resistance present despite the current owners not having used any white drenches for the past eight to 10 years. What is planned for the next phase? The next phase of this research is a weight gain trial which will investigate the production cost of drench resistance (i.e. using drenches that are less than fully effective); results should be obtained by mid-2015. — Dr Maria Rose, DEPI

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Dairy Australia has developed a series of videos demonstrating how to correctly manage downer cows to help farmers with this challenging area of animal health. The six short videos cover several aspects of downer cow management, providing detailed veterinary advice and practical tips on how to achieve the best health and welfare outcomes. The videos, presented by Phil Poulton — a veterinarian and leading authority in downer cow management in Australia — cover the areas of: • assessment • housing • moving • rolling • lifting • caring. Dairy Australia’s animal health and fertility program manager Kathryn Davis managed the development of the videos. “Recent Australian research has clearly demonstrated the need for farmers to make early and informed decisions in relation to managing downer cows,” Dr Davis said. “The first decision that must be made

is whether to nurse the downer cow or euthanase her. “Of the 218 cows in the Australian study, only 32 per cent were ever able to walk again. Obviously the initial assessment of the severity and cause of the recumbency must be figured into the decision-making process but the odds are not favourable in most cases. “One of the new videos focuses specifically on this critical period and helps farmers with determining the cow’s condition and the possible reasons why she is down. “If a decision is made to then nurse the cow, the way she is nursed directly impacts on her chances of making a full recovery. Nearly 90 per cent of downer cows which were cared for in periods up to 14 days did not recover due to extra problems arising during the nursing period. “Even with the best intentions, poor nursing care dramatically decreases the likelihood of the cow recovering. The new video clips were developed to provide farmers with easy access to information on how to correctly house, move, feed and care for downer cows to avoid these problems and achieve the best outcomes.” Dr Davis said the videos had been

developed in an easy-to-understand style that reflected the common practical conversations between farmers and their vet, and could be readily viewed on a smartphone, tablet device or computer. “Vets are commonly asked by farmers, ‘What is the likelihood of this cow getting up?’. The research undertaken by Dr Poulton indicates that the overall chances of recovery are not great, so if the farmer is not able to provide good nursing, a decision to euthanase the cow should be made quickly. “If you wish to nurse a downer cow, take a look at these videos and then develop a simple management plan. Bringing a cow into a dedicated nursing environment versus managing her out in a paddock can increase her chances of survival by 30 per cent.” The videos show how simple it is to create a suitable nursing environment and provide tips on how to safely move and lift a downer cow. Dr Davis said all these techniques would improve cow welfare and achieve better outcomes for downer cows. To view the new videos see www.dairyaustralia.com.au

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Unlocking the science of soil Research increases understanding of phosphorus use Victorian scientists researching how much fertiliser is needed to achieve the best crop and pasture production have taken their findings to the world. DEPI principal dairy scientist Joe Jacobs said the researchers were successfully using metabolomics to better understand soil processes that affect phosphorus availability. The research, by Michael Heaven, has been recognised by the Australasian Soil and Plant Analysis Council with the awarding of the Plant Nutrition Award. Dr Heaven used the grant money to present the findings to an international audience at the 20th World Congress of Soil Science in South Korea recently.

Dr Jacobs said metabolomics was a combination of advanced analytical chemistry and bioinformatics. “Our scientists are using metabolomics to analyse soils and the factors affecting the amount of organic phosphorus available to crops and pastures,” he said. “Organic phosphorus is usually locked away in soils, with farmers requiring phosphorus primarily from inorganic fertiliser to grow pasture. In the future we hope to gain better access to organic phosphorus on farms by targeting management practices to particular soil types and conditions. “Fertiliser is a significant on-farm expense and this research could lead to the

development of tools to assess whether or not individual farms will benefit from more or less fertiliser and has the potential to produce savings for farmers.” Dr Heaven said using metabolomics for soil analysis allowed them to better understand how organic phosphorus compounds called phospholipids were made available to plants through cultivation, pasture types or fertiliser application. While in South Korea, Dr Heaven also studied other innovative research techniques that could contribute to addressing DEPI’s research goals of improving soil productivity.

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Pictures: Photo 8 Photography Milker Ivan Wild on duty in the Grant family’s Tongala dairy, which has a 26-a-side herringbone layout.

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Automation and new software improve efficiency and herd management Ryan Grant can’t decide what he likes the The P2100 has a good track record of robust and reliable performance overseas best about his new dairy — the improved cow flow that makes it a pleasure to milk, but the Grants’ dairy was the first complete installation on an Australian dairy farm. or the automation and herd software When they began milking in the new dairy system that have transformed the way he last November, Ryan was impressed with manages herd nutrition and health. how quickly cows and people settled into Ryan and his wife Kristy farm with Ryan’s father Garry at Tongala. With a split-calving the new dairy. “With any new dairy you expect an herd, they have about 300 milkers most of adjustment period which can be quite the year. stressful. The heifers were comfortable in The Grants had long outgrown their old the dairy from about the second milking. dairy that was suited to milk up to 200 cows. With 300 milkers, they were spending Within two weeks everything was running very smoothly and we’d roughly halved our six to eight hours a day on milking-related milking time,” Ryan said. tasks. So they replaced it with a state-of-the “The cow flow is incredible. We can milk art automated herringbone with rapid exit. 300 cows and never leave the pit. I enjoy The Grants, who wanted to automate as milking again. In the old dairy it had much as they could, decided on a DeLaval become a long, arduous task.” P2100 dairy with 52 units. Their local The Grants’ dairy includes automatic cup dealer, GV Dairy Supplies, was able to removers, electronic cow identification and do the whole job — from site preparation, auto-drafting, milk meters, conductivity concreting and shed construction through meters, individual feeding and automatic to the installation of equipment and software. washing system and yard washing.

Ryan puts the cow flow down to the combination of the rapid exit design and individual stall gates that give each cow its own space in the dairy. While the automation features provide added convenience during milking, Ryan has discovered the herd management software that drives the system — ALPRO — is a powerful management tool. Ryan and Garry both use ALPRO, spending about 15 to 20 minutes a day on the computer. “ALPRO allows us to plan ahead,” Ryan said. “For example, we can set cows to be drafted after the next milking — say for AI or a vet check. Once it’s in the system, the rest is automatic and we don’t have to think about it again. “The same goes for antibiotic treatments. Once the treatment is entered into ALPRO, it won’t let us put the cups on the cow until the withholding period is up.” The Grants’ bulk milk cell count has

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Ryan Grant has embraced the technology that came with his new dairy.

Ryan Grant says the cow flow is “incredible” in the rapid-exit dairy.

Ryan Grant, Garry Grant and Paul McGrath from GV Dairy Supplies, which installed the Grants’ new dairy.

The DeLaval P2100 dairy on the Grants’ farm was an Australian-first installation.

Reports generated by the ALLPRO system mean cows’ diets can be adjusted individually.

a day; and then a couple of groups of late dropped significantly in the new dairy. They Ryan said. “We can use that to adjust the lactation cows that are receiving less feed amount of concentrate individual cows put this down to help from their vet plus each week as they head towards drying off. get at the dairy. In late lactation, we use a the combination of a clean, comfortable combination of production and calving date “The individual feeding system allows us to dairy, the automatic cup removers and the to decide when to dry off individual cows, conductivity and milk meters that enable get much better value from our investment whereas in the past we just had a blanket earlier detection and treatment of clinical in concentrates because we can direct it to dry-off date.” mastitis. the cows that will use it to produce more milk.” Ryan is pleased with the individual feeding The milk meters allow the Grants to system. With the old dairy, all cows got monitor trends in individual cow or herd After eight months in the new dairy, Ryan is the same allocation of feed, regardless of production and the conductivity meters still discovering new ways to use ALPRO as provide early indicators of potential mastitis whether they were in the autumn or spring a management tool. calving group. infections. “ALPRO was really easy to get the hang of, “At the moment I have about seven different “ALPRO provides heaps of reports. I but every day I discover a new report, or a groups set up in ALPRO: early lactation particularly like the seven-day rolling new way to use it in our operation. It is a cows who get about 8 kg of concentrates average production of individual cows,” fabulous management tool.”

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AUGUST 2014

Opportunity knocks for young farmers

Sharefarming offers the chance of a bright future for ambitious couple

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The Pedleys have moved to northern Victoria to expand their dairying future. Reannan and Chris — with their children Jaxon 4, Addison 2 and baby Elodie, 4 months — are more than happy with their decision.

Words and pictures: Sophie Bruns

Young dairy farmers Chris and Reannan Pedley see nothing but opportunity ahead of them after they moved to northern Victoria to further their dairying careers 12 months ago. In their mid-20s, the Pedleys have entered into a sharefarming partnership with Stuart and Louise Murray from Ballendella. While it is not a ‘traditional’ arrangement, the couple is more than happy with the way things are working out. The partnership offers the couple and the business huge growth potential, which is exactly what the Pedleys are looking for. “We were farming in the Barossa and to be honest we just couldn’t see a future there,” Mrs Pedley said. “Milk prices weren’t sustainable, access to water was a big issue and we were very reliant on rainfall. Farmers were really struggling and either selling up or going into administration so we knew we needed to look somewhere else.” which includes corn pit silage. The business to get along with and we have a really The couple looked at a range of farms across buys in all of its grain requirements. good working environment, which is so northern Victoria and Tasmania (where Mr important,” Mr Pedley said. Pedley is originally from). When it came time to work out the sharefarming agreement, the Pedleys enlisted “Our sharefarming arrangement may be “We looked at a few different farms in the the help of Mr Pedley’s parents — who a little unusual but it is a good way of area but we felt this farm had the most have been involved in the dairy industry for getting young people into the industry growth potential. We wanted to move to a many years — and Fonterra field officer Paul and fortunately for us there is huge growth farm that had a bright future and a longPickford. potential to expand.” term one,” Mr Pedley said. “We had to work out what was fair and what The Pedleys are keen to increase their The farm milks 500 cows year-round on 526 ha. The cows calve seven times a year and wasn’t. The Murrays hadn’t had a sharefarmer knowledge and like to attend as many before and we hadn’t been one before either information days as they can. They often are joined for two weeks, pregnancy tested so it was just a matter of working out the find themselves the youngest people there. in five weeks and then if not in calf, are logistics,” Mr Pedley said. re-joined. The program runs all year round They have four children: Lachlan, six, Jaxon, except for December. Calf rearing is a yearThe Pedleys are responsible for most of the four, Addison, two and Elodie, four months. round experience. hands-on labour while the Murrays look after They believe the farm is a great place to bring the ‘business’ side of things. They receive a them up. They share the milking duties so This season, herd numbers will be up to someone is always at home with the children. about 600 and within two years will be about share of the milk income and are responsible for purchasing some of the machinery 700. “This is Chris’ dream but I enjoy dairying too. requirements. Their agreement also provides Moving here has been great. It works well The 50–bail rotary dairy is equipped with them with a certain number of cows each for me: I can work and have my children too an Ezi dairy computer system and automatic year and they keep all the young stock from and I don’t have to worry about day care,” drafting. The herd averages about 27 to 28 their cows. Mrs Pedley said. litres although with fresh cows continually The Pedleys employ a couple of labour units “The lifestyle of dairying is very appealing coming in and dry cows going out, it is a bit and so do the Murrays. hard to give an exact figure. and you wouldn’t want to bring a young The farm is largely self-sufficient for fodder “We have some good workers that are easy family up anywhere else.” AUGUST 2014

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Words and pictures: Sophie Bruns Matt Spittal, with baby Jazz and daughter Jordie (middle) and her friend Ava McInnes, is the fourth generation of his family to take over the running of their Gunbower dairy farm. He is looking forward to the challenges while growing the business.

Taking the family farm

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Successful generational change involves careful planning

While Mr Spittal had been responsible The herd will stay at its current split of 60 Matt Spittal is the fourth generation of for the day-to-day running of the farm for per cent autumn calving and 40 per cent his family to farm at Gunbower. some time, he had some ideas he wanted to spring because that suits the farm with the He recently bought the farm from his father implement to take the farm to the next level. pasture growth curve. Gary (‘Frog’) and is looking forward to the On the top of the list was a new dairy yard challenge. He farms with his wife Kellie and with backing gate to improve cow flow into “The strength of our farm is the sandy loam children Jordie, Judd and Jazz. soils and they have held up pretty well the dairy. “I have always loved dairying. I love the cows, through the last month or so under the wet the outdoors and the people and I see a real “Dad had stopped spending money and was conditions.” future in dairying — people are always going happy to cruise along which was fine, but I While Mr Spittal had always loved dairying, could see some areas where we really needed to drink milk so hopefully we are investing he decided to move away from the farm to spend money to expand and improve the in the right industry,” Mr Spittal said. business. when he left school. He finished Year 12 and Three years ago, the couple bought a 29 ha got an apprenticeship as a plumber, even “We have a one-man shed, and a yard with property adjoining the dairy farm, which though he was still milking. a backing gate will make milking so much was step one in the takeover process. About quicker because I won’t have to leave the pit 12 to 18 months ago, they set about working “Five years later I came back home to the and chase cows around the yard.” out the details for the 170 ha dairy farm. farm but when things got tight due to the Down the track Mr Spittal would like to drought I went back plumbing for another “It is hard when family is involved because keep improving infrastructure by completing four years. Dad has to live and financially we have to some lasering and installing some Black make the business work,” Mr Spittal said. “That really helped because I had something Brute pipe for irrigation. He is also “Our accountant helped us, as did our field else to fall back on and an income stream considering investing in heat collars to help officer with the fine tuning, but perhaps that wasn’t related to the dairy industry. In with drafting, heat detection and ruminant some sort of middle man might have been 2011 I came back to the farm full-time as a detection. helpful too. sharefarmer.” Mr Spittal has plans to weed the cross“In some ways it would have been easier to Mr Spittal is looking forward to the future breeds out of the 250–cow herd and milk a just go out and buy another farm on our — running his own farm and making all full Friesian herd. own, but we couldn’t afford to buy what we the decisions. His father plans to stay on “If I am going to milk every day then I want have here — the only way was to take over working for a few more years, but Mr Spittal to milk something I like looking at and I the family farm. We did get there in the end laughs and reckons he’ll ship him off before find the Friesians have a better temperament and it has worked out well and everyone is then. happy.” in the dairy.” AUGUST 2014

Planning to grow economy Dairy revitalisation and growth represents a significant opportunity for regenerating economic activity and job creation in the alpine valleys of north-east Victoria. The North East Dairy Regional Growth Plan and Workforce Development Strategy (the Regional Growth Plan) was launched in Tallangatta in April by Kiewa Valley dairy farmers and Alpine Valleys Dairy Pathways Project (AVDPP) group members Stuart Crosthwaite and Ken Jones, and local member for Benambra Bill Tilley. With focused effort and a favourable investment environment, the AVDPP is providing services supporting the aim of doubling milk production by 2025, which could boost the regional economy by as much as $225–300 million. The Regional Growth Plan identifies four key areas for action: • Continuing to raise dairy farm business performance and profitability using current and emerging farm management practices. • Improve exit pathways for retiring dairy farmers and pathways in for the next generation. • Implement a workforce strategy to ensure the industry can attract and retain the people it needs. • Develop a culture that supports and values dairy growth in the region.

Ken Jones acknowledged the Regional Growth Plan represented the end of three years of dedicated planning and work from the instigators of the AVDPP. In particular he acknowledged the contributions of Stuart Crosthwaite as the AVDPP chairperson and Patten Bridge as the project’s executive officer and author of the Regional Growth Plan. Alpine valleys dairy business snapshot • Characterised as an area in transition — since 2000 there has been a 38 per cent reduction in dairy farm numbers, but an average increase in production per farm of 57 per cent. • Predominantly family farms — as farm size has increased they have an increased dependency on non-family labour. • Farming systems need to adjust to this trend; especially farmers’ confidence to employ, manage and retain staff. • Significantly higher proportion of older owners/managers than other dairying regions of the state and many of these people will be looking to retire in the next 10 years. • Average farm equity level is greater than 75 per cent, representing an industry which has strong resilience to seasonal and market fluctuations, and has the potential to invest and grow.

Where to from here… Stuart reiterated that the Regional Growth Plan was a key project milestone that effectively sees the AVDPP transition from a ‘planning phase’ to implementation. To achieve growth in the dairy industry in the alpine valleys, existing farmers should be prepared to develop their skills through participation in locally delivered extension courses and increase technology uptake to grow profitable and resilient dairy businesses. Ken and Stuart recognise that local communities need to get involved because they will also benefit from a stronger and more profitable dairy industry. DEPI is an active member of the AVDPP and also delivers key practice change activities in the alpine valleys through a co-investment model with local industry project partners: Murray Goulburn, Dairy Australia, Murray Dairy and the National Centre for Dairy Education Australia. To request a hard copy of the Regional Growth Plan, contact Mick O’Keefe at DEPI Rutherglen, phone (02) 6030 4548 or email michael.o’keefe@depi.vic.gov.au Alternatively, an electronic copy can be downloaded from the Towong Shire website. Visit www.towong.vic.gov.au and search for ‘dairy growth plan’. — Mick O’Keefe, DEPI Rutherglen

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calendar of events

Please check www.murraydairy.com.au for updates or phone (03) 5833 5312.

AUGUST August 4 & 5 NCDEA Farm Chemical Users Course Tallangatta August 5 NCDEA Farm Chemical Refresher Tallangatta August 7 & 8 NCDEA Calf-rearing Workshop Kiewa August 7 & 8 NCDEA Cups On Cups Off TAFE NSW Riverina Institute, Finley August 14 & 15 NCDEA Farm Chemical Users Course Cobram August 15 NCDEA Farm Chemical Refresher Cobram August 14 & 15 NCDEA Calf-rearing Workshop Corryong SEPTEMBER September 8 & 9 Better Soils for Better Dairy in the North-East Workshop Brett and Chrisanya Finlay’s Farm Towong Upper September 9 Lunchtime Research Sessions — Dairy Farm Monitor Report (Murray Dairy and DEPI) 255 Ferguson Rd, Tatura

Smarter energy use can save dollars Funding is available to prepare energy efficiency plans for dairy farms Dairy industry research shows the average dairy farmer spends about $13 000 a year on electricity costs. It also shows there are opportunities for increased energy efficiency, and therefore significant cost savings on most dairy farms. However, it can be difficult to recognise potential savings and to unlock efficiency gains without input from experienced service providers. The ‘Smarter Energy Use on Australian

Dairy Farms’ project will help fund competent assessors to prepare an energy efficiency plan for individual dairy farms. The plan will assist farmers to improve the performance of their existing plant, as well as prioritise any future spending on equipment upgrades. Sensible and practical options for renewable energy can also be discussed, because the assessors are experienced in this field. The only requirements from the assessor are

that farmers complete a simple expression of interest form and provide their power bills for the past 12 months. The assessor also prefers to spend 10 to 15 minutes with each farmer before completing the on-farm assessment. But other than that, all the hard work is done for you, and it is free of charge. Dairy farmers can register their interest with Murray Dairy by phone on 5833 5312 or by email to admin@murraydairy.com.au

AUGUST 2014

AfiAct II

™

The next-generat ion solut ion for the most accurate heat detect ion

Results updated every hour

Collects behavior data anywhere on the farm — up to hundreds of meters

Accessible from the Web on any type of device - smartphone, tablet, laptop

www.dmsafimilk.com.au • Free Call: 1800 617 657 44

AUGUST 2014